For personal use only MARKET UPDATE

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1 MARKET UPDATE 1

2 RESPIRI LIMITED One of the few medical device companies globally with the leading edge technology to participate in the remote monitoring of chronic disease symptoms. Respiri is a software company with decades of experience in researching and developing clinical products for hospitals. Respiri has the world s first digital wheeze detection technology for the management of asthma. Smart proprietary machine learning algorithms detect and measure wheeze, the major symptom of asthma. New, leading edge technology has recently been employed in its consumer product, the AirSonea Wheeze Monitor, an over the counter remote monitoring product that is not reliant on doctor prescriptions. Respiri has a large global target market of parents and carers of children who cannot use lung function tests. Health conscious consumers are rapidly embracing patient self-management and remote monitoring with smartphones that provide the growth engine for the company s AirSonea product. 2

3 RESPIRI STRATEGY & INVESTMENT ATTRIBUTES Outstanding progress in delivering an asthma monitoring and management business model that uses acoustic sensors, leading edge machine learning algorithms and software platforms to deliver an over the counter consumer product without the need for GP prescriptions. 1. Established a clear product position in a major asthma segment with no current competitor. 2. Targets a major unmet consumer need with its primary market, parents and carers of children. 3. Delivers outstanding technology with its leading edge software platform and smart sensors. 4. Commenced ground breaking research and product development for the overnight monitoring of asthma symptoms. 5. Undertaking exciting partnership discussions for global and regional markets with a primary focus on UK and Asia. Current company valuations do not reflect Respiri's unique competitive position in a major global asthma segment and the strength of its leading edge mhealth software platforms. There is compelling evidence for asthma self-management and respected industry leaders in the UK, China and the USA now recognise that mhealth solutions can transform asthma care. 3

4 RESPIRI CORPORATE SNAPSHOT CAPITAL STRUCTURE ASX code Shares on issue Unlisted options (various ex. prices) Share price Market capitalisation RSH 432mil 15.1mil 6.0 cents $25.9mil SHARE REGISTER Top 20 shareholders 37.95% Substantial shareholders: Investment Holdings Pty Ltd Total number of shareholders (30 August 2016) 17.05% 4,315 BOARD OF DIRECTORS Leon L Huillier Tim Oldham John Ribot-de- Bresac Executive Chairman Non-Executive Director Non-Executive Director 4

5 WHEEZE IS THE MAJOR SYMPTOM OF ASTHMA Airflow Limitation The main symptoms of asthma: Wheezing Normal Bronchiole Airway Muscle layer Mucus gland Asthma Inflamation & mucus Muscle contracts Airway opening is reduced Shortness of breath A tight chest Coughing When airways become inflamed, flow pressure changes during respiration causing the airway wall to flutter. This flutter results in acoustic energy, or wheeze. The flutter or wheeze is a manifestation of airway flow limitation.... People with asthma typically experience wheezing.... If an infant presents with frequent and/or severe episodes of recurrent wheezing they should be diagnosed and managed as asthma, unless there is evidence to the contrary. Global Asthma Report

6 CLEAR PRODUCT POSITION IN ASTHMA SYMPTOM MONITORING & MANAGEMENT WITH NO CURRENT COMPETITOR Over 340 million people globally suffer from asthma, rising to 400 million by 2025 Asthma still kills and 2/3 of asthma deaths are preventable Poor asthma management is a major problem and an economic burden on society Respiri is focused on one clear segment of the asthma market: objective measurement of wheeze in diagnosed asthmatics with a convenient and easy to use consumer product. Diagnosis Difficult. No single reliable gold standard test. Spirometry devices to measure airflow and limitation are the universally accepted device by physicians. Multiple manufacturers Monitoring & Management Assessing symptom control and risk, using paper asthma plans. Outdated peak flow meters the only competitor and do not work for consumers due to poor technique and inaccurate recording. Respiri s AirSonea Medication compliance Smart inhaler devices connected to smart phones to measure and track medication compliance. Propeller Health, 3M, Adherium 6

7 TARGETS A MAJOR UNMET CONSUMER NEED WITH ITS PRIMARY MARKET, PARENTS & CARERS OF CHILDREN Primary target market: Parents and carers of children. Secondary target market older people. Latest independent consumer market research (November 2016) Parents: crying out for greater support and understanding to proactively manage a child's asthma. Greater understanding of child s condition and ability to detect any early signs of change. Often cannot remember all the asthma sign/trigger details leading up to an asthma episode they are stressed, living busy lives. Would like asthma period/historical data and trends that they are able to discuss with GP to enhance management. Want a tool that they can send with their child to grandparents, on sleepovers and on holidays to monitor their child s asthma status. Confirms previous consumer research by Proctor & Gamble/Tremor and EY Sweeney. Healthcare Professionals: Over three-quarters of healthcare professionals in the UK said they would value a mhealth system that would monitor patients asthma symptoms between visits and provide patients with an asthma action plan. Asthma Associations: Mark Brooke, Asthma Australia. Poorly managed asthma has tragic consequences and better treatment plans are needed. Kay Boycott, Asthma UK. The majority of the people in the UK would welcome a mhealth solution to help them manage their long term condition. 7

