Cosmo Delivering Innovation

Cosmo PharmaceuticalsCosmo Pharmaceuticals Corporate Presentation September 2021

Cosmo Delivering Innovation

September 2021

Cosmo Pharmaceuticals

SAFE HARBOUR

Corporate Presentation September 2021

This presentation may include forward-looking statements that are based on our management’s beliefs and assumptions and oninformation currently available to our management.

The inclusion of forward-looking statements should not be regarded as a representation by Cosmo that any of its plans will be achieved.Actual results may differ materially from those set forth in this presentation due to the risks and uncertainties inherent in Cosmo’sability to develop and expand its business, successfully complete development of its current product candidates and current and futurecollaborations for the development and commercialization of its product candidates and reduce costs (including staff costs), the marketfor drugs to treat IBD diseases, Cosmo’s anticipated future revenues, capital expenditures and financial resources and other similarstatements, may be “forward-looking” and as such involve risks and uncertainties and risks related to the collaboration betweenPartners and Cosmo, including the potential for delays in the development programs for its products. No assurance can be given thatthe results anticipated in such forward-looking statements will occur. Actual events or results may differ materially from Cosmo’sexpectations due to factors which include, but are not limited to, increased competition, Cosmo’s ability to finance expansion plans, theresults of Cosmo’s research and development activities, the success of Cosmo’s products, regulatory, legislative and judicialdevelopments or changes in market and/or overall economic conditions. Cosmo assumes no responsibility to update forward-lookingstatements or to adapt them to future events or developments.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Cosmoundertakes no obligation to revise or update this presentation.

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Overview

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COSMO’S EXPERTISE

Cosmo has top-class expertise and know-how in three major therapeutic areas

• GI

• Endoscopy

• Dermatology



COSMO HAS AN IMPRESSIVE TRACK RECORD

Cosmo’s expertise in these areas has led to:

5 drugs approved by the FDA: Lialda, Uceris, Aemcolo, ByFavo, Winlevi

4 drugs approved by the EU: Mezavant (Lialda), Cortiment (Uceris), RelaFalk (Aemcolo), LuMeBlue

Cosmo is the only pharma company that can claim:

Two medical devices approved both by the FDA and EU

This track record is unrivaled in companies of Cosmo’s size



ALL COSMO PRODUCTS ARE ONE-OF-A-KIND AND PROVIDE SOLUTIONS TO UNMET NEEDS


• Lialda - once a day formulation of mesalamine for the treatment of mild Ulcerative Colitis (UC), increasing compliance

• Uceris - once a day formulation of budesonide for more severe UC, devoid of side effects

• Aemcolo - antibiotic for the treatment of colonic infections without side effects

• ByFavo - sedation agent with increase safety to replace general anesthesia in procedures

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ALL COSMO PRODUCTS ARE ONE-OF-A-KIND AND PROVIDE SOLUTIONS TO UNMET NEEDS


• LuMeBlue - first drug to increase detection of lesions during colonoscopies

• Eleview - first injectable solution to make polyp removal during colonoscopies safer and faster

• GI Genius - first AI based medical device for the real time detection of lesion during colonoscopies

• Winlevi - first topical anti-androgen for the treatment of acne in adults

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CASSIOPEA’S, COSMO’S 46.6% ASSOCIATE, PRODUCTS


COSMO’S BUSINESS MODEL


• Cosmo has decided that it will not market its products directly but will pursue partnerships with other companies

• All Cosmo’s products are currently partnered with different partners

• This enables Cosmo to:

- Maintain a lean cost structure

- Increase diversification

- Reduce overall execution risk

- Focus on research and development

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Cosmo Pharmaceuticals Corporate Presentation September 2021

CURRENT PARTNERSHIPS

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CURRENT PARTNERSHIPS

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COSMO’S DEVELOPMENT PIPELINEPRODUCT INDICATION PH I PH II PH III

Aemcolo IBS-D

Acute Uncomplicated Diverticulitis*

Small Intestine BacteriaI Overgrowth (SIBO)*

Minimal Hepatic Encephalopathy*

Methylene Blue MMXLesion detection during colonoscopy - European Union

Methylene Blue MMX Lesion detection during colonoscopy – U.S.

