NITESH CHHUTANI

COMPANY OVERVIEW
DESCRIPTION

Concert Pharmaceuticals is a clinical stage biotechnology company

pioneering the use of deuterium in medicinal chemistry.
DCE Platform (Deuterated Chemical Entity Platform) to design drug
compounds that selectively incorporate deuterium to potentially achieve
enhanced clinical safety, tolerability or efficacy in order to improve the
outcomes of patients with challenging diseases.
Targets a broad range of disease areas, including CNS disorders, renal
disease, inflammation and cancer.
By leveraging the large body of knowledge on known drugs, Concert focuses
its efforts on valuable opportunities where deuterium modification may
provide an important medical benefit.
Their Innovative approach has already resulted in multiple drug candidates
that have advanced into clinical trials. Each of these novel candidates was
designed to be improved with deuterium chemistry, and is based on an
approved drug, an advanced clinical candidate or a previously studied,
biologically active compound

PIPELINE

AVP-786
(Alzheimers agitation)
AVP-786
(Major Depressive Disorder)
CTP-499
(Diabetic nephropathy)
CTP-354
(Associated with SCI & MS)
JZP-386
(Narcolepsy)
CTP-730 (Inflammatory Diseases)
D-IVACAFTOR (Cystic Fibrosis)

Source: COMPANY OVERVIEW

Source: PRODUCT PIPELINE

PIPELINE TECHNOLOGY

FINANCIAL SNAPSHOT

Revenues
Operating Profit
Net Profit

Profit and Loss

DCE Platform consists of the proprietary know-how, techniques and

information that the Concert team has developed for nearly a decade.
Deuterated compounds can have an increased half-life in the body and
increased systemic exposure as compared to their corresponding nondeuterated analogs, and these properties can lead to therapeutic benefits
such as improved safety, efficacy, tolerability and convenience.
As a result of Concerts significant experience in deuterium chemistry and
pharmaceutical research and development, the Company is well positioned
to efficiently identify compounds that can benefit from deuterium
modification and create optimally-designed deuterated product candidates.
Potential advantages of selective incorporation of deuterium in drug
compounds include:

Improved metabolic profile.

Improved oral bioavailability.

Increased half-life.

Source: PIPELINE TECHNOLOGY

(All values in 000 and USD)

2011
19,467
(10,443)
(10,417)

2012
12,849
(17,742)
(19,576)

2013
25,408
(3,407)
(5,053)

49,403
(86,718)
8,380

33,129
(106,687)
20,644

39,773
(112,104)
15,500

(18,085)
22,901
6,985

(26,427)
(1,200)
12,168

13,018
(3,637)
(7,233)

2014
8,576
(28,905)
(30,006)

Balance sheet
Total Assets
Stock Holders Equity
Total Debt

84,454
54,825
7,101

Cash flow
Net Cash Flow-Operating
Net cash flow investing
Net Cash Flows-Financing

(29,760)
(44,452)
77,970

SNAPSHOT
HISTORY

MANAGEMENT TEAM
NAME

QUALIFICATION

DESIGNATION

PREVIOUS DESIGNATION

Roger Tung,
Ph.D.

B.A. in Chemistry,
Ph.D. in Medicinal
Chemistry

Co-Founder, President
and CEO

Founding Scientist, Vice

President of Drug
Discovery, at Vertex

James Cassella,
Ph.D

Ph.D. in Physiological
Psychology ,B.A. in
Psychology

Chief Development
Officer

Executive Vice President,

Research and Development
and Chief Scientific Officer
of Alexza Pharmaceuticals,
Inc.

Nancy Stuart

B.S. ,M.B.A.

Chief Operating Officer

Business Perations And

Business Development
Positions At Amgen Inc.

Ryan Daws

B.S. in Finance and

Organizational
Management
International M.B.A.

Chief Financial Officer

An Independent consultant

Robert
Silverman, J.D.,
Ph.D

J.D., Ph.D. in organic

chemistry a B.A.

Senior Vice President

and General Counsel

Legal related roles at

Millennium
Pharmaceuticals, Inc.

Source: MANAGEMENT TEAM

SHARE HOLDING PATTERN

DATE OF
ISSUE

PATENT NO.

PATENT NAME

INVENTORS

FEB 10 ,
2015

US8952016
2

Substituted xanthine
derivatives

Roger D. Tung,
Lexington, (US)

NOV 11 ,
2014

US 8883843
B2

Substituted isoindoline-l,3dione
Derivatives

Julie F. Liu, Lexington,

MA (US)

RA CAPITAL
MANAGEMENT, LLC

JUNE
24 ,2014

US 8759383
B2

Inhibitors of cholesterol
ester transfer protein

Roger Tung,
Lexington, MA

POINT72 ASSET
MANAGEMENT, L.P.

