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Click to edit Master title style nuvopharmaceuticals.com | TSX: NRI / OTCQX: NRIFF nuvopharmaceuticals.com TSX: NRI / OTCQX: NRIFF Nuvo Pharmaceuticals ® Inc. Annual & Special Meeting of Shareholders May 11, 2020
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nuvopharmaceuticals.com | TSX: NRI / OTCQX: NRIFF

nuvopharmaceuticals.com

TSX: NRI / OTCQX: NRIFF

Nuvo Pharmaceuticals® Inc.

Annual & SpecialMeeting of Shareholders

May 11, 2020

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Rob HarrisExecutive Chairman

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Agenda

• Call to Order

• Business Matters:

• Notice of Meeting and Quorum

• Presentation of 2019 Financial Statements

• Nomination and Election of Directors

• Appointment of Auditors

• Approval of Share Incentive Plan

• Q&A

• Voting

• Preliminary Voting Results

• Termination of Formal Business

• Management Presentations

• Q&A

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Formal Business

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Nomination of the Directors of the Corporation

The following persons are nominated for election as Directors of the Corporation:

Daniel Chicoine Robert Harris

David Copeland John London

Anthony Dobranowski

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Resolution – Electing Directors

RESOLVED that Daniel Chicoine, David Copeland, Anthony Dobranowski, Robert Harris and John London are nominated as directors of the Corporation to hold office until the next annual meeting of shareholders, until their successors are duly elected or appointed or they otherwise cease to hold office.

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Resolution – Auditors

RESOLVED that Ernst & Young LLP, Chartered Accountants, be reappointed as the Auditors of the Corporation, to hold office until the next Annual Meeting of Shareholders or until a successor is appointed and that the Directors be authorized to fix their remuneration.

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Resolution – Share Incentive Plan

RESOLVED that the that the resolution set forth on page A-1 as Schedule A of the management information circular, relating to the approval of the Corporation’s Third Amended and Restated Share Incentive Plan and approving all unallocated options and unallocated common shares issuable thereunder, be passed.

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Q&A

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Voting

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Preliminary Results

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Preliminary Voting Results Election of Directors

For % Withheld %

Elect Directors

• Daniel Chicoine 90.47% 9.53%

• David Copeland 95.89% 4.11%

• Anthony Dobranowski 95.97% 4.03%

• Robert Harris 93.33% 6.67%

• John London 90.42% 9.58%

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Preliminary Voting ResultsAppointment of Auditors

For % Withheld %

Appointment of Auditors 99.23% 0.77%

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Preliminary Voting Results Approval of Third Amended and Restated Share Incentive Plan

For % Against %

Approval of Third Amended and Restated Share Incentive Plan

81.67% 18.33%

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Resolution – Terminate the Meeting

RESOLVED that the Annual and Special Meeting of Shareholders for 2020 terminate.

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Management Presentations

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Jesse LedgerPresident & Chief Executive Officer

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Non-RelianceThis presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate an investment in the securities of NuvoPharmaceuticals Inc. (“Nuvo” or the “Company”). No representation or warranty, express or implied, is given, and so far as is permitted by law, no responsibility or liability isaccepted by any person with respect to the accuracy or completeness of this presentation or its contents. In particular, but without limitation, no representation or warranty isgiven as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts contained in this presentation. In givingthis presentation, the Company does not undertake any obligation to provide any additional information or to update this presentation or any additional information or to correctany inaccuracies which may become apparent. This presentation has been prepared without reference to your particular investment objectives, financial situation, taxationposition and particular needs. If you are in any doubt in relation to these matters, you should consult your financial or other advisers.

