Targeted Medical Pharma Inc · OTC:TRGM
Targeted Medical Pharma — Investor Presentation (April 2014)
33 slides from Targeted Medical Pharma's investor presentation, Apr 2, 2014
Slide 1: Innovators in Pharmaceutical Technology
Innovators in Pharmaceutical Technology April 2014
Slide 2: Safe Harbor Statement, Non-GAAP Financial Measures and Trademarks
(> Safe Harbor Statement, Non-GAAP Financial Measures and Trademarks Safe Harbor Statement This document does not constitute or form part of an invitation or recommendation to subscribe for or purchase any securities of Targeted Medical Pharma, Inc. ("Targeted Medical Pharma”, “TMP" or “the Company”
Slide 3: Company Overview
9) Company Overview 42 Biotechnology company that develops prescription medical foods for treatment of chronic disease > Including pain syndromes, sleep , cognitive disorders and obesity > Safe option for treatment without significant side effects FDA regulated products on the market generating reve
Slide 4: Corporate Profile
©) Corporate Profile Targeted Medical Pharma, Inc. OTC QB: TRGM Corporate Headquarters Los Angeles, CA Stock Price (3-28-2014), 52-Week Range $0.84; $0.49 - $5.10 Shares Outstanding 26.3M Average Daily Volume (13 Wks) 12,459 Market Capitalization (3-28-2014) $22.1M. Debt at 12-31-13 $5.5M Cash at 12
Slide 5: Key Management
© Key Management William Shell, M.D. Co-Founder, CEO and Chief Science Officer USAF American Soviet Exchange Program Fist physician representativein Moscow Keesler Air Force Base ~Directr of Coronary Case Unit Cedars Sina Medical Center Dir. of Cardiovascular Biochemistry Research Laboratories Inter
Slide 6: Medical Foods
Medical Foods Medical foods are FDA-regulated medications intended for the dietary management of a disease that has distinctive nutritional needs that cannot be met by normal diet alone as defined in the Food and Drug Administration's 1988 Orphan Drug Act Amendments. Must make a disease claim Requir
Slide 7: Targeted Cellular Technology
Targeted Cellular Technolog’ Five-component System for Efficient Uptake and Utilization of Amino Acids q Milligram Reduced SS improved Quantities Attenuation“ Efficacy Amino Acids Are the Precursors to Neurotransmitters >> S HTP Serotonin Choline Acetylcholine The Five Components of TCT: 1. Neurotra
Slide 8: Therapeutic Areas and Product Classes
% of Therapeutic Area Product Class Monthly Doses** Pain and inflammation Theramine Medical Food Sleep Disorders Sentra PM / GABAdone Medical Food Osteoarthritis Trepadone Medical Food Cognitive Disorders, Fatigue, Vision Sentra AM Medical Food Metabolic Disorders / Obesity AppTrim and AppTrim-D Med
Slide 9: Pipeline Indications and Expected Commercialization
Indication Expected Commercialization JASD-AA ‘Autism Quick Release Wafer $26 B+ Q3'2014 JAP-113t (New oraldeliverysystem) Appetite Suppression Quick Release Wafer $390 B+ Q4' 2014 Ess-1818*"* Chronic Anemia Capsule $10B+ qi’ 2015 Pulmona New Asthma Capsule $12B+ Q2' 2015 Oral iGra* Diabetes $15 B+
Slide 10: Time to Market
ime to Market Medical Foods Have a Shorter Time to Market due to GRAS/GRAE status > Development and Testing (1 to 2 yrs) Database Registration (3 to 6 mos) Revenue and Post-Marketing MedWatch (Milestone) > Development and Testing (1 to 2 yrs) IND Submission (Milestone) Database Registration (3 to 6
Slide 11: Intellectual Property Highlights
Intellectual Property Highlights Seven Patents Issued Three Patents Pending 4 USPTO neurotransmitter-specific patents covering TAT-related patents: Targeted Cellular Technology® (TCT) Q Stimulation of RBC production* 1 Japanese patent covering TMP's Targeted Cellular Technology® Q Oral Insulin / ins
