Knight Therapeutics, Inc. · TSX:GUD
Knight Therapeutics — Investor Presentation (August 2018)
35 slides from Knight Therapeutics's investor presentation, August 2018
Slide 1: Building Canada's leading specialty pharmaceutical company
Building Canada’s leading specialty pharmaceutical company Knight Therapeutics Inc. (TSX: GUD) 1 August 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements for the Company and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forwar
Slide 3: A Knight is Born
A Knight is Born • Better a GUD Knight than a bad one • We never rest at Knight • May you always have a GUD-Knight • A GUD-Knight is GUD Medison • Knighting wrong with making money • GUD for Knight • Fun things happen at Knight • Knight loves a GUD pun • GUD Knight sleep tight • GUD time had by all
Slide 4: A Knight's History
A Knight’s History • Founded by co-founder & CEO of Paladin Labs Inc. – 19 years of consecutive record revenues – Share price increased from $1.50 to $151 per share – Market capitalization increased from $6 million to $3.2 billion • Knight’s first day was on February 28th, 2014 – The day Paladin’s s
Slide 5: Learning to Walk
Learning to Walk Significant Achievements Since Founding Since starting operations in 2014 with 2 employees, $1M in cash, a single therapeutic pending FDA approval, Knight: • Raised $685M at increasing valuations ($3.50, $5.25, $6.75, $8.00, $10.00 per share) • Received FDA approval for Impavido® in
Slide 6: Growth Strategies
Growth Strategies Firing on Multiple Cylinders Building a portfolio of innovative pharmaceuticals In-licensing or Acquiring Strategic Fund Strategic Lending For Product Rights Investments Product Rights Near Term Pipeline Long Term Pipeline Near and Long Term Pipeline • In-license innovative • Commi
Slide 7: Product Portfolio
Product Portfolio Expanding Pipeline of Innovative Pharmaceuticals 7
Slide 8: Product Selection Criteria
Product Selection Criteria Taking on Commercialization Risk, NOT Development Risk • Focus on later stage products (Phase II, Phase III or approved in foreign market) • Structure transaction to meet partner needs while protecting downside risk • Manage return to address associated risks Knight’s invo
Slide 9: Prescription Pharmaceuticals
Prescription Pharmaceuticals Product / Family Licensor Indication / Potential Indication Status in Territory Territory Rights1 Pain / Gastrointestinal Marketed in CAN and Approved Movantik® AstraZeneca Opioid-induced constipation CAN, ISR in ISR Probuphine™ Braeburn Opioid addiction Approved CAN Ten
Slide 10: Prescription Pharmaceuticals
Prescription Pharmaceuticals Product / Family Licensor Indication / Potential Indication Status in Territory Territory Rights1 Other Impavido® N/A Leishmaniasis Marketed Global2 60P family 60P Tropical diseases Phase 2 – Pending submission CAN, ISR, RUS, LATAM3 Advaxis family Advaxis HPV-associated
Slide 11: Consumer Products & Medical Devices
Consumer Products & Medical Devices Product / Family Licensor Description / Indication Status in Territory Territory Rights1 Pain associated with diabetic and peripheral Neuragen® N/A Marketed2 Global (Ex. U.S.) neuropathy Synergy family Synergy Various consumer health products Marketed CAN, ISR, RO
Slide 12: Movantik
Movantik® Treatment of opioid-induced constipation Background • Exclusive license agreement with AstraZeneca for Movantik® in Canada and Israel • First oral once-daily peripherally acting mu- opioid receptor antagonist (PAMORA) approved in Canada (launched in Canada in October 2015) Opportunity • Op
Slide 13: Probuphine
Probuphine™ Novel implant for opioid addiction Background • Exclusive in-license agreement with Braeburn for Canada • Subdermal implant for opioid addiction • Delivers buprenorphine continuously for six months • Received Canadian regulatory approval in April 2018 Opportunity • Small number of prescr
Slide 14: Tenapanor
Tenapanor Unique mechanism of action to treat IBS-C and Hyperphosphatemia Background • Exclusive in-license agreement with Ardelyx for Canada • First-in-class, proprietary, minimally absorbed, oral product • Completed two Phase III studies in IBS-C and one Phase IIb/III study in hyperphosphatemia Op
Slide 15: Ophthalmology Portfolio
Ophthalmology Portfolio Differentiated Therapies for targeted physicians Iluvien® Netildex™ (Implant for diabetic macular edema) (Combination antibiotic/steroid for eye infection/inflammation) • Exclusive in-license agreement with • Exclusive in-license agreement with Alimera Sciences SIFI for Netil
Slide 16: Women's Health Portfolio
Women’s Health Portfolio Two complementary unique late-stage women’s health products • Exclusive in-license agreement with TherapeuticsMD for Canada and Israel • Leverage of Knight’s balance sheet through $20M USD equity investment in TherapeuticsMD TX-004HR TX-001HR Estradiol vaginal softgel capsul
Slide 17: Impavido
