nyse american: zom · immunoassays, molecular assays, whole blood samples & multiplexing on the...
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NYSE AMERICAN: ZOM
Disclaimer
These materials have been prepared for informational purposes only in relation to Zomedica and are not, under any circumstances, to be construed as an offering of any
securities for sale directly or indirectly in any province or territory of Canada, in the United States or in the territories or possessions thereof. Prospective investors should not
construe the contents of this presentation as legal, tax, financial, investment or other advice. Each investor should make his own inquiries and consult his own advisors as to legal,
tax, financial, investment and related matters concerning Zomedica and any investment therein. The information presented in this presentation is considered to be accurate;
however, there is no expressed or implied representation or warranty as to the accuracy of any such information.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain
events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that
such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that
could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether our strategies and
business plans will yield the expected benefits; uncertainty as to the timing and results of development work and pilot and pivotal studies, uncertainty as to the likelihood and
timing of regulatory approvals, availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary
acceptance of our products; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in
technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; risks pertaining to permits and licensing, intellectual property
infringement risks, risks relating to future clinical trials, regulatory approvals, safety and efficacy of our products, the use of our product, intellectual property protection, risks
related to the COVID-19 pandemic and its impact upon Zomedica’s business operations generally, including Zomedica’s ability to develop its diagnostic products, and the other
risk factors disclosed in our filings with the SEC and under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as
exhaustive.
The forward-looking information contained in this document is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking
information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are
cautioned not to place undue reliance on forward-looking information.
4/24/2020 2
Focus on Novel Companion Animal Diagnostics
• Late-stage development company on verge of commercializing it’s first
major platform, TRUFORMA™
• Bringing the world’s most sensitive detection technologies to pet healthcare
through exclusive partnerships
• Targeting unmet clinical needs
• Management team with more than 100 years veterinary industry experience
• Voice of customer network of over 3,000 veterinary professionals
• Razor – Razor Blade business model with instrument platforms and recurring
consumable revenue
Leadership TeamBased in Ann Arbor, MI, with more than 100 years of cumulative pet healthcare experience
Shameze Rampertab, CPA, CAInterim CEO & CFO
Bridging financial, investment analysis, and life science arenas to drive shareholder value.
Stephanie Morley, DVMPresident & Chief Operations Officer
Building strategic pipeline to give back to fellow vet practitioners.
Bruk HerbstChief Commercial Officer
Harnessing industry-leading expertise to connect vet practitioners with best-in-class solutions.
Johnny Powers, PhDBoard Member and Strategic Advisor
Executive leader with proven track record in medical diagnostics
i4C Innovations
4
Fastest growing segment in pet healthcare
Sources:
Gen Z and Millennials as Pet Market Consumers: Dogs, Cats and Other Pets, Packaged Facts, February 2018
2016 pet owner survey conducted by The Human Animal Bond Research Institute Foundation in partnership with Cohen Research Group (n=1,995 pet owners). Percentages represent those responding “Strongly Agree” of “Agree”
MarketsandMarkets.com, April 2019: https://www.marketsandmarkets.com/Market-Reports/companion-animal-diagnostic-market-173823870.html 5