Slide 12: Reimbursement Channels
Reimbursement Chan 2 Workers’ Compensation Channel Types I Private Insurance [1 Medicare Secondary Insurance Plans @ Rx Solutions 2 Medco 1 Caremark @ Catamaran (Walgreens) 2 Medimpact ress Scripts na @ BlueCross/Blue Shield Top Medical Plans [=QUiice Eel ledicare Advantage / Secondary Government DO
Slide 13: Balance Sheet
@) Balance Sheet Balance Sheet as of 12/31/13 (In Thousands) ‘ASSETS Cash Accounts Receivable, net Inventories Prepaid Income Taxes Other Current Assets Total Current Assets Property & Equipment. Accumulated Depreciation Total Property & Equipment, net Intangible Assets, net Total Assets LIABILITIES
Slide 14: Income Statement
Income Statement For the Three Months Ended Mar. 31, 2012 June 30, 2012. Sept. 30, 2012 Dec.31, 2012 Mar.31, 2013 June 30, 2013 Sept.30, 2013 Dec. 31, 2013 Product Revenue $ 1273 $ 4381 $= giz $ 2024 § «= 2479 $1,647 $1,950 $ 2,430 Service Revenue 102 417 372 332 270 244 203 Total Revenue 1375 2,396
Slide 15: EBITDA
i) EBITDA EBITDA (In Thousands) ‘Three Months Ended December 31, Year Ended 2013 2012 Dec. 31, 2013 Dec. 31, 2012 NET INCOME (LOSS) $ S454) $9,338) $9,586) Depreciation of Property and Equipment an 143 187 Amortization of intangibles 61 269 249 Income Tax Benefit (2,194) 5,667 (3,186) Interest, net
Slide 16: Off-Balance Sheet Asset: Contract Receivables
Off-Balance Sheet Asset: Contract Receivables Shipments: Collections: Contract Receivables are amounts due Contract Recognized but not yet recognized as revenue Receivables Revenue Monthly collections are approximately 1.5% to 2.0% Contract receivables are constantly rejuvenated by additional shipme
Slide 17: Near-Term Goals
Near-Term Goals Grow sales to physicians with well-insured (PPO) patients + ANational Sales Manager was hired in March + Acontract was signed to accelerate cash collections + We are contemplating the acquisition of a distributor network Development of a Direct to Consumer business which includes die
Slide 18: Targets
@, Targets Revenues Margins Gross Margin = EBITDA Reimbursement Sales Channels TARGETED MEDICAL PHARMA (OTCQB:TRGM)
Slide 19: Investment Considerations
Investment Considerations Revenue Growth HIGH DEMAND PRODUCTS ADDRESSING LARGE MARKETS DIVERSIFIED, GROWING SALES GROWING ADOPTION OF MEDICAL FOODS Revenue Security DIVERSIFIED REIMBURSEMENT SOURCES ‘SPECIALTY REIMBURSEMENT OPERATIONS Profitability LOW-COST, HIGH-SPEED PRODUCT DEVELOPMENT PLATFORM T
Slide 20: Appendix
@ Appendix Business Team Key Links Clearwayz™ Clinical Trial: Sentra PM® and Trazodone (Trazamine®) Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) Pain Reduction with Theramine® Inflammation Reduction with Theramine® Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) Disability Reduc
Slide 21: Key Links
@) Key Links “2 Company website: http://www.targetedmedicalpharma.com/ “FDA definition of medical food: http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation /MedicalFoods/ “2 Public filings: http://www.sec.gov/cgi-bin/browse- edgar ?action=getcompany&CIK=0001420030&0wner
Slide 22: Clearwayz
® Clearwayz™ Direct to Consumer Market EEE sate s Reli ef' : Supports Healthy Sinus and/Immune Function? Rapid inhibition of nasal congestion with food based pharmaceuticals ‘TARGETED MEDICALPHARMA (OTCQB:TRGM)
Slide 23: Clinical Trial: Sentra PM and Trazodone (Trazamine)
