2012 Annual Report - Prometic - Life Science, Inc.

PROMETIC’S BUSINESS IS ORGANIZED AND BASED UPON 2 DISTINCT BUSINESS SEGMENTS.
The Corporation also announced the
development of a second plasma derived
biopharmaceutical for NantPharma LLC.
In this case, ProMetic will be responsible
for the development and manufacturing
services, including the production in its
Laval, Quebec facility of cGMP bulk active
product. Upon FDA approval, ProMetic
will exclusively manufacture and supply
the commercial requirements of the cGMP
bulk active to NantPharma, who will be
responsible for completing the final sterile
manufacturing steps.
C- PPPS TM :
Enabling of manufacturing process
The development of PPPS, the critical
mass of licensees and deals allowed
for the implementation and upcoming
operational launch of ProMetic’s GMP
plasma facility, located in Laval, Quebec;
dedicated to the manufacturing of
plasma derived products. ProMetic’s
clients and partners such as NantPharma
and Hematech BioTherapeutics rely
on the supply of cGMP bulk products
from the Laval facility to support their
respective clinical trials and commercial
product launches.
ProMetic’s facility will also serve as a
blue print for other partners’ future
plants and will serve as a technological
showroom and training centre for
partners’ employees.
ProMetic anticipates the official
operational launch to take place in late
2013 and a ramp up of production and
revenue generation starting in 2014 and
accelerating the following years.
platform by its licensees and the Company
itself will play an increasing role in achieving
the corporate objective of developing best
in class, price competitive and safer plasma
derived biotherapeutics.
ProMetic has made great progress in 2012
in regards to its corporate strategy and
objective of moving higher up in the value
creation hierarchy. Most of the fundamental
requirements and steps to insure that the
process is accomplished successfully have
been advanced significantly during the last
year. ProMetic has advanced its technical
platform, increased its critical mass of clients,
improved its financial situation and secured
the necessary alliances to allow for the
transition towards higher value creation to
take place.
As one can see from the following graphic,
ProMetic is successfully transitioning from
a simple provider of enabling affinity resins
used as components in our clients’ drug
manufacturing processes to a manufacturer
and producer of bulk active pharmaceutical
ingredients by leveraging its own affinity
resin technology and proprietary PPPS TM
process aiming to ultimately commercialize
its own therapeutic products.
Sales of
Biopharmaceuticals
The difference in value creation resulting
from this is significant as the sales of affinity
resins normally represent 3 to 4 % of the
finished product value. Providing the
platform and process to our partners to
enable them to achieve the manufacturing
of their own products usually allows for
royalties on their sales in the range of single
digit royalties. Moving up the hierarchy
to become the provider of the bulk active
pharmaceutical ingredient usually represents
a substantial gain in value creation of
approximately 30% of the finished product
value. In some cases, ProMetic will even
commercialize itself the biopharmaceutical
product and capture the ultimate 100% of
the value as the seller of the drug.
Transitioning from pure enabling
resin sales to a mix of sales of
resins, royalties, sales of bulk
API & sales of biopharmaceuticals.
The plasma derived products market is a
fast growing and lucrative market worth
in excess of $12 billion per year. Whilst
2/3 of the current markets are in Europe
and North America, it is estimated that
the emerging markets of the Asia & Pacific
region will grow rapidly in the coming years.
With its new secured partnership and recent
technological progress, ProMetic is now
more than ever well positioned to become
a key industry player with recognized world
standard manufacturing processes. The
increasing exploitation of ProMetic’s PPPS TM
Sales of
Bulk Active Ingredients
Royalties on Licensees’
sales of Biopharmaceuticals
Sales of
affinity Resins to licensees
0
20
40
60
80
% of finished product value
100
PROMETIC LIFE SCIENCES INC.
11