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At the forefront of
cancer immunotherapy
Investor Presentation
January 2018
1
Investment highlights
Lead investigational product
CAVATAK® kills cancer cells
with a bio-selected form of the
common cold virus
Used in combination to
enhance existing
blockbuster drugs
Global support from big
pharma, leading healthcare
investors and key opinion
leaders
Market-leading body of
clinical evidence, multiple
target areas, excellent
safety profile
Multiple value inflection
points including near-term
milestones
Excellent preliminary
results, three ongoing
clinical trials, >250 patients
have received CAVATAK®
page 2
Viralytics at a potential value inflection point, with
multiple pathways to realise value of CAVATAK®
Discovery Demonstrate efficacy Maximise asset value
Primary commercial focus
▪ A bio-selected
strain of the
common cold
virus
(CAVATAK®)
was found to be
effective in
killing cancer
cells in pre-
clinical studies
▪ Clinical trials demonstrate
effectiveness standalone,
and in combination with
other immunotherapy drugs
▪ Preliminary focus was on
melanoma via
intratumoural
administration
▪ Program expansion to intravenous administration,
and multiple high-need target areas, to demonstrate
broad applicability of CAVATAK®
▪ Broad applicability expected to lead to increased
market potential, and increase in number of
potential pharma partners
▪ Viralytics to progress the most advanced
opportunities to a potential pivotal study
page 3
RAPID MARKET
SHARE GROWTH
Immunotherapy expected to grow to 50% of
the total cancer treatment market by 20201
“HOT” SECTOR
FOR M&A
$16.6b immuno-oncology deal value2,
greater than all other oncology combined
Viralytics is making excellent progress in the
exciting sector of cancer immunotherapy
TRADITIONAL TREATMENTS
such as chemotherapy and radiotherapy
haven’t changed much since the 1950’s
IMMUNOTHERAPY is cutting edge,
and uses the body’s own immune
system to kill cancer cells
1: IMS Health
2: Defined Health Insight series 2016 page 4
Our lead drug CAVATAK® is a bio-selected form
of the common cold virus that kills cancer cells
ADMINISTRATIONMultiple routes
maximise applicability
Intravenous
Intratumoural
Intravesical
CAVATAK® kills cancer cells and stimulates the patient’s immune response
Binds externally
to tumour cell
Infects cancer
cell
Replicates and
destroys cell
CAVATAK® is released from
tumour, and the process repeats
Stimulates patient’s
own immune response
against the cancer
throughout the body
page 5
CAVATAK® is at the forefront of combination therapies,
the future of cancer treatment
▪ Combination immunotherapies aim to dramatically improve cancer survival rates over time
▪ Big Pharma is racing to find the most effective combinations
RECENT ADVANCES 2011-2017
Checkpoint inhibitors the first
immunotherapies to achieve FDA approval
CURRENT GOAL
Combination therapies(e.g. Viralytics’ CAVATAK® in combination with Checkpoint Inhibitors)
STANDARD OF CARE (SINCE THE 1950’S)
Chemotherapy / radiotherapy
% S
urv
iva
l
100
Time0
Chemotherapy,
radiotherapy
Standalone
immunotherapy
Combination
immunotherapy
“There is a lot of room to improve if we do come up with the right combination. That’s the
future. We are only at chapter one in the book of immunotherapy.”
Dr. Israel Lowy, Vice-president, Regeneron (leading Biotechnology company)
page 6Note: Graphic shown is not to scale, for illustrative purposes only
Why are we combining with them?CAVATAK® can ‘heat’ tumours, making them a more attractive and easier
target for checkpoint inhibitors so they can be more effective at fighting cancer.
CAVATAK® is an oncolytic virus that is a bio-selected form of the
common cold and kills cancer cells
CAVATAK® in combination with checkpoint inhibitors
has the potential to be the new standard of care
Checkpoint inhibitors are at the forefront of immunotherapy.
Over ~$6b of sales in 2016
Big-pharma have checkpoint inhibitors
in the market, including:
What is a checkpoint inhibitor?Checkpoint inhibitors are antibodies that stimulate the immune system
to attack cancer cells.
“CAVATAK® is not genetically
modified and we believe has the
differentiation of allowing multiple
routes of administration
(intravenous, intratumoural and
intravesical). We believe this opens up
a much broader opportunity for the
product in multiple tumour types.”
