Presenting Gonexin

1
Presenting Gonexin
Providing hope through extension and enhancement
of life
MBA Consulting Team Larry Morkre Matt Narens Rick
Silva, Ph.D. Brian Weninger

• December 13, 2001

2
Concept

• Gonexin is a revolutionary, patented smart drug
  for cancer treatment. We have the expertise to
  guide Gonexin to commercial success in a market
  with huge profit potential.

3
Management and Leadership
Introduction Opportunity Technology Financial Summ
ary Questions

• Dr. Paul Jarosz
• Chief Operating Officer
• Involved in commercial development of 58
  pharmaceutical products
• Clinical development executive with Geneva
  Pharmaceuticals (Novartis), Johnson Johnson,
  and Syntex (Roche)

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Management and Leadership
Introduction Opportunity Technology Financial Summ
ary Questions

• Dr. Terry Nett
• Cofounder and board member
• Internationally recognized expert in GnRH biology

• Dr. Mike Glode
• Cofounder and board member
• Internationally recognized researcher in prostate
  cancer biology
• Consultant on clinical trials for Leupron and
  Abarelix

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Global Pharmaceutical Market 400 B
Introduction Opportunity Technology Financial Summ
ary Questions
2003
6
Industry Trends
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• Trend away from toxic to smart drugs
• Shift from healthcare spending to pharmaceutical
  spending
• Small R D firms have innovative advantage

7
Market Growth Potential
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ary Questions

• Up to 15 growth in human pharmaceutical market
• High risk begins at age 50
• Aging population

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Our Position
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Introduction Opportunity Technology Financial Summ
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Market Share Growth
79,000 late stage cases of prostate cancer
treated annually
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Marketing Strategy
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ary Questions

• Industry publications

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Marketing Strategy
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• Trade shows

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Marketing Strategy
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• Annual scientific and clinical meetings

• Dedicated direct sales team
• Web presence

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Bright Future
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• We are an innovative Research and Development
  organization
• Other potential indications for Gonexin
• Breast cancer
• Colon cancer
• Uterine cancers
• Pancreatic cancer
• Some forms of lung cancer

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The Product
Introduction Opportunity Technology Financial Summ
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• Gonexin

• Two therapeutic indications- Prostate Cancer
• Hormone therapy
• Chemotherapy

• Leupron, Zolodex, and Viadur only offer hormone
  therapy mechanism

• Other Epithelial Cancers

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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Gonadotroph
Non Target Cell
Receptor
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
Testosterone
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
Testosterone
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
Testosterone
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
Testosterone
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Normal Physiology
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
Testosterone
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Leupron
Receptor
Gonadotroph
Non Target Cell
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Hormone Therapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH
Receptor
Gonadotroph
Non Target Cell
Testosterone
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Gonadotroph
Non Target Cell
GnRH-Toxin
Receptor
Cancer
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Non Target Cell
GnRH-Toxin
Receptor
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
GnRH-Toxin
Receptor
Non Target Cell
GnRH-Toxin
Receptor
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Non Target Cell
Healthy Cell
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Chemotherapy Mechanism
Introduction Opportunity Technology Financial Summ
ary Questions
Non Target Cell
Healthy Cell
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Chemotherapy Mechanism
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ary Questions
Non Target Cell
Healthy Cell
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Chemotherapy Mechanism
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Non Target Cell
Healthy Cell
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Key to Success
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• FDA Approval
• Safety of treatment
• Efficacy of treatment

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Funding Development Schedule
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Profit Growth
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Profit
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Summary
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• Promising, patented smart drug
• Market of over 2.6 billion annually
• Precedence for capture of 80 of market
• Demographic shift will catalyze market growth
• Foundation for a management team with a track
  record of drug commercialization

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Questions
Introduction Opportunity Technology Financial Summ
ary Questions
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Questions
Introduction Opportunity Technology Expertise Fina
ncial Summary Questions
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Funding Required
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ncial Summary Questions
Year Funding Required Milestone Equity IRR
1 3 M Scientific Proof of Concept 17 45
2 5 M Drug Safety, Phase I 16.7 40
3 15 M Phase II 29.8 33
5 43.5 M IPOa Phase III 33 (96.5) 29
a 136 million premoney valuation
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Gonexin Price
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ncial Summary Questions
Hormonal Treatment Administer Insurance Cost Urologist Cost Difference
Gonexin Once 9,500 5,500 4,000
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Pricing Strategy
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ncial Summary Questions
Hormonal Treatment Administer Insurance Cost Urologist Cost Difference
Viadur Once/ Year 5,650
Surgery Once 4,000 N/A N/A
Lupron Depot Once/ Quarter 1,500 750 750
Zolodex Once/ Quarter 1,125 675 450
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Development Timeline
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ncial Summary Questions
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Development Timeline
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Introduction Opportunity Technology Expertise Fina
ncial Summary Questions
Exogenous Testosterone
Leupron
Testosterone levels
Removal of GnRH agonist Or antagonist
Abarelix (Planexis)
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Market
Introduction Opportunity Technology Expertise Fina
ncial Summary Questions

• Over 198,000 men diagnosed with prostate cancer
  each year
• 2nd leading cause of male cancer death in the US

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Earnings and Cash Flow
Introduction Opportunity Technology Expertise Fina
ncial Summary Questions