Robert Tessarolo President & Chief Executive Officer...Robert Tessarolo President & Chief Executive Officer May 2019 PRESENTATION FORWARD-LOOKING STATEMENTS This document includes

INVESTOR

Robert Tessarolo

President & Chief Executive Officer

May 2019

PRESENTATION

FORWARD-LOOKING STATEMENTS

This document includes forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario) and other provincial

securities law in Canada and U.S. securities laws. These forward-looking statements include, among others, statements with respect to our objectives and goals and strategies to achieve

those objectives and goals, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates and intentions and statements. The words “may”, “will”, “could”,

“should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “object ive”, “hope” and “continue” (or the negative thereof), and words and

expressions of similar import, are intended to identify forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and

other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from

those expressed or implied in such statements. We caution readers not to place undue reliance on these statements as a number of important factors, many of which are beyond our control,

could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These

factors include, but are not limited to, our ability to enter into in-licensing, development, manufacturing and marketing and distribution agreements with other pharmaceutical companies and

keep such agreements in effect; our dependency on a limited number of products; integration difficulties and other risks if we acquire or in-license technologies or product candidates; reliance

on third parties for the marketing of certain products; the product approval process is highly unpredictable; the timing of completion of clinical trials, regulatory submissions and regulatory

approvals; reliance on third parties to manufacture our products and events outside of our control that could adversely impact the ability of our manufacturing partners to supply products to

meet our demands; we may be subject to future product liability claims; unexpected product safety or efficacy concerns may arise; we generate license revenue from a limited number of

distribution and supply agreements; the pharmaceutical industry is highly competitive; requirements for additional capital to fund future operations; dependence on key managerial personnel

and external collaborators; no assurance that we will receive regulatory approvals in the U.S., Canada or any other jurisdictions; current uncertainty surrounding health care regulation in the

United States; certain of our products are subject to regulation as controlled substances; limitations on reimbursement in the healthcare industry; limited reimbursement for products by

government authorities and third-party payor policies; various laws pertaining to health care fraud and abuse; reliance on the success of strategic investments and partnerships; the

publication of negative results of clinical trials; unpredictable development goals and projected time frames; rising insurance costs; ability to enforce covenants not to compete; risks

associated with the industry in which it operates; we may be unsuccessful in evaluating material risks involved in completed and future acquisitions; we may be unable to identify, acquire or

integrate acquisition targets successfully; inability to meet covenants under our long term debt arrangement; compliance with privacy and security regulation; our policies regarding returns,

allowances and chargebacks may reduce revenues; certain current and future regulations could restrict our activities; additional regulatory burden and controls over financial reporting;

reliance on third parties to perform certain services; general commercial litigation, class actions, other litigation claims and regulatory actions; the effects of our delisting from the NASDAQ

Global Market (the “NASDAQ”) and deregistration of our Common Shares under the U.S. Securities Exchange Act of 1934, as amended (the “U.S. Exchange Act”); the difficulty for

shareholders to realize in the United States upon judgments of U.S . courts predicated upon civil liability of the Company and its directors and officers who are not residents of the United States;

certain adverse tax rules applicable to U.S. holders of our Common Shares if we are a passive foreign investment company for U.S. federal income tax purposes; the potential violation of

intellectual property rights of third parties; our efforts to obtain, protect or enforce our patents and other intellectual property rights related to our products; changes in U.S., Canadian or foreign

patent laws; litigation in the pharmaceutical industry concerning the manufacture and supply of novel and generic versions of existing drugs; inability to protect our trademarks from

infringement; shareholders may be further diluted if we issue securities to raise capital; volatility of our share price; the actions of a significant shareholder; we do not currently intend to pay

dividends; our operating results may fluctuate significantly; our debt obligations will have priority over the Common Shares in the event of a liquidation, dissolution or winding up.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully

consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and

about material factors or assumptions applied in making forward-looking statements, may be found in the “Risk Factors” section of our Annual Information Form and in our Management’s

