2. Disclaimer
The material contained herein is for information purposes only and is not and is
under no circumstances intended to constitute an offer to sell or a solicitation to
buy any securities or a recommendation as to the purchase of any securities. The
information contained herein has been obtained from publicly available sources
and is believed to be accurate. Although reasonable efforts have been made to
compile this data with care, neither Microbix, its employees, officers or directors
guarantees the accuracy or completeness thereof, nor shall any of them be liable
to the user or to any other person, firm or corporation whatsoever for any
inaccuracies, errors or omissions contained herein nor for any damages arising
there from or occasioned thereby.
2
3. ANNUAL GENERAL MEETING 2012
Priorities
in 2012
Creating shareholder value
Positive cash contribution
Financial pro forma from pipeline
3
4. EXIT 2012 CASH FLOW POSITIVE
How?
Close Kinlytic® agreement
Fund LumiSortTM development
Relocate VIRUSMAXTM joint venture
Grow virology profits
4
5. KINLYTIC®
CURRENT STATUS
Well established safety and efficacy recognized by Key
Opinion Leaders
Approved drug, pipeline of indications
Risk reduced: safety(+), efficacy(+), market demand(+),
time(+), regulatory, investment
Technical barrier to entry – no competition for years
Zydus financing to commercialize the product
5
6. KINLYTIC®
NEXT STEP: CLOSE DEFINITIVE AGREEMENT
Complete Due Diligence in coming weeks
Regulatory, Manufacturing, Commercial Risks
Finalize terms of Definitive Agreement
Contract Manufacturing, Royalty Income
6
7. KINLYTIC®
POTENTIAL IMPACT
Kinlytic Projections Year 3 Year 5
Revenue $100M $400M
Microbix EBITDA $12M $50M
PE Multiple 8x
Market Cap $100M $500M
Microbix receives:
Recovery operational and infrastructure costs
Royalty income
Guaranteed margin
Initial payment plus milestones payments
7
8. VIRUSMAXTM
RELOCATE VACCINE JV TO NEW JURISDICTION
WHO target country, good investment climate
Commitment to make Guaranteed Purchase
Provide serviced site and possible equity investment
8
9. VIRUSMAXTM
CRUCIBLE LEADERSHIP TEAM
Dr. Jacques Martin, Chairman
Chris Baron, CEO
Dave McDowell, Project Leader
Senior Manager, Site Director
Dr. Jean Claude Vincent Falquet,
Advisory Board Chairman
9
10. VIRUSMAXTM
STATE OF THE ART FACILITY
Feasibility study completed by SNC
Lavalin in 2009
SNC Lavalin is one of the largest global
engineering firms
Global experience designing and
constructing influenza vaccine
manufacturing plants for companies such
as GSK, ID Biomedical, and Crucell
International quality standard
Facility scalable to 100 million doses
10
11. VIRUSMAXTM
REGULATORY PATHWAY
Crucible
will deliver a turnkey supply/regulatory
framework that can be efficiently installed in-country
Process and equipment documentation and validation
Clinical safety and efficacy studies
• Class 15 for generic product
Plant inspection and approval
Product registration with regulatory authority
Pathway to approved license well established and low
risk
11
12. VIRUSMAXTM
CONSISTENT STRUCTURE
Crucible contributes:
VIRUSMAXTM license at conservative 5% royalty
Negotiated equity investment share
Management expertise and resources for construction & start-up
Industry know-how, quality systems expertise, relationships
Government Partner contributes:
Land with full services:
• Site - 5 hectares (15 hectares for 100 million dose facility)
• Services - 20 million dose facility (100 million dose facility in brackets):
• Electricity 2,000 KVA (6,000 KVA)
• Gas 5,000 cf/hour (8,100 cf/hr)
• Water 5,000 gal/day (11,000 gal/day)
• Headcount 160 skilled people (330 people)
Negotiated equity investment share
Guaranteed Purchase Agreement – minimum 75% of production.
12
14. LIVESTOCK SEMEN SEXING
Global population growth will require 100% more animal
protein by 2050
70% of this must come from technology
14
15. INNOVATION AND PERFORMANCE
Next generation semen sexing technology
Novel combination of proven technologies
• New intellectual property
Higher fertility rates - more pregnancies
Higher productivity - faster
Higher yield – recovery of sperm cells
Producers achieve higher profits
15
16. NEXT STEPS
Finalize and close partnership agreements
Industry stakeholders and private equity
Complete development
Components
Prototype
Production unit
Field
Trials
Launch 18 - 24 months from financing
16
17. FOCUSED CHANNEL STRATEGY
~40 semen distributors Small sales force
service global market
required
No upfront license fee or
Financial incentive to
capital expenditures
adopt LumiSort™
Farm gate economics
significantly improved
17
18. THE OPPORTUNITY
In emerging markets, (BRIC) cows produce ~2,500 L/C/Y
In western countries, cows produce >10,000 L/C/Y
Genetic improvement through sexed semen will close this gap
Improved efficiency reduces ecological footprint of food production 18
19. UNDERLYING VALUE
$1.5 Billion Artificial Insemination(AI) industry
Premium for sexed semen drives market to $3B
No regulatory process for entry to market
Underserved market, superior enabling technology
First LumiSort patent granted; second patent pending
Commercial industry partnerships established
Advisory board has substantial industry experience
covering each element of value chain
19
20. VIROLOGY
VIROLOGY: GROW PROFITS
Offset impact of a strong Canadian dollar
Secure new products and customers
Improve manufacturing efficiencies
20
22. Financial Pro Forma*
Business Investment MBX Gross
Segment Capital Owns Sales (2016)
Kinlytic $ 40 M 100% $ 30 M
VIRUSMAX $ 50 M 25% $100 M**
LumiSort $ 15 M 100%* ** $100 M**
Virology 100% $ 10 M
Total $105 M $240 M
* Estimates provided for illustrative purposes only (see slide 2 “Disclaimer”)
** Gross Sales in 2016 on 100% Basis.
*** Microbix ownership interest in LumiSort to be negotiated.
22
23. IN SUMMARY
Profitable growing virology business
Urokinase financed FY2012
Vaccine Venture relocated
LumiSort financed FY2012
Microbix profitable in FY2013
Cash flow positive
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