Mesoblast Limited · ASX:MSB

Mesoblast — Q3 FY2019 Earnings Presentation

43 slides from Mesoblast's earnings presentation, May 31, 2019

  1. Slide 1: Operational Highlights and Financial Results for the Nine Months and Quarter Ended March 31, 2019

    For personal use only Operational Highlights and Financial Results for the Nine Months and Quarter Ended March 31, 2019 May 2019 Nasdaq: MESO ASX: MSB

  2. Slide 2: Cautionary Note Regarding Forward-Looking Statements

    For personal use only CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, le

  3. Slide 3: Our Mission

    For personal use only Our Mission Mesoblast is committed to bring to market innovative cellular medicines to treat serious and life-threatening illnesses |3

  4. Slide 4: Premier Global Cellular Medicines Company

    Premier Global Cellular Medicines Company For personal use only Innovative Technology Late Stage Pipeline Commercialization Platform1  Upcoming BLA submission for  Building focused US sales force  Innovative technology targets the steroid-refractory acute GVHD for acute GVHD product launch most s

  5. Slide 5: Recent Corporate Highlights

    Recent Corporate Highlights For personal use only Remestemcel-L for Steroid-Refractory Acute Graft Versus Host Disease  FDA has agreed to a rolling Biologics Licence Application (BLA) review of remestemcel-L for the treatment of steroid-refractory acute Graft Versus Host Disease (aGVHD) in children

  6. Slide 6: Recent Corporate Highlights (continued)

    Recent Corporate Highlights (continued) For personal use only MPC-06-ID for Chronic Lower Back Pain  Phase 3 trial in chronic low back pain has completed enrollment with 404 patients randomized to receive MPC-06-ID or placebo. All assessable patients have now completed at least 12-months of safety

  7. Slide 7: Corporate History

    Corporate History For personal use only Over a decade of scientific, manufacturing, clinical development and corporate transaction experience targeted at bringing to market, cellular medicines for inflammatory diseases 2004: 2013: 2015: 2017: 2019: Mesoblast is founded in Acquired MSC business from

  8. Slide 8: Partnerships and License Agreements

    Partnerships and License Agreements For personal use only  JCR has rights to use our MSC technology to treat SR acute GVHD in Japan  Its product, TEMCELL ® HS Inj.1, was the first fully approved allogeneic cellular medicine in Japan  Royalties and milestones received in last twelve months exceed

  9. Slide 9: Commercial and Late-Stage Product Pipeline

    Commercial and Late-Stage Product Pipeline For personal use only |9

  10. Slide 10: Financials

    For personal use only Financials | 10

  11. Slide 11: Cash Reserves of US$70.4 million

    Cash Reserves of US$70.4 million Significant reduction in operating net cash outflows for the nine months For personal use only March 31, March 31, For the nine months ending (US$m) 2019 2018 Operating net cash outflows (38.7) (54.8) ` Investing net cash outflows (0.2) (0.7) Financing net cash inflo

  12. Slide 12: Revenues – Continued Growth in Royalties and Substantial Milestone Revenues

    Revenues – Continued Growth in Royalties and Substantial Milestone Revenues from Corporate Transactions For personal use only March 31, March 31, For the nine months ending (US$m) 2019 2018 Milestone revenue 11.0 12.8 Commercialization revenue 3.3 2.5 Interest revenue 0.5 0.3 Total revenue 14.8 15.6

  13. Slide 13: Increased Loss due to Investment in Manufacturing and Financing

    Increased Loss due to Investment in Manufacturing and Financing, and Non-cash Gains in Comparable Period from Revaluation of Tax and Contingent Consideration For personal use only March 31, March 31, Profit and Loss for the nine months ending (US$m) 2019 2018 Total Revenue 14.8 15.6 Research and dev

  14. Slide 14: Operational Highlights

    For personal use only Operational Highlights | 14

  15. Slide 15: Acute Graft Versus Host Disease (aGVHD)

    Acute Graft Versus Host Disease (aGVHD) Significant market opportunity for remestemcel-L For personal use only  aGVHD is a life-threatening complication that occurs in ~50% of patients receiving Burden of allogeneic bone marrow transplants (BMT)1 Illness  Steroid-refractory aGVHD is associated wit

  16. Slide 16: SR-aGVHD Associated with Significant Burden of Illness in Children

    Remestemcel-L: SR-aGVHD is Associated with Significant Burden of Illness in Children (US)1 For personal use only Pediatric Average Additional Average Additional Average Additional Average Additional All- Hospitalization LOS: SR aGVHD vs. Outpatient Visits: 30 Prescription Fills: 7 Cause Cost : ~$500

  17. Slide 17: Results from Providers/Payers Qualitative US Market Research

    Remestemcel-L: Results from Providers/Payers Qualitative US Market Research1 For personal use only Median Response Reaction to 0 Tested Target Profile2 6 7 Most Significant Value Drivers for Remestemcel-L Max Rating Product (n=20) Attributes  Day 28 overall response rate (especially grade C/D)  Da

