CV Sciences, Inc. · OTC:CVSI
CV Sciences — Corporate Update (September 2017)
33 slides from CV Sciences's corporate update, Sep 14, 2017
Slide 1: CBD-Based Pharmaceutical & Consumer Products Corporate Update
CBD - BASED PHARMACEUTICAL & CONSUMER PRODUCTS Corporate Update September 12, 2017 Symbol: CVSI
Slide 2: Safe Harbor & Disclaimer
Safe Harbor: This presentation may contain certain forward - looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This materi
Slide 3: Corporate Overview
CV Sciences, Inc. ▪ Primary operations in San Diego, CA ▪ Founded in 2012 ▪ 48 employees ▪ Two operating divisions: 1. Consumer products 2. Drug development CORPORATE OVERVIEW SYMBOL: CVSI 3
Slide 4: Consumer Products Division
CONSUMER PRODUCTS DIVISION SYMBOL: CVSI 4
Slide 5: Consumer Products Overview
CONSUMER PRODUCTS OVERVIEW SYMBOL: CVSI 5 Overview ▪ 50+ SKUs ▪ Sales channels include: » 1300+ retail locations » 1000+ doctor offices » Strong wholesale presence » Growing ecommerce channel ▪ #1 Selling Hemp Products* #9 Company in the Natural Products Industry* *According to SPINS Scan Data ▪ Str
Slide 6: Consumer Products
CONSUMER PRODUCTS Raw Formulation SYMBOL: CVSI 6 Total Plant Complex Gold Formulation P l u s C B D O i l TM - B r a n d e d P r o d u ct 50+ SKUs
Slide 7: Retail Store Count
RETAIL STORE COUNT 1400 1200 1000 800 600 400 200 JAN 2015 A P R I L 2015 J U LY 2015 OCT 2015 JAN 2016 A P R I L 2016 J U LY 2016 OCT 2016 JAN 2017 A P R I L 2017 J U LY 2017 SYMBOL: CVSI 7
Slide 8: Q1 2017 Operating Results
Q1 2017 - OPERATING RESULTS SYMBOL: CVSI 8 Product sales $ 3 , 7 64 , 200 $2,422,700 $1 , 3 41 , 500 55% Gross margin 2 , 4 33 , 000 1,625,600 8 0 7 , 400 50% Gross margin % 6 4 . 6% 67.1% 3 months ended March 31, 2017 2016 YoY Increase $ %
Slide 9: Q2 2017 Operating Results
Q2 2017 - OPERATING RESULTS SYMBOL: CVSI 9 Product sales $4 , 0 8 1 , 8 00 $2,487,700 $1 , 594 , 10 0 64% Gross margin 2 , 8 44 , 40 0 1,664,300 1 , 1 8 0 , 10 0 7 1 % Gross margin % 6 9 . 7 % 66.9% 3 months ended June 30, 2017 2016 YoY Increase $ %
Slide 10: Six Months Ended June 30, 2017 Operating Results
6 MONTHS ENDED JUNE 30, 2017 - OPERATING RESULTS SYMBOL: CVSI 10 Product sales $ 7 , 8 46 , 000 $4,910,400 $2 , 9 3 5 , 600 60% Gross margin 5 , 2 77 , 400 3,289,900 1 , 9 87 , 500 60% Gross margin % 6 7 . 3 % 67.0% 6 months ended June 30, 2017 2016 YoY Increase $ %
Slide 11: Sales
SA L E S $4, 5 00,000 $4,000,000 $ 3 , 5 00,000 $3,000,000 $2, 5 00,000 $2,000,000 $1, 5 00,000 $1,000,000 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 SYMBOL: CVSI 11
Slide 12: SPINS Data
SPINS DATA * * SPINS is the leading provider of analytics reporting for the Natural, Organic and Specialty Products Industry SYMBOL: CVSI 12 Rank Brand 1 Nordic Naturals $ 3 , 0 7 8 , 10 0 2 Barleans $1 , 1 8 5 , 000 3 Natures Way $ 8 50 , 100 4 Carlson $ 8 26 , 200 5 Amazing Grass $651 , 200 6 Priv
Slide 13: Industry Growth
INDUSTRY GROWTH Source: Hemp Business Journal estimates ($ in millions, consumer sales) Sales forecasted at $452 million for 2020 SYMBOL: CVSI 13
Slide 14: Drug Development Division
DRUG DEVELOPMENT DIVISION SYMBOL: CVSI 14
Slide 15: Drug Development Program
DRUG DEVELOPMENT PROGRAM SYMBOL: CVSI 15 Overview ▪ CVSI - 007 – lead drug candidate ▪ Cannabidiol (CBD) and nicotine combination ▪ Medical indication – to support cessation of smokeless tobacco use and addiction ▪ Proprietary technology (patent pending) ▪ Seeking 505(b)(2) drug approval pathway
Slide 16: Market Potential
No current FDA - approved drugs to treat smokeless tobacco use and addiction. ▪ There are only 2 smoking cessation FDA - approved drugs – Chantix (Pfizer) and Zyban (GSK) ▪ Until recently, both Chantix and Zyban had “black box warnings” that call attention to serious or life - threatening risks in t
Slide 17: Current FDA-Approved Treatments
2015 REVENUE: $700 MILLION CURRENT FDA - APPROVED TREATMENTS SYMBOL: CVSI 17
Slide 18: Unmet Medical Need
Urgent Unmet Medical Need ▪ Smokeless tobacco is carcinogenic (risk of esophageal, oral and pancreatic cancers). ▪ Smokeless tobacco is one of the most addictive and potent ways of consuming nicotine (an average - size dip in the mouth for just 30 minutes can deliver as much nicotine as smoking thre
Slide 19: Epidemic: Smokeless Tobacco Use
