Final presentation on the recommendations for Ezose Sciences, Inc.

1. Ezose Sciences Inc.
Final Presentation
December 14th, 2011
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2. Company Overview JEFF
 Relatively new company
 Centrally located in heart of
pharmaceutical country
 Focus on glycomics and biomarker
discovery
 Multiple collaborations
completed / in progress
Ezose laboratory - Pine Brook, New Jersey 2
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3. Industry Snapshot JEFF
70,000 Pharmaceutical Industry Job Cuts
 Ezose:
60,000
 Biotech industry 50,000
40,000
 Discovery, Research &
30,000
Development market
20,000
 Customers: pharma and 10,000
biotech companies 0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
 Major trends and drivers: Top 5 Drugs From 2011 and 2012 Coming off of Patent Protection
Patent 2010 US Sales
Drug Condition Company
Expiration ($M)
 Expense control 2012 Plavix Anti-platelet BMS / Sanofi $6,154
2011 Lipitor Chloresterol Pfizer $5,329
 Generic drugs 2012 Seroquel Antipsychotic AstraZeneca $3,747
2012 Actos Type 2 Diabetes Takeda $3,351
 Companion diagnostics 2012 Enbrel Arthritis Amgen $3,304
2012 Singulair Asthma Merck $3,224
 Partnerships 2011 Zyprexa Antipsychotic Eli Lily $2,496
2011 Levaquin Antibiotics J&J $1,312
 Biomarkers 2011 Concerta ADHD/ADD J&J $929
2011 Protonix Antacid Pfizer $690
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4. Industry Snapshot (cont.) JEFF
$B Research & Development Market
180
160
140 17.5% 18.8%
15.4% 16.4%
120 14.6%
14.7%
100
80
60
40
20
0
2009 2010 2011 2012 2013 2014
Outsourced R&D In House R&D
Growth Rates:
R&D Market -1.2% 7.7% 4.3% 3.5% 3.5% 3.5%
In-house R&D -2.6% 7.8% 3.2% 2.4% 2.2% 1.9%
Outsourced R&D 7.7% 7.2% 10.3% 9.8% 10.6% 11.2%
2009 2014 5 Year
Industry Mkt Value Mkt Value CAGR
Pharmaceutical $664.6B $860.4B 5.3%
Biotech $231.2B $366.7B 9.7%
Contract Research $18.1B $28.9B 10.0%
Biomarkers $8.4B $21.1B 20.2%
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5. Biomarkers MATT
Predict/prevent
disease
Predict drug Predict drug
response safety
Biomarkers
Monitor drug Personalized
response &
safety
medicine
Rx-Dx
combinations &
theranostics
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6. Glycomics MATT
What is it?
 Study of sugars of a cell type or
organism
 Involves complex, highly
branched structures
Glycans
Benefits
 Underdeveloped and
$B Global Biomarker Forecast
underexplored field 18
16
 Play critical role in bacterial and 14
viral recognition 12
10
 Determine cancer development 8
6
 Involved in cellular signaling 4
2
pathways and modulate cell 0
function Genomics
2010
Imaging Proteomics
2015
Bioinformatics Other
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7. GlycanMap Technolgoy MATT
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8. Cost
Tech
Location
Revenue
Resources
Reputation(aka
Industry Standard)
Speed/Throughput
STRONG
Ezo
s e
Competitors
Om
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Pro &D
(pr C
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(ge ran s
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cot enta :
ec h ,
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Di a har
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stic R&D
s, M :
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ive
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9. Ezose - Strengths and Weaknesses
ERIC
Strengths Weaknesses
 Technology: GlycanMap allows for  Size: limited number of projects
high-throughput glycan analysis they can take on due to having only
one location, low headcount, and a
 Small size: flexible; customizable small amount of machines
services
 Reputation: Company is only a
 Location: centrally located in New couple of years old, is still trying to
Jersey, the top pharmaceutical build up its reputation
state in the U.S.
 Inefficiencies: New company, still
 Staffing: talented and experienced needs to work out their
staff inefficiencies
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10. Opportunities ERIC
Plans to Outsource Biomarker Discovery:
Within the Year Within a Few Years Not at All
Source: Primary Research
$B Biomarker Market
35
30
25
20
15
10
5
0
2009 2010 2011 2012 2013 2014
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11. Business Strategy ERIC
Strategic Statement
Ezose strives to increase contracts by 50% in 2012, while becoming a self-
sufficient company that is recognized as the premiere name in glycomics by
2014. This will be accomplished by leveraging Ezose’s revolutionary
proprietary glycan technology to discover and develop new biomarkers quicker
and at a lower cost than their competitors, while retaining intellectual property
rights for themselves and their parent company Shionogi.
Objective:
To increase market awareness of its unique
services while focusing on internal growth
and increasing the number of research contracts
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12. Critical Success Factors ERIC
 Promote Ezose throughout the biotech and pharmaceutical industry
Industry Recognition
Do you have a firm understanding of Biomarker Discovery?
Do you have a firm understanding of Glycomics?
Have you heard of Ezose?
If Yes, do you have a firm understanding of what they do?
Yes No
Industry recognition estimated based off of primary research as well as collection of secondary research
 Obtain key partnerships with mid/large sized pharmaceutical or biotech
companies
 Expand into a second lab as more partnerships are obtained
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13. Recommendations JEFF
 Marketing Plan
1. Build upon current actions
• Trade Shows, Public Relations
Firm, Publications
2. Hire a customer relations
management (CRM) team
3. Target specific companies
4. Aggressive pricing
Reasons for Outsourcing R&D
Cost-effective
Lack of In-house capacity
Vendor expertise
Time savings
Regulatory certification
Lack of in-house knowledge
Quality of results
From Science Advisory Board 13
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14. Recommendations(cont.) – Target Companies
JEFF
14% Biomarker Deal Activity by Therapeutic Focus
12%
10%
8%
% of Deals
6%
4%
2%
0%
Industry Perception of High-
throughput Glycan Analysis
Autoimmune / Inflammation
Cardiovascular
Dermatology
Endocrine / Metabolic Systems
Gastrointestinal
Infectious Disease
Neuroscience
Oncology
Renal
Other
More Beneficial Less Beneficial
Target companies with focus on Oncology, Autoimmune / Inflammation & Neuroscience
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15. Recommendations (cont.) ERIC
 Operations
1. Talent retention and acquisition
2. Expansion
3. Legal counsel
4. Strategic Alliance???
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16. Summary MATT
 The Pharma/Biotech Industry is trending in the right direction:
 Outsourcing of R&D, Biomarkers, Companion Diagnostics,
Partnerships
 GlycanMap technology is revolutionary
 Must act with a sense of urgency
 The plan:
 Increased market awareness
 Increased revenue through new contracts
 Increased growth
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