Sonoma Pharmaceuticals, Inc. · NASDAQ:SNOA
Sonoma Pharmaceuticals — Oculus Innovative Sciences — Dawson James Investor Conference 2015
22 slides from Sonoma Pharmaceuticals's conference presentation, Oct 15, 2015
Slide 1: Investor Presentation at Dawson James Investor Conference
Investor Presentation At Dawson James Investor Conference October 15, 2015 (NASDAQ: OCLS & OCLSW)
Slide 2: Forward Looking Statement
This presentation includes forward - looking statements that are made pursuant to the “safe harbor ” provisions of the Private Securities Litigation Reform Act of 1995 . While these statements are made to convey to the public the company’s progress, business opportunities and growth prospects, reade
Slide 3: Corporate Overview & Investment Summary
Corporate Overview & Investment Summary Page | 3 Oculus Innovative Sciences, Inc. Oculus is a specialty pharmaceutical company, focused on developing and selling unique, affordable & branded products for dermatology and advanced tissue care 11 510(k)s and 10 CE marks cleared Microcyn - based product
Slide 4: 2014 – Year of Transformation after Ruthigen IPO
2014 – Year of Transformation - after Ruthigen IPO Strengths: Strong and growing international revenue base Versatile and effective Microcyn technology Valuable position in Ruthigen Challenges: With Ruthigen IPO, lost founding CEO and most of Board Declining revenues and lost major animal health car
Slide 5: Solution: New Board, New Strategy & New Leadership
Solution: New Board, New Strategy & New Leadership Core Market: Grow Dermatology Business with Direct Sales Force in U.S. Step 1 : Build a direct sales force platform , using Microcyn as initial cornerstone with pipeline of unique, affordable & branded products Diversify into non - HOCI technologies
Slide 6: Fall 2014 to 2015: Execution and Results
Fall to Late 2014: Crafted a very detailed 3 year action and financial plan, blessed by the New Board Hired very talented, derm sales & marketing, management team; over 70+ experience Hired 10 experienced field sales people ― Located in high volume regions based on IMS data Set up national wholesale
Slide 7: Why Picked Dermatology as Core Market?
Why Picked Dermatology as Core Market? 1. Dermatologists are high prescribers and early adopters 2. Concentrated market could be adequately covered by relatively small sales force 3. Proven effectiveness of our Microcyn technology in dermatology 4. Abundant product pipeline with Microcyn & large add
Slide 8: Proven Effectiveness of Microcyn in Dermatology
Microcyn - HOCI - Only compound in the world with unique combination: 1. SAFE as saline, including in sensitive body cavities 2. BROAD spectrum antimicrobial ― Effective against bacteria, certain viruses, fungi & spores via unique mechanism of action ― No antibiotic resistance observed and kills res
Slide 9: Microcyn: A Robust Dermatology Pipeline
Microcyn Atopic Dermatitis “ Alevicyn Gel” Scar Management “ Celacyn ” Acne Vulgaris (Only CE Mark) Seborrheic Dermatitis New product Tinea Pedis New product Post - Procedure Combo pack Dermatologic Surgical Procedures “ Alevicyn Liquid” Microcyn: A Robust Dermatology Pipeline (4) Page | 9 Oculus In
Slide 10: Large Addressable Dermatology Markets
Large Addressable Dermatology Markets (4) Page | 10 Oculus Innovative Sciences, Inc. Breakdown of Surgical Skin Procedures in the U.S. Source: Mattson Jack Group Survey, “US Anti - Scarring Market” by the Nemetz Group December 2009, LifeSci Advisors Reconstructive 3.9MM Elective (Hospitals) 10.4MM E
Slide 11: Favorable Product Pricing & Elasticity – Atopic Dermatitis
Favorable Product Pricing & Elasticity – Atopic Dermatitis (5) Page | 11 Oculus Innovative Sciences, Inc. Price Unit Size List of Competitive Products: Per Gram Price (in grams) HOCl: Alevicyn Gel 6 oz $0.50 $85 170 Alevicyn Spray Gel 6 oz $0.47 $80 170 Atrapro Gel 4 oz $1.90 $216 114 Aurstat Gel 8
