OGEN Research Report

Griffin Securities, Inc., 17 State Street, New Yor k, NY, 10004 x www.GriffinSecurities.
com 1
Please Review Disclosures on Page 29 of this Research Report
INITIATION REPORT
Biotechnology ,QGXVWU\November 27, 2012

KEITH A. MARKEY, PH.D., M.B.A.
212-514-7914
KMARKEY@GRIFFINSECURITIES.COM
ORAGENI CS, I NC. (OT CBB: OGEN)
I NTRE XON COL L ABORA TI ON ADDS SI GNI F I CANT VALUE
x Oragenics & Intrexon are targeting the multi-billion dollar antibiotics mar ket. The collaboration grants
Oragenics exclusive access to Intrexon`s advanced industrial engineering platform for lantibiotics, a family of
more than 50 naturally occurring antibiotics.
o The lead drug candidate is Oragenics`s mutacin 1140 (MU1140), which has a broad spectrum of
activity against such virulent bacteria as multi-drug resistant Staphylococcus aureus (MRSA),
Mycobacterium tuberculosis, and Clostridium difficile.
o Intrexon, the leading synthetic biology company, will contribute advanced t ransgene and cellular
engineering expertise to enable lantibiotic production. Success with MU1140 will position the
collaborators to produce lantibiotics as active pharmaceutical ingredients for a wide range of antibiotic drug
products.
x Recent $13 million fi nancing brings Fidel ity and Randal J. Ki r k as investors. We expect current cash to last
until mid-2014 supporting the Intrexon lantibiotics collaboration and growth of the oral probiotics products.
x Probiotics sales are poised for substantial growth. Oragenics has proprietary products based on beneficial
bacteria that protect against tooth decay and gum disease. Two clinical trials should soon show the Evora
line
favorably alters the bacterial composition of the human mouth, leading to better health, improved breath, and
whiter teeth. Meanwhile, EvoraPets should increase its penetration of the $47 billion pet market.

We are initiating coverage with a BUY recommendation and $5.00 price target.

Oragenics, Inc. (OTCBB:OGEN) is a biotechnology
company with commercial probiotic products for
humans and pets and an R&D pipeline focused on
antibiotics through a collaboration with Intrexon
Corporation. The four probiotic products contain the
first comprehensive patented probiotic technology for
oral care, ProBiora3
. These products are sold under

the Evora
brand with the support of Henry Schein,

Patterson Dental, and Benco Dental for the
professional dental markets and under and the private
labels of other distributors.
The R&D pipeline consists of proven lantibiotics that
are the subject of a recently announced, exclusive
channel collaboration with Intrexon. The two
companies are developing new therapies for the
multi-billion dollar antibiotics market to address the
growing health crisis posed by drug-resistant bacteria.
Source: BigCharts.com
Share Price (11/26/2012) $1.80
52-Week Price Low / High $0.75-$3.20
Mkt. Capitalization (issued) $49.3 million
Shares Outstanding (issued) 27.38 million
12-month Target Price $5.00
Average Daily Volume (3 mos.) 14,225
Website www.oragenics.com
Est'd 2012 Earn's (Loss)/shr ($0.40)
Est'd 2013 Earn's (Loss)/shr ($0.20)

GRIFFIN SECURITIES EQUITIES RESEARCH 2
Oragenics, I nc. November 27, 2012
TABLE OF CONTENTS
Investment Thesis ......................................................................................................................................... 3
Management Team ....................................................................................................................................... 4
Board of Directors ......................................................................................................................................... 4
Oragenics Key Investors ............................................................................................................................... 5
Recent Milestones ......................................................................................................................................... 6
Near-Term Milestones ................................................................................................................................... 6
The Rationale Behind the Oragenics Intrexon Collaboration..................................................................... 7
The Promise of Natural Antibiotics ................................................................................................................ 8
Lantibiotics A New Approach to Fighting Infections ............................................................................... 9
A Sound Basis for Pursing Commercialization of Mutacin 1140 ............................................................. 10
The Large Commercial Potential of Lantibiotics ...................................................................................... 12
Probiotics for Oral Health ............................................................................................................................ 14
The Challenge Posed by Oral Pathogens ............................................................................................... 14
The Probiotics Market and the New Regulatory Environment ................................................................ 15
ProBiora3 A Proprietary Combination of Probiotics ............................................................................. 17
Evora Products Well Positioned in the Market ..................................................................................... 18
New Clinical Data to Spur Demand for Evora Products .......................................................................... 20
SMaRT Technology .................................................................................................................................... 21
A Natural Approach to Weight Loss ............................................................................................................ 21
Investment Considerations.......................................................................................................................... 22
Financial Forecasts & Valuation ................................................................................................................. 23
Revenue Estimates ................................................................................................................................. 23
Evora products for human oral health .................................................................................................. 23
ProBiora3 for pets ................................................................................................................................ 23
MU1140 ............................................................................................................................................... 23
Annual Income Statements ..................................................................................................................... 24
Quarterly Income Statements .................................................................................................................. 25
Balance Sheet ......................................................................................................................................... 26
Valuation Analysis ................................................................................................................................... 27
Probiotics Contribution: ........................................................................................................................ 27
Lantibiotics Contribution: ..................................................................................................................... 27
Today's Market Capitalization: ............................................................................................................. 28
12-Month Price Target: ........................................................................................................................ 28
Disclosures .................................................................................................................................................. 29

INVESTMENT THESIS
Oragenics has three business initiatives based on its ground-breaking research in oral microbiology. Each
has considerable commercial potential and near-term valuation drivers that merit investors' consideration:
x DEVELOPMENT OF NATURAL ANTIBIOTICS ADDRESSES A HIGH-PRIORITY MEDICAL NEED. Through its work
with oral bacteria, Oragenics has gained considerable experience with compounds used by bacteria
to compete for resources needed to thrive. Among them is a family of more than 50 unusual peptides
called lantibiotics that have a broad spectrum of activity against such infectious agents as
Streptococcus pneumoniae, multi-drug resistant Staphyloccocus aureus (MRSA), Mycobacterium
tuberculosis, and Clostridium difficile. The Company's lead compound, mutacin 1140 (MU1140) has
demonstrated an ability to kill the growing number of drug-resistant bacteria that exact a toll on untold
thousands of people worldwide each year. Yet, no lantibiotic has been produced in sufficient quantity
or purity to complete clinical trials and be commercialized as a medicine to date. Intrexon provides the
potential means to achieve that end in a market that is primed to accept them where significant
valuations are being realized early in the development cycle.
o THE BASIS OF A LARGE-SCALE LANTIBIOTIC PRODUCTION SYSTEM SHOULD BE COMPLETED BY NEXT
SPRING. Oragenics is collaborating with Intrexon, a specialist in synthetic biology, to create an
approach for producing commercial-scale quantities of MU1140. Success in that endeavor will
pave the way for commencement of clinical testing of the antibiotic. It will also establish the
potential for a pipeline of new antibiotic drug candidates derived from the Intrexon technology. We
believe the investment community and other drug companies will quickly take note of this
important milestone.
o CLINICAL TRIALS OF MU1140 WILL LIKELY COMMENCE IN 2014. Preclinical work on this antibiotic will
probably be completed fairly quickly once a source is established, since Oragenics already has
promising data from studies performed on small quantities obtained from bacteria. Submission of
the IND, followed by results from the Phase 1 trial, will be important value-driving events for the
lantibiotic program.
x ORAL PROBIOTICS SALES ARE POISED TO ACCELERATE. An important part of this year's work has been
conducting two small clinical trials of the bacteria used in the Evora
product line to demonstrate this

combination of bacteria, dubbed ProBiora3
, offers a new approach to better health. The trials are

evaluating the impact of the probiotic on pathogens associated with dental caries and periodontal
disease, as well as its effect on breath odor and tooth whiteness. While the focus is on oral health,
the benefit may be extrapolated to a person's overall health, since the mouth is an entry point for
pathogens to the body. The initial data, which is expected in early 2013, should provide marketing
support for the two OTC products, EvoraPlus
for adults and EvoraKids
, as well as EvoraPro, which

is sold by dentists' offices. Meanwhile, the Company has been working to gain more distributors of its
Evora products and to expand the use of ProBiora3 via more private-label products in the $27 billion
worldwide market for probiotics.
x SUPPLY CONTRACTS SHOULD EXTEND THE USE OF ORAGENICS'S PROBIOTICS IN THE PET-CARE MARKET. The
keys to expanding the use of the Company's oral probiotic technology in the pet-care market are
additional distribution contracts and supply agreements with pet food manufacturers. Oragenics is
already working with several distributors worldwide to promote its probiotic formulation for improving a
pet's breath odor and tooth whiteness. We believe the contracting work that is under way will pay off
in the months ahead, leading to greater penetration of the $47 billion pet market.
ORAGENICS HAS THE WHEREWITHAL TO SUCCEED. Besides its expertise in microbiology, its leading position
in the oral probiotics market and its exclusive access to ntrexon's cutting-edge technology for lantibiotics,
the Company has ample cash to support operations through mid-2014. By that time, we believe the
probiotics business will begin generating excess cash, which should reduce, if not eliminate, the need for
external financing. A Phase 2 trial of MU1140, which may commence in late 2014, should be relatively
inexpensive since the antibiotic probably will be developed as a rapid-acting therapy for acute, life-
threatening infections of drug-resistant bacteria. We believe the time is right for savvy investors to take
positions in Oragenics (OTCBB: OGEN) and are therefore initiating coverage of with a BUY rating.

