MicroCapClub Invitational: BioSyent (RX.V)

3,792 views

Published on

BioSyent (RX.V or BIOYF) is a rapidly growing pharmaceutical company that acquires or in-licenses proven drugs and markets them in Canada. Their business model is to build and sell a portfolio of products that have a peak penetration potential that is too small for major pharmaceutical companies. What has fascinated us about BioSyent is their ability to consistently grow revenue and earnings. In fact, their pharmaceutical sales have grown sequentially for the past 12 quarters, which is very rare in the microcap space. In 2012 they announced several new products that they have added to their portfolio plus they have a nice pipeline of additional products that we expect to further fuel their growth. In the most recent quarter they grew revenues 60% and net income 79% year/year. Listen to CEO Rene Goehrum as he tells the story.

  • Be the first to comment

  • Be the first to like this

MicroCapClub Invitational: BioSyent (RX.V)

  1. 1. 1
  2. 2. DisclaimerThis presentation is for informational purposes only and should not be consideredas an offer to buy or sell securities. No stock exchange has either approved ordisapproved of the information that is contained in this presentation. Thispresentation may contain forward-looking statements within the meaning ofCanadian Securities legislation and the forward-looking statements containedherein are made as at the date of this presentation and, accordingly, are subject tochange after such date. Undue reliance should not be placed on such statements.These statements involve a number of risks and uncertainties including statementsregarding the outlook for BioSyent Inc., business and operational results.By nature, these risks and uncertainties could cause actual results to differmaterially from what has been indicated. Factors that could cause actual results todiffer materially from any forward-looking statement include, but are not limited to,failure to obtain governmental regulatory approvals, product recalls, competitionfrom similar products and other factors including those risks and uncertaintiesidentified above.BioSyent Inc. undertakes no obligation to update publicly or otherwise revise anyforward-looking information as a result of new information, future results or othersuch factors which affect this information, except as required by law.2
  3. 3. BioSyent is a profitable, growth oriented Specialty Pharmaceutical company that sources and markets innovative products that improve the lives of patients and support the healthcare professionals that treat them. Today’s presentation by: René C. Goehrum Chairman, President & CEO of BioSyent Inc.3
  4. 4. About BioSyentListed on the Toronto Venture Exchange, under the trading Symbol “RX,” U.S.OTC “BIOYF”, BioSyent searches the globe to identify and acquire exclusiverights to pharmaceutical products that have been successfully developed andproven to be safe and effective. Once a product of interest has been found,BioSyent then acquires the exclusive rights and manages these productsthrough the Canadian regulatory process (approval); and once approved,markets these products throughout Canada.Selected from over 2,200 listed companies, BioSyent was named as one of the2012 TSX Venture Top 50 and was ranked #5 in the TSX Venture’s LifeSciences and Technology group.4
  5. 5. Investment Highlights1. Proven business model with 2 marketed pharmaceutical products; 1 product approved in preparation for 2013 launch; 2 products being prepared for Health Canada filing.2. High growth – during the period January 1, 2010 through September 30, 2012, revenue has grown at an annualized compound growth rate of 69%.3. Demonstrated profitability – 9 month 2012 basic EPS of $0.08; FY2011 basic EPS $0.03; FY2010 basic EPS $0.004.4. No debt and an unutilized operating line of credit (Royal Bank of Canada).5
  6. 6. Investment Highlights5. Strong Balance Sheet to fund continued growth – cash and cash equivalents of $1.94 million as of September 30, 2012, representing YTD growth of 83% (+$0.88 million) over previous year-end.6. Clean capital structure – 13,271,195 shares currently issued and outstanding. No warrants outstanding. 1,205,000 options outstanding. Total diluted shares: 14,476,195.7. Active in-licensing (new product) funnel.8. Experienced management team.6
