Corporate Presentation October, 2015

Forward Looking Statements

Certain statements contained in this presentation constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") pursuant to the applicable Securities Laws. All statements, other than statements of historical fact, contained in this presentation are forward-looking statements, including, without limitation, statements regarding the future financial position, business strategy, proposed acquisitions, budgets, projected costs and plans and objectives of or involving Pediapharm. The use of any of the words "anticipate", "intend", "continue", "estimate", "expect", "may", "will", "plan", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Pediapharm believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forwarding-looking statements speak only as of the date of this presentation. Forward-looking statements are subject to risks, uncertainties and assumptions. Some of the risks which could affect future results and could cause results to differ materially from those expected in the forward-looking statements contained herein include, but are not limited to: the ability to access sufficient capital, the impact of general economic conditions, regulatory requirements, competition from other industry participants, and share price fluctuations. The information contained in this presentation identifies additional factors that could affect the operating results and performance of Pediapharm. We urge you to carefully consider those factors.

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Pediapharm is the FIRST and ONLY specialty pharmaceutical company in Canada fully dedicated to serve the pharmaceutical needs of the pediatric community. 

OUR MISSION: To become Canada’s leading pediatric specialty pharma company by seeking and delivering the highest quality, new and existing therapeutic medicines to improve the health and assure the wellbeing of Canadian children.

CHILDREN’S HEALTH IS OUR REASON FOR BEING

Investment Highlights

Proven Business Model: Specialty Pharma is a proven business model for growth and profitability.

Unique Approach: Pediapharm is the only Specialty Pharma company dedicated to Pediatrics in Canada.

Excellent Portfolio of Products: Strong revenue growth potential from the Corporation’s 6 current products with an additional 5 products awaiting Health Canada approval.

Strong Development Pipeline: Robust product pipeline of new opportunities to fuel further potential growth.

Sound Financial Profile: Strong cash position to execute on new product opportunities and growth.

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Revenue (12 months ended March 31, 2015) $3.1 Million (CDN$)Products Currently Marketed and Sold 6

Products Awaiting Health Canada Approval 5

Net Working Capital (June 30, 2015) $5.2 Million

Debt$5.5 Million (Convertible Debenture)

Projected Revenue within 5-6 Years(Based  on  products  currently  marketed/sold  and  awai5ng  Health  Canada  approval  )

$35-40 Million

Projected EBIDTA 35%

Financial Highlights

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Capital Structure

Common Share Listing PDP TSX/V

Shares outstanding 72.4M

Warrants & options 11.1M

Fully diluted 83.5M

OPTIONS: 150K at 0.34 (exp. July 2017) 367K at 0.30 (exp. Mar 2022) 3.5M at 0.46 (exp. Jan 2024) 1.5M at 0.34 (exp. July 2025)

WARRANTS: 1.5M at 0.30 (exp. Dec 2015) 343K at 0.44 (exp. Dec 2015) 167K at 0.36 (exp. Feb 2016) 359K at 0.33 (exp. Mar 2017) 3.3M at 0.33 (exp. Mar 2019)

Ownership Breakdown Approx. %

Directors & Management 23%

Institutional 1) Claret Asset Management 2) Senvest (TSX:SEC) 3) Knight Therapeutics Inc. (TSX:GUD) 4) Bloom Burton

45%

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* Conversion of the $5.5 million Debt would add 12.2M shares

The Pediatric Market Segment Opportunity

U.S. Pediatric Market(2)

$10.6 billion 2010 Prescription Pharmaceutical Sales

PEDIAPHARM: THE ONLY SPECIALTY PHARMACEUTICAL COMPANY

DEDICATED TO PEDIATRICS IN CANADA

Canadian Market Estimated to be $1 Billion(1)

Significant and underserved Pediatric Rx and OTC market in Canada

ONLY 30% of all pharmaceutical products have pediatric indication with proper formulation

Pediatric market not identified as strategic priority by most big pharma companies in Canada

(1); Estimated by the Corporation to be $1 billion. Using the ratio of approximately 10% of US sales(2); U.S. market data are not necessarily reflective of Canadian pediatric market

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Pediapharm Corporate Development Strategy

CORE STRATEGY •  Acquire Products that are already approved in Canada and with existing sales.

