Nxera Pharma Co., Ltd. · TSE:4565
Nxera Pharma — FY2020 Earnings Presentation
42 slides from Nxera Pharma's earnings presentation, Feb 15, 2021
Slide 1: FY2020 Financial Results
NON-CONFIDENTIAL FY2020 Financial Results 12-month period ended December 31, 2020 12 February 2021 | Sosei Group Corporation (TSE:4565)
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about Sosei Group Corporation and its subsidiaries (collectively, the “Company”) as of the date of this presentation. This material has been prepared solely for informational purposes and is not to be construed
Slide 3: Agenda
Agenda 1 FY2020 Financial Results 2 FY2020 Operational Highlights 3 Key Themes for the Future 4 FY2021 Strategic Outlook 5 Appendix Note: This material was created to explain the details of our company and is not intended to be used for investment decisions. In addition, the contents reflect the vie
Slide 4: FY2020 Financial Results
1 FY2020 Financial Results Chris Cargill, CFO 4
Slide 5: Another year of successful execution
Another year of successful execution Summary Financial Highlights for the 12 months ended 31 December 2020 Revenue of ¥8,842m ($83m) vs. ¥9,726m ($89m) in prior corresponding period, driven by progress 1 with existing collaborations, and effective execution of new partnerships and co-investments Cas
Slide 6: Cost control and sustainable R&D delivered a second consecutive year of profitable results
Our focus on cost control and sustainable levels of R&D investment delivered a second consecutive year of profitable results Revenue (JPY million) Cash Earnings Profit1 (JPY million) 9,726 8,842 2,904 2,846 12m to 31-Dec-19 12m to 31-Dec-20 12m to 31-Dec-19 12m to 31-Dec-20 Cash Operating Expenses
Slide 7: Collaborative partnerships and co-investments drove a balanced split of revenues
Our emphasis on collaborative drug discovery partnerships and co- investments drove a balanced split of revenues JPY million USD million Revenue by Type 12m ended 12m ended 12m ended 12m ended 31 Dec 2019 31 Dec 2020 31 Dec 2019 31 Dec 2020 3% 11% Revenue 9,726 8,842 89.2 82.8 10% Cash Cost of Sales
Slide 8: Positive operating cash flows and successful capital raising
Positive operating cash flows and a highly successful capital raising have us well positioned to invest in enhancing corporate value JPY million USD million Cash Flow Bridge (12m ended 31 Dec 2020) As of As of As of As of USD Millions 31 Dec 31 Dec 31 Dec 31 Dec 2019 2020 2019 2020 Goodwill & intang
Slide 9: Sustainable and balanced investing kept costs under control
Our commitment to sustainable and balanced risk and reward investing enabled us to keep costs under control Cash R&D expenses Cash G&A expenses Q3 2020 ¥4,200 to 4,700m ¥1,800 to 2,300m Guidance ¥3,411m ¥1,995m Actual Successful negotiations with suppliers to results Prudent cost management claw
Slide 10: Modest increases in investment to fuel programs and add partners
Modest increases in investment to fuel programs, add new major partners, and drive a step-up in our corporate valuation Cash R&D expenses Cash G&A expenses ¥4,000 to 5,000m ¥1,800 to 2,300m Increased investment in HTL’878 Continued build-out of Compliance Guidance selective M4 agonist program –
Slide 11: FY2020 Operational Highlights
2 FY2020 Operational Highlights Chris Cargill, CFO 11
Slide 12: Organic growth plan driving GPCR drug discovery
Organic growth plan driving our world-leading GPCR drug discovery OBJECTIVE ORGANIC GROWTH PLAN OBJECTIVE At least 2 new Continue to expand Preclinical Candidates expertise in GPCRs on average, Extend technology / Generate high quality every year platform leadership novel candidates OBJECTIVE OBJECT
Slide 13: Organic growth plan objectives met
Organic growth plan driving our world-leading GPCR drug discovery OBJECTIVES MET ORGANIC GROWTH PLAN OBJECTIVES MET Jan-20 – Orexin agonist H1 FY20 – Nomination of H4 scientific breakthrough, ant. candidate for Atopic triggering next tranche of Dermatitis Medicxi funding (Orexia, Inexia) H1 FY
Slide 14: 300th high-resolution GPCR structure solved
We continued to expand our expertise in GPCRs, having solved our 300th high-resolution structure from 30th GPCR drug target Significant untapped GPCRome opportunity for years to come – StaR® technology is enabling us to unlock the potential of GPCRs ~400 GPCR targets ~75% Not yet drugged Antagonist
Slide 15: StaR technology and SBDD platform enable productive drug discovery
Our StaR® technology and SBDD platform enables productive drug discovery and generates multiple high quality candidates LAST 10 YEARS (StaR® / SBDD GENERATED) TODAY MEDIUM TERM OUTLOOK DRUG DISCOVERY EARLY DEVELOPMENT LEAD OP TECHNOLOGY DRUG DISCOVERY 4 compounds Generated Produced Deliver at least
