Valeritas Investor Presentation

CONFIDENTIAL – AUTHORIZED USE ONLY

D E L I V E R I N G Q U A L I T Y O F L I F E

John Timberlake, President & CEO April 2016

Privileged information – DO NOT SHARE

2

Forward Looking Statements

This presentation shall not be deemed an offer to sell securities nor a solicitation of an offer to purchase securities. Any sale by the company shall be made pursuant to a definitive purchase agreement. Unless otherwise stated in this presentation, references to “Valeritas,” “we,” “us,” “our” or “our company” refer to Valeritas, Inc.

This presentation contains estimates, projections and forward-looking statements. Our estimates, projections and forward-looking statements are based on our management’s current assumptions and expectations of future events and trends, which affect or may affect our business, strategy, operations or financial performance. Although we believe that these estimates, projections and forward-looking statements are based upon reasonable assumptions and expectation, they are subject to numerous known and unknown risks and uncertainties and are made in light of information currently available to us. Many important factors may adversely and materially affect our results as indicated in forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and similar words are intended to identify estimates, projections and forward-looking statements. Estimates, projections and forward-looking statements speak only as of the date they were made, and, except to the extent required by law, we undertake no obligation to update or review any estimate, projection or forward-looking statement because of new information, future events or other factors. Our estimates, projections and forward-looking statements may be influenced by one or more of the following factors: ▫ our history of operating losses and uncertainty regarding our ability to achieve profitability; ▫ our reliance on V-Go Disposable Insulin Delivery Device, or V-Go, to generate all of our revenue; ▫ our inability to retain a high percentage of our patient customer base or our significant wholesale customers; ▫ the failure of V-Go to achieve and maintain market acceptance; ▫ our inability to operate in a highly competitive industry and to compete successfully against competitors with greater resources; ▫ competitive products and other technological breakthroughs that may render V-Go obsolete or less desirable; ▫ our inability to maintain or expand our sales and marketing infrastructure; ▫ any inaccuracies in our assumptions about the insulin-dependent diabetes market; ▫ manufacturing risks, including risks related to manufacturing in Southern China, damage to facilities or equipment and failure to

efficiently increase production to meet demand; ▫ our dependence on limited source suppliers and our inability to obtain components for our product; ▫ our failure to secure or retain adequate coverage or reimbursement for V-Go by third-party payers; ▫ our inability to enhance and broaden our product offering, including through the successful commercialization of the pre-fill V-Go; ▫ our inability to protect our intellectual property and proprietary technology; ▫ our failure to comply with the applicable governmental regulations to which our product and operations are subject; ▫ our ability to operate as a going concern; and ▫ our liquidity.


3

V-Go®: The Ideal Insulin Delivery Device For Patients with Type 2 Diabetes

▫ The only FDA-cleared single-use, fully disposable insulin delivery device with basal (background) and bolus (meal time) capability on the market in the US

▫ Clinically proven to effectively lower glucose levels

▫ Small, discreet, disposable and easy-to-use

▫ Convenient drug-like distribution model

▫ Established and attractive pharmacy reimbursement


4

John Timberlake President & Chief Executive Officer

25 / 9

Geoffrey Jenkins EVP Manufacturing, Operations, R&D

30 / 7

Matt Nguyen SVP Commercial

20 / 9

Mark Conley VP Corporate Controller & Treasurer

30 / 4

The Valeritas Leadership Team Extensive and Proven Track Record of Success in Diabetes

Years Experience Industry / Valeritas


5

Valeritas: Our Key Drivers For Success In Type 2 Diabetes

De-Risked and Demonstrated Commercial Traction

V-Go® was Specifically Designed to Address Unmet Needs in the Large Type 2 Diabetes Market

The Only FDA-Cleared Mechanical Basal–Bolus Insulin Delivery Device – Critical for Type 2 Patients in the US

Established Pharmacy Reimbursement and Distribution with Attractive Cost-Benefit Profile

Capital Efficient Strategy Positioned for Growth

1

2

3

4

5


6

De-risked and Demonstrated Commercial Traction Significant Barriers to Entry Provide Long-Term Competitive Advantage

2015 COMMERCIAL TRACTION Revenue: $18 MILLION

REGULATORY APPROVALS U.S. and E.U.

