Fall 2017 Investor Presentation - Veritas Pharma Inc
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Fall 2017 Investor Presentation
Legal Disclaimer & Forward Looking Information CSE: VRT | OTC:VRTHF | FRT:2VP
LEGAL DISCLAIMER: This document provides a description of Veritas Pharma Inc. (“Company” or the “Company”) and its business.
Prospective investors are encouraged to obtain independent legal advice concerning any investment in securities of Company and
should not base their decision on whether to invest in Company solely upon the material provided herein. There are no representations or
warranties made herein by Company or the agents, if any, of the proposed offering of any securities or debt instruments in the Company
(the “Agents”) and investors will only be able to rely on the representations and warranties contained in the subscription agreement to be
entered into at the time of sale of the securities. There are certain risks inherent in an investment in the securities of Company that
prospective investors should carefully consider before investing in the securities of the Company. This document constitutes an offering
of the securities described herein only in those jurisdictions and to those persons where and to whom they may be lawfully offered for
sale, and only by persons permitted to sell these securities. This document is not, and under no circumstances is it to be construed as an
advertisement or a public offering of these securities. This document is personal to each offeree and does not constitute an offer to any
other person or to the public generally to subscribe for or otherwise acquire any of the securities referred to herein. No securities
regulatory authority or similar authority has reviewed or in any way passed upon the presentation or the merits of these securities and
any representation to the contrary is an offence. This document has been prepared for information purposes only in order to assist
prospective investors in evaluating an investment in Company . No representation, warranty or undertaking, express or implied, is made
and no responsibility or liability is accepted by the Agents as to the accuracy or completeness of the information contained herein or any
other information, representation, warranty or undertaking, express or implied, made by Company in connection with the offering of
securities described herein.
FORWARD LOOKING INFORMATION: This corporate document contains statements that, to the extent that they are not historical
fact, may constitute “forward-looking statements” within the meaning of applicable securities legislation. Any statements regarding
future plans, objectives or economic performance of Company , or the assumption underlying any of the foregoing, constitute forward-
looking information. This corporate document may use words such as “may”, “would”, “could”, “will”, “likely”, “except”, “anticipate”, “believe”,
“intend”, “plan”, “forecast”, “project”, “estimate”, “outlook”, and other similar expressions to identify forward-looking statements. Actual
results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this
corporate document, and, accordingly, investors should not place undue reliance on any such forward-looking statements. Forward-
looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or
anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be
read as guarantees of future performance or results. Any forward-looking statements speak only as of the date on which such statement
is made and each of Company and the Agents disclaims any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, unless required by applicable law. New factors emerge from time to
time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factors.
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CSE:VRT | OTC:VRTHF | FRT:2VP
Presentation Content
4 About Veritas 15 Veritas’ Team
7 The Opportunity 18 Scientific Team (CTL)
8 Veritas’ Mission 21 Sechelt Organic Marijuana
9 Veritas’ R&D Approach 22 Research Status Update
12 Targeted Medical Conditions 24 Future Steps & Timelines
13 IP Strategy 26 Financials
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CSE:VRT | OTC:VRTHF | FRT:2VP
An emerging pharmaceutical company developing effective cannabis therapies that
target a variety of disease conditions such acute & chronic pain, while providing
conclusive evidence as to the efficacy of these treatments to doctors and patients.
• A Vancouver based company tri-listed on the Canadian, German and American
stock exchanges.
• Veritas has established a separate research and development arm, as well as, a
prospective cannabis production facility through its acquisition and partnerships
with Cannevert Therapeutics Ltd. and Sechelt Organic Marijuana Inc.
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CSE:VRT | OTC:VRTHF | FRT:2VP
Unique Approach About Veritas Achievements
Develop the most effective One of the leading Veritas has already
proprietary cannabis Canadian companies discovered several strains
strains for specific disease conducting cannabis that are being scheduled
conditions (i.e., Pain, etc.). research, with Canada for human trials within the
being 1 of only 3 countries next few months.
Provide doctors and
that are legally allowed to
patients with conclusive research cannabis. These strains were
science supporting the identified through vigorous
efficacy of the treatments. Through its strategic chemical and animal
acquisitions and studies.
Targeting disease
partnerships, Veritas has
conditions that Veritas will The company is in the last
assembled a highly
patent & commercialize. experienced management review stage of receiving
its ACMPR license with
team and a leading team of
Health Canada.
scientists and argologists.
