Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Allon Therapeutics Inc.

Corporate Overview
January 2011

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Forward Looking Statements

Statements contained herein, other than those which are strictly statements of historical
fact may include forward-looking information. Such statements will typically contain words
such as "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends",
"expects", and similar expressions. While forward-looking statements represent
management’s outlook based on assumptions that management believes are reasonable,
forward-looking statements by their nature are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, events or developments
to be materially different from any future results, events or developments expressed or
implied by them. Such factors include, among others, the inherent uncertainty involved in
scientific research and drug development, Allon's early stage of development, lack of
product revenues, its additional capital requirements, the risks associated with successful
completion of clinical trials and the long lead-times and high costs associated with
obtaining regulatory approval to market any product which Allon may eventually develop.
Other risk factors include the limited protections afforded by intellectual property rights,
rapid technology and product obsolescence in a highly competitive environment and
Allon’s dependence on collaborative partners and contract research organizations. These
factors can be reviewed in Allon’s public filings at www.SEDAR.com and should be
considered carefully. Readers are cautioned not to place undue reliance on such forward-
looking statements. Similarly, nothing in this presentation is meant to promote a
pharmaceutical product or make a regulated claim of efficacy.

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Allon Overview

 Portfolio of novel neuroprotective peptides with broad

clinical applicability & disease-modifying mechanism
 International pivotal study underway in orphan market with
SPA, Orphan Status (US & EU) and Fast Track
 Lead demonstrated human POC in two Phase II studies +
positive imaging biomarker data
 Pursue orphan market for first approval and proceed to
major markets post approval
 Financial resources to execute through major milestones
 Strong IP estate
 Management team with proven & repeated track record

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Allon’s Neuroprotective Platforms

Disease Injury

Glial-derived neuroprotectants

Activity-Dependent Activity-Dependent
Neuroprotective Protein Neurotrophic Factor

NAPVSIPQ SALLRSIPA

ADNP platform ADNF platform

 Davunetide; NAP; AL-108  D-SAL; AL-309 (9 a.a.)
 Dementia/Cognitive impairment  SAL; AL-209 (9 a.a.)
 AD, CIAS, FTD (PSP)  Neuropathies

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Fundamental Mechanism of Action

Microtubules
Essential for neuronal structure and function

Neurodegeneration
 Destabilization and
breakdown of microtubules
 Tau hyperphosphorylation
 Progressive loss of function
 Leads to cell death

Neuroprotection
 Davunetide crosses the human blood
brain barrier
 Reduces Tau hyperphosphorylation
 Stabilize and repair microtubules
 Restore neuronal structure and
function

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

ADNP Platform
Davunetide

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Davunetide Impacts Relevant Neuropathology

Amyloid Beta TAU Phosphorylation

120 120
Abeta1-40 Abeta1-42
100 100

Phosphorylated Tau level

*

(% of vehicle group)
(% of vehicle control)

** 80
Brain A-beta levels

80

60
60
***
40
*** ***
40

20

20 ***p<0.001
** p<0.05 0
* p=0.06 Veh. Davunetide Veh. Davunetide Veh. Davunetide
0 CP13
AT8 AT180
Veh. Davunetide Veh. Davunetide
(Ser /Thr205)
202
(Thr231) (Ser 202)

 Significant reduction in levels of beta-amyloid and

phosphorylated tau
 Significant behavioral outcome in animals

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Clinical Strategy

P/C & Phase 1 P2a – AD Program P2/3 Pivotal Study

 144 subjects
 Safety/PK Studies  2 doses (5 mg/QD, 15 mg  Progressive Supranuclear
BID) Palsy
 12 weeks
 Safety to 60 mg/day  Early onset dementia
 Randomized, placebo
controlled, double blind
 CSF penetration  17 US sites  Rapid decline
P2a – Schizophrenia
 Brain via systemic  No effective treatment
 63 subjects
distribution  2 doses (5 mg QD, 15 mg BID)  Validated rating scale
 12 weeks
 Healthy normal/aged,  Randomized, placebo controlled  Powered as a pivotal study
double blind
AD, FTD  7 US sites  Defining future steps in
P2a – Imaging Biomarker AD/Schizophrenia
 35 P/C studies in 17
 18 subjects  2nd generation formulation
models
 2 doses (5 mg/QD, 15
underway for market
mg BID)
 12 weeks
separation
 Randomized, placebo
controlled double blind
 3 US sites

410 subjects dosed with davunetide

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Statistically Significant Improvement on Memory (aMCI)

100
p=0.038
DMTS, 12 sec delay (%CFB)