CB-03-10 Oral AR antagonist against solid tumors

GI-GeniusLesion detection during colonoscopy (US registration)

* Investigator Initiated Studies

APPROVED

APPROVED BY FDA, ADDITIONAL FEATURES UNDER DEVELOPMENT

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CASSIOPEA’S (COSMO’S 46.6% ASSOCIATE) DEVELOPMENT PIPELINEPRODUCT INDICATION PH I PH II PH III

Winlevi (clascoterone) cream 1% Acne

Breezula (clascoterone solution) Male Androgenetic Alopecia

APPROVED

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REPLENISHMENT OF COSMO’S DEVELOPMENT PIPELINE


• CB-03-10 for the treatment of solid tumors is now seeing the GMP engineering batches being finalized

• The phase I trial with a renewed formulation which significantly increases bio-availability is expected to begin by end 2021

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• Cosmo’s is screening for new indications of already approved and off-patent active principles with the help of eminent KOLs

• The aim is to:

- reduce development risk

- shorten the development timeline

- increase likelihood of success

- streamline the manufacturing process

- simplify supply chain issues

• The focus is on products at Proof Of Concept/ Phase 2, which if successful, will be partnered

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• Cosmo is unlikely to take the candidate to Phase 3 as investment would be too great relative to risk without commercial infrastructure

• Cosmo is currently focusing on 5 opportunities at early stage and has commenced preliminary feasibility studies

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COSMO’S FINANCIAL POSITION


Cosmo is an established company with a strong balance sheet

and is generating a positive cashflow from operations

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Market Cap1

CHF 1,218.0 million

Cash, bonds and fund investments1

€199.9m2020: €212.9m

Equity stakes in other companies1

€240.3m2020: €339.2m

Treasury shares and loans1

€79.1m2020: €72.5m

1 as at 14 September 2021

Revenue HY21€28.4mH1 2020: €25.9m

Operating profit HY21€8kH1 2020: Operating Profit €2.7m

Cash inflow from operating activities HY21€12.7mH1 2020: €1.8m


COSMO’S HY21 REVENUES


Manufacturing generic products, speciality drugs and related services, 22%

Manufacturing of own Products and related services, 52%

Licence fees , Up-front fees & milestones, 14%

Royalties , 9%Other revenues from sales, 4%

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15

4

2

1

6

13

2

4

1

-

2

4

6

8

10

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Manufacturinggeneric products,

speciality drugs andrelated services

Manufacturing ofown Products andrelated services

Licence fees , Up-front fees &milestones

Royalties Other revenuesfrom sales

H1 2021

H1 2020

• HY21 revenue €28.4m vs €25.9m prior year


COSMO’S HEADCOUNT

As at 30th of June 2021

Research and Development 77 28%

Production & Logistics 160 58%

SG&A 39 14%

Total 276

Cosmo has invested heavily in research and development while maintaining a lean organisation structure

Overall headcount has increased from 265 at December 2021 and 234 at December 2020

R&D headcount has increased from 72 at December 2021 and 60 at December 2020



COSMO’S STAKES IN OTHER COMPANIES AS A RESULT OF PARTNERSHIPS AND SPIN -OFFS


• As at 14th of September 2021 the market value of our stakes in other companies, cash, loans, investments and treasury shares was €524.9 million.

€M 14 Sep 2021

Shareholding in Cassiopea 155.4

Shareholding in Acacia Pharma Group plc 44.5

Shareholding in RedHill Biopharma ltd. 29.0

Shareholding in PAION AG 8.8

Other investments 8.1

Loan to Acacia Pharma Group plc 25.0

Treasury shares 54.1

Cash, bonds and fund investments 199.9

Total €524.8


Recent Milestones

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RECENT MILESTONES


• Cosmo’s associate, Cassiopea S.p.A. announced it had signed license and supply agreements with Sun Pharmaceutical Industries for Winlevi in US and Canada, July 2021

• GI Genius, the first device that uses artificial intelligence to assist clinicians in the detection lesions in the colon in real time during a colonoscopy, approved by the FDA, April 2021

• EU rights (plus Switzerland, UK, EEA countries, Russia and Mexico) for Lumeblue (Methylene Blue MMX) licensed to Alfasigma S.p.A., February 2021, launch expected 1Q 2022

• Successful outcome of Rifamycin 600mg phase II trial in IBS-D announced, January 2021

• License of Lumeblue (Methylene Blue MMX) China rights to China Medical System Holdings Ltd, December 2020, launch expected mid 2022

• EU approval of Methylene Blue MMX, August 2020

• Byfavo receives FDA approval for procedural sedation, July 2020

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Short Term Catalysts

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GI GENIUS


• In April 2021, GI Genius was approved by the FDA

• The FDA assessed the safety and effectiveness of the GI Genius through a multicenter, prospective, randomized, controlled study in Italy with 700 subjects 40-80 years old who were undergoing a colonoscopy for colorectal cancer screening

• The primary endpoint of the study compared how often colonoscopy plus GI Genius identified a patient with at least one lab-confirmed adenoma (precancerous tumor) or carcinoma (cancerous tumor)

• The study demonstrated that GI Genius can help to increased ADR

1. Repici A, Badalamenti M, Maselli R, et al. Efficacy of real-time computer-aided detection of colorectal neoplasia in a randomized trial. Gastroenterology. 2020;

159:512–520.e7.

