Arctic Bioscience — Investor Presentation 2022

Sep 21, 2022

Arctic Bioscience

Company Presentation

Capital Markets Update, Oslo 21 September 2022

Christer L. Valderhaug (CEO)

Developing and commercializing pharmaceutical and nutraceutical products based on unique bioactive marine compounds, utilizing proprietary technology and methodology

Agenda

• Introduction and company presentation Christer Valderhaug, CEO Arctic Bioscience
• Psoriasis symptom relief through Herring Caviar Oil Dr. Kåre Steinar Tveit, Chief Physician Haukeland University Hospital
• Arctic Bioscience Pharmaceutical Development Program Runhild Gammelsæter, Medical Director Arctic Bioscience
• Brain development in extremely premature infants Knut Smerud, Founder & CEO Smerud Medical Research
• DHA, Alfa & Omega for The Brain Ole Petter Hjelle, MD PhD
• Closing remarks & Q&A CEO Christer Valderhaug, Medical Director Runhild Gammelsæter, CFO Jone Slinning
• Lunch and social

TECHNOLOGY / R&D

Proprietary technology platform and specialized know-how of bioactive marine compound

Two unique businesses built upon a proprietary technology and IP platform

NUTRA Premium Omega-3 products with benefits for brain, heart, eye health, prenatal and sports nutrition in global markets

PHARMA

Drug candidate for mild to moderate psoriasis with demonstrated promising effect in pilot clinical trial

Orphan drug candidate in pipeline for brain development in extremely premature children

Founding story: Arctic Bioscience

2020 Scientific Advice from the EMA	2021	2022
Dr. Mercola sales in USA pass 3m in single order 2020	IPO Euronext Growth, Oslo	HRO350 Phase IIb Scaling Nutra globally

2019-2022: Developing the organization to prepare for future growth

2017-2022: Building the foundation framework for a robust clinical program

• Cash generating business with revenue traction and strong growth
• Vast global omega-3 market set for further growth
• International customers in Europe, Americas and APAC
• B2C and B2B channels as well as distribution partners

• Multiple products ranging from bulk oil to finished goods

• China an ideal target market for Romega (USD 2 billion and growing)

• Strong relationship with Kotler for efficient market entry and sales growth
• Foundation for long-term export success story set strategic partnership model to be replicated

Nutra highlights

Successful launch in China through Kotler partnership

Premium Omega-3 products extracted, produced and distributed via B2B, B2C and partner channels

20 % y/y revenue growth

Positive sales prospects for H2-2022, including increased order intake from the Chinese market

Received positive opinion from EMA on Paediatric Investigational Plan

Outlines the Group's intention to investigate HRO350 for children with psoriasis

New and extended strategic partnership agreement with Kotler

Opens access to a larger part of the Chinese market, and includes potential collaboration within Pharma space in China

Financial results in line with expectations

Gross margin 27,6 % / EBITDA MNOK -14,4

H1-2022 highlights

Phase IIb clinical study on HRO350 in mild-to-moderate psoriasis largely on track 1st patient enrolled to clinical trial expected Q4-2022 (6 month inclusion period). 6-months data read out H2-2023

Business outlook

• Submit Clinical Trial Application (CTA) in Q3-2022
• First patients to be enrolled in phase IIb clinical study on HRO350 in Q4-2022 with a 6 month inclusion period
• Continue research collaboration with Smerud on new drug candidate for brain development in extremely premature children

• Process regarding commercial partner will start and run concurrently with the clinical trial of HRO350

• Materialize on positive sales prospects and received order intake for H2-2022

• Enter new geographies for B2B, including South America and further access to APAC regions
• Intensify participation at customer/clients events, post Covid

• Continue to benefit from the relationship with Kotler on sales & marketing activities and regulatory approvals in China

• Continue to establish GMP manufacturing of materials for the planned phase III clinical trial according to timeline in previously disclosed plans

• Decision and action to be taken regarding a down-scaled production facility solution
• Continue with product development for Nutra

H2-2022 objectives

PHARMA NUTRA TECHNOLOGY / R&D

H2-2022 financial guidance

Overall budget for phase IIb study in line with earlier guiding. Major value creating milestone expected with the 6 month data read out H2- 2023

HRO350 phase IIb study fully funded

ABS continues to invest in operations. Year-end cash position will be dependent on decisions on alternative investments regarding production facilities, and the progress in the Pharma projects

Cash position year-end will be strong

Positive sales prospects and received order intake for H2-2022 indicates a y/y revenue growth for 2022 in the range of 60 – 70 %

y/y revenue growth higher than earlier guiding

Increased COGS will partly be balanced by cost focus on other opex. New hires will increase personnel expenses compared to H1-2022

FY EBITDA around -35 to -30 MNOK

Arctic Bioscience

21 September 2022

Runhild Gammelsæter (Medical Director)

Pharmaceutical Development

Brief update

Properties of investigational medicinal product HRO350

Proprietary extract of phospholipid esters from herring roe

HRO350 is a complex mixture of biologically important phospholipids

Herring roe is unusually rich in specific phospholipid esters, which are extracted and encapsulated for per-oral delivery

Composition of several lipid classes and their metabolites with immunoresolving properties

GMP production, oral soft capsules

Conducting cellular studies with Norwegian R&D institutions to further investigate mode-of-action in psoriasis

Core structure of phospholipid esters from herring roe

Example phospholipid: PC(22:6n3/16:0)

IMP: Investigational Medicinal Product

GMP medicinal products from natural raw materials

21 million mild-to-moderate psoriasis patients in EU and US alone

Source: HRO350 Commercial Opportunity Assessment in Psoriasis, IQVIA report Notes: 1) Severity split based on figures from the UK, Germany, France, Italy and Spain

Developing HRO350 - a novel oral drug for mild-to-moderate psoriasis with significant market potential

There is a large proportion of patients who cannot be put on biologics and it is lot trickier and not so straight forward to put them on existing treatments. They need effective new topicals or orals."