Discussion and Analysis of Operating Results and Financial Position for the year ended December 31, 2017, and elsewhere in our filings with Canadian securities regulators. Except as

required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf;

such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

2

Successfully

Executing New

Strategy delivering

diversification,

new high growth

products and

expanded near

term pipeline

KEY INVESTMENT HIGHLIGHTS

Profitable

Licensing

Business provides

strong cash flow

and solid financial

position to support

future growth

Company

Repositioned via 2017

Transformation Plan

committed to optimal

resource deployment

and advancing

new value catalysts

Diversified specialty pharmaceutical company with a robust

portfolio of commercial and pipeline products

3

GROWTH STRATEGY

Deliver reliablegrowth by

assembling aselect portfolio

of Rx products

Acquire or in-license Rx medicines

High novelty, high unmet needs

• TRULANCE and ESKATA

Strategic company and/or

portfolio acquisitions

Growth assets, proven capabilities,

substantial synergies

• Cardiome Canadian portfolio acquisition

Selectively invest in drug

development programs

Favourable risk/return profile

• MOB-015 and DTR-001

4

Global Product Portfolio

5

Canadian Commercial Platform Global Licensing Business

Dermatology

Hospital

Severe nodular acne

(Launched Jul. 2013)

Hyperkeratotic actinic keratosis

(Launched Feb. 2016)

Mild to moderate plaque psoriasis

(Launched Apr. 2016)

Topical antibiotic for impetigo in

patients 2 months and older

(Early 2018 launch)

Enzyme inhibitor for

hair growth

(Launched Jun. 2015)

Acute Coronary Syndrome

(Launched Jul. 2018)

Ultragesic

Severe nodular acne

(SUN Pharmaceuticals, U.S.)

High cholesterol

(Kowa Pharmaceuticals, U.S.)

Once-daily treatment of moderately

severe pain

(Vertical Pharmaceuticals, U.S.)


severe pain

(Aralez Pharmaceuticals, Canada)


severe pain

(Tecnofarma, Argentina)

Recent onset Atrial Fibrillation (AF)

(Launched Oct. 2018)

6

+30%YoY Organic Product

Revenue Growth in CND Segment

$5.7MDebt repaid with cash

generated from operations

Advancing New Revenue Streams

2 NDS submissions1 NOC

2 Product Launches

6 TransactionsSuccessful execution

across multiple growth pillars

2018 HIGHLIGHTS

ABSORICA

TRx stable since June

2018

Successfully

Executing New

Strategy delivering

diversification,

new high growth

products and

expanded near

term pipeline


Profitable

Licensing

Business provides

strong cash flow

and solid financial

position to support

future growth

Company


Transformation Plan


resource deployment

and advancing

new value catalysts



7

1Q19 Board of Directors 1Q19 Board of Directors Not for distribution - Strictly Confidential

CANADIANCOMMERCIAL BUSINESS

61%

CAGR

• Investment segment

• 5 marketed products

• 2 recent product launches

($USm)

0.4

1.9

2.9

4.1

5.3

6.9

2013 2014 2015 2016 2017 2018

Expanded Commercial Portfolio

Added five (5) highly innovative assets with clear advantages vs.

current standards of care

Near term assets ~24 months between transaction closing and first

commercial sale

+30% ORGANIC PRODUCT REVENUE GROWTH

8


DRIVING SUCCESS THROUGH COMMERCIAL

EXECUTION

EPURIS flagship

dermatology brand

continues to deliver from

new management initiatives

Prescribed Oral Isotretinoin in Ontario

Prescribed Oral Isotretinoin by Dermatologists#1

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1

MK

T S

ha

re C

ha

nge

EPURIS Quarter/Quarter TRx Share Change

9

SUCCESSFUL TRANSACTIONS ACROSS

MULTIPLE GROWTH PILLARS

JANUARY

LAUNCHEDOZANEX

in Canada

JANUARY

OUT-LICENSEDCIP isotretinoin

in Mexico

FEBRUARY

ACQUIREDCanadian rights

to TRULANCE

APRIL


to ESKATA

ACQUIREDCanadian business portfolio

of Cardiome Pharma

JULY

AMENDEDdistribution

agreement for

ABSORICA

SEPTEMBER


to MOB-015

MAY

2018 Q1 Q2 Q3

10

NEW PRODUCT GROWTH AND DIVERSIFICATION

Near Term Pipeline

Product Potential Indication Status

XYDALBA(dalbavancin)

TRULANCE(plecanatide)

ESKATA(hydrogen peroxide)

TREVYENT(treprostinil)

Acute bacterial skin and

skin structure infections

Approved in Canada,

launch in H2 2019

CIC and IBS-C NDS in 2018

Raised seborrheic keratoses NDS in 2018

Pulmonary arterial hypertension NDS in 2020

Development Pipeline

Product Potential Indication Status

MOB-015(terbinafine)

CF-101(piclidenoson)

