This presentation is copyright ©2006 by Alteon Inc.Any duplication, use or distribution of this presentation is strictly prohibited without prior written authorization from Alteon Inc.

This presentation is copyright This presentation is copyright ©©2006 by Alteon Inc.2006 by Alteon Inc.Any duplication, use or distribution of this presentation is strAny duplication, use or distribution of this presentation is strictly prohibited without prior written authorization from Alteonictly prohibited without prior written authorization from Alteon Inc. Inc.

ALTEONALTEON

Breakthrough Medicines For Cardiovascular Aging and Complications of Diabetes

Breakthrough Medicines For Cardiovascular Breakthrough Medicines For Cardiovascular Aging and Complications of DiabetesAging and Complications of Diabetes

BIO InvestorForum 2006October 2006

BIO InvestorForum 2006October 2006

Noah Berkowitz, M.D., Ph.D.President & CEO

Noah Berkowitz, M.D., Ph.D.President & CEO

Safe Harbor Statement

Certain statements made in the course of this presentation may be forward-looking and involve a number of risks and uncertainties, including, but not limited to:

• Our technology and product development efforts (including the possibility that early clinical trial results may not be predictive of results that will be obtained in large-scale testing or the possibility that any clinical trials may not demonstrate sufficient safety and efficacy to obtain requisite approvals or result in marketable products)

• Anticipated operating losses and capital• Anticipated regulatory filing dates and clinical trial initiation dates• Our estimates regarding our capital requirements and our needs for additional financing • Our ability to obtain sufficient additional financing in near term• Uncertainties associated with obtaining and enforcing our patents and with the patent rights of others• Our selection and licensing of product candidates• Technological change and competition• Our ability to attract collaborative partners and other third parties with acceptable development,

regulatory and commercialization expertise• Our ability to form and maintain collaborative relationships, including those relating to the

development and commercialization of our product candidates• Other risks identified in Alteon’s filings with the Securities and Exchange Commission

Actual results, events or performance may differ materially. Alteon undertakes no obligation to publicly release the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Post-Transaction Development Pipeline: Two Phase 2 Cardiovascular Compounds Plus Pipeline

Preclinical Phase 1 Phase 2 Phase 3 NDA

Development Drugs/Indications

Alagebrium

Alagebrium

Alagebrium

ALT-2074

AGE Breakers

GPx Mimetics

Discovery

2nd Generation

Chronic Heart Failure

Nephropathy

Retinopathy

Acute Coronary Syndrome

Other

*

*Trial open or within 3 months of launch pending financing

*

*

20-30%DiabeticPatients

Prevalence:~13.9 Million (U.S.)

ALT-2074Acute Coronary Syndrome

> $10 BILLION/YEAR(Worldwide Estimate)

Market Specialization and SegmentationA Recipe For Success

25- 44%of DiabeticPatients

Prevalence:~5 Million (U.S.)

> $5 BILLION/YEAR(Worldwide Estimate)

Sources: AHA; National Quality Measures Clearing House; Analyst Estimates

AlagebriumChronic Heart Failure

ALT-2074

• Lipid peroxides causeinflammation

• ALT-2074 metabolizeslipid peroxides

• Treats acute ischemicinjury

Related Therapeutic AreasDifferent Mechanisms of Action

Alagebrium

• Targets Advanced GlycationEnd Products (A.G.E.s)

• Alagebrium breaks A.G.E.Crosslinks

• Restores structure andfunction of tissues

ALT-2074Metabolizes Oxidized Lipids

ALT-2074Metabolizes Oxidized Lipids

Orally Dosed Phase 2 Small Molecule>50 patients in Phase 1 & 2 - anti-inflammatoryindication

Novel Anti-Inflammatory Mechanism of Action

• Glutathione Peroxidase (GPx) Mimetic• Metabolizes Lipid Peroxides• Decreases over-expression of key cytokines and messengers

Rapid Action

Restores Function

• Acute, ischemia-reperfusion protection without hemodynamic instability

Alteon’s Proprietary Genetic TestAllows Better Clinical Trial Design

• Haptoglobin (Hp), a protein that binds free hemoglobin, actsas an antioxidant and anti-atherosclerotic agent. Recycles iron,and inhibits Hb(Fe)-mediated lipid oxidation.

• Three variations of Hp exist: Hp 1-1, Hp 1-2 and Hp 2-2.

