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Proactive Investors
Transatlantic Healthcare Technology Group Focused on value creation through execution
François R Martelet, M.D.
Chief Executive Officer
12 May 2016
This presentation is not an offer or solicitation of an offer to buy or sell securities. It is solely for use at this investor meeting and is provided for information only. This presentation does not contain all the information that is or may be material to a prospective investor (such as risk factors). By
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This presentation has been prepared by NetScientific plc (the “Company”), is strictly confidential and is not, and should not be construed as, a prospectus or listing particulars relating to the Company. This presentation does not constitute or form part of, and must not be construed as, an
offer or invitation to subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any securities of the Company, nor should it or any part of it form the basis of or be relied on in connection with (i) any contract to purchase or subscribe for any securities of the Company, or
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including, without limitation, those regarding the financial position, business strategy, plans, targets and objectives of the management of the Company for future operations (including development plans and objectives). Such forward-looking statements involve known and unknown risks,
uncertainties and other important factors which may affect the Company's ability to implement and achieve the economic and monetary policies, budgetary plans, fiscal guidelines and other development benchmarks set out in such forward-looking statements and which may cause actual
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This presentation does not disclose all the risks and other significant issues related to an investment in any securities of the Company / any transactions referred to herein. In making any investment decision, prospective investors must rely on their own examination of the Company and the
terms of any transaction, including the merits and risks involved.
Disclaimer
NetScientific is poised for growth
3
NetScientific’s goal is to fund and build game-changing healthcare technology companies towards
value inflection points and eventual exit including through a trade sale or public listing
- NetScientific has US based, high-growth assets
- NetScientific has larger ownership stakes than average among peers
Three core high growth areas of focus: digital health, diagnostics and therapeutics
Near and mid-term focus on high value portfolio companies: Wanda (digital health) and Vortex
(diagnostics)
- Build and retain value – develop as sustainable businesses
- Drive organic growth
- Seek synergistic bolt on technologies to add value
Strong management team and Board at Group PLC and portfolio company level to build long-term
value internationally
Vijay Barathan, MD
Chief Investment Officer
Ian Postlethwaite
CFO (start date TBD)
Francois Martelet, MD
CEO
Healthcare Investment Banker Peel
Hunt and Piper Jaffray
Medical Doctor NHS
Ernest Schneider
Commercial-Legal Director
Partner Reynolds Porter Chamberlain and
Mishcon De Reya
Founder Schneider Page
FD Allergy Therapeutics
Senior finance positions as AFS,
Ericsson, Philips Electronics
CEO Topotarget
CEO Avax Technologies
Senior positions at Merck & CO,
Novartis, Schering-Plough and Eli
Lilly
PLC Group
management team
strong and focused
CEO, Chairman of GSK
Chairman NHS London
Rector Imperial College
Fellow Royal Society & Academy
of Medical Sciences
President of Medtronic
President of Lederle
President of BMS Europe
Jonathan Paisner
NED
Barry Wilson
NED
Sir Richard Sykes
Chairman
Founder LMN Capital
Lawyer Mathias Gentle Page Hassan
Board Shore Capital
Prof. Stephen Smith
NED
CEO Imperial College Trust
Dean Medicine, Dentistry and health
science University of Melbourne
Founder Metris Therapeutics and
GNI Group
PLC Board
significant experience
to leverage and build
value
Strong and focused management team and Board
4
San Francisco & Philadelphia
offices /36 Employees
USA UK
Digital Health Diagnostics Therapeutics Digital Health Diagnostics
London HQ/8 employees
UK/12 Employees
Listing AIM (NSCI)
Funds raised c.£48m
No. of Shares 51,075,695
Share price (10/5/2016) 80p
Market Cap (10/5/2016) £40.9m
