This presentation, and its accompanying commentary, contains forward-looking
statements.
Aradigm Corporation’s actual results may differ materially from those suggested
here today.
Additional information concerning factors that would cause such a difference is
contained in the Company’s 1999 Annual Report on Form 10-K.
This presentation, and its accompanying commentary, contains forward-looking
statements.
Aradigm Corporation’s actual results may differ materially from those suggested
here today.
Additional information concerning factors that would cause such a difference is
contained in the Company’s 1999 Annual Report on Form 10-K.
Aradigm CorporationAradigm Corporation
Aradigm at a GlanceAradigm at a Glance
· A Leader in Pulmonary Drug Delivery
· Technology platform is applicable to many therapeutic areas
· Partnered with industry leaders– Novo Nordisk,
SmithKline Beecham and Genentech
– $55M invested to date· AERx hand-held device
is convenient, simple to use and designed to prevent errors in dosing
Benefits of AERx Pulmonary DeliveryBenefits of AERx Pulmonary Delivery· Time to peak morphine concentration as
fast as intravenous injection
· Faster reduction of glucose levels with insulin than with injection
· 90% reduction in dosing time in Cystic Fibrosis
· Achieves therapeutic levels of biotech drugs,non-invasively
Advanced Pulmonary Drug DeliveryAdvanced Pulmonary Drug Delivery
Advantages· Large Surface
Area· Near Direct
Access· Natural
Function
Benefits· Non-invasive· Fast onset· Broad
applicability
Nozzle AreaNozzle Area
Blister AreaBlister Area
AERx Particle Size ControlAERx Particle Size Control
· Consistently small particles (1-3 microns)
· Point-of-use aerosol control
· Single use, disposable
· Consistently small particles (1-3 microns)
· Point-of-use aerosol control
· Single use, disposable
AERx Control of Patient InhalationAERx Control of Patient Inhalation
· Device actively guides patient to breathe correctly
· Automatically delivers drug at right time
· Eliminates patient breathing as a source of error
AERx PlatformAERx Platform
Liquid formulation Fast development
Unit dose disposable packetSuperior aerosol performance
Data capture Enhances therapy compliance
The AERx AdvantageThe AERx Advantage
Breath control Consistent dose delivery
Local Lung DeliverySystemic Delivery
Small Molecule
Macro-molecule
Pulmonary Delivery ApplicationsPulmonary Delivery Applications
• The most broadly applicable technology
• Eight partner funded programs• Four phase II programs
Undisclosed Phase IMorphine-Phase IIUndisclosed-Phase I
Insulin-Phase IIGene Therapy-preclinicalUndisclosed-preclinical
Dornase alfa-Phase IIUndisclosed-Phase IIGene Therapy-preclinical
Leading Partner EndorsementsLeading Partner Endorsements
AERx Diabetes Management System
AERx Pain Management System
AERx Respiratory Management System
Plus five more unannounced programs
Achieve Reproducibility
Requirements
AERx Diabetes Management System
Tight control over particle size and breathing
One insulin unit increments
Novo Nordisk is the world leader in insulin
Diabetes ManagementDiabetes Management
Adjustable Dosing
Access to Insulin
Rapid, Reproducible
Requirements
AERx Pain Management System
Comparable to intravenous delivery
Timed lockouts and secure access
SmithKline Beecham has a growing oncology franchise
Pain ManagementPain Management
Minimize Misuse & Abuse
Access to Oncology/
Pain Market
Fast and Simple
Requirements
AERx System with Dornase Alfa
90% reduction in dosing time
Convenience and electronic compliance monitoring
Genentech is a leader in Cystic Fibrosis therapy
Cystic Fibrosis ManagementCystic Fibrosis Management
Improved Adherence with
Therapy
Access to CF Market
Most biotech drugs are in stable liquid formulations
Most biotech drugs are in stable liquid formulations
AERx Well Positioned for Future OpportunitiesAERx Well Positioned for Future Opportunities
· Chronic bronchitis and emphysema drugs
· Antibodies
· Gene therapies
· Asthma drugs
· Hematopoetic factors
· Human growth factors
· Anti-obesity drugs
· Migraine drugs
· Anti-Parkinson’s drugs
· Interleukins
· Interferons
· Antibiotics
Commercial Sales
Manufacturing
Development
Aradigm Business Model- Pharma Profitability...
Aradigm Business Model- Pharma Profitability...
10%-25% ofproduct
sales
40%-60% gross
margins
…But With Lower Risk Profile
Partner pays costs
ARDM receives transfer price
profit
ARDM receives royalty
(Dollars in Millions)
1997 1998 1999Contract and License Revenues 3.7$ 17.5$ 16.8$ Operating Expenses:
Research and Development 12.7 25.5 33.6 General and Administrative 6.7 8.7 7.8
Total Expenses 19.5 34.2 41.5 Loss From Operations (15.8) (16.7) (24.7)
Historical Income StatementsHistorical Income Statements
(Amounts In Millions)
Cash, Cash Equivalents Q1 2000 25.7$ Follow-on Offering Q2 2000 43.4$ Cash Burn per Month (approx) 2.5$ 2000 Capital Requirements (approx) 15.0$
Cash Summary Cash Summary
2000 / Early 2001 Milestones2000 / Early 2001 Milestones
· Advances in intellectual property position
· Phase II insulin data at American Diabetes Association meeting (June 2000)
· Potential feasibility and long-term partnerships
· Initiation of Phase IIb morphine
· Initiation of Phase IIb dornase alfa
· Initiation of pivotal insulin studies