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COMPANY NOTE | EQUITY RESEARCH | March 8, 2018

Healthcare: Biotechnology

Neurotrope Inc. | NTRP - $8.58 - NASDAQ | Buy

Initiation of Coverage

Stock Data NTRP: Initiating Coverage with Buy Rating

52-Week Low - High $3.40 - $29.00 Neurotrope is developing Bryostatin-1, a drug to stimulate an early regulator of
Shares Out. (mil) 7.91 neuronal processes including nerve cell growth and maintenance. Bryostatin
Mkt. Cap.(mil) $67.9 acts on a protein known as PKC-E, a regulatory protein that affects pathways
3-Mo. Avg. Vol. 39,709 that normally lead to formation of new memories and cell survival.
12-Mo.Price Target $15.00
Cash (mil) $18.6 Neurotrope reported data in April 2017 from its Phase 2 study testing
Tot. Debt (mil) NA Bryostatin-1 in Alzheimer's disease patients with moderate to severe
EPS $ Alzheimer's disease. While most therapies are intended to slow the
progression of Alzheimer's disease, Bryostatin-1 data shows an improvement
Yr Dec —2017— —2018E— —2019E— in memory loss caused by the disease. We know of no other drug that has
Curr Curr
had this effect.
1Q (0.43)A (0.31)E -
2Q (0.38)A (0.39)E -
3Q (0.29)A (0.50)E - Additional data from the Phase 2 study supported its mechanism of action
4Q (0.33)A (0.46)E - and gave information for further development and clinical use. While the
YEAR (1.42)A (1.68)E (1.88)E trial provided proof-of-concept and justifies moving forward, the next trial is
P/E NM NM NM expected to have a larger number of patients and longer treatment period.
Quarterly numbers may not add to full year due to changes in shares This should provide data to show a convincing treatment effect. The new study
outstanding. would then be used to design a pivotal trial for FDA approval. We expect the
Revenue ($ millions) this Phase 2 trial to begin in mid to late 2018.

Yr Dec —2017— —2018E— —2019E—

Curr Curr
In December 2017, Neurotrope hired Charles Ryan, JD, PhD to be its
1Q 0.0A 0.0E - new CEO. Dr. Ryan was a SVP and Board Member at Forest Labs, and
2Q 0.0A 0.0E - has extensive experience in the development and launch of Namenda
3Q 0.0A 0.0E - (memantine), an approved drug for Alzheimer's disease.
4Q 0.0A 0.0E -
YEAR 0.0A 0.0E 0.0E
An additional indication in Fragile-X syndrome, a genetic disorder in which
the brain does not develop normally, is expected to move into clinical trials
NTRP One-Year Price and Volume History
4.0 35.00 in 2018. Bryostatin-1 has also been tested other indications for Bryostatin-1
3.5 30.00 where memory is lost including ischemic stroke and traumatic brain injury.
3.0 25.00
2.5
20.00
2.0 Our valuation is based on conducting a Phase 2, a confirmatory Phase 3, and
1.5 15.00
1.0 10.00 then approval of Bryostatin-1 in late 2023, with first revenues in FY2024. We
0.5 5.00 discount the revenues at 75% to adjust for risk, then discount FY2024 EPS of
0.0 0.00
$6.46 at 30% per year. Our price target is $15 per share.
May-17

Aug-17

Sep-17

Nov-17

Dec-17

Feb-18
Mar-18
Jun-17

Jan-18
Apr-17

Oct-17
Jul-17

Vol (m) Price

Important Disclosures & Regulation AC Certification(s) are located on page 17 to 18 of this report.
Roth Capital Partners, LLC | 888 San Clemente Drive | Newport Beach CA 92660 | 949 720 5700 | Member FINRA/SIPC
NEUROTROPE INC. Company Note - March 8, 2018

Investment Summary

Bryostatin-1 May Control Several Important Factors Leading to Alzheimer’s Disease

Neurotrope is developing Bryostatin-1 for the treatment of Alzheimer’s disease and neurological disorders
involving loss of memory. The drug stimulates a regulatory protein that acts as an early coordinator of
several pathways involved in memory, synaptic formation, and neuronal survival. Its actions include
regulation of expression for genes that lead to development the Aβ plaques. While most drugs for
Alzheimer’s are intended to slow disease progression, Bryostatin-1 has the potential to restore lost memory
and prevent disease progression.

In 2017, the company announced results from its first clinical study testing Bryostatin-1 in Alzheimer’s
disease. The study was designed to demonstrate safety and tolerability, with an efficacy endpoint showing
an improvement in memory over the 13-week course of the study. Additional analysis of the data
characterized the pharmacokinetics and pharmacodynamics, as well as providing important new data on its
action in human subjects.

In our view, the Phase 2 study showed proof-of-concept with promising findings. Bryostatin was able to
show a sustained improvement in patients’ memory over baseline. This contrasts with most studies that
have aimed to slow the decline in cognition. The data from the Phase 2 also characterized the
pharmacokinetics and gave the first data on how the drug acts in patients with the disease.

The study has been criticized because it was not designed have the patient numbers or statistical analysis
needed for designing a pivotal trial. Its treatment period of 13 weeks was not long enough to compare with
other studies and did not show a long-term effect. The statistical analysis was appropriate for a proof or
concept study, but was not comparable with other Phase 2 studies or FDA-approved drugs. Despite
showing an improvement in memory in advanced disease, the findings were seen as a disappointment.

The company recently hired a new CEO with extensive top-level pharmaceutical experience that includes
the development and launch of Namemda (memantine), an approved drug for Alzheimer’s. We are
optimistic that the newly-appointed CEO can transform Neurotrope from a research organization into a
clinical development and commercialization company.

The company is at a stage where we believe it has data showing activity of the drug in a multiple dosing
study and now needs to conduct clinical studies under conditions that would be required for FDA approval.
We expect the announcement of a second Phase 2 with a larger number of patients and a longer duration
of treatment and greater statistical power, in our view. This would extend the treatment data and fully
characterize the drug for Phase 3. We expect the study to begin in mid to late 2018.

