alliqua investor presentation alqa

7/28/2019 Alliqua Investor Presentation ALQA

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Investor Presentation

February 2015 Nasdaq: ALQA


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This presentation contains forward-looking statements. Forward-looking statements are

generally identifiable by the use of words like "may," "will," "should," "could," "expect,"

"anticipate," "estimate," "believe," "intend," or "project" or the negative of these words orother variations on these words or comparable terminology. The reader is cautioned not to

put undue reliance on these forward-looking statements, as these statements are subject to

numerous factors and uncertainties outside of our control that can make such statements

untrue, including, but not limited to, the adequacy of the Companys liquidity to pursue its

complete business objectives; inadequate capital; the Companys ability to obtain

reimbursement from third party payers for its products; loss or retirement of key executives;

adverse economic conditions or intense competition; loss of a key customer or supplier; entryof new competitors and products; adverse federal, state and local government regulation;

technological obsolescence of the Companys products; technical problems with the

Companys research and products; the Companys ability to expand its business through

strategic acquisitions; the Companys ability to integrate acquisitions and related businesses;

price increases for supplies and components; and the inability to carry out research,

development and commercialization plans. In addition, other factors that could cause actual

results to differ materially are discussed in our Annual Report on Form 10-K filed with the SECon February 24, 2015 and our most recent Form 10-Q filings with the SEC. Investors and

security holders are urged to read these documents free of charge on the SEC's web site at

www.sec.gov. We undertake no obligation to publicly update or revise our forward-looking

statements as a result of new information, future events or otherwise.

Forward-Looking Statement Disclaimer


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Alliqua BioMedical: Corporate Vision

To build a suite of advanced wound care

solutions that will enable surgeons, clinicians &

wound care practitioners to address the entirespectrum of challenges presented by chronic

and acute wounds


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MAY 2010 HepaLife Technologies (OTCBB: HPLF) acquires AquaMed Technologies, Inc.

DEC. 2010 Company renamed Alliqua, Inc.

MAY 2012New Chairman of the Board: D R . J E R R Y Z E L D I S - Chief Medical Officer of Celgene

Corporation since 1997

FEB. 2013 New Chief Executive Officer: D A V I D J O H N S O N - Former CEO of ConvaTec

MAR. 2013 Refocused company on building a diversified wound care portfolio

SEPT. 2013 Announced commercial rights to sorbion product in the Americas

NOV. 2013 Announced licensing agreement with Celgene Cellular Therapeutics

JAN. 2014 Uplisted to NASDAQ exchange

MAY 2014 Announced definitive agreement to acquire Choice Therapeutics

JAN. 2015Expanded sell-side coverage of ALQA to a total of five research firms: Alere Financial, Craig-Hallum

Capital Group, H.C. Wainwright & Co., Laidlaw & Company, & Northland Securities

FEB. 2015 Announced definitive agreement to acquire Celleration, Inc.

Alliqua BioMedical: Brief Corporate History


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Why Advanced Wound Care?Large & Growing Global Market

U.S. represents more than half of the

Global market

U.S. market highly fragmented

*Source: CDC.gov, Wound Healing Society, Journal of Wound Repair and Regeneration

(Vol. 17, Issue 6) & Alliqua management estimates

CHRONIC WOUNDS

(5.1+ MILLION)

Diabetic Foot Ulcers(5 15% of all diabetics =

~2.0M)

Pressure Ulcers(~2.5M in acute care

facilities alone)

Venous Leg Ulcers(~600,000)

Arterial Ulcers(~10% of all leg ulcers)

ACUTE WOUNDS(770,000+)

Burn Wounds(~120K in-patient & ~650K

out-patient)

Trauma Wounds(~2.5M trauma hospital

admissions per year)

Surgical Wounds(~29M surgical procedures

per year)

U.S. Annual Wound Incidence*

~5 Large,

Diversified

Companies

50%

~100+

Private &

Micro-Cap

Companies50%

U.S. Wound Care Market Share(Illustrative)

Growth in wound incidence

expected due to demographic

trends in diabetes and obesity

Large and growing patient population

Global Advanced Wound Care Market

Estimated at $8+ Billion*


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Why Advanced Wound Care?Clinical Need & Compelling Market Dynamics

Clear clinical need for advanced wound care

therapies

Shift from conventional to sophisticated wound care

products

Skin & skin substitutes sub-segment underpenetrated

(represents just ~5% of the global advanced wound care

market today*) Better/faster wound healing = Lower overall

treatment costs

Reduced hospitalization times, incidence of HAIs,

retreatment rates and risk of amputation

Multi-clinician user base

Surgeons, nurses and wound care specialists

Multi-channel customer base

Hospitals, ASCs, burn centers, wound care centers and

trauma centers

*Source: CDC.gov, Wound Healing Society, Journal of Wound Repair and

Regeneration (Vol. 17, Issue 6) & Alliqua management estimates

Venous leg ulcer

Pressure ulcers

Diabetic foot ulcer


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2012

Revenue

$1.2M

What Did Alliqua Look Like in Early 2013?

