investor presentation | october 2013 the future of drug discovery has arrived reducing development...
TRANSCRIPT
Investor Presentation | October 2013
The future of drug discovery has arrivedReducing development time, cost & risk
2TSXV: COT
When used anywhere in this presentation, whether oral or written, the words expects, believes, anticipates, estimates and similar expressions are intended to identify forward-looking statements. Forward-looking statements may include statements addressing future financial and operating results of Critical Outcome Technologies Inc. (COTI).
COTI bases these forward-looking statements on its current expectations about future events. Such statements are subject to risks and uncertainties including, but not limited to, the successful implementation of COTI’s strategic plans, the acceptance of new products, the obsolescence of existing products, the resolution of potential patent issues, competition, changes in economic conditions, and other risks described in COTI’s public documents such as press releases and filings with the Toronto Stock Exchange and the Ontario Securities Commission.
All forward-looking statements are qualified in their entirety by the cautionary statements included in this document and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this presentation. These forward-looking statements speak only as of the date of this presentation.
Disclaimer
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Who we are…
An innovative, drug discovery, preclinical development and intellectual property company
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Critical Outcome Technologies Inc.
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Investment highlights
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Proprietary platform technology reduces time, cost & risk of bringing new drugs to market
Two-pronged commercial validation and revenue strategy
Actively pursuing licensing of lead cancer drug candidate (COTI-2) with Pharma – leading to profitability
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Conventional drug development is a long & expensive process characterized by a high risk of failure
11 – 15 years
$1 billion or more
1 FDA approval 5
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Years
Prec
linic
al D
evel
opm
ent S
teps
• Reduce drug discovery timeline by 1.5 - 3 years
• Save significant $$$
• Increase revenue period under patent protection
We rapidly accelerate drug discovery
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Proprietary scalable AI platform
Computational simulation of traditional ‘wet lab’ drug discovery process (FDA,HC)
Failed attempts occur in computer simulations, not the ‘research bench’
Improving the probability of clinical & commercial success
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CHEMSAS® - Our competitive advantage
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Two-pronged commercialization strategy
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R&D collaborations for revenue & 3rd party validation of the CHEMSAS® platform
Licensing our own drug compounds
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The opportunity
Major Pharma reducing internal R&Do Low R&D productivityo Focusing on marketing & distribution – control
the end customer
Significant opportunities for R&D collaborationso Leverage complementary expertise / capabilities
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Typical CHEMSAS® R&D collaboration
Partner has specific novel drug target
Receive an upfront development fee from Partner and build a compound library
Library testing and evaluation at Partner’s expense
We retain IP ownership of compounds and all data
Partner proceeds with development under a license with upfront, milestone, and royalty payments
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A collaboration can bring in multiple milestone payments providing significant ongoing revenues
Scalability of CHEMSAS® enables multiple concurrent collaboration revenue opportunities
Three active collaborations proceeding wello Western Universityo Delmar Chemicalso Major Pharma Company
Seeking more CHEMSAS® collaborations
CHEMSAS® R&D collaborations
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Licensing our own compounds
Actively pursuing licensing of lead cancer drug candidate, COTI-2, with a Pharma Company in a transaction making us immediately profitable
Other internal drug development projects in queue (i.e. AML)
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Effective against cancers with mutations of the p53 gene
> 50% of all human cancers have a p53 mutation
About COTI-2
p53 dependent mechanism of action confirmed by Dr. Gordon Mills at the University of Texas, MD Anderson Cancer Center
In final two-species toxicity studies prior to FDA filing in early 2014 enabling human trials
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4 U.S. patents granted – strengthening COTI-2’s value proposition
Composition of matter granted out to 2030
Patents pending in USA, Europe, Canada and Japan
Patent strategy preserves downstream patent filing opportunities for potential extension of market exclusivity
We own all intellectual property with no license obligations
COTI-2: Intellectual property overview
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Why license COTI-2?
Drug development is a long and expensive process
Our core competence is accelerating drug discovery, not drug development
Recent preclinical oncology licensing deals included:
o Upfront payments of approx. $5-$15 milliono Milestone payments between $120-$288 milliono Royalties on net sales
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Investor relations
Engaged Heisler Communications to implement comprehensive Canadian IR strategy
o Strengthen relationships with current shareholders plus outreach to new investor audiences
Engaged Consulting For Strategic Growth 1/LaunchPad to implement comprehensive US IR strategy
o Stanley Wunderlich,
o Bob Giordano,
A very experienced team in the Life Sciences sector
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Summary
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Proprietary technology reduces time, cost & risk of bringing new drugs to market
Two-pronged commercial validation and revenue strategy
Actively pursuing licensing of lead cancer drug candidate (COTI-2) with pharma – leading to profitability
www.criticaloutcome.com
The future of drug discovery has arrivedReducing development time, cost & risk
19TSXV: COT
Trading
Stock Exchange TSX Venture
Symbol COT
52 Week Rolling low/high (1) $0.10 – 0.38
Capital
Cash (2) $ 1.3M
Basic Shares Outstanding 92,682,499
Options Outstanding 5,273,569
Warrants Outstanding 44,869,466
Fully Diluted Shares Outstanding 142,825,534
Contingent Rights Outstanding (3) 715,720
Board & management control (4) 22.4%
Contact Info
Address Suite 213, 700 Collip CircleLondon, Ontario N6G 4X8
Phone 519-858-5157
Fax 519-858-5179
Website www.criticaloutcome.com
Chairman Mr. John Drake [email protected]
President, CEO & CSO
Dr. Wayne Danter [email protected]
Chief Financial Officer
Gene Kelly [email protected]
(1) As at Sept 30/13(2) Cash = cash and cash equivalents at Aug 31/13(3) Contingent rights not included in fully diluted under IFRS(4) On a fully diluted basis
Key company facts
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CHEMSAS Validation - R&D Pipeline
Therapy: Compound / Library
Target Identification
& Research DiscoveryLead
Selection Phase 1
Oncology
COTI-2 - AKT inhibitor
COTI-219
COTI-4
COTI-58
Acute myelogenous leukemia
Colon
6 additional compounds
Multiple sclerosis
Alzheimer's - secretase inhibitors
HIV - integrase inhibitors
(Currently in co-development)
Synthesis Preclinical
Development Stage