Ezose Final Presentation

1Privileged and Confidential

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Ezose Sciences Inc.

Final PresentationDecember 14th, 2011

2Privileged and Confidential

Company Overview

Relatively new company

Centrally located in heart of pharmaceutical country

Focus on glycomics and biomarker discovery

Multiple collaborations completed / in progress

Ezose laboratory - Pine Brook, New Jersey

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Industry Snapshot

Ezose: Biotech industry Discovery, Research &

Development market Customers: pharma and

biotech companies

Major trends and drivers: Expense control Generic drugs Companion diagnostics Partnerships Biomarkers

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Pharmaceutical Industry Job Cuts

Patent Expiration

Drug Condition Company2010 US Sales

($M)2012 Plavix Anti-platelet BMS / Sanofi $6,1542011 Lipitor Chloresterol Pfizer $5,3292012 Seroquel Antipsychotic AstraZeneca $3,7472012 Actos Type 2 Diabetes Takeda $3,3512012 Enbrel Arthritis Amgen $3,3042012 Singulair Asthma Merck $3,2242011 Zyprexa Antipsychotic Eli Lily $2,4962011 Levaquin Antibiotics J&J $1,3122011 Concerta ADHD/ADD J&J $9292011 Protonix Antacid Pfizer $690

Top 5 Drugs From 2011 and 2012 Coming off of Patent Protection

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Industry Snapshot (cont.)

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2009 2014 5 YearIndustry Mkt Value Mkt Value CAGRPharmaceutical $664.6B $860.4B 5.3%Biotech $231.2B $366.7B 9.7%Contract Research $18.1B $28.9B 10.0%Biomarkers $8.4B $21.1B 20.2%

Growth Rates:R&D Market -1.2% 7.7% 4.3% 3.5% 3.5% 3.5%In-house R&D -2.6% 7.8% 3.2% 2.4% 2.2% 1.9%Outsourced R&D 7.7% 7.2% 10.3% 9.8% 10.6% 11.2%

14.7% 14.6% 15.4% 16.4% 17.5% 18.8%

0

20

40

60

80

100

120

140

160

180

2009 2010 2011 2012 2013 2014

$B Research & Development Market

Outsourced R&D In House R&D

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Biomarkers

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Biomarkers

Rx-Dx combinations &

theranostics

Predict drug response

Monitor drug response &

safety

Predict/prevent disease

Predict drug safety

Personalized medicine

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Glycomics

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02468

1012141618

2010 2015

$B Global Biomarker Forecast

Genomics Imaging Proteomics Bioinformatics Other

What is it? Study of sugars of a cell type or

organism Involves complex, highly

branched structures

Benefits Underdeveloped and

underexplored field Play critical role in bacterial and

viral recognition Determine cancer development Involved in cellular signaling

pathways and modulate cell function

Glycans

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GlycanMap Technolgoy

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Competitors

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Ezos

e Omic

R&D

Com

pany

:

Prot

eom

e Sc

ienc

es

(pro

teom

ics), T

rans

geno

mic

(gen

omics

)Gl

ycom

ic R&

D Co

mpa

ny:

Vird

ante

, Mom

enta

, Gl

ycot

ech

In-H

ouse

Big P

harm

a R&

D:

Roch

e Dia

gnos

tics,

Mer

ckUn

iversi

ty R&

D: D

uke U

.,

John

s Hop

kins U

.,

Was

hing

ton U

.Go

vern

men

t R&D

(Air

Force

,

FDA,

NIH

):Re

sear

ch H

ospit

als

(Uni

versi

ty H

ospit

als o

f

Cleve

land,

Nati

onal

Unive

rsity

Hos

pital)

:

Speed/Throughput

Reputation(aka Industry Standard)Cost

Revenue

Resources

Tech

Location

STRONG WEAK

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Ezose - Strengths and Weaknesses

Strengths Technology: GlycanMap allows for

high-throughput glycan analysis

Small size: flexible; customizable services

Location: centrally located in New Jersey, the top pharmaceutical state in the U.S.

Staffing: talented and experienced staff

Weaknesses Size: limited number of projects

they can take on due to having only one location, low headcount, and a small amount of machines

Reputation: Company is only a couple of years old, is still trying to build up its reputation

Inefficiencies: New company, still needs to work out their inefficiencies

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Opportunities

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Plans to Outsource Biomarker Discovery:

Within the Year Within a Few Years Not at AllSource: Primary Research

0

5

10

15

20

25

30

35

2009 2010 2011 2012 2013 2014

$B Biomarker Market

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Business Strategy

Strategic Statement

Ezose strives to increase contracts by 50% in 2012, while becoming a self-sufficient company that is recognized as the premiere name in glycomics by

2014. This will be accomplished by leveraging Ezose’s revolutionary proprietary glycan technology to discover and develop new biomarkers quicker and at a lower cost than their competitors, while retaining intellectual property

rights for themselves and their parent company Shionogi.

Objective: To increase market awareness of its unique

services while focusing on internal growth and increasing the number of research

contracts

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12Privileged and Confidential

Critical Success Factors

Promote Ezose throughout the biotech and pharmaceutical industry

Obtain key partnerships with mid/large sized pharmaceutical or biotech companies

Expand into a second lab as more partnerships are obtained

If Yes, do you have a firm understanding of what they do?

Have you heard of Ezose?

Do you have a firm understanding of Glycomics?

Do you have a firm understanding of Biomarker Discovery?

Industry Recognition

Yes No

Industry recognition estimated based off of primary research as well as collection of secondary research

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Recommendations

Marketing Plan1. Build upon current actions

• Trade Shows, Public Relations Firm, Publications

2. Hire a customer relations management (CRM) team

3. Target specific companies

4. Aggressive pricing

13Quality of results

Lack of in-house knowledge

Regulatory certification

Time savings

Vendor expertise

Lack of In-house capacity

Cost-effectiveReasons for Outsourcing R&D

From Science Advisory Board

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Recommendations(cont.) – Target Companies

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0%

2%

4%

6%

8%

10%

12%

14%%

of D

eals

Biomarker Deal Activity by Therapeutic Focus

OtherRenal

OncologyNeuroscience

Infectious DiseaseGastrointestinal

Endocrine / Metabolic SystemsDermatology

CardiovascularAutoimmune / Inflammation

Industry Perception of High-throughput Glycan Analysis

More Beneficial Less Beneficial

Target companies with focus on Oncology, Autoimmune / Inflammation & Neuroscience

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Recommendations (cont.)

Operations1. Talent retention and acquisition

2. Expansion

3. Legal counsel

4. Strategic Alliance???

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Summary

The Pharma/Biotech Industry is trending in the right direction: Outsourcing of R&D, Biomarkers, Companion Diagnostics,

Partnerships

GlycanMap technology is revolutionary

Must act with a sense of urgency

The plan: Increased market awareness Increased revenue through new contracts Increased growth

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