AEP CMD Karen West.pptx

Transcription

AEP Capital Markets Day
12 June 2014
Solesis Medical Technologies
Karen West, Divisional Managing Director
Fenner PLC Board Away Day 2014 1
Introduction to Solesis Medical Technologies
§  Newest division of Fenner, focused on developing and
manufacturing state of the art medical materials, components and
devices.
§  Secant Medical is a high growth company, generating 75% of
division sales with strong margins and cash generation.
§  Xeridiem is a medical device manufacturer. We are currently
investing to increase its proprietary products focus
Fenner PLC AEP Capital Markets Day June 2014
2
Karen West
Work experience
2012 –
Present
Divisional Managing Director, Solesis Medical
Technologies
2011 – 2012
Divisional Director, Strategy, Solesis Medical
Technologies
2010 – 2011
Sr. Vice President, Secant Medical, Inc
2005 – 2010
General Manager, Secant Medical, LLC
2000 – 2005
Other roles at Secant Medical
Education
2008
MBA, Lehigh University
Bachelor of Science Degree in Textile Design,
Philadelphia University
3
Solesis Medical Technologies – overview
4
Solesis Medical Technologies - overview
$32.8 M
5
§  Collaborates with clients to develop
biomedical textile components for
human implant using plastic polymers,
bioresorbable polymers and metals
Endovascular stent graft
made from PET fabric
§  Manufactures developed components
under long term supply contracts for
medical device manufacturers
§  Expanding its technology platform into
resins and other forms of biomaterials
Hernia repair
6
Temperature sensing catheters
§  Contract product design and
manufacturing of single use
disposable or short term devices
§  Manufactures under long term
supply agreements
Silicone balloon
Gastronomy tube
for enteral feeding
§  Focus on products used in
minimally invasive and/ or
endoscopic procedures
§  Primary market areas include:
gastroenterology, urology and
cardiology
7
Solesis Medical Technologies
– revenue breakout
Solesis accounts for 12% of AEP revenue
3%
9%
PA
88%
AZ
Secant Medical
AEP other
Xeridiem
8
US healthcare environment – current issues
§  Competition
§  Regulatory standards
§  Emerging markets
innovation
markets
§  Funding
§  Reimbursement
§  Approval cycles
Opportunities
for Solesis
§  Backwards integration
for supply chain control
§  Development of
proprietary products
(outsourced R & D)
manufacturing
§  Minimally invasive
technology focus
selling
§  The face of the
customer is changing
§  Cost vs. value
§  Outsourced R&D
§  Supply chain risk
§  Margin pressure
§  Broader technology
platform for enhanced
value add features (cost
vs. value)
§  Ageing population a
strong growth driver
9
– case study
Developing polymer technology
for the medical industry
10
– timeline
Company
founded by two
professors from
Philadelphia
College of Textiles
& Science
1960’’s
Medical textile development started in
key implant areas. Prodesco develops
early implantable fabric structure for
vascular grafts
1970’’s
Prodesco incorporates – develops first
resorbable mesh
11
– timeline
Mid – 1990’s
Development of Endovascular stent*
grafts with early stage start up company
Late – 1990’s
Prodesco, Inc., establishes the
Medical Products Division
* Product is largest part of commercial business today.
12
– timeline
2000
Karen West joins Prodesco, Inc.
2002
Secant Medical, LLC launches as a wholly
owned subsidiary of Prodesco, Inc,
reflecting increased emphasis on medical
products
13
– timeline
2008
Fenner PLC acquires Secant Medical, LLC and
Prodesco, Inc., thereby entering the medical
market
§  Increased investment, partly funded
by internal cash generation
§  Revenue growth rates accelerate
14
– timeline
Secant Medical and Prodesco merge
to form Secant Medical, Inc.
Secant Medical, Inc.®
§ 
Transforming Biomaterials for Life™
15
– timeline
Launches new strategic plan
Establishes the Emerging
