Slide 1: Gelesis, Makers of Plenity
GELESI| Makers of Plenity
Slide 2: Disclaimer
Disclaimer 2 This confidential presentation is being delivered to you by Gelesis, Inc. (“Gelesis”) and Capstar Special Purpose Acquisition Co rp. (“CPSR”) in connection with a potential business combination (the “Business Combination”) between Gelesis and CPSR and the offering of securities of the p
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) 3 Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the propert y o f their respective owners, and Gelesis’ and CPSR’s use thereof does not imply an affiliation with, or endorsement by, the owners of su
Slide 4: Capstar & Gelesis Teams
Capstar & Gelesis Teams 4 • Deep experience identifying value in both public and private companies in the Consumer, Media, Healthcare, and Hospitality sectors • Founded Capstar Partners in 2000, participating in middle market buyouts and real estate investments, among others R. Steven Hicks Chairman
Slide 5: Transaction Overview
Transaction Overview 5 Overview 1 Valuation 2 PIPE Financing Ownership 3 Earn - out Use of Proceeds Enterprise value of ~$1.0 billion Equity value of ~$1.3 billion 5.6x and 2.2x 2022E and 2023E net sales, respectively 7.0x 2023E EBITDA $100.0 mi llion common equity PIPE at $10.00 per share Investors
Slide 6: Capstar Investment Thesis
Capstar Investment Thesis Plenity is a Novel, Accessible, and FDA - cleared Solution Addressing the Obesity Crisis 6 Large Addressable Market with the Broadest Label of Any Weight Management Approach Disruptive Proprietary Solution Ready to Scale Strong R&D Pipeline Targeting Adjacent Markets 5 Beta
Slide 7: Capstar & Gelesis: A Highly Complementary Combination
Capstar & Gelesis A Highly Complementary Combination 7 r Disruptive weight management platform Large and growing addressable market Team of highly experienced scientists & commercialization leaders Early success with consumer engagement Leading brand builders Experience supporting growth of digitall
Slide 8: Overweight and Obesity: Global Health Crisis Left Unattended
Overweight and Obesity Global Health Crisis Left Unattended 8 Sources: Ourworldindata.org/grapher/share - of - adults - who - are - overweight. Xia Y, Kelton C, Guo J. Treatment of obesity: Pharmacotherapy trends in the United States from 1999 to 2010. Obesity 2015; 23:1721 – 1728. Drug therapy is o
Slide 9: The Pandemic has Put a Spotlight on Obesity and Access to Care
The Pandemic has Put a Spotlight on Obesity and Access to Care 9 1. Obesity Reviews metanalysis, August 2020. 2. Extrapolated from 246,324,983 Americans aged 18+ based on an online survey conducted Oct 26 - Nov 3 by Kelton Global on behalf of Gelesis. 3. Cdn2.hubspot.net. 2020. Telemedicine Adoption
Slide 10: Gelesis Mission
Gelesis Mission 10 Empower people to improve and change their diet, lifestyle, and health, utilizing a nature - inspired technology
Slide 11: Today's Obesity Crisis Driven by Portion Size and Food Choices
Today’s Obesity Crisis Driven by Portion Size and Food Choices 11 Portion Size Food Quality Source: https://www.vox.com/2016/8/31/12368246/obesity - america - 2018 - charts.
Slide 12: Our Proprietary Biomimetic Technology
Our Proprietary Biomimetic Technology A Hydrogel Designed to Mimic the Effect of Eating Raw Vegetables 12 Within minutes, a large volume of small solid gel pieces, with composition and firmness similar to ingested raw vegetables, is created in the stomach Cucumber
Slide 13: From Science to Consumer
From Science to Consumer 13 Gelesis incubated from PureTech Health with world leading experts Breakthrough in material science The first & only superabsorbent hydrogel made from foods Disruptive telehealth & pharmacy distribution and patient support fully operational Large scale commercial manufactu
Slide 14: Strong Executive Team with Rich Commercial and Operational Experience
Strong Executive Team with Rich Commercial and Operational Experience 14 Yishai Zohar Chief Executive Officer & Founder • Entrepreneur and inventor with strong track record of launching industry innovating companies. Recognized by EY & Fast Company • Co - founded PureTech (Nasdaq: PRTC), a biopharma
Slide 15: Clinical Proof & FDA Label
. 2° "os SE aFilinical Proof & FDA Label ? y " és, i> -§ . GELESIS
Slide 16: Plenity in Action
Plenity in Action 16 Intake Plenity capsules taken with water prior to a meal Release & Expand Thousands of particles are released and expand by absorbing water , creating small gel pieces, filling up to ~1/4 of the stomach volume Changing food properties in the stomach The small gel pieces mix homo
Slide 17: Robust Efficacy / Safety Profile
Robust Efficacy / Safety Profile 17 Responders Adults achieving 5% or greater weight loss Plenity doubled the odds of achieving 5% or greater weight loss compared with placebo These responders lost on average 10% of their weight (22 lbs) or ~3.5 inches from their waist 6 10 out of Source: Greenway,
Slide 18: Plenity: Broadest Label of Any Weight Management Approach
Plenity Broadest Label of Any Weight Management Approach 18 Plenity is FDA - cleared, regulated as a device, prescribed like a drug, and promoted like a consumer brand Clinically Proven FDA - cleared, with a robust efficacy / safety profile Broad Label 1 ~150 million adults 2 in US alone with excess
Slide 19: Go to Market Strategy
™? oe ® oy Goto Market Strategy 4 he | GELESIS.
