Harrow, Inc. · NASDAQ:HROW
Harrow — Imprimis Pharmaceuticals — Jefferies Healthcare Conference 2016
28 slides from Harrow's conference presentation, Jun 7, 2016
Slide 1: Jefferies Healthcare Conference
NASDAQ: IMMY IMPFIMIS sees cam, cco Jefferies Healthcare Conference June 7, 2016
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: The Genesis of a Drug Pricing Bubble
if The Genesis of a Drug Pricing Bubble = Some drug companies built business models on monopoly control over drugs that are: = Old and off-patent = Serve relatively small markets = Have little, if any, generic or branded competition = Model led to aggressive price increases, affecting patient out-of
Slide 4: The Public and the Market Awakens
~ The Public and the Market Awakens Hillary Clinton ©FiiliaryClinton 2h Price gouging like this in the specialty drug market is outrageous. ‘Tomorrow I'll ay out a plan to take it on. -H ‘The New York Times @nylimos ‘Overnight, the price of a 62-year-old drug jumped to $750 a tablet from $13.50 nyti
Slide 5: Responses by Payors and Government
Responses by Payors and Government = Many are implementing cost-savings programs, narrowing coverage choices to “preferred formularies” and excluding certain expensive drugs = CVS, Cigna, Harvard Pilgrim Healthcare Co. and Express Scripts sign value-based contracts for high cost drugs binding paymen
Slide 6: Other Potential Solutions
Other Potential Solutions Drug Imports Price Controls Legislation We believe the answer is more COMPETITION.
Slide 7: Our Solution
*- Our Solution Imprimis CARES! We provide access to a portfolio of lower-cost patented or patent-pending compounded alternatives to expensive branded and generic drugs Imprimis Cares™ compounded formulations create competition and are a market-based solution to the Drug Pricing Bubble
Slide 8: Branded Compounding Business Model
Branded Compounding™ Business Model Off patent, FDA-approved APIs Produced under strict quality made in FDA registered facilities standards pursuant to the Drug according to USP monographs Quality & Security Act of 2013 Use drug components that physicians already know and prescribe Focus on quality
Slide 9: Imprimis CARES Daraprim Alternative
“ Imprimis CARES! Daraprim® Alternative = Turing increased the price of Daraprim 5,000%7 = October 2015, we introduced our formulations for $0.99 per capsule® = Partnered with Express Scripts, the largest U.S. pharmacy benefits manager? = Supported by the Infectious Disease Society of America and th
Slide 10: Imprimis CARES Media Coverage
Imprimis CARES! Media Coverage THE NEW YORK THE WALL STREET BLoompen¥ES CNN Money us ASSOCIATED Bees FORTUNE FIERCE PHARMA Ma Fox BUSINESS CBS avn beck Eimes NEWS — a CNBC US News & WORLD REPORT BUSINESS EQuitiEs.coM INSIDER USA REUTER TODAY THE DalLy MsNB £ imprimis io
Slide 11: Imprimis CARES Disruption
“ Imprimis CARES! Disruption Thiola -DDUREZOL (tiopronin) tablets (difluprednate ophthalmic oy emulsion) 0.05% DARAP (pyrimethamine) 25mg tablets ONCE-DAILY o— —~ JUBLIA ELMIRONY’ ORacea’ 7 (efinaconazole) (pentosan polysufate sodu) = (doxycycline) tacdspute” Topical Solution 10% < PROL ENSA Acticla
Slide 12: Imprimis CARES Disruption
* Imprimis CARES! Disruption Branded Dru Imprimis Cares™ timated 9 Compounded Alternative | Cost Savings Bausch & Lomb and Alcon steroid, antibiotic and NSAID eye drops for post-Cataract Surgery and post-LASIK infection and inflammation'® Elmiron® for Interstitial Cystitis’? Daraprim® for Toxoplasmo
Slide 13: Disrupting the >$1B Eye Drop Market
*- Disrupting the >$1B Eye Drop Market = Our patent-pending formulations are changing pre-and-post operative care regimens = >10% market share related to pre and post operative eye drops for cataract surgery = 3.9M cataract surgeries expected in 2017'4 = 700,000 LASIK surgeries annually'® = Incumben
Slide 14: Enabled by SSP Technology
*- Enabled by SSP Technology® active drugs to mix and become usable as an injection a. i (7 [= SSP Technology allows Tiameinolone Acé Voxifloxacin HCl aa ord (S)meimt sti 1511)mg/m Without SSP Technology, large irregular clumps of active drugs persist, not usable as an injection