MAR 26 ,
2013

US 8404737
B2

Substituted isoindoline-1,3dione
Derivatives

Julie F. Liu, Lexington,

MA (US)

FEB
28,2012

US 8124646
B2

Substituted isoindoline-1,3dione
Derivatives

Julie F. Liu, Lexington,

MA (US)

BVF INC/IL

11%

59%

7%
6%
5%

SENZAR ASSET
MANAGEMENT, LLC
FRANKLIN RESOURCES
INC

OTHERS
Source: SHARE HOLDING

Source: ABOUT CONCERT

PATENTS

Share Holding Pattern

13%

Headquarters:Lexington,MA
Founded:April2006
Nasdaq Listed:CNCE
Employees:57
Strategic Collaborators:
AvanirPharmaceuticals
CelgeneCorporation
JazzPharmaceuticals
Proprietary Technology:
DCEPlatform
(DeuteriumChemicalEntityPlatform)
Issued U.S. Patents:67
CEO:RogerTung,Ph.D.
Chairman of the Board:RichardAldrich

Source :PATENTS

PIPELINE

PRE-CLINICAL

PHASE 1

PHASE 2
AVP-786
(Alzheimers agitation)

AVP-786
(Major Depressive Disorder)
CTP-499
(Diabetic nephropathy)
CTP-354
(Associated with SCI & MS)
JZP-386
(Narcolepsy)
CTP-730 (Inflammatory
Diseases)
D-IVACAFTOR (Cystic
Fibrosis)

Source: PIPELINE

PHASE 3

OVERVIEW
COLLABORATIONS

PRICE CHART
16

DATE

14

MAY 6 ,
2013

Lexington

CELGENE
CORPORATION

Strategic Collaboration with Celgene Corporation

to
Develop Deuterium-Modified Compounds

FEB 23
,2013

Dublin &
Lexington

JAZZ
PHARMACEUTICALS

Worldwide Licensing
Agreement to Develop and Commercialize
Deuterium-Modified Sodium Oxybate

MAR
5,
2012

Lexington,New
York

FAST FORWARD LLC

Collaboration to Advance Novel

Treatment for Spasticity and Pain in Multiple
Sclerosis

FEB 29
,2012

Aliso Viejo,
Lexington

AVANIR
PHARMACEUTICALS

License Agreement to
Develop and Commercialize Deuterium-Modified
Dextromethorphan for Disorders of the
Nervous System

FEB 2 ,
2011

Lexington

WALTER REED ARMY

INSTITUTE OF
RESEARCH

Evaluate Neuroprotective Drug Compound;

Advances Concerts R&D for Novel Drugs to Treat
Seizure-Generating Diseases

JUNE

Lexington

GLAXOSMITHKLINE

Alliance to Develop Novel Deuterium

Modified Drugs

PLACE

COLLABORATED WITH

12
10
8
6
4
2
0

2,
Source:
COLLABORATIONS
2009

REVENUE TREND

Revenue

REVENUE

30,000
25,000
20,000
15,000
10,000
5,000
0

2011

2012

YEARS
Source: FINANCIALS AND FILINGS

2013

2014

ABOUT

POSITIVE NEWS

16

14

12

10

Achieves $2
Million
Milestone for
AVP-786 Under
Avanir
Pharmaceutical
s Collaboration

FDA Lifts
Partial
Clinical Hold
for CTP-354,
A Novel
Drug
Candidate for
Spasticity

Positive Data
from Multiple
Dose Phase 1
Clinical Trial of
CTP-354, Lead
Candidate for the
Treatment of
Spasticity

FINANCIAL STATEMENTS
(All values in 000 and USD except ratios)

CASH FLOW STATEMENT

INCOME STATEMENT
INCOME STATEMENT

2011

2012

2013

License and research and development revenue

13967 11349 23408

Milestone revenue

5,500

Total revenue

CASH FLOW STATEMENT

2014
6576

1,500 2,000 2,000

19,467 12,849 25,408 8,576

Net Income

Net Cash Flow Operating

7,046
(10,443)
44

Investment income

(18)

Interest and other expense

Net loss
Source: FINANCIALS AND FILINGS

(10,417)

6,962
(17,74
2)
22
(1,856
)
(19,57
6)

7,608 10,809
(3,407 (28,90
)
5)
21
49
(1,667 (1,150
)
)
(5,053 (30,00
)
6)

Cash and Cash Equivalents

Investments
Total Current Assets
Fixed Assets
Other Assets
Total Assets
Current Liabilities
Total Liabilities
Other Equity
Total Equity
Total Liabilities & Equity
Source: FINANCIALS AND FILINGS

(26,42
(29,76
13,018
7)
0)

22,901

(1,200 (3,637 (44,45

)
)
2)

Cash Flows Investing Activities

Net Cash Flows Investing
Cash Flows Financing Activities
Net Cash Flows Financing
Source:
AND FILINGS
Net CashFINANCIALS
Flow

BALANCE SHEET
BALANCE SHEET

(18,085)

22,864 23,629 21,207 26,672

General and administrative

Loss from operations

2012 2013 2014

(20,44 (6,056 (31,69
(11,320)
4)
)
9)

Cash Flows Operating activities

Operating expenses:
Research and development

2011

6,985 12,168
11,801

(7,233
77,970
)

(15,45
2,148 3,758
9)

RATIOS
2011

2012

2013

2014

22,949
19,705
44,135
4,438
830
49,403

7,490
20,067
28,850
3,454
825
33,129

9,638
23,039
34,045
2,473
3,255
39,773

13,396
65,836
81,720
2,284
450
84,454

RATIOS
2011
2012 2013 2014
http://www.nasdaq.com/symbol/cnce/ownership-summary
ROE
ROCE
EPS
ROA

24,661
9
(86,71
8)
(62,05
7)

27,968
4
(106,68
7)
(78,719
)

39,633
4
(112,10
4)
(72,471
)

29,629
(14)

ROIC

54,825

Gross Profit Margin

84,454

Asset turnover Ratio

Book Value

-16%

13%

-4%

11%

30%

50%

8%

-93%

-8.12 -15.18

-3.91

-1.89

21%

14%

56%

-81%

-70%

-76%

-50% 953%

100% 100% 100% 100%

0.8

0.8

1.3

0.2

-67.6

-82.7

-86.8

3.5