Business and scientific updates presentation given by Dr. Wayne Danter at the Critical Outcome Technologies Inc. 2013 Annual and Special Meeting of Shareholders on December 5, 2013.

1. Annual &
Special
Meeting of
Shareholders
December 5, 2013

2. Dr. Wayne R.
Danter
President & CEO

3. Disclaimer
When used anywhere in this presentation, whether oral or written, the words expects,
believes, anticipates, estimates and similar expressions are intended to identify forwardlooking statements. Forward-looking statements may include statements addressing
future financial and operating results of Critical Outcome Technologies Inc. (COTI).
COTI bases these forward-looking statements on its current expectations about future
events. Such statements are subject to risks and uncertainties including, but not limited
to, the successful implementation of COTI’s strategic plans, the acceptance of new
products, the obsolescence of existing products, the resolution of potential patent issues,
competition, changes in economic conditions, and other risks described in COTI’s public
documents such as press releases and filings with the Toronto Stock Exchange and the
Ontario Securities Commission.
All forward-looking statements are qualified in their entirety by the cautionary statements
included in this document and such filings. These risks and uncertainties could cause
actual results to differ materially from results expressed or implied by forward-looking
statements contained in this presentation. These forward-looking statements speak only
as of the date of this presentation.
3

4. Conventional drug development
process is long, expensive &
characterized by a high risk
of failure
11 – 15
years
$1 billion
or more
1 FDA
approval
4

5. CHEMSAS®
efficiently
accelerates the
drug discovery
process
Reduces discovery,
optimization & lead
selection by 1.5 to 3 yrs.
Saving significant $$$
Increasing revenue
period under patent
protection
5

6. Computerized
Hybrid
Expert
Molecular
Structure
Activity
Screening
6

7. Computational
simulation of
traditional
‘wet lab’ drug
discovery
process
Failures occur in computer
simulations, not at the
‘research bench’
Higher probability of
clinical & commercial
success
Proprietary technology
7

8. Two-pronged
commercial
validation and
revenue
strategy
1
CHEMSAS® R&D
collaborations
2
Licensing our own
drug compounds
8

9.  Partner has specific novel drug
target
Typical
CHEMSAS® R&D
collaboration
 Receive upfront development
fee from Partner and build a
compound library
 Library testing and evaluation at
Partner’s expense
 COTI typically retains IP
ownership of compounds and
all data until licensed
 Partner proceeds with
development under a license
with upfront, milestone, and
royalty payments
9

10. Target:
SOX9 inhibitor
Deal terms:
CHEMSAS® R&D
Collaboration:
Western
University &
Dr. Arthur Brown
$25k upfront cash + 50/50 share of IP
& all future revenues; COTI pays costs
of discovery & Western pays for
testing
Progress:
COTI discovered 7 novel compounds;
Western testing ongoing; several
compounds with positive initial test
results
Expected revenue timing:
2015
10

11. CHEMSAS® R&D
Collaboration:
Delmar
Chemicals Inc.
(Open Innovation
Drug Discovery
Program)
Target:
Angiogenesis inhibitor
Deal terms:
50/50 share of revenues; expect a
traditional license; COTI pays costs of
discovery & patents, DCI pays for
synthesis
Progress:
COTI discovered 3 novel compounds;
Structures passed initial pharma
screens; Delmar now synthesizing
Expected revenue timing:
Late 2014
11

12. Target:
Confidential
Deal terms:
CHEMSAS® R&D
Collaboration:
Multinational
Pharmaceutical
Company
Option to license – upfront payment,
milestones and royalty; COTI
discovers, optimizes and synthesizes;
Pharma tests
Progress:
COTI identified > 40 compounds;
Initial testing nearing completion;
Pharma testing to identify candidates
for further optimization
Expected revenue timing:
2015
12

13. Pursuing a license for our
lead oncology compound,
COTI-2
Licensing
our own
compounds
Traditional license structure
– upfront payment,
milestones, royalty
Other CHEMSAS® drug
discovery projects in queue
(i.e. AML)
13

14.  Effective against cancers with
mutations of the p53 gene
COTI-2:
scientific and
business
significance
 > 50% of all human cancers
have a p53 mutation
(eg. ~ 95% of ovarian cancers)
 Mechanism of action
confirmed by thought leader
Dr. Gordon Mills at MD
Anderson Cancer Center
(June 2013)
 Novel, first in class
14

15.  5 U.S. patents granted –
strengthens value
proposition
COTI-2:
intellectual
property
overview
 Ongoing filings, with patents
pending in U.S., Europe,
Canada and Japan
 Own all intellectual property
with no license obligations
15

16.  In final 2-species toxicity
studies – completion
expected in first half of 2014
COTI-2:
next major
activities &
milestones
 FDA filing expected mid-2014
(leading to Phase 1 clinical trial)
 Pursuing orphan drug &/or
breakthrough therapy status
 Seeking optimal partner for
clinical development
16

17. Continued strong interest in
COTI-2
COTI-2:
licensing
update
Due to the novelty of the
MOA, potential partners want:
 Better understanding of
MOA
 Human data
17

18. COTI-2:
worldwide
license
represents
significant
revenue
potential
 Top 5 2012 Phase 1/2
oncology licensing deals
disclosed (1):
 Upfront payments of approx.
$25-$92 million
 Milestone payments between
$550-$1,100 million
 Royalties on net sales
 1st half of 2013 (2) – 16 phase
1 licensing deals with 6 in
cancer – ave upfront $30m
(1)
(2)
Medius Associates
Thomson Reuters
18

19. CHEMFirm
Looking
ahead:
other revenue
generating
CHEMSAS®
applications
Small molecule profiling and
investment due diligence tool
Drug library profiling
Based on customer identified
criteria
Drug repurposing
Finding new purposes for drugs
coming off patent
19

20.  Programmable computer
simulation of human cancer
cell signaling
Project
ROSALIND
 Better personalized
treatment decisions based
on genetic profile of one’s
cancer
 Personalized cancer gene
profiling projected to be
~$35B market by 2018*
*
Markets and Markets (2013)
20

21. Annual &
Special
Meeting of
Shareholders
December 5, 2013
Twitter:
Follow @CriticalOutcome
Facebook:
Like CriticalOutcome
SlideShare:
Slideshare.net/CriticalOutcome
21