EQUITY RESEARCHCOMPANY UPDATE

Jason Kolbert(212) 895-3516jkolbert@maximgrp.com

Biotechnology

TKMR - NASDAQ September 24, 2014

Intraday Price 09/24/2014 $23.02Rating: Buy12-Month Target Price: $23.0052-Week Range: $6.15 - $31.48Market Cap ($M): $536Shares O/S: 22Float: 90.9%Avg. Daily Volume (000): 3,337Dividend Yield: 0.00%Dividend: $0.00Risk Profile: HighFiscal Year End: December

Total Revenues ('000) 2014E 2015E 2016E1Q 4,385A 5,681 6,1892Q 1,811A 6,175 6,7273Q 5,000 5,928 6,4584Q 5,000 6,916 7,535FY 16,241 24,700 26,909

Total Expenses ('000) 2014E 2015E 2016E1Q 10,388A 9,381 9,8182Q 11,234A 10,197 10,5153Q 8,049 9,789 10,1664Q 7,549 11,421 11,560FY 37,590 40,790 42,059

GAAP-EPS 2014E 2015E 2016E1Q (0.91)A (0.12) (0.11)2Q (0.28)A (0.13) (0.11)3Q (0.13) (0.13) (0.11)4Q (0.10) (0.15) (0.12)FY (1.42) (0.54) (0.46)Prior (1.26) (0.24)

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5Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14

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Price Volume

Volume (MM) Price (USD)TKMR

Source: Factset

Tekmira Pharmaceuticals Corp BuyTekmira and Inovio are Moving to Clinical as CDC ProjectsOver 1 Million Ebola Cases Possible

Summary

• Tekmira continues to make progress in the development of TKM-EBOLA. OnSeptember 22, 2014 the company announced that TKM-EBOLA was clearedfor emergency use on the ground in West Africa. Yesterday, the companyannounced it will join an international consortium that will establish clinicaldevelopment centers in Ebola hot zones.

• Inovio has announced this morning that its SynCon DNA-based vaccinecandidate for Ebola will be moving into a phase I clinical trial in early 2015.

• The CDC has estimated that the number of Ebola cases in Liberia and SierraLeone could rise to between 550,000 and 1.4 million by January. To date, 5,800cases of Ebola virus disease have been confirmed with 2,800 deaths.

• President Obama has authorized the deployment of 3,000 US troops into theendemic regions of Western Africa to aid in building clinics and training ofhealthcare workers. On September 21, 2014 the second wave of those troopsarrived in Liberia to help country's beleaguered health services.

Details

Tekmira: Joins an international consortium that has been awarded funds to establisha clinical trials platform in two or more Ebola treatment centers in West Africa. TKM-EBOLA, an RNAi platform, may be selected for clinical trials at these centers as ithas been prioritized as an investigational therapeutic. This is good news as the FDAhad authorized (September 22, 2014) the emergency use of TKM-EBOLA in patientswith confirmed or suspected Ebola virus infections, an authorization that wouldnot preclude the need for controlled clinical trials to gain drug approval. However,joining a consortium that will establish a clinical trials platform could give Tekmiraan opportunity to seek approval based on trials as these centers.

Invovio: Announced this morning that its Ebola vaccine candidate developedfrom its SynCon DNA vaccine platform will be moving into a phase I clinicaltrial in collaboration with GeneOne Life Sciences (KSE: 011000-1,230.00-NR), aninternational DNA vaccine manufacturer in which Inovio holds a minority interest.A major contributer to viruses spreading is often the virus acquiring mutations thatallow it to more easily evade the immune response. A key element in Inovio'scandidate is its ability to target multiple strains of The Ebola Virus using SynConvaccine technology (described below).

Who is working on Ebola? Highlighted companies in vaccine development includeGlaksoSmithKlein (GSK-$46.64-NR), NewLink Genetics (NLNK-$24.88-NR), InovioPharmaceuticals (INO-$9.77-Buy), Bavarian-Nordic (BVRNY-$19.23-NR), Johnsonand Johnson (JNJ-$107.46-NR), Integrated BioTherapeutics (private), ProfectusBiosciences (private) and Immunovaccine Inc. (IMV-V-0.78-NR). On the Ebolatherapeutics front we highlight Tekmira Pharmaceuticals Corp. (TKMR-$24.30-Buy), BioCryst Pharmaceutical, Inc., (BCRX-$10.22-NR), Fuji Film Holdings (FUJIF-$30.03-NR), MAPP Biopharmaceuticals (private), Medivector (private) and SareptaTherapeutics (SRPT-$20.61-NR). We also highlight Lakeland Industries (LAKE-$7.50-NR) who is involved in manufacturing personal protective equipment forhealthcare workers in Ebola hot zones.

SEE PAGES 17 - 19 FOR IMPORTANT DISCLOSURES AND DISCLAIMERS

TEKMIRA PRESS RELEASE

Tekmira Joins International Consortium to Conduct Clinical Trials of Ebola Virus Therapeutics in West Africa

VANCOUVER, British Columbia, Sept. 23, 2014 (GLOBE NEWSWIRE) -- Tekmira Pharmaceuticals Corporation (Nasdaq:TKMR) (TSX:TKM), a

leading developer of RNA interference (RNAi) therapeutics, today reported that it is collaborating with an international consortium to provide an

RNAi based investigational therapeutic for expedited clinical studies in West Africa.

Led by Dr. Peter Horby of the Centre for Tropical Medicine and Global Health at the University of Oxford and the International Severe Acute

Respiratory and Emerging Infection Consortium (ISARIC), the consortium includes representatives from the World Health Organization (WHO),

US Centers for Disease Control, Médecins Sans Frontières - Doctors without Borders (MSF), ISARIC, and Fondation Mérieux, among others.

The Wellcome Trust has announced it has awarded £3.2 million to the consortium to fund this initiative. The award will include funds for the

manufacture of investigational therapeutics as well as the establishment of an operational clinical trials platform in two or more Ebola Virus

Disease (EVD) treatment centers in West Africa. RNAi has been prioritized as an investigational therapeutic and may be selected for clinical

trials at these centers.

The objective of the clinical trials is to assess the efficacy and safety of promising therapeutics and vaccines, reliably and safely, in patients with

EVD by adopting strict protocols that comply with international standards. It is hoped this initiative will permit the adoption of safe and effective

interventions rapidly.

The genetic sequence of the Ebola virus variant responsible for the ongoing outbreak in West Africa is now available. Under this program,

Tekmira will produce an RNAi based product specifically targeting the viral variant responsible for this outbreak. The ability to rapidly and

accurately match the evolving genetic sequences of emerging infectious agents is one of the powerful features of RNAi therapeutics.