• In diabetes, Hp 2-2 fails to inhibit lipid oxidation, leading to worsening atherosclerosis and death from ischemic heart tissue.

40%45%15%Prevalence

2-22-11-1Hp Type

0

5

10

15

20

25

30

35

Death CHF

Source: Diabetes 2005; 54: 2802-2806

HP 1-1 HP 2-2

Haptoglobin Typing Predicts Clinical Event Rate

Haptoglobin Type and 30 Days Post MI Events in Diabetics

0

.2

.4

.6

.8

1

Even

t Fre

e Su

rviv

al

0 5 10 15 20 25 30 35Time (Days)

HP 1-1

HP 2-2

1-1

1-12-2

2-2

Even

t %

Hp2-2 Phenotype Hyperglycemia - Oxidative Damage In Vitro

Increase in oxidative stress in Hp2-2 phenotype in cultured CHO cells in high glucose.Effect is abolished by the chelator DFO

Source: Adapted from Circulation Research, 205; 96; 435-441

0

10

20

30

40

50

60

70

1 2 3 4

Hp1-1

Hp2-2

% In

crea

se in

Oxi

datio

n *

* *

GlucoseDFO

L-

H-

H+

L+

% o

f Mic

e W

ith E

leva

ted

LPI

Source: Adapted from Circulation Research, 205; 96; 435-441

0

10

20

30

40

50

60

70

80

90

Wild type(Hp-1)

non diabetic

Wild type(Hp-1)

diabetic

Knockout(Hp-0)

non diabetic

Knockout(Hp-0)

diabetic

Knockout(Hp-2)

non diabetic

Knockout(Hp-2) diabetic

Hp2-2 Phenotype Diabetes - Oxidative Damage In Vivo

Preclinical Studies of ALT-2074 Model Anticipated Clinical Program

Preclinical

Myocardial protection in ratsand genetically engineered mice

PLACEBO

-

TREATED

+

Animal Model:

• Diabetes

• Hp 2-2

• Ischemia Reperfusion Injury

• Size of Infarct

Source: Data presented at the ACC, March 2006

ALT-2074 Reduces MI Size in Hp 2-2 DM Mice

• Mouse model for ischemiareperfusion injury(controlled heart attack)

• High risk diabetic mice,genetically engineered tomodel the humancondition

• Occlusion of the coronaryartery followed byrestoration of blood flow

• Infarcts are representedas Infarct Area/Area atrisk

• 0.5mg/kg to 5mg/kg ofALT-2074 yielded similarresults

Approximately an 85% reduction in infarct size followinga single oral administration of ALT-2074

n=13 in each group

P=0.001

05

101520253035404550

IA/R

A (%

)

Placebo ALT-2074

Type Placebo-controlled, 2 arm

First Patient treated Q3 2006

First Interpretable Q2 2007Results

# of Patients 60

Duration 5 days

Centers 4 (currently); in Israel

Endpoints Myocardial Damage (CK leak)Holter, clinical events

ALT-2074: Phase 2 Study inHigh Risk Diabetic Patients Undergoing PCI

A.G.E.s Induced InflammationTriggers Measurable Pathology

Results in Expressionof Growth Factors andCytokines

↑ IL-1↑ TNFα↑ TGFβ

↑ NFκβ↓ eNOS

Resulting Pathologies:

• Vascular Stiffening• Chronic Heart Failure• Nephropathy

Source: Diabetes, Brownlee,Vol. 54, June 2005

Intracellular protein glycation

AGE precursorsGlucose

MatrixIntracellular transducers

Transcription factors

Glucose

DNA

Transcription

AGEreceptor

AGEplasmaproteins

AGEreceptor

ROS

NF-κβ

Macrophagemesangial cellmRNA

Proteins

Integrins

Endothelial cell

RNA

Alagebrium: A Novel “TherapeuticRemodeling” Agent

N

SCl

O

• Breaks A.G.E. Crosslinks

• Phase 1 and 2 clinical trials in >1000 patients:Safe and well toleratedEncouraging Phase 2 data in CHF in 45 patients

• Our Strategy:Chronic heart failure indicationDiabetic patients onlyAlteon diagnostic test identifies highest riskdiabetic patients

Diastolic Heart Failure Epidemic

• Increasing prevalence among heart failure patientsin three successive five year periods (38%, 47% and 54%)

