as of December 31, 2013

Report
Corporate Presentation
March 1, 2014
Pediapharm is the FIRST and ONLY specialty
pharmaceutical company in Canada fully
dedicated to serve the pharmaceutical
needs of the pediatric community.
Children’s health
is our reason for being
OUR MISSION: To become Canada’s
leading pediatric specialty pharma
company by seeking and delivering
the highest quality, new and existing
therapeutic medicines to improve the
health and assure the wellbeing of
Canadian children.
2
Private and Confidential – DO NOT DISTRIBUTE
The Pediatric Market Segment Opportunity
Pediapharm: the ONLY specialty
pharmaceutical company
dedicated to pediatrics in
Canada

Significant and underserved pediatric Rx
and OTC market in Canada estimated to
be $1 billion(1)

ONLY 30% of all pharmaceutical products
has pediatric indication with proper
formulation

Annual sales growth driven by launch of
new pediatric-focused formulations over
next 3-5 years

Pediatric market not identified as strategic
priority by most big pharma companies in
Canada
U.S. Pediatric Market(2)
$10.6 billion 2010 Prescription
Pharmaceutical Sales
(1); Estimated by the Corporation to be $1 billion. Using the ratio of
approximately 10% of US sales
(2); U.S. market data are not necessarily reflective of Canadian
pediatric market
Private and Confidential – DO NOT DISTRIBUTE
Source: IMS
3
Key Milestones
Building Canada’s
Leading Pediatric
Pharmaceutical
Company
2014 – $2.0M raised in equity
2013 – $6.9 M raised in equity and
listing on TSX-V (Dec 2013)
2014
2013
2012 – Launch of NYDA, VapoLyptus, Allerject
2011 2013 – Valeant agreement
2012
2011 – Orion agreement -Easyhaler
2011
2010 – NYDA filed as a drug
2010
2012 – Easyhaler filing (Health
Canada)
2011 – NYDA approval
(Health Canada)
2009 – PuraCap distribution agreement
for EpiCeram
2009
2008 – Pohl Boskamp distribution
agreement for NYDA
2009 – EpiCeram approval
2009 – EpiCeram launched
2008
2007
2007 – Sanofi-Aventis commercial agreement.
Licensing agreement: APR Applied Pharma on 2
products
Private and Confidential – DO NOT DISTRIBUTE
4
Capital Structure (PDP.V)
Common share listing
TSX-V: PDP.V
Cash (Dec 31, 2013)
$6.1M
Shares outstanding
72.0M
Warrants & options
7.9M
Fully diluted
79.9M
Market Cap
$35.9M
As of March 1, 2014 except Cash position
5
Financial Results (as of December 31, 2013)
December 31,
2013
December 31,
2012
December 31,
2013
December 31,
2012
(3 months)
(3 months)
(12 months)
(12 months)
Revenue
1,237,538
570,945
4,003,807
2,490,503
Selling and administrative
expenses
1,289,916
1,129,759
4,443,971
4,570,472
Operating loss
(52,378)
(558,814)
(440,164)
(2,079,969)
Other expenses
1,650,746
101,144
2,073,027
166,099
Net loss
(1,703,124)
(659,958)
(2,513,191)
(2,246,068)
Cash flow from (used in)
operating activities
(1,020,399)
(233,623)
(1,583,500)
(1,932,622)
Cash flow from (used in)
investing activities
249,443
605
(61,789)
(78,372)
Cash flow from (used in)
financing activities
6,375,730
286,284
7,157,548
1,804,644
6
Operational Infrastructure
Board of Directors
Pierre Lapalme
President & CEO
Sylvain Chrétien
CFO
Roland Boivin
VP Marketing and Sales
Richard Labelle
Director, Market Access
Jean-René PoirierConsultant
Quebec Sales Manager
Nathalie Lafleur
VP BD&L
Dr. Benoît Hébert
Director, Medical Affairs
Dr. Elvira Villazón
Chemistry Manuf. & Control
IP
Alliance Management
Ontario Sales Manager
Agostino Pelaggi
Director,
Business Unit OTC
Ashok Bhaseen
Private and Confidential – DO NOT DISTRIBUTE
Regulatory Affairs
OptumInsight (Canreg)
7
Pediapharm Board of Directors-Current
Pierre Lapalme-Chairman

