ASX Small to Mid Caps Conference Singapore. May 27 th, 2010

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1 ASX Small to Mid Caps Conference Singapore May 27 th, 2010

2 Mesoblast Capital Overview Fund Raisings $m 50 cents 21.0 Equity Placements: Jul Dec Apr May Option funds 3.2 Total Funds Raised $102.8 Issued shares (subject to EGM) 234m Current Share Price $1.90 Cash available (circa) $54m Market Cap (circa) $500m Use of capital: Mesoblast Preclinical and Clinical Programs Angioblast 100% acquisition

3 Lead Products Moving Towards Revenues IND Clearance FDA Approval Mesoblast Programs Preclinical Phase I Phase II Phase III Spinal Fusion Intervertebral Disc Repair Long Bone Fracture Repair Knee Osteoarthritis Angioblast Programs Bone Marrow Transplantation Congestive Heart Failure Acute Myocardial Infarction Eye Disease (AMD) Diabetes

4 Commercializing Stem Cells: What is the Right Business Model? Embryonic Stem Cells/iPS Cells Research only NO near-term therapeutic product (ethics, cancer risk, etc.) Adult Stem Cells Commercial products in the clinic today Most adult stem cell products need to be patient s own high cost, low margin (e.g. fat derived, cord blood) Mesenchymal-type adult stem cells uniquely are non-immunogenic & highly expandable Off-the-Shelf, high-margin products from unrelated donors

5 We Own the Intellectual Property on Mesenchymal Precursor Cells (MPC) bone marrow + antibody magnetic beads magnet MPC Highly Expandable + Non-Immunogenic Products For bone Orthopaedic Diseases cartilage Products For Eye Diseases Isolated Cells Culture-expanded Cells heart muscle pancreas Products For Cardiac Diseases + Diabetes US Composition Patent granted US Manufacturing Process Patent granted Global Use Patents filed Blood vessel

6 Our Industrial-Scale Manufacturing Process Bone Marrow (BM) from universal donor BM + stem cell-binding antibody magnetic beads fresh, quiescent master cell bank magnet MPC final product for thousands of unrelated recipients Competitive Advantages of Manufacturing Process: homogeneous cell population well-controlled cell expansion efficient large-scale expansion lower costs of cell culture process batch-to-batch consistency stringent release criteria greater potency of expanded product

7 Technical 1. Demonstrated scale-up of manufacturing process 2. Demonstrated safety of manufacturing and cells in patients 3. Shown that allogeneic ( off-the-shelf )) stem cells are effective Clinical 4. FDA IND submissions for 5 allogeneic clinical trials cleared <30 days 5. Phase 1/2 results for Spinal Fusion, Fracture Repair, Congestive Heart Failure, Bone Marrow Transplant trials show significant efficacy ficacy Commercial Major Value Inflexion Points Since Listing Issued three US patents: composition-of of-matter, manufacturing, bone repair 7. Collaboration with global Cardiovascular Pharma/Device Co.

8 Target Orthopaedic Markets

9 Target Non-Orthopaedic Markets e.g. Heart Disease, Diabetes

10 Commercialisation and Revenue Generation Strategies 1. Taking Individual Applications to Market on Our Own e.g. For Orphan Drug Applications 2. Broad-based Partnering of Platform Technology e.g. For Pharma Licensing 3. Partnering Specific Applications e.g. For Medtech Applications 4. Product Manufacturing and Supply Agreements e.g. Transfer Price on all Finished Products

11 Commercial Strategies For MPC-Based Biologicals

12 Bone Marrow Transplantation (BMT) 139,000 new cases hematologic cancers each year in US alone 17,500 BMT procedures in USA in ,000 BMT procedures in EU in 2008 If an effective alternative to adult bone marrow existed for allogeneic (donor-unrelated) BMT, without risk of fatal graftversus-host disease (GVHD), market could increase by > threefold Umbilical Cord Blood as source for allogeneic BMT has lower risk of GVHD, but less effective than adult bone marrow because of insufficient cell numbers need expansion technology!

