Transcript Presentation Title Goes Here

Innovative Solutions for a Healthier World
NASDAQ: OMRI
Merrill Lynch
2007 Global Pharmaceutical, Biotechnology & Medical Device Conference
February 6-8, 2007
Robert Taub, President & Chief Executive Officer
SAFE HARBOR STATEMENT
This presentation contains forward-looking statements. Forward-looking statements provide
the company's current expectations or forecasts of future events. Forward-looking statements
include statements about the company's expectations, beliefs, plans, objectives, intentions,
assumptions and other statements that are not historical facts. Words or phrases such as
‘‘anticipate,’’ ‘‘believe,’’ ‘‘continue,’’ ‘‘ongoing,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’
‘‘potential,’’ ‘‘predict,’’ ‘‘project’’ or similar words or phrases, or the negatives of those words
or phrases, may identify forward-looking statements, but the absence of these words does not
necessarily mean that a statement is not forward-looking.
Forward-looking statements are subject to known and unknown risks and uncertainties and are
based on potentially inaccurate assumptions that could cause actual results to differ materially
from those expected or implied by the forward-looking statements. The company's actual results
could differ materially from those anticipated in forward-looking statements for many reasons,
including the factors described in the company’s filings with the SEC, including sections entitled
‘‘Risk Factors’’ and "Management’s Discussion and Analysis of Financial Condition and Results of
Operations" in the company's prospectus as filed with the Securities and Exchange Commission
on December 15, 2006 and the company’s most recent quarterly reports on Form
10-Q and its current reports on Form 8-K. Accordingly, you should not unduly rely on these
forward-looking statements, which speak only as of the date of this press release.
Unless required by law, the company undertakes no obligation to publicly revise any forwardlooking statement to reflect circumstances or events after the date of this press release or to
reflect the occurrence of unanticipated events. You should, however, review the factors and
risks we describe in the reports the company will file from time to time with the Securities and
Exchange Commission after the date of this presentation.
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OMRIX Biopharmaceuticals, Inc.
Biopharmaceutical player in protein-based biosurgery
and passive immunotherapy
 Diversified and synergistic business platforms
 Hemostasis in surgery backed by Johnson & Johnson
 Hyperimmunes provide upside potential
BIOSURGERY
IMMUNOTHERAPY
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INVESTMENT HIGHLIGHTS
 Establishing presence in growing and underpenetrated markets
− Expanding market share with commercialized biosurgery product, Evicel;
indication expansion expected in 2H07
− 2H07 Thrombin launch is anticipated to capture market share
 Continued growth and profitability
− 157% product sales growth ($41.2M YTD Q306 vs. $16.0M YTD Q305)*
− $16.7M net income in Q306 vs. net loss of $27.8M in Q305
 Visible pipeline of near-term and medium-term product launches
− Breakthrough biosurgery product in development addressing brisk bleeding: The Fibrin Patch
− Three immunotherapy product candidates to address emerging viral threats
 Long-term development, marketing & distribution partnership with Ethicon,
a Johnson & Johnson company and dominant player in surgical closure and wound
management, including hemostasis
 Differentiated business model
− Manufacturing commonalities and economies of scale between two business lines
− Development costs financed by third parties
* Total revenues: $45.7M YTD Q306, $19.2M YTD Q305
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OUR STRATEGY
BIOSURGERY
 Execute and expand Ethicon partnership
 Develop new products outside of Ethicon relationship
 Commercialize hemostasis products in new territories
IMMUNOTHERAPY
 Three tiered strategy:
− Launch current products in new territories
− Commercialize product candidates
− Rapidly respond to emerging viral threats
Achieve continued growth while maintaining financial discipline
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Innovative Solutions for a Healthier World
NASDAQ: OMRI
BIOSURGERY
MARKET OPPORTUNITY - HEMOSTASIS
Active hemostats is fastest growing segment
of surgical sealant market
$1,500 (WW)
$650 (WW)
Fibrin Sealants
&
Thrombin Products