MANUFACTURING >9M commercial units produced *

~8M at our China CMO (using multiple lines)

CLINICAL Strong clinical evidence to support

V-Go efficacy and costs savings

REIMBURSEMENT >70% Commercial

> 60% Medicare Part D

INVESTED CAPITAL $375 MILLION

(~$45 MILLION FROM CFBE POST OFFERING)

* Cumulative production quantity as of December 31, 2015


7

Key Differentiator: Focus on Large Type 2 Diabetes Market The 4.6 Million Patients Valeritas Targets Represent a $15 Billion Market

Figures approximate. 2012 US Roper Diabetes Patient Market Study provided by GfK Customer Research LLC Chen Y et al, Poster presented at the 2012 ACCP Annual Meeting, October 21 – 24, 2012, Hollywood, Florida, USA

Type 1

Type 2

T O TA L D I A G N O S E D W I T H D I A B E T E S :

~22 million

5-10%

90-95%

5.8 million on insulin

80% not at A1C goal

(4.6 million)

A1c refers to a blood test that correlates with a person’s average blood glucose level over a span of three months.

$15 Billion Annual Opportunity(1)

(1) Based on V-Go® Wholesale Acquisition Price (WAC) of $283.93 per month x 12 months x 4.6 M Type 2 Patients on Insulin not at Goal. WAC price is the gross price sold to wholesalers. The Company’s net price is WAC less fees, discounts and rebates.


8

Better Glycemic Control Improves and Extends Lives Significant Adverse Health Effects Influenced by Poor Glycemic Control

Stratton IM et al. BMJ. 2000;321:405-412.

21%

Deaths from Diabetes

14%

Heart Attacks

37%

Microvascular Complications

43%

Peripheral Vascular Disease

Each 1% reduction in mean A1C reduces risk for


9

0%

5%

10%

15%

20%

25%

30%

35%

<7% >7% or <8% >8% or <9% >9%

20.4%

26.5%

20.4%

32.7%

Pe

rce

nt

of

Pat

ien

ts

On

Insu

lin

A1C Range

Large Scale Study Validates 80% of Patients on Insulin* are Not at A1C Goal and are Ideal V-Go® Candidates

ClinicoEconomics and Outcomes Research 2013:5 471–479

2011 Database analysis of 27,897 adult patients with diabetes on insulin

20% at Goal

* Insulin: Basal, Basal plus one, Premixed or MDI. Results data from the Health Core Integrated Research Database.

80% of Patients Currently on Insulin Therapy are V-Go Candidates


10

Type 2 Diabetics Require Basal and Mealtime Insulin Delivery to Maintain Glycemic Control

(1) Adapted from: Riddle. Diabetes Care. 1990;13:676-686

(2) Holman RR et al. N Engl J Med. 2007; 357 Holman RR et al. N Engl J Med. 2009;361(18):1736-1747

82% of Type 2’s Required Mealtime Insulin to Achieve and Maintain A1C Goal(2)

Pla

sma

Glu

cose

(m

g/d

L)(1

) 200

100

0

6AM 12PM 6PM 12AM

Type 2 Diabetes

6AM

150

250

50

Mealtime / Prandial hyperglycemia

Normal Basal glucose levels

Elevated Basal glucose levels

Time of Day


11

Complexity and of Lack of Discretion can Result in Non-Compliance ~75% Patients Prescribed ≥ 3 Shots/Day Do Not Inject Insulin Away From Home

Simplicity Ease-of-use Discretion

V - G o ® S O LV E S U N M E T PAT I E N T N E E D S :

Data from 2011 US Roper Diabetes Patient Market Study provided by GSK Customer Research LLC (Patient’s prescribed 3 or more injections per day)


12

V-Go® Addresses Key Unmet Needs for Type 2 Market

Complex

Physiologic

Nonphysiologic

Programmable Pump

Intensive Therapy

Basal

Simple

Basal +1 or Premix

V-Go is Simple and Physiologic which makes it Ideal for Type 2 Patients


13

* Preset Basal Delivery of Insulin at a Constant Rate

* Bolus Insulin Delivery for Mealtime with 2 units/click V-Go®:

V-Go Device Overview

• Simple filling does not require calculations, measuring or needles

• Prevents accidental needle sticks

EZ FILL

Bolus Chamber

Insulin

Fluid

Fluid

Basal Chamber

Piston

Needle

24 hour Basal rate begins with the push of a button

4.6 mm, 30 gauge

“Floating needle”

On-demand bolus function is

manually activated in 2-step process

Basal rate flow restrictor

Basal rate is spring-driven


Robust IP with 45 patents issued and 53 pending

14

Statistically Significant Improvements in A1C(1-6)

Can Improve Quality of Life(1)

Lowers Total Daily Insulin Dose (Prescribed / Administered)(1-6)

