Targeted Medical Pharma Inc · OTC:TRGM
Targeted Medical Pharma — Investor Presentation (May 2014)
45 slides from Targeted Medical Pharma's investor presentation, May 20, 2014
Slide 1: Innovators in Pharmaceutical Technology
Innovators in Pharmaceutical Technology May 2014
Slide 2: Safe Harbor Statement, Non-GAAP Financial Measures and Trademarks
“4% Safe Harbor Statement, Non-GAAP Financial Measures and Trademarks ‘Safe Harbor Statement This document does not constitute or form part ef an invitation or recommendation to subscribe for or purchase any securities of Targeted Medical Pharma, inc. ("Targeted Medical Pharma", “TMP” or “the Compan
Slide 3: Overview
y Overview Biotechnology company that develops prescription medical foods for treatment of chronic disease >» Including pain syndromes, sleep , cognitive disorders and obesity > Safe option for treatment without significant side effects FDA regulated products on the market generating revenue > Does
Slide 4: Corporate Profile
Corporate Profile Targeted Medical Pharma, Inc. OTC QB: TRGM Corporate Headquarters Los Angeles, CA Stock Price (3-28-2014), 52-Week Range $0.84; $0.49 - $5.10 Shares Outstanding 26.3M Average Daily Volume (13Wks) 12,459 Market Capitalization (3-28-2014) $22.1M Debt at 12-31-13 $5.5M Cash at 12-31-1
Slide 5: Key Management
9) Key Management William Shell, M.D. Cort Founder, CEO and Chief Science Officer USAF American Soviet Exchange Program First physician representative in Moscow ~ Keesler Air Force Base —Director of Coronary Case Unit - Cedars Sinai Medical Center — Dir.of Cardiqvascular Biochemistry Research Labora
Slide 6: Board of Directors
Board of Directors INDEPENDENT DIRECTORS Maurice J. DeWald Chairman of the Board KPMG - Regional Managing Partner ‘Serves on the board of director of several healthcare companies: Arthur R. Nemiroff, CPA Chairman of the Audit Committee BDOUSALLP- Partner Gity of Hope Medical Center - Director and au
Slide 7: Physician-Supervised Medical Foods
Y) pervised Medical Foods Medical foods are FDA-regulated medications intended for the dietary management of a disease that has distinctive nutritional needs that cannot be met by normal diet alone as defined in the Food and Drug Administration's 1988 Orphan Drug Act Amendments. Must make a disease
Slide 8: Targeted Cellular Technology
rgeted Cellular Technology Five-component System for Efficient Uptake and Utilization of Amino Acids Milligram Reduced Improved Quantities Attenuation Efficacy Amino Acids Are the Precursors to Neurotransmitters >> The Five Components of TCT: SHIB Serotonin 1. Neurotransmitter precursor Choline Acet
Slide 9: Current Products
rrent Products % of Therapeutic Area Product Class Monthly Doses** Pain and inflammation Theramine Medical Food Sleep Disorders Sentra PM / GABAdone Medical Food Osteoarthritis Trepadone Medical Food Cognitive Disorders, Fatigue, Vision Sentra AM Medical Food Metabolic Disorders / Obesity AppTrim an
Slide 10: Pipeline: Indication and Expected Commercialization
Indication Expected Commercialization ASD-AA Autism Quick Release Wafer $26B+ Q3'2014 AP-113+ (Neworaldeliverysystem) Appetite Suppression Quick Release Wafer $390B + Qa' 2014 ESs-1818*"" Chronic Anemia Capsule $10B+ Qi' 2015 Pulmona New Asthma Capsule $12B+ Q2' 2015 Oral IGF1 Diabetes Capsule S1SB+
Slide 11: First Direct to Consumer Product
First Direct to Consumer Product ee Clearwayz Nasal Congestion & Sinus Relief! Supports Healthy Sinus and Immune Rapid inhibition of nasal congestion with food based pharmaceuticals www.cl earwayz.com ‘TARGETED MEDICAL PHARMA (OTOOS-TRGM)
Slide 12: Medical Foods: Meeting Physician & Patient Demand
