DIABECORE MEDICAL INC'

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DIABECORE MEDICAL INC.
Improving Diabetes Therapy Through Advanced
Insulin Design
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Company Description

• Diabecore is a Toronto based company
• Focus is new therapies for Diabetes
• Present activities are centred entirely on our
  new Hypoguard insulin

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The Medical Need-Insulin Therapy Is Lacking-

• Normalizing blood glucose with insulin is RARELY
  ACHIEVABLE because of hypoglycemia.
• A therapy that provides good glucose control
  while reducing hypoglycemic risk is needed.
• Our Hypoguard insulin is directed to this.

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The FDA The Medical Need
 Severe hypoglycemia remains the biggest
obstacle that diabetics face. A treatment which
decreases the incidence of hypoglycemia is
sorely needed (FDA Policy Statement)
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Technology Description

• Developed at the Hospital for Sick Children
• Hypoguard is a phosphorylated human sulin
• The phosphorylation produces a flatter ie safer
  dose response
• Target The 7B Insulin Market

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INSULIN INJECTIONS - A RISKY BALANCE
VERY HIGH GLUCOSE
INSULIN SLIGHTY HIGH
LOW INSULIN
VERY LOW GLUCOSE
HYPOGUARDS STEADY BALANCE
GLUCOSE IS NORMAL
HYPOGUARD VARYING BY 200
4 Fold Higher HYPOGUARD
GLUCOSE MODESTLY LOWER
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• Text and Table

CONTROLS
LOW DOSE
2X LOW DOSE
4X LOW DOSE
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EUGLYCAEMIC CLAMP STUDIES
DIABETIC DOGS
MEAN / SEM N5
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GIR (mg/kgmin)
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15
10
5
0
0
10
20
30
40
50
60
70
IIR (ng/kgmin)
INSULIN
HYPOGUARD INSULIN
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Mechanism of Action

• Reduced maximal insulin pathway stimulation
  (phosphorylation). Target is confidential.

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Diabecores Hypoguard Insulin

• Durable maintenance of near normal blood
  glucose concentration in diabetic dogs
• Hypoguard poses a 3.5-4 fold lower risk of
  hypoglycemia
• No commercially available insulin has achieved
  such results in animals or in man.

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Intellectual Property

• ISSUED Patents US, UK, Europe, Japan, Canada.
• Most recent patent applications, 2006 - PCT
  US. We enter national phase in December 2008

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Diabecores Scientific Advisory Board

• Dr. Lawrence A. Leiter, M.D. F.R.C.P., F.A.C.P.
• Professor,University of Toronto, Endocrinologist,
  St. Michaels Hospital.
• Charles H. Best award for Distinguished Service
  in the Field of Diabetes
• Internationally recognized investigator in
  clinical diabetes.
• Extensive clinical trials with insulins and other
  phase II, III pharmaceuticals

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Diabecores Scientific Advisory Board

• Dr. Jean-Francois Yale, M.D., C.S.P.Q.
• Director, Metabolic Day Centre, Royal Victoria
  Hospital (Montreal) professor, Medicine and
  Nutrition and Food Science Centre, McGill
  University.
• Dr. Yale is an internationally published
  scientist in the field of diabetes.
• 1996-2003 chairman, Clinical Practice Guidelines
  for the Management of Diabetes in Canada
• Chairman (Clinical and Scientific Section),
  Canadian Diabetes Association (1992-1994).
• Dr. Yale has conducted ground breaking clinical
  studies on emerging therapeutics for diabetics
  and is the author of numerous important medical
  reviews (incl. Hypoglycemia)

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Diabecores Scientific Advisory Board

• Dr. Shinyo Ito, M.D.
• Professor of Toxicology, University of Toronto,
  staff toxicologist, Hospital For Sick Children,
  Toronto
• Dr. Ito has extensive experience in pharmacology
  as it related to drug development

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Diabecores Management Team

• William D. Lougheed, P.Eng. CEO, President,
  Director
• Former Scientific Investigator (Endocrinology)
  at Hosp. For Sick Children, discovered
  developed Hypoguard insulin
• Dr. Kusiel Perlman, M.D., F.R.C.P. VP Scientific
  Medical Affairs, Director
• University of Toronto/Hosp. Sick Children.
  Distinguished career in insulin studies, clinical
  trials pharmaceutical development
• John Jeffries, B.A., M.B.A.- VP Business
  Development Director
• 20 years experience with emerging life science
  firms in areas of financing/investment and
  business development

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The Market Opportunity

• Medically recognized that diabetes is extremely
  difficult to manage well.
• Goal of lowering glucose back to normal is NOT
  ACHIEVABLE in the majority of patients
• Disease Complications are the result
• 7B world market

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The Investment Opportunity

• 2.4M Private placement - 1.6M CDN of the
  subscription is unfilled
• Use of proceeds funding clinical trials
  insulin manufacture

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How to Proceed

• Contact any of the following Diabecore
  representatives
• William Lougheed 416 484-8890
• bill.lougheed_at_diabecore.com
• Dr. Kusiel Perlman
• kusiel.perlman_at_sickkids.ca

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Diabecores Competition

• Existing insulin therapies (injection)
• -Unacceptable glycemic control
• Inhaled insulin (applicable to Hypoguard)
• Islet Transplantation
• Supply issues donors cant provide s
• Immunosuppression issues
• Neuro-immunomodulating peptides
• Stem Cell Therapies
• long development time major scientific
  hurdles

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The Market OpportunityMarket Metrics

• Over 200 million people have diabetes worldwide.
• Over 18 million diabetics in the US, over 2
  million in Canada over 6 of the population
  (and increasing).
• Approx. 1.5 million new diagnoses/year in Canada
  US.
• Fourth leading cause of death by disease in US,
  largely under-reported.
• Of people with diabetes for over 15 years only
  38 have their disease under control (Canadian
  study).

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The Market OpportunityThe Clinical Need

• Medically recognized that diabetes is extremely
  difficult to manage well.
• Goal of lowering glucose back to normal is NOT
  ACHIEVABLE in the majority of patients because it
  produces frequent and potentially fatal low blood
  sugar levels (hypoglycemia).
• The ensuing poor glucose control results in a
  greatly elevated risk of severe complications
  with associated increased mortality lowered
  quality and duration of life.
• A therapy that provides better blood glucose
  control while reducing hypoglycemic risk is
  urgently needed to reduce the devastating effects
  of the disease.