CORPORATE PRESENTATION TSXV:VIV ALPHA NORTH CONFERENCE - JANUARY 18th-19th, 2019 - Avivagen
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CORPORATE PRESENTATION
TSXV:VIV
ALPHA NORTH CONFERENCE
JANUARY 18th-19th, 2019
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FORWARD LOOKING STATEMENTS
• This presentation includes certain forward-looking statements that are based upon current expectations of management, which involve risks and uncertainties
associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking, including those identified by the expressions “anticipate”, “become”, “believe’, “can”, “estimate”, “prospective”,
“further”, “targeting”, “would” and similar expressions.
• Statements about anticipated market activity in livestock, the potential outcome of current discussions with potential customers and regulators in various
jurisdictions; the outcome of regulatory processes currently underway; the implications of trial results to Avivagen’s business; Avivagen’s growth plans for livestock
and companion animal products; expectations with respect to the growth of the relationship with UNAHCO, increased orders form UNAHCO and the effects of the
UNAHCO relationship on Avivagen’s business in general; Avivagen’s plan to achieve sales goals for its companion animal products; illustrations of the global
opportunity for Avivagen; future applications; possible outcomes of milestones and discussions highlighted; future customer wins; path to sales an additional
customer adoption of Avivagen’s companion animal products; and Avivagen’s technology extended into human health applications are all forward-looking ststements.
• These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current
expectations. Such Avivagen risks and uncertainties include, but are not limited to, the following: the accuracy of third party information included in this
presentation; the perceived market opportunity and ongoing discussions with third parties and customers may not translate into orders for Avivagen’s products;
Avivagen’s growth strategy may not be as successful as Avivagen anticipates; UNAHCO could stop or fail to increase its orders of Avivagen’s products and Avivagen
may not realize the anticipated benefits from the UNAHCO relationship; Avivagen’s ability to continue as a going concern; the results of ongoing or future trials may
not be positive or sufficiently positive, third parties may not perceive Avivagen’s trial as positively as Avivagen does; even if the results are positive, there is no
guarantee that its products will be commercially successful or that requisite regulatory approvals will be obtained for new or existing applications; Avivagen may not
be successful with future customer wins or in securing additional customer adoption for its companion animal products; Avivagen may not be successful in expanding
its products to additional applications; milestones may not be achieved; unless specifically indicated otherwise, current discussions highlighted with various parties
are non-binding and may not lead to binding relationships that have the anticipated results and Avivagen’s technology may not be expanded into or may not receive
regulatory approvals for human applications.
• Accordingly, you should not place undue reliance on forward-looking statements.
• Please refer to the risk factors relating to Avivagen’s business as outlined by the latest Management’s Discussion and Analysis of Financial Condition and Results of
Operations and other securities filings available at www.SEDAR.com.
• Except as required by law, Avivagen Inc. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ
from those reflected in the forward-looking statements.
• This presentation contains information about the markets in which Avivagen operates which has been obtained from third parties, as indicated throughout. Although
Avivagen believes such information to be reasonable, Avivagen has not independently verified such information and does not represent as to its accuracy.
• THIS DOCUMENT DOES NOT CONSISTUTE AN OFFER TO SELL, AN INVITATION TO INDUCE AN OFFER, OR A SOLICITATION OF AN OFFER TO ACQUIRE THE SHARES OF THE
CORPORATION IN ANY JURISDICTION.
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WHY INVEST IN AVIVAGEN NOW
TRANSFORMATION OVER THE LAST 12 MONTHS
Transition from a Research & Development company to a Sales Driven
enterprise
Approved in numerous jurisdictions with multiple new approvals pending
Signed numerous distribution agreements throughout Asia, with many more
pending in other jurisdictions
Majority of current trials are “Confirmatory Trials” by large potential
customers
Halo Effect” of UNAHCO’s endorsement and growing use of OxC-beta™
attracting new and growing interest in Asia.
Potential new clients now “reaching out” to Avivagen
Avivagen’s Breakthrough Health Technology
➢ Our Technology: OxC-beta™
➢ Addressing multi-billion dollar health markets
➢ Proprietary, patented product with long patent protection
➢ Commercial sales ramp underway
Livestock (Feed additive)
OxC- Companion Animal (Supplement)
beta
Human (Nutraceuticals)
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CONTEXT: ANTIBIOTIC & ANTIMICROBIAL RESISTANCE – A GLOBAL PROBLEM
➢Antibiotics becoming less and less effective
➢70% of all antibiotics in North America used for growth promotion
➢Each year in the U.S. CDC estimates resistant bacteria cause:
➢2 million infections
➢23,000 deaths
➢8 million hospital days
➢Costs of $20 Billion
➢World Bank estimates drug-resistant infections have the potential to cause
a level of economic damage similar to—and likely worse than—that caused
by the 2008 financial crisis
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Governments Need an Antibiotic-Free Solution
➢1986: Sweden imposes first ban on farm use of antibiotic
growth promoters
➢ 2006: EU-wide ban on the use of antibiotics as growth
promoters in animal feed
➢2016: Chinese Ministry of Agriculture bans use of
antibiotic Colistin as feed additive for animals.
