Sirona Biochem Corporation - CEO Letter to Shareholders - Seite 2

Through our platform technology, we have been able to diversify our risk across multiple projects, increase our portfolio size more quickly and continue to build our credibility and reputation as experts in the discovery of innovative therapeutics.

The Board of Directors is taking an increasingly active role in refining the company strategy and how it is implemented. Our Board has a diverse and valuable skill set which we are utilizing to the fullest extent.

Operations:

In March, we bolstered our France team with the addition of Claude Nivet. Claude's official title is Laboratory Manager. This role was developed specifically to assist in growing operations and relieving our Chief Scientific Officer, Geraldine Deliencourt-Godefroy, of some of her non-scientific tasks. This will allow her to focus on innovation and management of the current pipeline.

Our current R&D focus is on the following:

• Assist Obagi/Valeant in the manufacturing and monetization of our skin lightener. Obagi/Valeant will be responsible for the formulation and sales of the compound;
• Develop the anti-aging library of compounds in anticipation of government funding and commencement of pre-clinical studies; 
• Synthesize the anti-inflammatory compound for our Bloom Burton partnership.

As projects progress and resources become available, we will explore new areas where our technology will add significant value.

Current Business Development:

• At the end of April 2014, Wanbang Biopharmaceuticals began pre-clinical validation for Sirona Biochem's second generation SGLT2 Inhibitor. To date, Sirona has received Wanbang's initial licensing fee and the Chinese government's innovation tax application has been approved. Wanbang has successfully hired an expert in pharmacology and toxicity to lead the project and compound synthesis has begun to ensure quantities of the compound will be available for all future clinical trials. Further updates from Wanbang will become available shortly.
• Obagi Medical Products is moving forward on Sirona Biochem's skin lightening compound TFC-849. Obagi Medical Products is responsible for all development, manufacturing and sales of the compound and in return Sirona Biochem will receive licensing and milestone fees and ongoing royalty payments.
• Our Joint Venture with Bloom Burton and Co. is progressing nicely. Once the first compound is synthesized, it will enter early stage testing. Bloom Burton is Canada's largest and most active healthcare-specialized investment banking firm. The goal of this joint venture is to conduct collaborative research to develop and commercialize new therapeutics in the areas of inflammation and infectious disease.
• Sirona's Chief Scientific Officer recently attended industry meetings in New York City. The meetings were very successful and have generated multiple potential partnerships. We will provide updates regarding these opportunities on the next shareholder letter. Although we have a number of significant partnering initiatives fully executed and underway, we are continuing to explore new partnership opportunities and currently have multiple ongoing conversations with large Pharma and cosmetic companies around the world.

Our goal has always been for Sirona Biochem to become the global leader in the process of compound stabilization which leads to unlimited applications in pharmaceuticals and cosmetics. The value of Sirona Biochem lies in its technology and we intend to put our resources behind this. At the end of the day, our common goal is to create shareholder value which is exactly what we work to accomplish every single day. Sirona is well positioned to take advantage of some of the major opportunities that are available to us and we are working diligently to take our company to the next level.