MANAGEMENT TEAM
John Bonfilglio, Ph.D. - Chief Executive Officer, President, and Director
x Recruited to transform Oragenics business in May 2011, with more than 30 years of experience
in the pharmaceutical industry
x Held the positions of President and CEO with Transdel Pharmaceuticals, Argos Therapeutics,
The Immune Response Corporation, and Peregrine Pharmaceuticals. Also served in senior
management positions with Cypress Biosciences, Baxter Healthcare, and Allergan
Michael Sullivan, CPA - Chief Financial Officer
x Joined Oragenics' management in February 2012 with extensive experience in finance
x Has held senior level financial positions with public and private companies including First
Advantage Corporation, Utek Corporation, eANGLER, and HSN Direct International
Martin Handfield, M.S., Ph.D. - Vice President of Research & Development
x Promoted to his current position in December 2011 after serving as Oragenics's Director of R&D
since January 2009
x Held the title of Associate Professor at the University of Florida College of Dentistry, where he co-
invented IVIAT and co-founded IviGene Corporation and Epicure Corporation
BOARD OF DIRECTORS
Frederick W. Telling, Ph.D. - Chairman of the Board
x Joined the Oragenics Board as a Director in June 2010 and accepted the position of Chairman in
February 2011
x Held senior executive positions during his 30 years with Pfizer and presently serves as a director
for Cell Therapeutics
John Bonfilglio, Ph.D. - Chief Executive Officer, President, and Director
Alan W. Dunton, MD - Director
x Has served on the Oragenics board since April 2011 and is also a member of the board of
directors of Targacept and principal owner of the biotechnology consulting firm Danerius, LLC
x Has extensive experience in the pharmaceutical industry in various executive positions with
Panacos Pharmaceuticals, Metaphore Pharmaceuticals, Emisphere Technologies, Johnson &
Johnson, Syntex Corporation, CIBA-GEIGY Corporation, and Hoffmann La Roche
Robert Koski - Director
x Joined the Oragenics board in June 2009 with more than 20 years of experience as a practicing
attorney
x Serves as a partner in the Koski Family Limited Partnership, which beneficially owns a significant
interest in Oragenics, and as a director for the Koski Family Foundation

Christine Koski - Director
x Has served on the board since June 2009, including holding the office of Chairperson between June 2009
and February 2011
x Serves as CEO of nMetrics, a director of Sun Hydraulics and Cheltec, and managing partner of the Koski
Family Limited Partnership, which beneficially owns a significant interest in Oragenics
Charles L. Pope, CPA - Director
x Joined Oragenics board in June 2010 with more than 30 years of experience in finance and accounting
fields, having held the position of chief financial officer for Aerosonic, Reptron, SRI/Surgical Express, and
Innovaro
x Is a director of Inuvo, Inc. and Innovaro, Inc.
ORAGENICS KEY INVESTORS
Complementing Oragenics management team and board are investors who participated in an equity
financing that garnered $13 million in August. Among these investors are the highly regarded Fidelity
biotechnology investment funds (1.67 million shares) and one of the world's most successful
biotechnology entrepreneurs, Randal J. Kirk (5.25 million shares), who is also the Chairman of Intrexon
Corporation.
1
Mr. Kirk's accomplishments include co-founding General Injectables & Vaccines (sold
to Henry Shein in 1998) and King Pharmaceuticals (acquired by Pfizer in 2010), and founding
New River Pharmaceuticals (sold to Shire in 2007) and Third Security LLC. He also served as
Chairman of Scios (sold to Johnson & Johnson in 2003) and Clinical Data ( sold to Forest Labs
in 2011).
The monies raised in August will support the work on lantibiotic production and accelerate revenue
growth of the probiotic products in the human and animal markets. Oragenics expects the cash on hand
as of September 30
th
(see page 26 for the balance sheet), to finance operations through mid-2014. By
that time, we estimate that the probiotics business will begin generating excess cash and milestones
related to MU1140 should have already been achieved through the Intrexon collaboration.

1
Oragenics Schedule 14A filed September 17, 2012.

RECENT MILESTONES
Jan,'11 Oragenics enlists a distributor for its four probiotic products in Poland
Jan,'11 Probiotic products marketer signs deal to incorporate ProBiora3 into private-label products
for Denmark and Finland
Feb,'11 Patterson Dental agrees to distribute EvoraPro, EvoraPlus, and EvoraKids to dentists in
North America
Apr,'11 U.S. Patent & Trademark Office grants the first patent on ProBiora3
Oct,'11 Frost & Sullivan honors Oragenics with its 2011 North American Product Differentiation
Award for ProBiora3
Feb,'12 Phase 1 study of LPT3-04 shows that the weight-loss product is safe and well tolerated by
overweight and mildly obese adults, and it provides early evidence of efficacy
Feb,'12 Independent trial of EvoraKids yields excellent safety profile and a significant decrease in
bacterial species associated with dental caries over a 48-week treatment period
Apr,'12 Oragenics signs a distributor for its four probiotic products in Japan
Jun,'12 Oragenics forms exclusive channel collaboration with Intrexon Corporation to develop a
production system for lantibiotics via synthetic biology
Jun,'12 Distribution partnership is formed for the use of ProBiora3 in private-label probiotic products
for adults and kids in Mexico
Jun,'12 EvoraPro is launched in 90-day supply
Aug,'12 A 3-year distribution agreement is signed with Central Business USA for the distribution of
ProBiora3 products for humans and pets in South America
Aug,'12 Balance sheet is strengthened via $13 million equity offering and conversion of $2.5 million
of debt to equity
Nov,'12 An exclusive distribution agreement is signed with Pharmacos Exakta, a subsidiary of Opco
Health, for Probiora3 in private-label pet products
NEAR-TERM MILESTONES
Q4,'12 Complete a trial of ProBiora3 to provide clinical evidence that EvoraPro and EvoraPlus
improve oral bacteria, teeth whitening, and breath odor
Q4,'12 Initiate 1-year clinical study of EvoraKids in 2-year old children in Scandinavia
Q1,'13 Sign international distribution agreement for ProBiora3
Q2,'13 Complete a production system for lantibiotics via the Intrexon collaboration
H1,'13 Present data from the ProBiora3 clinical trial at a dental meeting
Q3,'13 Partner with an experienced pharmaceutical company to support large-scale production
and development of MU1140
Q4,'13 Complete expansion of the bacteria for producing MU1140
H2,'13 Submit documentation supporting the use of ProBiora3 as a food additive in Europe
2014 Initiate Phase 1 clinical study of MU1140

THE RATIONALE BEHIND THE ORAGENICS - INTREXON COLLABORATION
ntrexon Corporation is a privately held company, established by one of the world's most successful
investors in biotechnology, Randal J. Kirk, to realize the full potential of synthetic biology. The company
combines platform technologies in biology, engineering, and informatics to facilitate the rational design
and programming of DNA, proteins, and cells to rapidly produce a desired function for human, industrial,
agricultural, or veterinary applications. ntrexon's areas of expertise include the following:
x UltraVector
Platform that utilizes a library of modular components to customize complex

transgene assemblies
x Genomic engineering that offers complete control over gene expression
x Protein engineering that improves upon a native protein's functionality
x Cell identification and selection based upon a laser-enabled analysis and processing
instrumentation
x Cell system informatics that utilizes a proprietary software and database for mapping cellular
pathways to facilitate the design of new gene targets or product pathways
Given the breadth of these best-in-class capabilities, it is not surprising that Oragenics entered into a
collaboration with Intrexon last June. Through this agreement, Oragenics intends to develop and
commercialize lantibiotics, a family of potent, broad-spectrum antibiotics, as active pharmaceutical
ingredients (APIs) for the treatment of infectious diseases in humans and companion animals. Intrexon is
responsible for technology discovery efforts, cell-engineering development, and certain aspects of the
manufacturing process. Oragenics is responsible for conducting preclinical and clinical development of
candidate lantibiotics, as well as for other aspects of manufacturing and the commercialization of the
product(s). The first compound in development is MU1140. Using ntrexon's bioindustrial processes,
Oragenics expects to produce enough API to advance development of this promising lantibiotic. Figure 1
provides an overview of the solution Intrexon provides Oragenics for its lantibiotic franchise.

Figure 1. Oragenics' SoIution for CommerciaI-Scale Lantibiotic Production
Challenge: Natural production of lantibiotics by bacteria yields amounts insufficient for commercial use, and Oragenics has not
as yet been able to produce enough of these molecules via its methods to obtain a commercially viable supply.
Solution: The production of lantibiotics through cell engineering and proprietary technologies (combining biology, engineering
and informatics) provided by Intrexon.
Source: Griffin Securities & Oragenics

We believe successful completion of this initial bioindustrial production method will constitute an important
valuation inflection point for Oragenics, since it would be first time a pharmaceutical-grade lantibiotic will
be produced in commercial quantities. As discussed below, MU1140 has considerable commercial
potential. Early success here will also position the Company to quickly advance additional lantibiotic
candidates and develop a potentially very valuable pipeline of antimicrobial medicines.
THE PROMISE OF NATURAL ANTIBIOTICS
Drug resistant microorganisms are a major and growing health threat that has been gaining greater
attention over the past decade. A part of the problem can be traced to inappropriate use of antibiotics
(e.g., excessive prescribing or incomplete dosing) that favor the selection of drug-resistant strains.
Another contributor has been a lack of interest in antibiotics, partly because chronic diseases for which
there have been few options have become treatable via the latest technologies. (See Figure 2.
2,3
)
The World Health Organization considers antimicrobial resistance to be one of the three greatest threats
to human health, and reports from the Infectious Diseases Society of America and European Center for
Disease Prevention & Control indicate that there are too few antibiotic candidates under development to
treat the infectious agents posing the greatest threat (i.e., Enterococcus faecium, Staphylococcus aureus,
Klebsiella pneumonia, Acinetobacter baumannii, Pseudomonas aeruginosa, and Enterobacter species).
The Infectious Diseases Society of America has launched a collaboration with other healthcare
organizations to promote the development of 10 new antibiotics by 2020.
The U.S. federal government also has a large number of initiatives under way with the aim of improving
surveillance, preventing infection, expanding our understanding of the threat through research, and
facilitating new drug development.
4
The last of these goals was recently addressed in the FDA Safety and
Innovation Act via a provision for the Generating Antibiotic Incentives Now (GAIN) program. As set forth
by this legislation, the FDA is to give any antibiotics meeting certain criteria a six-month priority review,
fast-track approval, and an additional five years of exclusivity. These measures, plus better guidance on
the drug development process, should reduce antibiotic drug development time and provide the potential
for an extra financial reward.
Oragenics is well positioned to benefit from the growing interest in new antibiotics. It has many years of
experience working with bacteria-derived compounds called lantibiotics. These small peptides, which
have a broad spectrum of activity, probably evolved as bacteria competed for food and hospitable
environments. The first lantibiotic discovered was nisin in 1927, which paved the way for the identification