Additional pre-clinical testing has shown that the stimulation of neuronal sprouting with Bryostatin-1 may
have therapeutic benefit in conditions with brain cell damage or destruction, such as ischemic stroke or
traumatic brain injury. It also has potential for use as a therapeutic in genetic diseases where mutations
result in growth factor deficiencies affecting brain development.

Valuation Alzheimer’s disease is an unmet medical need with population estimated at 5.5 million in the
U.S. and 40 million worldwide, according the the Alzheimer’s Association. Since memory loss increases
from early onset through the end stages, the entire population could be eligible for therapy if Bryostatin-1 is
successful. The disease has both direct costs of care and indirect costs on the patient’s family, so that a
successful therapy could be valuable to the patients, their families, and the third party payors.

Our valuation for NTRP is based a Phase 2 trial beginning in 2H18 with data reported in late 2019 to early
2020. This would be followed by a Phase 2/3 trial with data in late 2022, with approval in late 2023 and first
revenues in FY2024. We reduce our projected revenues by 75% to adjust for the risk of the timeframe and
the indication, then discount the earnings by 30% per year. Applying a multiple of 15X gives a price target
of $15 per share.

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NEUROTROPE INC. Company Note - March 8, 2018

Company Background

Neurotrope is developing drugs to treat degenerative neurological diseases. Bryostatin-1 stimulates

expression of PKCε (protein kinase C-epsilon), a regulatory enzyme that coordinates multiple pathways
related to nerve cell growth and development. Its downstream actions include regulating genes associated
with the enzymes that improperly process proteins, leading to the amyloid beta formation and neurofibrillary
tangles in Alzheimer’s disease. We believe this mechanism of action could affect several important
pathways that restore memory and prevent development the Alzheimer’s lesions.

Recent Clinical Trial Results Neurotrope announced the results of its Phase 2 clinical trial with Bryostatin
in April 2017. This was the first multiple-dosing study in patients that was designed to establish safety and
detect signals of efficacy. The efficacy was measured by the Severe Impairment Battery (SIB), a clinical
tool for evaluating cognitive functions. Top-line results in the low dose group show that the patients had an
improvement in their cognitive status compared to a decline in the placebo patients.

In order to improve the statistical strength of the small patient enrollment, the statistical analysis used a test
that assumed the evaluation scores would change in only one direction. While this may have been
appropriate for proof-of-principle, FDA approval requires statistical analysis that allows patient scores to
increase or decrease. We expect the next Phase 2 trial to be conducted and analyzed using a method that
would be required for a New Drug Application (NDA).

The trial enrolled 148 moderate to severe Alzheimer's disease patients across 26 sites in the U.S. This is
an advanced stage of disease that was chosen so that any improvements could be attributable to the drug.
Patients entering the trial were qualified using the mini-mental status exam (MMSE). Patients with MMSE
scores ranging between 4 and 15 were entered into the trial. Patients on donepezil or memantine (other
Alzheimer’s drugs) were allowed to continue their medications.

The efficacy endpoint was cognitive function as assessed by the Severe Impairment Battery (SIB), a
measurement tool used for evaluating several cognitive functions in AD. It assesses performance in nine
symptom domains: attention, language, orientation, memory, praxis (performing skilled tasks), visuospatial
perception, construction, social skills, and orientating head-to-name. Secondary efficacy endpoints include
Activities of Daily Living (ADL) score, Neuropsychiatric Inventory (NPI) and Mini-Mental State Exam
(MMSE).

The patients were randomized into three groups then treated with a low (20µg), high dose (40µg), or
placebo every other week. Doses were administered by a 45-minute IV infusion once a week for the first
two weeks, followed by every other week for a total of seven doses over 12 weeks. Efficacy assessment
was pre-specified at weeks five, nine, 11, and 13. An additional assessment was added at week 15.

Out of the 147 patients entered into the trial, 135 patients were included in the modified Intent to Treat
(mITT) analysis and 113 patients were included in the completer analysis (CAS). The trial results showed
an improvement in SIB scores for the 20 µg dose after 13 weeks of treatment. The benefit was sustained
after dosing stopped and continued to improve at 15 weeks, or 30 days after the last dose was
administered. The patients that completed the full treatment showed an improvement in SIB scores of 2.6
points with (p=0.07), which met the (p<0.1) needed to show statistical significance.

The modified intent to treat (mITT) analysis showed that the 20 µg dosage patients had an increase in SIB
scores of 1.9 points with a trend toward statistical significance (p=0.0134). Patients in the 40 µg dose
group showed no statistical improvement, which was attributed to the downregulation of PKCε when dosed
above the optimal level.

An additional assessment point at 15 weeks was added to test the duration of the effect. This assessment
showed treated patients continued to improve as placebo controls continued to deteriorate. The difference
in SIB scores in the mITT group increased to 3.59 points (p<0.0503), while the CAS group increased to 4.0
points (p<0.0293). We see this as consistent with the theorized mechanism of stimulating growth of neural
synaptic connections.

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NEUROTROPE INC. Company Note - March 8, 2018

Exhibit 1. Phase 2 Efficacy Endpoint for mITT and Completers at Week 13 The predefined endpoint of
efficacy for the 20 µg dose at 13 weeks showed a 1.9 point improvement (p<0.0134) in the mITT group and
2.6 points for the patients that completed the full seven treatments and exams. The 40µg doses group did
not show benefit.

Source: Neurotrope Biosciences, Inc. SEC filings

Exhibit 2. Additional Benefit Seen at 15 Weeks An additional visit at 15 weeks continued show
improvement in SIB scores 30 days after the last dose was administered. The mITT group increased from
1.9 to 3.59 points, while the CAS group increased from 2.6 to 4.09 points. We believe this supports the
theorized mechanism in which neurons continuing to grow and make connections needed to form new
memories after drug administration has stopped.

