Investor Presentation - JUNE 2021 - TSX : CTX - Crescita Therapeutics Inc.
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JUNE 2021 Investor Presentation TSX : CTX
Forward-Looking Statements
Certain information contained in these materials and to be discussed during this presentation constitute forward-looking information
within the meaning of applicable securities laws, including, among others, statements concerning Crescita Therapeutics Inc.’s
(“Crescita” or the “Company”) objectives and strategies to achieve those objectives, sales of the Company’s products, the Company’s
product candidates and the timeline for their development and commercialization, the Company’s future financial condition and
performance, potential acquisition and licensing transactions, as well as other statements with respect to management’s beliefs, plans,
estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or
expectations that are not historical facts.
Such forward-looking information reflect management’s current beliefs as of the date hereof and are based on information currently
available to management. Although the forward-looking information contained in these materials and to be discussed during this
presentation is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will
be consistent with these forward-looking statements.
Forward-looking information is based on the Company’s estimates and assumptions, and is subject to risks and uncertainties, that could
cause actual results to differ materially from such forward-looking information, including those described in the Company’s annual
information form, management discussion and analysis and other documents filed with Canadian securities regulators, copies of which
are available under the Company’s profile at www.sedar.com.
Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking
information, whether as a result of new information, future events or otherwise.
2
Non-IFRS Measures
The Company reports its financial results in accordance with IFRS. However, we use certain non-IFRS financial measures
to assess our Company's performance. We believe these to be useful to management, investors and other financial
stakeholders in assessing Crescita's performance from both a financial and operational standpoint. The non-IFRS
measures used in this presentation do not have any standardized meaning prescribed by IFRS and are therefore not
comparable to similar measures presented by other issuers. These measures should be considered as supplemental in
nature and not as a substitute for the related financial information prepared in accordance with IFRS found in our
continuous disclosure documents.
Adjusted EBITDA is a non-IFRS measure. This term is defined as earnings (loss) before interest, income taxes (recovery),
depreciation and amortization, equity-settled stock-based compensation, goodwill and intangible assets impairment, and
foreign currency (gains) and losses. Management believes that Adjusted EBITDA is an important measure of operating
performance and cash flow and provides useful information to investors as it highlights trends in the underlying business
that may not otherwise be apparent when relying solely on IFRS measures.
3
WHO WE ARE
Crescita at a Glance
Unique Stock Symbol Market Cap1 $15.3M
Commercial TSX: Fully Diluted Shares
Outstanding2 24.9M
Dermatology
Company CTX Employees ~70
Serving Rx
and Non-Rx 2020 Annual Revenue Cash Balance3
Markets
$15.6M $13.9M
1 As of June 21, 2021. 2 As of December 31, 2020. 3 As at March 31, 2021.
4
WHY INVEST
A Repositioned Company with Clear Strategies
to Deliver Profitable Growth
Strengthened Diversified Clear Strategic Multiple Growth
Balance Sheet Asset Portfolio Priorities Catalysts
Path to
$13.9M Cash* Serving Leveraging
Sustainable
Growing Strong Balance
Low Debt Markets Sheet & Profitable
Portfolio Growth
As at March 31, 2021
5
T H E C R E S C I TA S T O R Y
A Repositioned Company with Clear Strategies
to Deliver Profitable Growth
1 2 3
A C o mp elling A Clear
Repositioned G row th Path
Strategies, Fo r ward
Crescita Multiple D rivers
6
T H E R E P O S I T I O N I N G O F C R E S C I TA
A Transformed Business Poised for Profitable Growth
2021+
Executing
2018-20 on growth
2016-17 Repositioned
for profitability • Clear strategic
Redefined priorities
our path • Secured $3.5M LOC*+ • Leveraging cash
Repaid long-term debt position and asset
• New leadership team,
• Achieved 1st year of portfolio to accelerate
vision and strategy
profitability in 2018 growth
• Acquired key assets
to strengthen portfolio • Managed through
and infrastructure pandemic
* LOC: Line of Credit
7
W H AT W E D O – C R E S C I TA T O D AY
