Harrow, Inc. · NASDAQ:HROW
Harrow — Imprimis Pharmaceuticals — Craig-Hallum 6th Annual Alpha Select Conference 2015
31 slides from Harrow's conference presentation, Sep 17, 2015
Slide 1: Imprimis Pharmaceuticals
IMPRIMIS PHARMACEUTICALS NASDAQ: IMMY MARK L. BAUM, CEO CRAIG-HALLUM CAPITAL GROUP 67 ANNUAL ALPHA SELECT CONFERENCE SEPTEMBER 2015 imprimis
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 assum
Slide 3: State of Drug Development
STATE OF DRUG DEVELOPMENT The cost of developing a prescription drug that gains market approval is $2.6 billion. - Tufts Center for the Study of Drug Development, November 2014
Slide 4: Imprimis Business Model
IMPRIMIS BUSINESS MODEL Lower Costs Decreased Risk Shorter Time to Market imprimis .
Slide 5: Traditional Markets
TRADITIONAL MARKETS GENERIC COMPOUNDING BRANDED (Mylan: Qaspen Genentech Watsoo® | sg nas en tome ryo fot in RANBAXY REGENERON 7 fagoneat 5 SANDOZ Guero tb Novartis @Qualitest © merck _ EZ) moa = @w imprimis .
Slide 6: Imprimis Market Positioning
IMPRIMIS MARKET POSITIONING IP-FOCUSED GENERIC | compouUNDING BRANDED ote Mylar oes Lu, oom IMprimi —_ watson si) IN BB BD | cascn some TY Da.Rinor's PHARMACEUTICALS fofinenafotinwen RANBAXY REGENERON P S$ SANDOZ U Novartis Fornnesi @ciead ®@Qualitest © merck ) asec ena) @ imprimis .
Slide 7: Table of Contents
TABLE OF CONTENTS OPHTHALMOLOGY BUSINESS « Dropless Therapy™ Injectables » LessDrops™ Topicals UROLOGY BUSINESS « Interstitial Cystitis (IC) Formulations COMPOUNDING INFRASTRUCTURE FINANCIAL HIGHLIGHTS CONCLUSION AND PROFILE
Slide 8: Ophthalmology Business
OPHTHALMOLOGY BUSINESS = DROPLESS THERAPY™ INJECTABLES » LESSDROPS™ TOPICALS
Slide 9: Ocular Surgery Market
OCULAR SURGERY MARKET Cataract Surgery = >24M Americans age 40+ have cataracts = 3.6M cataract surgeries in 2013 (US) = 4.3M surgeries expected in 2017 LASIK and Refractive Surgery = 43M candidates for refractive surgery (US) = >35M LASIK performed since 1999 (Global) = >700,000 LASIK procedures ann
Slide 10: Standard of care is eye drop therapy
Standard of care is eye drop therapy NSAID Antibiotic Steroid $1B+ spent on eye drops in the US Eye drops = The Three C’s: High Cost Poor Compliance Call Backs to the MD's office Dissatisfaction with eye drops Imprimis
Slide 11: Dropless Therapy
DROPLESS THERAPY™ co PRR? ‘ramcinotone Act! \oxifloxacin HC! ‘= f 15:1}mg/mt. Str? Enabled by SSP Technology™ Antibiotic and anti-inflammatory prophylaxis Significant cost savings Eliminates compliance issues Decreases staff time Patients and MDs prefer Dropless Canadian out-license — Aug. 2015
Slide 12: Healthcare Savings Potential
HEALTHCARE SAVINGS POTENTIAL opless Therapy = >$1 Billion Savings COST PER THERAPY TOTAL COST Drop Therapy" 1 Dropless Therapy 2.8M of estimated 3.6M US cataract procedures are Medicare recipients. “Based on survey of Walmart.com in Nov. 2014 for Vigamox ($128.79), Durezol ($194.84) and Ilevro ($159
Slide 13: Dropless Market Growth
DROPLESS MARKET GROWTH «< & Dropless Weekly Unit Sales 3000 Market Share Est. 3.3% 2540 2500, 2000 HE 233 88 BB § gis Imprimis .
Slide 14: Dropless Market Factors
DROPLESS MARKET FACTORS ~~ 2 ta = = April 2015 Grail Research* (n=257) = = 57% MD awareness of Dropless — * 52% cite payor issue (MD or CMS) —7 )mgimt Stott * 91% adoption if made in FDA facility = Focused on near-term solutions » Working on CMS strategy » Registering NJ facility with FDA « Implemen
Slide 15: LessDrops Platform Drops
LESSDROPS™ PLATFORM DROPS Enabled by SSP Technology™ Combination drop platform = Antibiotic + Steroid « NSAID + Steroid = Triple Drop™ $420.95 = 50% fewer drops = Lower cost ($420 vs. $60) = Better compliance = Canadian License — Aug. 2015 = Guidance for Q2/Q3 — triple growth Imprimis ..
Slide 16: Urology Business
UROLOGY BUSINESS « INTERSTITIAL CYSTITIS (IC) imprimis .
