quantum immunlogics

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Fighting Cancer With Leading Edge Immunotherapy November 2009

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Quantum Immunologics (QI) is dedicated to the research, development and production of products and services that will promote immunologic cancer treatments and cancer detection technologies.

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Page 1: Quantum Immunlogics

Fighting Cancer With Leading Edge Immunotherapy

November 2009

Page 2: Quantum Immunlogics

Mission Statement Putting Cancer Into Context Immunotherapy Overview & QI’s Approach QI’s Immunotherapy Video FDA Authorized Phase I/II Trials Economic Perspective QI’s Ongoing Research & Development About QI

An investment in QI is speculative, involves a high degree of risk and is suitable for persons of substantial means who have no need for liquidity with respect to their investment and can bear such risks, including the risk of losing their entire investment. Any investor considering making a potential investment in QI needs to read and review the “Private Placement Memorandum for Quantum Immunologics, Inc.,” particularly the “Risk Factors” section.

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Quantum Immunologics (QI):Agenda

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710

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Page 3: Quantum Immunlogics

Quantum Immunologics (QI) is dedicated to the research, development and production of products and services that will promote immunologic cancer treatments and cancer detection technologies that are:

All at greatly reduced and highly competitive costs.

Mission Statement

Individualized Targeted Safe Highly efficacious

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Page 4: Quantum Immunlogics

Putting Cancer Into Context: Recent News Articles

New York Times Article, April 24, 2009 entitled “Forty Years’ War: Advances Elusive in Drive to Cure Cancer”

• “Cancer has always been an expensive priority. Since the war on cancer began, the National Cancer Institute…has alone spent $105 billion. And other government agencies, universities, drug companies and philanthropies have chipped in uncounted billions more.”

• “Yet the death rate for cancer, adjusted for size and age of the population dropped only 5% from 1950 to 2005. In contrast, the death rate for heart disease dropped 64% in that time.”

• “With breast cancer…only 20% with metastatic disease – cancer that has spread outside the breast, like to bones, lungs, or liver – live five years or more, barely changed since the war on cancer began.”

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Page 5: Quantum Immunlogics

May 31, 2009 Associated Press Article “Immune Therapies Finally Working Against Cancer”

• “First there was surgery, then chemotherapy and radiation. Now doctors have overcome 30 years of false starts and found success with a fourth way of fighting cancer: using the body’s natural defender, the immune system.”

• Positive late stage clinical results have been obtained for: Prostate cancer Brian cancer Small cell lung cancer

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Putting Cancer Into Context: Recent News Articles (cont.)

Page 6: Quantum Immunlogics

Time Magazine Article, September 14, 2009: “A Shot at Cancer”

• “It’s been a slow evolution, but we are seeing the first inklings that cancer vaccines can work,” says Dr. Steven Rosenberg, chief of the surgery branch at the National Cancer Institute.

• “Understanding how the immune system works is going to play a significant role in our treatment of cancer going forward” says Dr. Len Lichtenfeld of the American Cancer Society.

Putting Cancer Into Context: Recent News Articles Putting Cancer Into Context: Recent News Articles (cont.)(cont.)

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Page 7: Quantum Immunlogics

Two general approaches to immunotherapy

• Directed against a structure vital in the replication/growth process of the cancer cell

• Directed against a foreign protein on the cancer cell leading to cell destruction

Immunotherapy allows patients to have a better quality of life

• Fewer side effects because immunotherapy targets only cancer cells, avoiding healthy tissue

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Immunotherapy Overview

Page 8: Quantum Immunlogics

OFA - immature form is not found on normal tissue The OFA protein is found on many cancer lines

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QI’s Immunotherapy Approach: Oncofetal Antigen - Immature Laminin Receptor (OFA)

Page 9: Quantum Immunlogics

Sensitizes cells known as antigen presenting cells (dendritic cells) to OFA

Dendritic cells then present OFA to T-lymphocytes

T-lymphocytes are directed to combat cells that have OFA

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QI’s Immunotherapy Approach Focuses on OFA

QI is the exclusive licensee of various patent rights in the U.S., Europe and other countries for the use of OFA to

diagnose, monitor and treat cancer diseases

Page 10: Quantum Immunlogics

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QI’s Process: Video of OFA / Dendritic Cell Immunotherapy

Page 11: Quantum Immunlogics

Multi center, open label, non-randomized

Metastatic Stage IV Breast Cancer Patients, who have undergone and failed radiation and/or chemotherapy

