UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


  

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 23, 2013

 

TARGETED MEDICAL PHARMA, INC.

(Exact name of registrant as specified in its charter)

 

Delaware 001-53071 20-5863618
(State or other jurisdiction
of incorporation)
(Commission
File Number)

(IRS Employer

Identification No.)

 

 

2980 Beverly Glen Circle, Suite 301

Los Angeles, California

90077
(Address of principal executive offices) (Zip Code)

 

 

Registrant’s telephone number, including area code: (310) 474-9809

 

 

Not Applicable

(Former name or former address, if changed since last report)

 


 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

 
 

 

TARGETED MEDICAL PHARMA, INC. (“THE COMPANY”) CLAIMS THE PROTECTION OF THE SAFE HARBOR FOR “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS ARE STATEMENTS THAT ARE NOT HISTORICAL FACTS. SUCH FORWARD-LOOKING STATEMENTS, BASED UPON THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT OF THE COMPANY REGARDING, AMONG OTHER THINGS, THE BUSINESS OF THE COMPANY, ARE SUBJECT TO RISKS AND UNCERTAINTIES, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER FROM THE FORWARD-LOOKING STATEMENTS. THE FOLLOWING FACTORS AND RISKS, AMONG OTHERS, COULD CAUSE ACTUAL RESULTS TO DIFFER FROM THOSE SET FORTH IN THE FORWARD-LOOKING STATEMENTS: BUSINESS CONDITIONS IN THE U.S. AND ABROAD; CHANGING INTERPRETATIONS OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; REQUIREMENTS OR CHANGES ADVERSELY AFFECTING THE BUSINESS IN WHICH THE COMPANY IS ENGAGED; MANAGEMENT OF RAPID GROWTH; INTENSITY OF COMPETITION; GENERAL ECONOMIC CONDITIONS; THE COMPANY’S ABILITY TO RAISE NECESSARY FUNDS; AS WELL AS OTHER RELEVANT RISKS DETAILED IN THE COMPANY’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. THE INFORMATION SET FORTH HEREIN SHOULD BE READ IN LIGHT OF SUCH RISKS. THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE INFORMATION CONTAINED IN THIS REPORT.

 

Item 2.02  Results of Operations and Financial Condition.

 

On April 23, 2013, Targeted Medical Pharma, Inc. (the “Company”) issued a press release and expects to give a presentation that includes information from the Company’s financial results for the quarter ended on March 31, 2013. A copy of the press release is attached hereto as Exhibit 99.1 and a copy of the presentation is attached hereto as Exhibit 99.2.

 

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K (including the exhibits) is furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 7.01 Regulation FD Disclosure

 

Attached as Exhibit 99.2 to this current report is the form of presentation that the Company expects to use in connection with presentations to certain potential investors in the Company.

 

Item 9.01 Financial Statements and Exhibits

 

 

(d) EXHIBITS.

 

99.1 Press Release issued by Targeted Medical Pharma, Inc. dated April 23, 2013.
99.2 Presentation.

 

 
 

  

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: April 23, 2013

 

  TARGETED MEDICAL PHARMA, INC.
     
  By: /s/ William E. Shell             
    Name: William E. Shell, MD
    Title: Chief Executive Officer

 

 
 

 

Exhibit Index

 

99.1 Press release of Targeted Medical Pharma, Inc., dated April 23, 2013
   
99.2 Presentation

 

 

 

 

  Investor Contacts:
   
  ProActive Capital Group
Jeff Ramson, Founder & CEO
ramson@proactivecapital.com
 (646) 863-6893
 
Media Contacts:
 
PondelWilkinson
George Medici | gmedici@pondel.com
Ron Neal | rneal@pondel.com
(310) 279-5980

 

 

Targeted Medical Pharma Pre-announces 2013 Unaudited Q1 Revenue

 

--Company Reports Five Consecutive Quarters of Growth--

 

Los Angeles, April 23, 2013, Targeted Medical Pharma, Inc. (OTCQB: TRGM), a biotechnology company that develops and distributes prescription medical foods to physicians and pharmacies, today announced unaudited revenue of $2,811,000 for the first quarter ended on March 31, 2013, a 104% increase from the $1,375,000 reported for the same period of the prior year and increased from $2,396,000 of the fourth quarter of 2012.

