Sorrento Therapeutics, Inc. · OTC:SRNE
Sorrento Therapeutics — Investor Presentation (April 2019)
27 slides from Sorrento Therapeutics's investor presentation, Apr 15, 2019
Slide 1: Getting Back to Normal - Scilex Corporate Presentation April 2019
Getting Back to Normal Scilex Corporate Presentation April 2019 Non - Confidential 1
Slide 2: Forward Looking Statements
Forward Looking Statements Some statements in this presentation are, or may be considered, forward - looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions, among others, generally identi
Slide 3: Scilex Corporate Overview
Scilex Corporate Overview Merger of 2 non - opioid pain focused companies (Scilex & Semnur ) in March 2019 : - G lobal leader in non - opioid pain management with commercial and late stage products with c ompelling synergies on multiple fronts - Exisiting 100+ highly experienced pain - focused sales
Slide 4: Commercial Non-Opioid Pain Company with Late-stage Programs in Large Markets
Commercial Non - Opioid Pain Company with Late - stage Programs in Large Markets with High Unmet Need Blockbuster Potential With Limited Capital Required for Commercialization Established Reimbursement Access Strong Proprietary Platform with High Barriers to Entry Worldwide Commercial Rights to All
Slide 5: Non-Opioid Best In Class Pain Pipeline
Non - Opioid Best In Class Pain Pipeline Source: SCILEX Pilot PK Phase 1 Phase 2 Phase 3 NDA Filing Approved Milestones ZTlido ® 1.8% (36 mg lidocaine) US Strategy ▪ NDA approval February 28, 2018 ZT lido ® 5.4% (108 mg lidocaine) • Clinical studies planned in 2019 SP - 102 Dexamethasone sodium phos
Slide 6: Significant Near-Term Milestones
Significant Near - Term Milestones ▪ Multiple clinical milestones for all programs expected in the next 12 months ▪ SP - 102 Phase 3 trial completion and data readout ▪ ZTlido ® 3X tri al start for new indication ▪ In addition, corporate development milestones may be achieved with potential collabor
Slide 7: Target physician consists of a mix of specialists, concentrated in high volume clinics
Target physician consists of a mix of specialists, concentrated in high volume clinics 7 Source: Campbell Alliance Market Research; Clinical Guidelines: Lumbar Disk Herniation with Radiculopathy. NA Spine Society, 2012. http://www.guideline.gov/content.aspx?id=46414. Primary Research. 32% 16% 27% 1
Slide 8: Getting Back to Normal: ZTlido Product Overview
Getting Back to Normal ZTlido ® Product Overview
Slide 9: ZTlido Overview
ZT lido ® Overview ZT lido ® (lidocaine topical system 1.8%) is a branded, non - aqueous topical lidocaine patch indicated for the treatment of pain associated with PHN 1 Estimate from IMS Health Source: SCILEX *AAN guidelines retired 9
Slide 10: ZTlido 1.8% achieved bioequivalence to Lidoderm 5%
In clinical trials, ZTlido ® with a 1.8% concentration of 36 mg of lidocaine achieved bioequivalence to Lidoderm 5% of 700 mg ZTLIDO 1.8% delivers the same amount of lidocaine as Lidoderm ® 5% 2 ZTLIDO 36 mg ~15 mg lidocain e Lidode r m ® 700 mg ~15 mg lidocain e ZTlido ® 1.8% — proven bioequivalenc
Slide 11: ZTlido Clinical Data: Adhesion Study vs. Lidoderm
ZT lido ® Clinical Data: Adhesion Study ZT lido ® v s . Lidoderm ® Post - hoc analysis of ADH - 002 with Percent Adhesion scoring 10
Slide 12: ZTlido Clinical Data: Adhesion Study vs. Generic Mylan
10 Time (Hours) 0 3 6 9 12 % Adhesion 0 10 20 30 40 50 60 70 80 90 100 110 ZTlido 1.8% Generic Lidocaine Patch 5% N=24 90% Adhesion 50% Adhesion ZTlido ® Clinical Data: Adhesion Study v s . Generic Mylan • ZTlido ® 1.8% maintained a mean adhesion of ≥90% over the 12 - hour treatment period • Generic
Slide 13: Lidocaine patch market overview and unmet need
The lidocaine patch market was ~3M scripts in 2017 and we forecast growth to be driven by population growth • Approximately 120 million prescription lidocaine patches were sold in 2017 • Generic lidocaine patches drive market volume, accounting for >95% of TRx in 2017 • Long - term future volume gro
Slide 14: Commercial Strategy for the Launch of ZTlido 1.8%
Commercial Strategy for the Launch of ZT lido ® 1.8% • SCILEX has built a dedicated field force of 100 highly experienced sales representatives • Targeting PCPs, pain specialists, and neurologists with this field force Sales • SCILEX is initially targeting the top plans responsible for most Rxs • In
