Invion Limited (ASX:IVX)

Clinical-stage drug development company targeting chronic inflammation

William Garner, M.D. February | 2013

Disclaimer This presentation has been prepared by Invion Limited (Invion or the Company) solely for its use at presentations to

be made by the Company. The information contained in this presentation is an overview and does not contain all

information necessary to make investment decisions. Although reasonable care has been taken to ensure that facts

stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation,

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objectives. This presentation contains or may contain forward-looking statements that are based on management’s

belief, assumptions and expectations and on information currently available to management. All statements that are

not historical, including those statements that address future operating performance and events of developments that

we expect or anticipate will occur in the future, are forward looking statements. Although management believes these

forward looking statements are fair and reasonable you should not place undue reliance on these statements.

Experienced leadership team

William J. Garner MD, CEO

> EGB Advisors, Roche, Co-Founder DelMar Pharmaceuticals

> Successful corporate founder and executive

Mitchell Glass MD, EVP R&D and CMO

> 25 year veteran of Pharma (AZ, GSK) and Biotech (AGIX)

> Managed more than 40 drug developments including “first in class”

> 5 approved drugs (Accolate® /asthma, Coreg®/ heart failure, AVANDIA)

Ralph Craven, B Eng PhD, Chairman of the Board

> Broad experience as company director, respected member of international energy industry

> Ergon Energy, Arrow Energy, Tully Sugar

James Campbell, PhD MBA, Executive Director

> Senior biotechnology executive with 20+ years experience in research, research management, advisory

> COO and CFO, ChemGenex Pharmaceuticals; Principal, Gemini Biotechnology

Brett Heading, BCom LLB (Hons), Non-executive Director

> Experienced corporate lawyer/ company director across property, agribusiness & life sciences sectors

> Chairman of Partners, McCullough Robertson Lawyers

Warren Brown, B Eng, Non-executive Director

> Experienced in corporate strategy and project management

> Background in consulting engineering and contract negotiation

Current pipeline

Preclinical Phase I Phase II

INV102 (oral)

INV103 (ala-Cpn10)

NCE development

Smoking cessation

Asthma

Lupus (SLE)

INV102 (inhaled)

Chronic bronchitis

Cystic fibrosis

NIH funded (US$4.4m non-dilutive funding)

Academic alliance Beta-2 adrenergic inverse agonist

INV102 (nadolol) Existing drug being repurposed for a new target

INV102 (nadolol): overview

> Nadolol is a beta adrenergic inverse agonist (beta blocker) used in the treatment of high blood pressure, chest pain and migraine

> IVX is repurposing the drug for treatment of chronic obstructive pulmonary disease (COPD)

> IVX development strategy follows the medical, regulatory and commercial precedent of beta blockers for the treatment of chronic heart failure (CHF) = mitigated risk

> Phase II trials conducted to date have demonstrated safety and dose-related activity in airways

> An existing drug (generic) it has been used in over 10 million patients* to date = safety database

> Two phase II trials in 2013:

> Smoking cessation

> Asthma

* Company estimates

Medical, regulatory and commercial precedent

Chronic Heart Failure

(CHF)

Beta-Agonist

Beta-Inverse Agonist

e.g. carvedilol

(contraindicated

for >25 years)

Acutely

Beneficial

Acutely

Detrimental

Chronically

Detrimental

Chronic carvedilol

Mortality reduction

Standard of care

Chronic Obstructive Pulmonary Disease

(COPD)

Beta-Agonist

Beta-Inverse Agonist

e.g. nadolol

(contraindicated

for >25 years)

Acutely

Beneficial

Acutely

Detrimental

Chronically

Detrimental/

not helpful

Chronic INV102

(nadolol) for COPD

(asthma &

chronic cough)

AC

UT

E

CH

RO

NIC

After careful titration beta blockers for the treatment of CHF go from contraindicated to standard of care.

Medical, regulatory and commercial precedent for INV102 (nadolol) strategy established.

Airway healing: effect of oral INV102

Control lung tissue Lung tissue of asthmatic mice

treated with INV102 for 28

days: restored epithelium

Lung tissue of ‘asthmatic’ mice -

epithelial cells have been

converted to mucus-producing

goblet cells. No effect of

alprenolol.

