OTCQ
X BIOAF !
TSX.V BTI July 2014
OTCQX BIOAF TSX.V BTI
Forward Looking Statem
ents Certain statem
ents in this press release contain forward-looking statem
ents within the m
eaning of the Private Securities Litigation Reform
Act of 1995 or forward-looking inform
ation under applicable Canadian securities legislation that may not
be based on historical fact, including without lim
itation statements containing the w
ords “believe”, “may”, “plan”, “w
ill”, “estim
ate”, “continue”, “anticipate”, “intend”, “expect” and similar expressions. Such forw
ard-looking statements or
information involve know
n and unknown risks, uncertainties and other factors that m
ay cause our actual results, events or developm
ents, or industry results, to be materially different from
any future results, events or developments express or
implied by such forw
ard-looking statements or inform
ation.
Such factors include, among others, our stage of developm
ent, lack of any product revenues, additional capital requirem
ents, risk associated with the com
pletion of clinical trials and obtaining regulatory approval to market our
products, the ability to protect our intellectual property, dependence on collaborative partners and the prospects for negotiating additional corporate collaborations or licensing arrangem
ents and their timing. Specifically, certain risks and
uncertainties that could cause such actual events or results expressed or implied by such forw
ard-looking statements and
information to differ m
aterially from any future events or results expressed or im
plied by such statements and inform
ation include, but are not lim
ited to, the risks and uncertainties that: products that we develop m
ay not succeed in preclinical or clinical trials, or future products in our targeted corporate objectives; our future operating results are uncertain and likely to fluctuate; w
e may not be able to raise additional capital; w
e may not be successful in establishing additional corporate
collaborations or licensing arrangements; w
e may not be able to establish m
arketing and the costs of launching our products m
ay be greater than anticipated; we have no experience in com
mercial m
anufacturing; we m
ay face unknown
risks related to intellectual property matters; w
e face increased competition from
pharmaceutical and biotechnology
companies; and other factors as described in detail in our filings w
ith the Canadian securities regulatory authorities at w
ww.sedar.com
.
Given these risks and uncertainties, you are cautioned not to place undue reliance on such forw
ard-looking statements
and information, w
hich are qualified in their entirety by this cautionary statement. All forw
ard-looking statements and
information m
ade herein are based on our current expectations and we undertake no obligation to revise or update such
forward- looking statem
ents and information to reflect subsequent events or circum
stances, except as required by law.
2"
OTCQX BIOAF TSX.V BTI
Market Profile
OTCQ
X: BIOAF; TSX.V: BTI
3"
Data source: S&P Capital IQ Trailing tw
elve months as of Feb 28, 2014
Shares – June 23, 2014
52 Week Low
-High !$0.67 - $1.35 !(Jun. 23, 2014)
Shares Issued & Outstanding!
41,963,130"!
Fully Diluted !48,485,405!
Options !
"!6,272,275!($0.52 - $1.42) Directors, officers & em
ployees
Warrants !
250,000"!($0.575) Exp. 5/08/2016
Market Cap "!
~$52.9m !
@ $1.26 Share Price (Jun. 23, 2014)
Cash Position
$1,860,135 !(Feb. 28, 2014)
Ow
nership!Insiders & Affiliates ~35%
!Institutional ~10%
!
OTCQX BIOAF TSX.V BTI
Who w
e are…
Board of Directors Rob Hutchison, Chair & CEO!Form
er: CEO & Chief Scientist at eCharge Corporation
(World’s First Internet Paym
ent System)
Chris Fibiger, PhD !Form
er: Head of Neuroscience, Amgen; VP Neuroscience, Eli Lily &
CSO, Biovail Laboratories !G
reg Gubitz, LLB!
Former: VP, Biovail Corporation (m
erged Valeant Pharmaceuticals)
COO, M
DS Capital (Life Science VC firm $1bn under m
anagement)
Terry Pearson, PhD!Professor: Biochem
istry & Microbiology, UVIC
Bench-mates: Nobel Laureate, Dr. G
eorge Kohler (monoclonal antibody)
Discovered & comm
ercialized highly- successful SISCAPA Assay Technology !!Ron Erickson !O
ver 30 years experience: attorney & senior level executive Current: Chair & CEO, Visulant Technologies (nano-photonics com
pany) M
ichael Hutchison, QC, LLB!