  7. 7. Strategy1. Expansion of our product base by in-licensing exclusive Canadian rights to proven pharmaceutical products that address unmet medical needs.2. Manage technology risk by focusing on already commercialized products, not yet available in Canada.3. Minimize deal competition by focusing on niche products with a peak penetration potential of $2-15 million – below threshold of mid-size and larger pharma companies.4. BioSyent builds its sales and marketing teams around a product. This approach maximizes profit and minimizes costs, as sales teams are put in place only when needed and expand only when the product’s sales can support the expansion.7
  8. 8. Capabilities1. Commercialization excellence in the 9th largest global pharmaceutical market (IMS).2. Regulatory Approval, QA-QC, Compliance.3. Bilingual (English/French) operations, sales and customer service.4. Canada-wide sales, marketing team.5. Hospital, wholesaler and retail pharmacy distribution network.6. Group hospital purchasing relationships (existing contracts).7. All required drug licenses.8. Medical/Drug information support.9. Formulary and reimbursement management.8
  9. 9. Sales Team1. 10 medical sales representatives with an average of 20 years in Pharma.2. Broad experience base (Specialty, Hospital and GP) in a wide variety of therapeutic classes.3. Proximity to all major cities/population centers.4. All markets including virtual territories supported by e-details, web, direct mail, video conferencing, sampling programs.5. We build teams to fit new product opportunities/needs.9
  10. 10. Recent Corporate Events Time Period Event FY 2010 FY sales +63% , add 3 medical reps July 2011 Health Canada approval of Cathejell ™ primary use in hospitals FY 2011 FY sales +67%, add 3 medical reps February 2012 BioSyent named to the TSX TOP 50 Ranking Moved to new corporate head office July 2012 Health Canada approval of FeraMAX® Powder. 1st new oral iron product for Canadian children in 50 years August 2012 Sign exclusive licensing and distribution agreement for 2 new drugs (patented) September 2012 Sales team reaches 10 medical reps September 2012 YTD September 30 sales reach $3.7 Million (+76%), Net Income grows 196% Q1 2013 Planned FeraMAX® Powder product launch Q1 2013 Planned 2 new products filed at Health Canada10
  11. 11. 11
  12. 12. Our Products | FeraMAX® 150 1. Approved by Health Canada for the treatment of iron deficient anaemia – therapeutic dose. 2. Distributed across Canada, broadly available via ~ 8,000 pharmacies including majors such as Shoppers Drug Mart, Rexall, Jean Coutu, Wal- Mart, Costco, Loblaw. 3. Clinically proven and effective. Well tolerated, with an improved side- effect profile. 4. Brand owned by BioSyent. Exclusive supply deal.12
  13. 13. Our Products | FeraMAX® Powder 1. Approved by Health Canada for prevention of iron deficiency. 2. Extension of the FeraMAX® brand – based upon the same compound as FeraMAX® 150. 3. Developed in response to requests by Paediatricians and GPs that treat children. 4. Gentle on GI tract - reduced side effects. 5. Pleasant taste improves compliance.13
  14. 14. Our Products | CATHEJELL™ Jelly 2% 1. Approved by Health Canada. Proven safe and effective with 40 year track record in 54 countries. 2. Used as a Sterile Topical Anesthetic - primarily in cystoscopies. 3. Unique collapsible accordion syringe with trauma free applicator tip. 4. Single handed application, no syringe assembly required. 5. No restrictions of use in the hospital.14
  15. 15. COMPANY FINANCIAL INFORMATION15
  16. 16. Pharmaceutical Products Sales By Quarter 1,180,717 1,200,000 1,054,026 1,000,000 761,372 800,000 657,442 604,523C$ 600,000 465,163 400,000 322,648 247,941 191,716 155,024 200,000 81,237 - 16 Quarter 16
  17. 17. Revenue Growth 9 Months (YTD Sept) $3,696,201 $4,000,000 $3,500,000 $2,808,666 $3,000,000 $2,500,000CAD$2,000,000 $1,681,210 $1,500,000 $1,101,991 1,029,902 $1,000,000 $500,000 $0 2008 2009 2010 2011 2012 Period17
