Investor Presentation Deck
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Investor Presentation Deck March 2021 miravohealthcare.com TSX: MRV / OTCQX: MRVFF LEGAL DISCLAIMER Non-Reliance This presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate an investment in the securities of Miravo Healthcare (“Miravo” or the “Company”). No representation or warranty, express or implied, is given, and so far as is permitted by law, no responsibility or liability is accepted by any person with respect to the accuracy or completeness of this presentation or its contents. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts contained in this presentation. In giving this presentation, the Company does not undertake any obligation to provide any additional information or to update this presentation or any additional information or to correct any inaccuracies which may become apparent. This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. If you are in any doubt in relation to these matters, you should consult your financial or other advisers. Cautionary Statements Regarding Forward-Looking Information This presentation contains “forward-looking information” as defined under Canadian securities laws (collectively, “forward-looking statements”). The words “plans”, “expects”, “does not expect”, “goals”, “seek”, “strategy”, “future”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projected”, “believes” or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “should”, “might”, “likely”, “occur”, “be achieved” or “continue” and similar expressions identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking statements, including with respect to the Company’s growth strategy, anticipated product launches and expected regulatory approvals. Forward- looking statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the Company as of the date of this presentation, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Material factors and assumptions used to develop the forward-looking statements, and material risk factors that could cause actual results to differ materially from the forward-looking statements, include but are not limited to, the validity of the U.S. VIMOVO ’907 and ‘285 Patents claims, the outcome of ongoing patent litigation in relation to VIMOVO with respect to the ‘996 and ‘920 Patents, the impact of COVID-19 on the Company’s business, operations and financial condition, and other factors, many of which are beyond the control of Miravo. Additional factors that could cause Miravo’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included in Miravo’s most recent Annual Information Form dated March 5, 2021 under the heading “Risks Factors”, and as described from time to time in the reports and disclosure documents filed by Miravo with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on Miravo’s forward-looking statements. When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. All forward-looking statements are based only on information currently available to the Company and are made as of the date of this presentation. Except as expressly required by applicable Canadian securities law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this presentation are qualified by these cautionary statements. 2 LEGAL DISCLAIMER CONTINUED Non-IFRS Measures This presentation includes certain figures (such as Adjusted Total Revenue and Adjusted EBITDA) that are not measures recognized under international financial reporting standards (IFRS). Miravo believes that shareholders, investment analysts and other readers find such measures helpful in understanding Miravo's financial performance. Nevertheless, these financial measures do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other companies. The Company defines adjusted total revenue as total revenue plus amounts billed to customers for existing contract assets less revenue recognized upon recognition of a contract asset. Management believes adjusted total revenue is a useful supplemental measure from which to determine the Company’s ability to generate cash from its customer contracts that is used to fund its operations. EBITDA refers to net income (loss) determined in accordance with IFRS, before depreciation and amortization, net interest expense (income) and income tax expense (recovery). The Company defines adjusted EBITDA as EBITDA, plus amounts billed to customers for existing contract assets, inventory step-up expenses, stock-based compensation expense, Other Expenses (Income), less revenue recognized upon recognition of a contract asset and other income. Management believes adjusted EBITDA is a useful supplemental measure to determine the Company’s ability to generate cash available for working capital, capital expenditures, debt repayments, interest expense and income taxes. See slides 40 to 43 for the Company’s definition and reconciliation of the Company’s financial results to its Non-IFRS Measures. 3 MIRAVO AT A GLANCE Miravo is a Canadian focused, healthcare company with global reach and a diversified portfolio of commercial Rx & non-Rx products Strong Canadian Commercial Platform Canadian Commercial business Products in pain, Creative and Diverse focused on Pain, Neurology, Allergy, neurology, allergy, Management Team And Dermatology therapeutics & dermatology 25 Products 17 Global Distribution 7 Proprietary Products Partners across 31 Countries ~100 Employees Agile In-house Regulatory Flexible Turnkey Miravo currently holds over and Medical Manufacturing Capabilities 100 global patents and Affairs Team patent applications Irish Operations Supporting Global Business 4 KEY INVESTOR CONSIDERATIONS Repositioned for growth following 2019 Robust product portfolio across the pain, transformation plan neurology, allergy and dermatology verticals • Executing on a new commercial growth strategy and • New product launches likely to accelerate rate of growth of delivering diversification through new Canadian product Canadian commercial business in 2021 and beyond launches and international expansion • Room to grow market share in all categories Valuable patent portfolio complemented Strong cash position and significant by strong global distribution partners cashflow • High margin royalty streams contributing strong cash flow • Adjusted Revenues of $71.0M FY2020 • New territories and partnerships to drive further expansion • Adjusted EBITDA of $28.4M FY2020 • Strong cash position of $23.8M as at December 31, 2020 • Attractive 3.5% coupon rate on debt with a clear path to repayment • Accelerating reduction of corporate debt - $22.4M repaid in 2020 5 KEY RECENT MILESTONES • Pennsaid 2% commercial launch in Switzerland Acquisition of global Key U.S. patents protecting the • NeoVisc ONE and NeoVisc+ commercial launch rights to Resultz Vimovo U.S. royalty in Canada Nuvo Ireland established as base stream were invalidated by • Resultz license agreement with for ex-Canada Operations the U.S. court of appeals The Mentholatum Company for the U.S. 2017 2019 Q1 2021 2016 2018 2020 Nuvo Research reorganizes into Acquisition of Aralez Pharmaceuticals • Generic version of Vimovo lauched in the U.S. two separate legal entities, Canada, U.S. and International Rights significantly reducing Nuvo’s U.S. Vimovo royalty stream Crescita Therapeutics Inc. to Vimovo and other Related Assets but not impacting the Ex-US royalty and Nuvo Pharmaceuticals Inc. • Suvexx approved in Canada and subsequently launched 20+ revenue generating products in pain & • Pennsaid 2% approved in Switzerland migraine management, allergy, dermatology • NeoVisc ONE and NeoVisc + approved in Canada Canadian commercial infrastructure • Nuvo rebrands to Miravo Healthcare • Suvexx