Shareholders (>3%) 45.1% Woodford Investment Management
18.1% Invesco Asset Management
9.2% JO Hambro
20.4% Azima Family Trusts
NetScientific’s mission is to change the paradigm of care
in chronic diseases
5
Roadmap to success – capital efficient business model
Exit
Priority Portfolio
Growth Capital Pipeline
Capital returned to shareholders
Series A financings
IPO / M&A
Global institutions,
technology incubators, deep
healthcare network
6
Sector Diagnostics
Source UCLA
Technology Filter-less filter using micro vortices for size-based and highly
parallel trapping of CTCs
Product Bench-top instrument
Business Model Instrument sales and recurring revenue from microfluidic chips
and consumables
Stage Pre-commercialisation: βeta launch
Market Drivers Growth in cancer incidence - need for early analysis of tumors
% Shareholding 94%
Total Investment £5.1m
Grant Funding £1.6m
Patent families 10 (3 granted)
Vortex working to beat cancer
Research tools and diagnostics company developing a novel liquid biopsy technology that could revolutionize cancer research, drug development, diagnosis, monitoring and treatment
Outperforms competitors in key fields – purity (specificity) and collection efficiency (sensitivity) Significant growth opportunities as the product pipeline expands from research to also providing clinical information from CTCs
7
Sector Digital Health
Source UCLA – Wireless Health Institute
Technology Big data cloud analytics engine
Product Software and mobile app
Business Model Software as a service
Stage Commercialization
Market Drivers Growth in chronic disease
Financial burden on health systems
% Shareholding 71%
Total Investment £5.6m
Grant Funding £7.7m
Patent families 11 (pending)
Wanda bringing healthcare into the digital age
Chronic condition management company that aims to reduce hospitalization costs and improve patient quality of life
Patented systems developed from over 12 years of clinical research at UCLA
Commercialisation underway with hospital and home health customers
8
Glycotest new standard of liver diagnostics
Non-invasive detection and stratification tests for liver disease Immunoassay panels are in development for Hepatocellular carcinoma, Fibrosis and Cholangiocarcinoma Key market driver is mass screening of patients to help detect early onset of liver disease
Sector Diagnostics – Liver
Source Drexel University
Technology Fucosylated protein biomarkers
Product Immunoassay biomarker panels
Business Model Laboratory developed test sales
Stage Pre-commercialisation
Market Drivers
Obesity on-set
Large growth in at risk population due to fatty liver
disease
% Shareholding 87%
Total Investment £0.8
Grant Funding £5.9M
Patent families 3 (1 granted)
9
Glucosense reinventing glucose monitoring
Non-invasive smart devices for monitoring glucose Technology based on photonic sensor and pulsed laser to monitor glucose levels Huge and growing global diabetes market - prevalence to growth >50% over next 20 years
Sector Digital Health / Wearables
Source University of Leeds
Technology Proprietary photonics monitoring system
Product Non-invasive continuous glucose monitoring device /
Wearable device
Business Model License / co-develop product
Stage Developmental
Market Drivers Rise in global Diabetes incidence
Need for increased glucose testing
% Shareholding 51%
Total Investment £0.4m
Grant Funding £0.3m
Patent families 2 (1 granted)
Skin
Photonic chip
Pump
laser
Fluorescence
signal
10
PDS Biotechnology altering the landscape of immunotherapies
Developing a new generation of cancer and infectious disease immunotherapies Versamune® platform has multiple safety and efficacy benefits over current methods Phase II ready, partnered with Merck KGaA and received NIH grants for 4 indications
Sector Therapeutics – Cancer
Source University of Pittsburgh
Technology Novel cancer immunotherapy
Product Versamune®
Business Model Partner with big pharma
Stage Developmental
Market size $1.6b
Market Drivers Growth in cancer incidence
Need for effective alternative to chemotherapy
% Shareholding 14.85%
Total Investment £1.76m
Grant Funding £3.0m
Patent families 4 (pending)
Versamune® : Potential For More Effective and Safer Immunotherapies
Versamune® has advantages over other immunotherapy technologies
Generate
tumor-specific
killer T-cells
Induce T-cell
activating
cytokines
Block/Reduce
Immune
Suppressors
Checkpoint
Inhibitors
Engineered T-cells
Live Viruses etc.
