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Detecting Cancer in Blood Company Presentation Safe harbor statement Forward Looking Statements This communication contains certain forward-looking statements, including, without limitation, statements containing the words “expects”, “future”, “potential” and words of similar import. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results of operations, financial condition, performance, or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: uncertainties related to results of our clinical trials, the uncertainty of regulatory approval and commercial uncertainty, reimbursement and drug price uncertainty, the absence of sales and marketing experience and limited manufacturing capabilities, attraction and retention of technologically skilled employees, dependence on licenses, patents and proprietary technology, dependence upon collaborators, future capital needs and the uncertainty of additional funding, risks of product liability and limitations of insurance, limitations of supplies, competition from other biopharmaceutical, chemical and pharmaceutical companies, environmental, health and safety matters, availability of licensing arrangements, currency fluctuations, adverse changes in governmental rules and fiscal policies, civil unrest, acts of God, acts of war, and other factors referenced in this communication. Given these uncertainties, prospective investors and partners are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such forward-looking statements to reflect future events or developments. 1 11/23/2016 First FDA approved blood-based colorectal cancer screening test Our high-performing, minimally-invasive tests have the potential to radically improve cancer detection. By leveraging our expertise in epigenetics as well as our product pipeline and strong IP, we are uniquely positioned to drive patient access to cancer testing through liquid biopsy. 2 11/23/2016 Epi proColon receives FDA approval (April 2016) First and only FDA-approved blood-based colorectal cancer screening test Epi proColon® is indicated for colorectal cancer screening: -in average-risk patients -who were offered and decline colonoscopy and stoolbased fecal immunochemical tests (FIT) 3 11/23/2016 Colorectal cancer: One in three in the USA remains unscreened 35% Stagnant screening rate over the past years 60% Unscreened eligible population 63% 65% 65% 2010 2012 Screening gap Significant portion of population remains unscreened 80% 65% Screened population 2006 2008 2018 About 23 million eligible Americans are not screened for colorectal cancer Sources: Centers for Disease Control and Prevention, “Vital Signs”, November 2013; American Cancer Society Cancer 4 11/23/2016 Facts and Figures, 2015. Data from the BRFSS survey reported in MMWR 60(26)884-889, MMWR 62(44):881-888. Colorectal cancer: Early detection saves lives 5 Diagnosed in Stage I Diagnosed in Stage IV 9 out of 10 survive 1* out of 10 survive 5 years 5 years 11/23/2016 Source: American Cancer Society, Cancer Facts & Figures 2015; *rounded (13%) Targeting deadly cancers Colorectal Cancer Lung Cancer US population US population 224,390 158.080 134,490 49.190 Annual New Cases 6 11/23/2016 Annual Deaths Annual New Cases Sources: American Cancer Society, Cancer Facts & Figures 2016, annual figures. Annual Deaths Paradigm shift in colorectal cancer screening 7 Imaging Methods Stool Sampling Liquid biopsy Colonoscopy Flexible sigmoidoscopy Virtual colonography occult blood in stool by FIT or gFOBT Fecal DNA testing Septin-9 blood test 11/23/2016 Simple for patients and health care providers Easy for the patient Part of routine visits No dietary restrictions Easy for the doctor Drives patient compliance Easy to explain Easy for the lab Runs on existing hardware No investment required 8 11/23/2016 Epi proColon - Option for non-compliant patients Colonoscopy Patient managed based on colonoscopy outcome Standard of Care Continued Annual Screening 9 11/23/2016 Epi proColon detects tumor-specific DNA in blood 10 11/23/2016 Test performance established in major studies Prospective pivotal study Prospective, multicenter clinical study Multi-center, comparative clinical study 7,941 screening-eligible individuals enrolled Epi proColon vs. FIT test Sensitivity* of 68% and specificity* of 80% 11 FIT comparison study Sensitivity of Epi proColon was 73% vs. 68% of