TARGETED IMMUNOTHERAPIES

TO TREAT CANCER

AND INFECTIOUS DISEASES

Corporate strategy & portfolio presentation

July 2016

Safe Harbor Statement

This presentation contains forward-looking statements, which are subject to numerous risks anduncertainties, which could cause actual results to differ materially from those anticipated. There can be noguarantee that (i) the results of the Phase 2b part of the TIME trial will be predictive of future results withTG4010, (ii) regulatory authorities will agree with the Company’s further development plans for TG4010, or(iii) the Company will find a development and commercialization partner for TG4010 in a timely manner andon satisfactory terms and conditions, if at all. The occurrence of any of these risks could have a significantnegative outcome for the Company’s activities, perspectives, financial situation, results and development.The Company’s ability to commercialize its products depends on but is not limited to the following factors:positive pre-clinical data may not be predictive of human clinical results, the success of clinical studies, theability to obtain financing and/or partnerships for product development and commercialization, andmarketing approval by government regulatory authorities.

For a discussion of risks and uncertainties which could cause the Company's actual results, financialcondition, performance or achievements to differ from those contained in the forward-looking statements,please refer to the Risk Factors (“Facteurs de Risque") section of the Document de Référence, available onthe AMF website (http://www.amf-france.org) or on Transgene’s website (www.transgene.fr). Forward-looking statements speak only as of the date on which they are made and Transgene undertakes noobligation to update these forward-looking statements, even if new information becomes available in thefuture.

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Company Snapshot

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Phase 3 Biopharmaceutical Company Focused on the Development of Active Viral Immunotherapy Products for the Treatment of Cancer and Infectious Diseases

Immuno-engineering of viral vectors• Flexibility and adaptability of our innovative platforms

• Opportunities: combinations with traditional and novel (immune checkpoint inhibitors) therapies

Diversified and advanced

PIPELINE

Committed to create VALUE

Oncolytic immunotherapy (Pexa-Vec)• Phase 3 trial initiated in Jan 2016 in HCCImmunotherapeutic vaccine (TG4010)• Phase 3-ready in NSCLC • Phase 2b data published in Lancet Oncology in Dec 2015Additional combination trials and clinical projects• Data expected in 2017

Support and stability provided by reference shareholder, Institut Mérieux

Partnering / collaboration opportunities

Strong expertisefrom RESEARCH

to CLINIC

Strengthened* Management Team Solid Experience in Biopharmaceutical Industry

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Philippe Archinard, PhDChairman and Chief Executive Officer

Eric Quéméneur, PhDExecutive VP and Chief Scientific Officer

Christophe Ancel, PharmDVP Quality and Qualified Person

Maud Brandely*, MD, PhDChief Medical Officer

Jean-Philippe DelVP Finance

Thibaut du Fayet, MBAVP Marketing, Alliance and Project Mgt

John Felitti*, JD, MBAGeneral Counsel and VP Legal

Hemanshu Shah, PhD, MBAVP Corporate Development and Medical Affairs

Engineered for multiple applications

in Oncology & Infectious Diseases

THERAPEUTIC VACCINES (TV)

Expression of tumor or viral antigens to stimulate a specific immune response

ONCOLYTIC VIRUSES (OV)

Selective replication in tumor cells and cell lysis, with boosting of immune responseTargeted delivery of therapeutic payloads

MVA ADENO ONCOLYTIC VV

3 safe and versatile viral platforms

Transgene's Proprietary Technology has Generated Clinical Products Strong Competitive Position in Immunotherapy

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TG4010 Pexa-Vec*

*in-licensed from SillaJen

TG6002TG1050 TG4001

Activate immune response and deliver functional molecules / therapeutic payload into the tumor environment

• Demonstrated safety and tolerability (700 patients treated)

• Potential synergies with existing and future SOC: chemotherapies, radiotherapies, ICIs, antivirals, etc.

