investor presentation february 2014 nasdaq: alqa
TRANSCRIPT
Investor PresentationFebruary 2014 Nasdaq: ALQA
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This presentation contains forward-looking statements. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of our control that can make such statements untrue, including, but not limited to, inadequate capital, adverse economic conditions, intense competition, lack of meaningful research results, entry of new competitors and products, adverse federal, state and local government regulation, termination of contracts or agreements, technological obsolescence of our products, technical problems with our research and products, price increases for supplies and components, inability to carry out research, development and commercialization plans, loss or retirement of key executives and research scientists and other specific risks. We currently have no commercial products intended to diagnose, treat, prevent or cure any disease. The statements contained in this presentation regarding our ongoing research and development and the results attained by us to-date have not been evaluated by the Food and Drug Administration. There can be no assurance that further research and development, and/or whether clinical trial results, if any, will validate and support the results of our preliminary research and studies. Further, there can be no assurance that the necessary regulatory approvals will be obtained or that we will be able to develop new products on the basis of our technologies. In addition, other factors that could cause actual results to differ materially are discussed in our Annual Report on Form 10-K/A filed with the SEC on May 16, 2013 and our most recent Form 10-Q filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise.
Forward-Looking Statement Disclaimer
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About Alliqua BiomedicalAlliqua is an advanced wound care company, consolidating a suite of technological solutions that allow wound care practitioners to manage the challenges of chronic and acute wounds.
S N A P S H O T
Nasdaq : ALQA
Market Cap: $100M
Major Investors: Celgene, Broadfin, Perceptive
Headquarters: Langhorne, PA
Employees: 35+
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B A C KG R O U N D I N B R I E F
1998 Aquamed – A private OEM Hydrogel Manufacturer
2010 Investor Acquires Aquamed, Takes Public, and Renames
2012 FDA Clearance – SilverSeal® and Hydress®
2013 New Leadership – Led by David Johnson and Dr. Jerry Zeldis
2013 New Focus – Wound Management
2013 New Wound Care Technologies – Partnerships with Celgene and Sorbion
2014 Uplist – NASDAQ Capital Market
Corporate History
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New Senior LeadershipIn 2013, Alliqua introduced new leadership comprised of healthcare and life sciences industry veterans.
D AV I D J O H N S O N , C E O O F A L L I Q U A
Former CEO of ConvaTec where he grew revenues to $1.7B and oversaw its sale for $4.1B. Senior positions at Zimmer, Fisher Scientific, and Baxter Corporation. 32 years in medical devices and 25 years leading companies.
D R . J E R R Y Z E L D I S , C H A I R M A N O F A L L I Q U A
Chief Medical Officer of Celgene Corporation since 1997. Celgene’s market cap grew from $100M to $55B during this period. CEO of Celgene Global Health where he creates new therapeutics for diseases of the developing world.
Advanced Wound Care Market OpportunityThe global market for advanced wound care products was $6.0B+ in 2011 with approximately 60% of sales in the U.S.
M A R K E T S E G M E N T S
Source: Worldwide Wound Management Market, Size and Growth to 2021 by Segment, MedMarket Diligence.
C H R O N I C W O U N D S
Diabetic Ulcers
Venus Stasis Ulcers
Pressure Ulcers
A C U T E W O U N D S
Surgical Wounds
Trauma
Burns
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Advanced Wound Management VisionAcquire a suite of technological solutions to enable wound care practitioners to deal with the challenges of acute and chronic wounds.
E X PA N D P R O D U C T P O R T F O L I O A N D D R I V E S A L E S
Integrate multiple technologies into Alliqua’s offering through licensing agreements, distribution agreements, and acquisitions.
Build a world-class sales force of knowledgeable, professional, and committed individuals with a background in wound care.
Extensive selling model including direct and independent agents.
Extensive channel reach through network of distributors.
Attractive compensation for sales specialists.
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Hydress®
Alliqua’s Proprietary Products
H Y D R E S S ® A N D S I LV E R S E A L ®
SilverSeal® Clinical Study demonstrated a reduction in infection and scarring in foot and ankle surgery patients as compared to standard petroleum-based dressings.
FDA clearance with Medicare reimbursement.
Controls the volume of wound fluid; absorbs wound exudate (up to 2x its own weight).
SilverSeal® offers broad spectrum antimicrobial activity.
Made at Alliqua’s Langhorne, PA manufacturing facility; low COGS with high margins. SilverSeal®
Hydress® and SilverSeal® leverage Alliqua’s core hydrogel manufacturing capabilities.
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Alliqua’s Proprietary Products Cont.SilverSeal® Clinical Study demonstrates a reduction of incision complications, including infection and scarring.
P I L O T S T U DY I N F O O T A N D A N K L E S U R G E R Y PAT I E N T S
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2013 Key Corporate MilestonesA C H I E V E D U N D E R N E W M A N A G E M E N T
Stabilize Alliqua’s OEM Revenue Stream
Build a World Class Management Team
Establish a Strong Commercial Presence
Expand the Technology Platform
Sorbion: Hydration Response
Celgene: Biologics
Financing of $17M in 2013
Uplisting to Nasdaq
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OEM Business: Custom Hydrogel ManufacturingAlliqua serves as a contract manufacturer, supplying its hydrogels to third parties who incorporate them into their own products.
Alliqua’s Langhorne, PA facility.
A D D R E S S A B L E S E G M E N T S
Transdermal and topical delivery of prescription and OTC Drugs.
Proof-of-Concept established in Lidocaine.
Moist wound and burn dressings.
Components of medical devices.
Cosmetic applications.