– Clinical lecturer, Dermatology, UK

"We need cheaper options for moderate patients. We have majority of patients with PASI 5-10 but we do not want to give biologics to all and phototherapy is not feasible for everyone"

- Senior Physician, Department of Dermatology, Germany

Split of disease severity in 5 largest countries in EU51
Mild	Moderate	Severe
This usually means isolated patches on limbs and scalp.	The disease will usually be spread to the arms and legs. It may also affect the patient's quality of life.	The disease will usually be spread to the arms, legs, torso and scalp. It is likely affecting the patient's quality of life.	" "
4E			"
66% of patients1	25% of patients1	11% of patients1
PASI < 3/5	3/5* < PASI < 10	PASI > 10

PASI: Psoriasis Area and Severity Index (0-72 point scale where >10 is moderate-to-severe and severe disease) Source: HRO350 Commercial Opportunity Assessment in Psoriasis, IQVIA report Notes: 1) Severity split based on figures from the UK, Germany, France, Italy and Spain

Oral (soft capsules)

Efficacy in mild to moderate disease demonstrated in pilot clinical trial

• First-in-class active product ingredient
• Mild-to-moderate disease
• Few treatment options for non-severe disease

Improvement in quality of life demonstrated in pilot clinical trial

50% of competitive products require monitoring – unlikely needed for HRO350

Well tolerated in pilot clinical trial

Unmet medical need for patients with non-severe psoriasis

Paediatric Investigation Plan (PIP) for HRO350 agreed with EMA

*The Paediatric Committee of the EMA provides opinions on the quality, safety and efficacy of a medicine for use in the paediatric population Reference: Augustin M, Glaeske G, Radtke MA, Christophers E, Reich K, Schäfer I. Epidemiology and comorbidity of psoriasis in children. Br J Dermatol. 2010 Mar;162(3):633-6. doi: 10.1111/j.1365-2133.2009.09593.x. Epub 2009 Nov 18. PMID: 19922529.

Component of the regulatory drug development journey for HRO350

Prerequisite for filing for marketing authorization (MA) for new medicines in Europe

Requirement before starting the phase IIb study in adults

High unmet medical need PIP agreed with the Paedatric Committee* of the EMA Q1 2022

1% of children under age 18 suffer from psoriasis

Limited treatment options

A future paediatric indication could increase patient population who could have benefit of HRO350

Platform technology with potential beyond psoriasis

Properties of HRO350 may have relevance in inflammatory diseases

Phospholipid esters and metabolites Potential relevance in diseases associated with inflammatory pathologies

HRO350 contains active substances with the potential to affect inflammatory processes

To investigate efficacy, safety and dose of drug candidate HRO350 versus placebo

Large randomized Phase IIb study: 519 patients

Fully funded

Smerud Medical Research as CRO

Given successful Phase IIb study, phase III study to be initiated

Large phase IIb study to drive pharma forward

Milestone overview HRO350 drug development

HRO350 is an investigational medicinal product

2021	2022	2023	2024
GMP study drug production			Development of formulation for children
	Phase IIb clinical trial
Site feasibility	IMPD and CTA	Enrollment	Data read-outs	Publications
				Pharmacokinetic study
				Phase III clinical program

MAA: Marketing Authorization Application; IMPD: Investigational Medicinal Product Dossier; CTA: Clinical Trial Application; GMP: Good Manufacturing Practice

Plan as presented at listing and tasks on track, certain tasks took longer than expected

Pharma Pipeline

~15 million premature births annually worldwide1

~5% are extremely premature (< 28 weeks)2

Babies born this early do not have fully developed brains, and therefore a high risk of disability and complications

Novel drug candidate for brain development in extremely premature infants

Smerud cover cost of clinical program

Arctic Bioscience to cover cost of formulation development

Orphan designation to be sought

In parallel with HRO350 clinical program for psoriasis

High unmet medical need Collaboration with Smerud Medical Research International

Matters discussed in this Presentation may constitute or include forward-looking statements. Forward-looking statements are statements that are not historical facts and may include, without limitation, any statements preceded by, followed by or including words such as "aims", "anticipates", "believes", "can have", "continues", "could", "estimates", "expects", "intends", "likely", "may", "plans", "forecasts", "projects", "should", "target" "will", "would" and words or expressions of similar meaning or the negative thereof. These forward-looking statements reflect the Company's beliefs, intentions and current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. Forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The forward-looking statements in this Presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions that may not be

accurate or technically correct, and their methodology may be forward-looking and speculative.

An investment in the Company's shares should be considered as a high-risk investment. Several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement that may be expressed or implied by statements and information in this Presentation.

A multitude of factors can cause actual results to differ significantly from any anticipated development expressed or implied in this Presentation, including among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Company's businesses, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors.

The information obtained from third parties has been accurately reproduced and, as far as the

Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.

The contents of this Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. By receiving this Presentation, the Recipient acknowledges that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and is solely responsible for forming its own opinion of the potential future performance of the Company's business. In making an investment decision, the Recipient must rely on its own examination of the Company, including the merits and risk involved. This Presentation is not an advertisement for the purposes of applicable measures implementing the EU Prospectus Regulation.

This Presentation is not a prospectus and does not contain the same level of information as a prospectus.

Disclaimer

Contact

CEO - Christer L. Valderhaug: christer@arctic-bioscience.com

CFO - Jone R. Slinning jone@arctic-bioscience.com

Medical Director – Runhild Gammelsæter: runhild@arctic-bioscience.com

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