Slide 1: Q3 2019 Results
K Pharm Q3 2019 Results
Slide 2: Cautionary Note Regarding Presentation Information
Cautionary Note Regarding Presentation Information This presentation contains forward-looking statements, including statements about any royalty or milestone payments under our license agreement, the exchange of any future principal under our exchange agreement, our plans to develop and commercializ
Slide 3: Q3 2019 Results Call Participants
Q3 2019 Results Call Participants + Travis Mickle, Ph.D. — President & Chief Executive Officer + R. LaDuane Clifton, CPA — Chief Financial Officer, Secretary & Treasurer * Gordon K. “Rusty” Johnson — Chief Business Officer | Se
Slide 4: Q3 2019 Results Call - Today's Updates
Q3 2019 Results Call - Today’s Updates mre UU a KP415 NDA Timelines and Partnership with GPC APADAZ® Launch Update Q3 2019 Financial Results Cash Runway and Near-Term Debt Obligations Addressing the Debt Obligations Next Steps
Slide 5: KP415 NDA Timelines and Partnership Update
KP415 NDA Timelines and Partnership Update + Since license signing, GPC has: o Assembled a team of experienced advisors o Performed an initial review of every NDA section o Currently working with us to finalize the KP415 NDA + Mutual goal for both organizations is the KP415 NDA filing ASAP © NDA sho
Slide 6: APADAZ Launch
APADAZ® Launch + Since our October 31% update, KVK has reported to us that the productis now available for wholesalers to place initial stocking orders. « Managed Market efforts are ongoing + KVK is beginning efforts to make pharmacies and physicians aware that APADAZ is now available. + KVK license
Slide 7: Q3 2019 Financial Results
Q3 2019 Financial Results + Revenue and net income o Q3 2019 revenue of $11.5M o Net income of $3.1 million, or $0.09 per basic share and $0.06 per diluted share + Expense o R&D expenses for Q3 2019 were $3.6M, a reduction of 73% compared to Q3 2018 o G&A expenses for Q3 2019 were $3.6M, which was $
Slide 8: Cash Runway and Near-Term Debt Obligations
Cash Runway and Near-Term Debt Obligations + Since the beginning of 2019, we have reduced operating spend: e Workforce reduction of 33% and other G&A cost reductions © Conclusion of the clinical phase for KP415 + In the near-term, cash from the KP415/KP484 License Agreement includes: o Milestone pay
Slide 9: Addressing the Debt Obligations
Addressing the Debt Obligations * Currently in negotiations to push out near-term principal and interest payments due in Feb 2020 and June 2020 o Goal is to extend cash runway past the potential approval of KP415 o If successful, cash burn could be less than $1M per quarter for 2020 + Initiated a pr
Slide 10: Next Steps
Next Steps * Maximize the value of our license agreements for both KP415/KP484 and APADAZ * File the KP415 NDA as soon as possible « Seek to push-out near-term debt obligations and extend cash runway + Meaningfully address debt with the best possible outcome | ee