Harrow, Inc. · NASDAQ:HROW
Harrow — Imprimis Pharmaceuticals — Investor Presentation (February 2017)
33 slides from Harrow's investor presentation, Feb 16, 2017
Slide 1: Imprimis Pharmaceuticals, February 2017
» soe e Es “ ota se NASDAQ: IMMY pee imprimis we PHARMACEUTICALS Mark L. Baum, CEO February 2017
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 assump
Slide 3: Ophthalmology focused pharmaceutical company overview and growth
© Over @ Performance/Value © Planned Growth * Ophthalmology focused * 8 quarters of consecutive «2017 planned ophthalmology pharmaceutical company quarterly growth launches into: * 1,450+ ophthalmologist * 245% revenue CAGR since x Gace customers & growing taunch (2014 - 2016) * Wet AMD & DME = Shif
Slide 4: Traditional Pharmaceutical Value Chain vs Imprimis
Tra nal Pharmaceutical Value Chi MDs PRODUCTION PHARMACY «INSURERS WHOLESALERS PHARMACY Patient Hospitals BENEAT RETAILERS Manacens ASCs Imprimis Value Chain — —_~ —@ IMpriMIs / MDs Hospitals ASCs Patient imprimis ‘
Slide 5: 100% Transparency
100% Transparency » No insurance company, pharmacy benefit manager (PBM), wholesaler or distributor middlemen No formulary rejections, discount cards or rebates No payment submittals, investigations or PBM clawbacks No need for “Patient Assistance Programs” with affordable pricing Imprimis Value Cha
Slide 6: 2017 Expected Margin Expansion
2017 Expected Margin Expansion Production Efficiency imprimis New state-of-the-art cGMP production facility $5M+ investment in robotics and automation Increased batch sizes and unit yields per batch Lower labor costs (fewer FTEs; lower-cost personnel) ‘GMP standards open new account opportunities In
Slide 7: Revenue Performance
Revenue Performance (includes Q3 16 Insurance Claim) (in thousands of dollars) 6,000 5,000 4,000 3,000 2,000 1,000 15 03-2015 02-2016 GrossMargin 39% 30% ar% 5% 4% 49% 50% 2% Net Loss e75) 6,003) 730) (392) (5124) (4496) (4639) eas) * Reprosonts $818 gain paid for business interuption insurance caim
Slide 8: 2016 Revenue Mix
2016 Revenue Mix \ Markets Non- Integrative Ophthalmology Medicine - 23% 40% of revenues Urology — 10% Other-7% Ophthalmology 60% of Revenues
Slide 9: Ophthalmology Business
vs ¢ * Ophthalmology Business »
Slide 10: Ophthalmology Development Pipeline
Ophthalmology Development Pipeline Post-cataract Ophthalmic Wet AMD Glaucoma Ophthalmic Uveitis“ Dry Eye Infection PostLASKK Surgery Sedation DME ‘Surgery Inflammation potenice coesass || snsvecr | Posagnans | Sonetene | Cateatenis cation ‘Seas oer | | eeainmn | Seatcaes | premepe ‘Geode seADs Ranni
Slide 11: Ophthalmology Revenue Growth
Ophthalmology Revenue Growth (January 1, 2015 — Dec 31, 2016) 12015 22015 03.2015, 42015 12016 02-2016 + Atainad 10% UnitVolume Market Share * ‘taunch Dropless "uneh ll 32016 04-2016 "
Slide 12: Competitive Analysis of Market Leaders
Competitive Analysis of Market Leaders Eye drop market leaders unit volumes since LessDrops® launch — May 2015 IMPFIMis smo resins
Slide 13: Pre-Imprimis: Cataract Surgery Journey
Pre-Imprimis: Cataract Surgery Journey + Elderly + MD prescribes patient + Patientintravenously ene with pre-and post. sedated ‘surgery prescriptions + Scoliosis for topical non Sorts ives ara ‘toroidal, ant inflammatory and antibiotic drops + Patientis anxious while Vis administered + Fixed income
Slide 14: Imprimis' Dropless and IV Free Experience
Imprimis’ Dropless® and IV Free™ Experience + Elderly + Informed about + No Wis administered + Acthritis Sige ery) + Pationtis given MKO + No pre-or post-surgery Mek sublingual He ‘drops prescribed sedation troche + Often fves alone + Fixed income * Droploss Therapy® + Eye looks quiet + No IV anxiet
Slide 15: Dropless Cataract Surgery
Dropless Cataract Surgery® Dropless Therapy® Whatis it? = Patent-pending one-time steroid/antibiotic combination injection at the end of cataract procedure Why is it important? = Substantially reduces or eliminates the need for post-operative eye drops = Lower-cost compared to standard of care eye d
Slide 16: Combination Eye Drops
Combination Eye Drops What is it? = Patent-pending combination eye drops used following cataract and refractive procedures: + Antibiotic + Steroid + NSAID + Steroid = Triple Drop® Why is it important? = Lower-cost compared to standard of care eye drops - $60 vs. $3235 = 50% fewer eye drop applicatio
Slide 17: IV Free Conscious Sedation
