confidential presenting gonexin december 13, 2001 providing hope through extension and enhancement...

Confidential

inc.

gonex gonex gonex pharmaceuticalspharmaceuticalspharmaceuticals

Presenting Gonexin

December 13, 2001

Providing hope through extension and enhancement of life

MBA Consulting Team

Larry Morkre

Matt Narens

Rick Silva, Ph.D.

Brian Weninger

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Concept

Gonexin is a revolutionary, patented “smart drug” for cancer treatment. We have the expertise to guide Gonexin to commercial success in a market with huge profit potential.

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Management and Leadership

Dr. Paul Jarosz•Chief Operating Officer•Involved in commercial development of 58 pharmaceutical products•Clinical development executive with Geneva Pharmaceuticals (Novartis), Johnson & Johnson, and Syntex (Roche)

Introduction

Opportunity

Technology

Financial

Summary

Questions

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Dr. Terry Nett •Cofounder and board member•Internationally recognized expert in GnRH biology

Dr. Mike Glode•Cofounder and board member•Internationally recognized researcher in prostate cancer biology•Consultant on clinical trials for Leupron and Abarelix

Management and LeadershipIntroduction

Opportunity

Technology

Financial

Summary

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Global Pharmaceutical Market $400 B

Chemopreventatives $0.230.06%

Non cancer, w orldw ide pharmaceutical market $370.0

92.9%

Chemotheraeutics $15.153.8%

0.00%

Other $5.771.4%

Immunotherapies $0.140.04%

Blood Cell Factors $7.731.9%

Total Worldw ide Cancer Drug Sales $29.02

7.1%

2003

Introduction

Opportunity

Technology

Financial

Summary

Questions

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Industry Trends

• Trend away from toxic to “smart drugs”

• Shift from healthcare spending to pharmaceutical spending

• Small R & D firms have innovative advantage

Introduction

Opportunity

Technology

Financial

Summary

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Market Growth Potential

• Up to 15% growth in human pharmaceutical market

• High risk begins at age 50

• Aging population

Introduction

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Summary

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Our Position

Hormone Therapy Agents

Non-ToxicToxic

Low Efficacy

High Efficacy

GonexinGonexinGonexin

Chemotherapeutic Agents

Radiation Therapy Surgery

Immunotherapy and Angiostatic Agents

Hormone Therapy Agents

Non-ToxicToxic

Low Efficacy

High Efficacy

GonexinGonexinGonexin

Chemotherapeutic Agents

Radiation Therapy Surgery

Immunotherapy and Angiostatic Agents

Introduction

Opportunity

Technology

Financial

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0

10

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30

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50

60

70

80

90

100

% p

enet

rati

on

Year 1 Year 2 Year 3 Year 4 Year 5

Gonexin Market Share

Market Share Growth

79,000 late stage cases of prostate cancer treated annually

Introduction

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Technology

Financial

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• Industry publications

Marketing StrategyIntroduction

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Marketing Strategy

• Trade shows

Introduction

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• Annual scientific and clinical meetings

Marketing Strategy

•Dedicated direct sales team•Web presence

Introduction

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Bright Future• We are an innovative Research and

Development organization• Other potential indications for Gonexin

– Breast cancer– Colon cancer– Uterine cancers– Pancreatic cancer– Some forms of lung cancer

