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IGY Immune Technologies and Life Sciences Inc
Executive Summary
Nutraceuticals Today – Pharmaceuticals Tomorrow
January 7th
, 2016
I. Overview:
IGY Immune Technologies and Life Science Inc.’s (“IGY‐LS” or the “Company”) patented platform technology solves the issue of
extracting IgY antibodies from egg yolk at a fraction of the cost of current methods. These antibodies have numerous applications,
including basic nutraceuticals, supplements for nutraceuticals and animal feed, pharmaceuticals, and solutions for bioterrorism and
pandemic preparedness. IGY‐LS’s key differentiator lies in being the only cost‐effective commercial process that allows the
extraction of broad spectrum high purity IgY from egg yolks, while preserving the remaining egg for further consumption in the food
industry.
The Company expects to build a $70 million base nutraceutical business over five years, and also enter several higher value specialty
nutraceutical, veterinarian and pharmaceutical markets, with combined sales potential well over a billion dollars. The Company is
seeking to raise capital of $5 – 7 million, which is expected to yield attractive returns to investors.
II. Product and Technology
For over 30 years, IgY has been available in two forms with the difference being in product purity. The first format is comprised of
high purity, specialized antibodies for lab use only, with a cost of $1,500 per dose (one dose = 25 milligrams). The second format
includes low‐grade powdered whole‐egg products (between 2‐4% purity), that have been available commercially in multiple forms
such as spray dried powder, or inserted as a functional food ingredient into yogurt, toothpaste, etc. The lower‐grade product costs
approximately $0.65 per dose and has issues with taste, added cholesterol, shelf life and the high amounts required to gain an
efficacious dose.
IGY‐LS’s technology allows it to extract JUST the IgY in a range of purities from 25‐95%, and cost about $.10 per dose, with the
possibility of reducing this further as the Company continues to refine its manufacturing process. The Company has one issued
process patent in the US, and is currently embarked on filing another global patent. In addition, the Company protects its intellectual
property through trade secrets. The Company’s products are orders of magnitude more potent for the same price as its competitors,
and further improvements to yield are planned. In addition, the products are free of all residual egg yolk, leaving the unused portion
of yolk available to be resold to the food industry.
Others have published and patented the fact that various vaccines can be combined with IgY antibodies and developed for specific
diseases. Currently the Company manufactures and sells IgY antibodies in various forms. However, the Company is in discussion with
various entities to develop particular vaccines, which can be injected into egg laying hens, so that the resulting antibodies would be
efficacious against specific pathogens and diseases (see later). From a cost stand‐point, while a single dose of a man‐made
monoclonal antibody costs $150+ per dose, IGY‐LS expects to produce antibodies for $0.10 per dose, allowing room for substantial
margins. This opens the door to a wide range of applications at much lower costs than monoclonal antibodies, and only available to
IGY‐LS by virtue of its particular manufacturing expertise.
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Matrix highlighting comparative attributes
Monoclonal Antibodies High Purity IgY Powdered Egg IgY Company’s IgY
Purity 99.8% 99.8% 4% maximum Up to 95%
Performance
Limited applications Only for lab use Very-limited
Wide range of
applications
Injectable Not for Human Use Not Injectable Not Injectable
Stability / Shelf-life Medium duration/cold
storage
Stable in small
quantities
Short-shelf life – up to
one-year
In excess of 10-years
Scalability Not scalable for large
applications
Not scalable Not scalable due to lack
of yolk recovery
Highly scalable
Cost Effective Least No Somewhat Highly
Est. cost per dose $150+ $1,500 $0.65 @ 4% conc. $0.10 @ 50% conc.
Pharma. R&D costs Extremely High Not Feasible Not Feasible Low
Pharma. Time lines 10-years plus Not Feasible Not Feasible Less than 5-years
III. Market Information:
Size
Nutraceutical supplements and Energy Drinks have continued to grow at double digit rates. Energy drinks have outpaced carbonates
with sales at $6.67B in the U.S. with an additional $4.47B in supplements. And the Sports supplement market is trending from the
gym to the grocery aisle. According to IRI, a market research firm, eight in ten Americans plan to save on medical costs by trying to
stay healthy. 72% are using supplements to meet this challenge. Finally, while 50% of Americans are concerned about their immune
system in general, less than 5% of the population is consistently using an immune supplement as they are concerned about efficacy.
Health Supplements grew by 7% in the past year, and are now over $12.8 billion.
Pharmaceutical sales for the top 25 global companies are in excess of $500 Billion. Challenges for the industry include patent
infringements, the cost of drug development and the growing demand for new antibiotics. IGY LS can answer the call to all three
issues. Its extraction process is protected by patents and trade secrets. And since IgY antibodies have GRAS status (Generally
Regarded as Safe), the Company can develop pharmaceuticals with reduced clinical trial costs. Lastly, antibiotic resistance is quickly
becoming a significant health concern of the World Health Organization and Governments around the world. Producing IgY
antibodies towards bacterial pathogens is discussed in the literature, but so far cost effectiveness of the process has created a
barrier to their introduction.
Indirect Competitors (Powdered Eggs):
Human Health: IGYNUTRITION (5% powdered egg).
Animal Health: EW Nutrition (5% powdered egg IGY)
IV. Sales & Marketing of Existing Products
Retail Brands
In 2012, the Company launched its first two commercial products, Vector450 and IgY Immune. Vector450 and IgY Immune are the
same product, marketed to two specialized end users: Vector450 is for athletes to aid in recovery and performance issues, while IgY
Immune is focused on the healthcare practitioner market and is positioned as an immune system supplement.
After generating annual sales of less‐than $100,000 per year in 2012‐2013, IGY LS signed a $4 million contract with PhD Nutrition for
distribution of Vector450 into over 700 US retail locations. To allow the contract to proceed, the company has to complete a double‐
blind clinical study which is expected to result in new product claims, at which point PhD Nutrition is expected to more than triple
their initial commitment, and further sales are expected to develop from other customers.
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VIII. Financial Forecast and Capital Required
Forecast for Base Business Only (excluding Specialty Nutraceuticals and Pharmaceuticals)
Year 2016 2017 2018 2019 2020
Revenue 1.1 17.9 40.2 57.7 72.7
Expenses 3.8 17.0 30.3 46.9 56.1
EBITDA (2.7) 0.8 9.9 10.7 16.5
Capital Required and Use of Funds
Licensing and Product Development $1,000,000
Key Hires (9) $700,000
Operations and Logistics $500,000
Working Capital $750,000
Infrastructure (Airdrie Equipment Purchase) $1,400,000
Sales and Marketing $900,000
Total $5,250,000
Share Structure
Shares Outstanding – 16.7 million; Fully Diluted – 21.2 million (no options issued as yet)
Last round financed at ‐ $1.00
Pre‐money Valuation – The Company seeks an increase from the last round
Investment type ‐ Class B common shares or other instrument
IX. Conclusions:
IGY‐LS possesses a superior, patented technology for the manufacture of IgY antibodies from hen eggs. The Company is poised to
build a $70 million base nutraceutical business from its existing products, and also has the opportunity to expand into specialty
nutraceuticals and pharmaceuticals with multi‐billion dollar sales potential.