Medical Foods: Meeting Physician & Patient Demand NEEDS SOLUTIONS * Improve patient outcomes « Nutritional management of disease * Reduce negative side effects Safe, effective treatments * Lower costs of care Reduce dosage of opiates Improved adherence ‘TARGETED MEDICAL PHARMA (OTOOB-TRGM)
Slide 13: Low-Cost, Shorter Time to Market
w-Cost, Shorter e to Market Medical Foods Have a Shorter Time to Market due to GRAS/GRAE status Revenue and Post-Marketing MedWatch (Milestone) Development | Database and Testing | Registration (1to2 yrs} | (3 to 6 mos) Revenue and Development IND . Database , and Testing | Submission Pires id Sti s
Slide 14: Platform Technologies
Platform Technologies * Targeted Cellular Technology is a patented formulation that allows reduced concentrations of amino acids to promote the production of neurotransmitters in the body. * The use of amino acid as to orally stimulate progenitor stem cells. * Aunique oral delivery system that reduc
Slide 15: Intellectual Property Highlights
Intellectual Property Highlights Seven Patents Issued Three Patents Pending 4. USPTO neurotransmitter-specific patents covering TAT-related patents: Targeted Cellular Technology® (TCT} Q Stimulation of RBC production* 1 Japanese patent covering TMP’s Targeted Cellular Technology® Q Oral insulin / in
Slide 16: Reimbursement Channels
Reimbursement Channels Channel Types Top PBMs Top Medical Plans Government Reimbursement 2] workers’ Compensation 2 Private Insurance 2 Medicare Secondary Insurance Plans Rx Solutions Medco Catamaran ( 2 Medimpact Express Scripts A cigna @ BlueCross/Blue Shield Bur ealthcare 2 Aetna Health Net jedic
Slide 17: Geographic Presence and Potential
i Geographic Presence and Potential With limited sales resources, TRGM has sold product into only a fraction of its potential market. The core purpose of funding is sales expansion. 6 50 ome 80 0 100% Proportion of Sales TARGETED MEDICAL PHARMA [GTCOB-TRGM)
Slide 18: CMFG 18m
( cMFG 18m Amount Billed Revenue SD Se s TARGETED MEDICAL PHARMA [GTCOB-TRGM)
Slide 19: Medicalfoodorders.com Revenue Growth
“i? Medicalfoodorders.com Revenue Growth Aan Feb 1-Mar L-Apr 12 Jan I 14-Feb 1 Mar 1-Apr [eters Revenue $3,111.25 $4,341.81 $6,937.94 $11,161.24 Jame Unique Visitors 302 Esty 925 412 [roreers 14 19 31 38 |——=Conversion Rate 4.64 2.34 3.35 9.22
Slide 20: Balance Sheet
% Balance Sheet Balance Sheet as of 12/31/13 (In Thousands) ASSETS. LIABILITIES Cash $ 492 Accounts Payable $ 1,498 Accounts Receivable, net 269 Accrued Liabilities 5,655 Inventories 596 Notes Payable, current 4,079 Prepaid Income Taxes 901 Other Current Liabilities 29 Other Current Assets 372 Total
Slide 21: Income Statement
(p) Income Statement For the Three Months Ended Mar. 31,2012 June 30,2012 Sept.30, 2012 Dec. 31,2012 Mar. 31,2013 June 30,2013 Sept. 30,2013. Dec. 31,2013 Product Revenue $ 1273 $ «1a31 $812 S$ «2024 $279 $d? $1950 $2430 Service Revenue 102 117 26a 372 332 270 248 203 Total Revenue 1375 1448 2076 2,
Slide 22: Adjusted EBITDA Reconciliation
‘Three Months Ended December 31, ‘Year Ended a 2013 2012 Dec.31, 2013 Dec. 31,2012 NET INCOME (LOSS) A 5 (45a) $19,338) 39.586) Depreciation of Property and Equipment a1 143 187 Amortization of intangibles 61 269 249 Income Tax Benefit (aaa) 5,667 (3,186) Interest, net 4374 (170) 6,632 Stock Based C
Slide 23: Balance Sheet Asset: Contract Receivables
-Balance Sheet Asset: Co Shipments: Collections: Contract Receivables are amounts due Contract Recognized but not yet recognized as revenue Receivables Revenue Monthly collections are approximately 1.5% to 2.0% Contract receivables are constantly rejuvenated by additional shipments Collected amounts
