VBI-2901: Pan-Coronavirus Vaccine Candidate Overview

VBI-2901:Pan-Coronavirus Vaccine Candidate

Overview

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Forward-Looking Statements

Certain statements in this presentation that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are forward-looking information within the meaning of Canadian securities laws (collectively "forward-looking statements"). The company cautions that such statements involve risks and uncertainties that may materially affect the company's results of operations. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to the ability to establish that potential products are efficacious or safe in preclinical or clinical trials; the ability to establish or maintain collaborations on the development of therapeutic candidates; the ability to obtain appropriate or necessary governmental approvals to market potential products, including the approval of Sci-B-Vac® in the U.S., Europe, and Canada following the completion of its recent Phase 3 studies; the ability to obtain future funding for developmental products and working capital and to obtain such funding on commercially reasonable terms; the company's ability to manufacture product candidates on a commercial scale or in collaborations with third parties; changes in the size and nature of competitors; the ability to retain key executives and scientists; and the ability to secure and enforce legal rights related to the company's products, including patent protection. A discussion of these and other factors, including risks and uncertainties with respect to the company, is set forth in the Company's filings with the Securities and Exchange Commission and the Canadian securities authorities, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2020, and filed with the Canadian security authorities at sedar.com on March 5, 2020, and may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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Overview of VBI Vaccines

• Leveraging significant immunology expertise to address unmet medical needs in bothINFECTIOUS DISEASEand IMMUNO-ONCOLOGY
• Advancing prevention and treatment ofHEPATITIS B:
• • Sci-B-Vac®: Only tri-antigenic Hepatitis B vaccine; recently completed a Phase III program in the U.S., Europe, and Canada; approved and marketed in Israel
  • VBI-2601:Immuno-therapeutic in development in a collaboration with Brii Biosciences for a functional cure for chronic Hepatitis B
• Leveraging a proprietary envelopedvirus-like particle (eVLP) platform technology to develop next-generation vaccines:
• • VBI-1901:GLIOBLASTOMA(GBM) vaccine immunotherapeutic candidate (currently in Phase I/IIa study)
  • VBI-2901:PAN-CORONAVIRUS(COVID-19, SARS, MERS) vaccine candidate in development in a collaboration with the National Research Council of Canada
  • VBI-1501: Prophylactic CMVvaccine candidate (positive topline Phase I data announced in May 2018)

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VBI Vaccines Pipeline

		PRE-	PHASE I	PHASE II PHASE III APPROVED	STATUS
		CLINICAL
INFECTIOUS DISEASE
									•Approved for use and
Hepatitis B -	Sci-B-Vac®									commercially-available in Israel
Prophylaxis	VLP								•	Regulatory submissions in U.S.,
										Europe, and Canada expected to
										begin Q4 2020
Hepatitis B -	VBI-2601								•License & collaboration agreement
							•	with Brii Biosciences
Therapeutic	VLP								Initial Phase Ib/IIa data expected
										H2 2020
Cytomegalovirus (CMV)	VBI-1501								•	Positive Phase I data announced
eVLP									May 2018
Pan-Coronavirus	VBI-2901								•	Development collaboration with
(COVID-19, SARS, MERS)	eVLP									NRC announced March 2020
Zika	VBI-2501								•	Candidate selected from NRC
eVLP									collaboration
IMMUNO-ONCOLOGY
									•	Ongoing Phase I/IIa
Glioblastoma (GBM)	VBI-1901								•	Expanded immunologic data
eVLP									expected mid-year 2020 and Q4
										2020
	VBI-1901
Other CMV+ Tumors								•	Preclinical work ongoing
eVLP

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Vaccine Platforms Targeting COVID-19

Name	COVID-19	Live Virus or	Recombinant	Virus Like Particle
		Vector	Protein
Class	RNA Virus	Live or Live	Subunit - simple	Subunit - complex
		Attenuated
Key Structural	"Enveloped" with	Replicating virus,	Focuses on Spike	Virus-mimic
Features	"Spike" Protein	with COVID	protein	including Spike
		swapped in		protein
Pros	Similar to SARS &	Looks like a virus	Cheap, scalable,	Safe, Looks like a
virus to immune
	MERS	to immune	safe
	system, Spike
		system
			adopts native
Cons	Highly infectious,	Those in use not	Less	shape
	virulent,	structurally	immunogenic,	Timelines similar
	mutating?	similar to	proteins adopt	to Virus or
		COVID19	different shape	Recombinant
	The Enemy		Approved Products
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DNA	mRNA
Nucleic Acid	Nucleic Acid
None, code	None, code
injected & proteins	injected & proteins
produced internally	produced internally
Cheap, fast to	Cheap, fast to clinic
clinic, good T-cell
responses
Limited antibodies,	Limited data
No approved	available, product
products since	is produced inside
1987	body (or not)
No Approved Products
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Advantages of the Enveloped Virus-Like Particle (eVLP)

