Knight Therapeutics, Inc. · TSX:GUD
Knight Therapeutics — Investor Presentation (June 2014)
26 slides from Knight Therapeutics's investor presentation, June 2014
Slide 1: Corporate Presentation June 2014
Corporate Presentation June 2014 For more information: info@gud-knight.com; 514-484-4GUD (4483)
Slide 2: Forward Looking Statements
Forward Looking Statements • This presentation may contain forward-looking statements and predictions. 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 forward-looking st
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 medicine • Knighting wrong with making money • Gud for Knight • Fun things happen at Knight • Gud Knight sleep tight • Gud time had by all • Gudluck Jonathan 3
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 $142 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: Overview
Overview • Knight Therapeutics is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets • Significant potential from the monetization of the Priority Review Voucher • Well poised for executing our
Slide 6: A Knight's Mission
A Knight’s Mission • To understand and serve the needs of Health Care professionals in specialty therapeutic areas through the development, licensing and commercialization of innovative products • Opportunology is our core specialty 6
Slide 7: Growth Strategies
Growth Strategies 1. License of innovative pharmaceuticals 2. Acquire mature or “under-promoted” products from Big Pharma 3. Develop near-term, low risk/low expense products for the Canadian and global markets 4. Lend, on a fully secured basis, to life science companies in need, for interest and/or
Slide 8: Source of New Products
Source of New Products • Multinational pharmaceutical companies having non-promoted products • Emerging specialty pharmaceutical companies with no Canadian presence • Biotech companies with products in late- stage trials who – Carve non-strategic markets, like Canada, off a global deal in order to s
Slide 9: Product Selection Criteria
Product Selection Criteria • Stage of Development – Product must be in Phase II, Phase III or approved in a foreign market • Leverage Existing Marketing Capabilities1 – Product must be able to be sold through scalable distribution channels • Risk of Failure – Agreement must be structured such that f
Slide 10: Scope of Business
Scope of Business • Knight’s participation in the value chain is focused on commercialization Pre-Clinical Clinical Regulatory Sales & Discovery Models Trials Approval Marketing Degree of commercialization Knight value chain participation 10
Slide 11: Knight Assets
Knight Assets • Impavido® (Miltefosine) – Royalty stream globally excluding U.S. – US. FDA approval March 19, 2014 • Priority Review Voucher – PRV 204684 received from U.S. FDA with the approval of Impavido on March 19, 2014 – Owned by Knight Therapeutics (Barbados) Inc. • $255 million in cash1 1 Gr
Slide 12: Impavido Royalty Stream
Impavido Royalty Stream • Indicated for the treatment of cutaneous and visceral leishmaniasis • Licensed for 10 years to Paladin for 22.5% of Gross Sales payable to Knight Therapeutics (Barbados) Inc. • Approved for sale in 15 countries (in addition to U.S.) • Growth expected from Brazil upon approv
Slide 13: Impavido U.S. market
Impavido U.S. market • Indicated for the treatment of cutaneous, visceral and mucosal leishmaniasis • Post marketing requirements underway – ~$1M per year early on and tapering off over time • Commercialization plan in development – Likely 3 to 6 months away Expected annual revenue of $200k+ 13
Slide 14: Priority Review Voucher
Priority Review Voucher • The U.S. priority review voucher - expedited FDA review to the developer of a treatment for neglected diseases – Proposed by Duke University faculty David Ridley, Henry Grabowski, and Jeffrey Moe in their 2006 Health Affairs paper: "Developing Drugs for Developing Countries
Slide 15: PRV Benefits
PRV Benefits • In 1992, under the Prescription Drug User Act (PDUFA), the FDA created a two-tiered system of review times – Standard Review and Priority Review • Standard Review is applied to a drug that offers at most, only minor improvement over existing marketed therapies – Ten-month target revie
Slide 16: PRV Value
PRV Value • 4-6 months faster review time (standard vs. priority) for a blockbuster drug is, according to Duke researchers, worth over $300 million • Intangible benefit – “first mover advantage”, allowing the voucher holder's product to be introduced ahead of a similar, competing product • Companies
Slide 17: Love in the Time of...
Love in the Time of... • Cholera • Human African • Tuberculosis trypanosomiasis • Malaria • Leishmaniasis • Blinding trachoma • Leprosy • Buruli Ulcer • Lymphatic filariasis • Dengue/dengue • Onchocerciasis haemorrhagic fever • Schistosomiasis • Dracunculiasis • Soil transmitted helmithiasis • Fasci
Slide 18: Vouchers to date
Vouchers to date Company Year Disease (Voucher Drug Comments Type) Novartis 2009 Malaria (Tropical) Coartem Used – FDA made decision in 6 months, but did not approve drug Janssen 2012 Tuberculosis Sirturo Likely to use for itself (Tropical) BioMarin 2014 Morquio A Vimizim Intention unclear Syndrome
Slide 19: Rare Pediatric Disease PRV Differences
Rare Pediatric Disease PRV Differences Rare Pediatric Disease Neglected Tropical Comment PRV Disease PRV Developer can ask in List of 16 diseases pre- No impact after PRV is advance whether disease approved for PRV issued, but may spur qualifies for PRV voucher-related R&D Transfer unlimited Transfe
Slide 20: Importance of the Voucher
Importance of the Voucher “But some of the highest-leverage work that government can do is to set policy and disburse funds in ways that create market incentives for business activity that improves the lives of the poor. Under a law signed by President Bush last year, any drug company that develops
Slide 21: Independent PRV Valuations
Independent PRV Valuations Firm BMO GMP Bloom Burton Cormark Date Nov. 6, 2013 Nov. 14, 2013 Nov. 26, 2013 Mar. 20, 2014 Analyst Alex Arfaei Martin Landry Philippa Flint David Dean Valuation $50-200M $10-100M $30-100M $90-160M Comments • High demand by a • Value of Knight’s • Key companies • No prec
Slide 22: Strong Balance Sheet to Fund Growth
Strong Balance Sheet to Fund Growth Current Share Price (June 16, 2014) $5.56 Shares Outstanding (June 16, 2014) 77.8M Cash, Cash equivalents and Marketable Securities (May 30, 2014) ~$255M1 Revenue (Q1 2014) $1,441 Loss before depreciation, amortization and interest (Q1 2014) ($90,868) 1 Gross proc
Slide 23: Knight's Objectives
Knight’s Objectives Revenue/ Paladin’s Performance Over Time Share EBITDA ($k) Price ($) 200000 200 Revenues 180000 180 160000 160 140000 140 120000 120 100000 100 EBITDA 80000 80 60000 60 40000 40 Stock 20000 20 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 24: Management
Management • Jonathan Ross Goodman B.A., LL.B., M.B.A. President & CEO – Co-Founder, President & CEO Paladin Labs Inc. • Jeffrey Kadanoff, B. Eng., M.B.A. Chief Financial Officer – Vice President - Strategic Planning and Development Reitmans (Canada) Ltd. – Principal Bain & Company 24
Slide 25: Board of Directors
Board of Directors 3 of 4 were Paladin Board members: • Jonathan Goodman – Paladin Board member since 1995; Knight President & CEO • Robert Lande –Paladin Board member since 1995; CFO Forex Capital Markets LLC • James Gale – Paladin Board member since 2008; Managing Director, Signet Healthcare Partn
Slide 26: Summary
Summary • Proven ability to develop a rich pipeline of new products in specialty therapeutic areas • Proven ability to secure profitable licensing agreements • Proven track record of profitable growth • Proven strategy • Experienced and dynamic management team • Financial strength to execute our str
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