Cautionary Statements Regarding Forward-Looking Information

This presentation contains “forward-looking information” as defined under Canadian securities laws (collectively, “forward-looking statements”). The words “plans”, “expects”,“does not expect”, “goals”, “seek”, “strategy”, “future”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projected”, “believes” or variations of such words and phrasesor statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “should”, “might”, “likely”, “occur”, “be achieved” or “continue” and similarexpressions identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events orcircumstances contain forward-looking statements. Forward-looking statements are not historical facts but instead represent management’s expectations, estimates andprojections regarding future events or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes incircumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company. Forward-looking statements arenecessarily based on a number of estimates and assumptions that, while considered reasonable by management of the Company as of the date of this presentation, areinherently subject to significant business, economic and competitive uncertainties and contingencies. Material factors and assumptions used to develop the forward-lookingstatements, and material risk factors that could cause actual results to differ materially from the forward-looking statements, include but are not limited to, the validity of the ’907and ‘285 Patents claims, the outcome of ongoing patent litigation and other factors, many of which are beyond the control of Nuvo. Additional factors that could cause Nuvo’sactual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included in Nuvo’s mostrecent Annual Information Form dated February 24, 2020 under the heading “Risks Factors”, and as described from time to time in the reports and disclosure documents filed byNuvo with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance onNuvo’s forward-looking statements. When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on thesestatements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance orresults and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved.

All forward-looking statements are based only on information currently available to the Company and are made as of the date of this presentation. Except as expressly requiredby applicable Canadian securities law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information,future events or otherwise. All forward-looking statements in this presentation are qualified by these cautionary statements.

18

Legal Disclaimer

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Non-IFRS MeasuresThis presentation includes certain figures (such as Adjusted Total Revenue, Adjusted EBITDA and Adjusted EBITDA per share) that are not measuresrecognized under international financial reporting standards (IFRS). Nuvo believes that shareholders, investment analysts and other readers find suchmeasures helpful in understanding Nuvo's financial performance and in interpreting the effect of the Aralez Transaction and the Deerfield Financing on theCompany. Nevertheless, these financial measures do not have any standardized meaning prescribed by IFRS and may not have been calculated in the sameway as similarly named financial measures presented by other companies.

The Company defines adjusted total revenue as total revenue plus amounts billed to customers for existing contract assets less revenue recognized uponrecognition of a contract asset. Management believes adjusted total revenue is a useful supplemental measure from which to determine the Company’s abilityto generate cash from its customer contracts that is used to fund its operations.

EBITDA refers to net income (loss) determined in accordance with IFRS, before depreciation and amortization, net interest expense (income) and income tax expense (recovery). The Company defines adjusted EBITDA as net income from continuing operations before net interest expense (income), depreciation and amortization and income tax expense (recovery) (EBITDA), plus amounts billed to customers for existing contract assets, inventory step-up expense, stock-based compensation expense, Other Expenses (Income), less revenue recognized upon recognition of a contract asset and other income. Management believes adjusted EBITDA is a useful supplemental measure from which to determine the Company’s ability to generate cash available for working capital, capital expenditures, debt repayments, interest expense and income taxes.

The Company defines adjusted EBITDA per share as adjusted EBITDA divided by the average number of issued and outstanding common shares of theCompany as of the date thereof.

See slide 45 and 46 for the Company’s reconciliation of the Company’s financial results to its Non-IFRS Measures.

19

Legal Disclaimer Continued

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2019 - A Transformative Year

• Completed the Aralez Transaction December 31, 2018 and successfully integrated the business during 2019. The acquisition included:

• A portfolio of more than 20 revenue-generating products

• The acquisition of Aralez Canada, including the products Cambia, Blextenand the Canadian distribution rights to Resultz

• The worldwide rights and royalties from licensees for Vimovo, Yospralaand the global (ex-U.S.) and Canada product rights to Suvexx

• Significant increase in Adjusted Total Revenue and Adjusted EBITDA provided a platform for the Company to acquire and launch additional commercial products in Canada

• Regulatory submissions in 2019 with anticipated launches in 2020

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2019/To-Date 2020 Timeline

21

Q1

Q2

Q3

Q4

To-Date2020

• Pennsaid 2% approved in India to be marketed by Sayre Therapeutics

• Vimovo Patents '907 and ‘285 - U.S. Court of Appeals for the Federal Circuit denied the Company’s en banc request to the Court of Appeals, to have the court reconsider the validity of the patents