Demonstrated Cost Reductions(4)

(1) Rosenfeld CR, et al. Endocr Pract. 2012; 18 (5):660-667; (2) Grunberger, G, et al. Poster presented at 73rd Scientific Sessions of the ADA; 2013 June 21-25; Chicago, IL. 985-P; (3) Omer, A. et al. Poster presented at 73rd Scientific Sessions of the ADA; 2013 June 21-25; Chicago, IL. 980-P; (4) Lajara, et al. Poster presented at 2015 AMCP 27th Annual Meeting and Expo, April 2015, San Diego, CA; (5) Lajara, et al. Poster presented at 2015 AACE Annual Scientific & Clinical Congress, May 13-17, 2015, Nashville, TN; and (6) Lajara R, et al. Diabetes Therapy. 2015

Clinical Practice and Clinical Data with V-Go® Support Broad Adoption

1

2

3

4

• Proven improvements in fasting plasma glucose(1,6)

• Discrete and ease to use device enhances compliance and health

• No clinically relevant change in weight (1,2,5)

• Hypoglycemia (low blood sugar) rates similar to baseline(1,4-6)


15

Robust Clinical Data Validates V-Go®’s Ability to Deliver Clinically Relevant Reductions in A1C Levels

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

-1.0

-1.9

-2.4

-1.2

-1.9

-1.2

-2.3

-3.4

-1.5

Ch

ange

in A

1C

SIMPLE(1) Basal Cohort

Baseline 8.7% 9 Months

UMASS(2)

All Cohorts Baseline 10.7%

3 Months

UPP(3)


3 Months

EAP(4)


3 Months

DA(5)

MDI Cohort Baseline 9.4%

~6 Months

DA(7)

T1/LADA Cohort Baseline 9.5%

~7 Months

DA(7)

Insulin Naive Baseline 11.3%

~7 Months

DA(5)

Basal Cohort Baseline 9.6%

~6 Months

DA(6)

Vs. MDI Baseline 9.5%

~7 Months

(1) Grunberger G, et al. Poster presented at: American Association of Clinical Endocrinologists 23rd Annual Scientific and Clinical Congress. May 14-18, 2014; Las Vegas, NV. (2) Omer, A. et al. Poster presented at 73rd Scientific Sessions of the ADA; 2013 June 21-25; Chicago, IL. 980-P. (3) Rosenfeld CR, et al. Endocr Pract. 2012; 18 (5):660-667. (4) Sandberg, M, Martinez, J. Practical Diabetology. 2013;32(3): 6–22. (5) Lajara, et al. Poster presented at 2015 AACE Annual Scientific & Clinical Congress, May 13-17, 2015, Nashville, TN. (6) Lajara R, Davidson JA, Nikkel CC, Morris TL. Endocr Pract. 2016 Feb 1. [Epub ahead of print] (7) Lajara R, et al. Diabetes Therapy. 2015.

N’s =SIMPLE- 59, Endocrine Practice- 56, UMASS- 14, UPP- 23, EAP- 16, DA MDI- 56, DA Basal- 32 DA Insulin Naïve- 24, DA Type 1/LADA- 29. All patients for DA- 204.

Clinically Relevant


16

Switching to V-Go® Demonstrated Significant Reductions in Total Daily Insulin Dose (TDD) Across Multiple Studies

-45

-35

-25

-15

-5

-18%

-43%(8)

-13%

-22% -20%

-41%

-28% % C

han

ge in

Insu

lin

(1) Grunberger, G, et al. Poster presented at 73rd Scientific Sessions of the ADA; 2013 June 21-25; Chicago, IL. 985-P (all patients – 3 months).

(2) Omer, A. et al. Poster presented at 73rd Scientific Sessions of the ADA; 2013 June 21-25; Chicago, IL. 980-P (percent reduction based on units/kg).

(3) Data on file.

(4) Data on file.

(5) Sink JH et al. Poster presented at Diabetes Technology Meeting. November 6-8, 2014; Bethesda, MD.

(6) Lajara R, et al. Diabetes Therapy. 2015.

(7) Lajara R, Davidson JA, Nikkel CC, Morris TL. Endocr Pract. 2016 Feb 1. [Epub ahead of print] Difference in mean Insulin TDD at end of study MDI 78 U/day vs V-Go 56 U/day.

(8) Figure based on units per kilogram per day.