Slide 20: Addressing Unmet Need in Weight Management for Majority of Americans
Addressing Unmet Need in Weight Management for Majority of Americans 20 1. Based on 2013 - 2014 cycle of NHANES data. 2. Indicated up to 40 BMI. US Population 1 Covering BMI 25 - 30 spectrum with minimal competition from existing therapies 33M 47M 50M 23M 19M BMI 25-27 BMI 27-30 BMI 30-35 BMI 35-40
Slide 21: Platform Technology Allows for Market Disruption & Rapid Adoption
Platform Technology Allows for Market Disruption & Rapid Adoption 21 Consumer Engagement Direct - to - consumer marketing as a primary demand driver – significantly reduces sales force costs Convenient Patient Access Immediate patient access to physicians at no cost with real - time communications l
Slide 22: Consumer-Centric Model
Consumer - Centric Model Convenience, Journey Support, and Affordable Pricing 22 Patient Activation Fulfillment Direct - to - patient Traditional HCP Interaction Telemedicine Visit Increased Telehealth Satisfaction ~10% higher than traditional live HCP
Slide 23: Partnerships to Support Members' Wellness
Partnerships to Support Members’ Wellness 23 Patient Access Lifestyle Support Expanding Reach • Leverage Ro’s nationwide telehealth services to help make Plenity easily available to appropriate patients • Mail order pharmacy for non - telehealth patients • Discount on Noom subscription for Plenity m
Slide 24: Attractive Consumer Flywheel, Driving Enhanced Value
Attractive Consumer Flywheel, Driving Enhanced Value and Establishing Strong Brand Equity 24 Subscription Business Model Monthly / quarterly shipments High Member Virality 80 % active private community members High Consumer Demand/ Easy Physician Access ~7 - 9K myplenity.com website hits a day and 9
Slide 25: Surpassed All Other Branded Weight Loss Products in New Patients
Surpassed All Other Branded Weight Loss Products in New Patients for October 2020 25 Limited Launch Proof of Concept Plenity Already Surpasses Market Leaders New Monthly Patients 9.8K 6.7K 6.5K 1 1 Adoption: Plenity grew membership to >48K, adding ~12K in only 6 weeks (limited by supply) Engagement:
Slide 26: Manufacturing & Financial Forecast
Manufacturing & Financial Forecast
Slide 27: Rapidly Building Manufacturing Capacity
Rapidly Building Manufacturing Capacity 27 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Monthly Units Manufacturing Supply Total Demand Projected Production & Demand Over $40 million invested thus far • Gelesis owns land to construct 8 lin
Slide 28: Significant Value Created by Commercial Launch of Plenity
Significant Value Created by Commercial Launch of Plenity 28 Projected Revenue Forecast Financial Summary 20 141 311 6 30 131 2021 2022 2023 US Revenue RoW Net Revenues 69,000 244,000 421,000 Units 1 Sold in Dec. Expected >50% CAGR through peak Achieve profitability in 2023E Plenity Targets • US bus
Slide 29: Strong Economic Margins
Strong Economic Margins 29 US Unit Economics 2021E 2022E 2023E Gross Selling Price $96 $97 $99 Gross - to - net deduction 76% 77% 77% Net selling price $73 $75 $76 Cost of goods $50 $28 $22 Gross Profit $23 $46 $54 % Gross margin 32% 62% 71% Total Economics ($M): Net revenues 26 171 442 Gross profit
Slide 30: Use of Proceeds Focused on Commercialization
Use of Proceeds Focused on Commercialization 30 Drive patient demand through top of funnel awareness and performance marketing Build contract salesforce to drive awareness among healthcare professionals and accelerate traditional prescribing Expand manufacturing to meet anticipated demand and suppor
Slide 31: Near-term Milestones