Source: Neurotrope Biosciences, Inc. SEC filings

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NEUROTROPE INC. Company Note - March 8, 2018

Memantine Therapy Interferes with Bryostatin Action Patients in the study were permitted to remain on
their existing therapies, including donepezil and memantine. A post-hoc analysis of the patient population
showed that patients taking memantine did significantly worse than those that did not. This was attributed
to the different mechanisms of action for the two drugs. Memantine acts by partially blocking the NMDA
receptor to modulate ion flow into the cell and prevent hyperexcitability. PKCε acts though NMDA receptor
to control ion levels and select downstream pathways. These opposite effects explain the difference in
outcomes for patients taking memantine.

Exhibit 3. Post-hoc Analysis of Patients With and Without Memantine Memantine is an antagonist of
the NMDA receptor that blocks calcium flow to prevent overexcitability. PKCε also works through the
NMDA receptor. Patients continuing to take memantine with Bryostatin had little to no improvement in SIB
scores. When these patients were removed, the SIB score in the mITT group improved to 5.93 (left) while
the CAS group improved to 6.36 points (right).

Source: Neurotrope Biosciences, Inc. SEC filings

Exhibit 4. Table Summarizing Results Showing Blocking Effect of Memantine The post-hoc analysis
separating patients who took memantine with those who did not in both the mITT and CAS groups. The
completer (CAS) analysis for patients who did not take memantine showed an improvement of 5.53 SIB
points (p<0.0338) at week 13 and 6.36 SIB points at week 15 (p<0.0488). This compares with the pre-
specified analysis for the entire CAS population of 2.6 SIB points at week 13 (p<0.07) and 4.09 SIB points
(p<0.0293) at week15.

Source: Neurotrope Biosciences, Inc. SEC filings

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NEUROTROPE INC. Company Note - March 8, 2018

Our Interpretation of the Results

Trial Data Showed the Potential of Bryostatin-1 in Alzheimer’s Disease

We consider the results of the Phase 2 trial to be significant progress in Byrostatin-1 development. The trial
confirmed pre-clinical data showing activity in AD patients and is the first drug we are aware of that has
improved the patients’ memory assessment scores rather than slowed their decline. The trial administered
multiple doses of the drug showing basic safety and tolerability necessary to move forward in development.

Most drugs in clinical testing are aimed at slowing the progression of the disease rather than restoring lost
memory. Preclinical data shows that Bryostatin could have affects on multiple pathways to both prevent
progression and restore memory. We do not expect it to stop all disease pathways, and expect data from
trials with longer treatment times to reveal the pathways for which Bryostatin has the greatest impact.

Sufficient Signal of Efficacy Was Demonstrated We believe these clinical data provide proof-of-
concept to justify a larger trial to more fully characterize the drug. A larger number of patients with a longer
treatment period are necessary to confirm evidence of activity and longer-term durability. For comparability
with other drugs, the trial may include additional endpoints at 26 and 52 weeks, including commonly-used
endpoints such as ADAS-Cog, ADSC-ADL. Scanning images would be helpful to quantify amyloid plaque
burdens. These additional endpoints are needed to show a convincing effect on restoring memory as well
slowing the progression of the disease over time.

Larger Patient Numbers Needed to Allow Standard Statistical Analysis The trial also enrolled patients
with moderate-to-severe Alzheimer’s disease, rather than mild-to-moderate disease as in most studies.
This is a more advanced and more difficult-to-treat stage where patients have significant memory loss, with
natural recovery or improvement highly unlikely.

The previous data showed a strong indication predicting the direction of change between the two groups,
making a one-directional t-test appropriate to analyze the results. The one-tailed test had a requirement of
(p<0.1) to show statistical significance, compared with a requirement of (p<0.05) for the two-tailed t-test.
This increased the power of the test, but was not the two-directional t-test that would have been used in the
pivotal trial.

Conclucsions In our view, the study showed that the drug was active at the 20µg dose and showed an
improvement in memory. This is consistent with the theorized action of stimulating the dendritic sprouting
process that is needed for new memory formation. The timeframe between the start of dosing and the
improvement in SIB scores is consistent with this action as well. The lack of effect for the 40 µg dose was
attributed to downregulation of PKCε, so that dose optimization studies could determine the most effective
dose.

We also point out that Bryostatin is orally available even though the clinical trials are using an intravenous
infusion. While an oral or injectable version would be preferable for both patient convenience and
compliance, the company is advancing the intravenous version before spending development capital on
new formulations. Once the data shows a high likelihood of reaching the market, other versions can be
developed and tested for equivalence. Since Bryostatin-1 is the only drug that could restore memory in the
advanced AD population, we expect its benefits to outweigh the drawbacks of IV administration. These
other versions could reach the market at the same time or shortly after an IV version is approved.

The New CEO Brings Experience with Alzheimer’s Drug Management to Neurotrope

In December 2017, the company hired Charles Ryan, JD, PhD as its new CEO. Dr. Ryan was Senior Vice
President & Chief Intellectual Property Counsel and Member of Board of Directors for over 10 years at
Forest Laboratories, Inc. (acquired by Actavis plc in July 2014). At Forest Laboratories, Dr. Ryan led
hundreds of due diligence teams, managed all aspects of patent and trademark litigations, developed
cross-functional teams to establish a global strategy for hundreds of products. He built and managed the
company’s intellectual property team, recruited, developed and trained executive leaders.

Page 6 of 18
NEUROTROPE INC. Company Note - March 8, 2018

Dr. Ryan coordinated and led the scientific, medical and commercial teams at Forest together with key
opinion leaders in the Alzheimer’s disease field. He was responsible for building the entire intellectual
property estate for Namenda (memantine) and defending the patents in subsequent patent litigations. Dr.
Ryan has also been a Board member of the New York Biotechnology Association and served on the boards
of several development stage biotechnology companies. We believe this experience turning early stage
research into a product with a pre-generic peak annual sales of $2.3 billion is what Neurotrope needs to
turn Bryostatin-1 into a commercial success.

Bryostatin-1 Development History

Bryostatin-1 could restore
lost memory and slow the Neurotrope Is Focused on an Early Modulator of Nerve Cell Growth and Maintenance
progression of Alzheimer’s
disease. Neurotrope BioScience was formed in 2012 to develop therapies for diseases affected by neuronal
development and survival. Research by the company’s founder in the field of memory formation led to
discovery mechanisms by which the brain forms new neuronal branches and synaptic connections. This
led to the discovery of PKC-ϵ and research in cognitive development and diseases where memory is lost.

