Harrow, Inc. · NASDAQ:HROW
Harrow — Imprimis Pharmaceuticals — Investor Presentation (October 2015)
35 slides from Harrow's investor presentation, Oct 27, 2015
Slide 1: Imprimis Pharmaceuticals
IMPRIMIS PHARMACEUTICALS NASDAQ: IMMY MARK L. BAUM, CEO OCTOBER 2015 imprimis
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains express "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward- looking statements. These statements are based on current expectations of future events. If underlying assum
Slide 3: Company Overview
COMPANY OVERVIEW = We plan to establish Imprimis as a national compounded drug choice for MDs, hospitals and large private and public payors = Weare focused in key therapeutic segments including: ophthalmology, urology and sinus = Our “land and expand” model uses the value of our proprietary formula
Slide 4: Compounding Investment Trends
COMPOUNDING INVESTMENT TRENDS = Compounding sector undergoing “growth renaissance” (Eric Coldwell, Baird Equity Research, WSJ, Oct 2015)! = Amerisource Bergen (ABC) acquired PharMEDium in Oct 2015, the largest compounding pharmacy company in the U.S., for $2.6B, equating to 22x EBITDA‘ = QuVa Pharma
Slide 5: Investment Thesis
INVESTMENT THESIS = Policy makers and presidential candidates are looking for ways to contain accelerating drug prices “I'm going to address drug prices, starting with how we're going to try to control the cost of skyrocketing prescription drugs. It's something | hear about everywhere | go.”2 — Hill
Slide 6: Cataract Surgery
CATARACT SURGERY Our flagship Dropless Therapy™ ophthalmology formulations can save Medicare/Medicaid and patients up to $13B over next 10 years* This can happen while disrupting the >$1B U.S. eye drop market? Iimprimis
Slide 7: Standard care is eye drop therapy
Standard care is eye drop therapy: NSAID Antibiotic Steroid Cataract Surgery Fast Facts: 3.6M cataract surgeries in 2013 (U.S.)° Eye drops cost an average of $323/case4 Eye Drop Therapy = Three C’s: High Cost Poor patient Compliance*1° Patient Callbacks to the MD’s office®-'°
Slide 8: Our Solution
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Slide 9: Dropless Therapy Alternative
DROPLESS THERAPY™ ALTERNATIVE = Injectable combination of steroid & antibiotic = Patent-pending formulation enabled by SSP Technology™ = Used in 100,000 surgeries by >400 U.S. ophthalmologists = Single injection vs. >150 eye drop applications = >90% of Dropless cases eliminate eye drops" = Up to $13
Slide 10: Enabled by SSP Technology
ENABLED BY SSP TECHNOLOGY™ (7) SSP Technology™ x allows active drugs to it mix and become usable . as an injection ‘Tiamcinolone Acé Voxifloxacin HCl Without SSP Technology™, large irregular clumps of active drugs persist, not od usable as an injection imprimis .
Slide 11: Rapid Adoption of Dropless
RAPID ADOPTION OF DROPLESS Dropless Therapy™ Weekly Unit Sales ea (Oct 2014 - June 2015) Market Share Est. 3.3% 2540 2500 2000 1500 992 1000 ai ) | | | | Oct | Nov Dec Jan | Feb Mar Apr May Jun imprimis
Slide 12: Dropless Market Opportunity
DROPLESS MARKET OPPORTUNITY = >50% market share potential according to study by Grail Research (sponsored independent of Imprimis)'2 = Key factors for pricing potential of $100 per eye: = Patients must be able to pay out of pocket = Dropless must be made in FDA registered facility = Imprimis is: = E
Slide 13: Estimated up to $13B savings to US healthcare system
Andrew Chang & Co, LLC estimates up to $13B savings to US healthcare system and patients over next 10 years with Dropless Therapy”? sta State Patient © Lm Federat siz sto 36 sa : | ei z z : Low Estimate ‘Weighted Average High Estimate
Slide 14: LessDrops Topical Solutions
LESSDROPS™ TOPICAL SOLUTIONS = We use SSP Technology™ to also make combination eye drops = Antibiotic + Steroid = NSAID + Steroid = Triple Drop™ = One bottle vs. 3 different bottles = 50% fewer drops'? = Lower cost ($3234 vs. $60) = Better patient compliance’? imprimis, = Prescribed for LASIK and ca
Slide 15: LessDrops Topical Solutions
LESSDROPS™ TOPICAL SOLUTIONS >$323.00 Imprimiss imprimis .
