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Greg Hines President & CEO
Sept 2002 Greg Hines President & CEO
Sept 2002
Forward Looking StatementsForward Looking Statements To the extent any statements made in this presentation
deal with information that is not historical, these are necessarily forward-looking. As such, they are subject to the occurrence of many events outside of the control of Tm Bioscience and are subject to various risk factors that could cause results from Tm Bioscience to differ materially from those expressed in any forward-looking statement. The risk factors include, without limitation, the inherent risk of competition in the marketplace, outcomes in product development programs, regulatory risks related to proprietary rights and market acceptance. Important factors known to Tm Bioscience that could cause such material differences are identified and discussed from time to time in filings by Tm Bioscience.
To the extent any statements made in this presentation deal with information that is not historical, these are necessarily forward-looking. As such, they are subject to the occurrence of many events outside of the control of Tm Bioscience and are subject to various risk factors that could cause results from Tm Bioscience to differ materially from those expressed in any forward-looking statement. The risk factors include, without limitation, the inherent risk of competition in the marketplace, outcomes in product development programs, regulatory risks related to proprietary rights and market acceptance. Important factors known to Tm Bioscience that could cause such material differences are identified and discussed from time to time in filings by Tm Bioscience.
A DNA-based diagnostics company
A DNA-based diagnostics company
Tm BioscienceTm Bioscience
Dual Strategy
1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins
2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003
Dual Strategy
1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins
2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003
Why DNA-based Diagnostics?Why DNA-based Diagnostics?
DNA DiagnosticsDNA DiagnosticsStrong Business Case
• Thousands of Genetic Markers• Better Prediction of Disease• Strong IP • High Margins• Positive Reimbursement Trends
‘”Genomic Bridge between Old and New medicine’’(David Lewis, Thomas Weisel, 2001)
Strong Business Case
• Thousands of Genetic Markers• Better Prediction of Disease• Strong IP • High Margins• Positive Reimbursement Trends
‘”Genomic Bridge between Old and New medicine’’(David Lewis, Thomas Weisel, 2001)
Genetic Testing RealityGenetic Testing Reality
A Rare Commodity:
•Very few tests performed.•Not yet mainstream healthcare.•Un-tapped Market
Why is DNA-based Diagnostics an Un-tapped Market?
A Rare Commodity:
•Very few tests performed.•Not yet mainstream healthcare.•Un-tapped Market
Why is DNA-based Diagnostics an Un-tapped Market?
Why --- Untapped MarketWhy --- Untapped Market
Technology Gap:
1. Not Accurate
2. Not Affordable
3. Not Fast Enough
Technology Gap:
1. Not Accurate
2. Not Affordable
3. Not Fast Enough
DNA-based DiagnosticsDNA-based DiagnosticsTechnology Gap
1. DNA Sequencing:• expensive• Slow
2. Single gene tests:• slow• Can be expensive
3. Microarrays / Biochips:• Inaccurate
Technology Gap
1. DNA Sequencing:• expensive• Slow
2. Single gene tests:• slow• Can be expensive
3. Microarrays / Biochips:• Inaccurate
Technology SolutionTechnology Solution
‘Tm100’ DNA test platform
–Accuracy > 99.9%
–Fast: 9600 DNA tests / hr.
–Economical: pennies / DNA analysis
‘Tm100’ DNA test platform
–Accuracy > 99.9%
–Fast: 9600 DNA tests / hr.
–Economical: pennies / DNA analysis
Tm100 Universal Microarray
Microarrays
Universal Tag “Operating System”Universal Tag “Operating System”
Computers
Cancer
Toxicology
Coagulation
Universal TagsUniversal Tags
Coagulation CF
Cardiovascular
Arthritis
InfectiousDisease
Diabetes
P450
Cancer
UniversalArray
Tm100 Universal ArrayTm100 Universal Array
ONE Array for ALL applications
“ OPEN SYSTEM ”
ONE Array for ALL applications
“ OPEN SYSTEM ”
Benefits:• Less
development time
• High Accuracy
• Lower cost
Benefits:• Less
development time
• High Accuracy
• Lower cost
Tm Bioscience Business Model
Building Value: A Dual StrategyBuilding Value: A Dual Strategy
Tm100 Universal Array
Operating SystemOut-Licensing
Revenue GeneratingNear TermSustainable
DNA Diagnostic Tests
High GrowthRapid Development Times
Low Technology Risk
Operating System Strategy
Industry Standard O. S.Industry Standard O. S.
