netiamedicaltechnologies

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Our missionis to provide drug development

companies worldwidewith the technology to create

more expansive,much less expensive

pharmaceuticals.

Netia Medical Technologies

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Snapshot: RNA interferenceRNAi suppresses the expression of proteins that cause disease.

1990 - 1st documented in purple petunias

Attempt to make intensely purple RNAi triggered; all purple suppressed = petals white

2006 - Nobel Prize: discovery of “trigger” that activates RNAi

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Netia RNAi Drug Development Platform

Cuts cost of getting new drug to market by >50%

Saves time to market by 3 years Expands ability to treat medical disorders

Much Better Drugs at a Much Lower Cost

TheCriticalIndustryNeed

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65 Year Decline in Pharma R&D Efficiency

Increasing cost/market approval: Unsustainable

Scannell et al., Diagnosing the decline in pharmaceutical R&D efficiency. Nature Rev Drug Discovery 11: 191-200, 2012

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R&D for 1 Marketed Therapeutic: $1B-$21B

High cost of inefficiency: Unsustainable

Tollman et al., Identifying R&D outliers. Nature Rev Drug Discovery 10: 653-4, 2011

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Limits of Main Drug Type =R&D Cost Crisis

Small Molecule Drugs: • Don’t work with most targets of therapeutic

interest• Can’t be rationally designed• Massive screening required = poor

predictability• Manufacturing & behavior in body unique to

each• Determine likelihood of clinical failure late

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High Drug Prices Pressure Big Pharma

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Pharma’s Recognized Solutiona Drug Development Platform that Targets RNA

rather than proteins = more expansive & much less expensive

The Netia Platformremoves the limitations

and blends the best features of both

have been

developed2

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1st RNA-targeting Platform Antisense Oligo Drugs

1992: 1st systemically given to patients -- invented by Dr. Larry J. Smith

2012: 1st clinical successes, industry acceptance

2016: Limitation: Active only in liver & CNS

2016: Best Feature: Pervasive uptake

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Leading Antisense Oligo Drug Company

FirstClinical Successes

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2nd RNA-targeting Platform Double-strand RNAi Drugs

2004: 1st clinical trials, but poor carrier/cellular uptake

2012: 1st impressive trial results with new carrier

2016: Limitation: Uptake in liver only

2016: Best Feature: Active inside all cells

siRNA

target degraded

RNAimechanism

Leading Double-strand RNAi Drug Company

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$750MInupfrontfees

FirstClinical Successes

Remains LimitedtoLiver

MeetingtheCriticalIndustryNeed

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The Netia Platform Sequential RNAi (seqRNAi) Drugs

seqRNAidrug pair

guide strand

active RNAi mechanism

siRNA

RNA target degraded

RNAimechanism engagedRNA target

Single strands given sequentially; no carrier neededStrands combine in cells; form double-strand RNAi drug

Drug activates RNAi mechanism

RNA molecule that promotes disease destroyed

Unsustainable R&D Costs Overcome

Engage nearly all targets of therapeutic interest

Can be quickly & rationally designed

Manufacturing & behavior in body same for each

Results in animals more predictive of human outcomes

Determine likelihood of clinical failure early17

Netia seqRNAi Drugs:

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Netia Poised to Enter Productivity Plateau of Transformative Technology ‘Hype Cycle’

FinancialModeling &BusinessStructure

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Eli Lilly Dynamic Financial Modelof Small Molecule Drug Development

Overall success rate = 4%

Paul et al., How to improve R&D productivity: Pharmaceutical industry’s grand challenge. Nature Rev Drug Discovery 9: 203-14, 2010.

Netia: Major Advantages at Every Stagewith seqRNAi Drug Development

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ROI Streams

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CRO

Netia: Early Target Validation Savingsfor small Molecule Drug Developers

CRO charges $135M (50% gross profit). Net client savings: $945M

Development Stage

Cost(capitalized)

Cumulative SavingsWithout Early Target

Validation(cumulative)

With Early Target Validation(cumulative)

Preclinical $824M $183M $641M

Phase I $1.10B $256M $852M

Phase II $1.42B $391M $1.029B

Phase III $1.73B $650M $1.08B

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Netia Biopharma Subsidiaries for Acquisition

B I O

CRO develops RNAi drugs in-houseTransfers rights to subsidiaries for sale

High ROIs for drugs developed to any stage

Focus: Disorders for Phase II market approvalOption: Partnering

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Venture-backed Biopharma Acquisitions2005-2012

Giniatullina et al., Building for big pharma. Nature Biotech 31: 284-287, 2013.

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Estimated ROI: seqRNAi Drugs Sold by Development Stage

B I O

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Key PersonnelLarry Smith, Ph.D.

President, Founder, Inventor of Netia technology Previous Founder & CEO Hesed Biomed & Eleos Inc.

Samuel Benchimol, Ph.D. Head, lab working with Netia RNAi drugs Chair, Dept. of Biology, York University, Toronto Prior Head Cell & Molecular Biology, U of Toronto, Ontario Cancer

Institute

Randall Gatz, Ph.D. Former: New Opportunities Business Development Dir, Debiopharm,

Lausanne VP of R&D Fournier Laboratories, Dijon, France PI, US National Cancer Institute’s Drug Development Program