  18. Slide 18: Overview of US Product Reimbursement

    Remestemcel-L: Overview of US Product Reimbursement Pricing of Relevant Agents in the Refractory Hematology / Oncology Setting1,2 For personal use only US$50k $100k $200k $375k $475k $500k Branded immune- Combination of Defitelio®2 Yescarta®3 Kymriah®3 suppressants 1 Branded immune- suppressants + E

  19. Slide 19: Expanded Access Program (Protocol 275)

    Remestemcel-L: Expanded Access Program (Protocol 275) Overall Day 28 Response in 241 Pediatric aGVHD Patients Receiving Remestemcel-L as First- line or Salvage Therapy After Failing Steroids1 For personal use only Population: steroid-refractory 100% aGVHD pediatric patients  241 pediatric patients

  20. Slide 20: Expanded Access Program: Response and Day 100 Survival

    Remestemcel-L: Expanded Access Program Correlation of Day 28 Overall Response with Day 100 Survival, Using Remestemcel-L as First-line or Salvage Therapy After Failing Steroids and/or Additional Treatments1 For personal use only Remestemcel-L in Children with SR-aGVHD who failed multiple other modal

  21. Slide 21: Phase 3 Pediatric Trial (GVHD001)

    Remestemcel-L: Phase 3 Pediatric Trial (GVHD001) - First-line therapy in aGVHD after failing steroids1 For personal use only  Multi-center, single-arm, open-label study to evaluate efficacy and safety to day 100 (GVHD001) and from day 100 to day 180 (GVHD002)  55 pediatric patients (2 months to 17

  22. Slide 22: Phase 3 Trial Protocol GVHD001 – Demographics

    Remestemcel-L: Phase 3 Trial Protocol GVHD001 – Demographics1 Subjects Enrolled 55 For personal use only Age (years) Mean (SD) 7.8 (5.44) Median (minimum, maximum) 7.6 (0.6, 17.9) Gender Male 35 (63.6%) Female 20 (36.4%) Underlying Disease AML 18 (32.7%) ALL 12 (21.8%) Anemia 5 (9.1%) CML 4 (7.3%) S

  23. Slide 23: Protocol GVHD001 - Disease Characteristics Reflect aGVHD Severity

    Remestemcel-L: Phase 3 Trial Protocol GVHD001 - Disease characteristics reflect aGVHD severity1 For personal use only GVHD Grade at Baseline  89% of subjects had Grade C/D disease at baseline Grade B Grade C  47% of subjects had Grade D disease at baseline Grade D Baseline Organ Involvement  26%

  24. Slide 24: Grade C/D GVHD has Significantly Worse Survival than Grade A/B

    Grade C/D GVHD has Significantly Worse Survival than Grade A/B1 For personal use only | 24

  25. Slide 25: Primary Efficacy Overall Response at Day 28 was 69%

    Remestemcel-L: Phase 3 Trial Protocol GVHD001 - Primary efficacy overall response at Day 28 was 69%, p=0.00031 For personal use only 100% 73% 80% 70% 69%  69% Overall Response rate at Day 28 (29% CR + 40% PR); (95% CI: 55%, 60% 81%) 50%  p-value calculated from the binomial 40% distribution, under

  26. Slide 26: Overall Response at Day 28 Predicts Survival Through Six Months

    Remestemcel-L: Phase 3 Trial Overall response at Day 28 predicts survival through six months1 For personal use only  Phase 3 study evaluated remestemcel-L in 55 children to improve overall response rate and survival − 89% of children had grade C/D disease, the most severe form and historically asso

  27. Slide 27: Protocol GVHD001/002 Survival

    Remestemcel-L: Protocol GVHD001/002 survival1 For personal use only Survival in Day 28 Responders Overall Survival Probability Day 100 - 87%; Day 180 - 79% Days Since First Dose of Remestemcel-L 1. Data on file. | 27

  28. Slide 28: Regulatory and Commercial Strategy Overview

    Remestemcel-L: Regulatory and Commercial Strategy Overview For personal use only  FDA agreed to rolling review of BLA submission  Fast Track designation provides eligibility for FDA priority review  Ramp-up for inventory build is underway  Commercialization strategy in place for product launch 

  29. Slide 29: Comprehensive Global GVHD Program

    Remestemcel-L: Comprehensive Global GVHD Program  Mesoblast has over 10 years of experience in hematology-oncology space For personal use only  Remestemcel-L: − Positive Phase 3 Results Q12018 − Large US Pediatric GVHD Expanded Access Program Chronic GVHD (>240 patients) SR-aGVHD Pediatric Ex-US L

  30. Slide 30: Advanced and End-Stage Heart Failure

    Advanced and End-Stage Heart Failure For personal use only Common Treatment Pathway in Progressive Heart Failure1 Class I Progressive Vascular (Endothelial) Dysfunction and Heart Failure Class IV Mesoblast Target Market: Early  ACEI or ARB Advanced  Statins and End-Stage HF patients3  Beta blocke

