Corporate Presentation March 1, 2014

Corporate PresentationMarch 1, 2014

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Private and Confidential – DO NOT DISTRIBUTE

Pediapharm is the FIRST and ONLY specialty pharmaceutical company in Canada fully dedicated to serve the pharmaceutical needs of the pediatric community.

Children’s health is our reason for beingOUR MISSION: To become Canada’s leading pediatric specialty pharma company by seeking and delivering the highest quality, new and existing therapeutic medicines to improve the health and assure the wellbeing of Canadian children.

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Pediapharm: the ONLY specialty pharmaceutical company dedicated to pediatrics in Canada

Significant and underserved pediatric Rx and OTC market in Canada estimated to be $1 billion(1)

ONLY 30% of all pharmaceutical products has pediatric indication with proper formulation

Annual sales growth driven by launch of new pediatric-focused formulations over next 3-5 years

Pediatric market not identified as strategic priority by most big pharma companies in Canada

(1); Estimated by the Corporation to be $1 billion. Using the ratio of approximately 10% of US sales(2); U.S. market data are not necessarily reflective of Canadian pediatric market

Source: IMS

U.S. Pediatric Market(2)

$10.6 billion 2010 Prescription Pharmaceutical Sales

The Pediatric Market Segment Opportunity

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Key Milestones

2007 – Sanofi-Aventis commercial agreement.Licensing agreement: APR Applied Pharma on 2 products

2009 – PuraCap distribution agreement for EpiCeram

2009 – EpiCeram approval2008 – Pohl Boskamp

distributionagreement for NYDA 2009 – EpiCeram launched

2010 – NYDA filed as a drug

2007

2008

2009

2010

2011

Building Canada’s Leading Pediatric Pharmaceutical

Company

2011 – Orion agreement -Easyhaler

2012 – Launch of NYDA, VapoLyptus, Allerject 2011

2012

2011 – NYDA approval (Health Canada)

2012 – Easyhaler filing (Health Canada)

2013

2013 – $6.9 M raised in equity and listing on TSX-V (Dec 2013)

2013 – Valeant agreement

2014

2014 – $2.0M raised in equity

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Capital Structure (PDP.V)

Common share listing TSX-V: PDP.VCash (Dec 31, 2013) $6.1MShares outstanding 72.0MWarrants & options 7.9MFully diluted 79.9MMarket Cap $35.9M

As of March 1, 2014 except Cash position

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Financial Results (as of December 31, 2013)

December 31, 2013

December 31, 2012

December 31, 2013

December 31, 2012

(3 months) (3 months) (12 months) (12 months)

Revenue 1,237,538 570,945 4,003,807 2,490,503

Selling and administrative expenses 1,289,916 1,129,759 4,443,971 4,570,472

Operating loss (52,378) (558,814) (440,164) (2,079,969)

Other expenses 1,650,746 101,144 2,073,027 166,099

Net loss (1,703,124) (659,958) (2,513,191) (2,246,068)

Cash flow from (used in) operating activities (1,020,399) (233,623) (1,583,500) (1,932,622)

Cash flow from (used in) investing activities 249,443 605 (61,789) (78,372)

Cash flow from (used in) financing activities 6,375,730 286,284 7,157,548 1,804,644

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Operational Infrastructure

VP Marketing and SalesRichard Labelle

Regulatory AffairsOptumInsight (Canreg)

Quebec Sales Manager

Nathalie Lafleur

Ontario Sales Manager

Agostino Pelaggi

CFORoland Boivin

Director, Medical AffairsDr. Elvira Villazón

VP BD&LDr. Benoît Hébert

Chemistry Manuf. & Control IPAlliance Management

Director, Market Access

Jean-René Poirier-Consultant

President & CEOSylvain Chrétien

Board of DirectorsPierre Lapalme

Director, Business Unit

OTC Ashok Bhaseen

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Pediapharm Board of Directors-Current

Pierre Lapalme-Chairman Chairman of BioMarin Pharmaceutical Inc since 2004 BMRN:NASDAQ): a leading US biotechnology company with a Market Cap of greater than US$7 billion. Mr. Lapalme has held a number of senior management positions in the pharmaceutical industry including CEO and Chairman of the Board of Rhone-Poulenc Pharmaceuticals, Inc. Canada, and Senior Vice-President and General Manager of North America Ethicals, a Division of Rhone-Poulenc, Inc. (now known as Sanofi-Aventis)

Sylvain Chretien Founder, President and CEO

• See Bio’s under management team

Angelo Botter Mr Botter has over 37 years experience in the Pharmaceutical and Healthcare industry with several large multi-national healthcare corporations including Bristol Labs Baxter Lederle Nordic (Marion Labs) and Abbott Laboritories. Mr.

