This document is private and confidential, contains sensitive business information of Bionik Laboratories Corp. (“Bionik”) and is not for public distribution.
Ticker: BNKL REHABILITATION THERAPY AND MOBILITY SOLUTIONS
2019
FORWARD LOOKING STATEMENTS
This document is private and confidential, contains sensitive business information of Bionik Laboratories Corp. ("Bionik") and is not for public distribution. This document has been prepared for informational purposes only and is provided personally to you. By accepting this document you agree to keep its contents strictly confidential, not to copy any portion of this document and to return it to Bionik promptly upon its request. this document does not constitute an offer to sell or a solicitation of an offer to purchase any securities of Bionik. Any such offer will be made only pursuant to an effective registration statement or an exemption from registration. This document contains forward-looking statements relating to future events or the future financial performance and operations of Bionik. Forward-looking statements, which involve assumptions and describe Bionik's intent, belief or current expectations about its business opportunities, prospects, performance and results, are generally identifiable by use of the words "may," "could," "should," "will," "would," "expect," "anticipate," "plan," "potential," "estimate," "believe," "intend," "project," "forecast," the negative of such words and other variations on such words or similar terminology. These forward-looking statements are not guarantees of future performance and by their nature involve known and unknown risks and uncertainties that may cause actual opportunities, prospects, performance and results to vary from those presented in this document, and those variances may be material. In evaluating such statements, prospective investors should carefully consider the various risks and uncertainties identified in Bionik's public filings with the Securities and Exchange Commission, such as market risk, liquidity risk, competitive risk, regulatory risk and other commonly recognized forms of risk relating to Bionik and its securities. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this document might not occur, Bionik is not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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BIONIK LABORATORIES
We Make Lives Better
Our artificial intelligence and machine learning technologies make rehabilitation methods and processes smarter and more intuitive for faster patient recovery.
We design and manufacture products which connect to performance-based reimbursement programs for healthcare providers and institutions.
We address three segments with the potential to service a wider, multi-billion dollar healthcare market.
Developed in The Newman Laboratory for Biomechanics and Human Rehabilitation at the Massachusetts Institute of Technology (MIT), the InMotionTM robots provide effective, patient-adaptive therapy, intended to restore upper-extremity motor control including early and late recovery from acute stroke.
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International Patents
250
Units Currently Placed in More than 20 Countries
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Units Recently Contracted as Part of a Roll Out with Kindred IFRs Hospitals
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There are 800,000 new U.S. stroke patients each year
Summary Health Statistics: National Health Interview Survey, 2015
CONVENTIONAL THERAPY IS NOT ENOUGH TO HELP PATIENTS RECOVER.
Eric Dusseux, CEO
WE SERVICE AN ANNUAL $200 M MARKET OF HOSPITALS, CLINICS, INPATIENT REHABILITATION FACILITIES, AND SKILLED NURSING FACILITIES
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PRODUCTS UNDER DEVELOPMENT
WE ARE TARGETING THE ESTIMATED $2B MARKET FOR HOME-BASED, UPPER LIMB THERAPY
...AND THE ESTIMATED $1B MARKET FOR WALKING ASSISTANCE DEVICES
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HIGHLIGHTS
We Service the Growing Market Opportunity for New Rehabilitation Technology
Strong demographics, plus new value-based reimbursement program requirements favor our technologies.
BIONIK's Platform Supports and Assists Insurance Reimbursement and Payments
We meet the new outcome-based reporting needs for value-based incentive programs.
Our Products are FDA-Listed (Class II Medical Devices 510k Exempt)
Three rehabilitation products currently on the market for clinical use.
We Are Uniquely Positioned to Supply Large Regional and National Healthcare Providers
Our solutions combine proven research validation with the capability to support intensive clinical use.
Recently-signed agreement with $3.3B Kindred Hospital and Rehabilitation for two phase, system-wide roll out until end of 2022.
Revenue Growth in New Geographies and Expansion into Home and Consumer Markets
Hospital Rehabilitation in Europe (CE Mark) , China (JV), Korea (Distribution Partner), and At-Home and Consumer Mobility Products
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THE MARKET, ITS TRENDS, AND A TRIGGER FOR MASS ADOPTION
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Market Size and Providers
THE REHABILITATION MARKET
The global rehabilitation equipment and devices market size was valued at $10.53 billion in 2016 and is expected to grow at a CAGR of 6.0% during 2018-2025 forecast period. (Grandview Research, 2017)
The need for daily assistive devices for handicapped population around the globe is increasing rapidly.
