innovotech agm presentation april 19 2011

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© Innovotech, 2011 Annual General Meeting 19 April 2011 Edmonton, Alberta Innovotech Inc.

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Page 1: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Annual General Meeting

19 April 2011Edmonton, Alberta

Innovotech Inc.

Page 2: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Innovotech Inc

A G E N D A Welcome Formal Administrative Business Adjournment of AGM Business Update Q&A

Page 3: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Page 4: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

www.innovotech.ca

Innovotech Inc.

Pursuing the Greatest Opportunity

in Microbiology Since Penicillin

Annual General Meeting 19 April 2011

Page 5: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Forward Looking StatementsThis presentation contains forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Forward-looking statements may include words such as “expects”, “plans”, “will”, “believes”, “estimates”, “intends”, “may”, and other words of similar meaning and may relate to future financial performance, business strategies, or safety and efficacy of unapproved products.

Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small number of customers including government organizations; the demand for new products and the impact of competitive products, service and pricing; availability and cost of raw materials; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defence; the Company’s exposure to lawsuits and other matters beyond the control of management.

Page 6: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Detachment and reversion to planktonic growth

Opportunity Planktonic (free-floating)

Much knowledge All regulatory standards, disinfectants,

diagnostics and antibiotics 20% of the problem

Biofilm (community of organisms)Little knowledge

Few products 80% of the problem

FACT: 17 million patients (US) suffer from biofilm infectionsOf those patients, 550,000 die Cost to healthcare = $94 billion

Page 7: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Opportunity

New hospital superbugs proving resistant to antibiotics

A new hospital superbug resistant to antibiotics has been brought into the country by patients returning home after surgery abroad. 13 Aug 2009

Health Authorities Link 12 Deaths to Contaminated Meat

Twelve deaths in Canada have now been linked to listeriosis, according to federal health officials who said Monday the deaths are among 26 confirmed cases of an outbreak across the country stemming from contaminated meat.Monday, Aug. 25, 2008

Florida Orange Acres Fall as Farmers Cut Sick TreesOrange-crop acreage in Florida, the world's second-biggest producer, fell to a 24-year low as growers removed trees to slow the spread of disease affecting citrus crops, the U.S Department of Agriculture said.Thursday, September 23, 2010

Page 8: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Market Opportunity

One Platform Technology …

… Many Product Opportunities

Market PotentialCrop protection ($13B)

Antibiotics ($30B)

Medical Device Coat-ings ($5B)

Susceptibility Tests ($6B)

Food Safety Disin-fectant ($2B)

Other ($50B) eg. Pulp & Paper, Min-ing

Page 9: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Product Pipeline

Research &

Development

Regulatory

Market Introduction

AgreGuard™ is a Silver technology for coating catheters; Sani Lux™ is a hard surface disinfectant

Phase of Development

bioFILM PA™Agress®Sani-Lux™Gram +/-ve testAgreGuard™

One Platform Technology – Many Product Opportunities

Product

$2B $6B total*$13B$5B*

Market Potential

Vet

Page 10: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Path to Market - Healthcare

bioFILM PA™

•Sick Kids trial•U of Alberta CF clinic - Clinical & health economic evaluation

Product - bioFILM PA™ (Susceptibility test)

•LevPharm – Israel•Veterinary partner

•Health Canada Approval•Israel Reimbursement

•Veterinary – world•Israel•Human testing service•Alberta Health Service

•Worldwide partner?

Market Leaders Becton Dickinson BioMérieux Siemens Trek

Proof of Concept

Partner

Regulatory

Proof of Sales

Sales

Page 11: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Path to Market - AgricultureProduct – Agress® (Crop Protection)

Seed Treatment Field Trials:•Efficacy, costing•Pulse, horticulture, potato

Syngenta:•Worldwide, US, Canada•Include in all products•Extends patent protection

Agress®

•EPA – pre-submission consult (Feb 2011)•TSG - managed more silver product registrations with EPA than any other consultant

Market Leaders Syngenta Monsanto Bayer Dow DuPont BASF

* Potential discontinuation of imported streptomycin-treated seed to enter Canada from the U.S. as early as 2012

