General Shareholders Meeting 2018 Company Presentation

March 29, 2018 Oncolys BioPharma Inc.

(TSE mothers: 4588)

• This presentation material may contain information which is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. One can identify these forward-looking statements by use of words such as "strategy," "expects," "plans," "anticipates," "believes," "will," "continues," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. These risks and uncertainties include, without limitation, risks associated with the inherent uncertainty of pharmaceutical research, product development, clinical research, seeking regulatory approval and product commercialization, as well as the impact of competitive products, patents, product liability and third-party reimbursement risks associated with the pharmaceutical industry, and the other risks and uncertainties. • Product development involves a high degree of risk. Only a small number of research and development programs result in the commercialization of a product. Success in preclinical and early clinical trials does not ensure that later stage or large scale clinical trials will be successful. Many important factors affect Oncolys BioPharma’s ability to successfully develop and commercialize drugs, including the ability to secure necessary funding, to obtain and maintain necessary patents and licenses, to demonstrate safety and/or efficacy of drug candidates at each stage of the clinical trial process, to overcome technical hurdles that may arise, to meet applicable regulatory standards, to receive required regulatory approvals, to be capable of producing drug candidates in commercial quantities at reasonable costs, to compete successfully against other products and to market products successfully. There can be no assurance Oncolys BioPharma will be successful in its efforts to develop and commercialize new products. • No guarantee is made as to the accuracy, completeness or timeliness of any information, projections or opinions contained in this presentation material or upon which any such projections or opinions have been based. The information contained in this presentation material is compiled for information purpose only and does not constitute an offer or solicitation to purchase or sell any of the securities in this presentation material. • This presentation material is a summary translation of the original published in Japanese. In case of any discrepancy, the Japanese original shall prevail.

1. About Oncolys 2. Pipeline & Business Overview 3. Message to investors

Oncolys BioPharma

Oncolys Bio Pharma

Address 4-1-28 Toranomon, Minato-ku, Tokyo, Japan

Foundation March 18, 2004

Ticker & （） Market 4588 listed on December 6, 2013 President & Yasuo URATA CEO

Capital 5802 Million (December 31, 2017）

Employees 29（December 31 2017）

1983 Ono Pharmaceutical Co., Ltd. - Clinical project leader mainly for CVS and CNS

1994 Japan Tobacco Inc. (JT) 2002 Director of R&D Planning, JT - Innovative HIV drug, Viracept (Agouron), GVAX (Cell Genesys) and Cancer vaccine project (Corixa) 2004 Established Oncolys BioPharma Inc. in Tokyo, Japan

2009 Member of Bio Innovation Research Society (Ministry of Economy, Trade and Industry of Japan)

2016 Executive Officer, Oncolys USA Inc.

President & CEO Yasuo URATA

“Powering Future Oncotherapy”

Systemic treatment Prognosis follow-up

Regional treatment O N OH H HN S O S NH O Early detection O O

OBP-702 OBP-405

Our goal is to bring our innovative biopharmaceutical candidates from Japan to the world.

In-house development Licensing & launch

Licensing Cancer Diagnostics

① Upfront payment ② Milestone fees ③ Royalties, etc.

＜R&D-related＞ 1. Melanoma P2 Started 2. Esophageal cancer P1 Started OBP-301 3. HCC P1/2 Multiple administration (Cohort 5) in progress “Telomelysin®” 4. Solid tumors, with PD-1 P1/2 Started 5. Esophageal caner (USA) Scientific Advisory Board（SAB) meeting 6. 9 conference presentations, 4 publications ＜Business-related＞ 1. Milestone fee from Hengrui 2. Co-Development fund from Medigen 1. PTC feasibility study for pancreatic cancer: IRB Cancer Diagnosis 2. Joint research agreement with Juntendo University 3. SAB for NSCLC 4. 9 conference presentations, 3 publications 1. Solid tumor Phase 1 Cohort 3 in progress OBP-801 2. Possibility of 2wks sustained delivery explored Epigenetic cancer treatment 3. Pre-clinical study with Kyoto Prefectural University of Medicine extending the application into ophthalmologic field

AI-004 1. Compound screening at Kagoshima University in progress Novel HBV drug

Others 1. Completed 1.4 bn JPY financing by third-party allotment

(JPY: million)

Sales OP CP NP R&D and SG&A

Forecast FY2018 230 △1,400 △1,400 △1,400 1,6bn

Results FY2017 229 △1,078 △1,087 △1,090

yoy +1 -322 -313 -310

500 0

400 -300 0,7bn

300 230 -600 200 -900 SG&A R&D 100 -1,400 -1,200

0 -1,500 (forecast) (単位：百万円) FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 forcast SG&A