Slide 16: SBDD platform supporting COVID-19 research
We leveraged our SBDD platform to support COVID-19 research in 2020, discovering a potent series of broad spectrum anti-virals Program focused on inhibitors of SARS-CoV-2 main protease, a highly conserved protein essential for viral replication ACE2 TMPRSS2 Endosomal entry Exocytosis Structure-bas
Slide 17: New partnered and in-house programs added to deep pipeline
We added multiple new partnered and in-house programs to our deep pipeline, which will drive more collaborations and value creation Pre-Disc. / 20+ Preclinical development 13 Phase 1 7 Phase 2 2 Marketed 4 Discovery Multi-target Single target GPR35 ag. CGRP ant. A2A ant. A2a ant. combo(s) Ultibro® B
Slide 18: Three new pharma partnerships added in 2020
We continued to make excellent progress in collaborative drug discovery, adding three new pharma partnerships in 2020 Partner Active Partnered Program Therapeutic Area UF / Near Term Payments Potential deal value1 2020 Collaboration and Licensing Gastrointestinal, $44m $480m+ Agreement for GPR35 ago
Slide 19: Tempero Bio co-owned investment with Aditum Bio
We created Tempero Bio, an exciting co-owned investment with the global pharma industry leaders at Aditum Bio Tempero Bio to advance the clinical development of mGlu5 NAM program in neurological diseases Tempero Bio – a new company created to develop the mGlu5 NAM program, including candidate HTL142
Slide 20: Strategic growth plan driving corporate value expansion
Strategic growth plan driving corporate value expansion OBJECTIVE STRATEGIC GROWTH PLAN OBJECTIVE MET Add new technology Capital raise capabilities to our completed to pursue SBDD platform revenue focused deals in 2021 Seek out revenue- Invest / collaborate in generating opportunities novel tech
Slide 21: First step into Targeted Protein Degradation with Captor
We have taken our first step into the exciting area of Targeted Protein Degradation via a strategic collaboration with Captor Strategic technology collaboration with Captor Therapeutics focused on targeted GPCR degradation Explores the potential of our unique combination of technologies to develop a
Slide 22: Covering ~50% of the drug discovery landscape
We are covering ~50% of the drug discovery landscape through the tactical expansion of our strategic collaborations Established Modality Future potential Modality Small Molecule Antibody/Protein Peptide TPD Gene Cell … therapy therapy 68% 25% 7% GPCR 33% Partner(Specific AI area) Partner Partner Par
Slide 23: Key themes for the future
3 Key themes for the future - Addressing challenges in drug discovery - Being an ESG leader Shinichi Tamura, Chairman and CEO 23
Slide 24: Three big challenges in drug discovery and development
Three big challenges in drug discovery and development KEY OPPORTUNITY Choosing Discovering Conducting the right target a therapeutic agent the right patient studies • Will modulating the target • Identifying a modulator with • Demonstrating the value of affect disease? the appropriate profile the a
Slide 25: New target ID and validation framework
We have created the new target ID and validation (TIV) framework to accelerate our quest to choose the right targets To support the identification and validation of new drug GPCR targets Bioinformatics AI / Machine Learning Aim across our core therapeutic areas (GI, Proteomics immunology, immuno-onc
Slide 26: TIV Framework mid-term plan for investments and collaborations
New TIV Framework - mid-term plan to pursue investments and external collaborations to hunt novel first-in-class drug targets 2021 2022 2023 2024 INTERNAL THERAPEUTIC AREA INITIATIVES PRE-DISCOVERY DISCOVERY Therapeutic Area PE BMS HID H2L LO MAXIMIZE EXISTING COLLABORATIONS TV Target Target Valid
Slide 27: Commitment to ensure a sustainable future for all
Our commitment to ensure a sustainable future for all Sustainable Development Goals adopted by the Sosei Heptares is undertaking initiatives focused on United Nations (Sep-15) 10 of the 17 Sustainable Development Goals E Environment S Social G Governance E SUSTAINABILITY COMMITTEE S CHARITY COMMITTE
Slide 28: FY2021 Strategic Outlook
4 FY2021 Strategic Outlook Shinichi Tamura, Chairman and CEO 28
Slide 29: Priority objectives for FY2021
Priority objectives for FY2021 Progress the organic Execute on the strategic Being an ESG leader growth plan growth plan • Promote sustainable ESG • Extend technology / platform • Seek out revenue-generating practices and policies across leadership opportunities global business • Generate high quali
Slide 30: Thank you for continued investment and interest!
