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Viropro investor presentation 01_apr11

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  • 1. Investor Presentation
    Information contained herein this document is derived from information sources already in the public domain. It is not intended to be exhaustive, and should be read in conjunction with the other published Company information sources. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose.
    The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
    Viropro, Inc.
    4199 Campus Dr., Suite 550
    Irvine, CA 92612
    USA
  • 2. Biotech Contract Development and Manufacturing with Asia-backed Services
    SECTION 1
  • 3. Why Are Contract Services So Important to this Industry?
    • Rising costs
    • 4. Regulatory requirements
    • 5. Growing global competition
    • 6. Pace of technology innovation
    Increasing the pressure on product development strategies - from drug discovery through commercial manufacturing
    Biotech companies need us more than ever to help get their products to market as efficiently and economically as possible!
    Viropro, Inc.
    Confidential
  • 7. Mission Statement
    “MAKE BIOTECH DRUGS FOR CLIENTS, EFFICIENTLY AND ECONOMICALLY.”
  • 8. The Business Recipe
    To create the correct level of cross-border mix that will enable us to build a world-class biotech contract services company, while simultaneously allowing each entities’ entrepreneurial drive to flourish (a la a “Protean” corporation).
    Bizplan - Confidential
  • 9. SECTION 2
    The Changing Market Dynamics
  • 10. Does The Service Address A Viable Market?
    • Yes, it does. We’re NOT trying to create demand where it hasn’t already been expressed.
    • 11. The global trend for the foreseeable future is for a continuing increase in the rate and volume of R&D that is being out-sourced by mid-to-large pharmaceutical companies.
    Confidential
    Viropro, Inc.
  • 12. Biopharmaceutical Contract R&D and Manufacturing Market Overview
    Growth rates moderating: 12% from 15%
    2009 market declined
    2011 market: $4.3 billion
    Billion of Dollars
    Year
    Data Source: Industry Reports
    Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance (48 pharmaceutical and biotechnology companies/29 CMOs)
  • 13. World Outsourced Market Volumes Mammalian Cell Culture Overview
    Contractors Capabilities
    No. Of Kgs
    Year
    Data Source: Industry Reports
    Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance (48 pharmaceutical and biotechnology companies/29 CMOs)
  • 14. Changing Pharma/Biotech Attitudes Towards Asia-backed CDMO Services
    In 2005, 53% of respondents would consider using a contractor outside their region
    Will
    Not
    10%
    Will
    Not
    Will Consider working with Asian COM
    In 2007, 80% of respondents would consider using a contractor outside their region
    Will Consider working with Asian COM
    80%
    Significant change in attitudes
    Data Source: Industry Reports
    Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance (48 pharmaceutical and biotechnology companies/29 CMOs)
  • 15. Pharma/Biotech Advantage to using Asian CMOs
    Users look for substantial cost savings when using an Asian CMO
    Data Source: Industry Reports
    Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance (48 pharmaceutical and biotechnology companies/29 CMOs)
  • 16. Pharmaceutical and Biotechnology Companies:
    Overview of Respondents’ Outsource
    Strategies
    Data Source: Industry Reports
    Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance (48 pharmaceutical and biotechnology companies/29 CMOs)
  • 17. Biopharmaceutical Contract Development & Manufacturers:
    Future Plans:
    Data Source: Industry Reports
    Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance (48 pharmaceutical and biotechnology companies/29 CMOs)
  • 18. SECTION 3
    The Business Model for a Global Footprint
  • 19. The Global Footprint
    Cambridge, UK
    Montreal, CA
    Groningen, NL
    Pune, IN
    Irvine-San Diego
    Penang, MY
  • 20. “String of Pearls”
    Future
    Future
    Intas
    BPD
    Alpha
    Montreal
    ESQ
  • 21. Prof. Pisano’s Model: Adapted for Viropro
    Bioprocessing
    MammCell Mfg.
    Prot. Analytics
    BacCell Mfg.
    CRO/Other
    VIROPRO
  • 22. Viropro, Inc.
    To be added
  • 23. New Structure
    VPRO
    Malaysia
    100%
    Poway/San Diego
    100%
    ALPHA
    ESQ
    BPD
    Holland
    (76%-100%)
    M’real
    India
    Bac.
    GMP
    Mam.
    GMP
    Poway
    Camb.
    Future India
    (51%)
    Malaysia
    (100%)
    Center of Excellence for
    Expression Platforms & Bioprocessing
    Center of Excellence for
    Protein Analytics
    Center of Excellence for
    GMP Biomanufacturing
  • 24. SECTION 4
    Capabilities and Core Strengths(creating a “1 + 1 equals more than 3” situation!)
  • 25. Capability
    Cell line development
    Preclinical material - Toxicology
    Process development
    Cell line
    Scale up
    Viropro, Inc.
    Bulk Material is delivered for fill/finish
    Production of clinical bulk
    Market Supply
    Validation
    Cell analysis and Virus studies
    Clinical Studies Phase I - III
    Commercial / Phase IV
    Other specialized service providers may be involved in delivering a complete clone-to-clinic development / manufacturing package for bacterial-, yeast- and mammalian cell culture products.