"We commend the Wellcome Trust for their leadership in providing the necessary funds to launch and expedite this ground breaking initiative.

We are gratified that RNAi has been prioritized as a potential investigational therapeutic to assist in the ongoing public health and humanitarian

crisis in Africa," said Dr. Murray, Tekmira's President and CEO.

"We are an active collaborator in this consortium and through our ongoing dialogue with the WHO, NGOs and governments in various countries;

we have been discussing the creation of appropriate clinical and regulatory frameworks for the potential use of investigational therapeutics in

Africa. This initiative goes a long way towards achieving this aim. Many complex decisions remain to fully implement this unique clinical trial

platform. At this time, there can be no assurances that our product will be selected by the consortium for clinical trials in Africa," said Dr.

Murray.

INOVIO PRESS RELEASE

Inovio Pharmaceuticals Ebola Vaccine Moving into Human Trial with GeneOne Life Science

PLYMOUTH MEETING, Pa., Sept. 24, 2014 /PRNewswire/ -- Inovio Pharmaceuticals, Inc. (NASDAQ: INO) announced it will advance its DNA

vaccine for Ebola into a phase I clinical trial in a collaboration with GeneOne Life Science Inc. (KSE: 011000), an international DNA vaccine

manufacturer in which Inovio holds a minority interest.

In the collaboration Inovio and GeneOne will co-develop Inovio's DNA-based Ebola vaccine through a phase I clinical trial. The companies are

currently conducting pre-IND activities and plan to start the clinical study in the first half of 2015. Upon successful completion of the phase I, the

companies will jointly seek additional third party support and resources to further develop and commercialize this product.

Along with the escalating spread of Ebola and related deaths, this virus is also mutating into diverse strains. There are no preventive vaccines or

effective therapeutic approaches to Ebola; the ease with which Ebola is generating genetic variations will complicate the process of creating

such solutions. In addition, various experimental approaches have already been associated with undesirable side effects and limited ability to

scale manufacturing.

Inovio's SynCon® technology has been the basis for immunotherapy and vaccine products which have demonstrated the ability to activate

immune responses against multiple disease-specific antigens and elicit broad protection against diverse unmatched strains of pathogens in

humans. These DNA-based immunotherapy products have demonstrated a very favorable safety profile. Furthermore, these synthetic

immunotherapies are manufactured using established production processes. Inovio's Ebola vaccine was designed using the SynCon technology

to provide broad protective antibody and T-cell responses against multiple strains of Ebola virus.

In published preclinical testing of its Ebola vaccine, Inovio observed that 100% of vaccinated guinea pigs and mice were protected from death

after being exposed to the Ebola virus. Unlike the non-vaccinated animals, vaccinated animals were also protected from weight loss, a measure

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of morbidity. Researchers found significant increases in neutralizing antibody titers and strong and broad levels of vaccine-induced T-cells,

including "killer" T-cells, suggesting that this product could provide both preventive and treatment benefits.

Dr. J. Joseph Kim, President and CEO, said, "Inovio's SynCon® DNA-based immunotherapy and vaccine technology offers an advantageous set

of characteristics and capabilities to generate and direct powerful immune responses against a target disease. There are no proven agents to

check the spread of Ebola, which is now becoming a health threat of global concern. We are therefore taking the steps with our collaborator to

establish the safety and immunogenicity of our Ebola vaccine in humans and be in a position to further advance these agents to help fight this

challenging disease."

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EBOLA

OUTBREAK! Most everyone has seen the 1995 film ‘Outbreak’ where the fictional Motaba virus, an Ebola-like virus, threatens to wipeout the

town of Cedar Creek and potentially the United States if it escapes. Ebola has made headlines in real-life but are we in real danger of a Motaba-

like outbreak? Not likely, since the real-life Ebola is not airborne and can only be spread by direct fluid contact with a symptomatic patient.

Nonetheless, the outbreak in Africa is the largest in history (4700 cases and 2400 deaths) and underscores the need for a vaccine and

therapeutics. Experts fear that the outbreak will continue to spread and possible at exponential rates. The two Americans infected with Ebola that

were brought to the US for treatment sparked Ebola hysteria in the media as they were the first humans infected with Ebola on American soil.

All of the attention on Ebola has continued to shine the spotlight on small biotech and companies that are actively pursuing Ebola vaccines and

therapeutics. Bio Defense is the hot topic and the U.S. government is looking for the biotech community to bring its best products forward. Who

are the companies and what are they working on? We highlight 15 companies working in the vaccine and therapeutics spaces developing novel

products to fight Ebola.

Source: Warner Brothers

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Exhibit 1. Left. Electron micrograph image of Ebola showing the characteristic Sheppard’s hook shape. Right. Ebola infection results in high

fever and patient bleeding which is then often followed by death (mortality 30-90%)

Source: CDC.gov and redflagnews

Exhibit 2. Ebola structure. Ebola is an RNA virus, meaning that its entire genome is made of RNA as opposed to DNA. Ebola’s RNA genome

is negative sense (genes are read 3’ to 5’ as opposed to positive stranded that reads 5’ top 3’) and single stranded. The entire genome consists of only 18,959 nucleotides (Compared to >3 billion in a single human cell). The single strand RNA has no 5’ cap nor is the 3’ end polyadenylated. This tiny genome carries code for just seven structural proteins and one non-structural protein which are between leader and trailer sequences that are not transcribed but contain important signals for transcription, replication, and packaging of new virions. Below: The basic structure of Ebola virus and another structurally similar Filovirus, Marburg. Members of the Filoviradae family cause

hemmorhagic fevers in humans.

Source: Brooks et al., ‘Jawetz, Melnick, & Adelberg’s Medical Microbiology’. 25th Edition.

Ebola replication. A virus by itself in the open is useless, it does not propagate. A virus needs to gain access to a cell (deliver the viral genome)

and hijack the cells replication machinery in order to reproduce. Viruses gain access to cells by using membrane fusion (viral envelope and host

cell membranes), Endocytosis (ingestion by the host cell), or genetic injection (docking on the host cell membrane and injecting its DNA or RNA

into the host cell). Ebola gains entry to the host cell using a viral spike-like glycoprotein (GP) to attach to the host protein Niemenn-Pick C1

(NPC1) which is a cholesterol transporter. Cells lacking NPC1 are impervious to Ebola. Once attached, Ebola is endocytosed (engulfed by the

host cell) and subsequently released into the cytoplasm where the replication process begins.

