zivo april2015
TRANSCRIPT
Notice to Investors & AnalystsThis Business Summary, Investment Summary and any Exhibits to itcontain forward-looking statements that involve risks and uncertainties.These statements reflect the Company’s future plans, objectives,expectations and intentions, and the assumptions underlying or relatingto any of these statements. These statements may be identified by theuse of the words “anticipate,” “expect,” “estimate,” “intend,” “believe,”and similar expressions. The Company’s actual results could differmaterially from those discussed in these statements. Factors that couldcontribute to these differences include, but are not limited to, thosediscussed in this document.
Overview ZIVO Bioscience, Inc. holds valuable intellectual property in the form of proprietary algae strains and bioactive compounds that promise to:
Support a healthy immune response in animals and humans
Promote healthy cholesterol balance in humans
Support joint health in animals and humans
Find Applications in feed, food, dietary supplements, pharma
Speed to Revenue The company intends to drive near-term revenue by monetizing animalnutrition and health market verticals while we continue to developlonger-range products that represent larger opportunities, such ashuman therapeutic agents
After efficacy/safety testing and registration, the Company’s natural animal products may be monetized in a matter of months by licensing to larger, well-established brand names as healthy feed and pet treat ingredients
Company is validating and intends to license its bioactive compounds to animal health companies for future therapeutic use
Human product development/compliance as a dietary supplement starts once revenue streams from animal licenses are realized
Company spreads development risk and capital across feed, food, dietary supplement, medicinal and pharma market verticals, while sprinting toward positive cash flow
Monetizing Multiple Verticals
Market Potential Animal HealthThe Company’s proprietary, algae-derived bioactive compounds are found to be effective in early studies when applied to dairy cattle and dog models – our highest near-term priorities
Accelerate recovery from bovine mastitis – potentially saving US dairy farmers $2.8+ billion in lost milk production annually. The world’s 244 million dairy cows represent an untapped market
Company has already executed a Collaboration/Optionagreement with Zoetis (formerly Pfizer Animal Health) the world’s largest animal health company for bovine mastitis research
Have been shown to slow the degenerative effects of canineosteoarthritis – a proven $300 million market in the US alone
Near-Term Opportunities
Research Animal HealthThe Company’s proprietary algal culture, its extracts and isolates, are found to be effective in pre-NDI studies as applied to dairy cattle and dog models
In-vitro testing of primary bovine mammary epithelial cells in 3D culture at University of Wisconsin-Madison Dept. of Dairy Science indicated enhanced immune response when cells were exposed to infective pathogens responsible for bovine mastitis, 2013-2014
Explant testing of canine joint tissues at University of Missouri Comparative Orthopaedic Laboratory has indicated the Company’s bioactive compounds may slow the degenerative effects of canine osteoarthritis, 2014
Dairy cow mastitis in vivo pilot study at UC-Davis yielded very impressive results in combatting mycoplasma bovis. As part of its ongoing collaboration agreement with Zoetis, formerly Pfizer Animal Health – world’s largest animal pharma company, the Company delivered a pilot study report in spring, 2015
Recent Developments
Licenses/Joint-VenturesAnimal Feed & Health Ingredients
NATURAL PRODUCTSSYNTHETIC COMPOUNDS
Bovine Feed
Bovine Mastitis pharma
The Company expects to execute licenses as shown. Timeline “0” is close of funding
0 6 months 12 months 18 months
Canine Supplement
Canine Food
MORE REGULATED MORE REGULATED
Canine OA pharma
NATURAL PRODUCTS
Bovine Intra-Mammary
Canine CollaborationOption AgreementPartner TBD
HIGHLYREGULATED
LESSREGULATED
Bovine CollaborationOption AgreementSigned Dec. 20, 2013
Pilot Study Results delivered Spring, 2015
Market Potential Human HealthThe Company’s algal biomass, secondary metabolites and extractsmay be developed into ingredients for these market verticals
• Dietary Supplement/Nutraceutical – a $28 billion USand worldwide market that includes spirulina, algae-derivedOmega-3s, algae-derived astaxanthin, dried kelp, etc.
• Functional Food Ingredient – over 400 good-for-you foodand beverage categories need powerful ingredients to supporttheir product claims – dozens of licenses can be created
Refined isolates and bioactive molecules for therapeutic applications
• Medical Food – a specialized but stable and profitable marketniche for ingredients in prescribed foods and beverages
• Pharmaceuticals – as potential lead compounds for drugdevelopment
Natural Products/Future Therapeutics
Research Human HealthThe Company’s proprietary algal culture extracts were found to be beneficial in pre-NDI/pre-IND studies as applied to human and hypercholesterolemic hamster models
In-vivo testing of hypercholsterolemia at Wayne Statue University Dept. of Nutrition and Food Science found test subjects treated with culture extracts dropped total cholesterol by 32% and increased HDL cholesterol counts by 5% in studies conducted 2009-2012
In-vitro testing of human HEP-G2 and PBMC cell lines revealed early promise in addressing inflammatory cascades resulting from lipid peroxidation in repeated studies at Wayne State University School of Medicine conducted 2010-2012
Company commenced isolation and characterization efforts of bioactive components in 2014 as potential cholesterol management, autoimmune and anti-inflammatory ingredients in human food and dietary supplements
Natural Products/Future Therapeutics
Licenses/Joint-VenturesHuman Nutrition & Health Products
BIOPHARMACOLOGICAL ORSYNTHETIC COMPOUNDS
Cholesterol Balance
Autoimmune Modulation
The Company expects to execute licenses as shown. Timeline “0” is close of funding
0 12 months 18 months 24 months
Cholesterol Balance
Joint Health
Immune Response
NATURAL PRODUCTS
Joint Health
Human NutritionIngredient JV or License
PHARMAREGULATIONS
FOOD SAFETYREGULATIONS
Human TherapeuticLead Compound Option Agreement
Business ModelCompany builds the value of intellectual property by:
Validating a specific application, i.e., bovine mastitis feed ingredient, through safety/tox testing, in vitro and in vivo studies and then patenting uses, production methods, administration modes
Creating a valuable dataset for such a specific application, to shrink risk and development time for a potential licensee, such as an animal feed manufacturer, dietary supplement marketer, animal health co.
