|1||We develop therapeutics inspired by the data collected by animal and microbial genome projects.|
|2||Positioned to mine 32+ terabytes of genomic data for future drug precursors.|
|3||Founded by 2 PhD scientists (3 patents and 14 publications). 2nd-time founder (YCS17).|
|4||Patent-pending treatment for COVID-19 under evaluation by a pharma company for sponsorship.|
|5||Early pipeline of candidates help treat IBD, which affects 1.6M people and $15B market|
|6||Drug precursor for the treatment of NAFLD/NASH (“fatty liver disease”), $7B growing market.|
Shu and Joe are two all-star co-founders with deep technical expertise and prior startup expertise. By combining first-in-class comparative genomics and directed evolution, they have developed a library of therapeutic candidates for COVID-19 that neutralize the spike protein on SARS-CoV-2 and inhibit infection. Additionally, the peptide inhibitor can be functionally modified to prime the host’s immune system for response, cleverly doubling as both a therapeutic and immune-boosting combination, providing treatment throughout the entire course of disease progression. The team has computationally identified high-affinity drug candidates, partnered with a manufacturer, and is ready to initiate in vitro candidate evaluation. Finally, their platform can be repurposed for future uses besides biotherapeutics such as the agriculture and industrial biochemical markets.
Petri Bio is searching the gut microbiome for novel therapies for diseases that are tough to treat.
Why gut microbes? Because we know they can influence a diverse array of health outcomes, we just don’t know how. But we do know they make millions of unstudied chemical compounds that interact with the body.
Petri Bio believes the medicines of the future are among these compounds, waiting to be found.
To kickstart the future, we are building out a platform to screen microbial compounds for therapeutic effects.
Fatty liver disease has NO pharmaceutical treatment, and existing IBD treatments have very limited effectiveness. People suffering from these diseases deserve more options than what pharma companies have come up with.
As part of Wefunder’s “Fight the Virus” challenge, we’ve used our platform to look for compounds that can bind and neutralize the virus that causes COVID-19.
We are creating molecules called peptides that neutralize the virus without triggering the immune system — which is what a vaccine does. We hope that our solution will be useful in addition to vaccines so that we have a form of attack for those who experience trouble responding to vaccines (in particular, the immunocompromised and the elderly).
In just 3 months, we’ve been able to file a patent on these compounds, and have been selected for evaluation for a sponsorship from a major vaccine manufacturer to proceed with its development!
Our team is ready to hit the ground running.
Shu is PhD experienced in genetic engineering and molecular farming, a second-time biotech founder and YC alum.
Joe is a PhD biologist and published author on how gut microbes influence health and aging.
Our advisor John is a YC alum founder and has 7 years of experience as a biotech CEO, and provides invaluable insight navigating early-stage biotech.
We want to end this crisis as soon as possible...
...by whatever vaccine or therapy gets us there the fastest! Thus, we don't see ourselves competing with other treatments for COVID-19.
That said, it’s our hope that our offering can be used with an established pharmaceutical company’s product. We have already received some interest from a vaccine manufacturer and we are currently under evaluation for potential sponsorship.
The Fight the Virus challenge has given us a real-world crash course in the drug development process, from initial design to patenting and seeking pharmaceutical sponsorships, all in a three-month span.
With further funding, we have the experience and network now to do it again with IBD and fatty liver disease. We want to develop them as quickly as possible, and partner with pharmaceutical manufacturers to bring them to market.
With enough support, we can even further build out the platform and start screening compounds for other underserved diseases, and branch out into other microbe-inspired products.
We’re making drugs from an untapped resource of millions of bioactive compounds: the human microbiome. This gives us millions of “shots-on-goal” that traditional pharma companies aren’t making.
Invest as little as $100 to be with us on the journey from the very beginning, and let's build a healthier future for everyone!
Petri Bio has financial statements ending December 31 2019. Our cash in hand is $43,041.52, as of July 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $3,479/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We are making treatment for COVID19. COVID19 infects us by binding a protein on our cells. Our treatment is a molecule that binds to COVID19 and blocks it from entering our cells. It works by acting as a decoy, looking really close to the protein the virus wants to bind to in the body. It’s designed so that the virus wants to attack the molecule even more than our cells, and leaves our cells alone. Once the virus gets covered by the decoy, it’s harmless, and gets cleared by the immune system.