“I feel that my pet is an
important part of my family”98%
Veterinary Diagnostics is a Very Attractive Market
• Humanization of pets is a rapidly growing global trend
• Millennials spending more on pets than baby boomers
• Pressure on traditional veterinarian revenue streams
• 68% of U.S. households have at least one pet
• 83% of dog-owning households visit the vet every year
• Estimated 170M clinical visits in the U.S. in 2018, growing 3-5% annually
• Trend toward point-of-care diagnostics
• U.S. market $2.8B in 2018 ($4B global), growing ~10% annually over coming years
• Favorable payor and regulatory environments
6
Diagnostic Testing is Essential to a Pet’s Well-BeingPets can’t talk – So they tell us what’s wrong through their test results
In-Clinic Testing✓ Results During Pet Visit
X Often Lacks Ref Lab Accuracy
Remote Reference Lab Testing✓ Highly Accurate Equipment
X 1-5 Day Results Turnaround Time
Unmet Clinical Needs Exist: Lack of Sensitivity/Specificity of Currently Available
In-Clinic Platforms Require Many Tests to be Sent to Remote Reference Labs
Zomedica Platforms Have the Potential to Change the Dynamics for
Veterinarians, Patients and Pet Owners
Results In Minutes Reference Lab
Accuracy
Earlier Diagnosis
& Therapy
Better Patient Outcomes
& Disorder ManagementGreater Confidence &
Control of Cost, Revenue
& Process
Delays results and treatment and often requires multiple vet visits with higher costs for the pet owner
7
Our Inaugural Product
TRUFORMA™ Targeting Ref Lab Quality in a Small In-Clinic Instrument
1. Today, highly accurate results require large, expensive,
sophisticated equipment – only found at a reference lab
2. Existing in-clinic platforms struggle to achieve reference lab
immunoassay accuracy
3. For a confident diagnosis, tests are sent out to a reference lab
– delaying results and taking control away from the veterinary care
team and pet owner
9
Tennis ball scale
Industry Comparison
Siemens Immulite®
TRUFORMA™ is aimed at providing reference quality
results in the clinic during the patient visit
TRUFORMA™ is an investigational device, not currently available for sale and limited to investigational use only.
TRUFORMA™
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Bulk Acoustic Wave (BAW) SensorMeasures small changes in frequency in response
to binding events
Disposable Cartridge
Pre-Loaded with ReagentsMinimal sample prep
and simple workflow
Designed to Provide
Reference Lab
Quality ResultsTest results in less than 20 min.
Based on Proven Highly Sensitive Bulk Acoustic Wave Technology from
Qorvo Currently used in Telecommunications and Aerospace Industries
70 issued and disclosed patents covering instrument, cartridge, assay development, board and assembly, die and manufacturing
Completion of verification
and validation of initial
assays in 2020
Semiconductor technology
that until now has been
used extensively in the
telecommunications and
aerospace industries
Feasibility results show
excellent performance data
as the product moves into
validation
All marketed assays will
have a time to result <20
minutes
Species CorrelationAnalytical / Dynamic
Range
Immulite 2000®
Reported Range
TSH Canine & Feline 0.95 0.025 - >15 ng/mL 0.03-12ng/mL*
tT4** Canine & Feline >0.95 0.45 - >30 µg/dL 0.5-15ug/dL*
fT4 Canine 0.95 2.3 - >126.4 pmol/L 3.9-77.2 pmol/L
Cortisol Canine 0.96 ~1 – 100 ug/dL 1-50 ug/dL
eACTH Canine n/a n/a n/a
*values only available on canine data only** canine verification data
12
We Estimate ~108K
Worldwide TRUFORMA™
Placement Opportunities,
Driving Recurring Revenue
in Consumables
Sources:IDEXX 2018 Organic Revenue Growth and CAGR data available publicly:
Research https://www.idexx.com/files/20190815 investor day 1130.pdf
Estimates based on current in clinic instrument manufacturer reports and
number of reported clinics
US Clinics Already
Running In-Clinic
Chemistry
International Clinics
Already Running
In-Clinic Chemistry
Greenfield Clinics
Not Running
In-Clinic Chemistry
Today
Total Worldwide
Placement Opportunity
50,000
23,000
108,000
All clinics currently running
in-house chemistry tests are
immediate potential placement
opportunities
35,000