Significant healthcare reimbursement reforms changing equipment purchasing.
The North American Rehabilitation and Assistive Technologies Market is estimated at $409 M and is expected to grow at a CAGR of 13.1%.
(TMR Analytics)
Post-Acute Service Providers, By the Numbers
(Becker's Hospital CFO Report, 2014)
15,173
Skilled Nursing Facilities
12,461
Home Health Agencies
5,300
Hospice
422
Long-term care hospitals
1,177
Inpatient Rehabilitation
Facilities
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Market Trend
NEW U.S. REIMBURSEMENT PROGRAMS
Shift Towards Patient Outcomes at Skilled Nursing Facilities (SNF) - 2018 to 2020
Value Based Programs will apply positive or negative incentive payments to facilities (as of 2020 incentive payments up to +2.33% and penalties up to 1.97%)
Quality indicator reporting on facility self-care and mobility scores will be made publicly available on SNF compare portion of CMS.gov for the first time under this rule
Greater need for accurate measurement capability as functional patient outcome measures for each SNF will be measured and rankings made public in 2020
Value-based programs reward health care providers with incentive payments for the
quality of care they give to people with Medicare
New Rules for In-patient Rehabilitation Facilities (IRF) October 2019
Rule favor Quality Indicators in the Patient Assessment Instrument (PAI)
Quality indicator reporting on facility self-care and mobility scores will be made publicly available on IRF compare portion of CMS.gov for the first time under this rule
A Penalty of 2% decline in annual rate increase will apply to facilities not compliant with Quality Reporting Programs reporting
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THE TRIGGER FOR MASS ADOPTION
We believe we are uniquely positioned to take advantage of the trends and pending regulations in healthcare to supply hospitals, clinics and homes with advanced Evidence Based medical devices to improve neurological performance and produce the data that measures our performance.
Market growth and new regulation provide a direct link to our products.
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ABOUT US
OUR TEAM, OUR PRODUCTS AND COMPETITIVE LANDSCAPE
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MANAGEMENT TEAM
Eric Dusseux, MD, MSc, MBA
Chief Executive Officer
Former President of Europe and a director for Auregen BioTherapeutics
Executive Committee Member of Sanofi Pasteur
Manager (Principal) at The Boston Consulting Group
Michal Prywata
Co-Founder and CTO
Leslie Markow, CPA, CA, CPA (Illinois)
Chief Financial Officer
Track record of inventing technologies that address untapped markets
Previously served as our Chief Executive Officer from March 2011 to April 2013
Five years with Bionik Canada, managing technological advancements
and operations
Chief Financial Officer of Stewardship Ontario, a 2010-2012
Chief Financial Officer of Blue Ocean NutraSciences Inc. (f.k.a.
Solutions4CO2 Inc.), a public CO2 solution industrial company
Former CFO of SunOpta (NASDAQ: STKL)
Renaud Maloberti
Chief Commercial Officer
Former Vice President and General Manager of FujiFilm SonoSite, General Manager, Americas for BK Medical Systems. GE Healthcare and GE Medical Systems
Malcom Bock
VP of Engineering
Former VP of Engineering at Respiratory Motion,
Senior Director of Global R&D for Covidien Ltd., a spin-off of Tyco
International. Covidien Inventor of the Year
Kent Smallwood
VP of Investor Relations
Leadership roles in Finance, Sales and Supply Chain
Steelcase Teknion Inscape
Jo Anne Langshaw
HR Business Partner
Former Sanofi Canada HR
25 years of human resource experience
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BOARD OF DIRECTORS
Eric Dusseux, MD, MSc, MBA
Chief Executive Officer
Former President of Europe and a director for Auregen BioTherapeutics
Executive Committee Member of Sanofi Pasteur
Manager (Principal) at The Boston Consulting Group
André Jacques Auberton-Hervé
Chairman of the Board
Founder and President of 4A Consulting & Engineering
Co-Founder, President and CEO of Soitec (Euronext: SOI)
Led SOI to Euronext listing in 1999
Rémi Gaston Dreyfus
Director
CEO and Founder of GDG Investissements and RGD
Investissements S.A.S. Chairman and CEO of A.G.I.
Paris, France.
Peter Gerald Malone
Independent Director
Chairman of FluidOil Limited; Former chairman of Aberdeen
Asia-Pacific Income Fund; Previous member of U.K. Parliament;
Minister of State for Health in John Majors' government
Audrey D. Thévenon, Ph.D.
