Slide 1: H1 FY2023 Financial Results
NON-CONFIDENTIAL H1 FY2023 Financial Results Six-month period ended June 30, 2023 4 August 2023 | 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 Financial Results 2 Operational Highlights 3 R&D Progress 4 Japan/APAC Commercial Business 5 Objectives for FY2023 and beyond 6 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 r
Slide 4: Financial Results
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives 1 Financial Results Hironoshin Nomura, CFO 4
Slide 5: Financial Summary for H1 FY2023
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Financial Summary for H1 FY2023 Successful execution of strategy with continuing investment in R&D YTD Revenue of ¥2,146m ($16m) vs. ¥2,457m ($20m) in the prior comparative period.
Slide 6: Key Financial Indicators
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Key Financial Indicators 2023 Revenue lower due to a reduction in royalty income in line with expectations (JPY million) FY23H1 actual Revenue 3,500 3,123 Revenue can vary signifi
Slide 7: Full year cost guidance
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Full year cost guidance Incremental investment designed to deliver greater returns over the medium to long term Guidance R&D expenses (IFRS basis) (JPY million) ¥8,000 to ¥10,000m 1
Slide 8: Operational Highlights
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives 2 Operational Highlights Chris Cargill, CEO 8
Slide 9: Accelerating Our Mission
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Accelerating Our Mission Now delivering life-changing medicines to patients Japan Korea INVESTING IN WORLD-LEADING SCIENCE… …TO DELIVER LIFE-CHANGING MEDICINES GPCR-Targeted Researc
Slide 10: Four strategic pillars to increase corporate value
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Four strategic pillars to increase corporate value (The graph is illustrative only) 4 JAPAN PHARMA BUSINESS UNIT 3 EVOLVING IN-HOUSE R&D CLINICAL DEVELOPMENT & COMMERCIAL MAJOR CASH
Slide 11: On track to meet our key FY2023 objectives by year's end
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives On track to meet our key FY2023 objectives by year’s end FY2023 OBJECTIVES ACHIEVEMENT 1 WORLD-LEADING Invest to enhance GPCR SBDD platform DRUG DISCOVERY 1 capability ✓ Expected H2
Slide 12: Japan Pharma Business Unit
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Japan Pharma Business Unit Acquired two companies and up to nine product/pipeline rights TRANSACTION FUNDING ACQUIRED LEGAL ENTITIES2 PORTFOLIO OF CATALYST RICH PRODUCTS Idorsia Pha
Slide 13: Broad, Diversified and Balanced Pipeline
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Broad, Diversified and Balanced Pipeline Pioneering novel and differentiated therapies across multiple therapeutic areas Pre-Discovery / Discovery Preclinical Phase 1 Phase 2 Phase
Slide 14: R&D Progress
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives 3 R&D Progress Dr. Matt Barnes, President of Heptares and Head of UK R&D 14
Slide 15: Technology collaboration landscape
1 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Technology collaboration landscape Adding complementary approaches to increase discovery opportunities Pre-Disc. / Discovery Preclinical studies Clinical studies Commercialization
Slide 16: Clinical stage partnerships (Muscarinic Programs)
2 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Clinical stage partnerships (Muscarinic Programs) Developing novel muscarinic receptor agonists for schizophrenia and other neuropsychiatric disorders NBI’568: Phase II initiated
Slide 17: Clinical Trial Starting for in-house programs
3 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Clinical Trial Starting for in-house programs GPR52 Ag and EP4 Ant is now starting clinical trials Pre-Disc. / Discovery Preclinical studies Clinical studies Commercialization GPR
Slide 18: Japan/APAC Commercial Business
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives 4 Japan/APAC Commercial Business Dr. Satoshi Tanaka, President of IPJ/IPK 18
Slide 19: PIVLAZ – Commercially Available (Launched Japan in 2022)
4 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives PIVLAZ® – Commercially Available (Launched Japan in 2022) Strong uptake since launch and growing number of patients treated Cumulative Patients Treated Since Launch PIVLAZ® (clazo
Slide 20: Daridorexant – Best-In-Class Drug With 2H 2023 J-NDA Filing
4 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Daridorexant – Best-In-Class Drug With 2H 2023 J-NDA Filing Expected to launch 2H 2024 Daridorexant is a dual orexin receptor antagonist DORA class sales in Japan (NHI basis) (JPY