*Change in basal component of TDD only value available

Diabetes America(6)

99 U TDD Baseline

UPP(3)

56 U TDD

EAP(4)

Basal Dose*

UMASS(2)

119 U TDD

SIMPLE(1) 62 U TDD

Jones Center(5)

76 U TDD

Diabetes America(7)

78 U TDD


17

6.0

7.0

8.0

9.0

10.0

11.0

Pre V-Go On V-Go

10.7

8.3*

A1

C (

%)

N=14 Average Duration = 88 days

0

20

40

60

80

100

120

140

Pre V-Go On V-Go

119

64†

Insu

lin T

DD

(u

nit

s)

† P=0.01, *P=0.001

Change

-2.4

Change -55 U

V-Go® Significantly Reduces A1C with Less Insulin Key Benefit to Both Patients and Payors

(1) Based on Insulin TDD absolute units. Omer, A. et al. Poster presented at 73rd Scientific Sessions of the ADA; 2013 June 21-25; Chicago, IL. 980-P. UMASS Study .

Change -2.4

- 55U

Change = 46%(1)

- 2.4


18

7.7* 7.6*

8.4*

8.1*

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

Baseline 12 week 27 week

A1

C (

%)

V-Go: N=56 BL A1C- 9.5% BL TDD - 51 U/day, Starting V-Go TDD- 52 U/day, 12 week TDD- 56 U/day, 27 week TDD- 56 U/day

MDI: N=60 BL A1C- 9.4%, BL TDD- 46 U/day, Starting MDI TDD- 64 U/day, 12 week TDD- 75 U/day, 27 week TDD- 78 U/day

Data are mean (SE)

P=0.02

30

40

50

60

70

80

90

51 units 46 units

56

78*

TDD

(U

/day

) at

27

we

eks

Baseline

P<0.0001

V-Go® Demonstrates Significant Improvements In Glycemic Control vs Multiple Daily Injections (MDI)

Lajara R, Davidson JA, Nikkel CC, Morris TL. Endocr Pract. 2016 Feb 1.

Better Control with Less Insulin vs MDI

MDI

V-Go

MDI V-Go


19

$0

$50

$100

$150

$200

$250$217.16

$118.84

Insulin costs include both the insulin and associated delivery method. The costs of insulin were normalized by calculating a 30 day insulin requirement based on the total

prescribed daily insulin dose for each insulin and multiplying the monthly dose in units by the unit cost. Only branded antihyperglycemic agents were included in total

therapy costs. All pricing based on published wholesale acquisition costs in 2015 U.S. dollars as of 9/1/2015.

†P-value calculated using the cost inferential per 1% reduction using least squares mean A1C reductions at 27 weeks.

V-Go® is a More Cost-Effective Therapy vs. MDI

Lajara R, Davidson JA, Nikkel CC, Morris TL. Endocr Pract. 2016 Feb 1. [Epub ahead of print]

V-Go Reduced Direct Pharmacy Costs by 45% per 1% Reduction in A1C

† P=0.013

MDI V-Go

Dir

ect

Ph

arm

acy

Co

st P

er M

on

th

Per

1%

red

uct

ion

in A

1C


20

62

143

54† 67*

Insu

lin T

DD

(U

/day

)

V-Go Baseline

V-Go Baseline

V-Go @6 mos.

V-Go @6 mos.

< 100 U/day at Baseline

≥ 100 U/day at Baseline

V-Go® Appropriate For The Vast Majority of Type 2 Patients Regardless of Prior Prescribed Insulin Dose, V-Go Improved A1C Control

N= 66 patients < 100 U/day at baseline and 38 patients > 100 U/day at baseline

†P<0.05 compared to baseline at 6 months, *P <0.0001 compared to baseline at 6 months

After 6 Months of Using V-Go for Insulin Delivery

Lajara R, Nikkel C. J Diabetes Sci Technol March 2016 10: 476-611, data on file.

Patients on < 100 U

TDD at Baseline

-1.5* -1.7*

Ch

ange

in A

1C

< 100 U/day at Baseline

≥ 100 U/day at Baseline

Baseline 9.3% Baseline 9.5%


21

Mean

To

tal D

ail

y D

ose o

f In

su

lin

(U/d

ay)

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

-3.0*

-3.4*

LSM

Ch

ange

in A

1C

20

40

60

80

100

120

54**

Insulin Naïve Patients Represent a Significant Market Opportunity for V-Go®

Insulin TDD Utilization Significant A1C

Reduction on V-Go

On V-Go at 27 Weeks 14 Weeks 27 Weeks

Potential for V-Go to be First-Line Insulin Therapy

*p<0.001 compared to baseline based on Least Squares Mean (LSM) change in A1C ** p<0.0001 N= 24, Baseline A1C = 11.3%. Time points represent the mean time elapsed between V-Go initiation and follow-up A1C results for the total population. Lajara R, et al. Diabetes Therapy. 2015.


