Equity Research | BioXyTran, Inc.

(BIXT)

Avi Surana Muskaan Jain

[email protected] m.jain@aviseanalytics
Head of Research | +1 (404) 793-0360 Equity Research Associate

BioXyTran, Inc. INITIATING COVERAGE (July 23, 2019)

Revolutionizing the Stroke Treatment
(OTCPK: BIXT, Target Price: $2.64) Equity | Healthcare / Biotechnology

COMPANY OVERVIEW RECOMMENDATION

We are initiating coverage on BioXyTran, Inc. (BIXT) with a Previous Recommendation Initiation Report
target price of $2.64 per share. Bioxytran, Inc., formerly U.S. High
Risk Rating
Rare Earth Minerals, Inc., is a developmental stage
biotechnology company, focused on developing treatments for Current Share Price (07/22/2019) $1.30
hypoxic conditions such as stroke and ischemia that are a 85.1 M
Shares Outstanding
result of an inadequate blood supply to the organs. It has an
oxygen delivery platform that can treat victims with brain 12 Month Price Target $2.64
stroke trauma. The Company’s lead drug candidate, BXT-25, Total Return (Capital + Yield) 203%
is a glyco-polymer that acts as an anti-necrosis drug, by
carrying oxygen to tissues even when the flow of blood is DCF Valuation $.2.64
blocked and can reverse hypoxia (oxygen deficiency). Another Market capitalisation $110.6 M
drug candidate from Bioxytran, BXT-252, is designed to treat
chronic wounds resulting from ischemia caused by occlusion Average Volume 2,422
of capillaries. 52-Week High/Low $0.20 – $1.95

Investment Rationale Financial Forecasts & Valuation Metrics

Overcoming the Biggest Challenge in Stroke Treatment Y/e FY FY18A ....FY26F FY27F FY28F
The Company continues to focus on developing BXT-25, the - 7.36 19.02 27.36
Revenue ($ in M)
only ambulatory treatment which can overcome the problem of
% Growth (Y-o-Y) - (1.4%) 158.4% 43.9%
a minuscule 3-hour treatment window available for victims of
stroke. With an exclusive licensing agreement with MDX EBITDA Margin (%) - 80.8% 92.4% 94.5%
Lifesciences for its MDX viewer, the gold standard for EBIT ($ in M) (0.05) 5.76 16.95 24.64
measuring brain tissue and oxygen recovery status, the PAT ($ in M) (0.05) 4.32 12.96 18.73
Company is not only on an accelerated pathway for the
PAT Margin (%) - 58.7% 68.2% 68.5%
approval of its drug from the FDA, but also poised to capture
a majority share of the multibillion-dollar global stroke market. EV/Sales (x) - 13.3 5.2 3.6
EV/EBITDA (x) - 16.5 5.6 3.8
Other Potential Drugs in the Pipeline
P/BV (x) - 3.3 2.9 2.1
Bioxytran plans to adopt a multipronged strategy by
developing sub-classes of BXT-25 for numerous application RoCE (%) - 20.1% 50.1% 58.0%
such as wound-healing and organ transplantation. Its clinical Source: Company, Avise Analytics Estimates
pursuits are aimed at capturing a large market share of the
anti-necrotic drug space with special focus on hypoxia.
Risks
Proven Track Record of Dr. David Platt
• Bioxytran plans to initiate pre-clinical studies of BXT-25 soon.
With Dr. David Platt, an expert in carbohydrate chemistry with
But such clinical drug development process are expensive,
a decade long management experience at its helm, BioXytran
time-consuming and uncertain.
is on an accelerated path to emulating his earlier successes.
Dr. Platt’s various achievements include a portfolio of patents, • Failure to raise additional funding may adversely impact the
distinction of uplisting two companies from OTC to NASDAQ management’s planned R&D initiatives.
and creating a value of nearly $1 billion for the investors • Failure to secure FDA approval may delay or impair the
through three publicly traded companies. Company’s ability to commercialize its planned drug portfolio.

INVESTMENT VIEW: Share Price Chart

AVISE ANALYTICS

A growing geriatric population along with a rising prevalence of

Volume (in 000s) BI XT ($)
stroke present the ideal conditions for future growth. The MDX
$2.00 25,000
viewer bolsters the robust intellectual property position of
BioXytran, as management believes it is the only available $1.50
20,000

development stage device that can measure increasing tissue 15,000

oxygenation. However, the inability to garner sufficient funds $1.00
10,000
for the drug development process may delay the clinical $0.50
5,000
process of BXT-25. We are attracted to its strong management
team and unique breakthrough technology. We adopt DCF $0.00 0
Jul 19
May 19
Feb 19

Mar 19

Apr 19
Nov 18

Dec 18

Jan 19

Jun 19

valuation to arrive at a price target of $2.64/share, discounted

at a WACC of 9.54%.
Source: Yahoo Finance, Avise Analytics Research

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document.
 Equity Research | BioXyTran, Inc. (BIXT)

Overcoming the Biggest Challenge in Treating Stroke

The Company plans to submit an Investigational New Drug (IND) application for its lead drug
candidate, BXT-25, to the US FDA and initiate clinical trials. BXT-25 is designed to support the
oxygenation of the brain until the clot is dissolved by medication or removed by surgery. By
leveraging its breakthrough technology for hypoxic condition and necrosis prevention, it aims to
address the biggest challenge in the multibillion global stroke management industry.

5th Leading Cause of Death in the United States

Stroke is a leading cause of disability, cognitive impairment, and death in the United States and
accounts for 1.7% of the national health expenditures. Since the population is aging and the risk of
stroke more than doubles for each successive decade after the age of 55 years (as shown in the
chart below), these costs are anticipated to rise dramatically.

US Population Estimate : By Age

Up to 19 20 - 39 40 - 59 60 - 79 80 and above
4.6% 4.6% 4.6% 4.6% 4.6% 4.6%
16.5% 16.9% 17.4% 17.9% 18.3% 18.8%

27.4% 27.2% 26.8% 26.5% 26.2% 25.8%

Population between
the age group of 60 to
80 years is rising. 26.2% 26.3% 26.4% 26.4% 26.4% 26.5%

25.3% 25.0% 24.8% 24.6% 24.5% 24.3%

2012 2013 2014 2015 2016 2017

Source: U.S. Census Bureau, Population Division
Release Date: June 2018

With the aging population, the prevalence of stroke is projected to increase, which translates into
an additional 3.4 million people with stroke by 2030, as compared to 2012. By 2030, U.S. Census
Bureau projects that nearly 4% of the US population will suffer a stroke. Because the risk of stroke
increases with age, people ≥65 years of age (particularly those ≥80 years of age) have a higher
prevalence of stroke, and this segment of the population will grow substantially over the next 18
years (as shown in the chart below).

Projections of Crude Stroke Prevalence (%), 2012–2030, in the United States

18-44 45-64 65-79 ≥ 80

15.41 15.43 15.45 15.45 15.48

Stroke prevalence is
projected to increase
the most among
people in the 65-79- 9.02 9.04 9.06 9.09 9.11
year-old age category

2.82 2.82 2.82 2.83 2.84

0.71 0.71 0.71 0.71 0.71
2012 2015 2020 2025 2030
Source: American Stroke Association
Release Date: August 2013

Not just the incidences of strokes, even the total direct medical stroke-related costs are increasing
at an alarming rate. It increased by more than 16% in the three years until 2015 and is projected to
triple from $71.55 billion in 2012 to $184.13 billion by 2030. These costs are projected to increase
AVISE ANALYTICS

the most among people in the 65- to 79-year-old age category.

Projected Direct (Medical) Costs of Stroke, 2012–2030, in the United States (USD in Bn)
18-44 45-64 65-79 ≥ 80
Source: American Stroke Association 70.04
Release Date: August 2013 47.91
35.65
28.76 89.35
25.76 71.75
53.59
31.66 38.82
12.99 14.45 16.85 19.36 22.69
1.14 1.25 1.48 1.75 2.05
2012 2015 2020 2025 2030

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 1
 Equity Research | BioXyTran, Inc. (BIXT)

According to the American Stroke Association, stroke ranks at No. 5 among all causes of death in
the US, killing ~142,000 people every year. In 2016, the age-adjusted stroke death rate was 37.3
per 100,000, a decrease of 16.7% from 2006, whereas the actual number of stroke deaths
increased 3.7% during the same time period. Assuming death rate to increase by 2% per annum,
we estimate that the average death due to stroke to reach ~190,000 people a year by 2030.

Average Death Due to Stroke: United States (in million)

0.19 mn

0.17 mn

Stroke accounted for

about 1 of every 19 0.15 mn
deaths in the US.
0.14 mn
2016E

2017E

2018P

2019P

2020P

2021P

2022P

2023P

2024P

2025P

2026P

2027P

2028P

2029P

2030P
Source: American Stroke Association, Avise Analytics Research
Release Date: August 2013

2nd Leading Cause of Death Worldwide

Stroke has already reached epidemic proportions. 1 in every 6 individuals worldwide suffers a
stroke in their lifetime. According to the latest research from World Stroke Organization, more than
10 million people worldwide suffer a stroke each year and 5.8 million people die from it. Current
trends suggest that unless appropriate action is taken, the number of annual deaths (which was
estimated at 6.7 million in 2015) will climb to 8.6 million by 2030.

Average Death Due to Stroke: Worldwide (in million)

8.58 mn

7.90 mn

7.27 mn

6.70 mn
2015E

2016E

2017E

2018P

2019P

2020P

2021P

2022P

2023P

2024P

2025P

2026P

2027P

2028P

2029P

2030P
Source: World Stroke Organization, Avise Analytics Research

Assuming that 10 million people are likely to suffer from stroke each year and given that worldwide
death is expected to increase at 2% per annual till 2030, we estimate that stroke prevalence cases
may eventually cross 116 million, compared to 80 million patients in 2016 (as shown in the chart).

Projections of Crude Stroke Prevalence,2012-2030 in NUMBERS (units in million)

116.2 mn
114.4 mn
112.6 mn
110.6 mn
108.4 mn
106.2 mn
103.8 mn
101.2 mn
98.6 mn
95.8 mn
AVISE ANALYTICS

92.9 mn
89.9 mn
86.7 mn
83.5 mn
80.1 mn
2016E

2017E

2018P

2019P

2020P

2021P

2022P

2023P

2024P

2025P

2026P

2027P

2028P

2029P

2030P

Source: World Stroke Organization, Avise Analytics Research

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 2
 Equity Research | BioXyTran, Inc. (BIXT)

What Causes a Stroke?

