Zivo april2015

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2015 Opportunities and Outlook for Growth Human & Animal Health

Transcript of Zivo april2015

2015 Opportunities and Outlook for Growth

Human & Animal Health

Notice to Investors & AnalystsThis Business Summary, Investment Summary and any Exhibits to itcontain forward-looking statements that involve risks and uncertainties.These statements reflect the Company’s future plans, objectives,expectations and intentions, and the assumptions underlying or relatingto any of these statements. These statements may be identified by theuse of the words “anticipate,” “expect,” “estimate,” “intend,” “believe,”and similar expressions. The Company’s actual results could differmaterially from those discussed in these statements. Factors that couldcontribute to these differences include, but are not limited to, thosediscussed in this document.

Overview ZIVO Bioscience, Inc. holds valuable intellectual property in the form of proprietary algae strains and bioactive compounds that promise to:

Support a healthy immune response in animals and humans

Promote healthy cholesterol balance in humans

Support joint health in animals and humans

Find Applications in feed, food, dietary supplements, pharma

Speed to Revenue The company intends to drive near-term revenue by monetizing animalnutrition and health market verticals while we continue to developlonger-range products that represent larger opportunities, such ashuman therapeutic agents

After efficacy/safety testing and registration, the Company’s natural animal products may be monetized in a matter of months by licensing to larger, well-established brand names as healthy feed and pet treat ingredients

Company is validating and intends to license its bioactive compounds to animal health companies for future therapeutic use

Human product development/compliance as a dietary supplement starts once revenue streams from animal licenses are realized

Company spreads development risk and capital across feed, food, dietary supplement, medicinal and pharma market verticals, while sprinting toward positive cash flow

Monetizing Multiple Verticals

Market Potential Animal HealthThe Company’s proprietary, algae-derived bioactive compounds are found to be effective in early studies when applied to dairy cattle and dog models – our highest near-term priorities

Accelerate recovery from bovine mastitis – potentially saving US dairy farmers $2.8+ billion in lost milk production annually. The world’s 244 million dairy cows represent an untapped market

Company has already executed a Collaboration/Optionagreement with Zoetis (formerly Pfizer Animal Health) the world’s largest animal health company for bovine mastitis research

Have been shown to slow the degenerative effects of canineosteoarthritis – a proven $300 million market in the US alone

Near-Term Opportunities

Research Animal HealthThe Company’s proprietary algal culture, its extracts and isolates, are found to be effective in pre-NDI studies as applied to dairy cattle and dog models

In-vitro testing of primary bovine mammary epithelial cells in 3D culture at University of Wisconsin-Madison Dept. of Dairy Science indicated enhanced immune response when cells were exposed to infective pathogens responsible for bovine mastitis, 2013-2014

Explant testing of canine joint tissues at University of Missouri Comparative Orthopaedic Laboratory has indicated the Company’s bioactive compounds may slow the degenerative effects of canine osteoarthritis, 2014

Dairy cow mastitis in vivo pilot study at UC-Davis yielded very impressive results in combatting mycoplasma bovis. As part of its ongoing collaboration agreement with Zoetis, formerly Pfizer Animal Health – world’s largest animal pharma company, the Company delivered a pilot study report in spring, 2015

Recent Developments

Licenses/Joint-VenturesAnimal Feed & Health Ingredients

NATURAL PRODUCTSSYNTHETIC COMPOUNDS

Bovine Feed

Bovine Mastitis pharma

The Company expects to execute licenses as shown. Timeline “0” is close of funding

0 6 months 12 months 18 months

Canine Supplement

Canine Food

MORE REGULATED MORE REGULATED

Canine OA pharma

NATURAL PRODUCTS

Bovine Intra-Mammary

Canine CollaborationOption AgreementPartner TBD

HIGHLYREGULATED

LESSREGULATED

Bovine CollaborationOption AgreementSigned Dec. 20, 2013

Pilot Study Results delivered Spring, 2015

Market Potential Human HealthThe Company’s algal biomass, secondary metabolites and extractsmay be developed into ingredients for these market verticals

• Dietary Supplement/Nutraceutical – a $28 billion USand worldwide market that includes spirulina, algae-derivedOmega-3s, algae-derived astaxanthin, dried kelp, etc.

• Functional Food Ingredient – over 400 good-for-you foodand beverage categories need powerful ingredients to supporttheir product claims – dozens of licenses can be created

Refined isolates and bioactive molecules for therapeutic applications

• Medical Food – a specialized but stable and profitable marketniche for ingredients in prescribed foods and beverages

• Pharmaceuticals – as potential lead compounds for drugdevelopment

Natural Products/Future Therapeutics

Research Human HealthThe Company’s proprietary algal culture extracts were found to be beneficial in pre-NDI/pre-IND studies as applied to human and hypercholesterolemic hamster models

In-vivo testing of hypercholsterolemia at Wayne Statue University Dept. of Nutrition and Food Science found test subjects treated with culture extracts dropped total cholesterol by 32% and increased HDL cholesterol counts by 5% in studies conducted 2009-2012

In-vitro testing of human HEP-G2 and PBMC cell lines revealed early promise in addressing inflammatory cascades resulting from lipid peroxidation in repeated studies at Wayne State University School of Medicine conducted 2010-2012

Company commenced isolation and characterization efforts of bioactive components in 2014 as potential cholesterol management, autoimmune and anti-inflammatory ingredients in human food and dietary supplements

Natural Products/Future Therapeutics

Licenses/Joint-VenturesHuman Nutrition & Health Products

BIOPHARMACOLOGICAL ORSYNTHETIC COMPOUNDS

Cholesterol Balance

Autoimmune Modulation

The Company expects to execute licenses as shown. Timeline “0” is close of funding

0 12 months 18 months 24 months

Cholesterol Balance

Joint Health

Immune Response

NATURAL PRODUCTS

Joint Health

Human NutritionIngredient JV or License

PHARMAREGULATIONS

FOOD SAFETYREGULATIONS

Human TherapeuticLead Compound Option Agreement

Business ModelCompany builds the value of intellectual property by:

Validating a specific application, i.e., bovine mastitis feed ingredient, through safety/tox testing, in vitro and in vivo studies and then patenting uses, production methods, administration modes

Creating a valuable dataset for such a specific application, to shrink risk and development time for a potential licensee, such as an animal feed manufacturer, dietary supplement marketer, animal health co.