Sylvain Chretien

Chairman of BioMarin Pharmaceutical Inc since 2004 BMRN:NASDAQ): a leading US
biotechnology company with a Market Cap of greater than US$7 billion. Mr.
Lapalme has held a number of senior management positions in the pharmaceutical
industry including CEO and Chairman of the Board of Rhone-Poulenc
Pharmaceuticals, Inc. Canada, and Senior Vice-President and General Manager of
North America Ethicals, a Division of Rhone-Poulenc, Inc. (now known as SanofiAventis)
Founder, President and CEO
•
See Bio’s under management team
Angelo Botter

Mr Botter has over 37 years experience in the Pharmaceutical and Healthcare
industry with several large multi-national healthcare corporations including Bristol
Labs Baxter Lederle Nordic (Marion Labs) and Abbott Laboritories. Mr. Botter was a
Senior Executive and Director at Abott Laboratories for over 21 years with extensive
experience in Sales Marketing Business Development and General Management
including Senior Executive Director of Pharmaceutical Products for Abott Canada
and General Manager in both South Africa and the Netherlands for Abbott.
8
Private and Confidential – DO NOT DISTRIBUTE
Pediapharm Board of Directors
Normand Chartrand

Representing 2 Regional Economic Intervention Funds (FIER); Longueuil and Granby,
Mr. Chartrand has over 25 years of experience in management and finance with
private and public companies. He has led numerous North-American and
International financings. Mr. Chartrand is also a partner of Vector 7, a consulting
and management firm to both private and public companies.
Pierre Désormeau

