2019 Interim Results Delivering insights in neuroscience - 22 May 2019 - IXICO
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Delivering insights
in neuroscience
2019 Interim Results
22 May 2019
BUSINESS USE ONLY © IXICO plc 2019
0
Disclaimer
▪ NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.
▪ The information contained in these slides and the presentation is strictly confidential, and is supplied on the understanding that it will be held in confidence, and not copied, reproduced, distributed, published or disclosed to third parties
without the prior written consent of IXICO PLC (“IXICO”, which term any and all of its wholly -owned subsidiaries). The recipient agrees that on request from IXICO it will return or destroy all copies of these slides.
▪ These slides and the presentation have been prepared for information purposes only and for no other purpose. The slides and t he presentation do not constitute or form part of a prospectus relating to IXICO nor do they constitute or
contain any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell o r subscribe for, any securities in IXICO nor shall the slides or presentation or any part of it, or the fact of its
distribution, form the basis of, or be relied on in connection with, any contract or commitment.
▪ No reliance may be placed, for any purposes whatsoever, on the information contained in these slides or the presentation or o n its completeness and these slides or the presentation should not be considered a recommendation by
IXICO, Cenkos Securities (“Cenkos") or any of their respective affiliates in relation to any purchase of or subscription for securities of IXICO. No represent ation or warranty, express or implied, is given by or on behalf of IXICO, Cenkos or
any of their respective directors, partners, officers, employees, advisers or any other persons as to the accuracy, fairness or sufficiency of the information or opinions contained in these slides or the presentation and none of the
information contained in these slides or the presentation has been independently verified by Cenkos or any other person. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in such in formation or
opinions. Neither IXICO nor Cenkos or are under any obligation to update or amend the information contained in these slides as circumstances change.
▪ The slides and the presentation have not been approved by a person authorised under the Financial Services and Markets Act 20 00 ("FSMA") for the purposes of section 21 FSMA. The slides and the presentation are directed solely at:
(i) persons having professional experience in matters relating to investments being investment professionals as defined in Arti cle 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the
“FPO”); (ii) high net worth bodies corporate, unincorporated associations and partnerships or trustees of high value trusts f alling within Article 49(2) of the FPO; and (iii) persons to whom they may otherwise lawfully be communicated
(together “Relevant Persons”). Any investment or investment activity to which these slides or the presentation relate is only available to, and will only be engaged by IXICO with, Relevant Persons. Any person who is not a Relevant
Person should not act or rely on these slides or the presentation or any of their contents on the basis that the slides and t he presentation are directed solely at Relevant Persons exempt from the general restriction on the communication
of invitations or inducements to engage in investment activity and it is a condition of your receiving these slides or attend ing the presentation that you have confirmed to IXICO and produced evidence satisfactory to IXICO that you are a
Relevant Person.
▪ It is possible that the information contained in these slides or the presentation may constitute inside information for the p urposes of the Criminal Justice Act 1993 or the Market Abuse Regulation (EU) No. 596/2014. Consequently,
recipients of such information must not deal or encourage another person to deal in any investment in IXICO nor should they b ase any behaviour on these slides and/or the presentation in relation to an investment in IXICO or any
connected company which would amount to either insider dealing or market abuse until after such information has been made gen erally available to the public.
▪ The distribution of these slides and the presentation in other jurisdictions may be restricted by law and the persons into wh ose possession these slides or the presentation comes should inform themselves about, and observe, any such
restrictions.
▪ These materials may not be published, distributed or transmitted by any means or media, directly or indirectly, in whole or i n part, in or into the United States or to any US person (as defined in the U..S. Securities Act of 1933, as
amended (the "Securities Act"). These materials do not constitute an offer to sell, or a solicitation of an offer to buy, sec urities in the United States. Securities may not be offered or sold in the United States absent ( i) registration under
the Securities Act or (ii) an available exemption from registration under the Securities Act. The securities mentioned herein have not been, and will not be, registered under the Securities Act and will not be offered to the public in the
United States.
