investor presentation november 2021 poised for high growth

TSX - HLS

Investor Presentation

November 2021Poised for High Growth

TSX - HLS

Forward-looking statements

Certain statements in this presentation are “forward-looking statements”. Any statements that express or involve discussions with

respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but

not always using words or phrases such as “project”, “forecast”, “target”, “expect”, “seek”, “endeavour”, “anticipate”, “plan”,

“estimate”, “believe”, “intend”, or stating that certain actions, events or results may, could, should, would, might or will occur or be

taken, or achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are

based on expectations, estimates and projections at the time the statements are made that involve a number of known and unknown

risks and uncertainties which would cause actual results or events to differ materially from those presently anticipated. A number of

factors could cause actual results, performance or achievements to be materially different from any future results, performance or

achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or

uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results,

performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in

this presentation. These factors should be considered carefully and prospective investors should not place undue reliance on these

forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what HLS

currently believes to be reasonable assumptions, HLS cannot assure prospective investors that actual results, performance or

achievements will be consistent with these forward-looking statements. Except as required by law, HLS does not have any obligation to

advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement, nor does it intend, or

assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances.

• All figures in USD unless otherwise noted.

• Historical financials are per HLS filed quarterly and annual statements

• Forward-looking financial estimates are converted at an exchange rate of 1 USD = 1.227 CAD and 1 CAD = 0.815 USD

2HLS THERAPEUTICS INC.

TSX - HLS

2020

HLS 2021: the year of Vascepa’s inflection point


Clozaril

Trinomia

PERSERIS

MyCare Insite

US$56(C$71)

Royalty

US$350(C$430)

~500%

2025

Clozaril

Vascepa

Vascepa’s

Market Cap ~C$600M2TSX: HLS

1: 2020 are actual results and 2025 are estimates

2: as at 11.06.21

Royalty

Revenue1 (millions)

peak-year estimate

C$275-325MRevenue

C$100-130MAdjusted EBITDA

TSX - HLS

Who We Are


Canadian-based, North American focused pharma company

US$56.1M2020 revenue

OPERATIONAL STRENGTH

US$24.1M2020 Adj EBITDA

7PRODUCTS

3 commercial stage

2 pre-launch

2 in review stage

+

royalty interest

2THERAPEUTIC

AREAS

Cardiovascular

&

Central Nervous

System

TSX - HLS

Vascepa: Next pillar in cardiovascular risk reduction

HLS THERAPEUTICS INC. 5

• Professor of Medicine at

Harvard Medical School

• Exec Director of Interventional

Cardiovascular Programs at Brigham

and Women’s Hospital Heart and

Vascular Center

• Global Principal Investigator and Steering

Committee Chair for REDUCE-IT

“This may be the biggest developmentin cardiovascular preventionsince statins.”1

Deepak L. Bhatt, MD, MPH

1 Brigham and Women’s REDUCE-IT results press release November 10, 2018

20 international medical societies recommend the use of Vascepa

TSX - HLS

Also shown to reduce plaque in arteries2

Vascepa: REDUCE-IT trial’s Blockbuster clinical results


8,200 PATIENTS

11 COUNTRIES

5-YEAR TRIAL

Trial design Trial results

Reduction in Major

Adverse CV1 Events

25%

CV1

DeathHeart Attack

Stroke

28%

Primary endpoint Significant reductions on secondary endpoints

1 CV = Cardiovascular

2 European Heart Journal, Volume 41, Issue 40, 21 October 2020, Pages 3925–3932

35%

Surgical bypass

31%20%

TSX - HLS

Vascepa: Characteristics of a category leader


The Problem

Vascepaeffectively and safely lowers CV events by

30%

Unmet Need The Solution

#1 Killer globally is cardiovascular disease

LDL-related risk

Residualrisk

up to 2M Canadians in-label >90% private payer coverage*

*plans covering >90% privately insured Canadians (in-label) eligible for reimbursement at 03.31.21

Long runway: 8-years of data exclusivity. Patent protection into the 2030’s

TSX - HLS

>3x increase in sales reps and >4x increase in coverage

Salesforce expansion: Pfizer co-promotion partner


Validation of

Vascepa

from a well-respected

partner with a strong

reputation and

commitment to the CV

space

Provided November 2021, as part of an oral presentation and is qualified by such, contains forward-looking

statements, actual results may vary materially; HLS disclaims any duty to update.