8 DELIVERS OUTSTANDING TECHNOLOGY WITH ITS LEADING EDGE SOFTWARE PLATFORM & SMART SENSORS AirSonea utilises a PPG sensor to capture breath sounds at the trachea. The optimal position for the recording of wheeze is over the trachea (children, adults & small children). Professor Noam Gavriely. The sounds are transmitted to the smartphone application by Bluetooth and in near real time, the proprietary wheeze detection algorithm processes the sonogram calculation and performs the acoustic analysis to deliver a WheezeRATE, an estimation of the total time of wheeze events as a ratio from the entire signal. For example, if 15 seconds out of a 30 second record contained wheeze, the Wz% is 15/30 = 50%. Respiri s software solution includes breath detection and ambient noise rejection. Medical devices with sensors and connected smartphone applications are universally used by world leaders for chronic disease management: Dexcom Diabetes Propeller Health Asthma medication compliance Omron & Philips Blood pressure & ECG 8

9 DELIVERS OUTSTANDING TECHNOLOGY WITH ITS LEADING EDGE SOFTWARE PLATFORM & SMART SENSORS A smart digital technology platform for the monitoring and management of asthma AirSonea app is a digital asthma diary providing vital monitoring features. AirSonea s Health Chart clearly shows the correlation between WheezeRATE, adherence to medication schedule (green dot) symptoms & triggers (red dot) and the effectiveness of reliever medication (yellow dot). This example shows spikes in the WheezeRATE when the preventer medication has been missed. After the user takes their reliever, the WheezeRATE drops. Our proprietary software correlates WheezeRATE measurements with other asthma symptoms and triggers, and inhaler use. This helps the patient understand what triggers are causing their symptoms and how to avoid possible flare-ups. The patient has a real time picture of their asthma in the palm of their hand and doctors have the complete picture to provide the best possible individual advice. The app allows users to set reminders to take WheezeRATE measurements and preventer medication to encourage adherence. Respiri has accelerated Research & Development expenditure in its 1 st half (Q1 $495k) to have in place a leading edge platform for partner discussions. 9

10 LONG HISTORY OF INDEPENDENT SUCCESSFUL CLINICAL STUDIES Recently achieved a major milestone with an independently run research study, conducted by the University of Chicago, confirming that the AirSonea technology can reliably detect wheezing in subjects. The overall percentage agreement between a panel of certified pulmonary physicians and our AirSonea technology for the presence or absence of wheeze was an impressive 85%. Long history of previous studies on digital wheeze monitoring published in prestigious journals by world class physicians and scientists. Multiple studies conducted at major global hospitals including: Royal Brompton Hospital, London, UK, University of Edinburgh, Scotland, Charite University Hospital, Berlin, Germany, University of Chicago, USA, Hadassah University Hospital, Jerusalem, Israel, Rambam Medical Centre, Haifa, Israel, Massachusetts General Hospital, USA, California Allergy and Asthma & UCLA, USA 44 patents granted. 10

11 GROUND BREAKING RESEARCH TO DEVELOP A NEW WIRELESS PRODUCT FOR OVERNIGHT MONITORING Respiri's overnight monitoring research and development, in conjunction with Planet Innovation and leading academics, will dramatically broaden the company's software technology offering and has generated strong interest from our industry. Children's asthma symptoms often worsen overnight, cause great distress to parents and increase healthcare costs with overnight visits to emergency departments. Our consumer friendly and objective acoustic technology platform will record the duration of wheezes and coughs and the number of events over 6-8 hours per night from acoustic sensors. Respiri's clinical, FDA approved WHolter product provides a solid platform for our new wireless technology that will provide groundbreaking data and new hardware devices outside of a clinical setting to: Parents: alarm alerts and valuable data to discuss with their physicians. General practitioners and specialist physicians: can review treatments Big pharma: evaluate treatment efficacy of their medications Big data companies and healthcare systems: identify key trends Baby and child monitoring companies: broader product offerings 11

12 COMMERCIAL IN CONFIDENCE PARTNERSHIP DISCUSSIONS: INITIAL FOCUS ON UK & ASIA PARTNERSHIP OPPORTUNITIES Medical device and disease management Telehealth service providers Big pharma Smartphone apps, Smartwatch, Internet of Things (IoT) MULTIPLE LARGE REVENUE STREAMS Consumer & Physicians Retail pharmacy & electronic retailers Telemedicine Healthcare systems Insurance companies Employers UK: READY FOR CONNECTED MHEALTH TECHNOLOGY Report on Why asthma still kills produced a damning assessment of current routine practice in asthma care. Almost three quarters of people with asthma in the UK would like to see a mobile health device made available that would help them monitor their asthma. A number of top UK NHS physicians wrote research papers on our wheeze detection algorithms and the benefits. Asthma UK, the lead industry body, is enthusiastic about mhealth technology for asthma self management. The NHS is a tight distribution channel (GPs, nurses, specialists, clinics, hospitals etc.) in geographical clusters. ASIA: HIGH POLLUTION CAUSING ASTHMA TO RISE Around 2 billion children across the world live in areas with high amounts of air pollution. South Asia has the largest number of children living in the polluted areas. Dangerous levels are known to increase the risk of asthma and lung cancer. 12

13 MONETISATION OBJECTIVES IN FY17 Our clear, overarching objective is to deliver sales and distribution agreements to gain access to global markets and collaborative hardware partnerships to innovative sensor technology rapidly. Sales and distribution agreements are universally accepted by leading companies in medical technology to gain access to major key global markets. Collaborative partnerships with agile and innovative design and manufacturing companies to ensure our sensor technology (Hardware) has best in class design, components, and low cost manufacture. Our goal is not to diagnose or replace the physician but to help them keep track of their patients progress in managing asthma care in the home and between their routine visits to the doctor. And, importantly provide peace of mind to parents and carers of children. Exciting progress has been made to date during commercial-in-confidence discussions in several countries. Respiri is viewed as an innovative, high potential mobile health provider that partners with patients and health care professionals to transform asthma care. 13