DTR-001

Onychomycosis Phase III

Plaque psoriasis

& rheumatoid arthritisPhase III

Tattoo removal Pre-clinical

11

EXPANDED COMMERCIAL PORTFOLIO

BRINGING DIFFERENTIATED PRODUCTS TO MARKET

Acquired from Synergy Pharmaceuticals (NASDAQ:SGYP)

Indication

FDA-approved once-daily tablet for Irritable Bowel Syndrome with Constipation

("IBS-C") and Chronic Idiopathic Constipation ("CIC")

Advantage

• Strong and consistent efficacy and safety profile in 4,700 patients

• Differentiated tolerability profile

Market opportunity

• Serves unmet medical needs and significantly untreated patient population

• CDN $200m market for laxatives and antispasmodics (Rx and OTC)

Regulatory next step

Potential Health Canada Approval Q4 2019

12

DIFFERENTIATED PRODUCT PROFILE IN AN

UNADDRESSED MARKET

Trulance Offers A Differentiated

Profile vs Competition~ 9m Canadians With CIC/IBS-C

Constella ® Trulance

Pharmacology

Efficacy

Tolerability

Ease of Use

GC-C Agonist,

non-systemic

• Analog of E. coli

enterotoxin

Approved to treat CIC

and IBS-C in adults

• Short-term:

16 to 22% diarrhea

• Long-term:

>30% diarrhea

QD

30 minutes before

first meal

Approved to treat CIC and

IBS-C in adults

• First treatment to show

sustained efficacy and

meet more stringent

FDA endpoint

• ~ 5% diarrhea

• Nausea similar

to placebo

QD

With or without food

Any time of day

GC-C Agonist,

minimally absorbed

• Analog of natural GI

peptide uroguanylin

• pH controlled

> 95% currently

not treated

with branded

Rx therapies

Branded

Rx market

serving < 5%

Source IMS TRx June 2017 &

Statistics Canada Favours Trulance

13


Acquired from Aclaris Therapeutics (NASDAQ:ACRS)

Indication

FDA-approved product for raised seborrheic keratoses ("SKs") most commonly

known as age spots

Advantage

• First and only prescription product for raised SKs

• Non-invasive vs. current method of surgical procedures

Market opportunity

SKs affect 1 in 9 Canadians


Potential Health Canada Approval Q4 2019

BRINGING DIFFERENTIATED PRODUCTS TO MARKET14

SIGNIFICANT UNMET NEED IN SK TREATMENT

Jackson et al, Current Understanding of Seborrheic Keratosis: Prevalence, Etiology, Clinical Presentation, Diagnosis, and

Management, Journal of Drugs in Dermatology; 14:10, 2015; 1119-1125

Cryosurgery Treatment Options

Are Often Invasive Or Painful

A-101 Is An Appealing

Concept For SK Treatment

Treatment with Cryosurgery

3 Months Post Cryosurgery Treatment

1

1

BEFORE

AFTER

15

Acquired via Acquisition of Canadian Business Portfolio of Cardiome

Pharma Corp. (NASDAQ: CORV)

Indication

Rapid conversion of recent onset atrial fibrillation (AF) to sinus rhythm (SR),

for patients in both the surgical and non-surgical setting

Advantage

• Superior efficacy (head-to-head) vs only other IV product

• Faster effect

• Improved efficacy for cardioversion

Market opportunity

~180,000 patients present to hospital annually with AF

Product Status

Approved in Canada, launched October 2018


INNOVATIVE ACUTE CARE PRODUCTS BOLSTER ENTRY INTO HOSPITAL SEGMENT

16

Indication

Acute bacterial skin and skin structure infections (”ABSSSI”)

Advantage

First and only 30-minute, one-dose treatment option for the

treatment of ABSSSI

Market opportunity

~CDN$65m market

Regulatory

Health Canada approved in September 2018

Commercial Status

Launch H2 2019


INNOVATIVE ACUTE CARE PRODUCTS BOLSTER ENTRY INTO HOSPITAL SEGMENT

Acquired via Acquisition of Canadian Business Portfolio of Cardiome

Pharma Corp. (NASDAQ: CORV)

17

$58MIndication

Onychomycosis

Sources: Canadian Association of Psoriasis Patients; IQVIA

Annual market for

Onychomycosis

in Canada

Acquired Canadian marketing rights from

Moberg Pharma AB (OMX:MOB)


Phase III studies underway

Advantage

10% terbinafine with topical application to

avoid systematic side effects

PRODUCT CANDIDATE: MOB-015

NOVEL PRODUCT WITH NO DEVELOPMENT COSTS FOR CIPHER18

PRODUCT CANDIDATE: CF-101 (piclidenoson)

