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We address this issue by working with brand owners to engage the consumer in the fight against counterfeits ISSM October 3, 2011Alison Martin Each year there are over 700,000 deaths worldwide due to fake TB and Malaria medications alone. Slide 2 2 About Sproxil Incorporated 2009, privately held Experiencing rapid growth Expanding global presence in high growth markets No pharma shareholders HQ in Cambridge, MA (Greater Boston Area) Subsidiaries in Nigeria, Ghana, Kenya & India Multiple patents filed and granted Local presence with multi lingual, diverse staff. Slide 3 3 Specific Market Challenges Distribution chain participants may not be trustworthy Unreliable basic infrastructure Severely limited financial and human resources Law enforcement does not have sufficient reach or resources Counterfeiters are constantly innovating Slide 4 Sproxils Mobile Product Authentication Actions at point of purchase 1 Reveal Code 2 Send by Text or Web 3 Instant response Pseudo random, one-time use codes OR Trust is assured No need to trust supply chain members No special equipment or training needed Free for consumer Slide 5 Sproxil has World-class Clients A sample of our clients: GlaxoSmithKline uses Sproxil MPA technology to protect Ampiclox Johnson & Johnsons Janssen- Cilag (Nizoral) Merck Seronos Glucophage Sproxil works with manufacturers and distributors alike 5 Slide 6 The Mobile Authentication Service (MAS) in Nigeria Slide 7 Consumer: Scratch and Text Codes to the Cloud Multiple Options for Various Supply Chain Levels 1.Covert PIN code 2.Overt 2D barcode Could contain covert taggants in ink 3.Overt serial number Could be encoded, pseudo-random 7 Slide 8 Rapid text message response with OK or FAKE Trust is assured between consumer and pharmacist No special equipment or training needed. Works with basic phones SMS + Voice Call center number for additional assistance Slide 9 Sproxil Combines Secure Interlocking Technologies Making counterfeiting unprofitable Tamper evidence Mass serialization SMS Shortcode No device investment Free-to-patient SMS Self-destructing codes Slide 10 Slide: 10CONFIDENTIAL AND PROPRIETARY 2010, Sproxil, Inc. Competing Anti-Counterfeit Technologies ChemicalsRFIDBarcodesHolograms BASF, DuPontMcKessonYottaMark, Covectra Hologram Industries, Novavision $$$$$$$$, but Expensive No consumer capability No support infrastructure for consumers Requires consumer equipment Compromised Easy to copy Consumer capable Lower cost No special equipment needed Solution is robust and well-tested Slide 11 Cascading Authentication: For Regions with High Counterfeiting Incidents Uses 2D barcode Uses 2D barcode OR Multi-use overt code Uses single-use covert scratch or peel-off code Patient Pharmacist Distributor Wholesaler 11 Slide 12 WholesalerPharmacistConsumerDistributor Genuine Mobile: 2D Barcode Mobile or Web: Overt Code Voice: Call Center Available Genuine 2D Barcode Overt Code Call Center Genuine Overt Code Call Center Genuine Covert Code Call Center Cascading Authentication: Entire Supply Chain Can Be Secured Slide 13 Cascading Authentication: Entire Supply Chain Can Be Secured Over Multiple Continents ! Diversion 13 Slide 14 winwinwin ConsumersGovernmentPharma lose Counterfeiters Except. 14 Sproxils Innovative Business Model: Everyone Benefits Slide 15 ConsumersGovernmentPharma Cost is low or even free Avoid negative health outcomes Save money 15 winwinwin Sproxils Innovative Business Model: Everyone Benefits Slide 16 ConsumersGovernmentPharma Safeguard the health of the nation Reduce health insurance costs & reimbursement fraud No cost to government 16 winwinwin Sproxils Innovative Business Model: Everyone Benefits Slide 17 ConsumersGovernmentPharma Protect patients & boost compliance Gain market intelligence Avoid brand damage Increase sales, regain market share 17 winwinwin Sproxils Innovative Business Model: Everyone Benefits Slide 18 /Customer Support Desk Insights 18 LearningsImpact Location of potentially counterfeit or substandard medicines Enables brand owners to act quickly to protect their consumers What medical questions are patients asking? Enables brand owners to retrain or reinforce the benefits of certain medications Where are customers purchasing products? Understand market penetration and adjust marketing campaigns Slide 19 Counterfeiters Counterpunch Sproxil has detected adversary reactions to deployed solution 2010: Dilution selling genuine and fake blisters in one box. Consumer reports issue & incident resolved 2011: Deceiving Consumers attempts at convincing consumers brand owner no longer using Sproxil solution. Consumer reports issue & incident resolved 201X: Fake labels? Fake Shortcode? We are prepared and will keep resolving issues working closely with regulatory agencies, genuine manufacturers and consumers Slide 20 Strength in Partnerships: Demonstrated Collaboration for Success Government Regulators Industry Trade Groups & Pharma Co. Patient Groups Professional Associations (Doctors, Nurses) NGOs Relief Workers 20 Slide 21 Sproxils Progress to Date >200,000 unique mobile numbers (patients) served Thousands of SMS received per day 9 SKUs in Market; many more in pipeline Operations in Nigeria, Ghana, Kenya, Tanzania, and India. Slide 22 Recognition of Sproxils Impact President Clinton congratulates Sproxil CEO Dr. Gogo This is a genuinely remarkable achievement... (it's) empowering... putting people in charge of their own healthcare. President Bill Clinton Photo by CGI Slide 23 Protecting Brands Globally America | Asia | Africa Sproxil.com Sproxil, Inc 1035 Cambridge Street Cambridge, MA 02141 USA team@sproxil.com +1 209 877 7694