TSX - HLS
Investor Presentation
November 2021Poised for High Growth
TSX - HLS
Forward-looking statements
Certain statements in this presentation are “forward-looking statements”. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but
not always using words or phrases such as “project”, “forecast”, “target”, “expect”, “seek”, “endeavour”, “anticipate”, “plan”,
“estimate”, “believe”, “intend”, or stating that certain actions, events or results may, could, should, would, might or will occur or be
taken, or achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are
based on expectations, estimates and projections at the time the statements are made that involve a number of known and unknown
risks and uncertainties which would cause actual results or events to differ materially from those presently anticipated. A number of
factors could cause actual results, performance or achievements to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results,
performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in
this presentation. These factors should be considered carefully and prospective investors should not place undue reliance on these
forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what HLS
currently believes to be reasonable assumptions, HLS cannot assure prospective investors that actual results, performance or
achievements will be consistent with these forward-looking statements. Except as required by law, HLS does not have any obligation to
advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement, nor does it intend, or
assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances.
• All figures in USD unless otherwise noted.
• Historical financials are per HLS filed quarterly and annual statements
• Forward-looking financial estimates are converted at an exchange rate of 1 USD = 1.227 CAD and 1 CAD = 0.815 USD
2HLS THERAPEUTICS INC.
TSX - HLS
2020
HLS 2021: the year of Vascepa’s inflection point
3HLS THERAPEUTICS INC.
Clozaril
Trinomia
PERSERIS
MyCare Insite
US$56(C$71)
Royalty
US$350(C$430)
~500%
2025
Clozaril
Vascepa
Vascepa’s
Market Cap ~C$600M2TSX: HLS
1: 2020 are actual results and 2025 are estimates
2: as at 11.06.21
Royalty
Revenue1 (millions)
peak-year estimate
C$275-325MRevenue
C$100-130MAdjusted EBITDA
TSX - HLS
Who We Are
4HLS THERAPEUTICS INC.
Canadian-based, North American focused pharma company
US$56.1M2020 revenue
OPERATIONAL STRENGTH
US$24.1M2020 Adj EBITDA
7PRODUCTS
3 commercial stage
2 pre-launch
2 in review stage
+
royalty interest
2THERAPEUTIC
AREAS
Cardiovascular
&
Central Nervous
System
TSX - HLS
Vascepa: Next pillar in cardiovascular risk reduction
HLS THERAPEUTICS INC. 5
• Professor of Medicine at
Harvard Medical School
• Exec Director of Interventional
Cardiovascular Programs at Brigham
and Women’s Hospital Heart and
Vascular Center
• Global Principal Investigator and Steering
Committee Chair for REDUCE-IT
“This may be the biggest developmentin cardiovascular preventionsince statins.”1
Deepak L. Bhatt, MD, MPH
1 Brigham and Women’s REDUCE-IT results press release November 10, 2018
20 international medical societies recommend the use of Vascepa
TSX - HLS
Also shown to reduce plaque in arteries2
Vascepa: REDUCE-IT trial’s Blockbuster clinical results
6HLS THERAPEUTICS INC.
8,200 PATIENTS
11 COUNTRIES
5-YEAR TRIAL
Trial design Trial results
Reduction in Major
Adverse CV1 Events
25%
CV1
DeathHeart Attack
Stroke
28%
Primary endpoint Significant reductions on secondary endpoints
1 CV = Cardiovascular
2 European Heart Journal, Volume 41, Issue 40, 21 October 2020, Pages 3925–3932
35%
Surgical bypass
31%20%
TSX - HLS
Vascepa: Characteristics of a category leader
7HLS THERAPEUTICS INC.
The Problem
Vascepaeffectively and safely lowers CV events by
30%
Unmet Need The Solution
#1 Killer globally is cardiovascular disease
LDL-related risk
Residualrisk
up to 2M Canadians in-label >90% private payer coverage*
*plans covering >90% privately insured Canadians (in-label) eligible for reimbursement at 03.31.21
Long runway: 8-years of data exclusivity. Patent protection into the 2030’s
TSX - HLS
>3x increase in sales reps and >4x increase in coverage
Salesforce expansion: Pfizer co-promotion partner
HLS THERAPEUTICS INC. 8
Validation of
Vascepa
from a well-respected
partner with a strong
reputation and
commitment to the CV
space
Provided November 2021, as part of an oral presentation and is qualified by such, contains forward-looking
statements, actual results may vary materially; HLS disclaims any duty to update.
