Transcript ppt
Phylogica Ltd ASX: PYC Doug Wilson www.phylogica.com Introduction Specialist drug discovery company with unique capabilities to identify novel drug candidates (prototype drugs) Proprietary technology based on world’s largest and most structurally diverse peptide library of drug-like compounds Low–risk strategy to drive revenue growth and accelerate profitability through technology licensing and fee-for-service drug discovery Initiated commercialisation phase – progressing multiple deal opportunities with major pharmaceutical companies Secured key agreement with Roche, Europe’s largest pharma company, with potential to generate substantial income Experienced management team with required skills to execute deals and commitment to maximise shareholder value Traditional drug development pipelines are drying up Numbers of conventional ‘small molecule’ drugs coming to market are diminishing Biologics: The fastest growing class of new therapeutics 1996 2% 98 % 2015 50% 50% Small Molecules Biologics Biologics consist of • antibodies • proteins • peptides 2008 worldwide sales = $120 Billion Phylogica has discovered a novel source of therapeutics peptides known as “Phylomers®” Drug Costs (US$Billion) Cost of small molecule drug development are increasing exponentially Targets most amenable to treatment with conventional small molecule drugs are drying up. Cost to develop drugs against “difficult” targets increasing exponentially • • ® Phylomer Peptides Phylomers® represent a new class of peptides derived from natural protein fragments encoded by biodiverse ancient bacterial genomes Phylomer libraries contain billions of distinct peptides from diverse branches of the evolutionary tree The libraries are made from genomes of bacteria, many of which live in extreme environments like volcanic streams, geysers and deep sea volcanic vents Phylomer structures are pre-selected by evolution to allow survival High thermal stability is a desirable characteristics of drugs Watt PM (2006) Nature Biotechnology 24 (2):177-83 Advantages of peptides over other biologics classes Peptides have advantages over larger biologics (eg. MAbs) • patient friendly delivery - several marketed intranasal spray formulations • can be made synthetically at low cost • avoids additional costs due to antibody-associated ‘royalty stack’ • can be delivered into cells • can exhibit good tissue penetration due to smaller size Antibody (~150 kilodaltons) Phylomer (~3 kilodaltons) Addressing the challenge of peptide drug discovery Peptide market growing nearly twice as fast as small molecules • 33 marketed peptides represent $4 billion market (excluding insulin) • 178 peptides in clinical development • 400 peptides in advanced preclinical development (tip of the iceberg) • virtually all peptides come from analogues of natural peptides Phylogica has developed next generation of peptide therapeutics • most diverse set of peptide structures available • bigger pool of different structures to choose compounds from • libraries yield best quality and quantity of drug prototypes available Traditional path to drug development Big Pharma 10-15 year cycle, costly Traditional Biotech Model Most Australian biotech’s can progress only 1-2 candidates High risk: requires long-term investment and mostly fails De-risking investment in drug development by focusing on drug discovery Proprietary peptide libraries and screening systems for drug discovery Maximizing near-term revenue growth through drug discovery alliances Anticipate 3-4 deals required to reach cash flow sustainability Entered first major drug discovery alliance with Roche in December 2009 Model provides access to long-term revenue streams Building long-term value through milestones and royalties Objective to secure an increasing share of down-stream value in progressive deals Discovery alliances – multiple revenue sources Discovery Pharma Partnerships Value Per Drug Target (US$) Upfront license fee $500K Contract Discovery (3-4 FTE’s/yr) $750K- $1M Milestone Payments $1M - $100M Royalties usually single digit % Preclinical Licenses of Internal Drug Leads Upfront fee Milestone Payments Seven to eight figures Royalties Large Strategic Alliance Around Disease Areas Ablynx/BI $1.8 Billion Galapagos/Merck $1.0 Billion Morphosys/Novartis >$600M Successful companies focused on discovery-alliance model Company Platform Market Value 2009 Revenues Listed Morphosys Antibody Library Screening >US $500M €81M DE Evolva Library Screening/Small Molecule >US $400M CHF $11M (2008) SIX Evotec Genetic Library Screening/Small Molecule >US $300M >€40M Frankfurt/Nasdaq Galapagos Genetic Library Screening/Small Molecule >US $380M €100M €2.4B Listed on EuroNext Galapagos: major alliances Phylomer hits belong to multiple structural families: diversity of shapes Bordetella: (40L_0716) Haloarcula: (40L_0735) Homologous Crystal Structure Bacteroides: (40L_0859) S. enterica. (dTDP-D-glucose 4,6-dehydratase) 48% ID E. coli. (Ferric siderophore receptor) 98% ID All SCOP Classes Represented B. stearothermophilus (Alpha-L-arabinofuranosidase) 36% ID Intellectual Property integrated patent portfolio Phylogica owns the most comprehensive collection of peptide structures found in nature Patents cover methods of making and screening Phylomer libraries and composition-of-matter on peptides and the libraries themselves 16 patent families, 26 granted/ allowed patents and 27 patent applications covering the markets of US, Europe, Japan and Australia Well-positioned for commercial success Extensive evaluation studies validate the high quality of Phylomer library hits Multiple in vivo efficacy studies support therapeutic potential of Phylomer drug candidates Versatility of libraries endorsed by multiple international collaborations Deal discussions progressing with >20 prospective pharma partners Late-stage negotiations with three major pharma companies Developing new generation Phylomer libraries to expand discovery platform Building screening capabilities for future strategic alliances M&A activity in biologics discovery field Eight acquisitions of companies with biologics discovery libraries in less than 2 years Average valuation at acquisition of A$450M 62% of companies acquired at pre-clinical stage Pharma values drug discovery engines with associated proprietary drug libraries Phylomers: a versatile toolbox for drug discovery Summary Unique drug discovery resource for pharmaceutical industry Technology is fully validated, scalable and optimized for commercialization Broad patent protection for entire class of drugs Initiated commercialization phase, three late-stage deal negotiations Strategy for near-term profitability driven by fee-for-service business model Objective to secure an increasing share of down-stream value in progressive deals Potential exit opportunities via trade sale or major strategic alliance Phylogica Ltd ASX: PYC www.phylogica.com