▪ Neither these slides nor the presentation nor any copy of either may be ( i) taken or transmitted into or distributed in Canada, Australia, the Republic of Ireland or the Republic of South Africa or t o any resident thereof, or (ii) taken or
transmitted into or distributed in Japan or to any resident thereof. Any failure to comply with these restrictions may consti tute a violation of the securities laws or the laws of any such jurisdiction.
▪ IXICO is at a relatively early stage and, in common with many other companies in the healthcare and technology sectors, its d evelopment may be subject to a number of major uncertainties, including the availability of funding and its
ability to enter into partnerships with other companies. Although IXICO is active in establishing a strong intellectual prope rty base, technology is an area where patent positions and disputes can materially affect individual companies.
▪ Forward looking statements – Statements other than those of historical results and events may constitute forward -looking statements. Certain statements including management’s strategic vision, aims and objectives, the conduct of
research and development work, trials and the expected timing of registration, regulatory approval or launch of products, the expected market for products, the effect of competition, the overall market and exchange rates are forward
looking in nature. By their nature, such statements involve risks and uncertainties that could cause the actual outcome to di ffer substantially from management's view.
▪ All logos, graphics and trademarks contained in these slides are recognised and remain the property of the respective organis ation. IXICO’s word mark is a trademark of IXICO , where the term trademark means the word or mark
however represented, including stylised representations, all associated logos and symbols and combinations of the foregoing w ith another word or mark.
▪ Cenkos is authorised and regulated by the Financial Conduct Authority and is acting only for IXICO in connection with this presentat ion and is not acting for or advising any other person, or treating any other person as its client, in
relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Cenkos or advice to any other person in relation to the proposals.
▪ IXICO PLC is incorporated in England with registered number 3131723 and registered address 15 Long Lane, London, EC1A 9PN.
BUSINESS USE ONLY © IXICO plc 2019
1
Delivering insights
in neuroscience
Delivering on our
strategic goals
Giulio Cerroni, CEO
BUSINESS USE ONLY © IXICO plc 2019
2
Next generation biomarker services for neuroscience drug development
▪ Collecting and extracting data from brain scans to detect and measure imaging biomarkers
▪ Applying our data analytics expertise to develop and validate complementary digital biomarkers
▪ Accurate biomarker assessment can reduce the
risk associated with clinical research studies by e.g. MRI - Huntington’s disease
supporting:
▪ identification of patients who are more likely to
respond
▪ early detection of drug safety issues
▪ objective assessment of drug efficacy
Tissue loss Δvol over 6 months = 0.8%
BUSINESS USE ONLY © IXICO plc 2019
3
Next generation biomarker services for neuroscience drug development
Medial Temporal Lobe Striatum Cerebellum Brainstem
SPINO- PROGRESSIVE
ALZHEIMER’S HUNTINGTON’S CEREBELLAR
DISEASE SUPRANUCLEAR
DISEASE ATAXIA
(HD) PALSY
(AD) (SCA) (PSP)
BUSINESS USE ONLY © IXICO plc 2019
4
5 point growth strategy
① Focus on delivering scale and operational excellence
② Accelerate penetration of clinical trials market; diversify into new indications
③ Target early phase to grow into later clinical phases
④ Innovate: AI machine-learning data analytics
⑤ Enhance organic growth through selective M&A
….to deliver sustained double-digit revenue growth, targeting profitability
BUSINESS USE ONLY © IXICO plc 2019
5
Strengthened leadership
Giulio Cerroni (Feb ‘17) Alison Howie (Jun ‘18) Grant Nash (April ‘19) Marcus Thornton (Jun ‘18)
CEO CCO CFO COO
Robin Wolz (Mar ‘14) Amanda Wooding (Jul ‘18) John Hall (May ‘08) John Green (Jun ‘18)
SVP Research & Development HR Director SVP Corporate Development SVP Quality, Compliance &
Regulatory Affairs
BUSINESS USE ONLY © IXICO plc 2019
6
Delivering insights
in neuroscience
Commercial traction in an
attractive growth market
Alison Howie, CCO
BUSINESS USE ONLY © IXICO plc 2019
7