• Mortality Rates - 1 year - 22-29%; 5 years - 65%

• ~ 50% heart failure hospitalizations

• No regulatory approvals in DHF

• Chronic heart failure, accounting for 700,000 hospitaladmissions per year

• More than $20 billion in healthcare costs

Impaired filling (elevated atrialpressures)Normal or impaired ejectionfraction30-50% of all heart failure cases70% of elderly heart failurepatientsNo current therapy available

Alagebrium reverses ventricular and aortic stiffening associatedwith diastolic dysfunction

Diastolic dysfunction in heart failure:

Source: William H. Luer, M.D., Tulane School of Medicine

Rationale For Alagebrium in Heart Failure

A.G.E.s are Increased in Aging Myocardium

Source: Cardiac Diastolic Dysfunction and AGE in Aging, S.-Y. Li, et al

Alagebrium Reduces LV Mass

44.14.24.34.44.54.64.74.84.9

5

Aging Aging + Diabetes Aging + Diabetes + ALT711

LV Mass, g/kg

P<0.05 vs. Aging P< 0.05 vs. Aging and Diabetes

Liu, J, et al Glycation end-product cross-link breaker reduces collagen and improves cardiac function in aging diabetic heart. A, J Physiol Heart Circ Physiol. 2003; 285L 2857-2591

Pressure-Volume Loops Indicating Differences Between Systolic and Diastolic Dysfunction

Source: N Engl J Med 351;11, September 9, 2004

(volume loaded)

0

5

10

15

20

25

30

35

40

0 10 20 30 40 50 60 70 80 90 100

End-Diastolic Volume Index (ml/m2)

End

-Dia

stol

ic P

ress

ure

(mm

Hg)

Low Volume, High Pressure

High Volume, Low Pressure

Male mongrel dogs. ALT-711: 1 mg/kg, oral, 4 weeksAdapted from Asif et al, PNAS 2000

Untreated Aged Dogs

*

* p < 0.001

** Treated Aged Dogs

Young DogsControl

Short-Term Dosing With Alagebrium Restores Flexibility In The Left Ventricle In Aged Dogs

Alagebrium to be Evaluated in NIH-Funded Phase 2 Clinical Study Focused on Cardiovascular Aging

Source: Unpublished

Comparison of Systolic and Diastolic Heart Failure

Source: Adapted from Circulation. 2006;113:1966-1973

<0.0015.95 ± 0.48*3.09 ± 0.36*Myocardial Stiffness Modulus, kN/m2

(Con: 2.2 ± 0.3)

<0.00162 ± 234 ± 2*LVEF, % (Con: 70 ± 3%)

<0.00180 ± 4120 ± 7*LVEDVIangiomL/m2 (Con: 72 ± 4

0.10326 ± 2*22 ± 2*LVEDP, mm Hg (Con: 10 ± 1)

<0.001172 ± 7*122 ± 5LVPSP, mm Hg (Con: 120 ± 6)

p Systolic vs

Diastolic

Diastolic

(n=22)

Systolic

(n=22)

Con = Control Population*P < 0.05 vs control population

Key Clinical Findings for Alagebriumin Heart Failure

Meaningful reduction in left ventricular mass (p=0.036), inunprecedented timeframe

Marked improvement in initialphase of left ventricular diastolic filling (p=0.045)

Statistically significant improvements in multiple QOLmeasurements (p < 0.01)

Sickest patient population (class III heart failure) benefited most

Source: Kitzman, Zile, et al; Presented as Poster at Societyof Geriatric Cardiology Annual Meeting, 2003

*Distensibility Improvement andRemodeling in Diastolic Heart Failure

DIAMOND Study

Source: Thohan, Koerner, et al; Presented as Poster at theAmerican Heart Association Annual Meeting, 2005

Patients with Impaired Ejection Fraction and Diastolic Dysfunction: Efficacy and

Safety Trial of Alagebrium

PEDESTAL Study

Improvements observed for:

Diastolic function (E/A, DT,IVRT)

Hemodynamics (LAP, PASP)

LV remodeling (LAV, LVEDV,LV mass)

NYHA score

No alterations in heart rate, bloodpressure or physical exam

Alagebrium: Phase 2b Study in High Risk Diabetic Patients With Diastolic Heart Failure