  • 26. Combined Customer Base
    Over 100 clients, including:
    Small to Multi-National Pharma/BioPharma
    Biotech
    Universities
    CROs
    A small sampling of our combined customer base:
    Avecia Biologics, Bayer Bioscience, Boehringer-Ingelheim, DSM Research, Ferring, Hal Allergy, Halozyme, Henogan, Genmab, Geron, Intas Biopharmaceuticals Ltd., INSERM, King’s College, Lek Pharmaceuticals, Lonza, Lonza Biologics, Lupin Ltd., Merckle Biotech, Pfizer, Pharming Technologies, RentschlerBiotechnologi, Schering Plough, Serum Institute, UCB . . . .
    100’s of successful projects and repeat clients
    PROPRIETARY: DO NOT DISTRIBUTE
  • 27. Senior Management
    • Educated at top tier schools across North America, India and Europe:
    • 28. MIT, UCLA, McGill, Rutgers, Nebraska, IIT-Bombay, KTH-Stockholm and others
    • 29. 60-70% with Ph.D. / Post-Doc and M.D. experience
    • 30. Collective work experience:
    • 31. From Fortune 100 pharma companies to publicly-listed and startup biotech companies
    • 32. Over 200 man-years of experience spanning biotechnology to bio-business to raising capital to marketing and sales
    Bizplan - Confidential
  • 33. Key External Advisory Board Members
    • Prof. Gary Pisano (HBS – in process)
    Harry E. Figgie Jr. Professor of Business Administration and Chair, Technology and Management Program, HBS, Boston, MA
    • Prof. Danny Wang (MIT)
    Institute Professor, Department of Chemical and Biochemical Engineering, MIT, Cambridge, MA
    • Dr. Howard Levine
    BioProcess Technology Consultants, Inc.
    Massachusetts
    • Dr. Pete Fernandes
    Biotechnology Consultant
    California
  • 34. SECTION 5
    Finance Overview and Exit Valuation
  • 35. Financial Forecast Overview
  • 36. Funding Needed & Exit Strategy
    Viropro requires a grand total of USD 40 million in two major tranches of USD 24 million (in 2011) and USD 16 million (in 2012), respectively, for key acquisitions; for getting GMP accreditation; and working capital for 2 years until we reach a net positive cash flow position
    Funding required can be in form of equity/debt, preference share with fixed yield, soft loan or a combination of the above. Exit will depend on the investors’ strategy
    The method or vehicle used by the investor to exit will depend on their preference. Exit could be by any of the following methods:
    • Exit to the Market
    • 37. Listing on Singapore / Indian Stock Exchanges
    • 38. Strategic Trade Sale
    • 39. Global Integration, Merger or Acquisition
  • Project Cost & Funding - 1
    Bizplan - Confidential
  • 40. Project Cost & Funding - 2
    Bizplan - Confidential
  • 41. Exit Valuation
  • 42. Investment Merits
    The contract services business for biopharmaceutical products is poised for an incremental growth in Asia due to significant cost advantages and limited competition.
    Viropro has three Term Sheets in place to acquire key technical-, intellectual- and physical assets, and to capitalize the Alpha Biologics’ world class facility/asset in Penang, Malaysia, thereby providing the foundation for its global footprint.
    The investments required by Viropro is for the above acquisitions and for working capital to prepare Alpha Biologics for its GMP accreditation and to going commercial.
    Viroprohas an experienced management and technical team.
    An investment return of ~10X and an IRR of ~46% on post-tax earnings, in the 5th year of full GMP operation, is predicated on the basis of a robust financial model.
  • 43. SECTION 4
    Appendix
  • 44. Capitalization of Alpha Biologics into Viropro
    Babraham Research Park
    Babraham, Cambridgeshire
    Penang Science Park
    Malaysia
  • 45. Alpha Biologics Summary -1/2
    Alpha Biologics is a bio-manufacturing organisation offering US FDA and European EMEA current Good Manufacturing Practices (cGMP) compliant services to the worldwide pharmaceutical and biotechnology industry
    A new FDA design-reviewed 5,000m2 plant on the Penang Science Park for the manufacture of biologics drugs (including bio-similar) for pre-clinical and Phase I, II and III clinical trials
    State-of-the-art bespoke manufacturing equipment designed, built and validated by industry experts in Europe
    Process development laboratories located in the biotech hub of Cambridge UK, lead by highly experienced industry experts
  • 46. Alpha Biologics Summary – 2/2
    The facility will focus on the provision of mammalian cell culture services for the production of monoclonal antibodies and recombinant proteins
    Future expansion could be envisaged in two stages – the first, a ‘fill/finish’ operation; the second, a microbial cell facility
    Managed by a team of professionals with cGMP facility design and operation, and manufacturing experience in the US and Europe, Alpha will ensure the highest standards of production and regulatory compliance
    Most, if not all, of the major contract manufacturing competitors are located in the US and Europe and costs associated with these facilities, due to their locations and size are much higher than Alpha. Thus Alpha will be able to compete aggressively on pricing while still achieving the gross and net margins required