By Jamie Day
Animal Pharm News
October 15, 2010

Over 200 investors and industry delegates gathered for an intensive morning of presentations from 19 animal health businesses seeking development funding ranging from $300,000 to $15 million. The event was sponsored by the Kansas Bioscience Authority and the Missouri Technology Corporation, and supported by Brakke Consulting, Germinder & Associates and the Stinson Morrison Heckler LLP and Polsinelli Shugart legal firms as presenting sponsors.

Bob Marcusse, CEO of the Kansas City Area Development Council, opened proceedings by welcoming delegates and
presenters to Kansas City. He said that the Investment Forum is unique, offering the only opportunity in the world for
animal health entrepreneurs to share their business vision with potential investors and strategic partners. A selection
committee comprised of 15 individuals from academia, venture capital, research, entrepreneurial support and the private
sector has assessed over 30 applications for the event, short listing 19 candidates to make their pitch on the day. The list
has representatives of 13 US states, with two from Canada, and featured three making their second Forum appearance.

While companies had come to the Forum looking for funding, the Corridor was equally keen to attract more animal health companies to the Corridor, stressed Mr Marcusse. He wished the presenting companies success in raising capital, and hoped that once funds were secured, businesses would consider exploiting the region’s animal health infrastructure and highly trained workforce by locating their operations in the Corridor.

Jason Hall, executive director of elite sponsor Missouri Technology Corporation, explained that the MTC’s mission is to
partner with other organizations to promote technological development in the region, especially in the fields of agriculture, plant science, medicines and fuel sources. It worked through leveraging research and development, linking academics and commercial businesses.

The Animal Health Corridor stretching from Manhattan, Kansas to Columbia, Missouri is now an internationally recognized region that contains many of the world’s leading animal health companies, comprising one third of the $19 billion industry, he continued. The well attended Homecoming Dinner in Kansas City the previous night had underlined the vibrancy of the industry in the region. The MTC was proud to partner the Corridor and support it through training initiatives, as part of its mission to grow agricultural and biotechnology expertise in the area. It could also offer incentives to attract more businesses to the area, particularly encouraging young, enthusiastic companies to grow through its incubator facilities to become the major industry players of the future. He congratulated KCAHC for putting together the event and its impressive line up.

David Vranicar, president of Heartland Bioventures, commented that the large and diverse group of delegates at the
Investment Forum was encouraging – it was a good sign for the region and indeed the wider animal health industry. He
warned that the current economic climate should not lead prospective businessmen to “hesitate and be timid”, but rather
that they should “address head on the bioscience challenges”, both locally and globally, to protect agriculture and the food supply. The Kansas Bioscience Authority was investing over $600 million in bioscience throughout the state and region, as well as offering non-financial business assistance to help client companies develop the facilities and networks to get fully established. Animal Health was central to the region’s economy and the opportunities could only grow, especially with the federal National Bio and Agro-Defense Laboratory project secured for the region. This has already enabled the area to attract two other important animal health laboratories to the corridor.

A recent business survey had ranked Kansas fifth in the US for its biotechnology strength, behind such major players as
California and Massachusetts, concluded Mr Vranicar. The state had steadily ascended the league table over recent years, and there was still scope to achieve a higher place. There were lots of reasons to be optimistic in the future of the animal health industry, and its future development in the Kansas Corridor.
Industry consultant Ron Brakke, an instigator and prime mover of the Investment Forum concept reminded delegates that the objective of the forum was very simple – to put early stage companies in touch with investors. Every month saw
individuals and companies approach his business with products and technologies that could benefit animal health, but
without the funds to commercialize them. Equally, venture capital and equity funds could also find it hard to identify
promising opportunities – the Investment Forum is a great is opportunity for both parties.

Companies Presenting At The 2010 Kansas City Investment Forum

Advanced Animal Diagnostics – Durham, California: a hand held diagnostic device for the early identification of diseases
such as endometritis and mastitis in dairy cattle, beef and swine.

Arcanatura – the University of Connecticut: Plant extract-based and topically applied pharmaceutical products, using
innovative recyclable packaging, aimed at pet owners who embracing the sustainable life style. Social media is at the core of the marketing strategy.

Chemaphor – Ottawa, Canada: Biotech products for companion animals and livestock, including a fully oxidized beta
carotene product for the stimulation of immune systems and the exclusive Canadian license for Vet-Stem’s regenerative
cell therapy.

Compan Pharma – Olathe, Kansas. Pharmaceuticals for companion animals, including analgesics, NSAIDs and
antimicrobials delivered through an innovative segmented breakable tablet (Accu-Break) allowing more precise dosing for individual animals.

Free Stride Therapeutics – Ann Arbor, Michigan: A new pharmaceutical product with a three way action to prevent
common horse lameness problems caused by inflamed lower leg tissue and weakened bones.

GrowSafe Systems – Alberta, Canada: Radio frequency technology for the measurement of individual beef animal
performance and health within a feedlot system.

Immucell – Portland, Maine: A nisin-based treatment for mastitis in dairy cows that, subject to FDA approval, promises to
be an effective treatment with no milk withdrawal period and in organic production.

Imulan Biotherapeutics – Prescott, Arizona: Immune modulators for companion animal problems including canine atopic
dermatitis, feline stomatitis, cancers and inflammations.

Medi Productions – Durham, North Carolina: The Vet’Kiosk system providing the hardware and content to allow
veterinary clinics to screen relevant product and companion animal health information to clients in their waiting rooms.

Midway Food Animal Sciences – Grand Haven, Michigan: Development of a University of Chicago technology promising
a non-antibiotic alternative to the prevention and treatment of infections in farm animals.

Milk Smart – Eden Prairie, Minnesota: A system claiming to speed up milking times in dairy cattle, utilizing a teat canal
insert with a one way valve to halve the time it takes to relive a cow of its milk. Promises to improve milk quality and reduce mastitis infection.

Pet Care Specialists– Brentwood, Tennessee: A chain of retail store based pet grooming salons plus two online channels
to supply pet accessories and pharmaceuticals.

Piedmont Pharmaceuticals – Greensboro, North Carolina: Delivery of antiparasitics, analgesics and antimicrobials
through a proprietary palatable soft chew platform.

PreDent – Oklahoma City, Oklahoma: an annual vaccination to prevent periodontal disease in dogs, a less expensive
alternative to teeth cleaning.

Quincy Animal Health – Madison, Wisconsin: A calcium-based dietary supplement claimed to treat age-related
performance and disease in companion animals.

Small Animal Imaging of America – Provision of advanced veterinary diagnostic equipment (CT and MRI scanners) in
selected vet clinics for use by a wider network of partner veterinarians.

The Signaling Solution –East Shelburn, Indiana: An in-rumen radio frequency device to transmit real time information
about the state of the digestive process, allowing remedial actions to be taken on farm.

Vet-Stem – Poway, California. Stem cell therapy for dogs and horses, using stem cells harvested from the animals own
adipose tissue, processed remotely and returned for treatment.

VitalTrax – Charlotte, North Carolina: companion animal tracking device and monitoring service, aimed at ‘premium’ pet
owners, and accurate to within 6ft.