$2.5B

Indication

Plaque psoriasis and rheumatoid arthritis

Sources: Canadian Association of Psoriasis Patients; IQVIA

Canadians suffer from

psoriasis or rheumatoid arthritis

Annual market for biologics

1.5 million

Acquired Canadian marketing rights from

Can-Fite BioPharma (NYSE:CANF)

MOA

Highly selective A3 adenosine receptor (A3AR)

agonist affecting inflammatory production


Phase III studies underway for both indications

Advantage

Oral small molecule with safety and efficacy

provides pre-biologic line of therapy

NOVEL PRODUCT WITH NO DEVELOPMENT COSTS FOR CIPHER19

PRODUCT CANDIDATE: DTR-001 (pre-clinical)

Potential Indication

Topical treatment for the removal of tattoos

Acquired Worldwide marketing rights from

Dalhousie University

MOA

Ultra-low density liposomes encapsulating

bisphosphonates to enhance penetration for

targeted deliver to macrophages


Large animal proof of concept study complete;

results pending

Advancing pre-clinical activities toward IND in 2020

Advantage

Non-invasive tattoo removal option;

replace/augment laser removal

POTENTIALLY DISRUPTIVE TECHNOLOGY FOR A WORLD WIDE PROBLEM20

7% (4M)

18% (1M)

16% (40M)

13% (2M)

15% (5M)

13% (5M)

15% (1M)

12% (6M)

9% (14M)

8% (4M)

9% (6M)

6% (1M)

8% (3M)

10% (12M)

10% (3M)

7% (6M)

10% (6M)

9% (1M)

11% (118M)

48% (25M)

47% (4M)

46% (119M)

43% (8M)

43% (14M)

42% (17M)

41% (2M)

40% (22M)

37% (59M)

36% (19M)

36% (26M)

35% (3M)

33% (13M)

33% (39M)

33% (10M)

32% (29M)

30% (17M)

25% (1M)

38% (420M)

0% 10% 20% 30% 40% 50% 60%

Italy

Sweden

USA

Australia

Argentina

Spain

Denmark

United Kingdom

Brazil

France

Germany

Greece

South Africa

Russia

Canada

Mexico

Turkey

Israel

All

Est. Population with Tattoo/Regretting Tattoo

At least one tattoo At least one tattoo and regret

1. Dalia Research 2018, Global Tattoo Survey Results. 2. Dalia research findings applied to United Nations 2017, World Population Prospects.

TATTOO REMOVAL IN THE US IS IN DEMAND

21

• Many individuals have tattoos and it’s a growing trend

• Almost 3 in 10 Americans have at least 1 tattoo1

• Despite the growing trend, many individuals with tattoos regret getting one

• Almost 3 in 10 Americans (20M+) with tattoos regret getting one1

• Est. 100K+ tattoo removal procedures take place annually2

1. The Harris Poll #12, 2016. 2. Ho 2015, J Cutan Aesthet. 3. Harris Poll findings applied to US population from US Census Bureau, 2015.

2011 2015

21%Americans with ≥ 1

tattoo

29%Americans with ≥ 1

tattoo

14%Regret getting a

tattoo

23%Regret getting a

tattoo

100K+Tattoo removal

procedures2

20M+Individuals regret getting a tattoo3

AMERICAN TATTOO REGRET CONTINUES TO INCREASE

Successfully

Executing New

Strategy delivering

diversification,

new high growth

products and

expanded near

term pipeline


Profitable

Licensing

Business provides

strong cash flow

and solid financial

position to support

future growth

Company


Transformation Plan


resource deployment

and advancing

new value catalysts



22


$5.3

MATURE LICENSE BUSINESS

GLOBALLICENSING BUSINESS

Cash

Flow

Generation

• Cash flow segment

• 5 marketed products with

average royalty of 10%

• High-margin royalty revenue

• U.S., Canada and Latin America

($USm)

