discovery starts with sample...
TRANSCRIPT
Investor Presentation
Pressure BioSciences, Inc.(NASDAQ CM: PBIO)( )
Discovery Startswith Sample Preparation™
March 14, 2012,
Forward Looking Statements
Thi t ti t i f d l ki t t tThis presentation may contain forward looking statements that reflect management’s current views and opinions as to the status of the Company’s products, technology and
other future events and operations These statements areother future events and operations. These statements are neither a promise nor guarantee, but involve risks and uncertainties that could cause actual results to differ
materially from those anticipated or indicated Investorsmaterially from those anticipated or indicated. Investors are cautioned that any forward looking statements should
be considered in light of such risks and uncertainties including, without limitation, those detailed in the g, ,
Company’s filings with theSecurities and Exchange Commission.
2
Key Investment Highlights
• Pressure Cycling Technology (PCT): Powerful, Enabling, Patented
$6 Billi M k t O t it Bi l i l S l P ti• $6 Billion Market Opportunity: Biological Sample Preparation
• PCT Products Offer Significant Advantages Over Competitive Methods
F S l P ti Bi k Di F i P th l• Focus on Sample Preparation: Biomarker Discovery, Forensics, Pathology
• Proven Technology: ~ 200 Installations in ~150 Marquee Laboratories
E i ti d N P d t Off Si ifi t G th O t it• Existing and New Products Offer Significant Growth Opportunity
• Attractive “Razor/Razorblade” Business Model
O i Di i ith P t ti l St t i P t• On-going Discussions with Potential Strategic Partners
• Experienced Management Team and Board of Directors
F bl M k t V l ti f th I t• Favorable Market Valuation for the Investor
• Commercialization Program in Place: 20123
Company Background
• Formed Sept 2004 - Sale of Boston Biomedica (BBII)( )
• Started Significant Operations in 2006
• NASDAQ CM: PBIO• NASDAQ CM: PBIO
• Thirteen (13) Full-time Employees
S f• Strong Management Team and Board of Directors
• Focused on the Development and Commercialization of PCT-based Instruments and Consumables for the Preparation C C pof Biological Samples for Research Laboratories
• Strong IP - 24 Issued PCT Patents with More Pending
4
Experienced Senior Management & Board
Management
M Ri h d T S h h P id t & CEO• Mr. Richard T. Schumacher, President & CEOBoston Biomedica (CEO); Panacos Pharma (President); Center for Blood Research (CBR Labs - Harvard Medical School) -General Manager
• Dr. Edmund Y. Ting, Senior Vice President of Engineeringg, g gAvure Technologies (CSO); Flow Int’l; Grumman Aerospace; MIT (Ph.D.)
• Dr. Alexander V. Lazarev, Vice President of R&D Proteome Systems; Genomic Solutions; ESA; University of Kazan (Ph.D.)
• Dr. Nathan P. Lawrence, Vice President of MarketingBoston Biomedica; BD; Gene-Trak Systems; Yale University (Ph.D.)
• Mr. Joseph Damasio, Vice President of Finance & Adm.PricewaterhouseCoopers; NEN Life Sciences; Boston College (MBA)
Board
R W F i h Ch i Al G ldb• R. Wayne Fritzsche, Chairman Alan Goldberg• J. Donald Payne, Audit Committee Chair Greg Freitag• Calvin A. Saravis, Ph.D , SAB Chair Jeffrey Peterson• Alan Rosenson, Compensation Committee Chair Richard T. Schumacher
5
Past Accomplishments – CEO and Chairman
Company Role Top Market Cap Outcome
Schumacher
Pressure BioSciences (Nasdaq PBIO) Founder CEO DirectorPressure BioSciences (Nasdaq PBIO) Founder, CEO, Director
Boston Biomedica (Nasdaq BBII) Founder, CEO, Director ~$120 million Sold
Panacos Pharma (Nasdaq PANC) Co-Founder, Director ~$650 million Sold
Trinity Biotech (Nasdaq TRIB) Founding Group $250 million Going StrongTrinity Biotech (Nasdaq TRIB) Founding Group ~$250 million Going Strong
CBR Laboratories (Harvard Med) Founding Group N/A N/A
Fritzsche *Fritzsche *
Intelligent Medical Imaging Co-Founder, Chairman ~$280 million Sold
Immune Response Co-Founder ~$750 million Now OCHT.PK
O Ph (N d OPXAW) C F d $25 illi S ldOpexa Pharma (Nasdaq OPXAW) Co-Founder >$25 million Sold
Cytogen Co-Founder >$100 million Sold
Occulogix Co-Founder >$50 million Sold
* Mr. Fritzsche was also the founder or co-founder of approximately 20 additional companiesand has raised more than $120 million for these companies over the years.
