Transcript Today*s Presentation

Harnessing Biodiversity for Peptide Therapeutics
Dr Paul Watt, CEO
Mr Nick Woolf, CFO & VP Corporate Development
19 June 2013
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Disclaimer
The purpose of the presentation is to provide an update of the business of Phylogica Limited (ASX:PYC)
[‘Phylogica’]. These slides have been prepared as a presentation aid only and the information they contain
may require further explanation and/or clarification. Accordingly, these slides and the information they
contain should be read in conjunction with past and future announcements made by Phylogica and should
not be relied upon as an independent source of information. Please contact Phylogica and/or refer to the
Company's website for further information.
The views expressed in this presentation contain information derived from publicly available sources that
have not been independently verified. No representation or warranty is made as to the accuracy,
completeness or reliability of the information.
Any forward looking statements in this presentation have been prepared on the basis of a number of
assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about
future events are subject to risks, uncertainties and other factors, many of which are outside Phylogica’s
control. Important factors that could cause actual results to differ materially from assumptions or
expectations expressed or implied in this presentation include known and unknown risks. Because actual
results could differ materially to assumptions made and Phylogica’s current intentions, plans, expectations
and beliefs about the future, you are urged to view all forward looking statements contained in this
presentation with caution.
This presentation should not be relied on as a recommendation or forecast by Phylogica. Nothing in this
presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in
any jurisdiction.
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About Phylogica
 Listed on Australian Stock Exchange in 2005
 Provide peptide drug discovery services to the Pharmaceutical industry
 Own unique proprietary class of peptide therapeutics (Phylomers®)
 Broad IP estate with multiple granted patents from 11 patent families
 ‘Discovery Alliance’ business model
 Alliances with Roche/Genentech, MedImmune, Pfizer and Janssen
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Top-20 shareholders
Position
Holder name
Shares
% of issued
1
Hockings Family
35,251,999
7.55%
2
Telethon Institute
20,605,501
4.41%
3
Andrew Swift
18,186,088
3.90%
4
Ascent BioMedical
16,949,152
3.63%
5
Paul Watt
16,758,730
3.59%
6
John Jelbert
11,492,398
2.46%
7
Anthony Torresan
9,400,000
2.01%
8
Richard Hopkins
8,958,779
1.92%
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Nick Woolf
7,871,956
1.69%
10
Yellowrock PL
7,761,298
1.66%
11
Achim Schenk
6,974,535
1.49%
12
Paul Fielding
6,935,000
1.49%
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Fitel Nom Ltd
6,141,230
1.32%
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Bonaddio Family
6,120,801
1.31%
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Peter Hui
5,200,000
1.11%
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JMN SVCS
4,050,000
0.87%
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Rossbel PL
4,000,000
0.86%
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Red Boot
3,483,400
0.75%
20
Baron Ward
3,220,000
0.68%
199,360,867
42.70%
Top-20
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Leadership and experience
Dr Douglas Wilson - Chairman
• Former Senior Vice-President, Medicine for Boehringer Ingelheim
• Overseen multiple drugs at all phases of development
• Overseen many drugs successfully to the market in the USA
Dr Paul Watt – CEO
• Commonwealth overseas scholarship recipient; Doctorate at the University of Oxford,
• >45 publications, including several high-impact papers, inventor on 20 patent families
• Post Doctoral appointments at Oxford and Harvard Universities
• Over 10 years commercial biotech experience
Mr Nick Woolf – CFO & VP Corporate Development
• 18 years experience in biotech industry, equity research & investment banking
• Previously Chief Business Officer of Oxford BioMedica plc in the UK
• Former Head of European Biotech Equity Research at ABN Amro
• Qualified accountant and MA in Chemistry from the University of Oxford
Dr Richard Hopkins – COO & VP Research & Development
• Doctorate from Murdoch University, Western Australia
• Over 10 years commercial biotech experience
• Overseen development of the Phylomer platform.
• Over 20 publications and inventor on 13 patent families
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Phylomers derive from parts of biodiverse proteins
 Encoded from >35 biodiverse genomes derived from environments such
volcanoes, geysers and undersea vents
 Phylomer libraries contain >400 billion distinct peptide sequences
 Pre-selected by evolution to allow survival, such as thermal stability
 Dominant intellectual property over entire drug class
Watt PM (2006) Nature Biotechnology 24 (2):177-83
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Sourced from different evolutionary species
 Worlds richest source of diverse natural secondary and tertiary structures
Watt PM (2006), Nature Biotechnology, Vol 24 (2):177-83
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Uniquely integrated capabilities of Phylomer platform
Phylogica’s unique discovery platform:



Discover and validate new therapeutic targets found inside cells (Phenomica)
Develop therapeutic peptide leads against such targets
Citron
(Citron Homology Domain)
Deliver therapeutic cargoes into cells with cell penetrating peptides
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Cell penetrating Phylomers: gaining access to intracellular
targets
Phylomers can expand the druggable landscape by >10-fold!!
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Rapid growth in peptide drug market
 Peptides are one of fastest growing drug classes
– 60 marketed peptides represent $13 billion market
– Peptide market growing twice as fast as small molecules
– New technologies are addressing traditional challenges
for peptide development (eg: short half-life, poor
stability)
– Growing Pharma interest: ~140 peptides in clinical
development
 Unmet need for therapeutic peptides against new
target classes
Chemical & Engineering News
May 30, 2011
Improving Peptides: Small firms
develop better peptide drug
candidates to expand this
pharmaceutical class and attract
big pharma partners (picture of
Phylomer)
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Demand for novel approaches to peptide drug discovery
Limited success with
conventional approaches
has increased demand for
novel approaches
Find new structures within proteins
selected by evolution for diversity,
stability and biological compatibility
Peers
Design peptide inhibitors that mimic
known natural interfaces
(e.g. Kai, Aileron, Trimeris)
Guess peptide sequence from random
combinatorial libraries
(e.g. Affymax, Dyax, Isogenica, Ra,
Bicycle, Peptidream)
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Focus on near-term revenue

