july 2020 nasdaq: nmrd - nemauramedical.com · • wearable health-tech sector comprising $60b+...
TRANSCRIPT
CorporatePresentationJuly2020
NASDAQ:NMRD
Forward-Looking Statements
• Thispresentationincludesforward-lookingstatementsthataresubjecttomanyrisksanduncertainties.Theseforward-lookingstatements,suchasstatementsaboutNemaura’sshort-termandlong-termgrowthstrategies,cansometimesbeidentifiedbyuseoftermssuchas“intend,”“expect,”“plan,”“estimate,”“future,”“strive,”andsimilarwords.Thesestatementsinvolvemanyrisksanduncertaintiesthatmaycauseactualresultstodifferfromwhatmaybeexpressedorimpliedinthesestatements.
• TheserisksarediscussedinNemaura’sfilingswiththeSecuritiesandExchangeCommission(the“Commission”),includingtherisksidentifiedunderthesectioncaptioned“RiskFactors”inNemaura’sAnnualReportonForm10-KfiledwiththeCommissioninJune2019asthesamemaybeupdatedfromtimetotime.
• Nemauradisclaimsanyobligationtoupdateinformationcontainedintheseforward-lookingstatementswhetherasaresultofnewinformation,futureevents,orotherwise.
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Our Mission • Todisruptthe$80B+Diabetes&$50B+Pre-diabetesmarketsbymakingitmucheasierforpeoplewithdiabetesandpre-diabetestomakelifestylechangesneededtomanage,reverseorpreventdiabetes.
• WeachievethisbycombiningdigitalcoachingandsupportservicesprovidedbyBEAT™diabeteswithcontinuousglucosemeasurements(CGM)&dailyglucosetrenddataprovidedbySugarBEAT®,theworld’sfirstCEMarkapprovedNon-invasiveCGM.
• Within5yearsNemauraaimstoleadinthewearablesmarketandself-managementofmedicalconditionswithourpipelineproductsofsensorsanddigitalhealthcareplatformsusingAI.
• Employers,healthcareprovidersandinsurersarealreadypayingsubstantialfeestosupportpatientsforthelongterm,usingappsandcoaching,soSugarBEAT®CGMcombinedwithBEAT™diabetesdigitalcoachingarepoisedtodisruptthisspace.
• https://sugarbeat.com/introducing-sugarbeat/ 3NASDAQ:NMRD
Company Highlights • World’sfirstnon-invasiveCGM(continuousglucosemonitor)SugarBEAT®,combinedwithdigitalcoachingandsupportservicesprovidedbyBEAT™diabetestargeting$179B+Globalopportunity:
• Digitalhealthsectorcomprising$69B+Type2diabetesmarket1
• $50B+Pre-diabetesmarket2
• Wearablehealth-techsectorcomprising$60B+weightloss&wellnessmarkets3
• USFDAPMAsubmittedandapprovalandlaunchanticipatedbyearly2021
• CEMarkApproved;UK&IrelandcommerciallaunchplannedforQ3inUKandGermany,andQ4inUSA(inthewellbeingspacefordiabetesprevention,priortoPMAapprovalbyFDA).
• Cleancapitalstructure
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1PiperJaffrayCompanyNoteDXCMSep52018 2Assuming50%usageascomparedtotypeIInoninsulinmarket 3JuniperResearchDigitalHealthReportJan142019
The Market
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TAM:TotalAddressableMarket
SugarBEAT® the Product
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• CEMarkapprovedClassIIbdevice,adjuncttofingerpricktesting,forusebypersonswithdiabetes
• Noninvasive–sensorsitsontopofthearm/skin
• Readingssenttomobilephoneappevery5minutes
• Intermittentweartime:
wearitwhenyouchoose
• Lowcost
• Canbewornbyanyone–fordiabetesmanagement,toaiddiabetespreventionorforWellbeing
How SugarBEAT® Works • Asmalltransmitterdeviceandanadhesivepatchwithasensorsitsontopoftheskin,typicallyontheupperarm.• Thesystempainlesslydrawssmallamountsofglucosemoleculesoutoftheinterstitialfluidjustbelowthetoplayerofskinintoachamberwithinthepatch.Doesnotrequireneedlesandsensordoesnotpuncturetheskin.• Therechargeabletransmittermeasuresglucoselevelswithinthechamber,andtransmitsthisdataeveryfiveminutesviaBluetoothtoamobilephoneapp.• Usingaproprietaryalgorithm,theappthendisplaysthisdataasglucosevalueonsmartphone/deviceingraphicalformataswellasnumericvalues.https://sugarbeat.com
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BEAT™diabetes Program
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Cardiovascular Risk Monitoring
Blood Glucose Monitoring
Continuous Glucose
Monitoring
Heart Metrics
Diabetes Lifestyle App
Digitally Connected
Online Community
Blood Testing Personalised
Lifestyle Coaching
Commercialization & Sales – UK & Germany • UK:Productplannedforonlinesaledirecttoconsumer.Drugtarifflistingapplicationinprogressforreimbursement.
