Susan Trent, Atlantic Therapeutics- Wearable Technology to Treat Female Incontinence | LSI Europe '22

Transcription

Susan Trent  0:03  

Thanks very much in there. Good morning, everybody. As we said, I'm Susan Trent, I'm the CEO of Atlantic therapeutics, you'll see her very boldly displayed here the name of our brand, which is Innovo. And I think it's important that I point out, one of the most important things we can do in healthcare is make sure that we deliver therapies and solutions to the end user that they can really identify and engage with. One of the biggest barriers, as we all know in technology is making sure that our patients know what's available, know they can access it, and really see and feel that it is attainable to them. So I'm going to talk to you today about our brand Innovo which is at a real interesting, exciting growth stage. Now, we're in I'll be coy about the numbers. But let's just say we're in an eight digit growth phase. Now, we've really demonstrated a model we've moved our business from the dream to the reality. And we are raising a Series C now to fuel the next stage of our growth. Obviously, we are very clearly in FEM tech. So let's just think a little bit about what we mean by FEM tech. It's one of those trendy expressions at the moment. And I think we tend to focus on the tech side. I think about the fem side, let's think about the women who are suffering from bladder leaks. And this is a daily disruption to their life, they're spending $700 A year each on pads and liners to protect themselves. It's a very stigmatized condition that they don't want to talk about, and probably about 25% of patients ever goes to talk to a doctor about this particular condition. So it is really important that as a business, we not only provide the brilliant technology in a relatable way, but we also really motivated inspire women to engage in change, to think about the behavior that they're adopting now and to think about how they can change that behavior for better outcome. And our commercial opportunity, if we do that is that we are in a $10 billion category, which is largely dominated by the pads and liners company, companies. A little bit of a background for those of you in the room who don't know very much about stress urinary incontinence, and as it's a main mainly male audience, you possibly certainly haven't experienced it. This is not what women call it. Women do not say I have stress urinary incontinence, they don't present their doctors to say what can I do by my stress your incontinence, women are basically armed with pads liners in a slightly wry sense of humor about this condition. You'll hear women say, Don't make me laugh, LP or my days of bouncing on the trampoline are over. They don't seek medical intervention because of the stigma of the condition. If they do seek any kind of medical attention, the chances are they'll be told to just do their Can we say that we will, we'll just do just do UK (?). But we know that about 50% of women cannot volitionally contract the right muscles to perform the Kegel exercise and then re strengthen their pelvic floor. And we know that that pelvic floor damage damage happens after childbirth. And as women age and all muscles naturally weakened. So what we've developed with Innovo is an accessible solution for those millions of women one in three women worldwide who suffer from some form of stress urinary incontinence. Why is it such an ideal solution? Well, first of all, we have fabulous clinicals behind this amazing technology. And so women can really see and understand that they will get a therapeutic solution. Our clinical trials showed us that 87% of women are leak free after 12 weeks of treatment. And that is a huge and incredibly motivating claim for both women and the healthcare professional community to understand, as I mentioned, women are spending about $700 a year each ad infinitum on pads and liners to protect themselves from these daily leaks. We charge $499 for the kit that will give them the 12 week therapy. So you can imagine once they understand this value proposition, it's incredibly cost effective for women. This is an incredibly convenient treatment. This is a kit that you can buy from the comfort of your own home, use in your own home and engage with the therapy yourself. So you're not going to a doctor's office. It is an entirely non invasive treatment. There are other neuromuscular electrical stimulation devices out there that do a similar thing. But they are invasive, they're pro based devices, women much prefer something that to them feels more like an exercise intervention than a medical intervention. And finally, and really importantly, we have been able to bring this proposition to life with kids, excuse me with consumers in an incredibly compelling way. And the best way to see that is to see our ad and I hope we've got the sound running in the back. But you'll see this commercial which brings that whole proposition together.

Video playing  4:48  

12 weeks ago, bladder leaks would have held me back and living without pads liners or leak proof underwear felt like just a dream. But now the one is Three women who experienced bladder leaks can eliminate them in 12 weeks with Innovo because Innovo smart short stopped leaks at the source. They strengthen your pelvic floor by delivering the perfect Kegel each and every time. We know Kegel is work, but 50% of women can't do them correctly, a Novo does them for you. Slip on Innovo and relax as it delivers 180 Perfect key goals in just 30 minutes, leaks won't stand a chance. And after 12 weeks, 87% of women were leak free. So we can do what we love without worrying, even this. Eliminate leaks in 12 weeks get started at myinnovo.com