• Pennsaid 2% Marketing Authorization accepted by Austrian Agency for Health and Food Safety

• Suvexx Registration Dossier accepted for formal review with Health Canada

• Vimovo Patents '907 and ‘285 deemed invalid by• U.S. Court of Appeals for the Federal Circuit

reversing District Court's Decision • Financing Agreement with Deerfield amended• Operational Efficiencies identified yielding • ~$7.0 million in annualized Opex savings

• Aralez Business integrated with the Nuvo business

• Bridge Loan of US$6.0 million repaid to Deerfield

• NeoVisc+/One license agreement executed• Pennsaid 2% Marketing Authorization

issued in Switzerland• Suvexx Notice of Compliance granted by

Health Canada• Takeda's Cabpirin approved in Japan,

triggering US$2.0 million milestone payment

• Pennsaid 2% Patent ‘913 deemed valid by the U.S. Court of Appeals blocking Actavis from launching its generic version of Pennsaid 2% in the U.S. until October 17, 2027

• Application for an industry-wide class action lawsuit in the Superior Court of Québec received by Nuvo

• Vimovo Patents '996 and ‘920 – U.S. District Court denies Dr. Reddy's Laboratories motion for summary

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Commercial Business Significant Growth Potential

Approved by Health Canada on February 27, 2020

• Suvexx (sumatriptan succinate and naproxen sodium tablets) is a fixed-dose combination prescription medication in a single tablet

• Indicated for the acute treatment of migraine attacks with or without aura in adults

• Anticipate launch September 2020 into the ~$130 million acute migraine Rx treatment market in Canada

• 13 phase 3 studies to examine acute migraine, menstrual migraine and patients intolerant of other currently approved migraine medications

• Demonstrated early and sustained efficacy superior to sumatriptan and naproxen alone with a safety and tolerability profile similar to sumatriptan and naproxen.

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Commercial Business Expanding the Product Pipeline

Blexten Pediatric

• The Company’s original license agreement for Blexten included Canadian rights for the pediatric dosage formats

• Blexten pediatric consists of an oral syrup formulation (2.5mg/ml) and an orally dispersible tablet formulation (10mg tablets).

• Aralez Canada anticipates filing the pediatric dossier to Health Canada during Q2 2020

• Regulatory decision anticipated by mid-2021

• Blexten pediatric is anticipated to be indicated for treatment of seasonal allergic rhinitis and chronic spontaneous urticaria in children

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Commercial Business Life Cycle Management

• NeoVisc is a viscosupplement used to replenish the synovial fluid in the joints of patients with osteoarthritis

• Aralez Canada has been selling NeoVisc in Canada for over 10 years

• Aralez Canada anticipates receiving Health Canada approval during Q2 2020 with the launch of 2 news SKUs of NeoVisc in Canada shortly thereafter

• a new low volume (1 x 4ml vs. 1 x 6ml), single injection presentation called NeoVisc OneTM

• a new triple injection presentation called NeoVisc+TM (3 x 2ml)

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Blexten Demonstrating Continued Quarter-over-Quarter TRx Market Share and Volume Growth

25

29,3

20

29,2

25

33,8

57

64,4

04

65,2

08

56,5

53

60,3

91

105,3

93

101,9

53

85,0

99

93,2

14

5.2%

6.0%

6.9%

9.8%

10.5% 10.3%

11.2%

13.8%13.9%

13.6%

14.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0

20,000

40,000

60,000

80,000

100,000

120,000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019 2020

Blexten TRx Volume

Blexten TRx MS

33,8

57

60,3

91 93,2

14

1.6%

6.9%

11.2%

14.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

YTD Mar 2017 YTD Mar 2018 YTD Mar 2019 YTD Mar 2020

Blexten TRx Volume

Blexten TRx MS

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Blexten Continues to Take Market Share from Cetirizine

