Investor Presentation | June 2013The future of drug discovery
has arrivedReducing development time, cost & risk
2TSXV: COTDisclaimerWhen 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 futurefinancial and operating results of
Critical Outcome Technologies Inc. (COTI).COTI bases these
forward-looking statements on its current expectations about
futureevents. Such statements are subject to risks and
uncertainties including, but not limited to,the successful
implementation of COTIs 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 COTIs publicdocuments such
as press releases and filings with the Toronto Stock Exchange and
theOntario Securities Commission.All forward-looking statements are
qualified in their entirety by the cautionary statementsincluded in
this document and such filings. These risks and uncertainties could
cause actualresults to differ materially from results expressed or
implied by forward-looking statementscontained in this
presentation. These forward-looking statements speak only as of the
dateof this presentation.
3TSXV: COTInvestment highlights123Proprietary technology
reduces time, cost& risk of bringing new drugs to
marketTwo-pronged commercial validation andrevenue strategyActively
pursuing licensing of lead cancerdrug candidate (COTI-2) with
Pharma leading to profitability
4TSXV: COTProblem 1: high costConventional development can cost
up to $1 billionand take ~ 15 years to bring a new drug to
marketDiscovery Proof of Concept Final DevelopmentPhase I Phase II
Phase IIIPreclinicalTestingIdea Drug11 - 15 YearsClinical
Testing
5TSXV: COTProblem 2: high risk of failureVast majority ofdrug
candidates failat some stage ofthe developmentprocess1 FDA approved
drugThousands ofcompounds screenedand tested
6TSXV: COTThe opportunityMajor Pharma reducing internal
R&Do Low R&D productivityo Focusing on marketing &
distribution controlthe end customerSignificant opportunities for
R&D collaborationso Leverage complementary expertise /
capabilities
7TSXV: COTOur solution: rapidly acceleratingdrug
discoveryYearsPreclinicalDevelopmentSteps Reduce drug
discoverytimeline by 1.5 - 3 years Save significant $$$ Increase
revenue periodunder patent protection
9TSXV: COTAbout CHEMSASComputational replicationof traditional
wet lab drugdiscovery processFailed attempts occur incomputer
simulations,not the research benchReduces time, cost and riskof
drug discovery process9TSXV: COT
10TSXV: COTTwo-pronged commercialization strategy12R&D
collaborations for revenue& 3rd party validation of theCHEMSAS
platformLicensing our own drugcompounds
11TSXV: COTTypical CHEMSAS R&D collaborationPartner has
specific novel drug targetReceive an upfront development fee from
Partner andbuild a compound libraryLibrary testing and evaluation
at Partners expenseWe retain IP ownership of compounds and all
dataAt agreed milestone, Partner proceeds with developmentunder a
license with upfront, milestone, and royaltypayments
12TSXV: COTCHEMSAS R&D collaborationsA collaboration can
bring in multiple milestone paymentsproviding significant ongoing
revenuesScalability of CHEMSAS enables multiple
concurrentcollaboration revenue opportunitiesAnnounced three
collaborations in 2012o Western Universityo Delmar Chemicalso Major
Pharma CompanySeeking more CHEMSAS collaborations
13TSXV: COTLicensing our own compoundsActively pursuing
licensing of lead cancerdrug candidate, COTI-2, with a
PharmaCompany in a transaction making usimmediately profitableOther
internal drug development projects inqueue (i.e. AML)
14TSXV: COTAbout COTI-2Effective againstcancers withmutations
of thep53 gene> 50% of allhuman cancershave a p53mutationEasily
synthesized oral formulation with no stability issuesEffective
alone or in combination with approved cancer drugsIn final
two-species toxicity studies prior to FDA filing in late2013
enabling human trials
15TSXV: COTTSXV: COTCOTI-2 intellectual property overview4 U.S.
patents granted strengthening COTI-2s valuepropositionPatents
pending in USA, Europe, Canada and JapanPatent strategy preserves
downstream patent filingopportunities for potential extension of
marketexclusivityWe own all intellectual property with no
licenseobligations
16TSXV: COTTSXV: COTWhy out license COTI-2?Drug development is
a long and expensive processOur core competence is accelerating
drugdiscovery, not drug developmentRecent preclinical oncology
licensing dealsincluded:o Upfront payments of approx. $5-$15
milliono Milestone payments between $120-$288 milliono Royalties on
net sales
17TSXV: COTSummary123Proprietary technology reduces time,
cost& risk of bringing new drugs to marketTwo-pronged
commercial validation andrevenue strategyActively pursuing
licensing of lead cancerdrug candidate (COTI-2) with Pharma leading
to profitability
The future of drug discovery has arrivedReducing development
time, cost & risk