➢2017: FDA places outright ban on use of any antibiotics
considered “medically important” for animal weight gain
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Avivagen’s Solution
➢ AVIVAGEN offers a unique, validated technology enabling
discontinuation of the use of antibiotics for growth promotion and
disease prevention
➢ Does NOT contribute to the development of “superbugs”
➢ Innovative replacement to outdated technologies and generic antibiotic products
➢ Superior to new alternatives
➢ Proven modes of action (published in peer-reviewed scientific literature)
➢ Consistent efficacy, supported by 26+ animal trials
➢ Cost competitive relative to antibiotics and other alternatives
➢ Extensive IP Protection with patents into the late 2020s and mid 2030s
7Avivagen’s Validated Technology - Trial Results
LOCATION SPECIES TRIAL TYPE RESULTS & IMPLICATIONS
CHINA DAIRY FIELD STUDY Result: ↓bacteria and somatic cell levels and ↑ protein content of milk.
CATTLE (COMMERCIAL Implication: First trial to demonstrate effects in an adult ruminant, supports product application in high-value
SITE) dairy feed and highlights potential for use in beef cattle.
CHINA PIGS FIELD STUDY Result: Improved the health and productivity of sows and nursing piglets.
(GESTATING- (COMMERCIAL Implication: Supports the use of OxC-beta in sow feed, a new product application.
LACTATING SITE)
SOWS)
PLILIPPINES PIGS FIELD STUDY Result: Improved gut health and ↓ E. coli level in young (starter) piglets.
(STARTERS) (RESEARCH Implication: Scientifically valid data linking product mode of action (improved gut health and immune priming) to
FARM) benefits on growth performance. Key for product marketing to sophisticated producers.
PHILIPPINES PIGS FIELD STUDY Result: Improved gut health and ↓ E. coli level in starter and grower pigs.
(STARTER- (RESEARCH Implication: Scientifically valid data linking product mode of action (improved gut health) to benefits on growth
GROWER) FARM) performance over the starter and grower periods. Key for product marketing to sophisticated producers.
CANADA MICE R & D STUDY Result: Reduced level of several inflammatory mediators in the blood.
(MODE OF Implication: Adds to the body of scientific evidence supporting product ability to reduce/limit inflammation. This
ACTION) information contributes significantly to future product application and development plans.
8Gaining Regulatory Approvals
OxC-beta for LIVESTOCK™
APPROVED IN PROGRESS
Philippines China
Taiwan United States
Thailand (recently renewed) South Korea
New Zealand Vietnam
Mexico
Brazil
Russia
Malaysia
2019: Gain Approvals Sign Distribution Agreements Growing SalesGLOBAL FEED MARKET > 1 BILLION TONNES/YEAR
COUNTRY ANNUAL FEED CONSUMPTION (TONNES)
(Current Target Markets)
CHINA 200MM
U.S.A. 200MM
PHILIPPINES 17MM
THAILAND 20MM
SOUTH KOREA 19MM
VIETNAM 19MM
CANADA 21MM
TAIWAN 7MM
MEXICO 35MM
TOTAL TONNES 538MM
Our initial target markets represent 50%+ of the global market
10SALES GROWTH: LIVESTOCK FEED
➢UNAHCO:
➢Initial order of 175 kg, expanded to 400 kg/month
➢Purchased largest order of 2 tonnes in June 2018
➢Repeated in September 2018
➢Current sales at 1 tonne/month
➢EXPANDED ASIAN PRESENCE:
➢Hired sales and regulatory consultant in Thailand with strong working
relationship with BIS Group of Companies, one of Thailand's top animal feed
suppliers operating throughout South East Asia.
➢Through one of its distributors, BIS recently completed a trial at one of its
customers pig farms using OxC-beta™ for Livestock, with positive results.