Slide 16: Growth Strategy
GROWTH STRATEGY = Use “pain-point solving” patented and patent-pending formulations to establish long-term business relationships in key therapeutic verticals = Expand business relationships by selling other non-proprietary high margin compounded drugs = Maintain accessible pricing for our formulati
Slide 17: Revenue Drivers
REVENUE DRIVERS = Marketing and dispensing patented and patent-pending drug formulations into three therapeutic verticals = Ophthalmology (Dropless and LessDrops) = Urology = Sinus = Imprimis Cares generic alternatives = Creating relationships with large U.S. payors = Scaling production in and reali
Slide 18: Chronic Urology Program
CHRONIC UROLOGY PROGRAM = pH balanced Heparin + Lidocaine formulation for interstitial cystitis (IC) = Patented through 2026 = $60-80 per dose drug reimbursement = $150-180 per instillation CPT code"4 = IC is characterized by bladder pain and frequent urination = Studies support IC symptom relief'5"
Slide 19: Chronic Sinus Platform
CHRONIC SINUS PLATFORM = Recent acquisition of assets of the largest U.S. provider of topical compounded sinus medications = Relaunched in Oct 2015 = >8,000 prescribers (8 of 10 U.S. ENTs) = >38,000 patients past year = Proprietary packaging = Topical delivery is an effective method to administer si
Slide 20: Land and Expand
“Land” to Establish Customer Relationship “Expand” with Complementary Medications Dropless LessDrops SINUS Imprimis =
Slide 21: Imprimis Cares Initiative
IMPRIMIS CARES INITIATIVE = Working with MDs, PBMs, hospital groups, and public payors to provide potential low-cost alternative compounded options from the >7,800 FDA approved generic drugs = Aligning corporate mission of making novel and customizable medicines at accessible prices = Providing cost
Slide 22: Infrastructure to Grow
INFRASTRUCTURE TO GROW Irvine, CA 503A Sterile and Non-Sterile Licensed in 50 states Allen, TX 503B (a1 2016) Roxbury, NJ Outsourcing Facility Outsourcing Facility Randolph, NJ 503A Sterile and Non-Sterile {Closing Q1 2016 Transitioning to Roxbury) Philadelphia, PA 503A Non-Sterile Imprimis
Slide 23: Revenue Performance
REVENUE PERFORMANCE Quarterly Revenue (in thousands of dollars) 3,000 $2,700 2,000 $1,967 $1,563 4,000 $554 $439 _ iz 03.2014 4.20140 1.20158 2.20158 03.2015 % Growth - 26% 182% 26% % Margin 46% 39% 36% 47% Dropless $149 $299 $321 $516 LessDrops —- - - $96 HLA - - $7 $215 Imprimis -
Slide 24: Company Profile
COMPANY PROFILE = Trading Symbol: NASDAQ: IMMY = Current Price per Share (10-26-15): $7.84 = Market Cap: $76 million = Shares Outstanding: 9.6 million = 52-Wk Range: $6.18 — $9.00 = Number of Employees: 101 = Headquarters: San Diego, CA = Estimated Q3 2015 revenues: $2.7 million = Calendar 2015 reve
Slide 25: Contact Us
CONTACT US Imprimis Pharmaceuticals (NASDAQ: IMMY) Lee. Imprimis 12264 El Camino Real, #350 PHARMACEUTICALS San Diego, CA 92130 858-704-4040 www.imprimispharma.com
Slide 26: Appendix and References
APPENDIX AND REFERENCES imprimis .
Slide 27: References
REFERENCES an 12. Or, A. PharMEDium a Hit for CD&R as Firms Renew Interest in Sector. Wall Street Journal. http://blogs wsj.com/privateequity/2015/10/08/pharmedium-a-hit-for-cdr-as-firms-renew-interest-in-sector/, October 8, 2015. Accessed October 18, 2015. Clinton, H. Interview on CBS Face the Nati
Slide 28: References
REFERENCES 13. 14. 15. 16. 417. 18. 19, 20. 21 22. Wiley, WF. Simplifying Postoperative LASIK Care. A compounded formulation of topical postsurgical medications can enhance patients’ compliance. Cataract & Reffactive Surgery Today. hitio:/icrstoday com/2015/08/simplifying-postoperative- lasik-care/.
Slide 29: Condensed Balance Sheet
CONDENSED BALANCE SHEET (in thousands, unaudited) Cash, equivalents and short-term investments Accounts receivable Inventories Other short-term assets Total current assets Furniture and equipment, net Intangible assets and goodwill, net TOTAL ASSETS Total current liabilities Senior note payable, net
Slide 30: Capital Structure
CAPITAL STRUCTURE As of September 30, 2015 (unaudited): Common stock issued and outstanding 9,681,646 Options, weighted avg. ex. $6.54* 963,213 Warrants, weighted avg. ex. $7.41 240,688 RSUs** 330,617 Total diluted outstanding 11,216,164 *Number of options does not include 600,000 market based optio
Slide 31: The Eye Drop Journey
THE EYE DROP JOURNEY @ PATIENT PROFILE OF s SURGERY DAY |_| imprimis .,
Slide 32: Patient Profile
PATIENT PROFILE = 80 years old = No eye drop Rxs + Arthritis = Informed about Dropless Therapy SURGERY DAY = Dropless Therapy injected intravitreally = Scoliosis = Lives alone = Social Security POST-OP SUMMARY = Eye looks quiet = No eye drop Rxs = No infection = Informed about = No inflammation Drop
Slide 33: Dropless Research Report
DROPLESS RESEARCH REPORT _ = Findings of independent research g& = report by Grail Research’? (n=257) Vencinolone Ai Ts = 57% MDs are aware of Dropless \oxifloxacin HCl iStngial Sieh Therapy™ = 52% cite not adopting due to payor issue (MDs or CMS) = 91% will adopt if made in FDA facility imprimis -
Slide 34: Current Eye Drop Costs
CURRENT EYE DROP COSTS* Medicare Medicaid Weighted Weighted Low Low Average Average $139 $137 NSAID $165 (Bromfenac tee ; $168 (Bromfenac aoe , Sodium) of Sodium) sf $12 $109 $12 $109 eae | (Tobramycin) (Besivance) $89 (Tobramycin) —_(Besivance) $24 $25 Steroid $70 (Prednisolone Gon $80 (Prednisolon
Slide 35: Integrative Medicine
INTEGRATIVE MEDICINE = Sterile injectable formulations = Autoimmunity = Oncology = Chronic infectious disease = Endocrine/metabolic diseases = Non-sterile formulations = Poised for growth = Expanding sales & marketing efforts = Integrative Therapies Institute conference series imprimis -
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