  18. 18. Total Comprehensive Income 9 Months (YTD Sept) 1,200,000 $1,034,828 1,000,000 800,000 600,000 $417,950CAD 400,000 200,000 $48,386 - (200,000) (287,892) (260,556) (400,000) 2008 2009 2010 2011 2012 Period 18
  19. 19. Cash Flow 9 Months (YTD Sept) 1,000,000 878,751 800,000 586,951 600,000 400,000CAD 200,000 40,307 - (200,000) (295,260) (351,725) (400,000) 2008 2009 2010 2011 2012 Period 19 19
  20. 20. Share Ownership by Management & Directors20
  21. 21. 21
  22. 22. ManagementRené C. Goehrum | President & CEO• 30+ years spanning start-up, early stage, growth and mature businesses;• Prior operating and services experience: Procter & Gamble, Sandoz (now Novartis), Boehringer Ingelheim and others;• Functional experience: Leadership, strategy, business development, operations, corporate finance, sales, marketing.Alfred DSouza | Vice-President & Chief Financial Officer• Colgate Palmolive and Unilever in finance, accounting, mergers, acquisitions. Last position before BioSyent - Finance Director Colgate Palmolive India (USD $225 million). Start-up leadership team, Colgate Vietnam, grew to $25 million.22
  23. 23. ManagementKevin Wilson | Vice President of Sales and Marketing• 20+ years experience in pharmaceutical sales, sales leadership, and marketing at Abbott, Bayer, Pharmacia/Searle (now Pfizer);• Director of Marketing on three different therapeutic classes.Tom Carson | Director of Business Development• 30+ years pharmaceutical experience in sales, product management, marketing, sales information and business development;• Prior experience: DuPont Pharma, Bristol Myers Squibb.23
  24. 24. DirectorsRené C. Goehrum | ChairmanDouglas R. Larson | DirectorDouglas Larson has considerable leadership and governance experience.Before August 1995, he served as President and CEO of James Richardsonand Sons Ltd.- Grain Division, Canada’s largest privately owned grain companywith sales in excess of $100 million and over 1200 employees.Peter Lockhard | Non-Executive DirectorMr. Lockhard has extensive senior management experience with successfulhigh-growth companies in the IT and marketing services industries, includingVP Professional Services of Flo Network, a permission-based e-messagingservice provider (acquired by DoubleClick). Mr. Lockhard currently serves asthe Chief Operating Officer of Points International Ltd. a $125 million revenuecompany listed on Nasdaq and the TSX (Nasdaq:PCOM; TSX:PTS).24
  25. 25. DirectorsMilton E. Wakefield | Non-Executive DirectorMilton Wakefield completed a ten-year term as Commissioner of the CanadianGrain Commission, the last seven as its Chief Commissioner, in 1997. Thisorganization had over 800 employees and an Operating Budget of $55 million. Healso served eight years in the Legislative Assembly of the Province ofSaskatchewan. Mr. Wakefield is currently the Chairman of the Board of LakelandCollege in Alberta, an institution with over 8,000 students and an Operating Budgetof over $65 million.Paul R. Montador | Non-Executive DirectorMr. Montador has over 35 years of experience in healthcare product sales,marketing, leadership, and corporate governance. At present, he is the CEO(founder) of InspiAir Inc. and Chairman of the Board of ThinkFirst/Pensez d’AbordCanada, a national non-profit organization dedicated to the prevention of brain andspinal cord injuries. Mr. Montador’s roles have also included CEO of SciCan Inc.,President of Johnson & Johnson Medical Products (Canada), President and Boardmember of Amsco Inc., General Manager of American Hospital Supply (Canada),and Board member of CryoCath Technologies Inc. (acquired by Medtronic Inc.).25
  26. 26. Stock Information February 5, 2013Exchange & Trading Symbol: TSXV: RX52 Week Hi / Low: $1.40 / $0.41Current Shares: 13,271,195Warrants: 0Options: 1,205,000Fully Diluted: 14,476,195P/E Ratio: 13.80P/B Ratio: 5.89BioSyent has experienced strong stock performance over the last year with noneed to access debt or equity financing.26
  27. 27. Contact InformationInvestors:René GoehrumPresident and CEO(905) 206-0013 ext.320rgoerhum@biosyent.comBusiness Development:Tom CarsonDirector of Business Development(905) 206-0013 ext.309tcarson@biosyent.comAddress:170 Attwell Drive, Suite 520Toronto, Ontario, Canada M9W 5Z527
  28. 28. 28

×