Gelesis Holdings, Inc. · OTC:GLSHQ
Gelesis — SPAC Merger (July 2021)
42 slides from Gelesis's SPAC merger presentation, July 2021
Slide 1: Gelesis, Makers of Plenity
GELESIS Makers of Plenity GELESIS
Slide 2: Disclaimer
Disclaimer This confidential presentation is being delivered to you by Gelesis, Inc. (“Gelesis”) and Capstar Special Purpose Acquisition Corp. (“CPSR”) in connection with a potential business combination (the “Business Combination”) between Gelesis and CPSR and the offering of securities of the post
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners, and Gelesis’ and CPSR’s use thereof does not imply an affiliation with, or endorsement by, the owners of such t
Slide 4: Capstar & Gelesis Teams
Capstar & Gelesis Teams Clayton Christopher R. Steven Hicks Kathryn Cavanaugh Co-Sponsor and Chairman, CEO and CFO Director Board Advisor • Deep experience identifying value in • Co-founder of CAVU Venture Partners • Managing Partner, Capstar Ventures Yishai Zohar Alessandro Sannino both public and
Slide 5: Transaction Overview
Transaction Overview Enterprise value of ~$1.0 billion Overview 1 Equity value of ~$1.3 billion 5.6x and 2.2x 2022E and 2023E net sales, respectively Valuation2 7.0x 2023E EBITDA $100.0 million common equity PIPE at $10.00 per share PIPE Financing Investors include PIMCO, Kennedy Lewis Investment Ma
Slide 6: Capstar Investment Thesis
Capstar Investment Thesis Plenity is a Novel, Accessible, and FDA-cleared Solution Addressing the Obesity Crisis Large Addressable Market with the Broadest Disruptive Proprietary Solution Ready to Scale Label of Any Weight Management Approach Effective FDA cleared3 with 6 out of 10 adults having los
Slide 7: Capstar & Gelesis: A Highly Complementary Combination
Capstar & Gelesis A Highly Complementary Combination r Disruptive weight management platform Leading brand builders Experience supporting growth Large and growing addressable market of digitally-native brands Team of highly experienced scientists Deep relationships with influencers & commercializati
Slide 8: Overweight and Obesity: Global Health Crisis Left Unattended
Overweight and Obesity Global Health Crisis Left Unattended Behavioral approaches alone had limited long-term success Drug therapy is only used in 2% of eligible population due to safety / tolerability issues Sources: Ourworldindata.org/grapher/share-of-adults-who-are-overweight. 8 Xia Y, Kelton C,
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 Excess Weight has taken How we Access Healthcare on Increased Significance has Changed for the Long Haul are likely to would be People with obesity are 48% more likely to die from COVID1 83% continue to & 93% likely to use use telehealth
Slide 10: Gelesis Mission
Gelesis Mission Empower people to improve and change their diet, lifestyle, and health, utilizing a nature-inspired technology 10
Slide 11: Today's Obesity Crisis Driven by Portion Size and Food Choices
Today’s Obesity Crisis Driven by Portion Size and Food Choices Portion Size Food Quality 11 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 Cucumber Within minutes, a large volume of small solid gel pieces, with composition and firmness similar to ingested raw vegetables, is created in the stomach 12
Slide 13: From Science to Consumer
From Science to Consumer With a beta launch, Plenity became the First Ex-US leading branded strategic weight management Large scale partnership commercial prescribed product Disruptive to commercialize for new patients1 manufacturing Plenity in China telehealth process developed Robust & pharmacy ef
Slide 14: Strong Executive Team with Rich Commercial and Operational Experience
Strong Executive Team with Rich Commercial and Operational Experience Yishai Zohar David Pass Harry L. Leider Elaine Chiquette Elliot Maltz Alessandro Sannino Chief Executive Officer Pharm.D., M.D., M.B.A, FACPE, Pharm.D., CPA, Ph.D., Head of Material & Founder Chief Commercial Chief Medical Officer
Slide 15: Clinical Proof & FDA Label
aFlinical Proof & FDA Label
Slide 16: Plenity in Action