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The Ebola replication cycle…diagramed below

1- Following attachment to NPC1 Ebola is endocytosed into micropinosomes in the host cell

2- Fusion of the micropinosome membrane to Ebola membrane triggers nucleocapsid release in to the cytoplasm

3- The Ebola single stranded, negative sense RNA, is then used as a template for 3’-5- synthesis of full length viral mRNAs.

4- Ebola will then hijack the host ribosomes and translation-related enzymes/materials (tRNA, amino acids, ATP/GTP etc) to translate

the viral mRNA into viral proteins.

5- The viral glycoprotein (GP) is synthesized as a precursor (GP0) that is processed to GP1 and GP2, and post-translationally

modified by host cell enzymes. The GP proteins form heterodimers and then trimerize to create the surface peplomers (stud-like

projections on the viral surface).

6- Ebola protein levels rise and the virus switches from making protein to making more RNA. It uses its negative strand RNA as a

template to make a lot of positive strand RNA. The positive strand RNA is then used to make abundant negative strand RNA which

is packaged into new viral particles.

7- The new Ebola particles then fuse with the host membrane and are released by budding to infect more host cells. Each cell is

capable of generating remarkable amounts of virus, so much so that under a microscope, an infected cell can appear to have

crystals (high amounts of virus) under their membranes.

Exhibit 3. The Ebola replication cycle…and the Ebolavirus Ecology

Source: White JM. Nature Reviews Microbiology 10, 317-322 (May 2012) Source: CDC

Ebolavirus infection. How is it contracted? It is believed that bats carry Ebola virus. The virus can infect animals including non-human

primates. Humans become infected by direct contact with fluids from an infected animal or human (blood, semen, vaginal fluid, organs).

Transmission from human to human can only occur by this mechanism, Ebola virus is NOT airborne, unlike other deadly infectious diseases

(Anthrax, Smallpox and Tuberculosis). Humans can then pass the disease from human to human by fluid contact. Ebola virus is NOT airborne,

unlike another deadly disease, small pox. Though the frequency of transmission from human to human peaks when patients are symptomatic, it

is possible for transmission during the incubation period (2-21 days following contraction) and after the infection has been cleared (ie if the

patient survives)(3-5 weeks). However, diseases like smallpox can be transmitted through the air and may pose a larger threat since the

incubation period is longer and patients are highly contagious throughout the incubation before symptoms appear.

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BIO DEFENSE INDUSTRY

The market for biodefense countermeasures has grown dramatically as a result of the increased awareness of the threat of global terror activity

in the wake of the September 11, 2001 terrorist attacks. The U.S.Government is the principal source of worldwide biodefense spending. Most

U.S. Government spending on biodefense programs is in the form of development funding from NIAID, BARDA and the DoD, and procurement

of countermeasures by BARDA, the CDC and the DoD. The U.S. Government is now the largest source of development and procurement

funding for academic institutions and biotechnology companies conducting biodefense research or developing vaccines and immunotherapies

directed at potential agents of bioterror or biowarfare.

Project BioShield 2003: President Bush, in his State of the Union Address, proposed Project BioShield. The project was signed into law as the

BioShield Act of 2004. Project BioShield is designed to fund countermeasures against chemical, biological, radiological or nuclear (CBRN)

attack. The project allows the government to purchase next generation medical countermeasures (improved vaccines, diagnostics and

therapeutics). The 2004 budget appropriation set aside $5.6 billion over the next 10 years (the funds have already been allocated to the

BioShield Special Reserve Fund- SRF) to fund the development and procurement of countermeasures. The project also has provisions to

expedite research through a range of instruments including grants, which have been accessed by many companies for a wide range of CBRN

countermeasures. We reference the Department of Health and Human Services (Link to HHS site) for additional information on the scope of

Project

BioShield: We analyze the biodefense market in three segments; the United States military market, United States commercial market, and non-

U.S. markets, with the U.S. government funding representing the vast majority of the worldwide market. According to the Center for Biosecurity

at the University of Pittsburgh Medical Center, the U.S. Government biodefense military and civilian spending approximated $8 billion in fiscal

2009 and has averaged around $5.5 billion for fiscal years 2001 through 2009. Funding in today is>$6B per year.

U.S. Civilian: The U.S. civilian market includes funds to protect the U.S. population from biological agents and is largely funded by the Project

BioShield Act of 2004. Project BioShield, the U.S. Government’s largest biodefense initiative, governs and funds with $5.6 billion the

procurement of biodefense countermeasures for the SNS for the period from July 2004 through 2013. A total of $3.7 billion remains in the

Project BioShield Special Reserve Funds for future grants, as of March 2009.

U.S. Military: The DoD is responsible for the development and procurement of countermeasures for the military segment which focuses on

providing protection for military personnel and civilians who are on active duty. Funding last year was approximately $737 million compared to

estimated spending of $622 million for 2008. We anticipate that annual funding will continue in the future at comparable amounts.

Non-U.S. Markets: Non-U.S. markets address protection against biowarfare agents for both civilians and military personnel in foreign countries.

We anticipate that foreign countries will want to procure biodefense products as they are developed and validated by procurement by the U.S.

government.

Smallpox is also a Real Terrorist Threat: The department of Health and Human Services lists the small pox threat as a top government

priority to acquire counter measures. Small pox while no longer found in the environment exists in secure laboratories (U.S. & Russia). The

genome however is in the public domain and provides the basis for synthetic biology. The threat of intentional transmission of the virus and the

resulting impact could be catastrophic. Small pox is highly infectious, and easily transmitted with contact from the infected individual. Death

occurs in about 30% of all smallpox cases. Companies active in smallpox include Inovio Pharmaceuticals (INO--Buy), Bavarian-Nordic (BAVA--

NR), Siga Technologies Inc. (SIGA--NR), Symphogen A/S (private), Nanotherapeutics, Inc. (private), CEL-SCI Corporation (CVM--NR),

TapImmune, Inc. (TPIV-$0.97-NR), CJ CheilJedang (097950:KS 398,000 KRW), MacroGenics, Inc. (MGNX-$21.78-NR), Conkwest, Inc.

(private), Inhibikase Therapeutics, Inc. (private) and Polyrizon Ltd. (private). Inovio Pharmaceuticals and Bavarian-Nordic are also active in

Ebola as described above and Bavarian-Nordic currently supplies the US with smallpox vaccines.