Stroke is a condition where the blood supply to the brain is disrupted, resulting in oxygen
starvation, brain damage and loss of function. It is most commonly caused by a clot in an artery
supplying blood to the brain, a situation known as ischemia.

Ischemic Stroke

It can also be caused by hemorrhage, when a burst vessel causes blood to leak into the brain.
Stroke can cause permanent damage, including partial paralysis, impairment in speech,
comprehension and memory. The extent and location of the damage determines the severity of
the stroke, which can range from minimal to catastrophic.

Hemorrhage Stroke

Promises & Limitations in the Ischemic Stroke Treatment

The most common stroke is the ischemic stroke, which accounts for ~ 85% of the total stroke
cases in the United States. It can either be treated using drugs or through mechanical devices.

Drug Treatment
The only Food & Drug Administration (FDA) approved drug treatment for acute ischemic stroke is
the Tissue plasminogen activator (tPA). It is given via intravenous therapy (IV) and works by
dissolving the clot and improving blood flow to the part of the brain being deprived of blood. The
limitations in this treatment is that the tPA should be administered within three hours (and up to 4.5
hours in certain eligible patients) of the onset of symptoms.
AVISE ANALYTICS

Mechanical Devices
Some ischemic strokes are treated with a small mechanical devices that removes or breaks up
blood clots. This procedures is popularly known as Endovascular therapy. A surgeon inserts a
small mechanical device into the blocked artery using a thin tube. Once inside, the tool traps the
clot, and either breaks it up or the surgeon pulls it out of the brain, reopening the blocked blood
vessel in the process.

Though, it has greatly improved survival rates. it has some limitations. The procedure can be
performed up to six to eight hours after a person exhibits symptoms of stroke and can be extended
up to 24 hours. However, the probability of a good outcome declines as we move further and
further away from the onset of symptoms.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 3
 Equity Research | BioXyTran, Inc. (BIXT)

Studies from the US National Institute of Health and National Institute of Neurological Disorders
and Stroke, show that time is brain, as it is very crucial in case of stroke.

Of the 240 patients who were otherwise eligible for inclusion in our analysis, 182 (76%) achieved
angiographic reperfusion. Mean time from symptom onset to reperfusion (i.e., procedure end) was
325 min (SD 52). Increased time to reperfusion was associated with a decreased likelihood of
good clinical outcome (unadjusted relative risk for every 30-min delay 0·85 [95% CI 0·77-0·94];
adjusted relative risk 0·88 [0·80-0·98]).

Time to Angiographic Reperfusion and Clinical Outcome After Acute Ischemic Stroke

Source: US National Library of Medicine National Institutes of Health

Release Date: April 2014

Delays in angiographic reperfusion leads to a decreased likelihood of good clinical outcome in

patients after a moderate to severe stroke.

Major Challenges in the treatment of Ischemic Stroke

Limited time window is one of the foremost limitations for not receiving IV tPA. In 2009, the
American Stroke Association published a scientific advisory supporting the use of tPA within the 3-
to 4.5-hour window, and this information was then disseminated to participating hospitals.

According to the research published in National Institute of Health by Brandi R. French, MD in

2016 Nov-Dec, between 15% to 32% of stroke patients successfully reach the hospital within three
hours of symptom onset, while others fail to reach the hospital within the given time window. Only
2% to 3% of stroke patients receive intravenous tPA therapy, while between 1% to 7% of stroke
patients arrive at hospital in-time for endovascular therapy.

The major disadvantage is that there is no treatment available for stroke patients before reaching
the hospital. Even after reaching the hospital, very limited patients get treatment to dissolve the
clot. This is because the treatment itself could be dangerous to the patient. Sometimes giving too
much oxygen to remove the clot may also damage the brain.

However BXT-25 is Breaking Stereotypes

To prevent catastrophic brain damage from stroke, the Company is developing a drug, BXT-25,
also known as oxygen bridge. It is a glycol-polymer, made of hybrid molecules of Heme chemical
structure, taken from the hemoglobin molecule and a proprietary polymer chemical composition.
The drug is intravenously administrated to supply oxygen to the hypoxic tissue.
AVISE ANALYTICS

Chemical Structure of BXT-25

Bovine hemoglobin Extract Purify and Extract Heme and Mixed with a
collected from hemoglobin crosslink reattach to a saline solution, to
controlled herds of protein polymer be IV-infused
US cattle Source: Company

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 4
 Equity Research | BioXyTran, Inc. (BIXT)

Heme, the Oxygen Carriers of Human Blood Cells

According to BJA Education, a single red blood cell (RBC) consists of 200-300 million hemoglobin
molecules. Each hemoglobin molecule is made up of globin group (protein subunits) surrounded
by four heme group. Each heme group contains one iron atom, that can bind to one oxygen
molecule. Therefore, each hemoglobin molecule having four heme group can carry 4 oxygen
molecules.

Image Illustration of Red Blood Cell

Red Blood Cell Hemoglobin Heme

1 Red Blood Cell (RBC) Oxygen Heme

carries
200–300 million Hemoglobin
or
800-1,200 million Heme
or
800-1,200 million Oxygen

In other words, each RBC

contains 800-1,200 million
Heme
Source: CNX Openstax, Jynto (talk), Avise Analytics Research

Whereas, Excess Free Heme Causes Toxicity

According to the Frontiers, Heme (iron-protoporphyrin IX) is an essential co-factor involved in

multiple biological processes of transporting and storing oxygen, transferring electrons and many
more. In contrast to the positive functions of heme, excess free heme leads to undesirable toxicity.
It can cause cell damage and tissue injury since heme catalyzes the formation of reactive oxygen
species (ROS), resulting in oxidative stress.

According to National Institute of Health (NIH), oxidative stress occurs when there is an imbalance
between free radicals and antioxidants in our body. Free radicals like Heme are the products of
normal cellular metabolism. A free radical can be defined as an atom or molecule containing one
or more unpaired electrons in valency shell or outer orbit and is capable of independent existence.
The odd number of electron(s) of a free radical makes it unstable, short lived and highly reactive.
Because of their high reactivity, they can extract electrons from other compounds to attain stability.
Thus the attacked molecule loses its electron and becomes a free radical itself, beginning a chain
reaction cascade which finally damages the living cell. On the other hand, antioxidants are the
molecules that can donate an electron to a free radical without making themselves unstable. This
causes the free radical to stabilize and become less reactive. When there are more free radicals
present that can be kept in balance by antioxidants, the high reactivity property of free radicals
extract electrons from other compounds to attain stability. As a result, the attacked molecule loses
its electron and becomes a free radical itself, beginning a chain reaction cascade which finally
damages the fatty tissue, DNA, and proteins in the body. Proteins, lipids, and DNA makes up a
large part of the body, so that damage can lead to a vast number of diseases over time.

Image Illustration of Reaction Between Free Radical and Antioxidant

ANTIOXIDANT Unpaired Electron

AVISE ANALYTICS

FREE RADICAL
Source: CNX Openstax, Avise Analytics Research

However, BXT-25 has Overcome the Limitation of Heme

Bioxytran applies a unique chemistry to stabilize the free heme, by reattaching it to a proprietary
polymer chemical structure, forming a glyco-polymer hybrid molecules, BXT-25. The polymer
stabilizer mimics the sugar found in the blood cells. It is made from the galactoarabinan family of
sugar chains and is therefore not metabolized.

When the heme stabilizes, it does not cause damage to the proteins, DNAs and lipids and thus
prevents undesirable toxicity. Using carbohydrate chemistry, heme and the co-polymer is
functioned to deliver oxygen to the brain.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 5
 Equity Research | BioXyTran, Inc. (BIXT)

BXT-25 - Stabilized Oxygen-Carrying Protein

Source: Company Presentation, Avise Analytics Research

Proof of Concept of BXT-25 in Animals

Following are the key takeaways:

• Absence of nitric oxide scavenging, no increased blood pressure in diabetic mice (Harvard
Medical, 2013)
• No toxicity from replacing 90% of the blood in dogs with similar chemistry to BXT-25.
• Oxygen delivery and brain recovery in stroke induced rats with similar chemistry to BXT-25
(Harvard Medical, 2013)

Middle Cerebral Artery Blockage Model in Rats

Blood clot in the

middle cerebral
artery

Blockage in the
internal carotid Adding BXY-25 after induced stroke in rat. A
artery
comparison shows between Perfused(top) and
Un-perfused Brains
Source: Company Presentation, Avise Analytics Research

Unique Mechanism of Action of BXT-25

The drug, BXT-25, is a whopping 5000 times smaller than a red blood cell. It is small enough to
overcome severe blockage and bring oxygen to the hypoxic tissue. The reduced size of the drug
enables it to perfuse constricted ischemic capillaries, that are inaccessible to red blood cells due to
clots. Instead of dissolving or breaking down the clot, BXT-25 penetrates a blood-clot to reach the
brain within 3 minutes, reducing time-to-needle by a whopping 90%.

BXT-25 Brings Oxygen to the Hypoxic Tissue

AVISE ANALYTICS

Blockage Due to Blood Clot Blockage Due to Blood Clot

BXT-25, is whopping
5000 times smaller than
a red blood cell

Source: Company, Avise Analytics Research

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 6
 Equity Research | BioXyTran, Inc. (BIXT)

Until the clot is dissolved, or surgery is performed, it can continuously oxygenate the hypoxic
tissue for up to 9 hours until the next IV injection is administered, and hence helps to widen the
treatment window. BXT-25 is equally effective in case of hemorrhagic stroke.

Over-oxygenation is not an issue with BXT-25. The glycoprotein does not release oxygen into
tissues if too much oxygen is already present, and keeps the normal tissue unaffected, where
oxygen concentration is too low. The laws of physics and partial pressure chemistry are
responsible for preventing over-oxygenation. Oxygen diffuses from high to low concentration.
Perfusion works off the oxygen pressure differential. What keeps oxygen on the heme is a
chemical bond. Perfusion of oxygen into tissue happens when the pressure of the tissue is low.
Low pressure breaks the chemical bond.

Image of Demonstration on How it Works

Source: Company, Avise Analytics Research

Can be Stored for More Than Three Years

An interesting fact about BXT-25 is that, unlike blood, it does not need to be stored in a
refrigerator. This new molecule is stable in solution for 3 years at room temperature and can be
freeze-dried for even longer shelf life.

