 Non-Confidential Investor Presentation Epirus–Zalicus Transaction & Epirus Corporate Overview Filed by Zalicus Inc. Pursuant to Rule 425 under Securities Act of 1933, as amended and deemed filed pursuant to Rule 14a-6 of the Securities Exchange Act of 1934 Subject Company: Zalicus Inc. Registration Statement File No.: 333-195818 Non-Confidential |
 Forward Looking Statement Any statements made in this presentation relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other financial and business matters, including without limitation, the potential closing date of the transaction, the amount of Zalicus’ net cash at closing, and the prospects for commercializing or selling any medicines or other products, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, when or if used in this presentation, the words "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict" and similar expressions and their variants, as they relate to Epirus, Zalicus or the management of either company, before or after the aforementioned merger, may identify forward-looking statements. Epirus and Zalicus caution that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Important factors that may cause actual results to differ materially from the results discussed in the forward-looking statements or historical experience include risks and uncertainties, including the failure by Epirus or Zalicus to secure and maintain relationships with collaborators; risks relating to clinical trials; risks relating to the commercialization, if any, of Epirus’ or Zalicus’ proposed product candidates (such as marketing, regulatory, product liability, supply, competition, and other risks); dependence on the efforts of third parties; dependence on intellectual property; and risks that Epirus or Zalicus may lack the financial resources and access to capital to fund proposed operations. Further information on the factors and risks that could affect Zalicus’ business, financial conditions and results of operations are contained in Zalicus’ filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. The forward-looking statements represent the estimate of Epirus and Zalicus as of the date hereof only, and Epirus and Zalicus specifically disclaim any duty or obligation to update forward-looking statements. 2 Non-Confidential |
 Additional Information This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Epirus or Zalicus or the solicitation of any vote or approval. In connection with the proposed transaction between Epirus and Zalicus, Zalicus filed a Registration Statement on Form S-4 with the SEC on May 8, 2014, containing a joint proxy statement/prospectus. These materials are not yet final and will be further amended. The joint proxy statement/prospectus contains important information about Epirus, Zalicus, the transaction between Epirus and Zalicus and related matters. Epirus and Zalicus will mail or otherwise deliver the definitive joint proxy statement/prospectus to their respective stockholders when it becomes available. Investors and security holders of Epirus and Zalicus are urged to read carefully the joint proxy statement/prospectus relating to the merger (including any amendments or supplements thereto) in its entirety, because it will contain important information about the proposed transaction. Investors and security holders of Zalicus will be able to obtain free copies of the definitive joint proxy statement/prospectus for the proposed merger (when it is available) and other documents filed with the SEC by Zalicus through the website maintained by the SEC at www.sec.gov. In addition, investors and security holders of Zalicus will be able to obtain free copies of the joint proxy statement/prospectus for the proposed merger (when it is available) by contacting Zalicus, Attn: Justin Renz, jrenz@zalicus.com. Investors and security holders of Epirus will be able to obtain free copies of the definitive joint proxy statement/prospectus for the merger by contacting Epirus, Attn: Edward Scott, escott@epirusbiopharma.com. Epirus and Zalicus, and