The Leader in Ocular Drug Delivery
Stories in Entrepreneurial Finance
Presented by Stephen From, President and CEO
EyeGate Pharma for
FMA Chapter of Stonehill College
November 29, 2011
The Leader in Ocular Drug Delivery
Agenda
§ An Entrepreneur at heart
§ The EyeGate story in brief
§ Funding an Opportunity
§ Wrap-up
The Leader in Ocular Drug Delivery
My Background
3
Stephen From President & Chief Executive Officer
§ Over 15 years’ experience in finance with a focus on life sciences § Previously, CFO Centelion, a biotechnology subsidiary of Sanofi-aventis § Former investment banker specializing in the biotechnology and medical device sectors,
most recently at Banc of America securities
§ Had several small business endeavors prior to finding path that lead me to this spot
§ Received BSc from University of Western Ontario (London, Canada)
§ Received Diploma in Accounting from Wilfrid Laurier University (Waterloo, Canada)
§ Chartered Accountant – did my time with Price Waterhouse (Toronto, Canada)
§ Investment Banker • started in Toronto, Canada (BZW - M&A boutique focused in Telecom sector) • Moved to London, UK (Citibank, ING Barings: from telecom to healthcare) • ING sent me to NY • Back to London with Robertson Stephens, Bank of America)
• CFO: Centelion in Paris, France (biotech company being spun out by Aventis)
• CEO: EyeGate in Paris then to Boston
The Leader in Ocular Drug Delivery
Agenda
§ An Entrepreneur at heart
§ The EyeGate story in brief
§ Funding an Opportunity
§ Wrap-up
The Leader in Ocular Drug Delivery
Company Mission
5
Eliminate Two Major Issues Currently Faced by Eye Care Practitioners
ISSUE #1
§ PATIENT NON-COMPLIANCE
ISSUE #2
§ LOW PATIENT THROUGHPUT
The Leader in Ocular Drug Delivery
EyeGate® II Delivery System
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EyeGate® II Delivery System
§ Non-invasive, iontophoretic therapeutic delivery that dramatically increases onset of action
§ Capable of delivering a wide variety of drug types ranging from small molecules to proteins
§ In-office procedure that takes under four minutes
§ All eye care practitioners can perform the procedure
§ CE Marked and 510(k) route acceptable to FDA
Eliminates the Issues of Patient Compliance and Patient Throughput while Decreasing Safety Risks
The Leader in Ocular Drug Delivery
Corporate Overview
7
Lead product candidate EGP-437: § A platform specific formulation of
dexamethasone phosphate § Potent anti-inflammatory agent § Commercial launch expected in late 2013
for anterior uveitis § Expand label to dry-eye, scleritis and other
inflammatory indications
Research programs include: § Reformulated antibiotic for Bacterial
Conjunctivitis § Customized protein for Age-related Macular
Degeneration § Control-released nanoparticles for
Glaucoma
EyeGate® II Delivery System: § A small, elegant, and easy-to-use device that
delivers drugs non-invasively and quickly § Capable of delivering a wide variety of
therapeutics § Studied in over 400 people and over 1,200
treatments
§ Specialty pharmaceutical company (Ophthalmology) founded in 1998
§ VC funded, private Delaware corporation located in Waltham, MA
§ Sufficient cash in-hand to fund Phase III trial in anterior uveitis
§ 8 full-time employees
The Leader in Ocular Drug Delivery
Investment Highlights
8
EyeGate’s Approach
Enhances Both the Patient’s and
Doctor’s Treatment Experience
Lead Product Candidate,
EGP-437 is a Late Stage Asset with
Multiple Indications –
Anterior Uveitis, Dry Eye, and
Scleritis
Significant Market, Global
Uveitis Therapeutics
Market is Expected to Grow at 26%
Annually to $1.6B by 20171 EyeGate® II
Delivery System is a Proprietary, Non-invasive and
Versatile Drug Delivery System
Compelling and Cost Efficient Business Model with a Defined
Path to Reimbursement
Strong IP Portfolio with
Protection Lasting through to 2029 without
Extension
Source: 1. Uveitis Therapeutics – Pipeline Assessment and Market Forecasts to 2017, Global Data, April 1, 2011
The Leader in Ocular Drug Delivery
Initial Business Strategy and EGP-437
9
Fast Initially Reformulating
Generics to Validate Technology and Business
Case
§ Low Risk: Understood safety and efficacy profile
§ FDA 505(b)(2) route
§ Multiple approved compounds to choose from
§ Reformulated product becomes proprietary
EGP-437 § A platform specific formulation of dexamethasone
phosphate
§ Potent anti-inflammatory agent
§ Three clinical studies completed to-date including one study for EGP-437’s lead indication, anterior uveitis
§ No observed increases in intra ocular pressure
§ U.S. Patent filed in February 2009
The Leader in Ocular Drug Delivery
Peak Year Sales Potential
10
§ EGP-437 has potential to achieve annual peak revenue of approximately $340 million in the U.S. and $200 million in ROW
($ in millions)
Condition
U.S. Market Size
(In 000s) EyeGate Target Patient Profile
EyeGate Target Population (In 000s)
Estimated Annual Peak
Sales
Anterior Uveitis 200 Frequent Outbreaks 80 $60
Dry Eye Syndrome 9,500Induction Period and Severe (i.e.