Near - term Milestones 31 2021 2022 2023 Full Launch Comprehensive promotional rollout to patients and physicians Q4 2021 Manufacturing Completion of first commercial scale facility in Q4 2021 with expected 4X capacity in Q2 2022E Breakeven Expected annual breakeven cash flow in 2023E Weight loss st
Slide 32: Investment Highlights
Investment Highlights 32 Large Addressable Market with Broadest Label of Any Weight Management Approach Beta Product Launch Demonstrates High Demand FDA Cleared Innovative and Proprietary Solution Ready to Scale Strong R&D Pipeline Targeting Adjacent Markets Seeks to become Market Leader with Blockb
Slide 33: Important Safety Information
Plenity is indicated to aid in weight management in adults with excess weight or obesity, body mass index (BMI) of 25 to 40 kg/m², when used in conjunction with diet and exercise. Important Safety Information Patients who are pregnant or are allergic to cellulose, citric acid, sodium stearyl fumarat
Slide 34: Appendix
Appendix
Slide 35: Detailed Transaction Overview
Detailed Transaction Overview ( US$Million ) 35 1. Inclusive of a $10mm PIPE commitment from Kennedy Lewis Investment Management conditioned upon the closing of a $100mm secured credit facility with the Company, which is subject to the completion of due diligence, final documentation and customary c
Slide 36: Valuation and Operational Benchmarking
2.2x 8.1x 3.4x 3.3x 10.2x 10.6x 4.7x 8.2x 8.2x Valuation and Operational Benchmarking 36 TEV / 2023E Revenue 1 Gelesis Premium / (Discount) to Peers TEV / 2023E Gross Profit 1 Gelesis Premium / (Discount) to Peers 21 - 23E Revenue Growth CAGR 1 23E Gross Margin 1 Consumer Subscription 3 Disruptive H
Slide 37: GLOW Study Completed FDA Pivotal Trial
GLOW Study Completed 6 - month FDA Pivotal Trial 37 Source: Greenway, F. et. al, A Randomized, Double - Blind, Placebo - Controlled Study of Gelesis100: A Novel Nonsystemic Oral Hydrog el for Weight Loss. Obesity (2018) 0, 1 - 12. doi:10.1002/oby.22347. Statistically Significant Improvement vs. Plac
Slide 38: Demonstrated Safety Profile of Plenity Similar to Placebo
Plenity (n) Placebo (n) % of subjects withdrew because of AE 1 3.6% (8) 3.3% (7) % of subjects with any TEAE 1 71.3% (159) 70.6% (149) % of subjects with severe TEAE 3.6% (8) 4.7% (10) % of subjects with moderate TEAE 39.5% (88) 39.3% (83) % of subjects with mild TEAE 55.6% (124) 55.5% (117) # of su
Slide 39: Most Product-related GI Adverse Events were Mild
Plenity (N=223) Placebo (N=211) Gastrointestinal Disorders # of Events % Patient with Event [% (n/N)] # of Events % Patient with Event [% (n/N)] All 158 37.7% (84/223) 105 27.5% (58/211) Mild 119 28.3% (63/223) 83 20.4% (43/211) Moderate 35 8.1% (18/223) 20 6.6% (14/211) Severe 4 1.3% (3/223) 2 0.5%
Slide 40: No Individual GI Adverse Event was Statistically Different than Placebo
No Individual GI Adverse Event was Statistically Different than Placebo 40 1. Possibly or probably related. Source: Greenway, F. et. al, A Randomized, Double - Blind, Placebo - Controlled Study of Gelesis100: A Novel Nonsystemic Oral Hydrog el for Weight Loss. Obesity (2018) 0, 1 - 12. doi:10.1002/o
Slide 41: Gelesis Platform Potential Expansion to Large Adjacent Populations
Gelesis Platform Potential Expansion to Large Adjacent Populations 41 Note: There is some overlap among the conditions that are represented by the blue circles; FC = Functional Constipation. 1. Based on 2013 - 2014 cycle of NHANES data. 2. CDC National Diabetes Statistics Report 2020. 3. Depending o
Slide 42: Gelesis Patents
Gelesis Patents 42 Patent Families Gelesis products are protected by 9 families of patents and patent applications with more than 100 individual issued patents in major markets around the world, covering composition of matter, methods of use, and methods of production for product candidates and the