Making Cancer More Treatable

Company Overview: Ruchi Shah, CEO

Research and Development: Ramola Chendvankar, CSO

Marketing and Commercialization: Mridula Shukla, CMO

Financial Outlook: Jennie McCollum, CFO

Company Overview

• Start-up Biotechnology Company• Orphan Drug (4000 people in the

US)• Specializes in the Development of

drug against CML: LeukX• Aims to triumph over the

resistance developed towards Gleevec

• Clinical Trials: Phase I • Expected sales of $ 13M in 2012

About the Company

Company Structure LLC

Location Rockville, MD

Science Advisory Board Dr. Jack Chirikjian

Dr. Milton Brown

Venture Capitalists $14,000,000

Exit Strategy IPO

Acquisition

Intellectual property

• The technology belongs to

Georgetown University and has

been patented in 2005• Up-front fees: $ 50,000• 2% of sales

TM

TM

Chronic Myeloid Leukemia

• Unregulated growth of Myeloid cells in the body.

• 40% people have developed resistance towards drugs available.

• Philadelphia Chromosome

• P210 protein is produced which acts as tyrosine kinase domain.

• Activates series of proteins

• Genetic instability.

Gleevec Ineffectiveness

• Bcr-Abl gene amplified

• Over expression of the protein.

• Mutations in kinase domain which affects the Gleevec binding.

• Allosteric mutations causing conformational change. • Ineffective in blast crisis.

• Heart failure in some patients

LeukX

• Doxorubicin

• Prevents amplifications & replications of Bcr-Abl gene.

• Natural compound B phenyl isothiocyanate.

• Degradation of the over expressed protein.

• Activates transcription factor for the differentiation of proteins in blast crisis stage.

• Heterocyclic compound called 2 phenyl amino pyrimidine that acts as kinase inhibitor.

• Binds to T315I mutated domain

Research studies

• Compared the efficacy with Imatinib, Disatinib, Nicotinib.

• T315I mutated cell lines were obtained treated with LeukX.

• Binds tightly to the T315I mutated kinase domain.

• Activates transcription factor for differentiation of immature cells in blast crisis stage.

• P210 level compared on electrophoresis

Clinical Research

• Phase I

• Determine side effects of the LeukX on healthy patients.

• Minimum Side effects.

• Effect on left ventricle of the heart Monitored.

• Phase II & III

• Both Imatinib resistance and imatinib sensitive patients would be tested.

• Different doses of the drug would be administered

• Efficacy would be compared with Gleevec, Sprycel & Tasigna.

Competition

Gleevec Sprycel Tasigna

Novartis Bristols-myers Squibs

Novartis

1800 millions in 2008

142 millions in 2008

29 million in 2008

Not effective in Blast crisis

Not Effective in Blast crisis

Not effective in Blast crisis.

Not effective against T315I

mutation.

Not effective against T3151

mutation.

Not effective in T315I

mutation.

Our Product & Patients

LeukX is a unique treatment for Chronic Myeloid Leukemia (CML). It works by targeting, and turning off, specific proteins in cells that cause the cancer cells to grow and multiply

CML mostly affects adults, although 2 percent of CML patients are children.

Kancure would target the patients with normal genes, mutated genes T315I and patients those who are within the age range of 45-80

Our Product & Patients

Marketing Channels

http://www.Kancure.com

Marketing Channels

LeukX Marketing Plan - Stages

Completed: Pre-Clinical Trial

LeukX Development Timeline

Marketing Activity

2009Phase I

Market Research

Fund Raising Managing

relations with investors

2010Phase II

2011Phase III

2012Product Launch

Develop Product Profile

Research on alternative uses of LeukX

Plan Brand campaign

Develop Marketing message

Start Product Promotion

Plan Launch Campaign

Manage sales and distribution

Product Launch Campaign

Monitor performance

2 Resources 3 Resources 5 Resources 7 resourcesMarketing Team

LeukX Price ComparisionPrice of 1-month of Therapy

$2,700

$2,800

$3,300

$3,600

$0 $1,000 $2,000 $3,000 $4,000

LeukX

Tasigna

Gleevec

Sprycel

LeukX Competitor & Pricing

Competitor Sales Volume

Gleevec 1,800 Million

Sprycel 142 Million

Tasigna 29 Million

LeukX Price: $30 per 100 mg

“Oncology is the top of the bill when it comes to new products in development..”USA Today – May 2008

