Stories in Entrepreneurial Financestonehillblogs.org/clubs/fma/wp-content/uploads/2011/11/Stephen-Fr… · Dry Eye, and Scleritis Significant Market, Global Uveitis Therapeutics Market

The Leader in Ocular Drug Delivery

Stories in Entrepreneurial Finance

Presented by Stephen From, President and CEO

EyeGate Pharma for

FMA Chapter of Stonehill College

November 29, 2011


Agenda

§ An Entrepreneur at heart

§ The EyeGate story in brief

§ Funding an Opportunity

§ Wrap-up


My Background

3

Stephen From President & Chief Executive Officer

§  Over 15 years’ experience in finance with a focus on life sciences §  Previously, CFO Centelion, a biotechnology subsidiary of Sanofi-aventis §  Former investment banker specializing in the biotechnology and medical device sectors,

most recently at Banc of America securities

§  Had several small business endeavors prior to finding path that lead me to this spot

§  Received BSc from University of Western Ontario (London, Canada)

§  Received Diploma in Accounting from Wilfrid Laurier University (Waterloo, Canada)

§  Chartered Accountant – did my time with Price Waterhouse (Toronto, Canada)

§  Investment Banker •  started in Toronto, Canada (BZW - M&A boutique focused in Telecom sector) •  Moved to London, UK (Citibank, ING Barings: from telecom to healthcare) •  ING sent me to NY •  Back to London with Robertson Stephens, Bank of America)

•  CFO: Centelion in Paris, France (biotech company being spun out by Aventis)

•  CEO: EyeGate in Paris then to Boston


Agenda




§ Wrap-up


Company Mission

5

Eliminate Two Major Issues Currently Faced by Eye Care Practitioners

ISSUE #1

§  PATIENT NON-COMPLIANCE

ISSUE #2

§  LOW PATIENT THROUGHPUT


EyeGate® II Delivery System

6

EyeGate® II Delivery System

§  Non-invasive, iontophoretic therapeutic delivery that dramatically increases onset of action

§  Capable of delivering a wide variety of drug types ranging from small molecules to proteins

§  In-office procedure that takes under four minutes

§  All eye care practitioners can perform the procedure

§  CE Marked and 510(k) route acceptable to FDA

Eliminates the Issues of Patient Compliance and Patient Throughput while Decreasing Safety Risks


Corporate Overview

7

Lead product candidate EGP-437: §  A platform specific formulation of

dexamethasone phosphate §  Potent anti-inflammatory agent §  Commercial launch expected in late 2013

for anterior uveitis §  Expand label to dry-eye, scleritis and other

inflammatory indications

Research programs include: §  Reformulated antibiotic for Bacterial

Conjunctivitis §  Customized protein for Age-related Macular

Degeneration §  Control-released nanoparticles for

Glaucoma

EyeGate® II Delivery System: §  A small, elegant, and easy-to-use device that

delivers drugs non-invasively and quickly §  Capable of delivering a wide variety of

therapeutics §  Studied in over 400 people and over 1,200

treatments

§  Specialty pharmaceutical company (Ophthalmology) founded in 1998

§  VC funded, private Delaware corporation located in Waltham, MA

§  Sufficient cash in-hand to fund Phase III trial in anterior uveitis

§  8 full-time employees


Investment Highlights

8

EyeGate’s Approach

Enhances Both the Patient’s and

Doctor’s Treatment Experience

Lead Product Candidate,

EGP-437 is a Late Stage Asset with

Multiple Indications –

Anterior Uveitis, Dry Eye, and

Scleritis

Significant Market, Global

Uveitis Therapeutics

Market is Expected to Grow at 26%

Annually to $1.6B by 20171 EyeGate® II

Delivery System is a Proprietary, Non-invasive and

Versatile Drug Delivery System

Compelling and Cost Efficient Business Model with a Defined

Path to Reimbursement

Strong IP Portfolio with

Protection Lasting through to 2029 without

Extension

Source: 1. Uveitis Therapeutics – Pipeline Assessment and Market Forecasts to 2017, Global Data, April 1, 2011


Initial Business Strategy and EGP-437

9

Fast Initially Reformulating

Generics to Validate Technology and Business

Case

§  Low Risk: Understood safety and efficacy profile

§  FDA 505(b)(2) route

§  Multiple approved compounds to choose from

§  Reformulated product becomes proprietary

EGP-437 §  A platform specific formulation of dexamethasone

phosphate

§  Potent anti-inflammatory agent

§  Three clinical studies completed to-date including one study for EGP-437’s lead indication, anterior uveitis

§  No observed increases in intra ocular pressure

§  U.S. Patent filed in February 2009


Peak Year Sales Potential

10

§  EGP-437 has potential to achieve annual peak revenue of approximately $340 million in the U.S. and $200 million in ROW

($ in millions)

Condition

U.S. Market Size

(In 000s) EyeGate Target Patient Profile

EyeGate Target Population (In 000s)

Estimated Annual Peak

Sales

Anterior Uveitis 200 Frequent Outbreaks 80 $60

Dry Eye Syndrome 9,500Induction Period and Severe (i.e.