Plenity in Action Intake Release Changing food Changing food Elimination Plenity capsules & Expand properties properties Particles degrade in taken with water Thousands of in the stomach in the intestine the large intestine, prior to a meal particles are The small gel pieces Particles maintain water
Slide 17: Robust Efficacy / Safety Profile
Robust Efficacy / Safety Profile Responders Super Responders Adults achieving 5% or greater weight loss Adults achieving 10% or greater weight loss 6 out of 26% were “super-responders” to Plenity, losing on average 14% of their weight (30 lbs) 10 These responders lost on average 10% of their weight
Slide 18: Plenity: Broadest Label of Any Weight Management Approach
Plenity Broadest Label of Any Weight Management Approach 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 Label1 ~150 million adults2 in US alone with excess weight f
Slide 19: Go-to-Market Strategy
e’*es » *s % Go-to-Market Strategy é ws, ip o. GELESIS ' y
Slide 20: Addressing Unmet Need in Weight Management for Majority of Americans
Addressing Unmet Need in Weight Management for Majority of Americans US Population1 50M 47M 33M 23M 19M BMI 25-27 BMI 27-30 BMI 30-35 BMI 35-40 BMI >40 Hope to lose 15-40 pounds Hope to lose >40 pounds Current oral therapies infrequently Target2 meet consumer expectations Covering BMI 25-30 spectrum
Slide 21: Platform Technology Allows for Market Disruption & Rapid Adoption
Platform Technology Allows for Market Disruption & Rapid Adoption Consumer Direct-to-consumer marketing as a primary demand driver – significantly Engagement reduces sales force costs Convenient Immediate patient access to physicians at no cost with real-time Patient Access communications leveraging
Slide 22: Consumer-Centric Model
Consumer-Centric Model Convenience, Journey Support, and Affordable Pricing Telemedicine Visit Patient Traditional HCP Fulfillment Activation Interaction Direct-to-patient Increased Telehealth Satisfaction ~10% higher than traditional live HCP 22
Slide 23: Partnerships to Support Members' Wellness
Partnerships to Support Members’ Wellness Patient Access Lifestyle Support Expanding Reach • Leverage Ro’s • Mail order • Discount on • Discount for • Warehousing, • Commercialization nationwide pharmacy for non- Noom subscription Plenity Members distribution, and rights of Plenity in telehealth ser
Slide 24: Attractive Consumer Flywheel
Attractive Consumer Flywheel, Driving Enhanced Value and Establishing Strong Brand Equity High Consumer Demand/ Easy Physician Access Favorable Benefit / Risk Profile ~7-9K myplenity.com website hits a day and 90-95% grant rate among 6 out of 10 adults achieved 10% weight eligible patients in telehe
Slide 25: Surpassed All Other Branded Weight Loss Products in New Patients for October 2020
Surpassed All Other Branded Weight Loss Products in New Patients for October 2020 Limited Launch Proof of Concept Strong Early Metrics Plenity Already Surpasses Market Leaders New Monthly Patients Adoption: Plenity grew membership to >48K, 9.8K adding ~12K in only 6 weeks (limited by supply) 6.7K 1
Slide 26: Manufacturing & Financial Forecast
Manufacturing & Financial Forecast
Slide 27: Rapidly Building Manufacturing Capacity
Rapidly Building Manufacturing Capacity Projected Production & Demand Manufacturing capacity & cost • 160,000 monthly units1 per line 700,000 • 18- to 24-month lead time to build each line 600,000 500,000 Construction of first three lines underway • Line 1: 50% capacity Aug 2021, Monthly Units 400,0
Slide 28: Significant Value Created by Commercial Launch of Plenity
Significant Value Created by Commercial Launch of Plenity Financial Summary Projected Revenue Forecast $Million Expected >50% CAGR through peak 442 131 Achieve profitability in 2023E Plenity Targets 171 • US business will constitute 70% of 30 311 net revenues 26 141 • Target US population of 18 mill
Slide 29: Strong Economic Margins
Strong Economic Margins US Unit Economics Key Assumptions 2021E 2022E 2023E and Drivers of Value Gross Selling Price $96 $97 $99 Gross-to-net deduction 76% 77% 77% Initial pricing at $98 per 28-day supply Net selling price $73 $75 $76 Cost of goods $50 $28 $22 Strong margins with cost of goods Gross
