Corporate Presentation September 2020 NASDAQ: NMRD
CorporatePresentationSeptember2020
NASDAQ:NMRD
Forward-Looking Statements
• Thispresentationincludesforward-lookingstatementsthataresubjecttomanyrisksanduncertainties.Theseforward-lookingstatements,suchasstatementsaboutNemaura’sshort-termandlong-termgrowthstrategies,cansometimesbeidentifiedbyuseoftermssuchas“intend,”“expect,”“plan,”“estimate,”“future,”“strive,”andsimilarwords.Thesestatementsinvolvemanyrisksanduncertaintiesthatmaycauseactualresultstodifferfromwhatmaybeexpressedorimpliedinthesestatements.
• TheserisksarediscussedinNemaura’sfilingswiththeSecuritiesandExchangeCommission(the“Commission”),includingtherisksidentifiedunderthesectioncaptioned“RiskFactors”inNemaura’sAnnualReportonForm10-KfiledwiththeCommissioninJune2019asthesamemaybeupdatedfromtimetotime.
• Nemauradisclaimsanyobligationtoupdateinformationcontainedintheseforward-lookingstatementswhetherasaresultofnewinformation,futureevents,orotherwise.
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OurMission• Totodisruptthe$80B+Diabetic1market&thepre-diabetic
marketsbymakingitmucheasierfordiabeticsandpre-diabeticstomakelifestylechangesneededtomanage,reverseorpreventdiabetes.
• WeexpecttoachievethisbycombiningdigitalcoachingandsupportservicesprovidedbyBEAT®diabeteswithcontinuousglucosemeasurements(CGM)&dailyglucosetrenddataprovidedbySugarBEAT®,aCEMarkapprovedNon-invasiveCGM.
• Within5yearsNemauraaimstoleadinthewearablesmarketandself-managementofmedicalconditionswithourpipelineproductsofsensorsanddigitalhealthcareplatformsusingAI.
• Employers,healthcareprovidersandinsurersarealready
payingsubstantialfeestosupportpatientsforthelongterm,usingappsandcoaching,soSugarBEAT®CGMcombinedwithBEAT®diabetesdigitalcoachingarepoisedtodisruptthisspace.
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https://www.marketwatch.com/press-release/856-billion-diabetes-care-devices-drugs-market-size-share-global-opportunity-analysis-and-industry-forecast-2017-2022-2019-01-30
InvestmentHighlights
ü Non-invasiveCGM(continuousglucosemonitor)SugarBEAT®,combinedwithdigitalcoachingandsupportservicesprovidedbyBEAT®diabetestargetingasignificantGlobalopportunity:
• Theglobaltype2diabetesmarketissettoreach$58.7billionby20251
• GlobalDigitalDiabetesMarketOutlookto2026:$16+Billion2
• $50B+pre-diabeticmarket3
• Wearablehealth-techsectorexpectedtocomprise$60B+weightloss&wellnessmarkets4
ü USFDAapprovalandlaunchanticipatedbyendof2021.
ü CEMarkApproved;RevenuesfromsalesinUK&IrelandandGermanyexpectedinQ42020.
