Devonian Health Group, Inc. · TSXV:GSD

Devonian Health — Investor Presentation (August 2016)

30 slides from Devonian Health's investor presentation, August 2016

  1. Slide 1: Farm to Pharm™ – Sourcing New Pharmaceuticals from Nature

    Farm to Pharm™ SOURCING NEW PHARMACEUTICALS FROM NATURE Dr André P . Boulet, P hD P resident August 2016 A preliminary prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in the provinces of Québe

  2. Slide 2: Cautions

    Devonian Health Group Inc. Cautions An investment in the Units is speculative and involves a high degree of risk. An investment in the Units is suitable only for those purchasers who are willing to risk a loss of some or all of their investment and who can afford to lose some or all of their investm

  3. Slide 3: Active Ingredients' Origin

    ACTIVE INGREDIENTS’ ORIGIN Botanical Drug Field Active Complexes  Prescription medicines  Derma-cosmetic products Extraction Usual Pharmaceutical Field •Natural Products Chemical molecules •Functional Foods •Homeopathy etc…  Prescription medicines  Derma-cosmetic products 3

  4. Slide 4: Pharmaceutical Drug Discovery

    Pharmaceutical Drug Discovery  The Issues : ► Pharmaceutical decline of R&D productivity (1) ► Cost to bring a new drug to market: $ 2.6 billion(2) (3) ► Patent Expiration : By 2020, $259 billion of sales at risk from patent expiration  Solutions : Botanical Drugs ► Botanical drugs are cleared for

  5. Slide 5: Investment Opportunity

    Investment Opportunity ► Botanical Drug is an emerging field within the p harmaceutical world: ► 2013-20 Regular drugs CAGR : +5.1% (1) ► 2015-20 Botanical drugs CAGR : +117.9% (2) ► Therapeutic approaches targeting unmet medical needs; ► Late-stage botanical drug targeting underserved anti-inflamma

  6. Slide 6: Devonian's Business Model

    DEVONIAN’S BUSINESS MODEL A Royalty Driven Botanical Drug Company - Strategic alliances / Co-development = upfront payments + royalties - Licenses : sales / royalties Licenses = sales/ royalties Discovery Development Pre-Commercialization Commercialization Maximize commercial capacities DEVONIAN Sou

  7. Slide 7: Near Term Pipeline of Opportunities

    Near Term Pipeline of Opportunities Pharmaceuticals  Phase 2a Ulcerative Colitis clinical trial completed  Biological activity demonstrated  Phase 2 clinical trial planned for Q4 2016/Q2 2017;  Potential strategic alliance for specific indication/territory;  Co-development of new product(s) Der

  8. Slide 8: Senior Management and Technical Team Member

    Senior Management and Technical Team Member André P. Boulet, PhD, President & CEO Many years of experience in drug development, regulatory affairs, market access, financing and restructuring in the pharmaceutical and biotech industries with, among others, Hoechst Marion Roussel Inc., Marion Merrell

  9. Slide 9: Board of Directors

    Board of Directors André P. Boulet, PhD, President & CEO Many years of experience in pharmaceutical drug development, biotechnology and finance (VC). Jean Bourgouin, MD Expertise in pharmaceutical clinical development. Former VP, Scientific Affairs, Aventis ; Vice President Scientific Affairs and Ch

  10. Slide 10: A Breakthrough Technology

    A Breakthrough Technology Ulcerative Colitis Atopic Dermatitis Thykamine Crohn Other Inflammatory • A potential large variety of plants could be used in the SUPREX Green Plants Organic Baby Spinach Diseases Extraction Platform; Women Anti-Aging tm • Possible sourcing of new innovative compounds as T

  11. Slide 11: Thykamine: Inflammation Under Control

    THYKAMINEtm: INFLAMMATION UNDER CONTROL ► Mixture of galactolipids & proteins; ► Potent anti-inflammatory activity: Pre-clinical studies have demonstrated that Thykaminetm has :  A potent anti-inflammatory activities;  A potent anti-oxidative activities;  A potent immunomodulatory activities ; 