Initial Physician Coverage

Physician

Coverage with

Salesforce

Expansion

TSX - HLS

0

100

200

300

400

500

600

700

21-Feb-20

06-Mar-20

20-Mar-20

03-Apr-20

17-Apr-20

01-May-20

15-May-20

29-May-20

12-Jun-20

26-Jun-20

10-Jul-20

24-Jul-20

07-Aug-20

21-Aug-20

04-Sep-20

18-Sep-20

02-Oct-20

16-Oct-20

30-Oct-20

13-Nov-20

27-Nov-20

11-Dec-20

25-Dec-20

08-Jan-21

22-Jan-21

05-Feb-21

19-Feb-21

05-Mar-21

19-Mar-21

02-Apr-21

16-Apr-21

30-Apr-21

14-May-21

28-May-21

11-Jun-21

25-Jun-21

09-Jul-21

23-Jul-21

06-Aug-21

20-Aug-21

03-Sep-21

17-Sep-21

01-Oct-21

Vascepa: prescription momentum growing…


Weekly script data since launch

Source: Weekly Rx, 2020 - 2021, IQVIA

Provided November 2021, as part of an oral presentation and is qualified by such, contains forward-looking

statements, actual results may vary materially; HLS disclaims any duty to update.

…fueled by growth catalysts

Pre

scri

pti

ons

Private market access• >90% eligible for coverage

Inclusion in Canadian medical society guidelines• Canadian Cardiovascular Society,

Heart & Stroke, Thrombosis Canada

COVID-19 restrictions lifting• Easing across Canada

Salesforce expansion• Pfizer agreement effective Q3 2021

Public market access• Expected 18-24 months post-launch

TSX - HLS

Strong consistent cash flow

Clozaril: Canadian Market Leader

10

Schizophrenia

Do not respond to first line treatment

Clozaril can be life changing,

often the only and last recourse

for patients not responding to first

line treatment

Response rate

1% of population

1/3 patients

LIFE CHANGING

80%

HLS THERAPEUTICS INC.

WHO essential medicine

US$44M(~C$55M)

2020 revenue

TSX - HLS

Growing franchise in a mature Canadian market

CSAN: Patient Portal is our competitive advantage for Clozaril in Canada

11

25 dedicated resources

Sales reps

Nurses

Physician consultants

24/7 availability

50,000 calls to

customers/

year CSAN: Clozaril Support and Assistance Network


Every weekFollow-up with

1,300 patients

to ensure

compliance

200,000blood

tests/year

55%market

share

TSX - HLS

Accepted for review by HC

Approved by HC Target LaunchTBD

C$15-20M annual revenue potential (US$11-15M)

PERSERIS: Synergistic to

CNS/psychiatry franchise


Exclusive Canadian rights

First once-monthly risperidone long-acting injectable (LAI)

Indicated for the treatment of schizophrenia in adults

Compelling positioning and well-defined marketing plan

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42020 2021

P R E - L A U N C H

TSX - HLS

Filed with HC HC Response Target LaunchTBD

C$10M annual revenue potential (US$7.5M)

MyCare: Synergistic to CNS/psychiatry

franchise


Exclusive Canadian distributor

Diagnosing (Dx) technology can measure the level

of six antipsychotic drugs in patients’ blood

No product of this type currently exists in Canada

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42020 2021

P R E - L A U N C H

TSX - HLS

4th product approval expected in 2022

Royalty Portfolio: cash flow to support growth


Products marketed by global blue-

chip healthcare organizations

Increased diversification

Four non-correlated products

Diversifies revenue, AEBITDA & cash flow

0

0.5

1

1.5

2

2.5

Q4'20 Q1'21 Q2'21 Q3'21

Royalty Revenue ($millions)