Neurotrope’s founding scientist, Dr. Daniel Alkon, spent 30 years at the National Institutes of Health, and
was a medical director in the U.S. Public Health Service at the National Institute of Neurological Disorders
and Stroke and Chief of the Laboratory of Adaptive Systems. In 1999, Dr. Alkon left the NIH to become the
Founding Scientific Director of the Blanchette Rockefeller Neuroscience Institute in Rockville, Maryland and
Morgantown, West Virginia.

Dr. Alkon’s research in the field of memory formation led to discovery of pathways used to form new
neuronal branches and synaptic connections. This led to the discovery of PKCϵ, a regulatory protein
involved in early neurological controls and cell maintenance.

One of the PKC-ϵ actions is the regulation of neuronal sprouting to grow new branches. Early in life, proper
brain development requires extensive branching to form communication networks with other neurons.
Once brain development is complete, the neurons continue to make new branches when creating new
memories. Low or deficient levels of PKC-ϵ are found in degenerative diseases, leading to loss of ability to
make new connections and neuronal cell death. Abnormalities tied to PKCε were found in several disease
states, including Alzheimer’s disease.

Strong correlations were found between the loss of PKCϵ activity and the elevation of toxic proteins in
Alzheimer’s patient brains. Additional discoveries found downstream effects that directly affect the
formation of lesions seen in Alzheimer’s disease, including synthesis of neurotrophic growth factors,
metabolism pathways of APP protein, and neuronal survival.

One of the early symptoms of AD is short-term memory gaps, commonly known as “senior moments,”
which have been correlated with a decline in neuronal synapse count. Beta amyloid deposits and
neurofibrillary tangles form later, as the symptoms become more frequent. The development of these
clinical symptoms in Alzheimer’s disease indicates that PKCϵ may be an early control point for these
processes.

In June 2016, the Journal of Biological Chemistry featured an article describing the full molecular biology
cascade from PKCϵ through the formation of memory. These data detailed how PKCϵ activates genes that
produce growth factors that stimulate the growth of synaptic connections. The article detailed the cascade
from PKCϵ through the BDNF, NGF, and other growth factors. It also described the effect on anchoring
proteins, the structural apparatus, and the post-synaptic and pre-synaptic structure of the vesicles that
release transmitters. These data support the observations that Bryostatin-1 stimulates PKCϵ, replaces the
lost synaptic connections, and restores memory.

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NEUROTROPE INC. Company Note - March 8, 2018

PKCε Correlated with AD in Brain Tissue Samples A study was conducted with the Harvard Brain Bank
which analyzed autopsied tissue samples for the presence of PKCϵ. The company received blinded
samples from patients within 2.5 hours of their death for analysis of the PKCϵ levels. There was a high

correlation between PKCϵ and the patient’s recent ability to form new memories. Furthermore, the loss
(low titers) of PKCϵ in the blinded samples was highly correlated with the elevation of amyloid beta
oligomers, the soluble toxic form of amyloid before the plaques were deposited. When PKCϵ was low,
soluble beta amyloid and tau were both elevated. In our opinion, this data supported the idea that PKCϵ
can increase the alpha enzyme that correctly cleaves APP, while reducing presence of toxic forms of beta
amyloid.

Bryostatin Actions

Bryostatin-1 was developed as a therapeutic agonist of PKCϵ (protein kinase C epsilon), a regulator
involved in neuronal growth, branching, cellular metabolism, and death. Bryostatin-1 was derived from the
marine invertebrate Bulula nerita and has shown effects on several pathological mechanisms in Alzheimer’s
disease:

• Neuronal Sprouting and Connections Bryostatin-1 has been shown to activate several
neurologic growth factors that are involved in synaptic growth, including BDNF, NGF, and IGF
(Hongpaisan et al.,Journal of Neurosciene, 2011). In the late 1990s, several pharmaceutical
companies tested drugs based on these neurotrophic growth factors in diseases where neurons
degenerate, such as AD, stroke, Parkinson’s disease, and amyotrophic lateral sclerosis (ALS).
Despite early successes, none achieved Phase 3 clinical success for FDA approval. Bryostatin-1
could be endogenously stimulating several of these growth factors through its action on PKCε.

• Reduction in Amyloid Beta Formation and Increased Degradation Bryostatin-1 also activates
α-secretase and β-amyloid c, the enzymes that normally process amyloid precursor protein (APP).
By upregulating α-secretase and inhibiting β-secretase, it can change the balance of normal
secretase enzymes that lead to synaptic growth or other alternate secretase enzymes that form
Aβ42 and lead to amyloid beta plaques. Bryostatin-1 also activates three amyloid-β degrading
enzymes (ECE, Neprilysin, IDE). Bryostatin’s action on PKCϵ and these enzymes makes it an
early control point for processing APP. (Nelson et al., Journal of Biological Chemistry, 2009).

• PKCε Reduces Tau Phosphorylation Normal cells have a network of microtubules that transport
substances within the nerve cell. Proper control is required for them to function properly and help
the cell survive. In neuronal cells, the protein known as “tau” provides structural support and
regulates the microtubule maintenance process.

Under certain conditions, kinase enzymes that normally phosphorylate proteins in the cell can
phosphorylate tau protein. When tau is phosphorylated, the tubules become unstable, collapse,
and are not able to transport materials within the cell. This leads to cell death, followed by cellular
remnants collapsing into a tangled mass known as the neurofibrillary tangle. These are the
second diagnostic feature of Alzheimer’s disease seen at autopsy.

Bryostatin-1 has been shown to regulate normal levels of GSK3-β, one of the proteins in the
pathway of tau phosphorylation. This helps maintain the normal environment inside the cell and
prevents cell death. This finding shows the effect of PKCε on both pathological lesions in
Alzhiemer’s disease (Sun et al., Journal of Pharmacology and Experimental Therapeutics, 2014).