Ø  Immediate impact on both top and bottom-line

•  Obtain Exclusive Long Term Licensing/Distribution Agreements for Canada of Novel Drugs for Pediatrics.

Ø Average Annual Peak Sales per Product: $ 5-8 Million

Other Revenue Sources (short-term) •  Partner with a Canadian company for the promotion of their product in the pediatric space

Ø  Helps to maximize detailing capacity of Pediapharm’s commercial infrastructure Ø  Revenue based on net commission

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Corporate Infrastructure

VP Marketing and SalesRichard Labelle

Regulatory AffairsOptumInsight (Canreg)

Quebec Sales Manager Ontario Sales Manager

CFO Roland Boivin

Director, Medical AffairsDr. Elvira Villazón

VP Bus. Dev. & LicensingDr. Benoît Hébert

Director, Market Access

President & CEOSylvain Chrétien

Board of DirectorsPierre Lapalme

Director, Marketing

LOW COST MAJOR PHARMA STRUCTURE WITHOUT R&D COSTS

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Pediapharm Branded & Marketed Products

THE ONLY RX SUSPENSION NSAID IN CANADA

BEST TREATMENT TO KILL HEAD LICE AND ITS EGGS

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NYDA: Company Signature Product

Current unmet clinical needs: lack of efficacy in also killing the eggs and important resistance to treatment

Estimated annual peak sales: $6-8 M

N.B. Peak Sales is usually achieved within 5 years on average of a product launch. 11

$0  

$500,000  

$1,000,000  

$1,500,000  

$2,000,000  

$2,500,000  

$3,000,000  

$3,500,000  

2012   2013   2014   2015  (est)  

NYDA  Revenue  

Pediapharm Naproxen Suspension

Product USP: The only Rx NSAID in the form of suspension to treat Juvenile Arthithis and other medical pain conditions

Product acquisition from Hoffman-La Roche

Canada: * Product re-launched by Pediapharm in March 2015

Owned by Pediapharm (vs license)

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United States: * Currently in discussion with potential commercial partners

Pediapharm Branded & Marketed Products

INNOVATIVE  NON-­‐STEROID  TREATMENT  FOR    ECZEMA  

BIOGEL  PATCH  FOR  THE  SYMPTOMS  OF  FEVER   SOOTHING  VAPOR  PATCH    

PATENTED  SPACER  FOR  BETTER  ASTHMA  DRUG  

DELIVERY  

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Current Marketed ProductsPRODUCT PARTNER-COUNTRY INDICATION MARKET SIZE

(CDN $) EST. PEAK SALES (CDN $)

Nyda Pohl Boskamp - Germany

Head lice 22 M 8 M

Pediapharm Naxproxen Suspension-Canada

Pediapharm product Juvenile Arthritis/other pain conditions

76 M 4 M

Epiceram PuraCap - USA Eczema 16 M 500 K

TipsHaler ProtecSom - France Aerochamber-Asthma 6 M 500 K

VapoLyptus APR - Switzerland Soothing Vapor Patch N/A 300 K

Kool Effect APR - Switzerland Hydrogel Cooling Patch N/A 200 K

Commercial agreement

Valeant & L’Oreal - Canada

Elidel and Ombrelle (dermatology)

500 K

TOTAL 14 M

14 N.B. Peak Sales is usually achieved within 5 years on average of a product launch.

Pediapharm Products to be Launched

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PRODUCT PARTNER-COUNTRY

INDICATION MARKET SIZE (CDN $)

EST. PEAK SALES (CDN $)

LAUNCH DATE (Calendar)

Pediapharm Naproxen Suspension USA (#)

Acquired from Roche - USA

Juvenile Rheumatoid Arthritis & Other Medical Pain Conditions

Suspension / Liquid: 50-80 M (internal estimation)

Accumulative 5 M based on milestones payments and royalties

Q-1 2016

Easyhaler – Budesonide (*)

Orion - Finland Asthma 195M 15 M Q-1 2016

Cuvposa (*) Merz Pharma – USA

Severe Drooling – Cerebral Palsy

25M 5 M Q-4 2016

Cetraxal-Plus (*) Salvat Laboratories - Spain

Ear Infection, Swimmer’s Ear

25M 4 M Q-4 2016

Rupatadine (*) Uriach - Spain Antihistamine (RX Indication)

120M 6 M Q-4 2016

TOTAL 365M+ 35 M (#) US Product to be out licensed to a US commercial partner (*) Canadian License which requires Health Canada Approval

N.B. Peak Sales is usually achieved within 5 years on average of a product launch.