Our AI data analytics accelerate biopharma innovation & enable productivity
Eligibility / Stratification Safety - Side effects Efficacy
PET - Alzheimer’s disease MRI - Immunotherapy MRI - Huntington’s disease
Accurately measure the absence/presence of Detect adverse drug reactions Accurately measure biomarkers that track
disease biomarkers (Amyloid) to ensure the (bleeds/fluid accumulation) early – disease progression providing evidence of
right patients are enrolled in clinical trails preventing serious harm to patients treatment response and disease
modification
Tissue loss Δvol over 6 months = 0.8%
Healthy Healthy Alzheimer’s
Amyloid -ve Amyloid +ve Amyloid +ve Baseline Week 19
BUSINESS USE ONLY © IXICO plc 2019
8
Four pillars of strength for accelerated growth
Launching innovative Leveraging our Building scale in Continuously enhancing
new products expertise into new high growth our client value
indications markets proposition
Algorithms to Unrivalled domain Established A decade of delivery
measure disease knowledge operational reach
biomarkers
Validated IXICO AI Understand the value of Network of sites trained Proven, trusted partner
technology to measure different disease and qualified by IXICO to with robust and regulatory
specific biomarkers in biomarkers is specific ensure they can collect compliant operations.
therapeutic areas being therapeutic areas data (which is not standard All phases of clinical trials
targeted by biopharma Understand the challenges of care) to the high level of
of deploying different quality required for Springboard for new client
biomarkers in specific Automated AI analytics acquisition
populations tools.
BUSINESS USE ONLY © IXICO plc 2019
9Market drivers - innovation with clients, collaborations and partners
Investment New Patient
Ageing Earlier
in rare therapeutic reported
population intervention
diseases approaches outcomes
New and better biomarkers
Translational science
Partnering with Academia First Mover Advantage
in Major Government via Public-Private
Funded AI Initiatives AI-Driven Partnerships
Data
▪ Access to well-characterised clinical data
Analytics ▪ Diversification into new indications
▪ In-licencing opportunities ▪ Development and validation of IXICO algorithms
▪ Access to clinical and technical expertise ▪ Build track record and expertise
BUSINESS USE ONLY © IXICO plc 2019
10Long term client relationships; good revenue visibility
▪ Generating high quality earnings growth from repeat Reported revenue growth (£m)
business
• Expanding scope 3.4
• Multiple projects
2.3
2.8
22%
▪ Reaching new biotechs to expand franchise to new
therapeutic areas 1.5
▪ H1-18 +25%
▪ Working with earlier-stage assets creates long term ▪ H1-17 +51%
opportunities
H1-16 H1-17 H1-18 H1-19 Comparatives reflect adoption of IFRS15
Wearable New PSP 2 study Scope
biosensors Imaging expansions in expansion Phase III New contract New HD
£0.5M $2.7M AD +24% £0.6M Study £9.1M in HD £0.5M study £2.3M
£12.7M £21.1M
Order Order
Book Book
Sept 17 Sept 18
Sept 17 Mar 19
Wearable Scope New HD Scope Scope New
biosensors expansion Study £1M expansion expansion Therapeutic
£0.75M £0.75M €0.5M $2.4M Area study
BUSINESS USE ONLY © IXICO plc 2019
start up 11Winning in current markets + reaching into new markets
• Exploratory outcome • 2° & 1°
• Patient outcomes in • Supporting
measures outcomes
the real world therapeutic decisions
• Translational science measures
Phase I, II & III (sub-study) PhII & III Phase IV On Market
Digital and imaging
Digital biomarkers biomarkers to monitor
Imaging services de-risking outcomes: better providing objective disease progression
insights to changes to brain structure and function measures of patient and therapeutic
outcomes response
£150 - £500k £1m - £10m £200k - £2m £££
Typical Value Per Study Recurring revenue
Current Markets New Markets
BUSINESS USE ONLY © IXICO plc 2019
12Delivering insights
in neuroscience
Financial Review
Grant Nash, CFO
BUSINESS USE ONLY © IXICO plc 2019
13H1 2019: Revenue, Gross Margin & EBITDA
Reported revenue growth (£m) Gross Margin (%)
66
61
22%
60
+610bps
3.4
2.8 47
2.3
▪ H1-18 +25% ▪ Operating leverage & product mix
1.5
▪ H1-17 +51%
Comparatives reflect adoption of IFRS15
H1-16 H1-17 H1-18 H1-19 H1-16 H1-17 H1-18 H1-19
EBITDA (£m) Income per head (£k)
H1-16 H1-17 H1-18 H1-19
0.1
Break-even 113 Efficiency gains
95
▪ Progressive growth towards ▪ Productivity continues to increase
78
profitability.
