Algernon Health Inc (AGNPF)

[Money $hot]

Algernon Pharmaceuticals Drug Development Programs

Annual Information Form

For The Financial Year Ended August 31, 2018

April 11, 2019

Page 20

Through the Company’s preclinical screening programs, a number of lead compounds have been identified for three major global disease areas.

1. NP-135 and NP-160 are Algernon’s lead compounds for the treatment and management of NASH. According to a new report published by Allied Market Research, “Global Opportunity Analysis and Industry Forecast, 2021-2025," the global NASH market was valued at $1.17 billion in 2017, and is expected to reach $21.4 billion by 2025, growing at a compound annual growth rate of 58.4% from 2021 to 2025. Currently, there are no FDA approved treatments for NAFLD or
NASH;

2. NP-135, NP-160, NP-178 and NP-251 are Algernon’s lead compounds for the treatment and management of CKD. The global market for CKD drugs continues to proliferate at a significant pace, driven by the increasing number of CKD patients and the growing need of novel treatments to improve patients’ quality of life. According to Research and Markets, the global CKD drugs market was valued at US$12.4 billion in 2016, and is expected to reach US$17.4 billion by 2025, expanding at a compound annual growth rate of 3.9% from 2017 to 2025; and

3. NP-120 and NP-178 are Algernon’s lead compounds for the treatment and management of IBD. According to Transparency Market Research, the global IBD treatment market is valued at US$10.52 billion in 2016. Rising at a steady 2.6% compound annual growth rate between 2017 and 2025, the market is likely to be valued at US$14.8 billion by the end of 2025. In 2016, North America led the global IBD market, which is attributable to the rising incidence of the disease witnessed among men and women alike in the region. The incidence of ulcerative colitis and Crohn's disease is high in US and Canada, which fuels the demand for IBD treatment in North America.

https://webfiles.thecse.com/sedar_filings/00037722/1904160953176150.pdf

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