Independent Director
Program Officer with the Board on Life Sciences at the US National Academies of
Sciences, Engineering, and Medicine; Managing Editor of the journal Institute
for Laboratory Animal Research
Joseph Martin
Independent Director
Chairman of Brooks Automation; Director of Collectors Universe and
Allegro Microsystems; Awarded US CFO of the Year
by CFO Magazine in 2000
Charles Matine
Independent Director
Founder and CEO of B&Associates Strategic advisor to C4 Ventures
Advisory Board Member for Enlaps Marketing and business development
positions in Apple
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THE SCIENCE OF OUR PRODUCTS
Robotic rehabilitation elicits brain neuroplasticity and recovery
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SUPERIOR OUTCOMES VS. CONVENTIONAL REHABILITATION:
BBIEOTTENR AISKSE'TSPROADUSCTSIVIETYT PRODUCTIVITY
Superior Performance and Value vs. Conventional Rehabilitation
CONVENTIONAL METHODS >
Repetition of a few functional motor skills; habitual movements
Movements Per Session
Only 25-45 movements per therapy session.
Protocols
Treatment protocols are therapist-dependent.
Metrics
Difficult to quantify true motor recovery and outcomes.
B I O N I K InMotionTM >
Reducing impairment; neural plasticity and remapping of pathways Movements Per Session
600 to 1,000 movements per session
Protocols
Reproducible to advanced clinical research standards Metrics BIONIK EVALTM software quantifies true motor recovery
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PROVEN EFFECTS ON BRAIN PLASTICITY
Data gathered from sample plots for a stroke patient at admission and after 14 and 70 days, following InMotionTM ARM robotic therapy.
Circle Evaluation Test
Measures motor coordination, joint independence and motor planning
Results: Improvements in acceleration, speed and accuracy of repetitive circles.
Point-to-Point Evaluation Measures motor control through changes in acceleration, speed, accuracy, and movement coordination
Results: Improvements in acceleration, speed and accuracy of point to point diagrams.
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OUR InMotionTM PRODUCT LINE
Uses: Stroke, Cerebral Palsy, Spinal Cord Injury, Multiple Sclerosis, Parkinson's Disease, Hemiplegic Shoulder Pain and Muscle Spasticity
Motor therapy to help patients regain motor function following a neurological condition or injury. Provides patients with real-time Assistance-as-NeededTM while it gently assists where needed to help them complete various motor therapy activities (30 programs).
The InMotionHANDTM is combined with the InMotionARMTM. The two robots work together, providing motor therapy that combines reaching with grasp and release movements. The InMotionARMTM and HAND robots quietly monitor the patient's movements during therapy while they gently assist patients.
The InMotionWRISTTM is an evidence based and research proven interactive rehabilitation device that senses patient movements and limitations, and provides Assistance-as-NeededTM. It can accommodate the range of motion of a normal wrist in everyday tasks and can be used by clinicians as a stand-alone treatment option or in addition to the InMotionTM product line.
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OUR UPPER LIMB ADVANTAGES
Bionik's competitive and product positioning vs. others.
1. Breath of Rehabilitation Offering
BIONIK offers Arm, Hand and Wrist - most competitors have arm, only
2. Software / Artificial Intelligence Capability
Broader measurement capability and greater adaptiveness through the patient session
3. Degree of Independent Clinical Research
Significantly higher than competitors (1000+ patients with addition of RATULS study in UK)
4. Therapy Modes
Multiple protocols supported, allowing adaptation to patient progress - e.g., 30 for InMotion ARMTM
5. Patient Access
Only solution that supports all modes of patient use Seated / Standing / Kneeling / Wheelchair ; Patient set-up time unrivalled
6. Pricing
Higher than most competitors who are not offering a complete system. Lower than Hocoma Armeo Power Arm/Hand unit which is the biggest player and closest competitor in terms of function and capability
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GROWTH PLANS
Our Milestones Met and Our Market Opportunities
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WE HIT OUR MILESTONES
We have built a strong FOUNDATION OF CLINICAL PRODUCTS
Well-positioned in healthcare robotics and artificial intelligence Developed systems with Key Opinion Leaders to enhance value proposition More than 65 peer-reviewed papers published, presenting clinical trials ; Intellectual Property The ability to deliver measurable clinical outcomes
We are positioned to capitalize on accelerating COMMERCIAL MARKETS
Went from 1 or 2 units sold per quarter to now 5 to 7, in U.S. and Europe (CE mark) High-quality sales pipeline Availability of new rental financing option Ramping production capabilities of our Class II medical device, 510k exempt, with leading U.S. manufacturer
Cogmedix, based in Massachusetts. Closed first national account, Kindred, who were shipped more units in their first order than our last
three quarters combined.