• PKCε Affects Genes Associated with Alzheimer’s Disease PKCϵ was shown to be affected by
expression of the genes ApoE3 and ApoE4, two genes that have been correlated with risk of
Alzheimer’s disease. Stimulation by ApoE3 and inhibition of ApoE4 was evidence that PKCϵ could
be a regulator of synaptic growth and development.

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NEUROTROPE INC. Company Note - March 8, 2018

ApoE3 expression is associated with the production of neurologic growth factors that stimulate
neurons in the brain to sprout new dendritic branches and make connections to other neurons.
This is considered to be a neutral risk and the more common gene.

ApoE4 is associated with 10-fold to 12-fold increased risk of disease. The gene has been shown
to inhibit the expression of neurologic growth factors. Patients who are homozygous for the
APOE ε4/ε4 gene tend to be diagnosed at younger ages and have shown higher levels of both
amyloid plaques and neurofibrillary tangles. An estimated 1-2% percent of the population is
homozygous for the APOE4 allele (APOE ε4/ε4). ApoE4 affects BDNF, preventing neuronal
growth and contibuting to the disease process. Bryostatin-1 works through the HDAC pathway to
block expression of ApoE4. (Sen et al., Journal of Neuroscience, 2015)

Exhibit 5. PKCε Has Effects on Amyloid Beta and Tau Pathways PKCε affects the enzymatic
processing of APP and the formation of amyloid products as well as the pathways that lead to
phosphorylation of tau protein.

Source: Neurotrope Biosciences, Inc. SEC filings

Additional Indications in Development

Fragile X Syndrome Clinical trials are planned for Fragile X syndrome, a genetic disorder with symptoms
beginning in childhood. The syndrome shows variable penetration with a combination of cognitive
development symptoms, including intellectual and learning disabilities, anxiety, and autism spectrum
disorders. In multiple animal models of the disease, Bryostatin-1 was shown to benefit memory and
learning. Fragile X Syndrome (FXS) a rare disorder disorder with U.S. population of about 135,000
patients, according to the Fragile X Syndrome Association. This small population allows for development
as an Orphan Drug. Neurotrope plans to begin a Phase II clinical trial in FXS patients later in 2018 in
collaboration with the Fragile X Syndrome Association (FRAXA) Research Foundation.

Additional preclinical work has been conducted in conditions were memory is lost such as stroke, Traumatic
Brain Injury, Niemann-Pick disease type C, and Rett Syndrome. We anticipate additional pre-clinical
research, but do not expect these to move into clinical development during 2018.

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NEUROTROPE INC. Company Note - March 8, 2018

Modeling Assumptions

Our revenue projections are based on the moderate-to-severe segment of the 5.5 million patients
diagnosed with Alzheimer’s disease in the US. We have estimated 15% of the population is in this range of
disease and would be candidates for the IV therapy. As a disease modifying therapy that could reverse the
neuronal and synaptic loss and restore memory, the drug could achieve much higher market penetration,
but have kept our market penetration assumptions low at this time.

Our valuation year estimates do not include mild-to-moderate Alzheimer’s patients or Mild Cognitive
Impairment, an early stage of pre-Alzheimer’s disease where there is memory loss. We have also allowed
for research and development expenses for other conditions where neuronal connections are either lost or
not made during development, but have not included these indications in our revenue models yet. We also
believe positive data could lead to partnerships for marketing in the US or foreign territories, but have not
forecast any collaborative revenues at this time. The company has developed a library of molecules that
could be moved to clinical development as results and funding permit, but we have not forecast large
research expenditures for them.

Exhibit 6. Product Model for Bryostatin-1 in Severe Alzheimer’s Disease We assume that only the
moderate-to-severe population would be candidates for the IV version of the drug. This is intentionally
conservative and is based only on the data presented.

2023E 2024E
Bryostatin-1
Alzheimer's disease patients, US 5,500,000 5,500,000
Moderate to severe AD 10%
Target population 550,000
Market penetration 4%
Patients treated per period 23,375
Cost per quarter (year) 10,000
Revenues (000) 935,000,000
Risk adjustment 75%
Revenues (000) 233,750

Source: ROTH Capital Partners LLC estimates

VALUATION

Our Buy rating is based on the expectation that the company plans a new Phase II the begins in 2H18.
Other indications where brain cells have caused memory loss include stroke, traumatic brain injury, and
other developmental disorders.

We allow two years for the study with data expected in 2H20. Allowing for a Phase 3 from 2021 to late
2022, we anticipate approval in late 2023. Our models have assumed an initial low market penetration that
increases gradually. To determine a price target for NTRP, we began with estimated earnings for the first
year of profitability. Based on a cost of $800 per month ($10,000 annual cost) we assume revenues begin
in FY2024. We based our revenues on the severe portion of the diagnosed Alzheimer’s disease
population, which is estimated at 10-15% of the estimated 5.5 million patients by the Alzheimer’s
Association. We have not included any of the 40 million additional patients in the rest of the world.

We adjust these revenues for the high risk of failure in clinical trials for Alzheimer’s disease and reduce the
revenue projections by 75% for our revenue estimates. Our estimates reflect the probability of success,
market penetration, and revenue potential, which should change as clinical data becomes available.
Milestones to drive the stock include announcement of the Phase 2 trial design, initiation of the study, and
presentation of data at scientific meetings.

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NEUROTROPE INC. Company Note - March 8, 2018

We further discount our FY2024 EPS of $6.46 by 30% per year, and apply a multiple of 15X for a price
target of $15 per share. Based on expected sales of drugs that are intended to slow the decline in cognitive
function or reduce symptoms, we believe our estimates for Bryostatin-1 are conservative. Our valuation
correlates with a market capitalization of $330 million compared with about $68 million today.

Factors that could impede the achievement of our price target include delays in starting the Phase 2 clinical
trial, perceived flaws in the design of the clinical trial, and scientific data from the clinical trial that is
interpreted negatively.

Exhibit 7. Valuation Matrix for Neurotrope Biosciences, Inc.

