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(OTCBB: SWME)
PATENTED, CLINICALLY TESTED, OVER-THE-COUNTER, NATURAL
CHRONIC AILMENT SOLUTIONS
EUROPE 2005
Swiss Medica Inc.
Raghu Kilambi, C.A.,
Chief Executive Officer
confidential
1
Disclaimer
Statements in this release that relate to future plans, events or performance are forward-looking
statements reflecting management's current expectations, assumptions and estimates of future
performance and economic conditions. All forward-looking statements are made in reliance on the safe
harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company
cautions investors that forward-looking statements involve risks and uncertainties that may cause
actual results to differ materially from those expressed or implied in such statements. The Company
disclaims any intention or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
The estimates and statements contained in this presentation were prepared on the basis of
assumptions and hypotheses which the Company believes to be reasonable but which are subject to
substantial risks, uncertainties and contingencies, some of which are difficult to predict and beyond the
control of the Company, and which may result in substantial modifications. No assurance can be given
as to the availability of any of the potential benefits described in this presentation and such information
should not be construed as a representation or prediction that the Company will achieve or is likely to
achieve any particular results.
The assumptions and projections have neither been compiled, reviewed, nor audited by the
Company’s independent certified public accountants and do not constitute a “Financial Forecast” or a
“Projection” as defined by the American Institute of Certified Public Accountants. All figures used in
the presentation are in US dollars.
confidential
2
Strategic Opportunity
Highlights
•
•
•
•
•
Patented, Clinically -Tested All Natural Over-The-Counter products
Elite OTC chronic ailment solutions NOT vitamins / supplements
3 Products targeting multi-billion $ pain relief and anti-depression markets
Replace / reduce the use of prescription and OTC products with side effects
Penetration in 19,000 doors and growing in leading North American retailers
Period Ending
Q2/2005A
Q1/2005A
FY 2004
$1.38 million
$1.13 million
$0.6 million
1.13 million
0.94 million
0.5 million
$(0.48) million
($1.22) million
($3.32) million
Revenue
Gross Margins
EBITDA
Market Cap (09/26/05)
$20.0 Million
Common Shares (O/S)
105 Million
Common Shares (F/D)
121 Million
52-Week Range
Current Stock Price (09/26/05)
$0.46 - $0.06
$0.20
confidential
3
Industry Market Share
Chronic Pain Market
Chronic Pain Suffers
(percentage)

350 million adults worldwide suffer
from Arthritis and chronic pain, in
some form. In the United States alone:
 45 million + suffer from
Osteoarthritis
 10 million + suffer from
Fibromyalgia
 5 million + suffer from
Rheumatoid Arthritis

65 million Americans suffer from
back pains and aches every year. Four
of five adults will suffer back pain at
some point in their lifetime.

Aging population will increase
incidence of arthritic conditions.

