Champions Oncology, Inc. · NASDAQ:CSBR
Champions Oncology — Investor Presentation (September 2019)
22 slides from Champions Oncology's investor presentation, Sep 5, 2019
Slide 1: Investor Presentation July 2019
Investor Presentation July 2019 Confidential 1
Slide 2: Notice of Forward Looking Statements
Notice of Forward Looking Statements This presentation contains certain “forward-looking statements,” which include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. These forward-looking
Slide 3: Addressing Pharma's Needs
Addressing Pharma’s Needs The challenge with Oncology drugs is the high cost of clinical trials and low success rates • High Failure Rate • 93% of drugs fail in clinical trials • Skyrocketing R&D Costs • $1.2 billion average capital outlay per approved drug • Patient responses remain low even for ap
Slide 4: Champions Solution - Simulating Patient Response with PDX
Champions Solution- Simulating Patient Response with PDX A growing body of evidence demonstrates predictive value of 87% -94% for Champions TumorGraft® PDX models (1) Patient Implant Treatment Measurement Patient tumor is Mice are dosed Effect of each therapy implanted in immune- with different anti
Slide 5: An Immortalized Model of an Individual Patient
An Immortalized Model of an Individual Patient Models can be used repeatedly and each new and unique drug testing leads to an enriched data bank and more valuable models Patient Data Perpetual Tissue Stock Genomic Data 5 Nasdaq: CSBR
Slide 6: Champions' Core Offerings at a Glance
Champions’ Core Offerings at a Glance Core PDX Offerings IO Offerings In Vivo PDX Ex Vivo PDX HIS (IO) CLX/Syngeneic or Human tumor Human tumor implanted Human tumor implanted Human or mouse tumor implanted directly into directly into mice, then directly into mic, which grown in cell culture, then m
Slide 7: Champions Results
Champions Results We don’t use better mice. We use cheaper people. ✓ Over 1,500 Studies Completed • Ranging in size from $25,000 to more than $2M ✓ 300+ Customers • Including 18 of the top 20 pharma companies and 300 other pharma and biotech companies ✓ 30% Revenue Growth • 3 year cumulative annual
Slide 8: Champions History
Champions History • Ronnie Morris (CEO) and Joel Ackerman (Chairman) took over running the company and first invested in 2011 • Over the past 7 years, CSBR has been building infrastructure necessary to capitalize on growing demand ‒ TumorBank ‒ Extensive and Deep Pharma Relationships ‒ Lab Capabilit
Slide 9: Oncology Market Overview
Oncology Market Overview 9 9
Slide 10: Oncology Market Continues to Soar
Oncology Market Continues to Soar Oncology market will double between 2019 and 2024 • The oncology CRO market is expected to reach $44B by 2021 • Clinical flow market is expected to reach $1B by 2021 • In vivo Pharmacology CRO market is expected to reach $383M by 2021 Global Market Sizes by 2021 Glo
Slide 11: Market Positioning & Brand Strategy
Market Positioning & Brand Strategy Brand Image Strong scientific expertise in oncology at all levels Service Offerings Innovative & end-to-end Service Model Flexible & consultative operational delivery Customer Segments Offering a service & technology for all biopharma 11 CONFIDENTIAL
Slide 12: Current Strengths
Current Strengths ➢Portfolio of offerings: Strong market desire to utilize Champions for oncology Comprehensive suite of offerings with a growing market demand 12
Slide 13: Competitive Landscape for Existing Business Segments
Competitive Landscape for Existing Business Segments In Vivo Pharmacology Clinical Flow Cytometry Expensive Expensive Inexpensive Inexpensive Off the shelf Innovative Off the shelf Innovative 13 13
Slide 14: Unique Foundation: Academic/Clinical Network
Unique Foundation: Academic/Clinical Network Provides the foundation to innovatively work with Pharma Robust system for High impact R&D Clinical trial integration tumor acquisition collaborations Clinical operations CLIA-approved PDX test AML infrastructure Drug development Model development in Immu
Slide 15: Growing Revenue and Achieving Profitability
Growing Revenue and Achieving Profitability Generally Flat Annual Costs while Growing Revenue $30,000,000 • Breakeven results in FY 2018 $25,000,000 • Profitable results through Q3 FY 2019 $20,000,000 • 30%+ annual revenue growth since FY 2016 $15,000,000 • FY 2019 increase in expenses is due to $10
Slide 16: Financial Results
Financial Results 3 Months Ended April 30 12 Months Ended April 30 2019 2018 2019 2018 OPERATING REVENUE: Translational oncology solutions $7,465 $4,544 $25,790 $18,786 Personalized oncology solutions 253 378 1,277 1,455 TOTAL OPERATING REVENUE $7,718 $4,922 $27,067 $20,241 COSTS AND OPERATING EXPEN
Slide 17: Financial Results and Projections
Financial Results and Projections ($ in millions) FY 2020 Estimate FY 2021 Estimate FY 2022 Estimate FY 2023 Estimate Revenue $33.80 $43.94 $57.12 $74.26 Cost of Sales $16.25 $20.31 $25.39 $31.74 GP% 52% 54% 56% 57% R&D $4.73 $4.96 $5.21 $5.47 as a % of revenue 14% 11% 9% 7% Sales and Marketing $3.5
Slide 18: Current Capitalization and Valuation
Current Capitalization and Valuation Stock Price (July 31, 2019) $6.47 Shares Outstanding1 11.7 million Equity Market Cap $76 million Debt $0.0 Cash (July 31, 2019) $3.2 million 1 Excludes 2 million options (strike price approx. $2,25) and 2 million warrants (strike price approx. $6/share) 18 Nasdaq
Slide 19: Financial Results/Observations
Financial Results/Observations • GAAP reporting may distort underlying health of the business • Timing mismatch of revenue and expense recognition • Revenue is recognized only after model completion, generally 6 months after the study is signed • Expenses are recognized as incurred during the study
Slide 20: Investment Highlights
Investment Highlights • Opportunities to increase revenues and profitability ‒ Accelerating core business revenue growth ‒ New product offerings to increase revenues ‒ Profitable operating results for FY 2019 ‒ Company expects to remain annually profitable ‒ Monetize data bank • Insiders own 50+%; h
Slide 21: A Deep and Experienced Senior Management Team
A Deep and Experienced Senior Management Team David Sidransky MD – Founder and Lead Scientific Director • Professor of Oncology, Johns Hopkins Ronnie Morris MD – President and Chief Executive Officer • Experience - Founder and CMO of MDVIP Joel Ackerman – Chairman Board of Directors • Experience - P
Slide 22: Contacts
Contacts Company Contacts Ronnie Morris, MD, President and CEO Champions Oncology, Inc. Tel 201.808.8401 | championsoncology.com David Miller, CFO Champions Oncology, Inc. Tel 551.206.8104| championsoncology.com 22 Nasdaq: CSBR
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