Announcement PDF emerald Company Update – June 2020 Michael Winlo – MD & CEO Evidence Generating Care www.emeraldclinics.com.au Disclaimer and notices This presentation has been prepared by Emerald Clinics Limited ACN 625 085 734 (Company or Emerald). This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in Emerald in any jurisdiction. This presentation contains general information only and does not consider the investment objectives, financial situation and needs of individual investors. Investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified financial adviser having regard to their personal objectives, financial situation and needs before taking any action. 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This release may contain certain forward-looking statements with respect to matters including but not limited to the financial condition, results of operations and business of Emerald and certain of the plans and objectives of Emerald with respect to these items. These forward-looking statements are not historical facts but rather are based on Emerald’s current expectations, estimates and projections about the industry in which Emerald operates, and its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates", "guidance" and similar expressions are intended to identify forward looking statements and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those risks or uncertainties inherent in the process of developing technology and in the endeavour of building a business around such products and services. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Emerald, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward looking statements. Emerald cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Emerald only as of the date of this release. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. Emerald will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority. Presentation release authorised by Michael Winlo, CEO and Managing Director Emerald | Real-world clinical evidence Emerald is a team of medical doctors, clinical researchers and data scientists. We provide data-driven patient care across our network of clinics. We develop digital health technologies that help generate accurate and actionable clinical evidence. Our goal is to translate real-world patient experiences into evidence-based healthcare and accelerate access to new treatments in a safe, robust and ethical way. Funding History & Focus emd u Listed on the ASX, 12 February 2020 (ticker: EMD) u IPO funding $6m | Last reported cash position (Q1, 2020): $5.018M | Market cap: $9.38M (24 Jun 2020) u Milestones since listing: u 1000 + patients to 6 months, commercialised data, completed trials, consulting, extended data platform u Primary focus – commercialising Real World Evidence (RWE) leveraging our clinical and data expertise Real-World Evidence (RWE) is becoming more important in treatment development Investment highlights Experienced clinical team delivering a unique care model How we create and capture value Value of the Emerald data platform and proprietary position emd Strong patient and referrer demand Patient-centric, telehealth-supported Robust, ethically captured clinical evidence Unique treatment insights (what works?, for who?) Capabilities to support care, trials and data insights Proprietary platform supports development, validation and commercialisation of new treatments and technologies Experienced board with medical focus Key Person Dr Stewart Washer Dr Michael Winlo Dr Alistair Vickery Matt Callahan Professor Sir John Tooke Role Non-Executive Chairman / Founder Chief Executive Officer / Managing Director Chief Medical Officer / Executive Director Non-Executive Director / Founder Independent Non-Executive Director emd Previous Experience 30 years of CEO and Board experience in medical and agrifood biotech companies. Chairman of Orthocell Ltd (ASX:OCC), regenerative medicine company, Founding Chairman and current Director of Cynata Therapeutics Ltd (ASX:CYP) stem cell therapies. Founder of AusCann Ltd (ASX:AC8), medical cannabis manufacturing, Co-founder of Zelda Therapeutics Ltd (ASX:ZLD) medical cannabis clinical studies and research. Stewart has held a number of Board positions in the past, including Chairman of Hatchtech that was sold in 2015 for A$279m and was a Director of iCeutica Inc. that was sold to a US Pharma. He was also a Senator with Murdoch University and was a Director of AusBiotech Ltd Former CEO of rapid growth clinical trial organisation, Linear Clinical Research, serving biotech start-ups through to multinational pharmaceutical companies across the USA, Europe, Japan and China. Previously, Health Lead at Palantir (a Peter Thiel founded company based in Silicon Valley) working on complex data integration and analysis for Fortune 50 companies; as well as the US and UK