Pyc Therapeutics Limited · ASX:PYC
Pyc Therapeutics — Phylogica — Investor Presentation (March 2010)
36 slides from Pyc Therapeutics's investor presentation, Mar 22, 2010
Slide 1: Phylogica Ltd
Phylogica Ltd ASX: PYC For personal use only Paul Watt www.phylogica.com Sunday, 21 March 2010
Slide 2: Traditional path to drug development
Traditional path to drug development Conventional Pharma Model For personal use only +',-* 6!7* !"#$%&'()* 3%4"$"5)* 9:,#'*;* 9:,#'*<* 9:,#'*=* ./01"#,0%2* 7//(%&,8* 10-15 year cycle. Average cost = $1 Billion/drug +',-* 6!7* !"#$%&'()* 3%4"$"5)* 9:,#'*;* 9:,#'*<* 9:,#'*=* ./01"#,0%2* 7//(%&,8* >5,2
Slide 3: Traditional path to drug development
Traditional path to drug development Conventional Pharma Model For personal use only +',-* 6!7* !"#$%&'()* 3%4"$"5)* 9:,#'*;* 9:,#'*<* 9:,#'*=* ./01"#,0%2* 7//(%&,8* 10-15 !"#$%&'()* year cycle. Average +',-* 3%4"$"5)* cost = $1 Billion/drug 6!7* 9:,#'*;* 9:,#'*<* 9:,#'*=* ./01"#,0%2* 7//(%&,8* Aust
Slide 4: Traditional drug development pipelines are drying up
Traditional drug development pipelines are drying up 50 For personal use only No. new small molecules drugs/yr 33 17 0 2006 2008 2002 2004 1998 2000 1996 Nature Reviews Drug Discovery, Vol 9, p92, 2010 Numbers of conventional ‘small molecule’ drugs coming to market are diminishing Sunday, 21 March 2
Slide 5: Traditional drug development pipelines are drying up
Traditional drug development pipelines are drying up 50 For personal use only No. new small molecules drugs/yr 33 17 0 2006 2008 2002 2004 1998 2000 1996 Nature Reviews Drug Discovery, Vol 9, p92, 2010 Numbers of conventional ‘small molecule’ drugs coming to market are diminishing Sunday, 21 March 2
Slide 6: Cost of small molecule drug development are increasing exponentially
Cost of small molecule drug development are increasing exponentially 2.0 For personal use only Drug Costs (US$Billion) 1.5 1.0 0.5 0 1950 1970 1990 2010 Targets most amenable to treatment with conventional small molecule drugs are drying up. Cost to develop drugs against “difficult” targets increasi
Slide 7: Cost of small molecule drug development are increasing exponentially
Cost of small molecule drug development are increasing exponentially 2.0 For personal use only Drug Costs (US$Billion) 1.5 1.0 0.5 0 1950 1970 1990 2010 Targets most amenable to treatment with conventional small molecule drugs are drying up. Cost to develop drugs against “difficult” targets increasi
Slide 8: Industry trending towards early-stage drug discovery
The auth indicate changes in the factors influencing C. W Industry trending towards early-stage drug discovery R&D supply and demand. On the supply side, deals The au a 140 b 100 For personal use only 90 120 Proportion of assets 80 Number of deals Nature Reviews Drug Discovery, Vol 9, p183, 2010 100
Slide 9: Industry trending towards early-stage drug discovery
The auth indicate changes in the factors influencing C. W Industry trending towards early-stage drug discovery R&D supply and demand. On the supply side, deals The au a 140 b 100 For personal use only l Tr end Dea ly -sta ge 90 120 r Proportion of assets E a 80 Number of deals Nature Reviews Drug Di
Slide 10: Introduction
Introduction Specialist drug discovery company with unique capabilities to For personal use only 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 gr
Slide 11: Tight Capital Structure and Controlled Burn
For personal use only Tight Capital Structure and Controlled Burn Public (ASX:PYC) • 235.7 million Ordinary shares • 22.69 million Options • 1,340,000 convertible notes (which can convert to 26.8 million shares) Tightly held register • Top 12 shareholders hold more than 50% Cash on hand • (March 201
Slide 12: Biologics: The fastest growing class of new therapeutics
Biologics: The fastest growing class of new therapeutics For personal use only Sunday, 21 March 2010
Slide 13: Biologics: The fastest growing class of new therapeutics
Biologics: The fastest growing class of new therapeutics 1996 2015 For personal use only Small Molecules 2% 98% 50% 50% Biologics Sunday, 21 March 2010
Slide 14: Biologics: The fastest growing class of new therapeutics
Biologics: The fastest growing class of new therapeutics 1996 2015 For personal use only Small Molecules 2% 98% 50% 50% Biologics Biologics consist of • antibodies • proteins • peptides Sunday, 21 March 2010
Slide 15: Biologics: The fastest growing class of new therapeutics
Biologics: The fastest growing class of new therapeutics 1996 2015 For personal use only Small Molecules 2% 98% 50% 50% Biologics Biologics consist of • antibodies • proteins • peptides 2008 worldwide sales = $120 Million Sunday, 21 March 2010
Slide 16: Biologics: The fastest growing class of new therapeutics
Biologics: The fastest growing class of new therapeutics 1996 2015 For personal use only Small Molecules 2% 98% 50% 50% Biologics Biologics consist of • antibodies • proteins • peptides 2008 worldwide sales = $120 Million Phylogica has discovered a novel source of therapeutics peptides known as “Phy
Slide 17: Why are biologics attractive as a drug class?