Selected Epidemic Statistics ▪ Serious impact on youth: 5.8% of males 12 - 17 years of age reported use of smokeless tobacco. ▪ 47.2% of college baseball players still used smokeless tobacco . NCAA rules eject both the player and manager for using smokeless tobacco during a game. ▪ 49% of all milita
Slide 20: Nicotine Addiction Statistics
▪ 1 billion smokers worldwide ▪ 40 million smokers in the U.S. ▪ 6 million deaths worldwide from smoking, expected to increase to 8 million ▪ 300 million smokeless tobacco users worldwide ▪ 9 million smokeless tobacco users in the U.S. ▪ 250,000 deaths worldwide and increasing from smokeless tobacco
Slide 21: Tobacco Use Trends
Source: Euromonitor International, National Survey on Drug Use and Health Centers for Disease Control and Prevention 250,000 deaths per year 6,000,000 deaths per year TOBACCO USE TRENDS SYMBOL: CVSI 21
Slide 22: Nicotine Addiction Statistics (Cont)
Financial Impact ▪ $300 Billion+ per year Direct medical care and lost productivity ▪ Depart of Defense reports $1.6 Billion per year on tobacco - related care, increased hospitalization, and lost days of work. Sources: CDC and Tobacco Use and the Military NICOTINE ADDICTION STATISTICS (CONT) SYMBOL
Slide 23: CVSI-007 Nicotine and Cannabidiol
Using patent - pending technology, CV Sciences’ drug candidate (CVSI - 007) combines cannabidiol (CBD) and nicotine to focus on a significant unmet medical need in treating smokeless tobacco use/addiction. NICOTINE CANNABIDIOL + NICOTINE & CANNABIDIOL SYMBOL: CVSI 23
Slide 24: Nicotine Use & Addiction
Overview ▪ Physical Dependence relaxant, stimulant, increased heart rate and blood pressure, decreased appetite ▪ Emotional Dependence “oral stimulation” of tobacco product used ▪ Mental Dependence nicotine is a mild “antidepressant” NICOTINE USE & ADDICTION SYMBOL: CVSI 24
Slide 25: Nicotine PK/PD - Antidepressant
NICOTINE PK/PD - ANTIDEPRESSANT SYMBOL: CVSI 25 Nicotine reaches the brain in 7 - 10 seconds Nicotine is a mild antidepressant ▪ Mechanism of Action: monoamine oxidase (“MAO”) inhibitor ▪ MAO is an enzyme that breaks down dopamine and other “feel good” neurotransmitters that produce pleasure and rew
Slide 26: Nicotine Addiction Treatment
No current FDA - approved drugs (to treat smokeless tobacco use/addiction) OTC Treatments – Nicotine Replacement Therapies (NRTs) NRTs are the most widely used pharmacological product in treating nicotine addiction. Replacing cigarettes or smokeless tobacco products with another nicotine - only prod
Slide 27: Proprietary Technology
Internal PK/PD research on CBD contributed to our patent - pending technology The expanded therapeutic range of combining nicotine and CBD, creates a product that effectively addresses all three nicotine addictions. PROPRIETARY TECHNOLOGY SYMBOL: CVSI 27
Slide 28: Breaking Nicotine Addiction
Successfully treating nicotine addiction with nicotine/CBD combination therapy CVSI - 007 provides a therapeutic range that provides effective flexibility in treating the addiction rather simply replacing one nicotine product for another. NICOTINE CANNABIDIOL + 1. Nicotine – physical addiction (incl
Slide 29: Target Market
Smokeless Tobacco Market ▪ Approximately $5.3 billion annual U.S. retail sales of smokeless tobacco products. ▪ Approximately 9 million Americans use smokeless tobacco with enormous and growing worldwide use . ▪ $2 billion treatment market today, growing to $4 billion in 5 - 6 years. TARGET MARKET E
Slide 30: Drug Development Timeline
▪ Complete preclinical studies in early 2018 ▪ Submit Investigational New Drug (IND) application in 2018 ▪ Begin clinical trials in 2018 DRUG DEVELOPMENT TIMELINE SYMBOL: CVSI 30
Slide 31: Annual Meeting Follow Up
▪ July 2017 Annual Meeting in Las Vegas, NV ▪ Reverse Stock Split approved by shareholders ▪ No current plan to effectuate the reverse stock split for the balance of 2017 ANNUAL MEETING FOLLOW UP SYMBOL: CVSI 31
Slide 32: Summary Points
Consumer Product Segment ▪ Market leader ▪ Largest distribution network ▪ Strong sales growth in multiple channels ▪ Industry forecast - $452 million sales in 2020 Drug Development Segment ▪ No current FDA - approved drugs for smokeless tobacco use/addiction ▪ Smokeless tobacco treatment market is ≈
Slide 33: Contact
CV Sciences, Inc. Joseph Dowling, CFO 866 - 290 - 2157 joseph.dowling@cvsciences.com cvsciences.com Media & Investor Relations IRTH Communications Robert Haag, Managing Director 866 - 976 - 4754 CVSI@irthcommunications.com CONTACT SYMBOL: CVSI 33