Executing royalty agreements, joint ventures and licenses to boost market value and earning power of the intellectual property
Core Business: Monetizing Early Results
Prioritized ObjectivesPotential Revenue Streams
Near-Term < 24 months
Bovine Feed Ingredient Canine Diet Supplement
Porcine Feed Ingredient Human Diet Supplement
Longer-Term > 24 months and beyond
Bovine Medicinal App Canine Medicinal App
Pharmaceutical Lead Compound
Company Snapshot New management and $5.75 million new capital infusion beginning
January, 2012 New business model adopted in January 2012 – Company primarily
engaged in R&D and subsequent licensing/JV of Intellectual Property
Actively acquiring intellectual property Acquired assets of metabolic testing company August 2013 – WellMetris
subsidiary currently in FDA pre-submission, preparing for market launch and active partnering
Optioned libido-enhancement drug candidate August 2014 – newly formed Derivlan Bioscience subsidiary to test compounds in Brazil
Company launched $4.5M capital funding initiative Q4 2014 to fund algal products development and drive to revenue
Trading symbol: OTC:ZIVO.QB
Principal Offering – Algal Products
Use of ProceedsThe following Use of Proceeds will allow Company principals to drive toward expected revenue in late 2015. A comprehensive investment memorandum, due diligence package and business plan are available.
Compliance/Reporting $ 200,000Analysis/characterization $ 300,000Validation $ 500,000
Safety Studies $ 450,000Legal/IP $ 150,000Operations (4 quarters) $ 1,320,000Production/Product Development $ 800,000Marketing $ 420,000Costs associated w funding $ 360,000
Total $ 4,500,000
Prospects & ProjectionsThe Company anticipates income streams to begin developing in late 2015, consisting primarily of advances or options, based on available funding
Product or Application Milestone/Event Expected Revenues Time Horizon
Bovine Mastitis Feed Ingredient License upfront < $500K < 240 days
Bovine Mastitis Feed Ingredient Annual Royalty Payments Up to $5 million < 2 years
Bovine Mastitis Diet Supplement License upfront (non-US) < $250K < 240 days
Bovine Mastitis Diet Supplement Annual Royalty Payments Up to $8 million < 2 years
Canine Joint Health Diet Supplement License upfront < $500K < 1 year
Canine Joint Health Diet Supplement Annual Royalty Payments Up to $10 million < 3 years
Human cholesterol Ingredient License upfront < $500K < 1 year
Human cholesterol Ingredient Annual Royalty Payments Up to $8 million < 2 years
Human cholesterol Supplement License upfront < $500K < 2 years
Human cholesterol Supplement Annual Royalty Payments Up to $10 million < 3 years
Feed, Food & Supplement Only
Exit StrategyZIVO Bioscience, Inc. is a publicly-traded Nevada corporation. Once revenue is optimized, the options to consider are:
Sell the entire Company to a larger, well established JV or licensee for a healthy multiple
Spin out the revenue-generating licenses or subsidiaries into another public entity and conduct an IPO, distribute proceeds to Company shareholders pro-rata
Continue to operate the Company in its current form and develop new applications from the Company’s proprietary IP
Realizing the Potential
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ManagementSince taking over in late December of 2011, the new management team has focused on reorganizing and revitalizing the enterprise:
• Andrew A. Dahl – President & CEO, former Fortune 500 marketing executive and consultant with 20+ year track record, previously in private consulting practice
• Philip M. Rice II – Chief Financial Officer, former DeLoitte CPA, former CFO Stahl’s, 20+ years management consulting, corporate finance and turnaround
• Scott M. Freeman, MD – Chief Science Officer, former COO/Clinical Studies Director, Onyx Pharmaceuticals with 20+ years in drug development, clinical trials management, compliance and regulatory affairs
• Amy E. Steffek, Ph.D.,-- Director, Research & Development, with 14+ yearsin scientific research experience spanning neurology, cardiology, oncology,psychiatry, and endocrinology
• Scott Forsberg – Director, Product Development, former Director of R&D for Solaray and Director of Marketing for Nature’s Way with 20+ year history in nutrition and supplement industry
Core Team
SummaryThe Company holds valuable intellectual property that can be exploited across several market verticals and potentially dozens of licenses within:
• Functional food/feed ingredients, dietary supplements• Drug development lead compounds/medicinal products• Metabolic testing, wellness products• Libido enhancement lead compounds• Anti-aging lead compounds
These distinctly different market verticals substantially increase the odds that any one market may be successful. Acquiring related IP provides opportunities that may help mitigate risk and amortize internal resources across other platforms
Realizing the Potential