Slide 17: Interstitial Cystitis (IC)
INTERSTITIAL CYSTITIS (IC) aia = Highly underdiagnosed = Up to 10M men and women (US) = 85% are women = Severe bladder pain/pressure (flares) » Urinary frequency - up to 60 times = High suicide rate = Elmiron® FDA-approved oral » 3-6 months to starting working * Compliance issues « Reported side eff
Slide 18: Hep-Lido-A (HLA)
HEP-LIDO-A (HLA™) 1027241) = Patented through 2026 = Heparin + alkalinized lidocaine = Developed by inventor of Elmiron® = Reimbursed by insurance = $60-$90 per dose « $150-$180 for procedure = Data supports relief of symptoms » Recommended option by the AUA = Mean HLA patient value ~$1,600/mo.
Slide 19: Compounding Infrastructure
COMPOUNDING INFRASTRUCTURE * IMPRIMISRX™ FACILITIES *» LAND AND EXPAND STRATEGY imprimis
Slide 20: ImprimisRx Facilities
IMPRIMISRX™ FACILITIES IMprimIs, = Three compounding centers » Irvine, CA (PCAB-accredited) » Randolph, NJ (PCAB-accredited) = Allen, TX = Licensed nationwide = New FDA outsourcing facility » cGMP production standards » 8,600 sq. feet, Roxbury, NJ » No individual Rx required * Interstate shipping *
Slide 21: Land and Expand Strategy
LAND AND EXPAND STRATEGY coms, * Investing in relationship-building * “Land” by solving pain points » “Expand” with generic “add-ons” * Strong margins on proprietary and non-proprietary offerings = Providing A+ customer service = Expand OUS through licenses Imprimis «
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS Imprimis ..
Slide 23: Financial Performance
FINANCIAL PERFORMANCE Revenue (in thousands of dollars) % Growth % Margin Dropless LessDrops HLA Q3 - 2014A Q4 - 20144 26% 39% $299 Q1-2015A 182% 36% $321 $7 Q2 - 2015A 26% 4T% $516 $96 $215 2015 revenue guidance: $12.0M - $13.5M Imprims .:
Slide 24: Conclusion
CONCLUSION " Capital efficient business model = Diversified intellectual property portfolio » Regulatory environment leading to consolidation » Rapidly growing ophthalmology franchise = Urology business accelerating growth » Land and expand strategy is working « Infrastructure in place to sustain gr
Slide 25: Company Profile
COMPANY PROFILE = Trading Symbol: NASDAQ: IMMY = Current Price per Share (9-11-15): $7.43 = Market Cap: $71 million » Shares Outstanding: 9.6 million = 52-Wk Range: $6.72 — $9.24 = Number of Employees: 94 = Headquarters: San Diego, CA = 503A Pharmacies: Randolph, NJ; Irvine, CA; and Allen, TX = 503B
Slide 26: Contact Us
CONTACT US Imprimis Pharmaceuticals (NASDAQ: IMMY) 12264 El Camino Real, #350 San Diego, CA 92130 858-704-4040 www.imprimispharma.com imprimi PHARMACEUTICALS 26
Slide 27: Patient Profile Surgery Day
PATIENT PROFILE 1 SURGERY DAY = 80 years old = Pharmacy switched Rxs = Arthritis = Cannot afford QD and BID drops (on Rx) = Patient brings QID generic dro} = Scoliosis = Lives alone = Social Security POST-OP SUMMARY * Difficulty administering = Higher cost to the patient = Confusion on regimen = Com
Slide 28: Patient Profile Surgery Day
PATIENT PROFILE SURGERY DAY = 80 years old = No eye drop Rxs = Dropless Therapy * Arthritis siinformed about injected intravitreally * Scoliosis Dropless Therapy = Lives alone = Social Security Our , scam = Eye looks quiet = Patient saves money = No infection = Patient happy = No inflammation = No c
Slide 29: Other IC Offerings
OTHER IC OFFERINGS era = Elmiron® to complement HLA = Physicians prescribe with HLA « Elmiron for long-term care » HLA for acute treatment option = PPS-DR™ » Pentosan polysulfate sodium Same active as in Elmiron Delayed release capsules BID dosing Less than 50% of Elmiron cost
Slide 30: Development Pipeline
DEVELOPMENT PIPELINE OPHTHALMOLOGY Evaluation Vee on) : Commercial Investigator Studies Dropless Injectables™ "4 LessDrops Topicals™ c — Needleless Sedation™ = [SS UROLOGY HLA™ —_—ssssSS Pentoxifylline (Peyronie's) ———==—_=>> Lyophilized Quad-Mix (ED) ——EEEE imprimis «
Slide 31: ImprimisRx Compounding
IMPRIMISRX COMPOUNDING 9 wens, * Randolph, NJ Licensed in 46 States Irvine, CA * Allen, TX imprimis
Imprimis Pharmaceuticals — Craig-Hallum 6th Annual Alpha Select Conference 2015 on 6ix