 

“We continued to experience steady growth of new markets nationally, and an increase in both prescribing and insurance reimbursements for our high value medications,” said Chief Executive and Chief Science Officer William Shell, M.D. “Our proprietary medical foods are becoming more widely prescribed as they are appealing to both physicians and patients who are in need of safe and efficacious medications for the treatment of complex disease states.”

 

2013 Strategic Initiatives

 

The key initiatives we intend to pursue to continue accelerating revenue growth for fiscal year 2013 are:

 

·Expand sales and marketing efforts to increase
-prescribing in the Workers’ Compensation markets
-prescribing in the private insurance markets
-prescribing in the Medicare and Medicaid markets
·Conduct additional clinical trials for current and pipeline products
·Continue development of new products for neuropathy, chronic anemia, asthma, and diabetes

 

“This was our 5th consecutive quarter of growth and our most exceptional to date,” said David S. Silver, M.D., Targeted Medical Pharma’s President and Chief Operating Officer. The growing demand for our prescription medications by both patients and physicians who have long sought alternatives to more dangerous prescription drugs has helped support this sustained growth.”

 
 

 

About Targeted Medical Pharma, Inc.

 

Targeted Medical Pharma is a Los Angeles-based biotechnology company that develops prescription medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company manufactures 10 proprietary prescription-only medical foods, as well as 48 convenience packed kits, which pair a medical food and branded or generic pharmaceutical. These prescription medical foods and therapeutic systems are sold to physicians and pharmacies in the United States through the company’s subsidiary, Physician Therapeutics. These proprietary medications represent a novel approach to the management of certain disease states, focusing on safety and efficacy without the deleterious side effects of traditional, high dose prescription drugs. The company is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I. Targeted Medical Pharma also provides diagnostic testing as well as billing and collection services on behalf of dispensing physicians.

 

Forward Looking Statement

 

This press release may contain forward-looking statements related to the company’s business strategy, outlook, objectives, plans, intentions or goals. The words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Actual results could differ materially. Targeted Medical Pharma expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

 

#           #           #

 

 

Targeted Medical Pharma, Inc. Innovators in Pharmaceutical Technology April 2013

 
 

Safe Harbor Statement This document does not constitute or form part of an invitation or recommendation to subscribe for or purchase any securities of Targeted Medical Pharma, Inc . (“Targeted Medical Pharma”, “TMP” or “the Company”) . This document was prepared exclusively for the benefit and internal use of investors in order to evaluate the feasibility of a possible transaction or transactions and does not carry any right of publication or disclosure to any other party . This document is incomplete without reference to, and should be viewed in conjunction with, the oral briefing provided by TMP, the Company’s public filings with the Securities and Exchange Commission (the “SEC”) and press releases . This presentation may not be used for any other purpose without the prior written consent of Targeted Medical Pharma . In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or otherwise reviewed by us . The information contained in this document has been taken from sources deemed to be reliable . We do not represent that such information is accurate or complete and it should not be relied on as such . Any opinions expressed herein reflect our judgment at this date, all of which are subject to change . We have based the forward - looking statements on our current expectations and projections about future events . These forward - looking statements are subject to known and unknown risks, uncertainties and assumptions about us and with respect to specific factors identified in this presentation and in the Company’s filings with the SEC, specifically the reported risk factors, that may cause our actual results, levels of activity, performance or achievements expressed or implied by such forward - looking statements . Actual results in each case could differ materially from those currently anticipated in such statements . Non - GAAP Financial Measures In this presentation, TMP uses the non - GAAP measures adjusted EBITDA and adjusted earnings per share . TMP believes these non - GAAP financial measures are helpful in understanding its past financial performance and its potential future results . They are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with the consolidated financial statements prepared in accordance with GAAP . TMP’s management regularly uses these supplemental non - GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions . TMP believes that the use of these non - GAAP measures enhances the ability of investors to compare its results from period to period . Investors should note that adjusted EBIDTA and adjusted earnings per share, as used by TMP, may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by TMP’ competitors and other companies . The non - GAAP historical financial measures may exclude amortization of intangible assets, share - based compensation, transaction related costs, non - cash interest expense, loss on extinguishment of debt, and the effect of change in the timing of when certain revenue was recognized . The non - GAAP 2012 financial guidance may excludes amortization of intangible assets, share - based compensation, transaction and integration costs, purchase accounting inventory step - up adjustments and the tax effect of these adjustments to GAAP net income . Trademarks All products named in this presentation are protected under trademark including those not marked “TM” . Safe Harbor Statement, Non - GAAP Financial Measures and Trademarks TARGETED MEDICAL PHARMA 2

