Oracle Healthcare Acquisition Corp · OTC:OHAQ
Oracle Healthcare Acquisition — SPAC Merger (February 2008)
36 slides from Oracle Healthcare Acquisition's SPAC merger presentation, Feb 26, 2008
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: Precision Therapeutics, Inc.
Precision Therapeutics, Inc. We are a diagnostics services company dedicated to providing physicians, patients, and payors with actionable information to personalize cancer treatment We do this through ChemoFx ®, a proprietary live tumor cell-based platform that measures an individual patient’s tumo
Slide 4: Company Highlights
Company Highlights Addresses the critical need for personalized treatment in cancer Has the technology platform to capture the market Has established the benefits of the platform Clinically validated Prospective Medicare reimbursement for gynecologic cancers Reproducible, automated and scalable Succ
Slide 5: Cancer Treatment is Ambiguous
Cancer Treatment is Ambiguous Non-Small Cell Lung Cancer Therapeutic choice is not clear cut in most Treatments primary metastatic and recurrent cancers Cisplatin/Vinorelbine Cisplatin/Etoposide Recurrent Ovarian Cancer Treatments Cisplatin/Vinblastine Bevacizumab (in combo with others) Cisplatin Al
Slide 6: Critical Need for Personalized Treatment in Cancer
Critical Need for Personalized Treatment in Cancer Less than one in four patients respond to any given round of chemotherapy Response is inconsistent from one patient to another Two patients with identical health histories and typed the “same” Drug C through standard pathology techniques will respon
Slide 7: ChemoFx
PrecisisnTherapeutics’ ChemoFx =
Slide 8: Live Cell Platform
Live Cell Platform Live patient tumor cells contain all the information and integrate the effects of all Genomics, Genetics, Proteomics and even unknown factors Single platform/process applicable across multiple classes of drugs and multiple tumor types Faster time to market with new products than p
Slide 9: Right Approach to Capture the Market
Right Approach to Capture the Market We’ve successfully addressed the market needs Provides information on what drug will work for my patient Clinically validated Dependably produces an actionable answer Applicable to the majority of patients – only requires biopsies CONFIDENTIAL 9
Slide 10: ChemoFx Process
ChemoFx Process Isolate and Enrich Tumor Cell Population Challenge Cells with Chemotherapy Control Well Treated Well Sample Response Curve 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 10
Slide 11: Different Patients Respond Differently to Same Drug
Different Patients Respond Differently to Same Drug Multiple Patients’ Response Curves Gemcitabine Non-responsive Intermediate Responsive CONFIDENTIAL 11
Slide 12: Personalized and Actionable Results
Personalized and Actionable Results Straight-forward information for physicians Intuitively understandable by patients CONFIDENTIAL 12
Slide 13: Current Clinical Evidence
Current Clinical Evidence 256 ovarian and peritoneal cancer patients Gallion et al; Int J Approximately 3X longer PFI for patients treated with drugs classified as Gynecol Cancer 2006 responsive vs. non-responsive (p<0.01) 84 primary ovarian cancer patients Nickles Fader; ASCO Platinum sensitive wom
Slide 14: ChemoFx Predicts Patient Response
ChemoFx Predicts Patient Response Most Current Clinical Evidence 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 n= 135, p< 0.01 Non-responsive
Slide 15: Reimbursement: A Success Story
Reimbursement: A Success Story We provide ChemoFx at a list price of $450 per drug or combination Average invoiced price is approximately $3,300 and rising Medicare Prospectively paying for gynecologic cancers upon initial claim submission, since 2Q06 Commercial reimbursement Over 425 private payors
Slide 16: Market
Market CONFIDENTIAL 16
Slide 17: 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 primary metastatic and recurrent cancers Annual U.S. Market Opportunity for Precision ChemoFx has
Slide 18: Strategy
Strategy CONFIDENTIAL 18
Slide 19: Corporate Strategy
Corporate Strategy Broaden market adoption via direct sales to physicians Expand market share in tumor types beyond gynecologic cancers Add new drugs and biologics as they are approved Establish ChemoFx as standard of care Continue to grow the number of contracted payors Leverage platform to develop
Slide 20: Broaden Market Adoption via Direct Sales
Broaden Market Adoption via Direct Sales 450 20 Initial sales focus on Billed Tests gynecologic oncology 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 additio