Partner, Smith Hutchison Law Corporation
Team!
!Judi Dalling, LLB, CFO !
Over 35 years accountancy experience
Seasoned public company CFO
and corporate lawyer !W
ilfred Jefferies, PhD, Founding Scientist !O
xford University, Molecular Im
munology
Discovered p97’s ability to cross the BBB & Ox26 (foundational
antibody for BBB research) Professor: M
icrobiology & Imm
unology, UBC !Reinhard G
abathuler, PhD, Chief Scientist!University of Lausanne, Switzerland, Plant Biochem
istry O
ver 25 years experience, academic research & early-stage biotech
companies
Former: VP Brain Research, Biom
arin & CSO, Angiochem Inc.
!Mei M
ei Tian, PhD, Scientist !UBC, M
icrobiology and Imm
unology Expertise in BBB transport, cell biology, m
olecular biology !Laura Ho, M
Sc, Scientist !UBC, M
icrobiology and Imm
unology !Tiffany Tolm
ie, Corporate Comm
unications !Honours, W
ilfrid Laurier University
OTCQX BIOAF TSX.V BTI
What w
e do…
Brain Delivery Platform Patented “Transcend Fam
ily” of technologies allow
s drug therapies to penetrate the Blood-Brain Barrier (“BBB”) to treat diseases of the Central Nervous System
(“CNS”) Potential treatm
ents for:
Market Lead
ing Techno
logy
Transcend & Transcendpep !
5"
Oncology
Metabolic
Diseases Neurodegenerative
Diseases
OTCQX BIOAF TSX.V BTI
The Blood-Brain Barrier Challenge
Blood Brain Barrier Protective barrier of the CNS preventing toxic com
pounds from entering the brain from
the circulatory system
Problem BBB prevents therapeutics from
entering the brain •
~98% of sm
all molecule drugs
• ~100%
of large molecule drugs 1
Solution Discovering a ‘carrier’ to deliver therapeutic treatm
ents across the BBB
i. O
pportunity to extend patent life of existing drug therapies ii.
Contribute to the growth in CNS drug m
arket and revitalize dorm
ant candidates iii.
Assist development of new
therapies for currently untreatable diseases
6"
1) Royal Society of Chemistry
Tightly"woven"capillary"netw
ork"of"endothelial"cells"lining"the"blood"vessels"in"the"brain,"w
hich"is"responsible"for"maintaining"hom
eostasis"
OTCQX BIOAF TSX.V BTI
Breakthrough Solution
First Generation: Transcend • Know
n as Melanotransferrin (M
Tf or p97) • Native hum
an protein found at low
concentrations in the blood • Technology patented at University of British
Columbia; later purchased by biO
asis
7"
The Transcend Family
…is a naturally occurring physiological transport m
echanism
… acts as a ‘Trojan-Horse’ to transport therapeutics across the BBB and into the brain tissue
Second Generation: Transcendpep
• A newly discovered peptide found w
ithin Transcend, w
hich offers improved brain
penetration over Transcend
OTCQX BIOAF TSX.V BTI
Advantage of Transcendpep
� G
reater efficiency of BBB delivery
� Low
er cost of production � Im
proved quality control � Sim
pler to link to therapeutics � Transports a variety of com
pounds w
ith no apparent size limitation
� Extends biO
asis patent portfolio � Pharm
aceutical collaborators currently licensing Transcend
pep
8"
BBB"
Transcendpep
Therapeutic
Transcendpep in Action
OTCQX BIOAF TSX.V BTI
Market O
pportunities M
ajor Unmet M
edical Needs Drug m
arket limited by the BBB
9"
A carrier to
cro
ss the B
BB
would
estab
lish a fo
otho
ld
within these
majo
r m
arkets
Central Nervous System
~$81.2bn
Neuro-degenerative
Diseases
~$20bn
!
Stroke & Traum
atic Brain Injury
~$7.5bn
Pain & M
igraine ~$33.7bn
2014 Estimates in $U
SD
Clinical need m
et but im
proved BBB penetration could increase effi
cacy
Psychiatry
~$32.3bn
Infection (B
acte
rial, V
iral, F
ungal)
~$138bn
Lysosomal
Storage Disease !