Only Treatment Before Reaching the Hospital

While tPA is the only available FDA approved treatment for stroke, it needs to be administered
within 3 hours of onset of symptoms. Therefore, the importance of immediate action cannot be
emphasized enough, when the first symptoms of a stroke appear. For every minute the brain is
deprived of oxygen, it looses 2 million brain cells which accelerates brain aging by 3.1 weeks. In a
It widens the treatment typical stroke scenario, 30 minutes is spent getting to the hospital which results in brain aging of
window by 9 hours
1.8 years and then an additional 2 hours to do CT scan and get imaging, resulting in another 7.2
years of brain aging. This brings the total aging of the brain to 9 years in an average stroke case.

Hospital Trip Could Age Brain Close to a Decade

Neurons Lost Synapses Lost Myelinated Fibers Lost Accelerated Aging

Per stroke (average) 300 million 2 trillion 1,800 km/1,100 miles 9 years

Per hour 120 million 830 billion 710 km/440 miles 3.6 years

Per minute 1.9 million 14 billion 12 km/7.5 miles 3.1 weeks

Per second 32,000 230 million 200 meters/220 yards 8.7 hours
Source: Company, Avise Analytics Research

The CT scan is mandatory because it is imperative to determine whether the victim has an
ischemic stroke or hemorrhagic stroke as tPA can only be given to 87% of stroke patients that
suffered an ischemic stroke. The tPA works by dissolving the clot and improving blood flow to the
part of the brain being deprived of blood supply. But, if the victim falls in the category of
hemorrhagic stroke and tPA is administered before diagnosis, it would result in the patient’s death.
AVISE ANALYTICS

However, even in case of tPA being administered to an ischemic stroke patient, there is still a risk
that when the clot is dissolved and blood suddenly flows back into the affected area of the brain,
there will be bleeding that can cause more damage, or even death.

Also, it is quite challenging to complete the following within 3 hours of critical window:
1. Identifying the stroke symptoms,
2. Reaching hospital,
3. Diagnosing stroke with imaging, and
4. Administrating tPA for Ischemic Stroke.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 7
 Equity Research | BioXyTran, Inc. (BIXT)

Hospital Trip Could Age Brain Close to a Decade

Arrival and initial

Onset of Ambulance Thrombolysis or Blockage
assessment and
symptoms arrives at home PTCA/CABG Removed
treatment in ER

Source: Company, Avise Analytics Research

The use of BXT-25 could drastically expand this window. Once developed and approved by the
FDA, BXT-25 will be the only treatment that can be given to any stroke patient in an ambulance for
immediate relief, as it is effective in both ischemic and hemorrhagic stroke. The doctor will no
longer have to wait for CT scan, and subsequent therapeutic decisions, to understand whether the
patient has had a hemorrhagic stroke or not. The drug can be injected to patient in the ambulance
on the way to the hospital. We believe, BXT-25 would be the fastest way possible to save the brain
cells from dying soon after the occurrence of a stroke. The drug is not meant as a long-term
solution, but rather as a stop-gap measure. However, if the patient cannot get a clot removed,
BXT-25 could be used to oxygenate the patient’s brain over a longer period of time to minimize
damage.

Comparing the Efficacies of BXT-25 with its Peer Group

Development Stage Penetrate Time Window Expand tPA Available in Treat both
Cure Stroke Dissolve Clot
Drugs Through Clot to Take Drug Window Ambulance AIS & HS

Pre-treatment Yes; Effective for 3

TSC No 3 Hours No Yes Yes
drug hours

Treatment Yes; improvement

DM199 No 24 Hours tPA not required No No
drug after 12 days

Pre-treatment
DDFPe No Yes 3 Hours 1.5hrs to 9hrs Yes Yes
drug

Treatment
TMS007 Yes No 24 Hours tPA not required No No
drug

Pre-treatment Yes; Restores in 3

BXT-25 No Any-time > 9hrs Yes Yes
drug minutes

Source: Avise Analytics Research

On comparing the efficacies of each development stage stroke management drug with BXT-25, it
is quite interesting to see that BXT-25 would be able to address some of the most serious
limitations in the stroke treatment measures that are currently available. The above comparison
table gives us a clearer picture – it shows that BXT-25 would be able to address 5 out of 7
highlighted limitations and would surpass most of the drugs that are currently being developed by
peer companies.

Upon completing the clinical stages in 6 to 7 years, we expect doctors to prescribe this pre-
treatment drug to most of the stroke patients, to be taken while in the ambulance or at home,
before reaching the hospital for treatment.

Expected Roadmap of Timeline for Clinical Trials

AVISE ANALYTICS

Source: Company, Avise Analytics Estimates

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 8
 Equity Research | BioXyTran, Inc. (BIXT)

Licensed Technology to Measure the Tissue Metabolic State of the Brain

The Company has entered into an exclusive licensing agreement with MDX Lifesciences, Inc.
(MDX) that will allow Bioxytran to continue commercial development of MDX technology and
develop new protocols that measure the tissue metabolic state of the brain.

MDX viewer is a monitoring system that analyzes, in real time, the physiological activities at the
tissue level integrated with systemic vital signs. It is connected to the urethral wall via a Foley
catheter. It is an adjunctive bedside patient device to be applied in intensive care, operating suits
and emergency care settings, providing early identification / warning of the body’s critical metabolic
imbalances or Tissue Metabolic Score (TMS) of a patient.

Image Illustration of Insertion of the Foley Catheter to the Urethra

Real Time Monitoring of Sensor Insertion to the The Smart Foley Catheter
Tissue Viability Urethra via a Foley Catheter with 3 Measurement Points

Source : Mdx Lifesciences, Inc., Avise Analytics Research

The four parameters monitored at the tissue microcirculation and cellular compartment are as
follows:

Image Illustration of Four Parameters Monitored by MDX Viewer

Mitochondrial NADH Redox State Tissue Blood Flow (TBF)

Blood Oxygenation (HbO2) Tissue Blood Volume (TBV)

Source : Mdx Lifesciences, Inc., Avise Analytics Research

These parameters are then combined with systemic hemodynamic parameters, cardiovascular and
respiratory, including heart rate, system IC blood pressure, respiratory rate, systemic haemoglobin
saturation and body core temperature. The result is an entire body score, which is important to
AVISE ANALYTICS

monitor whenever there is a hypoxic or critical pathologic state in the body.

The last model of the device was tested in animals that were mimicking the conditions of lack of
oxygen in the human brain or in other organs in the body. The stability of the device was tested by
monitoring an animal model for a number of hours.

With the help of Tissue Metabolic Score (TMS), tissue oxygenation levels can be measured before
and after the administration of BXT-25. Once it is proved that tissue oxygenation increased, the
drug can be approved.

9
 Equity Research | BioXyTran, Inc. (BIXT)

Bioxytran Agreed to Pay the Licensing Fee

Bioxytran agreed to pay $500,000 as licensing fee, contingent upon its receipt of $3.0 million or
more in equity financing under the S-1 registration. Bioxytran also agreed to reimburse MDX for
development costs required to use the device with BXT-25 or other compounds, plus a 20% value
added fee. We trust that MDXViewer will further the market position of BXT-25.

Projected Market Size of BXT-25

Following the FDA approval of the drug (BXT-25) for its sale and marketing in the United States,
we forecast that at least 3% of the Stroke patients will be prescribed this drug for use during the
initial year of sales – this figure may increase to reach as much as 20% in 7 to 8 years.

Similarly, for rest of the world, We forecast that at least 1.5% of stroke patients will be prescribed
this drug for use during its initial year of sales. This number may grow to reach as much as 9% in
7-8 years.

Bxt-25 Drug Users Over Total Stroke Patients*

Unites States Rest of the World (ROTW)

21.3 21.9 94.9 96.0 97.0 97.9 98.6

20.1 20.7 90.8 92.3 93.7
18.9 19.5
17.7 18.3 20%

9%

3%
1.5%

3.8 4.1 4.4

2.8 3.3
1.5 2.1 5.8 6.8 7.9 8.4 9.0
0.6 1.4 3.2 4.5

20 26P 20 27P 20 28P 20 29P 20 30P 20 31P 20 32P 20 33P 20 26P 20 27P 20 28P 20 29P 20 30P 20 31P 20 32P 20 33P

Proj ected stroke pa ti ent in the U.S Bio XyTra n drug u sers Proj ected stroke pa ti ent in R.O.T.W. Bio XyTra n drug u sers

Source: Avise Analytics Estimates

*The above forecast is based on conservative estimates.

Conservative Estimates on the Cost of BXT-25 Per Patient

According to a new study published by the National institute of Neurological Disorders and Stroke,
approximately 13% of the total direct medical cost on stroke accounts for medication in the United
States. Based on our most conservative estimates, we expect BXT-25 to cost a minimum of 5% of
the total medication cost. In other words, the total dosage of BXT-25 in the U.S. would cost only
$55 per patient in 2026, which is forecasted to reach $64 by 2033. Similarly, in rest of the world, it
is estimated to cost a minimum of $19 per patient in 2026 and is forecasted to reach $25 by 2033.

BXT-25 to Cost Only 5% of the Total Medication Cost

Unites States Rest of the World (ROTW)

5%

1093.04 $378.8
54.6522 $18.9
5163
AVISE ANALYTICS

5816 Year: 2026

Total Med icatio n Cost Cost of BXT-25 i n U.S. Total Med icatio n Cost Co st of BXT-2 5 in R.O.T.W

Source: Avise Analytics Estimates

10
 Equity Research | BioXyTran, Inc. (BIXT)

Collaboration to Develop & Market BXT-25

The management of the Company expects to spend as much as $10 million to complete its Phase-
2 clinical trial. Upon successful completion of Phase-2 trial of BXT-25, the Company plans to
collaborate with an established pharmaceutical company or companies, to further develop and
market the drug. Based on the valuation of similar deals that have happened in the past, we
estimate Bioxytran to license the rights for $25 million, that is, 2.5x its capital outflow.

Under the same agreement, we estimate the Company to receive manufacturing royalties of 15%
& 10% on net sales in the United States and Rest of the World, respectively.

Licensing the Development & Selling Rights at 2.5x its Capital Outflow

$2M
$3.4M
$12.4M

$12.4M

Source: Avise Analytics Estimates

Reasonable Estimates on Licensing Fees

Based on our reasonable assumptions, we forecast that the 15% royalty fees on the sale of BXT-
25 in the United States would increase from $4.8 million in 2026 and reach $ 42.8 million by 2033.
Similarly, the 10% royalty fees for rest of the world would fetch a royalty fee of $ 2.6 million in 2026
which will grow to $ 22.3 million by 2033.