2
Flamm, RK, The challenge of antimicrobial resistance in human health. Presented at the 2011 Antibiotic Use in Food Animals
Conference, October 2012.
3
IDSA. Combating antimicrobial resistance: Policy recommendations to save lives. Clin Infect Dis 2011; 52 (suppl 5): S397.
4
A Public Health Action Plan to Combat Antimicrobial Resistance, 2011. Accessed at www.cdc.gov/drugresistance/annualReports.html
Figure 2. Left panel: Incidence rates of MRSA bacteremia reported by U.S. medical centers to the SENTRY Program provide
an example of the upward trend in drug-resistant infections. Right panel: FDA approvals of antibiotics over the past three
decades declined, resulting in few new drugs available to combat bacterial infections.
Source: Flamm, RK.
2
and IDSA
3

of more than 50 related compounds. Attempts to commercialize these natural antibiotics have been
largely unsuccessful, with nisin being the one exception, but that is only because it is used in minute
quantities as a food preservative. The single greatest challenge to developing lantibiotics for medical
purposes has been their production they are so potent that they kill the bacteria producing them at
concentrations below the levels needed for large-scale manufacturing. Accordingly, lantibiotics remain a
potentially huge, untapped treasure trove in the field of pharmaceutics. Oragenics recent exclusive
collaboration with Intrexon was designed specifically to address this manufacturing challenge. We expect
Oragenics to leverage Intrexon's advanced synthetic biology platform technologies to unlock this
enormous opportunity.
LANTIBIOTICS - A NEW APPROACH TO FIGHTING INFECTIONS
Lantibiotics are a group of compounds within a broader group of toxins called bacteriocins that are used
by a bacterium against other microorganisms. Lantibiotics, which number more than 50, have been
categorized into subgroups based on differences in their structures and biological activities, but one
common feature is the unique amino acids called lanthionine (Ala-S-Ala circled in yellow in the A ring)
and methyl-lanthionine (Abu-S-Ala circled in orange in the B ring). Depicted in Figure 3 are the structures
of the predominant forms of nisin and mutacin 1140 (MU1140), which was discovered by Oragenics,
along with the toxins' novel amino acids.
5
The diagrams also identify the common portion of these
molecules that is used to bind a bacterial cell wall component called Lipid II.
Figure 3. Structures of MU1140 and Nisin A
6
The lanthionines are not the only unusual amino acids in these molecules. Other structures include
dehydrated amino acids, designated by Dha (a derivative of alanine, circled in green) and Dhb (a
derivative of threonine, circled in blue). Investors need not understand these structures, but it is important
to comprehend their effect on lantibiotic commercialization. Bacteria utilize highly specific enzymes to
create lantibiotics through post-translational modification (i.e., after the protein is assembled).
7
It is
because of these unique structures that attempts to produce them through alternative means (e.g.,
synthetically and in yeast) have met with limited success.
Fortunately, lantibiotics are derived from bacterial genes which means the emerging field of genetic
engineering offers a new approach to commercial production. Research has already determined that nisin
exists in two forms naturally, and genetically modified variants have been created with differences in their

5
Smith, L, et al. Covalent structure of mutacin 1140 and a novel method for the rapid identification of lantibiotics. Eur J Biochem
2000; 267(23): 6810.
6
Smith, L and Hillman, JD. Therapeutic potential of type A(I) lantibiotics, a group of cationic peptide antibiotics. Curr Opin Microbiol
2008; 11(5): 401.
7
Nagao, J, et al. Lantibiotics: Insights and foresight for new paradigm. J Biosci Bioeng 2006; 102(3): 139.

solubility, secretion, and antibiotic activities.
8,9,10,11
Yet, production is still thwarted by nisin's toxic nature.
Accordingly, Oragenics is collaborating with Intrexon to accomplish what no one else has achieved,
establish a method of producing commercial quantities of a pharmaceutical-grade lantibiotic.
A SOUND BASIS FOR PURSING COMMERCIALIZATION OF MUTACIN 1140
The commercial potential of MU1140 can be traced to the compound's mechanism of action. As shown in
Figure 3, the lantibiotic contains a binding site for its biological target called Lipid II. That compound is an
essential component of all gram positive bacteria, as it is required for the insertion of certain newly
synthesized components into the cell wall. Without it, cell wall formation is inhibited and the bacteria die.
MU1140 forms a very stable complex with Lipid II and removes it from its physiological domain in the
bacterial membrane where active cell wall formation is taking place.
MU1140's mechanism of action seems straightforward, but other factors will likely play a role in defining a
bacterium's sensitivity. The initial interaction between a lantibiotic and bacterium occurs at the cell wall,
probably through electrostatic interaction of the compound's positively charged amino acids (i.e., lysine
and arginine) and anionic members of the cell wall. But then, the thickness and composition of the cell
wall and the accessibility of Lipid II may alter the bacterial susceptibility. Listeria monocytogenes, for
example, is relatively insensitive to nisin A, even though its cell wall has a relatively high concentration of
negatively charged lipids.
12
n addition, the lantibiotic's high potency is dependent on its lateral assembly
into islands in the cell membrane where Lipid II may be trapped more effectively away from growth points
of the bacterial cell wall.
13
Given the various factors that may affect the molecule's activity, a combination
of Intrexon technologies provides a powerful means of developing new lantibiotics to treat the most
virulent bacteria.
MU1140 has already shown certain traits that indicate it is an attractive drug candidate. The molecule is
resistant to inactivation by proteases due to its three-dimensional structure, and bacteria have remained
sensitive to the drug under conditions favoring the development of resistance.
14,15,16
More important,
MU1140 has demonstrated activity against a broad range of Gram-positive bacteria, including
Streptococcus pneumoniae, multi-drug resistant Staphylococcus aureus (MRSA), Mycobacterium
tuberculosis, and Clostridium difficile. (See Table 1, which shows the minimum inhibitory concentration
[MIC] of MU1140 needed to prevent growth of various Gram-positive microorganisms.)

8
Mulders, JW et al. Identification and characterization of the lantibiotic nisin Z, a natural nisin variant. Eur J Biochem 1991; 201(3):
581.
9
de Vos, WM, et al. Properties of nisin Z and distribution of its gene, nisZ, in Lactococcus lactis 1993; 59(1): 213.
10
Rollema, HS, et al. Improvement of solubility and stability of the antimicrobial peptide nisin by protein engineering. Appl Environ
Microbiol 1995; 61(8): 2873.
11
Carroll, J, et al. Gene encoded antimicrobial peptides, a template for the design of novel anti-mycobacterial drugs. Bioeng Bugs
2010; 1(6): 408.
12
Smith, L, et al. Elucidation of the antimicrobial mechanism of mutacin 1140. Biochem 2008; 47(10): 3308.
13
Hasper, HE, et al. An alternative bactericidal mechanism of action for lantibiotic peptides that target Lipid II. Science 2006;
313(5793): 1636.
14
Hillman, JD, et al. Isolation of a Streptococcus mutans strain producing a novel bacteriocin. Infect Immun 1984; 44(1): 141.
15
Smith, L, et al. Structure and dynamics of the lantibiotic mutacin 1140. Biochem 2003; 42(35): 10372.
16
Ghorbrial, OG, et al. Pharmacodynamic activity of the lantibiotic MU1140. Int J Antimicrob Agents 2009; 33(1): 70.

Table 1. MU1140 Minimum Inhibitory Concentrations for Various Bacteria
16
Microorganism
(# of isolates tested)
MIC
(g/mL)
Microorganism
(# of isolates tested)
MIC
(g/mL)
Enterococcus faecalis (3) 16-32 Streptococcus agalactiae (2) 4
E. faecalis ATCC 29212(1) 32 Streptococcus intermedius (1) 2
Enterococcus faecium (4) 8-32 Streptococcus mitis (1) 4
Staphylococcus aureus (4) 16 Streptococcus pneumoniae (3) 1
S. aureus ATCC 29213 (1) 16 S. pneumoniae ATCC 49619 (1) 4
Staphylococcus epidermidis (4) 16 Streptococcus pyogenes (2) 0.5
Staphyloccocus saprophyticus (2) 4-16 Clostridium difficile (2) 1
Oragenics has also investigated the pharmacokinetics of MU1140 and the results were used in a
simulation analysis to predict the optimal method of administering the drug.
17
As shown in Figure 4,
plasma levels of MU1140 were measured at various times after a single, intravenous bolus
administration. The drug's half-life was determined to be in the range of 1.5 1.7 hours.
Other research assessed the drug's ability to kill Staphylococcus aureus in vivo. The results of this
pharmacodynamic analysis indicated that MU1140 administration caused a rapid, significant drop in
bacterial counts within 2 hours, regardless of the dose used. (Four doses were tested to achieve plasma
levels of 32, 64, 128, and 256 g/mL.) The half-maximal concentration for this bacterium was 0.01 g/mL.
Further analysis of this data and the pharmacokinetic profile found that there was a strong correlation
between the time the drug's plasma concentration was above the minimum inhibitory concentration
(T>MIC) for S. aureus and bacterial cell counts 24 hours later. (See Figure 5.) This suggests that T>MIC
over a 24 hour period is a predictive index for therapeutic success.

