Emerald Health Pharmaceuticals · Chronic inflammatory, degenerative, demyelinating CNS disorder •Our molecule targets receptors associated with MS •Current medications are most

Developing medicines based on cannabinoid scienceEmerald Health Pharmaceuticals

e m e r a l d b i o . l i f e P.2

Cautionary Note Regarding Forward-Looking Statements

TO THE EXTENT STATEMENTS CONTAINED IN THE FOLLOWING PRESENTATION ARE NOT DESCRIPTIONS OFHISTORICAL FACTS REGARDING THE COMPANY, THEY SHOULD BE CONSIDERED “FORWARD-LOOKINGSTATEMENTS,” AS DESCRIBED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, THAT REFLECTMANAGEMENT’S CURRENT BELIEFS AND EXPECTATIONS. YOU CAN IDENTIFY FORWARD-LOOKINGSTATEMENTS BY WORDS SUCH AS “ANTICIPATE,” “BELIEVE,” “COULD,” “ESTIMATE,” “EXPECT,” “FORECAST,”“GOAL,” “HOPE,” “HYPOTHESIS,” “INTEND,” “MAY,” “PLAN,” “POTENTIAL,” “PREDICT,” “PROJECT,” “SHOULD,”“STRATEGY,” “WILL,” “WOULD,” OR THE NEGATIVE OF THOSE TERMS, AND SIMILAR EXPRESSIONS THAT CONVEYUNCERTAINTY OF FUTURE EVENTS OR OUTCOMES. FORWARD-LOOKING STATEMENTS CONTAINED IN THESEPRESENTATIONS INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS REGARDING: (I) THE SUCCESS AND TIMING OFOUR PRODUCT DEVELOPMENT ACTIVITIES AND CLINICAL TRIALS; (II) OUR ABILITY TO DEVELOP OUR PRODUCTCANDIDATES; (III) OUR PLANS TO RESEARCH, DISCOVER, EVALUATE AND DEVELOP ADDITIONAL POTENTIALPRODUCT, TECHNOLOGY AND BUSINESS CANDIDATES AND OPPORTUNITIES; (IV) OUR ABILITY TO DEVELOP ANDMANUFACTURE OUR PRODUCT CANDIDATES AND TO IMPROVE THE MANUFACTURING PROCESS; (V) OUR ABILITYTO ATTRACT AND RETAIN KEY SCIENTIFIC OR MANAGEMENT PERSONNEL; (VI) THE ANTICIPATED TIMING OFCLINICAL DATA AVAILABILITY; (VII) OUR ABILITY TO MEET OUR MILESTONES; (VIII) OUR EXPECTATIONS REGARDINGOUR ABILITY TO OBTAIN AND MAINTAIN INTELLECTUAL PROPERTY PROTECTION; AND (IX) THE IMPACT OF CAPITALMARKET CONDITIONS ON US. FORWARD-LOOKING STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWNFACTORS, RISKS AND UNCERTAINTIES THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSEEXPRESSED OR IMPLIED BY SUCH FORWARD LOOKING STATEMENTS. UNDUE RELIANCE SHOULD NOT BE PLACEDON FORWARD-LOOKING STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE ANY FORWARD-LOOKING STATEMENTS. THE COMPANY’S INVESTIGATIONAL DRUG PRODUCTS HAVE NOT BEEN APPROVED ORCLEARED BYTHE FDA.

