Full Year Results Presentation For the twelve months to 31 ... · This presentation should be viewed in conjunction with Pacific Edge’s Financial Statements for the 12 months to

FullYearResultsPresentationForthetwelvemonthsto31March2016

26May2016

DavidDarling,CEO

PacificEdge2016FullYearResultsPresentation

Uplift inCommercialRevenue

Growing customernumbers intheUnitedStatesandothertargetedmarkets

MilestoneAchievements inUnitedStates

Expanded US sales team

Signed Federal SupplySchedule AgreementwithVA

Kaiser PermanenteUserProgrammeprogressing well

GoodCommercial ProgressinOther Markets

NewCommercialPartnership inAustralia

FirstUser ProgrammestartedinSingapore

Inclusion inCDHBnewhaematuriaHealthPathwayand available toUrologistsandGP’s in CDHBregion

Launch of Third Product,Cxbladder Monitor

Launched inNZinlate2015

Progressive rollout intoothermarketsover 2016

02:FY16HIGHLIGHTSAnotherYearofCommercial ProgressandGrowthParticularly intheUS


03:OURSTRATEGYGrowthStrategyPrimarilyFocusedontheUSMarket

OUROFFERDeliveringinnovativesolutionsfortheearlydetectionandbettermanagement ofbladdercancer

CurrentfocusonbuildingsuiteofCxbladder diagnostictests,tohelpdetectandmanagebladdercancerOurtestsarenon-invasive,accurate,fast,easytouseandcosteffective

OURMARKETSPrimarymarketistheUS,oneoftheworld’slargesthealthcaremarketsPacificEdgetestsarealsosoldcommercially inAustraliaandNewZealand

Continuingtoinvestigatenewglobalmarketopportunities– identifiedopportunityinSouthEastAsia

INVESTINGFORGROWTHFourmainareasofinvestment- People,IntellectualProperty,MarketExpansionandProductDevelopment


04:FY16REVENUEUplift inProductSales

FY16NZ$(000)

FY15NZ$(000)

Change(%)

Operating Revenue 4,976 1,900 162%

Other revenue 2,218 2,232

Total Income 7,193 4,132 74%

Inthepasttwoyears,operatingrevenuehasgrownfrom$150,000to$4.98million.

Continuinggrowthinproductsales,particularlyinNorthAmerica.IncludeslicencefeesfromTolmar AustraliafollowingestablishmentofnewcommercialpartnershipinFebruary2016

Thirdyearoffundingfroma$4.5millionCallaghanInnovationGrant

LABORATORY THROUGHPUTIncludesUserProgrammesandcommercialtests

114%increaseintest

throughputcomparedtothepreviousyear

Sixmonth financial reporting period

162% increasein operatingrevenue

comparedtothepreviousyear

OPERATING REVENUE


05:FY16FINANCIALSNAPSHOTContinuing Investment intoFourStrategicAreas

PEOPLE• ExpansionoftheUSAsalesteamto18executives• Increasedthecommercial,marketingandproduct

developmentteamsinNewZealand

PRODUCTDEVELOPMENT• LaunchofCxbladder TriageintotheUSA• LaunchofCxbladderMonitorinNewZealandin

late-2015

MARKETEXPANSION• BuildingmomentumandgainingtractionintheUSA• NewcommercialpartnershipinAustralia• Increasinguptakefromhealthcareorganisations

andurologistsinNewZealand• InvestigationintoSouthEastAsia

INTELLECTUAL PROPERTY• Continuingtoapplyforandreceivepatentsfor

PacificEdge’sdiagnostictechnologies

FY16$NZ’000

FY15$NZ’000

TotalRevenueandIncome 7,193 4,132

TotalExpenses 22,870 16,607

Net LossBeforeTax (15,676) (12,475)

Income TaxExpense - -

NetLoss AfterTax (15,676) (12,475)

Foreign ExchangeTranslation 223 154

ComprehensiveLossAfterTax (15,453) (12,322)


06:FY16FINANCIALPOSITION– BALANCESHEETCapitaltheMainSourceofFundingForGrowth

Cashandcashequivalents$24.16millionasat31March2016

Debtfreewithfundingfromcapitalandtechnologygrantsfornewproductdevelopment,commercialisation,USArolloutandinvestigationintoSouthEastAsia

Successfulcapitalraisingwithatotalof$35.3millionraisedthroughafullyunderwrittenrightsoffercompletedinJuly2015

FundsarebeinginvestedintoexpandingthecommercialprogrammeintheUSA,launchofnewCxbladder products,progressionofSouthEastAsiaopportunityandsubsequentcommercialprogrammeinSouthEastAsia

FY16$NZ’000

FY15$NZ’000

Cash,CashEquivalentsandShortTermDeposits

24,160 7,819

Trade Receivables,InventoryandOtherCurrentAssets

6,933 3,452

Property, PlantandEquipment 990 1,118

IntangibleAssets 248 244

TotalAssets 32,331 12,633

Payables andAccruals 2,523 1,931

TotalLiabilities 2,523 1,931

Equity 29,807 10,703


07:PRIMARYFOCUSONUSHEALTHCAREMARKET

FY16OBJECTIVE

BuildInfrastructureforGrowth

ACHIEVED:Expandto18salesexecutivescovering19targetedmajormetropolitanregions

Completedrecruitmentof18specialised sales executives.