17
Ghobrial, O, et al. Pharmacokinetic and pharmacodynamic evaluation of the lantibiotic MU1140. J Pharm Sci 2010; 99(5): 2521.
Figure 4. Pharmacokinetic profiles of MU1140 in
the plasma of rats after a single, 12.5 (circles) or
25 (squares) mg/kg, IV bolus dose.
Source: Ghorbrial, O, et al.
17

The preclinical research concluded that the best route of administration of MU1140 is slow infusion, since
that will increase the T>MIC and maximize the therapeutic effect. A slow infusion will also minimize a
hypersensitivity reaction seen with the drug in the first 5 minutes after bolus dosing. (No other adverse
effects were observed.) Alternatively, pretreatment with the antihistamine diphenhydramine (20 mg/kg)
can be used to block most of the symptoms associated with bolus dosing. Further experiments with
MU1140 await a method for producing the lantibiotic in quantity.
THE LARGE COMMERCIAL POTENTIAL OF LANTIBIOTICS
The growing threat posed by infectious agents gained the attention of the U.S. public at the turn of the
century with reports of community-acquired methicillin-resistant Staphylococcus aureus (MRSA)
infections by athletes and prisoners. Until then, the focus was on hospital-acquired infections. But times
have changed and with them have come concerns over other resistant microbes around the world.
Indeed, a mathematical model predicts that community-acquired MRSA will displace hospital-acquired
strains as the predominant source of infections, given the larger reservoir of bacteria outside of
healthcare facilities.
18
This appears to be taking place already in select locations. New resistant strains
are likely, as MRSA "represents a continuously emergent phenomenon driven by multi-factorial
interactions between the classic triad of host, pathogen, and environment.
19
There is no reason to think
that this statement applies solely to MRSA, however, given the presence of other drug-resistant
microorganisms, such as vancomycin-resistant Enterococcus. (Note that vancomycin is considered a
drug of last resort, since it has traditionally been reserved for only the most serious infections.)
The impact of drug resistant infections can be measured in lives lost and in excess healthcare costs.
Studies have found that patients with drug-resistant infections experience prolonged illnesses that result
in extended hospital stays, higher healthcare costs, and increased mortality. For instance, a meta-
analysis found that patients with vancomycin-resistant enterococci infections spent 10 46 more days in
the hospital than did similar patients with no infection or with vancomycin-sensitive infections. This was
associated with excess healthcare costs (range: $27,190 - $86,290, depending on whether the patient
was treated in the intensive care unit) and a higher average mortality rate (45.2% versus 19.0%).
20

Alternative therapies for vancomycin-resistant enterococci infections are available, but they are not well
tolerated, as indicated in Table 2.
21
But use of inappropriate antibiotics also comes at a price that has

18
D'Agata, EMC, et al. Modeling the invasion of community-acquired methicillin-resistant Staphylococcus aureus into hospitals. Clin
Infect Dis 2009; 48(3): 274.
19
Mediavilla, JR, et al. Global epidemiology of community-acquired methicillin resistant Staphylococcus aureus. Curr Opin Microbiol,
preprint dated October 5, 2012.
20
Salgado, CD and Farr, BM. Outcomes associated with vancomycin-resistant enterococci: A meta-analysis. Infect Control Hosp
Epidemiol 2003; 24(9): 690.
21
Rivera, AM and Boucher, HW. Current concepts in antimicrobial therapy against select Gram-positive organisms: Methicillin-
resistant Staphylococcus aureus, penicillin-resistant pneumonococci, and vancomycin-resistant enterococci. Mayo Clin Proc 2011;
86(12): 1230.
Figure 5. The relationship between MU1140
T>MIC and predicted viable S. aureus counts,
based on the pharmacokinetic and pharmaco-
dynamic data.
Source: Ghobrial, O, et al.
17

been measured as a significant increase in mortality.
22
Overall, antibiotic-resistant infections result in 8
million excess hospital days and $21 billion to $34 billion in additional healthcare costs in the United
States annually.
3

Table 2. Drugs for Infections Caused by Gram-Positive Bacteria
20
In 2009, sales of antibiotics amounted to approximately $42 billion, which represented 5% of the
pharmaceutical market.
23
Sales trends in other sectors have been either declining or growing much more
slowly over the past few years, and these trends are not expected to change much during this decade
partly because 152 drugs will lose patent protection between 2012 and 2020.
24
This should not be an
issue in the antibiotics sector, though, since the rising prevalence of multi-drug resistant bacteria are
rendering many of today's medicines ineffective.
New antibiotics should enter a market that is primed to accept them. We believe this is an important factor
behind the success of Cubist's daptomycin, which was launched in 2003 and is expected to achieve sales
approaching $850 million in the United States this year, despite the toxicities listed in Table 2 and a
premium price to vancomycin (average wholesale price: $2,800 versus $1,500)
25
. Furthermore, Rib-X and
Sanofi signed a research collaboration agreement potentially worth more than $772 million (more than
$186 million per drug candidate) on July 6, 2011 for Rib-X's RX-04 program, which consists of a class of
antibiotics in preclinical development that target the bacterial protein synthetic machinery. This is
important because the market is so in need of new antibiotics that sizeable valuations are being procured
early in the development cycle. Based on this kind of valuation metric, MU1140 could have a total
valuation of more than $186 million by 2014 (the estimated time required for Intrexon to set up the
bioindustrial process and for preclinical research to be completed). Additionally, each subsequent
lantibiotic candidate (more than 50 are known) could also be valued more than $186 million per candidate
following manufacturing validation (3 to 6 months) and preclinical testing (12 24 months). This bodes
well for early partnering opportunities and sizable deal valuation metrics.

22
Tabah, A, et al. Characteristics and determinants of outcome of hospital-acquired bloodstream infections in intensive care units:
the EUROBACT International Cohort Study. Intensive Care Med, preprint September 26, 2012.
23
Hamad, B. The antibiotics market. Nat Rev Drug Discov 2010; 9(9): 675.
24
Long, D. The US pharmaceutical market: Trends, issues, & outlook. Presented at the National Conference of Pharmaceutical
Organizations annual meeting, January 7, 2011.
25
McCallister, E. Antibiotics economics. BioCentury on BioBusiness, published August 1, 2011.

PROBIOTICS FOR ORAL HEALTH
The pioneering work of Dr. Jeffery Hillman, a founder of Oragenics, laid the foundation for probiotics in
oral health over a period spanning more than three decades. (Dr. Hillman retired from his position as
Chief Scientific Officer with Oragenics in late 2011 and passed the baton to one of his protgs, Dr.
Martin Handfield.)
THE CHALLENGE POSED BY ORAL PATHOGENS
The human mouth is the home to a vast diversity of bacteria (as many as 25,000 phylotypes), although
the average adult person harbors about 265 different species.
26,27,28
This population of microbes differs
between individuals and changes over time in a single individual. Such factors as a person's genetic
make-up, age, oral health, general health status, diet, and smoking status contribute to the diversity.
29,30,31

Even within a single mouth, there are marked differences in local populations.
32
That is attributable to the
distinctions between the environments provided by the soft cheek tissue, hard enamel surface of a tooth,
and anaerobic conditions at the juncture of the tooth and gum.
While there is considerable variation between oral bacteria populations, there is also a group of about 11
genera that are common in adults; these are Streptococcus, Neisseria, Corynebacterium, Rothia,
Actinomyces, Haemophilus, Prevotella, Fusobacterium, Granulicatella, Capnocytophaga, and
Veillonella.
26,28
Among these bacteria are some that are harmful, notably S. mutans, which is the principal
pathogen causing dental caries, and others that are beneficial, including S. gordonii. The most prevalent
genus is Streptococcus, which accounts for about 20% of the oral bacteria. These microbes do not exist
as individuals, and often form a biofilm that is resistant to antimicrobial agents and to invasion by other
bacteria. In the competition for a hospitable environment, bacteria release a variety of chemicals to gain
an advantage, including hydrogen peroxide, acids, and small peptides with antibiotic properties.
Despite the competition, biofilm formation reflects a series of cooperative events.
33
For instance, dental
plaque is formed via interactions that lead to a three-dimensional structure with distinct
microenvironments for various bacteria. Briefly, an important early event in plaque formation is the
adhesion of bacterial enzymes to the tooth surface, along with various saliva-derived proteins that may
serve as binding sites for some microorganisms.
34
That is followed by the creation of an insoluble, glucan
matrix (sugar-derived polymer) on the surface of the tooth, in part by enzymes secreted by S. mutans.
That matrix lays down a three-dimensional structure, which permits acidic micro-environments favoring
bacterial adherence and growth.
35
These acidic microenvironments also lead to dental caries via
demineralization of the tooth enamel and dentin. A variety of adhesion molecules on the surfaces of
bacteria enable them to bind to the tooth and the extracellular matrix.
36
Adhesins and extracellular matrix
also play a role in more advanced stages of plaque formation by enabling inter-bacterial binding. It is this
process, dubbed positive cooperativity, that figures importantly in the multi-layered structure of a dental
plaque, shown in Figure 6.

26
Keijser, BJF, et al. Pyrosequencing analysis of the oral microflora of healthy adults. J Dent Res 2008; 87(11): 1016.
27
Zaura, E, et al. Defining the healthy "core microbiome of oral microbial communities. BMC Microbiol 2009; 9: 259.
28
Bik, EM, et al. Bacterial diversity in the oral cavity of ten healthy individuals. ISME J 2010; 4(8): 962.
29
Crielaard,W, et al. Exploring the oral microbiota of children at various developmental stages of their dentition in the relation to their
oral health. BMC Med Genomics 2011; 4: 22.
30
Hsiao, WW, et al. Microbial transformation from normal oral microbiota to acute endodontic infections. BMC Genomics 2012; 13:
345.
31
Dang, AT, et al. Evidence of an increased pathogenic footprint in the lingual microbiome of untreated HIV infected patients. BMC
Microbiol 2012; 12: 153.
32
Aas, JA, et al. Defining the normal bacterial flora of the oral cavity. J Clin Microbiol 2005; 43(11): 5721.
33
Rosan, B and Lamont, RJ. Dental plaque formation. Microb Infect 2000; 2: 1599.
34
Bowen, WH and Koo, H. Biology of Streptococcus mutans-derived glucosyltransferases: Role in extracellular matrix formation of
cariogenic biofilms. Caries Res 2011; 45; 69.
35
Xiao, J, et al. The exopolysaccharide matrix modulates the interaction between 3D architecture and virulence of a mixed-species
oral biofilm. PLoS Pathog 2012; 8(4): e1002623.
36
Nobbs, AH, et al. Stick to your gums: Mechanisms of oral microbial adherence. J Dent Res 2011; 90(11): 1271.