Additional conditions: Gout,
Tendonitis, injuries, back pain, foot
pain, neck pain, shoulder pain, etc
26%
46%
5%
23%
Osteoarthritis
Rheumatoid Arthritis
Fibromyalgia
Other
confidential
4
Industry Market Share
Chronic Pain Remedies Market
 In 2004, the worldwide market
for pain relief products was
estimated at $30 billion.
Estimated Worldwide Pain Relief
Remedies
(percentage)
OTC
19%
 Dominated by Rx/OTC pills
 Prescription pills $23
billion
 OTC pills $7 billion
Other
7%
Prescription
74%
 Consumers increasingly
concerned about side effects and
mixing prescription medications.
 Consumers increasingly desire to
self-treat pain relief and other
conditions.
confidential
5
Drug Industry Concerns
Troubles in $18 Billion Chronic Pain Market
 September 30, 2004: Merck & Co. withdraws Vioxx®
 Leading prescription pain pill: $2.5 billion revenues.
 April 7, 2005: FDA requests that Pfizer withdraw Bextra® from the market
 Also, requires Pfizer to include a boxed warning in the Celebrex label.
 July 22, 2005: PAIN MEDICINE; Survey on physician perception of Cox-2
Inhibitors
 In the wake of the withdrawal of Vioxx and Bextra from the market, fewer than
one in five primary care physicians plan to prescribe COX-2 Inhibitors for treating
chronic pain according to a nationwide survey by Pri-Med Institute.
 April 7, 2005, The FDA required that the package insert of all NSAIDs
(excluding aspirin) be revised to include a “boxed” or serious warning to
highlight the potential increase risk of cardio-vascular events.
 Pain Relief Market has new window open for a safe, natural topical
alternative
confidential
6
O24 Overview
 US-Patented, all natural, essential oil topical pain relief product line
 7 essential oils, patented binding process that eliminates artificial binders
that reduce absorption and efficacy
 Proven relief
 World class sports and medical endorsements from Europe, USA and
Canada
 Extensive hospital, physician, pain clinic, chiropractor use
 Medical & Double-Blind Clinical studies from Europe and North America
 Previously used in Europe for athletes and doctors/hospitals
 2 products: O24 Pain Neutralizer and O24 Fibromyalgia
confidential
7
O24 – Natural Ingredients
Patented binding process – No chemicals
confidential
8
O24 Medical Studies
confidential
9
Competitive Product Types
O24 vs Other Pain Relief Products
O24
Patented
All Natural
Lasting Relief
Medical Studies
Endorsements
No Side Effects
Economical
Fast Acting
OTC
√
√
√
√
√
√
√
√
Drugs
√
√
√
√
√
√
√
confidential
10
Retail Distribution
Currently in more than 19,000 stores
confidential
11
Swiss Medica Quarterly Store Count
Currently > 19,000 stores
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Q4 04
Q1 05
Q2 05
confidential
Q3 05
Q4 05
12
O24 Fibromyalgia
 Fibromyalgia syndrome (FMS) is estimated to affect between 2 to 4% of the world's
population
 Is the second most commonly diagnosed disorder in rheumatology clinics, second only to
osteoarthritis
 An estimate 10-million American have been diagnosed with Fibromyalgia
 Widespread and Chronic Pain
 Often effects all parts of the body
 Deep muscular aching, throbbing, twitching, stabbing and shooting pain
 Symptoms include:




Pain, including tenderness on pressure points
Fatigue
Sleep Disorders
Headaches
 Current pain treatment include acetaminophen or ibuprofen
 No other clinically tested product available in North
American pharmacies
confidential
13
O24 Fibromyalgia
 O24 Fibromyalgia is the FIRST product marketed specifically for
Fibromyalgia pain to be available in North American pharmacies. It is a
patented formula made from seven essential oils and has been clinically
tested and shown to be an effective and safe pain reliever.
 O24 Fibromyalgia is the FIRST and only product to earn the coveted
National Fibromyalgia Association’s Seal of Approval. The NFA has 2,000
affiliated support groups and sphere of influence of 1 million people.
 A double-blind clinical study conducted at University of Toronto found that
90 percent of patients who used O24 Fibro reported mild to markedly better
improvement versus only 7 percent who were given a placebo. A full 54
percent reported moderate to markedly better improvement
 Launches in North American pharmacies and retailers in fourth quarter
2005.
confidential
14
O24 Fibromyalgia – Q4 LAUNCH
confidential
15
Industry Market Share
Anti-Depressant Market
Worldwide $17 billion Anti-Depression Market
(percentage)
10%

28 million people in the US have
taken an anti-depressant

400+ million adults worldwide suffer
from some form of depression

Worldwide drug market for
depression treatment is more than $17
billion:
 Prescription Drugs –
 90% of the market
(significant side effects)
90%


Rx
OTC Products –
 10% of the market
(no proven treatments)
Swiss Medica will launch safe,
clinically proven alternatives to
current Drugs and OTC products
OTC
confidential
16
PMS Escape Market Opportunity

200 million women worldwide suffer
from mood and appetite symptoms
associated with Premenstrual Syndrome
(PMS)

PMS Escape is the only clinically proven
OTC product to address these conditions
 100% drug-free
 Pleasant tasting powered drink mix
 Carbohydrate / nutrient blend

PMS mood market opportunity is
estimated at more than $2 billion

World Class inventors of PMS Escape
also invented Serafem, the only
prescription drug for PMS mood
symptoms