Technology PlatformElectron Microscopy image of VBI's CMV eVLPs captured at

Scripps Institute

		Lipid Bilayer
		MLV Gag creates
eVLP		Virus-Like Structure
		T-Cell Antigen

Surface Antigen(s)

Potential for surface immunomodulatory proteins

• Highly Immunogenic:Because of their structural similarity to viruses found in nature, vaccination with a target protein expressed in an eVLP is capable of imparting greater immunity than vaccination with the same recombinant target protein alone
• Customizable:eVLPs are highly-customizable, which allows VBI to rationally design preventative or therapeutic vaccine candidates by controlling the expression of both surface and internal target proteins of interest
• Safe:eVLPs do not contain any infectious genetic machinery and have proven to be safe and well tolerated in clinical studies, with no vaccine-related safety signals observed
• Commercially Viable:eVLPs are manufactured and purified using highly-scalable methods

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Multiple eVLP Candidates have Clinical & Preclinical Proof-of-Concept

		Infectious Disease		Immuno-Oncology
		Prophylactic CMV	Prophylactic Zika	Therapeutic CMV+ Tumors		Immuno-Oncology
		(VBI-1501)	(VBI-2501)		(VBI-1901)		(VBI-2701)
Schematic
Construct Design		Monovalent:	Bivalent:Modified-E /		Bivalent: gB / pp65		Bivalentwith Immuno-
		(major CD4, CD8 & Ab
	Modified gB-G	NS1			modulatory protein
			epitopes)
Adjuvant		Alum	Alum		GM-CSF		Self Adjuvanted
Most Advanced		Ph I complete	Preclinical		Ph I/II ongoing		Preclinical
Development Stage
	•	Modified gB elicits	•Modified-E enhances	•	Internal antigen	•	Immunomodulatory
		fibroblast & epithelial	neutralizing responses		expression elicits T cell
				proteins can enhance
Key Features		cell neutralization	•NS1 T cell response		immunity
			antigen-specific Th1
•	Qualitatively enhanced	•	Stimulates innate
	enhances antibody		immunity
		neutralizing response	response & protection		immunity

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eVLP Approach to a Pan-Coronavirus Vaccine Candidate

Coronaviruses are members of the "enveloped" class of viruses

COVID-19

• Morphology:
• • Enveloped RNA virus with a predominant S1/S2 spike
  • RNA viruses are prone to genetic drift/shift (though coronaviruses

seem to be more stable than most)

• Key Target Antigen:
• • Based on knowledge of SARS and MERS, it is anticipated that the spike protein (S1/S2) is likely a neutralizing determinant and an ideal target for inclusion in a vaccine
  • The spike protein is trimeric - eVLPs encourage trimerization and expression of native conformation of proteins
• Based on past experience with the eVLP platform, VBI expects that a multivalent eVLP vaccine candidate, co- expressingSARS-CoV-2,SARS-CoV, and MERS-CoV spike proteins on the same particle, will be possible

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eVLP Pan-Coronavirus Trivalent Construct

Covid-19 Spikes

SARS Spikes

VBI-2901	MERS Spikes

Common Internal eVLP

Structural Protein

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How trivalent eVLP vaccination may enrich for highly potent cross- reactive immunity

Y Y Y

Vaccination/	Y
virus exposure
	Y
Variant 1	Y

Y	Y
Y	Y
Y	Y
Y	Y
Y	Y
Y	Y

Repeat exposure to the

same viral variant gradually increases the 1) frequency,

1. specificity, and 3) affinity/potency over time.

Low affinity

Intermediate affinity

High affinity/potency

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How trivalent eVLP vaccination may enrich for highly potent cross- reactive immunity

Y Y Y

Vaccination/

virus exposure

Variant 1

Y Y Y

Y	Y
Y	Y
Y	Y
Y	Y
Y	Y
Y	Y

Repeat exposure to the

same viral variant gradually increases the 1) frequency,

1. specificity, and 3) affinity/potency over time.