Executing royalty agreements, joint ventures and licenses to boost market value and earning power of the intellectual property

Core Business: Monetizing Early Results

Prioritized ObjectivesPotential Revenue Streams

Near-Term < 24 months

Bovine Feed Ingredient Canine Diet Supplement

Porcine Feed Ingredient Human Diet Supplement

Longer-Term > 24 months and beyond

Bovine Medicinal App Canine Medicinal App

Pharmaceutical Lead Compound

Company Snapshot New management and $5.75 million new capital infusion beginning

January, 2012 New business model adopted in January 2012 – Company primarily

engaged in R&D and subsequent licensing/JV of Intellectual Property

Actively acquiring intellectual property Acquired assets of metabolic testing company August 2013 – WellMetris

subsidiary currently in FDA pre-submission, preparing for market launch and active partnering

Optioned libido-enhancement drug candidate August 2014 – newly formed Derivlan Bioscience subsidiary to test compounds in Brazil

Company launched $4.5M capital funding initiative Q4 2014 to fund algal products development and drive to revenue

Trading symbol: OTC:ZIVO.QB

Principal Offering – Algal Products

Use of ProceedsThe following Use of Proceeds will allow Company principals to drive toward expected revenue in late 2015. A comprehensive investment memorandum, due diligence package and business plan are available.

Compliance/Reporting $ 200,000Analysis/characterization $ 300,000Validation $ 500,000

Safety Studies $ 450,000Legal/IP $ 150,000Operations (4 quarters) $ 1,320,000Production/Product Development $ 800,000Marketing $ 420,000Costs associated w funding $ 360,000

Total $ 4,500,000

Prospects & ProjectionsThe Company anticipates income streams to begin developing in late 2015, consisting primarily of advances or options, based on available funding

Product or Application Milestone/Event Expected Revenues Time Horizon

Bovine Mastitis Feed Ingredient License upfront < $500K < 240 days

Bovine Mastitis Feed Ingredient Annual Royalty Payments Up to $5 million < 2 years

Bovine Mastitis Diet Supplement License upfront (non-US) < $250K < 240 days

Bovine Mastitis Diet Supplement Annual Royalty Payments Up to $8 million < 2 years

Canine Joint Health Diet Supplement License upfront < $500K < 1 year

Canine Joint Health Diet Supplement Annual Royalty Payments Up to $10 million < 3 years

Human cholesterol Ingredient License upfront < $500K < 1 year

Human cholesterol Ingredient Annual Royalty Payments Up to $8 million < 2 years

Human cholesterol Supplement License upfront < $500K < 2 years

Human cholesterol Supplement Annual Royalty Payments Up to $10 million < 3 years

Feed, Food & Supplement Only

Exit StrategyZIVO Bioscience, Inc. is a publicly-traded Nevada corporation. Once revenue is optimized, the options to consider are:

Sell the entire Company to a larger, well established JV or licensee for a healthy multiple

Spin out the revenue-generating licenses or subsidiaries into another public entity and conduct an IPO, distribute proceeds to Company shareholders pro-rata

Continue to operate the Company in its current form and develop new applications from the Company’s proprietary IP

Realizing the Potential

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ManagementSince taking over in late December of 2011, the new management team has focused on reorganizing and revitalizing the enterprise:

• Andrew A. Dahl – President & CEO, former Fortune 500 marketing executive and consultant with 20+ year track record, previously in private consulting practice

• Philip M. Rice II – Chief Financial Officer, former DeLoitte CPA, former CFO Stahl’s, 20+ years management consulting, corporate finance and turnaround

• Scott M. Freeman, MD – Chief Science Officer, former COO/Clinical Studies Director, Onyx Pharmaceuticals with 20+ years in drug development, clinical trials management, compliance and regulatory affairs

• Amy E. Steffek, Ph.D.,-- Director, Research & Development, with 14+ yearsin scientific research experience spanning neurology, cardiology, oncology,psychiatry, and endocrinology

• Scott Forsberg – Director, Product Development, former Director of R&D for Solaray and Director of Marketing for Nature’s Way with 20+ year history in nutrition and supplement industry

Core Team

SummaryThe Company holds valuable intellectual property that can be exploited across several market verticals and potentially dozens of licenses within:

• Functional food/feed ingredients, dietary supplements• Drug development lead compounds/medicinal products• Metabolic testing, wellness products• Libido enhancement lead compounds• Anti-aging lead compounds

These distinctly different market verticals substantially increase the odds that any one market may be successful. Acquiring related IP provides opportunities that may help mitigate risk and amortize internal resources across other platforms

Realizing the Potential

Healthy OutcomesZIVO Bioscience, Inc. is dedicated to the discovery, re-purposing and development of products and processes that positively impact health and wellness in humans and animals

Corporate Mission