2019 Jefferies Healthcare Conference - Management Presentation June 2019
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2019 Jefferies Healthcare Conference Management Presentation June - 2019
Disclaimer This presentation has been prepared by the Company. No representations or warranties are being made with respect to these materials. Except for historical information contained herein, the matters discussed in this presentation are forward-looking statements about expected future events and financial and operating results that involve risks and uncertainties. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. We have not independently verified any of the third-party or publicly available information included herein nor have we ascertained the underlying assumptions relied upon therein. As a result, any market, ranking and other similar industry data included herein, and any estimates and beliefs based on such data, may not be accurate and complete. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates” and “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements. All forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including, without limitation, risks and uncertainties related to economic, market or business conditions. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, the recipient agrees that neither it nor its Representatives are entitled to or will rely on the forward-looking statements and other information contained herein. The forward-looking statements included in this presentation are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements, either to reflect new developments, or for any other reason, except as explicitly required by law. In all cases, recipients should conduct their own independent investigation and analysis of the Company and its business, assets, financial conditions and prospects. This presentation presents certain “non-GAAP Measures” as a supplement to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP Measures, such as Adjusted EBITDA, as well as other statistical measures, are presented because management believes these measures provide additional information regarding the Company’s performance and because we believe they are useful in evaluating operating performance compared to that of other companies in our industry. In addition, management believes that these measures are useful to assess the Company’s operating performance trends because they exclude certain material non-cash items, unusual or non-recurring items that are not expected to continue in the future, and certain other items. The non- GAAP Measures are not presented in accordance with GAAP, and the Company’s computation of these non-GAAP Measures may vary from those used by other companies. These measures have limitations as an analytical tool and should not be considered in isolation or as a substitute or alternative to net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance, liquidity or indebtedness derived in accordance with GAAP. Past performance may not be a reliable indicator of future results. 2019 totals are “unaudited” and final audited numbers may differ from the totals presented within. These presentation materials do not constitute or form part of an offer to sell or issue, or a solicitation or an offer to purchase or subscribe for, any securities of the Company. The information contained in these presentation materials may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express prior written consent of the Company. June - 2019 2
Management Presentation
Agenda
Maravai LifeSciences Overview
Our Businesses
Bioprocess Impurity Testing
Oligonucleotide Synthesis
Protein Detection
Business Update
Financial Review
Q&A
June - 2019 3
Maravai LifeSciences Overview Our Mission is to Enable the Miracles of Science Maravai – medieval Italian word for a miracle. In science, they’re all around us. Genomics. Tumor pathology. Biotherapeutics. Maravai LifeSciences catalyzes the growth of successful pioneering life science companies by providing the expertise, capital, processes and systems so that they can continue to serve scientists to improve human health. We help scientists bring the miracles of science to life. June - 2019 4
Maravai LifeSciences Overview
Differentiated Product Offerings
Maravai is a brand leader in each of its three operating segments, offering differentiated
products to researchers and OEM customers worldwide
Bioprocess Impurity Testing Protein Detection Oligonucleotide Synthesis
Clear worldwide leader in ELISA Pioneer and leader in research Niche leader in oligonucleotides
kits to detect impurities in products for labeling and detecting with a focus on highly modified
bioprocessing proteins in tissue RNA
Enable the production and Immunohistochemistry improves risk Products contribute to
commercialization of safe and assessment, prognosis and breakthrough genomic discoveries
effective biotherapeutics treatment decisions in cancer and that are driving precision medicine
other disease states
31% of revenue 21% of revenue 48% of revenue
June - 2019 5
Maravai LifeSciences Overview
Our Operating Focus
Leadership in
Market leader with sustainable market
attractive
positions in attractive, high-growth markets
markets
Wide portfolio of products backed by decades
Differentiated
of scientific investment and supported by
products
hundreds of thousands of scientific citations
Specific investments in quality systems, ensuring