Slide 15: Commercialization Strategy for ZTlido Franchise
Commercialization Strategy for ZT lido ® Franchise ZT lido ® 1.8% • Approval in US on February 28, 2018 • Launched in October 2018, supported by personal and non - personal Sales & Marketing efforts • 100% share of voice in the lidocaine patch market with no actively marketing competition • Potentia
Slide 16: Getting Back to Normal: ZTlido 5.4% - Low Back Pain
Getting Back to Normal ZTlido ® 5.4% - Low Back Pain
Slide 17: ZTlido 5.4% Opportunity
$7 B $37 B $41 B 2021 = $48.2 B 2015 = $44 B S o ur c e: IQVIA and Scilex InternalResearch ZTlido ® 5.4% Opportunity CAGR ~ 2% $7.2 B • Expanding and aging market with inadequate treatment for chronic pain including low back pain • Innovative, non - opioid, non - addictive analgesic • Significant po
Slide 18: Getting Back to Normal: Lumbar Radicular Pain
Getting Back to Normal SP - 102 Lumbar Radicular Pain
Slide 19: Opportunity Summary
SP - 102 – Opportunity Summary Developing SP - 102 as a non - opioid injectable therapeutic for low back pain Novel gel formulation, optimized for epidural injection Novel biocompatible excipient enables extended local effect On track to be the first FDA - approved epidural steroid product Currently
Slide 20: On track to be the first steroid formulation with an FDA-approved label for back pain
SP - 102: On - track to be the first steroid formulation with an FDA - approved label to treat back pain Well - tolerated. Key viscous excipient, long history of use including safety and safer repeat injections 19 ᪵ ᪵ Fast acting onset of effect with less spread SP - 102 Product Features ᪵ Potent no
Slide 21: Status: Progress towards NDA filing in 2020
SP - 102 Status: Significant preclinical, clinical, and CMC progress towards NDA filing in 2020 Clinical / Regulatory / Commercial Timelines and Strategies Preclinical hydrodynamic study in pigs confirmed extended local effect with novel formulation Completed Broad - based toxicology studies includi
Slide 22: CLEAR Phase 3 Study: Landmark ESI study
SP - 102 CLEAR Phase 3 Study: Landmark ESI study with final data expected Q1 - 2020 21 Epidural SP - 102 injection N=200 Intramuscular saline injection (placebo) N=200 Optional repeat SP - 102 injection Optional repeat SP - 102 injection Randomization (1:1) Inclusion Radicular leg pain episode ( 4 -
Slide 23: Market Assessment: Associated Conditions and Pain Market Trends
SP - 102 Market Assessment: Associated Conditions Pain Market Trends • Significant Indication Overlap – Spinal Stenosis can be caused by a herniated or bulging disc – Disc degeneration can lead to spondylolisthesis and disc herniation • Inconsistent Diagnoses – Imaging scan is required to determine
Slide 24: Expected to Obtain Medicare Reimbursement Similar to Other Injectables
SP - 102 Expected to Obtain Medicare Reimbursement Similar to Other Injectables • Good case for economic benefits associated with use of epidural steroid injections to defer more complicated treatments, such as opioids or surgical interventions • Medicare coverage expected and likely followed by pri
Slide 25: Competitive advantage: Patents and Supply Relationships
SP - 102 has competitive advantage due to Significant Investments in Patents & Supply Relationships Intellectual Property Beyond 2036 Proprietary Excipient with No Generic Equivalent Gel Formulation, Efficacy Driven By Local Effects Limited Manufacturing Capacity & Know - How for Pre - Filled Viscou
Slide 26: Executive Management Team
Executive Management Team Names Position Experience Jaisim Shah Director, Chief Executive Officer ▪ 25+ years of senior management experience in the industry ▪ Lead commercialization of multiple blockbusters (Rituxan ® , Abilify ® , Pegasys ®, BuSpar ® , Stadol ®, Tequin ® , Cardene IV ® ▪ CEO, Semn
Slide 27: Board of Directors
Board of Directors Names Position Experience Henry Ji, Ph.D. Chairman ▪ 25+ years of experience in the industry ▪ Chair & CEO of Sorrento Therapeutics ▪ Senior positions at CombiMatrix , HGSI & Stratagene Jaisim Shah Director and CEO of Scilex Holding ▪ CEO of Semnur & Scilex Pharmaceuticals, Board
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