Upcoming Milestones

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EasyHaler approval (Health Canada)

Filing of 3 new products with Health Canada

Concluding an agreement with a US partner for Naproxen Suspension US

NYDA revenue to exceed $3.2M

Signing new agreements

Thank you ! Contacts: Sylvain Chrétien, President and CEO Sylvain.Chretien@pedia-pharm.com 514-239-7966 or Roland Boivin, CFO Roland.Boivin@pedia-pharm.com 514-796-2640 or Direct Financial Strategies and Communication Inc. 514-969-5530 www.pedia-pharm.com

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Board of Directors �

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Pierre Lapalme – Chairman Director of BioMarin Pharmaceutical Inc. (BMRN:NASDAQ) since 2004: a leading US biotechnology company with a Market Cap of greater than US$8 billion. Mr. Lapalme has held a number of senior management positions in the pharmaceutical industry including CEO and Chairman of the Board of Rhone-Poulenc Pharmaceuticals, Inc. Canada, and Senior Vice-President and General Manager of North America Ethicals, a Division of Rhone-Poulenc, Inc. (now known as Sanofi-Aventis) Sylvain Chretien – Founder, President and CEO: (See Bio under management team) Michael P. Mueller Mr. Mueller is currently the Chairman of PSP Investments and a director of several companies including, the Canadian Tire Bank, Magor Communications Corp. and Emily's House. From 2003 to 2005, he was the President and CEO of MDS Capital Corporation. Mr. Mueller previously held a series of senior executive positions at TD Bank, including Vice Chairman and Global Head of Investment and Corporate Banking. He is a former member of the Board of Directors of the Scarborough Hospital (past Chair), the Scarborough Hospital Foundation, AIM Therapeutics Inc., Biovest Corp. 1, Budco, TM BioScience, MDS Capital Corporation and Canadian Medical Discoveries Funds I and II. Mr. Mueller holds a Bachelor of Science from the University of Western Ontario and an MBA from York University. Normand Chartrand Representing 2 Regional Economic Intervention Funds (FIER); Mr. Chartrand has over 25 years of experience in management and finance with private and public companies. He has led numerous North-American and International financings. Mr. Chartrand is also a partner of Vector 7, a consulting and management firm to both private and public companies. Pierre Désormeau Mr. Désormeau, an angel investor, is currently the President and Chief Executive Officer of Gaïa Consulting Inc. and is also the President and Chief Executive Officer of Capital Pro-Égaux Inc., (CPE.H: TSX Venture). Douglas M. Stuve Mr. Stuve is a partner with the law firm Burstall Winger Zammit LLP of Calgary since 1993. Mr. Stuve has served as a member of an advisory committee to The Alberta Stock Exchange and was part of the advisory committee in Calgary, Alberta to the Canadian Venture Exchange Inc., now TSX Venture Exchange Inc., to assist in formulating policy prior to and after its formation in November 1999. Mr. Stuve has served as a Director and officer of several public companies and is currently the Chairman of the Board of Athabasca Minerals Inc., a Director of Border Petroleum Corp., Kairos Capital Corporation and Pivot Technology Solutions Inc, all public companies on the TSX Venture.