  31. Slide 31: Advanced Heart Failure: Revascor Commercial Opportunity

    Advanced Heart Failure Revascor – Commercial opportunity For personal use only  Approx. 8 million patients with chronic heart failure by 2030 in US alone1 Burden of  17-45% globally die within 1 year of hospital admission1 Illness  Majority of advanced heart failure patients die within 5 years1 

  32. Slide 32: Revascor: Phase 2 Trial Identified Optimal Dose and Target Population

    Revascor: Phase 2 Randomized, Controlled Trial Identified Optimal Therapeutic Dose and Target Patient Population for Phase 3 For personal use only Objectives LVESV Month 6 - Baseline LVEDV Month 6 - Baseline  Identify a dose response and an optimal therapeutic dose  Identify optimal target populat

  33. Slide 33: Revascor: Therapeutic Benefit on LV Remodeling in Phase 2

    Revascor: Therapeutic Benefit on LV Remodeling in Phase 2 Subjects with LVESV >100ml1 For personal use only  Placebo corrected benefit of 150MM cell dose on cardiac volumes and ejection fraction at 6 months was greatest in patients with more advanced heart failure as defined by ∆ ∆ baseline LVESV>1

  34. Slide 34: Revascor: Single Dose Prevented Any HF-MACE in Phase 2

    Revascor: A Single Dose Prevented Any HF-MACE for 36 Months in Patients at Highest Risk of Recurrent Events and Death (Those with LVESV>100ml) in Phase 2 For personal use only % HF-MACE Kaplan-Meier Curve over HF-MACE Kaplan-Meier Curve over 36 monthsfollowing 36 months following treatment in allpat

  35. Slide 35: Revascor - Phase 3 Trial Fully Enrolled

    Advanced Heart Failure Revascor - Phase 3 trial fully enrolled For personal use only  Trial design is 1:1 randomized, controlled, double blinded; conducted over 55 sites across North America using 150MM cell dose vs control  Events-driven Phase 3 trial completed enrollment of 566 patients in Febru

  36. Slide 36: End-Stage Heart Failure: Commercial Opportunity in Reducing GI Bleeding

    End-Stage Heart Failure Revascor – Commercial opportunity in reducing GI bleeding in patients with LVADs For personal use only  In the US there are approx. 250,000–300,000 patients annually who suffer from Burden of advanced systolic heart failure (NYHA Class III–IV)1 Illness  Despite optimal medi

  37. Slide 37: Trials Demonstrated Reduced GI Bleeding Events in LVAD Patients

    End-Stage Heart Failure Revascor – Trials demonstrated reduced GI bleeding events in LVAD patients For personal use only MPCs prolong time-to-first major GI bleeding event and reduced cumulative major GI bleeding events in two randomized controlled trials in LVAD patients1,2 Pilot Randomized Control

  38. Slide 38: Reduced Hospitalization Rate from GI Bleeding in Phase 2 Trial

    End-Stage Heart Failure Revascor – Reduced hospitalization rate from GI bleeding in Phase 2 trial For personal use only MPCs Reduce Hospitalization Rate from GI Bleeding by 65% in 159-Patient Phase 2 Trial1 1 Presented at American Heart Association Scientific Sessions 2018. | 38

  39. Slide 39: Revascor – Benefits from an Expedited Approval Path under RMAT

    End-Stage Heart Failure Revascor – Benefits from an expediated approval path under RMAT For personal use only Revascor Has Received RMAT Designation for Use in End-Stage Heart Failure Patients with LVADs  Key benefits of the Regenerative Medicine Advanced Therapies (RMAT) designation include: − Pot

  40. Slide 40: Chronic Low Back Pain: Market Opportunity

    Chronic Low Back Pain (CLBP) MPC-06-ID – Market opportunity in CLBP due to disc degeneration For personal use only  Back pain causes more disability than any other condition1 Burden of Illness  Inflicts substantial direct and indirect costs on the healthcaresystem,1 including excessive use of opio

  41. Slide 41: MPC-06-ID – Post-Hoc Phase 2 Results Provide Target Endpoints

    Chronic Low Back Pain MPC-06-ID – Post-Hoc Phase 2 results provide target endpoints for Phase 3 trial For personal use only A: Phase 2: Treatment Success Responders1,2 B: Phase 2: Treatment Success Responders1,2 at 12 Months at both 12 & 24 Months 50.0% 50.0% | 41 45.0% 46.6% 45.0% p = 0.032 p = 0.0

  42. Slide 42: MPC-06-ID – Ongoing Phase 3 Clinical Trial

    Chronic Low Back Pain MPC-06-ID – Ongoing Phase 3 clinical trial For personal use only  Three-arm study comparing 6-million MPC with or without hyaluronic acid (HA) against saline control  Primary efficacy endpoint agreed to with FDA: – Overall Treatment Success Composite at both 12 and 24 months

  43. Slide 43: Anticipated CY2019 Milestones

    Anticipated CY2019 Milestones For personal use only Remestemcel-L for Steroid-Refractory Acute Graft Versus Host Disease  Completion of BLA filing for remestemcel-L in the treatment of steroid refractory aGVHD in children Revascor for Advanced and End-Stage Heart Failure  Phase 3 trial in advanced

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