Penicillin was arguably the greatest advancement in healthcare in the 20th century. It and subsequent antibiotics created a revolution in healthcare and spawned a $30B industry.However, as good as these antibiotics were they missed a very important point about bacteria, and that is, bacteria exist as biofilms. Currently in the US:17 million patients suffer from biofilm infections at a cost to healthcare of $94B.Of this group, 550,000 people a year will die from these infections. 550,000!This is 30 times the patients deaths from AIDS and equal to the number of deaths from cancer.
Every single day of our lives we hear and read about these biofilm problems:Contamination of foodHospital superbugsKilling crops to stop the spread of disease.And every single time that an incorrect antibiotic or diagnostic test is used, and results in a treatment failure, the resistance of those bacteria increases ultimately resulting in multi-drug resistant organisms that live and breed in our hospitals. So rising health care costs are only part of the reason that doctors want to get you out of hospitals quicker. They want to get you out before one of these biofilm superbugs kills you.And the agricultural industry is struggling for better solutions to infestations of crops because bacteria and fungi are quickly becoming resistant to existing products.And food processing industries are in trouble because, in work done by Innovotech for the Federal Agriculture department in meat processing plants, none of the disinfectants, at label concentrations, kill biofilms of Listeria, E. coli, salmonella and other common pathogens. Clearly some innovation and new approaches are required!
All tolled, each of these needs equates to opportunities for Innovotech. And these markets are large… Our agricultural product, Agress will address the growing resistance problem to current products in this $13B market. In medical devices, our antimicrobial coatings for catheters and other implanted devices, AgreGuard, is unique in this $5B market.Our diagnostic, bioFILM PA and related susceptibility tests will advise doctors on choosing the right antibiotics the first time in this $6B market. This change in approach is “front and centre” in a major reason that bacteria become resistant to antibiotics.Finally, our disinfectant, SaniLux, currently in regulatory in Canada, may solve some of the biofilm problems that exist in the $2B food safety industry.Other large markets that have not been addresses, antibiotics and industrial applications; pulp& paper mills, etc.Before the word “scattered” or “unfocused” enters your mind, let me explain how we can effectively capitalize on these opportunities. The answer is that all of our products are based on a common platform, the MBEC Assay: Research Tool – 96 standardized and reproducible biofilms > expand knowledgeDiagnostics – front-end of bioFILM PAProducts – high throughput screening system.
Will talk more about bioFILM PA and Agress in subsequent slides SaniLux:Hard surface disinfection through reaction with light. The most intriguing aspect of this product is that it is already approved by regulatory agencies as a food dye.Our application for its use is at concentrations lower than the approved dye concentrations and is near approval with the Canadian Food Inspection Agency.It is not our intention to develop this product on our own. We have identified 3 markets and partners who will lead this development.Gram +/- kits:Expansion of the chronic infection market that was initiated by bioFILM PA, through the development of a platform of new tests. The 6 new tests provide us with the ability to test any chronic infection whether they occur in humans or animals.We have a private diagnostic laboratory in the US that is interested in the test for human use.Most importantly, we are developing the veterinary market with a veterinary diagnostic laboratory that conducts business in over 40 countries and believes that they will be using 12,000 of our veterinary tests in the first 12 months. This would represent an additional $1M of revenue to Innovotech. They have hired 2 microbiologist and have assigned a f/t marketing manager to develop this opportunity. We will be training their microbiologist next month in anticipation of a late summer product launch.AgreGuard:Developed out of our agriculture program when we noticed that it exhibited some unique properties. A common problem with all catheters and other implanted medical devices is that silver binds with chloride which is present extensively in the human body. We have MTA’s in place with 2 of the largest catheter companies.Take away message: Very strong pipeline!!