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Exhibit 4. Smallpox – A Deadly Threat

Source: SIGA

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EBOLA VACCINES Key words:

NIAID National Institute of Allergy and Infectious Diseases NIH National Institutes of Health NCI National Cancer Institute VRC Vaccine Research Institute DTRA US Defense Threat Reduction Agency WRAIR Walter Reed Army Institute of Research PHAC Public Health Agency of Canada PU Particle Units USAMRIID US Army Medical Research Institute of Infectious Diseases DOD Department of Defense BARDA Biomedical Advanced Research and Development Authority

GlaksoSmithKlein (GSK-NR)

Product: VRC-207 Type of Therapeutic: Vaccine Status: Multiple phase I trials in humans

VRC-207 is an investigational vaccine developed by Nancy Sullivan, PH.D., Chief of Biodefense Research Section by the NIAID Vaccine

Research Center (VRC). The project is in collaboration with a team of VRC researchers at the Army Medical Research Institute of Infectious

Diseases and Okairos, the Swiss-Italian biotechnology company acquired by GSK. The vaccine is based on the recombinant chimp ‘cold’ virus

called Chimpe Adenovirus type 3 (ChAd3). VRC-207 is a bivalent vaccine using the adenovirus as a vector to deliver genetic segments of Zaire

and Sudan Ebola strains. GSK also has a monovalent Zaire Ebola vaccine. The Adenovirus is a non-replicating vector that when delivered to

human cells produce one Ebola protein that subsequently initiates an immune response. In non-human primates that were vaccinated with the

monovalent vaccine survived Ebola challenge whereas unvaccinated controls dies within 6 days.

GSK has been granted permission to conduct a phase I trial in healthy humans based on an expedited review and approval process by the FDA.

The phase I trial which began on September 1, 2014 includes 20 healthy subjects divided in 2 cohorts of 10. Both groups will be vaccinated by

intramuscular injection (2X1010 particle units in one ml volume or 1011 particle units/ml). A phase I study for the monovalent vaccine is

scheduled for early October 2014. The GSK/NIAID vaccine is based on knowledge obtained from 3 earlier phase I trials conducted by the NIAID

going back to 2003. Each component of the vaccine (Ebola material and ChAd3 vector) had been shown to be safe in humans before. The

monovalent vaccine will also be tested internationally, in the UK and Mali. These studies will be conducted by the UK medical Research Council

and Department of International Development in 60 healthy subjects at Oxford University and 40 in Mali. The latter will be conducted by the

University School of Maryland. The Oxford trial is expected to initiate in mid-September.

NewLink Genetics (NLNK-NR)

Product: Vaccine, unnamed Type of Therapeutic: rVSV-ZEBOV-GP (BPSC1001) Status: Approved for Phase I in humans

NewLink is a biopharmaceutical company that develops immune-oncology products for cancer therapeutics. The company’s product candidates

include both biologic and small molecules that are designed to harness the immune system to fight Cancer. BioProtection Systems (BPS), a part

of the Iowa State University research park, was acquired by NewLink. BPS focuses on vaccines for emerging diseases. The company also

develops rapid-response prophylactic and therapeutics against pathogens that could potentially threaten the world (i.e Ebola and Marburg

viruses). The rVSV Vaccine platform which is based on attenuated strains of vesivular stomatitis virus (common to animals), has been used to

express the Ebola virus GP coat protein that is non-pathologic in primates and mice. This Ebola vaccine was initially developed by the Public

Health Agency of Canada (PHAC). BPS has worked with the PHAC to produce clinical trial-grade materials to move the vaccine to phase I.

The vaccine has shown efficacy in non-human primates when administered pre- and post-lethal exposure to Ebola virus. These studies have

prompted the FDA to grant permission for NewLink to conduct phase I clinical trials in humans to establish a safely profile. The phase I study

planned is in collaboration with WRAIR and DTRA and will aim to evaluate the safety of various doses. The trial will include 40 healthy subjects

that will be immunized and followed for an unspecified period. Data to be collected will include safety as well as magnitude and durability of any

immune response. As part of the latter, subject antibody titers/responses will be compared to those thought to protect vaccinated non-human

primates that were challenged with Ebola. The trial has not yet begun but could initiate by YE 2014.

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Inovio Pharmaceuticals (INO-Buy)

Product: SynCon DNA vaccine Type of Therapeutic: Vaccine, polyvalent Status: Preclinical

Inovio is revolutionizing vaccines to prevent and treat today's cancers and challenging infectious diseases. Its SynCon® vaccines are designed

to provide universal protection against known as well as new unmatched strains of pathogens such as influenza. These synthetic vaccines, in

combination with Inovio's proprietary electroporation delivery, have been shown in humans to generate best-in-class immune responses with a

favorable safety profile.

Using the proprietary SynCon® design approach, Inovio researchers developed a polyvalent DNA vaccine consisting of three consensus

plasmids to broadly target variant virus strains within three distinct families of Ebola and Marburg viruses. In the first part of this study, following

two vaccinations using Inovio's proprietary CELLECTRA® electroporation device, 100% of vaccinated guinea pigs were protected from death

following a virus challenge. The researchers observed significant increases in neutralizing antibody titers and strong and broad levels of vaccine-

induced T-cells, including "killer" T-cells, and subsequently conducted a test in mice using only one vaccination – this single dose also fully

protected the animals from death following a virus challenge. In addition, unlike the non-vaccinated animals, vaccinated animals were protected

from weight loss.

Bavarian-Nordic (BAVA-NR) Product: MVA-BN Filo Type of Therapeutic: Vaccine, multivalent Status: Preclinical, accelerated development with NIAID, planned phase I safety study in 2015

Bavarian-Nordic is an international biotechnology company that develops novel immunotherapies and vaccines for infectious diseases. The

company, located in Denmark, is currently not covered in the US. Bavarian may be the dark-horse in the Ebola landscape. The company has

developed a smallpox vaccine called IMVAMUNE (Trade name IMVANEX) for active immunization of adults. The vaccine is approved in the EU

and Canada, and currently in phase III trials In the US. What many don’t know is that Bavarian supplies the US government (>24 million dos) as

part of the US Strategic National Stockpile. Why are we talking about smallpox vaccines when we are dealing with Ebola (not taking away from

the morbid danger of smallpox)? Due to the success with the smallpox vaccine the NIH asked for a multivalent anti-filovirus vaccine (multivalent-

protective against multiple viruses). The Department of Defense had set up a program to develop multivalent filovirus vaccines to protect against

Zaire/Sudan strains of Ebola and Marburg Virus, with a single vaccine. Bavarian’s MVA-BN vaccine platform that was used to develop the

smallpox vaccine used an attenuated pox virus. This can also be used as a vector to slice in components of other viruses to develop a

multivalent vaccine and Bavarian has done just that.

