MaRS Peer to Peer Series - The COLD-FX story

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Jacqueline Shan, Ph.D., D.Sc President and Chief Scientific Officer Afexa Life Sciences Inc. (Formally CV Technologies Inc) Edmonton, Canada Presentation to MaRS Discovery, May 5th, 2009

Transcript of MaRS Peer to Peer Series - The COLD-FX story

Jacqueline Shan, Ph.D., D.Sc President and Chief Scientific Officer

Afexa Life Sciences Inc. (Formally CV Technologies Inc) Edmonton, Canada

Presentation to MaRS Discovery, May 5th, 2009

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•  Chronic diseases such as cardiovascular diseases, obesity and diabetes will account for 70% of all death worldwide by 2020-WHO

•  In 2001, chronic diseases contributed 60% of all death worldwide and 46% of the total burden of diseases

•  Increases in disease incidence lead to overall increases in the cost of healthcare

•  Our current “health–care system” is a diseases-care system. 75% was spent on treating chronic diseases that are preventable or even reversible by changing diet and lifestyle

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•  Nature: a great source of Medicine

•  Shorter Discovery Phase

•  Mature Pharmaceutical Development Models for advanced preclinical and Clinical phases

•  Better Safety Profile

•  Prevention and Intervention

•  Sustainable and Affordable

•  Canadian and International Regulatory Framework: Canada, US and Asia Safe and Effective

•  Green and environmental friendly

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To transform people's lives to be healthier and happier by focusing on prevention and recovery

through the use of evidence-based naturally-derived health products.

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•  Spin off from U of A in 1992 •  Direction of innovation: Natural Health Product (NHP)

Standardization Technology Immunotherapy for infectious diseases, Cancer management, Metabolic Syndrome management, Neuropsychological management

•  Extensive patent folio, Proprietary Technology Platform- ChemBioPrint Technology

•  Successful commercialization with lead product COLD-fX since 2003

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•  Economic burden of Colds and Flu - $4-6 billion

•  Lack of conventional and effective drugs and vaccines

•  Unnecessary and ineffective physician visits

•  Loss of work days and productivity

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•  More than a decade of research •  10 clinical trials •  Published in 9 major peer-reviewed medical journals •  Safe and effective •  International Olympic Committee (IOC) protocol

testing demonstrated that COLD-FX did not contain or induce any banned substances, unlike some cold medicines

•  Health Canada NPN approval

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*Sales includes all Afexa products, year-end September 30

COLD-FX Net Sales ($ CDN millions)

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COLD-fX #1 selling brand for all cold remedies & natural supplements*

* Source: Nielsen Brand Overview, National All Channels total Cold Remedies (including antihistamines) and Natural supplements for 52 weeks ending December 22, 2007

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•  Today COLD-fX 60’s is the #1 selling cold remedy in Canada •  The COLD-fX brand is essentially tied for first place among all

Cough/Cold brands with 3 skus

Brand Brand Rank Total $ # of SKU’s

TYLENOL 1 $38.0 million 47 COLD-fX™ 2 $37.9 million 3 ADVIL 3 $30.6 million 16

NEO CITRAN 4

$13.7 million 28 NYQUIL/DAYQUIL

5 $18.0 million 16

CONTAC 6 $7.9 million 35 BENYLIN 7 $7.6 million 14 SUDAFED 8 $6.9 million 18 DIMETAPP 9 $6.8 million 13 SINUTAB 10 $5.8 million 14

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Pharmacy Post magazine’s #1 pharmacist recommended natural cold remedy

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•  First evidence based and safe NHP for cold and flu prevention and treatment-a better choice over traditional drugs and added benefit to flu vaccine

•  Consumer acceptance prove Canadians willing to proactively prevent and manage colds and flu

•  Positive social and economic outcome: Prevention, improving quality of life, reducing possible doctor visits and unnecessary prescriptions, reduce work day loss and improve productivity

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•  Going forward, the market opportunity isn’t necessarily to steal share, but rather to be complimentary to traditional “treatment” remedies

•  Expansion of preventative solution options as potential source for future market growth

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•  U.S. National Cancer Institute (NCI)- WORLD’S TOP CANCER RESEARCH BODY SPONSORS LANDMARK COLD-FX® TRIAL

The landmark sponsored trial involving chronic lymphocyte leukemia patients – the first time the natural medicine will be part of a clinical study associated with cancer.

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•  Committing to Our Vision •  Committing to Science and Quality •  Committing to Discipline, High Integrity and Best

Business Practice •  Adapting to Change and Move Fast •  Thinking Big but One-step at a Time •  Being an Innovative Trail Blazer and Not Accepting

Failure •  Valuing Team Work and Respecting and Helping Our

Teammates •  Having a “Can-do” Attitude and Being Passionate

about Our Cause

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Afexa products are an environmentally responsible choice for consumers…

All natural products

Scientifically developed and rigorously produced

Safe for the human body

Devoid of synthetic chemicals that degrade the environment

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•  Increased Public Awareness and Demands

•  >10,000 Retail Establishments

•  $2.5 billion retail sales in NHPs, $3 billion in Functional foods and growing

•  International Opportunities

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•  Could create new emerging preventative, evidence-based NHP/Functional food industry for disease prevention and health promotion

•  Innovative products and technology could reshape and improve healthcare landscape

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•  Regulatory uncertainty on pathways and health claims

•  Management expertise in commercialization •  Research & innovation capacity and capability

(Funding, validated methods, scale-up facilities) •  Access to technology and ownership of IPs •  Under-informed health care professionals and

consumers on diet-health relationship and potential NHPs’ contribution to health

•  Global presence and competitiveness

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•  Stream-lining and improving regulatory framework for NHPs and functional foods

•  Integrating Evidence-based NHPs and Functional Foods into health care and health management

•  Emphasizing and integrating prevention into healthcare policies

•  Investing and building an integrated innovation and research infrastructure including Agi-Food, Health and Innovation

•  Investing and encouraging entrepreneurship and commercialization

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•  Helping streamline regulatory framework and policies

•  Investing and encouraging research and innovation

•  Investing and encouraging commercialization: e.g., clinical research and validation; production scale-up

•  Investing and encouraging training skilled scientific and business professionals

•  Facilitating assess to research and technologies

•  IP policy to allow industry owning IP or the right of IP

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•  Cross Sector Collaboration

•  Industry Focusing on Accessing and Utilizing the Innovation and Technology

•  Leveraging the Resources, Compliment the Strengths

•  Building a Viable NPH and Functional Food Industry and Research Community Together

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