Current Year 2017 Discount Rate and Earnings Multiple Varies, Year is Constant
Year of EPS 2024 2024 EPS
Earnings Multiple 15 15.5 5% 10% 15% 20% 25% 30%
Discount Factor 30% Earnings 0 $0.00 $0.00 $0.00 $0.00 $0.00 $ -
Selected Year EPS $ 6.46 Multiple 5 $22.97 $16.58 $12.15 $9.02 $6.78 $ 5.15
NPV $ 15 10 $45.93 $33.17 $24.30 $18.04 $13.55 $ 10.30
15 $68.90 $49.75 $36.45 $27.06 $20.33 $ 15.45
20 $91.87 $66.33 $48.60 $36.08 $27.11 $ 20.60
25 $114.83 $82.92 $60.74 $45.09 $33.89 $ 25.75
30 $137.80 $99.50 $72.89 $54.11 $40.66 $ 30.90
35 $160.77 $116.08 $85.04 $63.13 $47.44 $ 36.05

EPS Year
30% Discount
15.5 2018 2019 2020 2021 2022 2023
Earnings 5 -$6.45 -$5.50 -$4.42 -$3.06 -$2.58 $ (2.20)
Multiple 10 -$12.90 -$11.01 -$8.83 -$6.13 -$5.16 $ (4.41)
15 -$19.34 -$16.51 -$13.25 -$9.19 -$7.74 $ (6.61)
20 -$25.79 -$22.02 -$17.67 -$12.26 -$10.32 $ (8.82)
25 -$32.24 -$27.52 -$22.08 -$15.32 -$12.89 $ (11.02)
30 -$38.69 -$33.03 -$26.50 -$18.38 -$15.47 $ (13.23)
35 -$45.13 -$38.53 -$30.92 -$21.45 -$18.05 $ (15.43)
40 -$51.58 -$44.04 -$35.33 -$24.51 -$20.63 $ (17.64)

Source: ROTH Capital Partners LLC estimates

RISKS

Drug Development Risk Neurotrope is developing drugs for neurological diseases with no known cures.
Alzheimer’s disease is not well characterized and its causes are not established. It has historically been
difficult to treat, and the risk of product failure is high.

Intellectual Property Risk The company faces the risks of the drug development industry, including
scientific, technical, clinical, regulatory failures. As novel therapies, its products also face risks with
reimbursement and product adoption. The field of patents and intellectual property involves complex
scientific and legal issues that are subject to change by legislation or judicial action. Other companies with
greater resources may challenge the company through the legal system or in the marketplace.

Regulatory Risk The company has conducted a Phase 2 trial, and although we believe the pre-clinical
and early clinical data indicate efficacy, the drug still needs to undergo further testing. The finding from the
trial must be reviewed by the FDA before the company receives approval to continue clinical testing.
Analysis by the agency may not agree with the analysis presented by the company and is not guaranteed.

Exchange and Market Risk NTRP shares trade on the NASDAQ exchange. The company is expected to
raise additional capital to fund additional trials in the coming year, which is subject to market conditions.

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NEUROTROPE INC. Company Note - March 8, 2018

Clinical Supplies and Manufacturing Risk Neurotrope does not own or operate facilities for
manufacturing and relies on partners for clinical compounds. The company had been obtaining its clinical
supplies from the National Institutes of Health, and recently secured a supply agreement with Stanford
University. We expect the company to continue to use third-party manufacturers for its planned clinical
trials and commercial production. We believe the supply of clinical materials is sufficient to conduct the
trials, although third party manufacturing still carries a risk of problems or disagreements that could delay
clinical trials.

Changing Political Environment The pharmaceutical industry has historically been criticized over the
cost of drugs and its pricing policies. We expect the industry to remain a political target by politicians from
both parties. Drug approval is under the authority of the FDA, while reimbursement by third-party payors
often follows policies established by the Center for Medicaid/Medicare. Both agencies are divisions of the
Department of Health and Human Services, run by Commissioners appointed by the President and
confirmed by the Senate. Policy changes could have broad effects on the environment for drug
development and reimbursement.

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NEUROTROPE INC. Company Note - March 8, 2018

VALUATION
Our valuation is based on conducting a Phase 2, a confirmatory Phase 3, and then approval of Byrostatin-1
in 2023. We discount the revenues at 75% to adjust for risk, then discount earnings in FY2024, the year after
product introduction at 30% per year. Our price target is $15 per share.

Factors that could impede the achievement of our price target include delays in starting the Phase 2 clinical
trial, perceived flaws in the design of the clinical trial, and scientific data from the clinical trial that is interpreted
negatively.

RISKS
Drug Development Risk Neurotrope Inc. is developing drugs for Alzheimer's disease and neurological
diseases with no known cures. The company is conducting clinical trials, and although we believe the
preclinical and early clinical data indicate efficacy, the drug still needs to undergo further testing in each of the
indications. Alzheimer’s disease is not well characterized and its causes are not established. It has historically
been difficult to treat, and the risk of product failure is high.
Industry Risks The company faces the risks of the drug development industry, including scientific, technical,
clinical, regulatory failures. As novel therapies, its products also face risks with reimbursement and product
adoption.
Intellectual Property Risk The field of patents and intellectual property involves complex scientific and legal
issues that are subject to change by legislation or judicial action. Other companies with greater resources may
challenge the patents and IP through the legal system or in the marketplace.
Exchange and Market Risk NTRPshares trade on the NASDAQ exchange. The company had $18.6 million
in cash at September 30, 2017, which we believe is enough to fund operations into 2019. The company may
to raise additional capital in the coming year, which is subject to market conditions.
Clinical Supplies and Manufacturing Risk Neurotrope does not own or operate facilities for manufacturing
and relies on partners for clinical compounds. We expect the company to continue to use third-party
manufacturers for its planned clinical trials and commercial production. We believe the supply of clinical
materials is sufficient to conduct the trials, although third party manufacturing still carries a risk of problems
or disagreements that could delay clinical trials.
Changing Political Environment The pharmaceutical industry has historically been criticized over the cost of
drugs and its pricing policies. We expect the industry to remain a political target by politicians from both parties.
Drug approval is under the authority of the FDA, while reimbursement by third-party payors often follows
policies established by the Center for Medicaid/Medicare. Both agencies are divisions of the Department of
Health and Human Services, run by Commissioners appointed by the President and confirmed by the Senate.
Policy changes could have broad effects on the environment for drug development and reimbursement.

