Aytu BioScience Corporate Overview | November 2015 Corporate Highlights Expanding Portfolio of Revenue-Generating Urology Products Current Specialty Products: ProstaScint® and Primsol® Established Urology-Focused Sales Infrastructure Proprietary MioxSYS™ Diagnostic for Male Infertility Phase 3 Ready Clinical Asset Zertane™ Strong IP & Entrepreneurial Management 2 Commercial-Focused Management Team with a Strong History of Growing Commercial Organizations Josh Disbrow – CEO • • • Former VP of Commercial Operations at Arbor Pharmaceuticals where revenues grew from zero to over $127MM in <4 years Previous COO of Ampio Pharmaceuticals/CEO of Luoxis, a specialty biotechnology company Commercial roles at LipoScience, Cyberonics, and GlaxoSmithKline Jarrett Disbrow – COO • • • Founder and former President/CEO of Arbor Pharmaceuticals where revenues grew from zero to over $127MM in <4 years Former CEO of Vyrix Pharmaceuticals, a specialty pharmaceutical company focused on male sexual dysfunction Commercial roles at Accentia Pharmaceuticals, GlaxoSmithKline Gregory Gould, CPA – CFO • • Former CFO of publicly traded life science companies: SeraCare Life Sciences, Atrix Laboratories, and Colorado MedTech Significant transactional experience in M&A, product acquisition, divestiture, and licensing across pharma and diagnostics, including the sale of Atrix Laboratories to QLT Pharma for over $800MM Jonathan McGrael – VP of Sales • • • Former Director of Sales at Arbor Pharmaceuticals; Significant history building Arbor with current Aytu management Commercial leader who built commercial organization from 12 to over 400 employees in a five-year period Progressive experience in sales, sales management, and marketing at TAP Pharmaceuticals (now Takeda) Douglas Miller, PhD – VP of Technical Operations • • Co-founded Otologics LLC to commercialize an electronic implantable medical device that he developed while leading clinical research at Washington University School of Medicine; 25 years in medical device, diagnostics, and therapeutics R&D and clinical affairs Former Senior Research Engineer at Cochlear Ltd., the world’s leading cochlear implant manufacturer, where he directed all external research for the North American division 3 Complementary Urology Products and Pipeline Currently Marketed, Revenue-Generating Products • FDA-approved biologic for detection of prostate cancer lymph node metastasis: • Newly diagnosed patients at higher risk for pelvic lymph node disease • Patients with suspected recurrent disease • Only FDA-approved trimethoprim oral solution; indicated for urinary tract infections • Appropriate for patients with ‘sulfa’ allergies • Significant prescribing by urologists despite no promotion Late-Stage Pipeline Assets • Developing clinical applications in male infertility for use in semen analysis • Demonstrated clinical utility in two prospective clinical studies • Easier to employ for diagnostic use compared to current methods • Phase 3-ready, first-in-class treatment for premature ejaculation • Currently no FDA-approved products • Demonstrated significant increase in ejaculation time, achieving normalization for many patients 4 ProstaScint® (capromab pendetide) FDA-Approved Prostate Biologic • First-in-class, highly protected monoclonal antibody imaging agent • Binds glycoprotein expressed by prostate epithelium – Prostate Specific Membrane Antigen (PSMA) ACS Prostate Cancer EARLY DETECTION, DIAGNOSIS, AND STAGING TOPICS • Enables accurate staging and guides appropriate treatment, with emphasis on: • Higher risk, newly diagnosed – to identify organ confined disease • Treatment failures post-curative intent – to identify candidates for localized therapy • Uses an injection of low-level radioactive isotope to determine if cancer has spread beyond the prostate • Generating revenues despite no sales promotion since 2012; significant opportunity to regain Rxs 5 Primsol® Solution (trimethoprim HCl oral solution) Oral Solution for Urinary Tract Infections • Second revenue-generating product in portfolio • Only FDA-approved liquid formulation of trimethoprim • Standard of care antibiotic for treating uncomplicated urinary tract