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2013 Key Corporate MilestonesA C H I E V E D U N D E R N E W M A N A G E M E N T
Stabilize Alliqua’s OEM Revenue Stream
Build a World Class Management Team
Establish a Strong Commercial Presence
Expand the Technology Platform
Sorbion: Hydration Response
Celgene: Biologics
Financing of $17M in 2013
Uplisting to Nasdaq
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DR. JANICE SMIELL C H I E F M E D I C A L
O F F I C E R
BRIAN POSNER C H I E F F I N A N C I A L
O F F I C E R
New Senior Management Team
GREGORY ROBB V P O P E R A T I O N S
LORI TONER C H I E F M A R K E T I N G
O F F I C E R
BRAD BARTON C H I E F O P E R A T I N G
O F F I C E R
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2013 Key Corporate MilestonesA C H I E V E D U N D E R N E W M A N A G E M E N T
Stabilize Alliqua’s OEM Revenue Stream
Build a World Class Management Team
Establish a Strong Commercial Presence
Expand the Technology Platform
Sorbion: Hydration Response
Celgene: Biologics
Financing of $17M in 2013
Uplisting to Nasdaq
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Sales and Marketing Team2 0 D I R E C T + 4 2 I N D E P E N D E N T = 6 2 P L A N N E D R E P S
* Direct@ Independent
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Distribution PartnersK E Y PA R T N E R S H I P S S E C U R E D I N 2 0 1 3
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2013 Key Corporate MilestonesA C H I E V E D U N D E R N E W M A N A G E M E N T
Stabilize Alliqua’s OEM Revenue Stream
Build a World Class Management Team
Establish a Strong Commercial Presence
Expand the Technology Platform
Sorbion: Hydration Response
Celgene: Biologics
Financing of $17M in 2013
Uplisting to Nasdaq
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Sachet S®
Sana®
Sorbion Hydration Response Technology
S O R B I O N S A C H E T S ® A N D S A N A ®
510k approved with Medicare reimbursement.
Hydroactive wound dressing for the management of moderately to heavily exuding wounds.
Designed for wounds with a heterogeneous production of exudate during granulation.
Preferred dressing for patients with contact sensitivities.
Expanded sales and distribution infrastructure opens up a $500M opportunity in the wound management space.
In September 2013, Alliqua became the exclusive distributor of sorbion-branded products in the Americas.
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Extracellular Matrix®
Biovance®
Celgene Human Amniotic Membrane Allografts
C E L G E N E B I O VA N C E ® A N D E C M ® Biovance® is a collagen-based decellularized and
dehydrated biologic wound covering produced from human amniotic membrane.
Biovance® is indicated for the management of non-infected partial- and full-thickness wounds.
Biovance® is ready for commercial use and a Q2 2014 launch is anticipated.
ECM is a suite of advanced wound management products made from extracellular matrix derived from the human placenta.
Alliqua anticipates a Q2 2015 launch of ECM, pending regulatory approvals.
In November 2013, Alliqua acquired the exclusive right to develop and market Celgene’s Biovance® and Extracellular Matrix (“ECM”).
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Advanced Wound Care Product PortfolioOur suite of differentiated products enhance a clinician’s ability to effectively and efficiently manage a variety of wound indications.
Hydress®
SilverSeal® Sorbion Sana®
Sorbion Sachet S®
Extracellular Matrix®
Biovance®
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Advanced Wound Management VisionExpand the wound care portfolio through business development.
PRODUCTS ACUTE WOUNDS CHRONIC WOUNDS
Current Products Cosmetic Surgical Skin Tears Trauma (Other) Burns
Pressure Ulcers
Diabetic Ulcers
Venous Leg Ulcers
Arterial Ulcers
SilverSeal® X X X X X X X X
Hydress® X X X X
Sorbion Sana X X X X X X X
Planned Product Introductions
Biovance® (Q2 2014) X X X X X X X X
Extracellular Matrix (~Q2 2015) X X X X X X X X
Q1 2014 (Partner Prospect) X X X X X X X X
Dry to Low Draining Wounds Moderate to High Risk of Infection Recalcitrant Hydress® / SilverSeal® Sorbion Sache / Sana SilverSeal® Biovance® / ECM
PRODUCT FIT
Strong Fit
Limited Fit
Anticipated New Products
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2013 Key Corporate MilestonesA C H I E V E D U N D E R N E W M A N A G E M E N T
Stabilize Alliqua’s OEM Revenue Stream
Build a World Class Management Team
Establish a Strong Commercial Presence
Expand the Technology Platform
Sorbion: Hydration Response
Celgene: Biologics
Financing of $17M in 2013
Uplisting to Nasdaq
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Media Excitement Surrounding Alliqua Biomedical
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Summary of Completed MilestonesA C H I E V E D U N D E R N E W M A N A G E M E N T
Stabilized Alliqua's OEM revenue stream.
Built a world class management team with a background in wound care.
Built a strong commercial footprint through direct reps and distributors.
Became exclusive distributor of sorbion products in the Americas.
Signed a licensing agreement with Celgene.
Entering into the biologics marketplace (Q2 2014).
Completed $17.0M in financing from major investors, including: Celgene, Broadfin, Perceptive, Crossover, and insiders.
Uplisted to Nasdaq.
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Objectives in 2014I N I T I AT I V E S N O W U N D E R WAY
Complete the hiring of 20 direct sales representatives.
Launch Biovance in Q2 2014.
Submit ECM for 510K Approval in the second half of 2014.
Expand Alliqua's product portfolio through licensing and/or acquisitions.
Revenue growth.
