SKINOMICSTransforming Cutaneous Therapy byDefining the Human Skin Microbiome

January 2016

Presented by: Emma Taylor, MD | CEO

626-260-1230 | emmatayl@skinomicsinc.com

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Overview Skinomics

Illustration: Charis Tsevis

Skinomics

Skinomics is comprehensively defining the human skin microbiome for drug discovery in skin disease

Developing the first skin-derived topical probiotic therapeutic for acne

Like yogurt for the skin

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Opportunity – Antibiotic Alternatives

Antibiotic Market-$45 billion

CDC/NIH initiative to reduce Abx

– Multi-drug resistant infections

– Cost US $4-5 billion annually

– Dermatologists-long course Abx

Current Approach

– Race against time and bacterial evolution to develop new antibiotics

Why this fails

– Evolution-Millions of years

– Antibiotics-less than 100 years

– Nature is always one step ahead

Copyright CDC

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Opportunity – Antibiotic Alternatives

Illustration: Charis Tsevis

The Skinomics Solution

1. Human Natural Defense

– Trillions of commensal bacteria

– Proprietary informatics Database to comprehensively define the skin microbiome

2. Therapeutics

– Human skin-derived biologics Bacteriophage

Bacterial Probiotics

Prebiotics

3. Maintenance

– Probiotic

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Problem – Acne – First Skin Probiotic Model

85% Lifetime Incidence

Acne

$4.5 Billion market

40–50 million US

55–75% resistant to antibiotics

Long-course antibiotics are mainstay therapy

Dominated by generics

No personalized therapies

Side effects are common

No durable responses

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Solution – 1st Skin-Derived Probiotic Acne Therapy

Probiotic

Using NGS/qPCR we profiled the human microbiome and found there are healthy bacteria and acne-associated bacteria

Good bacteria outcompete bad bacteria

No side effects-normal commensual bacteria

Long term maintenance

Restore natural skin biome

Colonization by “Bad” Bacteria (Antibiotic Resistant)

Colonization by “Good” Bacteria

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Validity for Host Defense Mimicry

Fecal transplant as treatment for C. Difficile

Yogurt prevention of yeast infections with antibiotic therapy

Early life antibiotics increases risk of IBD

Probiotic/yogurt ingestionin pregnancy reduceschildhood atopy

Immunotherapy revolution in cancer therapy

Copyright Microbiome HQ

Good and Bad Bacterial Flora

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Acne – Initial Target Market

Global Acne Market ~ $4.5B by 2018

Global Acne Sales ($ Billions)

3.8

4.0

4.5

2012 2013 2018

Global Rx Acne Sales Are Expected to Reach $1.7B by 2016

Customer40–50 Million

USProduct

BeachheadMarket Product

Mild AcneMonotherapy

probiotic

Maintenance therapy probiotic

Moderate/Severe Acne

Probiotic as adjuvant therapy

Maintenance therapy probiotic

Currently No Acne Diagnostics or

Probiotic Therapies

First to Market with Skin-derived

Probiotic

Treatments Penetrate OTC

and Rx

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Acne

Eczema

Psoriasis

Rosacea

Expanded Probiotic Markets

$4.5 Billion

First to market with acne therapeutic claims probiotic

Evidence different microbial signatures

Recurrent Staph Aureusinfections in eczema

Evidence that bacteria are associated with inflammatory response in psoriasis

Overgrowth of Demodex is causative in Rosacea

$3.8 Billion

$8.9 Billion

$2Billion

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Competition Diagnostic

NGS SpeciesLevel

AntibioticResistance

Data

ResearchService Model

SkinFocus

Skinomics

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Therapeutic

ClaimsTreatment Maintenance

Lower

SE

Skin

Flora

Retinoids Rx NA

SA and BP OTC NA

OTC

ProbioticsNA

Aobiome Rx-Skin

Seres

TherapeuticRx-Gut

Evelo Rx-Onc

Skinomics Rx/OTC

Competition of Probiotic Therapeutics

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Competition

In 2009, the Human Microbiome Project & NIH Funded 15 Labs to Study the Human Microbiome

3 of Those Were Dermatology Focused

1 of Those Specialized in Acne

>$3 Million of NIH Funding Has Been Invested in Huiying’s Lab to Study the Human Microbiome

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Business Model Pathway to Development

Acne Probiotic

POC Trial

FDA Probiotic

Regulatory Trial

Product

Pipeline

3 arms

3 month treatment

3 month maintenance

Rx claims acne Acne probiotic

Probiotics for other skin diseases

Database for discovery

POS diagnostic

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Leadership Team & Bios

Management Team

Emma Taylor, MD-Co-Founder, President &CEO Assistant Professor, UCLA Medical

Center

Division of Dermatology

Department of Pathology

Inventor, combination Res/BP

Iman Famili, Consultant Business and Corporate Development Former work at Intrexon, GT life

sciences, Genomatica as executive director/VP cell systems informatics, director R&D with 12 years biotech experience

Scientists/Staff

Huiying Li, PhD-Co-Founder, Scientific Advisor Assistant Professor, UCLA

Molecular and Medical Pharmacology

Inventor diagnostic, bacteriophage, probiotic

Board & Advisors

TE

CH

Clive Taylor, MD PhD

Roy Doumani

Lyn Baranowski

William James, MD

Noah Craft, MD PhD

MA

RK

ET

RE

G

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Seed Financing

Why is This Attractive?

Accelerator access to boost capital allows matching for any funds we raise between $1-5 million from Viking Global Venture

Boost capital will fund proof of concept clinical trial with major inflection point

POC Trial

PreIND Studies

Formulation Development

License & IP Development

700 K

300 K

1500 K

250 K

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Current Operating & Fundraising Plan

* Includes licensing, salary, consulting, travel, legal, conferences, service providers

Activity

2016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Database

Probiotic

3 Mo 3 Mo 2 Mo 10–12 Mo 15 Mo

EstimatedProbiotic Budget

$150K $500K $500K

Technology

SkinomicsOps Budget*

$70K $70K $70K $70K $70K $70K $70K $70K

Financing (Budget x 2)

DataCollection

Study

Establish CROPartnership

Formulation/Regulatory

IND Phase I/II Phase III

LicenseIP

Seed Raise$1.5 million

$3 Million Total SEED ($1.5 Million Raise Matchedwith $1.5 Million Viking Capital)

Pre-IND meeting

SEED Financing Closed(can delay triggering boost until end of Q3)

Series A Financing Closed

(~$250K Covers)

Accelerator goals

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Company Long-Term Vision

Spinouts

Database

Probiotics Sublicensing/Partnership

$$$

Acne

Eczema

Psoriasis

Rosacea

Seborrheic Dermatitis

Bacteriophage

Vaccine

Drug Discovery

Diagnostic point of service test

Res/BP

Prebiotics

Anti-Aging