COMPANY DESCRIPTION
Neurotrope Biosciences, Inc. is developing drugs for neurodegenerative diseases and developmental
conditions. The company's lead product is Bryostatin-1, a drug that stimulates an early regulatory protein
associated with neuronal pathways.

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NEUROTROPE INC. Company Note - March 8, 2018

Neurotrope, Inc and Subsidiary: Income Statement ($000)

Fiscal Year Ended December 31 2016A 1Q17A 2Q17E 3Q17A 4Q17E 2017E 1Q18E 2Q18E 3Q18E 4Q18E 2018E 2019E 2020E 2021E 2022E 2023E 2024E
Product sales
Bryostatin-1 - Moderate-to-severe AD 233,750

Total Product Sales - - - - - - - - - - - - - - - - 233,750

Expenses
Cost of Goods Sold - - - - - - 35,063
COGS/Revenues
Research and Development - related party 1,029 12 77 75 80 245
Research and Development 5,604 1,630 1,288 745 1,100 4,763 1,200 1,800 2,500 3,500 9,000 18,000 26,000 28,000 33,000 36,000 40,000

General and Administrative - related party 60 2 13 13 13 39

General and Administrative 3,436 1,223 1,358 1,253 1,200 5,034 1,300 1,300 1,500 1,500 5,600 6,200 7,600 9,000 9,570 11,500 14,000

Stock based payments - related party 753 33 34 34 40 141

Stock based payments 2,052 190 195 197 200 782

Total expenses 12,933 3,090 2,964 2,317 2,633 11,003 2,500 3,100 4,000 5,000 14,600 24,200 33,600 37,000 42,570 47,500 89,063
Operating Income (Loss) (12,933) (3,090) (2,964) (2,317) (2,633) (11,003) (2,500) (3,100) (4,000) (5,000) (14,600) (24,200) (33,600) (37,000) (42,570) (47,500) 144,688
Loss on abandonment of fixed assets (34)
Gain on settlement of lease obligation 54
Interest income 8 9 18 20 10 57 4 4 4 4 16 20 24 28 32 32 32

Total other income 8 28 18 20 10 57 4 4 4 4 16 20 24 28 32 32 32

Pretax Income (12,924) (3,062) (2,946) (2,296) (2,623) (10,946) (2,496) (3,096) (3,996) (4,996) (14,584) (24,180) (33,576) (36,972) (42,538) (47,468) 144,720

Provision for income tax - - - -

Tax Rate 0%
Net earnings (12,924) (3,062) (2,946) (2,296) (2,623) (10,946) (2,496) (3,096) (3,996) (4,996) (14,584) (24,180) (33,576) (36,972) (42,538) (47,468) 144,720
Preferred stock dividends

Net loss attribtuted to common shareholders (12,924)

GAAP-EPS (basic) (5.69) (0.43) (0.38) (0.29) (0.33) (1.42) (0.31) (0.39) (0.50) (0.46) (1.68) (1.88) (1.94) (1.76) (1.92) (2.13) 6.46
GAAP EPS (diluted) (5.69) (0.43) (0.38) (0.29) (0.33) (1.42) (0.31) (0.39) (0.50) (0.46) (1.68) (1.86) (1.94) (1.75) (1.92) (2.13) 6.46
Weighted Average Shares (basic) - '000s 2,272 7,145 7,794 7,894 7,910 7,686 7,926 7,942 7,958 10,974 8,700 12,997 17,300 21,125 22,213 22,302 22,391
Weighted Average Shares (diluted) - '000s 2,272 7,145 7,794 7,894 7,910 7,686 7,926 7,942 7,958 10,974 8,700 12,997 17,300 21,125 22,213 22,302 22,391
Source: Neurotrope SEC filings, press releases, and ROTH Capital Partners LLC estimates

Robert M. LeBoyer
rleboyer@roth.com

Page 14 of 18
NEUROTROPE INC. Company Note - March 8, 2018

Neurotrope, Inc. and Subsidiary: Balance Sheet ($000)

Assets 2016A 1Q17A 2Q17A 3Q17A 4Q17E 2017E 1Q18E 2Q18E 3Q18E 4Q18E 2018E 2019E 2020E 2021E 2022E 2023E 2024E
Cash and Cash Equivilents $25,774 $23,765 $21,466 $18,651 $17,774 $17,774 $15,904 $13,536 $10,368 $31,707 $31,707 $58,994 $79,464 $115,204 $78,815 $37,805 $190,089
Prepaid expenses and other assets 139 133 180 431 431 431 431 431 431 431 431 431 431 431 431 431 431
Subscription receivable
Prepaid expenses - related party -

Total current assets $25,912 $23,898 $21,646 $19,082 $18,205 $18,205 $16,336 $13,967 $10,799 $32,139 $32,139 $59,425 $79,896 $115,635 $79,246 $38,237 $190,521
Fixed assets, net of accumulated depreciations 55 23 22 21 21 21 21 21 21 21 21 21 21 21 21 21 21

Total assets $25,967 $23,921 $21,668 $19,103 $18,226 $18,226 $16,357 $13,988 $10,821 $32,160 $32,160 $59,447 $79,917 $115,657 $79,267 $38,258 $190,542
Liabilities
Accounts payable 2,167 1,878 2,131 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618 1,618
Accrued expenses 191 57 53 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Note payable
Accounts payable - related party
Accrued expenses - related party 5 12 - - - - - - - - - - - - - -

Total current liabilities $2,363 $1,947 $2,184 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668
Conbertible redeemable preferred stock, Series A
Conbertible redeemable preferred stock, Series B -

Total liabilities $2,363 $1,947 $2,184 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668 $1,668
Stockholders' equity
Common stock 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Additional paid-in capital 73,649 75,080 75,536 75,784 77,529 77,529 78,156 78,883 79,712 106,047 106,047 157,514 211,560 284,272 290,421 296,880 304,445
Accumulated deficit (50,045) (53,107) (56,053) (58,349) (60,972) (60,972) (63,468) (66,564) (70,560) (75,556) (75,556) (99,736) (133,312) (170,284) (212,822) (260,291) (115,572)

