Slide 1: Forward-looking Statements
Forward-looking Statements - -------------------------------------------------------------------------------- This presentation contains “forward-looking statements” which are subject to certain risks and uncertainties that can cause actual results to differ materially from those described. Factors
Slide 2: Additional Information
Additional Information - -------------------------------------------------------------------------------- On August 17, 2006, Laddcap Value Partners LP (“Laddcap”) filed a definitive consent solicitation statement with the Securities and Exchange Commission (“SEC”) relating to Laddcap’s proposal to,
Slide 3: Introduction
Introduction - -------------------------------------------------------------------------------- - - Thank you for this opportunity to speak with you about Delcath Systems - - We are continuing to make significant progress towards our goal of developing the first approved, repeatable high-dose, organ
Slide 4: The Consent Solicitation
The Consent Solicitation - --------------------------------------------------------------------------------
Slide 5: Key Messages From Delcath
Key Messages From Delcath - -------------------------------------------------------------------------------- - - We are absolutely committed to maximizing the value of Delcath over the short- and long-term - - We have never been more excited about the long-term prospects of Delcath - - We have a cle
Slide 6: Key Facts
Key Facts - -------------------------------------------------------------------------------- DELCATH’s CURRENT TEAM - -------------------------------------------------------------------------------- - - Has delivered superior value to its shareholders compared to the Company’s peer group and market
Slide 7: Laddcap's "Takeover" Will Harm Delcath
Laddcap’s “Takeover” Will Harm Delcath - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- REMOVE: - -------------------------------------------------------------------------------- Delc
Slide 8: Superior Stock Performance
Superior Stock Performance - -------------------------------------------------------------------------------- Relative Performance October 21, 2001(1) to July 26, 2006 Med Tech Small Cap Index- (22)% Nasdaq Comp- 23% Delcath- 469% Oct ’01 Apr ’02 Oct ’02 Apr ’03 Oct ’03 Apr ’04 Oct ’04 Apr ’05 Oct ’
Slide 9: Laddcap's Poor Track Record
Laddcap’s Poor Track Record (1) - -------------------------------------------------------------------------------- Laddcap Value Partners Holdings Delcath 40% Other Holdings 60% Almost 40% of Laddcap’s fund is invested in one stock - Delcath LaddCap Fund vs. S&P SmallCap 600 Return 25.0% 20.0% 15.0%
Slide 10: We Are Listening And Responding To You
We Are Listening And Responding To You - -------------------------------------------------------------------------------- In response to shareholder proposals, we recently announced the following: - - Initiated a search for two new board members who meet our governance standards and strengthen key s
Slide 11: Delcath Accomplishments
Delcath Accomplishments - -------------------------------------------------------------------------------- NCI - Developed a deep, long-standing relationship with the Collaboration National Cancer Institute (NCI) - Obtained the NCI’s sponsorship as the lead site for the Melphalan Phase 3 trial - Lev
Slide 12: The Delcath Strategy
The Delcath Strategy - --------------------------------------------------------------------------------
Slide 13: Delcath's Goals and Strategy
Delcath’s Goals and Strategy - -------------------------------------------------------------------------------- GOALS STRATEGY Operational Complete Ongoing Studies - Work closely with NCI to add additional sites for Melphalan Phase 3 trial - Aggressively seek additional sites for Doxorubicin Phase 3
Slide 14: Near-term Milestones
Near-term Milestones - -------------------------------------------------------------------------------- GOALS NEAR-TERM MILESTONES Operational - NCI multi-center decision on Melphalan Phase 3 trial in September 2006 Complete Ongoing Studies - Complete Melphalan Phase 3 trial by end of 2008 (assuming
Slide 15: Deep Relationship with the NCI
Deep Relationship with the NCI - -------------------------------------------------------------------------------- - - The Delcath management team has developed a very close relationship with the NCI over the past six years - NCI has studied high dose liver therapy for more than 10 years - NCI approa
Slide 16: Deep Relationship with the NCI
Deep Relationship with the NCI The Delcath management team has developed a very close telationship with the NCI over the past six years — NCI has studied high dose liver therapy for more than 10 years — NCI approached Delecath for clinical study partnership — NCI Principal Investigator wanted to lea
Slide 17: NCI Reports on Delcath System
17 NCI Reports on Delcath System H. Richard Alexander, M.D. Associate Chair for Clinical Research University of Maryland Former Head of Surgical Metabolism Section of the National Cancer Institute Text of Sound Clip by Richard Alexander M.D.: Our interest in isolated perfusion started about eight ye
Slide 18: Summary of Ongoing Phase Trials
Summary of Ongoing Phase 3 Trials - -------------------------------------------------------------------------------- Melphalan Doxorubicin --------------------------- --------------------------- Start Date April 2005 June 2004 - -----------------------------------------------------------------------
Slide 19: Strong Development Pipeline
Strong Development Pipeline - -------------------------------------------------------------------------------- 2006 2007 2008 2009 --------------------------------------------------- 3Q 4Q 1H 2H 1H 2H 1H 2H ---------- -------------- ------------- ----------- PHASE 3 MELPHALAN NCI Multi-Center Decisi
Slide 20: Conclusions
Conclusions - --------------------------------------------------------------------------------
Slide 21: What Happens Next Is Up To You
What Happens Next Is Up To You - ------------------------------------------------------------------------------------------------------------------------------- 10/17/05 7/10/06 Laddcap files April 2006 6/7/06 Laddcap 8/16/06 13D stating it Laddcap 6/4/06 Fulcrum and withdraws Delcath hires may caus
Slide 22: What Happens Next Is Up To You
What Happens Next Is Up To You Observations: + Although Laddcap has put the Company in play and been relentlessly calling for a sale for almost a year, not one party has approached Delcath with interest in a merger or acquisition + Before 8/1/06, Laddcap’s only “strategic” suggestion was: engage an
Slide 23: Laddcap's Proposed "Strategy" vs. The Reality
23 L ADDCAP ’ S P R O P O S E D “ S T R A TE G Y ” ( 1 ) T H E R E A LIT Y “during the balance of fiscal year 2006, …establish at least two additional sites for Delcath’s ongoing Phase 3 trial using Melphalan” R ev i e w “ w h e t h e r co n t i n u i n g t o d ev o t e r e s ou r ce s t o t h e D o
Slide 24: A Sale Today Will Not Maximize Value
A Sale Today Will Not Maximize Value Impact of je Observations: Mecical Technology A = Only one medical technology company with no revenue was acquired in the last 10 years = The median enterprise value for medical device companies with less than $10 million in revenue is only 4100 4100 $9 million ©
Slide 25: Do NOT Vote The BLUE Card
5 2 e h T g n i g n i r B o T d e t t i m m o C s I d r a o B r u o Y h t a c l e D , t e k r a M o T m e t s y S r e v i l e D o T d e t c e p x E s I h c i h W e u l a V t n a c i f i n g i S s r e d l o h e r a h S o T S N , I T M B : e d u l c n i s e i n a p m o C e c i v e D l a c i d e M e g
Slide 26: Delcath Systems, Inc.
Delcath Systems, Inc. (NASDAQ: DCTH) The Future of High-Dose Drug Delivery 1100 Summer Street, 3rd Floor Stamford, CT 06905 (203) 323-8668 www.delcath.com
Slide 27: Delcath Systems, Inc.
Delcath Systems, Inc. (NASDAQ: DCTH) * , The Future of High-Dose Drug Delivery 1100 Summer Street, 3 Floor Stamford, CT 06905 (203) 323-8668 www.delcath.com