for personal use only - asx2011/09/30 · global regenerative market 2010: $3b 2014: $4.5b...

Corporate Presentation

and Capital Raising

A Unique Opportunity to invest in a

Diversified Healthcare Company with

Large Growth Potential

September 2011

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Disclaimer

This presentation is the property of Allied Healthcare Group (AHG). This presentation is not and does not

constitute an offer, invitation or recommendation to subscribe for, or purchase any security and neither this

presentation nor anything contained in it shall form the basis of any contract or commitment.

This presentation does not constitute an offer or invitation in any jurisdiction anywhere, or to any person to

whom, such an offer would be unlawful. This presentation is not intended as an offer, invitation, solicitation or

recommendation with respect to the purchase or sale of any security in the United States or to any person to

whom it is unlawful to make such an offer or solicitation. The securities in the offering have not been, and will

not be registered under the US Securities Act.

Reliance should not be placed on the information or opinions contained in this presentation. This presentation

does not take into consideration the investment objectives, financial situation or particular needs of any

particular investor. Any decision to purchase or subscribe for securities in AHG must be made solely on the

basis of the information contained in the public domain and if necessary after seeking appropriate financial

advice.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or

correctness of the information, opinions and conclusions contained in this presentation. To the maximum

extent permitted by law, AHG and its affiliates and related bodies corporate, and their respective officers,

directors, employees and agents disclaim any liability (including, without limitation, any liabilities arising from

fault or negligence) for any loss arising from any use of this presentation (or its content) or otherwise arising in

connection with it.

AHG’s forward-looking statements, intentions, forecasts, prospects, returns, expectations, statements in

relation to future matters or other forward looking statement contained in this presentation may involve

significant elements of subjective judgement and assumptions as to future events which may or may not be

correct. There are usually differences between forecast and actual results because events and actual

circumstances frequently do not occur as forecast and these differences may be material. They are based on

a number of estimates, assumptions that are subject to business, scientific, economic and competitive

uncertainties and contingencies, with respect to future business decisions, which are subject to change and, in

many cases, are outside the control of AHG and its directors. Neither AHG nor its directors give any assurance

that the forecast performance in the forecasts or any forward-looking statement contained in this presentation

will be achieved.

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Capital Raising Summary

PREVENT, TREAT, REPAIR AND DELIVER

Allied Healthcare

Group (AHZ)

A diversified emerging healthcare company

Equity Raising Total raising of $2.0 million* by way of a placement to sophisticated and

professional investors

Offer Structure • Placement of 71.4 million shares at 2.8 cents per share

• 12.5% of issued capital

• Representing a:

– 12.5% discount to last closing price

– 18.6% discount to the 5 day VWAP



Use of Proceeds The proceeds from the Placement will be used to fund Coridon’s vaccine

development program, launch CardioCel and provide general working

capital.

*The Company and the Lead Manager reserve the right to increase the size of the Placement to $2.5 million

(subject to demand)

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• Diversified Healthcare Company with R&D,

Clinical Development and Sales & Marketing

• Large Global Markets

• Proven People, Proven Assets

• Milestones over the next 12 to 18 months

to achieve attractive valuation uplifts

• Experienced Board and Management

• Committed to becoming Australia’s next big Healthcare

Company

Investment Highlights


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Capital Overview


• Major shareholders and Directors have committed to

investing a minimum of $755,000 in the Placement,

subject to shareholder approval where required

• In addition to the Placement, the Company has

secured up to US$3 million in equity funding from

Kodiak Capital Group, LLC

• The Kodiak funding can be drawdown at AHZ’s option

over the next 12 months

• Including current cash balance, in total the Company

will have circa. $6 million available to fund future

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Capital Raising

Use of Proceeds


Coridon Tranche milestone payment $0.7 million

HPV Therapeutic vaccine $2.5 million

CardioCel product launch $0.1 million

Offer costs $0.2 million

¹ In addition to proceeds from the Placement, the Company has secured equity

funding of up to US$3.0 million for the next 12 monthsFor

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Value Drivers

Near Term Milestones


• Completion of Tissue Heart Valve Feasibility Study with a

global heart valve company using AHZ’s ADAPT Tissue

Engineering Process

• Completion of pre-clinical HSV-2 DNA vaccine study with

the University of Washington

• Australian regulatory approval for CardioCel – a

cardiovascular patch using ADAPT to treat heart

deformities caused by Congenital Heart Disease

• Phase I HSV-2 DNA vaccine trial to commence in 2012

• Completion of pre-clinical EBV DNA vaccine study with

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Company Overview

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Corporate History

• Spun out of Fortescue Metals Group (ASX:FMG)

