Harnessing Biodiversity for Peptide Therapeutics

1. Harnessing Biodiversity for Peptide Therapeutics Dr Paul Watt, CEO Mr Nick Woolf, CFO & VP Corporate Development 19 June 2013

2. Disclaimer The purpose of the presentation is to provide an update of the business of Phylogica Limited (ASX:PYC) [‘Phylogica’]. These slides have been prepared as a presentation aid only and the information they contain may require further explanation and/or clarification. Accordingly, these slides and the information they contain should be read in conjunction with past and future announcements made by Phylogica and should not be relied upon as an independent source of information. Please contact Phylogica and/or refer to the Company's website for further information. The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside Phylogica’s control. Important factors that could cause actual results to differ materially from assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to assumptions made and Phylogica’s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution. This presentation should not be relied on as a recommendation or forecast by Phylogica. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

3. About Phylogica • Listed on Australian Stock Exchange in 2005 • Provide peptide drug discovery services to the Pharmaceutical industry • Own unique proprietary class of peptide therapeutics (Phylomers®) • Broad IP estate with multiple granted patents from 11 patent families • ‘Discovery Alliance’ business model • Alliances with Roche/Genentech, MedImmune, Pfizer and Janssen 3 2

4. Top-20 shareholders 4 2

5. Leadership and experience • Dr Douglas Wilson - Chairman • Former Senior Vice-President, Medicine for BoehringerIngelheim • Overseen multiple drugs at all phases of development • Overseen many drugs successfully to the market in the USA • Dr Paul Watt – CEO • Commonwealth overseas scholarship recipient; Doctorate at the University of Oxford, • >45 publications, including several high-impact papers, inventor on 20 patent families • Post Doctoral appointments at Oxford and Harvard Universities • Over 10 years commercial biotech experience • Mr Nick Woolf – CFO & VP Corporate Development • 18 years experience in biotech industry, equity research & investment banking • Previously Chief Business Officer of Oxford BioMedica plc in the UK • Former Head of European Biotech Equity Research at ABN Amro • Qualified accountant and MA in Chemistry from the University of Oxford • Dr Richard Hopkins – COO & VP Research & Development • Doctorate from Murdoch University, Western Australia • Over 10 years commercial biotech experience • Overseen development of the Phylomer platform. • Over 20 publications and inventor on 13 patent families

6. Phylomers derive from parts of biodiverse proteins • Encoded from >35 biodiversegenomes derived from environments such volcanoes, geysers and undersea vents • Phylomer libraries contain >400 billion distinct peptide sequences • Pre-selected by evolution to allow survival, such as thermal stability • Dominant intellectual property over entire drug class Watt PM (2006) Nature Biotechnology 24 (2):177-83

7. Sourced from different evolutionary species • Worlds richest source of diverse natural secondary and tertiary structures Watt PM (2006), Nature Biotechnology, Vol 24 (2):177-83 7

8. Uniquely integrated capabilities of Phylomer platform • Phylogica’s unique discovery platform: • Discover and validate new therapeutic targets found inside cells (Phenomica) • Develop therapeutic peptide leads against such targets • Deliver therapeutic cargoes into cells with cell penetrating peptides Citron (Citron Homology Domain)

9. Cell penetrating Phylomers: gaining access to intracellular targets Phylomers can expand the druggable landscape by >10-fold!!

10. Rapid growth in peptide drug market • Peptides are one of fastest growing drug classes • 60 marketed peptides represent $13 billion market • Peptide market growing twice as fast as small molecules • New technologies are addressing traditional challenges for peptide development (eg: short half-life, poor stability) • Growing Pharmainterest: ~140 peptides in clinical development • Unmet need for therapeutic peptides against new target classes Chemical & Engineering News May 30, 2011 Improving Peptides: Small firms develop better peptide drug candidates to expand this pharmaceutical class and attract big pharma partners (picture of Phylomer)

