Critical Outcome Technologies - May 2014

Investor Presentation | May 2014

The future of drug discovery has arrivedReducing development time, cost & risk

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When used anywhere in this presentation, whether oral or written, the words expects, believes, anticipates, estimates, and similar expressions are intended to identify forward-looking statements. Forward-looking statements may include statements addressing future financial and operating results of Critical Outcome Technologies Inc. (COTI).

COTI bases these forward-looking statements on its current expectations about future events. Such statements are subject to risks and uncertainties including, but not limited to, the successful implementation of COTI’s strategic plans, the acceptance of new products, the obsolescence of existing products, the resolution of potential patent issues, competition, changes in economic conditions, and other risks described in COTI’s public documents such as press releases and filings with the Toronto Stock Exchange and the Ontario Securities Commission.

All forward-looking statements are qualified in their entirety by the cautionary statements included in this document and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this presentation. These forward-looking statements speak only as of the date of this presentation.

Disclaimer

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Critical Outcome Technologies Inc.

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A bioinformatics company focused on efficient and accelerated drug discovery

Listed on the TSX-V under the symbol COT since 2006

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Investment highlights

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We reduce the time, cost & risk of bringing new drugs to market

Potential cancer breakthrough drug candidate is nearly Phase 1 ready

We have many more revenue opportunities in our pipeline

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Conventional drug development is a long & expensive process characterized by a high risk of failure

11 – 15 years

$1 billion or more

1 FDA approval 5

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What we do

Reduce drug discovery, optimization & lead selection by 1.5 to 3 yrs.

Saving significant $$$

Increasing revenue period under patent protection

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How we do it – CHEMSAS®

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Proprietary, artificial intelligence based drug discovery platform technology

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Failed attempts occur quickly & cheaply in computer simulations, not the ‘wet lab’

Higher probability of clinical & commercial success

Computational replication of traditional ‘wet lab’ drug discovery process

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Advantages of CHEMSAS®

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Potential cancer breakthrough

Our lead compound, COTI-2, is effective against many human cancers with mutations of the p53 gene

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Why COTI-2 is exciting

> 50% of all human cancers have a p53 mutation (eg. ~ 95% of serous ovarian cancers)

Mechanism of action confirmed by thought leader Dr. Gordon Mills at MD Anderson Cancer Center (June 2013)

Novel, first-in-class

Strong IP protection in place

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COTI-2 soon to be Phase 1 ready

In final 2-species toxicity studies – completion in first half of 2014 (dosing completed)

FDA IND filing expected in September of 2014 (leading to Phase 1 clinical trial)

Pursuing orphan drug and/or breakthrough therapy status

Signed an LOI with a potential strategic partner, Portage Biotech Inc., for clinical development

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COTI-2 = significant revenue potential

Top 5 2012 Phase 1/2 oncology licensing deals disclosed (1): Upfront payments of approx. $25-$92 million Milestone payments between $550-$1,100 million Royalties on net sales

1st half of 2013 (2) – 16 Phase 1 licensing deals with 6 in cancer – avg. upfront $30m

(1) Medius Associates(2) Thomson Reuters

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Other revenue opportunities

Robust internal pipeline of drug candidates- AML, MRSA, colorectal and other cancers, MS, etc.

3 existing R&D collaborations expected to bring in milestone payments beginning late 2014 / 2015

- Western University- Delmar Chemicals- Major Pharma Co.


A small molecule profiling & investment due diligence tool leveraging CHEMSAS®

Provides detailed report on compound attributes and specific areas for further assessment

Identifies properties outside the optimal range that may represent development challenges

CHEMFirm


Enables partners to make more knowledgeable investment decisions

Provides critical information for assessing both risk and value

Supports a “fail very early & very cheaply” drug investment strategy

Benefits of CHEMFirm

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Other future CHEMSAS® applications

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Drug library profiling Based on customer identified criteria

Drug repurposing Finding new purposes for drugs coming off patent

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Summary

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We reduce the time, cost & risk of bringing new drugs to market

Potential cancer breakthrough drug candidate is nearly Phase 1 ready

We have many more revenue opportunities in our pipeline

The future of drug discovery has arrivedReducing development time, cost & risk

Dr. Wayne DanterPresident & CEOTel: (519) [email protected]

www.criticaloutcome.comwww.facebook.com/criticaloutcometwitter.com/criticaloutcomewww.slideshare.net/criticaloutcome

Critical Outcome Technologies - May 2014

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