• Group listing on ASX in July 2011 (ASX:AHZ)

• Experienced Board & Management

• Enviable Share Registry

• Diversified Healthcare Assets in R&D, Clinical

Development to Sales and Marketing

• Targeting large global markets with proven people and

technology

• Committed to becoming Australia’s next big healthcare

company


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Corporate Details

Shares on issue 571,876,240

Current Holders 3,213

Listed Options (expiry Dec 2011) 76,804,916

Cash Inflow of Options to be Exercised at 4.0c

$3,072,198

Options Converted 2011 $590,639

Top 20 70.55%

Top 40 76.97%

Current Cash $1.0m

Market Cap $18.3 million

TOP 10 SHAREHOLDERS

NAME UNITS % OF UNITS

Avexa Limited 96,000,000 16.79%

The Metal Group Pty Ltd 90,647,712 15.86%

McRae Technology Pty Ltd 73,304,512 12.82%

Emichrome Pty Ltd 22,976,000 4.02%

Lee Rodne 19,482,112 3.41%

Graeme Rowley 10,963,872 1.92%

Victoria Park Investments 10,457,500 1.83%

Broadscope (Catlow Family)

10,189,408 1.78%

Mandolin Pty Ltd 10,115,000 1.77%

Parerg Pty Ltd 9,600,000 1.68%

Total SOI 571,876,240


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Investment OverviewStrategic Shareholder Value Creation

Emerging as Australia’s next big healthcare company

Platform for growth (R&D, Clinical Development, Sales)

Diversity, Assets, People = Proven Capability & Growth Potential


research &

developmentclinical

development

sales &

distribution

Coridon• Commercially

focused R&D

• World class

researchers

• Multiple platform

technology

• Large global

markets

Celxcel• Regenerative

medicine

• Products in

regulatory

approval

• Multiple platform

technology

• Large global

markets

Allied Medical• Hospital products

• Evidence based

marketing

• Expanding positive

cash flow

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A Strong Foundation


Professor Ian Frazer(Inventor)

Coridon

Cervical Cancer VaccineLee Rodne

(Managing Director)

Allied Medical

Significant Revenue &

Transactions

Professor Leon

Neethling(Inventor)

Celxcel

ADAPT Tissue Engineering

Technology

Merger with bioMD(June 2011)

Michael Bennett

RobTowner

bioMD Founding Members

Andrew Forrest(Major Shareholder)

Chris Catlow (Director)

Graeme Rowley (Director)

FMG Founding Members

Acquisition of Medevco

(Aug 2010)

Adding to existing medical

device sales and distribution

business

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Coridon Pty Ltd

Developing “Supercharged” Vaccines to

not only prevent but to treat infectious

diseases and Cancers for large Global

Markets

PREVENT AND TREAT

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Vaccine Development with a

Competitive Advantage

DNA Vaccine

– Why are they different?

• The power to Prevent & Treat infectious diseases

including Cancers

• Easy to design, manufacturer and transport

• High Safety Profile

• Targeted for viruses that conventional vaccines

have been unsuccessful against

PREVENT AND TREAT

“Most of the vaccines at

the moment are just

designed to make

antibody responses. We

recognised the need to

get vaccines which would

recognise both antibody

responses and cellular

responses”

Professor Ian Frazer, September 2010For

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DNA Vaccines –

The Emerging Market

Global DNA vaccine market

2009: $193m

2014: $2.7b (forecast)

PREVENT AND TREAT

“We must make

this the decade

of vaccines ”

Bill Gates,

January 2010,

while announcing

$10 billion investment

over the next ten

years to help

research, develop and

deliver vaccines.

