J.P. Morgan Healthcare Conference January 15, 2009
Facet Biotech Corporation Forward-looking Statements This presentation contains forward-looking statements involving risks and uncertainties and Facet s actual results could differ materially from those, express or implied, in this presentation. The forward-looking statements include our expectations regarding our operating and financial results and the clinical development of potential products. Various factors may cause differences between our expectations and actual results including: competition from alternative therapies; disappointing results from clinical trials; and failure to obtain regulatory approval for potential products. Other risk factors we face are discussed in the Risk Factors sections of each of our SEC filings, which may be obtained at the Investors section of our website at www.facetbiotech.com. We expressly disclaim any obligation or undertaking to updates or revise any forward-looking statements to reflect any change in expectations, even as new information becomes available or other events occur in the future. All forward-looking statements in this presentation are qualified in their entirety by this cautionary statement. Copyright Notice All of the content in this presentation is copyrighted and may not be reproduced, distributed or revised in any manner without the prior written consent of Facet Biotech. Any use without consent may violate copyright law and other laws or regulations. Copyright 2009, Facet Biotech Corporation. All Rights Reserved. 2
Facet Biotech: unique opportunity Promising pipeline Compelling biology Solid financial position Strategic collaborations Core capabilities 3
Facet Biotech: planning for success Opportunity to shape Facet Biotech into a new and exciting company Narrow focus Establish diversified and risk-balanced pipeline Leverage antibody expertise Extend financial runway Assess and enhance organizational capabilities Strategic business review completed in January 2009 4
Facet Biotech: foundation for a new company Narrow focus and enhance depth of expertise Pursue a single therapeutic area oncology Focus research efforts on a validated biology approach Capitalize on and expand internal and external expertise in oncology Augment pipeline in a focused, disciplined manner Focus business development opportunities in oncology P1/2 clinical-stage assets with validated biology a priority Deliver value within a four-year period Progress programs to P2 proof of concept Evaluate opportunities for protein engineering technology platform Increase financial stability and flexibility Of critical importance in this capital-constrained environment 5
Facet Biotech: financial strength Ability to fund operations for ~4 years Based on over $400 million in initial capitalization and financial projections Includes in-licensing 2009 cash utilization of ~$110 million Includes ~$10 million in one-time, workforce-related costs Excludes receipt of potential milestones, including a $15 million opt-in for PDL241 Does not assume facility sub-lease Does not reflect costs related to in-licensing opportunities Workforce of ~200 positions Reflective of recently announced reduction of 80 positions 6
Facet Biotech: pipeline overview Preclinical Phase 1 Phase 2 daclizumab multiple sclerosis* volociximab elotuzumab PDL192 ovarian* lung* multiple myeloma (monotherapy)** multiple myeloma (combination)** solid tumors PDL241 immunologic diseases*** *in collaboration with Biogen Idec **in collaboration with Bristol-Myers Squibb (BMS) ***BMS has option to include in collaboration oncology immunology 7
Daclizumab: demonstrated proof of concept in MS CHOICE primary endpoint adjusted new or enlarged Gd+ lesions Adjusted Means of New/Enlarged Gd+ Lesions 5 4 3 2 1 0 4.8 25% reduction* 95% CI: -68%, +76% P=0.514 3.6 72% reduction* 95% CI: -88%, -34% P=0.004 1.3 IFN/Placebo IFN/DAC 1 mg/kg IFN/DAC 2 mg/kg *P-values, percent reductions, and 95% confidence intervals were estimated from a negative binomial regression adjusting for the number of baseline lesions and type of MS (RRMS vs. SPMS). Data presented by M. Kaufman; AAN 2008. Anti-IL-2 humanized mab First approved humanized mab P2 CHOICE MS trial met primary endpoint Secondary endpoint of annualized relapse rate Reduction of 32% low dose and 43% high dose compared to placebo (unadjusted) In collaboration with Biogen Idec 8
