BioPharma Company Limited

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BioPharma Company Limited

• Sasin Graduate Institute of Business
  Administration
• of
• Chulalongkorn University

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PERIODONTAL DISEASETHE SILENT ENEMY
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BioPharma Company Limited

• Sasin Graduate Institute of Business
  Administration
• of
• Chulalongkorn University

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Our Mission
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• To provide a natural alternative to western
• medicine that is more affordable

YET with comparable efficacy
by continuously engaging in the research and
development of medical solutions derived from
herbs and other natural ingredients.
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Our Proposal

• Offer
• IRR 96
• NPV 261 million baht
• Payback period 3.5 years

• Ask
• 30.1 million baht

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Primary Product - Panicutin
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• Breakthrough ONLY all-natural periodontal
  medicine, FIRST Thai modern medicine

• 100 efficacy and no side effects based on
  clinical trials by Mahidol University

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Windows of Opportunity

• People aged 35 up 17 in 5 years 33 in 10
• Advances in medical care and lifestyle
• Greater health consciousness
• Government support export, RD of Thai herbs,
  health care subsidy program

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Target Market
2.3 M Target market in the launch year
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Benefit to Patients

• 100 effectiveness
• No side effects
• Faster results half the time of antibiotics
• Natural product
• Cost 1/15 times less

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Benefit to Dentists
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Benefit to Dentists

• Receive same professional fee as from antibiotics
  but more patients
• High medical efficacy
• Easy application

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Distribution

• Reputable distributor with nationwide coverage
  and experienced sales force
• Up to 60 mark-up on Panicutin wholesale price

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Promotion
Push
Pull

• Patients
• TV advertising
• Brochures, vouchers
• Print ads in magazines

• Dentists
• Relationship building regular visits, premium
  gifts, free samples, sponsored trips
• Medical conferences
• Ads in dental journals

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Number of Customers
2005
2006
2008
2007
2009
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Operations Schedule
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
2010
2009
2011
2012
2008
2003
2004
2005
2006
2007
Panicutin
Toothpaste
Mouthwash
Others
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Collaborators
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
Panicutin Value Chain
Strategic Alliance Pharmaceutical and Medical
Supplies Partnership Ltd. (PMSP)
Long Term Contract Suppliers in Prachinburi,
Chantaburi, Lampang
Long Term Contract Diethelm Co. Ltd.
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Future Expansion
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• Patent pending in 13 countries
• Export to Southeast Asia in 2006
• Joint venture in China in 2007
• License to US and Europe in 2008 and 2009

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Key Personnel
FINANCE
MARKETING
RD
OPERATIONS
Pleumchitt R. RD
Arisa K. CFO
Siremorn S. CMO
Nathasorn B. COO
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Key Personnel
Pleumchitt R. RD
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Projected Return
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Financial Highlights
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Financial Highlights
Million baht
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Sources Uses of Funds
Stage I Pre-launch stage
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
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Sources Uses of Funds
Stage I Pre-launch stage Stage II The launch of
Panicutin stage
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
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Sources Uses of Funds
Stage I Pre-launch stage Stage II The launch of
Panicutin stage Stage III The expansion stage
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
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Sources Uses of Funds
Stage I Before manufacturing

• Sources
• Fund from Business Angel 15M Baht
• Management team inventor 23M Baht
• Seek 21.5M Baht

• - Uses
• RD
• Manufacturing facilities

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Sources Uses of Funds
Stage II Panicutin Launch

• Sources
• Seek 8.6M Baht equity fund
• Cash inflows from operations
• Debt Financing

• - Uses
• RD
• Expansion Manufacturing facilities
• Marketing activities

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Sources Uses of Funds
Stage III Product lines extension

• - Uses
• RD
• Production facilities expansion
• Product lines extension
• International expansion

• Sources
• Cash inflows from operations
• Debt financing
• IPO

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ASK OFFER
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
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More smiles for you and everybody
Invest in BioPharma
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QA Session
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BioPharmas entity
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• BioPharma will be 100 owned by BioPharma
  Inventions Company Limited (BioPharma Inventions)

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Funds contribution
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• Inventor 13 M baht (17)
• Mr. Sukawat 15 M baht (25)
• Management team 10.027M baht (22)
• New investor 21.5M baht (36)

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Equity Structure

• Management team
• 300K
• Sukhawat A.
• 700K

2003

• Management team
• 300K
• Sukhawat A.
• 700K
• New investor
• 1.5M

2004
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New equity Structure
30.1M baht contribution
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Optional ASK OFFER
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Intellectual Property Protection
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• Patent submitted to Department of Intellectual
  Property, Ministry of commerce since November
  2001
• Patent covers
• Chemical formula of product
• Process and method of production
• Healing effectiveness of the product to
  periodontal disease

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FDA

• It is likely to receive approval because
  Andrographis Paniculata is one of the five Thai
  Herb to receive full support from Government (in
  the 6th Health National Plan) to conduct RD.
• BioPharma has other products in the pipeline.
• BioPharma will study the potential in Animal
  market.

