Sorrento Therapeutics, Inc. · OTC:SRNE

Sorrento Therapeutics — Investor Presentation (April 2019)

18 slides from Sorrento Therapeutics's investor presentation, Apr 16, 2019

  1. Slide 1: Sorrento CBD Business April 2019

    SORRENTO CBD BUSINESS APRIL 2019

  2. Slide 2: Disclaimer

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Disclaimer Certain statements contained in this presentation or in other documents of Sorrento Therapeutics, Inc . (the “Company”) and of any of its affiliates, along with certain statements that may be made by management of the Company orally i

  3. Slide 3: CBD Market

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Global CBD Medical Market ~$70+Billion Global CBD Consumer Market ~$115+Billion CBD Market 3 Source: BMO Research and Deloitte

  4. Slide 4: US CBD Infused Products

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved US - CBD Infused Products ($ in mm) Current Market Size $208,900 Potential Low Share 1.6% Potential Base Share 5.0% Potential High Share 18.7% Base Case Opportunity $10,445 High Side Opportunity $38,990 262.2 358.4 512.7 813.2 1153 1546 1812 0 2

  5. Slide 5: Benefits of Water-Soluble Technologies

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved • Benefits of Water - Soluble Technologies • Water - soluble compounds travel through the body faster and more efficiently • Greater absorption into bloodstream compared to fat - soluble • Smaller concentrations needed for efficacy Water - Solub

  6. Slide 6: Cannabinoids: Entering the Blood Stream

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Cannabinoids: Entering the Blood Stream 3 routes CBD enter s the blood stream: Inhalation High bioavailability (est. 30%) Harmful to Lungs Sub - lingual (under tongue) Medium bioavailability (est. 16%) Foul taste Oral – Gastrointestinal Tract Lo

  7. Slide 7: Federal CBD Regulations

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Federal CBD Regulations • U.S. • 2018 Farm Bill • Hemp is cannabis with less than 0.3% THC • Hemp removed from Controlled Substance Act (CSA) and jurisdiction of Drug Enforcement Agency (DEA) • Hemp Considered an agricultural commodity • Interna

  8. Slide 8: State CBD Regulations

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved State CBD Regulations • Recreational Use: Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, and Washington • Medicinal Use : All states besides Idaho, Kansas, Nebraska and South Dakota • Illegal Use : Idaho, Kansas, Nebraska an

  9. Slide 9: CBD Industry Landscape

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Medicine Consumables Cultivation CBD Industry Landscape 9

  10. Slide 10: Sorrento Business Model

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento CBD Unique Formulation Consumer Products Alcoholic Beverages Consumables Soft Drinks Secured supplies Other Suppliers Sorrento Business Model 10 Upstream Downstream Pharmaceuticals Pills Liquids

  11. Slide 11: Upstream (In Negotiation with Hemp Grower)

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Upstream (In Negotiation with Hemp Grower) 11 Land Warehouse Exterior Hemp Seeds Dried Hemp Leaves and Flowers Warehouse Interior

  12. Slide 12: Upstream

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 3,200 Potential Acres 400 tons of leaf & flowers 2 tons of CBD (to - be - purified) Potential for 100 tons of CBD per year Upstream 12 Our Exclusive Supplier in China Other Major Hemp Growers

  13. Slide 13: Upstream Capability Comparison

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved SRNE Tilray Aurora Charlotte’s Web Acre 65 (in plantation) Potential 3,200 21 108 (by 2020) 300 Dried Harvest 400 tons (in inventory) 30 tons (currently) 500 tons (by 2020) 337.5 tons CBD 2 tons (to be purified) Upstream Capability Comparison 13

  14. Slide 14: Downstream

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Downstream Soft Drinks Water Beer Confectionary 14

  15. Slide 15: Sorrento CBD Formulation

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento CBD Formulation 15 EPIDIOLEX® Oral Solution (GW Pharmaceuticals) • Active: CBD • Inactive: Dehydrated alcohol, sesame oil, strawberry flavor and sucralose. Sorrento CBD solution • Active: CBD • Inactive: Proprietary formulation using FD

  16. Slide 16: Sorrento CBD Formulation – Aqueous Concentrate

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento CBD Formulation – Aqueous Concentrate Sorrento CBD Concentrates • Active: CBD, up to 5% (50 mg/ml) in aqueous solution. • Ready to be used or diluted with water, PBS and other aqueous solutions. 5% CBD solution 50mg/mL 50 x dilution Mix

  17. Slide 17: Sorrento CBD Formulation Advantage

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento CBD Formulation Advantage 17 Clear Aqueous Solution All material listed in FDA Inactive GRAS Ingredients for Approved Drug Products database. Formulated in different concentrations (>5%) Formulated for better bioavailability Formulated

  18. Slide 18: Manufacturing Process

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Manufacturing Process CBD cultivated in China or other Parts of the World Water - soluble formulation in US/China Downstream Product Companies 18

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