Announcement PDF ASX ANNOUNCEMENT Updated AdAlta Investor Presentation MELBOURNE Australia, 3 May, 2017: AdAlta Limited (ASX:1AD), the biotechnology Company advancing its lead i-body candidate towards clinical development today announced an updated investor presentation that Chief Executive Officer Sam Cobb will present at the Canary Networks Stocks to Watch Roadshow and various investor meetings. The updated AdAlta Investor presentation will comprise a Company update including progression of lead compound, AD-114, towards the clinic for idiopathic pulmonary fibrosis (refer to recently released Idiopathic Pulmonary Fibrosis document for a disease overview). The Stocks to Watch Roadshow provides the opportunity for investors and industry leaders to hear live presentations from some of Australia’s most exciting small-cap companies. The roadshow is held in Melbourne on Wednesday May 3 and in Sydney on Thursday May 4. A copy of the presentation will be released to the ASX and is also available on the Company’s website. Notes to Editors About AdAlta AdAlta Limited is an Australian based drug development company headquartered in Melbourne. The Company is focused on using its proprietary technology platform to generate i-bodies, a new class of protein therapeutics, with applications as therapeutic drugs to treat disease. I-bodies are a promising, novel class of drugs that offer a new and more effective approach to treating a wide range of human diseases. They are identified and developed using our proprietary technology platform. We have pioneered a technology that mimics the shape and stability of a crucial antigen-binding domain, that was discovered initially in sharks and then developed as a human protein. The result is a range of unique compounds, now known as ibodies, for use in treating serious diseases. AdAlta is developing its lead i-body candidate, AD-114, for the treatment of idiopathic pulmonary fibrosis (IPF) and other human fibrotic diseases, for which current therapies are sub-optimal and there is a high-unmet medical need. The Company also plans to continue further drug discovery and development directed towards other drug targets and diseases with its i-body technology platform. Further information can be found at: www.adalta.com.au. For more information, please contact: AdAlta Limited Sam Cobb, CEO Tel: +61 (0)3 9479 5159 E: s.cobb@adalta.com.au Media (Australia) Andrew Geddes Tel: +61 (0)408 677 734 E: adalta@instinctif.com Media (International) Sue Charles / Daniel Gooch Tel: +44 (0)20 7866 7905 E: adalta@instinctif.com i-bodies – a new class of protein therapeutics to treat human disease May 2017 Sam Cobb, CEO and Managing Director AdAlta Limited (ASX:1AD) s.cobb@adalta.com.au Disclaimer Investment in AdAlta is subject to investment risk, including possible loss of income and capital invested. AdAlta does not guarantee any particular rate of return or performance, nor do they guarantee the repayment of capital. This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into account the investment objectives, financial situation and particular needs of the investor. Before making any investment in AdAlta, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment advisor if necessary. This presentation may contain forward-looking statements regarding the potential of the Company’s projects and interests and the development and therapeutic potential of the company’s research and development. Any statement describing a goal, expectation, intention or belief of the company is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those inherent in the process of discovering, developing and commercialising drugs that are safe and effective for use as human therapeutics and the financing of such activities. There is no guarantee that the Company’s research and development projects and interests (where applicable) will receive regulatory approvals or prove to be commercially successful in the future. Actual results of further research could differ from those projected or detailed in this presentation. As a result, you are cautioned not to rely on forward-looking statements. Consideration should be given to these and other risks concerning research and development programs referred to in this presentation. 2 Corporate and investment summary A drug discovery and development company using its powerful technology platform to generate a promising new class of protein therapeutics, known as i-bodies, for treating a wide range of human diseases. Investment highlights Initial focus on treating fibrosis – high unmet medical need Advanced lead fibrosis drug candidate AD-114 with significant pre-clinical validation Fully funded for phase 1 development of lead fibrosis drug and i-body pipeline Orphan drug designation USA FDA Early commercialisation potential Experienced team with strong track record of drug development and ability to deliver 3 Capital structure ASX code Shares on issue* Share price (1 May) Market capitalisation Current cash Trading Range 1AD 101,110,890 AU$0.27 AU$27.3m AU$7.47m AU$0.31 to $0.165 * 24.1m shares escrowed for 24 months from listing Major Shareholders % Yuuwa Capital LP Platinum Asset Management Citycastle Pty Ltd La Trobe University Robin Beaumont Other shareholders 53.5 7.91 5.25 3.01 1.87 28.46 Total 100% i-body technology Long loop that enables access to novel drug targets AdAlta is developing a new technology platform that produces unique proteins known as i-bodies, that mimics the shape