Bavarian has taken the pox vector and added in components of Ebola (Zaire and Sudan) and Marburg viruses. Testing in in Non-human

primates shows the vaccine is 100% protective against EBOLA and MARBURG viruses. It was announced on September 4, 2014 that Bavarian

will accelerate its collaboration with the NIAID on the development of its Ebola programs. Bavarian and its partners are planning to initiate the

first phase I trial for a combination vaccine regimen in humans in 2015, Bavarians product could protect people against Small pox, Ebola and

Marburg Viruses with a single multivalent vector. Bavarian’s MVA-BN technology is a component Johnson & Johnson’s (JNJ-104.72-NR) AdVac

technology combination vaccine. This combination features a proprietary priming vaccine from J&J followed by a boosting shot from Bavarian.

Work with this vaccine has also shown complete protections against Ebola Zaire. Planning is ongoing to develop this combination vaccine

regimen with the initiation of a phase I trial in humans in 2015.

Johnson and Johnson (JNJ-NR) Product: Vaccine Type of Therapeutic: Vaccine, combination with Bavarian vaccine Status: Protective against Ebola Zaire in non-human primates, planning to initiate phase I in 1H 2015

The vaccine is being developed by J&J’s Crucell division. Crucell is developing a multivalent filovirus vaccine against Ebola and Marburg

viruses. The work is in collaboration with VRC of the NIAID as part of a Collaborative Research and Development Agreement (CRADA) dating

back to 2002. The vaccine platform used by Crucell is based on the adenovirus, a common respiratory pathogen, which is then used as a vector

to load components of the Ebola genome. The vaccine was shown to completely protect against Ebola in monkeys. In 2006, the Ebola vaccine

was used in a phase I clinical trial that consisted of two groups of 16. The vaccine was shown to be safe and immunogenic in subjects that were

vaccinated.

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Though the original goal was to develop a vaccine that protects against both Ebola and Marburg viruses, J&J has moved to pare down the

vaccine and pursue protection against Ebola Zaire, the strain responsible for the current outbreak in West Africa. This strategy has allowed J&J

to accelerate the vaccine development. While the Ebola version of the vaccine is new, the adenovirus platform is not and has already been

shown by Crucell to be safe in humans. The current vaccine candidate is a combination of the Crucell Ebola vaccine and the Bavarian Nordic

Ebola vaccine. Both carry genetic material from Ebola but the difference is in the vector. Bavarian Nordic is using an attenuated relative of

smallpox whereas Crucell uses adenovirus. The plan is to give the Crucell vaccine first and then boost with a second shot of the Bavarian Nordic

vaccine. J&J plans to initiate a phase I in 1H 2015.

Integrated Biotherapeutics, Inc. (Private)

Product: Ebola Vaccine Type of therapeutic: Vaccine Status: Preclinical, potential to control Ebola in wild primate

Integrated Biotherapeutics (IBT) is focused on vaccines and therapeutics for emerging infectious diseases. The company has a pipeline with

several promising candidates for bacterial and viruses. The company has close relationships with the NIAID, USAMRIID and NCI. The antiviral

portion of IBT’s pipeline includes Hepatitis C virus and both Ebola and Marburg viruses. IBT has a different approach to viral vaccine

development against Ebola and Marburg. Most successful vaccines are based on a virus-vectored approach expressing viral coat proteins.

Those that use DNA or protein subunits have had moderate success. IBT uses a virus-like particle (VLP) which is vector free. Virus-like particles

rely on the natural properties of the viral matrix protein (VP) 40 to drive budding of filamentous particles that can incorporate more than 1

filovirus protein. Filovirus VLP vaccines use 2-3 viral proteins generated in mammalian cells as the basis for the vaccine. IBT is developing

another pan-filovirus vaccine using a second generation platform based on rational immunogen design.

Recently IBT published a novel conservation strategy showing that captive chimps can be vaccinated to protect against filovirus infection (Ebola

and Marburg) to save their own species. The vaccine is intended to protect wild gorillas and chimps from Ebola, death by which is now

considered to be on par with poaching and habitat loss. The primary source of Ebola that infects humans are from diseased animals in endemic

areas. The vaccine is still in development but may offer an approach in disease prevention after the current outbreak in Africa has been quelled.

Profectus Biosciences (Private)

Product: VesiculoVax vectored Ebola and Marburg Type of therapeutic: Vaccine Status: Preclinical, multiple studies conducted by NIAID, DoD, FDA, CDC

Profectus is a clinical-stage biotechnology company that designs and develops both therapeutic and preventative vaccines. They use multiple

platforms to fine tune immune responses against specific disease targets. The company has a biodefense vaccine franchise for hemorrhagic

fever causing viruses including Ebola, Marbug Lassa and Chikungunya. Profectus is using its proprietary VesiculoVax™-vectored vaccine

technology to generate vaccines capable of inducing rapid production of neutralizing antibodies that are protective against each of these viruses.

The vectors are negative strand non-segmented RNA viruses of the order Mononegavirales that have been modified to deliver vaccine

immunogens. Humans have no pre-existing immunity to this vector making it a suitable backbone for a vaccine. The VesiculoVax™ vector

(vesicular stomatitis virus (VSV) has been shown to completely protect monkeys against lethal challenge with Ebola and Marburg viruses.

Currently, Prospectus is developing vaccines for pre- and post-exposure protection against Ebola and Marburg viruses. Multiple studies in non-

human primates have been conducted by the NIAID, CDC, FDA and DoD and have shown that just a single dose of Profectus VesiculoVax

vectored Ebola and Marburg vaccines are 100% protective even when animals are challenged with 1000X the lethal viral dose. Recently a

trivalent VesiculoVax vaccine that is pan-filovirus has begun studies in non-human primates.

11Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

ImmunoVaccine (TSX-V-IMV-NR)

Product: DepoVax-formulated for Ebola Type of therapeutic: Vaccine Status: Pre-clinical studies in monkeys, 100% survival against Zaire Ebola strain, study performed by NIAID

Immunovaccine is a clinical-stage vaccine development company focused on advancing its DepoVax vaccine adjuvanting platform. The company uses the DepoVax technology to develop vaccines for cancers, infectious disease and animal health. DepoVax combines prolonged antigen exposure and adjuvant to the immune system. The results are strong and sustained immune responses to specific targets with single dose effectiveness. The company has active vaccine programs against infectious diseases that are a threat to national security and public health, including Ebola Zaire (the strain responsible for the current outbreak in West Africa) and Anthrax. ImmunoVax ,in collaboration with the NIAID, performed a preliminary study with their DepoVax Ebola vaccine using cynomoglus monkeys. This species was selected to its particular sensitivity to the Ebola virus. Monkeys were vaccinated and then bossed 56 days later. This was followed by lethal challenge which resulted in 100%survival. This study was conducted under the NIAID preclinical services program and ImmunoVaccine is exploring a potential development for an Ebola virus vaccine with various organizations.

12Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

EBOLA ANTIVIRALS

BioCryst Pharmaceutical, Inc. (BCRX-NR)

Product: BCX4430

Type of Therapeutic: Antiviral drug, Nucleotide analogue, RNA chain termination

Status: Pre-clinical, multiple animal studies including monkeys, looking to pursue phase I safety study in humans, not planned or designed yet.

BioCryst is a biopharmaceutical company the uses structure-guided drug design to develop therapeutics for a variety of diseases. In structure-

guided design researchers use detailed knowledge of the active sites of proteins associated with diseases to design interfering compounds.

BCX4430 is a lead compound that developed out of BioCryst’s Broad Spectrum Antiviral program. BCX4430 is a viral RNA-dependent RNA

polymerase inhibitor and has activity against a range of viruses (20 viruses from 9 families) with a good safety record in animals. The drug is a

nucleoside inhibitor that must be metabolized to the active triphosphate form to be functional. BCX4430 is incorporated into the growing viral

RNA chain in the cell and causes pre-mature chain termination upon binding to the RNA polymerase active site. BCX4430 is a small-molecule

adenosine analog drug that is chemically synthesized using well-understood synthetic transformations and chemical processes. It displays

favorable pharmaceutical characteristics, including aqueous solubility (> 150 mg/mL) and stability under typical laboratory conditions and

handling. BCX4430 may be suitable for administration by intravenous (IV), intramuscular (IM), and oral (PO) routes.

BLX4430is still in pre-clinical development but could move to a phase I by 1H15. Recently, BioCryst announced that BCX4430 would be entering

a dose ranging efficacy study in non-human primates in mid-September. In March of 2014, BioCryst researchers in collaboration with several

institutions including USAMRIID published a paper in ‘Nature’ demonstrating that BCX4430 given after viral challenge could stop Ebola and

Marburg infections from taking hold in rodents. Notably, when given 48 hours after Marburg virus challenge, BCX4430 completely protected

cynmologous monkeys. BioCryst is seeking to develop BCX4430 under the FDA animal rule. It is generally believed that a safety trial in humans

(phase I) could begin by 2015.

Tekmira Pharmaceuticals Corp. (TKMR-Buy) Product: TKM-Ebola Type of Therapeutic: RNAi, lipid nanoparticle Status: Phase I, partial clinical hold expected to be lifted YE 2014

Tekmira is a leading RNA interference (RNAi) therapeutics company. TKM-Ebola is developed under FDA regulatory guidelines for the Animal

Rule. Under this rule, when it’s unethical to conduct human efficacy trials (such as testing patients with human Ebola virus), the FDA can grant

marketing approval based upon adequate and well controlled animal studies. The animal studies must establish that the drug will likely produce

clinical benefit; however, the drug still has to show safety in humans. The Animal Rule is fairly new, and few products have gone through this

pathway. The drugs that have been approved have mostly been for indications related to bioterrorism. Since Ebola is highly infectious with a

short incubation period of few days and has a high mortality rate, we believe that TKM-Ebola should qualify to progress through the Animal Rule

pathway, similar to products approved through this pathway for the bubonic plague and anthrax.

TKM-Ebola is being developed using in part funds from a DOD contract initially worth $140M. Under the DOD contract, Tekmira has been able to

improve LNP formulation, develop LNP lyopholization, and improve the manufacturing process. All of these technological advancements should

translate into more efficacious and potent LNP formulations in future clinical trials and manufacturing of the RNAi therapeutics across Tekmira’s

pipeline of other products.

As part of preclinical studies, Tekmira showed post-exposure protection in non-human primates. TKM-Ebola protected 100% of the non-human

primates previously infected with lethal doses of Zaire Ebola virus. The 100% efficacy has not previously been shown with any other treatment.

TKM-Ebola is currently in a phase I clinical trial. This is a phase I randomized, single-blind, placebo-controlled study that is focused on exploring

the utility of a single ascending doses and multiple ascending doses of TKM-Ebola. The study is designed to assess the safety, tolerability and

pharmacokinetics of administering TKM-Ebola to healthy adult volunteers without administering any steroid pre-medications. We believe this is

critical for a real world medical counter measure (MCM). Tekmira announced that the FDA has verbally communicated that it will downgrade the

full clinical hold on TKM-Ebola to a partial hold. This would pave the way for emergency use authorization (if needed) in the U.S. The ensuing

Ebola outbreak and the danger that it poses to the United States and the rest of the world set the stage for regulatory action, along with the lack

of adequate therapeutic agents against Ebola and the potential viability of TKM-Ebola as a treatment option.

13Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

Fuji Film Holdings (FUJIF-NR) Product: Avigan (generic name Favipiravir, T-705)

Type of Therapeutic: Antiviral, blocks viral RNA polymerase

Status: Preclinical, phase III study in the US for influenza

Toyama Chemicals, a subsidiary of Fuji Film Holdings has put Japan into the race for an effective Ebola Therapeutic. Toyama has a wealth of

experience in the development of antibiotics, synthetic antibacterial and antiviral agents. Avigan, (Favipiravir or T-705) is an anti-viral with activity

against many RNA viruses including influenza, West Nile, yellow fever and foot-and-mouth viruses. The drug is also active against other

arenaviruses, bunyaviruses, alphaviruses and flaviviruses. Favipiravir acts as inhibitor of viral RNA-dependent RNA polymerase. In 2014 the

Japanese government approved the drug for influenza and is being stockpiled.

Avigan, owing to its unique mechanism to block viral replication in a broad range of viruses is now being tested on Ebola Zaire. Several

preclinical studies in mice have shown that the drug can reduce viral load in mice even when given 6 days after lethal challenge. Currently

Favipiravir is undergoing a phase III trial in the US for influenza. Though this does not mean the drug will be 100% protective against Ebola, the

advanced trial is evidence of a good safetly profile, a characteristic other potential therapies have yet to show. Avigan was shown to inhibit Ebola

replication in vitro. There have been no announced plans of any further trials though protection studies in non-human primates will likely be

required for Fuji Film to seek approval for Ebola.