Sjrogens)500 $130

Scleritis 45 Total Population 35 $25

Corneal Graft Rejection 400 Active Graft Rejection 40 $30

Cataract Surgery 3,000 Premium IOL's (multifocal) 380 $95

TOTAL $340


Ownership

11

Ventech, 48.6%

Innoven, 17.1%

NEP, 4.2%

Medicis, 3.1%

Nexus, 3.1%

Other, 9.0%

Options and warrants,

14.9%

§  Raised $55.4 million §  EyeGate’s ownership on a fully diluted basis, assuming all options granted and exercised and all

warrants exercised illustrated below:


Table of Contents




§ Wrap-up


So you have an idea!!!

13

§  Communicating to target audience

•  Friends & Family

•  Angel investors

•  Venture capitalists

•  Strategic investors

•  Institutional investors



14

§ Mission Statement

PURPOSE

Who Cares?



15


Vision Statement "Preservation of sight" was the driving force behind the

founding of InSite Vision in 1987 and remains so today. We pursue that vision through the development of innovative

technologies and products. Advancing the treatment of eye disease guides our resource investments and the search

for more effective "solutions for sight." We are committed to providing these solutions to patients and physicians and, in doing so, building the long-term value of InSite Vision for

our global shareholders and partners.

This statement could be talking about any ophthalmic company!



16


•  pSivida is a leader in the development of miniaturized, injectable, drug delivery systems.

Who Cares?

2 steps away from answering question



17


focused on treating unmet ocular medical needs with the EyeGate® II Ocular Drug Delivery System, a non-invasive drug delivery technology that has the potential to treat multiple ocular diseases.

addressing the need for an alternative mode of ocular drug delivery because there are safety and efficacy drawbacks posed by current ocular delivery applications, such as eyedrops, injections or implants, which are hindered by low bioavailability, collateral toxicities, sight-threatening infections and/or retinal damage.

General!!

Who cares??



18


§ Non-compliance is the main cause of treatment failure which leads to temporary or permanent loss of vision.

§ Low patient throughput limits number of patients treated and limits revenue for doctor

Who cares??

§ developing therapeutics designed to address two major issues in the ophthalmic space, patient compliance and patient throughput.

1 step away from answering question



19


Organize the world’s information and make it universally accessible and useful.

GOOGLE



20


Committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services.

APPLE


Moving Forward

21

§ Business plan and executive summary • Tells a story

• Problem > your solution • Market opportunity • Key investment highlights


Cash

22

§ Sources of cash •  Revenue

•  Non-dilutive

•  Debt •  Non-dilutive and/or dilutive

•  Equity •  Dilutive

•  Strategic partnership •  Non-dilutive and/or dilutive

The Leader in Ocular Drug Delivery 23

….figure out what you want to be when you grow up

VC’s

…..understand who you are and

The Leader in Ocular Drug Delivery 24

§  Realizing ROI requires exit •  IPO? •  M&A?

§  The exit path will influence valuation and deal terms

VC’s

Friday.

Ten-Year Venture Capital Returns Continue To Slide

Creating Value


VC’s

25

§ Valuation

What value are you willing to accept????

§ Valuation •  Multiple •  ROI •  Comparable company analysis •  Net present value


VC’s

26

§ Term sheet •  Liquidation preference

•  Multiple liquidation preference

•  Anti-dilution: full ratchet vs weighted average

•  Pay-to-play provision

•  Drag and tag alongs

•  Incentive plan (options): limited exercise period, reverse vesting

•  Board seat


VC’s

27

§  Board seat

•  Alignment between investor and management

•  Exit: IPO vs. M&A

•  Stand-alone or integrated


Table of Contents




§ Wrap-up


Success?

29

Characteristics required??? •  Fear of failure •  Drive or ambition

•  Curiosity •  Desire for learning

•  Discipline – tenacity

•  Diplomacy •  Leader

•  Belief

Documents

Stories in Entrepreneurial Financestonehillblogs.org/clubs/fma/wp-content/uploads/2011/11/Stephen-Fr… · Dry Eye, and Scleritis Significant Market, Global Uveitis Therapeutics Market