• Germany:Productplannedforonlinesaledirecttoconsumer.Applicationinprogressforreimbursement.
IndependentstudyoutcomesprovidecompellingevidencefortheuseofCGMonnon-consecutivedaysorafewconsecutivedayspermonth,toprovideclinicallysignificantoutcomesinthemanagementand/orreversalofType2diabetes.
sugarBEAT®isideallypositionedtocaterforthismarketoverandabovetheincumbentinvasiveCGMswhichhavewearperiodsofupto14consecutivedayswithassociatedcosts.
ConsequentlyitmaybepossibletoprovideCGMtothemajorityofpersonswithType2diabetesatanaffordablecostpoint.
ThishasthepotentialtochangetheparadigmforthemanagementofType2diabetesonaglobalscale.
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Commercialization & Sales - USA
• USA:PMAfiled.
• LaunchplannedunderthewellbeingcategorytargetedatType2diabeticsaswellasthepre-diabetesmarket(over100millionpotentialuserscombined).
• Examplesofincumbentsinthespace:
-Omada,Livongo
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Potentially game-changing moment for big data in the health industry • TheValueofMedicalDataRealtime• Mobiletechnologyhasbeenoneofthelargestcontributorstobigdataforthepastseveralyears.Proliferationof
mobilephones,theimplementationofapp-enabledsmartphones,andnowthegrowthofthewearabledevicemarketareallcreatingmassivenewdataflowsthatcanbeputtouseforhealthandotherpurposes.
• Wearablemedicaldevicesarenotnew,buttheyhavelongbeenexpensiveandnotalwaysviableforeverypatientorsubjectofamedicalstudytowear.That’swhythegrowthofthewearablepersonalelectronicdevicemarket–andthelowerpricesthatcomewithahighervolumeofdevicesbeingsold–issuchapotentiallygame-changingmomentforbigdatainthehealthindustry
• ExtractingpersonaldatafromwearableMedicaldevices:• PredictiveanalyticsisbasedonlogicthatisdrawnfromthewearableMedicaldevicesusesanalgorithmtoseek
patternsandstructureindataandclusterthemintogroupsorinsights.
• Improvingefficienciesperpatient’smanagementofhealthcare
• Accuracyofdiagnosisandtreatmentinpersonalmedicine
• Increasedinsightstoenhancelifestyle,diabetes,drugmanagementandcohorttreatment
• DevelopmentofArtificialIntelligenceandintermittenttestingusingSugarBEAT®hasthepotentialtodisruptdiabetesmanagementfromthefollowingperspectives:
• EmpoweringuserswithinterpretationsofSugarBEAT®data.EmpoweringIndustrysuchasBigPharmatoenhancedrugtreatmentregimensanddeveloppersonalizedtherapy.
• Seekingtocapitalizeonthisgroundbreakingapproachtomakinglargedatasetsmoreaccessible,theU.S.NationalInstitutesofHealth—thepreeminentU.S.governmentmedicalresearchorganization,whichoverseesanannual$31billionbudget—isnowworkingwithIBMtoconnectaverywidevarietyofclinicalandresearchdatasetstotheIBMWatsonsystem.
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Nemaura vs Livongo® The technical difference! Starts with a supporting approved medical device. • TheTrendsInMobileHealthcare
• Whatweareseeingisashifttowardsdigitalmedicalcare.Therecordsaremoreoftenkeptelectronically,therearemoreopportunitiesforremotepatientmonitoring,andmoretoolsforindividualhealthmonitoringareemerging.Digitalhealthdealsarebooming:thevalueofinvestmentsreached$7.5billionin20192.
