Scorpius (SCPX) 8-K Regulation FD Disclosure

Corporate Presentation

January 2014

Forward Looking Statements

This presentation includes statements that are, or may be deemed, ‘‘forward-looking statements.’’ In some cases, these forward-looking
statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,”
“expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately” or, in each case, their negative or other variations
thereon or comparable terminology, although not all forward-looking statements contain these words. They appear in a number of
places throughout this presentation and include statements regarding our intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things, our ongoing and planned discovery and development of drugs targeting cancer stem
cells, the strength and breadth of our intellectual property, our ongoing and planned preclinical studies and clinical trials, the timing of
and our ability to make regulatory filings and obtain and maintain regulatory approvals for our product candidates, the degree of clinical
utility of our products, particularly in specific patient populations, expectations regarding clinical trial data, our results of operations,
financial condition, liquidity, prospects, growth and strategies, the length of time that we will be able to continue to fund our operating
expenses and capital expenditures, our expected financing needs and sources of financing, the industry in which we operate and the
trends that may affect the industry or us.  

By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics, and
healthcare, regulatory and scientific developments and depend on the economic circumstances that may or may not occur in the future
or may occur on longer or shorter timelines than anticipated. Although we believe that we have a reasonable basis for each forward-
looking statement contained in this presentation, we caution you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we
operate may differ materially from the forward-looking statements contained in this presentation as a result of, among other factors, the
factors referenced in the “Risk Factors” section of our Registration Statement on Form S-1, as amended, declared effective by the
Securities and Exchange Commission on July 23, 2013 and our quarterly report on Form 10-Q for the period ended September 30,
2013 (collectively, our “SEC Filings”). In addition, even if our results of operations, financial condition and liquidity, and the development
of the industry in which we operate are consistent with the forward-looking statements contained in this presentation, they may not be
predictive of results or developments in future periods. Any forward-looking statements that we make in this presentation speak only as
of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the
date of this presentation, except as required by law.

You should read carefully our “Special Cautionary Notice Regarding Forward-Looking Statements” and the factors described in the
“Risk Factors” sections of our SEC Filings to better understand the risks and uncertainties inherent in our business.

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Investor Highlights

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ØTransformative, differentiated Immunotherapy platform generating
diverse pipeline with strong patent estate

ØPromising clinical data yielding impressive survival supports 2
programs advancing into late-stage studies in 2014

ØClinical development programs with clear path to registration in high-
potential markets

ØRobust business development initiative with potential for multiple
regional and global partnering opportunities

ØExperienced team with extensive oncology operational, scientific,
clinical and business development expertise

Management Team and Scientific Advisory Board

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Jeff Wolf Founder and CEO

• Founder and managing director of Seed-One Ventures

• Co-founder and director, Avigen

• Co-founder and Chairman, TyRx Pharma

  Founder and CEO, EluSys Therapeutics

Matt CzajkowskiChief Financial Officer

• Fifteen years experience as Chief Financial Officer for a variety of
  early stage and public companies:Pozen, Inc., AAI Pharma,
  Incventure funded private companies

• Chief Executive Officer of NextRay, Inc.

• Investment Banker, Goldman Sachs & Co.’s Asia Pacific Mergers and
  Acquisition Group in Tokyo, Japan.

Anil K. Goyal, Ph.D.,VP, Business Development

• 20 years of experience at private and public biotechnology companies
  covering all aspects of licensing, deal making, and strategic alliances

• Management and BD roles with Serenex, Inc.,  Millennium
  Pharmaceuticals, Genome Therapeutics Corporation, Qualiber, and
  Ascletis Pharmaceuticals.

Melissa Price, Ph.D. VP, Clinical and Regulatory Affairs

• Led numerous oncology programs in both the biotech arena and the
  CRO space.  

• Leadership roles at INC Research, Novaquest, (a Quintiles Company
  and Attenuon

• Published in numerous scientific journals

§Eckhard R. Podack, M.D., Ph.D.

