Ezose Final Presentation

Ezose Final Presentation

• 1.
  Ezose Sciences Inc. Final Presentation December 14th, 2011 1 Privileged and Confidential
• 2.
  Company Overview JEFF  Relatively new company  Centrally located in heart of pharmaceutical country  Focus on glycomics and biomarker discovery  Multiple collaborations completed / in progress Ezose laboratory - Pine Brook, New Jersey 2 Privileged and Confidential
• 3.
  Industry Snapshot JEFF 70,000 Pharmaceutical Industry Job Cuts  Ezose: 60,000  Biotech industry 50,000 40,000  Discovery, Research & 30,000 Development market 20,000  Customers: pharma and 10,000 biotech companies 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10  Major trends and drivers: Top 5 Drugs From 2011 and 2012 Coming off of Patent Protection Patent 2010 US Sales Drug Condition Company Expiration ($M)  Expense control 2012 Plavix Anti-platelet BMS / Sanofi $6,154 2011 Lipitor Chloresterol Pfizer $5,329  Generic drugs 2012 Seroquel Antipsychotic AstraZeneca $3,747 2012 Actos Type 2 Diabetes Takeda $3,351  Companion diagnostics 2012 Enbrel Arthritis Amgen $3,304 2012 Singulair Asthma Merck $3,224  Partnerships 2011 Zyprexa Antipsychotic Eli Lily $2,496 2011 Levaquin Antibiotics J&J $1,312  Biomarkers 2011 Concerta ADHD/ADD J&J $929 2011 Protonix Antacid Pfizer $690 3 Privileged and Confidential
• 4.
  Industry Snapshot (cont.) JEFF $B Research & Development Market 180 160 140 17.5% 18.8% 15.4% 16.4% 120 14.6% 14.7% 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 Outsourced R&D In House R&D Growth Rates: R&D Market -1.2% 7.7% 4.3% 3.5% 3.5% 3.5% In-house R&D -2.6% 7.8% 3.2% 2.4% 2.2% 1.9% Outsourced R&D 7.7% 7.2% 10.3% 9.8% 10.6% 11.2% 2009 2014 5 Year Industry Mkt Value Mkt Value CAGR Pharmaceutical $664.6B $860.4B 5.3% Biotech $231.2B $366.7B 9.7% Contract Research $18.1B $28.9B 10.0% Biomarkers $8.4B $21.1B 20.2% 4 Verizon Privileged and Confidential
• 5.
  Biomarkers MATT Predict/prevent disease Predict drug Predict drug response safety Biomarkers Monitor drug Personalized response & safety medicine Rx-Dx combinations & theranostics 5 Verizon Privileged and Confidential
• 6.
  Glycomics MATT What is it?  Study of sugars of a cell type or organism  Involves complex, highly branched structures Glycans Benefits  Underdeveloped and $B Global Biomarker Forecast underexplored field 18 16  Play critical role in bacterial and 14 viral recognition 12 10  Determine cancer development 8 6  Involved in cellular signaling 4 2 pathways and modulate cell 0 function Genomics 2010 Imaging Proteomics 2015 Bioinformatics Other 6 Verizon Privileged and Confidential
• 7.
  GlycanMap Technolgoy MATT 7 Verizon Privileged and Confidential
• 8.
  Cost Tech Location Revenue Resources Reputation(aka Industry Standard) Speed/Throughput STRONG Ezo s e Competitors Om ic R Pro &D (pr C ote teom omp om e Sc any ic s : ), T i ence (ge ran s Gl y no sge com mic no s) mi c Vir ic R& dan D C te, o Mo mpan Gl y m y cot enta : ec h , I n- Ho u Ro se B che i g P Di a har gno ma Verizon Privileged and Confidential stic R&D s, M : Un erc ive rsi t k yR MATT J oh &D ns Ho : Duk Wa pki eU shi n . ngt s U., , on WEAK U. Go ve r nm ent R FD &D (A A, NIH ir Fo Re ): rce , sea (Un rc h i ve Ho r Cle sity H spita ve os ls Un l and, pi tal ive s rsi t Natio of yH nal os p ita l): 8
• 9.
  Ezose - Strengthsand Weaknesses ERIC Strengths Weaknesses  Technology: GlycanMap allows for  Size: limited number of projects high-throughput glycan analysis they can take on due to having only one location, low headcount, and a  Small size: flexible; customizable small amount of machines services  Reputation: Company is only a  Location: centrally located in New couple of years old, is still trying to Jersey, the top pharmaceutical build up its reputation state in the U.S.  Inefficiencies: New company, still  Staffing: talented and experienced needs to work out their staff inefficiencies 9 Verizon Privileged and Confidential
• 10.
  Opportunities ERIC Plans to Outsource Biomarker Discovery: Within the Year Within a Few Years Not at All Source: Primary Research $B Biomarker Market 35 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 10 Verizon Privileged and Confidential
• 11.
  Business Strategy ERIC Strategic Statement Ezose strives to increase contracts by 50% in 2012, while becoming a self- sufficient company that is recognized as the premiere name in glycomics by 2014. This will be accomplished by leveraging Ezose’s revolutionary proprietary glycan technology to discover and develop new biomarkers quicker and at a lower cost than their competitors, while retaining intellectual property rights for themselves and their parent company Shionogi. Objective: To increase market awareness of its unique services while focusing on internal growth and increasing the number of research contracts 11 Privileged and Confidential
• 12.
  Critical Success Factors ERIC  Promote Ezose throughout the biotech and pharmaceutical industry Industry Recognition Do you have a firm understanding of Biomarker Discovery? Do you have a firm understanding of Glycomics? Have you heard of Ezose? If Yes, do you have a firm understanding of what they do? Yes No Industry recognition estimated based off of primary research as well as collection of secondary research  Obtain key partnerships with mid/large sized pharmaceutical or biotech companies  Expand into a second lab as more partnerships are obtained 12 Privileged and Confidential
• 13.
  Recommendations JEFF  Marketing Plan 1. Build upon current actions • Trade Shows, Public Relations Firm, Publications 2. Hire a customer relations management (CRM) team 3. Target specific companies 4. Aggressive pricing Reasons for Outsourcing R&D Cost-effective Lack of In-house capacity Vendor expertise Time savings Regulatory certification Lack of in-house knowledge Quality of results From Science Advisory Board 13 Verizon Privileged and Confidential
• 14.
  Recommendations(cont.) – TargetCompanies JEFF 14% Biomarker Deal Activity by Therapeutic Focus 12% 10% 8% % of Deals 6% 4% 2% 0% Industry Perception of High- throughput Glycan Analysis Autoimmune / Inflammation Cardiovascular Dermatology Endocrine / Metabolic Systems Gastrointestinal Infectious Disease Neuroscience Oncology Renal Other More Beneficial Less Beneficial Target companies with focus on Oncology, Autoimmune / Inflammation & Neuroscience 14 Verizon Privileged and Confidential
• 15.
  Recommendations (cont.) ERIC  Operations 1. Talent retention and acquisition 2. Expansion 3. Legal counsel 4. Strategic Alliance??? 15 Verizon Privileged and Confidential
• 16.
  Summary MATT  The Pharma/Biotech Industry is trending in the right direction:  Outsourcing of R&D, Biomarkers, Companion Diagnostics, Partnerships  GlycanMap technology is revolutionary  Must act with a sense of urgency  The plan:  Increased market awareness  Increased revenue through new contracts  Increased growth 16 Privileged and Confidential