Unique Hydrogel Wound Care Products

FDA Cleared

Fully Reimbursed

Contract Manufacturing Business

Unique Electron Beam Hydrogels

Medical Device Customers

NoRevenue

SilverSeal


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Alliqua BioMedical: Growth StrategyPhase One: Develop the Platform

1. Build an experienced management team

2. Access new sources of financing to support growth

initiatives

3. Create an integrated portfolio of wound care

technologies though acquisitions, licensing and

distribution agreements

4. Establish a world-class sales and distribution

infrastructure

Initiated Phase One of Growth Strategy in Q213 with Four Objectives:


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Alliqua BioMedical: Growth StrategyPhase One Objective #1: Build an Experienced Management Team

Name Title Previous Employers

Brian Posner Chief Financial Officer

Brad Barton Chief Operating Officer

Lori Toner Chief Marketing Officer

Janice Smiell, M.D. Chief Medical Officer

Gregory Robb VP of Operations

President of ConvaTec Americas

Chief Financial Officer

VP of Global Marketing

VP of Medical Affairs

Exec. Director of Global Clinical R&D

Senior Director of Global Clinical R&D

VP of Operations

100+ Years of Combined Wound Care Experience


10/2010

APR. 14 Raised gross proceeds of $20.3M

-$5.3M from warrants and $15M from sale of common stock

-Major investors: Celgene, Broadfin, Perceptive Advisors & J. Goldman

NOV. 13 Raised gross proceeds of $13M

-$6M from Celgene

-$7M from major healthcare investors including Broadfin and Perceptive Advisors

NOV. 13 Raised $1M from Crossover Healthcare Fund

APR. - JUN. 13 Raised $3M led by Mgmt. and Directors

Alliqua BioMedical: Growth StrategyPhase One Objective #2:Access New Sources of Financing to Support Growth Plan

$37M Raised Since Beginning of 2013

December 31, December 31,

2014 2013

Cash & Cash Equivalents $16,770,879 $12,100,544Current Assets $19,629,067 $12,847,234

Total Assets: $29,723,724 $17,451,568

Current Liabilities $4,129,824 $3,353,464

Total Debt $0 $0

Total Liabilities: *$7,212,493 $3,498,876

Total Stockholders Equity $22,511,231 $13,952,696

*Includes contingent consideration liability of $2.9M related to Choice Therapeutics acquisition


11/2011

Alliqua BioMedical: Building the PortfolioPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies

Unique differentiated

Risk Adjusted regulatory & reimbursement

Clinically efficacious

Economic value proposition

Strong margin profile

The Criteria

Wound bed preparation

Exudate management

Anti-microbial technologies

Regenerative medicine

Targeting


12/2012

Alliqua BioMedical: Building the PortfolioPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies

DISTRIBUTION

PARTNERSHIPS

LICENSING

AGREEMENTS

TARGETED

ACQUISITIONS

November, 2013 May, 2014September, 2013

Licensing, marketing,

development and

supply agreement

with CCT, the

placental tissue &

stem cell R&D division

of Celgene

Acquired wound care

portfolio, technology

platform, and sales

and marketing team

Long-term, exclusive

agreement to

distribute sorbion-

branded products in

the Americas

Dermal Repair

ScaffoldBIOVANCEsorbion SanaSorbion Sachet STheraBond 3D

Acquiring new

reimbursed

technology platform,

and sales and

reimbursement

resources

February, 2015*

MIST Therapy UltraMIST

*Acquisition announced February 2, 2015; anticipated close by June 30, 2015


13/2013

Celleration Acquisition: MIST Therapy and UltraMISTPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies

Use low frequency ultrasound waves to stimulate the cells below the

wound bed surface, a region that was previously inaccessible to wound

care practitioners

Accelerates healing and wound closure

Reduces wound inflammation and bacteria/bioburden

Increases blood flow to the afflicted area

FDA 510(k) cleared; CE Mark

The only known noncontact, low-frequency, ultrasound devices cleared by theFDA with an indication to promote wound healing

Reimbursed by CMS

Covered in 5 of 8 Medicare administrative contractors representing 44 states

Hospital (APC) payment rate increasing from $83.73 to $146.08 in 2015

Reimbursed on physician schedule at a rate of $123.16 beginning in 2015

Strong clinical support

5 randomized controlled trials, 10 other prospective or retrospective studies, 25

case series and 1 meta-analysis with nearly 450 subjects

Commercial traction

$8.7 million of sales in fiscal year 2014

MIST Therapy System

UltraMIST System

UltraMIST Applicator


14/2014

A Strong, Comprehensive and Unique PortfolioPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies


15/2015

Alliqua BioMedical: Regulatory & ReimbursementDe-Risking the Business Model

Product FDA Clearance Medicare Reimbursement

Hydress n/a HCPCS A Code Hydrogel Dressing

SilverSeal 510(k) HCPCS A Code Hydrogel Dressing

sorbion Products n/a HCPCS A Code Alginate Dressing

TheraBond 3D 510(k) HCPCS A Code Contact Layer

BIOVANCE PHS 361 product*Received HCPCS Q Code (Q4154) in Nov. 14;

HCPCS Q Code went into effect on Jan. 1, 2015

MIST TherapySystem 510(k)

AMA approved a CPT I code, 97610, effective Jan14 Low-frequency, noncontact, nonthermal ultrasound,

including topical application(s), when performed, wound

assessment, and instruction(s) for ongoing care, per day.

Coverage by 5/8 MACs (44 states)

*commercially available under Section 361 of the Public Health Service Act, which allows minimally manipulated human cells,tissues, and cellularand tissue-based products (HCT/Ps) to be marketed in the United States (U.S.) without pre- market FDA approval (also called a 361 product)


16/2016

Alliqua BioMedical: Commercial StrategyPhase One Objective #4: Establish a World-Class Sales and Distribution Infrastructure

25 direct sales representatives as of 12/31/14

Celleration acquisition* will add 19 additional sales personnel

42 indirect sales force representatives

National Distribution Partners:

Product supply group purchasing agreements (GPO contracts):

MedAssets (awarded August 2014)

Premier (awarded December 2014)

*Acquisition announced February 2, 2015; anticipated close by June 30, 2015


17/2017

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

2012 2013 2014 2015

Contract Manufacturing ALQA Proprietary Products Revenue*

Revenue Growth Trends ImprovingStrong Growth of Proprietary Products in 2014; FY15 Guidance Implies Continuation of Trends

*Proprietary products revenue includes contributions from the Choice Therapeutics acquisition of $323,000, $577,000 and $596,000 inQ214, Q314 and Q414, respectively. FY15 includes mid-point of Celleration 2H15 guidance ($4.75M) and assumes a June 30th

closing date.

Revenue growth of proprietary products in 2014 driven by the combination of:

Increasing sales force productivity following investment in March Ramp in sales of sorbion products & Launch of BIOVANCE in April

Acquisition of Choice Therapeutics in May

Mid-Point

of 2015

Guidance*

In Q414, revenue from proprietary products accounted for 81% of total

revenue, compared to 23% of revenue in Q413


18/2018

Focus Area Summary of Progress

Management &

Board Leadership

New Chief Executive Officer, Chief Financial Officer, Chief Operating Officer,

Chief Medical Officer & Chief Marketing Officer

New Board members: Perry Karsen, Andrew Africk and Gary Restani

Financing Raised gross proceeds of $37M

Cash balance improves to $16.8M at end-Q414 from $28K at end-Q113

Product Portfolio

Launched BIOVANCE

Acquired Choice Therapeutics TheraBond 3D

Celgene Licensing Agreement BIOVANCE & Dermal Repair Scaffold

o Expanded to Orthopedic and Podiatric Applications

sorbion Distribution Agreement sachet S & sana

Sales Distribution

and Infrastructure

Created direct sales force (25 total reps at end-Q214)

42 indirect sales force representatives

6 partnerships with national distributors

GPO contract with MedAssets & Premier

Revenue

Performance(12-Months ended Q414)

Total revenue increased 166% Y/Y to $4,786,131

Proprietary products revenue increased 1,577% Y/Y to $3,003,521

Alliqua BioMedical: Growth StrategyPhase One: Summary of Progress ToDate (Q213 to Q414)


19/2019

Drive revenue growth with current product portfolio through: Improving sales force productivity,

Further penetration of the advanced wound care market, and

New GPO contracts

Complete acquisition of Celleration by June 30th, 2015 and integrate

Pursue reimbursement coverage for BIOVANCE from Medicare

Reimbursement Contractors (MACs)

Expand advanced wound care product portfolio by leveraging the

development pipelines of our strategic partners and opportunistically

pursuing additional platforms

Alliqua BioMedical: Growth StrategyPhase Two: Continue to Expand and Leverage the Platform to Drive Performance


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Nasdaq: ALQA

Alliqua BioMedical, Inc.

[email protected]

2150 Cabot Blvd West

Langhorne, PA 19047

(215) 702-8550

alliqua investor presentation alqa

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