Why are biologics attractive as a drug class? For personal use only Antibodies versus small molecules (conventional drugs) • less likely to have side effects • can hit more disease associated targets than conventional drugs • But antibodies are expensive and need to be delivered by injection Peptide
Slide 18: Advantages of Peptides over other biologics classes
Advantages of Peptides over other biologics classes Peptides have several advantages over larger biologics (eg. antibodies) For personal use only • patient friendly delivery - several marketed intranasal spray formulations • can be made synthetically at low cost • avoids additional costs due to anti
Slide 19: Addressing the challenge of peptide drug discovery
Addressing the challenge of peptide drug discovery The peptide therapeutics market is growing twice as fast as For personal use only the small molecule market • 33 marketed peptides comprising a 4 billion dollar market (excluding insulin market @ 14 billion alone) • 178 peptides in clinical developm
Slide 20: Phylomer Peptides
Phylomer Peptides ® Phylomers® represent a new class of peptides derived from natural For personal use only 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
Slide 21: Blocking disease proteins with protein fragments
For personal use only Blocking disease proteins with protein fragments Proteins are one of the key building blocks of cells Proteins in disease cells often have inappropriate interactions with each other Need to block inappropriate protein interactions to make cells healthy Phylomer peptides are par
Slide 22: A Novel Discovery Focused Business Model
For personal use only A Novel Discovery Focused Business Model Sunday, 21 March 2010
Slide 23: De-risking investment in drug development by focussing on drug discovery
De-risking investment in drug development by focussing on drug discovery Deal Deal For personal use only !"#$%&'()* !)5-405* +%./010$%2304-*!)-"* +',-* 6!7* !"#$%&'()* 3%4"$"5)* 9:,#'*;* 9:,#'*<* 9:,#'*=* ./01"#,0%2* 7//(%&,8* Deal Deal >'&'2?'*@5(',1#* model requires ownership of an drug discovery
Slide 24: Model provides access to long-term revenue streams
Model provides access to long-term revenue streams !"#$%&'()* !)5-405* +%./010$%2304-*!)-"* For personal use only +',-* 6!7* !"#$%&'()* 3%4"$"5)* 9:,#'*;* 9:,#'*<* 9:,#'*=* ./01"#,0%2* 7//(%&,8* >'&'2?'*@5(',1#* :2;5%4-*<'(04,0*600,* ='$0,-%40*!)#304-,* 6789,* >%#)$-#*?-50)3,* +%,-,* >0104@0,* acces
Slide 25: Discovery alliances – multiple revenue sources
Discovery alliances – multiple revenue sources Discovery Pharma Partnerships For personal use only 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
Slide 26: Discovery Partnerships: a marriage made in heaven
For personal use only Discovery Partnerships: a marriage made in heaven Small Biotech Big Pharma • Cash poor • Cash rich • Nimble • Slow Moving • Innovative • Conservative • Poor at clinical trials • Clinical trial experts • Poor at production/scale-up • Strong production/scale-up • Poor at marketin
Slide 27: Discovery Partnerships: a marriage made in heaven
For personal use only Discovery Partnerships: a marriage made in heaven Small Biotech Big Pharma • Cash poor • Cash rich • Nimble • Slow Moving • Innovative • Conservative • Poor at clinical trials • Clinical trial experts • Poor at production/scale-up • Strong production/scale-up • Poor at marketin
Slide 28: Successful Companies focused on Discovery-Alliance Model
Successful Companies focused on Discovery-Alliance Model Company Platform Market Value 2009 Listed For personal use only Revenues Morphosys Antibody Library Screening >US $500M €81M DE Evolva Library Screening/Small >US $400M CHF $11M SIX Molecule (2008) Evotec Genetic Library Screening/ >US $300M >
Slide 29: Galapagos: Large Alliances
For personal use only Galapagos: Large Alliances Sunday, 21 March 2010
Slide 30: M&A activity in biologics discovery field
For personal use only 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 prop
Slide 31: Intellectual Property
Intellectual Property integrated patent portfolio For personal use only 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
Slide 32: Phylogica’s Partners
For personal use only Phylogica’s Partners Sunday, 21 March 2010
Slide 33: Forthcoming Technical Milestones
Forthcoming Technical Milestones Construction of 3rd generation “Smart” Phylomer libraries For personal use only Demonstrated ability to improve Phylomer pharmacokinetics in vivo using standard approaches (PEG, HSA binding etc.) Proven efficacy of Phylomers in another (6th) animal model relevant for
Slide 34: Engineering Phylogica for accelerated success
Engineering Phylogica for accelerated success Deep business development pipeline with over 20 prospective For personal use only Pharma partners 3 more Big Pharma deals in late stage negotiation Phylogica now gets BD access at the highest (VP) level in Pharma Multiple international collaborations Con
Slide 35: Summary
Summary Phylogica controls a key drug discovery resource for the For personal use only Pharmaceutical industry: • Creators of new clues for therapeutics (drug leads) • Owns a unique drug discovery engine and source of drugs • Technology is validated, scalable and ready for growth Strong patent prote
Slide 36: Phylogica Ltd
Phylogica Ltd ASX: PYC For personal use only www.phylogica.com Sunday, 21 March 2010