Transgene’s Products are Excellent Candidates for Combinationwith Immune Checkpoint Inhibitors (ICIs)

6*Chen and Mellman – Immunity July 2013

Active Immunotherapeutics (Vaccines and oncolytics)

ICIsActive immunotherapeutics

Therapeutic vaccines

Oncolytics

• TG4010 Phase 3 ready, in combination with chemotherapy

• TG4010 Preparing Phase 2 trials in combination with ICIs in NSCLC

• Pexa-Vec Phase 3 on going and preparing Phase 2 trials in combination with ICIs in HCC and other solid tumors

• TG6002 Planning first-in-humans trial in solid tumors

• TG1050 Completing ongoing first-in-humans Phase 1 trial

• TG4001 Planning Phase 2 trials in combination with ICI

On-going Activities

Diversified Immunotherapy Development PipelineKey Programs with a Focus on Combination Trials

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Product IndicationsPre-

clinical

Clinical Phase

1 2 3

ONCOLOGY

TG4010(MVA-MUC1-IL2)

Non-small cell lung cancer

Pexa-Vec(VV-TK-GM-CSF)

HepatocellularcarcinomaOther solidtumors

TG6002(VV-TK-RR-FCU1) Solid tumors

INFECTIOUS DISEASES

TG1050(Ad5-HBV)

Chronic hepatitis B

TG4001(MVA-HPV-IL2)

HPV induced cancer

+ chemotherapy

+ ICI

+ ICI

+ sorafenib

+ antiviral

+ ICI

Targeted active immunotherapy to treat MUC1-expressing solid tumors

TG4010 Cancer Immunotherapy:Phase 3 Ready in Non-small Cell Lung Cancer

• Promising Phase 2b:

Progression-free survival (PFS)

Overall survival (OS)

Response rate

• Plans for additional trials advancing

• Mechanism of action and safety profile = flexibility for combination with other therapies

• Multiple drivers of exclusivity into late 2020s, early 2030s

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MUC 1: tumor associated antigen (TAA)Most relevant TAA

Modified Vaccinia Virus (MVA) Non propagative virus: immunogenic vector

Injection site expressed:Cytokine stimulating T-cell response

* GlobalData, NSCLC Forecast & Market Analysis, 2013

• Target:

MUC1 positive tumors

• Indication: Non-small cell lung cancer (NSCLC) = large unmet medical need, large market opportunity

Global NSCLC therapeutics market $5.7 billion in 2012 and projected to reach $7.5 billion by 2022*

TG4010Proof of concept demonstrated in NSCLC(in combination with chemotherapy)

TG4010 Historical Clinical Development Plan

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Test TG4010 combi with chemo Feasibility, safety, and

efficacy signal

Confirmed efficacy signalIdentification of TrPAL, a potential

biomarker of TG4010 efficacy

Pivotal phase 2B/3 study Confirmation of activity in

patients with low TrPAL in phase 2B part

TG4010.05

TG4010.14

TG4010.09

09

05

14

3 CONSECUTIVE TRIALS IN COMBINATION WITH FIRST LINE CHEMOTHERAPY: 245 NSCLC PATIENTS TREATED WITH TG4010 (435 ENROLLED)

TG4010MoA TrPAL BIOMARKER: 75% of population

• Biologically defined subpopulation of immune cells: activated NK and NKT cells

• Characterized by retrospective analysis in the TG4010.09 study

• Responding patients with non-elevated TrPal levels: 75% of population

• Finding reproduced prospectively in the TG4010.14 study

• Correlates with established markers of systemic inflammation (LDH, CRP) but superior in predicting outcome in vaccinated patients

• Technically based on a widely available technology (flow cytometry)

• Minimally invasive (blood based), short turn-around time

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TrPAL BIOMARKER: % OF LYMPHOCYTES CLASSIFIED AS CD16+/CD56+/CD69+ BY A REAL-TIME AND MINIMALLY INVASIVE ASSAY

TG4010: Phase 2b Portion of Phase 2b/3 TIME TrialRandomized, Double-blind, Multi-center Trial

• Primary endpoint: PFS (to prospectively confirm TrPAL biomarker)• Secondary endpoints:

Overall Survival Overall Response Rate Duration of response Safety

1. TrPAL=triple positive activated lymphocytes: CD16+CD56+CD69+ cells at baseline2. TG4010/placebo administered subcutaneously on Day 1 of 1st cycle, then weekly for 6 weeks, then once every 3 weeks

until progression/discontinuation3. 21-day cycle; 4-6 cycles; type of chemotherapy (with or without bevacizumab) depends on tumor histology and

physician choice

222 Stage IV NSCLC patients• PS 0,1• MUC1+• No prior

chemo

TG4010 (108 pfu)2

+ chemotherapy3

placebo2

+ chemotherapy3

RANDOMIZED

NON

PD

Maintenancetherapy

(pemetrexed or erlotinib or

bevacizumab) + TG4010 or placebo

normalTrPAL1

(170)

highTrPAL1

(52)

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TG4010: Phase 2b TIME Trial ResultsResponse Rate and Duration of Response

12Quoix, E. et al. Results of the phase IIb part of TIME study evaluating TG4010 immunotherapy in stage IV non-small cell lung cancer (NSCLC)patients receiving first line chemotherapy. ASCO Annual Meeting2015

TG4010 Placebo

Non-squamous, low TrPAL (n)

ORR

Median duration of response (wks)

61

39.3%

43.1

66

30.3%

18.1

TG4010: Phase 2b TIME Trial ResultsForest Plot for PFS & OS

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PFS (Progression-free Survival) OS (Overall Survival)

TG4010: Phase 2b TIME Trial Results Target Population for Phase 3: Non-squamous, Low TrPAL

Quoix, E. et al. TG4010 Immunotherapy plus Chemotherapy as First Line Treatment of Advanced NSCLC: Phase 2b Results. 16th Wo rldConference on Lung Cancer. September 2015.

40%

19%

30%

12%

Presentation Number: Presentation Title – Presenting Author

PFS (months) OS (months)

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TG4010 Phase 2b TIME Trial

Key Findings Significant improvements in PFS and OS Improved response rate and longer duration of response Even greater efficacy in patients with low levels of TrPAL cells at baseline

→ potential biomarker Activity in patients having <5% of tumor cells expressing PD-L1

→ supports rationale for combining TG4010 with PD-1/PD-L1 checkpoint inhibitors Patients displaying anti-Muc1 CD8+ lymphocytes exhibit extended survival Excellent safety profile

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Data published in The Lancet Oncology in

December 2015

MANY PUBLICATIONS IN HIGH IMPACT FACTOR SPECIALIZED JOURNALS BETWEEN 2011 AND 2015

TG4010 Development PlanKey Next Steps

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Initiate exploratory Phase 2 trials in NSCLC in combination with ICIs

TG4010 + ICI + chemo1st lineNSCLC

TG4010 + nivolumab2nd lineNSCLC

Preparations underway

First combination trial expected to start early H2 2016

• Collaborations with major cancer centers in Europe and US

• Initiation not subject to partnering

Preliminary results expected in 2017

• Phase 3 in first-line HCC underway, SPA with FDA

• 1s t patient enrolled

• HCC*: 780,000 new cases and 745,000 deaths worldwide EU 28: 54,000 new patients and 51,000 deaths

USA: 33,000 new patients and 26,000 deaths

• Severe disease with late stage diagnosis

• Transgene owns development and commercialization rights in Europe

• Exploratory combination trials underway, with additional studies planned

Pexa-Vec Oncolytic Immunotherapy:Phase 3 Trial for Advanced Liver Cancer Initiated

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3 pronged complementary mechanisms of action

Global HCC market expected to grow to over $950 million by 2018**

* 2015 forecast, Globocan2012** GlobalData, Liver Cancer Report, 2010

Oncolytic immunotherapy to treat solid tumorsIn-licensed from SillaJen

Pexa-Vec

Deletion in the thymidine kinase gene Enhance replication selectivity and safety

Kirn DH, et al. Nature Reviews, Cancer. 2009

Lead indication: hepatocellular carcinoma (HCC)

Cancer cell oncolysis

Tumor vascular shutdown

Active immunotherapy (virus spreads to neighbors)

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1

2

3

Vaccinia Virus

Expression of GM-CSF

Trigger immune response

Pexa-Vec: Key Phase 2 Clinical Trial ResultsClinical Activity Demonstrated in Multiple Trials

• 30-patient dose-finding Phase 2 trial in HCC (80% of patients first-line)

Proof of concept for MOA: active immunotherapy

OS results - high dose versus low dose

► Median OS: 14.1 (high dose) vs. 6.7 months (low dose)