14.4% 30% 46%increase in relative increase increase in absolute ADR1 in ADR1 relative APC1

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GI GENIUS


The global AI partnership with Medtronic

• Now Approved in the US, Europe, Australia, Israel and the United Arab Emirates

• Extensive marketing campaign by Medtronic underway

• https://www.medtronic.com/us-en/c/digestive-gastrointestinal/gi-genius.html

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https://www.medtronic.com/us-en/c/digestive-gastrointestinal/gi-genius.html


GI GENIUS

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GI GENIUS

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GI GENIUS

• We have delivered 262 devices to Medtronic for placement in

the US market and 389 for the European Market

• Subsequent to the interest shown by the market Medtronic has

ordered 3,000 devices, to be delivered in the subsequent months

• Cosmo has already manufactured 450 devices which will be delivered in line with a plan currently being refined with Medtronic



CASSIOPEA SPA


• In July, our associate Cassiopea S.p.A. announced it had signed license and supply agreements with Sun Pharmaceutical Industries for Winlevi in US and Canada

• The license agreement is now effective as the parties have received HSR Antitrust Clearance

• Cassiopea has received $45 million as upfront payment and will receive high double-digit royalties and potential commercial milestones up to $190 million

• Sun has committed to substantial promotional and marketing expenses according to an agreed commercialization plan

• As a result of the agreements with Sun we estimate that Cosmo’s financial results will benefit significantly because of Cosmo’s share of the overall Cassiopea FY21 financial result

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AEMCOLO


• In January 2021, we announced the successful outcome of our Phase II Proof of Concept (POC) clinical trial of Rifamycin-MMX 600mg in Irritable Bowel Syndrome with Diarrhea (IBS-D)

• Together with our licensees, we are commencing discussions with the U.S. and EU regulatory agencies with a view to starting the Phase III clinical studies required for marketing authorisation as soon as possible

• We have progressed the IBS-D phase II clinical program and two Investigator Initiated Studies have commenced in the U.S. for the treatment of Minimal Hepatic Encephalopathy and Small Intestine Bacterial Overgrowth (SIBO), while the trial on Uncomplicated Acute Diverticulitis has yet to start

• As a consequence of travel restrictions and bans which have been put in place by most countries following the outbreak of the pandemic, Aemcolo sales continue to be adversely affected in 2021

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METHYLENE BLUE MMX


• In August 2020, the European Commission approved Methylene Blue MMX for the visualization of colorectal lesions during colonoscopies

• In December 2020, we licensed the Chinese rights for Lumeblue to China Medical System Holdings Ltd. (“CMS”) (SEHK: 867), approval is expected in mid 2022

• In February 2021, we licensed the EU rights (plus Switzerland, UK, EEA countries, Russia and Mexico) for Lumeblueto Alfasigma SpA, launch is expected in Q1 2022

• We have progressed our discussions with the FDA to prepare for the requested second phase III trial. Subject to reaching agreement with the FDA on the final protocol, we hope to commence the trial during 2021, pandemic permitting

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2021 Key Priorities & Outlook

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KEY PRIORITIES FOR 2021 AND BEYOND


• Ensure that GI Genius performs in the US market by providing Medtronic with all the necessary supply and support

• Complete the replenishment of our pipeline

• Progress the development of Aemcolo in IBS-D

• Commence the Methylene Blue MMX confirmatory phase III trial required for US approval

• Have Cassiopea begin Breezula Phase 3 trial in Male Androgenetic Alopecia

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2021 GUIDANCE


• Guidance is maintained following FDA approval for GI Genius and assumes an increase in costs associated with the deployment of GI Genius machines to Medtronic and into the market

- Revenue in the range of €60m - €64m

- Operating profit in the range of €3m - €5m

• In addition to the operating profit above, the agreement reached between Sun and Cassiopea in relation to Winlevi will result in Cassiopea delivering a profit in FY21. Cosmo’s financial results will benefit in line with our stake in Cassiopea

• We are therefore expecting Cosmo to deliver a profit before tax in FY21 in the range of €4m to €6m

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COSMO AS SEEN BY EQUITY ANALYSTS


• Analyst – Peter Welford

• BUY Rating

• 12 month price target CHF 110

• Analyst – Paul Verbraeken

• BUY Rating


• Analyst – Barbora Blaha

• OUTPERFORM Rating


• Analyst – Bob Pooler• Risk Adjusted NPV per share CHF 134

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Thank You

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Cosmo Pharmaceuticals N.V.Riverside IISir John Rogerson’s Quay Dublin 2, Ireland

[email protected]

Mr. Alessandro Della Cha, [email protected]

Mr. Niall Donnelly, CFO

[email protected]


mailto:[email protected]



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Cosmo Delivering Innovation