FIT-test ADMIT study* Multi-center clinical study 420 patients, historically noncompliant with current screening guidelines 99.5% rate of adherence to Epi proColon Sensitivity: the percentage of cancer cases correctly identified Specificity: the percentage of healthy individuals correctly identified as negative * Included in “Instructions for Use” (FDA approval) 11/23/2016 U.S. commercialization with partner Nation-wide distribution to target labs with Polymedco: early adopters include LabCorp, ARUP, and Dartmouth Medical Center All incentives aligned between labs, partner and Epigenomics HQ Polymedco is the biggest distributor of colorectal cancer screening tests in the U.S. Ideally positioned (colorectal cancer focus) to address over 1,000 existing laboratory customers U.S. chart with target labs only illustrative 12 11/23/2016 Ideal partnership for commercial success Marketing Sales Distribution Customer support Billing Collection 13 11/23/2016 Product supply Reimbursement Regulatory KOLs Medical guidelines Enabling labs to become part of the colorectal cancer screening solution Reference Labs Epigenomics Polymedco Local medical doctors Leading hospitals Academic Medical Centers Integrated Networks Key opinion leaders Healthcare providers As an example of the breadth of Epi proColon’s current sales framework, LabCorp has >1,000 sales representatives that will be trained on the assay 14 11/23/2016 Q3 Commercial highlights United States Won Sonic Labs in Q3 => 4 out of 6 largest labs now offering methylated Septin 9 testing Lab Septin 9 LabCorp Quest ARUP Sonic LabCorp trained over 1,000 person sales team in Q3 to present Epi proColon to individual MDs First national advertisement appeared in “USA Today” Cancer insert in September South-East Asia Exclusive distribution agreement signed for Thailand, Vietnam, Malaysia & Singapore with distributor SPD Scientific PTE Ltd. based in Singapore 15 11/23/2016 Reimbursement process underway FDA Label Granted Tier 1 CPT code Jan ‘17 Inclusion in Medical Guidelines ACS USPSTF correction ACG HEDIS Guidelines National Initiated Coverage Determination discussion with AHRQ NCD Legislation Typically 12-24 month process Private Payor Contracts These happen continuously Introduction of Bipartisan 2016 Colorectal Cancer Detection Act Legislation aims to provide coverage under the Medicare program for FDA-approved qualifying colorectal cancer screening blood-based tests Bipartisan legislation introduced by Congressman Donald M. Payne, Jr. (DNJ) and Charles Dent (R-PA). Additional co-sponsors include John Delaney (D-MD) and Lenard Lance (R-NJ). Expert panel:"Screening the Unscreened: New Approaches to Reaching the Underserved to Prevent Colorectal Cancer” included leading experts within the Colorectal Cancer and gastroenterology community Legislation is unique opportunity to provide millions of unscreened, underserved Americans access to colorectal cancer screening 17 11/23/2016 Cost effectiveness of Epi proColon use in treatment Assuming a one million member population, incorporating Epi proColon into the treatment paradigm to reach 80% screening compliance: Number of Cancer Diagnoses 1,200 1,000 System Costs $10,00 1,058 $8,00 879 800 $8,39 $7,22 $6,00 600 $4,00 400 179 200 $2,00 $1,17 $0,00 No Epi proColon With Epi proColon Incremental Diagnoses No Epi proColon Cancer Diagnoses With Epi proColon Incremental Costs Per Member Per Month Costs Net Benefit = ~$53M Cost of Cancer - ~$42M of Screening Costs = ~$10M benefit • Assumptions: Out of an assumed population of one million members, 165,751 are assumed to be screening eligible. Incremental costs to system are assumed over a three-year horizon. • With Epi proColon volume allocation: 15% Epi proColon; 15% FIT; 50% Colonoscopy; 20% No Screening. • No Epi proColon volume allocation: 15% FIT; 50% Colonoscopy; 35% No Screening. • Source: Company Medical Economic Model. Strategic collaboration with BioChain in China Epi proColon® approved in China by CFDA1 BioChain started commercialization in 2015 Pricing and reimbursement discussions underway Septin9 test included in Chinese Colorectal Cancer Screening Guidelines China FDA names Epigenomics’ blood-based Septin9 colorectal cancer test a most innovative medical product for 2015 19 11/23/2016 1 China Food and Drug Administration (CFDA) High medical need in lung cancer diagnosis With 1.59 million deaths