Slide 1: PharmAthene Investor Presentation
Dedicated to a safer world PharmAthene Investor Presentation July 23 & 24, 2008
Slide 2: Safe Harbor Statement
2 2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This information may involve known and unknown risks, uncertainties and oth
Slide 3: Overview
3 Overview • Penetrating multi-billion dollar global biodefense market • Building highly competitive portfolio of next generation products • Pursuing focused acquisition strategy with significant revenue opportunities • Demonstrating strong track record obtaining significant government funding
Slide 4: Penetrating a Multi-Billion Dollar Market
4 Smallpox Rad/nuclear Botulism Other viruses Other Penetrating a Multi-Billion Dollar Market Project BioShield: $5.6B Market Opportunity Anthrax vaccines Anthrax anti-toxins Total anthrax share 36% or $2B opportunity targeted by PharmAthene Source: HHS Public Health Emergency Medical Countermeasure
Slide 5: Opportunities Beyond Project BioShield
5 Opportunities Beyond Project BioShield Department of Defense purchases $5B International purchases $6B Commercial purchases $1B Fortune 500 companies Leasing opportunities Total biodefense market opportunity ~$50B Project BioShield funding is only the tip of the iceberg $5.6B Actively pursuing add
Slide 6: PharmAthene's Strategic Advantage
6 PharmAthene’s Strategic Advantage • Focus - Biodefense market • Experience - Identifying high-priority government needs - Identifying and acquiring best-in-class products - Collaborating with government to develop and commercialize products • Success - Up to $485MM* in contracts and funding awarde
Slide 7: Overview
7 Overview • Penetrating multi-billion dollar global biodefense market • Building highly competitive portfolio of next generation products • Pursuing focused acquisition strategy with significant revenue opportunities • Demonstrating strong track record obtaining significant government funding
Slide 8: Best-in-Class Portfolio
8 Best-in-Class Portfolio 2 3rd Generation rPA Anthrax Vaccine 1 2nd Generation rPA Anthrax Vaccine 3 Anthrax Anti-Toxin Valortim® 4 Nerve Agent Prophylaxis Protexia®
Slide 9: 2nd Generation rPA Anthrax Vaccine
9 2nd Generation rPA Anthrax Vaccine • Highly purified recombinant version of Protective Antigen • Produces vaccine-induced antibody response comparable to current licensed vaccine Recombinant Protective Antigen (rPA) anthrax vaccine Characteristics Advantages • 3 dose intramuscular regimen vs 6 dos
Slide 10: Anthrax Vaccines Market Opportunity
10 Anthrax Vaccines Market Opportunity • rPA Anthrax Vaccine Opportunity – Initial DHHS procurement contract (rPA vaccine): 25MM doses – USG award date in RFP: December 31, 2008 – Potential market opportunity in RFP: $350MM - $600MM • Worldwide Anthrax Vaccine Market Source : analyst reports; compan
Slide 11: Best-in-Class Portfolio
11 Best-in-Class Portfolio 2 3rd Generation rPA Anthrax Vaccine 1 2nd Generation rPA Anthrax Vaccine 3 Anthrax Anti-Toxin Valortim® 4 Nerve Agent Prophylaxis Protexia®
Slide 12: 3rd Generation rPA Anthrax Vaccine
12 3rd Generation rPA Anthrax Vaccine • Government Requirement – Develop 3rd generation rPA-based anthrax vaccine with • Enhanced stability – maintain stability for 3 years at 35ºC • Improved potency – induce protective immunity in 2 or fewer doses • PharmAthene’s 3rd generation product – Room tempe
Slide 13: Best-in-Class Portfolio
13 Best-in-Class Portfolio 2 3rd Generation rPA Anthrax Vaccine 1 2nd Generation rPA Anthrax Vaccine 3 Anthrax Anti-Toxin Valortim® 4 Nerve Agent Prophylaxis Protexia®
Slide 14: Valortim – Anthrax Anti-Toxin
14 Valortim®– Anthrax Anti-Toxin • Fully human monoclonal antibody (MAb) • Potent anthrax toxin neutralizing activity • Mechanism of action appears similar to natural immune response Fully human monoclonal antibody (MAb) with a unique mechanism of action Characteristics Advantages • Capable of neutr
Slide 15: Valortim - Impressive Data Package
