Repro Med : Investor Presentation August 2020

Investor Presentation

August 2020

NASDAQ: KRMD

FORWARD-LOOKING STATEMENTS / NON -GAAP MEASURES

This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as : "expect," "plan," "goals," "believe," "intend," "see," "feel," and "future," and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our long-term growth potential and sustainability, our strategic growth initiatives and long-term financial goals, issues expected with U.S. plasma supply, expected increase in IG supply, and the potential impact of COVID-19 in the market. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward- looking statements include, among others, the following: impact of COVID-19; introduction of competitive products; availability of insurance reimbursement; changes in U.S. Food and Drug Administration regulations; changes to health care policies; success of our research and development efforts; our ability to raise capital if or when needed; acceptance of and demand for new and existing products; expanded market acceptance of the FREEDOM Syringe Infusion System; our ability to obtain required governmental approvals; success in enforcing and obtaining patents; continued performance by principal suppliers; continued customer preference to work through distributors; continued service of key personnel and attracting and maintaining new personnel; and general economic and business conditions. Any forward-looking statement made by us is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Non-GAAP Adjusted EBITDA

Adjusted EBITDA excludes from net income (loss): tax expense, depreciation and amortization, interest income/expense, net, reorganizations charges, discontinued product expenses, litigation, stock-based settlement expense, manufacturing initiative expenses, and stock option expense.

Non-GAAP Measures

This presentation includes the non-GAAP financial measure of "Adjusted EBITDA" that is not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. The non-GAAP financial measure is meant to supplement, and to be viewed in conjunction with, GAAP financial results. A reconciliation of our non-GAAP measure is included in an attachment to this press release.

NASDAQ: KRMD

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KORU MEDICAL SYSTEMS

PUT TING THE PATIENT FIRST WITH EASY - TO - USE HOME INFUSION SOLUTIONS

KORU Medical Systems manufactures and sells the Freedom Integrated Infusion System that allows

chronically-ill patients to self-administersubcutaneous infusion therapy in their homes

Supporting the Migration	Pursuing Multiple	Clinical Trial
to At-Home Healthcare	Growth Pathways	Activity

Benefitting from	Lowering Costs;	Strong Financial
Delivering Improved
Secular Growth Trends	Performance
Outcomes
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MAKING AT HOME TREATMENT A REALITY

PEACE OF MIND DURING UNCERTAIN TIMES

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KORU'S POSITIONING

LEVERAGING OUR CORE STRENGTHS TODAY TO DRIVE GROWTH TOMORROW

Significant Market Share and Growth Potential

Differentiated

Technology

Strong Pharma

Relationships

Premium Customer

Retention

Unique Value Proposition Across The Care Continuum

Growing Adoption and	Expanded Indications for
Opportunity in Current	Existing Therapies (e.g.
Space (Ig)	Secondary Immunodeficiency)

Expand Outside the	Support Drug Development
United States	for New Disease States

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PIDD: $427.5 M U.S. ADDRESSABLE MARKET

E XC LU D E S OT H E R D I S E A S E S TAT E S A N D S E C O N DA R Y I M M U N E D E F I C I E N C Y D I S E A S E S I N T E R N AT I O N A L M A R K E T O P P O R T U N I T Y ~ 2 x - 3 x U . S . A D D R E S SA B L E M A R K E T

PIDD

400+ immune diseases

Chronic Condition

$750

Annual Recurring Revenue

Per PIDD Patient

CIDP

Expanded Indication 25,000 U.S. Patients

UNDERPENETRATED U.S. PIDD MARKET = COMPELLING GROWTH OPPORTUNITY

500,000

Undiagnosed U.S.

PIDD Population

70,000

Diagnosed and Receiving

Ig Therapy

24,000

Receiving SCIg Therapy using

KORU's Freedom System

$1,500	5%	46,000
Annual Recurring Revenue Per Patient
(Assumes 2 treatments per week)	Total	Potential Patient Conversions
	Market Penetration	(Diagnosed ) to KORU's Freedom System
PIDD patient population data fromhttps://www.cslbehring.com/patients/find-your-disease/immunodeficiency-and-autoimmune-diseases
CIDP patient population (2018) from	https://www.ajmc.com/journals/supplement/2018/examining-therapies-cidp/chronic-infammatory-demyelinating-polyneuropathy-considerations-for-diagnosis-
NASDAQ: KRMDmanagement-and-population-health..

Other figures are KORU Medical estimates.

546,000

Patient Capture

Opportunity

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SCIg ENABLES IMPROVED PATIENT OUTCOMES AND QUALITY OF LIFE ( 1 )

1

2

3

4

SCIg Offers Meaningful Benefits to Patients

Self-administer at home without the need for a nurse

Infuse under the skin, not through a vein

Freedom to go about daily activities with minimal interruption

Consistent serum levels…which we believe enables patients to feel better, longer

Subcutaneous and Intravenous Serum Ig Level

SCIg promotes consistent serum levels throughout the entire treatment period, which we believe enables patients to feel better, longer while supporting improved patient compliance.