  12. Slide 12: Therapeutic Opportunity: Inflammation

    Therapeutic Opportunity : Inflammation ► Inflammation is very common in several diseases such as asthma, diabetes and cardiovascular diseases etc.; Cancer Neurological Cardiovascular Diseases  Devonian targets 2 low hanging fruits with less expensive and shorter time to market therapeutic indicatio

  13. Slide 13: Atopic Dermatitis – What is it?

    Atopic Dermatitis –What is it ? ► Atopic Dermatitis = Eczema(1) ► Chronic inflammation of the skin(2)  Inadequately responsive to Topical Therapy;  Prevalence(2) : ► Children : 15-30%; ► Adult : 2-10%.  Co-occuring disorders(2) : ► Asthma : 25%; ► Rhinitis : 34%; ► Food Allergies : 15%; ► Kids mo

  14. Slide 14: Atopic Dermatitis – How is it currently treated?

    Atopic Dermatitis – How is it currently treated ? (1) Adverse events : Creams/Ointments -Skin atrophy (Corticosteroids) -Glaucoma/cataract Adverse events : Immunosuppressant Treatment -Increased risk of cancer (Drugs like cyclosporine) -Increased risk of infections Limitations : -Costs Biologics -In

  15. Slide 15: Atopic Dermatitis – Billion $ Market and Growing

    Atopic Dermatitis – Billion $ Market and Growing Market is projected to almost double by 2022 (1) Need for new therapeutics with : (2) WORLD ATOPIC DERMATITIS MARKET ► Better efficacy; US$ BN 6 ► Better tolerability; 5 5,6 4 ► Safer maintenance; 3,9 3 2 ► Fewer side effects. 1 0 2012 2022 (1) Global

  16. Slide 16: Ulcerative Colitis – What is it?

    Ulcerative Colitis–What is it ? ► Chronic inflammation of the colon/rectum; ► Prevalence : 37 to 246 cases per 100,000 persons (1) ; ► Relapsing & remitting episodes(1) :  Diarrhea;  Bloody stools :  Pain;  Fever;  Cramps; (1) Centers for Disease Control and Prevention, accessed online: http://

  17. Slide 17: Ulcerative Colitis – How is it currently treated?

    Ulcerative Colitis – How is it currently treated ? (1) Diarrheal Symptoms (Drugs like Immodium®) Adverse events : Aminosalicylates Inflammation -Digestive distress -Headache Mild –to Moderate : Aminosalicylates Corticosteroids Treatment Moderate-to-severe : -Cataracts/glaucoma Corticosteroids -Osteo

  18. Slide 18: Ulcerative Colitis – Billion $ Market and Growing

    Ulcerative Colitis – Billion $ Market and Growing Market is projected to almost double by 2022(1) Unmet medical needs with current therapeutics approaches: ULCERATIVE COLITIS MARKET 2012-2022 4 ► Calcineurin & TNF-antagonist effects wear off over time ; (2) 3,5 3.6 3 ► Significant treatment failures

  19. Slide 19: Thykamine: Phase IIa Clinical Study in Ulcerative Colitis

    THYKAMINEtm: PHASE IIa Clinical Study in Ulcerative Colitis (1) Placebo Day 7 Day 14 Day 21 ► Thykaminetm intrarectal administration daily at Patients with Left-Sided bedtime; Mild-to-Moderate Ulcerative Colitis (Flare) Day Day ► Safety assessed throughout the study; 250 mg Day 7 14 21 Randomization

  20. Slide 20: Thykamine: Phase IIa Results

    THYKAMINEtm: Phase IIa Results Clinical Symptoms (1) Primary Endpoint – Safety  Safe;  Well tolerated;  Maximum tolerated dose was not observed. (1) A 2-Week Exploratory Randomized, Double-Blind, Parallel- Group, Dose-Ranging, Placebo-Controlled Safety, Tolerability, Biomarker and Efficacy Clinic