Emerald Health Pharmaceuticals

A clinical-stage pharmaceutical company developing first-in-class drug candidates

to treat critical diseases with unmet medical need

Our technology has a unique multi-pronged mechanism of action not seen with other molecules, addressing validated targets for

neurodegenerative, autoimmune, fibrotic & inflammatory diseases

Preclinical studies demonstrate disease modification with the potential to reverse the progression of diseases which currently have

no cure and cause significant mortality

WWW . E M E R A L D P H A RM A . L I F EWWW . E M E R A L D P H A RM A . L I F E

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Emerald Health Pharmaceuticals: Key Highlights

Strong IP & Significant Market

Unique Mechanism of

Action

StrongTeam

Broad patent protection with a US$39B market

opportunity in the first 4 targeted

diseases

New Chemical Entities (NCEs)

with the potential for disease

modification in diseases with no

current cure

Experienced biotech/pharma executives and

globally-recognized clinical

and scientific advisors

Clinical StageDevelopment

Lead product candidate to enter

Phase 2 human trials in Q4 2019

for multiple sclerosis &

scleroderma

WWW . E M E R A L D P H A RM A . L I F E

4

NOTE: In the scientific literature:EHP-101 = VCE-004.8EHP-102 = VCE-003.2


5

Development Roadmap

Emerald Health Pharmaceuticals

Status: Private Headquarters: San Diego, CA, USAR&D: Córdoba, Spain

Focused on developing patented synthetic cannabinoid-derived drug candidates to treat diseases with unmet medical need


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• CBD & CBG have multiple positive physiologic effects through interaction with the endocannabinoid system (ECS)

• Research indicates they are: - Anti-inflammatory- Antioxidative- Neuroprotective- Analgesic- Anti-infective- Non-psychoactive


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The Technology: Patented NCEs Derived from CBD & CBG

CB1 Psychotropic Health benefits?

Receptors

CB2 TRPV1

GPR55 FAAH

PPARs MALG

TRPA1

Non-psychotropicHealth benefits

Distribution of CB1 Receptors


8

The ECS Exists Throughout the Body

• AUGMENT CBD & CBG receptor targeting

• FOCUS on receptors that can treat diseases with unmet medical need

• DEVELOP composition of matter patented cannabinoid new chemical entities (NCEs)

• CREATE a strong IP portfolio

To Improve on the positive health effects of CBD and CBG by modifying them to create enhanced molecules


9

Our Scientific Approach

14 patented CBD derivatives

11 patented CBG derivatives

Molecules in our NCE Library

• Composition of matter patents

• Protection to 2037

• Potential for multiple products and indications

14 granted, 18 pending, covering 25 molecules


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Patents

CBD HU-331 VCE-004.8

CB2

PPARγ

VCE-004.8a CBD derivative

CB2 TRPV1

GPR55 FAAH

PPARs MALGTRPA1

DRUG DISCOVERY SCREENING

PLATFORM FOR ECS TARGETS

EHP’s Cannnabinoid

Library

PPARγ

VCE-003.2A CBG derivative


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Rational Drug Design: New Chemical Entity (NCE)

The U.S. Drug Enforcement Administration (DEA)

Unlike CBD (a controlled substance):

• VCE-004.8 (the active ingredient in EHP-101) is not a controlled substance

• Indicative of complete difference between our molecule and CBD


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NCE: A Non-Controlled Substance Cannabinoid

Parkinson’s disease Huntington’s disease

Neurodegenerative

Fibrotic

Ulcerative Colitis / Crohn’s

Inflammatory

Metabolic

Auto-Immune

CancerDiabetes


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Provides Many Therapeutics Opportunities



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Development Roadmap

Cannabidiol (CBD) derivative

CBD:

• Does not bind to CB1 (non-psychotropic)

• Safe, anti-inflammatory, neuroprotective, analgesic, anti-proliferative

• Helps improve MS symptoms

CBD

EHP-101

GOAL: maintain these attributes and improve on the ability to treat diseases instead of just address symptoms


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Lead Product Candidate: EHP-101

Chronic inflammatory, degenerative, demyelinating CNS disorder

• Our molecule targets receptors associated with MS

• Current medications are most effective only during the inflammatory phase; less potent as the disease transitions to a neurodegenerative process

• No effective disease-modifying drugs for progressive forms

• No therapies appear to re-myelinate damaged neurons

Main symptoms ofMultiple Sclerosis


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EHP-101: Why Multiple Sclerosis?

