Transcript The Market Opportunity

NewPath Molecular Research
Investor Overview
Biotech and Money Feb 2015
Dr Elizabeth Farrant
Contract Discovery Research
The Market Opportunity
Market Evolution
Outsourcing of discovery services is a
growing global market
• Predicted to grow to $21Bn by 2016
• $4.5Bn of this is predicted to be
chemical synthesis
•
–
–
Outsourced Discovery Services ($Bn)
–
25
Predicted
20
•
15
$Bn
10
5
•
0
2010 2011 2012 2013 2014 2015 2016
Year
Biomarket Trends 2012 Vol 32 No 11
In recent years, outsourcing has
been driven by pressures to
improve the productivity of R&D
spend
Reduced internal R&D capability
Requirement for fungible contract
resource on projects
Increased outsourcing to lower cost
economies
However, increasingly, wage
inflation (lower cost
economies)and competition
(higher cost economies) is reducing
the differential
Outsourcing decisions are
increasingly made on the basis of
competency rather than cost
The Innovation Gap in Pharma
• Pharma has seen:
– Reduced numbers of
innovative products
– Increasing costs to market for
products
– Shorter exclusivity due to “me
too” products
• The “low hanging fruit” drug
targets have been
addressed
• New targets are difficult to
address with current
approaches
Dr Youssef Bennani, Vertex:
“
“
A consequence of outsourcing has
been to reduce chemical
innovation in small molecule
research
There is unfulfilled demand in pharma and biotech for
innovative chemical matter
Y. L. Bennani, Drug Discovery Today, 2011, Vol 16, p 779
NewPath Molecular
The 21st century chemistry lab
• NewPath is
commercialising the
research of Prof S Ley
(Cambridge University)
• Using modular machine
assisted chemistry to
make the right molecules,
not the easy molecules
Client Example
• Client 1 have discovered
a complex molecule with
promise in a key unmet
medical need
• Production using current
technologies is not
commercially viable
• NewPath are developing
an innovative,
commercially viable,
route to the molecule to
enable innovation in a
key unmet medical need
The Founders
• Prof Steve V. Ley CBE FRS FMedSci
– Involved in 3 spin-out companies
– Consultant to 6 major pharmaceutical companies
• Dr Nikzad Nikbin (CTO)
– 8 years developing machine assisted synthesis techniques
in the University of Cambridge Innovative Technology
Centre
• Dr Elizabeth Farrant FRSC (CEO)
– 17 years experience in Pharma and contract research
medicinal chemistry services
• Andrew MacCormack
– 17 years at JP Morgan
– Active investor in numerous start-ups, most notably
Intervate Limited, a renewable energy company
The Business Model
•
•
•
•
Fee for Service revenue
model
FTE rate based
Already secured contract to
cover first 15 months
operating costs
Seeking £500k seed funding
to:
– accelerate the
development and IP
protect the machine
assisted chemistry lab
– Scale the business in year 3
PROFIT & LOSS STATEMENT
Revenues
CRO Revenues
Grant Revenues
Total Revenues
Direct Costs
Consumables
Licensing / Royalty
Software
Equipment Operations & Maintenance
R&D Expense
R&D Out-sourcing
Consumables
Direct Costs
Personnel
Gross Operating Profit / (Loss)
Overheads
Facilities
Insurance
Professional Fees
IP
Business Development
Training, Periodicals, Publications
Bank Charges
Overheads
EBITDA
FY2015
FY2016
292,500
16,846
309,346
FY2017
FY2018
FY2019
390,133
18,841
408,974
1,446,667 3,402,000
15,400
12,587
1,462,066 3,414,587
3,724,000
10,288
3,734,288
9,000
8,775
18,000
9,600
0
10,500
3,000
58,875
194,985
55,486
13,200
11,704
24,000
30,720
0
21,000
6,000
106,624
255,905
46,445
48,000
48,000
43,400
102,060
36,000
48,000
45,120
64,320
0
0
0
0
6,000
6,000
178,520
268,380
998,267 1,506,505
285,279 1,639,702
48,000
111,720
72,000
88,320
0
0
6,000
326,040
1,544,168
1,864,080
5,100
5,040
1,200
2,040
7,200
1,380
0
21,960
75,000
6,135
6,135
5,040
6,000
1,800
600
100,709
105,000
29,241
21,931
12,000
24,000
2,100
600
194,872
33,526
(54,264)
150,000
68,292
51,219
12,000
24,000
3,000
1,200
309,711
180,000
74,686
56,014
12,000
24,000
3,000
1,200
350,900
90,407 1,329,991
1,513,180
For more information:
Elizabeth Farrant
[email protected]
+44 (0)7930 853662