Mr. Désormeau, an angel investor, is currently the President and Chief Executive
Officer of Gaïa Consulting Inc. and is also the President and Chief Executive Officer
of Capital Pro-Égaux Inc., (CPE.H: TSX Venture).
•
Douglas M. Stuve is a partner with the law firm Burstall Winger LLP of Calgary since
1993. Mr. Stuve has served as a member of an advisory committee to The Alberta
Stock Exchange and was part of the advisory committee in Calgary, Alberta to the
Canadian Venture Exchange Inc., now TSX Venture Exchange Inc., to assist in
formulating policy prior to and after its formation in November 1999.
Doug Stuve
Mr. Stuve has served as a Director and officer of several public companies and is
currently the Chairman of the Board of Athabasca Minerals Inc. and a Director of
Border Petroleum Corp. and Kairos Capital Corporation, three public companies l
TSX Venture.
9
Private and Confidential – DO NOT DISTRIBUTE
Experienced Management Team
Sylvain Chrétien – President and CEO
Mr. Chrétien is the founder of Pediapharm as well as the president and CEO since January 2008. He
has over 24 years of experience in both the pharmaceutical and the biotechnology sectors, where
he occupied various executive positions in sales, marketing and business development. He worked
with Nordic Laboratories, Pfizer Canada and Biorthex Inc. Before founding Pediapharm, Mr.
Chrétien had his own consulting company called Gestion BioPrisma. Mr. Chrétien was a Director of
Biophage Pharma and Warnex. He was President of the Pharmaceutical Marketing Club of
Quebec (PMCQ) in 1998 and executive member of BioQuébec in 2000. Mr. Chrétien holds an MBA
in Management of Bio Industries from the Université du Québec à Montréal and a B.Sc. in Sciences
of Physical Activities from the University of Laval.
Roland Boivin – CFO
From 1990 to 2008, Mr. Boivin held several management positions at 3M Canada, including Business
Manager - Consumer Division. In that role, he had overall financial responsibility for the Canadian
consumer market. His most recent role at 3M was General Manager - Quebec and he became a
member of the Company's Executive Committee. Mr. Boivin has since developed expertise in
Finance, Accounting, Corporate Governance and Continuous Disclosure with small and medium
size publicly listed companies. Until recently, Mr. Boivin was the Chief Financial Officer of Golden
Hope Mines Limited, a public company listed on TSX Venture. Mr. Boivin obtained his Bachelor of
Commerce from McGill University and his MBA from Queen's University.
Benoît Hébert – Vice President, Business Development & Licensing
Benoît Hébert has been the Vice-President, Business Development and Licensing of Pediapharm
since September 2009. Mr. Hébert has more than 15 years of industry experience and has a
rare-blend of scientific expertise and business skills. Focusing on pharmaceutical business
transactions since 2000, he worked at Axcan Pharma Inc. from July 2003 to November 2006. Mr.
Hébert has lead international licensing transactions, participated actively in product acquisitions,
managed international product development alliances and global supplier relationship. Mr. Hébert
holds an MBA in Management of Bio-industries from the Université du Québec à Montréal. Mr.
Hébert also received a M.Sc. in Immunology and a Ph.D. in Virology from the Institut
Armand-Frappier. Before returning to Canada in 2000, he was a NSERC postdoctoral fellow in
structural biology at Purdue University. He is past-president and a director of the Canadian
Healthcare Licensing Association (CHLA).
Private and Confidential – DO NOT DISTRIBUTE
10
Experienced Management Team
Richard Labelle – Vice President, Sales & Marketing
Richard Labelle has been the Vice-President, Sales and Marketing of Pediapharm since
February 2014. Mr. Labelle brings over 25 years of experience in Pharmaceutical and Consumer
Health industries. As a Specialty Pharmaceutical Executive he led various teams in Sales,
Marketing and in Business Development. Prior to joining Pediapharm he was VicePresident/General Manager of Sanofi Consumer Health and led during his mandate the
creation of the Consumer affiliate in Canada. Over the years he also successfully launched
Actonel, a flagship product for Osteoporosis, and re-accelerated growth of one of the largest
Cardiovascular franchises. Mr. Labelle obtained his Bachelor of Commerce from the Université
du Québec à Montréal and his MBA from McGill-HEC Montreal.
Elvira Villazon M.D. – Medical Director
Dr. Elvira Villazon has been Medical Director of Pediapharm since September 2009. Prior to
joining the corporation full time, she was working as a consultant on a needed basis. Dr. Villazon
brings 4 years of experience as a Director R &D at e-nate Canada; an integrated internet
solutions in health care (private clinics management); and 11 years as a Health Services
consultant for diplomatic members of ICAO based in Montreal. She is also a Certified
Researcher Fetal Cardiology at St-Justine hospital, a leading hospital for children in Canada;