>$1.9bn
OTCQX BIOAF TSX.V BTI
Brain Cancer Market
Sales for Current Cancer Therapeutics Treatm
ents for cancers, which frequently m
etastasize in the brain, Do Not cross the BBB in efficacious levels
10"
1) GlobalData “Brain Tum
or – Pipeline Assessment and M
arket Forecasts to 2017” released Jan. 17, 2011. 2) Com
pany Reported Data 3) BT2111 Program
Results slides 19 & 20
$0.9B
$2.1B
2009 2010
2011 2012 2013F 2014F 2015F 2016F 2017F
($ Billions)
Global Brain Tum
or Therapies Market 1
Herceptin®
(trastuzumab)
HER2+ Breast Cancer
Rituxan®
(Rituximab)
lymphom
as, leukem
ias
Taxol®
(Paclitaxel) lung, ovarian,
etc.
Erbitux®
(Cetuximab)
Metastatic
colon cancer, etc.
$9
2 m
illion in
sales 20
13
2
$7
.5 b
illion in
sales 20
13
2
$1
.9 b
illion in
sales 20
13
2
$6.6
billio
n in sales 2013
2
Results Trancend + Trastuzum
ab (Herceptin®
) conjugate not only crossed the BBB but increased cancer killing activities throughout the body
3
Opportunity Potential to increase effectiveness of cancer therapeutics and treat tum
ours that metastasize
in the brain
$1.4 billion Market in 2013
OTCQX BIOAF TSX.V BTI
Multiple Developm
ent Opportunities
Conjugated with Transcend:
• Antibodies • Enzym
es • Biologics agents • Sm
all molecules drugs
Targeting:
11"
Patent Cliff Estim
ated ~$250 billion in lost revenue from
patent expiration betw
een 2012-20151
Transcend family linked w
ith existing drugs offers the potential for patent term
extensions through New
Chemical Entity (“NCE”)
"
Specific brain cells (e.g., neurons, astrocytes and glia)
Intracellular compartm
ents (e.g., lysosom
es, endosomes,
mitochondria)
Delivery into the brain of existing therapeutic drugs currently not approved for CNS indications
Delivery into the brain of prom
ising new agents in developm
ent
"""
1)"DeRuiter,"J.,"&"Holston,"P."L."(2012,"June"20)."Drug"Patent"ExpiraOons"and"the"“Patent"Cliff”."U
.S."Pharm."2012;37(6)(Generic"suppl):12Y20.""
OTCQX BIOAF TSX.V BTI
Transcend: Rapid Uptake in Brain
12"
Compound
Brain Kin
(mL -1/s- 1/g
-1) Reference
Glucose
9.5 x 10-3
Smith (2003)
Transcend 6.4 x 10
-4 Demeule et al. (2002)
Morphine
2.0 x 10-4
Cisternino et al. (2001) Aprotinin !
1.6 x 10-4
Demeule et al. (2008)
Insulin Rec Antibody !1.0 x 10
-4 Pardridge (1997)
Leu-Enkephalin 6.0 x 10
-5 Zlokovic (1987)
Morphine-6-G
lucuronide 2.4 x 10
-5 Tem
samani et al. (2005)
RAP !1.0 x 10
-5 Pan (2004)
Beta Amyloid
6.5 x 10-6
Banks (1991) DADLE
6.5 x 10-6
Chen (2002) TNF-α
4.3 x 10-6
Pan (2002)
Transport Effi
ciency
More
Less
In situ brain uptake – measurem
ent of rate of transport
Competitors""
OTCQX BIOAF TSX.V BTI
Independent 3rd party validation
Expand and protect
Inte
llectu
al
Pro
perty
portfolio
Advance internal
development
programs
Collaborate w
ith reputable pharm
aceutical com
panies
Corporate Strategy
13"
• Low
-cost projects •
Potential to achieve m
ajor milestones:
Short-Mid-Large
Market Potential
• M
any “sho
ts on
go
al” leading to
comm
ercial transactions w
ith num
erous strong partners or licensees
• O
ver 30 patents granted relating to Transcend & Trancend
pep for BBB delivery and neurodegenerative diseases
• National Research Council
• BC Cancer Research Centre
• Texas Tech University Health Sciences Center
OTCQX BIOAF TSX.V BTI
Development Program
s
Completed 4 strategic collaborations on
First Generation Transcend: • Shire HG
T • AbbVie • M
edImm
une • UCB Pharm
aceuticals
Second Generation Transcendpep:
• MedIm
mune executed License Agreem
ent • O
n-going discussion with AbbVie & UCB
Pharmaceuticals for licensing
• Further discussions with large
pharmaceutical com
panies on licensing and research opportunities