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If a large pharmaceutical intends to buy.

• Can become our stakeholders
• Must consult with inventor
• BioPharma has competency in this medicine.

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Details on Clinical tests
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
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Andrographis Paniculata
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• Annual herb, 30-100 cm high
• Grow abundantly in Southeast Asia (China, India,
  Indonesia, Pakistan, and Thailand)
• Ubiquitous it grows in pine, evergreen and
  deciduous forest areas, and along roads and in
  villages and in all types of soil

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Andrographis Paniculata
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
Medical Disciplines Traditional Uses
Traditional ChineseMedicine (TCM) Fever, Laryngitis, Pharyngitis, Pneumonia, Respiratory infections, Tonsillitis
Traditional Indian Medicine Diabetes mellitus, Dysentery, Enteritis, Helminth infection, Herpes, Peptic Ulcer, Skin infections, Snakebites
Traditional ThaiMedicine Pyelitis, Tuberculosis
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Immunological Benefits
Product
Marketing
Operations
Management
Financials
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Conclusion

• Cancer
• HIV other viruses
• Common cold, fever inflammation
• Antibacterial / Antimalarial Filaricidal

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Supplies risks Reduction
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• RISKS
• Volatility of the supply of
• Andrographis Paniculata
• Gel, solvent, syringe
• Machine

• REDUCTION
• Contract AP supplier / backward integration
• RD by PMSP Company
• Machine Low price / latest technology by PMSP

?
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Emerging competitors risks Reduction
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
RISKS Emerging competitors with similar products

• REDUCTION
• Patent pending in 13 countries
• Trademark Business name registration in
  progress
• Focus heavier on RD to develop new and better
  products

?
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Retaliation risks Reduction
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion

• RISKS
• Retaliation by manufacturers or distributors of
  imported antibiotics e.g. price cut

• REDUCTION
• Engage in similar strategy while maintaining
  higher Economic Value to Customer

?
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Exit Strategy
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
BioPharma
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Treatment- Panicutin
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
Price per dose Dentist Fee Dosage Total Cost
Public Hospitals (140 100) x 24 5,760
Private Hospitals (170 300) x 24 11,280
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Treatment- Antibiotics
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
Price per dose Dentist Fee Dosage Total Cost
Public Hospitals (2,000 100) x 24 50,400
Private Hospitals (2,500 300) x 24 67,200
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Treatment- Surgery
Price per dose Dentist Fee Total Cost
Public Hospitals N/A 5,000
Private Hospitals N/A 30,000
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Treatment- Denture
Product
Marketing
Operations
Management
Financials
Ask Offer
Conclusion
Price per dose Dentist Fee Total Cost
Public Hospitals N/A 6,000
Private Hospitals N/A 20,000
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Financial Assumption

• All RD expenses includes in the financial
  statement however, revenues not included
• Market Penetration is calculated from a
  comparable product
• IPP valuation based on RD expenses related to
  getting these patents and amortized 20 years
  straight line
• PPE deprecation at 10 years straight line

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Alternative ASK OFFER

• Ask
• 27.6 M baht in 2003
• Offer
• 40 of equity
• 2 seats on Board of Directors

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Funds injection

• Year 2003
• Construction of factory 10M Baht
• RD
• Third clinical trial 2M Baht
• Other RD 5M Baht
• Mid 2004
• Production line 0.3M Baht
• Year 2005
• RD 6M Baht
• Marketing 2M Baht
• Production lines 1M Baht

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Worst case scenario
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Preferred investors

• Small number of investors
• Invest at least 5M Baht
• In case investment more than 10M Baht, offer 1
  seat on Board of Director
• Industry knowledge preferred

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Dentist per patients

• 6,200 Dentists registered in Thailand
• 5,800 In Bangkok major cities

Year 2005 2006 2007 2008 2009
Expected Patients 23,000 65,000 138,000 198,000 247,000
Dentist per Patients per Year 4 11 24 34 43
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Market Survey

• Sources
• The Fifth National Dental Survey 2544
• BioPharmas survey and personal interview with 50
  dentists

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Pricing
Wholesale price 106.25 Baht Distributor gets 60 of 63.75 Baht
Retail price 170 Baht Distributor gets 60 of 63.75 Baht
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Positioning Statement

• For periodontal patients who are at least 35
  years of age and have lower to middle income,
  living in Bangkok or major cities in Thailand,
  Panicutin is the brand of periodontal treatment
  medicine that offers best value for money because
  of its low cost and proven efficacy, and does not
  impose any side effects because it is made from
  natural ingredients.

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Penetration rate