Investor Presentation

February 2015 Nasdaq: ALQA

Forward-Looking Statement Disclaimer

This presentation contains forward-looking statements. Forward-looking statements are
generally identifiable by the use of words like "may," "will," "should," "could," "expect,"
"anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or
other variations on these words or comparable terminology. The reader is cautioned not to
put undue reliance on these forward-looking statements, as these statements are subject to
numerous factors and uncertainties outside of our control that can make such statements
untrue, including, but not limited to, the adequacy of the Companys liquidity to pursue its
complete business objectives; inadequate capital; the Companys ability to obtain
reimbursement from third party payers for its products; loss or retirement of key executives;
adverse economic conditions or intense competition; loss of a key customer or supplier; entry
of new competitors and products; adverse federal, state and local government regulation;
technological obsolescence of the Companys products; technical problems with the
Companys research and products; the Companys ability to expand its business through
strategic acquisitions; the Companys ability to integrate acquisitions and related businesses;
price increases for supplies and components; and the inability to carry out research,
development and commercialization plans. In addition, other factors that could cause actual
results to differ materially are discussed in our Annual Report on Form 10-K filed with the SEC
on February 24, 2015 and our most recent Form 10-Q filings with the SEC. Investors and
security holders are urged to read these documents free of charge on the SEC's web site at
www.sec.gov. We undertake no obligation to publicly update or revise our forward-looking
statements as a result of new information, future events or otherwise.

Alliqua BioMedical: Corporate Vision

To build a suite of advanced wound care

solutions that will enable surgeons, clinicians &
wound care practitioners to address the entire
spectrum of challenges presented by chronic
and acute wounds

Alliqua BioMedical: Brief Corporate History

MAY 2010

HepaLife Technologies (OTCBB: HPLF) acquires AquaMed Technologies, Inc.

DEC. 2010

Company renamed Alliqua, Inc.

MAY 2012

New Chairman of the Board: D R . J E R R Y Z E L D I S - Chief Medical Officer of Celgene

Corporation since 1997

FEB. 2013

New Chief Executive Officer: D A V I D J O H N S O N - Former CEO of ConvaTec

MAR. 2013

Refocused company on building a diversified wound care portfolio

SEPT. 2013

Announced commercial rights to sorbion product in the Americas

NOV. 2013

Announced licensing agreement with Celgene Cellular Therapeutics

JAN. 2014

Uplisted to NASDAQ exchange

MAY 2014

Announced definitive agreement to acquire Choice Therapeutics

JAN. 2015

Expanded sell-side coverage of ALQA to a total of five research firms: Alere Financial, Craig-Hallum
Capital Group, H.C. Wainwright & Co., Laidlaw & Company, & Northland Securities

FEB. 2015

Announced definitive agreement to acquire Celleration, Inc.

Why Advanced Wound Care?

Large & Growing Global Market

Global Advanced Wound Care Market

Estimated at $8+ Billion*

Large and growing patient population

U.S. represents more than half of the

Global market
U.S. market highly fragmented

Growth in wound incidence

expected due to demographic
trends in diabetes and obesity
U.S. Annual Wound Incidence*

U.S. Wound Care Market Share

(Illustrative)

CHRONIC WOUNDS
(5.1+ MILLION)

~100+
Private &
Micro-Cap
Companies
50%

~5 Large,
Diversified
Companies
50%

Diabetic Foot Ulcers

Burn Wounds

(5 15% of all diabetics =

~2.0M)

(~120K in-patient & ~650K

out-patient)

Pressure Ulcers

Trauma Wounds

(~2.5M in acute care

facilities alone)

Surgical Wounds

(~600,000)

(~29M surgical procedures

per year)

Arterial Ulcers

(~2.5M trauma hospital

admissions per year)

Venous Leg Ulcers

(~10% of all leg ulcers)

*Source: CDC.gov, Wound Healing Society, Journal of Wound Repair and Regeneration
(Vol. 17, Issue 6) & Alliqua management estimates

ACUTE WOUNDS
(770,000+)

Why Advanced Wound Care?

Clinical Need & Compelling Market Dynamics

Clear clinical need for advanced wound care

therapies
Shift from conventional to sophisticated wound care
products
Skin & skin substitutes sub-segment underpenetrated
(represents just ~5% of the global advanced wound care
market today*)

Better/faster wound healing = Lower overall

treatment costs
Reduced hospitalization times, incidence of HAIs,
retreatment rates and risk of amputation

Venous leg ulcer

Diabetic foot ulcer

Multi-clinician user base

Surgeons, nurses and wound care specialists

Multi-channel customer base

Hospitals, ASCs, burn centers, wound care centers and
trauma centers

*Source: CDC.gov, Wound Healing Society, Journal of Wound Repair and

Regeneration (Vol. 17, Issue 6) & Alliqua management estimates

Pressure ulcers

What Did Alliqua Look Like in Early 2013?

