saponin at abic 2008 cork, ireland
DESCRIPTION
Saponin Inc. asked me to give this public presentation at the Agricultural Biotechnology International Conference 2008 in Cork, Ireland.TRANSCRIPT
1
Dr. Michael M. Oelck, PAg, Co-founder and CEO
SAPONIN Inc.
- The Prairie Carnation™ Company -
Pink(s) to the Prairies!
2 ABIC 2008, Cork Ireland,
Pink(s) to the Prairies!
3
Two Parts
Part I - The SAPONIN business case.
Part II - Why did the investors invest?
4
Part I
• Company Intro
5
Mission
SAPONIN is the leading supplier of industrial bio-
products from Prairie Carnation™ (Saponaria
vaccaria) . We produce and sell
• the finest native starch from any plant for cosmetics,
• saponins for vaccine adjuvants and
• cyclopeptides for medical applications!
6
The Crop
• Prairie CarnationTM
• Saponaria vaccaria L.
• syn. Vaccaria pyramidata
7
Brand New Crop! - A Patent Attorney‘s Dream -
8
Agronomy that Works!
9
The Seed
Starch
Protein
Lipids
Saponins
Cyclopeptides
Phenolics
Soluble fibre
60
13
5
3
0.3
05
5
84 %
Useable Content in %
Genetics
• 18 chromosomes
• Self compatible fertilisation > 80%
• Microsospore derived embyro regeneration
• Double haploid breeding lines
• Hybrids for variety protection
• Si system required or molecular male sterility
• Transformation system in progress
• Molecular pharming potential
7/5/2011 10
11
The Products
12
The
Biorefinery
Concept
CHO
O
OH
O
O
ORO
HO
HOOC
OHOH
HO
HO
OH3C
R3O O
O
R1O
HO OR2
O
O
CH3 OH
OH
O
O OH
HO
OH
O
O
GAL
FUC
ARA
RHA
1628
4
12
23
H3C
NH
NH HN
O
NHO
N
O
HN
NH
O
O
O
SEGETALIN AMW 609.3274
cyclo (gly-val-pro-val-trp-ala)
Soluble fibre
Protein
Starch
Seed Extract
Oil
Cyclic peptides
Saponins
Phenolics
13
Micro-Starch cash flow early
• Novel!
• Granule size of 1 micron - smallest starch known in nature
• Remarkable texture and performance properties
• Proprietary production method
• Premium pricing
• Cosmetic and specialty foods ingredient
• New industrial applications
Wheat starch 20-100um Prairie Carnation starch 1um
25 μm
1 μm
14
Saponins Membrane active because of detergent structure
• Mode of action of saponins as cholesterol analogue
• Free cholesterol in the blood stream binds saponins
• Membrane effects against fungi and bacteria
• Cholesterol in cell membrane binds cholesterol
• Cell membranes permeable for seconds
• Removal with cholesterol by the liver
• Catalytic effect to help big molecules into cells
CHO
O
OH
O
O
ORO
HO
HOOC
OHOH
HO
HO
OH3C
R3O O
O
R1O
HO OR2
O
O
CH3 OH
OH
O
O OH
HO
OH
O
O
GAL
FUC
ARA
RHA
1628
4
12
23
H3C
15
Saponin Market: Vaccine Adjuvants
• Cholesterol binding
• Immune stimulant
• Less hemolytic than any other saponins
• Antigen developed QS-21Saponin
• GSK has QS-21 for first Malaria vaccine to come
16
Saponin Market: Cancer
17
Cyclopeptides Part of Natural Defense System of Plants
Effects:
• Antimicrobial effect against protozoa, bacteria
Markets:
• Veterinary feed supplement
• Natural Fungicides for Organic Production
• Cardiovascular Therapy
NH
NH HN
O
NHO
N
O
HN
NH
O
O
O
SEGETALIN AMW 609.3274
cyclo (gly-val-pro-val-trp-ala)
18
Ingredient Market Marketing
Starch Cosmetics license for customer products, supply
raw product, customer does
regulatory
Saponins Cosmetics Adstringend , anti-wrinkle, sell to
formulators and cosmetics
Saponins Adjuvant
Develop proof of concept, then
license
To vet first, pharma second
Saponins Pharmaceutical Develop proof of concept, then
license (e.g. mouse models in cancer)
Segetalins
(cyclic peptides)
Pharmaceutical Develop proof of concept,
then license (e.g. mouse models )
19
Conclusion of Intro (Part I)
• SAPONIN is a new bio-pharmaceutical company
• Agriculture and seed production accomplished!
• Regulatory expertise needed at the beginning.
• Creative fractionation easy for more than one product.
• Natural Actives in large scale production!
• Markets are cosmetics, agriculture , vet. and pharma
20
Part II
Why did the Investors Invest?
Less Risk, more Rewards!