6
Value Proposition – Sample Prep Market
• Analysis of DNA, RNA, Proteins, & Lipids (“biomolecules”) is Crucial to the Development of New Diagnostics & Therapeutics
• Sample Preparation is Required Prior to Virtually All Analyses
• Current Sample Preparation Methods are Highly Inadequate: bottleneck
• PCT Offers Many Clear Advantages Over Current Competitive Products
• Current Target: Life Sciences Research Market – minimal regulatory
• PBI Holds 24 Issued PCT Patents in Multiple Sample Prep Applications
• Early Traction…about 200 PCT Systems installed through Q4 2011y y g
• $6 Billion* Market Opportunity for Sample Preparation Products
~ 500K Scientists in ~ 80K Labs WW require some sample preparation**
* Strategic Directions Int’l; **The Emmes Group
7
Pressure Cycling Technology (PCT)Release Important Biomolecules by Cell Lysisy g gy ( )p y y
8
Sample Input Quality = Sample Result Quality
Scientific research can be broken down to three key elements:sample preparation, analysis, & data reduction/interpretation
“Discovery Starts with Sample Preparation” 9
Competitive Landscape
Mostly Commodity Products Through Catalogue Sales
• Mortar & Pestle• Dounce homogenizer (glass on glass)• Potter-Elvenhjem homogenizer (Teflon on glass)• Enzymatic Digestion• Polytron shearing homogenizers• Polytron shearing homogenizers• Blenders• Bead Beating• Sonication• Repeated Freeze/Thaw cycles• French Press (≤ 2000 PSI)
10
PCT Sample Preparation System
Barocycler™ NEP2320 Barocycler™ NEP3229 PULSE Tube
11
MicroTubes PCT-dependent Kits
Selected Marquee Customers (40 of 150)
• Amgen• Biogen• Lilly
• Thermo Fisher• Promega Corporation • Battelle Memorial Institute y
• Novartis• Monsanto• BM Squibb• Merck
• Harvard Medical School • Harvard School of Public Health • Rockefeller University • University of New Hampshire
• Takeda Pharmaceuticals• Centocor• Target Discovery• US Army
y p• Barnett Research Inst (NEU) • UCLA • UC - San Diego• UC - Davisy
• FBI• Food and Drug Administration • US Department of Agriculture • National Institutes of Health
• Lawrence Livermore • Stanford University • University of North Texas • Mississippi State
• Armed Forces Inst. of Pathology• Centers for Disease Control• USAMRIID• Dana Farber Cancer Center
• Montana State • Lawrence Berkeley • University of Kentucky• Florida Int’l University
• Burnham Research Institute • UMASS – Boston
12
Current PCT Products & Product Pipeline
• PCT Sample Preparation System 2012: Aggressive(Barocycler NEP3229 & NEP2320) Commercialization
• The PCT Shredder SG3 Just Released
• Barocycler HUB440 Just Released
• FFPE System – proteins, DNA/RNA 2012
• PCT-based HT (48 - 384 well format) 2013
• XstreamPCT™ HPLC Digestion System 2013
13
PCT Sample Preparation System
Barocycler™ NEP2320 Barocycler™ NEP3229 PULSE Tube
14
MicroTubes PCT-dependent Kits
Product Pipeline (2011 Release)
The ShredderSG3SG3
Low Shear, Mechanical, Homogenization Device
• Long lasting lithiumrechargeable batteries
• Paddle for convenientpressure setting
• Pressure levels: 15, 30, 45 lbs. Force
• Uses PCT PULSE and Shredder Tubes
• Heavy Duty, RobustDriver
15
Product Pipeline (2011 Release)
The Barocycler HUB440Hi h P G tHigh Pressure Generator
• Compactp• Portable• Versatile• Manual orManual or
Computer Controlled• Pressures to 58Kpsi
State-of-the-ArtHigh Pressure Generator
for Multiple Bioscience Applications
AVAILABLE Q3 2011for Multiple Bioscience Applications
16
Product Pipeline (2012 Release)
The Barocycler NEP-FFPEy
• 1 Billion Stored Samples WW• 1 Billion Stored Samples WW
• 6x More Non-redundant Proteinsfrom FFPE AortaDr. J. Van Eyk, et al., J. Hopkins
• 2x More Unique Proteins fromFFPE Mouse Liver
PCT-enhanced Protein Extraction fromF li Fi d P ffi E b dd d (FFPE) S l