ü RevenuesfromlaunchofproBEATexpectedtocommenceinUSAfromQ42020–aspartofType2managementandDiabetespreventionprogramwithgrossmarginsofupto75%
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1. https://drug-dev.com/global-type-2-diabetes-market-set-to-almost-double-to-58-7-billion/
2. https://www.prnewswire.com/news-releases/global-digital-diabetes-market-outlook-to-2026-a-16-billion-industry-opportunity-300980794.html
3.Assuming50%usageascomparedtotypeIInoninsulinmarket-https://www.absolutemarketsinsights.com/reports/Global-Noninsulin-Therapies-for-Diabetes-Market-2019-2027-259
4.JuniperResearchDigitalHealthReportJan142019https://www.juniperresearch.com/press/press-releases/healthcare-spend-in-wearables-reach-60-bn-2023
BEAT®diabetesprovidesdigitalcoachingandsupportservices
SugarBEAT®providescontinuousglucosemeasurements(CGM)&dailyglucosetrenddata
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SugarBEAT®• Webelievewearepoisedtodisruptthemulti-billiondollarglucosetrending
anddiabetesmanagementspace• SugarBEAT®isanon-invasiveCGM(ContinuousGlucoseMonitor)wherethe
sensorsitsontopoftheskin.Doesnotrequireneedlesanddoesnotpuncturetheskintoinsertasensor
• SugarBEAT®isaflexibleCGMwhichcanbewornforasingledayatatime,withnocommitmenttowearthedevicecontinuouslyfor10-14daysasisthecasewithotherCGM,makingitunlikelythatthedailycost-of-usecanbematchedbyourcompetitors
• CEapprovedClassIIBMedicalDevice• USFDAPMAapprovalandlaunchanticipatedbyendof2021• EUcommerciallaunchfirst,withU.S.andotherstofollow.• EmpoweringGlucoseTrenddataoverthecourseoftheday,with
measurementsrecordedevery5minutes• Replacingpointintimefinger-stickmeasurementswhichprovideverylittleand
oftenmisleadinginformationasthepreviousandsubsequentreadingsarenotknown
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HowSugarBEAT®Works• Asmalltransmitterdeviceandanadhesivepatchwithasensorsitsontopoftheskin,typicallyontheupperarm.• Thesystempainlesslydrawssmallamountsofglucosemoleculesoutoftheinterstitialfluidjustbelowthetoplayerofskinintoachamberwithinthepatch.Doesnotrequireneedlesandsensordoesnotpuncturetheskin.• Therechargeabletransmittermeasuresglucoselevelswithinthechamber,andtransmitsthisdataeveryfiveminutesviaBluetoothtoamobilephoneapp.• Usingaproprietaryalgorithm,theappthendisplaysthisdataasglucosevalueonsmartphone/deviceingraphicalformataswellasnumericvalues.
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BEAT®DiabetesProgram
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Cardiovascular Risk Monitoring
Blood Glucose Monitoring
Continuous Glucose
Monitoring
Heart Metrics
Diabetes Lifestyle App
Digitally Connected
Online Community
Blood Testing Personalised
Lifestyle Coaching 7
SugarBEAT®CompetitiveAdvantages
Safe –MARD (Mean Absolute Relative Difference) 12.4% with one calibration per day (Internal Clinical Evaluation Report) Insulin-dosing decisions with adjunctive finger stick Predictive alerts and real-time CGM capabilities
Hypo-allergenic - Daily new patch location No skin penetration by sensor Uses Milder skin adhesives
Environmentally friendly – Rechargeable transmitter – 2 year life
Affordable – lower monthly costs
Flexible-use - Freedom to decide WHEN & HOW LONG to wear during the course of the day
Non-Invasive – (Needle Free) Sensor patch sits on top of the skin
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TAM:TotalAddressableMarket
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OpportunitiesforapplicationofbigdatainthehealthindustryTheValueofMedicalDataRealtimeMobiletechnologyhasbeenoneofthelargestcontributorstobigdataforthepastseveralyears.Proliferationofmobilephones,theimplementationofapp-enabledsmartphones,andnowthegrowthofthewearabledevicemarketareallcreatingmassivenewdataflowsthatcanbeputtouseforhealthandotherpurposes.
Wearablemedicaldevicesarenotnew,buttheyhavelongbeenexpensiveandnotalwaysviableforeverypatientorsubjectofamedicalstudytowear.That’swhythegrowthofthewearablepersonalelectronicdevicemarket–andthelowerpricesthatcomewithahighervolumeofdevicesbeingsold–issuchapotentiallygame-changingmomentforbigdatainthehealthindustry
ExtractingpersonaldatafromwearableMedicaldevices:
• PredictiveanalyticsisbasedonlogicthatisdrawnfromthewearableMedicaldevicesusesanalgorithmtoseekpatternsandstructureindataandclusterthemintogroupsorinsights.
• Improvingefficienciesperpatient’smanagementofhealthcare
• Accuracyofdiagnosisandtreatmentinpersonalmedicine
• Increasedinsightstoenhancelifestyle,diabetes,drugmanagementandcohorttreatment
InitialdevelopmentofArtificialIntelligenceandintermittenttestingusingSugarBEAT®hasthepotentialtodisruptdiabetesmanagementfromthefollowingperspectives:
• EmpoweringuserswithinterpretationsofSugarBEAT®data.EmpoweringIndustrysuchasBigPharmatoenhancedrugtreatmentregimensanddeveloppersonalizedtherapy.