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Strategic Partnerships & Acquisitions CSE: VRT | OTC:VRTHF | FRT:2VP
Cannevert Sechelt Organic Marapharm
Therapeutics Ltd. (CTL) Marijuana Inc. (SOM) Ventures Inc.
Research & Development: CTL Production: SOM was formed Strategic Alliance: Marapharm is
is the exclusive research arm of with the sole purpose of a public company, primarily
Veritas and is located at the becoming a licensed producer investing in the medical and
University of British Columbia. under Canada’s Access to recreational cannabis space with
Cannabis for Medical Purposes operations in both Canada and
Veritas is lead by a team of (ACMPR) regulations. United States.
veteran scientists with a track
record of success in drug SOM’s submitted its ACMPR Highlights:
development. application with Health Canada
• Opening 3 dispensaries in Las
in July 2014 and was recently
CTL is a private company Vegas.
notified that it has entered the
funded by Veritas through a last review stage. • Setting up analytical testing
staged acquisition process. facilities for Washington State
Veritas recently acquired an Veritas has entered into a growing operations.
80% stake in CTL with an definitive agreement to acquire
option to acquire the remaining 100% of SOM, subject to SOM • Advantage: circ. 300,000
20%. obtaining its ACMPR license. square feet of growing
potential.
6
The Opportunity CSE: VRT | OTC:VRTHF | FRT:2VP
Many Physicians’ Prospective:
• “Marijuana is NOT a prescription medicine!”
• “I am RELUCTANT or UNWILLING to
prescribe marijuana without knowing the
risks, benefits, potential complications and
drug interactions!”
• “I have NO TIME to properly assess,
prescribe, monitor and document these
patients!”
• “There is no real evidence backing up
claimed efficacies of marijuana strains.”
Two significant concerns have not been addressed thus far:
• There is little or no scientific evidence that supports therapeutic benefit claims of many
“medicinal” cannabis strains.
• There is limited confidence in observing consistent therapeutic benefits derived from one
batch of a cannabis to another.
7
Veritas Mission CSE: VRT | OTC:VRTHF | FRT:2VP
• Discover/engineer new cannabis cultivars
addressing SPECIFIC disease conditions.
• Develop cultivars to establish STANDARDS that
can be clinically evaluated.
• To be the leader in PRESCRIPTION cannabis
products and therapies, i.e., developing a reliable
and trustworthy BRAND.
• Make Canada a world LEADER in cannabis
research and product development.
• Provide comprehensive scientific evidence for
doctors and patients so they can prescribe and
use these strains confidently.
8
R&D Approach CSE: VRT | OTC:VRTHF | FRT:2VP
1. Chemically profile different cannabis cultivars.
2. Pharmacologically profile those cultivars in the search for disease specific
strains.
3. Perform clinical trials to prove clinical utility NOT follow the traditional
pharmaceutical development pathway to get to market (i.e., 10+ years).
4. Conduct basic safety and efficacy profiling of cultivars.
5. Immediately market clinically effective cultivars as prescription medicines.
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R&D Approach CSE: VRT | OTC:VRTHF | FRT:2VP Traditional Pharma Approach Selective Approach This approach involves a shorter and less costly process as compared to traditional pharmaceutical drug discovery process since cannabis is already considered a safe substance already on the market Diagram Source: Nature Reviews | Drug Discovery 10
Research Advantages CSE: VRT | OTC:VRTHF | FRT:2VP
• Veritas has access to one of only a few academic groups in Canada and the World using
classical pharmacological research techniques to study cannabis and Canada is one of
only three countries that are legally allowed to perform research on cannabis.
• Veritas’ product development process benefits from reduced costs and time, as its
approach is not required to follow the traditional FDA drug development process.
• Veritas’ research process is cost effective and streamlined through the following:
– Research Grants: Through Cannevert, Veritas has access to and participates in
government grant programmes (e.g., MITACS, IRAP, CIHR) and Scientific Research
and Experimental Development (SR&ED) tax credits; where a minimum 1:1 matching
is expected.