Type Placebo Control, 3 armScreened with AlteonTest

# of Patients 300

Initiate 1Q 2007

Duration 6 months dosing

First Interpretable Q2 2008Results

Centers 20; U.S.; Target max 9 monthaccrual

Endpoints Cardiac function, mass and pressure, clinical endpoints

External Support for Alagebrium in Nephropathy

A Randomized, Placebo-Controlled Trial of Alagebrium in PatientsWith Insulin-Dependent Type 1 Diabetes and Microalbuminuria

Principal Investigators:

Mark Cooper, MB, BS, Ph.D, FRACP, FAHAAssociate Director and Professor

Baker Heart Research Institute, Melbourne, Australia

Hans-Henrik Parving, M.D.Professor

Steno Diabetes Center, Gentofte, Denmark

Alagebrium Indicates Protective Effect in Preclinical Diabetic Nephropathy Model

Source: American Jouranl of Nephrology, 2006: Vol. 26, 430-436

• Treatment with alagebrium rapidly decrease serum A.G.E.s• Alagebrium treatment results in clearances of A.G.E.s in urine

Decreases Proteinuria

The urinary albumin/creatinine ratio is much lower in db/db mice treated for 3 months with alagebrium (long-termstudy). Urinary albumin/creatinine ratios were determined at the end of the study in 3-month-old, 7-month-old, and 12-month-old treated and untreated db/db mice.

Source: Am J Nephrol 2006; 26: 430-436

Source: American Jouranl of Nephrology, 2006: Vol. 26, 430-436

Alagebrium Indicates Protective Effect in Preclinical Diabetic Nephropathy Model

• Treatment with alagebrium appears to preserve kidney structures• Alagebrium appears to prevent or delay development of renal pathology

Experienced Management Team

Noah Berkowitz, M.D., Ph.D., President & CEOIMPATH, IDGene, Physician Choice

Malcolm MacNab, M.D., Ph.D.,VP, Clinical DevelopmentNovartis, Ciba Geigy

Howard B. Haimes, Ph.D, Executive Director, Preclinical ScienceOrganogenesis, Bioheart

Post-Merger Board of Directors

Noah Berkowitz, M.D., Ph.D.President & CEO, HaptoGuard; VP Clinical Development, IMPATH; Founder, Physician Choice

Marilyn G. BreslowFormer President/Analyst, W.P. Stewart; General Partner, Concord Partners; VP, Dillon, Read & Co.; Polaroid Corp.; Peat Marwick

Kenneth I. MochPresident & CEO, Alteon; President & CEO, Biocyte Corporation; Mng.General Partner, Catalyst Ventures; VP, The Liposome Company

Thomas A. MooreFormer President & CEO, Biopure; President & CEO, Nelson Communications; President, Procter & Gamble’s Worldwide Prescription and OTC Healthcare Products

George M. Naimark, Ph.D.President, Naimark & Barba; President, Naimark & Associates

Mary TannerPrincipal and Founder, Life Sciences Partners; Senior Managing Director, Bear Stearns; Managing Director, Lehman Brothers

Wayne P. YetterCEO Verispan; President and CEO, Odyssey Pharmaceuticals; Chairman & CEO, Synavant; CEO AstraMerck; Executive at Pfizer, Merck, Novartis, IMS

Alteon Pro-forma Capitalization

Total Shares Outstanding 129.3Current Warrants and Options 22.2New Financing Warrants 10.0

Fully Diluted Shares 161.5

Shares (Millions)

Financing Dependent 2006/7 Milestones

Q1 2006 ALT-2074 - ACC Presentation of ProprietaryAnimal Model - Completed

Q3 2006 ALT-2074 – Began Dosing Phase 2 Study on Cardiac Protection Following Angioplasty in ACS Patients

Q4 2006 ALT-2074 - Initiate Phase 2 Anti-inflammatoryBiomarker Trial

Q4 2006 Anticipated Start of JDRF Funded Study

Q1 2007 Alagebrium - Initiate Phase 2b CHF Trial

Q2 2007 ALT-2074 - Post Angioplasty Trial Results

ALTEON

This presentation is copyright 2006 by Alteon Inc.Any duplication, use or distribution of this presentation is strictly prohibited without prior written authorization from Alteon Inc.

6 Campus DriveParsippany, NJ 07054

Tel: (201) 934-5000Fax: (201) 934-8880 AMEX: ALTwww.alteon.com

TM“The Anti-A.G.E.ing Company”