(JPY 100 million) Sales OP 10

1. About Oncolys 2. Pipeline & Business Overview 3. Message to investors

Pharmaceuticals Pre- Phase Ⅰ Phase Ⅱ Phase Ⅲ Project Indication Exploratory clinical

Melanoma Esophageal Oncolytic cancer virus HCC

OBP-702 Solid tumor

Small Solid tumor molecule OBP-801 Ophthalmic use

Anti OBP-601 HIV virus OBP-AI-004 HBV

Diagnostics

Category Pipeline/Project Indication Basic Research Clinical Study Clinical Usefulness

Tumor Solid tumor diagnostics virus

Oncolytic Oncolytic OBP-401/1101

1. Local/regional injection 2. May be effective on metastatic cancer cells 3. No hair loss / nausea 4. Possibility of cancer treatment without operation

World’s first oncolytic virus approved by FDA

Bluming AZ, and Ziegler JL 27 October 2015 Lancet, 2 (7715):105-106, 1971

1912 Attenuated rabies virus Uterine cervical cancer DePace et al. 1922 Vaccinia virus, NDV Ascitis tumors (mouse) Levaditi & Nicolau

1950 Attenuated rabies vaccine Melanoma Pack

1952 Myxo, paramyxo, arbovirus Various tumors Southam et al.

1957 Coxsackie B Various tumors Suskind et al. 1965 NDV Ascitis tumors (mouse) Cassel et al.

1974 Mumps Various tumors Asada

Normal cell (Telomerase activity－） No replication No cytophathy

Induced cell death Cancer cell Replication of and diffusion of Telomelysin Telomelysin (Telomerase activity+)

Ref.) The Lancet Oncology Vol. 3 Jan. 2002

Colorectal （15 days after administration） Lung Day 0 Day 14 Day 28 cancer cancer Control group Telomelysin

Control group

Telomelysin Ref) Curr. Cancer Drug Targets, 7: 191-201, 2007 )

Tumor type Treatment Country Pre-clinical Phase Ⅰ Phase Ⅱ Phase Ⅲ

Radiation OBP sponsored clinical trial

Esophageal Radiation Investigator initiated JP Cancer clinical trial

Anti PD-1 Investigator initiated clinical research

Melanoma Monotherapy US

Taiwan HCC Monotherapy Korea

HNSCC Radiation JP Planning

Sarcoma Radiation JP

※Jiangsu Hengrui’s project is not included in this table. )

“A cure without operation”

Number of cancer death worldwide (Number of patients) 1 Lung 1,590,000 2 Liver 780,000 ①Radiotherapy for inoperable patients 3 Stomach 720,000 →Unmet Medical Needs 4 Colorectal 690,000 5 Breast 520,000 ②Combination with radiochemotherapy Esophageal before operation 6 400,000 cancer →Adjuvant therapy Ref: WHO 2012 research ③Combination with immunotherapy Esophageal cancer incidence worldwide Total:456,000 cases (anti-PD-1 antibodies) 13,000 24,000 26,000 アジアAsia

53,000 欧州Europe

アフリカAfrica Radiation

北米N. America

340,000 その他Others

6 CR in 10 cases

Radiation therapy 5 times/week (Mon- Fri) x 6 weeks

Day 1 Day 4 Day 18 Day 32

Toshiyoshi Fujiwara, M.D., Ph.D. Professor & Chairman Department of Gastroenterological Surgery, Okayama University Graduate School of Medicine, Dentistry, and Pharmaceutical Sciences

(Ref: Press release from Okayama University etc.)

Clinical trial is in progress in Okayama University and NCCHE.

1. Phase I completion expected within 2018

2. Preparation for Phase II/III for Radiation + Telomelysin

 Multicenter trial in Japan

 Preliminary consultation with PMDA

 Trial expected to start in 2019

Radiation + Telomelysin

Discussion on expanded indication of Telomelysin(20 Jan)

Name Specialty Institution Weill Cornell Medicine/ Manish Shah, MD Medical Oncology NewYork-Presbyterian Memorial Sloan Kettering David Ilson, MD, PhD Medical Oncology Cancer Center Khaldoun Almhanna, MD Medical Oncology Moffitt Cancer Center Toshiyoshi Fujiwara, MD, PhD Surgical Oncology Okayama University Lawrence Kleinberg, MD Radiation Oncology Johns Hopkins Tanguy Seiwert, MD Immunologist U. Chicago Kenneth Wang, MD Endoscope Specialist Mayo Clinic Field Willingham, MD Endoscope Specialist Emory University ＜Stomach and gastroesophageal cancer> Case Stage Combination １ Stage IV Metastatic ICI ２ cStage II/III Inoperable CRT ３ cStage II/III Operable CRT

 Number of patients: approx. 31,000 in 2014  Estimated incidence: approx. 22,000 between 2015 - 2019 (Incidence worldwide: approx. 456,000 in 2012) (Incidence USA: approx. 17,000 in 2017 ) Stage Ⅳ Metastasis/operation inapplicable patients

＋ Stage Ⅰ・Ⅱ・Ⅲ ICI: pembrolizumab Operation applicable

Stage Ⅰ・Ⅱ ＋ Operation/chemotherapy Pre-operative inapplicable patients chemotherapy/radiation ＋ Radiation

Ref.) PMDA 2014 Patient Report (2014), NCC Center for Cancer Control and Information Services, Cancer today IARC website.