Licensing the Development & Selling Rights at 2.5x its Capital Outflow

United States Rest of The World

42.8 22.3
34.7 17.9

24.3 12.2

4.8 2.6

FY26 `27 `28 `29 `30 `31 `32 `33 FY26 `27 `28 `29 `30 `31 `32 `33
Source: Avise Analytics Estimates

The above conservative estimates look very reasonable and should be achievable.

The path breaking technology of BXT-25 looks promising. We assume that Bioxytran will soon
AVISE ANALYTICS

start its preclinical study and expect the Company to successfully complete each of its clinical
phases on time.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 11
 Equity Research | BioXyTran, Inc. (BIXT)

Other Promising Drugs in the Pipeline

The Company plans to develop and commercialize two more products namely, BXT-252 and BXT-
251 to address the challenges in the treatment of unmet clinical needs.

BXT-252 to Bring Disease-Altering Treatment in Wound Management

Bioxytran is developing new drug candidates and next generation technologies that will address
real unmet medical needs in Ischemic wound healing. A second drug candidate, BXT-252 is a
chemical structure sub-class of BXT-25, sharing the same physical properties (1/5000th of red
blood cell) however, its proprietary co-polymer can improve the healing of pressure and arterial
ulcers. It will be designed to treat the hypoxia in wounds that do not heal. The company is planning
to begin pre-clinical studies and apply to the FDA for approval for these indications.

BXT-252, will be an injectable anti-necrosis drug, specifically meant to treat ischemic wounds,
where poor blood flow causes the cells to die and damages the tissue. Generally, the mean
healing time of ischemic wounds is about 3-6 months. However in the case of BXT-252, the
Company expects, that it will enable quick delivery of oxygen to wounded tissue in conditions
where red blood cells cannot reach, minimizing the time of wound healing significantly.

Growing Market Size, Prevalence and Cost of Wound in the U.S.

As per the latest research from Markets and Markets, the wound care market is expected to reach
USD 22.81 billion by 2022 from USD 18.99 billion in 2018 at a CAGR of 3.7. According to National
Institute of Health , chronic wounds affect around 6.5 million patients in the United States every
year. It is claimed that in excess of $25 billion is spent annually on treatment of chronic wounds
and the burden is growing rapidly due to increasing health care costs, an aging population and a
sharp rise in the incidences of diabetes and obesity worldwide. 7.8% of the U.S. population suffers
from diabetes. It is estimated that up to 25% of all diabetics will develop a diabetic foot ulcer. All
these factors envisage a huge potential for BXT-252 drug candidate to accelerate revenue growth
in the wound care market.

Prevalence of Wounds in the U.S in 2014 by Type of Wound (in millions)

0.28
0.25
0.21 0.21 0.22
0.19 0.19
0.15

0.07
0.06
0.03
0.01

Venous Venous Pressure Chronic Surg ical Surg ical Skin Skin Traumatic Arterial Diabetic Diabetic
Inf ections ulcer ulcer wounds Inf ections disorders Inf ections wounds ulcer foot ulcer Inf ection
Source : Value in Health, Avise Analytics Research

BXT-251 Bringing Innovation in Organ Preservation

According to Euro transplant Annual Report 2010, up to 72% of donated organs go to waste and
are not transplanted. BXT-251, another drug candidate of Bioxytran, aims to prolong
extracorporeal circulation and preservation of organs for transplant during transport or storage
from hours to days.

Bioxytran Pipeline

Drug Candidate Indication Pre-clinical Phase 1 Phase 2 Phase 3 Rights

AVISE ANALYTICS

Organ
BXT-252 Preservation Bioxytran Inc.
BIXT

Wound Bioxytran Inc.

BXT-251 Healing BIXT

Source: Company

We believe both BXT 251 & 252 are highly potent drug candidates that are structurally different
from many existing drugs and may address the key issues of emerging treatment resistance that
limit duration of preservation & prompt and effective healing, respectively.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 12
 Equity Research | BioXyTran, Inc. (BIXT)

Proven Track Record of Dr. David Platt

Dr. David Platt, Chief Executive Officer and Chairman of the Company, is a world-renowned
carbohydrate chemist with a proven track record of shaping preclinical and clinical regulatory
strategies and securing product approvals. With an extensive experience spanning over 30 years
in the pharmaceutical industry, Dr. Platt created a value of nearly $1 billion for the investors of
three publicly traded companies and has successfully raised $150 million, directly from public
markets in the United States. He holds a solid patented portfolio of breakthrough technologies and
has led the development of two drug candidates from concept through phase 2 clinical trials.
Dr. David Platt
Dr. Platt received a Ph.D. in Chemistry in 1988 from Hebrew University in Jerusalem. In 1989, he
was a research fellow at the Weizmann Institute of Science, Rehovot, Israel, and from 1989 to
1991, he was a research fellow at the Michigan Foundation (re-named Barbara Ann Karmanos
Institute). From 1991 to 1992, Dr. Platt was a research scientist with the Department of Internal
Medicine at the University of Michigan.

In 1995 Dr. Platt founded International Gene Group (NASDAQ: IGGI, GLGS now LPJC); where he
developed the core technology of the company for the treatment of cancer and chronic kidney
Is now diseases and continued to serve the firm through 2000. At initiation, the valuation of IGGI was
around $15-20 million which reached to $600 million by 2000.

Between 2001 and 2009, Dr. Platt became a founder of Pro-Pharmaceuticals, Inc. (OTC: PRWP
and AMEX: PRW, now NASDAQ: GALT), and served as its chief executive officer and board
chairman.

Observable Performance of Pro Pharmaceuticals During his tenure (2001-2009)

Dr. Platt co-founded Pro Pharmaceuticals, which eventually changed its name to Galectin
Therapeutics (GALT). He served as the Chairman, President and Chief Executive Officer in Pro
Pharmaceuticals. In this company, he had a key role, along with Anatole Klyosov, in inventing the
galectin inhibitor, DAVANAT, for the treatment of cancer. This had a ~$500 million market cap at
its peak. The company was highly dependent on David Platt to develop their products and also to
pursue collaborations.

Key Milestone Achieved During His Tenure (2001-2009)

• Raised more than $3 million • Initiated and submitted to • Raised $10.0 million by • Entered into a license
in capital 2002 the FDA a Phase II clinical issuing 7% Convertible agreement with Medi-Pharma
• The FDA accepted the IND of trial of DAVANAT ®/5-FU Debentures and common to commercialize all of the
DAVANAT, authorizing the in colorectal cancer stock warrants through a company’s polysaccharide
company to begin Phase I patients private placement technology in exchange for a
clinical trials royalty equal to 10% of Medi-
Pharma’s net revenues from
products sold based on the
licensed technology.

2001 2002 2003 2004 2005 2006 2007 2008 2009

• Conducted preclinical trial • Began Phase I clinical trial of • Successfully completed a • From inception through • DAVANAT
in 2001 on DAVANAT DAVANAT ® and DAVANAT Phase I clinical trial for 2007 fiscal year, raised completed Phase II
®/5-FU end-stage patients with all approximately $37.6 trials for treatment
• Raised approximately $9.9 solid tumours of colorectal
million from these
million in new financing in • Completed Phase II trial cancer.
2003 offerings.
for end-stage patients with • Received $1.0
metastatic colorectal million in advance
cancer. under the terms of
the agreement
with Medi-Pharma
Source : Galectin Therapeutics, Avise Analytics Research
AVISE ANALYTICS

Summarizing the Achievements of the Company During his Tenure 2001-2009

1 Raised Capital: 2 U.S. Patents 3 Licencing 4 DAVANAT ® 5 DAVANAT ®

held: Agreement ,the lead drug completed
Achieved: candidate Phase II clinical
completed trial for second
Phase I clinical line and end
$43.4 million 5 1 trial for 3 stage patients
diseases with colorectal
cancer
Received $1.0 mn
in advance

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 13
 Equity Research | BioXyTran, Inc. (BIXT)

Significant Progress at Boston Therapeutics During His Tenure (2010-2016)

Bringing his management experience to the role, Dr. Platt became the Founder, Chairman and
Chief Executive Officer of Boston Therapeutics between 2010-2016. He has played a significant
role in the development and commercialization of complex carbohydrate science, and a pipeline of
carbohydrate-based therapeutics, to address a variety of unmet medical needs in treating diabetes
and inflammatory diseases. During this period, he invented and developed all the Intellectual
properties of the company. His expertise was particularly valuable to bring progress to the clinical
development of their drugs and work, to expand market awareness and sales of SUGARDOWN®
, a dietary supplement designed to reduce post-meal sugar spikes.

Key milestone achieved during David Platt’s tenure (2010-2016)

• Licenses to Advance • Received a registered mark for • Expanded sugardown®

Pharmaceutical Exclusive Rights to SUGARDOWN®. Licensing Agreement to Japan;
Commercialize SUGARDOWN™ for • Completed phase ll clinical trial on Increases Number of Asian
Blood Sugar Management in China. Countries to 16.
BTI320.
• Secured its first purchase order for • Raised more than $1,700,000 in
• Achieved positive results from a
distribution of SUGARDOWN™ in Phase II clinical trial of PAZ320. gross proceeds in private
Italy. placements
• Sales jumped 756 times from 2010.
• Raised about $510,000 in a private
placement offering in Jun’11 • Raised approximately $5.6 million in
private and public placements

2010 2011 2012 2013 2014 2015 2016

• Assigned the trademark • Raised more than $1,000,000 in • Concluded Phase IIb clinical • Raised about
SUGARDOWN™ private and public placements in trial on BTI320 in Oct‘14 $2,200,000 in
2012 • Announces FDA Acceptance gross proceeds
• Submitted SugarDown™ to the US
Food and Drug Administration • Wins FDA Approval to File an of IND to Initiate a Clinical Trial from private
Abbreviated New Drug Application of BTI-320 in Dec‘14 placements in
for PAZAMET(TM) to Treat Dec’16.
Diabetes

Source :Boston Therapeutics

Summarizing the achievements of the company during 2010-2016

1 Raised Capital: 2 Patents & 3 Licencing Agreement 4 BTI320 completed
Trademarks: Achieved: Phase II clinical trial;
Positive results from
Holds 4 patents a Phase II clinical
>$11 million 1 trial of PAZ320
& 3 trademarks

Through Private
Placement.