TSX - HLS

Stable cash-flowing base business with organic growth drivers


Sales momentum building for potential blockbuster, Vascepa

1: net income (loss) adjusted for (i) “stock-based compensation”, (ii) “amortization and depreciation”, (iii) “acquisition and transaction costs”, (iv)

“finance and related costs”, and (v) “income tax expense (recovery)”

(USD$

millions)

FY

2019

FY

2020

YTD

2020

YTD 2021

% change

Q3

2020

Q3 2021

%change

REVENUE(USD$

millions)

Product 44.6 45.7 33.8 37.4 +11% 11.4 12.8 +12%

Royalty 9.6 10.5 5.8 6.9 +19% 1.8 2.2 +22%

Total 54.2 56.1 39.6 44.3 +12% 13.1 15.1 +15%

ADJUSTED EBITDA1

(USD$ millions)

31.6 24.1 15.4 20.2 +31% 4.5 6.9 +53%

Q3’21 Vascepa revenue +33%

sequentially vs Q2’21

Clozaril Canada patients +3%

annual increase in Q3’21

Q3’21 Adj. EBITDA +53%

vs Q3’20

YTD’21 Adj. EBITDA +31%

vs YTD’20

YTD’21 cash flow from operations $12.5M vs $3.5M YTD’20

Numbers in columns may not add-up due to rounding to one decimal place

TSX - HLS

Strong balance sheet

16

(US$ millions) At Dec 31, 2020 At Sept 30, 2021

Cash and Cash Equivalents 20.6 21.7

Senior Secured Term Loan 107.6 100.1

Net Debt (Term Loan less Cash) 87.0 78.4

At Dec 31, 2020 At Sept 30, 2021

Shares Outstanding (‘000’s) 31,822 32,425

SUMMARY BALANCE SHEET & CAPITALIZATION


US$70M debt expansion facility

Preliminary short-form base shelf prospectus filed

Quarterly dividend

NCIB

Market Cap at 11.05.21: ~CDN $600M

TSX - HLS

Veteran specialty pharma leadership team


William Wells | Executive ChairmanFormer CEO and Director of Biovail

Gilbert Godin | CEO & DirectorCo-Founder of HLS. Former Executive Vice President and COO of Biovail, CEO of Duchesnay (USA),

President of MDS Pharma (USA); VP at Schering-Plough (FR) and L’Oreal

Tim Hendrickson | Chief Financial OfficerFormerly of Cubist Pharmaceuticals; Procter & Gamble; P&G Pharmaceuticals;

and Warner Chilcott

Dr. Hemanth Varghese, Phd | Senior VP Strategy and OperationsFormer senior executive with Valeant and Endo in Business Development and in Operations, prior to

which he was VP of Business Development for Biovail

Ryan Lennox | Senior VP, Legal, HR and ComplianceFormer Senior Counsel at Amgen Inc., where he was responsible for all of the legal affairs of their

Canadian affiliate

Sanjiv Sharma | Chief Commercial OfficerFormer SVP Worldwide Commercial & Country Head-US for NicOx; and VP Commercial for Duchesnay

USA, Biovail, Aventis

Dr. Jason Gross | VP, Scientific AffairsFormer VP of Scientific and Medical Affairs at Crown, MDS Capital, and Zenith Goldline,

ex-National Institutes of Health (NIH) and Food & Drug Administration (FDA)

Patricia Perry| VP, Human ResourcesTwenty years in human resources management, in administration and operations in various contexts,

including manufacturing, retail, educational and health care institutions.

William Wells | Executive ChairmanCurrent or former Board roles with: Biovail/Valeant, Medgenesis, ACADIA Pharmaceuticals, EnerCare

and Evizone

Gilbert Godin| DirectorHLS Co-Founder and Chief Executive Officer

J. Spencer Lanthier | Lead DirectorFormer Chairman and CEO of KPMG Canada, formerly board member of TMX Group, Torstar Corp.,

Biovail Corp., Rona Inc., Ellis-Don Inc.