• Seekingtocapitalizeonthisapproachtomakinglargedatasetsmoreaccessible,theU.S.NationalInstitutesofHealth—thepreeminentU.S.governmentmedicalresearchorganization,whichoverseesanannual$41.7billionbudget1—isnowworkingwithIBMtoconnectaverywidevarietyofclinicalandresearchdatasetstotheIBMWatsonsystem.
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SugarBEAT®
1.https://www.nih.gov/about-nih/what-we-do/budget
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NemauravsLivongo®The technical difference!
Starts with a supporting approved medical device.
TheTrendsInMobileHealthcare• Whatweareseeingisashifttowardsdigitalmedicalcare.Therecordsaremoreoftenkeptelectronically,therearemoreopportunitiesforremotepatientmonitoring,andmoretoolsforindividualhealthmonitoringareemerging.Digitalhealthdealsarebooming:thevalueofinvestmentsreached$7.5billionin20192.
• Nemauraisthelatestbreakthroughinmobile/wearablehealthcaretechnologyregardingfunctionality,technology,interconnectivityandallsupportedwithrealmedicaldiagnosticsfromtheirCEapprovedmedicaldevice.
Livongo®Limitations:(NASDAQ:LVGO)• Livongo®forDiabetes:includesacellular-connectedinteractive
glucometer,unlimitedbloodglucoseteststrips,real-timecoaching,and24-hourmonitoring
• LivongoforPre-DiabetesandWeightManagement:offersacellular-connectedweightscale,healtheducationalcontent,personalizedcoachingservice,andgroupclasses
NemauraAdvantages:• SugarBEAT®CGMprovidesverypowerfuldatathatwillallowlong
termtherapyandlifestyleadjustmentsthatfingerpricktestingcannotachieve
• Clinicallyproven,evidencebasedhealtheducationondiabetesthathasbeendemonstratedtoleadtobehavioralchangesindiabetics.On-demandcoachingserviceforpersonalfitness,motivation,anddietaryadvice,(throughin-licensingandcollaboration)
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1.Livongo®isaregisteredtrademarkofLivongoHealth,Inc.2.https://www.digitalhealth.net/2020/01/ces-2020-digital-health-investment-2019/ 10
CommercialStrategy• Priority1:Subscriptionbasedservice• Amonthlysubscriptionplannedtogoonlinebyend2020
toreceiveasetnumberofsensorseachmonth,andtheappwhichwillallowtheusertosharetheirdatawithfamilyandcaregivers,andbeabletomonitortheirglucoseprofilerelativetolifestyleinterventionsandhabits.
• Priority2:DigitalCoaching• Subscriptionbaseddigitalcoachingsupportingdiabetes/
health/nutrition/exercise/behavioralchangesandmodificationetc.
• Priority3:AIPlatform• CreationofAIplatformtoenhanceuserexperience.This
willbedevelopedaswegatherdatafromusers.
• Priority4:One-to-onedigitalcoaching• Subscriptionbasedhighvalue,lowvolumeservice,with
coachesrecruitedinalllocalterritories.
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Nemauramedicallaunchstrategy• Europediabetesdevicesmarketsizewasvaluedat
USD6.4billionin20181• Nemauratargetmarket:UK,Germany,USA
• Nemaura'sproductofferingisbeingledbytheirVicePresidentofStrategyandStrategicAlliances,DrFredShaebsdau.
• FromSeptember2016untilJanuary2019,hewastheGeneralManagerofDexcomGermany,akeyglobalplayerintheCGMmarket,whichduringhisleadershipbecamethefastestgrowingorganizationinDexcom’shistoryachievingtripledigitrevenue,andsubstantialgrowthofusers.
• Therearecurrentlyaround3.5mdiabetics2and7mpre-diabeticsintheUK3.Thereareover2memployeesinthelargest10UKcompaniesalone4.IntheUK,Nemauraforecasthavingthepotentialofachievingover200,000UKsubscribers.
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1. https://www.grandviewresearch.com/industry-analysis/europe-diabetes-devices-market2. https://www.diabetes.co.uk/diabetes-prevalence.html3. https://www.diabetes.co.uk/pre-diabetes.html4. https://www.economicshelp.org/finance/top-10-companies/
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NemaurabelievesthenumberofpeoplethatcouldbenefitfromSugarBEAT®issignificantbuteveninascenariowherethiswasonlyrolledoutacrossstaffconsideredtobehighvalueassetstothe100biggestcompaniesintheUK,weforecastthishavingthepotentialofachievingover200,000subscribersintheUK.
