The AsthmaCo. June 2013 $8.9B Problem in Asthma SALBUTAMOL (a.k.a. Albuterol) is the ONLY short-acting bronchodilator – several “me toos” - all act via same B-adrenergic pathway $1.6B sales, 4th most prescribed, 15th highest selling GENERIC worldwide When Salbutamol doesn’t work… 3.9M Emergency Department visits / yr TREATED WITH SALBUTAMOL AGAIN! – no other options exist $2.1B: 85% sent home after 3 hrs $6.8B: 15% take up 1.8M hospital bed-days >10,000 deaths worldwide WHAT IS NEEDED: NEW Short-Acting Bronchodilator, with NEW mechanism of action Canadian Asthma Research Leads to New Drug Discovery NEW mechanism of action Mucous plugs Drugs can’t get to where they are needed New Treatment: S-1226TM Perflubron mixed with CO2-enriched air Short-Acting Bronchodilator Constituents are well described, safe Constituents have previously been Circulaire II approved by FDA, EMA, etc… CO2 NEW mechanism of action Perflubron Superior to Salbutamol! S-1226TM Faster Than Salbutamol Pre-MCh Post-MCh Tissue dye 0 second treatment 1 second treatment 2 seconds treatment 3 seconds treatment www.SolAeroMed.com/S-1226 4 seconds treatment More Potent and Longer-Lasting than Salbutamol 60 % Opening of Airways 50 No treatment 40 Salbutamol S-1226™ (12%) 30 20 10 0 Immediately 10 minutes 20 minutes Time After Treatment Cessation Patented in Major Markets Issued in US and Europe Pending in other jurisdictions Claims: Composition of matter and method to treat Monotherapy and in combination Markets Emergency Department: “preceding salbutamol for acute asthma exacerbation” Estimated at $190M Peak Sales Less than 10% COGS – approximately $13/unit Personal rescue device Estimated at up to $2.9B Peak Sales Combination drug Estimated at $2B - $4B Peak Sales Partners Proprietary nebulizer Exclusive Perflubron supply (marketed as Perflubronc® by Origen Biomedical) Phase I Clinical Trial Phase IIa Clinical Trial Development Partner Candidates Team Management Experienced in the business, and top scientists Board of Directors Extremely successful at growing and selling respiratory medicine companies Advisors Highly networked, experienced Corporate Development 2008-2012 Nonclinical Research Drug Screening Compare vs Salbutamol Find Optimal Dose Manufacturing Build Prototype Secure Suppliers Minimize COGS Large-Scale 2013 2014 2015 2016 2017- ✓ ✓ ✓ - July 2013 - CTA@Boston Award ✓ ✓ ✓ Clinical Development Receive NOL Phase I Phase IIa Phase IIb Phase III Corp Off. in US ✓ US VCs & Partn ers EXIT - Acquisition Marketing Secure Marketing Partner Marketing Clearance Launch Prototype Proof of Concept Market Test Exit US Expansion Interest expressed by: Boston Harbor Angels, Lead: Bill McPhee Mass Medical Angels, Lead: Frank Bobe Launchpad, Lead: Eduardo Pontoriero Office in Cambridge, MA Canadian Technology Accelerator Selected in a highly competitive application process Cambridge Innovation Center Office Other MIT VMS, Lead: Jerome Smith Keiretsu Forum, Lead: Thealzel Lee S-1226™ is De-Risked Proof of Concept & Animal Studies Animal Studies Toxicity Toxicity – past studies Controlled Human Efficacy Efficacy – sheep, humans Manufacturing Manufacturing - 510(k) Real World Efficacy Statistically Significant Data Regulatory Approval Pre-clinical Phase I Phase IIa Phase IIb Phase III Approval S-1226™ Future Partnerships We are seeking additional strategic partnerships to help fund, develop, and commercialize S-1226™