The Gatherer Vol 11

Matt is an experienced Perth-raised biotechnology executive currently based in Philadelphia, USA. He has been the founding CEO or Executive Director of a number of pharmaceutical and health tech companies including iCeutica Inc, Botanix Pharmaceuticals, Churchill Pharma Inc, Dimerix Biosciences, Emyria, Respirion Pharmaceuticals and Orthocell. He has led the development of four products that have received FDA approval and has more than 25 years legal, IP and investment management experience. Matt has worked as an investment director for two venture capital firms investing in life sciences, technology and other sectors, and was general manager of Australian listed technology and licensing company ipernica (now Nearmap ASX:NEA), where he was responsible for the licensing programs that generated more than $120M in revenue. Todd Shand, Wrays’ Principal has had the privilege of working with Matt on a variety of projects over many years. He sat down with Matt to find out more about his career and more importantly, how a Perth boy ends up in Pennsylvania! Todd: Can you tell us about your company Botanix and the work you’re doing with CBD at the moment? Matt: Botanix was founded in 2016 as a dermatology company, focusing on the novel use of cannabinoids. Cannabinoids are chemicals that were originally found in the cannabis plant. There are more than 100 of them that potentially have some therapeutic use. We found some literature that suggested that CBD, (which is the second most common chemical after THC), could be useful in indications like acne and other skin diseases. Without the availability of animal models, (as there’s no other animal that gets acne other than humans), we

moved pretty quickly to clinical trials. Australia was a great place to do that, because of the regulatory system and availability of Phase 1 units. Botanix now has a technology that delivers drugs into the skin efficiently and a number of different CBD-based programs in acne, rosacea, and some antibacterial/anti-microbial applications. We’ve been able to demonstrate that CBD is really safe when applied to the skin, kills bacteria effectively and reduces inflammation. All those things are really important for different dermatological diseases. Todd: What prompted the move to the U.S.? Matt: I moved to the U.S. because we sold a company called iCeutica which we started in Perth with some co founders James Williams and Liddy McCall, using some University of Western Australia technology to make drugs smaller and help them perform better. We sold that to a private equity firm based in Philadelphia in 2010. The original arrangement was I would go there for two years, establish the lab, hand over the reins and come back. Four years later I said to my wife “Well, what are we doing now? Are we staying?” We’ve been there for 11 years. Todd: Working and living in the U.S. are there any lessons you have learned with regard to getting FDA approval for your products? Matt: When I started in this industry, it was all about “How do you get a product clinically developed and then approved by the FDA?”. But the reality is, getting a product approved is an important step, but in the scheme of things, probably a minor step, because of the pressure that’s now on the insurance companies in the U.S. You can now only get reimbursement if you’ve got something that’s really novel, addresses a problem that needs to be solved, and does so in a way that saves the health system money. You can’t just be a slightly different, or a better version of whatever is out there. From an investment point of view, that makes it really interesting because no longer are you investing in things that will give you a 2X, 3X return. You need to be investing in things that you are going to smash out of the park because not all of them will work, and not all of them will get reimbursed to the level that you think that they need to, to make money.

MATT CALLAHAN Li fe Sc iences Execut i ve

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