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This presentation was prepared for the sake of summary and convenience only and it cannot replace a
reviewing of the prospectus and/or the periodic report of Kadimastem Ltd. (hereinafter: “the Company”).
This presentation contains projections, estimates and assessments, as are known to the Company at the time
of preparation of this presentation, referring to the Company and including, inter alia, forward-looking
information as defined in the Securities Law, 5728 – 1968, based on subjective estimates on the part of the
Company in respect of its development potential and based on initial information and documents the
Company received from professional entities relevant to the Company’s development plans.
Forward-looking information is uncertain and mostly is not under the Company’s control and the realization or
non-realization of forward-looking information will be affected, among other things, by the risk factors
characterizing the Company’s activity, as well as developments in the general environment and external
factors affecting the Company’s activity. The Company’s results and achievements in the future may differ
materially from those presented in this presentation and the Company makes no undertaking to update or
revise such projection or estimate and does not undertake to update this presentation.
This presentation does not constitute a proposal to purchase the Company’s securities or an invitation to
receive such offers. Investment in securities in general and in the Company in particular bears risks. One
should take into account that past performance does not necessarily indicate performance in the future.
2
Disclaimer
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Vision
Utilize innovative stem cell-based
therapies to treat incurable diseases
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Company Snapshot
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Established: 2009
Founders: Yossi Ben Yossef and Professor Michel Revel
(developer of Merck Serono’s blockbuster drug REBIF®)
Differentiate stem cells into a range of functioning cells for:
Regenerative Medicine – using differentiated cells to cure diseases
Drug Screening – using differentiated cells to test effects of
compounds
Agreement with the Merck Serono for drug screening for
multiple sclerosis (MS)
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Company Snapshot
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1,700 m² (18,300 ft²) labs and offices including two clean rooms
30 employees (9 PhD’s)
Experienced Management with extensive biotech experience
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Business Model
The drug screening engine reduces dependence on outside funding
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Regenerative Medicine
DrugScreening
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What Are Stem Cells
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A Cell with a potential to…
Self renew
Differentiate into a variety of cells
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Our Platform Technologies
• Insulin producing beta-cells• Brain supporting (glia) and neuronal cells • Accurate and reproducible
• Large scale production capabilities • hESC and iPS cells• Reproducible
Expansion
Differentiation
The basis for both drug screening and regenerative medicine
activities
Highly skilled team can transition between activities as
needed
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Commercial Applications
Platform Technologie
s
Regenerative Medicine
Drug Screening
Existing project
Additional diseases
Goals
ALS
(Merck Serono)
MS
HD
Diabetes
ALS
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Diabetes
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A group of diseases characterized by excessive levels of blood
sugar
Insulin – a hormone secreted from beta cells in the pancreas
The absence of insulin causes an excessive blood glucose level
that causes cumulative damage
Lack of insulin production or the inability to use it
Inability to produce insulin
>371 million patients worldwide
90%
Type 2
10% Type 1
Source: http://www.idf.org/worlddiabetesday/toolkit/gp/facts-figures
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Diabetes – Target Market
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137m patients worldwide
(type 1 diabetes patients +~30% of type 2 diabetes patients - insulin dependent)
~30 million in developed world
Global Epidemic (WHO)
The global market for diabetes management is expected to reach 114$ billion in 2016* Source: the American Diabetes Society (diabetes.org), the World Health Organization (who.int), the International Diabetes Federation (idf.org) and a market
study conducted by the MedMarket Diligence company from 2010 )http://www.mediligence.com/rpt/rpt-d510.htm); also http://www.diabetes.ucsf.edu/clinical-care-education/about-diabetes/type-2-diabetes-faqs * http://www.transparencymarketresearch.com/diabetes-devices-market.html
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Diabetes – Existing Treatments
Monitoring glucose levels and injecting insulin accordingly
• Insulin injections do not prevent the cumulative damage of the disease
• Difficulty in balancing diabetic patients
• Dangerous states of diabetes (hyperglycemia) and “sugar level drops”
(hypoglycemia)
Transplantation of beta cells from cadaveric organ donors
Feasibility proof of concept regarding treatment using beta cells transplant
Shortage in sufficient organ donations
Requires long-term immunosuppression
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Production and transplantation of stem cell-derived islet-like
structures in patients:
Kadimastem produces islet-like clusters that show glucose-
stimulated insulin secretion.