TRUFORMA™ 2020 Controlled Launch PlanDeveloping the market with a thoughtful and targeted roll-out
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Expected Instrument &
Consumable Revenue:Proven Adoption
Targeted Launch: Select Strategic Markets
Instruments Placed for
Validation Studies:Key Thought Leaders
Instruments Placed
for Pilot Program: Academia & Referral
Q4
Drive Consumable
Utilization: Instrument Placements
Talent:Initiate Onboarding of
Sales Team
Demand Generation:Market Education
Launch Strategic Sites: Influencers, Academia, Emergency
Referral Centers & Corporate Accounts
14
Projected TRUFORMA™ Launch and Menu Expansion TimelineFlexibility of Platform Technology Offers Steady Cadence of New Product Launches and Test Menu Expansion
Launch instrument
with thyroid &
adrenal test menu
(5 tests)
Launch 2
additional tests
non-infectious
GI assays
Launch 2
additional tests
novel renal and
diabetes markers
Launch 2
additional
tests
2020 20232021 2022
Platform Capabilities & Additional Opportunities:
Immunoassays, Molecular Assays, Whole Blood Samples & Multiplexing on the Same Unit
Additional Novel Diagnostic Platforms
and Assays in Development
Targeting Multiple Unmet Clinical Needs
Exclusive Global Veterinary Rights to diagnostic In-Clinic
Biosensor Platform(QRVO: Market Cap $13B)
Exclusive Global Veterinary Rights for novel
pathogen detection system with novel in-clinic diagnostic instrument
Exclusive Global Veterinary Rights for cancer liquid biopsy technology for
veterinary application
16
Zomedica PartnershipsLeveraging leading-edge human technologies and
exclusive partnerships for the global veterinary market
ZM-020 ZM-017 & ZM-022
Cancer
Liquid Biopsy Platform
Single Cell Capture & Analysis
Initial Assays: Osteosarcoma,
Hemangiosarcoma
& Lymphoma
In-Clinic Pathogen
Detection Platform
Unlimited Multiplexing
Initial Assays: 5 Fecal & 12 Urine
Ongoing Assay Development:
Respiratory & Skin Test Menus
17
Additional Novel Platforms & AssaysGlobal Exclusivity – Multiple IP Across Technologies & Species
In-Clinic Pathogen Detection Platform Will Address $600M Fecal Market*
18
Fecal test results in the clinic with potential for reference lab accuracy
Expected Menu• Hookworm
• Roundworm
• Whipworm
• Giardia
• Coccidia
• More than 40M fecal tests run in the U.S. each year*
• In-clinic testing (33M tests annually) utilizes antiquated visual microscopic analysis which lacks
sensitivity/specificity of ref lab testing*
• Ref lab testing (7M tests annually) will not provide a result during the patient visit*
• We believe the Zomedica platform will bring ref lab sensitivity/specificity (or better) to the clinic
• Fully-automated, miniaturized Raman spectroscopy platform capable of broad-based pathogen
identification in minutes developed by Seraph Biosciences, Inc. and Wayne State University
• In-clinic fecal testing will result in better pet outcomes and faster recovery
• Commercial launch expected by 2022
• Expanded menu to include urinalysis testing
* Guggenheim Research Report: “The Fecal Diagnostic Market: Don't Be Afraid to Step in It – October 20, 2019
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Projected Pathogen Detection Platform Launch TimelineInitial launch for Fecal Pathogen detection, with Urine Pathogen detection added later
Launch Pathogen Instrument
with 5 Panel Fecal Test Menu
2022 2023
Launch 12- Parameter Urine
Test Menu
Canine Cancer Liquid Biopsy Platform
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First blood test for detection of canine cancer
Initial Menu• Osteosarcoma
• Hemangiosarcoma
• Lymphoma
• 6M dogs develop cancer each year*
• Almost half of dogs over the age of 10 develop cancer**
• Current cancer detection requires expensive imaging testing and invasive biopsies
• Zomedica cancer detection is non-invasive from simple blood draw
• Identification and analysis of rare circulating tumor cells out of millions of cells
• Ref lab platform with results available within 48 hours
• Cutting edge in animal and human medicine
• Development continues for future commercial launch
*https://fetchacure.org/resource-library/facts/