Our platform can rapidly create biomolecules to bind specific proteins. Currently, the most pressing use of this is in creating a decoy for COVID-19. However, the platform can be adapted to create molecules to interact with any kind of living tissue.
Five years from now, with COVID19 behind us, we hope to use the platform to create biomolecules for more “peacetime” applications, such as sustainable agrochemicals, while maintaining the expertise to treat outbreaks quickly should another arise.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Petri Bio, LLC was organized in the State of Delaware in November 2019. On August 28th, 2020, the Company completely converted into a C Corporation under the name Petri Bio Inc.
Since then, we have:
Historical Results of Operations
Our company was organized in November 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $50,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 3 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Petri Bio cash in hand is $43,041.52, as of July 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $3,479/month, for an average burn rate of $3,479 per month. Our intent is to be profitable in 24 months.
Before raising the first round, we were bootstrapping while generating preliminary data. In May, we raised 50k from The XX, and started placing more orders with the company fund. That's why most of the expense started since May.
In the next 3-6 months, if our minimum funding target is hit, we are expecting to see increased monthly expense to $10-15k, mainly because we are planning to do more experiments and also start paying ourselves a small salary.
Besides the crowdfunding campaign, we are applying to NSF SBIR grant and other non-diluted government grant funding opportunities.
The company will continue its research and development activities for its initial product and begin its production operations which require capital. There is no certainty that the initial financing will be sufficient to establish that the initial product line is viable, in which case additional development financing will be required. We would for sure optimize resources in order to be capital efficient. However, it’s critical that we invest in Rapid innovation and adoption of frontier technology to stay competitive; which will likely require significant funds in the future. Thus additional fundraising may result in your investment in the company being diluted to less shares due to the terms of future investment rounds
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Our products, therapeutics and food supplements, are most likely to be subject to government regulation (FDA, etc). While we anticipate our products will be in compliance with all applicable governmental regulations, there still may be risks that such laws and regulations may change with respect to present or future operations. Such compliance may be time consuming and costly, which would require more investments and increase the time needed for products to get to the market.
Timeline and return
Laboratory tests are technically complex and require sophisticated design, qualified equipment and highly trained personnel to operate. Despite our best efforts of mitigation, human or technical challenges could occur. Thus biotech product developments usually have relatively longer R&D cycles. Our business may not generate revenue for a long time, and your investment return is long-term.
The drug development and probiotics markets are highly competitive. Many of our competitors have been in business longer, have substantially greater financial, technical resources and may be better established in their markets. We can provide no assurance that our potential competitors will not provide products comparable or superior to those provided by us. Increased competition may result in price reductions, reduced gross margins and loss of market share.
Intellectual property plays an important role in the success of biotech companies by providing and protecting the rights to operate the business. As mentioned above, some competitors also have adequate resources to develop the IP portfolio in the meantime. Although we have run a “freedom to operate” scan, there’s no guarantee that our technology is absolutely free from being subjected to licensing fees in the future.
Potential future pivot
In order to respond to market changes, the Company’s management may from time to time make changes to the business of the Company. There are certain risks associated with such changes. As a strategic response to changes in the competitive environment, the Company may from time to time make certain pricing, service or marketing decisions or business combinations that could have a material adverse effect on the Company’s business, results of operations and financial condition.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Temporary Rule 201(z)(2) provides temporary relief from certain financial information requirements by allowing issuers to omit the financial statements required by Rule 201(t) in the initial Form C filed with the Commission. This offering has commenced in reliance of Temporary Rule 201(z)(2) and, as a result, the following must be disclosed: (i) the financial information that has been omitted is not otherwise available and will be provided by an amendment to the offering materials; (ii) the investor should review the complete set of offering materials, including previously omitted financial information, prior to making an investment decision; and (iii) no investment commitments will be accepted until after such financial information has been provided
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