NHS(UK)DiabetesPreventionProgram(DPP)DigitalStream
• DPPtosupport200,000peopleperyeartotransformtheirlifestyles
• Fivedigitalbehaviorchangeproviders
• Basedoncontinuousengagementwithpatientstomakenewhabitsandbehaviors
• Helppatientstoimprovetheirconditionsbypersonalizedhealthlifestyleplansandcoaching
NHS(UK)Type2behaviorchangeatscale• PartnershipwithNHSEnglandofferingfreedigitalsupportforpeoplediagnosedwithType2diabetes
• Onlineplatformwilldeliverthisbehaviorchangeservicenationally
• Evidencebasededucationwithinnovativetechnologytoprovidepersonalizationatscale
SugarBEAT®GlobalMarketopportunityconsistsofthreetargetmarkets:• Theglobaltype2diabetesmarketissettoreach$58.7billionby20251• GlobalDigitalDiabetesMarketOutlookto2026:$16+Billion2• Pre-diabetics—approximately3xdiabeticpopulation
• $60B+TAMWearableHealth-Techmarket:lowcarb/weightloss/fitness
U.S.CGMMarketOverview2
• U.S.hasthelargestnumberofCGMusersglobally(630kin2018)Only2.6%of25MUSdiagnoseddiabeticsusedCGMin2018• U.S.annualCGMusageincreasedby117%in201830%ofU.S.TypeIdiabeticsuseCGM• 3%ofU.S.Type2insulinusersuseCGM
CGMusageamongstnon-insulindiabeticsnegligible• U.S.has88Mpre-diabetics3
Continuousglucosemonitoring(CGM):TAM
Understandingthe
opportunity1. https://drug-dev.com/global-type-2-diabetes-market-set-to-almost-double-to-58-7-billion/
2. https://www.prnewswire.com/news-releases/global-digital-diabetes-market-outlook-to-2026-a-16-billion-industry-opportunity-300980794.html
3.https://www.cdc.gov/diabetes/basics/prediabetes.html NASDAQ:NMRD
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SugarBEAT®KeyMilestones
1Q2016:SugarBEAT®receivedCEMarkinEuropeonPredecessorProduct(wristwatch)
4Q2017:Successful525patienttrialcompletedinEuropeforSugarBEAT®
1Q2018:NMRDListsonNasdaq
2Q2018:SugarBEAT®beganFDAclinicalprogram
3Q2018:PublishedinterimFDAclinicaldata
2Q2019:CEapprovalOfminiaturisedSugarBEAT®CGM
Endof2020:RevenuesexpectedfromEurope:UKandIrelandfirstfollowedbyGermany,andproBEATinUSA
End2021:TargetFDAapprovalforSugarBEAT®
4Q2018:CompletedtrialsforFDAsubmission
End2021:Launchofsecondlineofproducts&USlaunchofSugarBEAT®
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2Q2020:FDAPMAsubmitted
Current Product Pipeline
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Product KeyFeatures Market
SugarBEAT®GenII • Includepediatriccover• Improvedaccuracy(MARD)• Longerpatchweartime• IncludeGestationaluse
• TypeIIDiabetics• Pre-Diabetics• WearableHealth-Tech• Pregnancy
ContinuousLactateMonitoring
• Non-invasiveskinpatchforcontinuouslactatemonitoring
• Determinesappropriatetrainingintensitylevelsandmonitorsprogression
• Athletes• Fitness• WearableHealth-Tech
marketexpectedtobeworth$60B+by20231
1JuniperResearchDigitalHealthReportJan14201915
FuturePotentialProductPipelineProduct Uses Diagnostics
LactateMonitoring Lactatemonitoringinintensivecare AnaerobicMetabolism
AlcoholMonitoring Supportpersonalhealthgoals,andprovidewarningspriortodriving,andprovidephysicianswithindividualdrinkinghabits
Preventionofprogressiontoalcoholrelateddiseases.
