Investor Presentation NASDAQ:BLFS Safe Harbor Statement This presentation contains forward-looking statements, including, but not limited to, statements concerning the company’s anticipated business and operations, the potential utility of and market for its products and services, potential revenue growth and market expansion, new products, and third party projections regarding the future market for regenerative medicine and cold chain packaging and instrumentation services. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including among other things, uncertainty regarding market adoption of products; uncertainty regarding third party market projections; market volatility; competition; litigation; and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law. 2 BIOPRESERVATION TOOLS FOR CELLS, TISSUES AND ORGANS Preservation of Biologic Material Drug Discovery Solid Organs Tissue Biopsies Regenerative Medicine Tumor Blood Bone Marrow Allogeneic Transplant Autologous Transplant Biobanking 4 Biopreservation Challenges Removed from the body - cells, tissues and organs enter a continuum of degradation – a race against time! Ex Vivo Time Function Function Viability - Quality Viability Survival Survival - Quantity Ex Vivo Time Ex Vivo Time Hypothermia (cold chain management) is used to preserve biologic integrity and functional performance. Traditional methods and tools are not optimized and offer limited protection from preservation-induced stress, injury, and death. 5 Biopreservation Tools Media and other tools designed to preserve biologics during ex vivo storage Shipping products designed to maintain stability of cells and tissues during transportation from patient to lab and back to patient Goal: maximize effectiveness of biologic based medicine 6 BIOPRESERVATION MEDIA Our Biopreservation Media Clinical grade preservation media made per GMP – facility and QMS certified to ISO13485 Formulated to mitigate molecular cell stress during refrigeration and freeze/thaw process Serum-free, protein-free, AOF; USP ingredients; US FDA Master Files Patented technology; performance superior to commercial and homemade alternatives; also protected by trade secrets 8 Cell Yield Comparison Preserved in traditional “home brew” Cells are mostly dead Preserved in BioLife HypoThermosol® Cells are vital, thriving Human mesenchymal stem cells isolated from bone marrow; condition of cells after 5 days of cold storage, then returned to culture conditions and assayed 24 hours later 9 Better Cell Yield = Cost Reductions Manufactured Cell Products Source Material LESS = MORE Doses Required Yield Yield Cost LESS Required to Achieve Desired Therapeutic Effect Cost 10 Limited Shelf Life = Cost Adder If distribution range is limited by short shelf-life - multiple production facilities required Increased CAPEX requirements Cell Factory Cell Factory Cell Factory Cell Factory Cell Factory 11 Longer Shelf Life = Lower Costs Our products extend shelf life to support worldwide distribution of cellular therapeutics Reduced CAPEX requirements Cell Factory 12 biologistex™ Intelligent, Informed, Precise Biologic Materials Management Cold Chain Biologistics Source Material Preservation Media Temperature Controlled Container Cell Factory Patient Temperature Controlled Container Preservation Media Manufactured Cell Product 14 Current Biologistics Reality TIME All vaccines and 70% of biologics are temperature sensitive Regenerative medicine therapies require precise thermal protection during shipment Limited temp stability of traditional shipping containers; cell viability declines; lost and unusable doses Limited use of real-time temperature monitoring and reporting during shipment 15 Biologistics Risks Rx Clinical Administering a thermally sensitive biologic dose that was exposed to unknown temperature excursions, packout errors or has exceeded it stability period $ Economic Cost of scrapping biologic source material or manufactured cell products Clinical trial impact from poor biologistics management; lost dose, poor shipping container performance, temperature excursions 16 Breakthrough