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Company Presentation
ProActive Investors Event, London 26 November 2015
© Sphere Medical Holding plc
© Sphere Medical plc 2
Introducing Sphere Medical
Sphere Medical was founded in 2002
Based in Cardiff and Cambridge, UK
Provides innovative monitoring and diagnostic
devices for the critical care setting
70 employees
Publically listed on AIM, London
© Sphere Medical plc 3
Investment Highlights
Proxima is a patient connected, CE marked BGE (blood gas and electrolytes) solution for managing patient
pathways
Strong endorsement by leading European clinicians
Clear near-term commercial value drivers
Sales for Proxima 3 gaining traction in Europe
Strategic intent to negotiate commercial deal for Proxima 4
Launch Proxima 4 in Europe in 2016
Appropriately experienced board, management team and
European KOLs now in place
© Sphere Medical plc 4
Patient Pathway Management
Medical
emergencies
Trauma
Surgical
emergencies
Planned
Surgery
Emergency
Room
Operating
Theatres
Intensive
Care
Critical Care
Ward
Home
Rehab
Death
Different patient groups have specific pathways through the various departments
Using solutions to improve workflows both within and across departments should reduce cost of treatment
and potentially improve patient outcomes
Up to date and frequent diagnostic information at the patient bedside is an important element to improving
such workflows
Blood gases, electrolytes and metabolites (BGE) are key components of the diagnostic information
* Locations where patients can be fitted
with arterial lines and connected to Proxima
*
*
*
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Blood Gas Measurement Current Practice
Current clinical practice for blood gas measurements (1)
On average blood gases are measured every 3-4 hours
For critically ill patients, up to 19 measurements are made per day
Via laboratory blood gas analysers, benchtop blood gas analysers, point of care analysers
Patients can benefit from more frequent measurements
Detect onset of critical conditions earlier to prevent complications
Detect improvements earlier to wean off ventilation
Current barriers to more frequent measurements
Increased workload for nursing staff
Rise in blood anaemia
Rise of infection risk
(1) Nursing in Critical Care 2008
© Sphere Medical plc 6
Accompanies the patient throughout the entire pathway
No setup required when entering a new station within the pathway
No reconciliation of new BGE data with previous data collected within the
pathway
saves time and prevents data mix ups
New BGE data can be collected at the patient’s bedside
No need to collect blood samples and leave the bedside for analysis
saves time and significantly reduces pre analytical errors
reduces infection risk to other patients and carers
Faster turnaround time to results
adapt therapy more quickly to changing patient conditions
Returns all blood to the patient
reduce the need for blood transfusion for unstable, critical patients
Proxima - Patient Attached, Dedicated BGE Solution
© Sphere Medical plc 7
Constraint:
2:1 nursing
Enhanced recovery pathway for at-risk elective surgery patients
Planned
surgery
Operating
theatre
Intensive
Care Ward
Home
Rehab
High level of care within ICU (2 patients per nurse)
Unstable patients within ICU require resources, blocking beds and access to nursing staff
Can lead to planned surgeries for high risk patients being postponed or called off entirely
© Sphere Medical plc 8
Enhanced recovery pathway for at-risk elective surgery patients
Proxima fitted prior to surgery and patients admitted to a protocol-driven enhanced recovery unit after surgery
to triage pathway
Closer monitoring of patient during surgery to respond to the deteriorating patient
Reduction in time to run blood gases in the enhanced recovery period allowing reduced staffing ratio (4
patients per nurse)
Stable patients are sent to ward directly, thus avoiding blocking of ICU beds
Lower cost of equipment – no need for additional BGA
Planned
surgery
Operating
theatre
Intensive
Care Ward
Home
Rehab
Enhanced
recovery unit
© Sphere Medical plc 9
Patient Trend Example
Proxima pH
Proxima pCO2
Proxima pO2
Patient stable for the first
30 hours
Patient increases
breathing rate to
compensate for falling
oxygen levels causing a
rise in pH and falling
carbon dioxide -
eventually corrected
Would struggle to do this
frequency of
measurement outside of
a research study with
current BGA
Patient 6 - pH
Patient 6 - pO2
Hours Proxima attached to the patient
Patient 6 - pCO2
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Attractive and Growing Market
$3.2 billion market worldwide for blood gas and
electrolyte testing in 2013(1)
Instruments, service, consumables
CAGR 3.1%
$0.9 billion Point of Care market worldwide in
2013
CAGR 4.9%
$0.3 billion Point of Care market Europe in 2013
CAGR 4.8%
Global market potential of Proxima > $200m
p.a.