1. Luminex xMAP™ 100 • >1000 systems placed• (GSK, Lilly, Mayo,
Abbott, Celera, Lab. Corp of America, Quest)
2. MetriGenix• GeneLogic• Extensive Database
3. Other Platforms
1. Luminex xMAP™ 100 • >1000 systems placed• (GSK, Lilly, Mayo,
Abbott, Celera, Lab. Corp of America, Quest)
2. MetriGenix• GeneLogic• Extensive Database
3. Other Platforms
Operating System RevenueOperating System Revenue
• Tm100• Tm1000• Tm100 4D• Tm1000 4D
Royalty & Milestone
Royalty & Milestone
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
2002 2003 2004 2005 2006
1 M
35 M
Yr. 1 Yr. 5
Products
Analyst Consensus Estimates
Diagnostic Test Strategy
Genetic Testing MarketGenetic Testing Market
2001Research
2005 2010
Affymetrix1 B
2 B 3 B
Research Market 20% CAGR
Genetic Testing MarketGenetic Testing Market
Diagnostic Market 38% CAGR
2001Research
2005Diagnostics
2010
Affymetrix Orchid
5 B
8 B
Genetic Testing MarketGenetic Testing Market
2001Research
2005Diagnostics
2010Theranostics
Affymetrix
16+ BTheranostic Market
Luminex – An Ideal PartnershipLuminex – An Ideal Partnership
Tm Access to: Luminex Instruments,
Beads, our Universal Array
Opportunity: Resale InstrumentsDesign and Market
TestsBroad Based “Fields
of Use”Reduced Cost of
GoodsLow Royalty
Tm Access to: Luminex Instruments,
Beads, our Universal Array
Opportunity: Resale InstrumentsDesign and Market
TestsBroad Based “Fields
of Use”Reduced Cost of
GoodsLow Royalty
Tm Competitive AdvantageTm Competitive Advantage
Low Cost of Goods• Cross Licensing Leverage (Tm100)• Tm1000
Time to Market• Early Access to the Technology• Broad based Fields of Use
Expertise• Know-How on the Platform• Test Development
Low Cost of Goods• Cross Licensing Leverage (Tm100)• Tm1000
Time to Market• Early Access to the Technology• Broad based Fields of Use
Expertise• Know-How on the Platform• Test Development
Low Hanging FruitLow Hanging Fruit1. Coagulation2. Cystic Fibrosis3. Drug Metabolism (P450)4. Melanoma5. Apo E for Alzheimer’s6. Hemoglobinopathies
• Sickle Cell Anemia• Beta-thalassemias
7. Ashkenazi Jewish panel8. Hereditary Hearing Loss9. Congenital Adrenal Hyperplasia
1. Coagulation2. Cystic Fibrosis3. Drug Metabolism (P450)4. Melanoma5. Apo E for Alzheimer’s6. Hemoglobinopathies
• Sickle Cell Anemia• Beta-thalassemias
7. Ashkenazi Jewish panel8. Hereditary Hearing Loss9. Congenital Adrenal Hyperplasia
Diagnostic Test Portfolio
Product PipelineProduct Pipeline
Design – Develop – Manufacture - Launch
Coagulation
P450
Cystic Fibrosis
2003
2003
2003
Melanoma Dr. Hogg U of T
2004
Cystic FibrosisCystic Fibrosis• 1 in 29 North Americans is an unknowing
symptom-free carrier of a defective gene• Current test $400 CDN., 7-10 days• 600,000 tests conducted / yr• Fastest (100% CAGR) Growing Genetic test.• Demand for a new test platform.
“Ob-Gyns will need to incorporate CF screening into their practice” ACOG
• 1 in 29 North Americans is an unknowing symptom-free carrier of a defective gene
• Current test $400 CDN., 7-10 days• 600,000 tests conducted / yr• Fastest (100% CAGR) Growing Genetic test.• Demand for a new test platform.
“Ob-Gyns will need to incorporate CF screening into their practice” ACOG
P450P450• Drug Metabolism
– Toxicity profile– Dosing adjustments
• Impacts key pharmaceuticals(eg. Prozac, Tylenol, Erythromycin, and >80 other
drugs)
• Significant cost driver in healthcare– Hospital admissions– Repeat physician visits
• Currently >100,000 tests/yr in USA
• Drug Metabolism – Toxicity profile– Dosing adjustments
• Impacts key pharmaceuticals(eg. Prozac, Tylenol, Erythromycin, and >80 other
drugs)
• Significant cost driver in healthcare– Hospital admissions– Repeat physician visits
• Currently >100,000 tests/yr in USA
MelanomaMelanoma• An example of the flexibility of the Universal
Array• A collaboration between Dr. Hogg (U of T) and
Tm Bioscience–Dr. Hogg develop the test–Tm retains commercialization rights
• Will detect genetic mutations which predispose patients to Melanoma, the most serious type of skin cancer
• The most common cancer for women aged 25 to 29
• An example of the flexibility of the Universal Array
• A collaboration between Dr. Hogg (U of T) and Tm Bioscience
–Dr. Hogg develop the test–Tm retains commercialization rights