Slide 30: Use of Proceeds Focused on Commercialization
Use of Proceeds Focused on Commercialization Drive patient demand through top of funnel awareness and performance marketing Manufacturing Build contract salesforce Investments to drive awareness among healthcare professionals and Illustrative accelerate traditional prescribing Commercial Business La
Slide 31: Near-term Milestones
Near-term Milestones Full Plenity Launch Manufacturing Full Launch Breakeven Completion of first commercial scale Comprehensive promotional rollout to Expected annual breakeven facility in Q4 2021 with expected 4X patients and physicians Q4 2021 cash flow in 2023E capacity in Q2 2022E 2021 2022 2023
Slide 32: Investment Highlights
Investment Highlights Seeks to become Market Large Addressable Market with FDA Cleared Innovative Leader with Blockbuster Broadest Label of Any Weight and Proprietary Solution Potential. High Growth, High Management Approach Ready to Scale Margin Subscription Business Experienced and Passionate Beta
Slide 33: Indication and Important Safety Information
Plenity is indicated to aid in weight management in adults with excess weight or obesity, body mass index (BMI) of 25 to 40 kg/m², when used in conjunction with diet and exercise. Important Safety Information • Patients who are pregnant or are allergic to cellulose, citric acid, sodium stearyl fumar
Slide 34: Appendix
Appendix
Slide 35: Detailed Transaction Overview (US$Million)
Detailed Transaction Overview (US$Million) Sources Pro Forma Valuation Pro Forma Ownership Common equity PIPE (at $10.00 per share) $1001 Illustrative price per share $10.00 (at $10.00 per share)3 Capstar cash-in-trust2 276 Pro forma shares outstanding (million)2,3 132.8 4% Stock consideration to Ge
Slide 36: Valuation and Operational Benchmarking
Valuation and Operational Benchmarking TEV / 2023E Revenue1 Health and Wellness Consumer Health and Wellness DTC Gelesis Premium / (Discount) to Peers 8.5x (78%) (79%) (73%) (73%) (73%) (53%) 8.2x (36%) (33%) 8.2x 8.1x 10.2x 10.6x 8.2x 8.2x 2.2x 3.4x 4.7x 4.9x 3.3x TEV / 2023E Gross Profit1 (84%) Ge
Slide 37: GLOW Study: Completed 6-month FDA Pivotal Trial
GLOW Study Completed 6-month FDA Pivotal Trial Statistically Significant Improvement vs. Placebo 6 Months Multi-center, Randomized, Double-blind, 300 kcal/day deficit United States Europe Plenity 44% 56% 2.25 g BID Lunch (Plenity), Dinner (Plenity) 223 subjects Placebo 213 subjects Lunch (Placebo),
Slide 38: Excellent Demonstrated Safety Profile of PLENITY Similar to Placebo
Excellent Demonstrated Safety Profile of PLENITY Similar to Placebo Plenity (n) Placebo (n) % of subjects withdrew because of AE1 3.6% (8) 3.3% (7) % of subjects with any TEAE1 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%
Slide 39: Most of the Product-related GI Adverse Events were Mild
Most of the Product-related GI Adverse Events were Mild Plenity (N=223) Placebo (N=211) Gastrointestinal % Patient with % Patient with # of Events # of Events Disorders Event [% (n/N)] 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
Slide 40: No Individual GI Adverse Event was Statistically Different than Placebo
No Individual GI Adverse Event was Statistically Different than Placebo Plenity % (n) Placebo % (n) p-value GI-related AEs1 37.7% (84) 27.5% (58) 0.0248 Diarrhea 10.3% (23) 7.6% (16) 0.4015 Abdominal distension 10.8% (24) 5.7% (12) 0.0579 Infrequent bowel movements 9.0% (20) 4.7% (10) 0.0910 Flatule
Slide 41: Gelesis Platform: Potential Expansion to Large Adjacent Populations
Gelesis Platform Potential Expansion to Large Adjacent Populations ~150 ~120 ~5 ~35 ~64 MM1 MM2 MM4 MM5 MM6 2019 2021 Early 2022E 2022E 2023E Plenity for GS200 in Plenity in GS500 GS300 for excess weight prediabetes & diabetes adolescents3 for FC NAFLD Metabolic conditions Functional GI disorder Ext
Slide 42: Gelesis Patents
Gelesis Patents Protection through at least 2035 with issued and pending patents (in US and ex-US) broadly covering 9 compositions of matter, methods of use and methods of production, with potential for extensions Patent Families Composition Patents covering Plenity (GS100) and GS200 composition of