Slide 21: Establish as the Standard of Care – Ongoing Trials
Establish as the Standard of Care – Ongoing Trials Ovarian cancer prospective trial: Yale University and various other sites PT-301 Progression-free survival and response endpoints Breast cancer US Oncology Research - 34 patients prospective trial: ChemoFx embedded in clinical trial of new chemother
Slide 22: Enhance Diagnostic Product Offering
Enhance Diagnostic Product Offering Pharmacogenomic Tests Targeted Therapies/Biologics >30 Tumor Live Cell Platform Additional Types Chemos CONFIDENTIAL 22
Slide 23: Company Uniquely Positioned to be Ideal Development Partner
Company Uniquely Positioned to be Ideal Development Partner Platform: Our live cell platform can be a “gold standard” for additional test development because it captures active, cycling tumor cell behavior People: We have become experts at sourcing tissue out of facilities Programs: Company has inve
Slide 24: Management Team
Management Team Sean McDonald David Heilman Sharon Kim President and CEO CFO V.P., Business Development 17 years experience leading 27 Years of financial experience with 17 years in business development healthcare companies, founder of GNC Corp. and First Westinghouse and healthcare consulting at Ca
Slide 25: Post-Merger Board of Directors
Post-Merger Board of Directors Joel Adams Richard Kollender Per Lofberg PTI Director since 2003 PTI Director since 2006 Oracle Director since 2005 Founder, President and Managing Partner of Quaker BioVentures; President and CEO of Merck Capital General Partner of Adams Capital Commercial operations
Slide 26: Financial Overview
Financial Overview CONFIDENTIAL 26
Slide 27: Attractive Financial Model
Attractive Financial Model Significant revenue growth Attractive gross margins Strong operating leverage Low capital investment requirements CONFIDENTIAL 27
Slide 28: 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 29: Projected Financials for PTI
Projected Financials for PTI PTI Projected Revenue ($ Millions) PTI Projected EBITDA ($ Millions) 120 40 119.2 30 100 133% 20 80 CAGR 82.4 10 29.4 60 0 3.9 (33.9) (26.0) 40 -10 38.1 -20 20 -30 9.4 0 -40 2008 2009 2010 2011 2008 2009 2010 2011 2008 revenue growth based upon sales force expansion 2009
Slide 30: Selected Pro Forma Condensed Combined Balance Sheet Data
Selected Pro Forma Condensed Combined Balance Sheet Data September 30, 2007 Assuming Assuming Maximum Minimum Approval(1) Approval(2) (In thousands) Cash and cash equivalents……………………................ $128,762 $105,363 Working capital…………………………………................ 122,698 99,299 Total assets……………………………
Slide 31: Company Highlights
Company Highlights Addresses the critical need for personalized treatment in cancer Has the technology platform to capture the market Has established the benefits of the platform Clinically validated Prospective Medicare reimbursement for gynecologic cancers Reproducible, automated and scalable Succ
Slide 32: Appendix
Precisi an Therapeutics’ The Science of Individualizing Cancer Therapy Appendix CONFIDENTIAL 32
Slide 33: Transaction Summary
Transaction Summary OHAC is a special purpose acquisition corporation (SPAC) formed in September 2005 Oracle Healthcare March 8, 2006: Raised $113.5M (net) in IPO - 15M units (1 common share + 1 warrant @ $6.00/share) Acquisition - 3.75M common shares and 833,334 warrants held by founders Corporatio
Slide 34: Offering Summary
Offering Summary 16.5M shares of Oracle common stock issued for all outstanding Base PTI shares Consideration 3.7M shares reserved for issuance upon exercising of outstanding warrants and options 4.25M upon achievement of one of the following after the closing: Trailing 12 month net revenues of at l
Slide 35: Transaction Terms
Transaction Terms Date of Definitive Agreement: December 3, 2007 Market Capitalization: Pro forma capitalization will include: Current Shares Oracle Shares Issued Reserved for Post Merger Fully- Oracle Post Merger Shares for PTI Common PTI Options Diluted Share Price Market Outstanding (1) Stock (2)
Slide 36: Pro Forma Ownership
Pro Forma Ownership Assuming No Exercise of Assuming Full Exercise of Oracle or PTI Warrants Oracle and PTI Warrants Oracle Public Oracle Public PTI Common Shareholders Shareholders 45.0% PTI Common 56.7% Shareholders Shareholders 49.4% 38.2% SPAC Founders Shares SPAC Founders Shares 5.1% 5.6% Note:
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