Dr. C. Fowler, et al., AFIP
AVAILABLE Q4 2012Formalin-Fixed Paraffin-Embedded (FFPE) Samples
17
Product Pipeline (2013 Release)
XstreamPCT™ Digestion ModuleA t t d I li O d d PCT h d Di tiAutomated, In-line, On-demand PCT-enhanced Digestion
• Significantly ReducedSignificantly Reduced Protein Digestion Time
• Increased Membrane Protein Recovery
• Rapid & Less CostlyDe-glycosylation
• Excellent Reproducibility
AVAILABLE 2013The First Module in PBI’s Extreme PCT (35,000 psi) HPLC Platform
18
Product Pipeline (2013 Release)
The Barocycler HT Multiwell (48/96/384)
Process 48, 96, or 384 Samples with the
S f• Safety• Speed• Quality• Versatility• Versatility• Reproducibility
of PCT
For High Throughput PCT-enhanced Biomolecule Extraction & Accelerated Enzymatic Digestion
AVAILABLE 2013Extraction & Accelerated Enzymatic Digestion
19
Financial Data
Historical Revenue Data • 2008 $ 852,000• 2009 $1,245,000• 2010 $1,340,000• 2011 $ 988,000
Selected Data Through December 31 2011Selected Data Through December 31, 2011• Cash/Cash Equivalents ~$0.2 million• Inventory ~$1.1 million• Debt (unsecured) $ 0.4 million( )• Total Assets ~$1.9 million• Total Liabilities ~$2.4 million
Selected Data Through March 12, 2012• Price per Share $0.60• Total Common 8.4 million• Total Preferred (com equiv) 1 4 million• Total Preferred (com equiv) 1.4 million
Total Shares OS 9.8 million• Market Cap (Com/Prfd) $6.0 million 20
Capitalization Table
As of February 24, 2012I C St k E i l t )In Common Stock Equivalents)
Description NumberDescription Number
Common Shares Outstanding 8,385,090
Convertible Preferred Stock C 880,980
Convertible Preferred Stock D 553,847
Total Common Stock Equivalents 9,819,917
Warrants (Weighted Average Strike Price of $1 29) 5 261 438Warrants (Weighted Average Strike Price of $1.29) 5,261,438
Stock Options (Weighted Average Strike Price of $2.29) 1,428,500
Total Warrants and Options 6,689,938
Total Proceeds from Exercise of Warrants and Options $10,000,000
21
PBI Sample Preparation Focus Areas
Dr. Andreas Huhmer – Thermo Fisher Scientific…advantages of speed and quality using PCT in mass spec workflow
Biomarker Discovery
…advantages of speed and quality using PCT in mass spec workflow
Dr. Michael Alterman – Tumor Vaccines and Biotechnology Branch, CBER, FDA…improved influenza vaccine quality using PCT in mass spec workflow
Dr. Alexander Ivanov – Harvard School of Public Healthimproved protein identification using PCT in mass spec workflow…improved protein identification using PCT in mass spec workflow
Dr. Luke Schneider, Target Discovery, Inc.…improved membrane protein recovery in ovarian cancer studies using PCT in mass spec workflow
Forensics ***
Dr. Bruce McCord, Florida International University…improved processing of forensic (rape kit) samples using PCT
Forensics Dr. Henry C. Lee, the Henry C. Lee Institute of Forensic Science
…evaluation of PCT in the recovery and detection of DNA in difficult forensic samples
…improved processing of forensic (rape kit) samples using PCT
Dr. Bruce Budowle, Health Science Center, University of North Texas…improved detection of DNA in forensic samples using PCT
Pathology (FFPE Samples)Dr. Jeff Mason and Dr. Carol Fowler, Armed Forces Institute of Pathology
...improved processing of FFPE (histology) samples using pressureDr. Jennifer Van Eyk, Johns Hopkins School of Medicine
…improved recovery of aorta proteins from FFPE samples using PCT 22
Recent News of Interest
2012
Collaboration with Dr Henry C Lee and the HCL Institute of Forensic ScienceCollaboration with Dr. Henry C. Lee and the HCL Institute of Forensic Science
Dr. W. Hubbell (UCLA) Presents Data Citing Proteomics Enhancement with PCT
