ChemoTech | Mohan Frick, CEO

(Transcription)

Mohan Frick  0:09  

Thank you everyone to for being here today. And like I was introduced, we have developed a new generation of counsel therapy within the area of precision medicine. We call this tumor specific electroporation. So what are we? Yes, we are a medical device company with its foot steps from Lund University in Sweden. So I'm quite many flight hours away from my headquarters. But being a company that started 2015, and we made an IPO 2016 on the stock exchange in Stockholm, I would say, we have come pretty far for being in the industry that we are. We have a patented technology that protects our product, or not only the hardware, but also different kinds of disposables. That is obviously very interesting for the income and revenue models. As you can see, the device here is rather small. And that is one of the features that I see is critical for new medical devices, especially if you see your global market, go and go to market, how you would be able to do that efficiently without having too much of administration and loss of time. The interesting thing here is this is a technology that already has proven to work. And I think that I heard yesterday afternoon, afternoon and evening in the opening speech. One question that everybody talks to talk about is risks. And even though there are still risks in our company, I would say they are rather low compared to many others, as we have come quite far. The gentleman yesterday also spoke about engineers say talking about doing a 180 when it comes to reengineering. And that is exactly what I did with my in the in my development team at chemo tech. They were and I was still is an older technology of electroporation out in the market that is designed to do half of what we do, they suppose is designed to break down and kill the cancer cells. But the way they do it is not controlled. It is a static electrical, electrical current that is not adaptable to the different patients and tumors. And in most cases, it's actually not a drug delivery technique, as ours is designed to be. It actually kills the cancer, cancer tumors by electrification. And what is the 180 degree I talked about? We at chemo Tech, we started to wonder if having a high power that actually kills the cancer cell, which we want to do, obviously, is the right approach. So we developed a first electroporation technology that is dynamic and adaptive to every single tumor allocation where you'd want to treat and instead of having a high load of energy, we wanted to balance that. So we create a balance between apoptosis and necrosis. And what see what happened. This is how the therapy is performed. You see, the device here is equipped with steroid electrodes that you insert into the tumor area, in at the same time, as you give a very low dose of chemo. The efficacy increase of this therapy is so great that we can go down to almost only 5% of the normal dose of chemotherapy. And even with that, we can get non responsive tumors. So to start to respond. The most important thing if you want to create a dynamic electroporation technology where any dynamic feature or technology whatsoever is that the physician gets information feedback of how the process is being performed. And this is what this device is equipped with, but with an automatic intelligence which means that the physician don't have to do any adaptation The device will do that for him. Almost almost like a automatic dosing system. We call it IQ. And it's designed to reduce the risk of burning tumors to or ablative them. And to by that reduce the risk of destroying the immune response. And obviously, we want to create a better clinical outcome and a faster healing process. Our company's device is already seen marked in Europe, and the company is certified for ISO 13 305. We are presently certified to treat multiple different indications like all kinds of skin lesions, breast cancers, and head and neck cancer, and actually even do some of the deep seated tumors as well. We have a special functionality because the mouth and oral is very sensitive when it comes to therapy, and is also one of the most growing indications in Europe today. We are have, we already have a case report published in 2017. That shows dramatic effects of the therapy compared to the older generation. Obviously, we need more clinical data. And that's why I'm here today to make partnerships with new investors and new in technology partners to create more of these clinical data all not only on the existing indications, but also on deep seeded tumors as well. We have ongoing clinical trials in both Asia and in Europe, for humans, and for our animal care project and division. Here are some of the data from that case report from having a really low clinical response from the older technology, the static one that actually burned many of the patients, we could increase that dramatically and even these patients have large tumors well above 10 centimeters. They are also in the status where no other therapy shown to give response, we could create a complete remission in 23% of these cases. The key is to balance the electrical pulse and not kill it by the electrification and have a soft opening of the membrane of the cancer cells to improve the uptake of the chemo. As well it's of importance of distributing the electrical field throughout the entire area of of the treated area you want to treat not to re create cold spots or non treated tissue that could result in a relapse. We have three patient patents, the dynamic features patented as well as our treatment kits and disposable designs. We just recently got a patent here for United States and Asia for our deep seated approach where we can today by stereotactic technique, reach tumors far into the body. Without having these steel electrodes going in parallel, we can we can go through from different angles to avoid important functions or organs. We have last two years we have also launched a new business area within animal care, a really really interesting field for our technology for medicine as such. Why did we go into animal care? There are many reasons but one of the most reason biggest reasons are that that industry is experienced a great consolidation phase. Larger VC corporate companies and corporations are acquiring a large amount of clear of clinic clinics both in Europe and in US, which make the logistics make sales make partnership well rewarded. There's also actually more dogs that are suffering from cancer in both US and Europe than humans. 25% of all dogs are indicated with cancer and approximately 50% of the dogs above 10 years of age are indicated. We calculate quite low on these numbers of cancer patient we're talking about approximately 10 million dogs in the US and in Europe that are indicated with cancer. For our business approach when we entering this market, we are calculating with a target of 2 million dogs and cats in both Europe and US alone. I know it's slowly calculated, but we prefer to be low in these than over optimistic. But this gives us great opportunities with the right financial partner to launch this division strongly in United States to help these DVMs. That has very low alternatives of treating cancer only on disposables that will within the few years next three years in our calculation give us revenues, approximately on 60 million US dollars. And for our capital goods sales, 80 million US dollars have in mind these 60 million in disposables, not one time. These are recurrent business recurrent revenues, and will grow as we will grow in the market penetration. We're looking at perhaps doing a spin off for our Vette cure and the animal care division that we would like to discuss with the right partners that are interested in perhaps goes as far as doing an IPO on our animal care division here in United States, because that is by far the biggest market for us when it comes to treating cats, dogs and even larger animals like E coins. Thank you very much for listening. I know I didn't speak so much deeply on the technology. I hope that I gave you an idea of the opportunities that we have at hand with two already existing and commercial products. And the risk assessment that I told in the beginning, I see as dramatically lower than many early stage investment. Thank you