ArcticZymes Technologies — Investor Presentation 2019

Aug 29, 2019

High margin growth business

LSX Nordic Congress, Stockholm

Christian Jørgensen, CEO August 29th., 2019

Disclaimer

This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts.

Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone or other words of similar meaning and similar expressions or the negatives thereof. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected.

Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except as required by the Oslo Stock Exchange rules or applicable law, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward-looking information and statements, whether to reflect changes in the Company's expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based.

Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements.

Biotec Pharmacon ASA

• Biotec Pharmacon is a Norwegian life science company focused on specialized, novel enzymes and immunomodulating betaglucan technology.
• Listed on the Oslo Stock Exchange in 2005 under the [BIOTEC] ticker symbol.
• Two divisions, driving revenues and cash generation across USA, Europe and Asia:
  • ArcticZymes develops, manufactures and commercialises novel recombinant enzymes for use in molecular research, In Vitro Diagnostics (IVD) and therapeutics.
  • BetaGlucans develops immunomodulating glucan products, primarily Soluble BetaGlucan (SBG®) with focus on commercialising an active wound healing dressing (Woulgan®) setting a new standard in treatments of wounds.

Financials Q2 2019 – another good quarter

NOK 1.000	Q2 2019	Q2 2018*	Change	YTD 2019	YTD 2018*	Change
Total revenues	18 979	12 234	+55%	34 862	28 231	+23%
Operating expenses	-14 254	-13 029	-9%	-31 216	-29 649	-5%
EBITDA	-491	-3 480	+86%	-4 400	-8 621	+49%
EBIT	-1 896	-4 770	+60%	-7 168	-11 199	+36%
Cash & cash equivalents	21 369	35 163	-39%	21 369	35 163	-39%

*2018 figures are adjusted according to IFRS16 for comparison purposes

ArcticZymes

Novel enzyme technologies focusing on molecular biology, molecular diagnostics and biomanufacturing

Molecular Enzyme Market - NOK 6 Billion

Serving a sophisticated market

• Sales CAGR 2014 -> 2018: 19%.
• Customers within:
  • molecular diagnostics, molecular biologics and biomanufacturing.
• Large multinationals and small specialised companies.
• Stringent customer demands on i.e. quality, delivery performance enables ArcticZymes to commercialise its products in all segments and companies.
• ISO 13485 certified.

Innovation – high quality R&D efforts

• Proteinase: Novel heat-labile enzyme easily inactivated after use. Open doors to penetrate the rapidly growing liquid biopsy and sample preparation markets. e.g. non-invasive tests based on cancer biomarkers.
• GlycerolFree SAP: Represents the 4th member of ArcticZymes' glycerol-free product family. New formulation was developed based on requests from existing customers eager to expand their product range and product life cycles.
• Ligase: ArcticZymes launched its first ligase enzyme A High Quality T4 DNA ligase. Prototype of a novel ligase enzyme being tested by customers.
• 2 new Tritron free products (COD UNG and HL dsDNase). Another step towards establishing an EU-Reach compliant portfolio. Furthermore the COD UNG formulation is also glycerol free, which makes it suitable for freeze drying.

ArcticZymes road map

• Continue to develop and commercialise a relevant and broader synergistic OEM product portfolio.
• Leverage increased capacity and higher-level sales expertise with new business development team.
• Part of Horizon 2020 and EuroStar programmes.
• Combination of investment in organic and nonorganic growth initiatives.
  • Invested in M&A resources.

Betaglucans

A unique platform for products with immune modulating effects

Woulgan® opportunity

• Woulgan® an active wound healing dressing.
• Stalled wounds is a growing global problem. 1-2% of population experience chronic wound during lifetime.

• 60% chronic wounds become stalled (5%+ of Diabetic Foot Ulcer's result in amputation).

• Sales growth especially in Germany.
• Active discussions with potential partners to increase commercial power.
• Active ingridient is SBG® (Soluble Beta-Glucan) can be licensed.

Wound healing in DFU

Strategy: 2 avenues of growth

License the SBG® technology

Soluble Beta-Glucans Activates the macrophages & innate immune system"

Team up with partners to increase sales

"Reactivating macrophages & slow healing wounds

Clinical proof & claims

• Diabetic Foot Ulcers
• Leg Ulcers
• Pressure Ulcers
• Health Economic studies

Investment opportunity

-2 technology platforms generating high value products in growth segments

• Creating unique enzymes used in high value environments like molecular diagnostics, molecular biologics and biomanufacturing.
• Combination of investment in organic and non-organic growth initiatives.
• Unique and well documented wound care product addressing large unmet need.
• Licensing opportunities for Woulgan® and the API SBG®.

Enzymes Betaglucans

Contact: Christian Jorgensen, CEO christian.jorgensen@biotec.no Tel: +47 4779 2457 www.biotec.no

Thank you!

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