► Hazard Ratio = 0.39

► p = 0.020

Nature Medicine, Volume 19, Issue 2, February 2013

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More than 10 trials with >300 patients treated with Pexa-Vec in variety of tumor types, including liver, colorectal and kidney

Pexa-Vec: Development Plan

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Phase 3 trial (PHOCUS) in first-line HCC initiated under SPA with FDA

• Pexa-Vec + sorafenib versus sorafenib

• First patient enrolled in January 2016

• Target enrollment: ~600 patients in Europe, North America and Asia

• Orphan drug designation granted

• Development partnership with SillaJen

Two exploratory trials initiated by Transgene in 2015

• Trial in breast cancer and soft tissue sarcoma in combination with cyclophosphamide (funded by INCa and sponsored by Bergonié Institute)

• Neo-adjuvant study in cancer patients to further validate Pexa-Vec mechanism of action (sponsored by University of Leeds)

Additional exploratory combination trials with ICIs planned for 2016

• Pexa-Vec + nivolumab in advanced HCC

• Pexa-Vec + ipilimumab in advanced solid tumors

TG1050: Immunotherapeutic to Treat Chronic Hepatitis B First-in-humans Trial Underway

International, randomized safety and dose-finding study in patients currently being treated with standard-of-care antiviral therapy (tenofovir or entecavir)

Primary objectives ; evaluate safety and tolerability of TG1050 administered in single and multiple doses and determine dose and schedule of administration for further development

Broad preclinical combination program with new treatment modalities (siRNA, Nucleocapsid inhibitors, …)

Intend to enter into co-development partnership

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Large unmet medical need

> 240 million people have chronic liver infections; >780,000 deaths/yr

Overall cure rate = only ~3% of cases

HBV market >$1.2B for major markets (2013)*; expected to grow significantly

* Datamonitor, Forecast Insight: Hepatitis B, 2010

Solid scientific and preclinical package

Gut. 2014 Nov 26, doi: 10.1136/gutjnl-2014-308041

Hepatology, 2013, (58) S1, 222A–22

First-in-human (Phase 1) trial initiated in 2015 1st safety read-out expected July 2016

Viral vector (adenovirus 5) expressing three HBV antigensTG1050

TG4001 for HPV induced cancers in combination with ICIs

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Active immunotherapy productTG4001Repositioned to address unmet advanced HPV caused cancer, including Head & Neck tumors

Already evaluated in clinic (Phase 2B, n=206)• In patients with high grade cervical intra-epithelial neoplasia

grade 2 or 3 associated with high risk HPV infection

Data represent a strong POC • Complete disease regression rate: 5x superior in HPV16

patients vs placebo• Viral clearance rate: 4x superior vs placebo• TG4001 was well tolerated

One of the very few drugs targeting HPV+ sub-population and combined with ICI

Phase 2 trial to be initiated in combination with ICI

Target population

• Incurable HPV+ solid tumors including Oropharyngeal squamous cell carcinoma & cervical

• Incurable locally advanced and/or metastatic solid tumors with progression after definitive local treatment or in 1s t line chemotherapy

Severe disease, better therapeutic options needed

• Prevalence Europe/US/Japan: ~12k patients (2015)

• 26%* of overall head & neck tumors are HPV+, o/w: 68 %* of oral cavity tumors are HPV16+ 87%* of oropharyngeal tumors are HPV16+ 69%* of laryngeal tumors are HPV16 +

Modified Vaccinia Virus AnkaraNon propagative virus: immunogenic vector

HPV-16

E6 E7

IL-2 Locally co-expressed:T-cell stimulatory cytokine

HPV16 E6 & E7 antigens: tumor associated antigen (TAA)

*source: Kreimer et al. 2005; meta-analysis

TG6002 New Generation of Oncolytic Virus against Solid Tumors

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Armed oncolytic Pox virus (VV) designed to selectively replicate in and destroys cancer cells while leaving normal cells/tissues unharmed

TG6002

First-in-humans trial to be initiated in Q1 2017

• Opportunity to explore TG6002 with 5-FC in a Phase 1 trial on glioblastoma under a INCa grant with Pr J-Y. Delattre (la Pitié Salpétrière)

