Jacqueline Shan, Ph.D., D.Sc.

Co-Founder and Chief Scientific Officer

Afexa History

• Spin off from University of Alberta in 1992 – “CV Technologies Inc.”

• Created by entrepreneurial scientists with passion and knowledge in pharmacology and herbal medicine

• 1993-2003 focus on discovery research and product development – biotech model

• 2003 to present successful commercialization from research to #1 national brand with its lead product

• 120 full time employees include 40 scientists• Publicly traded on TSX:FXA• Offices in Edmonton, Toronto, and Montreal

Research Pipeline

Discovery Pre-Clinical

Clinical Approval End-Product Launch

1 – 2 years 3 – 5 years 6 months – 2 years

Cholesterol Management

Pediatrics cold and flu

Seasonal Allergy

Cancer Support

Oxidative Stress & Brain Health

Glucose Management

Blood Pressure Management

TLR Therapeutics

•Anti-Viral

•Cancer Management

•Vaccine Adjuvant

Afexa’s Commercialized Products

Canada’s #1 Selling Brand for All Cold and Flu Remedies & Natural Supplements

• The Nielsen Company MarketTrack National all channel service for Cold and Flu Remedies (including Antihistamines), and Natural Supplements for 52 week period ending September 25, 2010

COLD-FX® ─ An Official Sponsor of the 2010 Winter Olympics

Con

sum

er P

urch

ases

$ in

Mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 $0

$10

$20

$30

$40

$50

$60

$70

$80

Growing a Market Leader

COLD-FX 5 year CAGR: 48%

Total COLD-FX

Total Tylenol Cold/Flu

Total Advil Cold/Flu

COLD-FX 4 year CAGR: 13%

Source: Nielsen MarketTrack, National All Channels, Calendar Years CAGR: Compound Annual Growth Rate

8

Blue Ocean Strategy

Creating a New Paradigm: Evidence-Based

Polymolecular Botanical Therapeutics

• Long history of human use and knowledge (>1000 yrs)Disease Prevention and Treatment

• Source for pharmaceuticals (natural and derived chemicals > 100 yrs)- chemical diversity ( >250,000 plants, >100,0000 chemicals..) - resource beyond capacity of synthetic chemistry

• Natural compounds co-evolved with humans - better ligands for human clinical targets- better structure-function fit, vs randomly synthesized NCEs- plant chemists may provide important combination therapies

• Synergistic and Complementary pharmacology - better clinical efficacy, safety and drug resistance- simultaneous multi-therapeutic targets better aim for

complex diseases (Cancer, metabolite, infections etc.)- provide clinical efficacy beyond reach of single compound-

based drugs

Polymolecular Plant Extractsas Therapeutics

10

Blue Ocean Strategy

Innovative Technology:

ChemBioPrint

Enabling for Discovery and Standardization

ChemBioPrintProprietary Technology

Biological Fingerprinting

• Polymolecular active constituents are tested for multiple biological or pharmacological responses indicating health and/or therapeutic benefit

Chemical Fingerprinting

• Multiple chemical analysis combining different chromatographic detectors provides precise chemical identity of multiple active constituents of a product

Consists of two-dimensional fingerprinting

COLD-FX – Clinical Trial Results

89%

reduction in relative

risk of cold & flu

Results of a randomized controltrial in healthy adults(n=43)1

Results of randomized control trial in institutionalized seniors(n=198)2

1 McElhaney, JACM 2006; 2 McElhaney, JAGS 2004

55% reduction in symptom duration in community-

dwelling seniors

2 4 6 8 10 12 14Days

12.6Days

Placebo

5.6Days

COLD-FX®

12.6Days

Placebo

5.6Days

COLD-FX®

Blue Ocean Medical Claims approvedHealth Canada-Approved Medical Claims for COLD-FX®

The Natural Health Products Directorate issued a product license and natural product number (NPN) for COLD-FX

Non-Traditional Comprehensive Treatment Claim

“helps reduce the frequency, severity and duration of cold and flu symptoms by

boosting the immune system.”

“There are a handful of companies who understandthat all successful business operations come down to three basic principlesPeople --- Product --- Profit

Without top people, you cannot do much with the other two.” Malcolm Forbes

People

ProfitProsperity

Product

Key Factors of Success

Support of Key Factors Needed for Success

• Invest in training high quality people in life science management

• Support industry-academic collaboration• Encourage innovation and entrepreneurship• Support industry-driving innovation (Discovery bench and

clinical research)• Have a cohesive innovation and regulatory system• Have an adaptable, up to date, predictable and sustainable

regulatory system

15

Thank you!

16