Unique Commercial Dermatology Company
Non-Rx Market Rx Market
4 Skincare Plant & CDMO* Commercial RX Product
Brands Services Product Pipeline
Two Patented Drug Delivery Technologies
*Contract Development and Manufacturing Organization
Note: Crescita has three reportable segments: Commercial Skincare, Licensing & Royalties, and Manufacturing & Services
8
WHY WE WIN
Consumer Macro Trends Favor Crescita’s Rx & Non-Rx Portfolios
Skincare Growth 50+ Consumer
Millennials in minimally
Spending Up Desire for more
aging into invasive
Shift in spending youthful
category procedures
from cosmetics appearance
9
WHY WE WIN
Growing International Footprint Through Strong Partnerships
Headquarters
Qc, Canada
Strong ITALY
FRANCE
CHINA
USA
Partnerships SPAIN
PORTUGAL AUSTRIA
10WHY WE WIN
Seasoned Management Team with Extensive Experience
Across Cosmetic/Pharma Industry, Operational Excellence, Innovation and Strategic Growth
Serge Verreault Jose DaRocha Wade Hull Isabelle Villeneuve Alain Dugal Ivonne Medina
President & CEO Chief Financial VP R & D VP Strategy Quality VP Manufacturing VP Business
Officer & Innovation & Logistics Development
+30 years +20 years
in pharma and +25 years in medical device +30 years +25 years +15 years
medical industry in cosmetics & pharmaceutical in innovation, market in operations in business
& pharma development intelligence & development, licensing
formulations & strategic partnerships
11FINANCIALS
Strong Performance Record, Diversified Revenue Streams
Revenue Adjusted EBITDA
In millions of CAD In millions of CAD $7
35% $3
CAGR
$22 $2
$17 $16 ($4)
$12
$4
($13)
2016* 2017 2018 2019 2020 2016* 2017 2018 2019 2020
2020 Revenue Key Profitability Drivers
by Segment Commercial
46% 43% Skincare ✓ High margin licensing revenue
Licensing ✓ Operational excellence
& Royalties ✓ Expense management
11%
✓ Manufacturing utilization
Manufacturing & Services & volume increases
12 *Fiscal 2016 reflects 10 months of operations and 4 months of results from INTEGA Skin Sciences Inc. due to the timing of the acquisition.FINANCIALS
Solid Balance Sheet Management, Firepower to Fund Growth
Reduced Debt by >40% Doubled Cash Position
Paid down $3.6M
LT debt with
Knight Therapeutics Inc.
Renewed lease for manufacturing
$13.9M
$6.0M and office facility in Q1-21.
Invest in growth via M&A
>40% >2x
$3.3M* $7.0M Invest in organic growth
(R&D, Sales & Marketing, partnering)
Opportunistic share buyback
2017 Q1-21 2017 Q1-21
Total Liquidity of up to $17.4M** to Fund Growth
*Total debt obligations represent the sum of the long and short-term portions of long-term debt, convertible debentures, lease and other obligations.
**Total liquidity includes $13.9M in cash and cash equivalents (at March 31, 2021) and a $3.5M credit facility, subject to margin requirements.
13T H E C R E S C I TA S T O R Y
A Repositioned Company with Clear Strategies
to Deliver Profitable Growth
1 2 3
A Rep o sitio ned Compelling A Clear
C rescita Grow th Path
Strategies, Fo r ward
Multiple
Drivers
14Compelling Growth Strategies to Unlock Crescita’s Full Potential
1 2 3 4
Expand Pliaglis Grow Medical Leverage Cash Capitalize on
in ROW Aesthetics Business to Pursue Upside Potential
in Canada Strategic M&A
Strong Foundation
Trusted Partner • Operational Excellence • Track Record of Execution • Experienced Leadership
15S T R AT E G Y # 1 EXPAND PLIAGLIS IN ROW
A Highly Differentiated Rx Topical Anesthetic Responding
to a Range of Growing Procedures
Compelling Value Proposition
✓ Better efficacy
✓ Ease of use
Only FDA-approved, ✓ Uses Crescita’s Peel technology
APPLY anesthetic cream with
✓ Patent protected (Enhanced formulations through 2031)
the HIGHEST
– PAUSE – CONCENTRATION
Used Across Several High-Demand
Superficial Dermatological Procedures
of Tetracaine and
PEEL Lidocaine 7% / 7% ✓ Laser-assisted tattoo removal
✓ Non-ablative laser facial resurfacing
✓ Dermal filler injections
✓ Pulsed-dye laser therapy
16S T R AT E G Y # 1 EXPAND PLIAGLIS IN ROW
Profitable Pliaglis Licensing Model
Our track record
*
Accelerated Returns Accretive Multi-EU
in the U.S. with Taro Country Deal with
Pharmaceuticals Cantabria Labs
Double
$12.6M Royalties Digit Royalties & Sales Milestones
s
2018 to 2020 Royalty 2020+ revenue
%
$6.3M Milestones Net cash impact of $2.7M
Launched in 2018 from up-front payments in 2019
$2.7M Upfront Payment
Deal signed in 2017 *France and Portugal have yet to be launched
17S T R AT E G Y # 1 EXPAND PLIAGLIS IN ROW
Significant Potential to Further Monetize Pliaglis in ROW
8 5
Licensed Anticipated Untapped
Countries Launches Market Potential
3
2021 / 22
18 ROW
Countries with
Commercial Sales • Austria