infections (UTIs) U.S. Sales Generating consistent Rxs with no sales promotion and minimal commercial support • Well established therapy in current treatment guidelines • ~26% of prescriptions for UTIs without commercial promotion 6 Building a Leading Urology Commercial Infrastructure • Hired initial U.S. sales force to re-launch commercial assets in U.S. – Appointed Jonathan McGrael as Vice President of Sales – Hired highly experienced, urology-focused account managers • Sales Strategy – Target and re-engage top historical prescribers for ProstaScint and Primsol – Initiate ex-U.S. prescriber outreach and corporate partnerships – Expect to see initial revenue growth by 2Q 2016 • Growth Strategy – Acquire & integrate additional urology products by 3Q 2016 – Scale sales team and continue to build as revenues increase – Build internal customer support functions The Aytu management team has built and launched commercial teams at specialty pharma companies 7 MioxSYS™: Meeting a Significant Need in Male Infertility • First-in-class, market-ready product – – – – • Significant market opportunity in detection of oxidative stress in male infertility CE Marked (2014); Health Canada approved (2014) U.S. clinical and regulatory pathways are short and well defined Clinical research underway with prominent academic centers in semen analysis Technical development complete following two decades of R&D – Completed product development for system and sensors – Received ISO 13485 certification with CMDCAS – First patents issued in 2012; 7 U.S. patents issued, multiple ex-U.S. patents • Razor-razorblade commercial model – Inexpensive analyzer / high-value, disposable sensors – Early research revenues from pharma and academic collaborators 8 Positive Clinical Data in Male Infertility MiOXSYS™ Enables Real Time, Accurate Assessment of Oxidative Stress in Either Semen and Seminal Plasma (P<0.001) • High oxidative stress levels correlate strongly with low sperm motility – As measured by MiOXSYS, in either semen (p=0.004) or seminal plasma (p=0.002) – MiOXSYS achieved 100% sensitivity for predicting abnormal sperm motility in both semen (specificity=89.5%) and seminal plasma (specificity=93.8%) • MiOXSYS oxidative stress measurements are not time-sensitive – Oxidative stress readings did not change significantly over a two hour period in either semen or seminal plasma (p<0.05) – Traditional methods of measuring seminal oxidative stress are time sensitive and time consuming Clinical Results Demonstrate MiOXSYS is a Faster, Easier to Employ Diagnostic that Can Be Used Effectively for Screening Infertile Men For Oxidative Stress Results presented at 2015 American Society for Reproductive Medicine annual meeting 9 Zertane™ (Tramadol ODT) Late-Stage Therapeutic Candidate • First-in-class therapy for treating premature ejaculation (PE) • Improved oral formulation • FDA IND accepted; Phase 3-ready asset Orally Dissolving Tablet Improved formulation of widely known and safe drug (tramadol HCL) that is proven to treat premature ejaculation • Approval pathway is significantly de-risked • Success in two European Phase 3, two Phase 2, and two Phase 1 trials • 505(b)(2) path reduces costs and time to market • Significant opportunity in PE • Most prevalent male sexual dysfunction (~$1.3 billion U.S. market, 2015) • Currently no FDA-approved products • Market research suggests an oral, as-needed formulation is in demand Phase 3 Phase 2 Pivotal Stage Phase 1 Preclinical 10 Investment Highlights Expansion + Licensing • • • Continue to acquire and/or license near-commercial or revenue-generating assets Interested in acquiring latestage development (Phase 3 only) programs in urology Two acquisitions already completed; another asset purchase in final negotiations • • • Diagnostic Pipeline Current Therapeutic Pipeline Male infertility redox research initiatives in place with world’s leading center in male infertility/oxidative stress Potential for additional infertility-based diagnostics Strong IP Portfolio Zertane • Pivotal trial initiation • First-in-class treatment for PE • Uniquely designed oral tablet formulation • Prepared to commercialize in US and international markets 11