1. We expect Dr. Platt to lead the Company through the evolving regulatory landscape in close
collaboration with the development, CMC, and quality teams as it closes in on near-term
milestones and prepares to bring drug therapies to patients. His leadership would strengthen
the relationships of Bioxytran with key stakeholders towards the successful development of its
drugs.
AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 14
 Equity Research | BioXyTran, Inc. (BIXT)

Overview of Other Key Management Team

Ola Soderquist, CFO with experience in multiple industry sector

Mr. Soderquist has more than 30 years of senior international entrepreneurial management
experience within technology companies. He has served as CFO and other capacities in multiple
industry sectors. Ola is a multi-lingual senior finance professional poised to work globally and
cross-functionally, particularly with complex projects involving business integration, systems
Ola Soderquist implementation, continuous improvement, and process excellence. Ola’s managerial experience
portfolio includes; Start-ups, Private, Public, Venture Capital and Private Equity ownership. He
obtained a BS and an MS in Accounting from Stockholm School of Economics and an MBA from
Babson College – Franklin W. Olin Graduate School of Business.

Elena Chekhova, Chief Scientist

Elena Chekhova received her Ph.D in Process Systems Engineering at MIT. Elena has over 10
years of experience in life sciences. She is the founder of Biotine Consulting, a life science
consultancy that provides business development and project management services to life science
Elena Chekhova companies in the US as well as internationally. Prior to founding Biotine, Elena served as Vice
President of Business development at Chiral Quest, a manufacturing and technology start-up with
offices in NJ and China.
AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 15
 Equity Research | BioXyTran, Inc. (BIXT)

Risk Assessment
Clinical Drug Development is a Lengthy and Expensive Process
Bioxytran plans to initiate pre-clinical studies of its lead drug, BXT-25, soon. However, such pre-
clinical trials are not only expensive and time-consuming, but also carry greater risks of failure in
terms of yielding negative test results. This could adversely affect the management’s ability to raise
capital, planned future activities and consequently operational and financial performance of the
Company.

Failure to Secure FDA Approval

In US pharmaceutical products are subject to extensive regulation by Food and Drug Association
(FDA). Any failure to comply with applicable U.S. Requirements, may subject a company to a
variety of administrative or judicial sanctions, such as FDA refusal to approve pending new drug
applications, warning letters, product recalls, product seizures, total or partial suspension of
production or distribution, injunctions, fines, civil penalties, etc. Occurrence of any such events may
delay or impair the Company’s ability to successfully commercialize its planned drug portfolio.

Ability to Raise Additional Capital

Bioxytran is an early stage pharmaceutical company and it will likely need further additional
financing to undertake and complete clinical trials, testing and regulatory compliance activities for
BXT-25 and cover projected general and administrative expenses. There is no guarantee that this
type of financing would be available if needed and/or at terms that are acceptable to shareholders.
Without such additional capital, the management may be forced to curtail operations or delay
business plan.

Competition from Established Players in the Market

It faces stiff competition from major pharmaceutical companies, specialty pharmaceutical
companies and biotechnology companies worldwide. The global stroke diagnostics and oxygen
therapeutics market is characterized by intense competition, with a relatively small selection of
large global corporations having significant advantages of scale, sales distribution, research &
development labs, and financial resources when compared to the smaller players in the industry.
This dynamic may place the Company at a competitive disadvantage as it seeks to raise funds for
its clinical trials and build a robust intellectual property portfolio of patent applications and
trademarks.

Risk of Dilution
Given the significant costs associated with funding clinical studies required for regulatory approval,
early-stage, development stage biotechnology companies are especially susceptible to the risk of
dilution. If Bioxytran requires more capital than expected, or faces a more challenging capital
raising environment, or if its clinical pipeline takes longer to develop than anticipated, the Company
maybe forced to raise capital at prices/terms which are unfavourable to existing equity holders.
This may include the issuance of new shares and dilutive instruments such as warrants, convertible
debt and preferred stock. Dilution reduces the proportionate ownership of shareholders and may
adversely impact the Company’s common stock value.
AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 16
 Equity Research | BioXyTran, Inc. (BIXT)

INCOME STATEMENT

PARTICULARS ($ in M) FY19F FY20F FY21F FY22F FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

NET REVENUE

Licencing Revenue

Domestic - - - - 12.44 4.98 7.46 4.78 12.68 18.22 24.33 29.26 34.67 38.58 42.81

As a % of Net Revenue 100.0% 100.0% 64.9% 66.7% 66.6% 66.6% 66.2% 65.9% 65.8% 65.8%

International - - - - - - - 2.58 6.33 9.14 12.21 14.95 17.93 20.02 22.27

As a % of Net Revenue 35.1% 33.3% 33.4% 33.4% 33.8% 34.1% 34.2% 34.2%

Revenue from Cont Ops 0.00 0.00 0.00 0.00 12.44 4.98 7.46 7.36 19.02 27.36 36.54 44.21 52.60 58.60 65.09

y/y growth (60.0%) 50.0% (1.4%) 158.4% 43.9% 33.6% 21.0% 19.0% 11.4% 11.1%

G&A Expenses 0.47 0.47 0.47 0.47 1.15 1.19 1.22 1.26 1.30 1.34 1.38 1.42 1.46 1.51 1.55

As a % of Net Revenue - - - - 9.3% 23.9% 16.4% 17.1% 6.8% 4.9% 3.8% 3.2% 2.8% 2.6% 2.4%

R&D Expenses 2.70 1.50 1.95 1.50 0.15 0.15 0.15 0.15 0.15 0.16 0.16 0.16 0.16 0.17 0.17

As a % of Net Revenue - - - - 1.2% 3.0% 2.0% 2.1% 0.8% 0.6% 0.4% 0.4% 0.3% 0.3% 0.3%

D&A 0.08 0.09 0.09 0.09 0.02 0.02 0.02 0.19 0.61 1.22 2.04 2.89 3.69 4.46 5.19

As a % of Net Revenue - - - - 0.1% 0.3% 0.3% 2.5% 3.2% 4.5% 5.6% 6.5% 7.0% 7.6% 8.0%

Total Operating Expenses 3.25 2.05 2.51 2.06 1.32 1.36 1.40 1.60 2.06 2.72 3.58 4.47 5.32 6.13 6.91

Operating Profit/(Loss) (3.25) (2.05) (2.51) (2.06) 11.12 3.62 6.07 5.76 16.95 24.64 32.97 39.74 47.28 52.46 58.17

As a % of Net Revenue 89.4% 72.8% 81.3% 78.3% 89.1% 90.1% 90.2% 89.9% 89.9% 89.5% 89.4%

Source: Company’s filings and Avise Analytics estimates

EBITDA (3.17) (1.97) (2.42) (1.97) 11.25 3.68 6.16 5.95 17.56 25.86 35.00 42.63 50.97 56.92 63.36

As a % of Net Revenue - - - - 89.5% 73.1% 81.6% 80.8% 92.4% 94.5% 95.8% 96.4% 96.9% 97.1% 97.4%

Interest Expenses (net) - - - - - - - - - - - - - - -

Profit/(Loss) Before Taxes (3.25) (2.05) (2.51) (2.06) 11.12 3.62 6.07 5.76 16.95 24.64 32.97 39.74 47.28 52.46 58.17

As a % of Net Revenue - - - - 89.4% 72.8% 81.3% 78.3% 89.1% 90.1% 90.2% 89.9% 89.9% 89.5% 89.4%

Income Tax Expenses (Benefits) - - - - - - - 1.44 3.99 5.91 7.99 9.94 11.82 13.12 14.54

Net Profit / (Loss) for the period (3.25) (2.05) (2.51) (2.06) 11.12 3.62 6.07 4.32 12.96 18.73 24.97 29.81 35.46 39.35 43.63

As a % of Net Revenue - - - - 89.4% 72.8% 81.3% 58.7% 68.2% 68.5% 68.3% 67.4% 67.4% 67.1% 67.0%

Source: Company’s filings and Avise Analytics estimates

AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 17
 Equity Research | BioXyTran, Inc. (BIXT)

BALANCE SHEET

PARTICULARS ($ in M) FY19F FY20F FY21F FY22F FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Assets

Current Assets:

Cash & Cash Equivalents 6.42 4.30 1.92 0.00 10.99 22.10 25.72 30.02 30.68 40.11 54.85 75.95 101.46 133.01 168.23

Accounts & Other Receivables - - - - - - - 1.07 2.77 3.98 5.32 6.44 7.66 8.53 9.48

Inventories - - - - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Other Current Assets - - - - - - - 0.15 0.38 0.55 0.73 0.88 1.05 1.17 1.30

Total Current Assets 6.42 4.30 1.92 0.00 10.99 22.10 25.72 31.24 33.83 44.64 60.90 83.27 110.17 142.71 179.01

Non-Current Assets:

Property, Plant & Equipment, net 0.25 0.19 0.14 0.08 0.10 0.11 0.12 0.73 2.22 4.13 6.43 8.92 11.69 14.53 17.50

Intangibles Assets - IP 0.08 0.07 0.04 0.01 0.00 0.00 0.00 0.17 0.54 0.96 1.38 1.75 2.12 2.44 2.74

Total Non-Current Assets 0.32 0.26 0.17 0.09 0.10 0.11 0.12 0.89 2.75 5.09 7.80 10.66 13.81 16.97 20.24

Total Assets 6.74 4.55 2.10 0.09 11.09 22.21 25.84 32.13 36.58 49.73 68.71 93.94 123.98 159.68 199.25

Liabilities & Shareholders’

Equity/(Deficit)

CurrentCompany’s
Source: Liabilities:filings and Avise Analytics estimates

Accounts & Other Payables 0.37 0.23 0.29 0.34 0.22 0.22 0.23 0.34 0.44 0.58 0.77 0.96 1.14 1.31 1.48

Convertible Notes Payable, net - - - - - - - - - - - - - - -

Accounts Payable Related Party - - - - - - - 0.11 0.14 0.19 0.25 0.31 0.37 0.43 0.48

Total Current Liabilities 0.37 0.23 0.29 0.34 0.22 0.22 0.23 0.45 0.59 0.77 1.02 1.27 1.51 1.74 1.96

Non-Current Liabilities:

