Investment Conference - 22nd Annual Global 15 September 2020 - Applied DNA Sciences
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Safe Harbor The statements made by Applied DNA in this presentation may be “forward-looking” in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe Applied DNA’s future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. Actual results could differ materially from those projected due to the possibility of a failure to make timely payment on its outstanding secured convertible notes and resulting enforcement by noteholders of remedies on collateral which includes substantially all of Applied DNA’s assets, its history of net losses, limited financial resources, limited market acceptance, the uncertainties inherent in research and development, future clinical data and analysis, including whether any of Applied DNA’s or its partners diagnostic or therapeutic candidates will advance further in the preclinical research or clinical trial process, including receiving clearance from the U.S. Food and Drug Administration or equivalent foreign regulatory agencies to conduct clinical trials and whether and when, if at all, they will receive final approval from the U.S. FDA or equivalent foreign regulatory agencies, the unknown outcome of any applications to U.S. FDA or equivalent foreign regulatory agencies, the unknown limited duration of any Emergency Use Authorization (EUA) approval from U.S. FDA, the unknown ability to manufacture the vaccine candidates in large quantities, the fact that the safety and efficacy of the vaccine candidates has not yet been established, the unknown ability of the vaccine candidates to generate revenue or profit for Applied DNA, the fact that there has never been a commercial drug product utilizing PCR-produced DNA technology approved for therapeutic use, disruptions in the supply of raw material and supplies, and various other factors detailed from time to time in Applied DNA’s SEC reports and filings, including our Annual Report on Form 10-K filed on December 12, 2019 and other reports filed by the Company with the Securities and Exchange Commission, which are available at www.sec.gov. Forward-looking statements include all statements which are not historical facts, and can generally be identified by terms such as anticipates, believes, could, estimates, intends, may, plans, projects, should, will, would, or the negative of those terms and similar expressions. Applied DNA undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law. 2
Investment Highlights Disruptive Nucleic Acid Manufacturing Platform Nascent Biopharma Opportunity LinearDNA™ a scaled linear DNA Broad Applicability: RNA/DNA, CAR-T, vaccine, and gene therapies manufacturing platform Inherent Advantages Amplified by Pandemic vs. Plasmid-based DNA Production COVID-19 programs – detect and protect against coronavirus 3
Corporate Structure Applied DNA – Linear DNA Manufacturing Platform Industrial DNA LineaRx Applied DNA for supply chain nucleic acid-based Clinical Labs integrity, brand Rx & Dx utilizing molecular testing protection linear DNA laboratory Active CMO/CRO business Commercial development of supplying bulk GLP DNA diagnostic tests in virology, products; opportunity for oncology; COVID-19 TaaS cGMP validation 4
LinearDNA™ Manufacturing Platform Large-scale PCR-based DNA Production for Rx and Dx Therapeutic Applications of Linear DNA: • Proprietary process enables large, gram-scale production of DNA through PCR (polymerase chain reaction) • Does not require recombination, hence, no need for virus • No need for plasmids, reducing risks and unwanted DNA or contaminants that need to be removed As a Substitute for DNA Production: 5
LineaRx • Cancer Vaccine, in partnership with Takis/Evvivax SRL • Multiple revenue- generating • Anti-CD19b CAR T Development Customers Adoptive Cell Therapy • COVID-19 Vaccine Candidates 6
Development Pipeline (inclusive of COVID-19) Preclincal Clinical Discovery IND-enabling Phase 1 Phase 2 Phase 3 Comments Canine Anti-Cancer Vaccine Yielded strong antibody and T cell (with Takis Biotech) responses even at low doses of linear Vaccine and Therapeutics DNA in mice • All five LineaDNA vaccine candidates Linear DNA COVID-19 Vaccine Candidates provoked seroconversion in all mice (with Takis Biotech) to produce IgG against SARS-CoV-2 Spike protein by Day 14 and significantly enhanced responses by Anti-CD19b Day 38. CAR T adoptive cell therapy Application of one LinearDNA vaccine candidate to domestic cats Feline Vaccine against Coronavirus utilizing • Safety and tolerability study for 30 human Linear DNA COVID-19 Vaccine enrollees dosed at 1mg/month for 3 Candidates consecutive months • Primary endpoint in month 4 is evidence of antibody and t-cell response
COVID-19 - Diagnostic Assay Linea™ COVID-19 Diagnostic Assay Kit – enabling accurate and rapid high-volume testing Launched rRT-PCR Molecular Diagnostic Assay • PCR-based tests remain the gold standard • Validated at a NYS University Hospital, EUA approved • 95% sensitivity, 100% specificity, LoD less than 1 copy/µL Purpose-designed for High Throughput Clinical Laboratories • Advanced single well multiplex assay, useful for all PCR labs via ”Lab Developed Tests” • Allows for simple set up and higher-throughput on 96-well systems common to PCR laboratories • Validated on Applied BioSystems’ QuantStudio Dx and QuantStudio 5 Real-Time PCR Systems Fast turnaround times with majority of results available within 3 hours Manufacturing Assay Kits for Distribution • In-house kit production: 100, 500, or 1,000 reactions (tests) per kit; current production capacity of 10s of thousands per day with ability to ramp • Specimen collection via NP and ANS; Saliva being used in Surveillance Testing, self collected Upcoming Catalysts • Closing in on first commercial contract with regional medical center • Partnerships with COVID-19 therapy developers for use as a companion diagnostic • Further amendments to EUA to expand addressable markets 8
COVID-19 – Applied DNA Clinical Lab Testing-as-a-Service Capturing More of the Economies of Testing Surveillance Testing • Regional/ schools and businesses • Strategic collaborations driving testing opportunities Fast Turnaround Time • Robotic automation supports increased testing speed and throughput Expanding Testing Capacity • Current at several thousand tests per day with capacity to expand as needed Upcoming Catalysts • Pursuing ‘Return to Work’ partnership to drive testing demand • Progressing CAPCLIA certification from New York State Dept. of Health Linea™ Collection Sampling Clinical Lab Results in 24 COVID-19 (NP, OP, ANS, and soon Saliva) Test Hours Assay 9
Capital Markets Shares Outstanding¹: 5,142,779 Warrants2 (APPDW; $5.25 ~1,000,000 APDN exercise): Cash Balance3: $10,924,968 Debt Balance3: $1,492,292 NASDAQ Listed Year-end: September 30 Index: Russell Microcap 1 At July 31, 2020 2 At August 6, 2020 3 At June 30, 2020 10
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