Oracle Healthcare Acquisition Corp · OTC:OHAQ
Oracle Healthcare Acquisition — Precision Therapeutics — Merger or Acquisition (December 2007)
36 slides from Oracle Healthcare Acquisition's merger presentation, Dec 20, 2007
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation CONFIDENTIAL 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentationmay contain statements that are not historical facts and are considered “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by their use of the terms: “expect(s),” “intend
Slide 3: Oracle Healthcare Acquisition Corporation Highlights
Oracle Healthcare Acquisition Corporation Highlights History: A Delaware corporation organized on September 1, 2005 Blank check company formed for the purpose of acquiring an operating business in the healthcare industry IPO: March 8, 2006 15,000,000 units consisting of one share of Oracle common st
Slide 4: Transaction Summary
Transaction Summary Base 19.0 million shares of Oracle common stock issued for all Consideration: outstanding PTI shares 4.6 million Oracle shares reserved for issuance upon exercise of outstanding PTI warrants and options Milestone 4.25 million Oracle shares issuable upon achievement of one of the
Slide 5: Oracle's Business Rationale for Merging with PTI
Oracle’s Business Rationale for Merging with PTI PTI operates in an important niche of the large and growing market for cancer therapies PTI’s ChemoFx can be an important tool in selecting the proper chemotherapy PTI offers an attractive business strategy CONFIDENTIAL 5
Slide 6: PTI's Business Rationale for the Merger
PTI’s Business Rationale for the Merger Merger will provide PTI with greater capitalization than an IPO, and thus will be in a better position to compete in the diagnostic services market Abilities and experience of the directors of Oracle will be highly valuable in executing business strategy Stock
Slide 7: Precision Therapeutics, Inc.
Precision Therapeutics, Inc. We are a personalized medicine company dedicated to assisting physicians in optimizing cancer therapy for their patients The Challenge Less than one in four patients benefits from chemotherapy Responses are inconsistent from one patient to another Physicians are faced wi
Slide 8: Company Highlights
Company Highlights Breakthrough technology platform Significant market opportunity Strong clinical validation Clear revenue growth path Experienced management team CONFIDENTIAL 8
Slide 9: Precision Therapeutics' ChemoFx
Precisi n Therapeutics’ ChemoFx Sci ——.
Slide 10: Chemotherapy Involves Costly Choices
Chemotherapy Involves Costly Choices Physicians are faced with an increasing number of options Response to chemotherapy is inconsistent from one patient to another Ineffective therapies dramatically impact patients’ lives and prognoses Costs of chemotherapy are substantial Example: Recurrent Ovarian
Slide 11: ChemoFx Helps Select Optimal Therapy
ChemoFx Helps Select Optimal Therapy Utilizes patients’ own living tumor cells from surgery or biopsy; integrates the effects of protein, genes, and Drug C unknown factors Test is available for solid tumor types Tests drugs or combinations selected by the physician on the malignant cells Leads to mo
Slide 12: ChemoFx Process
ChemoFx Process Isolate and Enrich Tumor Cell Population Challenge Cells with Chemotherapy Sample Dose Curve Control Well Treated Well 1.25 1.00 0.75 0.50 0.25 0.00 0 1 2 3 4 5 6 7 8 9 10 Doses Enumerate Surviving Cells Interpret Results CONFIDENTIAL 12
Slide 13: Different Patients Respond Differently
Different Patients Respond Differently Multiple Patients’ Response Curves 1.25 Gemcitabine 1.00 0.75 0.50 0.25 0.00 0 1 2 3 4 5 6 7 8 9 10 Doses CONFIDENTIAL 13
Slide 14: Personalized and Actionable Results
Personalized and Actionable Results Straight-forward information for physicians CONFIDENTIAL 14
Slide 15: ChemoFx Predicts Patient Response
ChemoFx Predicts Patient Response Current Clinical Evidence 5 studies completed Patients treated with a drug reported as responsive experienced a median progression-free interval approximately 3 times longer than patients treated with a drug reported as non- responsive. Ovarian Cancer Non-responsive
Slide 16: Solid IP on ChemoFx Through 2026
Solid IP on ChemoFx Through 2026 Process Step Protection Proprietary method to isolate and enrich tumor cell population; Isolate Tumor Cells 30–50x less tissue required Proprietary in vitro method to encompass therapeutically Treat with Drugs relevant dose range Proprietary process directly counts e
Slide 17: Reimbursement: A Success Story
Reimbursement: A Success Story We offer ChemoFx at a list price of $450 per drug or combo Average invoiced price is approximately $3,300 Medicare Prospectively pays for gynecologic cancers upon initial claim submission, since 2Q06 Commercial reimbursement Over 425 private payors have paid on a case-
Slide 18: Making a Long Sought-After Solution Viable
Making a Long Sought-After Solution Viable Earlier Generation Attributes Tests ChemoFx Clinical Utility Measures sensitivity and resistance Increases successful outcomes for patients Commercial Viability Automated and scaleable Small tumor size requirement Clinical Validation Validated in clinical s
Slide 19: Precision Therapeutics' Market
Precisi sn Therapeutics” Market ——.