21 ABIC 2008, Cork, Ireland
Investors Need a Convincing Team
- enriched by their own "experts", just in case…
SAPONIN was founded in 2003. Clarity Capital Corporation invested $2.2 Million
into SAPONIN Inc. in 2006 and $1 Million in 2008. The company is looking for
another investment of $5Million at present.
22
Own the Value Chain! Germplasm
Contract production
Processing
Product Quality Control
23
Intellectual Property
Position METHOD FOR PRODUCTION OF SAPONARIA FROM MICROSPORES , PCT/CA2006/000725
EXCLUSIVE LICENCE OF SCOTT LANDLINE FROM AAFC,
Closed loop production system with contract farmers
PROCESSING OF SAPONARIA VACCARIA SEED,
United States Patent 3622389
EXCLUSIVE PRODUCT ACCESS AS USP
24
Features Benefits
Extremely small, uniform, smooth For improved skin feel
Large inner surface area High carrying load for ingredients
White free flowing powder Easy formulation
Amylose content ~13% Physical-chemical properties for
potentially superior gels
Large scale seed production Domestic production and security of
supply for cosmetic needs
Exclusive partnerships Marketing by product segment
and by geography
Unique Novelty Product Branding exclusivity,
A must for the cosmetic industry
Early to Market Cash Flow: Starch
Low regulatory hurdles for cosmetic applications
25
Wild type seed
Identity preserved double haploid seed
Contract produced farmer seed
Seed extract,:60% saponin, phenolics, cyclic peptides
Seed flower – finest starch, proteins, fibre, oil
Vaccine adjuvants vet + human
Therapeutic saponins
Cardiovascular
Cell Proliferation
$10/kg
$100/kg
$1kg
$250kg
$20kg
$10kg
$1000kg
Licence Downpayment$10Mill
Royalties $10Mill
Joint Venture $50Mill
Royalties $100Mill Example with theoretical values
Prairie Carnation Value Chain
26
Wild type seed
Double haploid seed
Identity preserved certified seed
Contract produced farmer seed
Seed extract
Seed flower
Seed Protein
Seed Oil
Saponin adjuvant
Seed Peptides Library
Saponin adjuvants
Therapeutic saponins
Blood Pressure
Cell Proliferation
Drugs
$10/kg
$25/kg
$50/kg
$1/kg
Example with theoretical values
$100/kg
$20/kg
$2/kg
$10/kg
$30/kg
$10/kg
$200/kg
Outlicence $1Mill
Downpayment$1Mill
Royalties $10Mill
Joint Venture $50Mill
Royalties $100Mill
Potential Value per 100 ha:
500 to
50 to
400 to
50 to
15 to
30 kg
30 kg
30 kg
Where is the home run? Focus!
particle starch, conformations
saponins, antioxidants, soluble fibre
protein for food, feed,
seed oil for food
vet. adjuvants
vaccines
27
Added Value: Cyclopeptide Pharma Doesn’t this sound like a home run?
• Known multiple pharmacological properties
• Not easy to produce – creates barrier
• Identified application for cardiovascular disease
• Compound library for numerous new drug candidates
• Proprietary production methods in-place
• Patent in preparation
28
Productive Agriculture
Taken for Granted
29
Broad Markets are a Backup
toothpaste Mouth rinse
shampoo
root beer
beer degreasing and
cleaning products
photographic
emulsions
ore separation
fire
extinguishers
Commercial saponin uses
30
The Upscale Potential!
Prairie Carnation ( sales value per bushel)
Saponin – crude $ 250 or
Saponin – animal adjuvant (100µL/dose) $7,500 or
Saponin – human adjuvant (100µL/dose) $3.75 MM or
Saponin – cancer drug (100 mg/dose) $4.5 MM and
Cyclopeptides – cardiovascular drug (100 mg) $75,000
31
Question:
Why would anybody grow a brand new crop?
Answer:
Control of the crop from the seed all the way to end user products!
• Create a strong intellectual property position,
• Multi faceted (six) uses of all seed contents,
• Multiple pharmaceutical compounds with proof of concept product in
pre-clinics
• Identity preserved germplasm control
Fazit:
Proprietary Technology Platform offering FTO, Genetics, Extraction
for six significant commercial uses ,
The Business Concept
the six pillar company!
32
1. Starch for cosmetic application
2. Saponins for vaccine adjuvants, dermatology,
3. Biological fungicide, nematicide, SAR
4. Cyclic peptides for blood pressure application etc.
5. Antioxidant for food supplement
6. Edible Protein for food and feed
The Six Pillars
33 ABIC 2008, Cork, Ireland
Investor Speak
34
Concept for Success
35
Contact Info
Michael M. Oelck,
Manotick (Ottawa) Ontario
Canada K4M 1A6
(613) 692-2382
IM Skype: Moelck
Michael M. Oelck, Ph.D., PAg. (Seed Business, Genetics, Regulatory)
Elke Steinmann-Oelck, Ph.D. (Agronomy, Plant Pathology)
36
Prairie Carnation