Based upon the structure of dental plaque and the steps involved in its formation, there are several
possible approaches to interceding to improve oral health, including dietary changes that reduce sugar
(especially sucrose) consumption, mouthwashes with antimicrobial properties, and clinical intervention.
An alternative type of intervention is available through probiotics. These non-pathogenic, living
microorganisms confer a health benefit and prevent or improve some diseases when administered in
adequate amounts. There are a variety of means by which probiotics may affect oral health at the tooth
surface and at the tooth-gum interface.
37
These are summarized in Figure 7.
Figure 7. Possible Mechanisms of Probiotic Action for Oral Health
37
THE PROBIOTICS MARKET AND THE NEW REGULATORY ENVIRONMENT
Probiotics are defined as non-pathogenic microorganisms, mostly of human origin, that confer a health
benefit and prevent or improve some diseases when administered in adequate amounts.
38
These live

37
Haukioja, A. Probiotics and oral health. Eur J Dent 2010; 4: 348.
38
FAO-WHO, 2001. Health and nutritional properties of probiotics in food including powder milk with live lactic acid bacteria. Food
and Agriculture Organization of the United Nations and World Health Organization, Cordoba, Argentina.
A
Figure 6. Panel A shows diagrammatically how the interaction between bacteria results in the multiple
layers of dental plaque. Early colonizers (green spheres), including S. mutans, bind to a tooth and express
adhesion sites to which another bacterium, such as Fusobacterium nucleatum (orange ellipse) binds. That
microbe then serves as a substrate to which late colonizers, such as Aggregatibacter
actinomycetemcomitans [purple] or Tropenema denticola [blue], bind. Panel B is a picture of subgingival
biofilms created with a fluorescent in situ hybridization (FISH) probe for F. nucleatum (orange) between
early- and late-colonizers (green).
Source: Nobbs, AH, et al.
36

organisms may be regulated as either a cosmetic, dietary supplement or drug, based on the nature of the
claims made, the intended use, and the country where they are distributed. A probiotic is regulated as a
drug if it is intended for the "diagnosis, cure, mitigation, treatment, or prevention of disease in man" or if
the probiotic is administered via any route other than orally.
39
The most common uses of probiotics are as
dietary supplements to aid in gastrointestinal performance of patients cancer or an inflammatory bowel
disease.
40,41,42
The most common probiotics are lactobacilli and bifidobacteria that are included in various
brands of yogurt and other fermented milk products. This market is huge, accounting for an estimated $27
billion in sales this year and growing at a compound annual growth rate of 6.4% through 2015, one of the
fastest expanding food segments.
43
But then, general interest in probiotics has also been rising quickly
over the past decade, as evidenced by the upturn in scientific publications on the field (see Figure 8).
Figure 8. Scientific publications on probiotics by year
44

The success of probiotics to date has spawned unsubstantiated claims in some cases, and that has
elicited the customary response from major regulatory agencies the FDA and its European counterpart
have begun to impose more exacting requirements on probiotics. Moreover, the U.S. Federal Trade
Commission has leant its support in demanding that some of the industry's largest participants, including
Dannon and Nestle, remove certain claims from their product labels.
45,46
Companies are now required to
provide evidence that functional foods are safe and scientifically address the health issue(s) advertised.
To meet these edicts, a company must identify the food and the specific probiotic(s), since each bacterial
strain is considered unique. More important, the proposed health relationship must be assessed through
relevant studies, including a human intervention study and preclinical tests that provide an insight into the
probiotic's mechanism of action.

39
FAO-WHO, 2002. Guidelines for the evaluation of probiotics in food. Food and Agriculture Organization of the United Nations and
World Health Organization, London Ontario, Canada.
40
Wada, M, et al. Effects of the enteral administration of Bifidobacterium breve on patients undergoing chemotherapy for pediatric
malignancies. Support Care Cancer 2010; 18(6): 751.
41
Prisciandaro, LD, et al. Evidence supporting the use of probiotics for the prevention and treatment of chemotherapy-induced
intestinal mucositis. Crit Rev Food Sci Nutr 2011; 51(3): 239.
42
Bassaganya-Riera, J, et al. Probiotic bacteria produce conjugated linoleic acid locally in the gut that targets macrophage PPAR
to suppress colitis. PLoS ONE 2012; 7(2): e31238.
43
Steele, P. Consumer insights from the industry perspective. Presented at the Institute of Medicine Food Forum Workshop,
February 22-23, 2012.
44
AHRQ Publication No. 11-E0007, April 2007.
45
FTC press release: Dannon Agrees to drop exaggerated health claims for Activia Yogurt and DanActive Dairy Drink, December
15, 2010.
46
FTC press release: Nestle subsidiary to settle FTC false advertising charges; will drop deceptive health claims for Boost Kid
Essentials, July 14, 2010.

PROBIORA3 - A PROPRIETARY COMBINATION OF PROBIOTICS
Pioneering work by Dr. Jeffrey Hillman and Oragenics led to the development of the first probiotic for
dental caries and periodontal disease. Three non-infective bacteria were chosen for this purpose,
specifically proprietary strains of Streptococcus rattus, S. uberis, and S. oralis.
x A spontaneous mutant of Streptococcus rattus was isolated from a human subject and
investigated for its ability to produce lactic acid, which is the active agent used by S. mutans
to erode enamel in the tooth. The mutant strain, called JH145, was found to lack the
enzyme lactate dehydrogenase (LDH) because of a point mutation and premature stop codon
in the LDH gene and, hence, it produces less than 3% as much lactic acid as the normal wild-
type strain.
47
Accordingly, JH145 lacked the ability to produce dental caries in vitro and in
vivo, even though it adhered to teeth as well as the normal strain and S. mutans.
48
The LDH
deficient bacteria still competed effectively against S. mutans when administered as a
probiotic in a preclinical study. (See Figure 9.)
Based on the mechanisms of intervention shown in Figure 7, JH145 interferes at two steps
against S. mutans, at the point of adhesion to the tooth and by competing for nutrients.
x Oragenics evaluated other strains of bacteria to protect against periodontal disease. These
bacteria are also within the genus Streptococcus. The strains isolated by the Company are S.
uberis KJ2 and S. oralis (previously known as S. sanguinis type II) KJ3. Both are found
in abundance in healthy periodontal sites, but rarely in diseased sites.
49
This finding
suggested that the strains may inhibit the growth of periodontal pathogens. Indeed, KJ2 and
KJ3 produce hydrogen peroxide, a reactive oxygen species that inhibits the bacterium
Aggregatibacter actinomycetemcomitans, an important participant in the etiology of
aggressive periodontitis.
50
Local production of hydrogen peroxide by these bacteria probably
complements the release of the chemical by human oral tissue.
51
Indeed, successful
treatment of active periodontal lesions is correlated with recolonization of the site with S.
oralis.
52
Turning back to Figure 7, we see that KJ2 and KJ3 may act at all three primary levels
in combating periodontal disease, by competing for suitable microenvironments, competing
for nutrients, and complementing the human body's defensive measures.

47
Hillman, JD, et al. A spontaneous lactate dehydrogenase deficient mutant of Streptococcus rattus for use as a probiotic in the
prevention of dental caries. J Appl Microbiol 2009; 107(5): 1551.
48
Johnson, CP, et al. Cariogenic potential in vitro in man and in vivo in the rate of lactate dehydrogenase mutants of Streptococcus
mutans. Arch Oral Biol 1980; 25(11-12): 707.
49
Hillman, JD and Socransky, SS. Bacterial interference in the oral ecology of Actinobacillus actinomycetemcomitans and its
relationship to human periodontosis. Arch Oral Biol 1982; 27(1): 75.
50
Hillman, JD and Shivers, M. Interaction between wild-type, mutant and revertant forms of the bacterium Streptococcus sanguinis
and the bacterium Actinobacillus actinomycetemcomitans in vitro and in the gnotobiotic rat. Arch Oral Biol 1988; 33(6): 395.
51
Zhu, L and Kreth, J. The role of hydrogen peroxide in environmental adaptation of oral microbial communities. Oxid Med Cell
Longev 2012; Article #717843.
52
Haffajee, AD, et al. Clinical, microbiological and immunological features associated with the treatment of active periodontosis
lesions. J Clin Periodontol 1984; 11(9): 600.
Figure 9. Effect of oral dosing with JH145 on the
proportions of the S. mutans strain NG8 in plaque/
saliva samples at different times after initiation of
probiotic treatment. NG8 bacteria were given to
rats at a daily dose of 10
9
colony-forming units or
cfu for three days and then allowed four weeks to
establish stable colonies. Weekly assessments
found that JH145 therapy (10
9
cfu per day for five
days per week) significantly lowered the numbers
of NG8 bacteria as a proportion of total bacteria
present within 6-8 weeks and maintained that
relative proportion for 26 weeks.
Source: Hillman, JD et al.
47