• Will detect genetic mutations which predispose patients to Melanoma, the most serious type of skin cancer
• The most common cancer for women aged 25 to 29
CoagulationCoagulation‘High Risk Patients’
• 17% of population carry blood clotting mutations
• High Risk group are likely to develop blood clots
1. Major Surgery.2. Birth Control Meds.3. Hormone Replacement 4. Pregnancy
“Potential $700 million test market”
‘High Risk Patients’
• 17% of population carry blood clotting mutations
• High Risk group are likely to develop blood clots
1. Major Surgery.2. Birth Control Meds.3. Hormone Replacement 4. Pregnancy
“Potential $700 million test market”
Factor II
MTHFR 677
TFPI
MTHFR 1298
Factor XIII
Factor V
UniversalArray
Coagulation ProductCoagulation Product
Tm test will screen for 6 DNA variations
Assay Specs:
Total Time: 4 hours
Array Time: < 1 hour
Array Cost: ~ $6.00 per test
Alpha Testing
• Tested 132 DNA Samples• Assayed using Tm 6-plex assay• Compared to DNA sequencing (ABI)
Alpha Testing
• Tested 132 DNA Samples• Assayed using Tm 6-plex assay• Compared to DNA sequencing (ABI)
Tm AssayDNA
Sequencing
Correct Calls 180 171Ambiguous
calls 0 9
TOTAL 180 180
Coagulation ProductCoagulation Product
Coagulation ProductCoagulation Product
1. Research Prototype
2. Validation
3. Product Launch
1. Research Prototype
2. Validation
3. Product Launch
Milestones:
CompletedCompleted
CompletedCompleted
Q1 - 2003 Q1 - 2003
Corporate Overview
ManagementManagementGreg Hines - President and CEO
(Founding President of Leo Pharma Inc.- Chairman, Rx&D)
Jim Pelot - CFO(Infospace, VP - NortelNetworks)
Richard Janeczko, Ph.D - Executive VP(CEO - General Synthesis and Diagnostics)
Roman Zastawny, Ph.D. - VP Product Development(Allelix Biopharmaceutical, Eli-Lilly)
Jeremy Bridge-Cook, Ph.D. - VP Business Development(MDS Capital Corp.)
Alan Coley - VP IR and Regulatory(Eli-Lilly, Leo Pharma)
(+Product Dev & Manufacturing Management)
Greg Hines - President and CEO(Founding President of Leo Pharma Inc.- Chairman, Rx&D)
Jim Pelot - CFO(Infospace, VP - NortelNetworks)
Richard Janeczko, Ph.D - Executive VP(CEO - General Synthesis and Diagnostics)
Roman Zastawny, Ph.D. - VP Product Development(Allelix Biopharmaceutical, Eli-Lilly)
Jeremy Bridge-Cook, Ph.D. - VP Business Development(MDS Capital Corp.)
Alan Coley - VP IR and Regulatory(Eli-Lilly, Leo Pharma)
(+Product Dev & Manufacturing Management)
Board of DirectorsBoard of DirectorsRichard Lockie – Chairman
(MDS Capital Corp.)
Neil Reid(MDS-Sciex, MDS Proteomics)
John Frederick(Galaen Holdings Ltd.)
Geoffrey Beattie(The Woodbridge Company Ltd.)
Paul Lucas(GlaxoSmithKline)
Curtis Cusinato – Secretary(Stikeman Elliott)
Gregory Hines – President & CEO
Richard Lockie – Chairman(MDS Capital Corp.)
Neil Reid(MDS-Sciex, MDS Proteomics)
John Frederick(Galaen Holdings Ltd.)
Geoffrey Beattie(The Woodbridge Company Ltd.)
Paul Lucas(GlaxoSmithKline)
Curtis Cusinato – Secretary(Stikeman Elliott)
Gregory Hines – President & CEO
Financial PositionFinancial Position
Shares Outstanding 113.7 M Fully Diluted 116.4 MRecent Price $0.22Market Cap $25 M
Cash reserves $7.5 M12 month revenue (projected) $1.5 MQuarterly burn $1.3 M
Shares Outstanding 113.7 M Fully Diluted 116.4 MRecent Price $0.22Market Cap $25 M
Cash reserves $7.5 M12 month revenue (projected) $1.5 MQuarterly burn $1.3 M
TSX-VEN: TMC
Key MilestonesKey MilestonesTm100 Luminex Q1-
2002Tm 1000 Out license Q2-
20022-D platform Partnership Q2-2002• MetriGenix Launch Q4-2002
• Coagulation test 2003• Drug Metabolism test 2003• Cystic Fibrosis test 2003• Melanoma test 2004
Tm100 Luminex Q1-2002
Tm 1000 Out license Q2-2002
2-D platform Partnership Q2-2002• MetriGenix Launch Q4-2002
• Coagulation test 2003• Drug Metabolism test 2003• Cystic Fibrosis test 2003• Melanoma test 2004
Tm BioscienceTm Bioscience
Dual Strategy
1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins
2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003
Dual Strategy
1. DNA testing platform State-of-the Art Platform License platform to Luminex, MetriGenix Near-term revenue with high margins
2. DNA tests for potential $16B market Four tests in development First test to be launched Q1-2003
.www.tmbioscience.comTSX Venture:TMC