Newpersonnel arenowfullytrainedandmobilised

FocusedonbuildingrelationshipswithexistingandnewcustomersincludingidentifiedVAhealthcareclinicsineachsales area

PacificEdgeistargetingsales activityin19majormetropolitanregions,whichithasidentifiedascoveringthemajorityofitspotentialmarketintheUSA.


08:CAPTURETRANSFORMATIONALCUSTOMERS

FY16OBJECTIVE

CaptureTransformationalCustomers

ACHIEVED:CompletetheFederalSupplyScheduleprocesstogainaccesstotheVeteransAdministration(VA)

INPROGRESS:CentreforMedicaidandMedicareServices(CMS)processestoallowaccess tothesepatientgroupsandinitiatecommercialrelationship

VeteransAdministration(VA)

GainedregistrationontheFederalSupplySchedule

PacificEdgenowhastheabilitytomarketandsellitsCxbladderproductstotheVA’s cliniciansandhealthproviderswhoprovidecarefor8.8millionUSveterans andtheirfamilies

CentreforMedicaidandMedicareServices(CMS)

WorkingtofinalisetheprocesswiththeCMSinthenearfuture

ThiswillallowPacificEdgetoclaimreimbursement forCxbladdertests fortheelderlypeoplewhouseCxbladdertests andare coveredunderMedicare


09:USERPROGRAMMESIncrease inUserProgrammes,FutureFocusonTransition toCommercial Customer

FY16OBJECTIVE

EnhanceAwarenessandFosterStrongAdoption

ONGOING:ContinuetorolloutUserProgrammestotargetedurologistsandclinicalgroups,particularlyintheUSA

INPROGRESS:CompletetheKaiserPermanenteUserProgrammeandtransitionthisintocommercialsalesinthefollowingyear

UserProgrammes:These areakeycomponentoftheadoptionofCxbladdertestsbyurologists

ContinuedtobuildthenumberofUserProgrammeswithafocusonLargeUrologyGroups(LUGs)whichhavefiveormoreurologistsandcommunitypracticeswithonetofoururologists

Increase inUser Programmesinthesecondhalfas theexpandedsales team reachedmoretargeturologists

KaiserPermanente

InitiatedlargescaleUserProgrammewithKaiser PermanenteinSouthernCaliforniainlateJune2015,torecruit2,000patients

Recruitmentnowcompletedafter introductionofanewelectronicrecruitingplatforminlate-2015

WenowexpecttheUser Programmetobecompletedin2016calendaryear.Followingthis,wewillbeworkingtotransitionKaiserPermanente intoalargescalecommercialcustomer


10:OTHERMARKETSGoodProgressinNewZealand,AustraliaandSouth EastAsia

FY16OBJECTIVE

GrowOurInternationalPresence

ACHIEVED:FinalisebusinesscaseforentryintotheSEAmarketandlooktoestablishoperationsinSingapore

ONGOING:Continuetoidentifynewmarketopportunitiesandexpandourinternationalpresence

SouthEast Asia:Entered intoaUser ProgrammeStudywithaleadinghospitalinSingaporeearlierinthefirsthalfyeartogenerate dataspecifictoSingaporeandtoenablephysicianstouse CxbladderDetectintheirclinicalsetting

Continuingdiscussionsandworkingthroughapprovalprocesswithseveral otherleadinghospitalstoallowthemtoevaluate Cxbladderproductsintheirownclinicalsettings

Inprocess ofestablishingcommercialbaseinSingaporewhichwillprovideahubforfurtherinvestigationintoSEA

Twodistinctmarketopportunitiesbeingevaluated:

• Patientsrequiringtestingandmanagement forbladdercancer• Rapidlygrowingnumberofmedicaltouristswhocometotheregionforregularwellness

andmedicalcheckups.

Australia:Established newcommercialpartnershipwithTolmar AustraliainFebruary2016

NewZealand:ContinuetoworkcloselywithurologistsinNew Zealand

Signedagreement withCanterburyDHBtoprovideCxbladder technologyforprimarycarereferralintheevaluationofhaematuria (bloodintheurine).