11. Demand for novel approaches to peptide drug discovery Find new structures within proteins selected by evolution for diversity, stability and biological compatibility Limited success with conventional approaches has increased demand for novel approaches Peers Design peptide inhibitors that mimic known natural interfaces (e.g. Kai, Aileron, Trimeris) Guess peptide sequence from random combinatorial libraries (e.g. Affymax, Dyax, Isogenica, Ra, Bicycle, Peptidream)

12. Humans Discovery Phylogica Co-development/Partner Humans Focus on near-term revenue • Fee-for-service screening against third party targets • Building long-term value through milestones and royalties • Increasing deal economics and share of down-stream value • Surplus cash flow funding platform enhancements and in-house R&D • Monetizing in-house Phylomers (eg: skincare cosmetics with Le Métier de Beauté) Co-development path

13. Collaborations and commercial partners validate Phylogica’s Phylomers • Janssen (Johnson & Johnson) • Collaboration to discover cell-penetrating peptidesin Dec 2011 • Multi-product agreement with minimum of 18 months research funding • Collaboration expanded in Jan 2013 • Pfizer • Collaboration to discover peptide vaccinesin Dec 2010 • Milestone payments triggered in Dec 2011 and May 2012 • Total deal value of up to US$135M & royaltieson worldwide sales • MedImmune (AstraZeneca) • Collaboration to discover antibiotic peptidesin Aug 2010 • Progressed to final stage of research plan in Nov 2011 • Total deal value of up to US$100M & royalties on worldwide sales • Roche/Genentech • Collaboration to discover brain delivery peptides in Dec 2009 • Expanded to discover peptides that cross blood-brain barrierin May 2011 • Le Métier de Beauté • License to commercialize a skin-repair peptide in cosmetic products in Sep 2012 Scope of deals underscores breadth of Phylomer platform 3

14. Extensive pipeline of partnering opportunities Discussions ongoing with prospective or existing partners on new deals Increasing Pharma interest G protein-coupled receptors are one of the largest classes of drug targets. These receptors are key regulators of cell biology, but some have been challenging to hit with conventional small molecule or antibody drugs because of their complex biological shapes 14

15. Three overlapping strategic phases Technological Enhancements In-house Pipeline Revenue Generation • Partnering: generatenear-term revenue from discovery alliances • Technological leadership: enhance platform through value-adding upgrades • In-house drug development: build value by advancing internal products 2009 2011 2013

16. Anticipated technology milestones • Each milestone provides value-adding enhancement to Phylomer platform • - Boosts our attractiveness to discovery alliance partners and potential acquirers

17. Comparable company: Peptidream Inc. • Raised $50m in IPO at ¥2,500 giving market cap of $330m • Trading on Mothers Board in Tokyo – 1st day of trade 11th June 2013 • Closing price after three days of ¥ 13,010 giving market cap of $1.7bn ¥

18. Phylogica vs. Peptidream • PeptiDream's Peptide Discovery Platform System enables incorporation of modified unnatural amino acids into peptide libraries • PeptiDreamhas active discovery deals with nine companies, including Novartis, Ipsen, MedImmune and Amgen – deals are of similar size and economics to PYC’s deals *at market close 17 June 2013 18 2

19. Summary • Assembled world-class peptide drug discovery platform – enormous value • Patent protection on worlds largest source of natural peptides and screening technologies • Successfully validated ‘Alliance Model’ with four blue chip partners • Anticipate near-term revenue growth and cash sustainability • Building value through technical enhancements and in-house R&D • Peer comparison provides first time indication of potential value

20. Contact Details Dr. Paul Watt Chief Executive Officer Tel: +61 8 9489 7777 Fax: +61 8 9489 7700 Mobile: +61 421 550 213 paulw@phylogica.com Nick Woolf CFO, VP Corporate Development Tel: +61 8 9489 7777 Fax: +61 8 9489 7700 Mobile: +61 417 986 005 nwoolf@phylogica.com www.phylogica.com