• Nemauraisthelatestbreakthroughinmobile/wearablehealthcaretechnologyregardingfunctionality,technology,interconnectivityandallsupportedwithrealmedicaldiagnosticsfromtheirCEapprovedmedicaldevice.• Livongo®Limitations:(NASDAQ:LVGO)
• Livongo®forDiabetes:includesacellular-connectedinteractiveglucometer,unlimitedbloodglucoseteststrips,real-timecoaching,and24-hourmonitoring
• LivongoforPre-DiabetesandWeightManagement:offersacellular-connectedweightscale,healtheducationalcontent,personalizedcoachingservice,andgroupclasses
• NemauraAdvantages:• SugarBEAT®CGMprovidesverypowerfuldatathatwillallowlongtermtherapyand
lifestyleadjustmentsthatfingerpricktestingcannotachieve
• Clinicallyproven,evidencebasedhealtheducationondiabetesthathasbeendemonstratedtoleadtobehavioralchangesindiabetics.On-demandcoachingserviceforpersonalfitness,motivation,anddietaryadvice,(throughin-licensingandcollaboration)
NASDAQ:NMRD1.Livongo®isaregisteredtrademarkofLivongoHealth,Inc.
2.https://www.digitalhealth.net/2020/01/ces-2020-digital-health-investment-2019/12
Opportunities for application of big data in the health industry TheValueofMedicalDataRealtime• Mobiletechnologyhasbeenoneofthelargestcontributorstobigdataforthepastseveralyears.
Proliferationofmobilephones,theimplementationofapp-enabledsmartphones,andnowthegrowthofthewearabledevicemarketareallcreatingmassivenewdataflowsthatcanbeputtouseforhealthandotherpurposes.
• Wearablemedicaldevicesarenotnew,buttheyhavelongbeenexpensiveandnotalwaysviableforeverypatientorsubjectofamedicalstudytowear.That’swhythegrowthofthewearablepersonalelectronicdevicemarket–andthelowerpricesthatcomewithahighervolumeofdevicesbeingsold–issuchapotentiallygame-changingmomentforbigdatainthehealthindustry
ExtractingpersonaldatafromwearableMedicaldevices:• PredictiveanalyticsisbasedonlogicthatisdrawnfromthewearableMedicaldevicesusesan
algorithmtoseekpatternsandstructureindataandclusterthemintogroupsorinsights.
• Improvingefficienciesperpatient’smanagementofhealthcare
• Accuracyofdiagnosisandtreatmentinpersonalmedicine
• Increasedinsightstoenhancelifestyle,diabetes,drugmanagementandcohorttreatment
InitialdevelopmentofArtificialIntelligenceandintermittenttestingusingSugarBEAT®hasthepotentialtodisruptdiabetesmanagementfromthefollowingperspectives:• EmpoweringuserswithinterpretationsofSugarBEAT®data.EmpoweringIndustrysuchasBig
Pharmatoenhancedrugtreatmentregimensanddeveloppersonalizedtherapy.
• Seekingtocapitalizeonthisapproachtomakinglargedatasetsmoreaccessible,theU.S.NationalInstitutesofHealth—thepreeminentU.S.governmentmedicalresearchorganization,whichoverseesanannual$41.7billionbudget1—isnowworkingwithIBMtoconnectaverywidevarietyofclinicalandresearchdatasetstotheIBMWatsonsystem.