Multiple SclerosisNormal


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EHP-101 Can Potentially Re-Myelinate Nerves Damaged by MS

Our strategy:

To improve on CBD’s known positive effects by affecting validated targets in MS:

- PPARγ- CB2- HIF

HIF 1HIF 2

EHP 101

PPARγ

CB2

PPARγ: Peroxisome proliferator-activated receptor gammaCB2: Cannabinoid receptor Type 2HIF: Hypoxia inducible factor

CBD

validated targets in MS:Increases

Neuroprotection

Improves neuron survival

and repair

Potential for Remyelination


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EHP-101: Designed for Mechanism of Action

Reducesneuroinflammation

Dose response with efficacy at 5 mg/kg

Control (untreated):

Treated:

Demonstrated efficacy in MS models

• Significant improvement in clinical signs

• Stops neuroinflammation and demyelination

• Remyelinates neurons


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EHP-101: Efficacy Demonstrated in Multiple Sclerosis


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EHP-101: Efficacy Demonstrated in MS - REMYELINATION

Density of Myelinated Axons in the Corpus Callosum

• Sign i f i cant inc rease in dens i t y o f mye l ina ted axons vs . cont ro l w i th o ra l EHP-101 (10 and 20 mg/kg/day )

• Sign i f i cant d i f fe rence between 10 and 20 mg/kg/day re la t i ve to 5 mg/kg/day EHP-101

• EHP-101 promotes remyel inat ion of axons in bra in whi te matter


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EHP-101: Other Demyelinating Disease Opportunities

Inflammatory/ Immune

Disorders

• MS• Optic Neuritis • ADEM • Paraneoplastic• Rheumatoid arthritis • Systemic lupus

erythematosus• Behcet’s disease• Sjorgen disease

Infectious diseases

• HIV• PML• Lyme disease• Neurosyphilis• HTLV-1

Granulomatous diseases

• Sarcoidosis• Wegner granulomatous• Lymphoid granulomatous

Demyelinating Disorders (CNS)

Neonatal intracranial haemorragy

Demyelination associated to ischemic or

Traumatic Brain injury

Toxic/ metabolic disorders

• B12 deficiency• Central pontine myelinolysis

• Carbon monoxide• Radiation

• PRES

Myelin disorders

• Meatachromaticleukodystrophy

• Adrenoleukodystrophy/adrenomyeloneuropathy

• Globoid cell (Kranne’s) leuodystrophy

• Alexanders disease• Canavan disease

Chronic, systemic autoimmune disease causing fibrosis of skin and internal organs

• Rare, life-threatening disease

• No SSc-specific approved drugs

• Current therapies not effective and have significant toxicities

• Lung fibrosis is a common cause of death (~60% mortality in 10 years)


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EHP-101: Second Indication - Scleroderma

• Scleroderma is a deadly disease with no current treatment

• PPARγ and CB2: extensively studied molecular targets for the treatment of scleroderma*

• Combined effect on PPARγ, CB2 and HIF not described for other types of marketed drugs

• Pre-clinical proof-of-concept established in relevant animal models*Minghua et al, Tavarares et al, Akhmetshina et al, Del Rio et al

EHP 101PPARγagonist

CB2agonist

Inhibition of collagen synthesis

Inhibition of ERK activation

Fibroblast migrationdecrease

myofibroblastdifferentiation

Anti-inflammatoryactivity in vivo

Antifibrotic activity in vivo

Vascular protection

HIF

EHP-101 targets MoA in scleroderma


23

EHP-101: Why Scleroderma?

