Nuvo Presentation 2017-03-13

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Investor
Presentation
March 13, 2017
nuvopharmaceuticals.com
TSX: NRI
Nuvo Pharmaceuticals Inc.
Click Harbour
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Certain information to be discussed during this corporate update contains forward-looking statements
within the meaning of applicable securities laws including, among others, statements concerning the
Companys 2017 objectives, the Companys strategies to achieve those objectives, as well as
statements with respect to Managements beliefs, plans, estimates, and intentions, and similar
statements concerning anticipated future events, results, circumstances, performance or expectations
that are not historical facts.
Such forward-looking statements reflect Managements current beliefs as of the date hereof and are
based on information currently available to Management.
These statements are not guarantees of future performance and are based on the Companys
estimates and assumptions and are subject to risks and uncertainties, including those described in the
Companys Management Discussion and Analysis regarding the 2016 annual audited financial
statements and news releases, which could cause the Companys actual results to differ materially
from the forward-looking statements to be discussed during this presentation.
Although the forward-looking information discussed during this presentation is based upon what
Management believes are reasonable assumptions, there can be no assurance that actual results will
be consistent with these forward-looking statements.
Except as required by applicable law, the Company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information, future events or
otherwise. 2
nuvopharmaceuticals.com | TSX: NRI

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Non-IFRS Measures
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EBITDA is a non-IFRS financial measure. The term EBITDA does not have any
standardized meaning under IFRS and therefore may not be comparable to similar
measures presented by other companies. The Company defines Adjusted EBITDA as net
income from continuing operations before net interest income, plus taxes, depreciation,
amortization and stock based compensation. Management believes Adjusted EBITDA is a
useful supplemental measure from which to determine the Companys ability to generate
cash available for working capital, capital expenditures and income taxes.

Nuvo
Pharmaceuticals
4
Nuvo Pharmaceuticals
Highlights
Growing revenue and EBITDA healthcare company

3 commercial products: Pennsaid 2%, Pennsaid, HLT Patch
Cash flow positive and profitable
2016 revenue grew 32% over 2015
Future revenue growth from Pennsaid 2% out-licensing in major markets

(i.e. Europe, Latin America, Asia)
Strong barriers to entry: long-life IP and long-term contracts
FDA licensed manufacturing facility located in Qubec
Strong balance sheet with $17.6 million of cash and short-term investments
and no debt (December 31, 2016)
M&A plan to acquire accretive products and businesses
5

Pennsaid 2%
FDA Approved and Selling in the U.S.
Topical and Transdermal Drug Delivery
Market 27M U.S. patients with osteoarthritis

Targeting U.S. NSAID market
Indication Treating the pain of osteoarthritis of the knee
Low systemic exposure to minimize side effects

Benefits Only twice per day dosed topical NSAID in U.S.
Metered dose dispenser
U.S. Commercial U.S. rights sold to Horizon Pharma in October

2014 for US$45 million
Status
Nuvo is Horizons exclusive long-term
manufacturer to 2029
Intellectual Multiple patents listed in the FDA Orange Book

Property continuing to 2030
Follow-on product to Pennsaid,
contains 2% diclofenac sodium 6

Commercial Partners Sell Our Approved
Products
Pennsaid / Pennsaid 2% HLT Patch

Pennsaid 2% U.S. Average Total Bottles
Dispensed Weekly Per Quarter
Average Total
Bottles/Week
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Horizon launch January 1, 2015
Source: IMS Health

Pennsaid 2% U.S. Average Total Bottles
Dispensed Weekly Per Month
Average Total
Bottles/Week
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Horizon launch January 1, 2015
Source: IMS Health

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Pennsaid 2%Master
Projected
title U.S.
styleGrowth
Sold in U.S. by Horizon Pharma (NASDAQ:HZNP), a US$2.7 billion market cap

U.S. biopharmaceutical company utilizing their Primary Care and
Rheumatology sales forces
Horizons largest and fastest growing Primary Care product

Horizon has publicly stated its belief that Pennsaid 2% will continue to grow
Pennsaid 2% is the only 2X per day topical NSAID available in the U.S.
Only topical NSAID competitor in the U.S. is Voltaren Gel

Requires 4X per day dosing
Went generic in 2016
Total sales of branded and generic versions are declining
No sales force promoting it
10

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Product SalesMaster title style
Gross Margin Contribution

CDN$ Thousands
Gross Margin on Gross Margin on Gross Margin on

8,000 Product Sales Product Sales Product Sales
Q4 - 57% Q1 - 57% Q2 - 57%
7,000
Gross Margin on
Gross Margin on Gross Margin on Product Sales
6,000 Q4 51%
Product Sales Product Sales
Q3 - 50% Q3 - 49%
5,000 Gross Margin on
Product Sales
Q1 - 35%
4,000 Gross Margin on
Product Sales
Q2 - 35%
3,000
2,000
1,000
Pennsaid 2% Pennsaid HLT Bulk