14"
OTCQX BIOAF TSX.V BTI
Development Program
s: Transcend + Anti-Am
yloid Beta (“Aβ”) Antibody
Results !Transcend + anti-Aβ antibody conjugate increases transport into brain tissue by ~
5-fold
0.000#
0.001#
0.002#
0.003#
0.004#
0.005#
0.006#
0.007#
Transcend3an43AB#mAb#
an43Ab#mab#
Volume'Frac,on'''
Parenchyma#
Quantitative Im
age Analysis by Laser Scanning C
onfocal Microscopy
15"
Alzheimer’s Disease
Anti-Aβ antibodies have undergone clinical trials for treatm
ent of Alzheimer’s
disease Opportunity Using antibodies directed at Aβ are potential therapeutics for reducing am
yloid plaques in the brain
National Research Council of Canada (NRC)
Anti-Aβ Transcend + Anti-Aβ
OTCQX BIOAF TSX.V BTI
Development Program
:Transcend + α
-L-iduronidase (“IDU”)
Lysosomal Storage Diseases
Rare inherited metabolic diseases caused by an
enzyme deficiency prim
arily affecting children
Hurler Syndrome (M
PS I) Problem • M
PS I is caused by an IDU deficiency • Currently CNS effects untreatable Results • Transcend + IDU (lysosom
al enzyme)
conjugate increased IDU brain enzyme
activity ~ 4
-fold Opportunity • Offers prom
ise of an enzyme replacem
ent therapy
16"
0"
0.2"
0.4"
0.6"
0.8"
1"
1.2"
IDU Transcend-IDU
Total"IDU"acOvity"
Capillaries Parenchym
a
OTCQX BIOAF TSX.V BTI
Development Program
:Transcend + iduronate-2-sulfatase (“IDS”)
Lysosomal Storage Diseases
Rare inherited metabolic diseases caused by an
enzyme deficiency prim
arily affecting children
Hunters Syndrome (M
PS II) Problem • M
PS II is caused by an IDS deficiency • Currently CNS effects untreatable Results • Transcend + IDS (lysosom
al enzyme)
conjugate increased IDS brain enzyme
activity ~ 2
0-fold
Opportunity • Offers prom
ise of an enzyme replacem
ent therapy
17"
Native Enzym
e
Transcend + IDS Enzym
e
OTCQX BIOAF TSX.V BTI
Development Program
: Transcend + Doxorubicin
• Doxorubicin is currently used as a cancer treatm
ent (e.g. non-Hodgkin's
lymphom
a, multiple m
yeloma, acute leukem
ias, etc.)
Problem
• Currently does not penetrate the BBB
Results • Significant INCREASE in brain uptake w
ith the Transcend + Doxorubicin conjugate VS Doxorubicin alone
Opportunity • W
ould be highly effective in treating brain tum
ors if it could be delivered into the brain
18"
0.00"
1.00"
2.00"
3.00"
Transcend-Doxo
Doxo
% IN
JECTED
DO
SE (G
TISSUE/G
BOD
Y MASS)*100%
Transcend Significantly Enhances D
oxorubicin Transport into the Brain
Conjugate
retains full activity once released in the brain
OTCQX BIOAF TSX.V BTI
Transcend Significantly Reduces Doxorubicin Uptake into the Heart
Problem
• Doxorubicin’s most serious
adverse effect is life-threatening heart dam
age
Results • Transcend + Doxorubicin V
S Doxorubicin on its ow
n showed
a significant DECREASE in uptake in the heart
Solution • Could be used to treat brain
cancers and decrease heart-uptake side effect, offering increased usage
19"
0.0"
5.0"
10.0"
15.0"
20.0"
Transcend-Doxo
Doxo
% INJECTED DOSE (gram brain tissue/gram body mass)*100
OTCQX BIOAF TSX.V BTI
Development Program
: Transcend + Trastuzum
ab (Herceptin®)
• Trastuzumab (Herceptin®
) 1 is a hum
anized monoclonal antibody
used to treat HER2+ breast cancer • Annual global sales ~$6.6 bn
2
• Increases survival rate but ~40%
patients eventually develop breast cancer m
etastasis in the brain3
• Trastuzumab (Herceptin®
) does not cross the BBB
20"
1) Herceptin® is a registered tradem
ark of Roche/Genentech
2) Company Reported Data – 2013
3) Britta Weigelt, Johannes L. Peterse & Laura J. van't Veer. (2005, August). Breast
cancer metastasis: m
arkers and models. Nature Review
s Cancer 5 , 591-602.