-0.1
55
▪ Investments in H2 will increase
-0.4 expenditure. Average headcount in period at bottom of bar
chart
▪ H1-18 excludes £0.3m May 2018
69 61 63 66
placing costs.
-1.1 FY16 FY17 FY18 H1-19
BUSINESS USE ONLY © IXICO plc 2019
14H1 2019: Order Book & Cash
Order book growth (£m) H1 2019 order book analysis (£m)
▪ Roche PIII contract £0.9m
19.3
21.2 £21.2m paid in FY-18 with services
provided across FY-19
5.2 3.3
▪ £5.2m contracts won in H1-19
▪ Sep-18 order book increase
12.7
included £9.1m PIII contract ▪ Revenue excludes £0.1m fx
9.9 19.3 19.3 21.2 21.2
▪ 10% growth in order book in H1-19
Confidential, IXICO plc 2019
Opening New Revenue Closing
Sep-16 Sep-17 Sep-18 Mar-19 Wins (ex fx)
Operating cashflows (£m) Cash position (£m)
FY16 FY17 FY18 H1-19
£0.2m
7.5
£4.8m
-0.1
-0.3
▪ Phasing of customer payments ▪ Oversubscribed £5.5m in May
negatively impact H1-19 2018 (net £5.2m)
3.2
cashflows. 2.8 2.7
-1.2
-2.0
H1-16 H1-17 H1-18 H1-19
BUSINESS USE ONLY © IXICO plc 2019
15H1 2019: Working Capital and Investment
Working Capital Growth (£m) Capital Investment (£k)
7.2 7.4
£7.4m 102
Accelerate investment
75
▪ Cash balance underpins ▪ Number of years of low capital
3.3 strengthened WC position. 49 investment.
2.5
▪ Strong position from which to drive ▪ Investment to redress balance.
growth 24
▪ Investment to underpin and
accelerate growth.
FY16 FY17 FY18 H1-19 FY16 FY17 FY18 H1-19
R&D Investment (£k) S&M Investment (£k)
400 406
776
697
582 21% 335 322 26%
458 ▪ Refocus of R&D resources on ▪ Investing in S&M team
380 370
driving commercial growth. ▪ Investing in Marketing initiatives
232 227
▪ Refocus and expand R&D ▪ Investing in PR
investments to strategic priorities.
