Investors

Company founder invented the Squarex treatment SQX770 to prevent cold sores and tested it on himself

“Using my background as a Ph.D. biochemist and patent attorney and one who has had frequent cold sores most of my life, I invented the Squarex treatment to try to prevent my own frequent cold sores. I applied the drug we have now called SQX770 once to myself at a time when I was having nearly constant cold sores, and in two weeks they became less frequent and much less severe. I then applied it again and the cold sores basically stopped completely. I have not had an outbreak in years. So I started Squarex Pharma around that idea and acquired patents for the invention.”

Clinical trials in 218 patients show Squarex drug SQX770 cuts outbreaks 2.6-fold and decreases their severity.

Now we have completed three clinical trials and the drug was significantly effective in preventing cold sores or improving immune response in all three trials. It reduced outbreaks 2.6-fold versus placebo and the fewer outbreaks that happened had an average severity of 0.3 in the treatment group versus 1.3 in the placebo group on a scale of 0-3. Both those differences were statistically significant.
And we found that the way it works is that it basically just improves the immune response to the herpes simplex virus. It increases expression of interferon gamma, the most important anti-viral cytokine, and it shifts the immune response to the herpes simplex virus that causes cold sores from an antibody response to a T-cell response. And we showed that all those things correlated with getting fewer outbreaks.

THIS IS A HUGE PATIENT POPULATION

  • Over 50% of the population are infected with herpes simplex virus-type 1 (HSV-1), the virus that causes cold sores or oral herpes.
  • 50 million Americans and about a billion people worldwide or 15% of the population have at least 1 outbreak each year.
  • 7 million in the U.S. have 6 or more outbreaks per year.

Nothing else is approved or even in clinical trials in the U.S. for the indication of preventing cold sore or oral herpes outbreaks!

  • Potential for greater than $1 billion annual revenue.
  • Large profit margin.
    The drug is a small molecule that is innexpensive to manufacture.
  • We conducted a survey of pharmacy benefit managers to ask if they would approve reimbursement of the Squarex drug SQX770. All of them said they would reimburse and the average reimbursement level was $116 per dose.
  • SQX770 is a small molecule and the cost to manufacture it, including a dosing kit, will be less than $10 per dose.

SQX770 is better than Valtrex®, the leading drug now for treating cold sores

  • Prevention is better than treatment.
  • More convenient dosing. One dose lasts for 3 months.
  • Decreases frequency and severity of outbreaks. Valtrex® does neither.
  • Valtrex is for treatment, meaning taking it when you have an outbreak, when you have an outbreak.
  • SQX770 is for prevention. Prevention is better than treatment.
  • Valtrex must be taken within 24 hours of feeling a tingle, probably before you can even get a prescription and have it filled.
  • SQX770 can be taken any time during or between outbreaks. One dose of SQX770 lasts for 3 months.
  • SQX770 prevents outbreaks. Valtrex, according to its prescribing information, has no effect on the number of outbreaks and does not prevent future outbreaks
  • SQX770 reduces the severity of outbreaks. Valtrex, according to its own prescribing information, has no effect on the severity of outbreaks.
  • The only effect of Valtrex is to reduce the duration of outbreaks by two days, from about 10 days to about 8 days. And to even have that effect you have to take the drug in the first 24 hours of a tingle, when you may not even be certain you are having an outbreak. SQX770 has not been tested for the effects on the duration of outbreaks

Strong patent position and exclusivity with exclusivity expected to past 2036

SquareX has owns or has exclusive rights to four issued U.S. patents that provide patent exclusivity to 2036 with the option to extend that two years for time spent in clinical trials. We have patent applications pending and planned that will extend that further.
One dose of SQX770 works for three months.

SQX770 is applied topically to a patient’s arm, not to the lip or a lesion. [photo of arm with bandage] The dermal patch is worn for 2-6 hours and then discarded. That has systemic effects on the immune system that improves the immune response to the herpes virus that causes cold sores. One dose lasts for three months. And the drug can be taken any time, during or between outbreaks.

Make money and help the millions of cold sore sufferers.

We are offering stock at $3.00 per share.
We plan to go public either through an IPO or a direct listing in July to November this year at a price per share of $4 to $6 per share.

$3.00 per share represents a valuation of the company of $22 million. This a large discount to what we think the company is worth. Our discounted cash flow model gives a net present value of the company of $119 million even with extremely conservative assumptions.

We are far along in the clinical trials process. After FDA approval of our lead drug for preventing cold sore outbreaks, which we think we can achieve in three to four years, the company should have a value of well over $1 billion ? And there is every reason to think the drug will be approved, since it has been significantly effective in 3 of 3 clinical trials so far and caused no serious adverse events.