Roth Capital
page 7
Response rates in
patients with
advanced
melanoma:
Data sourcePublished data
(FDA approved label)
Ongoing clinical trials
(single-arm)1
Published data
(FDA approved label)
Ongoing clinical trials
(single-arm)1
Key information
Encouraging early results from ongoing clinical trialsData shown is preliminary, based on ongoing single-arm Phase 1 trials. CAVATAK is an investigational drug
CAVATAK® with KEYTRUDA® (CAPRA trial)
compared to published KEYTRUDA® data
CAVATAK® with YERVOY® (MITCI trial)
compared to published YERVOY® data
page 8
1. Response rates shown are preliminary and based on in-progress Phase 1b clinical studies
2. Merck is known as MSD outside USA and Canada
3. Evaluate EP Vantage 2018 Preview
4. Bloomberg average via FiercePharma
YERVOY® +
CAVATAK®KEYTRUDA® +
CAVATAK®
YERVOY® owned by
~$1.5b sales in 20183
KEYTRUDA® owned by
2
~$6b sales in 20183
Trial name: MITCI
Preliminary but
encouraging response
rates, versus published
YERVOY® alone4
Trial name: CAPRA
Preliminary but
encouraging response
rates, versus published
KEYTRUDA® alone4
Key Statistics
Ticker Code ASX: VLA
OTCQX: VRACY
Share Price
(as at 5-Jan-18)A$0.82
Market Capitalisation
(as at 5-Jan-18)A$226M
Trading Range
(12-month)A$0.59 – 1.34
Institutional and Pharma
investors 59%
Cash position
(31 Dec 17 pro forma)1 A$57M
Net operating cash burn
(Calendar 2017)A$16.4M
1 Includes $29.6 million investment and $6.4 million R&D tax incentive received since 31 December.
Company Location Comments
Leading diversified life sciences
company
Private investment firm specialising in public biotechnology investments
Financial services company with over
$1.5tn in assets under management
Healthcare-dedicated investment firm
which manages over $14bn
Independent, trans-atlantic bio-science
investment firm
Australian equities investment manager
CAVATAK® has received capital markets
validation, with strong institutional investor support
page 9
CAVATAK® has received scientific validation,
with podium positions at leading conferences
The world's oldest and largest professional association related to cancer research
Leading cancer research meeting, attended by oncology experts from around the world
World’s leading member driven organisation specifically dedicated to cancer immunotherapy
page 10
Multiple CAVATAK® target areas maximise potential
value, partnerships and paths to commercialisation
MELANOMA
6th most common cancer
Clinical trials completed
Further underway
Pivotal trial protocol
in development
HEAD & NECK
Broad range of cancers
Clinical trial in planning
BLADDER
5th most common cancer
Clinical trial underway
COLORECTAL
4th most common cancer
Clinical trial in planning
LUNG
2nd most common cancer
Clinical trial underway
Initial focus
Current focus, to demonstrate
broad applicability of CAVATAK®
in common cancer types
New high potential focus areas
Source: USA National Cancer Institute, 2016 page 11
Viralytics is building a market leading
body of clinical evidence on CAVATAK®
ProgramCombination
drug1 TargetProgress
HighlightsPre-clinical Phase I Phase II
CAPRA KEYTRUDA®
Melanoma
Well tolerated with encouraging initial
efficacy data: 61% best overall
response rate
(Published KEYTRUDA® alone3 is 33%)
MITCI YERVOY®
Melanoma
Well tolerated with encouraging initial
efficacy data: 57% best overall
response rate
(Published YERVOY® alone3 is 11%)
KEYNOTE-
200KEYTRUDA®
Lung, bladder
Part A (CAVATAK® alone) completed
successfully, Part B underway in
collaboration with Merck2; encouraging
initial positive signals of activity
CALMNA -
standalone
Melanoma
Efficacy exceeded expectations with
overall response rate of 28% in advanced
disease patients.
