Champions Oncology, Inc. · NASDAQ:CSBR
Champions Oncology — Investor Presentation (March 2018)
22 slides from Champions Oncology's investor presentation, Mar 12, 2018
Slide 1: Investor Presentation December 2017
1 Investor Presentation December 2017 NASDAQ: CSBR
Slide 2: Notice of Forward Looking Statements
2 Notice of Forward Looking Statements This presentation contains certain “forward-looking statements,” which include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. These forward-looki
Slide 3: The challenge with oncology drugs is high trial cost and low success rates
3 Nasdaq: CSBR The challenge with Oncology drugs is the high cost of clinical trials and low success rates Addressing Pharma’s Needs • High Failure Rate • 93% of drugs fail in clinical trials • Skyrocketing R&D Costs • $1.2 billion average capital outlay per approved drug • Patient responses remain
Slide 4: Predictive value of 87%-94% for Champions TumorGraft PDX models
4 Nasdaq: CSBR A growing body of evidence demonstrates predictive value of 87% -94% for Champions TumorGraft® PDX models (1) Mice are dosed with different anti-tumor therapies Patient tumor is implanted in immune- compromised mice Effect of each therapy on tumor growth is measured Patient Implant Tr
Slide 5: Models can be used repeatedly and enrich the data bank
5 Nasdaq: CSBR Models can be used repeatedly and each new and unique drug testing leads to an enriched data bank and more valuable models Patient Data Perpetual Tissue Stock Genomic Data An Immortalized Model of an Individual Patient
Slide 6: How Does Pharma Partner with Champions?
CONFIDENTIAL How Does Pharma Partner with Champions? Match to Patient • CLIA approved drug testing • Clinical PDX Build Unique Cohorts •Utilizing network sites •Focused disease setting • M of resistance • Clinical trial simulation Co-Clinical Trial • Supporting early phase trial • PDX development •
Slide 7: We don't use better mice. We use cheaper people.
7 Nasdaq: CSBR We don’t use better mice. We use cheaper people. Champions Results ✓ >500 Studies Completed Ranging in size from $25,000 to more than $2M ✓ 170 Customers ✓ >Including 18 of the top 20 pharma companies and 150 other pharma and biotech companies ✓ >30% Revenue Growth 6 year cumulative a
Slide 8: CSBR expects continued revenue growth, significant EPS growth and no additional capital
8 Nasdaq: CSBR CSBR expects continued revenue growth, significant EPS growth and does not require additional capital Champions History • Ronnie Morris (CEO) and Joel Ackerman (Chairman) took over running the company and first invested in 2011 • Over the past 6 years, CSBR has been building infrastru
Slide 9: Unique Foundation: Academic/Clinical Network
Unique Foundation: Academic/Clinical Network Robust system for tumor acquisition CLIA-approved PDX test Drug development relevant PDX bank Unique model cohort build programs Clinical trial integration Clinical operations infrastructure Model development in co-clinical setting PDX clinical trial “mat
Slide 10: New Product - Funded Model Build Programs
CONFIDENTIAL New Product- Funded Model Build Programs • Funded, multi-year initiative to build cohorts in: • EGFRmut+ NSCLC (post osimertinib) – 100 tumor implants • ER+ breast cancer (post CDK4/6 inhibitor) – 30 tumor implants • Leverages Champions global network of sites, Clinical Operations and M
Slide 11: Transforming Champions As An End-to-End Solutions Provider
CONFIDENTIAL Transforming Champions As An End-to-End Solutions Provider 11 Discovery Preclinical Translational Clinical 2007 Solid Tumor TumorGraft Platform launched 2015 ImmunoGraft Platform Launched 2015 Co-Clinical Platform Launched 2016 Strategic Partnerships Launched 2016 Syngeneic & Cell Line
Slide 12: Opportunities for Accelerated Growth
12 12 Co-clinical PDX Platform Expansion Immune Oncology Data/Discovery Along with continued growth and investment in core platform and tumor bank Champions Oncology – Opportunities for Accelerated Growth
Slide 13: Medicines in development for cancer
Number of ines it September 2015, Selected Cancer Types* seasons AACR MEDICINES IN DEVELOPMENT FOR CANCER A REPORT ON CANCER More Than 800 Medicines and Vaccines in Clinical Testing for Cancer Offer New Hope to Patients “These are exciting times the pace of discovery and application of new knowledge
Slide 14: Co-clinical Opportunity By the Numbers
Co-clinical Opportunity “By the numbers” • 1215 phase I industry sponsored trials on ClinicalTrials.gov • ~ 30 patients in a phase I trial (can range from ~10 - 60) • ~36,450 patients 5% “market size” 10% “market size” # of phase I patients 1,823 3,645 ~$17,000 per co- clinical patient $30,991,000 $
Slide 15: Accelerating TOS Revenue and Managing Costs
15 Nasdaq: CSBR Accelerating TOS Revenue and Managing Costs 0 5,000 10,000 15,000 20,000 25,000 30,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Revenue Expense Growing Revenue and Achieving Profitability 3 year expense CAGR1: ~2% 3 year revenue CAGR: ~32% 1 Operating expenses exclude stock based comp
Slide 16: Generally Flat Quarterly Costs while Growing Revenue
16 Nasdaq: CSBR Generally Flat Quarterly Costs while Growing Revenue Quarterly Operating Expenses (1) 0 1,000 2,000 3,000 4,000 5,000 6,000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Additional Opportunities for Expense Control • N
Slide 17: Financial Results
17 Nasdaq: CSBR Financial Results 1 Results excludes stock based compensation expense 3 Months Ended October 31 6 Months Ended October 31 2017 2016 2017 2016 OPERATING REVENUE: Translational oncology solutions $4,825 $3,960 $9,419 $7,119 Personalized oncology solutions 378 497 817 1,007 TOTAL OPERAT
Slide 18: Financial Results/Observations
18 Nasdaq: CSBR • GAAP reporting may distort underlying health of the business • Timing mismatch of revenue and expense recognition • Revenue is recognized only after model completion, generally 6 months after the study is signed • Expenses are recognized as incurred during the study period • Result
Slide 19: Current Capitalization and Valuation
19 Current Capitalization and Valuation Stock Price (January 3, 2017) $4.01 Shares Outstanding1 11.0 million Equity Market Cap $44 million Debt $0.0 Cash (December 31, 2017) $1 million 1 Excludes 2 million options (strike price approx. $2,25) and 2 million warrants (strike price approx. $6/share) Na
Slide 20: A Deep and Experienced Senior Management Team
20 A Deep and Experienced Senior Management Team David Sidransky MD – Founder and Lead Scientific Director • Professor of Oncology, Johns Hopkins Ronnie Morris MD – President and Chief Executive Officer • Experience - Founder and CMO of MDVIP Joel Ackerman – Chairman Board of Directors • Experience
Slide 21: Investment Highlights
21 Nasdaq: CSBR Investment Highlights • Attractive valuation on a relative and absolute basis. Currently trading at approx. 2X current year revenue target • Significant opportunities to increase profitability ‒ Accelerating core business revenue growth ‒ Investment in new lab facility will reduce fi
Slide 22: Company Contact
22 Nasdaq: CSBR Company Contact Ronnie Morris, MD, President and C.E.O Champions Oncology, Inc. Tel 201.808.8401 | championsoncology.com David Miller, CFO Champions Oncology, Inc. Tel 551.206.8104| championsoncology.com Investor Relations Brett Maas, Managing Partner Hayden IR Tel 646.536.7331 | www
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