NASDAQ: KRMD	(1) P&T Product Profiler - Hizentra Vol. 35, Issue 8 / August 2010 Section 2 / adapted from Berger 2004. Available at	New Life, New Beginnings -7-
www.ptcommunity.com/ptjournal/fulltext/Profiler_Hizentra/Profiler_Hizentra.pdf.

MARKET OVERVIEW

PLASMA SUPPLY IS RAMPING AS DEMAND RISES FOR Ig AND SCIg THERAPY

Global Ig Market (1)

($ in billions)

$18.4

$10.8

20182025

Total Available Market

Total U.S. Plasma Collections (3)

				(in millions)				53.5
								48.7
							42.4
						38.3
					35.5
			29.4	32.6
		26.2
	23.6
19.8
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

	Global Home Infusion Therapy Market
	+7% CAGR to $41.6 B by 2027 (2)
(1)	Fortune Business Insights.	Plans to reach 370 approved	20 new U.S. plasma	Intends to increase plasma supply
plasma collection centers by	collection centers opened	and manufacturing capacity
	www.fortunebusinessinsights.com/press-release/immunoglobulins-market-9134
(2)	Grand View Research, February 2020	2024 globally	in 1H FY 2020	by >65% over the next five years
(3)	https://www.pptaglobal.org/images/Data/Plasma_Collection/Total_Yearly_Collections_	Form 20-F for FY ended 12/31/19	Press release, 2/12/20	Fourth quarter earnings slides, 5/13/20
	2008-2019.pdf
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HIZENTRA®

Team Sales Approach

KORU Medical leverages CSL Behring's

large sales organization to educate and influence physicians, patients and SPs about the advantages of subcutaneous infusion with the Freedom60®

NASDAQ: KRMD

Source:www.hizentra.com

KORU Medical's Freedom60® is featured

atwww.hizentra.comand in a

national advertising campaign for

Hizentra® SCIg therapy

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XEMBIFY® by Grifols: Launched December 2019

• New SCIg treatment introduced by Grifols
• Grifols is a leading producer of plasma medicines
• Validates therapeutic shift from IVIg to SCIg
• Grifols anticipates increasing global plasma donation centers
• Significant long-term growth potential for KORU

Source: www.sec.gov/Archives/edgar/data/1438569/000110465920043470/tm1919375d1-20f.htm.
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NEW THERAPIES REPRESENT SIGNIFICANT MARKET

EXPANSION POTENTIAL

Current Development Programs

Total Addressable Market = ~40M Patients (1)

Secondary	Hematology	Pulmonology	Nephrology	Rheumatic &
Immunodeficiency	Autoimmune Diseases

Additional Opportunities

>10 Therapeutic Areas (1) (2) >10 High Potential Future Candidates (1) (2)

(1) Based on management analysis; (2) Inclusive of current development programs

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DIAGNOSES OF PRIMARY IMMUNODEFICIENCIES (PI) IMPROVE LIVES AND LOWERS COSTS

• A study by The Jeffrey Modell Foundation (2017) examined the economic burden of chronic immunodeficiency diseases
• Retrospective analysis of 1,388 patients undiagnosed with PI for at least 5 years
• Increased incidence of pneumonia, sinusitis, bronchitis, and otitis
• Higher rate of hospitalization, outpatient visits and outpatient drug utilization

Chronic Patients Necessitate Treatment

Payor economics more favorable after diagnosis

$85,782

Decline in

Annual Treatment Costs

Per Patient

After Diagnosis of PI

(before Ig treatment)

Source:www.ajmc.com/journals/supplement/2019/examining-the-application-immunoglobulin/managing-cost-of-care-and-healthcare-utilization-in-patients-using-immunoglobulin-agents

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AT-HOME INFUSION: THE SAVINGS OPPORTUNITY ( 1 )

"For certain administered specialty drugs, treatment at home can improve patients' physical and mental well-being and reduce disruption of work schedules

and family responsibilities, all without increasing the

likelihood of adverse drug events or side effects."

UNITEDHEALTH GROUP®

Reducing Specialty Drug Costs / September 2019

(1) UnitedHealth Group®: Reducing Specialty Drug Costs / September 2019.