CANONMitomycin
(chemotherapy)
Bladder cancer
CAVATAK® was well tolerated with
promising results underpinning strong
potential in combination with checkpoints
Phase Ib
26/50 patients enrolled
Phase Ib
38/60 patients enrolled
Phase Ib
64/90 patients enrolled
Phase II
COMPLETE, 70 patients
Phase I
COMPLETE, 16 patients
1. In combination with CAVATAK®
2. Merck known as MSD outside USA and Canada
3. FDA approved label data page 12
Note: Summary information only – see Viralytics website for further details
Encouraging positive outcomes in
melanoma patients
CAPRAPhase 1b
Target area Melanoma
Administration Intratumoural
Combination CAVATAK® and KEYTRUDA® - single arm trial
Lead investigator Dr Ann Silk MD, Rutgers Institute of New Jersey
TRIAL OVERVIEW
Progress26 out of 50
patients enrolled
Upcoming
milestones
Clinical updates in Q2
2018
CLINICAL RESULTS
▪ Best Overall Response Rate of 61% (14/23 pts) and DCR of 78% (18/23 pts)
▪ Tumour responses are ongoing at 12 months in 6 patients
▪ 4 patients have demonstrated complete responses in the target lesions
▪ Best Overall Response Rate of 64% (7/11 pts) in patients with late stage IV M1c disease
▪ Reductions in a number of injected and non-injected visceral / non-visceral lesions
▪ Only two Grade 3 pembrolizumab-related adverse events in 26 enrolled patients
page 13
▪ Overall Response Rate of 61% for CAVATAK® / KEYTRUDA® combination
▪ Preliminary but encouraging response rates, versus published KEYTRUDA® alone1 (33%)
CAPRAPhase 1b
Encouraging preliminary response rates for
CAVATAK® + KEYTRUDA® combination
Best percentage change in target lesions irRC criteria(Preliminary data, investigator assessed)
14 of 23 patients (61%)
demonstrated >50% reduction
in sum of target lesions
*Prior ipilimumab treatment
Source: 1FDA approved label datapage 14
Disease stage
Each bar represents 1 patient
Impressive Evidence of Reduction in
Target Lesions
Stage IVM1c Partial response
Non-injected lung lesion upper left lobe
Baseline Day 197
Day 113
Stage IIICPartial response
Non-injected lymph node lesion Right internal
Obturator region
Baseline
CAPRAPhase 1b
page 15
Note: Summary information only – see Viralytics website for further details
Source: 1FDA approved label data
Encouraging positive outcomes in
melanoma patients
MITCIPhase 1b
Target area Melanoma
Administration Intratumoural
Combination CAVATAK® and YERVOY® - single arm trial
Lead investigator Dr Brendan Curti MD, Providence Cancer Center, Portland
TRIAL OVERVIEW
Progress38 out of 60
patients enrolled
Upcoming
milestones
Clinical updates in Q2
2018
CLINICAL RESULTS
Safety:
▪ No dose-limiting toxicities reported
▪ Six Grade 3+ adverse events in 4 patients (all YERVOY-related: fatigue, elevated liver enzymes [2], pruritis,
dehydration, hyperglycaemia) with an overall study Gr 3+ treatment-related AE rate of 11% (4/38 pts)
Efficacy:
▪ 57% (8/14) Best overall response rate in patients naïve to checkpoint therapy
▪ 29% (2/7) Best overall response rate in patients administered prior single line anti-PD1 therapy
▪ Preliminary but encouraging response rates, versus published YERVOY alone1 (11%)
page 16
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17
* irRC criteria: Preliminary data, investigator assessed+ First response assessment at Day 1061FDA approved label data
Preliminary but encouraging results, compared to published YERVOY® alone1 (11% response rate)
Encouraging preliminary response rates for
CAVATAK® + YERVOY® combination
MITCIPhase 1b
Checkpoint therapy naïve (n=14)
Overall response rate of 57%
Prior single line anti-PD-1 therapy (n=7)
Overall response rate of 29%
2 of 7 patients (29%)
demonstrated >50%
reduction in sum of
target lesions
page 17
8 of 14 patients (57%)
demonstrated >50%
reduction in sum of
target lesions
Each bar represents 1 patient Each bar represents 1 patient
Disease stage Disease stage
Impressive Evidence of Reduction in Target
Lesions in patients with advanced melanoma
MITCI Phase 1b
Complete response
demonstrated
Prior treatments include
BCG and Nivolumab
MITCI Phase 1b
Partial response
demonstrated
Prior treatments include
Ipilimumab/Nivolumab,
Nivolumab, Surgery
Pre-treatment Day 90 Day 180
Pre-treatment Day 127 Day 310
MITCIPhase 1b
page 18
Exciting trial in collaboration with Merck, in
high-potential target areas (lung and bladder)
KEYNOTE-200Phase 1b
WHY IS THE KEYNOTE-200 TRIAL
SO IMPORTANT?