Disruptive Technology Simple, reusable, super insulating shipping container Smart box – integrated cellular modem and payload monitoring electronics Cloud-hosted biologistics management app Easy packout process evo™ Smart Shipper 17 Current Solutions Inadequate Foam Coolers Vacuum Panel Shipper • Limited performance • Very large footprint; heavy • Technology essentially unchanged for over 25 years • Expensive to ship • Single use • Refrigerants must be preconditioned to multiple temperature ranges before use • Environmental impact • Complicated assembly 18 Biologistex CCMSM Cloud App Actionable Alerts LIMS/API EVO # 31099282738 Alert: Delivered to St. Luke’s Medical Center on 5/5/2015 at 20:08 PST 19 Web App – SaaS Business Model Biologistex CCMSM Real-time Location EVO # 31099282738 Alert: Package is within 5 miles of destination as of 5/5/2015 at 21:19PST Multiparameter Monitoring Configurable Alerts 20 SaaS Business Model Potential to build a base of thousands of shippers deployed throughout the world – each generating subscription revenue for rental use and data access 21 OTHER SERVICES Contract Manufacturing Services Utilizing excess production capacity Niche provider of aseptic media formulation, fill, and finish services Highly selective opportunities with strong alignment with our capabilities 23 OUR MARKETS 3 Strategic Markets BIOBANKING Umbilical cord blood banks DRUG DISCOVERY Pharmaceutical companies Adult stem cell banks Cell suppliers Tissue banks Toxicity testing labs Biorepositories Hair transplant physicians REGENERATIVE MEDICINE Commercial cell therapy and tissue engineering companies Hospital-based stem cell transplant centers University-based clinical research labs 25 Products Used in 185 Clinical Trials Each successful trial = 40 47 77 21 Pre-Clinical Phase I Phase II Phase III Solid Tumors 4 17 36 5 Hematologic Malignancies 8 8 11 2 Heart Disease 1 2 8 2 Stroke 0 0 4 0 Joint Disease 4 1 1 2 Vision Loss 1 1 0 0 Immune Disorders 8 9 9 2 14 9 8 8 $0.5-2M/year in revenue All Others 26 Biologistics Addressable Market $500 Million Estimated Addressable Market for Shipping Containers Specialized Packaging $2.6 Billion $5.1 Billion $4.9 Billion $3.2 Billion Transportation 2004 Source: IMS Health, Evaluate Pharma 2019 Source: iMarc Group, December 2013 27 Growing Demand for Biopreservation Media $820 Million $345 Million 2004 Major growth expected from Regenerative Medicine segment 2019 Source: Biopreservation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019 (Transparency Market Research, April, 2014) 28 INVESTMENT OPPORTUNITY NASDAQ: BLFS Complementary tools extend shelf life and increase survival of cells and tissues IP embedded in more than 185 clinical trials 25% annual core products revenue growth $8.5M cash and no debt at end of Q1 30 Significant Long-Term Growth Drivers $ Biopreservation unmet needs Increased regulatory scrutiny Increased commercial risk; trial failure Building the Pipeline Smart, high performance containers The Internet of Things; SaaS Model Regen Med Franchise Capturing Value Revenue and Profit Growth; Enterprise Value 31 500+ existing customers Products used in rapid growth biobanking and drug discovery markets >185 Regenerative medicine clinical projects and trials using BioLife products New SaaS offering will revolutionize biologistics management Significant Growth Potential $100M Current production revenue capacity 32 Investment Fundamentals March 31, 2015 Cash and Investments $8.6M Total Debt $0.00 Total Stockholder Equity $12.7M Shares Outstanding 12M 3/25/14 – issued 3.6M shares at $4.30 Options 1.4M most in the money Warrants 7.4M most at $4.75 – debt conversion/equity raise Average Volume ~100,000 shares Market Cap ~$25M Public Float 52% 33 NASDAQ:BLFS BioLife Solu5ons, Inc. 3303 Monte Villa Parkway, Suite 310 Bothell, WA 98021 For addi(onal ques(ons or comments, please contact: Michael Rice | President and CEO [email protected] | (425) 686-‐6003 Daphne Taylor | CFO, VP -‐ Finance & AdministraHon [email protected] | (425) 686-‐6002 34
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