Transcript PowerPoint-presentation

Swedish American Life Science Summit 2009
August 2009
Private Equity in Life Science
• Listed private equity company that builds successful life science companies
together with inventors
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Select right concepts
Contribute with entrepreneurship and capital
Formed in 1998
• Balanced portfolio currently with 12 companies and 1 wholly owned subsidiary
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4 in drug development and biotechnology
8 in diagnostics and medical technology/device
1 sales and distribution company
LinkMed’s goals and objectives are
• To generate a healthy return
on shareholders’ equity,
sustaining an average return
of more than 20 percent per
year over a five year period
• To be a preferred partner for
innovators and other venture
capital investors within the
area of life science
• To be a leading listed private
equity player within the area
of life science in Sweden,
thereby providing the
opportunity to invest in
unlisted R&D life science
companies
Investment focus and management owner concept
Investment criteria
• Life science sector with product
focus, preferably Swedish based
• Ownership potential of over 20%
• Large commercial potential
• Strong intellectual property
• Dedicated innovators/entrepreneurs
• Shared view on long term strategy
• Clear exit opportunities
• The investment fits with LinkMed’s
portfolio in terms of maturity and risk
profile
The management owner concept
OPERATIONAL
FOCUS
Building value through
active management
and capital
From new
concept, to
product
development
Market
introduction
LinkMed’s Expertise
Members of the LinkMed management team have held CEO positions
in seven of the portfolio companies
Board direction
and business
planning
STRATEGIC
FOCUS
Financial information
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Listed on OMX Nordic Exchange Stockholm since
December 2006 (LMED)
Ticker LMED
Market cap > SEK 300 million
In total SEK 506 million invested in the LinkMed
portfolio companies (end of Mar-09)*
SEK M
600.0
500.0
Largest shareholders (after share issue in June - 2008)
− Fast Partner AB
18.7%
− Mohammed Al Amoudi
11.6 %
− Koncentra Holding AB
7.8%
− Mannersons Fastigheter AB
5.4%
− Ingemar Lagerlöf (CEO and founder)
5.4%
Co-investors include
− Scandinavian Life Science Invest
− Koncentra Holding
− Karolinska Development
− Uminova Invest
− Norrlandsfonden
400.0
300.0
200.0
100.0
Co-investor
investments in
portfolio companies
Investment by
LinkMed
0.0
Investment history (end of March-09)*
Invested in portfolio companies by LinkMed
– In 2009: SEK 14 Million
– in 2008: SEK 31 million
– in 2007: SEK 64 million
– in 2006: SEK 34 million
* Does not include acquisition of Olerup SSP
Portfolio Companies - overview
Drug Development and biotech companies
Company
Focus
Stage of Development
Investment year
AnaMar Medical
Joint diseases
Phase 1/ commercialization stage/ Out licensing
1998
IMED
Monoclonal antibodies
Pre-clinical stage
2002
NovaHep
Liver stem cells
Early discovery / development stage
2005
Recopharma
Carbohydrate technology
Pre-clinical stage
2004
Diagnostics and Medical Technology and Device
Company
Focus
Stage of Development
Investment year
AbSorber
Transplantation testing
Commercialization
1999
BioResonator
Diagnostics -Glaucoma
Late stage development – commercialization in 2009
2000
Biovator
Allergies
Late stage development - commercialization in 2009
2000
Likvor
Diagnostics – Neuro
Late stage development - commercialization in 2009
2007
Olerup International
Sales and distribution
Sales and distribution company
2010
Olerup SSP
Transplantation testing
Commercialization
2009
ONCOlog
Radiotherapy
Commercialization stage
2004
OrtoWay
Orthopedics
Late stage development- commercialization in 2009
2006
Pharmacolog
Chemotherapy
Late stage development- commercialization in 2009
2007
AbSorber
XM-ONE® - new transplantation crossmatch test
• XM-ONE® is unique in that it is the first standardized
test that can detect antibodies against the cells
that line the inside of blood vessels
• These endothelial cells are the first point of
contact between the transplanted organ and the
recipient’s immune system
• Anti-endothelial cell antibodies have been shown
to play a key role in causing post-transplantation
rejections
• Focus on kidney transplantation
• CE market for sales in the EU countries
• FDA registered for sales in the US
World market
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75,000 organs are transplanted annually
and of those 55,000 are kidneys
US market stands for one third of all organ
transplantations
• First US order in January 2009 from UCLA
Olerup SSP
Leader in HLA typing
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Olerup SSP specializes in rapid and highly specific HLA
typing, used in transplantation
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Olerup SSP is a leading global supplier of products for
PCR-based HLA tissue typing
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Strong market position
Well-known brand
Strong in-house knowledge base
Updated kits
Products are mainly used to match patients and
donors to avoid rejections in connection with bone
marrow transplantation (hematopoietic stem cell
transplantation) and organ transplantation
Continuous growth and exceptional profit margins
throughout 17 years of operations