Slide 21: Cenerimod and Lucerastat
4 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Cenerimod and Lucerastat Exclusive opt-in rights for two potentially exciting product opportunities Cenerimod Lucerastat Indication Systemic Lupus Erythematosus (SLE) Indication F
Slide 22: Japan Is A Leading Market for Clinical Innovation And Quality
4 1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Japan Is A Leading Market for Clinical Innovation And Quality APAC countries respect Japan for its high data quality Quality Clinical Development Quality Regulatory Environment De
Slide 23: Objectives for FY2023 and beyond
1. Financial 2. Operational 3. R&D 4. . Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives 5 Objectives for FY2023 and beyond Chris Cargill, CEO 23
Slide 24: Expected News Flow
1. Financial 2. Operational 3. R&D 4. . Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Expected News Flow Several catalysts on-track to be achieved over the next 18 months 2H 2023 1H 2024 2H 2024 1H 2025 Japan ✓ Included in treatment guidelines (July) Sth Korea Appr
Slide 25: Our 2030 vision
1. Financial 2. Operational 3. R&D 4. . Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Our 2030 vision Novel medicines on the market globally, through our collaborations with partners Commercial business in Japan, based on in-licensed and in time, own products Broad
Slide 26: Appendix
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives 6 Appendix 26
Slide 27: TSE Prime Listing
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives TSE Prime Listing A significant milestone achieved to truly become a global biotech company ✓ Business Performance and Financial Status • Revenue > JPY 10bn and Market Cap > JPY 100
Slide 28: Introduction of 'Core Operating Profit'
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Introduction of ‘Core Operating Profit’ Core Operating Profit – the financial indicator closer to the reality of our business Operating Profit Operating Profit “IFRS” “Core” Finan
Slide 29: Financial Impact of IPJ/IPK transaction
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Financial Impact of IPJ/IPK transaction Transaction expected to be cash flow positive in the first full calendar year Long-term corporate loan: From existing Transaction cash: Purch
Slide 30: Estimation of potential market size
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Estimation of potential market size Multi-billion USD annual peak sales potential for our post-pre-clinical pipeline Peak Sales(USD million) Number of Category Indication2 Our Candi
Slide 31: Potential revenues from existing partnerships
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Potential revenues from existing partnerships Securing stable revenues in the short to medium term from existing partnerships Potential milestones from existing partners Potential r
Slide 32: Partnered pipeline
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Partnered pipeline Compound Target / Mechanism of Action Modality Indication Partner Disc. PCC Ph1 Ph2 Ph3 App Mkt Partnered Seebri® Breezhaler® LAMA SME COPD Ultibro® Breezhaler® L
Slide 33: Partnered pipeline (cont'd)
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Partnered pipeline (cont’d) Compound Target / Mechanism of Action Modality Indication Partner Disc. PCC Ph1 Ph2 Ph3 App Mkt Co-development KY1051 CXCR4 mAb mAb Immuno-oncology (Not
Slide 34: In-house pipeline
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives In-house pipeline Compound Target / Mechanism Modality Indication Originator Disc. PCC Ph1 Ph2 Ph3 App Mkt In-house Programs PIVLAZ® ETA antagonist SME Cerebral vasospasm Daridorexa
Slide 35: Glossary
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Glossary Basic Terminology/Technology GPCR G Protein-Coupled Receptor There are about 800 types of GPCRs in the human body. While 400 of them are known to be potential drug targets,
Slide 36: Glossary (cont'd)
1. Financial 2. Operational 3. R&D 4. Japan/APAC 5. FY2023 6. Appendix Results Highlights Progress Business Objectives Glossary (cont’d) Drug discovery target M1 Muscarinic M1 Receptor One of the five subtypes M1 to M5 of muscarinic acetylcholine receptors, known to be involved in learning and memor
Slide 37: Locations
Locations SOSEI GROUP PMO Hanzomon 11F Midtown East, F17, 410 Teheran-Ro Steinmetz Building North West House 2-1 Kojimachi, Chiyoda-ku 9-7-2 Akasaka Minato-ku GangHam-Gu Granta Park, 119 Marylebone Road Tokyo 102-0083 Tokyo 107-0052 Seoul 06192 Cambridge CB21 6DG London NW1 5PU Japan Japan South Kor