27 Total Phase I - 3 patients (safety) Phase II - 24 patients (safety and efficacy)

3 OFA loaded activated dendritic cell injections, with monthly intervals between each injection

Determine safety and toxicity Determine immunological response and induction of OFA

specific T-lymphocytes

Evaluate objective clinical responses Evaluate time to disease progression Evaluate survival

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Design

Target Population

Number of Patients

Treatment

Primary Objectives

Secondary Objectives

QI’s FDA Authorized Phase I/II Trial Is Underway

Page 12: Quantum Immunlogics

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4 – 20+IV - Year long, every week or every 3 weeks

3 injections, monthly intervals

$10,000 - $200,000 $70,000 - $100,000 $60,000

Can Be Multiple and Severe

Some, and likely to be Moderate

Minimal, and likely to be Mild

Chemotherapy Herceptin QI ImmunoTx

Micro Economic Perspective of Treatment Options for Metastatic Breast Cancer

Total Cost

Patient Side Effects

Number of Treatments

Page 13: Quantum Immunlogics

The market niche for Stage IV breast cancer only is Huge• The estimated number of deaths of American patients with breast cancer

in 2009 is 40,610 (Source: American Cancer Society)

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Penetration Rate 10% 20% 30% 40%

Number of Patients(US Only)

4,061 8,122 12,183 16,244

Annual QI Rev at $60,000/Patient

$243,660,000 $487,320,000 $730,980,000 $974,640,000

Macro Economic Perspective of Stage IV Breast Cancer Market

Number of estimated deaths from breast cancer in 2007 worldwide is 464,854 (Source: American Cancer Society)

Page 14: Quantum Immunlogics

The market niche for ALL stages of breast cancer is Beyond Huge• The estimated number of new breast cancer cases in America in 2009 is

194,280 (Source: American Cancer Society)

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Penetration Rate 10% 20% 30% 40%

Number of Patients

(US Only)19,428 38,856 58,284 77,712

Annual QI Rev at $60,000/Patient

$1,165,680,000 $2,331,360,000 $3,497,040,000 $4,662,720,000

Macro Economic Perspective of All Stages of Breast Cancer

Number of estimated new breast cancer cases worldwide in 2007 is 1,301,867 (Source: American Cancer Society)

Page 15: Quantum Immunlogics

Looking Ahead:

QI’s Ongoing Research & QI’s Ongoing Research & DevelopmentDevelopment

Page 16: Quantum Immunlogics

• Provisional Patent 1: OFA peptides

• Specific protein sequences found within OFA

• More easily recognized and processed by dendritic cells

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QI’s Ongoing Research & Development: QI’s Ongoing Research & Development: Two Provisional Patents Have Been FiledTwo Provisional Patents Have Been Filed

It may be possible to directly administer these peptides to the patient without the need for ex vivo sensitization by

dendritic cells

Page 17: Quantum Immunlogics

This could lead to a diagnostic test for the presenceof cancer in the body

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• Provisional Patent 2: QI has discovered antibodies against specific OFA peptides

• Antibodies are proteins made by the body’s immune system that aid in the recognition and destruction of foreign substances, including cancer cells

QI’s Ongoing Research & Development: QI’s Ongoing Research & Development: Two Provisional Patents Have Been Filed (cont.)Two Provisional Patents Have Been Filed (cont.)

Page 18: Quantum Immunlogics

Historical Milestone Dates

Management & Science Team

Funding Needs

Capitalization - Past and Present

Looking Out Through 2010

Summary

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About QI

Page 19: Quantum Immunlogics

JulOct Jan SepDec Mar Apr AugNov Feb

2008 2009

Opened TN Lab to conduct further cancer research and immunotherapy product development

Filed two provisional patent applications involving cutting-edge cancer immunotherapies and diagnostics

Took control of management and operations of the AL Lab to oversee and conduct Phase I/II Trial

Secured Exclusive Worldwide License Agreement for all products/patents developed by SAMSF related to OFA

Begin Phase I/II Trials of immunotherapy for Stage IV Breast Cancer Patients

QI’s Historical Milestone Dates

May Jun

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QI receives FDA authorization for Phase I/II Clinical Trial for Stage IV Breast Cancer Patients

Oct

QI presented at the Rodman & Renshaw Global Investor Conference

Page 20: Quantum Immunlogics

The scientists behind the science• Martin Eason, MD – Chief of Industry Relations, Director• Kent Johnson, MD – Chief Scientific Adviser• Eric Olle, PhD – Director of Research

Chuck Broes – Chief Executive Officer & Chairman of the Board• Taina Broes – Chief Operating Officer• Josh Coughlin – Chief Investment Officer, Director• Barry Rooth – Chief of Corporate Affairs, Director• Tim Schwiers – Director of Investor Relations• Don Wright – Chief Financial Officer

Because of their belief in QI, all of QI’s management/science team is working for stock, or at reduced salaries plus stock.

