imprimis pharmaceuticals nasdaq:...
TRANSCRIPT
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SAFE HARBOR
This presentation contains express "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward-
looking statements. These statements are based on current expectations of future events. If
underlying assumptions prove inaccurate or known or unknown risks or uncertainties
materialize, actual results could vary materially from the Company’s expectations and
projections. Some of these risks and uncertainties include, but are not limited to: the
Company’s ability to make commercially available its formulations and technologies in a
timely manner or at all; market acceptance of the Company’s formulations and challenges
related to the marketing of the Company’s formulations; its ability to obtain intellectual
property protection for its assets; its ability to accurately estimate its expenses and cash
burn, and raise additional funds when necessary; its ability to generate profits from sales of
its formulations; risks related to research and development activities; the projected size of
the potential market for its technologies and formulations; unexpected data, safety and
technical issues; regulatory and market developments impacting compounding pharmacies,
outsourcing facilities and the pharmaceutical industry; competition; and market conditions.
More detailed information about the Company and the risk factors that may affect the
realization of forward-looking statements is set forth in the Company’s filings with the
Securities and Exchange Commission, including its Annual Reports on Form 10-K and its
Quarterly Reports on Form 10-Q filed with the SEC. Such documents may be read free of
charge on the SEC’s web site at www.sec.gov. All forward-looking statements are qualified
in their entirety by this cautionary statement. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof. Imprimis
expressly disclaims any intent or obligation to update these forward-looking statements
except as required by law.
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STATE OF DRUG DEVELOPMENT
Of 220 drugs approved over the past decade
for publicly traded companies, the companies
that invented 3 or more medicines spent an
average $4.3 billion in R&D per drug. (Sept ’13)
“Eroom’s law – that’s Moore’s law backward –
observes that the number of new drugs
approved per billion dollars spent on R&D has
halved every nine years since 1950.”
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TABLE OF CONTENTS
OPHTHALMOLOGY BUSINESS
DROPLESS THERAPYTM INJECTABLES
LESS DROPSTM TOPICALS
UROLOGY BUSINESS
HEP-LIDO-A (HLA)
IMPRIMISRXTM
COMPOUNDING PHARMACIES
OUTSOURCING FACILITIES
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CATARACT SURGERY MARKET
In Need of a Solution
Standard of care is eye drop therapy
$1B+ spent on eye drops in the US
Eye drops = The Three C’s:
Cost, Compliance, Call Backs
Dissatisfaction with eye drops
How do you reduce reliance on eye drops?
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POST-OP SUMMARY
THE EYE DROP JOURNEY
PATIENT PROFILE SCHEDULING SURGERY DAY
80 years old
Arthritis
Scoliosis
Lives alone
Social Security
Rxs for multiple eye drops Pharmacy switched Rxs
Cannot afford QD and BID drops (on Rx)
Patient brings QID generic drops
Difficulty administering
Confusion on regimen
Runs out; no refills
Higher cost to the patient
Compliance concerns
Calls to office staff
Risk of endophthalmitis, inflammation and CME
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POST-OP SUMMARY
PATIENT PROFILE SCHEDULING SURGERY DAY
THE DROPLESS JOURNEY
SURGERY DAY
Dropless Therapy injected intravitreally
Eye looks quiet
No infection
No inflammation
Patient saves money
Patient happy
No compliance concerns
80 years old
Arthritis
Scoliosis
Lives alone
Social Security
No eye drop Rxs
Informed about Dropless Therapy
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Enabled by SSP Technology™
Ocular injection platform
Antibiotic and anti-inflammatory
prophylaxis
Significant cost savings
Eliminates compliance issues
Decreases staff time
Patients and MDs prefer Dropless
DROPLESS THERAPYTM
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LESSDROPSTM
PLATFORM
Enabled by SSP Technology™
Combination drop platform
Antibiotic + Steroid
NSAID + Steroid
Triple Drop™
50% fewer drops
Lower cost (up to 75% savings)
Better compliance
Reimbursable
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LASIK and Refractive Surgery
>50% of Americans require vision correction
43M are candidates for refractive surgery (US)
>35M LASIK performed since 1999 (Global)
>700,000 LASIK procedures annually (US)
OCULAR SURGERY MARKET
Cataract Surgery
>24M Americans over age 40 have cataracts
3.6M cataract surgeries performed in 2013 (US)
4.3M surgeries expected in 2017
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GO DROPLESSTM
CAMPAIGN
Since Go Dropless Launch in April 2014
>50 media segments since launch
Available in 41 states
>35,000 surgeries since launch
>240 prescribing MDs and growing
Non-human and outside US opportunities
Cannula companies supporting Dropless
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HEALTHCARE SAVINGS POTENTIAL
Drop Therapy*
Dropless Therapy
TOTAL COST
Dropless Therapy = >$1 Billion/Yr Savings
COST PER THERAPY
$482
$100
$1.35B
$280M
2.8M of estimated 3.6M US cataract procedures are Medicare recipients.
*Based on survey of Walmart.com in Nov. 2014 for Vigamox ($128.79), Durezol ($194.84) and Ilevro ($159.28). Total: $482.91.
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INTERSTITIAL CYSTITIS (IC)
Also known as painful bladder syndrome
Chronic disease; pain; frequent urination
Recurring flares (3-7 days); average 4/yr
Severity, duration, and frequency varies
>5M have IC (Journal of Urology)
85% with IC are women
Elmiron® is only FDA-approved oral
3-6 months to starting working
Compliance issues
Reported side effects
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HLA FORMULATION
Heparin + alkalinized lidocaine
Developed by inventor of Elmiron®
Patented through 2026
Exclusive license in April 2015
Studies reported immediate relief
>80K Rxs (2014); est. $5.5M
Defeat ICTM launched Q1-2015
Reimbursed by insurance; $60-$70
HLA and $150-$180 for procedure
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MARKET OPPORTUNITY
Market opportunity est. $4.8B/yr
Assumptions:
$60 per HLA formulation
5M US patients
4 flares/year
4 instillations per flare
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IMPRIMISRX™ PHARMACIES
503A of the FDCA
State pharmacy licensing boards
PCAB-accredited
Licensed in 41 states
National redundant operations (2015)
(Acquired April 1, 2014)
(Acquired January 1, 2015)
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OUTSOURCING FACILITIES
New 503B outsourcing facility,
Roxbury, NJ 8,600 sq. feet
cGMP production standards
Focus on flagship formulations
Interstate distribution
No individual patient prescription
(Acquired April 1, 2014)
(Acquired January 1, 2015)
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LAND AND EXPAND STRATEGY
Investing in relationship-building
“Land” by solving pain points
“Expand” with generic “add-ons”
Strong margins on proprietary
and non-proprietary offerings
Providing A+ customer service
(Acquired April 1, 2014)
(Acquired January 1, 2015)
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CONCLUSION
Disruptive and capital efficient business model
Rapidly growing ophthalmology franchise
Urology business expected to accelerate growth
Valuable intellectual property portfolio
Opportunity to expand revenues and margins with
complementary offerings
Potential opportunist regulatory environment
Infrastructure in place to support growth
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COMPANY PROFILE
Trading Symbol: NASDAQ: IMMY
Current Price per Share (3-20-15): $7.91
Market Cap: $74 Million
52-Wk Range: $4.71 - $9.24
Number of Employees: 64
Headquarters: San Diego, CA
503A Pharmacies: Randolph, NJ and Irvine, CA
503B Outsourcing Facility: Roxbury, NJ (under construction)
Financial Info:
No preferred shares or convertible debt; No senior debt
Cash position - $8.2 million as of 12-31-2014
2014 revenues $1.7 million