in 2012, lung cancer is the leading cancer killer worldwide (WHO, 2012) Unmet clinical need in lung cancer diagnosis: – Limit number of people screened with low dose CT to those with high risk 20 – Low dose CT leads to 27% false positives – Ability to determine which nodules are likely to be cancerous before sending the patient to further invasive diagnostic procedures 11/23/2016 blood test for detection of lung cancer About lung cancer Lung cancer is #1 cancer killer worldwide High medical need for minimally invasive tests 21 11/23/2016 Lung cancer test in development Performance Based on Test sensitivity proprietary DNA was reported methylation at 95% with a biomarkers, specificity of SHOX2 & 64% in initial PTGER4 studies Target indications Next steps Follow-up after positive results in low dose spiral CT Initiation of clinical studies in 2016 (US/EU) Future opportunity in screening of high risk patients This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 672680. R&D strategy Broad IP protection with over 50 active patent families 3 2 1 Biomarker discovery, confirmation and selection 22 11/23/2016 >20 proprietary biomarkers in colorectal cancer, lung cancer and other solid tumor indications Test development and validation of regulated in-vitro diagnostic products Q3/2016 Key financials EUR million Revenue EBITDA* EPS Q3 2016 Q3 2015 Change in % 0.9 (2.5) (0.11) 0.5 (2.4) (0.14) +83% -4% +16% Revenue growth driven by increase in product revenue of 95% YTD revenues influenced by initial stocking effects in the U.S. EBITDA* remains consistent with Q3 2015 level EPS improved due to increased number of shares outstanding *adjusted for expenses related to stock compensation 23 11/23/2016 Revenue and EBITDA outlook 2016 Revenue EBITDA* Revenue outlook narrowed to EUR 3.5m to 5.0m driven by U.S. launch of Epi proColon® EUR -9.5 to -10.5 million; planned ramp up of U.S. commercial launch and strategic financing alternatives *adjusted for expenses related to phantom stock programs 24 11/23/2016 Liquidity EUR millions Liquid assets* Sep 30, 2016 7.3 Dec 31, 2015 8.6 Additional cash-inflow expected in Q4/2016 from: Recent capital increases (EUR 7.1 million gross proceeds) Conversion of outstanding five convertible notes (EUR 2.6 million) Liquid assets currently sufficient to fund operations through 2017 *cash and cash equivalents incl. marketable securities 25 11/23/2016 Significant investments by Chinese investors Issuance of around 1.5 million new shares by way of private placement announced on November 7 and November 16, 2016 Shares were subscribed by Chinese investors BioChain, SummitView Capital and Cathay Fortune International Company BioChain (partner for commercialization in China) continues its participation and expands its leading shareholder position Combined shareholding exceeds 15% of total share capital Gross proceeds of around EUR 7.1 million used to finance current operations and to expand U.S commercialization capacities for Epi proColon 26 11/23/2016 Epigenomics share Share information Types of shares Registered shares Security code number A11QW5 ISIN DE000A11QW50 Stock exchange Frankfurt Stock Exchange, Prime Standard: ECX ADR program Sponsored Level 1 ADR Ratio 1 ADR = 5 common shares Total shares outstanding 20,544,0091 (21.6m fully diluted) Analyst coverage Edison, Equinet, First Berlin, goetzpartners, Maxim 1 As of September 30, 2016; 2 According the published voting right notifications 27 11/23/2016 Shareholder structure BioChain 9.3%2 Free float 90.9% Investment highlights Problem: 35% of eligible patients unscreened for colorectal cancer i.e. unable or unwilling to utilize colonoscopy or stool based products Opportunity: 23.5M eligible patients in the U.S. Solution: Epi proColon® - First FDA approved blood based colorectal cancer screening test Offering: Epi proColon® enables health systems and their partners to participate in colorectal cancer via their high complexity CLIA labs Results: Significant growth opportunity built upon CostEffective and Scalable Business Model 28 11/23/2016 Thank you for your attention! Contact Investor Relations Peter Vogt Vice President Corporate Communications & Investor Relations Phone: +49 (0) 30 24345 386 [email protected] Ticker Bloomberg: ECX:GR Reuters: EXXG.DE Thomson ONE: ECX-XE ADR OTC: EPGNY Internet www.epigenomics.com www.epiprocolon.com www.epiprolung.com 29 11/23/2016