Long-Term Debt - - - - - - - - - - - - - - -

Other Non-Current Liabilities - - - - - - - - - - - - - - -

Total Non-Current Liabilities - - - - - - - - - - - - - - -

Total Liabilities 0.37 0.23 0.29 0.34 0.22 0.22 0.23 0.45 0.59 0.77 1.02 1.27 1.51 1.74 1.96

Shareholders' Equity

Preferred Stock

Contributed Equity 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
AVISE ANALYTICS

Add: Additional Capital Required - - - - - - - - - - - - - - -

Accumulated Losses (3.63) (5.68) (8.19) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25) (10.25)

Retained Earnings - - - - 11.12 22.24 25.86 31.92 36.24 49.21 67.94 92.91 122.72 158.18 197.53

Total Shareholders’ Eq/(Def) 6.37 4.32 1.81 (0.25) 10.87 21.99 25.61 31.68 36.00 48.96 67.69 92.67 122.47 157.94 197.29

Total Liabilities & Shareholders’

6.74 4.55 2.10 0.09 11.09 22.21 25.84 32.13 36.58 49.73 68.71 93.94 123.98 159.68 199.25
Equity/(Deficit)

Source: Company’s filings and Avise Analytics estimates

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 18
 Equity Research | BioXyTran, Inc. (BIXT)

KEY RATIOS

PARTICULARS FY19F FY20F FY21F FY22F FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Diluted Earnings per Share ($) (0.03) (0.02) (0.03) (0.02) 0.12 0.04 0.06 0.05 0.14 0.20 0.26 0.31 0.37 0.41 0.46

Book Value per Share ($) 0.07 0.05 0.02 0.00 0.11 0.23 0.27 0.33 0.38 0.51 0.71 0.97 1.29 1.66 2.07

Dividend Per Share ($) - - - - - - - - - - - - - - -

Payout (%) - - - - - - - - - - - - - - -

LIQUIDITY RATIOS

Debt/Equity Ratio (x) - - - - - - - - - - - - - - -

Current Ratio (x) 17.33 17.83 12.53 3.37 25.36 75.01 105.79 90.48 63.20 57.78 58.91 62.78 69.28 77.42 86.50

TURNOVER RATIOS

Debtors Turnover Ratio (x) - - - - - - - 6.9 9.9 8.1 7.9 7.5 7.5 7.2 7.2

Debtors day - - - - - - - 53 37 45 46 49 49 50 50

Net Fixed Assets Turnover Ratio (x) - - - - 125.0 46.7 63.4 17.4 12.9 8.6 6.9 5.8 5.1 4.5 4.1

PROFITABILITY RATIOS

Gross Profit Margin - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

EBIT Margin - - - - 89.4% 72.8% 81.3% 78.3% 89.1% 90.1% 90.2% 89.9% 89.9% 89.5% 89.4%

EBITDA Margin - - - - 89.5% 73.1% 81.6% 80.8% 92.4% 94.5% 95.8% 96.4% 96.9% 97.1% 97.4%

NPAT Margin - - - - 89.4% 72.8% 81.3% 58.7% 68.2% 68.5% 68.3% 67.4% 67.4% 67.1% 67.0%

Return on Capital Employed (51%) (38%) (82%) (263%) 209.3% 22.0% 25.5% 20.1% 50.1% 58.0% 56.5% 49.6% 44.0% 37.4% 32.8%

Return on Networth [RONW] (51%) (38%) (82%) (263%) 209.3% 22.0% 25.5% 15.1% 38.3% 44.1% 42.8% 37.2% 33.0% 28.1% 24.6%

VALUATION RATIOS

P/E (x) - - - - 9.4 28.9 17.2 24.2 8.1 5.6 4.2 3.5 2.9 2.7 2.4

P/BV (x) 16.4 24.2 57.7 -424.7 9.6 4.8 4.1 3.3 2.9 2.1 1.5 1.1 0.9 0.7 0.5

EV/Sales (x) - - - - 7.9 19.7 13.2 13.3 5.2 3.6 2.7 2.2 1.9 1.7 1.5

EV/Adj. EBITDA (x) - - - - 8.8 27.0 16.1 16.5 5.6 3.8 2.8 2.3 1.9 1.7 1.5

Dividend Yield - - - - - - - - - - - - - - -

CAPEX / Dep (x) 5.0 0.2 0.0 0.0 1.8 1.7 1.4 5.1 4.1 2.9 2.3 2.0 1.9 1.7 1.6

CAPEX / Sales (x) - - - - 0.002 0.006 0.004 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130

No. of Shares Outstanding (in M) = 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1 95.1

Year end Adj. Share price ($) = 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10

Add: Debt ($ in M) = - - - - - - - - - - - - - - -

Minority Interest ($ in M)= - - - - - - - - - - - - - - -

Preferred shares ($ in M) = 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Less: Cash & CE ($ in M)= 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4

Enterprise Value ($ in M) = 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2

DU-Pont ANALYSIS

PAT/PBT 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 75.0% 76.5% 76.0% 75.8% 75.0% 75.0% 75.0% 75.0%
AVISE ANALYTICS

PBT/EBIT 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

EBIT/Revenue - - - - 89.4% 72.8% 81.3% 78.3% 89.1% 90.1% 90.2% 89.9% 89.9% 89.5% 89.4%

Revenue/Total Assets 0.00 0.00 0.00 0.00 1.12 0.22 0.29 0.23 0.52 0.55 0.53 0.47 0.42 0.37 0.33

Total Asset/Total Equity 1.06 1.05 1.16 -0.37 1.02 1.01 1.01 1.01 1.02 1.02 1.02 1.01 1.01 1.01 1.01

Return on Equity (RoE) - - - - 102.3% 16.5% 23.7% 13.6% 36.0% 38.3% 36.9% 32.2% 29.0% 24.9% 22.1%

Source: Company’s filings and Avise Analytics estimates

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 19
 Equity Research | BioXyTran, Inc. (BIXT)

VALUATION & OUTLOOK

VALUATION:
PARTICULARS ($ in M) FY19F FY20F FY21F FY22F FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Operating Income (EBIT) (3.25) (2.05) (2.51) (2.06) 11.12 3.62 6.07 5.76 16.95 24.64 32.97 39.74 47.28 52.46 58.17
Less: CAPEX 0.40 0.02 0.00 0.00 0.03 0.03 0.03 0.96 2.47 3.56 4.75 5.75 6.84 7.62 8.46
Add: D & A + Impairment 0.08 0.09 0.09 0.09 0.02 0.02 0.02 0.19 0.61 1.22 2.04 2.89 3.69 4.46 5.19
Current Assets excl. cash 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.22 3.15 4.53 6.05 7.32 8.71 9.70 10.78
Less: Current Liabilities 0.37 0.23 0.29 0.34 0.22 0.22 0.23 0.45 0.59 0.77 1.02 1.27 1.51 1.74 1.96
Working Capital (WC) (0.37) (0.23) (0.29) (0.34) (0.22) (0.22) (0.23) 0.76 2.56 3.76 5.04 6.05 7.20 7.96 8.81
Increase/(Decrease) in WC (0.11) 0.14 (0.05) (0.05) 0.12 (0.01) (0.01) 0.99 1.80 1.20 1.28 1.02 1.15 0.76 0.85
Less: Taxes - - - - - - - 1.44 3.99 5.91 7.99 9.94 11.82 13.12 14.54
FCF for the Firm/Equity = (3.46) (2.12) (2.37) (1.92) 10.98 3.61 6.07 2.56 9.30 15.20 20.99 25.93 31.17 35.43 39.51
Terminal Value = 621.90
Present Value of FCF = (3.23) (1.81) (1.85) (1.36) 7.12 2.14 3.28 1.26 4.19 6.25 7.88 8.88 9.75 10.12 172.41

Particulars ($ in M except per Share data) OUTLOOK:

Total Present Value of Free Cash Flows 225.0
Amid aging U.S. population and rising stroke fatalities, the successful launch
Add: Cash & Cash Equivalents 0.12
of BXT-25 could bring significant improvement over conventional treatment
Less: P.V. of Total Debt o/s (as per latest filings) 0.74 methodology in reversing ischemic stroke hypoxia. An exclusive license to
Less: Preferred Shares - use FDA approved MDX Viewer which measures tissue oxygenation level,
Less: Minority Interest - would accelerate the development process of BXT-25. We are particularly
attracted toward its novel drug, solid management, and huge market
Equity Value (Present Value) 224.41
opportunities.
Number of Shares outstanding (in M) 85.10
Fair Value per Share ($) 2.64 Based on our assumption that Bioxytran would license BXT-25 after
completing Phase-2 clinical trial in 2023, we estimate 10% royalty revenue
with net margin of ~67% from the sale of BXT-25, starting from 2026.
Estimating Weighted Average Cost of Capital (WACC) This model is highly dependent upon the continued clinical success of BXT-
WACC Inputs
25 and will be adjusted accordingly based upon future clinical results.

Risk-free rate 2.0% We are initiating coverage on Bioxytran with a price target of $2.64 per share,
Excess Return on NASDAQ Biotechnology Index (3-Yr) 3.6% achievable in 12 months, discounted at a WACC of 9.54%, using DCF
Beta 0.69 valuation as our preferred methodology for valuing the stock, as it
incorporates our long-term view about the Company’s operations. On
Unadjusted Equity Risk Premium 2.5%
comparing the technology value of its peer group based on market cap per
+Company Specific Risk Premium 3.0% drug, BIXT is valued at $107.7 million or $1.3 per share.
+ Small Business Risk Premium 2.0%
Cost of Equity (CAPM) 9.54%
SENSITIVITY ANALYSIS
Cost of Debt
Statutory Tax rate 25.0% Change in Fair Value per Share with a 1% Change in WACC
Debt / Capital 0.0%
WACC 8.54% 9.54% 10.54% 11.54% 12.54%
After Tax Cost of Debt 0.0%
Terminal Growth % 3.00% 3.00% 3.00% 3.00% 3.00%
WAC (Debt) 0.0%
Fair Value ($ / Share) 3.39 2.64 2.10 1.70 1.40
Cost of Equity (CAPM) 9.54%
Equity / Capital 100.0% Change in Fair Value per Share with a 0.5% Change in Terminal Growth %
WAC (equity) 9.54% WACC 9.54% 9.54% 9.54% 9.54% 9.54%

WACC Conclusion 9.54% Terminal Growth % 2.00% 2.50% 3.00% 3.50% 4.00%

Long Term Growth Rate (Assumed) = 3.0% Fair Value ($ / Share) 2.37 2.49 2.64 2.80 3.00

TECHNOLOGY VALUE
Market Cap Commercial Developing Total Market Cap
Peer Company Bloomberg Ticker
($ in M) No. of Drugs No. of Drugs No. of Drugs /drugs

Diffusion Pharmaceuticals, Inc. DFFN:US 13.95 0 2 2 7.0

AVISE ANALYTICS

DiaMedica Therapeutics, Inc. DMAC:US 55.71 0 1 1 55.71

Akebia Therapeutics, Inc. AKBA:US 521.0 1 1 2 260.48

Mean Market Cap Per Drug ($ in M): 107.72

BIOXYTRAN (BIXT)
Implied Market Cap/ Drug of Bioxytran, Inc. ($ in M) 107.7

No. of Drugs 1

No. of Common Stock (in M) 85.1

Share Price (in $) $1.3 / share

Source: Yahoo Finance, Company, Diffusion Pharmaceuticals, DiaMedica, Akebia and Avise Analytics estimates. As on Jun 21, 2019

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 20
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

Ø Revenue:
Our sales revenue forecast model for Bioxytran is primarily based on assumption that it is very likely the Company would be able
to start with the pre-clinical trial of BXT-25 in 2019. Considering the time taken by the peer companies in completing different
phases of the clinical trials, we estimate that the drug development process would successfully be completed by 2026, before it
can be prescribed to any stroke patient.