80 p=0.064
p=0.039
60
p=0.067
40

20

Drug administration Follow-up

-20
0 4 8 12 16
Week

placebo 5 mg QD 15 mg BID

 Statistically significant, dose dependant and durable impact

seen at 12 second delay when memory is measured
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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Statistically Significant Improvement on Memory

(aMCI)

18
16 p=0.032 p=0.052
p=0.059 n.s.
14
Digit Span, Forward (%CFB)

12
10 placebo
8 5 mg QD
6 15 mg BID
4
2
0 Drug administration Follow-up
-2
-4
0 4 8 12 16

 Statistically significant, dose

We e k dependant, and durable

impact on working memory

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Statistically Significant Improvement on ADLs

UPSA Change-from-Baseline
50

Week 6 Week 12
40

Mixed Model ANCOVA

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 5 mg vs placebo:
20  p=0.023 Week 6; p=0.088 Week 12
T-Score (CFB)

 Combined 6 and 12 weeks versus

10 placebo p=0.015
 15 mg vs placebo:
0
 p=0.079 Week 6; p=0.387 Week 12

-10

-20

-30
placebo 5 mg QD 15 mg BID placebo 5 mg QD15 mg BID

Conclusion
 Statistically significant treatment effect of davunetide 5 mg QD and combined
treatment groups versus placebo
 Davunetide 15 mg BID did not reach significance but not different from 5 mg QD
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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Statistically Significant Improvement on Biomarker

 Integrity of neuronal function in DLPFC by NAA correlates with activation of working memory
in schizophrenia
Important
Biomarkers

 Davunetide can increase the metabolic integrity as measured by the NAA/Cr ratio compared
to baseline

Hypothesis

 Statistically significant (p=0.017) increased NAA levels were found in patients treated with
davunetide –vs- baseline

Result

 Davunetide can impact the neuronal health and function of the brain in areas critical to
cognitive impairment

Conclusion

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Davunetide PSP Pilot Study with UCSF

 N = 12 (8 active, 4 placebo), mixed population (PSP, CDS, PNFA), 15mg BID, 12 weeks

Pilot Study

 More AEs in treated but Davunetide was safe and well tolerated by subjects
Safe and Well
Tolerated

 Clear trend on RBANS cognitive measures with sub domain

analysis underway
Cognitive Trend

 Analysis underway on CSF biomarkers

Biomarkers to
come

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Phase 2/3 Progressive Supranuclear Palsy

 Early-onset dementia characterized by tau pathology

 No available treatment
 US Orphan granted (20,000 patients); EU Orphan granted
(50,000 patients)
 Fast Track Granted
 Validated rating scale measuring clinically relevant
outcomes
 Appears to meet criteria for single study approval
 Pilot study at UCSF completed
 Phase 2/3 study powered as a pivotal study
 Significant future potential in other sub-types of
frontotemporal dementia
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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Phase 2/3 Progressive Supranuclear Palsy

 300 subjects randomized 1:1

 30 mg Davunetide BID or placebo
 Primary outcomes: PSP Rating Scale and SEADL
 Secondary outcomes: CGI, MRI, + various exploratory
 US, Canada, UK, France, Germany, & Australia
 Very tight inclusion/exclusion criteria
 Enrolment commenced Q4 ‘10

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Davunetide Market Strategy

FTD

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Balanced Clinical Development Strategy

Indication Preclinical Phase 1 Phase 2 Phase 3

Davunetide PSP
Alzheimer’s
Schizophrenia

2nd Generation Dementias

AL-309 Neuropathy

AL-408 Neuroprotection

AL-508 Neuroprotection

Completed Underway

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Capital Snapshot

 $21.7-mm available for clinical development

 $11.7-mm cash (Q3’10)

 $10-mm equity line

 ‘10 burn rate $750k/month

 78-mm shares (85.8-mm fd), no prefs, no debt

 Market cap ~ $35-mm

 Volume ~ 125 k/day

 Institutional ownership ~ 60%

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 Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

Allon Summary

 Phase 2 human proof of concept on memory, activities

of daily living and imaging biomarker
 International pivotal study underway with SPA
 First clinical program validating the tau pathway
 First clinical program to impact both amyloid beta and
neurofibrillary tangles
 15 families of 55 issued composition of matter and use
patents & 35+ pending
 Broaden the pipeline assets
 Management team with consistent track record of
execution and achievement

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Allon Therapeutics Inc. ©2011 Allon Therapeutics Inc.

www.allontherapeutics.com

TSX:NPC

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