11
Click to
2016 Performance
edit Mastervs
title
2015
style
(January 1 to December 31)
CDN$ Millions
30
$27.0
26
22 $20.5
18
$13.5
14
10 $8.8 $8.9
$8.0
Total Revenue Gross Margin Adjusted EBITDA(1)

-2
2015 2016
(1) Adjusted 12
EBITDA is a non- GAAP measure defined on slide 3

Nuvo Pharmaceuticals Strategy to Increase
and Diversify Revenue Streams
Most of Nuvos revenue is being generated by

Pennsaid 2% in the U.S.
Create a global Pennsaid 2% franchise by
out-licensing to strong commercial partners
throughout the world
Acquire complementary strategic assets
through M&A to increase sales and profitability
13

Pennsaid 2%
International Out-Licensing Opportunities
Indication | Acute pain for sprains and strains
Available for out-licensing

Licensed, not yet launched
Launched 2014
Status | Many jurisdictions will base approval on existing U.S. FDA

approval
Phase 3 trial to support E.U., Canada and Australia approvals
commenced November 2016 14

$1.5B
Click toGlobal
edit Topicaltitle
Master Diclofenac
style Market
(USD in 2015)
Middle East
Asia (incl. Australia),
North Africa,[VALUE]
$130,000,000
South America,
$100,000,000
Europe,
$550,000,000
North America,
$635,000,000
15

Click toLicensing
Target edit Master
Agreement
title styleStructure
Modest upfront payments on signing/regulatory approval

(e.g. received $500,000 on Russian NovaMedica license)
Royalties based on net sales in the territory and/or
transfer pricing
Exclusive long-term manufacturing agreement
Licensee responsibility for obtaining and
maintaining regulatory approval utilizing
drug dossier provided by Nuvo
16

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Upcoming Pennsaid
Master title
2% style
Potential Milestones
International licensing transactions completed

Q1 Q4 2017
and announced
Announce results for German Phase 3 trial for

Q2 2017
ankle sprains
Product acquisitions(s) completed and

Q2 Q4 2017
announced
Regulatory approvals obtained and revenues
2018/2019 commence from international licensing and
product acquisition transactions
17

Manufacturing
18
Manufacturing
Facility in Varennes Qubec is FDA, Health Canada and MHRA approved
Manufactures Pennsaid, Pennsaid 2% and HLT Patch bulk for the global
market
26,000 square foot facility with 3 production lines, 2 compounding rooms
Fully integrated pharmaceutical manufacturer with in-house capabilities

including:
Quality Assurance
Quality Control (Including a Microbiology Laboratory)
Logistics & Purchasing
Experienced management team with an average of 20 years of

pharmaceutical manufacturing industry experience
Capacity utilization of commercial bottles is 35%* 19

*have ability to add a second shift when required
Manufacturing
Manufacturing Lines Compounding Unit Dose Manufacturing 20

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Financial Snapshot
Master title style
Stock Symbol TSX: NRI
Market Cap $62.9 million at

(March 13/17) $5.45 per share
Shares Outstanding 11.5 million
52 Week Share Price Low-High $5.00 - $8.35
Cash & Short-Term Investments $17.6 million

(December 31/16)
Debt NIL
Revenue $20.5 million (2015)

$27.0 million (2016)
Headquarters Mississauga, ON
21

Click to edit Master
Management Team title style
John London Over 30 years management experience and over 10 years of pharmaceutical experience
Chief Executive Officer Formerly Co-CEO of Nuvo Research since 2009, previously Nuvos Vice-Chairman since
2005
Graduate of the University of Western Ontario law school and holds a Masters of Law
Degree from University College London
Jesse Ledger Over 12 years of pharmaceutical business development

President Prior to joining Nuvo in April 2016, was Vice President, Business Development &
International Business of Tribute Pharmaceuticals Canada
Holds an honours Bachelor of Business Administration degree from Trent University
Mary-Jane Burkett 4 years of pharmaceutical experience

Vice President & CFO Chartered Professional Accountant and holds an honours Bachelor of Business
Administration degree from the Ivey Business School, University of Western Ontario
Tina Loucaides Over 12 years of legal experience in the biotechnology and pharmaceuticals area
Vice President, Secretary Nuvos General Counsel since 2008
& General Counsel Graduate of Osgoode Hall Law School and holds a Bachelor degree and a Master of
Science degree from the University of Toronto
Cally Lunetta Over 30 years of pharmaceutical manufacturing experience

Vice President, 15 years overseeing the Nuvo manufacturing facility
Manufacturing Holds a Bachelor of Science degree from McGill University
22

Click toofedit
Board Directors
Master title style
Dan Chicoine Jacques Messier

Chairman Chair of the Governance, Compensation &
(Executive Chairman & Interim CEO, Crescita Nominating Committee
Therapeutics Inc.) (Chief Executive Officer, Toronto Humane Society)
Formerly Co-CEO of Nuvo Research since 2009, DVM from the University of Montreal and an MBA
and Nuvos Chairman since 2005 from the University of Western Ontario
BComm from the University of Toronto and is
also a Chartered Professional Accountant
David Copeland Samira Sakhia