“Enhancing tumor immunity”

Melanoma incidence worldwide in 2012

Total:231,000 cases

28,000 欧州Europe

6,000 北米N. America

アジアAsia 22,000 1. Most cases are curable if surgically-treated early. 100,000 アフリカAfrica 2. Prone to metastasis →Brain, lung, liver その他Others 3. Median survival of terminal stage patients is 75,000 6 months while one-year mortality is 75%.

（Ref：GLOBOCAN2012）

Before administration After 4 weeks

American, Female in 50s, melanoma with metastasis to left femoral area 25mmx8mm 33mmx16mm (↓33.4%)

Solid tumor patients who have no other treatment 1. choices participated in this clinical trial. Tumor shrinkage was confirmed in 7 out of 22 2. patients. Fever (around 38℃) 24-48 hours after 3. administration observed 4. Telomelysin administered via out-patient visit

Investigators Clinical trial sites Dr. Eric Whitman Atlantic Health Systems Dr. Robert Andtbacka Huntsman Cancer Institute Dr. Mohammed Milhem University of Iowa Dr. Sanjiv Agarwala St. Luke's University Health Network Inc. Dr. Sunil Reddy Stanford University

Unresectable or metastatic melanoma – Max. 50 patients to be enrolled 6 months, high dosage group only, multiple location Efficacy, safety and immunological response

“Challenge to refractory cancer”

HBV/HCV Chronic Hepatic HCC infection Hepatitis Cirrhosis

Number of cancer death worldwide HCC incidence worldwide Common treatment options Total:782,000 cases 1 Lung 1,590,000 33,000 1.Surgery/resection 2 Liver 780,000 33,000 59,000 2.Embolization/ablation アジア 3 Stomach 720,000 Asia 63,000 欧州Europe 3.Chemotherapy 4 Colorectal 690,000 アフリカAfrica

北米N. America 5 Breast 520,000 590,000 その他Others 6 Esophageal 400,000

Ref: WHO 2012 research Ref: 2012 INAC data

Max dose（Cohort4）administration completed 1 & multiple administration（Cohort5）in progress Decide injection location Directly injected to using ultrasonograph tumor cell Expected to advance to Phase Ⅱ soon, as 2 monotherapy or in combination with CPI

National Pusan Univ. Dr. Jeong Heo

National Taiwan Univ. Dr. Pei-Jer Chen

Tumor type Treatment Country Pre-clinical Phase Ⅰ Phase Ⅱ Phase Ⅲ

Radiation

Anti PD-1 Investigator initiated Complete clinical trial JP

Radiation Esophageal Investigator initiated Complete clinical research Cancer ICI US CRT

Monotherapy Taiwan HCC Korea ICI

Monotherapy Melanoma US ICI併用

HNSCC Radiation JP

Sarcoma Radiation JP

NG Telomelysin ー Lung・Colorectal cancer US

NG Telomelysin

T cell Immunotherapy

T Lymphocyte Co-stimulate molecule

Cancer cell CPI PD-L1

PD-1 Cancer cell

Oncolytic virus

Virus particle

Telomelysin •Local administration Telomelysin •Indirectly enhance immunity OBP-702 OBP-702 •Weaker proliferative capacity with stroma cells p53

Next Generation Telomelysin A

lymphocyte CP p- •Local/intravenous stimulation suppressor E1 Telomelysin Next Generation administration molecule molecule Platform Telomelysin •Directly enhance immunity Next Generation Telomelysin B lymphocyte p- lymphocyte Cell specific •Effective in stroma cells stimulation p E1 stimulation Fiber molecule

TelomeScan

TelomeScan GFP •Diagnostic virus TelomeScanF35 TelomeScanF35

GFP miR142

GMP manufacturing started in China CFDA announcement for acceptance of overseas data（8 Oct 2017）

Jiangsu Hengrui Medicine（江蘇恒瑞医薬股份有限公司）

Sales: JPY180 bn（FY2016） Number of employees: 13,000

Name Market cap (JPY, bn)