(1) Blood Gas and Electrolyte Analysers, Global Industry Analysts Inc. 2012
CAGR over 8 years
Worldwide Lab
$2.3b Worldwide PoC
excl. Europe
$0.6b
Europe PoC
$0.3b
Market sizes
© Sphere Medical plc 11
Sales Progress: Europe
Proxima 3 launched in September 2014 in UK and March 2015 in
continental Europe
Direct sales team hired (UK, Germany, Netherlands)
First commercial sale achieved in UK
Typical sales cycle between 6 and 9 months
A growing number of individual hospital approval processes
are being undertaken
Evaluations have demonstrated that Proxima can reduce the
time from ordering a blood gas test to receiving the result by
40% to 60%
Objective is to build an active customer base leading to
recurring revenues
© Sphere Medical plc 12
Commercialisation Strategy for Proxima
Strategic intent to negotiate a commercial deal for Proxima in
near term
Newly appointed Chairman and NED have excellent industry
contacts, and business development and M&A experience and
will actively support the commercialisation process
Sphere holds all commercialisation rights and is exploring
commercial agreements with interested partners
Dr. David Martyr
Meinhard Schmidt
© Sphere Medical plc 13
Upcoming Newsflow Catalysts
First sales in Europe
Receipt of Proxima 4 CE marks
Sales launch of Proxima 4 in Europe
Additional clinical evaluation results
Commercialisation deal
© Sphere Medical plc 14
Summary
Proxima is a patient connected, CE marked BGE (blood gas and
electrolytes) solution for managing patient pathways
Global market potential of Proxima > $200m p.a.
Strong endorsement by leading European clinicians
Management team and board strengthened with considerable
relevant industry and M&A experience
Clear near-term commercial value drivers
Well funded post £13.2 million fundraise in 2015 with leading
sector specialist cornerstone investors and new and existing
institutional investors
Appendix
16
© Sphere Medical plc 17
Executive Directors
Dr. Wolfgang Rencken
CEO
Richard Wright
CFO
Appointed CEO in February 2014
More than 15 years’ experience in the
healthcare and medical devices industries
Proven track record in developing and
commercialising medical devices and driving
significant product revenue growth
Previous roles:
CEO of MAQUET Cardiopulmonary AG, an
international medical devices group with over
1,000 employees. Over three years as CEO, he
oversaw revenue growth of over 50% and more
than doubled EBITDA
COO and a director of Definiens AG
Siemens AG over a 15 year period
Appointed CFO in July 2015
More than 20 years of experience in financial
roles across a variety of sectors
Chartered Accountant with a degree in
mathematics from Cambridge University
Previous roles:
Finance Director of Alliance Pharma plc for 8
years, a UK based AIM-listed speciality
pharmaceutical company
Finance Director of Great Western Trains and
Parragon Publishing
© Sphere Medical plc 18
Non-Executive Directors
Non-Executive Director
Stephen H. Mahle
Joined Sphere in December 2011
Previous roles
Former Executive Vice President of Medtronic
Inc. and President of Medtronic’s largest
division, Pacing and subsequently President of
Cardiac Rhythm Disease Management - retired
after 37 years
Non-Executive Chairman
Dr David Martyr
Joined Sphere in January 2015
Current roles
CEO - Tecan AG
Non-Executive Director - ALDA (Analytical Life
Science Diagnostics Association), Washington
DC
Previous roles
Group President Leica Microsystems and VP
& Group Executive, Danaher Corporation
Non-Executive Director
Brenig Preest
Joined Sphere May 2015
Current roles
Investment director at Arthurian Life Sciences
Ltd
Non-Executive Director at Simbec Orion Ltd
and CeQur AG
Previous roles
Investment Driector at Excalibur Fund
Managers Ltd and Merchant Ventures Ltd
Various other roles including at PwC and GE
Healthcare
John Gregory
Joined Sphere in December 2011
Senior Independent Director
Current roles
Non-Executive Chairman – Foresight VCT
Previous roles
Non-Executive Chairman – IS Pharma,
Sinclair IS Pharma
Executive Director –Singer & Friedlander
Holdings and Managing Director – Henry
Ansbacher & Co.