 
 

Investment Highlights TARGETED MEDICAL PHARMA 3 A Biotech Leader in the Rx - Only, Medical Foods Market

 
 

 

 
 

 

 
 

Five - component System Stimulates Uptake and Utilization of Amino Acids Targeted Cellular Technology TARGETED MEDICAL PHARMA 6

 
 

*First Known Oral Stimulation of Stem Cells ** Cumulative for 2010 to 2012, and including convenience kits Product Rollout and Pipeline TARGETED MEDICAL PHARMA 7 Product Indication In Development (est. launch date) Clinical Trials (est. launch date) Actively Promoted (% of monthly doses)** Theramine Fibromyalgia 42% Sentra PM Sleep Disorders with Depression 13% Trepadone Osteoarthritis 12% Sentra AM Cognitive Disorders / Fatigue 11% GABAdone Sleep Disorders with Anxiety 11% AppTrim and AppTrim - D Metabolic Disorders / Obesity 8% Hypertensa Hypertension 2% ListerV Viral Infection / Impaired Immunity 1% Percura* Neuropathy 1% ESS - 1818* Chronic Anemia Q1'2014 Pulmona New Asthma Q2'2014 STR Nasal Congestion Q3'2013 Oral IGF1 Diabetes Q3'2014

 
 

TARGETED MEDICAL PHARMA Consistent Biotechnology Development Track Record 8 • Obesity and Metabolic Syndrome with Apptrim® (2001) • Hypertension with Hypertensa® (2003) • Sleep disorders with Sentra PM® and GABAdone® (2003) • Cognitive dysfunction with Sentra AM® (2003) • Osteoarthritis with Trepadone® and Theramine® (2003) • Fibromyalgia with Theramine®, Sentra PM® and Sentra AM® (2005) • Chronic Back Pain with Theramine® (2008) • Gulf War Illness and PTSD with Sentra AM® and Sentra PM® (2011) • Peripheral Neuropathy with Percura® (2012) • Red Blood Cell Stimulation with ESS - 1818® (2012 - 2013) Clinical Studies Programs • Based on Targeted Cellular Technology (TCT) • Based on Oral Stem Cell Differentiation Formula (O - SDF)

 
 

Improve Patient Outcomes Reduce Negative Side Effects Lower Costs Nutritional Management of Chronic Disease Generally Recognized as Safe Clinical Trials Demonstrate Efficacy Reduce Dosage of Opiates Improved Adherence SOLUTIONS NEEDS Medical Foods: Meeting Physician & Patient Demand TARGETED MEDICAL PHARMA 9

 
 

The Basis for Low - Cost Research and Development Exemption No safety trials, only efficacy must be demonstrated Registration 60 products registered with the FDA Categorization 2 Categorized as an old drug Regulation 1 Regulated under the FDA’s medical food definition 1 Regulation • Must be administered under physician supervision • Must be labeled for the dietary management of a specific medical disorder • Must be for the dietary management of disease • Must be comprised of Generally Recognized as Safe (GRAS) ingredients • Must meet distinct nutritional needs not met by normal diet • Must adhere to FDA food and safety labeling requirements 2 Categorization • Holds GRAS / GRAE (Generally Recognized as Effective) status • Under the 1962 FDA Amendment • Under the Feb 17, 2012 Federal Register reaffirmation of Covered Drug definition Faster Time to Market TARGETED MEDICAL PHARMA 10