  21. Slide 21: Thykamine: Phase 2a Ulcerative Colitis Clinical Study Results

    Thykaminetm : Phase 2a Ulcerative Colitis Clinical Study Results ► Excellent safety profile of Thykaminetm rectal enema; ► Effect in a 14 day treatment :  Impact on symptoms;  Decreased inflammatory and disease’s biomarkers;  Feasibility of conducting a larger sample-sized Phase 2b study .  Seek

  22. Slide 22: Thykamine: Competitive Advantages vs Current Therapies

    Thykaminetm : COMPETITIVE ADVANTAGES vs CURRENT THERAPIES(1,2,3,4) Old Drugs ( > 20 yrs) Novel Drug Aminosalicylates (5-ASA) Thykaminetm Asacol HDⓇ; PentasaⓇ; RowasaⓇ  Non-Chemical Therapy;  Rx : up to 8 weeks  Rx : expected 4 weeks;  1 to 4,8 gr / 3 to 4 X per day  Once-a-day ( 250 mg to 750 m

  23. Slide 23: Pipeline

    Pipeline Drug tm Ulcerative Colitis FDA Meeting Q1-2017 Thykamine tm Thykamine Atopic Dermatitis Initiation Phase II . Study completion Q2, 2017 - Dermo Cosmeceutical Products anti-aging Private Labels Women Products Line Day-night-eye cream Market Entrance Q3/4 2016 23

  24. Slide 24: Derma-Cosmeceutical Products

    Derma-Cosmeceutical Products ► Global anti-aging market projected to grow to $ US 191.7 billion by 2019 (1); ► Devonian Women anti-aging products : Day, Night and Eye creams; ► Patent-pending products; ► Short Term revenue stream; ► Study in human demonstrated superiority over two leading prestige p

  25. Slide 25: Strategic Plan

    Strategic Plan ► Maximizing the value of Devonian by developing Thykaminetm (and other candidates) to end of Phase II clinical status; ► Value is achieved in 2016/17 through the market entrance of our derma-cosmeceutical products and build a pipeline; ► Value is achieved in 2017 through the completi

  26. Slide 26: Term Sheet Summary

    Term Sheet Summary Target : Min $ 6M and Max of $ 10M  Pre-Money value : $30M  Terms of financing : $0,75 / Unit : 1 Common share + ½ Warrant  Each full exercisable Warrant @ $1,10 for 24 months Min ($ 6M) Max ($ 10M) Common Shares 8,000,000 13,333,333 Warrants 4,000,000 6,666,666 Over-Allotment

  27. Slide 27: Use of Proceeds

    Use of Proceeds Round of financing: Minimum $6M/Maximum $10M Minimum $6M ► Completion of a large Phase 2 clinical trial of Thykaminetm in patients with atopic dermatitis; ► Business development activities related to Thykaminetm licensing; ► Meet general corporate requirements. Maximum of $10 million

  28. Slide 28: Why Invest in Devonian

    WHY INVEST IN DEVONIAN ► Unique extraction technology platform  Strong IP to develop other drugs;  Roadblock to generics. ► Lower cost, lower risk botanical pharmaceutical focus ► High value business model  Develop products to high value point post proof-of-concept;  Out-license marketing rights

  29. Slide 29: Thank you

    Farm to Pharm™ Thank you Devonian Health Group Inc. Image courtesy of Stuart Miles at FreeDigitalPhotos.net www.groupedevonian.com 29

  30. Slide 30: Comparables information removed for SEDAR filing

    Farm to Pharm™ In accordance with Section 13.7(4)(b) of National Instrument 41-101 – General Prospectus Requirements, all the information relating to Devonian’s comparables and any disclosure relating to the comparables, which is contained in this document to be provided to potential investors, has

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