▪ KEYNOTE-200 tackles two of the
five most common cancer types in
the US – Lung and Bladder
▪ Efficacy via intravenous
administration would massively
broaden the possible market and
potential pharma partners for
CAVATAK®
Target area Non-small cell lung cancer (NSCLC), Bladder cancer
Administration Intravenous
Combination CAVATAK® and KEYTRUDA® - single arm trial
Lead sites Memorial Sloan Kettering (USA),
Royal Surrey County Hospital (UK)
TRIAL OVERVIEW
Progress64/90 patients. 17 sites in
US, UK & Aus. recruiting
Upcoming
milestones
Clinical updates in Q2
2018
CLINICAL RESULTS
▪ Similar adverse event profile when compared
to KEYTRUDA alone
▪ Of 28 evaluable patients, response observed
(not all yet confirmed) in 3 of 10 (30%) NSCLC
and 5 of 18 (28%) metastatic bladder cancer
patients. 12 of these 28 patients currently
remain on the study
page 19Note: Merck known as MSD outside of USA and Canada
Encouraging data+ in lung and bladder cancer
patients treated with CAVATAK® + KEYTRUDA®
KEYNOTE-200Phase 1b
Response observed (not all yet confirmed)
in 3 of 10 (30%) NSCLC and 5 of 18 (28%)
metastatic bladder cancer patients *
page 20
Each bar represents 1 patient
Key players are acquiring immunotherapy companies
in a similar development stage to Viralytics
2017 Acquisition
US$554mPhase I/II
2016 Acquisition
US$400mPre-clinical
2016 Acquisition
US$400mPre-clinical
2016 Acquisition
US$1.7bnPhase II
2017 License
US$2.8bnPhase I/II and below
2016 License
US$200mPre-clinical
“As a leading innovator in the field of
immuno-oncology, Merck is dedicated to
advancing breakthrough science”
Eric Rubin, MD Oncology Early-stage
“Combination therapy will be foundational to
delivering the potential for long term
survival for patients”
Francis Cuss, Chief Scientific Officer
page 21Note: Merck known as MSD outside of USA and Canada
Viralytics has enviable optionality,
with multiple value realisation pathways
Continue to progress clinical
development, to achieve
value inflection of CAVATAK®
Realise value via licensing
and milestone revenues
DEVELOP INDEPENDENTLY
PARTNER WITH BIG PHARMA
LICENSE A TARGET AREA
SALE OF COMPANYRecognise equity upside
potential through M&A
Viralytics is actively pursuing the most value-accretive pathways
page 22
Viralytics has three main clinical goals for 2018
1. Progress melanoma programme into a pivotal study
RELEVANT CLINICAL TRIAL: MITCI
2. Demonstrate large addressable market through intravenous use of
CAVATAK® in very large indications: lung and bladder cancer
RELEVANT CLINICAL TRIAL: KEYNOTE-200
3. Highlight broad potential through signal seeking studies in head and
neck cancer, colorectal cancer and ocular melanoma
FOUR NEW STUDIES TO BE INITIATED IN 2018
1
2
3
page 23
Disclaimer
Certain statements made in this presentation are forward looking statements within the meaning of the safe harbour
provisions of the United States Private Securities Litigation Reform Act of 1995. These forward looking statements are not
historical facts but rather are based on Viralytics’ current expectations, estimates, assumptions and projections about the
industry in which Viralytics operates. Material referred to in this document that use the words ‘estimate’, ‘project’, ‘intend’,
‘expect’, ‘plan’, ‘believe’, ‘guidance’ and similar expressions are intended to identify forward looking statements and should
be considered an at-risk statement. These forward looking statements are not a guarantee of future performance and
involve known and unknown risks and uncertainties, some of which are beyond the control of Viralytics or which are
difficult to predict, which could cause the actual results, performance or achievements of Viralytics to be materially different
from those which may be expressed or implied by these statements. These statements are based on our management’s
current expectations and are subject to a number of uncertainties and risks that could change the results described in the
forward-looking statements. Risks and uncertainties include, but are not limited to, general industry conditions and
competition, general economic factors, the impact of pharmaceutical industry regulation and health care legislation in the
United States and internationally, and challenges inherent in new product development. Investors should be aware that
there are no assurances that results will not differ from those projected and Viralytics cautions shareholders and
prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of
Viralytics only as of the date of this presentation. Viralytics is not under a duty to update any forward-looking statement as
a result of new information, future events or otherwise, except as required by law or by any appropriate regulatory
authority.’
page 24