SBM-Investor-Present..

Investor Presentation
July 8, 2016
TM
TSX-V: SBM
Forward Looking Statements
Sirona Biochem cautions you that statements included in this presentation that are not
a description of historical facts may be forward-looking statements. Forward-looking
statements are only predictions based upon current expectations and involve known
and unknown risks and uncertainties. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of release of the
relevant information, unless explicitly stated otherwise. Actual results, performance or
achievement could differ materially from those expressed in, or implied by, Sirona
Biochem’s forward-looking statements due to the risks and uncertainties inherent in
Sirona Biochem’s business including, without limitation, statements about: the
progress and timing of its clinical trials; difficulties or delays in development, testing,
obtaining regulatory approval, producing and marketing its products; unexpected
adverse side effects or inadequate therapeutic efficacy of its products that could delay
or prevent product development or commercialization; the scope and validity of patent
protection for its products; competition from other pharmaceutical or biotechnology
companies; and its ability to obtain additional financing to support its operations.
Sirona Biochem does not assume any obligation to update any forward-looking
statements except as required by law.
TSX-V: SBM
Introduction and History
Sirona Biochem (Parent Company)
Vancouver, BC, Canada
TFChem (Wholly Owned Subsidiary)
Cosmetic Valley, France
• Sirona Biochem was founded in 2009
• TFChem was acquired in 2011
TSX-V: SBM
Sirona’s Fluorination Chemistry Technology
The Solution to Unstable Carbohydrate Molecules
Carbohydrate
molecules are
unstable by
nature
Our technology
stabilizes
carbohydrate
molecules
Resulting in improved bioavailability and selectivity
that translates into better safety and efficacy
TSX-V: SBM
Investment Highlights
• Sirona Biochem has developed a safe and
effective skin lightener that is hydroquinone free
with 8 times the efficacy of deoxyarbutin
• Our discounted cash flow models estimate a
NPV of $240 million including upfront, milestone
and royalty payments
• Our technologies are currently partnered with
Valeant/Obagi and Wanbang/Fosun
TSX-V: SBM
Current Collaborations & Pipeline
Cosmetic Products
Therapeutic Area
Compound
Partnering Status
Skin lightening
TFC-849
Valeant / Obagi
Skin lightening (Rx & OTC)
TFC-1067
In partnering discussions
Cell Preservation
Various
In R&D
Anti-Aging
Various
In R&D
Keloid Scar Treatment
Various
In R&D
Acne Treatment
Various
In R&D
TSX-V: SBM
Current Collaborations & Pipeline
Pharmaceutical Products
Therapeutic Area
Compound
Partnering Status
Diabetes
TFC-039
Wanbang / Fosun (China)
Ready for licensing in ROW
Regenerative Medicine
TFC-1165
In R&D
Inflammatory Disease
TFC-1227
JV with Bloom Burton & Co
TSX-V: SBM
Leading Cosmetic and Pharmaceutical
Companies
TSX-V: SBM
Business Development Strategy
• License TFC-1067 to a major industry
partner with a commercial and R&D
Infrastructure in Japan, Asia-Pacific,
Europe and North America
TSX-V: SBM
Global Skin Lightening Market
25.0
$ billions
20.0
17.3
18.1
18.9
19.8
2016
13.2
4.5
0.4
2017
13.7
4.8
0.4
2018
14.1
5.2
0.5
15.0
10.0
5.0
0.0
Japan
Asia-Pacific
US, EU, ROW
TSX-V: SBM
2015
12.8
4.1
0.4
Revenue Generating Opportunities*
Description
2016A
2016E
2017E
2018E
2019E
Material Assumptions /
Factors
2020E
Material Risk Factors
•
•
Upfront
payment of
$90M in Q3 (**)
Successful licensing of
TFC-1067
Milestone
payment of
$98M (**)
Ongoing
royalties
totaling
$715M (**)
Assumes exclusive
worldwide rights.
• Peak penetration at year 10
= 15%.
• 10 year sales period from
2019 to 2028. (20 year
patent protection).
** Please see next slide for
comparable transactions.
•
•
•
•
Commercialization of
TFC-849
Valeant / Obagi
•
First royalty
payment in
Q2
Assumes active ingredient
is utilized in existing
formulations.
•
•
•
Licensing agreement
for TFC-039
($9.5M + royalties)
Wanbang / Fosun
$300K
milestone
payment
received
$500K upon
IND filing
$500K
Phase I
$1.5M
Phase 3 CTA
•
These milestone payments
are according to the
licensing agreement.
•
•
1067 is not licensed to
a major corporation.
Unfavorable testing
results.
Change in business
priority of potential
partner.
Merger or acquisition
of a potential partner
creates unexpected
delays.
Chemical processes
and scale-up are not
economically viable.
Delays in
commercialization.
Unfavorable testing
results.
Chemical processes
and scale-up are not
economically viable.
First line tests by
Wanbang are not
acceptable to them.
Change in business
priority.
*The sole purpose of the forward looking information is to show the potential revenue generation from milestones achieved for the noted compounds/products if same
wereTSX-V:
achieved.SBM
The potential revenue shown is not a forecast but solely a target for Sirona management.
Comparable Transactions
•
Average dermatology royalty rates = 17.7%
•
Medicis Pharmaceuticals acquired the Esoterica skin care product line
from SmithKline Beecham Consumer Brands for $9.2 million in 1991
(UK & US territories only).
•
Medicis Pharmaceuticals obtained exclusive worldwide rights for the
development and commercialization of an investigational drug targeted
at certain topical skin applications in March, 2012. Medicis paid an upfront payment of $25.0 million, an additional $80.0 million upon the
achievement of certain research, development and regulatory
milestones and up to an additional $120.0 million upon the achievement
of certain commercial milestones, as well as royalties on future sales.
The total deal value was $225 million.
•
Valeant Pharmaceuticals acquired Medicis Pharmaceuticals in
December 2012 for $44.00 per share in cash. The transaction was
valued at approximately $2.6 billion.
•
All values mentioned above are in US currency.
TSX-V: SBM
Source: Informa’s Medtrack
Sirona Biochem vs the Nasdaq
Biotechnology Index
4,500
0.25
4,000
0.2
3,500
0.15
3,000
0.1
2,500
0.05
2,000
0
TSX-V: SBM
NBI
SBM
Share Capital
Shares Issued & O/S:
Stock Options:
162,472,548
14,590,000
Warrants - $0.20 strike exp 03/06/2017: 8,865,970
Warrants - $0.30 strike exp 05/11/2018: 2,073,750
Shares Issued (Fully Diluted): 180,002,268
Market Cap: $27,620,333
Cash:
$1,200,000
(As at Jun 30/16)
TSX-V: SBM
Who we are
Howard J. Verrico, MD
CEO and Chairman of the Board
Geraldine Deliencourt-Godefroy, PhD
Chief Scientific Officer
Michelle Seltenrich, MBA, BSc
VP, Operations
TSX-V: SBM
Christopher Hopton, CGA
Chief Financial Officer
Attila Hajdu, MBA, MSc
Chief Business Development Officer
Summary
• Sirona Biochem is a discovery and
development stage biotechnology
company that is the leader in
commercializing carbohydrate chemistry
• There is an opportunity to license TFC1067 and generate significant revenues in
a $20 billion market with a safe and
effective product
TSX-V: SBM