§James Allison, Ph.D.

§Sol J. Barer, Ph.D.

§John Nemunaitis, M.D.

§Justin Stebbing, M.D., Ph.D.

§Daniel D. Von Hoff, M.D.

WORLD RENOWNED

SCIENTIFIC ADVISORY BOARD

Team with Proven Track Record

Diverse Pipeline with Multiple Registration Opportunities

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From drug discovery to late-stage clinical development

IP Estate with Broad and Early Filings

Broad Issued Patents on ImPACT Platform & Pipeline

ImPACT Platform Technology

l US and foreign patents issued for ImPACT technology for the treatment of cancer and
     viral disease

l Additional patents on proprietary cell lines and clinical data

Worldwide Filings

l Over 50 patent applications across 5 patent families

l Enforceable patents issued in 15 countries and counting

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Heat’s ImPACTTherapy

Living Drug Factories

Antigen and adjuvant delivery in a single package

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Introducing gp96 — Immune System’s “Swiss Army Knife”*

“Molecular Warning System”

*Schild, H. & Rammensee, H.Gp-96 - The Immune System’s Swiss Army Knife. Nature Immunology 2, 100
-101 (2000)

gp96

antigen

leash

lNatural biological process to deliver proteins (antigens)
+ gp96 adjuvant to our immune system

lGp96 “chaperones” newly-created proteins to the cell
membrane where they are released and embedded

lActivates a cytotoxic T-cell response to the antigen it is
carrying when cells die through necrosis

–Enables MHC I antigen cross-presentation to CD8+ T-cells

lGp96 + protein are only naturally released via necrosis

–Exposure of gp96 outside the cell activates an immune
response to the antigen it is carrying

–Enables MHC I antigen cross-presentation specifically to
CD8+ T-cells

lAmong the most powerful adjuvants and the only
adjuvant to show exclusive specificity to CD8+ (“killer”)
T-cells

–Provides long-term immunity against the infectious agent

Tethered to our cells with a “KDEL” leash

Endoplasmic Reticulum

Cell Membrane

Antigen

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lGenetically modify tumor cells by “severing the
leash” that binds the gp96 to the endoplasmic
reticulum of the cell and replacing it with a
sequence that pumps gp96 out of the cell

lEnables living cancer cells to “pump-out” their own
surface antigens along with their gp96 chaperone

–Mimics necrotic cell death

lActivates a powerful pan-antigen cytotoxic T-cell
immune response

l“Off-the-shelf” therapy designed to enable a fully
in vivo attack against a wide variety of cancers

Heat Biologics ImPACTtechnology removes the leash that binds
gp96 to the cell, replacing with a sequence that allows cells to
continually secrete gp96 along with their “chaperoned” antigen

Cell Membrane

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Vaccine Injection

Inject living ImPACT cells
into the patient

ImPACTTherapy — Process

Non-functional
Tumor Cell

Killer
T-Cell

Heat Biologics
creates
genetically
modified tumor
cell lines to
continually
secrete their own
mutated antigens
bound to gp96.

2

Scale-up production
of these living tumor
cells as our “drug” to
treat all patients with
a particular cancer.
Irradiate these cells
so they can’t
replicate and vial for
distribution.

3

Inject these living,
genetically-
modified cells into
patients.These
cells continuously
secrete tumor
proteins bound to
gp96.

4

Secreted proteins
activate killer T-
cells to seek-out
and destroy the
targeted cancer.

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1

Choose cancer of
interest and
identify a cell line
representative of
that cancer.