Nanoviricides (NNVC-NR) Product: Nanoviricide®

Type of Therapeutic: Antiviral, Combined Niemann-Pick C1 mimitope and host cell surface polymer

Status: Preclinical, in negotiations with several parties regarding testing against Ebola in high safety environments

Nanoviricides is a development-stage company applying nanomedicine technologies to the complex issues associated with combating viral

diseases. The company’s Nanoviricide® technologies allows a viral particle to be attacked from several points. This type of technology may be

more effective against viruses compared to antibodies that are limited in their capacity to neutralize viruses by the number of binding sites on the

antibody (IgG=2).

The Nanoviricide Ebola program was recently restarted in August of this year in response to the Ebola outbreak in West Africa. The nanoviracide

drug that is currently being developed for Ebola is made up of two components; a virus binding ligand that mimics the host receptor and a

backbone polymer that gives the drug the appearance of a cell surface. Developing this Ebola-nanoviricide drug was based on recently

elucidated receptor requirements for Ebola entry into host cells. The Ebola virus requires the cell receptor Niemann-Pick C1 and thus the drug is

based on mimicking this receptor. An important feature is that since the drug is an Ebola receptor mimitope, it is likely that mutations in the virus

will not create drug resistance.

MAPP Biopharmaceuticals (private) Product: ZMapp

Type of therapeutic: Antiviral antibodies

Status: Preclinical, protective against Ebola post exposure, multiple non-human primate studies.

MAPP is a biopharmaceutical company that was focused on developing and commercializing new therapies to address under met patient needs

in neurology. However, the company has found itself thrust into the spotlight has being maker of ZMapp, the monoclonal antibody based

therapeutic used to treat the only two humans with Ebola to set foot on American soil. In fact, Mapp biopharmaceuticals has a robust monoclonal

antibody-based infectious diseases pipeline that includes collaborative projects with leading academic and medical institutions.

ZMapp is receiving all the attention in the news for treating the two American Ebola patients. ZMapp is the result of collaboration between

LeafBio (Private), Defyrus Inc (Private), the US government and the Public Health Agency of Canada (PHAC). ZMapp is composed of three

humanized monoclonal antibodies developed in the tobacco plant Nicotiana benthamiana. ZMapp is using the best components from two

antibody products; MB-003 (Mapp) and ZMab (Defyrus/PHAC), antibodies that were shown to have efficacy and be protective in several studies

in Ebola infected moneys (rhesus and macaque). The treatment process is a two-step passive immunization, which means that antibodies are

used to attack the virus, combined with active immunization to boost the patient’s immune response. A key factor that contributes to the

protective efficacy of ZMapp comes from a November 2013 study with the ZMab component. In this study macaque monkeys infected with Ebola

survived infection when give 3 Ebola virus-GP (glycoprotein)-specific monoclonal antibodies at 24 hours post-infection. Additionally, after 48

hours of infection followed by antibody treatemtent 2 of 4 monkeys survived. Interestingly, at 10-13 weeks, after a second lethal exposure, the

monkeys had a robust immune response, suggesting to us that the product is a treatment and a potential vaccine. Zmapp has not been

approved to go into a phase I safety study

14Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

Medivector (private) Product: Favipiravir (T-705)

Type of therapeutic: RNA-dependent RNA polymerase inhibitor

Status: Preclinical, generic available, Fuji Film is already conducting a phase III study in the US for influenza. See Fuji Film Holdings above for

more information.

MediVector is a privately held drug development company that has created a development platform that dramatically improves the economics of

drug development. MediVector has demonstrated in both the large pharma and biotech settings that its platform reduces development time and

cost by as much as 30% over industry standards. In addition, the probability of success in the late phases of clinical research is significantly

increased.

Medivector has developed the ant-viral favipiravir for the treatment of influenza. Favipiravir, which was originally known by its code name, T-705,

is a novel anti-viral compound that works against a different viral enzyme target than either of the approved antiviral agents used to treat people

who have become ill with influenza. Favipiravir inhibits the enzyme viral RNA polymerase, whose function is to make copies of the viral RNA

segments and to synthesize mRNAs which produce the proteins that will form new viruses. Interestingly, it was found that MediVector is in talks

with the FDA to submit an application to tuse Favipiravir as a treatment for Ebola. MediVector has a $138M contract with the US department of

defense. It has been reported by Bloomberg News that the DoD has prioritized the completion of pre-clinical work Ebola-infected monkeys, with

data expected in September. Why is the DoD so interested in MediVector’s Favipiravir for Ebola? Scientists at Toyama, Utah State University

and other universities around the world have tested favipiravir and found that it is effective against a wide variety of RNA viruses, in infected

cells, infected animals, and both.

Sarepta Therapeutics (SRPT-NR) Product: AVI-7288

Type of therapeutic: Antiviral, PMO that can alter pre-mRNA splicing or suppress translation. Status: Phase I, Marburg virus, ascending doses

Sarepta develops RNA-therapeutics to combat serious and rare infectious diseases. The company has an RNA technology platform that is

based on their work with phosphorodiamidate morpholino oligomer (PMO) chemistries. PMOs are synthetic chemical structures that are modeled

after the basic structure of RNA. The structure of a PMO is a nucleic acid base (without ribose) that one finds in RNA but the base is bound by

six-sided morpholine rings instead of ribose. These rings contain phosphorodiamidate linkages and not linkages normally found in RNA bases.

The advantages to PMOs include being stable (prolonging drug activity, resistant to enzyme degredation), versatile (can be ddesigned in lodular

fashion to construct disease specific drug candidates, and they are specific for RNA owing to their neutral charge that prevents mistargeting to

host proteins which can induce immune responses. The latter is associated with loss of efficacy seen with other RNA-based therapeutics.

Sarepta’s lead product is AVI-7288 which is indicated for Marburg virus. Marburg, like Ebola virus, causes a fatal hemmorhagic fever in humans.

AVI-7288 is designed to bind to viral RNA and inhibit the synthesis of the nucleocapsid protein (NP). NP supports the replication of the viral

genetic material in an infected cell, and is also involved in the assembly of mature viruses. Inhibition of NP is intended to interrupt the viral

lifecycle and stop or slow the spread of the disease to other cells in the body. AVI-7288 like Ebola therapies and vaccines is being developed

under the animal efficacy rule. Sarepta also has an Ebola drug, AVI-7537 in pre-clinical development but lags behind Marburg.

15Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

Protective Equipment

Lakeland Industries (LAKE-NR) Product: ChemMax1 Type of product: Personal protective equipment Status: n/a

Lakeland is the leader in quality, high-performance safety workwear, chemical protective clothing, disposable protective clothing, safety gloves,

turnout gear, high visibility clothing, flame and heat resistant clothing, and personal protective clothing for the global workforce. Lakeland

products have become part of the Ebola conversation. Over 100 healthcare workers have been exposed to Ebola while caring for patients, likely

from lack of proper protective equipment. Personal Protective Equipment, or PPE, is the front line of protection for healthcare workers who are in

direct contact with Ebola patients.