Impavido® Treatment for Leishmaniasis (visceral, mucosal and cutaneous) Background • Acquired global rights from Paladin Labs at founding of Knight • Approved and licensed in Germany and Israel • Obtained US approval in March 2014 along with a Priority Review Voucher (PRV) • Sold PRV to Gilead for U
Slide 18: Strategic Fund Strategy
Strategic Fund Strategy Long-term Path for Product Rights 18
Slide 19: Fund Strategy Overview
Fund Strategy Overview Diversifying Access to Products • Strategy: Obtain preferential access to innovative pharmaceutical products while earning LP returns on investment • Investment: ~C$126M committed to invest with nine fund managers in Canada, Europe and US with proven track records of positive
Slide 20: Strategic Fund Portfolio
Strategic Fund Portfolio Commitments to Date Fund Amount Development Stage Geography Teralys C$30M VCAP Fund of Funds Canada Domain US$25M Early stage North America Forbion €19.5M All clinical stages Europe Sectoral US$13M Late stage to small cap Global Sanderling US$10M Early stage North America Ha
Slide 21: Strategic Lending
Strategic Lending Another Source of Products and Return on Investment 21
Slide 22: Strategic Lending Overview
Strategic Lending Overview Leveraging Knight’s Balance Sheet for Products • Strategy: Enter into secured loans with life-sciences companies in exchange for product rights for Canada and select international markets • Investment: Over C$145M loaned to 13 strategic loan partners generating double-digi
Slide 23: Strategic Lending Portfolio
Strategic Lending Portfolio Nominal Loan Interest Product Company Balance1 Rate Maturity Rights Synergy US$8.5M 10.5% 2020 600 Pharma US$5.3M 15% 2020 Crescita C$3.6M 9% 2022 Medimetriks US$1.5M 13% 2019 Pediapharm3 C$1.3M 12% 2020 Ember US$0.5M 12.5% 2016 Total2 C$28.6M 1 As at June 30, 201
Slide 24: Strategic Lending Benefits All
Strategic Lending Benefits All CRH Medical – US$30 Million Secured Loan CRH Knight • CRH stock price increased by more • Sold CRH shares received as part of than 3x within 4 months following loan for proceeds of ~C$9.9M loan • Raised C$27M of equity at $3.40 per • Successfully exited CRH loan follow
Slide 25: Security Provides Greater Value
Security Provides Greater Value Origin Biomed – C$850K Secured Loan • Following default, Knight acquired global rights to Neuragen® • Sold the US rights to Synergy CHC for proceeds of US$1.2M within 4 days of acquiring global rights • Knight markets Neuragen® in Canada – generating over $250K of ann
Slide 26: Rest of World Pharma
Rest of World Pharma Finding Other Knights 26
Slide 27: Rest of World Strategy
Rest of World Strategy Small Markets – Single Partner Vision Target Geographies • Rest of World (outside US, Europe, Japan, • High growth countries with expanding China) specialty pharma will continue to access and funding for medicines experience growth • Stable legal and regulatory systems, • Knig
Slide 28: GUD Medison
GUD Medison Investment in Medison Biotech • In September 2015, Knight acquired 28.3% ($83 million) of Medison Biotech (1995) Ltd. in exchange for 10% of Knight1 • Founded in 1996, Medison has grown to sales of approximately $216M in 2017 • Medison represents 20+ European and American pharmaceutical
Slide 29: Why Knight?
Why Knight? Partner of Choice for Canada and RoW 29
Slide 30: Knight's Management Experience
Knight’s Management Experience Building Bench Strength • Built Canadian business through collaborations with over 30 companies Partnering • Deals structured to meet partners’ needs • Significant experience in all aspects of the regulatory process Regulatory • ~30 submissions to Health Canada with a
Slide 31: Management Team
Management Team Jonathan Ross Goodman B.A., LL.B., M.B.A. Chief Executive Officer • Paladin Labs, Co-Founder, President & CEO • Procter & Gamble, Brand Management Samira Sakhia, CPA, M.B.A. President and Chief Financial Officer • Paladin Labs, Chief Financial Officer Amal Khouri, B.Sc., M.B.A. VP Bu
Slide 32: Board of Directors
Board of Directors Board Member Qualifications • Paladin Labs, Board member from 2008 to 2014 James Gale (Chairman) • Signet Healthcare Partners, Managing Director • Knight Therapeutics, Founder and CEO Jonathan Ross Goodman • Paladin Labs, Co-founder, former President & CEO • Knight Therapeutics, P
Slide 33: Financial and Strategic Assets
Financial and Strategic Assets Asset Description Cash $806.7 million1 ($5.65 / share) Key Marketed Products Movantik®, Impavido® Products Pending Launch Probuphine™ Products Pending Approval/Submission Iluvien®, Netildex™, Tenapanor, TX-004HR, TX-001HR Product Pipeline 20+ products in various stages
Slide 34: Summary
Summary • Proven ability to develop a rich pipeline of new products • Proven ability to secure profitable licensing and secured loan agreements • Proven track record of profitable growth • Experienced and dynamic management team • Financial strength to execute our strategy 34
Slide 35: Knight Therapeutics Inc. (TSX: GUD)
Building Canada’s leading specialty pharmaceutical company Knight Therapeutics Inc. (TSX: GUD) 35 August 2018
Knight Therapeutics — Investor Presentation (August 2018) on 6ix