The Company's ProBiora3 is the active ingredient in its four products sold under the Evora brand name,
as well as probiotics commercialized under private labels by licensees. Formulations vary according to
their application.
EVORA PRODUCTS - WELL POSITIONED IN THE MARKET
Oragenics sells its probiotics under the Evora label, as shown below:
The differences between these products are related to the numbers of bacteria. For instance, EvoraPro,
which is sold directly through dentists' offices, has >125 million cfu of Probiora3 per tablet, while the two
retail products, the adult-strength probiotic EvoraPlus and EvoraKids, contain >100 cfu of ProBiora3 per
tablet. These products are available through such online retailers as CVS Pharmacy, Amazon,
Walgreens, Target, DrugStore.com, ProbioticSmart.com, ForeverActive.com, Swanson Health Products,
and ProHealth. They are also sold through international distributors: Australian Pharmaceuticals
Industries (Australia, New Zealand), Benelux Cosmetics (Belgium, Netherlands, Luxembourg), and
Vetcom (Korea). Competition currently comes from two sources, New Zealand-based Dr. Harold Katz
LLC sells a probiotic formulation under its TheraBreath
label and BioGaia, which is based in Sweden,

has two versions of an oral health probiotic on the market, GUM
ProDentis
Daily Balance Lozenges

and GUM
Periobalance

chewing gum. One or both products are sold in North America, parts of Europe,
and Japan along with health-related offerings that do not include probiotics.
EvoraPets is also sold as Teddy's Pride
Oral Care through retail distribution channels, including

Amazon. Its nearest competitor is SCD Probiotics
Breath Spray, which is administered into the animal's

mouth directly or sprayed onto food. SCD, which is based in the United States, has a broad range of
products largely for the farming community. Other companies sell products that address companion
animals' breath, but these do not appear to contain probiotics.
Oragenics EvoraPlus and EvoraPet are compared to probiotic products from the aforementioned
companies in Table 3. EvoraPlus was selected for this purpose since the competitors do not offer
versions specifically for the professional or children's markets. In addition, the comparisons have been
made between products of a similar formulation; that is, lozenges were chosen over alternative products,
notably chewing gum, for this purpose.
Adults - Consumer
Whitens without causing tooth
or gum sensitivity
Freshens breath
Supports gum and tooth
health
Adults - Professional
Exclusively sold to dental
professionals
Supercharged version of
EvoraPlus higher dosage
Whitens without causing tooth or
gum sensitivity
Freshens breath
Supports gum and tooth health
Pets
Freshens breath, cleans and
whitens teeth
Tasteless, odorless powder
Children
Natural Wild Very Cherry Berry
flavor that kids love
Supports gum and tooth health
Freshens breath, cleans and
whitens teeth

Table 3. Comparison of Probiotics for Oral Care
** Probiotics shown for the SCD Probiotics Breath Spray are approximations based on the two primary types of
bacteria and yeast in the company's livestock products. Prices are for a monthly supply and were obtained
from www.drugstore.com for human products and from Amazon for the pet products.
As shown in the table, the four companies use different beneficial microbes in their products. We believe
each of the comparators has drawbacks. For instance, S. salivarius K12 and M18 in the TheraBreath
probiotics produce natural antibiotics, but no scientific data has been published on the oral benefit(s) of
the combination.
53,54
Alone, the K12 strain has failed to significantly alter the oral microbiota.
55
This may
be because this bacterium seeks its natural habitat, the pharynx, and is short-lived in the mouth.
56
The
M18 strain grows primarily on the tongue, rather than on dental plaque or in the subgingival space, which
raises concerns over its ability to aid oral hygiene.
57
Nonetheless, this is the most expensive oral
probiotic, at $21.99 for a 7-day course that is expected to be repeated once per month. (It should be
noted that the retail product provides 10%-15% of the M18 dosage used to demonstrate clinical efficacy
in the initial patent, and users have to rinse with chlorhexidine, an antibacterial agent that lowers the total
bacterial load, prior to initiation of probiotic intervention.)
The microbe L. reuteri that is incorporated in BioGaia's two probiotic products has been reported to have
a favorable effect on oral health.
58
However, it is a normal inhabitant of the gastrointestinal flora, and
recent clinical studies by independent labs found less than satisfactory results: BioGaia's bacteria had no
effect on S. mutans regrowth in chlorhexidine-treated mouths, had no clinical benefit over an 8-week
period despite reducing subgingival bacteria, and was quickly eliminated from the human mouth after
administration.
59,60,61
The monthly price for this product is listed at $19.99 based on the recommended
daily dose of one lozenge per day.

53
Hyink, O, et al. Salifvaricin A2 and the novel lantibiotic salivaricin B are encoded at adjacent loci on a 190-kilobase transmissible
megaplasmid in the oral probiotic strain Streptococcus salivarius K12. Appl Environ Microbiol 2007; 73(4): 1107.
54
Heng, NCK, et al. Genome sequence of the bacteriocin-producing oral probiotic Streptococcus salivarius strain M18 2011;
193(22): 6402.
55
Burton, JP, et al. Safety assessment of the oral cavity probiotic Streptococcus salivarius K12. Appl Environ Microbiol 2006; 72(4):
3050.
56
Horz, HP, et al. Distribution and persistence of probiotic Streptococcus salivarius K12 in the human oral cavity as determined by
real-time quantitative polymerase chain reaction. Oral Microbiol Immunol, 22(2), 126 (2007)
57
European patent # EP 1 483 366 B1.
58
Hasslof, P, et al. Growth inhibition of oral mutans streptococci and candida by commercial probiotic lactobacilli an in vitro study.
BMC Oral Health 2010; 10: 18.
59
Keller, MK, et al. Probiotic supplements (Lactobacillus reuteri DSM 17938 and ATCC PTA 5289) do not affect regrowth of mutans
streptococci after full-mouth disinfection with chlorhexidine: a randomized controlled multicenter trial. Caries Res 2012; 46(2): 140.
Company Product Probiotic ** Price Claims
Complete oral care
Supports gum & tooth health
Freshens breath
Whitens teeth
Promotes healthy teeth & gums
Reduces plaque
Fights bad breath
Freshens breath
Cleans & whitens teeth
Use as needed to control bad breath
Oragenics EvoraPets & Teddy's Pride ProBiora3 $8.44
Bifidobacterium **
Lactobacillus
Saccharomyces
cerevisiae
SCD Probiotics Breath
Spray
SCD
$19.99
Lactobacillus reuteri
DSM 17938 & ATCC
PTA5289
GUM PerioBalance Daily
Dental Probiotic Lozenge
BioGaia
$9.95 for 7.2 oz.
(180 sprays)
Helps body protect against: cavities, bad
breath, plaque, sensitive teeth, biofilm,
gum problems, tooth stains, sore throat,
earaches
TheraBreath Multi-
Symptom Probiotics
Dr. Harold Katz LLC
$21.99 for a 7-
day therapy
Oragenics
Streptococcus
salivarius K12 & M18
EvoraPlus Probiora3 $14.95

We also note that SCD's product for companion animals' oral health is derived from probiotics used for
the gastrointestinal health of livestock and that the spray includes numerous herbal extracts that should
improve bad breath, even without the probiotic components. This product is slightly more expensive than
EvoraPet.
Overall, we believe Oragenics products are positioned well based upon the characteristics of the probiotic
ingredients in ProBiora3 and their prices versus those of the competition.
NEW CLINICAL DATA TO SPUR DEMAND FOR EVORA PRODUCTS
Oragenics is in the midst of completing two small clinical trials to provide additional evidence of the
benefits of ProBiora3. The trials, which are expected to yield data in 2013, are testing the effect of a 12-
week course of once-daily mints (akin to EvoraPro or EvoraPlus) on the number of bacteria associated
with tooth decay and gum disease in young adults. The primary objective is to determine, on a per patient
basis, if a 12 week course of ProBiora3
-containing mints from Oragenics, can significantly decrease the

levels of S. mutans when compared to their baseline values. The secondary objectives are to determine if
12 week usage of a ProBiora3
product by the targeted subject population can: (i) significantly decrease

the levels periodontal pathogens when compared to their baseline values, (ii) significantly decrease the
levels S. mutans and periodontal pathogens in the treatment group when compared to the control group
at Week 12, and (iii) significantly change breath odor and teeth whiteness. To accomplish this, PCR
analyses are being conducted to quantify the presence of S. mutans in saliva along with seven other
periodontal pathogens (i.e., Porphyromonas gingivalis, Tannerella forsythia, Aggregatibacter
actinomycetemcomitans, Prevotella intermedia, Campylobacter rectus, Fusobacterium nucleatum, and
Eikenella corrodens). Secondary endpoints are breath odor and teeth whiteness. These measurements
are being made objectively with a halimeter and VITA Toothguide 3D-Master, respectively.
The results should provide ample support for new regulatory submissions and for marketing support. We
believe they will also be used to secure more distributors for the Evora product line and contracts with
manufacturers of probiotic foods and pet-care products based on ProBiora3. But because the timing and
terms of such licensing agreements are uncertain, we have restricted our financial model to Oragenics
existing business agreements.

60
Iniesta, M, et al. Probiotic effects of orally administered Lactobacillus reuteri-containing tablets on the subgingival and salivary
microbiota in patients with gingivitis. A randomized clinical trial. J Clin Periodontol 2012; 39(8): 736.
61
Snel, J, et al. Competitive selection of lactic acid bacteria that persist in the human oral cavity. Appl Environ Microbiol 2011;
77(23): 8445.