Susan Trent  5:50  

All of my previous training and developing healthcare brands at GlaxoSmithKline. Over the years, you know, told me that the winning formula to communicate a proposition like this is really understand that consumer insight, develop a visualization of how the technology works, and back it up with really strong scientific claims. And we're getting such great success from being able to communicate that proposition to women. from an investment point of view, why do we believe that this is a really great investment for people who normally invest in med devices that go through a more traditional channel, we have a really proven commercial approach. Now we're delivering that treatment to the point of need. And this is all about finding the end user finding the patient where they're most likely to engage in the treatment and making sure it's accessible to them. You see a TV ad a lot of people say, wow, it's expensive to advertise on TV, how do you know it works, I often say to people, marketing is not magic, it is science. There is incredible data available now, particularly obviously in digital marketing that allows you to really understand the returns that you're getting for all parts of the advertising investment wheel and really focus on the things that work. So we've been able to find, we've been able to reduce our consumer acquisition costs very, very effectively over time. And ultimately, what is the path for this brand, when it grows up, if you like, in a couple of years time, we believe this brand will be at the scale, that it will be a very, very attractive acquisition for a number of companies that are really starting to focus on women's health. And that is not just the medical device companies. It's also the consumer health care companies. You know, my old alma mater GSK, as you know, just spun out a consumer healthcare division called Haley and we know that j&j is doing the same thing. So there are a number of companies out there that are very focused on consumer health, and have made a very big statement about how much Women's Health is going to mean to them in the future. So how have we done that, and the company has been running for about six years now, I joined as the CEO about three years ago. And the number one thing we have done to drive the success is focus on one thing and do that one thing very well. We have a reimbursement business across Europe, and that environment is more open to reimbursement in this particular lead state. But scaling this direct to consumer business in the US has been the number one thing that we have done, that has brought this commercial traction and success. We will continue to innovate behind our product, we know we have an opportunity to build more digital health components into our brand, to bring a longer lifetime value for a consumer and to improve our margins. And then we're continuing to make sure that we are building assets, for instance, driving more opportunities to get reimbursement in the US so that when we reach our goal in two years time, around $45 million in revenue, were an EBIT da positive business, a strategical look at this business and say, I can lift this up, I can plug it in, there are many opportunities to really accelerate and ramp up the sales from the base that this company has developed. A little bit about how as well, you know, what is the way that we are communicating this, the most important thing, as I said, is that it is very accessible solution, and it's delivered at the point of need. So as you can imagine, an awful lot of this is about the digital health marketing, being very upfront about our claims. The claims most important backed by our randomized control trials run in the US, we have Innovo FDA approval. So all of the claims that we can make in the consumer sphere are backed up by incredible science. And how do we know we can deliver this plan? Well, I can see my CFO sitting in the back of the room, and he watches very carefully what we spend on the business. But as you can see, this is a very metrics driven business. We know what we've been able to deliver in revenue growth, it's been four a 4x growth in 2022. We know we can double the business again in 2023. We know it's about bringing the right traffic to the website, and also converting those those interested consumers at the right pace. And we know we're able to continue to increase the price that consumers will pay as we build more brand trust and brand awareness. Very important that we know our audience very well. We've been able to expand our audience from our first core target, which was menopausal women who had been living with the condition for the longest to a much younger audience who are now understanding there is a viable solution. And they're much more willing to engage in that earlier on in their journey after they've had children, for instance, and they first encountered the issue. Seeing brave women talk about the condition is one of the most important factors in getting women more comfortable and D stigmatizing this condition. And we've been delighted with some of the pioneer women, we can work with Joan London, this is a European audience. Some some Americans in the audience might know John London, she was the anchor woman for Good Morning America during the 80s and 90s. She's a very renowned, very respected journalist, she has been brave enough to come out and say, I've had this issue of bladder leaks. I've used Innovo it has worked for me and building brand trust through these kinds of very credible endorsers is very important. The most important endorser, of course, are the people who have used the brand, and stand behind the brand to say, this has really worked for me. And I love the authenticity of the kind of reviews that we get people who said, Yes, I was skeptical. I'm so pleased I tried it. People said, yes, it takes commitment, but it's so worth it. Very authentic reviews. And now we are building a real movement, a real community of women who are looking at the brand as their solution to this really very debilitating problem. And then ultimately, as I said, it's about how much does it cost to acquire consumers, whether you are in the medical channel, or the direct to consumer channel, it costs you to acquire that consumer. The most important thing for us is the direction of travel and how we're reducing that cost per acquisition over time. It's telling our investors that we have a viable, scalable and sustainable business over time. I mentioned our innovation, we have a piece of innovation coming through, which will move us more into the digital health space and will provide more and more of that behavioral support that we know will help with compliance over time. I mentioned that we have opportunities in the reimbursement channel. These are the assets that we're building for the future. We have reimbursement in Medicare, nice have just published guidelines for Innovo to be first line therapy for stress your incontinence treatment in the UK, we have a reimbursement business in France. So we never walk away from the fact that ultimately, if we also have doctors prescribing, our treatment, and insurers and payers reimbursing it will increase access to more and more women. And then finally, I just want to talk about the exit I think all of us as entrepreneurs, innovators are thinking well, what's going to happen to my baby, my business, my brand when it grows up. Ultimately, we see a really, really strong exit for this business. It is a very unique proposition that spans entirely unique technology and med tech. But with a ready made access to a very, very large audience. It's a huge category, we have this very high margin, very low overhead business and an E commerce model, which helps us and we can see examples in the environment where some of the strategic buyers will pay 10 times that revenue multiple to buy a brand that's ready to activate and escalate in a large category of such unmet need. So that is our innovo opportunity. This is the team that's delivering it to my colleagues in the back of the room as well. We're here to talk to anybody who wants to learn more. We'll be very happy to take any of your questions. So thank you very much for your time and attention.