Emmaus Life Sciences, Inc. · OTC:EMMA
Emmaus Life Sciences — Shareholder Meeting (October 2020)
18 slides from Emmaus Life Sciences's shareholder meeting presentation, Oct 29, 2020
Slide 1: Hope Delivered: Changing Lives Today
Hope Delivered : Changing Lives Today The first treatment approved by the FDA for Sickle Cell Disease in nearly 20 years Informational Meeting of Stockholders September 17, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation by Emmaus Life Sciences, Inc . (“Emmaus” or the “Company”) contains forward - looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 , as amended, including statements regarding operating trends a
Slide 3: Stockholders Informational Meeting Agenda
Stockholders Informational Meeting AGENDA: • Sales Updates • Operational Updates • Product Expansion & Pipeline • Ube Plant • COVID - 19 Impact on Business • Financial Position • Audit Status (10 - K and 10 - Q filings) and Common Stock Trading Update • Q & A Session 3 Emmaus Life Sciences Commercia
Slide 4: Emmaus and its FDA-Approved Product, Endari: Addressing an Unmet Medical Need
Emmaus and its FDA - Approved Product, Endari®: Addressing an Unmet Medical Need; Positioned for Sustainable Growth 4 Sales Overview : • Effective January 1 , 2020 , switched from using a contract sales organization (CSO) to our own direct sales force • Emmaus currently has 20 employees in its sales
Slide 5: Sales Growth Driven by Strong Clinical Data
Sales Growth Driven by Strong Clinical Data 5 As published in The New England Journal of Medicine , July 2018 (48 - week Phase 3 clinical trial of Endari® compared to placebo) x 25% reduction in frequency of SCD crises ; p=0.005 (median 3 vs. median 4) x 33% reduction in frequency of hospitalization
Slide 6: Emmaus Unit Sales - Boxes Shipped in U.S.
Emmaus Unit Sales - Boxes Shipped in U.S. 6 5,347 5,626 6,295 6,804 7,456 4,864 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 Boxes Sold by Emmaus Directly to Distributors and Specialty Pharmacies Average quarterly growth of 8.4% in 2019 (Q1 - Q4)
Slide 7: Distributor Unit Sales (Sell-Through) – U.S.
Distributor Unit Sales (Sell - Through) – U.S. 7 5,361 5,667 6,083 5,823 5,673 6,085 4,800 5,000 5,200 5,400 5,600 5,800 6,000 6,200 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 Boxes Sold by Distributors and Specialty Pharmacies to Retail Pharmacies and Specialty Pharmacy Patients Despite COVID
Slide 8: Emmaus Unit Sales - Outside U.S.
Emmaus Unit Sales - Outside U.S. 8 268 193 131 125 234 102 0 50 100 150 200 250 300 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 Early Access Boxes Sold Outside U.S. Early Access Program (EAP) operational in France Scientific Advice Working Party (SAWP) and Committee for Medicinal Products for Hu
Slide 9: Operational Updates
Operational Updates 9 Operational Updates Transitioned from a contract sales organization (CSO) to internal sales department effective January 1 , 2020 Emmaus currently has 50 full - time employees as follows : Selling & Marketing : 20 General & Administrative : 20 Research & Development : 10 COVID
Slide 10: Operating Expenses - Profile for 2018 and 2019
Operating Expenses - Profile for 2018 and 2019 10 11% 9% 31% 30% 84% 56% 29% 16% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 2018 2019 Operating Expenses Profile for 2018 and 2019 (as a % of Net Revenue) R&D Selling G&A Non-Cash Achieved operating profit in Q 4 - 2019 and Q 1 - 2020 as net revenue e
Slide 11: Product Expansion & Pipeline
11 Diverticulosis – (i) preliminary pilot trial results are very promising, (ii) pilot study ongoing and preparing for Phase 3 trial, (iii) pursuing licensing deal through Partner International, and (iv) large potential patient population Other : Diabetes, Cell Sheets (CAOMECS), Sickle Cell Trait, C
Slide 12: Ube Plant
Ube Plant 12 Ube Plant (Ube, Japan) Manufacturing facility in Ube, Japan purchased by a 40 % owned investee of Emmaus in December of 2019 to meet the Company’s future demand for prescription grade L - glutamine (PGLG) to support patient needs and ongoing clinical trials Beginning the process of esta
Slide 13: COVID-19 Impact on Business
COVID - 19 Impact on Business 13 COVID - 19 Impact on Business Sales – some challenges faced by salesforce in calling on their customers, distributors taking a cautious view in terms of inventory levels (i . e . lowering days sales ratios), other factors Distributor Unit Sales to retail pharmacy and
Slide 14: Financial Position
Financial Position 14 How we are working to improve our financial position Simple capital structure with common stock, options and warrants outstanding Debt reduced significantly in 2019 , mainly due to reverse merger and related conversion of approximately of $ 33 . 8 million of debt and $ 2 . 4 mi
Slide 15: Audit Status & Common Stock Trading Update
Audit Status & Common Stock Trading Update 15 Audit Status Delay in 2019 audit primarily attributable to predecessor auditor and current auditor not being able to reach agreement on path forward to complete the 2019 audit and adjustments to the 2018 financials Based on the above, the Audit Committee
Slide 16: Thank you and we now welcome your questions
Thank you and we now welcome your questions
Slide 17: Appendix
Appendix 17
Slide 18: Emmaus Unit Sales (boxes shipped) - Q1 and Q2 2020
Emmaus Unit Sales (boxes shipped) - Q1 and Q2 2020 18 Q1 and Q2 2020 Summary Management Commentary Quarterly Emmaus Unit Sales are impacted by distributor inventory levels as well as the timing of bulk orders (i . e . , large - volume purchases) placed periodically by Emmaus’ distributors, which cou
Emmaus Life Sciences — Shareholder Meeting (October 2020) on 6ix