Altimmune, Inc. · NASDAQ:ALT
Altimmune — Healthcare Acquisition — SPAC Merger (January 2007)
32 slides from Altimmune's SPAC merger presentation, Jan 24, 2007
Slide 1: Proposed Merger with Healthcare Acquisition Corp.
2%) PharmAthene Dedicated to a safer world Proposed Merger with Healthcare Acquisition Corp. January 2007 AMEX: HAQ
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, this presentation contains among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Such statement may includ
Slide 3: Transaction Summary
Transaction Summary Glimcher. Acquirer: Healthcare Acquisition Corp (AMEX: HAQ) Target: PharmAthene, Inc. (PTHN) Proposed Transaction: HAQ to acquire 100% equity of PharmAthene Consideration: 12.5M shares $12.5M debt Pro Forma Ownership: PTHN 52% HAQ 48% Proceeds: $68M cash remains to execute growth
Slide 4: Investment Highlights
G PharmAtnene Investment Highlights wh PharmAthene is a leader in the biodefense industry — $10B industry by 2011 wh Advanced product pipeline - Valortim™ for anthrax and Protexia® for nerve agents wa Strong management team, industry backers and sponsorship - David P. Wright, senior executive experi
Slide 5: Agenda
Agenda: G PharmAthene Compelling Investment Opportunity... e Targeting a multi-billion dollar critical market opportunity ¢ Industry-leading biodefense capabilities ¢ Two best-in-class products ¢ Clear growth strategy; compelling transaction
Slide 6: Large, Growing Biodefense Markets
Large, Growing Biodefense Markets Sm" Civilian (DHHS, DHS) Annually 2003 to 2006 ¢ Project BioShield to 2013 $5.68 | Military (DoD) 2006 to 2011 International Percent of U.S. market 725-50% | Targeting multi-billion dollar critical market opportunity Source: MedaCorp Reports *Chemical & Biological D
Slide 7: Biodefense Model: Advantages
{ Biodefense Model: Advantages Preclinical development Total development costs Grant support Approval track Commercialization procurement Traditional Model 4-6 years; >$25M >$500M Typically <5% Phase I, II, III Human trials Post-FDA approval Biodefense Model 1-2 years; <$10M <$150M Up to 100% Animal
Slide 8: Agenda
Agenda: G PharmAthene Compelling Investment Opportunity ¢ Targeting a multi-billion dollar critical market opportunity e Industry-leading biodefense capabilities ¢ Two best-in-class products ¢ Clear growth strategy; compelling transaction
Slide 9: Experienced Management Team
Experienced Management Team GifhatAchen e Senior management with a proven track record — Experience in winning significant government contracts — Commercialized 30 pharma/biotech products generating >$4B in revenue — Reputation for creating new market opportunities e Strong relationships with Govern
Slide 10: Board of Directors — Post Merger
Board of Directors — Post Merger ial John Pappajohn, Chairman — Healthcare Acquisition Corp. James Cavanaugh, Ph.D., Director — HealthCare Ventures, LLC Elizabeth Czerepak, Director — Bear Stearns Health Innoventures Joel McCleary, Director — Four Seasons Ventures, LLC Steven St. Peter, M.D., Direct
Slide 11: Business Strategy
Business Strategy & PharmAthene Emulating Defense Model 1. Build strong core 2. Attain material non- product portfolio dilutive funding - strict criteria — rapidly advance PR) development ’ PharmAthene 4, Leverage technology 3. Expand customer — diversify beyond base/reach pure-play — Gov't / corpor
Slide 12: Agenda
Agenda: G PharmAthene Compelling Investment Opportunity ¢ Targeting a multi-billion dollar critical market opportunity ¢ Industry-leading biodefense capabilities ¢ Two best-in-class products ¢ Clear growth strategy; compelling transaction
Slide 13: Two Best-in-Class Products
Two Best-in-Class Products GF PharmArnen
Slide 14: Anthrax — The Unmet Need
Anthrax — The Unmet Need e Catastrophic threat in urban setting — 1kg > 380,000 people infected e Existing treatment: antibiotics — limited effectiveness — expect 40-50% fatality — genetic engineering > antibiotic resistant e Vaccines also problematic — multiple doses over several weeks/months — ina
Slide 15: Valortim: Fully human MAb with unique mechanism of action
e Fully human MAb with unique mechanism of Advantages action ¢ Potent anthrax toxin neutralizing activity * Capable of neutralizing both free and cell-bound anthrax toxin e Unique mechanism of action same as vaccine induced immunity ¢ Efficacious as prophylaxis & therapy rr
Slide 16: Prophylactic and Therapeutic Studies
Prophylactic and Therapeutic Studies Show Valortim™ is Highly Efficacious Model Animal Time to Treatment & PharmAthene Prophylaxis Rabbits 1 hr post-exposure Prophylaxis Monkeys 1 hr post-exposure Treatment Rabbits 24 hrs post- exposure Treatment Rabbits 48 hrs post- exposure Control All Above All A
Slide 17: Two Best-in-Class Products
Two Best-in-Class Products GF PharmArnen ] 5 = .
