Harrow, Inc. · NASDAQ:HROW
Harrow — Imprimis Pharmaceuticals — Investor Presentation (August 2017)
30 slides from Harrow's investor presentation, Aug 28, 2017
Slide 1: Imprimis August 2017
NASDAQ: IMMY IMprimis August 2017
Slide 2: Safe Harbor
Safe Harbor This presentation contains express “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assump
Slide 3: Company Snapshot, Performance & Planned Growth, Other Assets
Company Snapshot Performance & Planned Growth Other Assets and Businesses = Pharmaceutical company focused on the three largest U.S. ophthalmic markets: Cataract, Glaucoma, Dry Eye = 1,700+ ophthalmology customers & growing = IP focused, 50+ patents and pending patent applications = Cash-based 90% o
Slide 4: Traditional Pharmaceutical Value Chain
Traditional Pharmaceutical Value Chain “6 & @ & &-0 MDs PRODUCTION PHARMACY INSURERS WHOLESALERS — PHARMACY Patient Hospitals BENEFIT RETAILERS ASCs MANAGERS Imprimis Value Chain Dispensing at Imprimis 2. MDs Hospitals ASCs
Slide 5: 100% Transparency
100% Transparency = No insurance company, pharmacy benefit manager (PBM), wholesaler or distributor middlemen = No formulary rejections, discount cards or rebates = No payment submittals, investigations or PBM clawbacks = Noneed for “Patient Assistance Programs’ with affordable pricing Imprimis Valu
Slide 6: 2017 Expected Margin Expansion
2017 Expected Margin Expansion Production Efficiency = FDAregistered/inspected cGMP production facility in New Jersey opened in February 2017 = $5M+ investment in equipment and automation = Increased batch sizes and unit yields per batch = Lower labor costs (fewer FTEs; lower-cost personnel) = Order
Slide 7: Revenue Performance
Revenue Performance (in thousands) mNon-Ophthalmology Sales $7,000 "OPhthalmology Sales $6,857 $6,097 $6,000 $5,793 $5,000 $4,907 $4861" $4,381 am $3,503 $3,000 $2,683 $2,000 $1,967 $1,563 “ oO $0 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 ss Revenue nia—«198% —S
Slide 8: Ophthalmology Business
Slide 9: Dropless Cataract Surgery
Dropless Cataract Surgery® Dropless Therapy? What is it? = Patent-pending one-time steroid/antibiotic combination injection at the end of cataract surgery = Disrupting the $1B+ eye drop market Why is it important? = Substantially reduces or eliminates the need for post-operative eye drops = Lower-co
Slide 10: LessDrops Combination Drop Therapy
LessDrops® Combination Drop Therapy LessDrops® =! Standard of Care ry: i What is it? = Patent-pending combination drop therapy used following cataract and refractive procedures: = Antibiotic + Steroid = NSAID + Steroid = Triple Drop® = Disrupting the $1B+ eye drop market Why is it important? = Lower
Slide 11: IV Free Conscious Sedation
IV Free™ Conscious Sedation MKO Melt® What is it? = Patent-pending MKO Melt® sublingual sedation = Combination midazolam, ketamine & ondansetron = $15 per Melt; sold in 1, 2 or 3 Melt packs Why is it important? < = Conscious sedation vs. intravenous sedation = Growing customer base with over 150 pre
Slide 12: Imprimis Dropless & MKO Melt Experience
Imprimis Dropless ® & MKO Melt ® Experience For Cataract Surgery PRE-SURGERY = MD prescribes patient with pre-and = No pre- or post-surgery drops yg post-surgery drops prescribed : + Dropless Therapy? intravitreal Ferantialy Increased recovery time due } injection is administered following cataract
Slide 13: Simple Drops Glaucoma Eye Drops
Simple Drops™ Glaucoma Eye Drops Simple Drops™ What is it? « = Simple Drops™ portfolio of combination drops | for glaucoma launched in May of 2017 = Preservative-free, may reduce burning and stinging common in current drops = Proprietary technology may increase corneal a penetration and length of re
Slide 14: Dry Eye Disease Platform
Dry Eye Disease Platform Chronic, non-surgical condition Sat or Proprietary formulations What is it? = Patented Klarity™ platform for proprietary topical eye drop formulations = Patent-pending oral formulation combining nutraceutical and antibiotic = Launch in Q3 2017 Why is it important? = Dry Eye
Slide 15: Total Tears For Dry Eye Disease