Botter was a Senior Executive and Director at Abott Laboratories for over 21 years with extensive experience in Sales Marketing Business Development and General Management including Senior Executive Director of Pharmaceutical Products for Abott Canada and General Manager in both South Africa and the Netherlands for Abbott.

Pediapharm Board of Directors

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Normand Chartrand Representing 2 Regional Economic Intervention Funds (FIER); Longueuil and Granby, Mr. Chartrand has over 25 years of experience in management and finance with private and public companies. He has led numerous North-American and International financings. Mr. Chartrand is also a partner of Vector 7, a consulting and management firm to both private and public companies.

Pierre Désormeau Mr. Désormeau, an angel investor, is currently the President and Chief Executive Officer of Gaïa Consulting Inc. and is also the President and Chief Executive Officer of Capital Pro-Égaux Inc., (CPE.H: TSX Venture).

Doug Stuve• Douglas M. Stuve is a partner with the law firm Burstall Winger LLP of Calgary since 1993. Mr. Stuve has served as a member of an advisory committee to The Alberta Stock Exchange and was part of the advisory committee in Calgary, Alberta to the Canadian Venture Exchange Inc., now TSX Venture Exchange Inc., to assist in formulating policy prior to and after its formation in November 1999. Mr. Stuve has served as a Director and officer of several public companies and is currently the Chairman of the Board of Athabasca Minerals Inc. and a Director of Border Petroleum Corp. and Kairos Capital Corporation, three public companies l TSX Venture.

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Experienced Management Team

Sylvain Chrétien – President and CEOMr. Chrétien is the founder of Pediapharm as well as the president and CEO since January 2008. He has over 24 years of experience in both the pharmaceutical and the biotechnology sectors, where he occupied various executive positions in sales, marketing and business development. He worked with Nordic Laboratories, Pfizer Canada and Biorthex Inc. Before founding Pediapharm, Mr. Chrétien had his own consulting company called Gestion BioPrisma. Mr. Chrétien was a Director of Biophage Pharma and Warnex. He was President of the Pharmaceutical Marketing Club of Quebec (PMCQ) in 1998 and executive member of BioQuébec in 2000. Mr. Chrétien holds an MBA in Management of Bio Industries from the Université du Québec à Montréal and a B.Sc. in Sciences of Physical Activities from the University of Laval.

Roland Boivin – CFOFrom 1990 to 2008, Mr. Boivin held several management positions at 3M Canada, including Business Manager ‑ Consumer Division. In that role, he had overall financial responsibility for the Canadian consumer market. His most recent role at 3M was General Manager ‑ Quebec and he became a member of the Company's Executive Committee. Mr. Boivin has since developed expertise in Finance, Accounting, Corporate Governance and Continuous Disclosure with small and medium size publicly listed companies. Until recently, Mr. Boivin was the Chief Financial Officer of Golden Hope Mines Limited, a public company listed on TSX Venture. Mr. Boivin obtained his Bachelor of Commerce from McGill University and his MBA from Queen's University.

Benoît Hébert – Vice President, Business Development & LicensingBenoît Hébert has been the Vice‑President, Business Development and Licensing of Pediapharm since September 2009. Mr. Hébert has more than 15 years of industry experience and has a rare‑blend of scientific expertise and business skills. Focusing on pharmaceutical business transactions since 2000, he worked at Axcan Pharma Inc. from July 2003 to November 2006. Mr. Hébert has lead international licensing transactions, participated actively in product acquisitions, managed international product development alliances and global supplier relationship. Mr. Hébert holds an MBA in Management of Bio‑industries from the Université du Québec à Montréal. Mr. Hébert also received a M.Sc. in Immunology and a Ph.D. in Virology from the Institut Armand‑Frappier. Before returning to Canada in 2000, he was a NSERC postdoctoral fellow in structural biology at Purdue University. He is past‑president and a director of the Canadian Healthcare Licensing Association (CHLA).

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Experienced Management Team

Richard Labelle – Vice President, Sales & MarketingRichard Labelle has been the Vice‑President, Sales and Marketing of Pediapharm since February 2014. Mr. Labelle brings over 25 years of experience in Pharmaceutical and Consumer Health industries. As a Specialty Pharmaceutical Executive he led various teams in Sales, Marketing and in Business Development. Prior to joining Pediapharm he was Vice-President/General Manager of Sanofi Consumer Health and led during his mandate the creation of the Consumer affiliate in Canada. Over the years he also successfully launched Actonel, a flagship product for Osteoporosis, and re-accelerated growth of one of the largest Cardiovascular franchises. Mr. Labelle obtained his Bachelor of Commerce from the Université du Québec à Montréal and his MBA from McGill-HEC Montreal.