Experienced Management Team

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Sylvain Chrétien – President and CEO Mr. Chrétien is the founder of Pediapharm, as well as the President and CEO since January 2008. He has over 24 years of experience in both the pharmaceutical and the biotechnology sectors, where he occupied various executive positions in sales, marketing and business development. He worked with Nordic Laboratories, Pfizer Canada and Biorthex Inc. Before founding Pediapharm, Mr. Chrétien had his own consulting company called Gestion BioPrisma. Mr. Chrétien was a Director of Biophage Pharma and Warnex. He was President of the Pharmaceutical Marketing Club of Quebec (PMCQ) in 1998 and executive member of BioQuébec in 2000. Mr. Chrétien holds an MBA in Management of Bio Industries from the Université du Québec à Montréal and a B.Sc. in Sciences of Physical Activities from the University of Laval. Roland Boivin – CFO From 1990 to 2008, Mr. Boivin held several management positions at 3M Canada, including Business Manager ‑ Consumer Division. In that role, he had overall financial responsibility for the Canadian consumer market. His most recent role at 3M was General Manager ‑ Quebec and he became a member of the Company's Executive Committee. Mr. Boivin has since developed expertise in Finance, Accounting, Corporate Governance and Continuous Disclosure with small and medium size publicly listed companies. Until recently, Mr. Boivin was the Chief Financial Officer of Golden Hope Mines Limited, a public company listed on TSX Venture. Mr. Boivin obtained his Bachelor of Commerce from McGill University and his MBA from Queen's University. Benoît Hébert – Vice President, Business Development & Licensing Benoît Hébert has been the Vice‑President, Business Development and Licensing of Pediapharm since September 2009. Mr. Hébert has more than 15 years of industry experience and has a rare‑blend of scientific expertise and business skills. Focusing on pharmaceutical business transactions since 2000, he worked at Axcan Pharma Inc. from July 2003 to November 2006. Mr. Hébert has lead international licensing transactions, participated actively in product acquisitions, managed international product development alliances and global supplier relationship. Mr. Hébert holds an MBA in Management of Bio‑industries from the Université du Québec à Montréal. Mr. Hébert also received a M.Sc. in Immunology and a Ph.D. in Virology from the Institut Armand‑Frappier. Before returning to Canada in 2000, he was a NSERC postdoctoral fellow in structural biology at Purdue University. He is past‑president and a director of the Canadian Healthcare Licensing Association (CHLA).

Experienced Management Team

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Richard Labelle – Vice President, Sales & Marketing Richard Labelle has been the Vice‑President, Sales and Marketing of Pediapharm since February 2014. Mr. Labelle brings over 25 years of experience in Pharmaceutical and Consumer Health industries. As a Specialty Pharmaceutical Executive he led various teams in Sales, Marketing and in Business Development. Prior to joining Pediapharm he was Vice-President/General Manager of Sanofi Consumer Health and led during his mandate the creation of the Consumer affiliate in Canada. Over the years he also successfully launched Actonel, a flagship product for Osteoporosis, and re-accelerated growth of one of the largest Cardiovascular franchises. Mr. Labelle obtained his Bachelor of Commerce from the Université du Québec à Montréal and his MBA from McGill-HEC Montreal. Elvira Villazon M.D. – Medical Director Dr. Elvira Villazon has been Medical Director of Pediapharm since September 2009. Prior to joining the corporation full time, she was working as a consultant on a needed basis. Dr. Villazon brings 4 years of experience as a Director R &D at e-nate Canada; an integrated internet solutions in health care (private clinics management); and 11 years as a Health Services consultant for diplomatic members of ICAO based in Montreal. She is also a Certified Researcher Fetal Cardiology at St-Justine hospital, a leading hospital for children in Canada; where she worked as a clinical research associate for 6 years. Dr. Elvira Villazon is paediatrician graduated from Faculty of Medicine, Nueva Granada University, Bogota, Colombia.

16 Experienced Sales & Marketing Professionals Across Canada

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VP Sales and MarketingRichard Labelle

Quebec Sales Manager

Ontario + Western Canada Sales Manager

Manager, Business Intelligence

Manager, Training

Québec Sales Reps

Ontario / Western Canada Sales Reps

Director, Market Access Director, Marketing

Sales and Marketing Platform

85% Coverage of Targeted Canadian Market

1,800 Pediatricians

2,500 General Practitioners with Pediatric Practice

360 Pediatric Dermatologists and Dermatologists (300) Allergists (60)

2,500 Pharmacies

3,500 Pharmacies via third party brokers

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