Yvon Bastien | Independent DirectorFormer CEO of Sanofi Aventis in Canada, formerly held executive positions with Eli Lilly, IMS Canada,

Delta Healthcare

Norma Beauchamp| Independent DirectorCorporate director with 30+ years of health care experience in corporate and non-profit organizations

Laura Brege| Independent DirectorExtensive experience in the life sciences industry, as both an executive and a board member

Don DeGolyer| Independent DirectorPresident and CEO of Vertice Pharma, formerly COO with ENDO Pharmaceuticals and Sandoz North

America

Greg Gubitz | DirectorCo-Founder and founding CEO of HLS. Former Board roles with: biOasis, Telesta, Drug Royalty and

Imperial Plastech

Rodney Hill| Independent DirectorChief Risk Officer with OMERS

John Welborn| Independent DirectorManaging Director, Co-Chief Investment Officer for Stadium Capital Management

MANAGEMENT BOARD

TSX - HLS 18HLS THERAPEUTICS INC.

Strength

Opportunity

Execution

Strong cash flow and balance sheet

Dividend: C$0.20 per share per year

Experienced leadership

Clear value creating strategyCash flow/Growth/Explosive growth

4 commercial-stage assets

3 assets in pre-approval stage

Vascepa: C$275-325M sales estimate

Scalable platforms in CV & CNS

Robust deal flow for acquisitions

Strength

Opportunity

Execution

Strong cash flow and balance sheet

Dividend: C$0.20 per share per year

Experienced leadership

3 commercial-stage products

2 pre-launch products

2 products under review

Diversified royalty portfolio

Vascepa: C$275-325M sales estimate

Scalable platforms in CV & CNS

Robust deal flow for acquisitions

2020

US$56(C$71)

US$350(C$430)

~500%

2025

TSX - HLS

Poised for High Growth

APPENDIX

TSX - HLS

Diabetes Only

27%

CVD Only

23%

CVD & Diabetes

21%

No Diabetes or CVD

29%

Up to 2M patients in-label


All Statin Patients

Relative Share of REDUCE-IT

population

Diabetes 27%High Risk: Primary

Prevention:

CVD 23% Very High Risk: Secondary

prevention:Both 21%

Neither 29%Not included in

REDUCE-IT trial

CVD only + CVD with Diabetes = Up to 1.2MCVD only + CVD with Diabetes + Diabetes and risk factor = Up to 2M

https://www150.statcan.gc.ca/n1/pub/82-003-x/2016001/article/14305/tbl/tbl02-eng.htm

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2989357/

https://www150.statcan.gc.ca/n1/pub/82-625-x/2018001/article/54982-eng.htm

REDUCE-IT studied statin-treated patients with elevated triglycerides with established CVD (Very High Risk), or with diabetes and one or more CV risk factor(s) (High Risk)

Source:

2.8M Canadian Statin Patients

756,000812,000

588,000 644,000

Patients in-label

https://www150.statcan.gc.ca/n1/pub/82-003-x/2016001/article/14305/tbl/tbl02-eng.htm

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2989357/

TSX - HLS

COMPLIANCE/ADHERENCE IMPROVEMENT

Patients at risk following an initial CV

event are poly medicated (7-8 drugs).

Pill burden is biggest reason for

non-adherence to treatment

C$15-20M annual revenue potential (US$11-15M)

Trinomia: Synergistic to cardiovascular franchise

21

Aspirin(anti-coagulant)

SECONDARY PREVENTION

OF CARDIOVASCULAR

EVENTS

TRI-COMBO CAPSULE “Polypill”

Atorvastatin(lipid lowering)

Ramipril(anti-hypertensive)

INDICATION DIFFERENTIATION


Exclusive Canadian Rights

Clinical Outcome / Regulatory Path

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22020 2021 2022

Notice of Deficiency from Health Canada

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investor presentation november 2021 poised for high growth

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