Aoxing Pharmaceutical Company, Inc. · OTC:AOXG
Aoxing Pharmaceutical — Investor Presentation (May 2015)
14 slides from Aoxing Pharmaceutical's investor presentation, May 27, 2015
Slide 1: Aoxing Pharmaceutical Company, Inc.
AY Aoxing Pharmaceutical Company, Inc. NYSE MKT: AXN Pain-Management and Addiction Treatment Narcotic Pharmaceuticals State Designated Narcotics Manufacturer
Slide 2: Investment Highlights
Investment Highlights * Unique positioning = High value, high margin pain-management, CNS, and addiction treatment pharmaceuticals = 4pain-management products in R&D, of which 2 are a US top 50 variety. 1 WHO-recommended addiction treatment product in R&D. = China's policy allows narcotic pain-manag
Slide 3: Introduction
Introduction Fastest growing R&D, manufacturer, and distributor of narcotic pain-management and addiction treatment medicine: China = ™ Founded in 2002, with sales office in Beijing and production facilities in Shijiazhuang, capital of Hebei province, Aoxing has the largest and most advanced GMP app
Slide 4: Production Facilities
Production Facilities China’s Largest and Most Advanced Narcotic Pharmaceutical R&D Facilities (300 Acres) Bottling Production Line
Slide 5: Business Milestones
Business Milestones 2002 — Hebei Aoxing Pharmaceutical Co., Ltd.,(Hebei Aoxing) was incorporated and began engaging in producing and distribution of various narcotics and pain-management products in China 2006 — Hebei Aoxing restructured to be a 95% subsidiary of Aoxing and began listing on OTCBB 20
Slide 6: Current Drug Offering
Current Drug Offering Usage Competitive Advantage Zhongtong’an Capsule FR eS Inflammation Sole producer Yiqiqiangshen Granule Chinese mh SL medicine Sole producer, OTC Shaoshanglingding Spray Rites) Burns Sole Producer TF ea snta | = Total 137 products, including 9 types of formulations.
Slide 7: Distribution Key Markets
Distribution 5 Key Markets * 600 specialty hospitals * 3500 hospitals * 30000 drug stores Distribution Cha * Direct sales * Retailors * Provincial City Gove
Slide 8: SFDA-Approved R&D Narcotic Drug List
SFDA-Approved R&D Narcotic Drug List Dr Tilidine HCl (Tablets) Moderate to severe pain Oppor' No production in China Compound Tilidine HCI (Capsule) Moderate to severe pain No production in China Oxycodone (Capsule) Moderate to severe pain Top 50 in US, import only in China Oxycodone (Tablet) Modera
Slide 9: Narcotic Drug R&D Schedule
Narcotic Drug R&D Schedule R&D Progress Indication Production Approved Production Registration Moderate to severe Tilidine Tablet , = 2015 pain Moderate to severe Oxycodone Tablet ei m 2016 pain Moderate to severe Oxycodone Capsule . > 2016 pain Buprenorphine/ | wHOrecommended > Naloxone Sublingual
Slide 10: China Narcotic Drug Market: Barrier to Entry
China Narcotic Drug Market: Barrier to Entry CFDA Production License Quota for Narcotic Drugs + API: up to 2 license holders * Narcotic Preparation Varieties: up to 3 license holders * Varieties Containing Narcotic Preparations: up to 7 license holders “Regulation for Narcotic and CNS Drugs” Order N
Slide 11: Narcotic Drug Positioning
Narcotic Drug Positioning Cancer, post-operation, and other pains Addiction treatment “AIDS prevention Application *Standard prescriptions “Patients *Acute / chronic conditions” Properties “Fast acting sLow reliance Safe Distrbution Pricing *Over 440 state-owned sales channels “Price elasticity *Gov
Slide 12: Growth Strategy
Growth Strategy d + Expand narcotic drug offerings for underserved and growing needs in pain Product ie Ba management and addiction treatmentin China * Focus on R&D to launch new products and grow product selection Development * Develop EU GMP standard manufacturing processes for export by 2018. * L
Slide 13: Management
Management Zhengjiang Yue Chairman & CEO. Wilfred Chow cro Guirong Zhou Chief R&D Aijun Liu VP Sales Mr. Yue once joined the army and founded Hebei AoxingPharmaceutical Group Company, the subsidiary of China AoxingPharmaceutical Company incin China, in 1997. Priorto the founding of Hebei Aoxing, Mr.
Slide 14: Financials
Financials Period Ending June (USD '000) FY13 FY14 1H15 3Q15 NYSEMKT:AXN 19-May-15 Revenues 10,830 12,739 10,956 6,591 Share Price () 1.67 Gross Margin 6,268 5,814 7,983 5,513 52wk Range 0.18-2.58 % 57.9% 45.6% 72.9% 83.6% Market Cap ($mn) 116.6 OPEX 20,489 9,149 4,794 3,421 Shares O/S (mn) 69.82 Ne
Aoxing Pharmaceutical Company — Investor Presentation (May 2015) on 6ix