MOUN CRES : KOL Call Discussing Better Tx's Top Line Results for BT-001 283.3 KB

Better Therapeutics (BTTX)

KOL Call Discussing Better Tx's Top Line Results for BT-001 in T2D on March 25th, 2022 at 1 pm ET

OUTPERFORM | Price Target: $15.00

On Friday, March 25th at 1 pm ET, we will host Dr. Marc Bonaca and Dr. Mark Berman to discuss the top line results from Better Tx's (Nasdaq: BTTX) US Pivotal study for BT-001 in patients with type 2 diabetes (T2D) (previously covered here).

As a reminder, Better Tx reported a statistically significant improvement in A1c between the intervention and control groups (difference of -0.4%; p<0.001) and a favorable safety profile (no device-related or study-related AEs) after 90 days. Per management, this 90-day safety and efficacy data should be sufficient to support BT-001's regulatory clearance via the De Novo pathway (filing submission expected in Q2).

On the call, we will discuss:

• The clinical significance of the top line safety and efficacy data
• Where in the current treatment paradigm for T2D BT-001 may be utilized
• Expectations/Considerations for the 180-Day readout in Q2
• Expectations/Considerations for the initial readout from the Real-World Evidence (RWE) Study in Q3

Please email Robert Fromberg ([e-mail]) to register. Rob can also provide a replay link and transcript for those who cannot make the live call. Also, please let us know if there are specific questions you would like asked.

KOL Biographies

• Dr. Mark Berman serves as Better's Chief Medical Officer. Previously, he practiced as an internal and lifestyle medicine physician at One Medical. Dr. Berman received his M.D. from Yale. He completed residency at Harvard's Brigham and Women's Hospital and a clinical research fellowship at University of California, San Francisco. He has also served as a director of the American College of Lifestyle Medicine.
• Dr. Marc Bonaca is a Cardiologist and Vascular Medicine Specialist who serves as the Executive Director of CPC Clinical Research and CPC Community Health which is an Academic Research Organization created by and affiliated with the University of Colorado Anschutz Medical Campus. Dr. Bonaca has extensive experience in the design and conduct of large multicenter randomized clinical trials as well as analyses in registries and real-world datasets. His key areas of interest include patients with peripheral artery disease, polyvascular disease and diabetes with a focus on the breadth of risk including ischemic limb outcomes, microvascular complications and major adverse cardiovascular events. Other clinical research interests include the evaluation of novel antithrombotic, lipid lowering and glucose lowering drugs, and the use of established and novel biomarkers or risk prediction and personalization of therapy. He is a member of the Society of Vascular Medicine, American College of Cardiology (ACC) and American Heart Association (AHA). He currently serves on the ACC PVD Leadership Council and is an associate editor for the Vascular Medicine.

Announcement

March 22, 2022

Analysts

Rahul Rakhit, M.S. (AC) (646) [e-mail]

Market Data

Price	$2.59
Market Cap (M)	$61
EV (M)	$14
Shares Outstanding (M)	23.6
Fully Diluted Shares (M)	30.3
Avg Daily Vol	101,175
52-week Range:	$2.31 - $29.40
Cash (M)*	$57.3
Net Cash/Share	$2.00
Annualized Cash Burn (M)	$23.4
Years of Cash Left	~2.4
Debt (M)	$10.0
Short Interest (M)	0.20
Short Interest (% Float)	3.0%
*Estimated pro forma cash balance

Financials

FY Dec		2020A	2021E	2022E
EPS	Q1	(0.29)	(1.03)A	(0.27)
	Q2	(0.21)	(1.66)A	(0.29)
	Q3	(0.41)	(2.37)A	(0.40)
	Q4	(0.41)	(0.35)	(0.39)
	FY	(1.27)	(1.47)	(1.34)

For analyst certification and disclosures please see pages 3 - 4

March 22, 2022

LifeSci Capital | Alpha Series

Expected Upcoming Milestones

• Q2 2022 - BT-001 Pivotal Study Completion and Full Data Readout
• Q2/Q3 2022 - Submit De Novo classification request to the FDA
• Q3 2022 - Initial Readout of BT-001 RWE Study
• YE 2022/H1 2023 - Potential FDA Clearance for BT-001 in T2D

Valuation Methodology & Risks to Investment

The $15 12-month price target is based on a DCF valuation that assumes a 20% discount rate, a 3% terminal growth rate, and an estimated 30.3 million fully diluted shares. We expect Better Tx to obtain de novo clearance for BT-001 in Q2 2023 and to obtain 510(k) clearance of BT-002 in Q2 2024. We expect Better Tx to generate $6.85 million in revenue in 2023 and anticipate that revenue will grow to ~$917 million by 2027.