Initial Physician Coverage
Physician
Coverage with
Salesforce
Expansion
TSX - HLS
0
100
200
300
400
500
600
700
21-Feb-20
06-Mar-20
20-Mar-20
03-Apr-20
17-Apr-20
01-May-20
15-May-20
29-May-20
12-Jun-20
26-Jun-20
10-Jul-20
24-Jul-20
07-Aug-20
21-Aug-20
04-Sep-20
18-Sep-20
02-Oct-20
16-Oct-20
30-Oct-20
13-Nov-20
27-Nov-20
11-Dec-20
25-Dec-20
08-Jan-21
22-Jan-21
05-Feb-21
19-Feb-21
05-Mar-21
19-Mar-21
02-Apr-21
16-Apr-21
30-Apr-21
14-May-21
28-May-21
11-Jun-21
25-Jun-21
09-Jul-21
23-Jul-21
06-Aug-21
20-Aug-21
03-Sep-21
17-Sep-21
01-Oct-21
Vascepa: prescription momentum growing…
HLS THERAPEUTICS INC. 9
Weekly script data since launch
Source: Weekly Rx, 2020 - 2021, IQVIA
Provided November 2021, as part of an oral presentation and is qualified by such, contains forward-looking
statements, actual results may vary materially; HLS disclaims any duty to update.
…fueled by growth catalysts
Pre
scri
pti
ons
Private market access• >90% eligible for coverage
Inclusion in Canadian medical society guidelines• Canadian Cardiovascular Society,
Heart & Stroke, Thrombosis Canada
COVID-19 restrictions lifting• Easing across Canada
Salesforce expansion• Pfizer agreement effective Q3 2021
Public market access• Expected 18-24 months post-launch
TSX - HLS
Strong consistent cash flow
Clozaril: Canadian Market Leader
10
Schizophrenia
Do not respond to first line treatment
Clozaril can be life changing,
often the only and last recourse
for patients not responding to first
line treatment
Response rate
1% of population
1/3 patients
LIFE CHANGING
80%
HLS THERAPEUTICS INC.
WHO essential medicine
US$44M(~C$55M)
2020 revenue
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Growing franchise in a mature Canadian market
CSAN: Patient Portal is our competitive advantage for Clozaril in Canada
11
25 dedicated resources
Sales reps
Nurses
Physician consultants
24/7 availability
50,000 calls to
customers/
year CSAN: Clozaril Support and Assistance Network
HLS THERAPEUTICS INC.
Every weekFollow-up with
1,300 patients
to ensure
compliance
200,000blood
tests/year
55%market
share
TSX - HLS
Accepted for review by HC
Approved by HC Target LaunchTBD
C$15-20M annual revenue potential (US$11-15M)
PERSERIS: Synergistic to
CNS/psychiatry franchise
12HLS THERAPEUTICS INC.
Exclusive Canadian rights
First once-monthly risperidone long-acting injectable (LAI)
Indicated for the treatment of schizophrenia in adults
Compelling positioning and well-defined marketing plan
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42020 2021
P R E - L A U N C H
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Filed with HC HC Response Target LaunchTBD
C$10M annual revenue potential (US$7.5M)
MyCare: Synergistic to CNS/psychiatry
franchise
13HLS THERAPEUTICS INC.
Exclusive Canadian distributor
Diagnosing (Dx) technology can measure the level
of six antipsychotic drugs in patients’ blood
No product of this type currently exists in Canada
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42020 2021
P R E - L A U N C H
TSX - HLS
4th product approval expected in 2022
Royalty Portfolio: cash flow to support growth
14HLS THERAPEUTICS INC.