IV Free™ Conscious Sedation MKO Melt™ What is it? = Patent-pending MKO Melt™ sublingual sedation = Combination midazolam, ketamine & ondansetron = $15 per Melt; sold in 1, 2 or 3 Melt packs Why is it important? 2 * Conscious sedation instead of intravenous sedation = Growing customer base with over
Slide 18: Ophthalmology Development Pipeline
OPHTHALMOLOGY 1H 2017 2H 2017 1H 2018 DEVELOPMENT PIPELINE Preservative Free Combination Eye Drops for Glaucoma Repackaged Avastin and. Vitamins for Wet AMD and DME Mydriatics and Anesthetics for Ophthalmic Surgery Gati-Dex, Combination Steroid ‘& Antibiotic for Infection & Inflammation ‘Combination
Slide 19: Glaucoma Eye Drops
Glaucoma Eye Drops Glaucoma Combination Drop Whatis it? * Portfolio of combination eye drops for glaucoma expected to be launched in 1H 2017 * Preservative-free to reduce buming and stinging ‘common in current drops * Proprietary technology increases corneal penetration and length of residence on th
Slide 20: Other Markets
vs e- Other Markets
Slide 21: Integrative Medicines
Integrative Me ies Ascorbic Acid, mp Curcumin & Artesunate Whatis it? = Integrative medicines for oncology, autoimmune diseases and chronic infectious diseases * Leading medications include ascorbic acid (non-corn source), curcumin emulsion (patent pending) and artesunate (lyophilized) Why is it imp
Slide 22: Injectable For Erectile Dysfunction
Injectable For Erectile Dysfunction ‘Tri-Mix Injectable Whatis it? = Tri-Mix (phentolamine, papaverine and prostaglandin) injectable for erectile dysfunction (ED) Why is it important? = Recommended treatment by the American Urology Association (AUA) = Lower-cost vs. standard of care oral medications
Slide 23: Lower-Cost Alternative to Elmiron for IC
Lower-Cost Alternative to Elmiron for IC pPS.DR™ Whaat is it? = PPS DR® (pentosan polysulfate sodium) for interstitial cystitis (IC) Why is it important? = Recommended treatment by the American Urology Association * Delayed-release = Lower-cost alternative to Elmiron® = $99 vs. $800 per month22 Whaa
Slide 24: Slide 24
Slide 25: Cost and Simplicity
Cost and Simplicity + ~90% cash pay + 50-75% consumer cost savings + No middlemen, rebates, discount cards Prescriber Value Patient Value + No pharmacy hassles [== IMPFIMISR «Easy administration + Better compliance Value + Rx shipped to home + Reduced staff time lievation + No coupon cards. + Happie
Slide 26: Company Profile
Company Profile Trading symbol: NASDAQ: IMMY Price per share (2-10-2017): $2.62 Stock price range (52-week): $1.65 - $4.90 Average daily trading volume: 116,000 shares Market cap: $43 million Shares Outstanding: 18.6 million Corporate headquarters: San Diego, CA m p rimts R Facilities: Irvine, CA, L
Slide 27: References and Appendix
» rs ee References and Appendix »
Slide 28: References
References 1 imprens Parmaceuels intemal business dat, 2015-2017 2. IMS Hoan data, Rerieved February 7,2017 3. Andrew Cnang & Co LLC. Araiyss of he Economic Inpacscf ropes Cataract Therapy on Meseae, Medica, State Government, and Patient (Coss (2015, October Reevedsanuar 5, 2016, tom hwam movedsysca
Slide 29: References
6 ca 2 BR References Int, K. (2012, December 10, Prostate cancer now detetateusing maging-guded Bopsy, UCLA study shows, Reeved January 08, 2017, trom ‘Sklaver, MLM, Speacken, CN, Salas, AF & Pinto. A, (2014, Februay 23). Does Loop Elacrosupea Ecison Procedure ofthe Lene (Ger: Atect Ane itenan Hormo
Slide 30: Imprimis Pharmaceuticals contact
ay e- Imprimis Imprimis Pharmaceuticals (NASDAQ: IMMY) 12264 El Camino Real, #350 San Diego, CA92130 (858) 704-4040 www. imprimispharma.com,
Slide 31: Disruptive Business Model
ruptive Business Model We use 7,800+ FDA-approved generic drugs to create new lower-cost, high-quality, customizable and often patentable compounded formulations FDA-approved APIs Strict quality Lower cost novel made in FDA standards mandated ‘compounded registered facilities, by the Drug Quality &
Slide 32: ‘fameinotone Ace
‘fameinotone Ace \oxiloxacin HCL Siig ——_'8)mgit uth ithout SSP Technolc large irregular clun active drugs pers sable as inject drop imprimis *
Slide 33: Published Clinical Data
Published Clinical Data ‘Tyson, S. L,et al. (2017, January). Clinical outcomes after injection of a compounded pharmaceutical for prophylaxis after cataract surgery: a large-scale review. Current Opinion in Ophthalmology. ‘No major intraoperative complications associated with the transzonular inject
Imprimis Pharmaceuticals — Investor Presentation (February 2017) on 6ix