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1Downhole Monitoring Solutions
Medical Instrumentation
2
Forward Looking Statements
This corporate presentation contains forward-looking
statements, which reflect the Company’s current expectations
regarding future events. The forward-looking statements involve
risks and uncertainties. Actual events could differ materially
from those projected herein and depend on a number of factors,
including the successful and timely completion and the
commercialization of the products herein. The reader of this
document is forewarned concerning the inherent variability and
risk associated in terms of strategies or deliverables stated
herein by the Company and is cautioned prior to considering
these forward-looking statements. The Company disclaims any
obligation to update these forward-looking statements.
Listing TSX:V
Symbol OPS
Shares / diluted 59 M/69 M
Working Cap(Feb 17, 2014)
13 M
Revenue 2013 $7.5 M
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US & Canadian Institutions
Significant Ownership by Management & Directors 23%
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Business OverviewOpsens develops, manufactures and installs systems to measure a number of parameters, including pressure and temperature, using fiber optic sensing technologies.
Initially developed product for
Japanese medical supplier,
leveraging the Company’s fiber optic
technology
Products in Development
FFR Optical Guidewire
First regulatory filing
January 2014 (completed)
Projected FFR Market Size: US$1B+
Medical InstrumentationFractional Flow Reserve (FFR)
Operating business unit in Alberta
providing critical pressure and temp.
measurements in thermal operations
(ex. SAGD) since 2008
Flagship Product - Commercialized
OPP-W fibre optic pressure/temp sensor
In Development
OPP-G high pressure sensor
Industry Annual Capex in 2014: ~C$25B*
Downhole MonitoringOil and Gas Industry
* Source: Canadian Association of Petroleum Producers: Estimated Industry Annual Capex Spending for 2014
Platform Technology with a Focus on Large Growing Markets
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Investment Highlights
Platform technology focused on markets with attractive growth opportunities
FFR
Oil and Gas
Unique and differentiated product capabilities
Strong intellectual property with defined strategy to bring core products to market
Strong and committed management with proven track record
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Diagnosis with FFR* = Guided PCI** Therapy
Aortic Pressure
Distal Pressure
Blockage
FFR = Distal Pressure
Aortic Pressure
FFR Ratio
Normal
Stent
* Fractional Flow Reserve ** Percutaneous Coronary Intervention
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Attractive Industry Dynamics (FFR)
US$315B spent on coronary artery disease in the US
(AMA 2010 estimate)
Increasing Cost of
Coronary Artery
Disease
Attractive Market Dynamics Support FFR Industry Growth
US health care spending expected to grow by 5.8 to ~20%
of GDP by 2022 (CMS 2013 estimate)
FFR measurements facilitate reimbursement by hospitals
and third-party payers
Increasing Pressure
to Control Health
Care Costs
Patients and healthcare providers focused on reducing
invasive procedures to lower costs and improve standard
of care
Focus on Reducing
Invasive Procedures
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Attractive Industry Dynamics (cont'd)
Year Milestones Outcome
2009 FAME I Study
Angiography + FFR +
Stent superior to
Angiography + Stent
2010
EU: ESC Class I
with Level of
Evidence A
Highest class and level
possible; procedure is
beneficial, useful and
effective
2011
US: ACC/AHA Class
IIA with Level of
Evidence A
Benefits of FFR
outweigh the risks and
it can be useful as a
tool
2012 FAME II Study
Angiography + FFR +
Stent + OMT superior to
Angiography + OMT
2012
(cont’d)
Japan: New
reimbursement
code for FFR
Code established
reimbursement for FFR
during diagnostic
angiography for the 1st
time
FFR Industry Milestones Key Takeaways
In recent years, landmark studies have
demonstrated clear clinical benefits to
using FFR
Facilitates invasive procedure decision-
making
Improves patient outcomes
Helps avoid unnecessary medical
procedures
Multiple cardiology medical societies
address the use of FFR in appropriate use
criteria for diagnostic evaluation
ESC has given FFR a Class I, Level A
recommendation, the highest possible
FFR market could grow significantly if
ACC/AHA increases recommendation
from Class IIA to Class I
Mgmt estimate 2013 FFR market: >US$250M
Current FFR penetration: ~14-15%Industry players indicate potential: 45%
Significant growth available from
Meeting unmet needs for cardiologistsIncreased penetrationFFR expansion into new indications and markets (peripherals)
Management expects FFR market growth to ~15-17% annually until 2017
Other players in FFR market have referenced market size to >US$1B
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Attractive Industry Dynamics (cont'd)
Mgmt’s Estimated
Global Market Size (US$ M)
* Source: Research estimates and various company filings
Key Drivers
$57$75
$124
$167
$207
$250
$1,000 +
2008 2009 2010 2011 2012 2013 Beyond
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Unique and Differentiated Product Capabilities (FFR)
OptoMonitor and OptoWire
Supported by 10 patents (8 granted, 2 pending)
Strong IP (Sensor, detection scheme, guidewire, connectivity of sensor
tools, medical application of technology)
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Unique and Differentiated Product Capabilities (cont’d)
Opsens’ Patented Designs Provide Unique Capabilities
Torque TransferSensor Wires Optical Fiber
Conventional Pressure
Guidewire
Opsens Optical Pressure
Guidewire
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OptoWire – Aiming to Fulfill Critical Unmet Needs
Conventional
Pressure Guidewire
* Source: Research estimates and various company filings
Opsens
Optical Pressure Guidewire
First nitinol-based optical pressure
guidewire – Construction similar to
non-pressure workhorse guidewires
known for kink-crush resistance,
superior pushability and torquability
Pressure system delivers high-fidelity,
reliability FFR assessment
Connectivity shows NO sensitivity to
contrast agents, allowing post-stent
and multi-vessels FFR assessment
Mechanical performance
Lesions difficult to reach
Delays in procedures
FFR assessment reliability
Pressure drift leads to
unreliable FFR assessment
Connectivity compatibility with PCI
ProcedureContrast agents prevent multiple
connection, hindering post-stent
and multi-vessels FFR assessment
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Defined Strategy to Bring Core Products to Market
Commercialization
4Q13 1Q14 2Q14 3Q14 4Q14 2015
U.S.