11:DELIVERA‘ONESTOPSHOP’OFCXBLADDERPRODUCTS

FY16OBJECTIVE

INPROGRESS:Delivera‘onestopshop’ofCxbladder Products

CxbladderDetectIn-Market 2013/14

CxbladderTriageNZLaunchDec2014USRollout2015

CxbladderMonitorNZLaunchDec2015USRolloutin2016

CxbladderPredictExpected Launch2016

Designed forusebyurologists,forpatientswhohavebeen referred forafullworkup

Tobeused bycliniciansandphysiciansresponsiblefortheprimarydetectionofbladdercanceras afrontlinetoolintheearly evaluationofhaematuria(bloodintheurine)

Helpsegregate lowgrade tumoursfromhighgradeandlatestagetumours

Helpphysiciansmonitorbladdercancerinpatients


12:LAUNCHPRODUCTSINTOMARKET

FY16OBJECTIVE

ACHIEVED:LaunchCxbladderTriageintheUSA

INPROGRESS:CommercialisationofCxbladderMonitorandPredict,withinitiallaunchinNewZealandandafastfollowupintheUSA

Cxbladder Triageavailable inmarketinNewZealand fromDecember 2014;LaunchintotheUScommencedinJuly2015

AnumberofleadingurologistsarecurrentlytriallingCxbladderTriage intheirclinicalsettings

CxbladderTriage performance publishedinpeerreviewed sciencepaper intheprestigiousinternationalmedicaljournal,BMCUrology,inApril2015

Received CLIAapprovalforDunedinlaboratoryinAugust 2015.WorkingthroughtheprocesstoachieveCLIAapprovalforUSlaboratoryin2016.

Cxbladder MonitorsuccessfullylaunchedinNewZealandDecember 2015;rolloutinNZandAustraliaplannedin2016

Positiveclinicalstudyresultspresented byDrYair Lotan atAUAConferenceinSanDiegoinMay 2016

OfficialUSlaunchtimedtocoincidewithpeer reviewedscientificpublicationofthestudyinmid-2016

Cxbladder PredictplannedtolaunchinNewZealand laterin2016


13:PROTECTOURINTELLCTUALPROPERTY

PATENTSACCEPTED/GRANTEDFY16FY16OBJECTIVE

ONGOING:ProtectPacificEdge’sintellectualproperty,overarangeofdiagnostictechnologies,inmarketsaroundtheworld

Title Country

GastricCancer I China

Gastric CancerII Europe

BladderCancerMarkers Australia,Korea, Taiwan

Gene Expression Ratios China,Korea

Gastrointestinal Cancer – Prognosis Japan

Colorectal Cancer– Prognosis Korea


14:ENGAGEWITHTHEPEOPLEWHOMATTER

FY16OBJECTIVE

ACHIEVED:Launchonlinepatientcommunityforbladdercancerpatients,bladdercancer.me

PacificEdgeistheleadingsponsorofbladdercancer.me,anonlinereferral sitetoenable patientstoseek themostappropriatehealthcare providersandsolutions,includinginformationonthesuiteofCxbladder products

Sitewentliveinlate-December 2015.OfficialmarketinglaunchofthesiteinMay2015tocoincidewithBladderCancer Awareness MonthintheUS

Providesonline,relevantresources forbladdercancerpatients:• Peersupport• Access toappropriatehealthcareproviders• Symptomtracking


15:STRATEGICOPPORTUNITIESFORGROWTH

• Development ofsuiteofCxbladderproducts• IPoverothercancerexpressionswithopportunitytodevelop

specificdiagnostictestsMoreProducts

• Organicgrowthinexistingmarkets– NZ,Australia,USA• Geographicalexpansionintonewmarkets– SouthEastAsia, Europe,

restofworld

• Directtoconsumer,ecommerce,corporatecustomers,integratedhealthcareproviders,nationalhealthcareproviders

• Healthcare andclinicalorganisations• Corporates• Patients

MoreCustomers

MoreMarkets

MoreSalesChannels

TargetingHighGrowthOverTheMedium TermbyCreatingMoreProducts andBuildingSales inanIncreasing Number ofMarkets


16:LOOKINGFORWARD:GROWTHEBUSINESSPRIORITIESFORFY17

MARKETS

• US:Remainstheprimaryfocusforgrowth

• Australia:WorkwithTolmar Australiatobuildawareness andincrease sales ofCxbladder testsinAustralia

• SEA: Establishabase inSingaporeforfurtherinvestigationintoSouthEastAsia, continuetosupportcurrentUserProgrammeinSingaporeandinitiatenewUser Programmeswithtargeted healthcareproviders

• NZ:ContinuetoworkcloselywithhealthcareprovidersandurologistsinNew Zealandtoencourage uptakeofCxbladder

PRODUCTS

• RolloutofCxbladder MonitorintotheUnitedStatesandAustralia

• LaunchCxbladder PredictinNew Zealand

SALESCHANNELS

• USsales teamtocontinuetargetinglargeUrologypracticesandintegratedhealthcareprovidersaswellastargeted, largeVeteransAdministrationhealthcareproviders

