Lifevantage Corporation · NASDAQ:LFVN
Lifevantage — Lifeline Therapeutics — Investor Presentation (September 2006)
35 slides from Lifevantage's investor presentation, Sep 7, 2006
Slide 1: Dedicated to helping people reach their health and wellness goals
Dedicated to helping people reach their health and wellness goals with science-based natural solutions.
Slide 2: Forward-looking statements
The issues addressed in this presentation may involve forward-looking statements which are subject to a number of risks and uncertainties. Actual results may differ materially. Please refer to our Annual Report and to other SEC filings for more information about risks and uncertainties that could ca
Slide 3: We are a science-based health and nutrition company
We are: A science-based health and nutrition company Committed to developing innovative products based on scientific evidence Our initial product: Patent-pending Protandim(r) strengthens the body’s natural antioxidant defenses against the cell damage known as oxidative stress
Slide 4: Key Consumer Lifestyle Trends
Key Consumer Lifestyle Trends Core Wellness Men and women ages 35 - 64+ HH income of $75K+ Some college education Focus: Healthy lifestyles and aging Prevention Peace of mind Wake-up Call Seek proactive solutions Balance The New Wellness
Slide 5: Corporate Overview
Corporate Overview Public in October 2004, LFLT.OB Protandim(r) shipment begins March 2005 Protandim(r) featured on ABC Primetime Live June 2005, NBC TODAY Show July 2006 Human clinical trial study published January 2006 in peer-reviewed scientific journal Leading antioxidant research scientists Int
Slide 6: Goals
Goals Transition and reposition the Company, the product, and the brand Maintain science and evidence based cornerstone Stabilize and expand business Develop solid distribution channels
Slide 7: Significant Accomplishments
Significant Accomplishments Human Study Published - shows Protandim(r) provides a fundamentally new approach to antioxidant therapy Dr. Joe McCord joins board of directors, interviewed on The Troubleshooter Drs. Gold and O'Connell join Scientific Advisory Board Dr. Sally Nelson presents at OCC Congr
Slide 8: The Opportunity
The Opportunity Estimated $2 - 3 billion science-based segment of overall U.S. $21 billion supplement market Science-based Unique position in the health and wellness supplement market sector Market moving to evidence-based Clinically supported Product expansion opportunities
Slide 9: U.S. Market Opportunity
U. S. Market Opportunity - estimate $21 Billion Market Clinical Evidence No Clinical Evidence $2-3 Billion segment 2005 - 4.5% Growth Source: Nutrition Business Journal June / July 2006
Slide 10: The Problem - Oxidative Stress
The Problem - Oxidative Stress Oxidative stress is associated with over 100 diseases, as presented in over a thousand peer-reviewed, published, scientific papers Examples of areas where oxidative stress appears to play a role, based on these papers, include: Heart disease Diabetes Cancer
Slide 11: Yesterday's Solution
Yesterday's Solution Consumable antioxidants (e.g. vitamins C and E) neutralize only a small fraction of the free radicals/oxidants produced daily One gram of vitamin C per day can neutralize about 1/30th of the body's daily production of free radicals per day This assumes full absorption and comple
Slide 12: Taal glasses
x Taal 87 glasses September 2006 Lifeline Therapeutics, Inc. 12 Investor Presentation LFLT.OB
Slide 13: The Problem - Overview of Oxidative Stress
The Problem - Overview of Oxidative Stress Oxidative stress (cell damage) occurs when oxidative balance is upset by increased production of oxidants, or by decreased availability of antioxidants Humans produce a number of antioxidant enzymes naturally: superoxide dismutase (SOD) and catalase (CAT) a
Slide 14: Our Solution
Our Solution Protandim(r) - patent-pending formula Activates the production of two key antioxidant enzymes - SOD and CAT - the body's own defense system against free radicals Clinically proven to naturally strengthen the body's natural antioxidant defenses against oxidative stress Delivers significa
Slide 15: The Scientific Evidence
The Scientific Evidence Free Radical Biology & Medicine (Jan. 15, 2006)
Slide 16: Traditional antioxidant supplements do not affect oxidative stress
R 2 = 0.602 0 0.5 1 1.5 2 2.5 3 3.5 4 0 20 40 60 80 100 AGE TBARS (micromolar) Traditional antioxidant supplements in normal healthy humans do not affect oxidative stress levels supplements (e.g., vitamins E and C) no supplements
Slide 17: TBARS before supplementation with Protandim
Normal subjects before supplementation with Protandim showed a strong age-dependent increase in TBARS 0 0.5 1 1.5 2 2.5 3 3.5 4 0 20 40 60 80 100 AGE TBARS (micromolar) Before Protandim R 2 = 0.238
Slide 18: TBARS dropped after Protandim supplementation
TBARS dropped an average of 40% (p < 0.0001) after 30 days of Protandim supplementation and the age-related increase in TBARS virtually disappeared 0 0.5 1 1.5 2 2.5 3 3.5 4 0 20 40 60 80 100 AGE TBARS (micromolar) Before Protandim R 2 = 0.238 R 2 = 0.003 After Protandim 30 d After Protandim 120 d
Slide 19: Protandim Study Conclusions
Protandim(r) Study Conclusions Causing modest induction of SOD and CAT to decrease oxidative stress and lipid peroxidation in vivo may be a much more effective approach than conventional antioxidant supplements.