Thank you for continued investment and interest! 1 2 3 4 5 6 Maintain technology Enter new high value Achieve important Seed multiple new Advance selected Create new asset- and platform drug discovery and milestones on in-house drug in-house programs centric spin-out leadership in our de
Slide 31: Appendix: Significant events post FY2020 close
5A Appendix Significant events post FY2020 close 31
Slide 32: Bolstered drug discovery capabilities with technology collaborations
Bolstered drug discovery capabilities with technology collaborations Collaborate in novel technologies Expand drug target classes beyond GPCRs Collaboration with PharmEnable to leverage its proprietary artificial Collaboration with Metrion Biosciences to explore the potential of intelligence-enabled
Slide 33: Regained larger muscarinic agonist portfolio from Allergan
We regained a larger and strengthened selective muscarinic agonist portfolio following over $55m of investment from Allergan Program Compound Stage Sosei Heptares receives all programs under development, together with the associated IP and HTL’878 Ph 1 preclinical and clinical data generated from
Slide 34: Potential to deliver transformative new treatments for patients
Potential to deliver transformative new treatments for patients Muscarinic M4 and M1 receptors are validated targets for psychosis and cognition Muscarinic M4 and M1 receptors represent Xanomeline, the M4/M1 preferring agonist, achieved validated targets for the treatment of psychosis human Proof of
Slide 35: Karuna and Cerevel advancing supportive muscarinic stories
Potential to deliver transformative new treatments for patients Karuna Therapeutics and Cerevel Therapeutics are advancing supportive muscarinic stories KarXT (M1/M4 agonist, M2/M3 antagonist) CVL-231 (M4 PAM) Karuna Therapeutics’ KarXT1 and Cerevel Therapeutics CVL-2312 have reawakened investors an
Slide 36: M4 agonist program HTL'878
Potential to deliver transformative treatments for patients M4 agonist program a potential next-generation, first-in-class treatment for SZ HTL’878 Using our proprietary StaR® technology, we have developed Highly selective M4 receptor agonist for the treatment crystallography systems for of psychosi
Slide 37: Schizophrenia remains a huge unmet medical need
Potential to deliver transformative treatments for patients SZ remains a huge unmet medical need Large market with …Despite no innovation Huge opportunity for HTL’878 blockbuster sales profiles… in 70 years Current treatments use the same ~20M SZ patients worldwide MOA from the 1950s Selective M4
Slide 38: Appendix: Revenue and Pipeline progression
5B Appendix Revenue and Pipeline progression 38
Slide 39: Revenue breakdown by type (IFRS)
Revenue breakdown by type (IFRS) USD (M) Upfront (UF)/Milestone (MS) revenue recognized in the full Financial Year1 Revenue Revenue Date FY19 UF/MS Event Date FY20 UF/MS Event 89.2 (USDm) (USDm) 82.8 Jan-19 AZD4635 Phase 2 start 15.0 Feb-20 Daiichi Sankyo lead identified 1.5 9.5 2.5 8.9 Feb-19 Inexi
Slide 40: Progression of Partnered Pipeline
Progression of Partnered Pipeline FY2019 stage FY2020-Now progress Compound Target / Mechanism of Action Modality Indication Partner Disc. PCC Ph1 Ph2 Ph3 App Mkt Traditional Out-licensing Collaborations Seebri® Breezhaler® LAMA SME COPD Ultibro® Breezhaler® LAMA+LABA SME COPD Enerzair® Breezhaler®
Slide 41: Progression of In-house Pipeline
Progression of In-house Pipeline FY2019 stage FY2020-Now progress Compound Target / Mechanism of Action Modality Indication Originator Dis PCC Ph1 Ph2 Ph3 App Mkt. In-house Programs (Not yet partnered) HTL0016878 Muscarinic M4 agonist SME Neurology diseases HLT0018318 Muscarinic M1 agonist SME Neuro
Slide 42: Locations
Locations SOSEI HEPTARES PMO Hanzomon 11F Steinmetz Building North West House 2-1 Kojimachi, Chiyoda-ku Granta Park, Cambridge 119 Marylebone Road Tokyo 102-0083 CB21 6DG London NW1 5PU Japan United Kingdom United Kingdom