Lead Director Chair of the Audit Committee
(Former CFO of Magna International Inc. and (President, Knight Therapeutics Inc.)
CEO of the Cosma Group of Magna) MBA and a BComm from McGill University and is
BMath from the University of Waterloo and is also a Chartered Professional Accountant
also a Chartered Professional Accountant
Anthony Dobranowski John London

Director Director and CEO
(Former Vice President of Magna, and prior to Formerly Co-CEO of Nuvo Research since 2009,
that held various executive positions (Vice previously Nuvos Vice-Chairman since 2005
Chairman, President and CFO) at Tesma Graduate of the University of Western Ontario law
International Inc., a public subsidiary of school and holds a Masters of Law Degree from
University College London
Magna)
MBA from the University of Toronto and is also
a Chartered Professional Accountant
23

Nuvo Pharmaceuticals
Highlights
Growing revenue and EBITDA healthcare company

3 commercial products: Pennsaid 2%, Pennsaid, HLT Patch
Cash flow positive and profitable
2016 revenue grew 32% over 2015
Future revenue growth from Pennsaid 2% out-licensing in major markets

(i.e. Europe, Latin America, Asia)
Strong barriers to entry: long-life IP and long-term contracts
FDA licensed manufacturing facility located in Qubec
Strong balance sheet with $17.6 million of cash and short-term investments
and no debt (December 31, 2016)
M&A plan to acquire accretive products and businesses
24

To discuss opportunities contact:
Investor Relations
(905) 673-3627
ir@nuvopharm.com
nuvopharmaceuticals.com

Nuvo Presentation 2017-03-13

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Click to edit Master title style

March 13, 2017

nuvopharmaceuticals.com | TSX: NRI

nuvopharmaceuticals.com | TSX: NRI

Growing revenue and EBITDA healthcare company

Cash flow positive and profitable

2016 revenue grew 32% over 2015

Future revenue growth from Pennsaid 2% out-licensing in major markets

nuvopharmaceuticals.com | TSX: NRI

Topical and Transdermal Drug Delivery

Market 27M U.S. patients with osteoarthritis

Indication Treating the pain of osteoarthritis of the knee

Low systemic exposure to minimize side effects

U.S. Commercial U.S. rights sold to Horizon Pharma in October

Intellectual Multiple patents listed in the FDA Orange Book

nuvopharmaceuticals.com | TSX: NRI

Pennsaid / Pennsaid 2% HLT Patch

nuvopharmaceuticals.com | TSX: NRI

Source: IMS Health

nuvopharmaceuticals.com | TSX: NRI

Source: IMS Health

nuvopharmaceuticals.com | TSX: NRI

Sold in U.S. by Horizon Pharma (NASDAQ:HZNP), a US$2.7 billion market cap

Horizons largest and fastest growing Primary Care product

Only topical NSAID competitor in the U.S. is Voltaren Gel

nuvopharmaceuticals.com | TSX: NRI

Gross Margin Contribution

Gross Margin on Gross Margin on Gross Margin on

Pennsaid 2% Pennsaid HLT Bulk

Total Revenue Gross Margin Adjusted EBITDA(1)

nuvopharmaceuticals.com | TSX: NRI

Most of Nuvos revenue is being generated by

nuvopharmaceuticals.com | TSX: NRI

Indication | Acute pain for sprains and strains

Available for out-licensing

Status | Many jurisdictions will base approval on existing U.S. FDA

nuvopharmaceuticals.com | TSX: NRI

nuvopharmaceuticals.com | TSX: NRI

Modest upfront payments on signing/regulatory approval

nuvopharmaceuticals.com | TSX: NRI

International licensing transactions completed

Announce results for German Phase 3 trial for

Product acquisitions(s) completed and

nuvopharmaceuticals.com | TSX: NRI

Facility in Varennes Qubec is FDA, Health Canada and MHRA approved

26,000 square foot facility with 3 production lines, 2 compounding rooms

Fully integrated pharmaceutical manufacturer with in-house capabilities

Experienced management team with an average of 20 years of

Capacity utilization of commercial bottles is 35%* 19

nuvopharmaceuticals.com | TSX: NRI

Manufacturing Lines Compounding Unit Dose Manufacturing 20

nuvopharmaceuticals.com | TSX: NRI

Stock Symbol TSX: NRI

Market Cap $62.9 million at

Shares Outstanding 11.5 million

52 Week Share Price Low-High $5.00 - $8.35

Cash & Short-Term Investments $17.6 million

Revenue $20.5 million (2015)

nuvopharmaceuticals.com | TSX: NRI

Jesse Ledger Over 12 years of pharmaceutical business development

Mary-Jane Burkett 4 years of pharmaceutical experience

Cally Lunetta Over 30 years of pharmaceutical manufacturing experience

nuvopharmaceuticals.com | TSX: NRI

Dan Chicoine Jacques Messier