22

Significant New Data Flow Expected in 2016

American Academy of Clinical Endocrinology (May)

American Geriatric Society (May)

Academy of Managed Care Pharmacy (May)

American Diabetes Association Meeting (June)

American Association of Diabetes Educators (Aug)

Additional Manuscripts Published in 2H 2016

5

Posters

2

Posters

5

Posters

1

Poster

2+

1

Oral


23

28% 27%

10%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Surv

ey R

esp

on

de

nts

Convenience(1)

Very Convenient

SomewhatConvenient

Note: Patients were surveyed prior to starting V-Go and again ~30 days after being on V-Go.

Patients Rate the Convenience of V-Go® as Superior vs. Previous Therapies

Prior

Therapy V-Go

Therapy

(1) Data on File (Valeritas Customer Care).


24

29%

44%

6%

20%

0%

10%

20%

30%

40%

50%

60%

70%

PriorTherapy

V-GoTherapy

Surv

ey

Re

spo

nd

en

ts

Quality of Life(1)

Excellent

GenerallyGood

How do you feel physically & mentally on a typical day?

Note: Patients were surveyed prior to starting V-Go and again ~30 days after being on V-Go.

Patients Rate Their Quality of Life on V-Go® as Superior vs. Previous Therapies

(1) Data on File (Valeritas Customer Care).


25

V-Go® vs. Traditional Type 1 Pumps & Controllers V-Go has Numerous Advantages for the Type 2 Patient

Simplicity, Cost, Convenience, and QoL Favor V-Go in Type 2 Diabetes

Type 1 Pump & Controller

Reimbursement / Distribution Pharmacy Benefit Medical Benefit via DME

Technology Mechanical / Simple Electronic / Complex / Programmable

Pricing Daily Disposable /

Pay-as-You-Go monthly Durable (2 – 4 year reimbursement

cycle) plus monthly disposables

Training Burden Low (similar to insulin pens) High / Programmability

Competition Insulin Pens

Syringes

Electronic Pump Companies

Valeritas Type 2

• Medtronic & Minimed • J&J Animas • Roche

• Insulet • Tandem


26

V-Go® is Accessible and More Convenient Through Pharmacies Type 2 Patients Fill Their Insulin and Other Medications at the Pharmacy

• Enhanced patient convenience • Traditional co-pay at pharmacy

~90% Distribution Through Wholesalers

Sold at Pharmacy / Retail Outlets

V-Go for Type 2 Diabetes

V-Go

Durable Medical Equipment

Type 1 Durable Pump

Type 1 Pump Maker

• Requires Medical Necessity • Annual Medical Deductibles • Monthly Medical Co-

insurance


27

Pharmacy Benefit Reimbursement Model Cost-effective for both Payors & Patients

V-Go® Therapy

Basal/Bolus Pen Therapy

Neutral Cost to Payors (~$20/day) between Regimens*

*What a Payor Pays (Net of Rebates & Co-pays when V-Go Contracted in Preferred Position)

$31 co-pay

$31 co-pay

$11 co-pay

$31 co-pay

$31 or $53 co-pay1

$73 co-pay

$62 or $84 co-pay(1)

(1) Avg. Nat’l Tier 2 or Tier 3 Co-pay for commercial plans is $31 and $53, respectively, The Kaiser Family Foundation and Health Research & Education Trust Employer Health Benefits 2014 Annual Survey.

Neutral Cost to Patients (+/- $11)


28

Established Reimbursement with Pharmacy Benefit

164 MM Pharmacy Lives* Diabetes Prevalence >20 Yrs. old: 12.3%

34 MM Total Lives* Diabetes Prevalence >65 Yrs. old: 18.9%

• Over 90% of V-Go Prescriptions Filled at Retail Pharmacies Since Launch • TRICARE & State Medicaid Cover V-Go Under Pharmacy and/or Medical Benefit

All Access figures as of December 2014. Prevalence data : ADA 2013 Fact Sheet and the CDC Diabetes Report Card 2012. * Commercial Pharmacy Lives: Health Leaders InterStudy 2013: Decision Resources, Medicare Part D Lives: Pathfinder Rx Database 2/1/15.

