Aoxing Pharmaceutical Company, Inc. · OTC:AOXG
Aoxing Pharmaceutical — Investor Presentation (March 2011)
22 slides from Aoxing Pharmaceutical's investor presentation, Mar 7, 2011
Slide 1: Aoxing Pharma
\) Aoxing Pharma A Specialty Pharma Company Focused on Narcotics and Other Pain Medicines in China NYSE AMEX Listed: AXN. www.aoxingpharma.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements including statements regarding the timing and outcome of product development, potential regulatory approvals, future demand for and sales of our products and future development of new products. These statements are not guara
Slide 3: AXN Investment Highlights
AXN Investment Highlights Growing and underserved market for narcotics and other pain medicine in China * About $700m in 2010, growing at CAGR 279%, with potential market size of 60 billion dollar. * Only 25 out of 123 narcotic drugs available in China + Only 13 designated narcotic drug manufacturer
Slide 4: Company Overview and Vision
Company Overview and Vision A Leading Pain Management Company in the Fast Growing Chinese Pharmaceutical Market *Founded in Shijiazhuang City in 2002 “Largest purposely designed GMP certified narcotic drug facility in China + Strategic alliances with Johnson Matthey Plo, QRx Pharma, Phoenix PharmaLa
Slide 5: State-of-The-Art Facility
State-of-The-Art Facility China’s largest and most advanced manufacturing facility for highly regulated narcotic medicines: 50 acre of campus R&D center Hebei headquarter facility Current size: 1.5 million SF After expansion: 2.0 million SF TCM R&D Administrative building
Slide 6: Experienced Management with Proven Track Record
Experienced Management with Proven Track Record Zhenjiang Yue Chairman, CEO & Founder Bob Ai, PhD CFO Yunlan Tang cTO 125 years of entrepreneurial experience Founded four companies successively and has been the CEO and GM of private enterprise, incorporated enterprise, state-owned enterprise, and pu
Slide 7: Board of Directors with Global Leadership and Expertise
Board of Directors with Global Leadership and Expertise Zhenjiang Yue Chairman, CEO & Founder Jun Min Director John O'Shea Independent Director Howard Sterling Independent Director Dr. Guozhu Xu Independent Director 25 years of entrepreneurial experience Founded four companies with 11 years in healt
Slide 8: Major Milestones Achieved by Aoxing
Major Milestones Achieved by Aoxing + Received SFDAGMP + AOB strategic + NYSE AMEX listing + JV between Johnson, certificate for capsule + SFDARAD license for Partnership Matthey and Aoxing production Burprenorphine ¢ LRT acquisition SFDA Js for Naloxone sublingual * OR. Pharma + SFDA approvals ‘ete
Slide 9: Selected Narcotic & Pain Medicine Portfolio
Selected Narcotic & Pain Medicine Portfolio* lineal Gat the Prectnieal Clinical completed —eenae Zhongtongan Pahari Dentalioral pain ‘Bismuth Potassium Citrate Siomamnache (Oral Solution Chronic gastritis Naloxone HCI ‘Opioi & alcoho! (injection) Overdose Tgosorbide Mononitrate ‘Anigna pectoris, (in
Slide 10: Proven Track Record of Narcotic Research & Development
Proven Track Record of Narcotic Research & Development Expertise Technology Platform Partnership API chemical synthesis, proprietary formulation development, PKIPD studies, drug safety and toxicology ‘Specialized team in SFDA documentation, application, regulatory filing and IP protection 40 members
Slide 11: Recent Joint-Venture
Recent Joint-Venture Joint effort to capitalize on narcotic and pain-management market opportunity in China (Mi) Johnson Matthey Macfarlan Smith Aoxing Pharma Hebei Aoxing API Pharmaceutical Cé = Research, development, manufacturing & marketing of API for narcotics & neurological drugs for the China
Slide 12: AXN Strategic Alliances