Slide 24: Improving the Reimbursement Mix
Improving the Reimbursement M Diversification of Payers > Revenue Stability 2011 2012 2013 2014 HB Workers Compensation Private Insurance Medicare Part D DOD / VA ‘TARGETED MEDICAL PHARMA (OTOOS-TRGM)
Slide 25: Near-Term Goals
ra Near-Term Goals Grow sales to physicians with well-insured (PPO) patients + ANational Sales Manager was hired in March * Acontract was signed to accelerate cash collections +_We are contemplating the acquisition of a distributor network Increase sales of a dietary supplement product(s) Continue d
Slide 26: Investment Considerations
Investment Considerations Revenue Growth HIGH DEMAND PRODUCTS ADDRESSING LARGE MARKETS: a DIVERSIFIED, GROWING SALES GROWING ADOPTION OF MEDICAL FOODS Revenue Security © DIVERSIFIED REIMBURSEMENT SOURCES ‘SPECIALTY REIMBURSEMENT OPERATIONS Profitability LOW-COST, HIGH-SPEED PRODUCT DEVELOPMENT PLATF
Slide 27: Contact
Contact 2980 Beverly Glen Circle, Suite 301 Los Angeles, CA 90077 Telephone: 310-474-9809 Fax: 310-474-3869 investors@tmedpharma.com Brand site: www.pticentral.com Company site: www.tmedpharma.com
Slide 28: Appendix
Appendix Business Team Key Links Percura — Progenitor cell stimulant Alternative to Narcotic Pain Medications Progenitor Cell Pathways Clinical Trial: Sentra PM® and Trazodone (Trazamine®) Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) Pain Reduction with Theramine® Inflammation Reduction
Slide 29: Business Team
“> Business Te Legal Counsel Accounting Buchanan Ingersoll «. Rooney pc AUDITORS MARCUM neattucare ~=EHOOPER, LUNDY & BOOKMAN, PC HEALTH CARE LAWYERS HEALTHCARE NH] Nelson Hardiman, LLP ‘SECURITIES E: CaS Investor Relations and Public Relations we, GS) STONEGATE me PROACTIVE 2 TARGETED MEDICAL PHARM
Slide 30: Key Links
ap Key Links g = Company website: http://www.targetedmedicalpharma.com/ = FDA definition of medical food: http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation IFoods, 8 = Public filings: http://www.sec.gow/cgi-bin/browse- edgar ?action=getcompany&CIK=0001420030&0wner=exc
Slide 31: Percura — Progenitor cell stimulant
ra — Progenitor cell stimula Physician Global Assessment Visual Analog Scale 29,5 @ Pain fl Numbness In a clinical outcomes study of Percura, patients with peripheral neuropathy experienced a reduction in pain and numbness over a 21 day period as measured by a 100 point Physician Global Assessment V
Slide 32: Alternative to Narcotic Pain Medications
&® Alternative to Narcotic Pain Medications Transmitting Neuron neurotransmitter held in storage * Percura can be used as an adjunct therapy to a low dose opioid pain medication * Percura can be used as a replacement therapy for other ineffective or dangerous pain medications receptor sites TARGETED
Slide 33: Progenitor Cell Pathway
Progenitor Cell Pathway: Progenitor cells are developmentally committed to a cell line but are undifferentiated or immature in comparison to those cells that have differentiated and matured into specialized cells. Progenitor cells are multipotent or unipotent. Activation of neuronal progenitor cells
Slide 34: Less Morning Grogginess
Less Morning Grogginess ° 8 8 Time (min) 5 mpla/pia mpia/tra Sentra PM/pla_ ml Sentra PM/tra *"p<0.01 n=111 Change in Visual Analog Scale (VAS} Negative change indicates reduced grogginess ‘Source: Shell, etal, “Sentra Piand Trazodone for the management of Sleep Disorders" Journal of Central Nervous
Slide 35: Clinical Trial: Theramine with Ibuprofen (Theraprofen)