Governments. Holds multiple patents in data analysis as well as a Bachelor of Medicine and Bachelor of Surgery (MBBS) and an MBA from Stanford University Graduate School of Business. Member of AICD and has completed director’s course. Specialist general practitioner with >30 years’ experience in general practice. Associate Professor of Primary Health Care at the University of Western Australia and Deputy Chair of the Postgraduate Medical Council of WA and the clinical lead of the research group CHASM (The Collaborative for Health Care Analysis and Statistical Modelling) - providing high-level analysis and statistical modelling to inform clinical service evaluation and planning for WA Health. Chair of Black Swan Health, one of the largest primary health care service providers in WA and Fellow of the Australasian College of Health Service Management and AICD graduate. Founder of Botanix Pharmaceuticals (ASX:BOT), iCeutica Inc. and Orthocell (ASX:OCC). Successfully developed 4 products through FDA approval. More than 20 years’ legal, intellectual property and investment management experience. Former investment director for 2 venture capital firms in life sciences and was GM and general counsel with technology and licensing company Ipernica Limited, now Nearmap Limited (ASX:NEA), where he was responsible for licensing programs that generated more than $120M in revenue. Senior Independent Director, BUPA Chile, Chair of Collaboration for the Advancement of Sustainable Medical Innovation (CASMI), UCL. Sir Tooke was Head of the School of Life and Medical Sciences at University College London (UCL) as Vice Provost (Health) and Academic Director of UCL Partners. Immediate past President of the Academy of Medical Sciences in the UK where he Chaired a report titled Enhancing the use of scientific evidence to judge the potential benefits and harms of medicine. Previous member of Google DeepMind Health’s Independent Review Board. Leading advisor to the UK Government regarding health policy and was knighted in the United Kingdom in the 2007 New Year Honours for Services to Medicine. Real-world evidence (RWE): Emerald’s model generates valuable clinical evidence during clinical care Sources of clinical evidence emd High data quality Emerald realworld evidence Clinical trial data Low external validity High external validity 3rd party data Clinical service data (eg, claims data) Low data quality RWE can shorten treatment development times & costs emd Emerald’s Real World Evidence (RWE) care model emd u 16 GPs and Specialists (all GCP-trained) u Proprietary data model and system u In-house data management, u 4 locations around Australia integration & analysis Emerald revenue streams 1 3 Clinical care (patients & health insurers) Consulting services emd 2 Clinical trials 4 MAJOR FOCUS: RWE insights Development pipeline Emerald develops digital health tools that support RWE generation Overview of Emerald’s RWE engine Data Capture Remote vital signs & symptoms on phone Clinical assessment on patients attending Emerald clinics emd Patient Management Programs 3rd party clinical databases (Medical claims etc) Medicinal cannabis monitoring COVID 19 safe “back to work” Chronic disease/at risk populations monitoring Data Management & Analysis Medrio Clinical Database Patient Dashboards Clinical analysis and insights Emerald’s RWE architecture Data Capture emd Patient Management Real-world outcome data informs ongoing algorithm development, research and clinical trials Data Analysis Emerald’s RWE programs EMD Clinical Services emd Today: Cannabinoid Management In development now: *COVID-19 Monitoring EMD Data Services *For further details, please see ASX Announcement of 22 June 2020 Potential: Complex diseases where evidence is lacking Real-world evidence for cannabinoid-based medicines (CBMs) Emerald’s cannabinoid medicine RWE asset emd CHALLENGE: u u Cannabinoid-based medicines (CMBs) lack high-quality, product-specific, clinical evidence to guide prescribing, registration and payment coverage decisions APPROACH: u u Build and deploy a RWE platform within an independent clinical service u Capture patient-reported and clinician data u Use validated, licenced assessments (the same tools used in clinical trials) u Use regulator-grade data standard u Work within patients’ usual care teams u All patients screened to ensure they had “failed standard of care” and were suitable for treatment Emerald’s cannabinoid medicine RWE asset Top indications • Clinical-trial grade data capture 1 Chronic non-cancer pain • Licensed and validated clinical assessments 2 Cancer Pain • We covert all data into standardised models 3 Other Indications 4 Insomnia 5 Neurological Spasticity 6 Parkinson's Disease 7 Migraine (headache) 8 PTSD 9 Epilepsy 10 Chemotherapy induced nausea and vomiting 11 Alzheimer's Disease 12 Anorexia and wasting due