Slide 12: Microcyn Product Comparison – Atopic Dermatitis
( “ TIMs ” ) Topical Immunomodulators Topical Corticosteroids Alevicyn (Microcyn) Reduces Itch --- ++ +++ Reduces inflammation Anti - microbial & Time to kill b+ --- +++ Improves broken skin Safety Side effects Microcyn Product Comparison – Atopic Dermatitis Page | 12 Oculus Innovative Sciences, Inc
Slide 13: Sales Growth, Quick Sales Ramp & Breakeven
Sales Growth, Quick Sales Ramp & Breakeven (6) Page | 13 Oculus Innovative Sciences, Inc. • Quick sales ramp: 4 to 9 months • Cover direct field sales costs ($40k per qtr ) in less than 12 months • Cover direct field sales costs per person with $53k revenue per qtr
Slide 14: High Valuation for Dermatology Revenue
High Valuation for Dermatology Revenue (7) Page | 14 Oculus Innovative Sciences, Inc. Summary of Major M&A Deals Since 2008 Target Company ($M’s) Price Revenue Multiple Stiefel Laboratories 3,600 1,000 3.6 Medicis Pharmaceutical 2,600 721 3.6 Fougera Pharmaceuticals 1,525 429 3.6 PreCision Dermatolo
Slide 15: Alevicyn Antipruritic Gel & Dermal Spray
Gel and dermal spray for relief of itch and pain from dermatoses ― Reduce/ replace use of steroids and TIMs ― Addressable U.S. market of $500 - $600 million ― Issued U.S. patent for HOCl on atopic dermatitis Only proven pure HOCI liquid on the market used for dermatoses and surgical procedures ― Ski
Slide 16: Celacyn Scar Management Gel
Approved by FDA for management of old and new keloid and hypertrophic scarring. One of two prescription scar products & large addressable market for scars in U.S. Celacyn vs. Kelo - Cote Double Blind, Randomized Clinical Study End Points % of Improvement Over Baseline at 12 weeks Celacyn™ Scar Manag
Slide 17: Product Revenue Growth: 37% 1st QTR & 38% FY 2015
Product Revenue Growth: 37% 1st QTR & 38% FY 2015 U.S.: Advanced Tissue Care & Derm Partner (27% of total product revenue) ― Product revenue growth only: 122% 1 st QTR ― Direct sales force of 20 outside and 9 inside people – derms & acute care ― Launched into animal health care with the SLA group. ―
Slide 18: Q1 Product Revenue up 37% vs. Same Period Last Year
Q1 Product Revenue up 37% vs. Same Period Last Year Page | 18 Oculus Innovative Sciences, Inc. Three Months Ended June 30, Product related revenues 2015 2014 $ Change % Change United States $ 787 $ 355 $ 432 122 % Latin America 1,558 1,093 465 43 % Europe and Rest of the World 571 673 (102 ) (15) %
Slide 19: Catalysts to Derm Growth: New Products & More Sales Reps
Continued Growth of Current Products Sold: 1. Alevicyn Hydro Gel for atopic dermatitis – Q4 2014 2. Alevicyn Dermal Spray for use on procedures – Q4 2014 3. Celacyn for scar treatment – Q1 2015 4. Alevicyn Spray Gel for “no touch” application on hard to reach dermatitis – Q2 2015 Growth from New Pro
Slide 20: Catalysts in Next Months
Catalysts in Next 12 Months Oculus Innovative Sciences, Inc. U.S.: grow four current dermatology products via direct sales force ― Alevicyn Gel, Spray Gel, Dermal Spray & Celacyn EU: launch five dermatology products via country specific distributors ― Atopic dermatitis, scar, acne, dermatological pr
Slide 21: Low Value and High Revenue Growth Investment
Low Value and High Revenue Growth Investment Page | 21 Oculus Innovative Sciences, Inc. Low valuation of $20 million vs cash & revenue Current cash of $8.8 million as of June 30, 2015 Revenue of about $14 million No debt Strong expected product revenue growth for this fiscal year United States – 50%
Slide 22: Thank You: Questions and Answers
Thank You Questions and Answers Page | 22 Oculus Innovative Sciences, Inc.
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