Fee-for-service screening against third party targets

Building long-term value through milestones and royalties

Increasing deal economics and share of down-stream value

Surplus cash flow funding platform enhancements and in-house R&D

Monetizing in-house Phylomers (eg: skincare cosmetics with Le Métier de Beauté)
Discovery
Humans
Phylogica
Humans
Co-development/Partner
Co-development path
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Collaborations and commercial partners validate
Phylogica’s Phylomers

Janssen (Johnson & Johnson)
–
–
–

Pfizer
–
–
–

Collaboration to discover antibiotic peptides in Aug 2010
Progressed to final stage of research plan in Nov 2011
Total deal value of up to US$100M & royalties on worldwide sales
Roche/Genentech
–
–

Collaboration to discover peptide vaccines in Dec 2010
Milestone payments triggered in Dec 2011 and May 2012
Total deal value of up to US$135M & royalties on worldwide sales
MedImmune (AstraZeneca)
–
–
–

Collaboration to discover cell-penetrating peptides in Dec 2011
Multi-product agreement with minimum of 18 months research funding
Collaboration expanded in Jan 2013
Collaboration to discover brain delivery peptides in Dec 2009
Expanded to discover peptides that cross blood-brain barrier in May 2011
Le Métier de Beauté
–
License to commercialize a skin-repair peptide in cosmetic products in Sep 2012
Scope of deals underscores breadth of Phylomer platform
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Extensive pipeline of partnering opportunities
Discussions ongoing with prospective or existing partners on new deals
Phylomer Platform
Opportunity
In-House Activities & Partnerships
Peptide drugs against intractable
intracellular targets
- Initiating new screens against high-value intracellular targets
Cell-penetrating & organ-specific
delivery peptides (CPPs)
- 2nd generation libraries containing pathogenic genomes that penetrate
specific cell types
Increasing
Pharma interest
- Janssen deal to discover tissue-specific CPPs
Peptide drugs against intractable
extracellular targets
- In-house anti-CD40L program for Lupus & rheumatoid arthritis
- Developing new screening assays against high-value GPCRs1
Anti-microbial peptides
- In-house discovery program against gram-negative bacteria
Phenomica target identification
(ID) & validation
- Validated platform with collaborators at Cambridge University
- In-house target ID program against high-value cancer pathway
RNAi delivery peptides (RNAPs)
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- In-house proof-of-concept program to show RNAi delivery
G protein-coupled receptors are one of the largest classes of drug targets. These receptors are key regulators of cell biology, but some
have been challenging to hit with conventional small molecule or antibody drugs because of their complex biological shapes
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Three overlapping strategic phases
1.
Partnering: generate near-term revenue from discovery alliances
2.
Technological leadership: enhance platform through value-adding upgrades
3.
In-house drug development: build value by advancing internal products
Revenue Generation
Technological Enhancements
In-house Pipeline
2009
2011
2013
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Anticipated technology milestones
 Each milestone provides value-adding enhancement to Phylomer platform
- Boosts our attractiveness to discovery alliance partners and potential acquirers
Technology
Purpose
Estimated
validation date
Endosomal Escape Trap
Identifying new generation cellpenetrating peptides
Q4 FY2013
Functional CPP Trap
Selecting peptides that have biological
function
Q4 FY2013
Structure Trap
Enriching libraries for drug-like
structures
Q1 FY2014
Structure Clamp
Locking transient structures into stable
conformations
Q1 FY2014
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Comparable company: Peptidream Inc.
 Raised $50m in IPO at ¥2,500 giving market cap of $330m
 Trading on Mothers Board in Tokyo – 1st day of trade 11th June 2013
 Closing price after three days of ¥ 13,010 giving market cap of $1.7bn
1250000%
¥
1050000%
850000%
650000%
450000%
250000%
IPO
DAY ONE
DAY TWO
DAY THREE
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Phylogica vs. Peptidream

PeptiDream's Peptide Discovery Platform System enables incorporation of modified
unnatural amino acids into peptide libraries

PeptiDream has active discovery deals with nine companies, including Novartis, Ipsen,
MedImmune and Amgen – deals are of similar size and economics to PYC’s deals
Phylogica
Peptidream
ASX (PYC)
Tokyo (4587)
2003
2006
Number of employees
30
60
Number of partnerships signed
4
9
$2 million
$9 million
Loss $4 million
Profit $0.1 million
$3 million
$10 million (pre-IPO)
IPO
March 2005
June 2013
Pre-money valuation at IPO
$16 million
$278 million
Current valuation
$10 million
$1.8 billion*
Listing
Founded
Revenue 2012
Net profit/loss 2012
Cash 31/03/2013
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*at market close 17 June 2013
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Summary
 Assembled world-class peptide drug discovery platform – enormous value
 Patent protection on worlds largest source of natural peptides and screening
technologies
 Successfully validated ‘Alliance Model’ with four blue chip partners
 Anticipate near-term revenue growth and cash sustainability
 Building value through technical enhancements and in-house R&D
 Peer comparison provides first time indication of potential value
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Dr. Paul Watt
Chief Executive Officer
Tel: +61 8 9489 7777
Fax: +61 8 9489 7700
Mobile: +61 421 550 213
[email protected]
Contact Details
www.phylogica.com
Nick Woolf
CFO, VP Corporate Development
Tel: +61 8 9489 7777
Fax: +61 8 9489 7700
Mobile: +61 417 986 005
[email protected]