**https://www.avma.org/resources/pet-owners/petcare/cancer-pets
21
2020 Strategic Priorities
• Complete development & validation of the TRUFORMA™
platform with 5 initial assays
• Launch TRUFORMA™ in select target markets and ramp to
commercial revenue
• Continue development of additional high-value
TRUFORMA™ assays
• Advance the development of the fecal platform
• Identify reference lab partner for the cancer platform
• Therapeutic product partnership candidates
2020 & Beyond
22
• Voice of the Vet™
Community (3,000 and growing)
• Academic Institutions
• Key Opinion Leaders
• Sales & Marketing
Team in Place
• Continuing Education
• Key Conferences
• Media Relations
• Preconditioning
TRUFORMA™
In-Clinic Platform
Thyroid Disorders Assays
Free T4: Canine
TSH: Canine & Feline
Total T4: Canine & Feline
Adrenal Disorders
Cortisol: Canine
Endogenous ACTH: Canine
2 First-Ever Point-of-Care
Assays
1. Evergreen Platforms: Finalize
development of fecal/urine and
cancer liquid biopsy platforms
2. International Expansion:
International market is 2x size of US
market
3. Assay Expansion: Add new TRUFORMA™ assays to installed instrument base
4. Other Species: Develop new assays on existing platforms for livestock and poultry applications
Market-Ready
Infrastructure
Industry
Outreach2020
Product Launch
Ongoing Expansion
Beyond 2020
Diagnostic Commercialization and Growth Strategy
Capitalization Table
23
Capital and Financial Information
Cash @ 12/31/19* $0.5 MM
Working Capital Deficit @ 12/31/19* $0.3 MM
Available Unsecured Loan Facility @12/31/19 $5.0 MM
Preferred Shares @ 04/09/20** 12
Warrants @ 04/09/20* 40.2 MM
Common Shares @ 04/09/20* 162.2 MM
Options @ 04/09/20 12.0 MM
Management & Director Ownership @ 04/09/20 14.3 MM
* * The Company closed on February 14, 2020 a registered direct offering of $2.5MM and on April 9, 2020 a public offering of $4.0MM
Exchange NYSE American: ZOM
Market Cap @ 04/23/20 $24.3 MM
Price @ 04/23/20 $0.15
52-Week Range$0.11 Low
$0.50 High
Avg. Daily Volume 11,700,000
** These 12 preferred shares do not have voting rights and are not convertible into common shares
• $4B global market opportunity
• Humanization of pets driving nearly 10% annual market growth
• Diagnostics is the fastest growing sector in pet healthwith few players
• Diagnostic platforms built for sustainable revenue –additional assays to address unmet needs
• Global veterinary exclusivity rights to proven technologies for all species
• First-ever assays
Why Invest in Zomedica
Appendix - Endnotes
25
2016 pet owner survey conducted by The Human Animal Bond Research Institute Foundation in partnership with Cohen Research Group (n=1,995 pet owners). Percentages
represent those responding “Strongly Agree” of “Agree”
MarketsandMarkets.com, April 2019: https://www.marketsandmarkets.com/Market-Reports/companion-animal-diagnostic-market-173823870.html
APPA (American Pet Product Association) Pet Owner Survey
https://fetchacure.org/resource-library/facts/
https://www.avma.org/resources/pet-owners/petcare/cancer-pets
IDEXX 2018 Organic Revenue Growth and CAGR data available publicly: Research https://www.idexx.com/files/20190815 investor day 1130.pdf
Estimates based on current in clinic instrument manufacturer reports and number of reported clinics
Guggenheim Research Report: “The Fecal Diagnostic Market: Don't Be Afraid to Step in It – October 20, 2019
Hypothyroidism in dogs – Panciera DL, Journal of the American Veterinary Medical Association 204(5):761-7 · April 1994, Dixon RM, Epidemiological, clinical, hematological
and biochemical characteristics of canine hypothyroidism, DOI: 10.1136/vr.145.17.481, 1999
Cushing’s Disease in dogs - Horm Res. 2009 Jan;71 Suppl 1:140-3. doi: 10.1159/000178058. Epub 2009 Jan 21. Cushing's disease in dogs and humans.
Feline hyperthyroidism - J Feline Med Surg. 2012 Nov;14(11):804-18. doi: 10.1177/1098612X12464462. Hyperthyroidism in cats: what's causing this epidemic of thyroid
disease and can we prevent it? Peterson M1.
Investor Relations Contacts
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Zomedica
Shameze Rampertab, Interim CEO, CFO
+1 647.283.3630
PCG Advisory Group
Kirin Smith, COO
+1 646.863.6519