Demonstrated efficacy in SSc models

• Exerts potent antifibrotic effects and prevents dermal thickening in the scleroderma BLM model

• Prevents collagen accumulation around blood vessels

• Reduces macrophage infiltration into the skin

NATURE


24

EHP-101: Efficacy Demonstrated in Scleroderma

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Developed oral formulation, initiated GLP toxicity studies and manufacturing for Phase I

Applied and got US FDA grant of Orphan Drug Designation for systemic scleroderma and Huntington’s diseaseApplied and got EMAgrant of Orphan Drug Designation for systemic scleroderma

H1

H2

Completed final clinical-enabling studies

Completed a Pre-IND meeting with US FDA (for MS)

Initiated Phase I human study in Australia

Completed a Pre-IND meeting with US FDA (for SSc)

Completed Phase I studySSc IND to be submitted MS Phase IIa to be initiated in Australia

MS IND to be submitted

SSc Phase IIa to be initiated in Australia, New Zealand, USA, Canada

Initial Phase IIa data

2017 2018 2019 2020

Submitted HD ODD application to EMA

Received DEA determination that our NCE is not a Controlled Substance

Initiated 6- and 9-month rat and dog tox studies Completion of 6- and

9-month rat and dog tox studies for initiation of longer Phase IIb studies

Designed Phase I protocol based on FDA feedback to be applicable for Phase II in both MS and SSc

Formed MS and SSc KOL Clinical Advisory Boards

Completed non-clinical proof-of-concept for MS and SSc

EHP-101: Efficacy Demonstrated in Scleroderma



26

Development Roadmap

Cannabigerol (CBG) derivative

CBG:

• Does not bind to CB1 (non-psychotropic)

• Provides neuroprotection in models of Huntington’s disease, partially through antioxidant and anti-inflammatory activity, and PPARγ modulation

• Suppresses norepinephrine, providing muscle relaxation and analgesic properties through effects on the CNS

CBG

EHP-102


27

EHP-102: Second Product Candidate

Chronic, progressive neurodegenerative disorder with no current cure

• More than 10 million people worldwide have Parkinson's disease

• A disease where damaged neurons do not produce sufficient dopamine (dopamine helps transmit impulses from the brain to the muscles)

• EHP-102 provides neuroprotection, partially through PPARγ activity and reduction in proinflammatory mediators


28

EHP-102: Why Parkinson’s Disease?

Oral VCE-003.2 (20 mg/kg) in sesame oil

Pole test

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Demonstrated efficacy in PD models

• Improves clinical symptoms and recovers movement parameters (motor coordination and activity) in the 6-OHDA model

• Reduces inflammatory marker expression and prevents dopaminergic neuronal loss in the 6-OHDA model

• Efficacy also shown in the LPS model of Parkinson’s disease


29

EHP-102: Efficacy Demonstrated in PD

Causes progressive breakdown of nerve cells

• An orphan disease

• EHP-102 targets PPARγ with improved activity

• Also targets other pathways involved in neuronal survival (ERK 1+2)


30

EHP-102: Why Huntington’s Disease?

Clinical symptoms ameliorated in models of HD:

• Improved motor function & clinical scores with EHP-102

• EHP-102 positively affects neuroprotection and neurogenesis

• EHP-102 also showed efficacy in QA and 3NP models of HD

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1Scientific RepoRtsȁͼǣͿͽ;ͿȁǣͷͶǤͷͶ;ȀͿͽ;Ϳ

ǤǤȀ

ǦͶͶǤǡǡǯ ÀǦͷǡǡǡ*ǡ ÀǦͷǡǡǡ*ǡͺǡ*ǡÀͻǡͻǡ±ͻǡ ±ͷǡǡǡ ǦͷǡǡͼǡÀͺǡͽǡͽǡǤͻǡǦͷǡǡƬÓͻ

ơγǤǦͶͶǡȋȌǡǦƪγǤǦǦͶͶǦͶͶǤγǤơǡγǡơǤǡǦͶͶǤȋȌǦǦǤƤǦͶͶǤin vivoǦȋȌǤǦͶͶǤ+ǯǦƤǡǤǦͶͶǤƪǤǦͶͶǤǯȋȌƪǤ