Proof of Concept

Partner

Regulatory

Proof of Sales

Page 12: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Agress® - Bean Blight Seed Treatment

Agress® Untreated Untreated

Naturally infested bean seed Untreated

Agress®

Page 13: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Financial Highlights

Revenue for 2010 – $1.6M*R&D expenditures - $764,000*Net burn rate - $80,000/month*Cash - $767,000*

$4.5M raised since inception = 3 late stage productsShares outstanding – 24M*

Approx. 25% held by insidersOptions = 850,400, Warrants = 0*

Patents – 8 excl. license (UofCalgary), 15 IOT

* As of December 31, 2010

Page 14: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Milestones

2011 2012 2013 2014 2015

-5

0

5

10

15

20

25

30

35

Contract ResearchbioFILM AgressEBITDA

EPA Application(Pulse, Horticulture, Potatoes)

- PMRA Application (Pulse)

- EPA Approval (Pulse, Horticulture, Potatoes)

- EPA Application (Foliar)

- EU Application (Pulse & Other)

- Sick Kids trial complete

- Hlth Canada approval for Gram +/-ve test

- Marketing partner

FDA approval for Gram +/-ve test; initiate trial

EU Approval Gram +/-ve test

Revenue (000,000)

Page 15: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Summary

New hospital superbugs proving resistant to antibiotics

A new hospital superbug resistant to antibiotics has been brought into the country by patients returning home after surgery abroad. 13 Aug 2009

Health Authorities Link 12 Deaths to Contaminated Meat

Twelve deaths in Canada have now been linked to listeriosis, according to federal health officials who said Monday the deaths are among 26 confirmed cases of an outbreak across the country stemming from contaminated meat.Monday, Aug. 25, 2008

Florida Orange Acres Fall as Farmers Cut Sick TreesOrange-crop acreage in Florida, the world's second-biggest producer, fell to a 24-year low as growers removed trees to slow the spread of disease affecting citrus crops, the U.S Department of Agriculture said.Thursday, September 23, 2010

Page 16: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Contact Information

Ken Boutilier, President Innovotech [email protected] Ph: 780-448-0585 ext 221Fax: 780-424-0941

Page 17: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

Page 18: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

People - Board Vice President Research, University of Alberta. Former-

Director, VIDO, University of Saskatchewan, a renowned vaccine development institute.

Former-Chairman, Foundation Equity Corporation, a successful technology venture capital firm.

Partner with Parlee McLaws LLP, specializing in intellectual property and technology development.

Executive in pharmaceutical manufacturing at Laporte PLC, Degussa GmbH and Rhodia Pharma Solutions. CEO of Raylo Chemicals.

Founding Partner, St Arnaud Pinsent, Steman a technology-focused chartered accounting firm. Former Director of Technology at Ernst and Young LLP.

Experience in the creation, management, and financing of knowledge-based companies. Former-Chair & CEO of Innovotech, Raylo Chemicals and Cytovax Biotechnologies.

Former CFO at Raylo Chemicals. Former Chairman of the Board at Ricon Resins Inc. Serial investor and board member in over 15 early-stage technology companies.

Lorne Babiuk, PhD

Kerry Brown , CA

Bruce Hirsche, LLMCorporate Secretary

Wolfgang Muhs, PhDChairman of the Board

John Pinsent , CA

Gerard Tertzakian, PhD

James Timourian, PhDChief Financial Officer

Page 19: Innovotech AGM Presentation April 19 2011

© Innovotech, 2011

People – Senior Management

Former senior manager at Glaxo SmithKline Inc, McKesson Canada and Canada Safeway Pharmacies Ltd with experience in operations and marketing spanning biotechnology, pharmaceutical manufacturing and distribution, and retail pharmacy.

World recognized biofilm expert. Experienced researcher and entrepreneur holding over 35 patents in medical and veterinary science and over 170 published papers. Inventor of the MBEC Assay™ and founder of MBEC Biofilm Technologies.

Former CFO at Raylo Chemicals. Former Chairman of the Board at Ricon Resins Inc. Serial investor and board member in over 15 early-stage technology companies.

Ken Boutilier, MBAPresident and CEO

Merle Olson, DVMResearch Director

Jim Timourian, PhDChief Financial Officer