&@ Clinical Trial: Sentra PM® and Trazodone (Trazamine Less Morning Grogginess **p<0.01 ne1i1 ij mpla/pla tmpla/tra Sentra PM/pla mi Sentra PM/tra | Change in Visual Analog Scale (VAS) Negative change indicates reduced grogginess | \ \ Source: Shell, etal,, “Sentra PM and Trazodone for the managemen
Slide 24: Clinical Trial: Theramine with Ibuprofen (Theraprofen)
(> Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) Roland Morris Score After 28 Days 0.1 Ibuprofen Change in VAS from Day 1 today 28 n=122 p<(0.01) Source: Shell, eta., “A Double-Blind Controlled Trial of a Single Dose Ibuprofen and an Amino Acid Medical Food Theramine for the Treatmentof L
Slide 25: Pain Reduction with Theramine
(> Pain Reduction with Theramine® Percent Reduction of Roland-Morris Pain Index ae * p<0.05 4 n=126 Percent (%) | | | | | | | | 65. Naproxen mTheramine sm Both Source: Shell, etal,“A Double-Blind Controlled Trial of a Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Treatment of
Slide 26: Inflammation Reduction with Theramine
Inflammation Reduction with Theramine® Change in hsCRP from Baseline at 28 Days Source: Shell, etal,“A Double-Blind Controlled Trial ofa Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain”; American Journal of Therapeutics; 2012 108-114 1345 Naproxen mi
Slide 27: Theramine with Ibuprofen (Theraprofen)
Theramine® with Ibuprofen (Theraprofen Change in Blood Concentration of Amino Acids DAY DAY 28 Arginine Serine Histidine Tryptophan Patients with pain syndromes have decreased levels of the amino acids required for production of pain modulating neurotransmitters. Improving amino acid levels correlat
Slide 28: Pharmacoeconomic Analysis of Theramine
Pharmacoeconomic Analysis of Theramine Use of Theramine Potentially Reduces the Cost of Care by >30% Estimated Comparative Annual Treatment Cost Theramine NSAID Product $ 633,600,000 $ 36,000,000 GI Bleed Treatment - 225,000,000 Protective Medications - 432,000,000 Laboratory Testing 1,000,000 75,00
Slide 29: Clinical Trial: Sentra PM and Trazodone (Trazamine)
4 Clinical Trial: Sentra PM® and Trazodone (Trazamine®) Sleep Quality (PSQI*) Change from Baseline at Day 14 bisee **p<0.01 n=111 10-Point Scale mPlacebo mTrazodone i SentraPM —s mi Both + Pittsburgh Sleep Quality Index Source: Shell, eta, “Sentra PM and Trazodone for the management of Sleep Disorde
Slide 30: Initial Data Indicating ESS Increases Red Blood Cell Production
Initial Data Indicating ESS Increases Red Blood Cell Production Increased Reticulocyte Count in Healthy Volunteers! > 4 Treatment ¥ ~— — ho -_ Treatment | Initiated J )—__—— 1 2 * Effect on one patient in pre-clinical trials. Preclinical trials resulted in an 80% response rat. Primitive Source: Init
Slide 31: Autism Product
Number of Events Involving Anger, Frustration, and Self-Directed Aggressive Behavior +8 Nutritional Deficiency Initial Data +8 Development Status ne # Distribution Channels me TARGETED MEDICAL PHARMA (OTCB:TRGM)
Slide 32: Autism Spectral Disorder Pilot
34 patients aged 7-21 ASD symptoms including mood disorders, explosive behavior and social isolation 33 experienced a significant reduction of symptoms Compared to baseline the average improvement was 83% The range was 50 to 100 % TARGETED MEDICALPHARMA (OTCQB:TRGM)
Slide 33: Appetite Suppression Product
Appetite Suppression Product +8 Nutritional Deficiency Appetite Suppression Effect Initial Data Development Status #2 Distribution Channels +8 Anticipated Launch Date ‘Weight (Pounds) +8 Appetite Suppression +3 Early Satiety +3 Carbohydrate Craving 8/15/2013 g 8/17/2013, 8/25/2013 ® gnsj2013 +# Incr
Targeted Medical Pharma — Investor Presentation (April 2014) on 6ix