Total Equity 23,605 21,974 19,484 17,436 16,559 16,559 14,689 12,321 9,153 30,492 30,492 57,779 78,249 113,989 77,600 36,590 188,875
Total Liab & Equity $25,967 $23,921 $21,668 $19,103 $18,226 $18,226 $16,357 $13,988 $10,821 $32,160 $32,160 $59,447 $79,917 $115,657 $79,267 $38,258 $190,542
Shares Issued (000) 2,272 7,145 7,794 7,894 7,910 7,686 7,926 7,942 7,958 10,974 8,700 12,997 17,300 21,125 22,213 22,302 22,391
Shares Outstanding (000) 2,272 7,145 7,794 7,894 7,910 7,686 7,926 7,942 7,958 10,974 8,700 12,997 17,300 21,125 22,213 22,302 22,391
Source: Neurotrope SEC filings, press releases, and ROTH Capital Partners LLC estimates

Robert M. LeBoyer
rleboyer@roth.com
(646) 616-2785

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NEUROTROPE INC. Company Note - March 8, 2018

Neurotrope, Inc and Subsidiary: Cash Flow Statement ($000)

Cash flows from operating activities: 2016A 1Q17A 2Q17A 3Q17A 4Q17E 2017E 1Q18E 2Q18E 3Q18E 4Q18E 2018E 2019E 2020E 2021E 2022E 2023E 2024E
Net income (loss) (12,924) (3,062) (6,008) (8,304) (10,927) (10,927) (2,496) (5,592) (9,588) (14,584) (14,584) (24,180) (33,576) (36,972) (42,538) (47,469) 144,719
Stock based compensation 2,805 223 451 682 2,800 2,800 500 1,100 1,800 2,500 2,500 3,100 4,000 4,100 4,600 4,900 6,000
Consulting services paid by issuance of common stock 31 105 122
Consulting services paid by issuance of Series B units
Depreciation expense 7 2 2 3
Loss on abandonment of fixed assets 34 34 34

Changes in assets and liabilities:

Change in prepaid expenses and other current assets 1,351 6 (41) (293)
Change in subscription receivable 3
Change in accounts payable - related party 0
Increase (decrease) in accrued expenses - related party (384) 8 (5) (5)
(Decrease) Increase in accounts payable 1,718 (290) (36) (550)
(Decrease) Increase in accrued expenses 49 (134) (138) (141)

Net Cash Used in Operating Activities (7,377) (3,182) (5,635) (8,451) (8,127) (8,127) (1,996) (4,492) (7,788) (12,084) (12,084) (21,080) (29,576) (32,872) (37,938) (42,569) 150,719
Cash flows from investing activities:
Purchase of property and equipment (3) (4) (4) (4) 0

Net cash provided by investing activities (3) (4) (4) (4) 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows from financing activities:
Issuance of preferred stock, net of transaction costs
Issuance of common stock, net of transaction costs 21,760 127 127 127 254 382 26,018 26,018 48,367 50,046 68,612 1,549 1,559 1,565
Proceeds from note payable
Repayments on note payable (11)
Proceeds form exercise of common stock warrants 173 1,178 1,331 1,331

Net cash provided by financing activities 21,922 1,178 1,331 1,331 127 127 127 254 382 26,018 26,018 48,367 50,046 68,612 1,549 1,559 1,565
Effect of exchange rate on cash and cash equivalents
Net Increase (decrease) in cash and cash equivilents 14,543 (2,008) (4,308) (7,123) (8,000) (8,000) (1,869) (4,238) (7,406) 13,934 13,934 27,287 20,470 35,740 (36,389) (41,009) 152,284
Cash and equivalents, beginning of period 11,231 25,774 25,774 25,774 25,774 25,774 17,774 17,774 17,774 17,774 17,774 31,707 58,994 79,464 115,204 78,815 37,805
Cash and equivalents, end of period 25,774 23,765 21,466 18,651 17,774 17,774 15,904 13,536 10,368 31,707 31,707 58,994 79,464 115,204 78,815 37,805 190,089
Source: Neurotrope SEC filings, press releases, and ROTH Capital Partners LLC estimates

Robert M. LeBoyer
rleboyer@roth.com
(646) 616-2785

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NEUROTROPE INC. Company Note - March 8, 2018

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies
the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views
about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or
will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures:
ROTH makes a market in shares of Neurotrope Inc. and as such, buys and sells from customers on a principal basis.

Each box on the Rating and Price Target History chart above represents a date on which an analyst made a change to a
rating or price target, except for the first box, which may only represent the first note written during the past three years.
Distribution Ratings/IB Services shows the number of companies in each rating category from which Roth or an affiliate
received compensation for investment banking services in the past 12 month.

Distribution of IB Services Firmwide

IB Serv./Past 12 Mos.
as of 03/08/18
Rating Count Percent Count Percent
Buy [B] 247 71.39 133 53.85
Neutral [N] 45 13.01 18 40.00
Sell [S] 4 1.16 2 50.00
Under Review [UR] 49 14.16 27 55.10

Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any
given point in time, our investment rating on a stock and its implied price movement may not correspond to the stated 12-
month price target.
Ratings System Definitions - ROTH employs a rating system based on the following:
Buy: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return of at least
10% over the next 12 months.
Neutral: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return between
negative 10% and 10% over the next 12 months.
Sell: A rating, which at the time it is instituted and or reiterated, that indicates an expectation that the price will depreciate
by more than 10% over the next 12 months.
Under Review [UR]: A rating, which at the time it is instituted and or reiterated, indicates the temporary removal of the
prior rating, price target and estimates for the security. Prior rating, price target and estimates should no longer be relied
upon for UR-rated securities.
Not Covered [NC]: ROTH does not publish research or have an opinion about this security.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business
relationships with the covered companies mentioned in this report in the next three months. The material, information and
facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from
sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used
as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon

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NEUROTROPE INC. Company Note - March 8, 2018

request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are
subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high
degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the
express written permission of ROTH. Copyright 2018. Member: FINRA/SIPC.

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