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TheManagementTeam
Dr.FazChowdhuryChiefExecutiveOfficer
Dr.ChowdhuryhasservedasCEOandchairoftheboardofNemauraMedicalsinceformationinDecember2013.Heissoleinventoronmorethan100grantedandpendingpatentsacrossover20technologyplatformswithinthemedicaldeviceandpharmaceuticalsectors.Hehas20yearsexperienceandtrackrecordtakingproductsfromconcepttoapproval,andhasbeenpivotalinthecompany’stechnicalandstrategicdevelopment.HehasauthoredTextbookChaptersonNano-biosciencesforWileyandElsevier,andservesontheBoardofMedilinkEastMidlands,UK.Dr.ChowdhuryholdsaMastersinMicrosystemsandNanotechnologyfromCranfieldUniversity,UK,andDoctoratefromtheUniversityofOxfordonnano-medicineanddrugdelivery.
ChrisAveryVicePresident-GlobalBusinessOperations
Mr.Averyhas35years’experienceindiabetes,gainingvastexperienceinglucosemonitoringandinsulindeliverymarkets.Heco-foundedaUKdiabetesdistributorshipin2000andservedasUKManagingDirectorandEuropeanDirectorlateracquiredbyNipro.Todatehehassuccessfullylaunchedover20glucosesystemseitherdirectorwithdistributorsandnegotiatedpartnershipsanddistributiondealswithpharmaceutical&medtechcompaniesacrossEuropeandotherinternationalmarkets.In2016hejoinedNemauraMedical’sEuropeanJVpartner,DallasBurstonEthitronixasSVPGlobalBusinessDevelopment,andworkedcloselywithDr.ChowduryuntiljoiningNemauraMedicalinJune2019.
Dr.FredSchaebsdauVPStrategyandStrategicAlliances
Dr.Schaebsdauhasover15yearsofexecutivelevelexperienceintheCGM,BloodGlucoseMonitoring(BGM)andinsulindeliveryindustries,whichstartedin2004duringhistenurewithAbboqDiabetesCare,wherehewasamemberoftheM&Aandpost-mergerintegrationteamsresponsiblefortheacquisitionofTheraSenseanditsFreeStyleNavigatorCGM.FromSeptember2016untilJanuary2019,hewastheGeneralManagerofDexcomGermany,whichduringhisleadershipbecamethefastestgrowingorganizationinDexcom’shistoryachievingtripledigitrevenueandnewpatientgrowtheveryyear.
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AdditionalseniorhighprofilehiresinprogressinUSAandEU.
Intellectual Property BuildinganextensiveintellectualpropertyportfoliotopositiontheCompanytobecomealeaderinthenon-invasiveCGMspace
TheCompanyhasseveralpatentfamiliesspanningthefollowing:
1. Sensorrelated
2. AlgorithmandmethodsofusingtheCGMdata
3. Devices&methodstoenhanceglucosesensing
4. Methodstoenhanceglucosesensing
5. Devicesandmethodstoextractglucose
TheCompanyanticipatesfilingmultipleadditionalpatentsoverthecourseofthenext18monthsbasedonongoingfindingsandimprovements.
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SummaryNemauraMedicalaimstodominatetheglobaldiabetesmarketsforputtingType2diabetesintoremission,usingtheSugarBEAT®deviceanddigitalhealthcareplatform.
• Within5yearsthecompanyaimstoleadinthewearablesmarketandself-managementofmedicalconditionswithitspipelineproductsofsensorsanddigitalhealthcareplatformusingAI.
• Thecompanyhasthepotentialtodisruptthemulti-BilliondollarglucosetrendinganddiabetesmanagementspacetargetingasignificantGlobalopportunity:
• Revenuesexpectedfromend2020fromUSA,UKandGermany,withgrossmarginsofupto75%.
DigitalhealthsectorcomprisingthetypeIIdiabeticmarket&pre-diabeticmarket
• AimingtobuildontheLivongomodel,butusingthecompany’sproprietaryuniquedeviceplatform,henceamoresubstantialproposition
• Grossmarginsofupto75%CurrentBalancesheet(atendAugust2020)
• Approx.$18mcash• Cashburnrateapprox.$1mperquarter(asofAugust2020)• Capitalizedtofundalloperationsforupto2years,andseethroughto
revenuesfromUSAandGermanyandUKfromend2020onwards.
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