Proof of concept has been achieved in pre-clinical studies with inhaled INV102

Chronic Exposure to Beta-Blockers Attenuates Inflammation and Mucin Content in a Murine Asthma Model. Nguyen et al. Am J

Respir Cell Mol Biol. 2008 Mar;38(3):256-62. See also. β-Adrenoceptor signaling is required for the development of an asthma

phenotype in a murine model. Nguyen et al. Proc Natl Acad Sci U S A. 2009 Feb 17;106(7):2435-40.

Chronic cough and failure to quit smoking*

6,000,000

Americans attempt to quit smoking annually

3,000,000

50% fail to quit at 6 months

1,500,000

50% fail to quit early (first 2-4 weeks)

375,000

25% of early failures due to

inadequate NRT or anxiety

750,000

Up to 50% of early failures due to

cough associated with excess mucus

Enriched with COPD patients

* Company estimates

Oral INV102 development strategy

Smoking cessation

> INV102 can treat underlying cause of chronic cough and

mucus secretion which are a major barrier to smoking

cessation and cause of peri-operative complications in

patients with COPD

> Phase II trial in smoking cessation to initiate 1Q 2013

> Total treatment period less than 5 months

> Titration doses (novel) provide IVX market exclusivity

Asthma

> NIH funding phase II study ($4.4 million)

> Initiated: 2013

> Expected trial end: 2015

Respiratory Inflammation market $64B+1.

> Smoking-Cessation Drug Market worth $2.4B in 20122.

> Large COPD /Asthma drug market, valued at ~$34B1.

> Advair Diskus ®, approved for asthma and COPD, ($8.1B peak annual

sales)3.

> Singulair ®, approved for asthma ($5.5B peak annual sales)4.

> Symbicort ®, approved for asthma and COPD ($3.1B worldwide sales)1.

> FDA sanctions on Long-Acting Beta Agonists (LABAs)

> Drugs associated with excess mortality

> Black box warning on all LABAs and LABA/Steroid combinations, including

Advair Diskus® and Symbicort ® : increased risk of death

1. Respiratory and Inflammation, AstraZeneca Annual Report, 2011

2. Smoking Cessation Drugs: World Market Prospects 2012-2022, Visiongain Reports 2012

3. Healthcare Finance, Bloomberg Brief, 13 August 2012

4. Full-Year and Fourth-Quarter 2011 Financial Results, Merck & Co

INV103 (ala-Cpn10) Modified natural human protein targeting inflammatory disease

INV103 (ala-Cpn10): overview

> Potential new anti-inflammatory biologic therapeutic

> Modified version of a naturally occurring human protein,

chaperonin10

> Strong patent position covering composition of matter

> Novel mechanism: effect on inflammatory markers is

different to current leading therapies, i.e. immune response

is dampened not ablated

> Target indication: systemic lupus erythematosus (“lupus”)

> Under-served market: only 1 drug approved in 50 years

Development plan

> Strong pre-clinical data

> improved kidney function, resolved cutaneous lupus, reduced renal and

circulating levels of inflammatory markers TNF-α and IL-6

> Signals of biological activity in clinical trials to date

> Strong safety profile in >250 patients (9 trials)

> Adequate cGMP material and toxicology coverage to support human clinical trial

> Pre-IND meeting with FDA held 14 December 2012

> Rapid, cost-effective means of determining clinical potential

> Phase II trial expected to initiate in 1Q13, data in 2013

Corporate information

Listed on the Australian Securities Exchange (ASX:IVX)

Corporate snapshot

Sector Biotechnology

Principal activities Clinical-stage pharmaceutical drug development

Intellectual Property assets 2 drug candidates

Pipeline status 3 phase II clinical programs

ASX code IVX

Last trade (12-Feb-13) $0.068 (6.8 cents)

Shares on issue 384,531,941

Market cap (12-Feb-13) $26 million

Cash at bank (31-Dec-12) $3.43 million

IVX: potential with mitigated risk

> Management team with significant FDA experience

> 5 NDAs

> Significant value drivers in 2013

> phase II data

> Submission of first NDA possible in less than three years

> INV102 (nadolol) in smoking cessation

> Strong patent position on both assets

William Garner, M.D. investor@invion.com.au

Invion Limited 2/120 Bluestone Circuit

Seventeen Mile Rocks

QLD 4073 Australia

P: +61 7 3295 0500

F: +61 7 3295 0599

W: www.invion.com.au

Managing Director and CEO

William Garner, M.D.

investor@invion.com.au

Investor and Media Relations

Buchan Consulting

rwilson@buchanwe.com.au

jlowe@buchanwe.com.au