Takeda 4,361

Jiangsu Hengrui 4,129 Jiangsu Hengrui Astellas 3,285

Chugai 2,966

Otsuka HD 2,838

Daiichi Sankyo 2,483

Shionogi 1,730

Eisai 1,971 Ref：Bloomberg and other public data as of 26 March 2018

Melanoma Esophageal cancer Extended co-development HCC

HCC CMC/GMP

Steady cost reduction for R&D

Medigen Biotechnology Corp. Taiwan Stock Exchange（3176） HQ：Taipei, Taiwan Stanley Chang, CEO

Normal cell Telomerase activity -

Infection

Tumor cell Fluorescent emission by GFP Telomerase activity + GFP TelomeScan

1. Express GFP when infected to CTCs 2. Detect “live” malignant tumor 3. May be used to decide treatment/medication options after surgery

1. Detection rate using tumor diagnostic markers currently available is around 30-40% 2. PET and MRI only detect tumor cells bigger than 1㎝ 3. CTCs seep from tumor cells undetectable by PET and MRI

Primary tumor

Hematogenous translocation EMT CTC Metastasis/ Vascular invasion Recurrence CTC

Vascular

Tumor size ・Tumor marker ・Diagnostic imaging Surgery Radiotherapy Chemotherapy

Metastasis/ Recurrence

0.5～1cm

Recurrence- Invisible CT/MRI/Marker free/cure tumor Primary tumor

Time

Immunostaining GFP Tumor type (TelomeScan) CD45 Phenotyping Composite Bright-field Vimentin Lung Mesenchymal CTC

Cytokeratin Prostate

Cytokeratin Ovary

Cytokeratin Breast Epithelial CTC

＜NSCLC＞ Project led by University of Pennsylvania

CTC CTC CTC CTC CTC CTC CTC CTC CTC CTC CTC

Chemoradiation therapy（CRT） Recurrence 5weeks

Treatment continued

Gene analysis Selection of treatment

（ of CTC # Treatment complete Follow-up

）

HPV is the cause of Cancer Cervical Cancer 1, 2 ~100%

Vaginal HPV Cancer 1 60~90%

Head & Neck Cancer 2 12~70%

HPV is NOT detected in Blood Stream, but in ONLY CTC

1; Braaten KP et al. Rev Obstet Gynecol. (2008) 2; IARC. IARC monographs on the evaluation of carcinogenic risks to humans. Human papillomaviruses. Vol 90. Lyon, France:IARC (2007)

Cervical Cancer < Sensitivity > < HPV Typing in CTCs > (≥1 cell/7.5ml of peripheral blood tested positive) HPV type 100 # Stage

(%) CTC Primary 80 2 IIA 16 16 60 39.0% 4 recurrence undetected 33 (16/41) 40 5 IB1 16 16 6 IB1 16 16 20

10 recurrence 16 16 CTC positive rate positive CTC 0 Total 16 IB1 16 16 100 71.4% (%) 80 (5/7)

60 32.4% 40 (11/34)

20 Detected in 5/6 pts

CTC positive rate positive CTC 0 Primary Recurrence Takakura et al., Cancer science (2017)

 Joint research with Division of Respiratory Medicine, Juntendo University since Nov. 2017  Juntendo promotes it as a cross-sectional research project joined by medical doctors in wide range of oncology-related fields.

Juntendo Oncolys University Biopharma

1. Practical use in clinical settings across Japan for detection of early and recurrent tumors 2. Automation of tumor detection system

Non-Japanese corporates N. America, 2015

Japanese corporates and academia

Korea, 2014 Licensed Licensing/collaboration activities

1. About Oncolys 2. Pipeline & Business Overview 3. Message to investors

New Jersey

Copyright(C) 2018, Oncolys BioPharma Inc. All rights reserved. 48 Oncolys’ financial grounds in mid-long term Further Growth & Business Expansion More license agreements  New pipeline  Next generation Telomelysin Stronger financial OBP-XXXX OBP-YYYY grounds

New license agreements

Milestone fees & virus sales based on current license agreements Jiangsu Hengrui, Wonik Cube, Deciphera, etc.

Steady income Co-development fund from Medigen

Pipeline Licensee Licenser Type Deal size

T-VEC Licensing BioVex Amgen JPY 110bn （Imlygic®） (Acquisition）

Licensing CAVATAK® (CVA21) Viralytics Merck JPY 42.3bn (Acquisition)

Licensing/ JPY 103bn NG-348 PsiOxus Therapeutics Bristol-Myers Squibb Co-development （Upfront JPY 6.5bn）

Co-development/ JPY 27.3bn VSV-GP ViraTherapeutics Boehringer Ingelheim Conditional （Upfront JPY 2.6bn） acquisition

Licensing/ WO-12 Western Oncolytics Pfizer Not disclosed Co-development

ONCR-001 Oncorus Celgene Capital alliance Not disclosed

（1USD=JPY110、1EUR=JPY130、1AUD=JPY85）

（Ref：company websites and public information as of Jan 2018）

“Powering Future Oncotherapy”