Altimmune, Inc. · NASDAQ:ALT
Altimmune — Healthcare Acquisition — SPAC Merger (January 2007)
32 slides from Altimmune's SPAC merger presentation, Jan 22, 2007
Slide 1: Proposed Merger with Healthcare Acquisition Corp.
El 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 limita
Slide 3: Transaction Summary
Transaction Summary Gl ParmAthenc Acquirer: Target: Proposed Transaction: Consideration: Pro Forma Ownership: Proceeds: Timing: Healthcare Acquisition Corp (AMEX: HAQ) PharmAthene, Inc. (PTHN) HAQ to acquire 100% equity of PharmAthene 12.5M shares $12.5M debt PTHN 52% HAQ 48% $68M cash remains to ex
Slide 4: Investment Highlights
G PharmAthene Investment Highlights v PharmAthene is a leader in the biodefense industry — $10B industry by 2011 wv Advanced product pipeline - Valortim™ for anthrax and Protexia® for nerve agents v Strong management team, industry backers and sponsorship - David P. Wright, senior executive experien
Slide 5: Agenda: Compelling Investment Opportunity
Agenda: Compelling Investment Opport 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: Targeting multi-billion dollar critical market opportunity
Civilian (DHHS, DHS) Annually 2003 to 2006 Project BioShield to 2013 Military (DoD) 2006 to 2011 International Percent of U.S. market Targeting multi-billion dollar critical market opportunity y) Source: MedaCorp Reports *Chemical & Biological Defense Program ~ Oct 2005
Slide 7: Biodefense Model: Advantages
Biodefense Model: Advantages Traditional Model Biodefense Model Preclinical development 4-6 years; >$25M 1-2 years; <$10M Total development costs >$500M <$150M Grant support Typically <5% Up to 100% Approval track Phase I, ae Animal rule Commercialization Post-FDA approval Pre-FDA approval procureme
Slide 8: Agenda: Targeting a multi-billion dollar critical market opportunity
¢ Targeting a multi-billion dollar critical market opportunity ¢ Industry-leading biodefense capabilities ¢ Two best-in-class products ¢ Clear growth strategy; compelling transaction
Slide 9: Experienced Management Team
Experienced Management Team al 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 ¢ Strong relationships with Government agen
Slide 10: Board of Directors — Post Merger
Board of Directors — Post Merger —- 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., Directo
Slide 11: Business Strategy
Business Strategy GiPmAtiene Emulating Defense Model 1. Build strong core 2. Attain material non- product portfolio aan dilutive funding - strict criteria ‘a - rapidly advance d t y j evelopmen' » y ~ , \ PharmAthene J y 4. Leverage y technology 1 F A 3. Expand customer — diversify beyond > base/ re
Slide 12: Agenda: Compelling Investment Opportunity
Agenda: GH PharmAthene Compelling Investment Opportunity ¢ Targeting a multi-billion dollar critical market opportunity ¢ Industry-leading biodefense capabilities e Two best-in-class products ¢ Clear growth strategy; compelling transaction
Slide 13: Two Best-in-Class Products
Two Best-in-Class Products GH PharmAthene
Slide 14: Anthrax — The Unmet Need
Anthrax — The Unmet Need ¢ 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: Our Anthrax Solution: Valortim
Our Anthrax Solution: Valortim™ Gn ¢ Fully human MAb with unique mechanism of Advantages action ¢ Potent anthrax toxin neutralizing activity ¢ Capable of neutralizing both free and cell-bound anthrax toxin ¢ Unique mechanism of action same as vaccine induced immunity ¢ Efficacious as prophylaxis & t
Slide 16: Prophylactic and Therapeutic Studies
Prophylactic and Therapeutic Studies Show Valortim™ is Highly Efficacious Time to Model Animal Treatment Survival Prophylaxis Rabbits 1 hr post-exposure 85% Prophylaxis Monkeys 1 hr post-exposure 100% Treatment Rabbits 24 hrs post- 89% exposure Treatment Rabbits 48 hrs post- 42% exposure Control All
Slide 17: Protexia: Nerve agent countermeasure
Two Best-in-Class Products G Mhamarnene y) Protexia® Nerve agent countermeasure