– Reduced Facility Costs: Access to UBC facilities and academic personnel
– Access to diverse marijuana strains
11Targeted Medical Conditions CSE: VRT | OTC:VRTHF | FRT:2VP
1. Pain
o Acute & chronic, e.g., cancer pain, arthritis
o Present in 50-90% of cancer patients; Global drug sales ~ USD$2.9b (2015); 43% of the opioids
marketed for this use1
2. Emesis (Nausea, Vomiting)
o Chemotherapy Induced Nausea & Vomiting2 Present in 70-80% of ‘chemo’ patients; No current
drug gives excellent control; Global market - USD$1.3b (2013); estimated USD$1.9b by 2020
3. Behaviourial/psychiatric disorders
o PTSD
o Stress & anxiety
4. Inflammatory disease
o Asthma
o Chronic Obstructive Pulmonary Disease (COPD)
5. Glaucoma
SOURCES:
(1) Amadee + Company (2015) - “Prescription Pain Drugs Including Opioid, Anticonvulsant, Injectable/Inhaled, Topical/Transdermal, Medical Marijuana…”; 12
(2) Transparency Market Research (2015) - “CINV Existing and Pipeline Drugs Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020”Intellectual Property Strategy CSE: VRT | OTC:VRTHF | FRT:2VP
Ensure intellectual and market
“Yes, You Can Patent Pot”
protection:
o Protect cultivars and their use as
fully as possible.
o Patent plant and cultivars including
their unique cannabinoid profiles.
o Patent the specific uses of cultivars
for specific therapeutic treatments.
13Intellectual Property Strategy CSE: VRT | OTC:VRTHF | FRT:2VP
• Examples of plant cultivar protection include:
– Plant Breeders’ Rights Act in Canada1
– Patent Act protection for fully described and validated new uses of
specific cultivars for specific medical conditions, especially for those
strains previously recognized as being effective, or with new strains
of cannabis obtained by genetic engineering2
• Expanding IP strategy to world-wide patents
Sources: (1) http://www.inspection.gc.ca/english/plaveg/pbrpov/cropreport/gsce.shtml 14
(2) OYEN WIGGS GREEN & MUTALA LLP, Vancouver, CanadaVeritas Team CSE: VRT | OTC:VRTHF | FRT:2VP
• Veritas has assembled a noteworthy group of doctors, scientists and
public market professionals with diverse expertise and backgrounds in
the following fields: Pharmaceutical, Medicine, Cancer, Clinical Research,
Cannabis, Marketing, Finance, Cannabis Production, and Operations.
Experienced management team with a
track record of success in public markets.
CTL composed of acclaimed scientists Lead by an experienced agriculture/
with a history of drug discovery. horticulture expert and a designated
grower under MMAR program.
15Veritas Management CSE: VRT | OTC:VRTHF | FRT:2VP
Dr. Lui Franciosi, PhD
Chief Executive Officer
Dr. Franciosi has more than 20 years experience in pharmaceutical and medical device studies in
academia and industry. Previously, he was the COO of Verona Pharma PLC, a London firm listed on
the AIM exchange. Prior to Verona, he completed his post-doctoral research in COPD progression
modelling at the Clinical Pharmacology & Discovery Medicine unit, GlaxoSmithKline, UK and the
Leiden/Amsterdam Centre for Drug Research, in the Netherlands. He obtained his Doctorate and Masters degrees at
the University of British Columbia, and pursued business studies at the University of Warwick, UK. He is currently an
adjunct professor at UBC’s Department of Anesthesiology, Pharmacology and Therapeutics.
David Alexander, CPA/CA
Chief Financial Officer
Mr. Alexander’s past achievements include; CFO of Arakis Energy Corporation, an international oil &
gas development company and managed the company’s growth from a start-up to over a billion
dollars in assets, leading to a listing on the NASDAQ exchange. He was also the CFO of Nortran
Pharmaceuticals, Inc., a UBC based pharmaceutical company engaged in the development and
Commercialization of cardiovascular therapies. While at Nortran, he helped secure initial and ongoing research financing.
Nortran ultimately became Cardiome Pharma, a successful Vancouver B.C. based pharmaceutical company (NASDAQ:
CRME). Mr. Alexander holds a degree in Finance from The University of British Columbia.
16Board of Directors CSE: VRT | OTC:VRTHF | FRT:2VP
Dr. Don Carlow, MD
Dr. Carlow was the past President and CEO of the British Columbia Cancer Agency (BCCA). His efforts led to
the development of new cancer centers, as well as, laying the groundwork for the BC Cancer Research
Center. Dr. Carlow was a member of the board of the Vancouver Island Health Authority, where he chaired
the board’s health quality committee for four years and proposed the establishment of the BC Council on
Quality and Safety.
