Multi-Target Protein Kinase Modulators derived from Humulus Lupulus

‘Hops’

Certain statements made in this presentation are forward-looking such as those, among others, relating to the development, safety and efficacy of therapeutic drugs and potential applications for these products. The Company undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof

Focus on pharmacophores with history of safe use Target small molecules modulating key metabolic networks

Initiating safety pharm/tox for IND in Type 2 Diabetes

Business Model: conduct Phase 1through 2a POC clinical trials and seek a partner

Pre-clinical and clinical evidence supporting activity and safety

Company Highlights

4Q2009: $20M Series A investment by partner, Alticor

Modified phytochemical extracts demonstrate selective protein kinase modulation

Background

Large patent portfolio protecting our position

1st Generation Product : R200 (Tetrahydro-iso-acids)Mixture of 3 chemically distinct analogsPotent anti-inflammatory activity

KDT500: most potent analog

Intellectual Property PortfolioR200

>140 patents & applications worldwideMethods of Treatment

IndicationsDiabetes/Metabolic Syndrome

CompositionPurification/Isolation Process

InflammationArthritis

R= Isobutyl KDT500

R= sec-butyl

1st Generation Product:Tetrahydro-iso-a-acids Family (R200)

R= isopropyl

R200 Safety

Cell free In Vitro Animal HumanMulti-target selective modulator

Gini Coefficientcalculation demonstrates highkinase specificity

Cytochrome p450 Studies- IC50 (ug/ml)-indicates CYP450 2C9 is the route ofmetabolism

Extensive R200Toxicology studies in animal models

Bioavailable in humans (orally absorbed within one hour & persists in serum for over 8 hours)Does not decrease prostacyclin formation indicating CV safetyNo elevation of liver enzymesNo elevation of fecal Calprotectin indicatingGI safety

Safe to GI system when orally consumed at therapeutic doses

Combined U.S. sales of glitazones alone in 2007 were

> $6.6 Billion

>20 million people in the U.S. currently have Type 2 Diabetes

Approximately 90-95% of all diabetes cases in the U.S. are

Type 2

Type 2 Diabetes Market

Unmet Needs in Diabetes

Therapeutic needs:Multiple effects not achieved by single agent

(e.g. anti-hyperglycemic, anti-obesity, hypertriglyceridemia)

Metformin: GI effects, lactic acidosis

Glitazones: weight gain, edema, liver safetyInsulin: injectable, hypoglycemia, weight gain

Undesired side effects/patient compliance

Secretagogues: weight gain, hypoglycemia, tid dosing

DiabetesR200 comparable to Metformin

Glucose Reductionmg/ml

Insulin Reductionng/ml

db/db Mouse Type 2 Diabetes model

Treatment: 100 mg/kg/ day7 day treatment

R200 Metformin

R200 Prevents High Fat Diet Induced ObesityHF

LF

HF + R200

Diet ShiftB

ody

wei

ght (

g)

weeks

pre post shift

HF to HF

HF to HF + R200HF to

HF+R200

HF+R200 to HF

HF + R200 to HF

HF + R200 to HF + R200

R200 Reduces Fat Storage in Miceon a Westernized High Fat Diet

Liver Weight (g) Subcutaneous fat (g) Epididymal fat(g)

HF to HF HF to HF+R200 HF+R200 to HF+R200 HF+R200 to HF

R200 Insulin EffectsFasting Glucose

Fasting Insulin

Insulin Sensitivity in High Fat diet induced Obesity Mouse model

p< 0.05

HF LF HF+R200

p<0.01

p<0.05

R200 Diabetes

Cell free In Vitro Animal MiscMulti-target selective kinase modulator

Inhibits P70S6K kinaseactivity and proteinphosphorylation in monocytes and macrophages

Stimulates the secretion of GLP-1in intestinal L-cells(NCI-H716)

Improves insulin/glucose dynamicsin animal model ofdiabetes

Demonstrated QSARamong various R200 analogs; KDT 500 mostactive

Non-competitive ATP binding to kinases Indicates allosteric modulationIncreases activity ofIGF1R receptor Several foldIncreases activity of AMPK

Reduces inflammation/glucose stimulatedadherence of mono-cytes to endothelial cells

Improves insulin sensitivity in 3T3L1adipocytesIncreases adipocyte function in models of lipid accumulation and adiponectin secretionafter inflammatory stimulation

&Dramatically reducesweight gain in high fatdiet induced obesity model

Produces weight /fat loss in HF obese mice

Reduces fat accumulation in HF mice

R200 Competitive AdvantagesMultiple actions

Decrease insulin sensitivity, fasting glucose, and insulinlevels

Excellent safety profile in humans

Large impact on weight gain (in high fat rodent study)Improves lipid values

Orally Bioavailable

Does not decrease prostacyclin formation in humans,indicating CV safety

No elevation of liver enzymes in humans ingesting therapeutic dosesNo elevation of fecal calprotectin in humans ingesting

therapeutic doses indicating GI safetySafe to GI system when orally consumed at therapeutic doses

S

Product PipelinePre-clinicalDevelopment

Discovery &Candidate Selection IND Phase 1

Mid-shaded arrows illustrate pipeline through 1H2011

KDT 500 (Type 2 Diabetes)

KDT 500 (Inflammation)

KDT 600 (Obesity)

New Candidates

Development Plan2010 cGMP manufacture of KDT500

1H2011

FDA pre-IND meetingSafety pharmacology and GLP toxicology

IND submission Initiate POC (Type 2 Diabetes)

in long-term canine and rodent studies

2H2011 Phase 1 SAD (in healthy subjects)Phase 1 MAD (in healthy subjects)

1H2012 Phase 2a POC (in early diabetic subjects)

Experienced Management & Advisory TeamJeffrey Bland, Ph.D.

President and CEOMetagenics, Healthcomm InternationalLinus Pauling Institute

Matthew Tripp, Ph.D.Sr. V.P. R&D

Neile Grayson, Ph.D.V.P. Drug Development

Lincoln Bouillon, MBABusiness Manager

John Kozarich, Ph.D.SAB Member

Benjamin Cravatt, Ph.D.SAB Member

Paul Schimmel, Ph.DSenior Advisor and Board Member

Metagenics, KelloggPhillip Morris Biotechnology

Sonus Pharmaceuticals, NeoRxMallinckrodt, NIH

MetagenicsFunctional Medicine Res. Center

ActivX Biosciences, Merck Research Labs, Scripps Research Institute, Yale School of Medicine

Scripps Research Institute

Scripps Research Institute, Sirtris, Alnvlam, Repligen, Momenta, Cubist