European Sales Reach Expanded with Distribution Agmt for Benelux CountriesEuropean Sales Reach Expanded with Distribution Agmt for Benelux Countries
PBI Reports 2011 Financial Results – 22% revenue increase in Q42011 vs. Q42010; 66% revenue increase in 2H2011 vs. 1H2011
$800,000 Private Placement – transaction priced at market
Significant Progress Cited in the Development of a PCT-based Method toProcessing of Sexual Assault SamplesProcessing of Sexual Assault Samples
PBI and DIGI Labs Announce Global Co-Marketing/Selling/Development Agmt
20112011
Distribution Agmt with IUL Instruments for Germany/Switzerland Announced23
Professor Wayne Hubbell - UCLA
Distinguished Professor ofDistinguished Professor of Chemistry & Biochemistry, and Jules Stein Professor at UCLA
"Protein flexibility is the new frontier in understanding protein
UCLA
Protein flexibility is the new frontier in understanding protein function and regulation. The study of proteins under pressure has great ability to reveal salient features of protein flexibility,
and hence provide new insights into protein function and p g prational drug design. In my opinion, high pressure will
play a central role in the discovery process that lies ahead in the exciting field of protein science, and the PBI hardware will
make major contributions to this field.”
December 7, 2011 24
Dr. Henry C. Lee
Professor of Forensic Science and founder of the Forensic Science Program at the University of New Haven; founder of the HC Lee Institute of Forensic Sciences; and f C i i f P bli
“
former Commissioner of Public Safety for the State of Connecticut.
“We are excited about this opportunity to collaborate with Pressure BioSciences to examine the potential applications of
their PCT Platform in improving the collection of forensic evidence particularly DNA in several important areas ofevidence, particularly DNA, in several important areas of
forensics…such collaborations not only provide new, effective technologies for forensic DNA testing of samples that have
been difficult or unsuitable using today’s standard techniquesbeen difficult or unsuitable using today s standard techniques, but can also provide new and more effective ways to
reexamine old biological evidence in cold cases.” 25
2012 Expected Drivers
• Aggressive Commercialization Program
• Expansion of Distribution Network (3 to ~20 countries)
• Expansion of PBI Sales (3 to 10) & Marketing (1 to 4) Teamp ( ) g ( )
• Expansion of Strategic Partners (2 to 5, or more)
• Expected Completion of Significant Funding (up to 2 years cash)• Expected Completion of Significant Funding (up to 2 years cash)
• Measurable Progress on FFPE, XstreamPCT, HT MicrowellInstruments and Consumables
• Continuation of Aggressive IR (Awareness) Campaign
• Significant Revenue Run-rate Increase by Q4 2012 Significant Revenue Run rate Increase by Q4 2012
26
Key Investment Highlights
• Pressure Cycling Technology (PCT): Powerful, Enabling, Patented
$6 Billi M k t O t it Bi l i l S l P ti• $6 Billion Market Opportunity: Biological Sample Preparation
• PCT Products Offer Significant Advantages Over Competitive Methods
F S l P ti Bi k Di F i P th l• Focus on Sample Preparation: Biomarker Discovery, Forensics, Pathology
• Proven Technology: ~ 200 Installations in ~150 Marquee Laboratories
E i ti d N P d t Off Si ifi t G th O t it• Existing and New Products Offer Significant Growth Opportunity
• Attractive “Razor/Razorblade” Business Model
O i Di i ith P t ti l St t i P t• On-going Discussions with Potential Strategic Partners
• Experienced Management Team and Board of Directors
F bl M k t V l ti f th I t• Favorable Market Valuation for the Investor
• Commercialization Program in Place: 201227