13 BMT Market Opportunity Our proprietary MPC induce 40-fold expansion of Cord Blood Orphan Drug designation received for use of MPC-expanded Cord Blood in cancer patients needing allogeneic BMT 30-patient trial currently underway, aiming to show earlier bone marrow engraftment + reduced GVHD rate Plan to begin Phase 3 registration trial 2010 Target market $ m

14 BMT - Clinical Trial Results BMT Clinical Trial Results 18 patients transplanted to date with proprietary expansion technology median time to neutrophil engraftment 16.5 days (controls 24-30d) median time to platelet engraftment 38.5 days (controls >90d) <10% Grade III/IV GVHD (controls 40% Grade III/IV GVHD) Conclusions: MPC-expanded cord blood superior to non-expanded cord blood MPC-expanded cord blood comparable to allogeneic adult marrow for bone marrow reconstitution, with significantly reduced risk of GVHD Results support progressing to accelerated Phase 3 program

15 Commercial Strategies for MPC-Based Biologicals

16 Spinal Repair Market Path To Revenues Target markets: spinal fusion and disc repair Over 4M patients affected by disc disease in US/year, with >500,000 Spinal Fusion procedures performed in US alone annually Aims: (a) for late-stage disc disease, faster bony fusion than autograft (b) for early-stage disease, disc regeneration and pain reduction Partner with global spinal device leader to leverage sales, marketing and distribution strength Target US markets in excess of $2 billion annually

17 Clinical Results For Spinal Fusion Products FDA-cleared Phase 2 trials in 60 patients for MPC products used in minimally-invasive lumbar/cervical fusion procedures 36-patient multicenter Phase 2 Cervical Fusion trial ongoing; 24-patient multicenter Phase 2 Lumbar Fusion trial ongoing; Pilot data at single center shows earlier lumbar fusion vs autograft

18 Pilot Allogeneic Human MPC Posterolateral Fusion Trial Pt.#1, 6 month CT (L4-L5 posterior bridging) MPC (12.5M) Autograft

19 Disc Repair Product Phase 2 Disc Repair trial in 48 patients aimed for Q Proposed 6-month end-points focus on pain relief, reduced need for surgery Preclinical results show increased disc height by XRay, restoration of anatomy by MRI and histopathology

20 MPC Reverse Abnormal Disc MRI + Pathology Scores Means of NP Histopathology Degeneration Scores at 6 months for low Dose MPC Mean and Standard Error Score Column Aggregate MRI Disc Degeneration Scores at 6 months for Low Dose MPC Mean and Standard Error A B C D Column p < A B C D no enzyme enzymatic enzymatic enzymatic degradn alone degradn+ha degradn+ha+mpc

21 Products for Cardiovascular Diseases Path to Revenues Target markets Congestive Heart Failure (CHF) and Heart Attacks CHF affects existing 5.5M plus 0.55M new-onset/year in US alone Heart Attacks affect 1M/year in US alone Aims: improve heart function, reduce hospitalisation, improve survival Partner with global cardiovascular leader to leverage sales, marketing and distribution strength Target US markets alone in excess of $4 billion annually

22 Congestive Heart Failure (CHF) Product Class II-IV patients with Ejection Fraction (EF) < 35% (a) have highest mortality at 12 and 24 months (b) account for 40% of all CHF patients product effective in this group will generate premium pricing path to FDA approval for this patient group well established cardiac resynchronization therapy (CRT) appropriate precedent for market uptake, reimbursement

23 Phase 2a Trial of Allogeneic MPC in CHF Patients EF<40% 60 patient multi-centre, randomised, controlled trial class II-IV CHF, EF < 40%, high 6- and 12-month mortality three cohorts of 20 patients, each cohort testing progressively increasing allogeneic MPC dose cells injected by J&J NOGA Myostar catheter 40 patients first two doses completed, no adverse events evaluating cardiac functional recovery at 3, 6 and 12 months

24 Lowest Dose MPC Treatment Results In Sustained (>10-Point) Increase In EF At 6 Months?Likely Impact On Mortality , , months 11.8 point differential 6 months 10.4 point differential P < Control Treated Baseline 3 months 6 months

25 Near-Term News Flow Commence Phase 3 trial in Bone marrow Transplantation Complete Phase 2 trials in Congestive Heart Failure/Heart Attacks Complete Phase 2 trials in Spinal Fusion/Disc Repair Expand arthritis clinical trial programs Commence human trials in eye diseases