Contract Manufacturing Business

Unique Electron Beam Hydrogels

Medical Device Customers

2012
Revenue
$1.2M

Unique Hydrogel Wound Care Products

No
Revenue

FDA Cleared
Fully Reimbursed

SilverSeal

Alliqua BioMedical: Growth Strategy

Phase One: Develop the Platform
Initiated Phase One of Growth Strategy in Q213 with Four Objectives:

1. Build an experienced management team

2. Access new sources of financing to support growth
initiatives
3. Create an integrated portfolio of wound care
technologies though acquisitions, licensing and
distribution agreements
4. Establish a world-class sales and distribution
infrastructure
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Alliqua BioMedical: Growth Strategy

Phase One Objective #1: Build an Experienced Management Team

100+ Years of Combined Wound Care Experience

Name

Title

Previous Employers

Brian Posner

Chief Financial Officer

Brad Barton

Chief Operating Officer

President of ConvaTec Americas

Lori Toner

Chief Marketing Officer

VP of Global Marketing

Janice Smiell, M.D.

Chief Medical Officer

Gregory Robb

VP of Operations

Chief Financial Officer

VP of Medical Affairs
Exec. Director of Global Clinical R&D
Senior Director of Global Clinical R&D

VP of Operations

Alliqua BioMedical: Growth Strategy

Phase One Objective #2: Access New Sources of Financing to Support Growth Plan
$37M Raised Since Beginning of 2013
APR. 14

Raised gross proceeds of $20.3M

-$5.3M from warrants and $15M from sale of common stock
-Major investors: Celgene, Broadfin, Perceptive Advisors & J. Goldman

NOV. 13

Raised gross proceeds of $13M

-$6M from Celgene
-$7M from major healthcare investors including Broadfin and Perceptive Advisors

NOV. 13
APR. - JUN. 13

Raised $1M from Crossover Healthcare Fund

Raised $3M led by Mgmt. and Directors
December 31,

December 31,

2014

2013

Cash & Cash Equivalents

Current Assets
Total Assets:
Current Liabilities
Total Debt
Total Liabilities:
Total Stockholders Equity

$16,770,879
$19,629,067
$29,723,724
$4,129,824
$0
*$7,212,493
$22,511,231

*Includes contingent consideration liability of $2.9M related to Choice Therapeutics acquisition

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$12,100,544
$12,847,234
$17,451,568
$3,353,464
$0
$3,498,876
$13,952,696

Alliqua BioMedical: Building the Portfolio

Phase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies

The Criteria

Unique differentiated

Risk Adjusted regulatory & reimbursement

Clinically efficacious

Economic value proposition

Strong margin profile

Targeting

Wound bed preparation

Exudate management

Anti-microbial technologies

Regenerative medicine

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Alliqua BioMedical: Building the Portfolio

Phase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies
DISTRIBUTION
PARTNERSHIPS

September, 2013
Long-term, exclusive
agreement to
distribute sorbionbranded products in
the Americas

Sorbion Sachet S

sorbion Sana

LICENSING
AGREEMENTS

TARGETED
ACQUISITIONS

November, 2013
Licensing, marketing,
development and
supply agreement
with CCT, the
placental tissue &
stem cell R&D division
of Celgene

BIOVANCE

Dermal Repair
Scaffold

May, 2014

February, 2015*

Acquired wound care

portfolio, technology
platform, and sales
and marketing team

Acquiring new
reimbursed
technology platform,
and sales and
reimbursement
resources

TheraBond 3D

*Acquisition announced February 2, 2015; anticipated close by June 30, 2015

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MIST Therapy

UltraMIST

Celleration Acquisition: MIST Therapy and UltraMIST

Phase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies

Use low frequency ultrasound waves to stimulate the cells below the
wound bed surface, a region that was previously inaccessible to wound
care practitioners

The only known noncontact, low-frequency, ultrasound devices cleared by the

FDA with an indication to promote wound healing

Reimbursed by CMS

Covered in 5 of 8 Medicare administrative contractors representing 44 states

Hospital (APC) payment rate increasing from $83.73 to $146.08 in 2015

UltraMIST System

Reimbursed on physician schedule at a rate of $123.16 beginning in 2015

Strong clinical support

MIST Therapy System

FDA 510(k) cleared; CE Mark

Accelerates healing and wound closure

Reduces wound inflammation and bacteria/bioburden
Increases blood flow to the afflicted area