15 Valortim® - Impressive Data Package • Initial Phase I in humans complete; no SAE’s attributed to Valortim® • Multiple animal studies have demonstrated efficacy 56% At time of ECL for PA AG Monkeys Treatment 42% 48 hrs post-exposure Rabbits Treatment 88% 24 hrs post-exposure Rabbits Treatment 100%
Slide 16: Anthrax Anti-Toxins Market Opportunity
16 Anthrax Anti-Toxins Market Opportunity • Current options are inadequate - Antibiotics are ineffective - Vaccines are inappropriate for treatment • USG requirements established for anti-toxins - DHS Material Threat Assessment: 200,000 treatments - DHHS procurements to date • HGSI – 20,000 doses; $
Slide 17: Best-in-Class Portfolio
17 Best-in-Class Portfolio 2 3rd Generation rPA Anthrax Vaccine 1 2nd Generation rPA Anthrax Vaccine 3 Anthrax Anti-Toxin Valortim® 4 Nerve Agent Prophylaxis Protexia®
Slide 18: Protexia – Nerve Agent Prophylaxis
18 Protexia® – Nerve Agent Prophylaxis • Novel recombinant form of naturally occurring bioscavenger protein • Produced using innovative transgenic manufacturing platform Recombinant human BChE (Butyrylcholinesterase) Mimics natural “bioscavenger” Characteristics Advantages Over Standard of Care • Pr
Slide 19: Conventional Treatment Does Not Prevent Neurological Toxicity
19 Guinea pig exposed to only 1.5 x LD50 Soman and immediately given the conventional treatment of atropine / 2-PAM / Diazapam Conventional Treatment Does Not Prevent Neurological Toxicity Conventional Treatment • Only 50% of those exposed survived • Severe neurological deficits Source of the film:
Slide 20: Only Protexia Provides Superior Survival and Prevents Neurological Toxicity
20 Guinea pig pretreated with Protexia® and then 18 hours later exposed to 5.5x LD50 of Soman Only Protexia® Provides Superior Survival and Prevents Neurological Toxicity Protexia® Solution • 100% survival rate • No neurological deficits Source of the film: U. S. Army Medical Research Institute of C
Slide 21: Nerve Agents - Market Opportunity
21 Nerve Agents - Market Opportunity • Department of Defense Award – Awarded DoD advanced development and procurement contract – Total original potential value of up to $213MM* • $100MM in development funding • $113MM for procurement of initial 90,000 doses – Total revised contract value of up to $2
Slide 22: Overview
22 Overview • Penetrating multi-billion dollar global biodefense market • Building highly competitive portfolio of next generation products • Pursuing focused acquisition strategy with significant revenue opportunities • Demonstrating strong track record obtaining significant government contracts
Slide 23: Unparalleled Track Record in Biodefense
23 Unparalleled Track Record in Biodefense Established strong biodefense portfolio Building Significant DoD contract (Protexia®) up to $219MM* Includes major NIAID/BARDA contract $14MM Advanced development funding for Valortim® $25MM Total biodefense vaccines government funding up to $220MM* Total a
Slide 24: Clear Roadmap to Create Value
Clear Roadmap to Create Value Develop and position products for commercial uses 4 Develop multiple government users and non-government customers 3 Expand portfolio through strategic acquisitions 2 Continue to obtain procurement contracts and increase revenues 1
Slide 25: The Financial Resources to Fund Growth
25 The Financial Resources to Fund Growth • Strong cash position – $45.7MM at March 31, 2008 less: $10MM paid to Avecia at closing (4-2-08) Includes $17MM restricted cash and $18.7MM available cash (4-2-08) • Comparatively low cash burn rate – Net ~$1-2MM month, $4-5MM gross – Majority of program de
Slide 26: Key 2008-09 Value Creation Events
26 2008 H1 H2 2009 H1 H2 Key 2008-09 Value Creation Events Completed strategic acquisition Completed Valortim® manufacturing scale up File Protexia® IND Begin Protexia® Phase I c linical trial Potential 2nd gen rPA vaccine procurement contract Report Protexia® Phase I results Potential to begin 2nd
Slide 27: Summary
27 Summary • The market need clearly exists – Critical requirements, multi-billion dollar market • PharmAthene is positioned for success – Advancing three best-in-class, next-generation products • Strong track record validates our approach – Potential government funding/contracts of up to $485MM to