SMART TECHNOLOGY
Oragenics has extended its work in the field of probiotics to combine the attributes of a beneficial
bacterium with the power of a lantibiotic. The goal is to use a non-cariogenic strain of bacteria as a
replacement therapy for bacteria that normally cause dental decay. The Company has crafted a strain of
Streptococcus mutans that lacks lactate dehydrogenase, which generates lactic acid, the primary cause
of tooth decay. The strain also has another favorable attribute it releases the lantibiotic MU1140 to
facilitate and maintain its colonization of human mouth.
Preclinical research has suggested that the strain can be used for the purpose it was created, as a
replacement therapy.
62
The strain colonized the mouths of rats and was eliminated when the microbial
load was reduced with chlorhexidine treatment. This research provided the safety data needed to
undertake a clinical trial of the strain.
Oragenics initiated a Phase 1 clinical study of a D-alanine dependent version of the bacteria in 2011 with
an expected enrollment of ten healthy male subjects. (This dependence was specifically selected for use
in the clinical trial to provide a simple, yet effective means of eliminating the bacteria.) The trial involves a
two-week institutionalized period of therapy followed immediately by a four-week follow-up period in which
the subjects and their partners are monitored. D-alanine is provided in a daily mouthwash to sustain the
bacteria. Six months after the treatment has ended, the subjects will have a final evaluation. The trial is
ongoing.
Favorable results (e.g., safety for the subjects and lack of transmission to the partner) should support the
next step, which will likely involve a safety trial of the unattenuated strain, designated as BCS3-L1. This
stepwise assessment of the bacteria is necessary, as Oragenics is breaking new regulatory ground in its
development of its replacement therapy. Given uncertainties related to the regulatory path, we have not
included this technology in our financial analysis.
A NATURAL APPROACH TO WEIGHT LOSS
During Oragenics research with its SMaRT Technology, the Company discovered that administration of a
compound (referred to as LPT3-04), caused animals to lose weight. As shown in Figure 10, abdominal fat
could be eliminated in a dose-dependent manner by LPT3-04.
63

The Company has investigated this phenomenon further in a proof-of-concept clinical trial and found that
a diet high in LPT3-04 reduced the weight of the human subjects. Efforts are now ongoing to outlicense
this product to a pharmaceutical company for further development and marketing. Since the timing of this
agreement is unknown, we have not included the weight-loss product in our financial analysis.

62
Hillman, JD, et al. Modification of an effector strain for replacement therapy of dental caries to enable clinical safety trials. J Appl
Microbiol 2007; 102(5): 1209.
63
Hillman, JD, et al. Methods of treating lipomas and liposarcomas. US Patent Appl # US2012/0122984 A1.
Figure 10. Effect of LPT3-04 diets on abdominal
fat in female rats. Groups of three rats each
were placed on diets supplemented with various
amounts of the compound (0% 20%) for 30
days and then euthanized so that their
abdominal fat could be weighed.
Source: Hillman, JD, et al.
63

Control 15% 10% 20% 5%

INVESTMENT CONSIDERATIONS
For a complete description of risks and uncertainties related to Oragenics business, see the "Risk
Factors" section in Oragenics's SEC filings, which can be accessed directly from the SEC Edgar
filings at www.sec.gov. Potential risks include:
x Stock risk and market risk: Trading of the Company's common stock varies widely on a daily basis.
There can be no assurance that an active and liquid trading market will be sustained, which could
limit one's ability to buy or sell the Company's common stock at a desired price. nvestors should also
consider technical risks common to many small-cap or micro-cap stock investments, such as float,
risk of dilution, dependence upon key personnel, and the strength of competitors that may be larger
and better capitalized.
x Competitive risk: The oral health and antibiotics markets are highly competitive, based on individual
product characteristics, pricing, and marketing support. Other companies are actively engaged in the
development/commercialization of products to directly or indirectly address the uses being pursued
by Oragenics. These companies may have substantially greater research and development
capabilities, as well as significantly greater marketing, financial, and human resources than
Oragenics.
x Products still in development phases: Incorporation of ProBiora3 into new products will depend to
some extent on licensing and/or supply agreements that have yet to be signed, and the lantibiotic
therapy is still at a preclinical stage. Such products may appear to be promising, but may not reach
commercialization for various reasons, including failure to achieve regulatory approvals, safety
concerns, and/or the inability to be manufactured at a reasonable cost. And even if the products are
commercialized, there can be no assurance that they will be accepted, which may prevent the
Company from becoming profitable.
x Dependence on third parties: Oragenics relies on a contract manufacturer for the supply of
ProBiora3 and on distributors for the sales of ProBiora3 products. In addition, the Company is
dependent on the expertise of Intrexon for the development of a method for producing MU1140. If any
of these collaborations should end, the Company's business prospects may be materially adversely
affected.
x Funding requirements: It is difficult to predict Oragenics's future capital requirements. The
Company may need additional financing to continue to fund operations and expand its business.
There is no guarantee that it can secure the desired future capital or, if sufficient capital is secured,
that current shareholders will not suffer significant dilution.
x Regulatory risk: There is no guarantee that the Company's products under development will be
approved by the Food and Drug Administration (FDA) or international regulatory bodies for marketing
in the U.S. or abroad. In addition, regulations pertaining to probiotics and drug development may
undergo further changes, which may affect the Company's ability to gain regulatory approvals and/or
labeling that supports its marketing strategies.
x Patent risk: The field of pharmaceuticals and probiotics are very competitive, and although
Oragenics has received and/or filed for numerous patents to secure its right to commercialize its
technology, these patents may not protect the Company's rights adequately in the marketplace.
x Business concentration risk: Because of its distribution and licensing agreements, Oragenics is
dependent upon independent agents for sales of its Evora products and private-label products that
incorporate ProBiora3. The loss of important customers might have a significant effect on the
Company's financial performance.

FINANCIAL FORECASTS & VALUATION
Our financial projections reflect the three aspects of Oragenics's business, the oral care lines (i.e.,
EvoraPro, EvoraPlus and EvoraKids), the pet care EvoraPets product, and MU1140. The estimates are
limited to the period of 2012 through 2014, since it is during this time frame that significant changes are
likely to occur in the Company's business, notably development of a production method for MU1140 that
may be applied to other lantibiotics, a licensing deal for MU1140, and consummation of additional
distribution agreements for the probiotics lines. However, we have not included in our analysis the "wild
cards in the Company's R&D pipeline, which are the weight-loss compound LPT3-04 and the SMaRT
Replacement Therapy. Even though these products have considerable commercial potential, they are not
included because of uncertainty over the timing of their development.
REVENUE ESTIMATES
The following assumptions form the basis of our revenue projections:
Evora products for human oral health
x 2012 revenue from these products is expected to exceed $1 million.
x 2013 and subsequent years benefit from clinical data demonstrating the effectiveness of the
probiotic treatment for dental use and expanded marketing support via the Company's direct
sales force, additional distribution agreements, and regulatory approval in more countries.
x The aforementioned developments support average annual revenue growth of approximately
50% through 2018.
ProBiora3 for pets
x 2012 revenue from EvoraPet approximates $200,000.
x Subsequent years benefit from support of more distributors in the United States and abroad that
results in average annual revenue growth of 45%-50% through 2018.
MU1140
x The collaboration between Oragenics and Intrexon develops a method for producing lantibiotics
in the spring of 2013.
x An IND is filed in 2014 and a Phase 1 clinical trial is completed that year.
x Oragenics follows the path laid by Rib-X in outlicensing MU1140 to a multinational
pharmaceutical company in 2014 in exchange for an upfront fee of $8 million and milestones of
$5 million and $20 million upon completion of the clinical development program and submission
of the NDA, respectively, plus a royalty of 10% of sales. We have further assumed that the
milestones are each recognized over a period of 5 years. Note that the Company will share 20%
of revenues from this partnering agreement with the University of Florida Research Foundation in
accordance with a licensing contract for MU1140 patents.
x MU1140 is launched in 2018 in more developed countries as defined by the United Nations with
marketing support of Oragenics in the United States and the multinational drug company
elsewhere.
These assumptions lead to the following revenue projections:
2012 2013 2014
Oral Care 1,150 $ 3,485 $ 5,499 $
Pet Care 250 515 1,003
MU1140 - - 1,600
Total 1,400 $ 4,000 $ 8,102 $

ANNUAL InCOME STATEMENTS
#
(FISCAL YEAR ENDS DECEMBER 31
ST
)
# All figures are in thousands, except for per share data. Estimates are in italics.
Assumptions:
x The gross profit margin rises at a moderate pace from 55% in 2012 on higher prices on probiotic
products and a 2014 milestone payment (amortized over five years) related to the lantibiotic
development program.
x R&D expenses approach $2 million this year and rise gradually through in 2017. In the near term,
Oragenics will pay Intrexon to develop the MU1140 production system. In 2013 and 2014, R&D costs
will include preclinical testing and a fairly short Phase 1 clinical trial of the lantibiotic for combating an
acute, life-threatening infection. Thereafter, we've assumed that most of the clinical development of
MU1140 is paid by Oragenics's marketing partner.
x SG&A costs approximate $5.2 million this year and $5.1 million in 2013, with marketing expenses
accounting for a sizable proportion. Subsequently, SG&A costs rise gradually to support the Evora
product line and prepare for MU1140's commercial debut.
x We have made no estimates for non-operating items.
x Investors should note that Oragenics should be able to minimize its cash payments for any tax
liabilities incurred with net operating loss carryforwards of $36.5 million and tax credits of $551,000 as
of December 31, 2011.
x We use average basic shares outstanding to calculate per-share losses and fully diluted shares in
years in which operations are profitable. The number of shares outstanding in 2012 increased as a
result of recent equity financings and should rise subsequently as warrants and stock options are
exercised.
2011 2012 2013 2014
Total Revenues 1,444 $ 1,400 $ 4,000 $ 8,102 $
Cost of products sold 714 675 2,030 3,216
Gross Profit 730 $ 725 $ 1,970 $ 4,886 $
Operating expenses
R&D expense 2,449 $ 1,950 $ 2,425 $ 3,000 $
SG&A 5,628 5,250 5,100 5,100
Total operating costs 8,077 7,200 7,525 8,100
Operating profit/(loss) (7,347) $ (6,475) $ (5,555) $ (3,214) $
Interest income - 10 - -
Interest expense (332) (654) - -
Other - (9) - -
Pretax profit/(loss) (7,679) $ (7,128) $ (5,555) $ (3,214) $
Income taxes - - - -
Net profit/(loss) (7,679) $ (7,128) $ (5,555) $ (3,214) $
Earnings (loss) per share (1.34) $ (0.40) $ (0.20) $ (0.11) $
Shares outstanding 5,717 17,756 27,550 29,000

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BALANCE SHEET
#
(FISCAL YEAR ENDS DECEMBER 31
ST
)
# All data are in thousands.