$1,100
Fibrin Sealants
&
Thrombin Products
2006
Fibrin Patch
$400
2015
Note: $ in millions
Source: IMS data, Company Reports and OMRIX Estimates
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MARKET SHIFT:
TOWARDS ACTIVE AND ADVANCED HEMOSTATS
Passive Hemostats
Active Hemostats
Advanced Hemostats
Action: Mechanical
Action: Physiological
Action: Combination of
mechanical and
physiological
Fibrin Sealants
Gelatin/
Collagen-Based
Evicel™ / Quixil™
Cellulose-Based
Thrombin
Price per procedure
~$50 - $100
Price per procedure
~$200 - $500
Fibrin Patch
Price per procedure
TBD
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EVICEL (US) / QUIXIL (EU): LIQUID FIBRIN SEALANTS
Competitive Advantages
 Ease of use
− Ready to use in less than one minute (refrigerated)
• No mixing or reconstitution required
− Sprays or drips with same device tip
 Safety
− Human only, no bovine
− Needle-free device
Product Overview
 Used as adjunct to hemostasis in surgery
 Only commercially available bovine-free fibrin sealant
 Indicated for liver surgery in US; General hemostasis in EU
 2006 US Market: ~$100M, Growing 15% annually
Evicel Approval Timeline
1H06
Liver Surgery Indication
1H07
PV Surgery Indication
2H07
Kidney Surgery Indication
General Hemostasis Indication
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THROMBIN STAND-ALONE
Product Overview
 BLA submitted on November 6, 2006
 Designed for gradual onset of clotting
 Component of Evicel registered as stand-alone product
2006 US Thrombin Products Market
 >300M
Competitive Advantages
 Ease of use
− Ready to use in less than one minute (refrigerated)
• No mixing or reconstitution required
 Safety
− Human only, no bovine
 Partnered with Ethicon
− Launch, marketing to be powered by Ethicon leadership
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FIBRIN PATCH:
BREAKTHROUGH CONVERGENCE PRODUCT
Product Overview
 Phase 1 clinical trial commenced on December 6, 2006
 Addressing unmet medical need – Hemostasis in severe bleeding scenarios
 Convergence of Johnson & Johnson’s matrix with OMRIX’s biologicals
Global Market Opportunity
Biodegradable matrix
 $400M
Competitive Advantages
 Multiple development barriers to entry
 Lack of comparable product on market
or in development
“#1 project in Ethicon pipeline”
Embedded fibrin
sealant biologics
Dan Wildman, President Johnson & Johnson Wound Management
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WET LAB DEMONSTRATION OF FIBRIN PATCH
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JOHNSON & JOHNSON PARTNERSHIP OVERVIEW
Exclusive supply, distribution and development agreement
 OMRIX receives substantial revenue share
 Johnson & Johnson expands leadership position in hemostasis market
Manufacturing
Regulatory submissions
Sales & marketing
Development costs
ONE-STOP-SHOP
FOR SURGICAL HEMOSTATS
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BEYOND HEMOSTASIS: MARKET OPPORTUNITIES
OMRIX Biopharmaceuticals, Inc.
Ethicon
Internal Wound
Bleeding
Hemostasis
Other Partners
Fibrin
Polymer
Healing
Tissue
Engineering,
Repair,
Regeneration
Adhesion
Prevention
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BIOSURGERY PRODUCT PIPELINE
Program
Indication
Thrombin Stand-Alone*
General Hemostasis
in surgery
EvicelTM** (US)
General Hemostasis
in surgery
Fibrin Patch
Management of brisk bleeding;
use on active bleeding sites
Adhexil
Adhesion Prevention
Preclinical
Phase I
Phase II
Phase III
Spine
* Biologics License Application (BLA) submitted on November 6, 2006
** Currently approved as adjunct to hemostasis in patients undergoing liver surgery
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Innovative Solutions for a Healthier World
NASDAQ: OMRI
IMMUNOTHERAPY
THREE MARKETED IMMUNOTHERAPY PRODUCTS
HYPERIMMUNES:
Provide ongoing protection, prevention and treatment against viral threats
and infectious diseases
Vaccinia Immunoglobulin (VIG)
 Biodefense stockpile
 Treatment of smallpox vaccine related complications
Hepatitis B Immunoglobulin (HBIG)
 For the prevention of post liver transplant Hepatitis B
re-infection
POLYVALENT IMMUNOGLOBULIN:
Intravenous Immunoglobulin (IVIG)
 Currently marketed in Israel
 Phase 3 study in US by FFF Enterprises
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IMMUNOTHERAPY PRODUCT PIPELINE
Program
Indication
WNIG *
West Nile IG
Treatment of West Nile Virus
HT-VIG *
High Titer IG
Treatment of complications
related to vaccinia vaccination
Influenza IG **
Avian Influenza