Technology Group to focus
on expansion in key
technology areas
16
– timeline
Commences significant facility expansion in
preparation for future growth
Planned $25 million facility expansion – keeping pace with the fast
changing market and the evolving needs of the industry
17
– financial performance
Since acquisition by Fenner
§  Revenue growth:
~ 20% p.a. CAGR
§  Operating margin:
above AEP average margin
(17.3% in FY13)
§  Free cash-flow conversion ~ 90% (average)
Medical revenue has grown faster and is more profitable
than the AEP average
18
– key characteristics
of the business today
Mission critical applications
Unique core technology
Small piece of overall device cost
Strong customer relationships
Minimal competitor base
High margins
Growing demand
19
– Cardiovascular product example
Video
Endovascular Stent Graft AAA
§ 
Repair of AAA- Abdominal Aortic
Aneurysm
§ 
One in 250 people over age 50 will die
from a ruptured AAA
§ 
4 times more prevalent in men
§ 
There are no symptoms – “silent killer”
§ 
US Market is valued $650M, equal to half
the WW Market
§ 
CAGR – 8%
§ 
Secant manufactures products for the
leading device manufacturer
§ 
This is a minimally invasive procedure
20
– flow diversion stent
Video
Endovascular repair of
cerebral aneurysm using
flow diversion stent
§ 
One in 50 people have an
unruptured brain aneurysm
§ 
Annually, 30,000 people suffer from
ruptures in the US, 40% die and
66% of survivors suffer permanent
neurological damage
§ 
There are 500,000 deaths worldwide
annually
§ 
Most prevalent in people ages 35-60
§ 
Global Market for repair devices is
valued at $980M, CAGR – 5%
§ 
This is a minimally invasive
procedure and a growth area for
Secant
21
– robust pipeline
Devices for minimally invasive surgical
techniques
Neurovascular
Cerebral aneurysm
Pipeline Projects
by Market Segment
Cardiovascular
Distal Protection
7
36
Cardiovascular
Transcatheter Heart Valve
Orthopedic
Cranial Cruciate Ligament
GENERAL
ORTHO
OTHER
3
9
24
NEURO
EVAR/CAR
Robust pipeline is necessary
to ensure future growth and
provides strong visibility
22
– research into emerging
technologies
§  Partnerships with leading academic institutions
§  Sophisticated polymer synthesis capabilities
§  Biodegradable polymer development
§  Coatings & surface modifications
Partnerships
Massachusetts Institute of
Technology
23
Strategic development and growth drivers
24
– developing market presence
ECM
SECANT has met
enough needs
across multiple
vertical markets to
have gained a
presence
Collagen
Films
Fibers
PGS*
? Medical
Textiles
? Specialty
Polymers
Coating
Vertical Markets
General
Surgery
*PGS –Poly
Glycerol
Sebacate
Orthopedics
Cardiovascular
Neurology
Wound
Care
Platform Technology Focus
TRANSFORMING BIOMATERIALS FOR LIFE™
25
– strategic development
§  Emphasis being placed on the development
of adjacent platform technologies
§  Developing a synthetic and bioresorbable,
fiber extrusion platform
§  Currently under development - other
Biomaterials* for regenerative medicine
§  Acquisition targets include companies with
relevant platform technologies serving
medical device manufacturers
*A biomaterial is any matter, surface, or construct that
interacts with biological systems
26
Vision
27
Solesis Medical Technologies – our vision
§  Medical has been identified as offering the potential for superior
revenue growth and margin
§  Growth will be generated by reinvesting in Secant Medical’s expertise
and strong pipeline supplemented by appropriate acquisitions
§  Enhanced prospects for Xeridiem from developing proprietary devices
§  Opportunities to internationalise the business outside the USA
§  Medical should therefore represent increasing proportions of AEP
revenue and profit, benefitting Fenner’s reported margins
28

AEP CMD Karen West.pptx

Transcription

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