We plan to go public and have filed a publicly available S-1 with the U.S. Securities and Exchange Commission for that purpose. So your investment is exected to be liquid in a less than 6 months.

SQX770 may be effective in other diseases.

This would further increase the value of the company.

The mechanism of action of SQX770 is just to improve immune response. That suggests it is likely to work against other diseases besides cold sores. It has already been shown to be effective against common warts, which are caused by another virus. There is every reason to believe it will work for genital herpes, and many genital herpes patients have reported that it has worked. And we have reason to believe it may work to treat yeast infections and have filed a patent application for that

Talk to the CEO, Hugh McTavish

A Treatment to Prevent Cold Sores

Dr. Hugh McTavish invented the SquareX treatment that will potentially be the first available treatment to prevent cold sores.

“Using my background as a Ph.D. biochemist and patent attorney and one who has had frequent cold sores most of my life, I invented the Squarex treatment to try to prevent my own frequent cold sores. I applied SQX770 to myself at a time when I was having nearly constant cold sores, and in two weeks they became less frequent and much less severe. I applied it again and have not had an outbreak in years. I started Squarex Pharma around that idea and acquired patents for the invention.”

Three Successful Clinical Trials Completed

SquareX has completed three clinical trials evaluating SQX770 as a treatment for cold sores. The drug demonstrated significant efficacy in preventing cold sores or improving a patient’s immune response in all three trials. It reduced outbreaks 2.6-fold versus placebo and the fewer outbreaks that happened had an average severity of 0.3 in the treatment group versus 1.3 in the placebo group on a scale of 0-3.

SQX770 improves a patient’s immune response to the herpes simplex virus. It increases expression of interferon gamma, the most important antiviral cytokine, and shifts the immune response to the herpes simplex virus that causes cold sores from an antibody response to a T-cell response.

The Opportunity

Dr. Hugh McTavish invented the SquareX treatment that will potentially be the first available treatment to prevent cold sores.

“Using my background as a Ph.D. biochemist and patent attorney and one who has had frequent cold sores most of my life, I invented the Squarex treatment to try to prevent my own frequent cold sores. I applied SQX770 to myself at a time when I was having nearly constant cold sores, and in two weeks they became less frequent and much less severe. I applied it again and have not had an outbreak in years. I started Squarex Pharma around that idea and acquired patents for the invention.”

Three Successful Clinical Trials Completed Disrupting A Market Leader

Dr. Hugh McTavish invented the SquareX treatment that will potentially be the first available treatment to prevent cold sores.

“Using my background as a Ph.D. biochemist and patent attorney and one who has had frequent cold sores most of my life, I invented the Squarex treatment to try to prevent my own frequent cold sores. I applied SQX770 to myself at a time when I was having nearly constant cold sores, and in two weeks they became less frequent and much less severe. I applied it again and have not had an outbreak in years. I started Squarex Pharma around that idea and acquired patents for the invention.”

Disrupting A Market Leader

Dr. Hugh McTavish invented the SquareX treatment that will potentially be the first available treatment to prevent cold sores.

“Using my background as a Ph.D. biochemist and patent attorney and one who has had frequent cold sores most of my life, I invented the Squarex treatment to try to prevent my own frequent cold sores. I applied SQX770 to myself at a time when I was having nearly constant cold sores, and in two weeks they became less frequent and much less severe. I applied it again and have not had an outbreak in years. I started Squarex Pharma around that idea and acquired patents for the invention.”

Disrupting A Market Leader
Strong Patent Protection

Dr. Hugh McTavish invented the SquareX treatment that will potentially be the first available treatment to prevent cold sores.

“Using my background as a Ph.D. biochemist and patent attorney and one who has had frequent cold sores most of my life, I invented the Squarex treatment to try to prevent my own frequent cold sores. I applied SQX770 to myself at a time when I was having nearly constant cold sores, and in two weeks they became less frequent and much less severe. I applied it again and have not had an outbreak in years. I started Squarex Pharma around that idea and acquired patents for the invention.”

Strong Patent Protection

Strong patent position and exclusivity expected to 2036 and beyond
SquareX owns or has exclusive rights to four issued U.S. patents that provide patent exclusivity to 2036 with the option to extend that two years for time spent in clinical trials. We have patent applications pending and planned that will extend that further.

A Large Addressable Market

● 50 million Americans and approximately one billion people worldwide have at least one cold sore outbreak each year.
● 7 million in the U.S. have 6 or more outbreaks per year.
● There is no approved therapeutic for the prevention of cold sore outbreaks
● Potential for greater than $1 billion annual revenue.
● Large profit margin.
● The drug is a small molecule that is inexpensive to manufacture.