- Collaboration to Develop & Market BXT-25

Upon successful completion of Phase-2 trial of BXT-25, the Company targets to collaborate with established pharmaceutical
company or companies, to further develop and market the drug. Based on the valuation of similar deals happened in the past, we
estimate Bioxytran to license the rights for $25 million, that is, 2.5x of its capital outflow.

- BXT-25 Sales & Marketing

Following the FDA approval of BXT-25 for its sale and marketing in the United States, we have assumed the following market size
for this drug:

US RoW

A minimum 3% of the stroke patients are expected to be prescribed to A minimum 1.5% of the stroke patients are expected to be prescribed to
use BXT-25 during the first year of sales in 2026, which will gradually use BXT-25 during the first year of sales in 2026, which will gradually
increase to reach as high as 20% by 2033. increase to reach as high as 9% by 2033.

For estimating the drug market size for BXT-25 in the US and RoW, we have made the following assumptions and projections:

Estimating the Overall Drug Market Size for Stroke Management for the forecast period 2019-2033: US & Global

US Global

POPULATION: POPULATION:
For US population projections, we have referred to the data published by For global population projections, we have referred to Worldometers
the US Census Bureau

AVERAGE DEATH DUE TO STROKE AVERAGE DEATH DUE TO STROKE

According to a report by the American Heart Association (AHA), the According to World Health Organization (WHO), the average death
average death rate in the US, due to stroke, increased at a CAGR of cases due to stroke was ~6.70 million in 2015. This is expected to grow
1.97% between 2011-2016. We expect this historical growth trend to at a CAGR of ~1.66% during 2016-2030 to reach 8.58 million by 2030.
continue and have assumed average growth rate of 2% p.a. for 2019- For forecasting, we have assumed the same growth trend to continue
2033 in our model. during the rest of the forecast period.

AVERAGE ANNUAL STROKE CASES (NEW+RECURRENT) AVERAGE ANNUAL STROKE CASES (NEW+RECURRENT)
According to a report by the AHA, each year approximately 795,000 According to a report by the AHA, the incidence of stroke was 10.3
people experience a new or recurrent stroke, and this level is expected to million in 2013, and we have assumed this to remain constant during the
continue in future. forecast period.

STROKE
1. PATIENTS: STROKE PATIENTS:
According to a policy statement by the AHA and American Stroke According to a report by the AHA, the global prevalence of stroke in 2016
Association (ASA), crude stroke prevalence rate in 2015 is estimated at was 80.1 million people. For forecasting the stroke prevalence from 2017
3.31%. For forecasting the stroke prevalence from 2016 onwards, we onwards, we have incorporated the effect of average annual stroke
have incorporated the effect of average annual stroke cases (both new cases (both new and recurrent attacks) and average death due to stroke
and recurrent attacks) and average death due to stroke each year and each year and have arrived at the following growth trend:
have arrived at the following growth trend: ~0.14% p.a. between 2015-2017,
~4% p.a. between 2017-2022, ~0.13% p.a. between 2018 - 2025 and
~5% p.a. between 2023 - 2028 and ~0.12% p.a. for the rest of the forecast period.
~6% p.a. for the rest of the forecast period.
MEDICATION & OTHER EXPENSES COST:
TOTAL DIRECT MEDICAL COSTS According to the market research firm ReportLinker, the acute ischemic
According to a policy statement by the AHA and ASA, the total direct stroke drug sales in the US represented 47% of all sales in 2017 from the
AVISE ANALYTICS

medical costs of stroke in the US is projected to grow at a CAGR of 8MM. Based on this, we have assumed this ratio to remain constant
~5.4% between 2015-2030 to reach $184.13 billion by 20302. We have during the forecast period. Further, based on our assumption and
assumed the same growth trend to continue during the rest of the projections on total medication and expenses costs in the US, we have
forecast period. derived the projections for the global medication and other expense costs
of stroke during 2019-2033
MEDICATION & OTHER EXPENSES COST:
As per Healing in Motion, a patient-driven agency focused on strokes,
brain injuries and brain attacks, the total medications and other expenses
costs constitute 13% of total direct medical costs. We have assumed this
ratio to remain constant during 2019-2033. Based on this and above
projections related to total direct medical costs, we have derived the total
medications and other expenses costs during our forecast period.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 21
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

Estimating the Overall Drug Market Size for Stroke Management for the forecast period 2019-2033: US
2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F

US Population Forecast
330 333 335 337 340 342 344 346 349 351 353 355 357 359 361
(mn)1

Projections of Crude Stroke

4% 4% 4% 4% 5% 5% 5% 5% 5% 5% 6% 6% 6% 6% 6%
Prevalence, in US (%)

Projections of Crude Stroke

13.2 13.9 14.5 15.2 15.8 16.4 17.0 17.7 18.3 18.9 19.5 20.1 20.7 21.3 21.9
Prevalence, in US (mn)

Avg. Annual Stroke Cases

0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80
(new + recurrent attacks)5

As a % of US population 0.24% 0.24% 0.24% 0.24% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.22% 0.22% 0.22% 0.22%

Average Death Due to

0.15 0.15 0.16 0.16 0.16 0.17 0.17 0.17 0.18 0.18 0.18 0.19 0.19 0.20 0.20
Stroke (mn)4

Growth (%) 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Projected Direct (Total

Medical) Costs of Stroke 102 108 114 120 126 133 141 149 157 165 175 184 194 205 216
($ in bn)2

Growth (%) 5.3% 5.3% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5%

Projected Direct (Medical)

Costs of Stroke per Patient, $7.72 $7.75 $7.82 $7.90 $8.01 $8.12 $8.26 $8.41 $8.57 $8.75 $8.94 $9.15 $9.37 $9.62 $9.87
in US ($ in ‘000s)

Projected Medication &

Other Expenses Costs in US $13.3 $14.0 $14.8 $15.6 $16.4 $17.3 $18.3 $19.3 $20.4 $21.5 $22.7 $24.0 $25.3 $26.7 $28.1
(13% of direct cost) (bn)3

Projected Medication and

Other Expense Costs of $1,003 $1,007 $1,016 $1,027 $1,041 $1,056 $1,074 $1,093 $1,114 $1,138 $1,163 $1,190 $1,219 $1,250 $1,283
Stroke per Patient, in US ($)

Source :
1 https://www.census.gov/data/tables/2017/demo/popproj/2017-summary-tables.html
2.
https://www.cdc.gov/mmwr/preview/mmwrhtml/mm5619a2.htm
2.
https://www.cdc.gov/mmwr/preview/mmwrhtml/mm6120a5.htm
2. https://www.ahajournals.org/doi/pdf/10.1161/STR.0b013e31829734f2
3. http://www.healingsinmotion.org/what-is-a-stroke/stroke-facts/
4 https://www.ahajournals.org/doi/pdf/10.1161/CIR.0000000000000659
5 https://www.ahajournals.org/doi/pdf/10.1161/CIR.0000000000000659
AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 22
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

Estimating the Overall Drug Market Size for Stroke Management for the forecast period 2019-2033: Global

2019P 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P 2031P 2032P 2033P

World Population Forecast

7,715 7,795 7,875 7,954 8,032 8,110 8,186 8,261 8,335 8,408 8,480 8,551 8,621 8,691 8,759
(mn)6

Projections of Crude Stroke

1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
Prevalence, (%)

Projections of Crude Stroke

89.9 92.9 95.8 98.6 101.2 103.8 106.2 108.4 110.6 112.6 114.4 116.2 117.7 119.2 120.5
Prevalence, (mn)9

Growth based on US Crude

Stroke Patient Growth 5.1% 4.8% 4.6% 4.4% 4.2% 4.0% 3.8% 3.6% 3.5% 3.4% 3.2% 3.1% 3.0% 2.9% 2.8%
Projections (%)

Average Annual Stroke

Cases (new + recurrent 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30
attacks)8

As a % of Total US
0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.12% 0.12% 0.12% 0.12% 0.12% 0.12% 0.12% 0.12%
Population

Average Death Due to

7.16 7.27 7.40 7.52 7.64 7.77 7.90 8.03 8.16 8.30 8.44 8.58 8.72 8.87 9.01
Stroke (mn)7

Growth (%) 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66%

Projected Medication &

Other Expense Costs (13% 283 298 314 331 350 369 389 411 433 457 483 509 537 567 598
of direct cost) (bn)

US Stroke Medication Cost

Represents 47% of Global 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 47%
Medication Cost10

Projected Medication &

Other Expense Costs of $314.5 $320.3 $327.7 $336.1 $345.3 $355.5 $366.7 $378.8 $392.0 $406.3 $421.7 $438.4 $456.4 $475.8 $496.7
Stroke per Patient, ($)

Source :
6 Worldometers
7
WHO
8 https://www.ahajournals.org/doi/pdf/10.1161/CIR.0000000000000485
9 https://www.ahajournals.org/doi/pdf/10.1161/CIR.0000000000000659
10 https://www.prnewswire.com/news-releases/acute-ischemic-stroke-global-drug-forecast-and-market-analysis-to-2027-300744837.html
AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 23
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

- Cost of BXT-25 per patient: U.S. & RoW

Based on our most conservative estimates, BXT-25 is expected to cost only 5% of the total medication cost. In other words, the
total dosage of BXT-25 per patient in the U.S. would cost only $55 in 2026, which is forecasted to reach $64 by 2033. Similarly, in
rest of the world, it is estimated to cost only $19 per patient in 2026 and is forecasted to reach $25 by 2033.