We consider an investment in Better Tx to be a high-risk investment. Better Tx's valuation is highly dependent on the success of its ongoing and future clinical trials. While BT-001 and BT-002 have been clinically validated in their respective pilot studies, the number of patients reported on is limited and may not be predictive of future success. Additionally, despite significant time and financial investments from the Company and a validated path to approval, there is no guarantee that BT-001 or any subsequent product will reach the US market. With respect to commercialization, adoption of these products may not meet our expectations and entry of additional PDTs could exert competitive pressure on the Company, and sales of these products may not ultimately meet projections. Further, Better Tx may need to raise additional capital through dilutive financing(s) and may not be able to obtain sufficient capital to fund planned development programs or market launches.

2

March 22, 2022

LifeSci Capital | Alpha Series

Analyst Certification

The LifeSci Capital ("LSC") research analyst denoted by an "AC" on the cover of this report certifies (or, where multiple research analysts are primarily responsible for this report, the research analyst denoted by an "AC" on the cover or within the document individually certifies), with respect to each security or subject company that the research analyst covers in this research, that: (1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subject securities or subject companies, and (2) no part of any of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report.

DISCLOSURES

Neither the research analyst(s), a member of the research analyst's household, nor any individual directly involved in the preparation of this report has a financial interest in the securities of the subject company/companies.

Rating and Price Target History for BTTX as of 03/21/2022

I:OP:$15.00 12/27/21

18

16

14

12

10

8

6

4

2

May 19 Jul 19 Sep 19 Nov 19 Jan 20 Mar 20 May 20 Jul 20 Sep 20	Nov 20 Jan 21 Mar 21 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22
		Closing Price			Price Target

Research Rating Definitions

Outperform: The stock is expected to achieve a total positive return of at least 15% over the next 12 months

Market Perform: The stock is expected to have a total return that falls between the parameters of an Outperform and Underperform over the next 12 months

Underperform: Stock is expected to achieve a total negative return of at least 10% over the next 12 months

Distribution of Ratings/IB Services

*IB Serv./Past 12 Mos.

Rating	Count	Percent	Count	Percent
OUTPERFORM	29	85.29	11	37.93
MARKET PERFORM	5	14.71	1	20.00
UNDERPERFORM	0	0.00	0	0

This research contains the views, opinions and recommendations of LifeSci Capital, LLC ("LSC") research analysts.

Additionally, LSC expects to receive or intends to seek compensation for investment banking services from the subject company/companies in the next three months.

LSC does not make a market in the securities of the subject company/companies.

LSC is a member of FINRA and SIPC. Information used in the preparation of this report has been obtained from sources believed to be reliable, but LSC does not warrant its completeness or accuracy except with respect to any disclosures relative to LSC and/or its affiliates and the analyst's involvement with the company that is the subject of the research. Any pricing is as of the close of market for the securities discussed, unless otherwise stated. Opinions and estimates constitute LSC's judgment as of the date of this report and are subject to change without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, companies, financial instruments or strategies to particular clients. The recipient of this report must make his/her/its own independent decisions regarding any securities or financial instruments mentioned herein. Periodic updates may be provided on companies/industries

3

March 22, 2022

LifeSci Capital | Alpha Series

based on company specific developments or announcements, market conditions or any other publicly available information. Additional information is available upon request.

Please visit https://lifesci.bluematrix.com/sellside/Disclosures.actionfor disclosures related to each company that is a subject of this report. Alternatively, please contact us by telephone at [phone] or by mail at LifeSci Capital LLC, Attn: Compliance, 250 West 55th Street, Suite 3401, New York, NY 10019 to obtain disclosures relating to any of the companies that are the subject of this report.

No part of this report may be reproduced in any form without the express written permission of LSC. Copyright 2022.

4