their respective directors and certain of their executive officers, may be deemed to be participants in the solicitation of proxies in respect of the transactions contemplated by the agreement between Epirus and Zalicus. Information regarding Zalicus’ directors and executive officers is contained in Zalicus’ Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which was filed with the SEC on March 14, 2014 (as amended by Form 10-K/A which was filed with the SEC on April 30, 2014), and will also be available in the definitive joint proxy statement/prospectus that will be filed by Zalicus with the SEC in connection with the proposed transaction. Information regarding Epirus’ directors and officers and a more complete description of the interests of Zalicus’ directors and officers in the proposed transaction is available in the joint proxy statement/prospectus. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/ PROSPECTUS AND THE OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTIONS. 3 Non-Confidential |
 Transaction Overview 4 Non-Confidential Background Rationale The merger between Epirus and Zalicus will create a publicly-traded, global biosimilar enterprise The new company will operate as EPIRUS Biopharmaceuticals, Inc. Zalicus ownership of combined company will be between 14% and 19% depending on cash at closing Access to equity markets to fund future capital needs and provide the possibility of liquidity for Epirus stockholders Zalicus’ experience conducting a global rheumatoid arthritis trial will support planned EU P3 study for lead Epirus asset, BOW015 Combination allows full build out of global biosimilar enterprise |
 EPIRUS Biopharmaceuticals, Inc. 5 Non-Confidential Footprint Global biosimilar development, manufacturing & commercialization Multi-product pipeline with late stage lead asset, BOW015 (infliximab), biosimilar to Remicade ® Positive P1 and P3 rheumatoid arthritis clinical data for BOW015, additional P3 trial planned in Europe. With Reliance as manufacturing partner, approval in India Multiple global partnerships, including in India and SE Asia, and under negotiation in China and Brazil Investors include TPG Biotech ® , Montreux Equity Partners, 5AM Ventures, Livzon Mabpharm, Inc. (China), Adage Capital, Greenwoods Investment (China), Gibralt US, Inc. (Canada), Monashee Capital Partners LP, and an investment affiliate of Mousse Partners (NY, China) Raised $74M in two private rounds; ~$33M in cash (as of April 2014) Financial |
 Non-Confidential EPIRUS Biopharmaceuticals, Inc. 6 Strategy Early launch of BOW015 in emerging markets followed by subsequent launch in Europe optimal for building high-growth biosimilar business Tailored, step-wise approach to diverse global markets Cash Flow: Early launch in accessible emerging markets where available Competitive Advantage: Local production in targeted emerging markets where preferred or required by local laws Growth Driver: Launch into Europe with combination of direct sales & distributors Partnerships: Ranbaxy for India and other early launch markets; Brazil and China in process Multi-product pipeline will drive long term growth opportunity |
 Major Biologic Medicines Will Lose Patent Protection in the Next Decade 7 2008 2013 2020 2025 Sales for Epogen and Neupogen are as reported by Amgen in 2012, Sales for all other products are EvaluatePharma analyst consensus forecasts for 2018 $3B+ $57B+ $21B+ Non-Confidential |
 Epirus’ Pipeline Targets Major Biosimilars Going off Patent 8 $3B+ $30B+ $21B+ 2008 2013 2020 2025 Non-Confidential Sales for Epogen and Neupogen are as reported by Amgen in 2012, Sales for all other products are EvaluatePharma analyst consensus forecasts for 2018 |