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WE ARE OPTIMIZED TO SCALE
Commercial promise with next-generation products
Directed towards hospitals and rehab centers, a new financial partner, a new sales force and a new strategy to rejuvenate sales
Home-use rehabilitative products in development
InMotionARMTM at home in development
A smart, lighter exoskeleton in development
Strengthened position to enter Europe, Korea, growth markets in China
WE HAVE TARGETS IN SIGHT
· Target US National Hospital Accounts
- Convert tangible interest and engagement with multiple national organizations into larger, more consistent revenue stream
- Target multi-location, high patient volume rehabilitation providers
· Target global hospital markets
- Establish sales agreements and international partnerships to expand distribution capabilities
- CE Mark and France In-Clinic deployment paving the
path to Europe (UK, France, Italy, Belgium...) - Launch new InMotionTM products in greater China
and expand in Korea
· Extend success of InMotionTM to home market
· Enter global assistive mobility mass market with our exoskeleton
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WE ARE SIGNING CONTRACTS
Announced December 17, 2018
Kindred Heathcare is a healthcare services company with revenues of approximately $3.3 Billion (Owned by Humana and private equity partners)
First phase purchase agreement is for 21 Bionik InMotion Arm Robotic Systems
Second phase will be broader deployment until at least end of 2022 across Kindred's new inpatient rehabilitation hospitals and evaluated for other care facilities
Kindred driven to be a leader in Value Based Care and Patient Engagement
Many leading healthcare organizations have similar needs in the area of advanced patient rehabilitation
SALE OF UNITS INCLUDE MAINTENANCE AND SERVICE CONTRACT
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DELIVERIES TO 19 KINDRED HOSPITAL NETWORK LOCATIONS
Mercy Rehabilitation Hospital and Rehab Hospital, Des Moines, St. Louis, Springfield
Franciscan Specialty Care, CHI Franciscan Rehabilitation Hospital
Avon RH, University Hospital Avon Rehabilitation Hospital
Lancaster Réhabilitation Hospital, Lancaster Réhabilitation Hospital
NHS-CHC 1, Methodist Rehabilitation Hospital
Dignity-Kindred Rehabilitation Hospital East Valley and Rehabilitation Hospital
Mercy Rehabilitation Hospital, Mercy Rehabilitation Hospital Oklahoma City
St. Mary Réhabilitation Hospital, St. Mary Réhabilitation Hospital
CTRH, Central Texas Rehabilitation Hospital
Texas Rehabilitation Hospital of Fort Worth & Arlington TX
Rehabilitation Hospital of Wisconsin, Rehab Hospital of Wisconsin
Baptist Memorial Rehabilitation Hospital, GP
Community Health Network Rehabilitation Hospital, Rehab Hospital & Hospital South
Madison Réhabilitation Hospital, UW Heath Réhabilitation Hospital
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FINANCIALS
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SUMMARY INCOME STATEMENT
Unaudited (in $ USD)
Six Months ended September 30, 2018
Revenue Cost of Sales Gross Profit
1,048,418 637,236 411,182
Operating Expenses Other Expense (Income) Net Loss EPS
5,446,061 (291,076) (4,743,803)
(2.02)
SUMMARY BALANCE SHEET
Unaudited (in $ USD)
Total Current Assets TOTAL ASSETS Total Current Liabilities Total Long-Term Liabilities TOTAL LIABILITES Total Shareholders' Equity
Six Months ended September 30, 2017
$309,367 89,125
220,242
5,646,822 429,297
(5,855,877) (8.84)
As of September 30, 2018
1,886,233 28,900,239
2,002,784 0
2,002,784 26,897,455
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CAPITALIZATION TABLE
As of December 31, 2018
Common Shares Outstanding Warrants Options
Convertible Notes
2,611,538 1
440,231 @ $44.21 WAEP 2
185,603 @ $38.26 WAEP 2
$3,150,000 aggregate principal amount
1 Includes 273,574 exchangeable shares 2 Weighted Average Exercise Price
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CONTACT US
Global Headquarters
483 Bay Street, Office N105 Toronto, ON M5G 2C9 Canada
U.S. Headquarters
80 Coolidge Hill Road Watertown, MA 02472 United States
www.bioniklabs.com
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