Elvira Villazon M.D. – Medical DirectorDr. Elvira Villazon has been Medical Director of Pediapharm since September 2009. Prior to joining the corporation full time, she was working as a consultant on a needed basis. Dr. Villazon brings 4 years of experience as a Director R &D at e-nate Canada; an integrated internet solutions in health care (private clinics management); and 11 years as a Health Services consultant for diplomatic members of ICAO based in Montreal. She is also a Certified Researcher Fetal Cardiology at St-Justine hospital, a leading hospital for children in Canada; where she worked as a clinical research associate for 6 years. Dr. Elvira Villazon is paediatrician graduated from Faculty of Medicine, Nueva Granada University, Bogota, Colombia.

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Sales and Marketing Platform

VP Sales and MarketingRichard Labelle

Manager, Quebec Sales

Nathalie Lafleur

Manager, Ontario + West SalesGus Pelaggi

Manager, Business Intelligence

Guylaine Poirier-Consultant

Manager, Training Claude Desfossés-

Consultant

Québec Sales RepsMontréal: 3

Montréal South Shore: 1 Québec: 1

Ontario / West Sales Reps

Toronto –E, W &C: 4London-Windsor: 1

Ottawa, Hull & Gatineau: 1Northern Ontario:1

Vancouver & Victoria: 1Calgary & Edmonton: 1

Director, Market AccessJean-René Poirier-

Consultant

16 Experienced

Sales Professionals

Director, Business Unit OTC

Ashok Bhaseen

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Sales and Marketing Platform (cont.)

90% Coverage of Target Canadian Market

1,800 Pediatricians

2,500 General Practitioners with Pediatric Practice

360 Pediatric Dermatologists and Dermatologists (300) Allergists (60)

2,500 Pharmacies

3,500 Third party pharmacies

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Current Value Creation Strategy

Pediatric Product Opportunities

Secure High-Value Products

Launch and Drive Sales $$$

• Global pediatric Rx/OTC universe

• Pipeline of new pediatric products

• No dedicated pediatric companies in Canada

• Unique access to products

• Extensive network and relationships

• Robust screening and due diligence

• Licensing, distribution, commercial, co-promote agreements

• Product acquisition

• Leverage 16-person sales team

• 90% coverage of target audience

• Regulatory support

• Distribution and logistics

Significant and underserved

market

Products approved in major markets

National sales / marketing platform

2018

• 35-40 M revenues

• 35-40% EBITDA margin

• 10 products on the market + Canadian commercial agreements

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Value Proposition

Seasoned and experienced Board and Management team

Integrated and proven sales/marketing platform

Extensive sales coverage Unique know-how in pediatrics Long-term and focused commitment to the

pediatric market

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Marketed Products: Commercial Agreements

Description Rx oral antibiotic (Cefixime) Rx Epinephrine autoinjectorIndication Respiratory; Middle ear infections AnaphylaxisPartner sanofi Canada sanofi CanadaLaunch November 2007 December 2012

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Marketed Products-Pediapharm branded products

Description Rx topical skin barrier emulsion OTC pump spray (Dimeticone 100 cSt)

Indication Dermatitis(Eczema) Head lice(Pediculosis)

Partner PuraCap Pharmaceutical Pohl-BoskampLaunch December 2009 December 2011

(+ Patented Lice Comb)

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Marketed Products-Pediapharm branded products

Description OTC biogel cooling patch OTC decongestant patch

Indication Fever, Headaches Cold, Allergies

Partner APR Applied Pharma SA APR Applied Pharma SA

Launch 4Q 2013 3Q 2013

(1): Based on the Corporation’s internal assessment of available information

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• Certain statements contained in this presentation constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") pursuant to the applicable Securities Laws. All statements, other than statements of historical fact, contained in this presentation are forward-looking statements, including, without limitation, statements regarding the future financial position, business strategy, proposed acquisitions, budgets, projected costs and plans and objectives of or involving Pediapharm. The use of any of the words "anticipate", "intend", "continue", "estimate", "expect", "may", "will", "plan", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Pediapharm believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forwarding-looking statements speak only as of the date of this presentation.

• Forward-looking statements are subject to risks, uncertainties and assumptions. Some of the risks which could affect future results and could cause results to differ materially from those expected in the forward-looking statements contained herein include, but are not limited to: the ability to access sufficient capital, the impact of general economic conditions, regulatory requirements, competition from other industry participants, and share price fluctuations. The information contained in this presentation identifies additional factors that could affect the operating results and performance of Pediapharm. We urge you to carefully consider those factors.

Forward Looking Statements

Documents

Corporate Presentation March 1, 2014