Brain Capillaries
Cell N
uclei
BT2111: Transcend – Trastuzum
ab (Herceptin®
)
Confocal Image Perform
ed by iCapture at St. Paul’s Hospital Vancouver C
anada
BT2111 Program: Transcend +
Trastuzumab (H
erceptin®) conjugate
Confocal Im
ages Two H
ours Post IV Administration
OTCQX BIOAF TSX.V BTI
Reduced the number of HER2+ breast
cancer tumors in the brain by 6
8%
The tumors that rem
ained after treatm
ent were 5
7%
smaller
BT2111: Transcend + Trastuzumab (Herceptin®
) In Vivo Effi
cacy in Breast Cancer Model
21"
…com
pared to those treated with Trastuzum
ab (Herceptin®
) alone.
0"10"20"30"40"50"60"70"80"90"
Num
ber of Tumors
0.0"
0.5"
1.0"
1.5"
2.0"
2.5"
Mean Tum
or Volume
Transcend""(MTF"or"p97)"
mm3!
OTCQX BIOAF TSX.V BTI
Development Program
: Transcend
pep + siRNA
Small Interfering RNA (siRNA)
• Silences target genes • Nox4 is a gene associated w
ith human diseases
(i.e. cancers, neurodegenerative diseases, metabolic diseases, etc.)
Problem • siRNA does not cross the BBB • G
ene targeting within the brain is currently unachievable
Results • Transcend
pep + siRNA conjugate delivered into the brain tissue • Dem
onstrated ~2 fold decrease in Nox4 signal VS siRNA
alone Opportunity • A potential cornerstone technology for the developm
ent of new
therapeutics suppressing disease-linked genes in the brain
22"
National Research Council
NO
siRNA detected in Brain
Transcendpep + siRN
A detected in Brain
OTCQX BIOAF TSX.V BTI
Highlights
23"
Transcend Family
“…w
ould
be the first carrier to
efficacio
usly shuttle co
mpound
s across the B
BB
” Discovery of Transcend
pep
• Enhanced technology
• G
reater comm
ercialization potential
Company Profile
• G
ood cash position •
Clean share structure •
High internal ownership
• Strong IR Program
•
Exit strategy in place
Managem
ent M
ajo
r success in:
• Drug com
mercialization
• Academ
ia (BBB & m
onoclonal antibodies) •
Biotechnology & venture capital startups
IP & Collaborations •
Full patent protection •
Large pharmaceutical
collaborations •
Positive results; dem
onstrated efficacy
Large Market Opportunities
• Ability to extend patent life
• Com
mercialize new
therapeutics and/or revitalize dorm
ant candidates •
Contribute to the growth in
CNS drug market
Treatment Potential
• O
ncology •
Metabolic diseases
• Neurodegenerative diseases …
among others
OTCQX BIOAF TSX.V BTI
Timeline 2014-2015
Milestones Achieved
! Proof of principle dem
onstrated ! Discovery of Transcend
pep -extended patent protection
! Strong pharm
aceutical collaborations
! Com
pletion of necessary financings
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Leader in providing shareholder value
Aw
arded
TS
X.V
To
p 5
0®
"
Financing: TBD
Licensing: Transcendpep
Collaborations: New
research and/or licensing agreements
External R&D: Developm
ent of New
R&D
Programs
Internal R&D B
T2211 & LSD Program
s Anim
al efficacy studies
Internal R&D Pre IN
D Toxicity Studies
Proposed IND
Filing
Evaluation: Exit strategies:
Licensing / M&A
2014!2015!
OTCQ
X BIOAF !
TSX.V BTI July 2014