Products marketed by global blue-
chip healthcare organizations
Increased diversification
Four non-correlated products
Diversifies revenue, AEBITDA & cash flow
0
0.5
1
1.5
2
2.5
Q4'20 Q1'21 Q2'21 Q3'21
Royalty Revenue ($millions)
TSX - HLS
Stable cash-flowing base business with organic growth drivers
HLS THERAPEUTICS INC. 15
Sales momentum building for potential blockbuster, Vascepa
1: net income (loss) adjusted for (i) “stock-based compensation”, (ii) “amortization and depreciation”, (iii) “acquisition and transaction costs”, (iv)
“finance and related costs”, and (v) “income tax expense (recovery)”
(USD$
millions)
FY
2019
FY
2020
YTD
2020
YTD 2021
% change
Q3
2020
Q3 2021
%change
REVENUE(USD$
millions)
Product 44.6 45.7 33.8 37.4 +11% 11.4 12.8 +12%
Royalty 9.6 10.5 5.8 6.9 +19% 1.8 2.2 +22%
Total 54.2 56.1 39.6 44.3 +12% 13.1 15.1 +15%
ADJUSTED EBITDA1
(USD$ millions)
31.6 24.1 15.4 20.2 +31% 4.5 6.9 +53%
Q3’21 Vascepa revenue +33%
sequentially vs Q2’21
Clozaril Canada patients +3%
annual increase in Q3’21
Q3’21 Adj. EBITDA +53%
vs Q3’20
YTD’21 Adj. EBITDA +31%
vs YTD’20
YTD’21 cash flow from operations $12.5M vs $3.5M YTD’20
Numbers in columns may not add-up due to rounding to one decimal place
TSX - HLS
Strong balance sheet
16
(US$ millions) At Dec 31, 2020 At Sept 30, 2021
Cash and Cash Equivalents 20.6 21.7
Senior Secured Term Loan 107.6 100.1
Net Debt (Term Loan less Cash) 87.0 78.4
At Dec 31, 2020 At Sept 30, 2021
Shares Outstanding (‘000’s) 31,822 32,425
SUMMARY BALANCE SHEET & CAPITALIZATION
HLS THERAPEUTICS INC.
US$70M debt expansion facility
Preliminary short-form base shelf prospectus filed
Quarterly dividend
NCIB
Market Cap at 11.05.21: ~CDN $600M
TSX - HLS
Veteran specialty pharma leadership team
HLS THERAPEUTICS INC. 17
William Wells | Executive ChairmanFormer CEO and Director of Biovail
Gilbert Godin | CEO & DirectorCo-Founder of HLS. Former Executive Vice President and COO of Biovail, CEO of Duchesnay (USA),
President of MDS Pharma (USA); VP at Schering-Plough (FR) and L’Oreal
Tim Hendrickson | Chief Financial OfficerFormerly of Cubist Pharmaceuticals; Procter & Gamble; P&G Pharmaceuticals;
and Warner Chilcott
Dr. Hemanth Varghese, Phd | Senior VP Strategy and OperationsFormer senior executive with Valeant and Endo in Business Development and in Operations, prior to
which he was VP of Business Development for Biovail
Ryan Lennox | Senior VP, Legal, HR and ComplianceFormer Senior Counsel at Amgen Inc., where he was responsible for all of the legal affairs of their
Canadian affiliate
Sanjiv Sharma | Chief Commercial OfficerFormer SVP Worldwide Commercial & Country Head-US for NicOx; and VP Commercial for Duchesnay
USA, Biovail, Aventis
Dr. Jason Gross | VP, Scientific AffairsFormer VP of Scientific and Medical Affairs at Crown, MDS Capital, and Zenith Goldline,
ex-National Institutes of Health (NIH) and Food & Drug Administration (FDA)
Patricia Perry| VP, Human ResourcesTwenty years in human resources management, in administration and operations in various contexts,
including manufacturing, retail, educational and health care institutions.