5 randomized controlled trials, 10 other prospective or retrospective studies, 25

case series and 1 meta-analysis with nearly 450 subjects

Commercial traction

UltraMIST Applicator

$8.7 million of sales in fiscal year 2014

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A Strong, Comprehensive and Unique Portfolio

Phase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies

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Alliqua BioMedical: Regulatory & Reimbursement

De-Risking the Business Model
Product

FDA Clearance

Medicare Reimbursement

Hydress

n/a

HCPCS A Code Hydrogel Dressing

SilverSeal

510(k)

HCPCS A Code Hydrogel Dressing

sorbion Products

n/a

HCPCS A Code Alginate Dressing

TheraBond 3D

510(k)

HCPCS A Code Contact Layer

BIOVANCE

PHS 361 product*

Received HCPCS Q Code (Q4154) in Nov. 14;

HCPCS Q Code went into effect on Jan. 1, 2015

510(k)

AMA approved a CPT I code, 97610, effective Jan14

Low-frequency, noncontact, nonthermal ultrasound,
including topical application(s), when performed, wound
assessment, and instruction(s) for ongoing care, per day.
Coverage by 5/8 MACs (44 states)

MIST TherapySystem

*commercially available under Section 361 of the Public Health Service Act, which allows minimally manipulated human cells, tissues, and cellular
and tissue-based products (HCT/Ps) to be marketed in the United States (U.S.) without pre-market FDA approval (also called a 361 product)

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Alliqua BioMedical: Commercial Strategy

Phase One Objective #4: Establish a World-Class Sales and Distribution Infrastructure

25 direct sales representatives as of 12/31/14

Celleration acquisition* will add 19 additional sales personnel

42 indirect sales force representatives

National Distribution Partners:

Product supply group purchasing agreements (GPO contracts):

MedAssets (awarded August 2014)
Premier (awarded December 2014)
*Acquisition announced February 2, 2015; anticipated close by June 30, 2015

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Revenue Growth Trends Improving

Strong Growth of Proprietary Products in 2014; FY15 Guidance Implies Continuation of Trends

Revenue growth of proprietary products in 2014 driven by the combination of:

Increasing sales force productivity following investment in March
Ramp in sales of sorbion products & Launch of BIOVANCE in April
Acquisition of Choice Therapeutics in May
In Q414, revenue from proprietary products accounted for 81% of total
revenue, compared to 23% of revenue in Q413

$20,000,000
$15,000,000
Mid-Point
of 2015
Guidance*

$10,000,000
$5,000,000
$0
2012
Contract Manufacturing

2013

2014

ALQA Proprietary Products Revenue*

*Proprietary products revenue includes contributions from the Choice Therapeutics acquisition of $323,000, $577,000 and $596,000 in
Q214, Q314 and Q414, respectively. FY15 includes mid-point of Celleration 2H15 guidance ($4.75M) and assumes a June 30th
closing date.
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2015

Alliqua BioMedical: Growth Strategy

Phase One: Summary of Progress ToDate (Q213 to Q414)
Focus Area

Summary of Progress

New Chief Executive Officer, Chief Financial Officer, Chief Operating Officer,
Chief Medical Officer & Chief Marketing Officer
New Board members: Perry Karsen, Andrew Africk and Gary Restani

Raised gross proceeds of $37M

Cash balance improves to $16.8M at end-Q414 from $28K at end-Q113

Launched BIOVANCE
Acquired Choice Therapeutics TheraBond 3D
Celgene Licensing Agreement BIOVANCE & Dermal Repair Scaffold
o Expanded to Orthopedic and Podiatric Applications
sorbion Distribution Agreement sachet S & sana

Sales Distribution
and Infrastructure

Created direct sales force (25 total reps at end-Q214)

42 indirect sales force representatives
6 partnerships with national distributors
GPO contract with MedAssets & Premier

Revenue
Performance

Total revenue increased 166% Y/Y to $4,786,131

Proprietary products revenue increased 1,577% Y/Y to $3,003,521

Management &
Board Leadership
Financing

Product Portfolio

(12-Months ended Q414)

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Alliqua BioMedical: Growth Strategy

Phase Two: Continue to Expand and Leverage the Platform to Drive Performance

Drive revenue growth with current product portfolio through:

Improving sales force productivity,
Further penetration of the advanced wound care market, and
New GPO contracts

Complete acquisition of Celleration by June 30th, 2015 and integrate

Pursue reimbursement coverage for BIOVANCE from Medicare
Reimbursement Contractors (MACs)

Expand advanced wound care product portfolio by leveraging the

development pipelines of our strategic partners and opportunistically
pursuing additional platforms

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Nasdaq: ALQA
Alliqua BioMedical, Inc.
info@alliqua.com
2150 Cabot Blvd West
Langhorne, PA 19047
(215) 702-8550