Investor Update | July 2013
The future of drug discovery has arrived
Reducing development time, cost & risk
2 TSXV: COT
Disclaimer
When used anywhere in this presentation, whether oral or written, the words expects, believes, anticipates, estimates and similar expressions are intended to identify forward-looking statements. Forward-looking statements may include statements addressing future financial and operating results of Critical Outcome Technologies Inc. (COTI).
COTI bases these forward-looking statements on its current expectations about future events. Such statements are subject to risks and uncertainties including, but not limited to, the successful implementation of COTI’s strategic plans, the acceptance of new products, the obsolescence of existing products, the resolution of potential patent issues, competition, changes in economic conditions, and other risks described in COTI’s public documents such as press releases and filings with the Toronto Stock Exchange and the Ontario Securities Commission.
All forward-looking statements are qualified in their entirety by the cautionary statements included in this document and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this presentation. These forward-looking statements speak only as of the date of this presentation.
3 TSXV: COT
Investment highlights
1
2
3
Proprietary technology reduces time, cost & risk of bringing new drugs to market
Two-pronged commercial validation and revenue strategy
Actively pursuing licensing of lead cancer drug candidate (COTI-2) with Pharma – leading to profitability
4 TSXV: COT
Conventional drug development is a long & expensive process characterized by a high risk of failure
11 – 15 years
$1 billion or more
1 FDA approval 4
5 TSXV: COT
Years
Pre
clin
ical
De
velo
pm
en
t St
ep
s • Reduce drug discovery timeline by 1.5 - 3 years
• Save significant $$$
• Increase revenue period under patent protection
We rapidly accelerate drug discovery
6 TSXV: COT
CHEMSAS® - competitive advantage
6 TSXV: COT
Proprietary technology
Computational replication of traditional ‘wet lab’ drug discovery process
Failed attempts occur in computer simulations, not the ‘research bench’
Higher probability of clinical & commercial success
7 TSXV: COT
Two-pronged commercialization strategy
1
2
R&D collaborations for revenue & 3rd party validation of the CHEMSAS® platform
Licensing our own drug compounds
8 TSXV: COT
Typical CHEMSAS® R&D collaboration
Partner has specific novel drug target
Receive an upfront development fee from Partner and build a compound library
Library testing and evaluation at Partner’s expense
We retain IP ownership of compounds and all data
At agreed milestone, Partner proceeds with development under a license with upfront, milestone, and royalty payments
9 TSXV: COT
R&D collaboration: Western University
Financial terms $25k upfront cash + 50/50 share of IP & future revenue
Costs
COTI finds compounds; Western tests
Progress Compounds identified and positive initial tests
Revenue timing
2014 at earliest
10 TSXV: COT
R&D collaboration: Delmar Chemicals
Financial terms 50/50 share in revenue
Costs
COTI finds compounds; Delmar synthesizes
Progress Compounds passed initial pharma screen; now in synthesis
Revenue timing
2014
11 TSXV: COT
R&D collaboration: Major Pharma
Financial terms Option to license – upfront payment, milestones and royalty
Costs
COTI finds compounds, optimizes & synthesizes; Pharma tests
Progress Initial compounds identified; step 1 of 2 testing nearing completion
Revenue timing
Early 2014
12 TSXV: COT
Licensing our own compounds
Actively pursuing licensing of lead cancer drug candidate, COTI-2, with a Pharma Company in a transaction making us immediately profitable
Other internal drug development projects in queue (i.e. AML)
13 TSXV: COT
About COTI-2
Effective against cancers with mutations of the p53 gene
> 50% of all human cancers have a p53 mutation
P53 mechanism of action confirmed by Dr. Gordon Mills at the University of Texas, MD Anderson Cancer Center
In final two-species toxicity studies prior to FDA filing in late 2013 enabling human trials
14 TSXV: COT TSXV: COT
COTI-2 intellectual property overview
4 U.S. patents granted – strengthening COTI-2’s value proposition
Patents pending in USA, Europe, Canada and Japan
Patent strategy preserves downstream patent filing opportunities for potential extension of market exclusivity
We own all intellectual property with no license obligations
15 TSXV: COT TSXV: COT
Why out license COTI-2?
Drug development is a long and expensive process
Our core competence is accelerating drug discovery, not drug development
Recent preclinical oncology licensing deals included:
o Upfront payments of approx. $5-$15 million o Milestone payments between $120-$288 million o Royalties on net sales
16 TSXV: COT
Summary
1
2
3
Proprietary technology reduces time, cost & risk of bringing new drugs to market
Two-pronged commercial validation and revenue strategy
Actively pursuing licensing of lead cancer drug candidate (COTI-2) with Pharma – leading to profitability
The future of drug discovery has arrived
Reducing development time, cost & risk
Top Related