 
 

Two Platform Technologies TARGETED MEDICAL PHARMA 11 Targeted Amino Acid Technology (TAT) Targeted Cellular Technology (TCT)

 
 

Reduction in C - Reactive Protein with Theramine® TARGETED MEDICAL PHARMA 12 Primary Uses Improvement in Inflammatory Markers Source: Shell, et al.,“A Double - Blind Controlled Trial of a Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain”; American Journal of Therapeutics; 2012 108 - 114

 
 

Primary Uses Improvement in Disability Index Clinical Trial: Theramine® with Naproxen (Theraproxen®) TARGETED MEDICAL PHARMA 13 Source: Shell, et al.,“A Double - Blind Controlled Trial of a Single Dose Naproxen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain”; American Journal of Therapeutics; 2012 108 - 114

 
 

Improvement in Blood Concentration of Amino Acids Primary Uses Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) TARGETED MEDICAL PHARMA 14 Source: Shell, et al., “A Double - Blind Controlled Trial of a Single Dose Ibuprofen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain; Publication pending, 2010.

 
 

Clinical Trial: Theramine® with Ibuprofen (Theraprofen®) TARGETED MEDICAL PHARMA 15 0.09 - 6.15 - 9.08 -10 -8 -6 -4 -2 0 2 Ibuprofen Theramine Combination Change in Visual Analog Pain Scale (VAS) from Day 1 to day 28 (negative change indicates reduction in pain) Roland Morris Score After 28 Days n=122 p<(0.001) Source: Shell, et al., “A Double - Blind Controlled Trial of a Single Dose Ibuprofen and an Amino Acid Medical Food Theramine for the Treatment of Low Back Pain; Publication pending, 2010.

 
 

Pharmacoeconomic Analysis of Theramine TARGETED MEDICAL PHARMA Over 40,000,000 capsules administered with no reported G.I. bleeds or deaths. Use of Theramine Potentially Reduces the Cost of Care by >30% 16 Source: Silver DS, et al. Theramine (A Medical Food) Versus Non - Steroidal Anti Inflammatory Agents in Elderly Patients: A Pharmacoeconom ic Analysis/ Journal of Pharmacy Research 2012,5(5),2806 - 2809 Gaskin DJ, Richardy P. The Economic Costs of Pain in the United States/ The Journal of Pain, Vol 13, No 8 (August), 2012: pp 71 5 - 724 Theramine NSAID Product 633,600,000 $ 36,000,000 $ GI Bleed Treatment - 225,000,000 Protective Medications - 432,000,000 Laboratory Testing 1,000,000 75,000,000 Negative GI Workup - 144,000,000 Total 634,600,000 $ 912,000,000 $ Estimated Comparative Annual Treatment Cost

 
 

Clinical Trial: Sentra PM® and Trazodone (Trazamine®) Improvement in Sleep Quality Primary Uses TARGETED MEDICAL PHARMA 17 1 Pittsburgh Sleep Quality Index Source: Shell, et al., “Sentra PM and Trazodone for the management of Sleep Disorders” Journal of Central Nervous System Disease; 2012:4

 
 

Clinical Trial: Sentra PM® and Trazodone (Trazamine®) TARGETED MEDICAL PHARMA 18 2.80 18.86 - 12.64 - 32.27 -40 -30 -20 -10 0 10 20 30 Placebo Trazodone Sentra PM Combination Change in Visual Analog Scale (VAS) Negative change indicates reduced grogginess Trazamine Study: Subject Reported AM Grogginess p<0.01 n=110 Source: Shell, et al., “Sentra PM and Trazodone for the management of Sleep Disorders” Journal of Central Nervous System Disease; 2012:4