Linda Sampson
Ms. Sampson is an international marketing and sales professional, having worked in South Africa, Europe,
the US and Canada. She brings a wealth of knowledge and business expertise to Veritas. She is a business
start-up professional with significant accomplishments in sales, marketing, designing and branding. Ms.
Sampson is currently the President of Marapharm Ventures Inc., a developmental stage publicly traded
medical marijuana company with operations based in British Columbia, Nevada and Washington State.
Yari Nieken, MBA
Mr. Nieken has a wide range of public company and capital market experience. He is the Founder
and President of Foremost Capital Inc., an exempt market dealer. He is currently a director of Marapharm
Ventures Inc. and has served on the boards of several public and private companies including PUF Ventures
(President & CEO), Lexagene Holdings Inc. (Director), Duport Capital Ltd. (Director), and has been
instrumental in raising substantial capital in his career. He holds an MBA from the Sydney Graduate School
of Management and a BA from the University of British Columbia.
17Cannevert’s Research Team CSE: VRT | OTC:VRTHF | FRT:2VP
Cannevert is composed of a leading team of scientists located at the University
of British Columbia with access to a wide-range of applicable academic facilities
all led by Professor Walker:
Dr. Michael Walker, PhD
President
Dr. Walker received extensive training in pharmacology at the University of London where he
received his PhD after initial studies in Hong Kong. His experience included a significant period of
drug discovery research at Pfizer Ltd., in the UK. Dr. Walker’s main passion has always been the
discovery of new drugs (whether naturally occurring or not) and in the process of drug discovery
itself. His commitment to academic research has led to his successful 40-year career at UBC and
the numerous other contributions he has made to universities around the World.
Dr. Walker has expanded his career to include, creating biotech companies and leading research firms for new drugs.
During his tenure, Dr. Walker has been the founder or co-founder for 8 different drug discovery companies both in the
private and public sectors including: Cardiome Pharma (TSX: COM) and Verona Pharma Ltd in London (AIM: VRP). He
has also been a director for numerous companies with the most recent of which, IOmet, was acquired by a large
Pharmaceutical company.
As a natural extension for his passion for drug discovery, Dr. Walker formed Cannevert Therapeutics Ltd., a company
designed to create and implement a coherent and rational attempt to develop therapeutic uses of cannabis and its
integral cannabinoid molecules to provide therapies addressing chronic pain.
18Cannevert’s Research Team CSE: VRT | OTC:VRTHF | FRT:2VP
• Cannevert’s leading team of scientists is comprised of 10 PhDs/MD with
expertise in chemistry, pharmacology and clinical trials.
• In addition to the leading team of scientists, Cannevert has also assembled a
team of trained technicians and students who work at their academic facilities.
• This team includes the following notable scientists:
Michael J. A. Walker, PhD President & Head of Biology
Bernard A. MacLeod, MD Senior Clinical Scientist
Richard A. Wall, PhD Principal Chemist
Ernest Puil, PhD Pharmacology Consultant
Thomas Stokes, PhD Chemistry Consultant
Andrew Hegle, PhD Senior Scientist
Ricardo Rivera-Acevedo, PhD Senior Scientist
Lui Franciosi, PhD Director
19Scientific Track Record CSE: VRT | OTC:VRTHF | FRT:2VP
• Cardiome Pharma, Vancouver, Canada (TSE: COM; NASDAQ: CRME)
o Specialized in discovery & development of anti-arrhythmic drugs
o Apr. 2009 - Merck & Co. and Cardiome enter development and licensing
agreement for atrial fibrillation drug vernakalant (Trademark BRINAVESSTM), in
a deal worth as much as USD $600 million
o Sept. 2010 - Marketing approval for intravenous (IV) formulation vernakalant in
Europe
• Verona Pharma, London, UK (LSE AIM: VRP)
o Specialized in developing treatments for Asthma, COPD & Cystic Fibrosis
o Lead molecules in Clinical Phase II/III
• IOmet Pharma, Edinburgh, UK
o Private company specialized in small molecules (enzyme inhibitors) for the
treatment of cancer, focusing on immunotherapy and cancer metabolism
o Jan. 2016 - Sold to Merck & Co. in a deal worth up to US $400 million (£276
million), subject to the achievement of targets
20Sechelt Organic Marijuana CSE: VRT | OTC:VRTHF | FRT:2VP
• Sechelt was formed with the purpose of becoming a licensed producer under the
Access to Cannabis for Medical Purposes (ACMPR) regulations.
