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NewPath Molecular Research Investor Overview Biotech and Money Feb 2015 Dr Elizabeth Farrant Slide 2 Contract Discovery Research The Market Opportunity Outsourcing of discovery services is a growing global market Predicted to grow to $21Bn by 2016 $4.5Bn of this is predicted to be chemical synthesis Market Evolution In recent years, outsourcing has been driven by pressures to improve the productivity of R&D spend Reduced internal R&D capability Requirement for fungible contract resource on projects Increased outsourcing to lower cost economies However, increasingly, wage inflation (lower cost economies)and competition (higher cost economies) is reducing the differential Outsourcing decisions are increasingly made on the basis of competency rather than cost Biomarket Trends 2012 Vol 32 No 11 Slide 3 The Innovation Gap in Pharma Pharma has seen: Reduced numbers of innovative products Increasing costs to market for products Shorter exclusivity due to me too products The low hanging fruit drug targets have been addressed New targets are difficult to address with current approaches There is unfulfilled demand in pharma and biotech for innovative chemical matter A consequence of outsourcing has been to reduce chemical innovation in small molecule research Y. L. Bennani, Drug Discovery Today, 2011, Vol 16, p 779 Dr Youssef Bennani, Vertex: Slide 4 NewPath Molecular The 21 st century chemistry lab NewPath is commercialising the research of Prof S Ley (Cambridge University) Using modular machine assisted chemistry to make the right molecules, not the easy molecules Client Example Client 1 have discovered a complex molecule with promise in a key unmet medical need Production using current technologies is not commercially viable NewPath are developing an innovative, commercially viable, route to the molecule to enable innovation in a key unmet medical need Slide 5 The Founders Prof Steve V. Ley CBE FRS FMedSci Involved in 3 spin-out companies Consultant to 6 major pharmaceutical companies Dr Nikzad Nikbin (CTO) 8 years developing machine assisted synthesis techniques in the University of Cambridge Innovative Technology Centre Dr Elizabeth Farrant FRSC (CEO) 17 years experience in Pharma and contract research medicinal chemistry services Andrew MacCormack 17 years at JP Morgan Active investor in numerous start-ups, most notably Intervate Limited, a renewable energy company Slide 6 The Business Model Fee for Service revenue model FTE rate based Already secured contract to cover first 15 months operating costs Seeking 500k seed funding to: accelerate the development and IP protect the machine assisted chemistry lab Scale the business in year 3 PROFIT & LOSS STATEMENTFY2015FY2016FY2017FY2018FY2019 Revenues CRO Revenues292,500390,1331,446,6673,402,0003,724,000 Grant Revenues16,84618,84115,40012,58710,288 Total Revenues309,346408,9741,462,0663,414,5873,734,288 Direct Costs Consumables9,00013,20048,000 Licensing / Royalty8,77511,70443,400102,060111,720 Software18,00024,00036,00048,00072,000 Equipment Operations & Maintenance9,60030,72045,12064,32088,320 R&D Expense00000 R&D Out-sourcing10,50021,000000 Consumables3,0006,000 Direct Costs58,875106,624178,520268,380326,040 Personnel194,985255,905998,2671,506,5051,544,168 Gross Operating Profit / (Loss)55,48646,445285,2791,639,7021,864,080 Overheads Facilities5,10075,000105,000150,000180,000 Insurance5,0406,13529,24168,29274,686 Professional Fees1,2006,13521,93151,21956,014 IP2,0405,04012,000 Business Development7,2006,00024,000 Training, Periodicals, Publications1,3801,8002,1003,000 Bank Charges0600 1,200 Overheads21,960100,709194,872309,711350,900 EBITDA33,526(54,264)90,4071,329,9911,513,180 Slide 7 For more information: Elizabeth Farrant farrant.elizabeth@gmail.com +44 (0)7930 853662