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ImPACT — Highlights

An “Off-the Shelf” Therapy to Generate a Pan-antigen T-cell Immune
Attack

Approach

• Allogeneic, “off-the-shelf” treatment
  created from a master cell line

• No tumor cells, blood or anything else
  extracted from the patient

• Non-invasive

Benefits

• Unlimited drug supply enables immediate
  treatment

• Frequent administration with no patient-
  specific processing

• Less expensive to produce
  and administer than autologous therapies
  with COGS < 5% of autologous approaches
  with fewer logistical hurdles

•Pan-antigen immune attack

•Unleashes an immune attack against a
wide variety of known and unknown
cancer antigens

•Cytotoxic T-cell exclusive immune response

•Antigen + adjuvant in a single complex

•Antigen + adjuvant presented simultaneously

•Activates robust and highly specific immune
response against secreted cancer antigens

•Continuous secretion of gp96-
antigen/adjuvant complex

•Generates more robust and sustained antigen
-specific immune response

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Heat’s HS-110 Therapy

•Cells are genetically modified to secrete gp96
and most known (and many unknown) lung
cancer antigens

•Pan-antigen cytotoxic T-cell immune response

Treatment

•Powerful immune activation

•Positive safety profile based on preclinical
studies and one clinical study

•The drug is administered in a simple,
once-a-week injection

Survival Curve for Late-Stage 3B/4
NSCLC Patients*

* Massarelli E. Lung Cancer;2003:39 - Meta Analysis

Current Treatment

• Surgical Resection

• Radiation Therapy

• Chemotherapy

         –3-6 cycles

         –Each cycle lasts 3-4 weeks

• Targeted Therapies

Survival Prospects

• Median survival ~ 4.5 months*

• 1 year survival ~6%*

Lung Cancer and HS-110

Background

“Without any chemotherapy, the average person will live about 4½ months.
With chemotherapy most will live longer and some will live a shorter time. More recent chemotherapy trials have
shown that people live about 3 months longer than if they did not get chemotherapy …

… Even with chemotherapy, the chance of being alive at one year is about 30-50%;
the chance of dying within this year is 50-70%.”

— American Society for Clinical Oncology (ASCO) Guidelines

Lung Cancer is the Second Most Common Cancer in
US with No Reliable Treatment Options for Late-Stage
Patients

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HS-110: Successful Completion of Phase 1 Study

lNIH-funded, open-label, single center investigator-sponsored IND

l18 patients with late-stage NSCLC

lEnrollment alternating in 3 cohorts after first 8 patients

Stage IIIB/IV NSCLC

Disease progressing at time of Enrollment

Failed multiple lines of prior therapy

Cohort 3
¼ Strength Dose Twice Weekly

(10,000,000 Cells)

Cohort 2
½ Strength Dose Weekly

(20,000,000 Cells)

Cohort 1
1 Dose Every 2 Weeks

(40,000,000 Cells)

Safety
Immune Response,
Tumor Response,

Overall Survival,
Progression Free Survival

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Phase 1 NSCLC Trial Design

HS-110 NSCLC Phase 1 Clinical Trial Results

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lWell-tolerated with no overt toxicity

lSingle agent clinical activity in late-stage 3b and 4 non-small cell lung cancer

–7 of 15 surviving patients exhibited stable disease
after single course of therapy

lImmune response observed in 73% (11 out of 15)
of patients who completed their first course of
therapy

–Immune response predictive of survival
(HR: 0.021, 95% CI:0.002-0.204)

•The immune responders exhibited a median survival of
16.9 months (95% CI: 7.1-20) while the immune non-
responders exhibited a median survival of 4.5 months

–Two late-stage patients survive >3 years

•One HS-110 patient alive >3 yrs. and another patient
still alive >4 yrs.

lMedian 1 year overall survival rate of patients in the study was 44% (95% CI:
21.6-65.1) comparing favorably to a 5.5% rate based on historical control*

Immune Response Predictive of Survival

In 11 of the 15 patients (73%) completing the first course of therapy with HS-110, there was a twofold or greater increase in CD8 cells
secreting interferon gamma (CD8-CTL IFN-γ) following vaccination.The responders saw a threefold increase in median overall survival
compared to non-responders in the trial, from 4.5 months to 16.9 months

Non-Responders

Responders

>3x Extension of Median OS
for Responders

6

12

18

24

30

36

0.25

0.50

1.00

0.75

Months From Treatment Start

0

(N=4)