Delivery Systems
Adjuvants
Versamune®
11
Financials – balance sheet & cash flow
12
2015
£’000
2014
£’000
Balance Sheet - highlights
Cash at bank ** 23,239 16,867
Investment in PDS 1,757 1,757
Net assets 24,583 18,696
** Balance as at 31 March 2016 - £19.5m
Cash flow
Net proceeds Capital raising 17,147 -
Funds used in operations (10,714) (6,631)
Other (273) (2,189)
Increase/(decrease) in cash 6,160 (8,820)
Goal is to deliver value enhancing news flow in 2016 and beyond:
commercial traction and external valuation from portfolio company
financings
Highly experienced lean management team in London in place
Positive momentum in lead portfolio companies – talented CEOs in place to
lead the next phase of value creation with game-changing assets
Actively managing current portfolio to value realisation including Series A for
ProAxsis, Wanda and Glycotest
Healthy progress
13
Dr. David Ribeiro, PhD
Chief Executive Officer
www.proaxsis.com
@ProAxsis
Detect, capture and measure proteases
Dr. David Ribeiro – CEO
Senior management at Pfizer, Solvay Healthcare and Encysive Pharma. Most recently, at Pharmaxis, worked on a diagnostic test for assessing bronchial hyper-responsiveness in asthma, and a therapeutic product designed for the chronic treatment of patients with CF
Prof. Brain Walker – CSO
30 years of experience in the design and synthesis of “Protease-Tags”. Chair of Biomedicinal Chemistry – School of Pharmacy QUB. World renowned thought leader in proteases
Sarah Ganniclefft – Sales and Marketing Manager Significant managerial sales and marketing experience in immunoassay and POC diagnostics at BD and Roche
15
An experienced leadership team
Sales
Serine Cysteine Metallo Aspartyl
Diabetes (DPP IV)
Angiodema (Kallikrein)
Pulmonary embolism (Thrombin, Factor Xa)
Heart attack (Thrombin, Factor Xa)
Stroke (Thrombin, Factor Xa)
COPD (Tryptase)
CF/COPD (Neutrophil elastase)
ARDS (Neutrophil elastase)
Neurodegenerative disease (Caspases)
Cancer (Cathepsins)
Osteoporosis (Cathepsins)
COPD (Cathepsins)
Hypertension (ACE/NEP/ECE)
Arthritis/Inflammation (TACE, MMPs)
AIDS (HIV Protease)
Alzheimer’s (b and g-secretase)
Proteases are involved in multiple diseases
Chronic wounds (MMPs)
Proteases in disease
Small chemical probes that act as irreversible inhibitors targeting the active site of specific proteases
Allows the capture of active proteases in multiple biological samples
17
ProteaseTags® offer a novel solution
Stable Exacerbation0
100
200
300
400
NE
Ac
tiv
ity
(n
g/m
l)
Moffitt et al, P102, British Thoracic Society, December 2015. NE measured in 20 matched sputum samples from COPD patients when stable and during exacerbation. Sagel et al (2012) Am. J. Respir. Crit. Care Med., 186: p857-865. * Unpublished data
Sputum NE is the most informative biomarker to monitor disease activity
Elevations in sputum NE levels predict time to next exacerbation and future hospital admissions*
18
Elevated NE is predictive of exacerbation
Testing kit comprising of the necessary reagents to measure NE in lab
Recent kit supplies to UK, Ireland, Germany, Switzerland and Sweden
CE Mark expected in Q3 2016
Immunoassay accepted for use in a pharma company trial, and being validated by several others
Research collaborations with number of universities
Abstracts presented – ECFC, NACFC, BTS, ATS
19
Research market – Immunoassay kits
Launch strategy
CE mark Launch first as general IVD for use in clinic – elevate clinician awareness Follow-up launch as point-of-care IVD for use by the patient at home
Business model
Western/Northern Europe: Direct sales Rest of Europe/Asia/US: Seek commercial partners
Reimbursement
Health economic model prepared for launch, using third party provider
20
Clinical market – Point of Care - NEATstik
2015 2016 2017
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Immunoassay launch
POC development
Validation
Transfer to manufacturing
Series A close
CE marking – general IVD
CE marking – self test
EU launch – general IVD
EU launch – self test
21
Timeline for POC market entry
Fundraising of £7million
Prospective pan-European COPD trial (44%)
Complete NEATstik POC development programme and CE marking (24%)
Build commercial team and launch across Europe (21%)
Ongoing development and launch of further respiratory protease target assays
(11%)
22
Use of proceeds to drive success
Scientific Advisory Board Board
Prof Stuart Elborn (Belfast) – Chairman Dean of the School of Medicine, Dentistry and BioMedical Sciences
Prof Marcus Mall (Heidelberg) Director of the Dept. of Translational Pulmonology
Dr Scott Sagel (Denver) Director of University of Colorado CF Centre
Penny Agent (London) Director of Rehabilitation / Therapies Royal Brompton Hospital
Prof Patrick Flume (South Carolina) Professor of Medicine / Head of adult CF Centre
Dr Mona Bafadhel (Oxford) Senior Lecturer in Respiratory Medicine/Honorary Consultant Chest Physician
Dr James Chalmers (Dundee) Senior Clinical Lecturer/Honorary Consultant Chest Physician
23
A world-renowned scientific advisory board
Dr. David Ribeiro, PhD
Chief Executive Officer
Upcoming Events:
American Thoracic Society (San Francisco, May 15-19)
BIO 2016 (San Francisco, June 5-9)
European CF Congress (Basel, June 8-10)
Detect, capture and measure proteases