Acquired from Dr. Olle Olerup in June, 2008
Q1 2009
Jan – Dec 2008
Sales, MSEK
23.0
70.3
EBIT, MSEK
12.8
44.8
Olerup SSP - Strong growth in unrelated HSC
transplantations
Transplantations of unrelated hematopoietic stem cells
12,000
Total CAGR 12%
Number of donations
10,000
CAGR 30%
8,000
Cord blood units provided
CAGR 37%
6,000
Cord blood units provided
Peripheral Blood Stem
CellsBlood
donations
Peripheral
Stem
4,000
Cells donations
Bone marrow donations
BM donations
2,000
2002
25,000 HSC transplantations p.a. in total, of
which almost 50% is with unrelated donor
2003 0
2000
CAGR -3%
2004
2001
2005
2002
2003
2006
2004
2005
2006
Source: Bone Marrow Transplantation (2008) 41
Market driven by :
• Increase of approx. 10% p.a. of transplantations with unrelated donor in
developed markets
• Growing demand in emerging economies
• HSC market can be divided into high and low resolution typing
• Olerup SSP targets the unrelated segment that requires rapid typing with
high resolution
• Market opportunities in pharmacogenetics
Opportunities to build
Developing
companies
Challenges
− Cash
− Market knowledge and
reach
Prospect
− Growth opportunities
New identity
- Products on the market
- Steady cash flow
- Strong growth
opportunities
Cash flow generating
companies
Challenges
− Future sales growth
− New products
Prospect
− Sustainable cash flow
- Opportunities to acquire
new companies or
products
Further growth
opportunities
Olerup International – global distribution and sales
company recent acquisition and Joint Venture
• Olerup International is an global distribution and sales
company with two subsidiaries Olerup GmbH and
Olerup Inc. Olerup GmbH with an office in Vienna,
and Olerup Inc. with an office in West Chester, PA.
• Acquired QIAGEN GmbH, Vienna, in June, 2008 now
Olerup GmbH
• Take over of key HLA skilled personnel plus
infrastructure from NorDiag Inc West Chester, PA, USA
– formed Joint Venture with NorDiag a Norwegian
biotech company to make this work
• Global sales organization handling sales of Olerup SSP
typing kits and Absorbers XM-One® and other
products in the transplantation field including product
from NorDiag
• Gives full control over sales and products get to a
better margin
• Enhance the opportunity to add other products from
outside the group
Initiative in transplantation testing
• Niche sector: 500 leading clinics globally
• Growing sector: 5 – 10 % annually with good margins
+ Same end-customers!
+ Same distribution!
+ Production synergies!
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XM-ONE®
is the
first standardized
test to detect
antibodies
against
endothelial cells
• US launch is
ongoing
• Specializes in
rapid and highly
specific HLA
typing
• Operating margin
over 55 %
• Global distribution
company with
sales office in
Stockholm, Vienna
and outside
Philadelphia, US
+ R&D collaborations!
The portfolio continues to develop and mature
Biotechnology and Drug development
At listing on NASDAQ OMX
According to plan
2006
5
4
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2009
5
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3
3
2
2
1
1
0
Explorativ
In-vitro
In-vivo
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CD/IND
Klinik
Only larger projects from the companies
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4
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2
1
Explorativ
In-vitro
1
In-vivo
CD/IND
Klinik
The portfolio continues to develop and mature
MedTech and Diagnostics
At listing on NASDAQ OMX
Only larger projects from the companies
According to plan
Portfolio companies selling on the market
A number of
Biomarkers
XM-ONE® for
USA and Europe
More than 300
typing kits
A number of
products within
radiotherapy
A number of products entering the market
Launch of IOP
device
Launching
DrugLog
Launch of
allergenicity test
Launching Celda for
NPH diagnostics
Launching OrtoWell
and OrtoMixer
High expectations going forward
OrtoWell: Instrumentation system for the controlled separation of vertebrae
and accurate placement of artificial spinal implants or other therapies, CE
marked in December 2008
OrtoMixer: The bone cement preparation and administration system
Likvor’s diagnostic breakthrough instrument for assessment of the CSF
dynamics will be ready later in 2009. It will help neurologist and
neurosurgeons to diagnose patients with Normal Pressure Hydrocephalus
(NPH). It can also be used to check if a patient’s shunt is working properly
AnaMar is currently running clinical phase testing with their compound
against rheumatoid arthritis and osteoarthritis, results later in 2009
Biovator’s first test that predicts whether chemical substances may
cause allergies will be introduced to the market. It will dramatically
reduce the use of animal testing.
Successful launch of XM-ONE in the US and increased sales force in
Europe together with Olerup International
Why invest in LinkMed?
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Portfolio of select companies
Strong and dedicated management
Liquidity in the share
Transparency and governance of the company
Less risk
Unique opportunity to reach unlisted Nordic life
science companies
Several companies on the edge of breakthrough
with products ready for the market
Attractive valuation
Strong cash position after a successful share issue
Leading private equity life science
Swedish American Life Science Summit 2009
August 2009
www.linkmed.se