Focus on quality manufacturing consistency and continued
reputation for excellent product quality
High-touch
Direct scientist-to-scientist application support
customer and
and best-in-class customer support
technical support
June - 2019 6
Maravai LifeSciences Overview
History of Maravai LifeSciences
March 2014 September 2016 December 2016
Formed Maravai Acquired TriLink Acquired Solulink
LifeSciences Biotechnologies product
San Diego, CA San Diego, CA
Established 1996
April 2016 October 2016 December 2017
Acquired Vector Acquired Cygnus Acquired
Laboratories Technologies Glen Research
Burlingame, CA Southport, NC Sterling, VA
Established 1978 Established 1987 Established 1984
Bioprocess Impurity Testing Protein Detection Oligonucleotide Synthesis
June - 2019 7
Maravai LifeSciences Overview
Proven Management Team with Significant Life Sciences Experience
Carl Hull
Chief Executive Officer, Co-founder
Eric Tardif
President, Co-founder
Kevin Herde
Vice President, Chief Financial Officer
David Weber
Vice President, Chief Commercial Officer
Mike Houston
Chief Scientific Officer
Brian Neel
COO, Oligonucleotide Synthesis
Christine Dolan Solopak
COO, Bioprocess Impurity Testing Division of Smith & Nephew PLC
June - 2019 8
Maravai LifeSciences Overview
Maravai by the Numbers
16% $128mm
XX% 86,000
TTM Organic TTM Total Sq. Ft. of Lab and
2018-2020F
Revenue Growth Revenue Production
Organic Revenue
CAGR Facilities
43% 5,682
TTM EBITDA
Customers
Margin
$55mm 298 7,237
TTM Adjusted Employees Sellable SKUs
EBITDA
Note: TTM metrics as of April 30, 2019
June - 2019 9
Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses
Bioprocess Protein Oligonucleotide
Impurity Testing Detection Synthesis
31% of revenue 21% of revenue 48% of revenue
June - 2019 10Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses: Bioprocess Impurity Testing
Biologics Manufacturing Process
Upstream Manufacturing Process Downstream Manufacturing Process
Grow Proteins Harvest Purification Bulk Drug Substance Collected Final Drug
Host Cell Protein (HCP) Testing
Biological drugs are manufactured in cells,
like E. coli. Normal cell growth processes
result in impurities, including host cell
proteins. Purification steps seek to
eliminate these impurities. Testing kits are
used to verify the removal of impurities
June - 2019 11Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses: Bioprocess Impurity Testing
Gold Standard Immunoassays to Detect Impurities in Biologics Manufacturing
Host Cell Protein ELISA Kits Meeting Customer Needs
More than 20 “generic” kits targeting
various host cells • Gold standard assays, backed
by a 30+ year reputation
Custom Assay Services • Addressing regulatory need
Process specific assay development for continuous monitoring of
services and orthogonal testing impurities
methods to characterize impurities
• Customers seek trusted
Other ELISA and DNA Kits partners to avoid high
Broad range of kits to detect DNA or switching costs
proteins
June - 2019 12Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses: Protein Detection
Immunohistochemistry Workflow
Tissue Primary antibodies Secondary Visual detection Slide Imaging
processing & antigen detection antibodies & labeling processing & analysis
Immunohistochemistry and Immunofluorescence
Detecting the signal emitted by the target of interest requires a
host of reagents with specific affinity to the primary antibody and
to amplify and preserve the signal
June - 2019 13Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses: Protein Detection
Highly Characterized Reagents to Detect a Range of Antigens in Tissue
VECTASHIELD Meeting Customer Needs
Mounting media and other reagents
• Over 350,000 scientific
VECTASTAIN and ImmPRESS citations
Avidin-biotin complex and enzyme • Quick turnaround order
polymer detection kits fulfillment
• High touch customer support
Secondary Antibodies
Broad range of proprietary, highly
purified secondary antibodies with
specific affinity to most primary
antibodies in use
June - 2019 14Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses: Oligonucleotide Synthesis
Nucleic Acid Applications
Life Science Tools Research Clinical Diagnostics Biopharma
Enabling Genomic Medicine
Maravai specializes in complex nucleic acid synthesis chemistries,
providing highly modified nucleic acids to corporate partners and
researchers for therapeutic and diagnostic applications
June - 2019 15Bioprocess Oligonucleotide
Protein Detection
Impurity Testing Synthesis
Our Businesses: Oligonucleotide Synthesis
From Specialty Chemicals for Oligonucleotide Synthesis to Complex mRNA Synthesized
Under GMP Conditions
Messenger RNA Meeting Customer Needs
High-quality, broad range of mRNA for a
variety of applications
• 20+ years of complex oligo
Phosphoramidites & Specialty synthesis experience allows us to
Chemicals address applications at the
Broad range of high-purity reagents for forefront of genomics
in-house oligonucleotide synthesis
• GMP capabilities for therapeutic
DNA / RNA Oligonucleotides development programs
Reliable, scalable broad range of • OEM partner to provide
oligonucleotides
components for advanced
research and regulated products
Custom Nucleotides
Accurate and high-purity custom synthesis
services, including highly complex
oligonucleotides
June - 2019 16Business Update
YTD 2019 Highlights
Bioprocess Impurity Testing
Five new product launches (record): 1 Generic Kit: EndonucleaseGTP™, MAC™
MultiAnalyte Controls, Generic Kit for Protein A and two custom CHO kits.