 
 

- 20,000 40,000 60,000 80,000 100,000 120,000 1 2 5 7 17 Effect of ESS - 1818 on Reticulocyte Count in Healthy Volunteers 1 Reticulocytes Stimulation of Red Blood Cell Precursors 1 Effect on one patient in pre - clinical trials. Pre - clinical trials resulted in an 80% response rate. Treatment Initiated Treatment Discontinued Primary Uses Stem Cells: Initial Data on ESS - 1818 (Pipeline) TARGETED MEDICAL PHARMA 19 Days Source: Initial data from an open label study of an oral amino acid - based erythrocyte stimulating system (ESS) for the treatment of chronic anemia; 2013.

 
 

Intellectual Property Highlights TARGETED MEDICAL PHARMA 1 Targeted Cellular Technology® is a five - component system the stimulates the uptake and utilization of amino acids. It enables efficacy from microgram quantities of amino acids. *First Known Oral Stimulation of Stem Cells 20 Seven Issued Patents Three Patents Pending □ 4 USPTO neurotransmitter - specific patents covering Targeted Cellular Technology® (TCT) □ 1 Japanese patent covering TMP’s Targeted Cellular Technology® □ 1 USPTO patent covering the convenience pack presentation □ 1 USPTO Billing methodology for physician dispensing of medication TAT - related patents: □ Stimulation of RBC production* □ Oral Insulin / Insulin Resistance* □ Neuropathy treatment

 
 

Innovators in Pharmaceutical Technology Financials and Team

 
 

Financial Snapshot – Fiscal Year 2012 TARGETED MEDICAL PHARMA 22 Summary Year ended December 31, 2012 Revenue $7.3 million Operating Expenses $10.2 million Shares Outstanding 23.0 million Shares: Fully Diluted 27.1 million Other Information Comments Cash and Cash Equivalents $0.3 million Contract Receivables $34.4 million supported by existing claims Non - Recurring Expense $1.4mm in non - recurring legal and accounting costs related to the re - filing of S - 1, restatement, settlements and salary continuation Notes Payable $5.6 million, 92% of which is owed to the CEO’s trust

 
 

Shipments : Contract Receivables Collections : Recognized Revenue Contract Receivables are amounts due but not yet recognized as revenue Monthly collections are approximately 1.5% to 2.0% Collected amounts impact bottom - line operating revenue almost directly Contract receivables are constantly rejuvenated by additional shipments $34.4 million as of Dec. 31, 2012 Supported by existing claims. Contract Receivables TARGETED MEDICAL PHARMA 23

 
 

Improving the Reimbursement Mix TARGETED MEDICAL PHARMA 24 75% 20% 5% 60% 35% 5% 55% 30% 5% 10% 35% 35% 15% 15% 2011 2012 2013 2014 Improving Reimbursement Diversification Workers Compensation Private Insurance Medicare Part D DOD / VA

 
 

Quarterly Revenue Growth TARGETED MEDICAL PHARMA 25 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 $1,375 $1,448 $2,077 $2,396 $2,811 Revenue Growth ($000's) 2012 Audited, 2013 Unaudited

 
 

 

 
 

Growth Objectives TARGETED MEDICAL PHARMA 27 2013 Objectives Turn long term contract receivables into cash and short term receivables Cambridge contract signed in Nov ’12, now performing Grow sales to the VA, DOD and Indian Health Service Achieved listing on the Federal Supply Schedule and orders started in April 2013 Increase sales to the Medicare and Private Insurance markets Already on Medicare Advantage and Supplemental and achieving increased judicial acceptance and treatment as a covered drug Grow same - store sales to existing client base Achieved listing on the Federal Supply Schedule and orders started in April 2013 Get products listed on the Medi - Cal preferred drug list Grow international sales Cultivate licensing and joint distribution agreements

 
 

