hbl presentation
TRANSCRIPT
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Hadasit Bio-Holdings Ltd.HBL
((Tel Aviv Stock Exchange: HDST
July 2008
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Forward Looking Statements
This document/presentation contains forward looking statements. Words such as estimates,expects, intends, plans, believes and terms of similar substance used in connectionwith any discussion of future operational performance or financial results, identify forwardlooking statements.
Such statements are subject to risks and uncertainties that could cause the actual results todiffer materially from these statements. The forward-looking statements contained hereinspeak only as of the date of this document.
The Company expressly disclaims any obligation or undertaking to release publicly anyupdates or revisions to any forward-looking statements contained herein to reflect anychange in the Company's expectations with regard thereto or to reflect any change in events,
conditions or circumstances on which any such forward-looking statement is based, in wholeor in part.
This document does not constitute or form any part of any offer or invitation to sell, or anysolicitation of any offer to purchase or subscribe for any shares in Hadasit Bio-Holdings Ltd.or any of its affiliated entities nor shall it form the basis of, or be relied on in connection with,any contract therefore.
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The Value Chain in Israeli Biotech
Academy
& TTOsIncubation
Govt.
SupportClustering
SpecializedAngels
& VCs
PublicInvestment
Co.
Strategic
Partnering
YedaYissum
Ramot
BG Negev
Hadasit
MeytavRad-BIO
Naiot
Capital-
Point
OCS
Magnet
BIRD
Bio-Disc
BriTech
BiolineBiomedix
HMO
Bio-Park
Ofer HTGlenrock
Coronis
Pontifax
BioLightClal Bio
Maayan
HBL
July 2008
Support: GMP, Regul., CRC, Underwri t ing,
IPOs, PR/IR, Analysis, Market-making,
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HBL - Company Profile
Holdings in early-stage biotech companies (until completion of Phase I) 10 companiesAll IP developed at Hadassah
3 areas (Oncology, Auto-immune diseases, Tissue engineering / Stem
cells)
CriteriaDemonstration of Proof of Concept, Blockbuster Market
Exit strategy - at end of Phase I
Leveraging Hadassah Hospital Source of Intellectual Property and future investment opportunities
Skilled personnel, infrastructure, GMP facilities and clinical trials
Established: September 2005
Traded: Tel Aviv Stock Exchange (HDST)since January 2006
Investment rounds: IPO(January 2006)$ 8 m
ConvertibleBonds(August 2006)$ 10 m , $ 5 m converted (Feb.
2007)
Strategic Investment(May 2007) - $ 2 m (Consensus Business Group)
Stockholders: Hadasit (owned by Hadassah) (52%), public (43%), CBG - (5%)
http://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3D -
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VertoCell Cure ProtAb KAHR
100%
52%
H.B .L Ltd .
H.B .L Ltd .
H.B .L Ltd .
H.B .L Ltd .
Public 43%
Tolarex
75%34% 100% 80% 92%
Auto-immune Disease
Fort icel l
Bio.
(Nasdaq)
4.5%
Tissue Engineering
and Stem-cell Medicine
Incure TK Signal(UK)
66% 25%
Oncology
22%
Thrombo
tech
C.B.G 5%ConjuGate 30%
Drug Engineering
HBL Structure (7/08)
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4 Key Building BlocksF.I.M.S
Finance I.P. Mgt. Space
IPO
Bond
PIPE - CBG
OCS
Venture
PhilanthropyFP7
NIH
Hadassah
50 newPatents per
year
Partnering
Heb.U.