Sjrogens)500 $130
Scleritis 45 Total Population 35 $25
Corneal Graft Rejection 400 Active Graft Rejection 40 $30
Cataract Surgery 3,000 Premium IOL's (multifocal) 380 $95
TOTAL $340
The Leader in Ocular Drug Delivery
Ownership
11
Ventech, 48.6%
Innoven, 17.1%
NEP, 4.2%
Medicis, 3.1%
Nexus, 3.1%
Other, 9.0%
Options and warrants,
14.9%
§ Raised $55.4 million § EyeGate’s ownership on a fully diluted basis, assuming all options granted and exercised and all
warrants exercised illustrated below:
The Leader in Ocular Drug Delivery
Table of Contents
§ An Entrepreneur at heart
§ The EyeGate story in brief
§ Funding an Opportunity
§ Wrap-up
The Leader in Ocular Drug Delivery
So you have an idea!!!
13
§ Communicating to target audience
• Friends & Family
• Angel investors
• Venture capitalists
• Strategic investors
• Institutional investors
The Leader in Ocular Drug Delivery
So you have an idea!!!
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§ Mission Statement
PURPOSE
Who Cares?
The Leader in Ocular Drug Delivery
So you have an idea!!!
15
§ Mission Statement
Vision Statement "Preservation of sight" was the driving force behind the
founding of InSite Vision in 1987 and remains so today. We pursue that vision through the development of innovative
technologies and products. Advancing the treatment of eye disease guides our resource investments and the search
for more effective "solutions for sight." We are committed to providing these solutions to patients and physicians and, in doing so, building the long-term value of InSite Vision for
our global shareholders and partners.
This statement could be talking about any ophthalmic company!
The Leader in Ocular Drug Delivery
So you have an idea!!!
16
§ Mission Statement
• pSivida is a leader in the development of miniaturized, injectable, drug delivery systems.
Who Cares?
2 steps away from answering question
The Leader in Ocular Drug Delivery
So you have an idea!!!
17
§ Mission Statement
focused on treating unmet ocular medical needs with the EyeGate® II Ocular Drug Delivery System, a non-invasive drug delivery technology that has the potential to treat multiple ocular diseases.
addressing the need for an alternative mode of ocular drug delivery because there are safety and efficacy drawbacks posed by current ocular delivery applications, such as eyedrops, injections or implants, which are hindered by low bioavailability, collateral toxicities, sight-threatening infections and/or retinal damage.
General!!
Who cares??
The Leader in Ocular Drug Delivery
So you have an idea!!!
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§ Mission Statement
§ Non-compliance is the main cause of treatment failure which leads to temporary or permanent loss of vision.
§ Low patient throughput limits number of patients treated and limits revenue for doctor
Who cares??
§ developing therapeutics designed to address two major issues in the ophthalmic space, patient compliance and patient throughput.
1 step away from answering question
The Leader in Ocular Drug Delivery
So you have an idea!!!
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§ Mission Statement
Organize the world’s information and make it universally accessible and useful.
The Leader in Ocular Drug Delivery
So you have an idea!!!
20
§ Mission Statement
Committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services.
APPLE
The Leader in Ocular Drug Delivery
Moving Forward
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§ Business plan and executive summary • Tells a story
• Problem > your solution • Market opportunity • Key investment highlights
The Leader in Ocular Drug Delivery
Cash
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§ Sources of cash • Revenue
• Non-dilutive
• Debt • Non-dilutive and/or dilutive
• Equity • Dilutive
• Strategic partnership • Non-dilutive and/or dilutive
The Leader in Ocular Drug Delivery 23
….figure out what you want to be when you grow up
VC’s
…..understand who you are and
The Leader in Ocular Drug Delivery 24
§ Realizing ROI requires exit • IPO? • M&A?
§ The exit path will influence valuation and deal terms
VC’s
Friday.
Ten-Year Venture Capital Returns Continue To Slide
Creating Value
The Leader in Ocular Drug Delivery
VC’s
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§ Valuation
What value are you willing to accept????
§ Valuation • Multiple • ROI • Comparable company analysis • Net present value
The Leader in Ocular Drug Delivery
VC’s
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§ Term sheet • Liquidation preference
• Multiple liquidation preference
• Anti-dilution: full ratchet vs weighted average
• Pay-to-play provision
• Drag and tag alongs
• Incentive plan (options): limited exercise period, reverse vesting
• Board seat
The Leader in Ocular Drug Delivery
VC’s
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§ Board seat
• Alignment between investor and management
• Exit: IPO vs. M&A
• Stand-alone or integrated
The Leader in Ocular Drug Delivery
Table of Contents
§ An Entrepreneur at heart
§ The EyeGate story in brief
§ Funding an Opportunity
§ Wrap-up
The Leader in Ocular Drug Delivery
Success?
29
Characteristics required??? • Fear of failure • Drive or ambition
• Curiosity • Desire for learning
• Discipline – tenacity
• Diplomacy • Leader
• Belief