AXN Strategic Alliances Kx ‘Pharma ip * Co-developing MoxDuo@IV, and MoxDuo®IR (combo of oxycodone and morphine) * Targeting acute moderate to severe pain * AXN exclusive marketing rights in China for MoxDuo@lV & MoxDuo@IR * Program to meet the US FDA and China SFDA regulatory requirements PHOENIX S
Slide 13: Positioning of AXN Products
Positioning of AXN Products = Cancer pain = Post-operative pain Other pains Rx Indication = Standard care Rx = In-patient population + Chronic treatment * Fast acting = Drug dependence * Safety Distribution = Costs & fees * Distribution channels * Price sensitivity = Government policy = Insurance co
Slide 14: Financial Snapshot
Financial Snapshot Balance Shest (Sin thousands) 12/31/2010 | Assets Cash 2,809 ‘Accounts receivables 2,237 Inventory 1,622 prepaid expenses & Other current assets 1,845 Total current assets 8.213 Property and equipment, net 28,857 (Other intangible assets and Goodwill 20,911 Deferred tax assets 3,7
Slide 15: Rx Marketing Strategy — Target Five Key Markets
Rx Marketing Strategy — Target Five Key Markets = Three-pronged approach —) = Direct sales BEAR E = Distributors = Government procurement Is in 5 key markets
Slide 16: Significantly Underserved Narcotics Pain Market
Significantly Underserved Narcotics Pain Market Underserved narcotic medicine market in Morphine consumption in China and other China countries (Y2008, Unit: Ton) 2% = Only 25 narcotic drugs available in a China vs. 123 in countries such as the 95 US, ete. = Morphine consumption comparison in 2008 =
Slide 17: Significantly Underserved Narcotics Pain Market
Significantly Underserved Narcotics Pain Market Market size was estimated to be $700m in Y2010 CAGR at 27% between 2005 and 2009 Narcotic drug sales at selected Chinese hospital 09 35,000 7 gram fi 5 8 CED 53.54% sayzi0) 7 Som 30,000 } —+— 1448 aK Boe 25,000 ane 29,000 15,04622:5) 30% 15,000 | 12,27
Slide 18: High Barrier to Entry in China's Narcotic Drug Market
High Barrier to Entry in China’s Narcotic Drug Market An essentially closed/protected market in China only 13 designated narcotic drug makers licensed by China SFDA Only 3 - 4 serious players in the market Guidance in granting narcotic drug licenses by China SFDA: + API~1-2 licensees per product Fin
Slide 19: SFDA Narcotic Drug Development & Approval Process
SFDA Narcotic Drug Development & Approval Process + => => ‘approval by the Si NDA application, review and FDA Clinical studies of efficacy and safety, bioequivalence on Chinese patients, GMP and pilot process Preclinical development, animal PK, PD and Tox, dosage and formulation optimization qualifi
Slide 20: Market Drivers in Chinese Narcotics & Pain Medicines
Market Drivers in Chinese Narcotics & Pain Medicines Prior to 2000, very few narcotics In China, ~ 1% of the US market, currently ‘about $700 mil, 27% CAGR Need for new and effective treatments, especially for cancer, #1 cause of death In China, 15 mil total patients New government efforts to Increa
Slide 21: Milestones and Catalysts
Milestones and Catalysts = 1Q - Key workshops (pretreatment, extraction, tincture, and pill dosage) obtain GMP certification = 2011 — Hebei Province SFDA inspection of the synthesis workshop at the Aoxing- Johnson Matthey JV and completion of SFDA GMP certification of JV by using Johnson Matthey pro
Slide 22: AXN Investment Highlights
AXN Investment Highlights Growing and underserved market for narcotics and pain medicine in China jh bar r to entry in the Chinese narcotic drug market Rich pipeline of narcotics and other pain medicines Committed management team with over 100 years pharmaceutical experience Apartner of choice for i
Aoxing Pharmaceutical Company — Investor Presentation (March 2011) on 6ix