Slide 15: LessDrops Topical Combination Eye Drops
if LessDrops® Topical Combination Eye Drops = One bottle vs. 3 separate bottles Antibiotic + Steroid NSAID + Steroid Triple Drop™ = 50% fewer drops?2 = Lower cost ($60 vs. $3231°) = Better patient compliance? = Reduced burden for the MD and staff?2 imprimis 15
Slide 16: Dropless Therapy
Dropless Therapy® Dropless Cataract Surgery by Richard Lindstrom, MD and Vance Thompson, MD using our patent-pending Dropless Therapy formulation imprimis 16
Slide 17: Dropless Therapy Pricing
~ Dropless Therapy™ Pricing Spring 2016: April 2014: December 2014: Spring 2015: Policy IMmy Phy gins jan Pay Logic « After 200,000+ surgeries, delivering medicine directly into the eye to eliminate patient compliance issues and difficulties with eye drops makes sense Economics = CSIE sponsored econ
Slide 18: Revenue Growth
Revenue Growth 5,000 Quarterly Revenue (in thousands of dollars) $4,381 4,000 $3,503 fen $2,683 2,000 $1,967 $1,563 1,000 $439 $554 | Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 % Growth - 26% 182% 26% 36% 30% 26%
Slide 19: Growth Opportunities
if Growth Opportunities = Continue to grow current market share = Expand Imprimis Cares™ - target rich environment - more opportunities than resources = Develop new PBM and payor relationships to facilitate widespread in-network reimbursement = CMS policy shift automatically expands market and margi
Slide 20: Company Snapshot
Company Snapshot = Trading Symbol: NASDAQ: IMMY = Price per Share (5-23-16): $4.00 = Market Cap: $52 million = Number of Employees: 125 = Headquartered in San Diego, CA = Facilities in: Irvine, CA Roxbury, NJ Allen, TX Folcroft, PA = Extensive IP portfolio = Driving innovation and lowering drug cost
Slide 21: Imprimis
Imprimis Imprimis Pharmaceuticals (NASDAQ: IMMY) 12264 El Camino Real, #350 San Diego, CA92130 (858) 704-4040
Slide 22: References and Appendix
References and Appendix
Slide 23: References
- References 1. Testimony at the Generic Drug Approval Process and Accessibility Hearing, January 28, 2016 regarding Mark L. Baum’s op-ed article in the Wall Street Journal, Senator Al Franken, U.S. Senator, Minnesota [D] and Janet Woodstock, MD, Director of the FDA Center for Drug Evaluation and Re
Slide 24: References
- References 10. Andrew Chang & Co LLC. Analysis of the Economic Impacts of Dropless Cataract Therapy on Medicare, Medicaid, State Govemments, and Patient Costs. October 2015. 11. Price Comparison for Elmiron. Average cost of $650 (90 count). http://www goodrx com/Eimiron. Accessed June 3, 2016. 12.
Slide 25: Condensed Balance Sheet - Unaudited
~ Condensed Balance Sheet - Unaudited at March 31, 2016 ASSETS Current assets Cash and cash equivalents and restricted investments $ 11,971 Accounts receivable, net 943 Prepaid expenses, inventories and other current assets 2,012 Total current assets, 14,926 Goodwill and intangible assets, net 5,566
Slide 26: Value Creation from Cost Savings
»- Value Creation from Cost Savings Andrew Chang & Co, LLC estimates up to $13B savings to US healthcare system and patients over next 10 years with Dropless Therapy’? 14 i Staie 1 Patient Federal $12 $10 Low Estimate Weighted Average High Estimate At $100 per dose, we believe Dropless can create pa
Slide 27: Dropless Research Report
*» Dropless Research Report = Findings of independent research report by Grail Research?$ (n=257) « 57% MDs are aware of Dropless Therapy = 91% of aware are likely to use a compounded formulation if made in FDA approved facility * 52% of non-users (n=118) cited high cost as barrier to Dropless adopt
Slide 28: Current Eye Drop Costs
- Current Eye Drop Costs"? Medicaid Medicare Weighted Average Weighted Average Low High | Low $139 S197 $165 (Bromfenac are ) | Stes (Bromfenac on Sodium) i Sodium) 4 , $12 $109 22 #109 tate oo) (Tobramycin) | (Besivance) | 89 (Tobramycin) | (Besivance) $24 e265 oa (Pradnisolone een $80 (Prednisoton
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