Swiss Medica’s newly acquired ADBSI
division will address the PMS market
and expand to anxiety and stress
related treatments
PMS Intensity Level
(percentage)
Mild
30%
Severe
20%
Moderate
50%
confidential
17
PMS ESCAPE
confidential
18
PMS Escape: World-Class Clinical
Studies
confidential
19
Senior Management
Raghu Kilambi, C.A., Chief Executive Officer, Co-Founder
Chartered Accountant, seasoned executive and merchant banker
Co-founder of FutureLink, raised US$225 million of equity and built a $140 million
revenue business with a peak market cap of $2 billion
Grant Johnson, President & COO, Co-Founder
Seasoned operational & sales executive with a strong track record in selling
consumer products & services; Experienced in building sales and delivery teams
Bruce Fairbairn, Chief Financial Officer
Operational finance at Canadian subsidiaries of NYSE-listed companies including
CFO of both public and private Companies
Thomas Quinn, Executive Vice President, US Operations
Extensive experience in sales management and product launches with
pharmaceutical and consumer packaged goods leaders including Procter and
Gamble and Warner Lambert
confidential
20
Senior Management
Robert Esson, VP Robert Logistics and Supply Chain Management
Senior Operations and Logistics executive with experience in consumer products
(Quaker Oats) & cosmetics (BeautiControl Cosmetics).
Wendy Kramer, Vice President Anti-Depression Biohealth
Extensive background in generating new business for pharmaceutical and consumer
healthcare Companies including Allegan, Inc. Mead Johns Johnson
Laboratories and Warner Lambert/Parke Davis.
Rob Klein, Vice President Strategy
10+ years in strategic planning, budgeting, financing and business development for
various technology companies. In addition, was a ranked stock analyst
covering Canadian Internet technology sector.
Anne Dundon, Vice President Canadian Sales
Strong consumer marketing experience in both consumer packaged goods (Proctor &
Gamble, Revlon, and Bonnie Bell) and healthcare (Merck).
confidential
21
Sales and Marketing Strategy
DTC
• Radio Talk Shows
• TV, Newspaper, Magazine Editorials
• Sampling and Store Demos
• Targeted Advertising to Seniors &
Minorities
OPINION LEADERS
ENDORSEMENTS
• Doctors
• Athletes, Trainers
• Pharmacists
• Celebrities
Consumers
• Chiropractors
• Physiotherapists
RETAILERS
• Co-op Ads
• Detailing Pharmacists
• Displays
confidential
22
Product Sampling
confidential
23
PR oriented Radio Marketing
confidential
24
Print Endorsements of O24
confidential
25
O24 in the News
confidential
26
Manufacturing & Regulatory Standards
Using FDA-certified contract manufacturers to
manufacture O24 and PMS Escape
USA Regulatory:
O24 Classified as OTC drug: oversight of FDA/FTC
FDA monograph controls O24 claims
PMS Escape is approved for sale in the United States under the
DSHEA regulations (Dietary Supplement)
Canada Regulatory:
OTC: Health Canada
NHP registration for O24 and PMS Escape
confidential
27
Growth Strategy
 Enhance Product Portfolio:
 Depression, stress product (organic)
 Cholesterol, Diabetes, Heart Ailments
 Professional Channel Distribution:
 Pain Clinics, Chiropractors, hospitals, other professionals
 Physician, Pharmacist Detailing:
 Trade shows, samplers, conference speakers
 International Distribution:
 Insurance Reimbursement
confidential
28
Summary
 Elite, Patented, Clinically-Tested Natural Products for Chronic Ailments
 Drug /OTC Pain Relief & Depression markets have major side effect concerns
 Huge opportunity to capitalize on concerns about drug safety
 Expanding North American national retail presence
 Robust marketing campaign focused on sampling and public relations
 Growth from Professional Channels, additional products, international
distribution, insurance reimbursement
 Strong management team with significant experience
 Significant revenue growth / EBITDA positive by Q4 2005
 Sept 26th Market Cap: US$20million
confidential
29
Comparable Valuations
Public Companies
Company
Description
Year
End
Price
7/25/05
Market Cap
($ million)
P/E
LQA
P/E
FY
2005E*
P/Sales
(TTM)
OTC
Products
Nov
46.58
921.5
19.4x
20.3x
3.33x
Fibromyalgia
Phase III Clinicals
Dec
13.50
410.5
NM
NM
28.8x
Biotech Patents
Feb
2.88
214.9
NM
NM
No Revenue
Paincare Holding
(PRZ)
Pain Mgmt
Centers
Dec
4.18
215.3
26.1x
16.0x
4.76X
CV Technologies
(CVQ.T)
Patented
OTC Products
Sep
2.28
226.4
22.8x
NA
11.3X
Chattem
(CHTT)
Cypress Bioscience
(CYPB)
Biophan Techn.
(BIPH.OB)
confidential
30
Contact
Contact
Chief Executive Officer:
Raghu Kilambi
(416) 362-5775
[email protected]
Investor Relations:
David Jones
(705) 495 0022
[email protected]
www.swissmedica.com
www.O24zone.com
confidential
www.pmsescape.com
31