Introduction

Opportunity

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Financial

Summary

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The Product

• Two therapeutic indications- Prostate Cancer•Hormone therapy•Chemotherapy

• Gonexin

• Other Epithelial Cancers

Introduction

Opportunity

Technology

Financial

Summary

Questions

• Leupron, Zolodex, and Viadur only offer hormone therapy mechanism

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Normal Physiology

Gonadotroph

GnRH

Non Target Cell

Receptor

Introduction

Opportunity

Technology

Financial

Summary

Questions

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Gonadotroph

GnRH

Non Target Cell

Receptor

Introduction

Opportunity

Technology

Financial

Summary

Questions

Normal Physiology

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Gonadotroph

GnRH

Non Target Cell

Receptor

Testosterone

Introduction

Opportunity

Technology

Financial

Summary

Questions

Normal Physiology

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Hormone Therapy Mechanism

Gonadotroph

Leupron

Non Target Cell

Receptor

Introduction

Opportunity

Technology

Financial

Summary

Questions

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Hormone Therapy Mechanism

Gonadotroph Non Target Cell

Receptor

Testosterone

Introduction

Opportunity

Technology

Financial

Summary

QuestionsGnRH

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Chemotherapy Mechanism

Gonadotroph

GnRH-Toxin

Non Target Cell

Receptor

Cancer Healthy Cell

Receptor

GnRH-Toxin

Introduction

Opportunity

Technology

Financial

Summary

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Gonadotroph

GnRH-Toxin

Non Target Cell

Receptor

Cancer Healthy Cell

Receptor

GnRH-Toxin

Chemotherapy MechanismIntroduction

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Summary

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Gonadotroph

GnRH-Toxin

Non Target Cell

Receptor

Cancer Healthy Cell

ReceptorGnRH-Toxin


Opportunity

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Summary

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Gonadotroph

Cancer

GnRH-Toxin

Non Target Cell

Receptor

Healthy Cell

ReceptorGnRH-Toxin


Opportunity

Technology

Financial

Summary

Questions

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GnRH-Toxin

Non Target Cell

Receptor

Healthy Cell

ReceptorGnRH-Toxin


Opportunity

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Summary

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Non Target Cell

Healthy Cell


Opportunity

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Key to Success• FDA Approval

– Safety of treatment– Efficacy of treatment

Introduction

Opportunity

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Gonexin Launch

Introduction

Opportunity

Technology

Financial

Summary

Questions

Series B$5 M in funding40% IRR16.7% of equity sold

a

a $136 million premoney valuation

Liquidity event (IPO)$43.5 M in funding29% IRR33% of equity sold

Funding & Development Schedule

Series A$3 M in funding45% IRR17% of equity soldpreferred

Series C$15 M in funding33% IRR29.8% of equity sold

Scientific proof of concept

Drug safety and Phase I clinical trials

Phase II clinical trials

Phase III clinical trials

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$(100)

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2003

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2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

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Net Earnings

Cumulative Cash Flow

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Costs

Revenue

$0

$100

$200

$300

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mill

ions

Year 11 Year 12 Year 13 Year 14 Year 15

Profit Growth

Profit

Introduction

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Summary• Promising, patented “smart drug” • Market of over $2.6 billion annually• Precedence for capture of 80% of market • Demographic shift will catalyze market

growth• Foundation for a management team with a

track record of drug commercialization

Introduction

Opportunity

Technology

Financial

Summary

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Questions

Introduction

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Questions

Introduction

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Funding Required

Year Funding Required

Milestone % Equity IRR

1 $3 M Scientific Proof of Concept

17% 45%

2 $5 M Drug Safety,

Phase I

16.7% 40%

3 $15 M Phase II 29.8% 33%

5 $43.5 M IPOa Phase III 33% (96.5%)

29%

Introduction

Opportunity

Technology

Expertise

Financial

Summary

Questions

a $136 million premoney valuation

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Gonexin PriceHormonal Treatment

Administer Insurance Cost

Urologist Cost

Difference

Gonexin™

Once $9,500 $5,500 $4,000

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Pricing Strategy

Hormonal Treatment

Administer Insurance Cost

Urologist Cost

Difference

Viadur Once/ Year $5,650

Surgery Once $4,000 N/A N/A

Lupron Depot

Once/ Quarter

$1,500 $750 $750

Zolodex Once/ Quarter

$1,125 $675 $450

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Development TimelineIntroduction

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Introduction

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Summary

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Tes

tost

eron

e le

vels

Leupron

Abarelix (Planexis)

ExogenousTestosterone

Removal of GnRH agonistOr antagonist

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Market

• Over 198,000 men diagnosed with prostate cancer each year

• 2nd leading cause of male cancer death in the US

Introduction

Opportunity

Technology

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Earnings and Cash FlowIntroduction

Opportunity

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$(100)

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Year 1

Year 2

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Year 4

Year 5

Year 6

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Year 8

Year 9

Year 1

0

Year 1

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5

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Year

Net Earnings

Cumulative Cash Flow

confidential presenting gonexin december 13, 2001 providing hope through extension and enhancement...

Documents

confidential management

confidential concept

confidential gonadotroph

brian weninger slide

confidential bright

cancer treatment

gnrh biology

commercial development