• Sechelt has an ACMPR application pending since July 4th, 2014.
• In 2016, Veritas entered into an agreement with Sechelt to acquire 100% ownership
of Sechelt, subject to it obtaining the ACMPR license.
• This agreement was reached with the goal of enabling Veritas to grow and bring its
proprietary cannabis strains to market.
• Sechelt operates a 0.73 acre secure property in an
approved jurisdiction, to build a 2-story facility totaling
20,000 square feet in Sechelt, British Columbia,
Canada.
• The plans for this facility include 6,800 sq. ft. of
budding rooms, 3,000 sq. ft. of cloning rooms, as well
as, a small testing lab and secure storage room.
• The aim is to produce & cultivate 4500 kg of cannabis
per year.
21Current Research Status & Milestones CSE: VRT | OTC:VRTHF | FRT:2VP
• Established the necessary laboratory space, qualified personnel and access
to necessary equipment for the chemical and pharmacologic analysis.
• A variety of animal models of disease conditions including pain, nausea,
behavioral, safety (cardiac and respiratory) have been developed.
• Over 250 chemical experiments have been performed thus far whereas
pharmacological and biological studies now number over 150.
• Few cannabis strains have been identified as potentially therapeutic; one for
pain and the other for nausea.
• The company was also informed in February 2017 that its’ subsidiary
Sechelt Organic Marijuana is now in last review stage of its ACMPR
application.
22R&D Pipeline Update CSE: VRT | OTC:VRTHF | FRT:2VP
R&D Pipeline Update
Cell Discovery of
Chemical Animal Patent
Condition Culture potentially effective Moving to Clinical Trials
Analysis Studies App.filed
Analysis cannabis strain
Acute ✔ ✔ ✔ ✔ ✔
PAIN Chronic/Neuropathic ✔ ✔ ✔ ✔
(Nausea/Vomiting) ✔ ✔
EMESIS
CANCER ✔ ✔
PTSD ✔
Exploring conditions to include in R&D Pipleine
Migraine / Headache ✔
Sleep Disorder ✔
23Future Steps CSE: VRT | OTC:VRTHF | FRT:2VP
• Results to date have allowed us to focus on the clinical trials we intend to
perform to establish efficacy of candidate strains in terms of their effects on
humans and treatment of human diseases.
• Preparation & publication of scientific literature for the education of the
medical community regarding cannabis therapies and to establish Veritas’
reputation and brand.
24Veritas Timetable CSE: VRT | OTC:VRTHF | FRT:2VP
Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2- 2018
• Continue obtaining varied cannabis cultivars and carry them through the research
process
• Determine potential cultivars for clinical testing
• Continue pursuing to become a License Producer under ACMPR
• Prepare patent applications based on results.
• Dec. 2017 – Obtain a Health Canada dealer’s production license through Cannevert
so as to produce extracts and import/export cannabis varieties for research
purposes as well as provide analytical services for licensed producers
• Dec. 2017 – Feb. 2018: Complete human trial of lead strain for pain
• Feb. 2018: Provide industry setting standards for medicinal cannabis
• March. 2018: Establish delivery and dosage optimizations
25Financials CSE:VRT OTC:VRTHF FRT:2VP CSE: VRT | OTC:VRTHF | FRT:2VP
TOTAL ISSUED & OUTSTANDING (M) 52 WEEK RANGE PRICE
39.598 0.23 – 0.81 0.81
DERIVATIVES: WARRANTS (M) YTD RETURN MARKET CAP (M CAD)
24.327 125% 32.07
DERIVATIVES: OPTIONS DATE OF MEASURE
3.016 27-Nov-17
FULLY DILUTED
* Graph courtesy of Bloomberg.com
66.941
26CSE:VRT | OTC:VRTHF | FRT:2VP
“Better Therapeutic Cannabis Use, Through
Better Science”
27CSE:VRT | OTC:VRTHF | FRT:2VP
CONTACT US
Veritas Pharma Inc
101-2386 East Mall
University of British Columbia
Vancouver, BC V6T 1Z3
Investor Relations Contact
Sam Eskandari
E: ir@veritaspharmainc.com
Website: veritaspharmainc.com
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