IVIG (US)
Primary Immune Deficiency
Preclinical
Phase I
Phase II
Phase III
* We have received NIH Grants for the development of these product candidates
** Cooperative Research and Development Agreement (CRADA) with the NIAID
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UPCOMING MILESTONES
PRODUCT
1H07
2H07
Thrombin
Adhexil
sBLA Filing
US Launch
Kidney
General
Hemostasis
US IND
Filing
EU Launch
Clinical Development
US Launch
US Launch
Clinical Development
WNIG
IVIG (US)
2009
US Launch
EMEA Filing
Fibrin Patch
2008
Phase 3
Phase 3
US Launch
sBLA – Supplemental Biologics License Application
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FINANCIAL OVERVIEW
DELIVERING RESULTS
$20.0
70.0%
$15.0
$10.0
$5.0
$15.0
50.0%
40.0%
$10.0
30.0%
20.0%
$5.0
Gross Margin
60.0%
Product Sales
Product Sales
$20.0
10.0%
$0.0
$0.0
Q305
Q405
Q106
Biosurgery
Q206
Q306
Immunotherapy
0.0%
Q305 Q405 Q106 Q206 Q306
Product Sales
Gross Margin
Increased Product Volume Drives Margin Expansion
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INCOME STATEMENT & BALANCE SHEET
($ IN THOUSANDS, EXCEPT PER SHARE DATA)
9 Months Ended
September 30,
FY 2005
2005
2006*
2006
Guidance
Product Sales
$22,478
$16,019
$41,241
$54 - $55M
Total Revenue
$27,499
$19,171
$45,721
Operating Income (Loss)
($2,190)
($2,823)
$15,415
($27,712)
($27,805)
$16,668
($2.45)
($2.48)
Net Income (Loss)
Diluted EPS
$1.23 $1.40 - $1.45
* Note: Figures include $15.3 million sales under the UK contract for VIG.
As of September 30, 2006
Cash and short term investments
Total debt
Working capital
Total assets
$40,463*
$1,370
$47,511
$76,390
* Note: Figure does not include $51.4 million in net proceeds raised from follow-on offering and exercise
of over-allotment completed on December 14, 2006 and January 12, 2007, respectively.
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MANAGEMENT TEAM
Robert Taub, Founder, President and CEO
 30+ years pharmaceutical experience; serial entrepreneur
 Co-Founder of Octapharma AG, a privately-held plasma fractionator
 Monsanto; Revlon Health Care Group; Baxter International Inc.
Michael Burshtine, Executive Vice President, Chief Financial Officer
 Former PricewaterhouseCoopers partner
 Joined in 2004, has worked with OMRIX since 1995
Nissim Mashiach, Executive Vice President, Chief Operating Officer
 20 years device and biological experience
 Joined 1998, prior management experience in leading Israeli pharmaceutical and biotech companies
Orgad Laub, Ph.D., Vice President, R&D Immunotherapy
 25 years of biotechnology experience
 Chiron, Ares Serono and The Weizmann Institute of Science
Israel Nur, Ph.D., Vice President, R&D Biosurgery
 15 years of biosurgery experience at Octapharma and OMRIX
Hank Safferstein, Ph.D., JD, Vice President, Business Development
 15 years biotechnology and pharmaceutical experience
 Bristol-Myers Squibb; The National Institutes of Health; Acorda Therapeutics
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INVESTMENT HIGHLIGHTS
 Establishing presence in growing and underpenetrated markets
− Expanding market share with commercialized biosurgery product, Evicel;
indication expansion expected in 2H07
− 2H07 Thrombin launch is anticipated to capture market share
 Continued growth and profitability
− 157% product sales growth ($41.2M YTD Q306 vs. $16.0M YTD Q305)*
− $16.7M net income in Q306 vs. net loss of $27.8M in Q305
 Visible pipeline of near-term and medium-term product launches
− Breakthrough biosurgery product in development addressing brisk bleeding: The Fibrin Patch
− Three immunotherapy product candidates to address emerging viral threats
 Long-term development, marketing & distribution partnership with Ethicon,
a Johnson & Johnson company and dominant player in surgical closure and wound
management, including hemostasis
 Differentiated business model
− Manufacturing commonalities and economies of scale between two business lines
− Development costs financed by third parties
* Total revenues: $45.7M YTD Q306, $19.2M YTD Q305
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Innovative Solutions for a Healthier World
NASDAQ: OMRI
Merrill Lynch
2007 Global Pharmaceutical, Biotechnology & Medical Device Conference
February 6-8, 2007
Robert Taub, President & Chief Executive Officer
FIBRINOGEN CROSSLINKING
FIBRINOGEN
D:D
D
domain
E
domain
Thrombin
FPA
D:
D
XIIIa
g dimer
(XIIIa)
Thrombin
FPA
Crosslinked
fibrinogen
D:E
Crosslinked fibrin
FIBRIN
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