CML Drug market was more than $7 billion globally in 2008

LeukX Sales Forecast

Assumptions: CML Drug Market was $7 Billion in 2007 100% of the sales will be from US

Markets in 2012 LeukX sales forecast is based on Gleevec

sales in the last 4 yrs LeukX will capture a conservative 0.22%

of Gleevec sales, which is projected to be $5.9 Billion in 2012

LeukX Sales Forecast

Year 2012 2013

Sales ($) $ 13 M $ 15 M

SWOT Analysis

Strengths Effective

treatment for CML

Competitive Pricing

Weakness Early

phase development

Unknown brand

Opportunity Growing

Market for Cancer Drug

Possibility of alliances & collaboration

Threats Competitive

Marketplace Current

market conditions – reduced funding

Sources of Capital

Investment Owner 1 $60,000 Investment Owner 2 $60,000 Investment Owner 3 $60,000 Investment Owner 4 $60,000 Angel Funds $300,000 VC Funds $14,000,000 SBIR Grant 1 (NIH) $100,000 SBIR Grant 2 (NIH) $750,000 FDA Orphan Drug Grant $200,000 Total $15,590,000

Projected Income Statement

2009 2010 2011 2012 2013RevenueGross Sales - - - $13,140,000 $15,000,000FDA Orphan Drug grant 200,000 200,000 200,000 - -Gov Grants $100,000 $750,000 - -Angel Fund $300,000Total Revenue $600,000 $950,000 $200,000 13,140,000 15,000,000

Operating ExpensesWages $440,000 $440,000 $440,000 $462,000 $485,100Payroll Taxes $88,000 $88,000 $88,000 $92,400 $97,000Equipment $100,000Legal Fees $20,000 $20,000 $20,000 - -Marketing and Advertising - 250,000 $350,000 $420,000 $660,000Insurance $5,000 $5,000 $5,000 $5,000 $5,000Rent & Utilities $100,000 $100,000 $100,000 $100,000 $100,000Liscensing Fee $50,000 - - $2,628,000 $3,300,000Research and Clinical Trials $163,734 $226,824 $455,192 - -Outsourcing & - - 1,500,000 $2,628,000 $2,860,000ManufacturingTotal Expenses 1,047,134 $1,129,824 $1,458,192 $6,335,400 $7,507,100

2009 2010 2011 2012 2013

Sales -$ -$ -$ 13,140,000$ $15,000,000Cost/ Goods Sold (COGS) - - - $6,335,400 $7,347,100Gross Profit -$ -$ -$ 6,804,600$ $7,652,900

Operating ExpensesSalary (Office & Overhead) 440,000$ 440,000$ 440,000$ $462,000 $485,100Payroll (taxes etc.) $88,000 $88,000 $88,000 $92,400 $97,000Research and Clinical Trials $163,734 $226,824 $455,192 - -

Outsourcing $ Manufacturing - - - $2,628,000 $2,860,000Advertising - 250,000 350,000 420,000 $500,000Accounting and Legal 20,000 20,000 20,000 - -Rent 100,000 100,000 100,000 100,000 100,000Liscensing Fee $50,000 - - 2,628,000 3,300,000Insurance 5,000 5,000 5,000 5,000 5000Total Expenses 1,047,134 $1,129,824 $1,458,192 $6,335,400 $7,347,100

Profit Projection

Break Even Analysis

• Fixed Costs: $3,635,150

• Variable Cost (Per Unit): $17

• Selling Price (Per Unit): $3000

• Time Period: Annually

• Annually Break Even: 2,452 units

• Break Even In 1st Year of Sales

Break Even Analysis

VC Funding

Round # Of Shares %Company Price/Share Valuation

Initial 1,000,000 100% $ .54 $540,000

VC Phase I 1,350,000 74.07% $ 2.963 $4 M

VC Phase II 1,900,000 52.63% $ 7.37 $10M

Total: $14,000,000

Thank You