Slide 20: Broad Market Opportunity
Broad Market Opportunity Solid tumor cancers treated with chemotherapy in which: Multiple standards of care exist, or no standard exists Choice of chemotherapy regimen is not clear Common situation in metastatic, recurrent cancers Annual Market Opportunity (dollars in millions) ChemoFx has been used
Slide 21: Strategy
Strategy CONFIDENTIAL 21
Slide 22: Corporate Strategy
Corporate Strategy Establishing ChemoFx as a Standard of Care Drive market adoption via direct sales Demonstrate value in clinical studies Invest in technology to enhance product offering Achieve broad-based coverage from payors CONFIDENTIAL 22
Slide 23: Drive Market Adoption via Direct Sales
Drive Market Adoption via Direct Sales 450 20 Initial sales focus on Billed Tests gynecologic oncologists 400 Sales Reps 18 Establish presence within 350 16 hospitals 14 300 Develop relationships with Sales Force 12 pathology and operating room 250 Established staffs 10 200 Expand presence in additi
Slide 24: Demonstrate Value in Clinical Studies
Demonstrate Value in Clinical Studies Clinical Studies Strategy Expand into additional tumor types Partner with large cooperative groups US Oncology, NSABP, Yale University, U.S. Department of Defense Launch additional investigator initiated studies Studies in Progress Four studies in ovarian and br
Slide 25: Invest in Technology to Enhance Product Offering
Invest in Technology to Enhance Product Offering Extending the ChemoFx Platform Genomic Markers Targeted Therapies/Biologics >30 Tumor ChemoFx Additional Types Chemos CONFIDENTIAL 25
Slide 26: Achieve Broad-based Coverage from Payors
Achieve Broad-based Coverage from Payors First Medicare appeals victory Secured PPO contracts at favorable rates Invest in managed care infrastructure Reimbursed by >100 payors on a case-by- Addition of reimbursement directors case basis Increase sophistication of billing and appeals process Second
Slide 27: Regulatory Environment
Regulatory Environment Regulatory Situation Precision Plan Short Regulated by CLIA Prepare for regulation Term Process tests from all 50 Internal controls states Clinical studies Potential FDA regulation Leverage assets and opportunities Long Term Transition period provided Clinical studies already
Slide 28: Management Team
Management Team Sean McDonald David Heilman Sharon Kim President and CEO CFO V.P., Business Development 17 years experience leading healthcare 27 Years of financial experience with 17 years in business development and companies. Founder of Automated GNC Corp. and First Westinghouse healthcare consul
Slide 29: Board of Directors
Board of Directors Stan Lapidus Sean McDonald Larry Feinberg Chairman, PTI Director since 2001 President, CEO and Chairman, Oracle Director since 2005 Founder and CEO of Helicos PTI Director since 2001 Founder and Managing General Partner BioSciences Corporation; Founder and Director of Respironics,
Slide 30: Financial Overview & Valuation
Financial Overview & Valuation CONFIDENTIAL 30
Slide 31: Attractive Financial Model
Attractive Financial Model Significant revenue growth Attractive gross margins Strong operating leverage Not capital intensive CONFIDENTIAL 31
Slide 32: Summary of Historical Financials
Summary of Historical Financials Years ended December 31, Nine months ended September 30, 2006 2007 2004 2005 2006 (unaudited) (unaudited) (In thousands, except for numbers of tests and per test amounts) Number of tests billed………………………….. 406 285 483 260 977 Average net revenue per test billed………..
Slide 33: Selected Pro Forma Condensed Combined Balance Sheet Data
Selected Pro Forma Condensed Combined Balance Sheet Data September 30, 2007 Assuming Assuming Maximum Maximum Approval(1) Approval(2) (In thousands) Cash and cash equivalents……………………................ $132,386 $108,987 Working capital…………………………………................ 126,322 102,923 Total assets…………………………
Slide 34: Valuation Analysis of PTI
Valuation Analysis of PTI 140 PTI Projected Revenue ($ Millions)(2) 2011 120 121.8 100 2010 Summary of Duff & Phelps 80 83.6 Analysis(1): 60 Equity valuation of $176.4 million implied by 40 2009 aggregate merger consideration 40.9 20 2008 12.6 Discounted Cash Flow Analysis 0 Equity value of $154 mil
Slide 35: Summary Comparable Company Analysis
Summary Comparable Company Analysis Market Multiples(1) Enterprise Value as a Multiple of: FY FY FY FY FY FY 2007 2008 2009 2007 2008 2009 Revs Revs Revs EBITDA EBITDA EBITDA Highest……………………………………………. 10.2x 8.0x 6.2x 42.6x 92.4x 130.8x Lowest…………………………………………….. 3.1x 1.7x 1.9x 24.3x 18.8x 12.6x Media
Slide 36: Company Highlights
Company Highlights Breakthrough technology platform Significant market opportunity Strong clinical validation Clear revenue growth path Experienced management team CONFIDENTIAL 36
Precision Therapeutics — Merger or Acquisition (December 2007) on 6ix