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Restoring, Preserving Elastin in Aging Skin
Terence A. Walts , MBA- President, CEO, [email protected], 678-860-3725
Naren Vyavahare, PhD - CSO, [email protected], 864-650-7155
ConnecTiss, LLC
1
I. OVERVIEW
INDUSTRY: COSMETICS - >$300B
COMPANY HQ: GREENVILLE, SC
FOUNDED: OCTOBER 2013
TARGET MARKET: SKIN CARE COSMECUTICALS - $13B WW
TECHNOLOGY: SKIN ELASTIN STABILIZATION & REGENERATION
STAGE: DEVELOPMENT (PRE-CLINICAL)
FUNDING SOUGHT: 500K first round2
Restoring, Preserving Elastin in Aging Skin
AGING SKINSAGGING CHINS, WRINKLES
•Primal , universal desire to maintain youthful appearance•Natural function of aging, sun exposure, gravity •Natural degeneration, loss of skin elastin production over time
II. PROBLEM
3
Restoring, Preserving Elastin in Aging Skin
Elastin is a tissue “rubber band” that keeps it tight.
With age it degrades and not restored
4
COSMETICS CLINICALLY PROVEN* TO STABILIZE/RESTORE SKIN ELASTIN
•Elastin defined:oFound in all elastic connective tissue (skin, arteries, lungs)oHelps maintain youthful looking skin (prevents sagging, wrinkles)oBoosting elastin important in successful skin rejuvenationoLargely neglected by industryoNo product today clinically proven to restore elastinNo product today clinically proven to restore elastin
III. ConnecTiss’ SOLUTION Restoring, Preserving Elastin in Aging Skin
*
* In cardiology and future ConnecTiss clinical studies
6
COSMECUTICALS•Cosmetics that purportedly deliver medicinal or drug-like benefits
•Large growing market: $31B (worldwide); $10B (US); +7%/yr (GBI Research, 2013)
•ConnecTissConnecTiss’ target market Skincare cosmecuticals ~43% market
•Europe (5 countries), US dominate; huge potential in China, India & Japan
•Not recognized, regulated by FDA (claims monitored by FTC)
•Highly fragmented; low barriers to entry
•Consumers, dermatologists overwhelmed by # products, product claims
•Product info often not scientifically sound, clinically proven
VI. MARKET Restoring, Preserving Elastin in Aging Skin
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VII. COMPETITION
COSMECUTICALSMAJOR COMPANIES
(>400 mfgers, suppliers)
7 companies = ~ 50% market
Allergan, Beiserdorf AG, Avon, Darma Labs, Claris SA, Colgate-Palmolive, Dermal Group,
Elizabeth Arden, Est’ee Lauder, GlaxoSmithKine, Henkel AG, J&J, Kao Corp,
KOSE Corp, L’Oreal, Medicis Parma, Physicians Formula Holdings, Revlon, Proctor & Gamble, ROHTO Pharma, Sanofi-Anventis
SA, Royal DSM, Shiseido, Strivectin Operating Company, UnileverUnilever
MAJOR BRANDS
Algenist, Amorepacific, Avon, Botox, Caudalie, Clarins, Clarius, Clinique, Covergirl,
Dr. Andrew Weil, Dr. Brandt Skincare, Dr. Dennis Gross, Elemis, Elizabeth Arden, Kate Somerville, L’oreal, Maybelline New York,
Murad, Neutrogena, Nu Skin, Olay, Olay, OLE Henriksen , Origins, Perricone MD, Peter
Thomas Roth, Philosophy, Retin-A, ROC, SK-II
Restoring, Preserving Elastin in Aging Skin
88
VIII. MAJOR SKIN ANTI-AGING Ais Restoring, Preserving Elastin in Aging Skin
Active Ingredient Botulinium Toxin Retinoid (Vitamin A) Connect ComplexConnect Complex
Major Brand BOTOX® RETIN-A® (acne)RENOVA® (wrinkles)
TBD®TBD®
Manufacturer Allergan J&J, Others ConnecTissConnecTiss
Patented YES Expired YESYES
WW Revenues (2011) $1.7B $1.6B ??
Rx & OTC YES YES YESYES
Application Injection (3x/yr) Topical (1x/day) TBDTBD
Therapeutic Effects in 1st few days 6-24 wks ??
Side Effects Respiratory, swallowing, bladder
problems
Skin irritation, burning??