to chronic illness 13 Dementia 14 Inflammatory Bowel Disease Histogram of average CBD dose/day/patient Histogram of average THC dose/day/patient emd Case Study - Bob emd u Vietnam Veteran injured by large tree fall in 1969 causing multiple fractures u Long-standing chronic back pain, developed peripheral neuropathy thought to be due to exposure to Agent Orange with history of PTSD u Under care of pain specialists using oxycontin, buprenorphine, pregabalin, gabapentin, PEA, duloxetine –with little relief and/or poorly tolerated side effects. u Now: Stable dose of 15mg 1:1 THC/CBD oil, ceased all opiates, pregabalin and PEA Scores BPI Pain severity score BPI Pain interference score Visual analogue scale Insomnia severity score DASS 42 Depression DASS 42 Anxiety DASS 42 Stress Initial assessment 5.0 5.29 5.0 12.0 14 16 16 Visit 5 1.75 0.86 1.0 1.0 4 2 12 Clinical growth during COVID-19 emd 700 ~700 Monthly Appointments 525 470 350 460 341 175 COVID-19 > 0 526 Dec-19 Jan-20 EMD > Feb 21: WA confirms first case Feb-20 Feb 12: EMD IPO Mar 24: Nonessential businesses close Mar 10: Australia confirms 100th case Mar-20 Mar 18: 100% telehealth 654 (forecast) May-20 Jun-20 528 Apr 5: WA closes borders Apr-20 Apr 3: EMD offers COVID monitoring May 11: EMD selected to lead national COVID data research project* *For further details, please see ASX Announcement of 11 May 2020, at present, EMD has not yet commenced monitoring vaccine participants Jun 17: EMD selected to monitor 150 COVID vaccine trial participants* Fighting COVID-19 with Real-World Evidence Why do we need better COVID-19 monitoring? emd u COVID-19 is here to stay as a global pandemic u Social distancing may be necessary into 2022 in the US 1 u Development of a vaccine is by no means certain u 100+ vaccine candidates entering trials 2 however, no coronavirus vaccines have been developed before and the upper respiratory tract is a difficult target u Testing & tracing is problematic u Sensitivity and specificity can vary greatly leading to false positives and false negatives 3 u Viral genome may be detected up to 28 days from symptom resolution further complicating testing and quarantine practices due to positive test results 4 u Development of a treatment is by no means certain u Drug repurposing studies underway focused on reducing severity of disease 5,6 u Unknown long-term health impacts of infection u Early data suggests post recovery negative impact on lungs, heart, stroke risk, neurological dysfunction, inflammatory responses. 7,8 https://www.nytimes.com/interactive/2020/us/ coronavirus-us-cases.html (June 24th, 2020) u An unqualified perception of risk is the biggest threat to businesses and educational establishments and hence economic recovery 9,10 1. Projecting the transmission dynamics of SARS-CoV-2 through the postpandemic period by Stephen M. Kissler et al. Published online in Science : 14 APR 2020 Link 2. World Health Organisation Draft landscape of COVID 19 candidate vaccines Link 3.Correlation of Chest CT and RT-PCR Testing in Coronavirus Disease 2019 (COVID-19) in China: A Report of 1014 Cases Link 4. Humoral immune response and prolonged PCR positivity in a cohort of 1343 SARS-CoV 2 patients in the New York City region Link 5. World Health Organisation International Clinical Trials Registry Platform Link 6. US listed Clinical Trials Link 7.Potential Effects of Coronaviruses on the Cardiovascular System A Review Link 8.Neurologic Features in Severe SARS-CoV-2 Infection Link 9.How Employees Feel About Coronavirus Now: A PandemicEX Survey Update Link 10.Qantas workers fear virus safety: survey Link The Emerald approach • A clinician-led monitoring service: • Our extended RWE platform can now help monitor symptoms and vital signs using just a smartphone • Intelligent alerts help identify patients requiring further clinical review by our clinical team • Our team of trained GPs and specialists provide clinical evaluation and review, as required < Representative data only > NOTE: EMD has commenced vital signs monitoring generally, but has not commenced vital signs monitoring for the sole purpose of COVID-19 monitoring, nor has it received revenues in respect of vital signs monitoring for the purposes of identifying COVID-19. What’s ahead emd u Cannabinoid medicine RWE: u Ongoing commercialisation of RWE u Clinical trials u Expansion into UK u COVID-19 Opportunities: u Clinical monitoring - COVID-19 Vaccine trial (150 participants, 2 years) u A tool to assist organisations to get “back to business” with a clinician-guided COVID-19 monitoring service emerald Company Contacts Media Enquires - media@emeraldclinics.com.au Investor Enquires - investors@emeraldclinics.com.au Partnership Enquiries - evidencepartners@emeraldclinics.com.au Patient Enquiries - patients@emeraldclinics.com.au Evidence Generating Care www.emeraldclinics.com.au