 Global Biosimilar Markets Have Diverse Regulatory Environments 9 US: March 2010, Legislation in place for approval of biosimilars as part of Health care reform bill; FDA draft guidance issued Feb 2012 Brazil: Guideline issued Oct 05; Revised Q4 2010 Venezuela: Final guideline was issued August 2000 Columbia: Draft guideline issued Mexico: Article 222 passed 09 defining abbreviated path Canada: 3rd draft guideline on SEBs issued April 2010 Saudi Arabia: Draft guidance issued Aug 08 Argentina: Draft guideline issued Jul 08 by ANMAT India: Final guideline was issued in Jul 08 Australia: EU guidelines adopted in Aug 08 Singapore: Draft guideline update issued in April 2011 Japan: Final guideline issued in Mar 09 EU: Biosimilars legal framework established. Draft mAb guidelines published Q4 2010 Turkey: Final guideline issued Aug 08 by the General Directorate of Pharmaceuticals and Pharmacy Malaysia: Final guidance issued Jul 08 by the Ministry of Health Malaysia WHO: Draft guidance issued Oct 09 Non-Confidential |
 Non-Confidential 10 Established Markets Europe is primary established market and will require country by country approach Local Production Emerging Markets Select emerging markets require In Market production for access Accessible Emerging Markets A majority of emerging markets are readily accessible with biosimilar frameworks in place Diversity in Markets Requires Targeted Commercial Approaches |
 We Intend to Develop a Robust Pipeline – With a Focus on Monoclonal Antibodies 11 Preclinical Phase 1 Phase 2 Phase 3 Registered Approved BOW015 Infliximab Remicade ® $8.4B – 2013 global BOW030 Bevacizumab Avastin ® $6.7B – 2013 global BOW050 Adalimumab Humira ® $11B – 2013 global Z944 oral T-type calcium channel modulator India REMICADE ® is a registered trademark of Johnson and Johnson; sales are as reported in EvaluatePharma Avastin ® is a registered trademark of Genentech; sales are as reported in EvaluatePharma HUMIRA ® is a registered trademark of AbbVie; sales are as reported in EvaluatePharma Europe Europe Other EMs Europe Non-Confidential |
 Our Lead Program is BOW015, a Biosimilar to Remicade ® 12 Marketed by Johnson & Johnson (Merck Schering, Tanabe ex-US) 2013 sales of $8.4B globally Patents expire 2014 – 2015 Major Indications: RA, Crohn’s Disease, Ankylosing Spoldylitis, Psoriatic Arthritis, Psoriasis Positive Phase 1 data (UK) Positive Phase 3 data (India) P3 data to be presented at European rheumatology meeting in May 2014 (EULAR, Paris) Regulatory approval in India via manufacturing partner RLS Expected first market launch in India in late 2014 Remicade ® (infliximab) BOW015 (infliximab) Non-Confidential Remicade is a registered trademark of Johnson and Johnson, Sales are as reported in EvaluatePharma |
 BOW015 Demonstrated Biosimilarity to Remicade ® in P1 and P3 trials 13 Phase 1 Results Phase 3 Results Per Protocol Analysis of ACR20 Response Rates Over Multiple Time Points Arithmetic Mean Infliximab Serum Concentration versus Nominal Time Overlaid by Treatment: Linear Scale (PP Population) 0 10 30 40 50 60 70 80 90 100 110 120 130 140 150 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 BOW015 REMICADE 20 Nominal Time (hours) 0 20 30 40 50 60 70 80 90 100 0 5 10 15 20 Time (weeks) BOW015 REMICADE 10 Non-Confidential |
 14 Market data as reported in EvaluatePharma Licensing & Distribution Partnerships in Select Emerging Markets Non-Confidential Accessible Emerging Markets Markets India, SE Asia, N. Africa, Latin America, ex-Brazil Size (2012), Biologics • $2B, 15% CAGR • MAb - $300M, 14% CAGR Strategy Accessible EMs Local Production EMs Established Markets Strategy Partner locally to accelerate Leverage global dossier Partnership Ranbaxy Competitive advantage Rapid path to market Broad geographic footprint 2014 – Near Term Focus |
 15 Market data as reported in EvaluatePharma In Market, For Market™ Where Local Production Confers Competitive Advantage Non-Confidential Local Production Emerging Markets Markets Brazil, China, Russia, Turkey, Saudi Arabia Size (2012), Biologics • $6B, 21% CAGR • Mab - $2B, 26% CAGR 2014 – Near Term Focus Strategy Accessible EMs Local Production EMs Established Markets Strategy Collaborate locally to address barriers; Establish local manufacturing presence Partnerships Partnerships in progress Competitive advantage SCALE platform enables In Market, for Market including technology transfer Preferred market access |
