The Need For Approved Pediatric Medications

Peter R. Joiner, CEO May 8, 2012

Executive Summary

Specialty Pharma Company with focus on pediatric medicines Founders have expertise in starting and exiting Pediatric Companies
Alliant pharmaceuticals sold to Sciele CSO recognized leading expert in 505(b)(2) application process

Differentiated, high value pipeline with near term product revenues in 2015, IP in place

2009 Madeira Therapeutics. All rights reserved.

Non-Confidential Presentation

The Problem-Pediatrics Profound need for pediatric tested Pharma products EU and USA >70% of drugs prescribed for children are not FDA approved Most approved drugs are in a few categories Off-label use of pediatric medicines, an accepted practice

2009 Madeira Therapeutics. All rights reserved.

Non-Confidential Presentation

The Initial Pipeline

MT-001 Liquid Statin: Peak sales $300M in $2.1B market*

MT-003 Liquid Analgesic: Peak sales $64M in $250M market*

*3rd party verification - Matson-Jack verified sales projections

4 Non-Confidential Presentation

2009 Madeira Therapeutics. All rights reserved.

The Problem-Pediatrics

2009 Madeira Therapeutics. All rights reserved.

Non-Confidential Presentation

Competition
Few companies focused on branded pediatric medicine
Competitive environment is less intense than other medical specialties

Allergy Head AntiAsthma Respiratory ADHD Lice infectives Neuro

HyperCholesterol Diabetes tension Pain

Madeira Shionogi Verus Arbor Nextwave

Source: GAO, Pediatric Drug Research- Studies Conducted under Best Pharmaceuticals for Children Act, March 2007; GAO-07-557.

2009 Madeira Therapeutics. All rights reserved.

Non-Confidential Presentation

Partners and Collaborators

Pediatric Trials Network (Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD) The Network has agreed to do our clinical trial of the statin

NIH has awarded them a $95 million contract

Members
Duke Children's Hospital Children's Mercy Hospital in Kansas City

the University of California, San Diego

Children's National Medical Center in Washington D.C. The Children's Hospital of Philadelphia Wake Forest University Baptist Medical Center in Winston-Salem, NC

Carilion Clinic Children's Hospital

2009 Madeira Therapeutics. All rights reserved. 7 Non-Confidential Presentation

The Value in 505(b)(2) Drugs

Acquisition by Larger Specialty Pharmaceutical Company Sciele bought Alliant in 2007 for $109M (2.1X trailing 12 months revenue) Adams Respiratory acquired at the end of 2007 by Reckitt Benckiser for $2.3 billion in cash (5.5X trailing 12 months revenue) Acquisition By Big Pharma Verus sold asthma products in 2007 for $30M plus $280M earn-out potential. Company started 2002, Series A $98M Sciele acquired by Shionogi for $1.1 billion (2.9X trailing 12 month revenues)

2009 Madeira Therapeutics. All rights reserved.

Non-Confidential Presentation

Investment Opportunity/Use of Funds

Investment

Series A offering: $3 million

$1.94 million raised, seeking $600k more Unit Investment: $45,000 - 3,000 preferred units

Use of Funds: Completion Statin Development $400K

FDA Approval Q4, 2014

Development to start Q2, 2012 NDA Filing $200K

2009 Madeira Therapeutics. All rights reserved.

Non-Confidential Presentation

Summary With recent changes in the regulatory landscape, pediatric medicine is now the fastest growing prescription segment Madeira has developed a strong, differentiated pipeline of pediatric products Experienced management team in pediatrics Madeira: Sized to Fit.
2009 Madeira Therapeutics. All rights reserved. 10 Non-Confidential Presentation