Daclizumab: SELECT trial Screening Follow-up Period (No Dac) Randomize MRI: Week 0 4 8 12 16 20 24 48 72 24 weeks 24 weeks 24 weeks 297 subjects 1:1:1 300mg q 4 wks 150mg q 4 wks Placebo q 4 wks 300mg q 4 wks 150mg q 4 wks Placebo q 4 wks- If a relapse is confirmed then IFN is acceptable concomitant medication Led by Biogen Idec, study progressing well; anticipate running through 2009 Continued unmet need for MS and need for new treatments Prevalence* (2005): 524,700 cases (U.S., EU, Japan) * Market research data 9
Volociximab: unique anti-angiogenic agent Anti-alpha5-beta1 integrin mab a novel angiogenesis pathway Discovered and developed in-house P1 and P1/2 studies ongoing in ovarian and NSCLC In collaboration with Biogen Idec 10
Elotuzumab: novel anti-cs1 antibody Elotuzumab enhances bortezomib-mediated anti-tumor activity in an OPM2 model* Tumor Volume (mm 3 ) 3000 2000 1000 0 0 20 40 60 80 Study Day Elotuzumab Dose Days Bortezomib Dose Days Control Ab & PBS Elotuzumab & PBS Control Ab & Bortezomib Elotuzumab & Bortezomib Humanized antibody to CS1 Proven target expression in preclinical studies Three P1 trials underway In collaboration with Bristol-Myers Squibb * Data presented at ASH 2007. Elotuzumab was used at a suboptimal dose; bortezomib was used at the optimal dose. 11
PDL192: anti-tweak* receptor antibody Novel, humanized mab to the Tweak receptor, expressed in solid tumors Preclinical data presented at the EORTC meeting in October P1 study ongoing; potential in multiple tumor types Unpartnered program; worldwide rights maintained PDL192 has two proposed mechanisms of action: Directly inhibits the growth of some TWEAK-R-expressing tumor cells Recruits immune effector cells to kill tumor cells via antibody-dependent cellular cytotoxicity (ADCC) * TWEAK: tumor necrosis factor-like weak inducer of apoptosis 12
Facet Biotech: key collaborations Collaboration Products Cost and Profitsharing Development and Regulatory Milestones Sales-based Milestones Elotuzumab Option for PDL241 Shared global development costs: BMS 80% and PDL 20% U.S. profit split: greater portion of profits to PDL than represented by cost sharing percentage Elotuzumab: up to $480 million PDL241: $15 million if BMS opts in at completion of set preclinical studies Up to $230 million Elotuzumab: up to $200 million PDL241 (if BMS opts in): up to $200 million Daclizumab in MS Volociximab in all indications 50/50 co-development and cocommercialization Daclizumab: up to $250 million Volociximab: up to $300 million Volociximab: up to $100 million 13
Facet Biotech: portfolio management Maximize portfolio returns Evaluate each asset as an investment Applicable to both existing and prospective assets Establish a diversified and risk-balanced portfolio Important given inherent nature of biotech industry Focus on beating the odds Focused strategy Deep biological insight Pursue external assets with biological validation Disciplined diligence and financial modeling processes 14
Facet Biotech: value drivers for the next 12 months DAC MS (SELECT) P2 initiated Elotuzumab + Velcade P1 initiated 2009 financial outlook DAC MS (SELECT) P2 update Elotuzumab P1 results (3 trials) Elotuzumab + Revlimid P1 initiated BMS option on PDL241 M200 P1 NSCLC initiated PDL192 IND filed PDL192 P1 initiated M200 P1 NSCLC and ovarian results PDL192 P1 safety data 2008 2009 15
Facet Biotech: investment rationale Promising pipeline led by daclizumab P2 program in MS Early-stage programs focused in oncology Strong research based on validated biology Pursue candidates that are 12 months pre-ind Core platform technology in antibody engineering Solid financial position Well-capitalized with over $400 million Able to fund business operations for ~4 years 2009 cash utilization expected to be ~$110 million Strategic collaborations mitigate risk and provide significant milestone opportunities Explore new opportunities to augment existing pipeline Core capabilities Build a culture of innovation, performance and discipline 16