• Open label, dose escalation, IV administration

• Mainly designed to assess safety

Pre-clinical data in an orthotopic glioblastoma model in mice

U87MG ; TG6002 IV + 5FC

Suicide geneFCU1

Non-toxicprodrug

5-FC

Toxic drug5-FU

Prodrugactivating

enzyme

Cell

death

Bystandereffect

Vaccinia Virus

• Armed with a suicide gene FCU1 which will convert the non-toxic prodrug 5-FC into the cytotoxic compound 5-FU

molecular chemotherapy

• Double deletion of genes to enhance tumor replication-selectivity

viral oncolysis

Research strategyTowards Targeted Multi-functional Viruses

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Transgene has the ability to shift towards “all-in-one“ immunotherapeutics that integrate all the factors of an efficient anti-tumor therapy: selectivity, for the tumor microenvironment, multiplicity of targets and mechanisms

Ab scFv

Cytokine, chemokine

enzyme

Selective replicationin tumor cells (TK-RR-)

Intracellular expression of various transgenes and delivery in the tumor microenvironment

Release of active payloads for bystander and/or abscopal

effects1 2

3

A safe approach: no risk for nuclear integration

UP TO 25 KB INSERTIONUP TO 5 DIFFERENT CASSETTES

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"all-in-one" VV

Tumor cellEngineering recombinant VV: fast, efficient & versatile process

AACR 2016: poster presentation of pre-clinical results with three oncolytic VV, each containing a different form of a PD-1 blockerNovel oncologic platforms being exploredMultiple collaborations around the world

Cell Lysis

FinancialsNew Funding + Reduced Cash Burn

BALANCE SHEETAt March 31, 2016:

Cash and cash equivalents: € 23.5 million

NEW FUNDING

EIB loan: €20 million in 2016

Institut Mérieux committed funding: ~€10 million

To be drawn during 2016

CASH FLOWCash burn for the 12 months ended December 31, 2015: € 34.8 million

Cash burn guidance for 2016: ~€ 35 million

RESTRUCTURINGTotal cost: ~€ 7.5 million (mainly in 2016)

Annual savings forecast: >€ 15 million as of 2016

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Sufficient Cash to Fund Operations through 2017

FINANCIAL STRATEGY~€30 Million in New Funding Secured in January 2016

• €20 million loan obtained from European Investment Bank (EIB)

Part of IDFF (Infectious Disease Finance Facility) program

Five-year loan to be released in two tranches at Company’s request

Principal and interest repayable beginning in fourth year of loan

• ~€10 million in committed funding from Institut Mérieux

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Funding represents support and validation of Transgene strategy and continuation of commitment by reference shareholder

OWNERSHIP STRUCTUREAt end of May 2016

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52%

30%

18%

RetailInvestors

Institutional Investors

Institut Mérieux

38.5 million shares outstanding+ 1.1 million options and free shares

CAC all shares,CAC all-tradable,CAC health care,CAC mid & small,CAC pharma. & bio., CAC small,Next biotech.

Expected 12 months MilestonesPipeline Offers Multiple Partnering/Collaboration Opportunities

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Preliminary results from ongoing and planned clinical trials in H2 2017

TG4010

• Initiate combination trials in NSCLC in combination with ICIs

− With nivolumab in 2nd line NSCLC, in the US

− With ICI in 1st line setting, in Europe

Pexa-Vec

• Initiate Phase 2 trial with nivolumab in first-line HCC

• Initiate Phase 2 trial with ipilimumab in advanced solid tumors

• TG1050: Preliminary safety results from Phase 1 trial

• TG6002: Initiate first-in-humans (Phase 1) trial

• TG4001: Initiate Phase 2 clinical trial with anti-PD1/PDL1

Immunotherapies for cancer and infectious diseases

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400 Boulevard Gonthier d’Andernach - Parc d’Innovation - CS80166 - 67405 Illkirch Graffenstaden Cedex France

Tél.: + 33 (0)3 88 27 91 21 Fax.: + 33 (0)3 88 27 91 11 www.transgene.fr

CONTACT

Lucie Larguier, Director Corporate Communication and Investor Relations

larguier@transgene.fr