Lakeland's ChemMax1 with sealed seams is well suited for this dangerous environment. Lakeland’s ChemMax1 fabric passes both ASTM

F1670 and ASTM F1671 test methods for blood and blood borne pathogen protection. ChemMax1 also goes above and beyond the ASTM tests

by performing at the highest possible levels in the more comprehensive CE testing standards related to infectious agents. The performance of

ChemMax1 in testing protocols from around the world, combined with sealed seams for increased protection against fluid penetration; makes it

easy to see why these humanitarian groups are trusting Lakeland’s ChemMax1 for protection.

16Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

DISCLOSURES

Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014

35

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Closing Price Target Price

Tekmira Pharmaceuticals Corp Rating History as of 09/23/2014

I:Buy:$7.0006/18/13

Buy:$9.0009/24/13

Buy:$16.0010/07/13

Buy:$17.0012/19/13

Buy:$31.0002/24/14

Buy:$29.0005/15/14

Buy:$23.0006/04/14

powered by: BlueMatrix

Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014

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Closing Price Target Price

Inovio Pharmaceuticals Inc Rating History as of 09/23/2014

I:Buy:$1.0001/30/13

Buy:$2.0007/09/13

Buy:$3.0008/12/13

Buy:$6.0003/18/14

Buy:$18.0006/18/14

powered by: BlueMatrix

Maxim Group LLC Ratings Distribution As of: 09/23/14

% of CoverageUniverse with Rating

% of Rating for which FirmProvided Banking Services

in the Last 12 months

BuyFundamental metrics and/or identifiable catalysts exist such that weexpect the stock to outperform its relevant index over the next 12 months.

82% 33%

HoldFundamental metrics are currently at, or approaching, industry averages.Therefore, we expect this stock to neither significantly outperform norunderperform its relevant index over the next 12 months.

17% 18%

SellFundamental metrics and/or identifiable catalysts exist such that weexpect the stock to underperform its relevant index over the next 12months.

*See valuation section for company specific relevant indices

2% 0%

17Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

I, Jason Kolbert, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer.Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed inthis research report.

The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon various factors,including the firm’s total revenues, a portion of which is generated by investment banking activities.

Maxim Group makes a market in Tekmira Pharmaceuticals Corp and Inovio Pharmaceuticals Inc

Maxim Group received compensation for investment banking services from Tekmira Pharmaceuticals Corp and Inovio PharmaceuticalsInc in the past 12 months.

Maxim Group expects to receive or intends to seek compensation for investment banking services from Tekmira Pharmaceuticals Corpand Inovio Pharmaceuticals Inc in the next 3 months.

TKMR: For Tekmira, we use the BTK (NYSE Biotechnology Index) as the relevant index.INO: For Inovio Pharmaceuticals Inc., we use the BTK (NYSE Biotechnology Index) as the relevant index.

Valuation MethodsTKMR: Tekmira’s technology represents a new paradigm, siRNA. The company's partner progress (Alnylam) is a factor, as Tekmira receives aroyalty on the commercialization of its lead product. We see the ever-rising evidence of the viability of siRNA and the platform required to deliverthe product, which Tekmira provides as a key element in this space. We also assume that the TKM-Ebola moves forward and receives a U.S.government supplier contract by 2018. We see upside to the DoD platform with other indications, such as Marburg. Using these metrics, we modelthe market and discount back using a 15% rate in our FCFF model, discounted EPS, and sum-of-the-parts model, which triangulate to arrive atour price target.INO: We provide our valuation models below. The FCFF model uses a 15% discount rate, as we believe that the platform technology hasdemonstrated measurable T cell responses. With good phase II data in hand, we now see Inovio as de-risked. We also provide a discounted-EPSmodel and a sum-of-the-parts model. These models average to derive our price target. These metrics are dependent on our clinical assumptions.

Price Target and Investment RisksTKMR: Tekmira faces multiple risks, which include the clinical efficacy of the product; the management of the clinical trial process; the manufacturingof the product; the company’s ability to raise capital; the competitive landscape for this product; the decisions of regulatory bodies, such as theEuropean Union and FDA; and the reimbursement environment. Small, capitalized biotechnology companies possess unique risks and can be veryvolatile. Our ability to “predict” data based on small and limited patient numbers in early (Phase I) trials is limited. As such, investors should expectthese risks, which are typically commensurate with the reward potential.INO: Inovio Pharmaceuticals Inc. faces multiple risks, which include the clinical efficacy of the product; the management of the clinical trial process;the manufacturing of the product; the company’s ability to raise capital; the competitive landscape for this product; the decisions of regulatorybodies, such as the European Union and FDA; and the reimbursement environment. Small, capitalized biotechnology companies possess uniquerisks and can be very volatile. Our ability to “predict” data based on small and limited patient numbers in early (phase I or II) trials is limited. Assuch, investors should expect these risks, which are typically commensurate with the reward potential.

RISK RATINGS

Risk ratings take into account both fundamental criteria and price volatility.

Speculative – Fundamental Criteria: This is a risk rating assigned to early-stage companies with minimal to no revenues, lack of earnings, balancesheet concerns, and/or a short operating history. Accordingly, fundamental risk is expected to be significantly above the industry. Price Volatility:Because of the inherent fundamental criteria of the companies falling within this risk category, the price volatility is expected to be significant with thepossibility that the investment could eventually be worthless. Speculative stocks may not be suitable for a significant class of individual investors.

High – Fundamental Criteria: This is a risk rating assigned to companies having below-average revenue and earnings visibility, negative cashflow, and low market cap or public float. Accordingly, fundamental risk is expected to be above the industry. Price Volatility: The price volatility ofcompanies falling within this category is expected to be above the industry. High-risk stocks may not be suitable for a significant class of individualinvestors.

Medium – Fundamental Criteria: This is a risk rating assigned to companies that may have average revenue and earnings visibility, positive cashflow, and is fairly liquid. Accordingly, both price volatility and fundamental risk are expected to approximate the industry average.

Low – Fundamental Criteria: This is a risk rating assigned to companies that may have above-average revenue and earnings visibility, positivecash flow, and is fairly liquid. Accordingly, both price volatility and fundamental risk are expected to be below the industry.

18Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

DISCLAIMERS

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19Maxim Group LLC

Tekmira Pharmaceuticals Corp (TKMR)

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