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Nexeon MedSystems Inc.Corporate Overview
www.nexeonmed.com
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Forward-looking Statements
This information contains forward-looking statements which may be identified by their use of words like "plans," "expects,""will," "believes," "intends," "estimates," "anticipates" or other words of similar meaning. All statements that addressexpectations or projections about the future, including statements about Nexeon MedSystems Inc.’s (“Nexeon”) growthstrategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, timing ofanticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters,expenditures and financial results, are forward-looking statements. Forward-looking statements are not guarantees of futureperformance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company's control. Some of theimportant factors that could cause the company's actual results to differ materially from those projected in any suchforward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new productsand optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manageprocess safety and product stewardship issues; changes in laws and regulations or political conditions; global economic andcapital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; securitythreats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce thecompany's intellectual property rights; successful integration of acquired businesses and separation of under-performing ornon-strategic assets or businesses. The company undertakes no duty to update any forward-looking statements as a result offuture developments or new information.
NEXEON MEDSYSTEMS INC. www.nexeonmed.comNEXEON MEDSYSTEMS INC. www.nexeonmed.com
RETURN ON EQUITY
Minimal capital requirements to reach breakeven profitability
PROVEN LEADERSHIP
8 profitable exits to shareholders, Unmatched clinical experience
SLOW PUBLIC OFFERINGEarly investors can receive benefits of market
pricing forces before IPO
Investment Hypothesis
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Expertise in active implantable medical devicesDeveloping & manufacturing devices & remote management software
100+ Patents Related to implantable medical devices & Internet of Medical things (IoT) technology
2017 Commercial Launch of Leading ProductDeep brain stimulation system for Parkinson’s Disease
Funded Development Pipeline$10M in awarded licenses/ subsidiaries to complement nearly $40M in development costs to date
Adaptive bioelectronics solutions
2012
The g lobal b ioe lect ron ics market w i l l pass $7 b i l l ion by 2020 2016 2020We are here
SCS (Spinal cord simulation)
DBS (Deep brain simulation)
SNS (Social nerve simulation)
VNS (Vargus nerve simulation)
Others
$4.5B$2.6B
$7.89B
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Deep Brain Stimulation Market
$0
$200
$400
$600
$800
2014 2015 2016 2017 2018
Annual Sales (in millions of USD)
CAGR
Market for DBS devices to treat patients with Parkinson’s disease
projected to reach $3.21B globally by 2020
MDT9% STJ
1%
BSX1%
Untreated DBS Candidates
89%
Worldwide Landscape
MDT STJ BSX Untreated DBS Candidate
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
ü FASTER, PATIENT-SPECIFIC PROGRAMMING LFP recording, 32 controllable current sources with multiple stimulation frequencies, and delivery of most any conceivable waveform
ü ADAPTIVE SYSTEM Sensing & recording capabilities allow for improved monitoring of disease progression & therapy efficacy & provides foundation for closed-loop system
ü REMOTE MONITORINGIncreases patient independence while decreasing in-office visits with physician
ü RECHARGEABLE IMPLANTDiminishes need for future neurosurgeries
Synapse Therapy AdvantagesTHE ONLY SYSTEM THAT ALLEVIATES SHORTCOMINGS IN TODAY’S DBS THERAPY
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
First Clinical Result
• Very successful outcome for both patient & surgeon
• Patient reclaimed normal quality-of-life activities
• No adverse effects reported after 14 mosof post-op follow up
• Data accepted for presentation at EFSSN conference Sept 2012
Established DBS Sales ChannelAfter 20+ yrs proven efficacy (~135,000 DBS recipients worldwide)
> $ 3 1 , 0 0 0$ 1 , 7 0 0
> $ 2 2 , 0 0 0
Insurance paid per procedure:
Attractive economics for hospital, physician, &
manufacturer
Provider Network Medical codes (CPT for DBS) Reimbursement
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Positioned for revenues to grow to ~$100M in 2022
Sales & Marketing Launch2017 Plan Overview
CE Mark Technical File
$10M in awarded non-dilutive funding
5% global effective tax rate
Synapse commercial launch with sales beginning in Q4 2017
Indirect sales in UK, Germany, & France
PMA Pivotal Study to begin 2018
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Target Segment & DemographicsTerritory Coverage with Minimal Sales Force
EU territory coverage
comparable to New England
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Conservative Market Penetration vs. Advanced Bionics Rate MARKET SHARE: FIRST 5 YEARS
0.0%
5.0%
10.0%
15.0%
20.0%
Year 1 Year 2 Year 3 Year 4 Year 5
Nexeon Share
Advanced Bionics
Commitment to InnovationInvesting in what’s next for device & system optimization
LFP Recording(Local Field Potential Recording)
Current Clinical Problem:DBS not well understood with open-loop systems
Our Solution:Recording neuron activity ~1uV allows objective
selection of electrode contacts, faster programming, better monitoring disease progress & therapy efficacy, all features necessary for closed-
loop therapy system
Targeted Stimulation (Directional field steering by split ring electrodes)
Current Clinical Problem: Uniform field distribution in normal electrode
stimulates target & non-target tissue the same
Our Solution:Split ring electrode with field steering allows more
selectivity, eliminating collateral stimulation of unwanted targets
Unique features sought after by most
clinicians
TOP VIEW
Split Ring Electrode
Indication Expansion
Deep Brain StimAdditional applications in development include dysphagia, obesity, cognition
Expansive opportunity in neurostimulation with Synapse’s
platform technology
Vagal Nerve StimFor Epilepsy, asthma, COPD2nd product launch with Synapse
Existing reimbursementPre-submission meeting complete
Funded preclinical work in progress
Peripheral Nerve StimManufacturing agreement with GlaxoSmithKline for their Bioelectronics programAdditional applications for Synapse planned in peripheral modulation
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Leadership
WILL ROSELLINI
6 advanced degrees related to translational medicine
15-yr vet in neurotech3 successful exits in medtech
BRIAN BLISCHAK
Neuroengineer with 20 yrs in medical device field
Successfully led 3 neurostimproduct launches from new
product to US approval
CHRIS MILLER
15+ yrs serving as CFO, treasurer, and interim CFO for wide variety of early-stage & non-profit organizations, both
public & private
Chairman, CEO President, Chief Commercial Officer
CFO
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
13 Patents Granted
7Patents Pending
68 Patents Granted
6Patents Pending
Self-healing networks (Siemens portfolio)
Remote monitoring (Medtronic portfolio)
Internet of Medical Things(Siemens portfolio)
Proprietary ASIC(Synaptix acquisition)
Intellectual Property Position
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Nexeon Market Cap ProfileOTC QB
Shares Issued & Outstanding 25,224,953
Fully Diluted 33,874,463
Potential Future Float ~7,765,000
Options 4,497,000(All exercisable at $1.00)
Warrants 4,152,510Warrants, 2 Years @ $2.00
Market Cap $23,224,953@ $1.00 Share (12/16 Pvt. Placement)
Cash Position ~$2,039,000
Ownership Insiders & Affiliates ~76.5%Includes Warrants & options
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
Investment Hypothesis
NEXEON MEDSYSTEMS INC. www.nexeonmed.com
RETURN ON EQUITY
Minimal capital requirements to reach breakeven profitability
PROVEN LEADERSHIP
8 profitable exits to shareholders, Unmatched clinical experience
SLOW PUBLIC OFFERINGEarly investors can receive benefits of market
pricing forces before IPO