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SugarBEAT®
1.https://www.nih.gov/about-nih/what-we-do/budget 13
ThenumberofpeoplethatcouldbenefitfromSugarBEAT®issignificantbuteveninascenariowherethiswasonlyrolledoutacrossstaffconsideredtobehighvalueassetstothe100biggestcompaniesintheUK,weforecastthishavingthepotentialofachievingover200,000subscribersintheUKalone.NHS(UK)DiabetesPreventionProgram(DPP)DigitalStream• DPPtosupport200,000peopleperyeartotransformtheirlifestyles
• Fivedigitalbehaviorchangeproviders• Basedoncontinuousengagementwithpatientstomakenewhabitsandbehaviors
• Helppatientstoimprovetheirconditionsbypersonalizedhealthlifestyleplansandcoaching
NHS(UK)Type2behaviorchangeatscale• PartnershipwithNHSEnglandofferingfreedigitalsupportforpeoplediagnosedwithType2diabetes
• Onlineplatformwilldeliverthisbehaviorchangeservicenationally
• Evidencebasededucationwithinnovativetechnologytoprovidepersonalizationatscale
SugarBEAT®$179B+GlobalMarketopportunityconsistsofthreetargetmarkets:1
• $69B+TAMType2diabetes(90%ofallpeoplewithdiabetes)
• $50B+TAMPre-diabetes—approximately3xpopulation
• $60B+TAMWearableHealth-Techmarket:lowcarb/weightloss/fitness
U.S.CGMMarketOverview2• U.S.hasthelargestnumberofCGMusers
globally(630kin2018)Only2.6%of25MUSdiagnoseddiabeticsusedCGMin2018
• U.S.annualCGMusageincreasedby117%in201830%ofU.S.Type1peoplewithdiabetesuseCGM
• 3%ofU.S.Type2insulinusersuseCGM
CGMusageamongstnon-insulindiabeticsnegligible
• U.S.has84MPeoplewithPre-diabetes
Continuous glucose monitoring (CGM): TAM
Understanding the opportunity
1&2PiperJaffrayCompanyNoteDXCMSep52018 14NASDAQ:NMRD
Current Product Pipeline
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Product KeyFeatures Market
SugarBEAT®GenII • Includepediatriccover• Improvedaccuracy(MARD)• Longerpatchweartime• IncludeGestationaluse
• TypeIIDiabetics• Pre-Diabetics• WearableHealth-Tech• Pregnancy
ContinuousLactateMonitoring
• World’sonlynon-invasiveskinpatchforcontinuouslactatemonitoring
• Determinesappropriatetrainingintensitylevelsandmonitorsprogression
• Athletes• Fitness• WearableHealth-Tech
marketexpectedtobeworth$60B+by20231
1JuniperResearchDigitalHealthReportJan142019
Future Product Pipeline
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Product Uses Diagnostics
AlcoholMonitoring Supportpersonalhealthgoals,andprovidewarningspriortodriving,andprovidephysicianswithindividualdrinkinghabits
Preventionofprogressiontoalcoholrelateddiseases.
ProstaglandinMonitoring Screeningforinflammatoryirritantsinformulationsduringdrugandcosmeticdevelopment
Inflammation
LactateMonitoring Lactatemonitoringinintensivecare AnaerobicMetabolism
DrugMonitoring Monitoringtheimpactofdrugtreatmentfortreatment-regimencalibrationandpharmacokinetics
TreatmentRegimenOptimization
ContinuousTemperaturemonitoring
Temperaturemonitoringformonitoringviralinfections,andlowerlimbbloodcirculation
Viralinfectionsandtissuenecrosis
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The Management Team Dr.FazChowdhury
ChiefExecutiveOfficer
Dr.ChowdhuryhasservedasCEOandchairoftheboardofNemauraMedicalsinceformationinDecember2013.Heissoleinventoronmorethan100grantedandpendingpatentsacrossover20technologyplatformswithinthemedicaldeviceandpharmaceuticalsectors.Hehas20yearsexperienceandtrackrecordtakingproductsfromconcepttoapproval,andhasbeenpivotalinthecompany’stechnicalandstrategicdevelopment.HehasauthoredTextbookChaptersonNano-biosciencesforWileyandElsevier,andservesontheBoardofMedilinkEastMidlands,UK.Dr.ChowdhuryholdsaMastersinMicrosystemsandNanotechnologyfromCranfieldUniversity,UK,andDoctoratefromtheUniversityofOxfordonnano-medicineanddrugdelivery.
ChrisAveryVicePresident,
GlobalBusinessOperationsMr.Averyhas35years’experienceindiabetes,gainingvastexperienceinglucosemonitoringandinsulindeliverymarkets.Heco-foundedaUKdiabetesdistributorshipin2000andservedasUKManagingDirectorandEuropeanDirectorlateracquiredbyNipro.Todatehehassuccessfullylaunchedover20glucosesystemseitherdirectorwithdistributorsandnegotiatedpartnershipsanddistributiondealswithpharmaceutical&medtechcompaniesacrossEuropeandotherinternationalmarkets.In2016hejoinedNemauraMedical’sEuropeanJVpartner,DallasBurstonEthitronixasSVPGlobalBusinessDevelopment,andworkedcloselywithDr.ChowduryuntiljoiningNemauraMedicalinJune2019.