William Wells | Executive ChairmanCurrent or former Board roles with: Biovail/Valeant, Medgenesis, ACADIA Pharmaceuticals, EnerCare
and Evizone
Gilbert Godin| DirectorHLS Co-Founder and Chief Executive Officer
J. Spencer Lanthier | Lead DirectorFormer Chairman and CEO of KPMG Canada, formerly board member of TMX Group, Torstar Corp.,
Biovail Corp., Rona Inc., Ellis-Don Inc.
Yvon Bastien | Independent DirectorFormer CEO of Sanofi Aventis in Canada, formerly held executive positions with Eli Lilly, IMS Canada,
Delta Healthcare
Norma Beauchamp| Independent DirectorCorporate director with 30+ years of health care experience in corporate and non-profit organizations
Laura Brege| Independent DirectorExtensive experience in the life sciences industry, as both an executive and a board member
Don DeGolyer| Independent DirectorPresident and CEO of Vertice Pharma, formerly COO with ENDO Pharmaceuticals and Sandoz North
America
Greg Gubitz | DirectorCo-Founder and founding CEO of HLS. Former Board roles with: biOasis, Telesta, Drug Royalty and
Imperial Plastech
Rodney Hill| Independent DirectorChief Risk Officer with OMERS
John Welborn| Independent DirectorManaging Director, Co-Chief Investment Officer for Stadium Capital Management
MANAGEMENT BOARD
TSX - HLS 18HLS THERAPEUTICS INC.
Strength
Opportunity
Execution
Strong cash flow and balance sheet
Dividend: C$0.20 per share per year
Experienced leadership
Clear value creating strategyCash flow/Growth/Explosive growth
4 commercial-stage assets
3 assets in pre-approval stage
Vascepa: C$275-325M sales estimate
Scalable platforms in CV & CNS
Robust deal flow for acquisitions
Strength
Opportunity
Execution
Strong cash flow and balance sheet
Dividend: C$0.20 per share per year
Experienced leadership
3 commercial-stage products
2 pre-launch products
2 products under review
Diversified royalty portfolio
Vascepa: C$275-325M sales estimate
Scalable platforms in CV & CNS
Robust deal flow for acquisitions
2020
US$56(C$71)
US$350(C$430)
~500%
2025
TSX - HLS
Poised for High Growth
APPENDIX
TSX - HLS
Diabetes Only
27%
CVD Only
23%
CVD & Diabetes
21%
No Diabetes or CVD
29%
Up to 2M patients in-label
HLS THERAPEUTICS INC. 20
All Statin Patients
Relative Share of REDUCE-IT
population
Diabetes 27%High Risk: Primary
Prevention:
CVD 23% Very High Risk: Secondary
prevention:Both 21%
Neither 29%Not included in
REDUCE-IT trial
CVD only + CVD with Diabetes = Up to 1.2MCVD only + CVD with Diabetes + Diabetes and risk factor = Up to 2M
https://www150.statcan.gc.ca/n1/pub/82-003-x/2016001/article/14305/tbl/tbl02-eng.htm
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2989357/
https://www150.statcan.gc.ca/n1/pub/82-625-x/2018001/article/54982-eng.htm
REDUCE-IT studied statin-treated patients with elevated triglycerides with established CVD (Very High Risk), or with diabetes and one or more CV risk factor(s) (High Risk)
Source:
2.8M Canadian Statin Patients
756,000812,000
588,000 644,000
Patients in-label
TSX - HLS
COMPLIANCE/ADHERENCE IMPROVEMENT
Patients at risk following an initial CV
event are poly medicated (7-8 drugs).
Pill burden is biggest reason for
non-adherence to treatment
C$15-20M annual revenue potential (US$11-15M)
Trinomia: Synergistic to cardiovascular franchise
21
Aspirin(anti-coagulant)
SECONDARY PREVENTION
OF CARDIOVASCULAR
EVENTS
TRI-COMBO CAPSULE “Polypill”
Atorvastatin(lipid lowering)
Ramipril(anti-hypertensive)
INDICATION DIFFERENTIATION
HLS THERAPEUTICS INC.
Exclusive Canadian Rights
Clinical Outcome / Regulatory Path
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22020 2021 2022
Notice of Deficiency from Health Canada
PRE-REGISTRATION