• Identifyandinvestigatenewsales channels

• Increase onlinemarketingandproductawareness, includingongoingsupportforpatientcommunity,bladdercancer.me

CUSTOMERS

• CompleteKaiserPermanenteUser Programmeandprogress tocommercialrelationship

• Continuetoprogress discussionswithCentreforMedicare andMedicaidServices

• ContinuetoinitiatenewUser Programmes andtransitionearlyadoptersintocommercialcustomers


17:BOARDANDMANAGEMENTProvidingTheExperienceandCapabilitytoDeliveronPacificEdge’sGrowthStrategy

Theopportunity forourCxbladder technologyissignificantandweanticipateanotheryearofgrowingreturns asweworktowards ourgoalofprovidinga‘onestopshop’ofhigh

performanceCxbladder products forurologists.

MANAGEMENTTEAM

Experiencedandknowledgeableinthefollowingareas:

Developmentandinternationalcommercialisationofbiomedicalandbiotechbusinesses

Leadership

Newproductdevelopment

Researchanddevelopment

Commercialexperienceincludingin-marketknowledge.

GOVERNANCE

BoardofDirectors

Experienceingovernance,finance,cancerresearch,biotechnologyandlifesciences, investmentandbusinessadvisory.Twonewdirectorsappointedinpasttwoyears.

SubsidiaryBoardDirectors

In-countrycommercialexperienceandscientificexpertise.

ScientificandClinicalAdvisoryBoards

Expertadviceonglobalclinicalneedsandproductapplications;andscientificprogressandclinicalopportunities.


QUESTIONANDANSWER


www.pacificedge.co.nzwww.cxbladder.comwww.pacificedgedx.com

DavidDarlingChief ExecutiveOfficerPacific EdgeLimitedTel:+6434795802 Mobile: +6421797981Email:[email protected]


DISCLAIMER

InformationThe information in thispresentation isanoverview and does notcontain allinformation necessary tomake an investment decision. Itisintended to constitute asummary ofcertain information relating totheperformance of Pacific EdgeLimited .The information inthis presentation isof ageneral natureand does not purport tobe complete. Thispresentation should beread inconjunction withPacific Edge's otherperiodic and continuous disclosure announcements, which are availableatnzx.com.Not financial product adviceThis presentation isfor information purposes onlyand isnot financial orinvestment adviceor arecommendation toacquire Pacific Edgesecurities, and has been preparedwithouttakingintoaccount theobjectives, financial situation orneeds of individuals. Pacific Edge, itsdirectors andemployees do not giveormake anyrecommendation or opinion inrelation toacquiring or disposing of shares. Inmaking an investment decision, investorsmust relyon theirown examination of Pacific Edge, including themerits and risksinvolved.Investors should consult withtheirown legal,tax, business and/or financial advisors inconnection withanyacquisition ofsecurities.Future performanceThis presentation contains certain'forward-looking statements', for example statements concerning thedevelopment andcommercialisation of new products, regulatoryapprovals, customer adoption andresults of future clinical studies. Forward-looking statements can generally beidentified bythe useof forward-looking words such as, 'expect','anticipate', 'likely','intend', 'could', 'may', 'predict', 'plan', 'propose', 'will','believe','forecast', 'estimate', 'target','outlook', 'guidance' andother similar expressions. The forward-looking statements contained inthispresentation arenot guarantees or predictions of future performance and involveknown and unknown risksand uncertainties and otherfactors, many ofwhich arebeyond thecontrol of Pacific Edgeandmay involvesignificant elements of subjective judgement and assumptions astofuture eventswhich mayormaynot becorrect. There can beno assurance thatactual outcomes willnotmateriallydiffer from these forward-looking statements. Anumber of important factors could causeactual results orperformance to differmateriallyfrom theforward-looking statements. The forward-looking statements arebased on information availableto Pacific Edgeas atthedate of thispresentation. Except asrequired bylaworregulation (including theNZXMainBoard Listing Rules), Pacific Edge undertakes noobligation toprovide anyadditionalorupdated information whether asaresultof new information, future events orresults orotherwise. No representationTothemaximum extent permitted bylaw,Pacific Edgeand itsadvisers, affiliates, relatedbodies corporate, directors, officers, partners, employees and agentsmake norepresentation orwarranty,express or implied, asto thecurrency, accuracy, reliabilityorcompleteness of information in this presentation.

This presentation should be viewed inconjunction with Pacific Edge’s Financial Statements for the12months to31March 2016 and theaccompanying media releasewhichwasreleased tothemarketon 26May2016.

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Full Year Results Presentation For the twelve months to 31 ... · This presentation should be viewed in conjunction with Pacific Edge’s Financial Statements for the 12 months to