and stability of a crucial antigen-binding domain, that was discovered initially in sharks and then developed as a human protein. An i-body is a unique human protein that combines the advantages of small molecules (for stability) and antibodies (with a high affinity and specificity for treating certain illnesses) in one powerful treatment. Advantages of i-bodies i-body human protein scaffold High target specificity and high affinity for their target Small proteins; 10% the size of a typical human antibody Highly stable to proteases, high temperatures and low pH Long loop that can bind to a diverse range of therapeutically relevant targets including those that are difficult for current antibody therapies Human protein – reduced risk of immune response 4 Human Antibody Shark Antibody Fibrosis: unmet medical need with multiple indications Developing i-bodies as improved therapies for the treatment of fibrosis – a condition that is prevalent in 45-50% of all diseases Fibrosis can occur in many tissues of the body as a result of inflammation or damage Lung Eye Liver IPF Wet-AMD & PVR NASH & CIRRHOSIS Kidney Skin Heart RENAL FIBROSIS SCLERODERMA CARDIAC FIBROSIS – it can result in scarring of vital organs causing irreparable damage and eventual organ failure AdAlta’s initial focus is on lung fibrosis Collectively fibrosis represents a large unmet clinical need 5 AD-114 lead program in Idiopathic Pulmonary Fibrosis (IPF) AD-114 is lead i-body candidate in pre-clinical development – Demonstrates both antifibrotic and anti-inflammatory activity in the lung – Important for arresting and modifying the disease and tackling the treatment of idiopathic pulmonary fibrosis (IPF); this is the first indication 6 AD-114 prevents lung fibrosis in disease models Extensive pre-clinical AD-114 studies have demonstrated positive in vitro (in the lab) and in vivo (in animals) data Normal lung tissue IPF lung tissue (lung disease mouse model) IPF lung tissue + AD-114 dosed for 21 days (lung disease mouse model) AD-114 reduces collagen content and inflammatory cell infiltration and demonstrates a similar architecture to that of the normal lung in the Bleomycin mouse model 7 AD-114 key advantages compared to existing IPF treatments No effect on normal tissue Effect on diseased / IPF tissue i-body AD-114 ✔ ✔ Nintedanib (Boehringer) ✗ ✔ Pirfenidone (Roche) ✔ ✗ Other CXCR4 drug (Sanofi) ✔ ✗ Human tissue In vitro activity AD-114 has greater in vitro efficacy compared to the only approved therapies Nintedanib and Pirfenidone for IPF treatment – Existing IPF treatments have limited efficacy; either no effect or slow down disease progression i.e. no cure Novel mechanism of action compared to other drugs targeting the GPCR chemokine receptor CXCR4 Very specific for diseased tissue and no effects on normal tissue AD-114 has both anti-fibrotic and anti-inflammatory effects Novel mechanism of action for fibrosis treatment enabling a “first in class” therapy 8 Orphan drug status US FDA, allows for R&D tax credits, new drug application fee waivers and a seven year period of market exclusivity Global market interest in fibrosis treatments Recent transactions confirm that big pharma are actively acquiring fibrosis assets at an early stage – typically based on Phase I results Date Company Target Acquired by Deal value (US$) Deal commentary Sep-15 Adheron Therapeutics SDP051 Roche $105M upfront, plus $475M in milestones SDP-51 at end of Phase I for IPF Aug-15 Promedior PRM-151 BMS $150m upfront + $1.25B Phase II IPF and myelofibrosis Nov-14 Galecto Biotech AB TD139 BMS $444M Option to acquire at end of clinical POC (no later than 60 days following Ph 1b for IPF completion) Aug-14 Intermune Esbriet / Pirfenidone Roche $8.3B Approval in Europe / Japan, phase III in the US Jun-13 MicroDose Therapeutx MMI0100 Teva Pharmaceuticals $40M upfront $125M milestones MMI0100 was in pre-clinical development Mar-12 Stromedix STX100 Biogen Idec $75M upfront $487.5M milestones End of phase I for IPF Jul-11 Amira / BMS BMS-986020 BMS $325M upfront $150M milestones End of phase I for IPF Source: Medtrack Pharma Intelligence, Informa (all IPF deals since 2011) 9 AD-114 broad application for treatment of fibrosis Wet-AMD AMD is the leading cause of blindness in people over the age of 50 years in the developed world, >1m in AU and 2m in USA Despite anti-VEGF therapy (US$8 billion sales 2016), 30% of people don’t respond and 50% of people loose vision after 3 years of treatment Eye Wet-AMD & PVR AD-114 is able to significantly reduce fibrosis, leakage, lesion size and fibrosis gene expression in a mouse model of wet-AMD NASH About 3-5% of adults in the USA have NASH Sales of drugs for the treatment of fibrosis caused by NASH are estimated to be USA $1.6 billion by 2020 Liver NASH & CIRRHOSIS 10 AD-114 significantly reduces hepatocellular ballooning and possess hepatoprotective and anti-NASH effects in a mouse model of NASH AD-114 development: key milestones CY2017 Q1 Q2 CY2018 Q3 Q4 Manufacturing Toxicology studies Q1 Q2 Partnering of lead candidate based on other benchmark deals Orphan designation Phase I Publication of data Other fibrosis indications BD and partnerships 11 Recent achievements and near term milestones Q3 & Q4 2016 H1 2017 ü Commence manufacturing of material for toxicology testing with FujiFilm Diosynth Biotechnologies ü Additional AD-114 IPF fibrosis data ü Completion of evaluation of AD-114 with IPF clinicians Alfred Hospital ü Completion of AD-114 NASH