At the start of 2010, this is where we were:SK trial was starting year 2 of its 3 years.Demonstrated clinical outcomes at the UofA with a limited number of patients including 3 lives saved.No salesCurrently this is where we are at:SK trial releases results showing that in 71% of cases our test points to different antibiotics than traditional testing.Trial to expand to Seattle Children’s Hospital, most recognized CF hospital and potentially with financial support from the US CF Fdn. In fact, the US CF Fdn were the ones asked us to consider expanding the trial to Seattle.No progress with Alberta Health Services on paying for our test.LevPharm is in place as a client and will generate sales in Q3.An opportunity with a veterinary diagnostic company talked about earlierAgreement in principal with a US private diagnostic laboratory to provide tests for their market Launch of a “chronic infection problem” website to direct anyone searching for a solution to Innovotech.We have made significant progress in the susceptibility testing fieldTo this point in time we have concentrated on building a strong company and “in-demand” products. We also understand that as awareness of biofilms grows, large companies, like Siemens, BD and BioMerieux will look for technology to acquire. We will be well positioned to meet this need
At the start of 2010, this is where we were:Positive results with Agress as a seed treatment almost every situation that we have tested it. Syngenta as a partner stating that they want to put Agress into all their seed treatment products where they have a 50-70% market share.Apparent that EPA and PMRA had some problems understanding silverCurrently this is where we are at:TSG, an international regulatory consultant, with extensive silver expertise. In fact they have handled over 40 silver applications to the Environmental Protection Agency, more than any other company and are lead of EPA silver task force. The regulatory director of SYT is part of our teamWe have hired a PhD chemical engineer who did her thesis on the properties of silver to lead our research team.
In 2011:We will apply to the US EPA for Agress as a seed treatment in pulse, horticultural and potato crops.We will continue to push revenue for bioFILM PA in Canada, US and Israel and expect modest growth.Current and continued revenue from contract research.In 2012:We expect EPA approval, and will file for additional crops in US and Europe.We expect completion of the SK trial that will drive revenue.We will file with Health Canada for another test for Staph infections and with the market uptake resulting from the SK trial, we expect to secure a worldwide marketing partner.In 2013: We expect FDA approval for both of our diagnostic tests that will open the door to further accelerated growth.In 2014: We will expect first revenue from Agress and also expect European approval for our diagnostic tests.
Innovotech is addressing some fundamental problems that have a tremendous impact on our lives. These problems will not be solved until the biofilm products enter the scene.Innovotech is the only company in the world that has these products either in the market or in development.We are preparing ourselves for tremendous success!
We may have the best biotech board in Canada. We have a good mix of experience, from science, to finance to experience in growing companies.All board members are very engaged with he company and I use them on a regular basis in advancing our company’s growth
Our key management team is highlighted and we are developing a highly skilled second tier of managers, who will ultimately lead the company into the future.
Innovotech AGM Presentation April 19 2011
Annual General Meeting <br />19 April 2011<br />Edmonton, Alberta<br />Innovotech Inc.<br />
Innovotech Inc<br />A G E N D A<br />Welcome<br />Formal Administrative Business<br />Adjournment of AGM<br />Business Update<br />Q&A<br />
Innovotech Inc.Pursuing the Greatest Opportunityin Microbiology Since Penicillin <br />Annual General Meeting <br />19 April 2011<br />
Forward Looking Statements<br />This presentation contains forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Forward-looking statements may include words such as “expects”, “plans”, “will”, “believes”, “estimates”, “intends”, “may”, and other words of similar meaning and may relate to future financial performance, business strategies, or safety and efficacy of unapproved products.<br />Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small number of customers including government organizations; the demand for new products and the impact of competitive products, service and pricing; availability and cost of raw materials; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defence; the Company’s exposure to lawsuits and other matters beyond the control of management.<br />