Executed well attended Mass Spec Services Webinar; new revenue stream created
Published CHO competitor assessment technical brochure – thought leadership
Protein Detection
Continued uptake of two truly new products (Vibrance and TrueVIEW).
Fully owned Burlingame, CA facility continues to attract interested buyers due to re-zoning
with a $30M to $35M fair value range.
Oligonucleotide Synthesis
Production efficiencies continue to improve on time delivery reaching > 90% levels.
Strong reagents growth driven by capping products: Clean Cap and ARCA.
mRNA Scale up – Delivered a 5 gram GMP job and ramping up 10 gram GMP run (2H 2019).
Successful ISO audit in April.
June - 2019 17Current Year Business Update
San Diego Facility Expansion
Maravai LifeSciences and TriLink
BioTechnologies Headquarters
105,000 sq. ft. facility with adjacent
expansion opportunity
50,000 sq. ft. of custom designed
manufacturing and laboratory
space
Five ISO Class 7 and ISO Class 8
engineered GMP customer suites.
Class 5 finish/fill hoods
mRNA, Oligo and custom chemistry
pilot scale up suite (synthesis and
purification)
Custom designed solvent delivery
system
June - 2019 18Current Year Business Update
Strategic Focus
Continued revenue and EBITDA growth across all business segments
Investments in commercial resources to further international growth
Continued integration of a single overhead structure across the business
On-going evaluation of acquisition opportunities to complement organic growth
Investment in new San Diego facility to further consolidate operations and provide increased
capacity for rapidly growing Oligonucleotide franchise
June - 2019 19Financial Review
Revenue Performance
Revenue ($mm) Revenue by Segment
Pre Maravai Post Maravai
Post Maravai
$124
$104
$85
$76
$64 $68
$57 $61 Oligonucleotide
Synthesis
Bioprocess
Impurity Testing
2011 2012 2013 2014 2015 2016 2017 2018
Protein Detection
2016 2017 2018E
Note: Historical results presented on an adjusted pro-forma basis to present full year comparable results from M&A
June - 2019 20Financial Review
Strong Growth, Margins and Cash Flow
Revenue ($mm) Adjusted EBITDA ($mm) FCF ($mm)1
$53
$49
$45
$124 $36 $41
$104 $34
$85
2016 2017 2018 2016 2017 2018 2016 2017 2018
• Each acquired business generates significant cash flow, with sufficient critical mass in their individual
market segments
• Adjusted EBITDA margins at ~43% with historical organic revenue growth in excess of 20%
• Integration activities completed resulting in solidified business processes, combined commercial
organization and shared corporate services, and accelerated growth from investments
• High cash flow conversion and capital expenditure light business model
1 FCF calculated as Adjusted EBITDA less capex
June - 2019 21Financial Review
YTD 2019 Highlights
Continued Growth and Momentum into Q2 2019
March 2019 set a record for single month revenue and EBITDA.
April 2019 TTM revenues were $128M with EBITDA of $55M.
Revenue growth of 16% over TTM ended April 2018.
EBITDA growth of 18% over TTM ended April 2018.
EBITDA Margins and Cash Flow Conversion Continue to Maintain at Industry Leading Levels
Pricing trends remain favorable across all businesses.
Expenditure control with focused spend in commercial areas to drive growth.
Overall YTD 2019 EBITDA margin of 45%.
Governance
2018 financial statement audit complete with an unqualified opinion from EY.
3 years of audited financials now completed.
June - 2019 22Q&A
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