Slide 18: Nerve Agents — The Unmet Need
Nerve Agents — The Unmet Need GH Pamanen e Readily available including — Sarin, Soman, Tabun, VX e Rapid morbidity and mortality e No adequate vaccine or therapy currently available — current standard of care — atropine, 2-PAM, diazepam
Slide 19: Our Nerve Agent Solution: Protexia
Our Nerve Agent Solution: Protexia® Sm e¢ Recombinant version of human BChE Mimics natural “bioscavenger” Advantages Protection pre-and post-exposure Protection against broad spectrum of nerve agents Superior efficacy to standard of care No observable neurological deficits Transgenic platform permit
Slide 20: Conventional Treatment
Conventional Treatment GiihummAchen Does Not Prevent Neurological Toxicity Conventional Treatment Guinea pig exposed to only 1.5 x LD., Soman and immediately given the conventional treatment of atropine / 2-PAM / Diazapam
Slide 21: Protexia Provides Superior Survival
Protexia® Provides Superior Survival GibiarnAcren and Prevents Neurological Toxicity Our Solution Guinea pig pretreated with Protexia® and then 18 hrs. later exposed to 5.5 x LD., of Soman
Slide 22: Agenda
Agenda: G PharmAthene A Compelling Investment Opportunity ¢ Targeting a multi-billion dollar critical market opportunity ¢ Industry-leading biodefense capabilities ¢ Two best-in-class products e Clear growth strategy; compelling transaction
Slide 23: Growth Strategy
Growth Strategy G PharmAcnen Leverage infrastructure > commercial markets Broaden portfolio through business development Grow «Shift potential leadership revenue/customer mix position from government to in biodefense * Utilize existing consumer infrastructure to develop *Out-license potential new dr
Slide 24: Recent Contracts Validate Model
Recent Contracts Validate Model ie e Awarded Protexia® DoD contract Sept. 06 — Provides up to $213M — Protexia® selected in competitive bid process e Awarded NIH and other government funding gly, — Total NIH grant funding to date: ~$10M g Et — Total gov’t monies awarded to PTHN: up to $246M Osea e A
Slide 25: Milestones
Milestones G PharmAthene Event* Date Valortim™ therapeutic data Anthrax RFP solicitation Valortim™ NIAID contract ($14M) Complete Protexia® process development Protexia® Alzheimer’s proof of concept Anthrax RFP award Initiate pivotal Protexia® animal tox study File Protexia® IND “The Milestones list
Slide 26: Financial Overview
Financial Overview GF PharmArnen e Premier healthcare venture capital presence ~$65 million aM FERNS mmm “MOS Capital (nes Fairway Rebs Hekate e Investment in development of the PharmAthene business: — »~$1M / month e Pro forma cash of $68M (estimated at closing) e Defense model allows sale of produ
Slide 27: Financial Overview: Pro Forma Ownership
Financial Overview Pro Forma Ownership (shares in thousands) Pro Forma Basic Shares Shares O/S Existing shares (HAQ) 11,650 New shares issued (PharmAthene) Hl 12,500 Total shares outstanding 24,150 Fully-Diluted Shares* Basic Shares | 24,150 Warrants (i 9,400 UPO shares i] 225 UPO warrants ry 225 Co
Slide 28: Illustrative Transaction Valuation
Financial Overview GF PharmArnen Illustrative Transaction Valuation (shares in thousands, $ in millions) Healthcare Acquisition Corp. price per share (1/22/07)() $7.40 Pro forma basic shares outstanding 24,150 Pro forma basic market capitalization $178.7 Plus: aggregate in-the-money of 9.4 million w
Slide 29: Selected Comparable Company Revenue Multiples
Financial Overview GF PharmArnen Selected Comparable Company Revenue Multiples Enterprise Value/ Revenue” Biotechnology public company valuation analysis 2008 2009 Cangene Corp. 4.2X 3.5X Emergent BioSolutions, Inc. 1.6X 14x BioCryst Pharmaceuticals Inc. 8.0X 5.5X AVI Biopharma Inc. 6.3X 6.3X SIGA T
Slide 30: In Summary
In Summan Y G PharmAtnene A Compelling Investment Opportunity Y Industry-leading biodefense company — Initial focus in biodefense with expansion into broader markets wv Best-in-class products for high priority biodefense needs - Valortim™ for anthrax and Protexia® for nerve agents wh Impressive fund
Slide 31: End Notes
G PharmAtnene End Notes Notes from "Financial Overview, Iiustrative Transaction” + Note that prior to closing of the transaction, market price per share may be impacted by HAQ shareholders’ right to convert shares into cash as described in the HAQ Prospectus dated July 29, 2005. + Forillustrative pu
Slide 32: Proposed Merger with Healthcare Acquisition Corp.
Ex) PharmAthene Dedicated to a safer world Proposed Merger with Healthcare Acquisition Corp. January 2007 AMEX: HAQ