ASSETS 9/30/2012 12/31/2011
Current Assets
Cash & equivalents 11,903 $ 436 $
Accounts Receivable 72 93
Inventory 280 476
Other 236 113
Total Current Assets 12,491 $ 1,118 $
Property & equipment 93 $ 149 $
Total Assets 12,584 $ 1,267 $
LIABILITIES
Current Liabilities
Accounts payable 1,399 $ 1,740 $
Debt due 88 53
Deferred revenue 266 153
Note payable to shareholder - 7,500
Total Current Liabilities 1,753 $ 9,446 $
Shareholders Equity
Common Stock, par value 27 $ 6 $
Additional Paid-In Capital 62,901 32,811
Accumulated Deficit (52,097) (40,996)
Treasury Stock
Total Shareholders Equity 10,831 $ (8,179) $
Total liabilities & equity 12,584 $ 1,267 $

VALUATION ANALYSIS
Our valuation analysis was conducted by treating the probiotics business and the lantibiotic project
separately and then combining the results to arrive at a value for the Company at three time points.
Probiotics Contribution: We based our assessment of Oragenics probiotics business on a comparative
analysis that considered the valuations of other companies in this industry segment and their sales, as
shown in Table 4. Specifically, we calculated the market capitalization-to-sales (sales achieved in the last
12 months) ratio for each company to obtain an average ratio. We then applied that ratio, 3.19, to our
sales estimates for Oragenics for 2012, 2013, and 2014 to arrive at the probiotics contribution to the
Company's total valuation at those time points.
Table 4. Comparator Analysis of Oragenics Business Units
64

This approach had the following limitations: All of the companies, except BioGaia, sell probiotics affecting
gastrointestinal performance, rather than improving oral health, and that segment of the market is already
fairly mature. Accordingly, the valuations ascribed to those corporations are probably lower than what
might be expected for an emerging market. Also, a portion of the sales of these companies come from
products that are not probiotics. The related impact on the market cap-to-sales ratio is not readily
apparent. Finally, the stocks of these companies are listed on foreign exchanges, where valuations may
not transfer equally to U.S.-listed equities, such as Oragenics shares.
Lantibiotics Contribution: Oragenics has notable valuation inflection points on the horizon. We believe
the single most important event will be success in developing a production system for MU1140. That
would not only move the drug into the lead as the most advanced lantibiotic in development, but it would
also position the Company with its collaborator Intrexon to serve as the supplier of these novel
compounds to the industry. (Note that more than 50 lantibiotics have been identified, but they constitute
only a portion of the bacteriocin group of known, natural antibiotics.) The magnitude of the added value
will ultimately depend on the timing and terms of licensing agreements. However, a deal completed last
year between another antibiotic company, Rib-X, and Sanofi provides a reasonable basis for an estimate.
Their agreement gave Sanofi rights to up to four compounds in exchange for milestones of $744 million,
or $186 million apiece. At the time, the most advanced drug was still at a preclinical stage of
development.
To properly address the lantibiotic project's potential contribution to Oragenics's valuation, we assumed
that MU1140 would complete preclinical development in 2014 and would therefore be at approximately
the same stage of development as Rib-X's antibiotics with a value of $186 million apiece. We discounted
that value back one year at a rate of 30%, thus valuing the antibiotic at $143 million in 2013. We believe
that discount rate is appropriate once production of MU1140 is established, given the compound's known
properties. The result of that analysis, $143 million, is the contribution we estimate MU1140 should make
to Oragenics market cap in 2013. To assess its contribution to the Company's current valuation, we
discounted the $143 million back one additional year at a discount rate of 45% and arrived at $99 million.
The much higher discount rate between 2013 and 2012 is considered appropriate because we believe
creating the production system for lantibiotics is the major hurdle toward commercialization of MU1140
and entering into licensing agreements with the industry.

64
Prices and sales were obtained from CapitalIQ on November 26, 2012.
AB-Biotics SA CATS: ABB 2.73
BioGaia AB OM: BIOG B 4.52
Biosearch SA CATS: BIO 1.35
Probi AB OM: PROB 4.17
Average Probiotics Sales Multiplier: 3.19
Company MC/LTM Revenue
Exchange &
Ticker

Figure 11. Estimated Market Capitalization of Oragenics
Today's Market Capitalization: We believe that Oragenics current market capitalization does not
adequately reflect the value of its probiotics business and the potential of its lantibiotic program. As
shown in Figure 11, our analysis values the Company at $103 million, or $3.36 per share, based on the
number of fully diluted shares outstanding. This is 86% above its current share price of $1.80 per share.
Of the calculated valuation, 96% is contributed by MU1140 and 4% from the probiotics business, partly
because much of this year's efforts have been dedicated to preparing for an expansion of probiotics sales
through R&D and partnering work, rather than promotion of the Evora product line.
12-Month Price Target: Our valuation analysis yields a market capitalization of $156 million, or $5.09 per
fully diluted share outstanding. The probiotics business is estimated to contribute $13 million to the
corporate value, while MU1140 contributes $143 million. Based on this analysis, we have set our 12-
month price target at $5.00.
0.0
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2012 2013 2014
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DISCLOSURES
ANALYST(s) CERTIFICATION: The analyst(s) responsible for covering the securities in this report certify
that the views expressed in this research report accurately reflect their personal views about Oragenics,
Inc. (the "Company) and its securities. The analyst(s) responsible for covering the securities in this report
certify that no part of their compensation was, is, or will be directly or indirectly related to the specific
recommendation or view contained in this research report.
MEANINGS OF RATINGS: Our rating system is based upon 12 to 36 month price targets. BUY describes
stocks that we expect to appreciate by more than 20%. HOLD/NEUTRAL describes stocks that we
expect to change plus or minus 20%. SELL describes stocks that we expect to decline by more than
20%. SC describes stocks that Griffin Securities has Suspended Coverage of this Company and price
target, if any, for this stock, because it does not currently have a sufficient basis for determining a rating
or target and/or Griffin Securities is redirecting its research resources. The previous investment rating and
price target, if any, are no longer in effect for this stock and should not be relied upon. NR describes
stocks that are Not Rated, indicating that Griffin Securities does not cover or rate this Company.
DISTRIBUTION OF RATINGS: Currently Griffin Securities has assigned BUY ratings on 88% of
companies it covers, HOLD/NEUTRAL ratings on 12%, and SELL ratings on 0%. Griffin Securities has
provided investment banking services for 10% of companies in which it has had BUY ratings in the past
12 months and 0% for companies in which it has had HOLD/NEUTRAL, NR, or no coverage in the past
12 months or has suspended coverage (SC) in the past 12 months.
COMPENSATION OR SECURITIES OWNERSHIP: The analyst(s) responsible for covering the securities
in this report receive compensation based upon, among other factors, the overall profitability of Griffin
Securities, including profits derived from investment banking revenue. The analyst(s) that prepared the
research report did not receive any compensation from the Company or any other companies mentioned
in this report in connection with the preparation of this report. The analyst responsible for covering the
securities in this report currently does not own common stock in the Company, but in the future may from
time to time engage in transactions with respect to the Company or other companies mentioned in the
report. Griffin Securities from time to time in the future may request expenses to be paid for copying,
printing, mailing and distribution of the report by the Company and other companies mentioned in this
report. Griffin Securities has received compensation from the Company in the past 12 months for
investment banking services. Griffin Securities expects to receive, or intends to seek, compensation for
investment banking and non-investment banking services from the Company in the next three months.
FORWARD-LOOKING STATEMENTS: This Report contains forward-looking statements, which involve
risks and uncertainties. Actual results may differ significantly from such forward-looking statements.
Factors that might cause such a difference include, but are not limited to, those discussed in the "Risk
Factors section in the SEC filings available in electronic format through SEC Edgar filings at
www.SEC.gov on the Internet.
OTHER COMPANIES MENTIONED IN THIS REPORT:
Henry Schein, Inc. (NasdaqGS: HSIC)
Patterson Companies, Inc. (NasdaqGS: PDCO)

PRICE CHART - 2 Year
Source: BigCharts.com
11/27/2012 - Initiating Coverage: share price, $1.80; rating, BUY; 12-month price target, $5.00.
GENERAL: Griffin Securities, nc. ("Griffin Securities) a FINRA (formerly known as the NASD) member
firm with its principal office in New York, New York, USA is an investment banking firm providing
corporate finance, merger and acquisitions, brokerage, and investment opportunities for institutional,
corporate, and private clients. The analyst(s) are employed by Griffin Securities. Our research
professionals provide important input into our investment banking and other business selection
processes. Our salespeople, traders, and other professionals may provide oral or written market
commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions
expressed herein, and our proprietary trading and investing businesses may make investment decisions
that are inconsistent with the recommendations expressed herein.
Griffin Securities may from time to time perform corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information regarding such
companies. This information is not used in preparation of the opinions and estimates herein. While the
information contained in this report and the opinions contained herein are based on sources believed to
be reliable, Griffin Securities has not independently verified the facts, assumptions and estimates
contained in this report. Accordingly, no representation or warranty, express or implied, is made as to,
and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the
information and opinions contained in this report.
The information contained herein is not a complete analysis of every material fact in respect to any
company, industry or security. This material should not be construed as an offer to sell or the solicitation
of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We
are not soliciting any action based on this material. It is for the general information of clients of Griffin
Securities. It does not take into account the particular investment objectives, financial situations, or needs
of individual clients. Before acting on any advice or recommendation in this material, clients should
consider whether it is suitable for their particular circumstances and, if necessary, seek professional
advice. Certain transactions - including those involving futures, options, and other derivatives as well as
non-investment-grade securities - give rise to substantial risk and are not suitable for all investors. The
material is based on information that we consider reliable, but we do not represent that it is accurate or
complete, and it should not be relied on as such. The information contained in this report is subject to
change without notice and Griffin Securities assumes no responsibility to update the report. In addition,
regulatory, compliance, or other reasons may prevent us from providing updates.

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