Slide 18: Nerve Agents — The Unmet Need
Nerve Agents — The Unmet Need G MarmArnen e Readily available including — Sarin, Soman, Tabun, VX e Rapid morbidity and mortality ¢ 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® Simm": e¢ Recombinant version of human BChE 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 permits Mimics natur
Slide 20: Conventional Treatment
Conventional Treatment GiPhemAcnene 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 Gitar. and Prevents Neurological Toxicity Our Solution Guinea pig pretreated with Protexia® and then 18 hrs. later exposed to 5.5 x LDsp of Soman
Slide 22: Agenda: Compelling Investment Opportunity
Agenda: GH 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: Grow leadership position in biodefense
Grow leadership position in biodefense Develop portfolio of best-in-class products addressing high priority gov't needs Add commercial products to biodefense portfolio Broaden portfolio through business development * Utilize existing infrastructure to develop new drugs * Selectively acquire other co
Slide 24: Recent Contracts Validate Model
Recent Contracts Validate Model a e Awarded Protexia® DoD contract Sept. 06 — Provides up to $213M — Protexia® selected in competitive bid process ¢ Awarded NIH and other government funding soln, — Total NIH grant funding to date: ~$10M g SG — Total gov't monies awarded to PTHN: up to $246M Orpen e
Slide 25: Milestones
Milestones Valortim™ therapeutic data Qi 07 Anthrax RFP solicitation Q2 07 Valortim™ NIAID contract ($14M) Q2 07 Complete Protexia® process development Q2 07 Protexia® Alzheimer’s proof of concept Q4 07 Anthrax RFP award Q2 08 Initiate pivotal Protexia® animal tox study Q2 08 File Protexia® IND Q4 0
Slide 26: Financial Overview
Financial Overview Gi PharmArnen e Premier healthcare venture capital presence ~$70 million ae EARNS —_ CMDS Capital mons © Fairwa e Investment in development of the PharmAthene business: — »~$1M / month e Pro forma cash of $68M (estimated at closing) ¢ Defense model allows sale of product prior to
Slide 27: Financial Overview: Pro Forma Ownership
Financial Overview Gi PharmArnen Pro Forma Ownership (shares in thousands) Pro Forma Basic Shares Shares O/S Existing shares (HAQ) Hi 11,650 New shares issued (PharmAthene) Hl 12,500 Total shares outstanding 24,150 Fully-Diluted Shares* Basic Shares i] 24,150 Warrants (in 9,400 UPO shares ry 225 UPO
Slide 28: Financial Overview: Transaction Valuation
Financial Overview Gi PharmArnen Transaction Valuation (shares in thousands, $ in millions) Healthcare Acquisition Corp. price per share (1/16/07) $7.54 Total shares outstanding 24,150 Pro forma market capitalization $182.1 Cash $68.0 Assumption of convertible debt $12.5 Implied enterprise value $12
Slide 29: Financial Overview: Valuation
Financial Overview Gi PharmArnen Valuation ; Enterprise Value/ Revenue“ Biotechnology public company valuation analysis 2008 2009 Cangene Corp. 4.2X 3.5X Emergent BioSolutions, Inc. 1.6X 1.4Xx BioCryst Pharmaceuticals Inc. 8.0X 5.5X AVI Biopharma Inc. 6.3X 6.3X SIGA Technologies Inc. 16.0X NM High 1
Slide 30: In Summary
In Summai ry G PharmAthene A Compelling Investment Opportunity Y Industry-leading biodefense company — Initial focus in biodefense with expansion into broader markets vw Best-in-class products for high priority biodefense needs - Valortim™ for anthrax and Protexia® for nerve agents wi Impressive fun
Slide 31: End Note
End Note The potential revenue information provided for herein is a forward looking statement that is provided by PharmAthene to express its best estimate of potential revenue. The information is based upon assumptions that have been made by PharmAthene with respect to, among other things, (i) avail
Slide 32: Proposed Merger with Healthcare Acquisition Corp.
Hl PharmAthene Dedicated to a safer world Proposed Merger with Healthcare Acquisition Corp. January 2007 AMEX: HAQ