Total Tears™ For Dry Eye Disease What is it? = Topical drops for Dry Eye Disease patients who do not respond to traditional treatments Customizable autologous formula = This customizable solution incorporates an individual’s serum, found in their blood, which includes antibodies and growth factors =
Slide 16: Ophthalmology Strategic Sales Partners
Ophthalmology Strategic Sales Partners <> PRECISIONLENS = Precision Lens sells and distributes ophthalmology focused devices - more than 60% market penetration with intraocular lenses (IOLs) in the markets they serve = A dedicated sales team deploying Imprimis’ entire ophthalmic portfolio to physici
Slide 17: Other Markets & Businesses
Slide 18: Eton Pharmaceuticals
Eton Pharmaceuticals 505(b)(2) Spin-Out What is it? = 505(b)(2) focused development stage company Spun-out of Imprimis June 2017 ($20M Series A) elon = Funded and managed separately from Imprimis Why is it important? pharmaceuticals = Imprimis holds passive 27% equity stake in Eton = 6% royalty on s
Slide 19: Surface Pharmaceuticals
Surface Pharmaceuticals What is it? = 505(b)(2) development stage company focused on ocular surface disease patented therapeutics Surfa C ©& «Targeted spin-out within the next 12 months = Will be funded and managed separately from Imprimis Why is it important? = Transaction architecture likely simil
Slide 20: Integrative Medicine: Ascorbic Acid, Curcumin & Artesunate
Ascorbic Acid, Curcumin & Artesunate 24% of total 2016 revenues imprimis Integrative Medicine What is it? = Integrative medicines for oncology, autoimmune diseases and chronic infectious diseases = Leading medications include ascorbic acid (non-corn source), Vitamin B-complex, and artesunate (lyophi
Slide 21: Injectable For Erectile Dysfunction
Injectable For Erectile Dysfunction Tri-Mix Injectable What is it? = Tri-Mix (phentolamine, papaverine and prostaglandin) injectable for erectile dysfunction (ED) Why is it important? = Recommended treatment by the American Urology Association (AUA) = Lower-cost vs. standard of care oral medications
Slide 22: Summary
Slide 23: Imprimis Value Proposition
IMPriMIS p Value Proposition Ophthalmology Focused Commercial products in the 3 largest U.S. ophthalmic drug markets = Cataract $1B = Glaucoma $2B = Dry Eye $2B Products and Market Share + IP focused; 50+ patents or pending patents (US & Intl) for our formulations = Consistent growth in ophthalmolog
Slide 24: Company Profile
Company Profile IMPFIMIS p Trading symbol: NASDAQ: IMMY Price per share (8-1-2017): $2.50 Stock price range (52-week): $1.65 - $4.69 Avg. daily Q2 trading volume: 216,000 shares Market cap: $50 million Shares Outstanding: 20.1 million Insider Beneficial Ownership: 13%* “Recent additions by CEO, CFO,
Slide 25: References and Appendix
Slide 26: References
References 1. Andrew Chang & Co LLC. Analysis of the Economic Impacts of Dropless Cataract Therapy on Medicare, Medicaid, State Governments, and Patient Costs (2015, October). Retrieved January 5, 2016, from hitp:iwww improvedeyecare orgiCSIE_Dropless_Economic Study pdf 2. Fisher, B. L.,& Potvin, R.
Slide 27: References
21 22. 23. References Irwin, K (2012, December 10) Prostate cancer now detectable using imaging-guided biopsy, UCLA study shows. Retrieved January 08, 2017, from newsroom ucla edul ste -cancer.now-detectable-241575 Sklavos, M.M. Spracklen, C.N., Saflas, A. F., & Pinto, L.A. (2014, February 23). Does
Slide 28: Drug Combination IP
imprimis Drug Combination IP SSP Technology® allows for mixing of active drugs into suspensions for: Cataract surgery Refractive surgery (rcinotone ae TE hoes (18:t)mgimt sterit! Without SSP Technology®, large irregular clumps of active drugs persist, not usable as injection or eye drop 28
Slide 29: Published Clinical Data
Published Clinical Data Tyson, S. L., et al. (2017, January). Clinical outcomes after injection of a compounded pharmaceutical for prophylaxis after cataract surgery: a large-scale review. Current Opinion in Ophthalmology. No major intraoperative complications associated with the transzonular inject
Slide 30: Imprimis
IMprimis Imprimis Pharmaceuticals (NASDAQ: IMMY) 12264 El Camino Real, #350 San Diego, CA 92130 (858) 704-4040
Imprimis Pharmaceuticals — Investor Presentation (August 2017) on 6ix