Dr.FredSchaebsdauVicePresident,
Strategy&StrategicAlliancesDr.Schaebsdauhasover15yearsofexecutivelevelexperienceintheCGM,BloodGlucoseMonitoring(BGM)andinsulindeliveryindustries,whichstartedin2004duringhistenurewithAbboqDiabetesCare,wherehewasamemberoftheM&Aandpost-mergerintegrationteamsresponsiblefortheacquisitionofTheraSenseanditsFreeStyleNavigatorCGM.FromSeptember2016untilJanuary2019,hewastheGeneralManagerofDexcomGermany,whichduringhisleadershipbecamethefastestgrowingorganizationinDexcom’shistoryachievingtripledigitrevenueandnewpatientgrowtheveryyear.
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SugarBEAT® Clinical Data • CompletedclinicalstudiesforFDAPMAsubmission
• TheclinicalstudiesusedweresplitbetweenType1andType2diabetics
• Consistedof75patientsover225patientdays
• Generatedover12,000paireddatapoints,withbloodsamplestakenviacatheterevery15minutesovera12-hourperiodforthreenon-consecutivedaysforeachpatient
• Studydesignwasbasedontwopreviouspre-submeetingsNemauraheldwiththeFDA
• TheclinicalstudyresultsindicatedaMARD(MeanAbsoluteRelativeDeviation)of12.50%(withalowerfiguredenotinggreateraccuracy),usingasinglepointfingerstickcalibration,and10.75%with2fingerprickcalibrations
• Nodevice-relatedadverseeventswerenotedNASDAQ:NMRD
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Manufacturing • Transmitterdeviceandchargingstation
• AllmanufacturedintheUKandcanbereadilyscaledtobyaddingmultiplelinestowhatisalinearoperation.
• Disposableskinadhesiveandancillarydisposableparts• AllmanufacturedintheUKandcanbereadilyscaledtomillionsofunitspermonth.
• Disposabledailysensor• AllmanufacturedintheUKandcanbereadilyscaledtomillionsofunitspermonth,byaddingmultiplelinestowhatisalinearoperation.
• Manufacturingscale
• CurrentscalewillallowustolaunchintheUK,IrelandandGermany.
• Futuremanufacturingwillbeoutsourcedtovariouslowcostregionsforthenon-specializedparts,butsensorproductiontoremaininUK.
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Intellectual Property BuildinganextensiveintellectualpropertyportfoliotopositiontheCompanytobecomealeaderinthenon-invasiveCGMspace
TheCompanyhasoverthirtypatents(~70%approvedand~30%pending)spanningthefollowingpatentfamilies:
1. Sensorrelated2. AlgorithmandmethodsofusingtheCGMdata
3. Devices&methodstoenhanceglucosesensing
4. Methodstoenhanceglucosesensing
5. Devicesandmethodstoextractglucose
TheCompanyanticipatesfilingmultipleadditionalpatentsoverthecourseofthenext18monthsbasedonongoingfindingsandimprovements.
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Summary • NemauraMedicalaimstodominatetheglobaldiabetesmarketsforputtingType2diabetesintoremission,usingtheSugarBEAT®deviceanddigitalhealthcareplatform.
• Within5yearsthecompanyaimstoleadinthewearablesmarketandself-managementofmedicalconditionswithitspipelineproductsofsensorsanddigitalhealthcareplatformusingAI.
• Thecompanyhasthepotentialtodisruptthemulti-Billiondollarglucosetrendinganddiabetesmanagementspacetargeting$179B+Globalopportunity:
• PlannedLaunchofSugarBEAT®inkeyglobalterritoriesby2020andaimingfor1millionusersby2021,and3millionusersby2023
• Digitalhealthsectorcomprising$69B+Type2diabeticmarket&$50B+pre-diabeticmarket
• AimingtobuildontheLivongomodel,butusingthecompany’sproprietaryuniquedeviceplatform,henceamoresubstantialinvestmentproposition
• Wearablehealth-techsectorcomprising$60B+weightloss&wellnessmarkets• USapprovalandlaunchanticipatedbyendof2020• CEMarkApproved;UK&IrelandcommerciallaunchexpectedinQ12020,followedby
Germany• Lowestpriced,highrecurringmarginmodel,withlowestCOGSperCGMpatchinthe
industry
• GrowingIPportfoliowithover30issued&pendingpatents• Launchingcontinuouslactatemonitoring(CLM)nearterm,targeting$60B+wearable
techmarket• Pipelineoffourotherproductsincludingnon-invasivecontinuousalcoholmonitoring
(CAM)
• Provenmanagementteamwithsuccessfultrackrecords• Cleancapitalstructure
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