Cannabinoids the main active compounds of marijuana (Cannabis sativa), and its endogenous counterparts anandamide and 2-arachidonoyl glycerol have attracted the interest of the scientific community in the last decade owing to their prominent effects on neurodegenerative and neuroinflammatory conditions1 . Cannabinoids exert neuroprotective actions in various experimental models of neurodegenerative diseases, and most of their effects are mediated via the presynaptic CB1 receptor. CB1 receptor levels notably diminish at early stages of Huntington’s

ͷ××ȋȌǡǡǡǤͿͷͶͶǡǡǤÀÀǡǡǡǤCentro de ×±ȋȌǡǡǤͺVivaCell Óǡ×ǡǤͻ××±×ǡÀǡÀǡÀÀǡ×ǡǤͼ×ÀǡÀÀǡǡǡǤͽǡǡǡǤ*ǤǤǤǦǤȋǣǤǤȌǤǤȋǣǤǤȌ

rǣͿ Ͷͷͼ

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OPEN

NATURE


31

EHP-102: Efficacy Demonstrated in Huntington’s Disease

Experienced Pharma & Biotech Management


32

Jim DeMesa, MD, MBAChief Executive Officer

30 years in pharma product development and management, including preclinical and clinical trial management, and partnering with pharma companies. 15 years as CEO of public biotech companies.

Nancy CoulsonSVP, Regulatory Affairs

30+ years in global pharma and biotech regulatory mgmt with J&J, BMS, and others.

Eduardo Muñoz, MD, PhDChief Scientific Officer, SAB Chairman

30+ years in biomedical research,Professor of Immunology, author of 200 articles, patents and book chapters with nearly 5,000 citations

Giovanni Appendino, PhDScientific Advisor, SAB

One of the worlds thought leadersin cannabinoid research; Professor ofPharmaceutical Chemistry at the University of Eastern Piedmont; Author of 250 articles and 10 book chapters.

Alain Rolland, PharmD, PhDChief Development Officer

30+ years of leadership experience in R&D, strategic and business development

Avtar Dhillon, MDChairman

Chairman of 5 public life sciencecompanies, led turnaround ofNASDAQ:INO from $10m to $550m

Clinical Advisory Boards:MS: Emmanuelle Waubant, MD, PhD

Juan Antonio Garcia-Merino, MD, PhDSSc: John Varga, MD

Janet Pope, MD Patricia Carreira, MD

Joachim Schupp, MD, Dr. medChief Medical Officer

30+ years in clinical drug development, medical monitoring and clinical trial mgmtwith Ciba-Geigy, Novartis, & others

Lisa Sanford, CPAChief Financial Officer

30+ years of diversified finance and accounting experience in life sciences, pharmaceuticals and biotechnology.

Rao Movva, PhDScientific Advisor, SAB

30 years in drug discovery and development; Novartis Distinguished Scientist; pioneered chemical biology efforts that led to the discovery and the understanding of TOR pathways

Foundation:Therapeutic effect

of CBD and CBG on ECS


33

Emerald Health Pharmaceuticals Summary

Multiple additional molecules for new future indications

2 lead molecules, EHP-101 and

EHP-102, being developed for

4 initial indications

Library of patented NCEs derived from CBD and CBG with improved biologic activities targeting specific diseases


34

Combined MoAfor EHP molecules not described with

other drugs

EHP-101 human clinical development advancing to

Phase II

Orphan status granted for

scleroderma and Huntington’s disease

Management team experienced

in developing drugs and building

companies

Emerald Health Pharmaceuticals Summary

TO LEARN MORE PLEASE CONTACT :

Jim DeMesa, MDCHIEF EXECUTIVE OFFICER

EMERALD HEALTH PHARMACEUTICALS

Bernie HertelVP FINANCE & COMMUNICATIONS

EMERALD HEALTH SCIENCES

T. 1 604 727 0106

E. [email protected]

T. 1 858 352 0622

E. [email protected]


35

Thank you

Documents

Emerald Health Pharmaceuticals · Chronic inflammatory, degenerative, demyelinating CNS disorder •Our molecule targets receptors associated with MS •Current medications are most