NASDAQ: KRMD

Monthly Cost of Immune Deficiency Drugs for

Privately Insured Individuals, 2018

Hospitals		Physician Offices		Patients' Home

$12,18044%

SAVINGS

$6,736	for 6 Months
	of Treatment
$6,828

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KORU IMPROVES THE DELIVERY OF CARE

PHYSICIAN/PATIENTS/SPECIALTY PHARMACIES ARE PRODUCT DECISION MAKERS KORU AND PHARMA ARE THE PRIMARY INFLUENCERS ON THESE DECISION MAKERS

Hospital /	Immunologist	Infusion Therapy	SP	Self-Administer	Infusion Resupply
Physician Visits		Diagnosis	Prescribed	Distributors	At Home	Direct to Patient

• Chronic conditions in need of therapy
• Expanding trend of physicians prescribing subcutaneous immunoglobulin
• Proven solution
• Increasing drug development for subcutaneous delivery
• Freedom pump is the market-leading mechanical subcutaneous delivery solution
• High margin, recurring revenue stream

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EXECUTING AGAINST OUR STRATEGIC GROWTH INITIATIVES

TO BECOME THE PREFERRED DRUG DELIVERY PARTNER FOR SPECIFIC INFUSION THERAPIES IN SELECT MARKETS

Phase 1

Growth & Market Capture

2019 - 2020

• Maintain baseline business
• Penetration of PIDD and CIDP
• • Pharma reps
  • Home infusion sales reps
  • Distributors
• New product development/launch
• New indications
• Government partnership
• OUS development
• Pharma collaboration
• Funnel of clinical trials
• Margin improvement

NASDAQ: KRMD

	Phase 2			Phase 3
	Expand & Innovate			Accelerated Growth
	2020 - 2021			2021 and Beyond
• Continued execution of Phase 1		• Continued Phase 1 and 2 execution
•	New products		• New drugs and indications
•	Expanded indications		•	Post-acute care growth
•	Post-acute care		•	Global expansion
•	European expansion		•	Market share gains

GROWTH CAPITAL WILL HELP FUND THE NEXT TWO PHASES

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Q2 2020 FINANCIAL SUMMARY ( $ in MMs)

Net Sales

+44.1%

$7.7

$5.3

Gross Profit / Margin	Net Income (Loss)
+41.3%			Included $2.2 M
		non-cash litigation
$4.9	settlement expense

$3.5	$0.1

Adjusted EBITDA *

+18.1%

$1.8

$1.5

Q2 '19

Q2 '20

65% 64%

Q2 '19

Q2 '20

Q2 '19

$(1.1)

Q2 '20

Q2 '19

Q2 '20

*Adjusted EBITDA excludes from net income (loss): tax expense, depreciation and amortization, interest expense (income), net, reorganization charges, discontinued product expenses, litigation, manufacturing initiative expenses, and stock option expense.

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Q2 2020 FINANCIAL SUMMARY	( $ in MMs)
				Three Months	Three Months	Year Over
				Ended		Ended
						Year Change
				6/30/20	6/30/19
	Net Sales			$	7.7	$	5.3	44.1%
	Gross Profit			$	4.9	$	3.5	41.3%
	Gross Margin				63.7%	65.0%	(130) bps
	Total Operating Expenses			$	5.9	$	3.4	72.7%
	Net (Loss) / Income			$	(1.1)	$	0.1	$ 1.0 M
	Non-GAAP Adjusted EBITDA*			$	1.8	$	1.5	18.1%

*Adjusted EBITDA excludes from net income (loss): tax expense, depreciation and amortization, interest expense (income), net, reorganization charges, discontinued product expenses, litigation, manufacturing initiative expenses, and stock option expense.

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BALANCE SHEET AND CAPITAL STRUCTURE

$38.1 M

Cash & Cash Equivalents

at June 30, 2020

$3.5 M

Line of Credit

$2.5 M

Equipment Financing

Line of Credit

48.1 M

Diluted Shares Outstanding

at June 30, 2020

NASDAQ: KRMD

	June 30,		December 31,
($ in millions)	2020		2019
Cash & Cash Equivalents	$	38.1	$	5.9
Current Assets	$	45.3	$	11.9
Total Assets	$	47.7	$	13.9
Total Liabilities	$	8.4	$	2.7
Shareholders' Equity	$	39.2	$	11.2

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RECONCILIATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA

Three Months Ended

Six Months Ended

		June 30,				June 30,
		2020		2019		2020		2019
GAAP Net (Loss)/Income	$	(1,076,038)	$	78,183	$	(626,610)	$	(7,207)
Tax Expense		30,919		24,683		172,847		2,584
Depreciation/Amortization		94,940		86,169		182,164		169,820
Interest Expense/(Income), Net		5,002		(18,243)		(14,028)		(35,723)
Reorganization Charges		-		-		-		354,926
Discontinued Product Expenses		(31,581)		-		77,977		-
Litigation*		2,346,914		1,124,947		2,446,072		1,617,462
Manufacturing Initiative Expenses		25,957		-		135,759		-
Stock Option Expense		363,851		194,765		664,817		316,640
Non-GAAP Adjusted EBITDA	$	1,759,964	$	1,490,504	$	3,038,998	$	2,418,502

*2020 included $2.2 million of non-cash,stock-based settlement expense.

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THANK YOU

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