 Non-Confidential Where Local Production is Required, SCALE™ Offers a Transferable, Integrated Approach 16 Fully integrated, transferable manufacturing platform… …using single use manufacturing for productivity… SCALE™ Integrated Manufacturing Vendor Management Staffing & Training Product Quality & Regulation Facility Technical Support Bulk Drug Substance Polishing Step Anion Exchange Production Virus Removal Capture Thaw and scale up Post virus removal |
 17 Market data as reported in EvaluatePharma Market Entrance Plan and Growth in Europe Over Time 2014 – Near Term Focus Plan for 2017 Established Markets Markets Europe Size (2012), Biologics • $40B, 5% CAGR • MAb - $17B, 11% CAGR Strategy Accessible EMs Local Production EMs Established Markets Strategy Direct regulatory interactions to establish global regulatory dossier Leverage experienced, local CROs Share clinical costs with partner Partnerships Hybrid model: direct + distributor Staged infrastructure growth Competitive advantage First wave market entry Targeted market approach Non-Confidential |
 Non-Confidential Management Team 18 Amit Munshi President & Chief Executive Officer CEO, Percivia LLC Co-founder & CBO KYTHERA (NASDAQ: KYTH) GM, Amgen Nephrology Europe Michael Wyand, DVM, PhD SVP, Clinical, Regulatory & Manufacturing SVP, Clinical & Regulatory, Percivia LLC SVP, R&D, Bioassets (sold to Cephalon) SVP, Operations and R&D, Therion Tom Shea SVP, Chief Financial Officer CFO, Tolerx CFO, Cubist (NASDAQ: CBST) Kim Seth, PhD SVP, Chief Business Officer Exec Dir., Pfizer R&D Leadership Pharma/Spec Pharma Analyst, Goldman Sachs Business Development, EPIX Nick Plumeridge SVP, Business Development VP, Asia Business Development, Takeda VP, Business Development, Invida (Singapore) Mary Dibiase, PhD VP, Program Management VP, Program Management, Pfizer Program Management, Biogen Idec Suman Patel, PhD VP, Manufacturing & Quality VP, Manufacturing & Quality, Therion Quality & Manufacturing, Shire, Biogen Idec |
 EPIRUS Biopharmaceuticals, Inc. 19 Non-Confidential Footprint Financial Global biosimilar development, manufacturing & commercialization Multi-product pipeline with late stage lead asset, BOW015 (infliximab), biosimilar to Remicade ® Positive P1 and P3 rheumatoid arthritis clinical data for BOW015, additional P3 trial planned in Europe. With Reliance as manufacturing partner, approval in India Multiple global partnerships, including in India and SE Asia, and under negotiation in China and Brazil Investors include TPG Biotech ® , Montreux Equity Partners, 5AM Ventures, Livzon Mabpharm, Inc. (China), Adage Capital, Greenwoods Investment (China), Gibralt US, Inc. (Canada), Monashee Capital Partners LP, and an investment affiliate of Mousse Partners (NY, China) Raised $74M in two private rounds; ~$33M in cash (as of April 2014) |
 Non-Confidential Non-Confidential Thank You |
 Non-Confidential Biologics are Larger & More Complex Than Small Molecules in Structure and Process 21 21 Small molecule Lipitor ® atorvastatin 560 g/mol 1X Isolate and identify the genetic code of the protein. Genetic code is inserted into living cells. Cells are carefully selected and cultured. Protein is isolated through a sequence of purification processes. The protein is packaged, after ensuring sterility and stability, for use by doctors and patients. (Not to scale) Structure Protein Epogen ® epoetin alfa 18,396.1 g/mol >30X Glycoprotein HUMIRA ® adalimumab 144,190 g/mol >250X Process 1 2 3 4 5 Lipitor, Epogen and Humira are registered trademarks of Pfizer, Amgen and Abbvie respectively |
 Non-Confidential Biosimilars are Validated With Analytical and Clinical Comparisons to a Reference Biologic 22 Primary sequencing Peptide mapping Disulphide bond assignment Secondary structure analysis Glycoprofiling Binding profiles Single dose toxicity tests Repeat dose toxicity tests Multiple species Phase 1 PK/PD Phase 3 Safety & Efficacy Biosimilar product Clinical Biosimilarity Characterization Originator product Structural/Analytical Biosimilar product Pre-Clinical |