Non-Executive Director
Meinhard Schmidt
Joined Sphere in January 2015
Current roles
Founder and Managing Partner - mt:onyx AG,
Director of CeQur AG, ValuationLab AG,
Chairman of Promimic AB (Sweden) and
Oncimmune Ltd
Previous roles
Director of Cellnovo Ltd, Quanta FS Ltd, CEO,
SVP & Head Business Unit
Prosthetics/Digitalization - Institut Straumann
AG and Open Digital Dentistry AG, SVP Head
Roche Decentralized Solutions – Roche
Diagnostics
Non-Executive Director
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Medical Advisory Board
Professor Jean-Louis Vincent Dr Tom Clutton-Brock
Professor of Intensive Care at the Université
Libre de Bruxelles
Head of the Department of Intensive Care,
Erasme University Hospital (University of
Brussels)
Past President of the World Federation of
Societies of Intensive and Critical Care
Medicine from 2009-2013
Senior Lecturer and Head of the Department of
Anesthesia & Intensive Care, University of
Birmingham Medical School
Programme Director PGDip & MSc Physicians’
Assistant (Anaesthesia)
Consultant in Anaesthesia and Critical Care,
University Hospitals NHS Foundation Trust
Associate Medical Director for Audit & Clinical
Effectiveness, University Hospitals NHS
Foundation Trust
Elected member of Council, Royal College of
Anaesthetists
Member of Interventional Procedures
Committee, NICE
Medical Advisory Board Medical Advisory Board
Professor Michael Quintel
Director of the Department of Anaesthesiology,
Emergency and Intensive Care Medicine at the
University of Göttingen, Germany
Member of the European Society of Intensive
Care Medicine (ESICM) group on respiratory
failure
Member of the Scientific Committee of
International ECMONet
Past President of the German Interdisciplinary
Society of Intensive Care Medicine (DIVI) and a
past council member of the German Society of
Anaesthesia and Intensive Care (DGAI).
Professor Quintel is also a member of the
German Sepsis Society and an Investigator in
the SepNet Sepsis Clinical Trial Network in
Germany and has participated in numerous
sepsis and critical care trials.
Medical Advisory Board
© Sphere Medical plc 20
Top 20 investors
Holder / Fund Manager No. of shares % holding
Woodford Investment Management LLP 29,664,500 20.9%
The Wales Life Sciences Investment Fund LP 25,000,000 17.6%
LSP Life Sciences Fund 10,904,000 7.7%
Ortho Clinical Diagnostics 8,141,250 5.7%
Octopus Investments Nominees Limited 6,250,000 4.4%
Ruffer LLP 5,653,895 4.0%
Royal London Asset Management 5,624,185 4.0%
Herald Investment Management 4,711,965 3.3%
Opportunities EIS Fund 3,217,221 2.3%
City Financial Investment Company 3,212,083 2.3%
Hargreaves Lansdown clients 2,103,965 1.5%
Hargreave Hale 1,870,919 1.3%
Baclayshare clients 1,671,263 1.2%
Peel Hunt LLP 1,564,203 1.1%
UBS 1,403,926 1.0%
Siemens Technology Accelerator GmbH 1,268,602 0.9%
Edwards Lifesciences AG 1,176,470 0.8%
Oxford Capital Partners 1,154,017 0.8%
Mr T Robinson 1,133,098 0.8%
Directors 1,080,985 0.8%
Updated: 19 November 2015 Issued share capital: 141,757,872