(N=11)

Hazard Ratio:0.021

95% CI: 0.002 - 0.204

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HS-410 Lung Cancer Program Next Steps

1H 2014

üFinalize Phase 2 protocol

üSubmit revised protocol to FDA

üAnnounce Phase 2 protocol

üCommence patient enrollment and dosing

Lung cancer Phase 2 program designed in collaboration with KOLs

Bladder Cancer and HS-410

Background

lCurrently-available treatments have high failure rate and are
poorly tolerated

lAmong highest lifetime treatment cost per patient of any
cancer due to a high recurrence rate

lOpportunity to treat patients with minimal residual disease

lDrug manufacturing and preparation of IND and protocol
for HS-410 in progress

lNo new drugs for this patient population in >25 years

lHS-410 Phase 1/2 trial will include ~93 patients

In 2012 Alone, There Were 73,000 New Cases
of Bladder Cancer Reported and 15,000 Deaths

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HS-410: Bladder Cancer Phase 1/2

lStudy opened for enrollment December 2013

lPatient recruitment ongoing

lPopulation includes non-muscle invasive disease, treated with surgery
followed by 3-6 weeks of BCG therapy

Placebo

N=25

HS-410
Optimal dose N=50

Phase 1/2 - 2 Stage Adaptive Design

Proceed with Optimal Dose

HS-410

Cohort 1

Low Dose N=9

1,000,000 cells

HS-410

Cohort 2

High Dose N=9

10,000,000 cells

93 patient, fully-randomized, placebo-controlled trial

Weekly injections for 12 weeks followed by 3 monthly injections

Trial objectives include safety and
immune response

Trial objectives include safety, immune
response and time to recurrence

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Stage 1

N = 18

Dose Finding

Stage 2

N = 75

Proof of Concept

Business Development Strategy

1.ImPACT Platform Partnerships

•Strategy to Partner by indication(s)

•Use platform for new product discovery

•Product development by partner

2.Clinical Programs (HS-110, HS-410)

•Partner at/after Phase 2 data

•Partner with regional or global rights

•Retain US commercialization rights

•Explore co-development partnerships with anti-PD1 & anti-PDL1 products

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Companies	Date	Financials
AZ-Immunocore	Jan ‘14	$20M+300M/ program
Novartis-UPenn	Aug ‘12	$20M+MS
Sanofi-CureVac	Nov ‘11	$33M+200M

Selected Immunotherapy Deals

Financial Snapshot

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Ticker	NASDAQ: HTBX
Shares Outstanding	6,375,426
Share Price*	$7.98
Market Capitalization*	~$50M
Cash as of 9/30/13	$23.6M

Financial strength to execute on our business plan

*as of market close on January 9, 2014

Near-Term Milestones

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Program	1H 2014	2H 2014
HS-110 Lung Cancer Program	qSubmit revised protocol to FDA qInitiate Phase 2 enrollment qPhase 2 patient dosing	qPreliminary data
HS-410 Bladder Cancer Program	qCommence patient dosing qComplete Cohort 1 enrollment	qCohort 1 immune response data
3rd Product	qGenerate multiple product candidates	qAnnounce 3rd product program
Corporate	qSeek development and commercialization partners - Ongoing qContinued grant filings and notifications qAdditional research developments qVarious clinical publications

SummaryClinical Stage Platform Technology Generating Promising Human Data

Data to Date Demonstrate:

• Positive safety profile

• Powerful, disease-specific immune activation

• Immune activation corresponds with increased overall survival

Encouraging

Clinical Data

Strong Clinical Pipeline

• Phase 2 NSCLC clinical trial and Phase 1/2 bladder cancer trial with
  additional IND submissions planned in other cancer indications

• Multiple near-term enrollment and data readouts

• Potential for business development licensing activity

Value Creating
Milestones

Transformational
Technology Platform

Unleashes the immune system against a wide range of
cancers

• Over a decade of published research and recent clinical data

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