69 61 63 66
Grant income – function of R&D spend
H1-16 H1-17 H1-18 H1-19 H1-16 H1-17 H1-18 H1-19
BUSINESS USE ONLY © IXICO plc 2019
16H1-19 Summary Income Statement:
Revenue growth, margin accretion and breakeven
Income Statement H1-19 H1-18* H1-17* FY-18 FY-17* Revenue growth
(unaudited) (unaudited) (unaudited) (audited) (audited)
• Broadening range of neurological disease areas
£’000 £’000 £’000 £’000 £’000
• Across all phases of clinical development
Revenues 3,426 2,817 2,255 5,394 4,100
• With leading biopharmaceutical companies
YoY% Growth 22% 25% 51% 32% 34%
Gross Profit 2,271 1,697 1,375 3,173 2,314 Strengthening gross margin
Gross Margin % 66% 60% 61% 59% 56% • Operational leverage & service mix
Other Income 303 300 441 562 643
OPEX
R&D 458 582 697 1,033 1,256 • Increased Opex - investment in building scale &
S&M 406 322 335 754 823 capabilities to drive growth
G&A 1,574 1,201 1,037 2,593 2,117
Non-recurring - 332 112 - 165 Overview
Total Opex (ex Depreciation) 2,438 2,437 2,181 4,380 4,361 • Strong position from which to deliver FY-19
market expectations
EBIDTA 136 (440) (365) (645) (1,404)
Operating Profit/(Loss) 105 (513) (791) (797) (1,912)
Net Profit/(Loss) 215 (419) (681) (668) (1,537)
*Figures adjusted to reflect adoption of IFRS 15
BUSINESS USE ONLY © IXICO plc 2019
17H1-19 Summary Cashflow: Capitalised to fund growth
Cashflow H1-19 H1-18* H1-17* FY-18 FY-17* Closing cash
(unaudited) (unaudited) (unaudited) (audited) (audited)
• £7.5m, increase on H1-18 due to £5.5m
£’000 £’000 £’000 £’000 £’000
gross placing in May 2018
Cashflow from operating (305) 331 (281) 363 (644)
activities
Operating cash flows
Cashflow from investing (103) (47) (14) (79) (49) • £0.3m outflows H1-19 vs £0.3m inflows H1-
activities
18m - due to phasing of project advance
payments in FY18
Cashflow from financing - - - 5,164 -
activities
Investing cash flows
Movement in cash and (408) 284 (295) 5,448 (693) • Initiating investment in building scale &
cash equivalents
capabilities to drive growth & address prior
Opening cash and cash 7,861 2,414 3,120 2,414 3,120 years’ under-investment
equivalents
Effect of exchange rate - 1 (25) (1) (13)
fluctuations
Closing cash and cash 7,453 2,699 2,800 7,861 2,414
equivalents
*Figures adjusted to reflect adoption of IFRS 15
BUSINESS USE ONLY © IXICO plc 2019
18Delivering insights
in neuroscience
Operational scale for
success
Marcus Thornton, COO
BUSINESS USE ONLY © IXICO plc 2019
19Investing to scale
CLINICAL TRIALS
Imaging Site Selection and qualification
Fast and selective enrolment drives down study
duration and cost
IMAGING Safety Monitoring
IMAGE DATA
DATA
PLATFORM AI LAYER
WEARABLES IN CLINICAL TRIALS
Patient selection and stratification
DATA LAKE
Objective biomarkers & endpoints
Real world data sources
BIOSENSOR DATA BIOSENSOR
DATA PUBLISHING
PLATFORM LAYER POST MARKETING
Early and accurate diagnosis
Therapeutic recommendations tailored to the
3 RD
PARTY individual
DATA SETS
Early identification and monitoring of side
effects and disease progression
BUSINESS USE ONLY © IXICO plc 2019
20Focus on delivering process improvement and scale efficiencies
Gross Margin (%)
66
Key programmes delivering efficiencies: 61 60
+610bps
• Site qualification 47
• Site management system ▪ Operating leverage &
• New reporting platform product mix
Impact:
H1-16 H1-17 H1-18 H1-19
• Speed and quality of site start-up
• Efficiency improvements Income per head (£k)
• Enhanced responsiveness to stakeholders Efficiency gains
113
• Build knowledge base 95
▪ Productivity continues
• Enhance trusted partner and supplier relationships 78
to increase
55
Average headcount in
69 61 63 66 period at bottom of bar
chart
FY16 FY17 FY18 H1-19
BUSINESS USE ONLY © IXICO plc 2019
21Delivering insights
in neuroscience
Summary & Outlook
Giulio Cerroni, CEO
BUSINESS USE ONLY © IXICO plc 2019
22Delivering on our financial commitments
▪ Fifth consecutive reporting period reporting +20% revenue growth
▪ Expanding franchise with blue-chip biopharma client base, driving quality earnings
▪ Visibility to future revenues from large contracted order book & strong pipeline
▪ Delivering operational gearing and executing operational efficiencies
▪ Break-even & debt free; continued progress on path to profitability
Inflection point in the transformation of the business
BUSINESS USE ONLY © IXICO plc 2019
23You can also read
