Office of Technology Development Case Study: Immtech, UNC and the Development of Drugs for Neglected Diseases Anatomy of how a for-profit entity and a non-profit research program leveraged one another for mutual gain The stage: Immtech Pharmaceuticals – Publicly-traded company (AMEX: IMM) focused on anti-infective drug development Tidwell and Boykin Labs – Labs at UNC and Georgia State focused on the discovery of novel anti-parasitic compounds

Office of Technology Development The Research GSU – UNC collaboration focuses on novel diamidines useful for treating infectious diseases. GSU provides chemistry; UNC, pharmacology Compounds useful for treating: African Sleeping Sickness -Parasitic infection spreading from lymph nodes to CNS -Often fatal Leishmaniasis -Protozoal infection causing skin sores and organ damage Malaria -Number 1 killer in sub-Saharan Africa (>HIV)

Office of Technology Development The Problem Low/no commercial potential for large primary patient populations Some commercial potential for small secondary patient populations (PCP, travelers to malaria-prone regions) $60MM+ required to complete necessary clinical development ….but risk/reward ratio not favorable for traditional commercial programs

Office of Technology Development The Solution Large contributions from philanthropic groups (>$40MM) toward development of anti-infectives for use in the Developing World Clinical data generated applicable to clinical development for commercial programs Philanthropic contributions leverage Immtech’s clinical development infrastructure Immtech’s clinical development leverages data generated for philanthropic programs

Office of Technology Development Logistics* Immtech granted commercial rights to all indications “Claw-back” rights for UNC/GSU to make compound available to treat Tryps/Leish in Developing World; as defined by GDP Obligation for Immtech to provide API at fixed cost Philanthropic funds administered by third party— discovery resources flow through UNC/GSU, clinical resources through Immtech Partnership works because…. *Details appearing in this presentation are publicly available through Immtech’s SEC filings … each partner gains….and each partner is flexible

Office of Technology Development The Postscript Kidney toxicity emerges in late-stage clinical trials Lead drug put on clinical hold IMPORTANT TO REMEMBER – RISK vs. REWARD