E.U.
Japan
Design
Verification
& Validation
File 510(k) 510(k) Review
File for CE Marking
File PMDA
CE Review
PMDA Review
Commercial Launch
Commercial Launch
Commercial Launch
Commercial launch of OptoWire expected in 2015 with key milestone events
expected to be achieved in 2014
Japan: signed agreement with a medical distributor in Nov. 2012, providing the
Japanese Company with distribution rights in Japan, Korea and Taiwan;
Approval and commercial launch anticipated by end of 2014
US & EU: approval and commercial launch in early 2015
* Based on calendar year
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Focused on Markets with Attractive Growth Opportunities (O&G)
Producers are shifting to unconventional oil
resources to meet demand
SAGD technology is primary technology used in oil
sands
In Canada, SAGD-based production has grown at
~12% annually since 2006
SAGD-based production is expected to grow at ~7%
over the next two decades
Opsens successfully completed adoption phase
O&G sensors have been in market for over 5
years
Sensor used by 4 of the top 10 SAGD producers
O&G sensors provide a recurring revenue stream
with high-margins
In some applications, sensors are replaced
every 18-30 months
Oil and Gas Market SAGD Production Forecast (1)
0
500
1000
1500
2000
2012 2016 2020
SAGD Production Forecast (bbl/day x 1,000)
(1) SAGD Instrumentation Market Assessment, Ian Murray & Company Ltd., Consultant report, June 26, 2012.
According to CAPP, SAGD production is expected
to grow at a rate of ~7% over next two decades
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Unique and Differentiated Product Capabilities
Steam Injection Well
Producing Well
Cold Oil Sand
Opsens’ OPP-W Sensor at pumpfor in-situ P/T monitoring (300ºC)
SRU Installation
Heated Oil
Hot Steam Chamber(200-300ºC +)
OPP-W at toe of well
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Distribution impacts recovery rate along well pairs
Optimal Subcool zoneLow or Zero Subcool zone High Subcool zone
Unique and Differentiated Product Capabilities (cont’d)
Opsens’ fibre optic sensors offer improved temp and pressure measurements
at temp up to 300 C
Improve subcool for higher recovery rate
Improve subcool for better steam management
Subcool Zone Distribution - SOR
OPP-W in Injector and Producer Pipes
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Growth Strategy
Gaining market share in expanding FFR markets
Expanding and investing in FFR-focused distribution channels and sales force
Developing new applications for the Company’s FFR technology
Increasing long-term revenues in the Oil and Gas market
Investing in innovation to enhance existing applications of the Company’s technology
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Strong & Committed Management, Proven Track Record
Louis Laflamme, President & CEO – Involved with various high-tech public and
private companies
Thierry Dumas, CFO – Previously Corp. Controller for Atrium Innovations and
various positions at PricewaterhouseCoopers and Ernst & Young
Claude Belleville, VP Life Sciences – Successfully sold his first fibre optic venture
Gaétan Duplan, VP Oil & Gas – Successfully sold his first fibre optic venture
Scientific Advisory Board
Senior Management
Opsens’ senior management team fully committed with significant ownership stake
(~30%) in the Company
Opsens benefits from a scientific advisory board of cardiologists
Dr. Morton J. Kern – University of California, Irvine Cardiology, Chairman
Dr. Olivier F. Bertrand - Quebec Heart-Lung Institute, QC, Cardiologist
Dr. Michael J. Lim - St. Louis University, Cardiologist
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Investment Highlights
Platform technology focused on markets with attractive growth opportunities
FFR
Oil and Gas
Unique and differentiated product capabilities
Strong intellectual property with defined strategy to bring core products to market
Strong and committed management with proven track record
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