Slide 20: Protandim Positioning
Protandim(r) Positioning Safe All Natural GMPs Effective Clinically Tested Scientifically and Clinically Proven Peer reviewed clinical and scientific publication Market moving to evidence-based Premium product Science allows for premium pricing
Slide 21: Corporate Strategy
Corporate Strategy Produce clinically tested products Protandim(r) product line expansion New products Based on science Science allows premium pricing "Partnership in Wellness" marketing campaign Partnering with leading companies to spread health and wellness message Women's Initiative Men's Health
Slide 22: Sales Channels
eCommerce www.protandim.com 1-8-PROTANDIM Retail Partners Sales Channels Licensing OEM Partners Domestic and International Marketing Strategy
Slide 23: Marketing Strategy
Marketing Strategy eCommerce New web site New systems New initiatives Protandim(r) $49.95 retail Save 10% with AutoShip option 3-day DSO Retention programs Retail Pursuing other potential partners Chain drug stores Health food stores Science allows partners to charge a premium Licensing + OEM + Part
Slide 24: Marketing Strategy - Product Promotion
Marketing Strategy - Product Promotion ABC's Primetime Live June 2005 TODAY July 2006 Consumer advertising Print and eCommerce - example targets include Wall Street Journal USA Today Prevention Newsweek New York Times Yoga Journal L. A. Times Delicious Living iVillage Chicago Sun Times Women's Healt
Slide 25: 2% Protandimr
2% Protandimr Ehe New Pork Eimes Welcome te the new San Francisco Chronicle asa =o" MentHealth esc... -«- “eSeattle Times Prevention. con DENVERPOSTZOm More.com sis aed The power to make it better” September 2006 Lifeline Therapeutics, Inc. 26 Investor Presentation LFLT.OB
Slide 26: NATURAL
NATURAL HEALTH, alternative HealthNewsDigest.com MMAME OM September 2006 Lifeline Therapeutics, Inc. a Investor Presentation LFLT.OB
Slide 27: Marketing Strategy - Product Promotion
Marketing Strategy - Product Promotion Consumer advertising Radio National, regional Premiere Radio Networks Westwood One Networks Sirius Satellite Radio American Health Radio with Scott Broder Troubleshooter Tom Martino TV Direct sales Direct response television PBS Internet Scandown supported Co-o
Slide 28: Financial Model
Financial Model Virtual company - low overhead Most costs variable eCommerce model provides strong cash flow GNC deferred revenue of $1 million Exceptional Gross Margin On-demand production
Slide 29: Operating Results
Operating Results CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For the quarter and fiscal year ended June 30, 2006 (in '000's except per share data)
Slide 30: Balance Sheets
Balance Sheets CONDENSED CONSOLIDATED BALANCE SHEETS (IN '000'S)
Slide 31: Scientists
Scientists Joe M. McCord, Ph.D. Co-discoverer of SOD in 1969 Honorary President of the International Society of Antioxidants in Nutrition and Health (ISANH) Recipient of the prestigious Elliott Cresson Medal of the Franklin Institute Professor of Medicine at University of Colorado at Denver and Heal
Slide 32: Scientific Advisors
Larry Gold, Ph.D. Founder, CEO, Chairman of the Board, and Chief Science Officer of SomaLogic, a leading clinical proteomics company Founded NeXagen, Inc., which later became NeXstar Pharmaceuticals, Inc. In 1999, NeXstar merged with Gilead Sciences, Inc. Founded Synergen, Inc., a biotechnology comp
Slide 33: Management
Management Stephen K. Onody, CEO 28 years of experience in healthcare companies Formerly with; Chairman and CEO, Colorado MEDtech, Inc. (CMED: NASDAQ) Vital Signs, Microphage, and Boston Scientific Gerald J. Houston, CFO Formerly with; Founder and CFO, OpVista, Inc. ROLM, IBM, Measurex, and KPMG Str
Slide 34: Board of Directors
Board of Directors Javier Baz, Chairman Private Investor, former investment banker Dr. James Crapo Former Chairman of Medicine, National Jewish Medical and Research Ctr. James J. Krejci CEO, CheckAwards Corporation Bill Lister Ret. Senior VP and General Manager Patient Care, Roche Diagnostics Corpor
Slide 35: Looking Ahead - Strategy
Looking Ahead - Strategy channels under consideration Grow Protandim by increasing Direct Sales eCommerce and Retail Distribution and brokers Licensing and OEM Direct Response TV International Distribution Multi-level Marketing "Partnerships in Wellness" Healthcare Practitioners Additional Products:
Lifeline Therapeutics — Investor Presentation (September 2006) on 6ix