where she worked as a clinical research associate for 6 years. Dr. Elvira Villazon is paediatrician
graduated from Faculty of Medicine, Nueva Granada University, Bogota, Colombia.
11
Private and Confidential – DO NOT DISTRIBUTE
Sales and Marketing Platform
VP Sales and Marketing
Richard Labelle
Director, Business Unit
OTC
Ashok Bhaseen
Director, Market Access
Jean-René PoirierConsultant
Manager, Quebec Sales
Nathalie Lafleur
Manager, Training
Claude DesfossésConsultant
Manager, Business Intelligence
Guylaine Poirier-Consultant
Manager, Ontario + West
Sales
Gus Pelaggi
Ontario / West Sales Reps
Toronto –E, W &C: 4
Québec Sales Reps
Montréal: 3
Montréal South Shore: 1
Québec: 1
16 Experienced
Sales
Professionals
Private and Confidential – DO NOT DISTRIBUTE
London-Windsor: 1
Ottawa, Hull & Gatineau: 1
Northern Ontario:1
Vancouver & Victoria: 1
Calgary & Edmonton: 1
12
Sales and Marketing Platform (cont.)
90% Coverage of Target Canadian Market
1,800
Pediatricians
2,500
General Practitioners with Pediatric Practice
360
Pediatric Dermatologists and Dermatologists (300)
Allergists (60)
2,500
Pharmacies
3,500
Third party pharmacies
13
Private and Confidential – DO NOT DISTRIBUTE
Current Value Creation Strategy
Significant and
underserved market
Pediatric Product
Opportunities
• Global
pediatric
Rx/OTC
universe
• Pipeline of new
pediatric
products
• No dedicated
pediatric
companies in
Canada
Products approved in
major markets
Secure High-Value
Products
• Unique access
to products
• Extensive
network and
relationships
• Robust
screening and
due diligence
• Licensing,
distribution,
commercial,
co-promote
agreements
National sales /
marketing platform
Launch and Drive
Sales
• Leverage
16-person
sales team
• 90% coverage
of target
audience
• Regulatory
support
• Distribution and
logistics
• Product
acquisition
Private and Confidential – DO NOT DISTRIBUTE
$$$
2018
• 35-40 M
revenues
• 35-40% EBITDA
margin
• 10 products on
the market +
Canadian
commercial
agreements
14
Value Proposition
 Seasoned and experienced Board and
Management team
 Integrated and proven sales/marketing
platform
 Extensive sales coverage
 Unique know-how in pediatrics
 Long-term and focused commitment to the
pediatric market
15
Private and Confidential – DO NOT DISTRIBUTE
Marketed Products: Commercial Agreements
Description
Rx oral antibiotic (Cefixime)
Rx Epinephrine autoinjector
Indication
Respiratory; Middle ear infections
Anaphylaxis
Partner
sanofi Canada
sanofi Canada
Launch
November 2007
December 2012
16
Private and Confidential – DO NOT DISTRIBUTE
Marketed Products-Pediapharm branded products
Description
Rx topical skin barrier emulsion
OTC pump spray (Dimeticone 100 cSt)
Indication
Dermatitis(Eczema)
Head lice
(Pediculosis)
Partner
PuraCap Pharmaceutical
Pohl-Boskamp
Launch
December 2009
December 2011
(+ Patented Lice Comb)
Private and Confidential – DO NOT DISTRIBUTE
17
Marketed Products-Pediapharm branded products
Description
OTC biogel cooling patch
OTC decongestant patch
Indication
Fever, Headaches
Cold, Allergies
Partner
APR Applied Pharma SA
APR Applied Pharma SA
Launch
4Q 2013
3Q 2013
18
(1): Based on the Corporation’s internal assessment of available information
Private and Confidential – DO NOT DISTRIBUTE
Forward Looking Statements
•
•
Certain statements contained in this presentation constitute forward-looking information and forwardlooking statements (collectively, "forward-looking statements") pursuant to the applicable Securities Laws.
All statements, other than statements of historical fact, contained in this presentation are forward-looking
statements, including, without limitation, statements regarding the future financial position, business
strategy, proposed acquisitions, budgets, projected costs and plans and objectives of or involving
Pediapharm. The use of any of the words "anticipate", "intend", "continue", "estimate", "expect", "may", "will",
"plan", "project", "should", "believe" and similar expressions are intended to identify forward-looking
statements. These forward-looking statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from those anticipated in such forwardlooking statements. Pediapharm believes the expectations reflected in those forward-looking statements
are reasonable but no assurance can be given that these expectations will prove to be correct and such
forwarding-looking statements speak only as of the date of this presentation.
Forward-looking statements are subject to risks, uncertainties and assumptions. Some of the risks which
could affect future results and could cause results to differ materially from those expected in the forwardlooking statements contained herein include, but are not limited to: the ability to access sufficient capital,
the impact of general economic conditions, regulatory requirements, competition from other industry
participants, and share price fluctuations. The information contained in this presentation identifies
additional factors that could affect the operating results and performance of Pediapharm. We urge you to
carefully consider those factors.
19
Private and Confidential – DO NOT DISTRIBUTE

similar documents