Detachment and reversion to planktonic growth<br />Opportunity<br /><ul><li>Planktonic (free-floating)
80% of the problem</li></ul>FACT: 17 million patients (US) suffer from biofilm infections<br /><ul><li>Of those patients, 550,000 die
Cost to healthcare = $94 billion</li></li></ul><li>Opportunity<br />New hospital superbugs proving resistant to antibiotics<br />A new hospital superbug resistant to antibiotics has been brought into the country by patients returning home after surgery abroad. <br />13 Aug 2009<br />Health Authorities Link 12 Deaths to Contaminated Meat<br />Twelve deaths in Canada have now been linked to listeriosis, according to federal health officials who said Monday the deaths are among 26 confirmed cases of an outbreak across the country stemming from contaminated meat.Monday, Aug. 25, 2008<br />Florida Orange Acres Fall as Farmers Cut Sick Trees<br />Orange-crop acreage in Florida, the world's second-biggest producer, fell to a 24-year low as growers removed trees to slow the spread of disease affecting citrus crops, the U.S Department of Agriculture said.<br />Thursday, September 23, 2010<br />
Summary<br />New hospital superbugs proving resistant to antibiotics<br />A new hospital superbug resistant to antibiotics has been brought into the country by patients returning home after surgery abroad. <br />13 Aug 2009<br />Health Authorities Link 12 Deaths to Contaminated Meat<br />Twelve deaths in Canada have now been linked to listeriosis, according to federal health officials who said Monday the deaths are among 26 confirmed cases of an outbreak across the country stemming from contaminated meat.Monday, Aug. 25, 2008<br />Florida Orange Acres Fall as Farmers Cut Sick Trees<br />Orange-crop acreage in Florida, the world's second-biggest producer, fell to a 24-year low as growers removed trees to slow the spread of disease affecting citrus crops, the U.S Department of Agriculture said.<br />Thursday, September 23, 2010<br />
Contact Information<br />Ken Boutilier, President <br />Innovotech Inc. <br />firstname.lastname@example.org<br />Ph: 780-448-0585 ext 221<br />Fax: 780-424-0941<br />
People - Board<br />Lorne Babiuk, PhD<br />Kerry Brown , CA<br />Bruce Hirsche, LLM<br />Corporate Secretary <br />Wolfgang Muhs, PhD<br />Chairman of the Board<br />John Pinsent , CA<br />Gerard Tertzakian, PhD<br />James Timourian, PhD<br />Chief Financial Officer<br /><ul><li>Vice President Research, University of Alberta. Former-Director, VIDO, University of Saskatchewan, a renowned vaccine development institute.
Former-Chairman, Foundation Equity Corporation, a successful technology venture capital firm.
Partner with Parlee McLaws LLP, specializing in intellectual property and technology development.
Executive in pharmaceutical manufacturing at Laporte PLC, Degussa GmbH and Rhodia Pharma Solutions. CEO of Raylo Chemicals.
Founding Partner, St Arnaud Pinsent, Steman a technology-focused chartered accounting firm. Former Director of Technology at Ernst and Young LLP.
Experience in the creation, management, and financing of knowledge-based companies. Former-Chair & CEO of Innovotech, Raylo Chemicals and Cytovax Biotechnologies.
Former CFO at Raylo Chemicals. Former Chairman of the Board at Ricon Resins Inc. Serial investor and board member in over 15 early-stage technology companies. </li></li></ul><li>People – Senior Management<br /><ul><li>Former senior manager at Glaxo SmithKline Inc, McKesson Canada and Canada Safeway Pharmacies Ltd with experience in operations and marketing spanning biotechnology, pharmaceutical manufacturing and distribution, and retail pharmacy.
World recognized biofilm expert. Experienced researcher and entrepreneur holding over 35 patents in medical and veterinary science and over 170 published papers. Inventor of the MBEC Assay™ and founder of MBEC Biofilm Technologies.
Former CFO at Raylo Chemicals. Former Chairman of the Board at Ricon Resins Inc. Serial investor and board member in over 15 early-stage technology companies.</li></ul>Ken Boutilier, MBA<br />President and CEO<br />Merle Olson, DVM<br />Research Director<br />Jim Timourian, PhD<br />Chief Financial Officer<br />