U.PENN
ExperiencedManagers
All HMOExperts
SeasonedPharma +
VC Execs.Ph.Ds /
M.Ds
Bio-Park:
6 floors of1,500 m2 o
Fullycustomized for
Biotech
companiesGMP, GLP,
Animalfacilities,
Phase I center
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2008Value Adding Milestones
KAHRHBL Investment, 5 New Compounds from UPENN,OCS approval for $ 400 K, new VP, external investment
TolarexHBL Investment, IND approval from FDA, Phase I
start, external investment ProtAbCompletion of humanizationexternal investment
TK SignalPreparation for Phase I, Phase I start
VertoCompletion of Phase Itrial, strategic partnership
IncureExpansion of trial data, Exitvia strategic partnership ConjuGateExternal Investment, Manuf., Phase I start
BiolineRx2 X Phase II completions (BL1020, BL1040)
HBLInvestment ($ 5-7 M)
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Hadassah Bio-Park - 2008
First medical center on-site bio park custom built for lifescience companies (including labs,Phase I center)
Building upon infrastructure of Hebrew U. Med. School andHadassah University Hospital (conducting more than 50% ofall translational medicine research in Israel)
HU conducts over 40% of all Biotechnology research in Israel. Hadassah Ein-Kerem campus includes Med. and Dentistry
schools, Nursing, Pharmacy &Public Health schools
First building to include 6 floors:
total available space10,000 m
2
Jerusalem municipality and JDAprovide significant financial incentives:tax breaks and grants
5 HBL companies (+ HQ) to relocate
HBL
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Investment Strategy
High return on investment through investments before the
first clinical phase (Phase I)
After proof of concept in animals and before completion of Phase I
Value multipliers: X 10 to X 50
Midway Exit planned after Phase I, clear dividend policy
1
Product target markets measured in the billions of dollars
(Blockbuster)
Oncology, tissue engineering, stem-cell medicine, auto-immune diseases
Answer to Unmet Clinical Needs (not improvement of existing drugs)
2
Risk Management Dispersing risk through a portfolio of 9 companies in different fields Professional identification of investments and guidance of the companies by a team of technology and business
experts Reducing company burn-rate by utilizing the infrastructure of Hadassah Hospital for development and clinical
research Huge pool of future investment options (IP)getting in at ground level with rapid increase in value
3
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1
At Phase IInc rease in value of
10x to 30x
HBLs Sweet Spot
Highest rate of su ccess
vi s--vis requi red
investment
Focus - Return on Investment
% required
investment
Percentof total investment
Odds that company will
advance from this phase to the next
Required investment $mYears
Approval
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The Biggest Growth in Value Has Been atClinical Proof of Concept
Phase I/II Deals
$0
$100
$200
$300
$400
$500
$600
$700
2001 2002 2003 2004 2005 2006
$Millions
0
2
4
6
8
10
12
14
16
18
20
No
.ofTransactions
$ Upfront Total
No. of Deals
SOURCE: Windhovers Strategic Transactio ns Database, June 2007
Upfront only (No milestones
or royalties)Ave. of 35 M
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Market SizeField/TreatingCompany
StrokeUS$ 500 mm;
Cardiac ArrestUS$ 1 billion
Thrombosis, MyocardialInfarction
Thrombotech
Systemic infectionsUS$ 6 billionDrug ReformulationSystemicinfections
ConjuGate
Cancer + Autoimmune diseasesUS$ 5 billion;Cancer, Inflammatory DiseasesKAHR Medical
RAUS$ 5 billion;
DiabetesUS$ 3 billion
Inflammatory and AutoimmuneDisease
Protab
DiagnosticsUS$ 1 billion;
Treatment related drugsUS$ 6 billion
Cancer Monitoringand CureTK-Signal
ParkinsonUS$ 1 billion
MS - US$ 1 billion
Cell TherapyParkinsonDisease and MS
Cell Cure
NeuroSciences
DiagnosticsUS$ 500 mm;
Treatment related drugsUS$ 2 billion
Cancer Diagnostics and cureprocesses
Incure
US $300 mm; Autoimmune diseaseUS$ 20billion
Graft Vs. Host DiseaseTolarex
US$ 2 billionLupusTherapyVerto
2 Market SizeMarket size in
billions
Unmet clinical
needs
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Management
Dr. Rafi Hofstein - Chairman of the Board. President and CEO ofHadasit Ltd., the Technology Holdings Company of HadassahMedical Organization. Ex-President of Mindsense Biosystems Ltd.Business Unit Director of Ecogen Inc., Langhorne PA after servingas the Scientific Director of its Israel office. Ph.D. and M.Sc. in life-sciences and chemistry from the Weizmann Institute of Science,
B.Sc. in chemistry and physics from the Hebrew University inJerusalem. Dr. Hofstein completed postdoctoral training at theHarvard Medical School in Boston, MA, in the departments ofbiological chemistry and neurobiology. Founder of ILSI, advisor toIsraeli Govt., BoDs: Breath ID, Evogene, Bioline, ConjuGate,KAHR, ProtAb, Tolarex.
Adv. Ophir Shahaf - CEO.Appointed March 2007 after serving asVP of the Company since Jan. 2006. Ex-VP business developmentat Protalix Biotherapeutics Ltd. Part of the founding andmanagement team of Clal Biotechnology Industries Ltd. as VP andgeneral counsel. LL.B. from Tel Aviv University, MBA from theStern School of Business at New York University. Teachesbiotechnology entrepreneurship and management, fellow of theMerage Foundation at Irvine, CA. BoDs: Tolarex, ProtAb, Biokine,Thrombotech, ConjuGate.
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Board of Directors /Advisory Board
Prof. Shlomo Mor-Yosef, HMO Director General
Yuval Cohen, Fortissimo Private Equity
Doron Debbie (Consensus Business Group)
Tsipi Gal-Yam (External) Yaron Kulas (External)
Prof. Ruth Arnon (Weizmann)
Steven G. BurrillBurrill & Co.