25.627.4 26.6 26.5

34.9

15.9

2013 2014 2015 2016 2017 2018

Source: IQVIA US NPA TRx data, Mar 2019

0

5,000

10,000

15,000

20,000

25,000

30,000

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

TRx

Vo

lum

e

ABSORICA TRx Volume

ABSORICA Monthly TRx Stabilized

Since June 2018

23

STRENGTHENING MATURE LICENSING BUSINESS

ABSORICA Amendment

Provides Sun with the ability to

launch new branded isotretinoin

products into the market prior to

the expiration of the agreement

in November 2022

No change in economics until

earlier of generic entry into the

market or November 2022

Royalty expanded to cover all

products launched under this

amendment until December 2024

Pre-Amendment

PostAmendment

Launch competing

productNO YES

Royalty on ABSORICA Mid teens No Change

Royalty coversABSORICA

only

ABSORICA &all new

Isotretinoinproducts

Royalty expires 2022 2024

24

FINANCIAL SNAPSHOT ($USM)

Strong Financial Position

Debt

$17.7m at December 31, 2018

with interest rate approx. 4.1%

Cash

$10.4m at December 31, 2018,

$11.3m in positive cash flow

2016 2017 2018

Total

Revenue$29.7 $40.3 $22.7

Licensing

Revenue$25.6 $35.0 $15.9

Product

Revenue$4.1 $5.3 $6.9

Adjusted

EBITDA$14.8 $26.6 $6.9

Leverage

Debt-to-EBITDA of ~3.8x

25

VALUE CATALYSTS THROUGH STRONG EXECUTION

CF-101 Psoriasis & RA Phase 3 results

ESKATA launch

XYDALBA launch

TRULANCE approval and launch

ESKATA approval

Potential NDS for TREVYENT

2019

2020

Achieve key milestones for

recent transactions

Deliver organic growth and

profitability in Canadian Business

Enterprise Focus on Execution

26

MOB-015 Phase 3 topline results

Optimize resource deployment

to strengthen EBITDAPotential IND for DTR-001

DTR-001 proof-of-concept results

INVESTMENT HIGHLIGHTS

Management

comprised of

industry veterans

who are delivering

on new growth

strategy

6 deals closed in

2018 bringing

Diversification to

the portfolio

Cash flow and

Adjusted EBITDA

positive

Diverse

product portfolio

& pipeline in varying

stages of

development

Multiple value

catalysts over

next 18 months27

MARKET FACTS

Market Facts

Analyst Coverage

Bloom Burton

Echelon Wealth

GMP Securities

Mackie Research

TD Bank

Market Cap

As of May 7th 2019: ~CDN $37m

Ticker / Listing: CPH (TSX)

Shares o/s: 26.9 million

52-week Range: $1.21 - $3.84

28

HIGHLY EXPERIENCED MANAGEMENT TEAM

Robert TessaroloPRESIDENT & CEO

• Joined in April 2017

• Built Actavis Canadian specialty pharma business from start-up to $190m in 4 years.

• Led integration of 3 major Actavis acquisitions – Warner Chilcott, Forest Lab & Allergan.

• Led US Inflammation & Immunology business at Celgene w/~$1B sales and 350+ employees.

Nadine JutlahINTERIM CFO

Chris WattersVP, CORPORATE

DEVELOPMENT

Dr. Diane Gajewczyk

VP, SCIENTIFIC &

MEDICAL AFFAIRS

29

• Joined in September 2016

• Experience in licensing and asset acquisitions, business acquisitions, debt and equity

financing, etc.

• Over 16 years of public company experience.

• Joined in June 2017

• Over 19 years of pharma experience, including leadership roles in business strategy,

marketing, sales, and business development.

• At GSK, led a 300-person sales and operations team delivering annual revenue of $700m.

• Led marketing and business development at Biovail; delivered a 4-year CAGR of 21%.

• Joined in June 2018

• Over 25 years of pharma experience, primarily focused on medical and scientific affairs.

• Extensive experience with Health Canada and FDA across many therapeutic categories.

• Previously spent 12 years in pharma R&D.

• PhD in Microbiology and Immunology.

• Joined in December 2018

• Over 20 years of pharma experience, primarily focused on commercial disciplines

• Extensive experience with sales and marketing across many therapeutic categories

• At EMD and Biogen led neurology businesses through substantial growth

Michael MilloyVP, COMMERICAL

OPERATIONS

BOARD OF DIRECTORS

Mark Beaudet - Chair

Robert Tessarolo – President & CEO

Dr. John Mull - Director

Arthur Deboeck - Director

Christian Godin - Director

Dr. Laurence Terrisse-Rulleau - Director

Harold Wolkin - Director

30

Craig Mull - Director

Documents

Robert Tessarolo President & Chief Executive Officer...Robert Tessarolo President & Chief Executive Officer May 2019 PRESENTATION FORWARD-LOOKING STATEMENTS This document includes