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PROBLEM

“Half of the $383 billion-worth patented drugs to be sold in the World this year will lose patent protection within five years.”

The Economist – Aug 6th 2009

• National Health Services demand lower costs

• Generic drug market share is on the rise.

• Drug manufacturing costs are becoming significant to the Pharma Industry.

The Patent Cliff:

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“The global Pharmaceutical industry has long been plagued by fears of the “patent cliff”—the looming expiration of patents on drugs accounting for about $90 billion in annual sales between 2010 and 2015” – www.marketminder.com - 22.07.2011

SOLUTION – HPE PLATFORMnon-animal derived, natural fermentation products

HPE-1 Chitin-Glucan ComplexHPE-1 Chitin-Glucan Complex (CGC)HPE-2 ExoPolysaccharide HPE-2 ExoPolysaccharide (EPS)High functionality excipients with tunable characteristics

Higher Stability

Better compactability

Higher binding capacity

Lower friability

Polyfunctionality

Lower raw materials dependence

Lower energy consumption327.01.2015

Semi-solid forms

Liquid forms

Solid forms

FIRST PRODUCT – HPE-1

HPE1 Features & Production Steps:Natural BiocompositeYeast FermentationExtractionWashing & ClarificationConcentrationDryingFinal Product - Dry powder

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HPE1- BINDER & FILLER EXCCIPIENT USED IN TABLET MANUFACTURE

•FILLERS - Used to dilute the API in the final mixture.

•BINDERS – Used to increase the hardness of tablets.

HPE-1 – COMPARATIVE STUDY.

5

PARAMETER HPE-1 AVICEL PH 302Particle Size (Average) 100 µm 100 µm

Bulk Density 0,92 0,46Tapped Density 1,03 0,70Hausner Ratio 0,88 (Excellent) 1,56 (very Bad)

Carr’s Index 11,53 34,28Compressibility Index 1,06 12,5

Mass Flow 142,78 70,62

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>100% HIGHER BULK DENSITY THAN THE BEST AVICEL

HPE-1 FINAL BULK DENSITY

6

HIGH BULK DENSITY - GOOD POWDER FLOWABILITY - INCREASES SPEED OF TABLETING MACHINE

COMPRESSION CYCLE

POWDER FLOWABILITY

POWDER FLOWABILITY IS A CRITICAL ISSUE IN TABLET PRODUCTION

POWDER FLOWABILITY IS A CRITICAL ISSUE IN TABLET PRODUCTION 7

INCREASING BULK DENSITY FROM 0,33 TO 0,45 > INCREASES SPEED MACHINE> HIGHER PRODUCTIVITY

BULK DENSITY IMPACT

AN INCREASE OF 33% IN POWDER BULK DENSITY ENABLE THE MANUFACTURER TO INCREASE OUTPUT BY 20%

AN INCREASE OF 33% IN POWDER BULK DENSITY ENABLE THE MANUFACTURER TO INCREASE OUTPUT BY 20% 8

HIGH PERFORMANCE EXCIPIENTS

The Excipients that will boost

the Industry bottom line927.01.2015

EXCIPIENT MARKET DYNAMICS

Source: BCC Research

The CAGR of the global excipient market has been in the order of 3-4%/Year, and immune to crisis effects. It is expected to keep

growing in the next 10 years

The CAGR of the global excipient market has been in the order of 3-4%/Year, and immune to crisis effects. It is expected to keep

growing in the next 10 years

Values in billion USD

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EXCIPIENT MARKET SIZE

Binders & Fillers – approx. 3,25 Billions USDBinders & Fillers – approx. 3,25 Billions USD

3%4%

5%

7%

13%

20%

48% *

*

*

Flavours & Colorants

*

**

Source: Frost & Sullivan

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SALES ENTRY STRATEGY

HPE1 pillsHPE1 pills

HPE1 - Binder & Filler for Direct Compression Production of solid pills outstanding bulk density

Largest market segment

Quickest time-to-market

High technical advantage

Largely exceeds current reference excipient’s features

HPE1 addresses the largest market segment and has a quick time to market.

HPE1 addresses the largest market segment and has a quick time to market.

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Industry •Formulation Services – Provide Problem Solving approach for problematic APIs, to be solved with HPE-1; • Develop Showcase for Blockbuster API with HPE-1;• Practical Courses, Brochures & Samples for industrials;DistributorsEstablish distribution agreements with regional operatorsScientific Community• Publish Excipient Performance Studies in Reference Scientific publications;• Participation in Specialty Fairs and Conferences;

MARKETING STRATEGY

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Pedro Vilarinho – CEO – 55 – PhD Industrial Management, 30 Yrs experience in Industry consulting

Filipe Aguiar, 35 – Graduate Biotechnology, 10 yrs Project Management experience

Filomena Freitas, 42 – PhD Biological Engineering– 14 Yrs experience in Microbial Fermentation

Luís Pedro Correia, 46 – Graduate Management – 17 Yrs Experience Accounting, Finance, Project Management

Fernando Cruz, 53 – MsC Biotechnology/MsC Pharmaceutical Technology – 22 Yrs Exerience in the Pharmaceutical Industry;

Inês Farinha – 26 - PhD student in Biotechnology – 4 Yrs experience in Biochemical Engineering and Fermentation;

TEAM

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