26

71.5% 71.1%68.7% 67.9% 67.7%

64.8%62.2% 62.3%

60.9%59.2% 58.3% 57.9% 57.0%

1.6%

4.4%5.2%

6.0%6.8%

9.8%10.5% 10.3%

11.2%

13.7% 13.9% 13.6%14.4%

0%

5%

10%

60%

70%

Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1

2017 2018 2019 2020

Cetirizine TRx MS

Blexten TRx MS

Since Blexten’s launch Cetirizine has lost 14.5% TRx Market Share

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Cambia Demonstrating Consistent Quarter-over-Quarter TRx Market Share and Volume Growth

27

11,2

52

13,1

05

13,7

28

15,0

18

15,5

07

17,4

60

17,6

54

19,4

98

20,2

49

21,4

62

23,0

07

2.7%

3.0%

3.3%3.5%

3.5%3.7%

4.0%

4.2%4.4%

4.4%

4.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

0

5,000

10,000

15,000

20,000

25,000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019 2020

Cambia TRx Volume

Cambia TRx Mkt Shr

9,1

90

13,7

28

17,

654

23,0

07

2.3%

3.3%

4.0%

4.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

0

5,000

10,000

15,000

20,000

25,000

YTD Mar 2017 YTD Mar 2018 YTD Mar 2019 YTD Mar 2020

Cambia TRx Volume

Cambia TRx MS

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Licensing & Royalty Business Royalty from U.S. Sales of Vimovo

The Company received US$7.5 million annual minimum royalty payment from the 2019 sales of Vimovo in the U.S.

• On March 4, 2020, Dr. Reddy’s launched their generic version of Vimovo in the U.S. “at risk”

• Nuvo’s guaranteed minimum annual royalty payment has ceased and the Company now records 10% of net sales until the generic market share step down provision takes effect

• Nuvo owns two additional patents which are subject to ongoing additional litigation – U.S. Patent Nos. 8,858,996 and 9,161,920 (the ‘996 and ’920 Patents)

• Royalty payments from its global partner, Grunenthal GmbH on global net sales of Vimovo unaffected by launch of U.S. generic Vimovo 28

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Licensing & Royalty BusinessTakeda Licensing Agreement

In March 2020, Nuvo Ireland received notice from Takeda Pharmaceutical Co., Ltd. (Takeda), that Japan's Ministry of Health, Labor and Welfare approved Cabpirin

• Commercialized in Japan under a non-exclusive license to Nuvo Ireland's Japanese patent for the Yosprala formulation which also covers the Cabpirinformulation

• Nuvo Ireland will receive up to US$4.0 million in milestone payments during the term of this agreement*

• US$2.0 million triggered by the approval, payable no later than May 29, 2020

• Nuvo Ireland will receive a single-digit royalty on net sales of Cabpirin in Japan until patent expiry on May 31, 2022

• Potential for a second US$2.0 million milestone payment on May 31, 2022 provided the licensed intellectual property remains valid and enforceable

*Nuvo Ireland is entitled to retain 50% of all royalty and milestone revenues generated from the Yosprala intellectual property with the remaining 50% to be paid to the estate of POZEN, Inc.

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Licensing & Royalty BusinessExpansion into New Territories in 2020

Pennsaid 2%

• Gebro Pharma, the Pennsaid 2% licensee in Switzerland and Lichtenstein, received marketing authorization for Pennsaid 2% from Swissmedic

• Anticipate commercial launch of Pennsaid 2% in Switzerland in Q4 2020

• Sayre Therapeutics, the Pennsaid 2% licensee in India, Sri Lanka, Bangladesh and Nepal anticipates launching Pennsaid 2% in India in Q4 2020

Resultz

• Heumann, the Resultz licensee in Germany, anticipates commercial launch in Q2 2020

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Production & Service BusinessExpansion into New Territories in 2020