Key Management TARGETED MEDICAL PHARMA 28 William Shell, M.D. Co - Founder, CEO and Chief Science Officer Extensive background in science and medicine, including roles as director of the Keesler Air Force Base Coronary Care Unit an d d irector of the Cardiovascular Biochemistry Research Laboratories at Cedars Sinai Medical Center. Served as chairman and Chief Science Of fic er of Interactive Medical Technologies and as Chief Science Officer of Beverly Glen Medical Systems. Dr. Shell is a graduate of th e U niversity of Michigan Medical School. Following his residency at the University of Michigan, Dr. Shell studied cardiology under Dr. Eugene Br aunwald at the University of California San Diego as part of a National Institutes of Health (NIH) Special Fellowship. David Silver, M.D. President and Chief Operating Officer Conducted more then 100 clinical trials and is a national expert on pain, fibromyalgia and PTSD. Served as an associate prof ess or at UCLA, as well as former Clinical Chief of Rheumatology and director of the Chronic Pain Rehabilitation Program at Cedars - Sinai Medical Center. Also served as associate director of the Osteoporosis Medical Center and is a member of the Scientific Advisory Committee of the American College of Rheumatology. Dr. Silver is a graduate of the Boston University School of Medicine. He did his residency training in internal medical at Northwestern University School of Medicine and his fellowship in Rheumatology at Cedars Sinai Medical Center. Amir Blachman, MBA VP of Strategy and Operations, Compliance Officer, Secretary More than fifteen years of operations, strategy, investor relations and finance experience. Mr. Blachman served as Director o f O perations for PeopleSupport.com (Nasdaq:PSPT) as well as a Broker Services Supervisor for Franklin Templeton Mutual Funds (NYSE:BEN). M r. Blachman’s cross - industry experience includes financial services, real estate investment and pharmaceuticals. Mr. Blachman serv ed as an instructor in the Israeli Air Force, he holds a BA in Psychology from UC Santa Barbara and an MBA from UCLA.

 
 

Independent: Maurice J. DeWald - Chairman of the Board and Compensation Committee • Retired board member and regional managing partner at KPMG • Serves as board director for several healthcare companies Kerry Weems - Chair of Nominating and Corporate Governance Committees • Former administrator for the Centers for Medicare and Medicaid Services (CMS); most recently served as vice - chairman of the American Health Information Community • Nationally respected health policy expert; 28 years in federal government Arthur R. Nemiroff - Chair of Audit Committee • Former Partner at BDO, USA LLP with primary focus on healthcare • Former director and member of audit committee for the City of Hope Medical Center Donald J. Webster - Director • Former general manager of procurement at Chevron Corporation; experience in supply chain management and production operations Non - Independent: William Shell, M.D. – CEO and Chief Science Officer David Silver, M.D. – President and Chief Operating Officer Kim Giffoni – Co - founder and EVP • President of NutraCorp Scientific, a product development company that marketed and sold nutritional products worldwide • Former CEO of Giffoni Development company, which built and sold luxury custom estates in Southern California Board of Directors TARGETED MEDICAL PHARMA 29

 
 

Investment Considerations HIGH DEMAND PRODUCTS ADDRESSING LARGE MARKETS 1 GROWING ADOPTION OF MEDICAL FOODS 2 ROBUST PIPELINE 3 STRONG AND VALUABLE INTELLECTUAL PROPERTY PORTFOLIO 4 PROVEN SAFETY AND EFFICACY THROUGH CLINICAL TRIALS 5 LOW SIDE - EFFECT PROFILE 6 LOW - COST DEVELOPMENT PLATFORM / FASTER TIME TO MARKET 7 STRONG REIMBURSEMENT 8 ESTABLISHED SALES 9 STRONG GROWTH POTENTIAL 10 TARGETED MEDICAL PHARMA 30

 
 

Contact 2980 Beverly Glen Circle, Suite 301 Los Angeles, CA 90077 Telephone: 310 - 474 - 9809 Fax: 310 - 531 - 7089 investors@tmedpharma.com Brand site: www.ptlcentral.com Company site: www.tmedpharma.com