		Y
Y	Y	Y
Y
Y	Y	Y
Y	Y	Y
		Y

Y Y Y Y Y Y

Exposure to one viral variant

followed by subsequent

exposure to another leads to greater breadth of immunity but with only moderate affinity/potency.

Low affinity

Intermediate affinity

High affinity/potency

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How trivalent eVLP vaccination may enrich for highly potent cross- reactive immunity

Y Y Y

Vaccination/

virus exposure

Variant 1

Y Y Y

Y	Y
Y	Y
Y	Y
Y	Y
Y	Y
Y	Y

Repeat exposure to the

same viral variant gradually increases the 1) frequency,

1. specificity, and 3) affinity/potency over time.

Y Y Y

Variant 1

Y Y Y

Y
Y
Y
Y
Y	Variant 2
Y

Y Y Y Y Y Y

Exposure to one viral variant

followed by subsequent

exposure to another leads to greater breadth of immunity but with only moderate affinity/potency.

Y Y Y

Variant 1

Variant 2

Y Y Y

Potential	Y
Y
Variant 3
Y
	Y
	Y
	Y

Y Y Y Y Y Y

Repeat exposure to multiple

viral variants gradually increases the frequency, breadth, and affinity/potency over time.

Low affinity

Intermediate affinity

High affinity/potency

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VBI-2901(Pan-Coronavirus) : Program Milestones

• March 2020: Announcement of collaboration with the National Research Council of Canada (NRC) to develop a pan-coronavirus vaccine candidate targeting COVID-19, severe acute respiratory syndrome (SARS), and Middle East respiratory syndrome (MERS)
• • Collaboration will combine VBI's viral vaccine expertise, eVLP technology platform, and coronavirus antigens with the NRC'suniquely-designedCOVID-19 antigens and assay development capabilities
  • IND-enablingpre-clinical studies will be conducted at both the NRC core facilities and at VBI's research facility in Ottawa, Canada
• Q4 2020: Clinical study materials expected to be available for human clinical studies

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Summary

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Sci-B-Vac®:Hepatitis B Prophylactic Vaccine

Summary

A N T I C I PAT E D C ATA LY S T S T H R O U G H 2 0 2 0 Y E A R - E N D : 1•

• Q2 2020 -Pre-BLA discussions expected with FDA
• Beginning Q4 2020-Submissions of applications for regulatory approvals in the U.S., Europe, and Canada expected to begin

2
•	VBI-1901:GBM Vaccine Immunotherapeutic (Immuno-Oncology)

• Mid-year2020 -Expanded immunologic and tumor response data as well as potentially-predictive biomarker data expected from VBI-1901 + GM-CSF Phase IIa (Part B) study arm
• Q4 2020-Initial immunologic data expected from VBI-1901 + AS01BPhase IIa (Part B) study arm

3•VBI-2601:Hepatitis B Immunotherapeutic

• H2 2020 -Initial human proof-of-concept Phase Ib/IIa data readout expected

4•VBI-2901:Pan-Coronavirus Prophylactic Vaccine

• Q4 2020 -Clinical study materials expected to be available

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VBI Vaccines Leadership

M A N A G E M E N T

Jeff Baxter

President & CEO

Dr. David Anderson, Ph.D.

Chief Scientific Officer

Dr. Francisco Diaz-Mitoma, M.D., Ph.D.

Chief Medical Officer

Chris McNulty

Chief Financial Officer

Nell Beattie

Chief Business Officer

Avi Mazaltov

Global Head of Manufacturing

SciVac General Manager

B O A R D O F D I R E C T O R S

Dr. Steve Gillis, Ph.D.

Chairman

Damian Braga

Joanne Cordeiro

Dr. Michel De Wilde, Ph.D.

Blaine H. McKee, Ph.D.

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VBI Vaccines Global Footprint

H E A D Q U A R T E R S - C A M B R I D G E , M A

• 7 FTEs (Incl. CEO, CSO, CFO, CBO)
• Central location in biotechnology hub

R E S E A R C H O P E R AT I O N S - O T TA W A , C A N A D A

• ~35 FTEs (Incl. CMO)
• R&D team and facility

M A N U F A C T U R I N G F A C I L I T Y - R E H O V O T, I S R A E L

• ~80 FTEs
• GMP manufacturing facility for the production ofSci-B-Vac®

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VBI Vaccines Inc.

222 Third Street, Suite 2241

Cambridge, MA 02142

1. 830-3031
   [e-mail]

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