• France countries where Pliaglis is approved
• Mexico and available for licensing
USA – ITALY – SPAIN
• Portugal
Royalty streams typically begin 2023+ + More
countries with approval potential
12 to 18 months after deal is signed • China
Upfront payments • Milestones • Royalties
18S T RSATTREAT
G YE G#Y2 :# G2R O W GMREODWI CM
A ELDAI CEASLT EA TE H
S TI C
ETSHBI CUSS IBNUESSI NSE S S I N C A N A D A
Expanding in an Attractive, Booming Market
Global Medical Aesthetics Market1 Hyaluronic Acid Dermal Fillers
(By 2025)
~11% Expected to reach Expected to reach
US$1.9B US$190M
CAGR
by 20251 +11.3%
by 20252
$22.2B
• Increasing adoption of minimally invasive Cosmetic procedures performed in the U.S
& non-invasive aesthetic procedures 15M each year, 89% were non-surgical3
• Increasing awareness due to social media
• Cosmetic procedures no longer taboo
1 August 2020 Decision Resources Group Aesthetics Injectables Botulinum Toxin Reports- 2021. 2 Canadian industry numbers and trends
typically run parallel to those of the U.S., but at a tenth of the scale. 3 Jack, M. MD, Pozner, J. MD, Plastic and Reconstructive Surgery Journal,
19 Putting it All Together: Recommendations for Pain Management in Nonsurgical Facial Rejuvenation, https://pubmed.ncbi.nlm.nih.gov/S T R AT E G Y # 2 GROW MEDICAL AESTETHICS BUSINESS IN CANADA
Two Innovative and On-Trend Product Launches
Address Increasing Popularity of Aesthetic Procedures
1H 2021 Launch H1 2022 Launch
Gold Standard in Haute Sculpture
Bio-Revitalization Dermal Fillers
Uses: Topical skin quality Uses: Restore volume, contours,
& replenishing protocol temporarily eliminate wrinkles
• Unique formula with and volumizes lips
Hyaluronic Acid (HA) and • Exclusive collection of
50+ key ingredients five HA-based fillers
• >4M bottles sold in ART-FILLER® • Widely used in >60 markets
NCTF® Boost 135 HA >60 countries in 2020 Injectables
New Cellular Treatment Factor
• 10 years of clinical efficacy
and safety data
First and Exclusive Distributor in Canada
20S T R AT E G Y # 2 GROW MEDICAL AESTETHICS BUSINESS IN CANADA
Clear Go-to-Market Strategies to Accelerate Product Launches
Leverage established, integrated commercial Canadian
1 infrastructure (activate in-clinic trials, grow existing accounts)
Offer differentiated products in the Canadian medical aesthetic
2 market with the successful launch of NCTF & ART-FILLER
Increase # of medical accounts and engage directly with
3 consumers to boost treatment requests
21S T R AT E G Y # 3 L EV ER AGE C AS H TO PURS UE M & A
Actively Targeting a Strategic Acquisition to Accelerate Profitable Growth
Focused on Rx & Non-Rx Opportunities
Financial Criteria
✓ Topline of $5-25M CAD
✓ Accretive to EBITDA
~$14M ✓ Synergistic
Cash Strategic Business Fit
✓ Aesthetic or medical aesthetic field
✓ Growing and on-trend brands
✓ Adds strategic capabilities
✓ Prescription dermatology
22S T R AT E G Y # 4 C A P I TA L I Z E O N U P S I D E P OT E N T I A L
Other Growth Plays Provide Additional Upside Potential
E-Commerce Manufacturing & Services Rx Pipeline
+48% 75% • CTX-101 (PH3)
• Reach Awareness – indicated for plaque psoriasis
Conversion 2017-2019 unutilized
CAGR* capacity • CTX-102 (PH2)
• Direct-to-consumers digital – undisclosed indication
marketing campaign • Grow customer base
• Increase unused capacity without • Joint venture with 2 U.S.
• Strengthen partnership increasing costs partners. CTX % of revenues
with aestheticians
• Improved plant efficiency • Licensing discussions in progress
Build B2C revenue stream Add volume to grow profits Potential recurring licensing
revenue
23 *CAGR was calculated using 2019 results to exclude the impact of COVID-19 on our Manufacturing & Services segment.T H E C R E S C I TA S T O R Y
A Repositioned Company with Clear Strategies
to Deliver Profitable Growth
1 2 3
A Rep o sitio ned C o mp elling A
C rescita G row th Clear
Strategies, Path
Multiple D rivers
Forw ard
24T H E C R E S C I TA S T O R Y
Key Milestones to Track our Progress through 2022
Pliaglis ROW launches
(Austria, France, Portugal, Mexico)
Sign profitable Pliaglis licensing deals in ROW
Successfully launch NCTF® and ART-FILLER®
Disciplined evaluation of M&A targets
Grow Canadian Dermo-Cosmetic sales
Grow CDMO business
25WHY INVEST
A Repositioned Company with Clear Strategies
to Deliver Profitable Growth
Strengthened Diversified Clear Strategic Multiple Growth
Balance Sheet Asset Portfolio Priorities Catalysts
Path to
$13.9M Cash* Serving Leveraging
Sustainable
Growing Strong Balance
Low Debt Markets Sheet & Profitable
Portfolio Growth
As at March 31, 2021
26TSX : CTX
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