Tamar Howson (Bristol Myers Squibb, LexPharma)
Mary Tanner (Biogen, NY Hedge Funds)
Jonathan Silverstein (Orbimed VC)
Jonathan Fleming (Oxford Biopartners VC)
Cheryl Reicin (Torys LLP)
All department heads and leading physicians of HMO
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2 Major Strategic Investors / Partners have Invested in HBLPortfolio Companies, :
TEVA Pharmaceutical Industries - $ 1 M in Cell CureNeuroSciences(Aug. 2007)
Recognition of leadership in HESC field Attractive terms for company (value, rights)
Significant role in R&D, production and regulation
Clal Biotechnology (CBI)Option Exercise + additional inThrombotech(Sept. 2007)
$ 750 K exercise fee + $ 500 K in follow on round
Major shareholder participation (Total $ 1.75 M)
Sufficient to complete Phase I trials (Stroke / MI)
Experienced CEO and Chairman recruited
External Investments in Companies
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CompanyProductIndicat ionDiscoveryLeadSelectionEfficacy inAnimal
ModelsIND
Prep.PhaseIPhaseI / IIPha.IIPhaseIIIPMA
VertoLuposorbLupusDoneTolarexApoCellGraft Vs. Host
DiseaseTK SignalFenol
DopamMultipleMyeloma
ProtAbAP6Reum. Arth.Inf. B. Disease
ForticellOrCell /FMB'sHard-to-healWounds
IncurePRMarker
Early StageCancer detect
CellCureNeuralProgen.Multiple Scel.ParkinsonKAHRTSCP'sAuto Immune
DiseaseThromb.TBT218Myocardial.
Infar. StrokeBiolineRxBL1040
BL2030Acute MIProstate CConjuGateAmpho.
BSystemicInfections
HBL Product Pipeline (7/08)
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Progress in Portfolio Companies (I)
Cell Cure NeuroSciences Investment agreement with TEVA ($ 1 M at $ 13 pre-$) HBL holdings increased to 34.5% All IP related to Neurological Disorders (Parkinson, MS,
Alzheimers) permanently released and owned by the company Receipt of $ 2 M in "soft funding"Michael J. Fox, ALS,Beresheet, OCS
New VP of R&D, 4 additional researchers (>20 employees overall)
Verto
Completion of Phase I/II trial10 patients w. no side effects,measurable therapeutic benefits. Trial completeanalysis andpreparation of final report - ongoing.
Discussions with potential strategic partners awaiting additionalclinical data
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Progress in Portfolio Companies (II)
ProtAb (PTK) Humanization and production of the lead antibody underway
(AntitopeCambridge, UK). First samples arrived and tested.
OCS approved 60% of R&D budget ($ 500 K).
Discussions with private and VC investors. Significant interest from strategic partners.
Thrombotech Closed investment following option agreement with CBI ($ 1.75
M), including 300 K from HBL. Recruited experienced CEO and Chairman.
Full set of pre-clinical and toxicology trialsrepeated in "external"lab with excellent results
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Progress in Portfolio Companies (III)
Tolarex (PTK) Advanced preparations for clinical trialQ1/08, Passed IRB,
awaiting MOH approval and pre-IND at the FDA
Additions of personnel (7) and equipment. OCS approved R&D
budget of $ 1.1 M (60% support) CEOexperience in drug development (Alon MoranBioMass)
KAHR Medical (PTK) Negotiations with U. Penn for significant expansion of IP basis (5
new Compounds, based on TSCPs - immune-related proteins) Additional investment by HBL, Application for OCS support
Manufacturing contracts signed with Cobra and Invitrogen
CEOEx-VP of Compugen (Dr. Noam Shani)
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Progress in Portfolio Companies (IV)
Incure Expansion of ELISA study40 patients. Groups added: elders,
smokers, pregnant. Data showing detection of cancer metastases via blood sample.
Negotiation with US strategic partnerlicensing & financing deal. Next stepcommercialization via design of diagnostic kit
ConjuGate Ltd. Platform targeted at unmet needhighly toxic drugs with
adverse side effects
Products to improve efficacy while eliminating toxicity, close tophase I with lead product Leading scientists, strong IP, 3 batches already produced. Significant equity (33%), BOD representation (2 of 5) and
leading position in BD effort.
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Financial Data
$ 3.0 in cash, as of 1/6/08
3 Leading companies (PTK) raising between $ 3-5 M each
All companies show major progress since HBL Investment
Timeline: 3 companiesin Phase I within 12-18 months
Pipeline Potential: exclusive mandate (first look) for IP
from 1,200 MDs/PhDs at Hadassah, 250 patents yearly
Top-notch science, IP protection, management
HMO infrastructure allows for efficient financing, low BRCurrent PIPE
$ 5-7 M at par + warrants. Commitment from Hadassah,CBG and other key shareholders to participate.
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Summary
All companies are funded by HBL, partners
Leverage of soft funds: OCS, research foundations
Science, IP and InfrastructureHMO
Key milestone events expected (Phase I, analystcoverage and external investment)
Validation of strategic model via external strategicinvestors (CBG, Teva, CBI)
Clear Exit strategy at end of Phase I NAV = 65% discount. Target of 7.5 NIS.
Share price allows major appreciation linked tomilestones
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Thank You
Ophir Shahaf, CEO
Hadasit Bio-Holdings Ltd.
Tel.: +972-54-520-1177