animal study ü Orphan Drug Designation (US FDA) ü Hypertrophic scarring animal results for AD-114 Manufactured material for toxicology testing available H2 2017 Eye fibrosis additional data, funded by NHMRC development grant Completion of other pre-clinical study animal models of AD-114 AD-114 toxicology results 12 AdAlta business model – strategy to create value Pharma & biotech partnerships i-body technology platform and library Revenues: Upfronts, FTEs, milestones & royalties In-house pipeline of drug candidates Invest up to key value inflection point 13 i-bodies new drug class Licence to pharma Revenues: major upfronts + milestones & royalties Potential in multiple disease indications Market benchmarks Fibrosis lead AD-114 Sep-15 acquired by Roche $105m + $475m milestones phase I asset Aug-15 acquired by BMS $150m + $1.25b milestones phase IIa asset Nov-14 acquired by BMS $444m phase I asset April-16 with Abbvie $40m upfront + $645m milestones & royalties Dec -15 with Roche $6.4m upfront + $410m milestones & royalties Nov-15 with Novo-Nordisk €9m upfront + €182m milestones & royalties) Acquired by Celgene July-15 $8b Ph III, Ph II and GPCR platform April-16 with Boehringer €8m payment for Ph1 GPCR nanobody (€125m milestones & royalties) Next gen antibodies From: Heptares Therapeutics Ltd news@heptares.com Subject: Sosei Acquires Heptares Therapeutics for up to USD 400 million Date: 23 February 2015 8:00 pm To: s.cobb@adalta.com.au Is this email not displaying correctly? View it in your browser. GPCRs Sosei Acquires Heptares Therapeutics for up to USD 400 million Acquired Feb-15 by Sosei $400m Phase Ib asset + 7 preclinical leads Combination Creates a Leading Global Biopharmaceutical Company with a Major Drug Discovery and Development Hub in the UK Tokyo, Japan and London, UK – 23 February 2015: Sosei Group Corporation (the “Group” or “Sosei” - 4565, Tokyo Stock Exchange MOTHERS index), a leading Japanese biopharmaceutical company with operations in Japan and the UK, announces that it has acquired Heptares Therapeutics Limited (“Heptares”), a clinical-stage private UK-based biotechnology company focused on creating novel medicines targeting G protein-coupled receptors (“GPCRs”). The combination will create a leading global biopharmaceutical group with: 14 sustainable, proven and highly successful drug discovery and clinical development capabilities for generating innovative medicines; a broad and balanced pipeline with strong growth prospects, including products with blockbuster potential; access to global pharmaceutical markets; regulatory expertise across the EU, US and Japan; and a significant cash balance. These strengths will enable the Group to sustain its pipeline and revenue stream on a long-term basis. Heptares will become a wholly owned subsidiary of the Group, with its existing R&D operations continuing in the UK. Management and Board in place to deliver strategy Sam Cobb: Founding CEO and Director Dr John Chiplin: Independent Director Extensive experience in raising equity, contract and grant funding CEO of investment Company NewStar Ventures 15 years of commercialisation and management experience Dr Paul MacLeman: Chairman Managing Director of a ASX listed IDT Australia Ltd Founded biologics companies, experienced ASX listed executive Liddy McCall & Dr James Williams: Yuuwa Capital Directors Founders and investment Directors of Yuuwa Capital Founders of iCeutica Inc (acquired 2011) and Dimerix Limited Dr Robert Peach Directors of several Australian biotech and Agritech companies Founder and CSO of Receptos Inc, acquired by Celgene Corporation in 2015 for US$7.8bn Multiple FDA, CE Mark and TGA approvals Deep experience in research and drug development 15 Managing Director of acquired antibody company Arana Therapeutics Scientific Advisory Board Internationally recognised with proven track record of drug development Dr Mick Foley, AdAlta CSO Expert in phage display John Westwick: pulmonary drug discovery and development NIH, NHMRC, ARC, Gates funding and over 70 scientific publications Over 14 years experience at Novartis, head of respiratory drug discovery Five product launches and 13 positive proof of concepts in respiratory, including a number of antibodies which are now in phase III. Brian Richardson: drug discovery and development expert David McGibney: pre-clinical and clinical advisor Ex-Sandoz and Novartis (40+ years), including Head of Pre-clinical Research 20 years with Pfizer, including Head of European R&D Over 60 original peer reviewed research papers Ex Pfizer Ltd board member Developed Viagra, and 10+ blockbuster drugs Steve Felstead: clinical advisor Ex-Pfizer (25 years), including Head of Clinical Research, Pharmatherapeutics Division Developed Zithromax, Vfend, Celsentri, Viagra 16 AdAlta investment summary Powerful proprietary technology platform to develop a pipeline of i-bodies for the treatment of a wide range of human diseases Initial focus on treating Idiopathic Pulmonary Fibrosis and other fibrotic diseases - high unmet clinical need Advanced lead candidate with significant pre-clinical validation of AD-114 demonstrating anti-fibrotic and anti-inflammatory effects Early commercialisation opportunity Experienced management and Board to drive AD-114 development and secure technology platform partnerships and product licensing deals IPO August 2016 raised $10M to meet major milestones: Phase I clinical trials of AD-114 in lung fibrosis and development of i-body pipeline 17