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QI’s Management & Science Team

Page 21: Quantum Immunlogics

Round 1 Capital Raise - $5,000,000 Private Placement Memorandum• Used to substantially complete Phase I / II Trial• Used to track/monitor Phase I / II Trial results• Continue the R&D efforts on other cancer products• Plan and prepare FDA submission of Phase II b / III Trial

Round 2 Capital Raise / IPO / JV or Acquisition by Pharmaceutical Company - $TBD• To execute Phase II b / III Trial• Continue R&D

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QI’s Funding Needs

Page 22: Quantum Immunlogics

QI’s Capitalization: Past Capital Raising InitiativesQI’s Capitalization: Past Capital Raising Initiatives

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Capital Raising

Tranche

$ per share

#

Warrants

$

Amount Invested

# Shares Issued

#

Warrants

Issued

Imputed Price per

Share

Tranche 1 $10 3 $ 924,100 92,410 277,230 $ 3.57

Tranche 2 $10 2 $ 2,169,712 216,971 433,942 $ 4.55

Tranche 3 $10 1 $ 1,104,720 110,472 110,472 $ 6.25

Mentor Capital *

*note receivable

$12 na $ 2,244,000 187,000 na $ 12.00

TOTAL: $ 6,442,532 606,853 821,644

Non-cash Shares

Founders/Directors/CEO 237,757

VRI / Venturific 82,172

Total Shares Outstanding

926,782

Page 23: Quantum Immunlogics

QI Summary Capitalization Table (as of 9-30-09)

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Current Shares Current Warrants

Total # Outstanding 926,782 821,644

QI Equity Capitalization $ 11,121,384

Round 1 Shares

Total $ Amount $ 5,000,000

Share Price $ 12

# Shares 416,666

% of QI Outstanding 31.0%

Post Round 1 Shares

Total # Outstanding 1,343,448

QI Equity Capitalization $ 16,121,376

Page 24: Quantum Immunlogics

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecDecNovOct

Phase I/II Trial

Phase II b/ III Trial

R&D

Corp.

2009 2010

QI: Estimated Timeline Through 2010

Financing

Take on FTEs

Round 1 - $5mm

Continue to Follow Up

FDA Application/Planning Process

Round 2 –IPO/Rev Merge Shell + SPO/JV/Acquisition

Page 25: Quantum Immunlogics

QI is the exclusive licensee of various patent rights in the U.S., Europe and other countries for the use of OFA to diagnose, monitor and treat cancer diseases

In addition to breast cancer, OFA is present in multiple cancer lines

Market niche for a successful immunotherapy treatment approach for breast cancer is several billion dollars

QI’s management team has accomplished much in a short amount of time with scarce resources and minimal capital

QI seeks additional capital to:- validate QI’s immunotherapy approach in the Phase I / II trial - plan and execute subsequent Phase II b / III trials

Significant ROI potential, with numerous avenues to a liquidity event

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QI Summary: Business Perspective

Page 26: Quantum Immunlogics

1 in 8 women will be diagnosed with breast cancer

Despite vast amounts of research time, billions of dollars in research, and trillions of dollars in treatment, mortality rates for breast cancer are essentially unchanged

QI’s FDA-Authorized Phase I / II Trial for Stage IV Breast Cancer Patients is underway

Preliminary Phase I / II results will be known by year end 2009

An investment in QI is speculative, involves a high degree of risk and is suitable for persons of substantial means who have no need for liquidity with respect to their investment and can bear such risks, including the risk of losing their entire investment. Any investor considering making a potential investment in QI needs to read and review the “Private Placement Memorandum for Quantum Immunologics, Inc.,” particularly the “Risk Factors” section.

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QI Summary: Clinical Perspective

Page 27: Quantum Immunlogics

Fighting Cancer With Leading Edge Immunotherapy

November 2009