Champions Oncology, Inc. · NASDAQ:CSBR
Champions Oncology — Investor Presentation (January 2019)
20 slides from Champions Oncology's investor presentation, Jan 7, 2019
Slide 1: Investor Presentation January 2019
Investor Presentation January 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 Results
Champions Results We don’t use better mice. We use cheaper people. ✓ Over 1,000 Studies Completed • Ranging in size from $25,000 to more than $2M ✓ 250+ Customers • Including 18 of the top 20 pharma companies and 200 other pharma and biotech companies ✓ 30% Revenue Growth • 3 year cumulative annual
Slide 7: 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 ‒ Management Team ‒ TumorBank ‒ Lab Capabilities ‒ Extensive and deep
Slide 8: Current Strengths
Current Strengths ➢Portfolio of offerings: Strong market desire to utilize Champions for oncology Comprehensive suite of offerings with a growing market demand 8
Slide 9: CORE TOS: Solid Tumor - Leveraging TumorGrafts for Emerging Therapeutic Areas (CAR-T)
CORE TOS: Solid Tumor Leveraging TumorGrafts for Emerging Therapeutic Areas CAR-T is growing in popularity after recent approvals. Champions’ PDX models positioned as a leading resource for this area. Global CAR-T Market Global CAR-T market expected to grow to 3.3 billion over the next 10 years 9
Slide 10: CORE TOS: Solid Tumor - Leveraging TumorGrafts for Emerging Therapeutic Areas (CRISPR)
CORE TOS: Solid Tumor Leveraging TumorGrafts for Emerging Therapeutic Areas CRISPR-based therapeutics are emerging as popular gene therapy. The heterogeneity of Champions’ PDX models, coupled with ex vivo capabilities, positions us well. US Gene Therapy Market US Gene therapy market expected to grow
Slide 11: Ex Vivo Offering
Ex Vivo Offering Levering TumorGrafts for Ex Vivo Screens & Enabling Custom Model Builds • Market is growing and requests are steady. • Can be used early late stage development. • The real value is in the model being used: • Champions has a leadership position. • Autologous co-culture will disrupt I
Slide 12: 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 13: New Product - Funded Model Build Programs
New Product- Funded Model Build Programs Press Release – August 21, 2017 • Funded, multi-year initiative to build cohorts in: • EGFRmut+ NSCLC (post osimertinib) – 100 tumor implants • ER+ breast cancer (post CDK4/6 inhibitor) – 30 tumor implants • Leverages Champions global network of sites, Clinic
Slide 14: Growing Revenue and Achieving Profitability
Growing Revenue and Achieving Profitability Generally Flat Annual Costs while Growing Revenue $30,000,000 • Breakeven results in FY $25,000,000 2018 • Quarterly profitable $20,000,000 results through 1H of FY 2019 $15,000,000 • 30% annual revenue since FY 2016 $10,000,000 • Move to new lab facility
Slide 15: Financial Results
Financial Results 3 Months Ended Ocotber 31 6 Months Ended October 31 2018 2017 2018 2017 OPERATING REVENUE: Translational oncology solutions $6,444 $4,825 $12,310 $9,419 Personalized oncology solutions 250 379 609 818 TOTAL OPERATING REVENUE $6,694 $5,204 $12,919 $10,237 COSTS AND OPERATING EXPENSE
Slide 16: 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 17: Current Capitalization and Valuation
Current Capitalization and Valuation Stock Price (January 2, 2019) $7.89 Shares Outstanding1 11.4 million Equity Market Cap $90 million Debt $0.0 Cash (October 31, 2018) $2 million 1 Excludes 2 million options (strike price approx. $2,25) and 2 million warrants (strike price approx. $6/share) 17 Nas
Slide 18: Investment Highlights
Investment Highlights • Opportunities to increase revenues and profitability ‒ Accelerating core business revenue growth ‒ New product offerings to increase revenues ‒ Quarterly profitable results in 1H of FY 2019 ‒ Company expects to remain profitable ‒ Monetize data bank • Insiders own 50+%; highl
Slide 19: 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 20: 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 Investor Relations Brett Maas, Managing Partner Hayden IR Tel 646.536.7331 | www.haydeni
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