rv Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) Roland Morris Score After 28 Days & 28 2g <2 Hu 6 & n=122 p<(0.01) Source: Shell, etal, “A Bouble-Blind Controlled Trial ofa Single Dose Ibuprafen and an Amino Acid ‘Medical Food Theramine for the Treatment of Law Back Pain; Publication pen
Slide 36: Pain Reduction with Theramine
Pain Reduction with Theramine® Percent Reduction of Roland-Morris Pain Index 229) * ps0.05 n=126 Percent (%) 5 : i 5 Naproxen WTheramine MBoth ‘Source: Shell, etal," Double-Blind Controlled Trial of Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain’; Am
Slide 37: Inflammation Reduction with Theramine
ra Inflammation Reduction with Theramine® Change in hsCRP from Baseline at 28 Days WNaproxen = I Theramine ‘Source: Shell, etal," Double-Blind Controlled Trial of Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain’; American Journal of Therapeutics; 2012
Slide 38: Change in Blood Concentration of Amino Acids
with Ibuprofen (Theraprofen Change in Blood Concentration of Amino Acids moay 1 mDAy 28 Arginine Serine Histidine ‘Tryptophan Patients with pain syndromes have decreased levels of the amino acids required for production of pain modulating neurotransmitters. Improving amino acid levels correlates wit
Slide 39: Disability Reduction with Theramine and Naproxen (Theraproxen)
res Disability Reduction with Theramine® and Naproxen (Theraproxen® Change in Oswestry Disability Index Score at 28 Days 0.05 34 i n=126 z $20 é & -A0 Naproxen BTheramine ‘Source: Shell, etal," Double-Blind Controlled Trial of Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Tre
Slide 40: Pharmacoeconomic Analysis of Theramine
Pharmacoeconomic Analysis of Theramine Use of Theramine Potentially Reduces the Cost of Care by >30% Estimated Comparative Annual Treatment Cost Product Gl Bleed Treatment Protective Medications Laboratory Testing Negative GI Workup Rronly eee Over 45,000,000 capsules administered with no reported G
Slide 41: Clinical Trial: Sentra PM and Trazodone (Trazamine)
Clinical Trial: Sentra PM® and Trazodone (Trazamine®) Sleep Quality (PSQI*) Change from Baseline at Day 14 65** @ oc 5 a m & 3 Ge 3 a mPlacebo Trazodone @SentraPM moth Pittsburgh Sleep Quality index ‘Source: Shell, et al, “Sentra Pand Trazodone for the management of sleep Disorders” + Journal of Cen
Slide 42: Increased Reticulocyte Count in Healthy Volunteers
Increased Reticulocyte Count in Healthy Volunteerst ‘Effect on one patient in pre-clinical trials. pre-clinical trials resulted in an 80% response rate Primitive ‘source: intial data from an open label study of an oral amino acid-based erythrocyte Reticulocytes stimulating system (ESS] for the treat
Slide 43: Autism Product
Number of Events Involving Anger, Frustration, and Self-Directed Aggressive Behavior = Nutritional Deficiency 5 Initial Data iit = Development Status | = Distribution Channels 1 ; 2 ; 3 , 4 , 5 , 6 , ? , 8 Day TARGETED MEDICAL PHARMA [GTCOB-TRGM)
Slide 44: Autism Spectral Disorder - Pilot
i Autism Spectral Disorder - Pilot Investigator Initiated Observations: 34 patients aged 7- 21 ASD symptoms including mood disorders, explosive behavior and social isolation 33 experienced a significant reduction of symptoms Compared to baseline the average improvement was 83% The range was 50 to 10
Slide 45: Appetite Suppression Product
i Appetite Suppression Product =~ = Nutritional Deficiency Appetite Suppression Effect \ = Initial Data = Development Status = Distribution Channels =Anticipated Launch Date 3 é ] 2 = Appetite Suppression =Early Satiety = Carbohydrate Craving 8/14/2013 8/24/2013 9/26/2013 = Increase in Fat Metabolis
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