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Pennsaid 2%

Anticipate commencement of commercial supply of Pennsaid 2% during 2020 in India and Switzerland

• Nuvo will earn product revenue from licensees pursuant to exclusive supply agreements

Resultz

Resultz Germany

• Heumann has now received its first shipment of commercial quantities of Resultz for the German market

• Commercial launch anticipated in Q2 2020

• Nuvo will earn product revenue from licensees pursuant to exclusive supply agreements

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Kelly DemerinoInterim Chief Financial Officer

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Fiscal Year 2019 and Q1 2020 Financial Review

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2019 Financial Performance

CDN$ Millions

$74.7

$27.2

$43.1

$20.5

-$3.1

$11.4

-5

15

35

55

75

Adjusted Total Revenue Adjusted EBITDA Gross Profit

2019 2018

Adjusted Total Revenue Increased 265% Year-Over-Year

Adjusted Total Revenue and Adjusted EBITDA are non-IFRS measure – see slides 45/46 for definitions

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Q1 2020 Financial Performance

CDN$ Millions

$18.9

$8.0

$18.9

$17.1

$5.2

$9.0

0

5

10

15

20

Adjusted Total Revenue Adjusted EBITDA Gross Profit

2020 2019

Adjusted Total Revenue Increased 11% Adjusted EBITDA Increased 53%

Gross Profit Increased 110%Year-Over-Year

Adjusted Total Revenue and Adjusted EBITDA are non-IFRS measure – see slides 45/46 for definitions

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Cash and Capital Structure

• The Company had $16.3 million of cash and US$107.3 million of debt (principal) outstanding at March 31, 2020.

• In January 2020, the Company announced repayment of its US$6.0 million Bridge Loan that carried a coupon interest rate of 12.5%. The Bridge Loan was a component of the Deerfield Financing. The Company’s remaining loans carry a coupon interest rate of 3.5%.

• The Company will make regular repayments towards its Amortization Loan in 2020 in accordance with the Deerfield Financing Agreement and associated Amendment.

• Summary of Deerfield Debt (May 11, 2020):

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US$Millions Amortization Loan (issued by Nuvo Ireland)

Convertible Loan (issued by Nuvo Pharma)

Principal Outstanding US$54.8 US$52.5

Maturity December 31, 2024 December 31, 2024

Interest Rate 3.5% p/a 3.5% p/a

Debt Repayment Mechanism Cash Sweep (minimum $10.0 per year or per Amendment); warrants

6 year bullet or conversion

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Total Debt as of May 4, 2020

* Note the IFRS adjustments are required for accounting purposes for amortized cost liabilities to reflect the accounting value of the estimated future contractual cash flows, including interest, which are discounted at the debt's original effective interest rate.

Effective interest rates take the compounding concept into account, whereas stated interest rates are the coupon rate on the debt.

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US$000s Amortization Loan

Convertible Loan

Debt - cash principal value per Deerfield facility 54,777 52,500

IFRS present value adjustment (interest and principal)* (7,621) (13,138)

Debt - IFRS value as per financial statements 47,156 39,362

CDN$000s Amortization Loan

Convertible Loan

Debt - cash principal value per Deerfield facility 77,712 74,482

IFRS present value adjustment (interest and principal)* (10,856) (18,692)

Debt - IFRS value as per financial statements 66,856 55,790

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Debt payments as of May 4, 2020

In the past 12 months, a total of US$11,223 (approximately CDN$14,600) of indebtedness has been repaid to Deerfield.

