Innovative Partnerships in Biotechnology A Biotech Perspective on Past, Present & Future Donald Olds Chief Operating Officer & CFO Aegera Therapeutics Inc. June 8, 2010 1
Discussion Points Why do biotech companies look for partnerships? What partnership models currently exist? What constrains our ability to enter into partnerships? What are some new models that we need to explore? 2
Aegera Introduction Private biotechnology company based in Montreal with 40 employees Fully integrated R&D team 5 successful INDs in 5 years Two target-based platform technologies IAP Technology AEG35156: XIAP Antisense Randomized Phase 2 trials ongoing Not partnered HGS1029: Pan-IAP small molecule inhibitor Two Phase 1 trials ongoing Partnered with Human Genome Sciences AEG41XXX: Oral small molecule IAP Inhibitor Initiating IND-qualifying toxicology studies Not partnered HSP90 Technology Lead compounds for CNS & Inflammation/Autoimmune Diseases Not partnered
Aegera Introduction - Supplementary Aegera was formed in 2000 from the merger of two smaller biotechs, Apoptogen (1995) and Exogen (1997) Aegera has raised over $100 Million in: VC funding Partnership funding Government funding (Biolevier Investissement Quebec) Industry grants Federal, Quebec and Ontario R&D tax credits Aegera has put 5 new molecules in the clinic
Why do we need partnerships? Drug development is long, expensive and risky Progress is measured in terms of decades Costs are measured in terms of hundreds of millions of dollars Probabilities of success begin very low and climb ever so slowly... Partnerships are sought to: Reduce development timelines Reduce or share financial costs Improve the probability of ultimate success (or to identify as early as possible that success is not possible) via knowledge sharing/synergy 5
Aegera/HGS Partnership Classic Worldwide oncology rights (ex Japan) for small molecule IAP program Summary deal terms: $20 Million licensing fee; $5 Million on IND clearance $320 Million of additional future milestones 3 Year research collaboration Dedicated FTE s at Aegera and HGS Aegera s option for a 30% co-promotion option in North America Full sharing of global clinical database with Japanese partner
Partnership Benefits Financial support Knowledge sharing 3 year R&D collaboration Joint Research Committee HGS biology expertise/aegera small molecule expertise FTE s engaged at both sites Knowledge sharing Clinical Joint Development Committee HGS has large clinical team Potential synergy with HGS oncology program
Aegera/Leukemia and Lymphoma Foundation Partnership Novel LLS s Therapy Accelerator Program ( TAP ) Thesis: Many small biotechnology companies are developing novel therapies that could be applied to hematological cancers These companies, with limited resources, may not prioritize hematological tumours because of relatively small market size LLS could intervene by providing funding for these trials and accelerate the development of new medications for their constituents
Aegera/LLS Partnership Summary LLS s Therapy Accelerator Program ( TAP ) Facts: LLS provides named Aegera as the first recipient of of its new TAP program Provided US$3.3 MM in funding for a P1/2 clinical trial in lymphomas If the trials are successful, and the drug goes to market for the treatment of lymphomas, Aegera will pay a limited royalty stream to LLS 9
Partnership benefits Financial support Knowledge sharing Access to LLS KOL s Privileged access to North American clinical sites/pi s Acceleration of development Without this grant, Aegera would not have explored Lymphomas at this time because of the cost and market opportunity
Constraints on a biotech s ability to enter into partnerships Timeframe Must be a relevant timeframe Funding Generally must provide some funding/be cash neutral Ownership of IP Extremely difficult for a biotech to cede any ownership, past, present or future, without compensation or promise of compensation Biotech s are funded by for-profit investors whose only hope for recouping their investment lies in the value of the IP Broad and difficult issue 11
But what can partnerships bring Financial risk sharing/mitigation Acceleration of development Improved probability of success through: Domain expertise Preclinical experience Clinical development experience/expertise KOL access Other indication understanding Better predictive models More extensive preclinical and early clinical studies Bio-markers Better tools to reduce timelines and costs via Knowledge sharing, mentoring, industry databases 12
New Partnership Models Bring key industry participants into multi-party, collaborative structures Pharma Companies Biotech Companies Universities Governments Provide real funding to those models Search out areas where groups can honestly collaborate IP and competition will always be issues when for profit organizations are involved therefore need to work at very early stages or provide for real upside for the industry player(s) Be concrete Is it achievable in a reasonable (2-3 year) timeframe Take chances 13
Thank You/Merci! Aegera Therapeutics Inc. 810 chemin du Golf Montreal, Quebec Canada, H3E 1A8 Tel: (514) 288-5532 www.aegera.com 14