Restoring the patient’s ability to produce and release insulin and
glucagon
Obviates the need for monitoring blood sugar levels and insulin
injections
Eliminates the life threatening consequences of diabetes
Significant improvement of patients’ life expectancy and quality
of life
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Diabetes – Our Solution
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Diabetes – Our Solution
Stem Cell Expansion
Differentiation into Beta Cells
Sorting of Beta Cells
Re-aggregation into Islet-like
structure
Encapsulation Implantation
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Commercial Applications
Platform Technologie
s
Regenerative Medicine
Drug Screening
Existing project
Diabetes
Additional diseases
Goals
ALS
(Merck Serono)
MS
HD
(Merck Serono)
ALS
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ALS
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A rapidly progressive and fatal neurological disease
Attacks neurons responsible for controlling muscles
(motoneurons)
Leads to loss of muscle control
Disease does not impair a person’s mind
Lou Gehrig 1903 - 1941
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ALS – Target Market
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~150,000 patients
ww ~50,000 diagnosed each year
~137 diagnosed each day
Annual ALS healthcare cost in US alone estimated at $6 billion *
The numbers increase as population ages
Refers to US, Canada, Europe and Australia. http://www.alsa.org/als-care/resources/publications-videos/factsheets/epidemiology.html * http://alliancerm.org/disease/als-and-regenerative-medicine
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Medications : Rilutek® - the first and only medication approved
by the Food and Drug Administration for slowing ALS
Appears to slow the disease's progression in some people
Physical therapy
Occupational therapy
Speech therapy
ALS - Existing Treatments
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Studies have indicated the involvement of malfunctioning
brain-supporting cells (astrocytes) in ALS
Cells become toxic to Motoneurons
Reduced levels of brain’s “well-being”
Our therapeutic approach:
Increase neuronal survival by transplanting functional human
astrocytes into ALS patients
ALS – Our Approach
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Therapeutics Development Strategy
• Advance ALS until end of in-vivo trials, in
parallel to Diabetes
• Go/No-Go decision point - Q2 2015:
– Positive in-vivo results in ALS continue to
advance program and slow down Diabetes
– Negative in-vivo results in ALS continue to
advance Diabetes and slow down ALS
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ALS Development Timeline
In-vivo IND Clinical Trials
Q2 ‘15$1 M
Q2 ‘19Q2-Q3 ‘16$5 M
Add Strategic Partner
Go/No-Go (Diabetes or ALS)
Q1 ‘14
It is hereby clarified, that the aforementioned assessments, regarding the expected progress of the Company's R&D in the field of ALS is considered prospective information, as defined in the Securities Law, which is based, inter alia, on current quotations, Company's working plan and acquaintance with the regulatory requirements to this date. This information might not realize and the actual results might be substantially different, inter alia, as a result of lack of proper funding for progress in the desired scope of activity, failure of pre-clinical and/or clinical experiments, delay of schedule, regulatory changes in countries where the Company plans to conduct the experiments, etc.
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Diabetes Development Timeline
In-vivo trials IND Clinical
Trials
Q4 ‘20Q4 ‘17$7 M
Q2 ‘16$1.5 M
Add Strategic Partner
It is hereby clarified, that the aforementioned assessments, regarding the expected progress of the Company's R&D in the field of diabetes is considered prospective information, as defined in the Securities Law, which is based, inter alia, on current quotations, Company's working plan and acquaintance with the regulatory requirements to this date. This information might not realize and the actual results might be substantially different, inter alia, as a result of lack of proper funding for progress in the desired scope of activity, failure of pre-clinical and/or clinical experiments, delay of schedule, regulatory changes in countries where the Company plans to conduct the experiments, etc.
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Increase in Early-Stage Deals
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Early Stage Deal ValuationPicks Up, But Not Late Stage$80
$60
$50$4
$30
$20
$70
$10
$0
$0 $100 $200 $400 $500
5 year average
2013
Preclinical
Aver
age
Upf
ront
Total Deal Value
$80
$60
$50$40
$30
$20
$70
$10
$0
$0 $100 $200 $400 $500
5 year average 2013
Phase I
Aver
age
Upf
ront
Total Deal Value
$80
$60
$50$40
$30
$20
$70
$10
$0
$0 $100 $200 $400 $500
5 year average
2013
Phase IIIAv
erag
e U
pfro
nt
Total Deal Value
$80
$60
$50$40
$30
$20
$70
$10
$0
$0 $100 $200 $400 $500
5 year average
2013
Phase II
Aver
age
Upf
ront
Total Deal Value
Source: http://www.partnering360.com/insight/showroom/id/429
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Commercial Applications
Platform Technologie
s
Regenerative Medicine
Drug Screening
Existing project
Diabetes
ALS
Additional diseases
Goals
(Merck Serono)
MS
HD
ALS
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Production of specific, relevant and functional cells from stem cells
Creating simplified models for drug activity, automatically quantified
by imaging based system
Testing how potential drugs affect the cell functionality
A stem cell colony Neuro-glia progenitor cells
Drug Screening
Differentiated cells are affected (or not) by the drug
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Collaboration with Merck Serono
Goal: Using Kadimastem’s specialized cells for MS drug discovery
The agreement: 1) A non-exclusive collaboration 2) Merck Serono provides potential drugs
4/2012 – Signed drug screening agreement focusing on MS
11/2013 – Signed MOU to advance collaboration to include: $1M grant from Merck Serono Optimizing screening capabilities for MS drugs Development of screening capabilities for ALS and Huntington’s
Diseases
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Patents
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Diabetes Therapeuti
cs
ALS Therapeuti
cs
Drug Screening
Stem Cell Enabling
Technologies
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Founded Kadimastem in 2009
12 years of experience in leading investments and building start-up companies in
the field of life sciences
Investment and active involvement in Evogene, VBL, Radvision, Rosetta Genomics,
BiondVax, Comfi, Wisecom
Yossi Ben Yossef – CEO
Founded Kadimastem in 2009
Professor Emeritus of molecular genetics at the Weizmann Institute
Israel Prize laureate
Over 30 years of experience in development and global commercialization of
advanced biotechnological products
Developed Merck’s REBIF® drug for multiple sclerosis ($2.2B USD in sales in 2011)
Professor Michel Revel – Chief Scientist
Management Team
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Milestones
Milestones
Initiate in-vivo studies in a diabetic model
Initiate in-vivo studies in a SOD1 ALS animal model
Sign agreements with Pharma companies (MOU Merck
Serono )
ALS – Complete animal testing Q2 2015
Diabetes - complete in-vivo studies on immune-deficient
animals– Q2 2015
Diabetes - complete in-vivo studies on immune-competent
animals– Q2 2016
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√√√
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Strategy
Strategy
Shorten time and cost by licensing and mergers
Adding strategic partner for the development of diabetes
and ALS therapies
Drug screening agreements with additional drug companies
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Take home messages
Developing drugs to improve patients’ life quality &
expectancy
Therapeutic programs with blockbuster potential
(Diabetes, ALS)
Commercial agreement with Merck-Serono
Highly experienced executive team (CSO developer of
Rebif®)
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Thank you