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Pipeline - Milestones

PREVENT AND TREAT

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Herpes Simplex Virus Type 2

(HSV-2 )

67 million people in the USA are infected with HSV-2

with over 500,000 new cases annually and an estimated

market of $600m

Coridon vaccine (preclinical) achieves the acquired immune

responses for both preventative and therapeutic outcomes

Designed to prevent and treat infection without need for

knowledge of whether the patient is already infected

Collaboration with University of Washington

PREVENT AND TREAT

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Epstein-Barr Virus (EBV)

An Epstein-Barr Virus vaccine would be used to treat Post Transplant Lympho-Proliferative Disease (PTLD)

An EBV vaccine may also be used to treat

Nasopharyngeal Carcinoma

Hodgkin’s Lymphoma

Non-Hodgkin’s Lymphoma

Infectious Mononucleosis (Glandular Fever)

Coridon has a collaboration with the Ohio State University, a leading US clinical research university, to perform preclinical studies

Opportunity to demonstrate the technology in another indication at minimal costs (proving up the platform technology)

PREVENT AND TREAT

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Celxcel Pty Ltd

Clinical Stage Development of

Regenerative Tissue

REPAIR AND TREAT

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Regenerative Medicine

Global Regenerative Market

2010: $3b

2014: $4.5b (forecast)

Soft Tissue Repair Procedures

Over $1b a year gets spent in the US on soft

tissue repair procedures such as heart valve

replacement, cardiovascular patches, hernia

surgery, and pelvic floor reconstruction.

REPAIR AND TREAT

Regenerative Medicine is a technique to treat

injuries and diseases with specialty grown

tissues by way of several methods, including

Stem Cell therapies and Tissue Engineering

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Existing Technology –

Soft Tissue Repair

There are currently three main materials used in soft tissue

repair

• Human tissue

• Animal tissue (bovine and porcine)

• Synthetic tissue

However existing materials have characteristics that often

result in rejection, calcification or disruption to normal

body processes once implanted.

REPAIR AND TREAT

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Our Technology

The ADAPT® Tissue Engineering Process (TEP) is a tissue

processing technology that allows us to engineer tissue in a

specific way that overcomes current commercial implant

liabilities.

Studies have proven that ADAPT offers significant

improvements compared with other commercially available

processes in:

• Biocompatibility

• Durability, Strength, Functionality

• Cross-linking

• Controlled remodelling

• Immunogenic response

• Angiogenesis

• Tissue calcification

REPAIR AND TREAT

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Pipeline & Milestones

REPAIR AND TREAT

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Market Opportunities

REPAIR AND TREAT

Opportunity Details

Cardiovascular

Patch - CHD

Congenital Heart Disease (CHD) relates to a variety of heart defects present

at birth, responsible for more deaths in the first year of life than any other

birth defect. There is currently an average of 8 cases of CHD present in

every 1,000 live births in Australia and 14 – 20 cases per 1,000 live births in

Asia. The market for cardiovascular patch in the US alone is worth US$30m.

Tissue Heart Valve The ADAPT technology can be used to produce the valve leaflets required

for stented heart valves, a global market currently worth in excess of

US$760 million annually and which is expected to grow by 18.2% pa to

reach US$1.74b by 2015.

Pelvic Floor

Reconstruction

An estimated 10-20% of women have suffered some kind of vaginal

prolapse, and the US market for pelvic floor surgical material is around

US$300m pa.

Mesenchymal

Stem Cells

Commercialisation of stem cell therapies addressing new billion dollar

markets could create strong demand for tissue engineering technologies

since biological scaffolding will likely be needed for many stem cell therapies

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Allied Medical Pty Ltd

A valued partner to Hospitals, Clinicians and Patients.

Providing innovative solutions and leading edge medical

devices that enable healthcare professionals to deliver

efficient, quality care to help people lead more active and

rewarding lives

SALES AND DELIVERY

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Our Products

• Pain Management

• Infusion systems

• Cardiology

• Emergency Care

SALES AND DELIVERY

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Allied Sales Growth

Allied’s current sales & distribution business is built on +7 years of growth (~$7m in revenue 2011)

Allied has had 19% CAGR in recent years versus the industry CAGR of ~9%

Allied sales grew by 65%FY 2010-11

Profit supports acquisition and development functions in AHG

National Infrastructure to expand sales and revenue

SALES AND DELIVERY

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Thank you

Allied Healthcare Group

An opportunity to invest in a new diversified healthcare

company with large growth potential.

Contact

Mr Lee Rodne, Managing Director

[email protected]

Australia: +61 433 926 277

US: +1 651 204 6856

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mailto:[email protected]

for personal use only - asx2011/09/30 · global regenerative market 2010: $3b 2014: $4.5b...

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