1. 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

2. 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)

3. 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

4. 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

5. 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…. …each partner gains….and each partner is flexible *Details appearing in this presentation are publicly available through Immtech’s SEC filings

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