11SALES GROWTH: LIVESTOCK FEED (CON’T)
➢THAILAND
➢Signed first Thailand distribution agreement with FAITH (Feed and Ingredients
Technology Hub), a non-exclusive agreement including Thailand, Myanmar,
Cambodia, Laos, Malaysia, and Indonesia
➢Announced first commercial order for OxC-beta™ Livestock in Thailand,
specifically for the use in sow feeds, in September, 2018
➢MALAYSIA
➢Signed distribution agreement in Malaysia with TLC Veterinary Services,
principal supplier to farms supplying KFC, the leading fast food chain in Malaysia
with over 600 restaurants
12OxC-beta for Companion Animals
COMPANION ANIMAL
➢ ENDORSEMENT AGREEMENT
➢ Cesar Millan, world-renowned dog behaviorist, for Promotion of Vivamune™ Health Chews for
companion animals
➢ Amazon Prime (US) Avivagen’s supply chain partner
➢ U.S. DISTRIBUTION AGREEMENT
➢Entered into two year distribution agreement with PACC Pets.
➢Non- exclusive, U.S. agreement excluding state of Florida
➢PACC Pets a global distributor
➢ASIA:
➢First sale of Vivamune™ Health Chews in Taiwan in April 2018
➢First sale of Vivamune™ Health Chews into the Chinese market - June 2018, through
arrangement with Pawllion Inc.
14Gaining Regulatory Approvals
COMPANION ANIMAL
APPROVED
Canada
United States
Thailand
Taiwan
IN PROGRESS
Philippines
South Korea
Vietnam
Mexico
Brazil
Russia
New Zealand
ChinaCOMPETITIVE LANDSCAPE
PRODUCT COMPOSITION CHARACTERISTICS
PROBIOTICS Microorganisms, usually bacteria that reside in the gut. Effectiveness for growth promotion is not well established.
PREBIOTICS Compounds included in feeds the favor colonization of the Effectiveness for growth promotion is not well established.
gut by probiotic bacteria
ESSENTIAL Effectiveness for growth promotion is not well established. Results on growth promoting activity are varied some studies are
OILS positive others are negative. No clear link between mode of
action and growth effect. Identity of the active ingredient is
often unknown. May adversely affect the smell and taste of feed.
ORGANIC Carboxylic acids such as formic acid and propionic acid. Old technology.
ACIDS They are most often produced synthetically
ZINC OXIDE Zinc is and essential mineral for human and animal Harmful for the environment - bans being enacted in several
nutrition. Used at ↑ doses (3000 ppm) to prevent diarrhea countries. Can also be detrimental to “good” bacteria in the gut.
in young piglets
OXC-BETA Composed of carotenoid oxygen copolymers. Newly Active components well defined. Effectiveness for growth
discovered compounds that occur naturally promotion well-established. Demonstrated link between mode
of action and growth effects. New technology.
16Recent Accomplishments
➢COMPANY AT INFLECTION POINT
➢Approval in Canada for companion animals
➢Received GRAS approval for OxC-beta™ in New Zealand
➢Successful OxC-beta™ trials in dairy cattle and gestating–lactating sows
➢Signed a distribution agreement for OxC-beta™ Livestock in Thailand with
FAITH (Feed and Ingredients Technology Hub)
➢Received its first order for OxC-beta™ Livestock in Thailand
➢Signed first distribution agreement for OxC-beta™ Livestock in Malaysia
➢Growing sales in the Philippines
17UPCOMING MILESTONES
➢New markets to open up via regulatory approvals
➢US
➢Brazil
➢South Korea
➢Mexico
➢Malaysia
➢Potential agreement for OxC-beta™ Livestock in the US
➢In discussions with firms which, upon U.S. GRAS approval, would spearhead and expedite sales
growth in U.S.
➢Potential partnership for companion animals
➢In discussions with well established branded products company
➢Potential Agreement with human supplement/nutraceutical company
➢In discussions with management team with vast experience in the sector
18AN EXPERIENCED BOARD
Paul Mesburis, Independent Audit
Kym Anthony, Chair & Interim CEO
Committee Chair
Capital Markets, Agriculture, Life Sciences
Capital Markets & Life Sciences
Past Chair of Prometic Life Sci & IDA
(Chair of the Audit & Risk Committee
of ProMetic Life Sciences)
Jeffrey Kraws, Independent
Life Sciences & Capital Markets
Former top ranked analyst for pharmaceutical Dr. Graham Burton, Management
stocks Scientific Co-Founder, NRC Chemist
CEO & Co-Founder of Crystal Research
Aubrey Dan, Independent
Canadian businessman, philanthropist and Tony- David Hankinson, Independent
Award® winning producer
Former Pharma CEO
(MEMPHIS) as well as the Principal of the Dancap
Family Investment Office (dancap.ca) (Solvay Pharma Inc.)
19SCIENCE IS IN OUR NATURE
www.avivagen.com
Contact:
Kym Anthony
Chairman and Interim CEO
k.anthony@avivagen.com
THANK YOU
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