60%+ Medicare Part D Access 70%+ Commercial Access

< 30% of Lives

Not Covered or Restricted

Access

70%+ of lives

V-Go Covered Under

Insurance

< 40% of Lives Not on

Formulary – Access through

Medical Exception

60%+ of Lives

V-Go Covered Under

Pharmacy Insurance


29

Scalable Business Model

Multi-Layered Growth Strategy


30

Significant Growth Opportunity With Disciplined Sales Force Expansion

Total Coverage of Inside Sales

(~2,800 Targets)

Significant Potential for Future V-Go®

Growth

Figures approximate. 14,000 High Insulin Prescribing MDs Comprising the Top 4 U.S. Deciles generate 40% of All U.S. Annual Insulin TRx’s.

Valeritas is Focused on Generating Share Within our Current Targets

14,000 high prescribers

Current Sales Representative Targeted Prescriber Coverage

1,400 10%

Significant Potential for Future V-Go

Growth


31

0.0

100.0

200.0

Jan-14 Jul-14 Dec-14 Jul-15 Dec-15

Revamped Sales & Marketing Strategy: A More Effective, Higher Focused & Less Capital Intensive Model

TRx

/ M

on

th /

Re

p

• Resources diluted across all territories

• Greater capital requirements

Top performing territories

Low performing territories

Cust. Care

DTP Pilots

Promo Services

Old Sales Model New Sales & Marketing Model

0.0

125.0

250.0

Jan-15 Jul-15 Dec-15 Jun-16 Dec-16

• Greater & strengthened support resources focused on prioritized higher volume territories

• Less capital intensive model

Cust. Care

Promo Services

3rd Party Peer to Peer

sales

DTP

TRx

/ M

on

th /

Re

p

Inside Sales

Top performing territories

Low performing territories

Vacated territories


32

Flex circuit

Battery

Antenna

ASIC V-Go cover

V-Go LinkTM(2) V-Go® V-Go Pre-fill(2)

• Prefilled Insulin cartridges to eliminate filling step

• No EZ Fill refrigeration

• Lower number of co-pays(1)

• Enables participation in insulin market

• Expands target population

• Extends patent life

(1) Assumes V-Go’s and insulin cartridges packaged in a single box under a single NDC thereby potentially reducing the number of prescriptions and the number of co-pays required per patient. (2) Product currently under development.

• Provides connectivity to devices

• smart phones / glucose meters

• Provides for one-way communication from V-Go

• Increases patient adherence

• Could be used as diagnostic tool to make treatment adjustments

• Current product

• Filled by patient using V-Go EZ-FillTM

• Commercially available in U.S.

• Approved in E.U.

Next-Generation V-Go® Products Provide Path to the Broader Diabetes & Insulin Market


33

Extensive Patient Experience With Proven Quality V-Go® product quality validated with ~ 7 million devices used over the past 3 years

Source: Symphony Health Solutions (Retail and Mail Order).

V-Go adherence & persistency better than most Type 2 regimens (injections or pills)

6 Million

3 Million

2 Million

1 Million

5 Million

4 Million


34

$0.6

$6.2

$13.5

$18.1

2012 2013 2014 2015

Valeritas: Financial Profile Poised for Growth and Profitability Ahead of Industry Peers

Gross Margins

Revenue ($ in millions)

• COGS highly dependent on Volume

• 50% Gross Margins can be achieved with $60M annual run rate

• 80% Gross Margins achievable with Global Commercialization

• Insulet required $58M annual run rate to achieve 20% GM (Q2’09)

2013

Negative

2015

+21%

Annual Revenue (March 2012 – December 2015)

34%

118%

NM


35

Significantly De-Risked, Commercially Marketed Product with Substantial Growth Opportunities

Regulatory • 510(k) – US • CE Marking Certification –

Europe

Clinical Evidence • Strong Efficacy data • Costs effective data

Reimbursement • >70% commercial access • >60% Medicare D access • TRICARE

Prescriber & Patient Acceptance

• Strong TRx uptake per rep

Manufacturing • >9M units produced to date • ~8M Units from China CMO

Advancing Type 2 Basal / Bolus Insulin Delivery

Growth Opportunities / Catalysts

▫ U.S.

– Focus on most productive sales territories

• 2017 Expansion of sales force based on new focused model and managed care “wins”

– Focused promotion in prioritized markets

– Targeted direct-to-patient marketing

– Continued reimbursement opportunities

▫ International Market Licensing

▫ Next Generation V-Go® Pre-fill

▫ Platform Expansion

– Other therapeutics (e.g. Pain Therapy)


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