- Assumptions related to License revenue

Under the same agreement, we estimate the Company to receive manufacturing royalties of 15% & 10% on net sales in the US
and RoW, respectively.

We forecast the license revenue in the U.S., to increase from $5.0 million in 2026 and reach $42.8 million by 2033. Similarly, for
RoW, we forecast the license revenue to increase from $2.6 million in 2026 and reach $22.3 million by 2033.

Forecasting Total Revenue for Bioxytran for the period FY2019-33

BXT-25 FY19F FY20F FY21F FY22F FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

DOMESTIC

No. of Patients (mn) - - - - - - - 0.58 1.52 2.14 2.79 3.28 3.79 4.11 4.45

As a % of total no. of stroke

- - - - - - - 0.03 0.08 0.11 0.14 0.16 0.18 0.19 0.20
patients

Drug cost per patient ($) - - - - - - - 54.65 55.72 56.88 58.14 59.49 60.95 62.50 64.15

As a % of total medication
- - - - - - - 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
cost in US

Gross Revenue to Licensee

- - - - - - - - 84.56 121.5 162.2 195.1 231.1 257.2 285.4
($ in mn)

Licence Revenue ($ in mn) 0 0 0 0 12.55 5.02 7.53 4.78 12.68 18.22 24.33 29.26 34.67 38.58 42.81

Licence Commission 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Transfer of licence - - - - 50% 20% 30% - - - - - - - -

Total Capital Spent before
transfer of Licensee to 3.57 2.02 2.45 2.00 - - - - - - - - - - -
develop BXT25 ($ in mn)

Assuming a licencing deal

@ 2.5x of capital spent on
- - - - 25.10 - - - - - - - - - -
BXT25 before the deal ($ in
mn)

INTERNATIONAL

No. of Patients (in mn)

- - - - - - - 1.36 3.23 4.50 5.79 6.82 7.86 8.42 8.97
(Global Less US)

As a % of total no. of stroke

- - - - - - - 0.02 0.04 0.05 0.06 0.07 0.08 0.09 0.09
patients

Drug cost per patient ($) - - - - - - - 18.94 19.60 20.32 21.09 21.92 22.82 23.79 24.83

As a % of total medication
- - - - - - - 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
cost in US

Gross Revenue to Licensee

- - - - - - - 25.79 63.32 91.35 122.1 149.5 179.3 200.2 222.7
($ in mn)
AVISE ANALYTICS

Licence Revenue ($ in mn) - - - - - - - 2.58 6.33 9.14 12.21 14.95 17.93 20.02 22.27

Licence Commission - - - - - - - 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

PRODUCT TOTAL - - - - - - - 7.36 19.02 27.36 36.54 44.21 52.60 58.60 65.09

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 24
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

Ø Operating Expenses:

i. Research & Development (R&D) Expenses: Between FY2019-22, we estimate Company to spend close to $8 million on
research and development, to successfully complete the development of BXT-25 till phase-2 clinical trial. From FY2023 onwards,
the collaboration license would allow partnered companies to conduct remaining clinical trials. This will eliminate the company’s
development cost on BXT-25.
R&D Expenses (as a % of Net Revenue)
PARTICULARS FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Assumption rate 1.2% 3.0% 2.0% 2.1% 0.8% 0.6% 0.4% 0.4% 0.3% 0.3% 0.3%

Source: Avise Analytics estimates

ii. General & Administration (G&A) Expenses: While the R&D cost on development of BXT-25 will be negligible post
collaboration, the G&A expenses are also likely to be under control, even after the commercialization of BXT-25.

• For the purpose of forecasting salaries & wages, we have considered Dr. Platt and Mr. Soderquist as the only employees
and each of them is expected to remain committed on a full-time basis. We expect the current management salary structure
(@$6,000 per month) to remain unchanged during the development stage. Post-commercialization, i.e., from FY2023
onwards, we expect the management salary to increase to $40,000 per month to represent a fair compensation structure.
Our forecast model further incorporates salary growth rate of 3% p.a. from FY2024 onwards.

G&A Expenses (as a % of Net Revenue)

PARTICULARS FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Assumption rate 9.2% 23.9% 16.4% 17.1% 6.8% 4.9% 3.8% 3.2% 2.8% 2.6% 2.4%

Salary & Wages as

83.2% 83.2% 83.2% 83.2% 83.2% 83.2% 83.2% 83.1% 83.1% 83.1% 83.1%
a % of G&A exp.

Source: Avise Analytics estimates

• Overall, EBITDA margin is forecasted to stabilize from FY2027 onwards, to keep it at whooping 92% in 2027, which will
gradually improve to reach 97% by FY2033.

iii. Depreciation & Amortization (D&A) Expenses:

Our valuation model assumes:

o the average useful life of computer hardware and software as ~4 years

o depreciation on leasehold improvements @5% p.a.

From FY2026 onwards, each year amortization equivalent to 3% of net revenue of the corresponding year has been charged on
the opening balance of intangibles.

On an aggregate basis, D&A expenses as a % of net revenue, is expected to increase from 2.6% in FY2026 to 8.0% by FY2033.

D&A Expenses (as a % of Net Revenue)

PARTICULARS FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Assumption rate 0.1% 0.3% 0.3% 2.5% 3.2% 4.5% 5.6% 6.5% 7.0% 7.6% 8.0%

Source: Avise Analytics estimates

After adjusting the impact of D&A expenses, we forecast the operating margins to remain stable at ~90%.

iv. Financial Expenses:

AVISE ANALYTICS

We expect the Company to remain debt-free during the forecasting period. Hence, no outflow on account of interest expenses.

v. Tax rate:

From FY2026 onwards, we have assumed the corporate tax rate of 25% in our valuation model.

• We expect the net profit margin to remain rangebound between 67% to 68% during FY2027-33.

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 25
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

Ø Capital Expenditure (Capex):

From FY2026 onwards, we expect the Company’s incur capex close to 13% of its net revenue each year.

Ø Non-Cash Working Capital Requirements:

Deriving Changes in Non-Cash Working Capital Requirements

PARTICULARS ($ IN Mn) FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Current Assets excl. cash 1.22 3.15 4.53 6.05 7.32 8.71 9.70 10.78

Less: Current Liabilities 0.34 0.44 0.58 0.77 0.96 1.14 1.31 1.48

Working Capital (WC) 0.88 2.71 3.95 5.29 6.36 7.57 8.39 9.30

Change in WC requirements 1.01 1.83 1.24 1.34 1.08 1.21 0.82 0.91

WC to Sales ratio (x) 0.12 0.14 0.14 0.14 0.14 0.14 0.14 0.14

Source: Avise Analytics estimates

i. Accounts Receivables (AR)

For the purpose of forecasting account receivables, based on industry average, we have assumed receivables turnover ratio of
6.9x for the period FY2026-33.
Accounts Receivables (Turnover ratio)
PARTICULARS FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F
Receivable
- - - 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9
Turnover (x)

Source: Avise Analytics estimates

ii. Inventory

Since the Company would operate under the Licensee model from FY2026 onwards, there exists no requirement for inventory
maintenance.

iii. Accounts Payable (AP)

For the purpose of forecasting account payables, we have assumed the same to be close to 16.4% of total operating costs each
year (based on peer analysis), during the period FY2019-25. From FY2026 onwards, we expect this ratio to increase to 21.4%
and stay at this level for the rest of the forecasting period.

Accounts Payables (as a % of OpEx)

PARTICULARS FY23F FY24F FY25F FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

Accounts Payables 16.4% 16.4% 16.4% 21.4% 21.4% 21.4% 21.4% 21.4% 21.4% 21.4% 21.4%

Source: Avise Analytics estimates

Ø Free Cash Flow to the Firm (FCFF)

Post commercialization in FY26, we estimate the Company to maintain a strong and expanding free-cash-flow generating
profile with the resulting cash increases being sufficient to fund the future expansionary requirements. The Company’s FCFF is
forecasted to significantly increase from $2.56 million in 2026 to reach $39.51 million by FY33.
AVISE ANALYTICS

PARTICULARS FY26F FY27F FY28F FY29F FY30F FY31F FY32F FY33F

FCF 2.56 9.30 15.20 20.99 25.93 31.17 35.43 39.51

Planned Capex 0.96 2.47 3.56 4.75 5.75 6.84 7.82 8.46

Working Capital (WC) 0.76 2.56 3.76 5.04 6.05 7.20 7.96 8.81

Change in WC requirements 0.99 1.80 1.20 1.28 1.02 1.15 0.76 0.85

Source: Avise Analytics estimates

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 26
 Equity Research | BioXyTran, Inc. (BIXT)

FINANCIAL PROJECTIONS ASSUMPTIONS SHEET

Ø Capital Structure:

i. Debt

We expect the Company to remain debt-free during the forecasting period generating sufficient free cash flows to meet the capex
and working capital requirements each year.

ii. Equity

Our forecast model is based on assumption that the Company would have sufficient funds to finance future expansionary plans
and would not resort to fresh capital raising during the forecast period.

Ø WACC for DCF Valuation Methodology:

For the purpose of arriving at cost of capital, we have adopted weighted average cost of capital (WACC) approach:

i. Risk premium:

We have used NASDAQ Biotechnology Industry Index (NASDAQ: NBI) Index as best proxy of the market index. For the purpose
of arriving at risk premium, we have used 3 years return on index.

ii. Risk free rate:

We have used 10-year US Treasury rate. Source: Bloomberg

Iii. Beta:

0.69. To calculate Beta, we have first arrived at the mean of unlevered Beta of the four peer company’s stock and re-levered it
based on company’s Debt to Equity Ratio. (Source: Company filings, Yahoo Finance). We have further adjusted the Company’s
cost of equity by net 300 bps to reflect company specific risk premium and by 200 bps to reflect small business risk premium.

iv. Terminal growth rate (assumed):

3% p.a.
AVISE ANALYTICS

The information contained in this report is to be read in conjunction with other important disclosures at the end of this document. 27
 Equity Research | BioXyTran, Inc. (BIXT)

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