Mode of Action Relaxes muscles Skin renewal, growth Prevents elastin Prevents elastin degradationdegradation
Reverses Skin Damage, Wrinkles, Sagging
NO NO YES (TBD)YES (TBD)
Cost/Treatment/Yr $1,000-$2,000 $300-400 ~$500~$500
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•TEAMTERENCE A. WALTS, MBA – President, CEO, Co-Founder. Twenty-six years bus experiences in life sciences , incl. SVP-CIBA Vision/Novartis, CEO of 3Ti, Refocus Group & Cambium Medical Technologies; Pres, COO Oncose. Director of VirtualScopics since 2005 (NASDAQ:VSCP) & Metaclipse since 2013. Experiences w/ 13+ medial start-ups. Took 2 start-ups public; 3 subsequently acquired by industry leaders/strategic investor. Raised $60M+ in start-up financing. 1971-88 in consumer packaged goods marketing - UnileverUnilever, General Foods & Hanes Corp. BS-Indiana; MBA-Notre Dame.
Naren Vyavahare, PhD. - Chief Scientific Officer, Co-Founder. Hunter EndowedChair, Professor of Bioengineering and Director of NIH-funded SC Center for Biomaterials and Tissue Regeneration, Clemson University. Research interests include extracellular matrix, heart valve and elastin. Inventor, co-inventor of 13 patents. Author, co-author of over 5 book Chapters & 100+ refereed-journal publications. Fellow, American Institute of Medical & Biological Engineering. Clemson awards for faculty excellence and outstanding research achievements. Prior Professors at University of Pennsylvania School of Medicine and University of Michigan. PhD-University of Pune (India).
•KEY MILESTONES: •Proof of concept in animal models, related publications•1 issued, 2 filed patents•Founders funding to date•License option pending w/ CURF•CEO on board late 2013
IX. MGT TEAM, MILESTONES Restoring, Preserving Elastin in Aging Skin
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SEEKING:•First outside financing (500K)
USE OF PROCEEDS:•Secure Clemson license option•Prototype formulation development•Initial skin absorption studies •Business Plan•Next round funding
XII. FUNDING Restoring, Preserving Elastin in Aging Skin
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XIII. TIMING, FUNDING
Qtr Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Fund Raising $25K $475K $2.5M $2.0M
•Formulation Dev.
x x
•Permeability, Diffusion Studies
x
•Stability Studies
x - x
•Packaging Dev. x
•Clinical Trials Ph-I Ph-II Ph-III
•Contract Mfg.
•Commercial Launch
OTC Rx
Restoring, Preserving Elastin in Aging Skin
2014 2015 2016
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XIV. FINANCIAL PRO FORMAS Restoring, Preserving Elastin in Aging Skin
2014 2015 2016 2017 2018 2019PROFIT & LOSS
Revenues (000s):•Commercial•Grants, Spon Research•Outside Funding
$0.0$0.025$0.475
$508-
$2,500
$3,455-
$2,000
$11,600--
$28,564--
$47,085--
Gross Profit (75% GM) $0.0 $381 $2,591 $8,700 $21,423 $35,314
Expenses $0.45 $2,450 $4,278 $7,380 $16,710 $25,897
EBITDA ($0.45) ($2,069) ($451) $1,320 $4,713 $9,417
Net Income ($0.45) ($2,200) ($739) $592 $2,428 $5,183
CASH FLOW SUMMARY
Beginning CashEnding Cash
*$0.05
$0.05$0.476
$0.476$0.789
$0.789$2,109
$2,109$4,922
$4,9$9,272
EMPLOYEES 2 16 25 35 76 108
PRE-MONEY VALUATION $2.0M $4.5M $7M $23M $57M $94M
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STRONG CORE, COLLABORATIVE TEAM
LARGE, GROWING, UNREGULATED MARKET
HUGE UNMET NEED (aging pop. want anti-aging products that work)
LOW DEVELOPMENT, ENTRY COSTS, TIME TO MKT
ELASTIN RESTORATION OVERLOOKED OPPORTUNITY
ConnecTiss’ ConnecTiss’ ELASTIN TECHNOLOGY•Proof of concept est in animal models, cardiology•Strong IP (1 issued, 2 pending patents, several publications)
MULTIPLE COMMERCIALIZATION OPTIONS
SUMMARYSUMMARY
Thank you!
Restoring, Preserving Elastin in Aging Skin