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CDN$000s – Payments YTD 2020 Bridge Loan

Amortization Loan

Convertible Loan

Debt – Cash Principal payments made 4,528 7,021 -

Debt – Cash Interest payments made 18 697 624

USD$000s – Payments YTD 2020 Bridge Loan

Amortization Loan

Convertible Loan

Debt – Cash Principal payments made 3,452 5,223 -

Debt – Cash Interest payments made 14 520 464

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Cash and Capital Structure

• Summary of fully diluted capitalization table:

• Capital market summary:

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Outstanding Securities (000s)As at May 4, 2020

Units Outstanding Weighted Average Exercise Price

Common Shares Issued and Outstanding 11,388 $0.91 closing share price May 4, 2020

Stock Options Outstanding 1,631 $3.60

Convertible Loan 19,444 US$2.70 per share

Warrants 25,556 $3.53

Total 58,019

Capital Market Summary As at May 4, 2020

Stock Symbol TSX:NRIOTCQX:NRIFF

Market Cap(May 4, 2020)

$10.4 million $0.91 per share

52 Week Share Price Low-High $0.33 - $2.15

Cash(As at March 31, 2020) $16.3 million

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Jesse LedgerPresident & Chief Executive Officer

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Anticipated Milestones in 2020

Q2 Q2 2020 H2 2019

Review Decision from AGES

Takeda License Agreement

Milestone Payment $2.0M

Launch in Germany

Pediatric Submission

Health Canada

Approval Decision

Health Canada

Q2

Q4

Launch in Canada

Q3 Launch in Canada

‘21

Launch in Switzerland

Pediatric Review Decision

Health Canada

Pediatric Commercial Launch if approved

Commercial Launch in select EU markets if

approved

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NRI Investment Highlights

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• Diversified specialty pharmaceutical business with more than 20 revenue generating products

• Significant adjusted total revenue and adjusted EBITDA

• Organic growth from existing products and near-term new product launches

• Key product portfolio protected by IP and long-term partner relationships

• Internal team and infrastructure can support significant growth

• FDA/Health Canada/EU licensed manufacturing facility

• Cash generated from operating activities

• Attractive coupon rate on debt financing with ongoing repayment mechanism

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Q&A

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Appendix

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Adjusted Total Revenue

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The Company defines adjusted total revenue as total revenue, plus amounts billed to customers for

existing contract assets, less revenue recognized upon recognition of a contract asset. Management

believes adjusted total revenue is a useful supplemental measure to determine the Company’s ability to

generate cash from its customer contracts used to fund its operations.

The following is a summary of how adjusted total revenue is calculated:

Three Months ended

March 31, 2020

Three Months ended

March 31, 2019

in thousands $ $

Total revenue 24,361 14,550

Add:

Amounts billed to customers for existing contract assets 48 2,562

Deduct: Revenue recognized upon recognition of a contract asset (5,496) -

Adjusted total revenue 18,913 17,112

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Adjusted EBITDA

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EBITDA refers to net income (loss) determined in accordance with IFRS, before depreciation and amortization, net interest expense (income) and income tax expense (recovery). The Company defines adjusted EBITDA as net income before net interest expense (income), depreciation and amortization and income tax expense (recovery) (EBITDA), plus amounts billed to customers for existing contract assets, inventory step-up expense, stock-based compensation expense, Other Expenses (Income), less revenue recognized upon recognition of a contract asset and other income. Management believes adjusted EBITDA is a useful supplemental measure to determine the Company’s ability to generate cash available for working capital, capital expenditures, debt repayments, interest expense and income taxes.

The following is a summary of how EBITDA and adjusted EBITDA are calculated:Three Months ended

March 31, 2020

Three Months ended

March 31, 2019

in thousands $ $

Net income (loss) 3,083 (7,404)

Add back:

Income tax expense 1,382 54

Net interest expense 3,100 1,930

Depreciation and amortization 2,349 2,434

EBITDA 9,914 (2,986)

Add back:

Amounts billed to customers for existing contract assets 48 2,562

Stock-based compensation 105 126

Deduct:

Revenue recognized upon recognition of a contract asset (5,496) -

Other Expenses (Income):

Change in fair value of derivative liabilities(1) 2,417 5,213

Change in fair value of contingent and variable consideration 2,129 72

Loss on disposal of fixed assets 186 -

Foreign currency gain (115) (978)

Inventory step-up 362 1,215

Other gains (1,560) -

Adjusted EBITDA 7,990 5,224


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