Nxera Pharma Co., Ltd. · TSE:4565
Nxera Pharma — FY2021 Earnings Presentation
57 slides from Nxera Pharma's earnings presentation, Feb 10, 2022
Slide 1: FY2021 Financial Results
NON-CONFIDENTIAL FY2021 Financial Results 12-month period ended December 31, 2021 10 February 2022 | 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 Business Summary 2 FY2021 Consolidated Financial Results 3 Operational Highlights 4 Organic Growth Plan Update 5 Strategic Growth Plan Update 6 FY2022 Strategic Goals 7 Appendix Note: This material was created to explain the details of our company and is not intended to be used for investme
Slide 4: Business Summary
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 1 Business Summary Shinichi Tamura, Chairman & CEO 4
Slide 5: Vision/Business Overview
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Vision/Business Overview Our vision is global biotech champions from Japan by solving challenges of drug discovery Numerous unmet medical Depleting drug discovery Increasing heal
Slide 6: Current major target
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Current major target GPCRs the largest drug discovery target, having large potential that our platform can approach ~400 ~400 GPCR targets in the body active in disease2 NEUROLOG
Slide 7: Our Strengths
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Our Strengths World-leading tech-based drug discovery platform (StaR®/SBDD) Conventional drug discovery Our drug discovery Location Empirical design Rational design (computer-bas
Slide 8: Track record of our drug discovery
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Track record of our drug discovery Higher drug discovery efficiency with our tech-based drug discovery platform (StaR®/SBDD） Number of programs Trends in the number of programs p
Slide 9: Business Model
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Business Model Focus on innovation in the early stages, partnering with major pharmaceuticals after that Drug discovery Preclinical (in animal) Clinical (in human) Commercializat
Slide 10: Our licensing partners
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Our licensing partners Total license value we made with world-class pharmaceutical companies Balance of potential milestone from existing license agreements1 Top 15 pharmaceutica
Slide 11: Potential revenue from existing partnerships
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Potential revenue from existing partnerships Securing stable revenues in the short to medium term from existing partnerships 2 Potential milestone from existing partners 3 Potent
Slide 12: FY2021 Consolidated Financial Results
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 2 FY2021 Consolidated Financial Results Christopher Cargill, CFO 12
Slide 13: Another year of successful execution
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Another year of successful execution Summary Financial Highlights for the 12 months ended 31 December 2021 Revenue of ¥17,712m ($161m) vs. ¥8,842m ($83m) in prior year, substanti
Slide 14: Key financial indicators
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Key financial indicators Significantly increased Operating Profit reflected encouraging revenue growth partially offset by (i) planned increase in R&D, and (ii) a non-cash impair
Slide 15: Revenue breakdown
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Revenue breakdown Significant increase in revenue driven by the Neurocrine transaction helped to generate a modest net profit despite significant impairment and contingent consid
Slide 16: Introduction of 'Core Earnings'
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Introduction of ‘Core Earnings’ Core Earnings – the financial indicator favored by investors JPY million USD million Commentary 12m ended 12m ended 12m ended 12m ended 31 Dec 202
Slide 17: Balance Sheet
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Balance Sheet Sustainability of the business model and corporate strategy reflected via robust balance sheet JPY million USD million Commentary As of As of As of As of 1 Decrease
Slide 18: Cost Guidance for FY2022
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Cost Guidance for FY2022 Guidance stated on total IFRS expenses basis going forward, rather than cash basis used in FY2021 R&D expenses (IFRS basis) G&A expenses (IFRS basis) ¥5,
Slide 19: Operational Highlights
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 3 Operational Highlights Christopher Cargill, CFO 19
Slide 20: Achievement in FY2021
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Achievement in FY2021 Promote future growth through both organic and strategic growth FY2021 OBJECTIVES ACHIEVEMENT Execute 2-3 new high value collaborations and/or 1 co-investme
Slide 21: Pipeline overview
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Pipeline overview Pre-Disc. / Discovery Preclinical studies Phase 1 Phase 2 Marketed Multi-target Multi-target M1M4 ag. M4 ag. HTL’878 A2a ant. combo(s)1 Ultibro® Breezhaler® GI
Slide 22: Major licensing deals
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Major licensing deals Achieved one of the largest executed CNS license collaborations with Neurocrine in 2021 Upfront and Initial Potential Total Partner Execution Program Therap
Slide 23: Four upcoming wholly-owned programs
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Four upcoming wholly-owned programs Prioritized for development over the next 12 to 24 months Schizophrenia Atopic Immunosuppression Inflammatory and Psychosis Dermatitis in soli
Slide 24: Organic Growth Plan Update
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 4 Organic Growth Plan Update Dr. Miles Congreve, Senior Vice President, Chief Scientific Officer 24
Slide 25: Achievement in FY2021 (Organic Growth)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Achievement in FY2021 (Organic Growth) Major progress in muscarinic and drug discovery platform are in the following slides FY2021 OBJECTIVES ACHIEVEMENT Execute 2-3 new high val
Slide 26: New strategic collaboration with Neurocrine
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal New strategic collaboration with Neurocrine $100m upfront and up to $2.6bn in future economics for selective Muscarinic agonist family Neurocrine gained rights to a portfolio of
Slide 27: M4 agonist competition landscape
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal M4 agonist competition landscape Muscarinic M4R now an increasingly de-risked and validated target for multiple types of SZ We are potentially best in class CVL-231 • Avoids non-
Slide 28: Our discovery platform updates
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Our discovery platform updates Further strengthening our world leading platform for GPCR by developing new technology Pre-Disc. / Discovery Preclinical studies Clinical studies C
Slide 29: Our discovery platform updates (cont'd)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Our discovery platform updates (cont'd) Combining with our StaR®/SBDD, 3 new technologies makes our platform better and faster • 12 Unique GPCRs resolved by CryoEM in 2020-2021.
Slide 30: Strategic Growth Plan Update
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 5 Strategic Growth Plan Update Dr. Matt Barnes, Senior Vice President, Drug Discovery, Head of R&D Portfolio Management 30
Slide 31: Achievement in FY2021 (Strategic growth)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Achievement in FY2021 (Strategic growth) Major progress in new technologies and expansion beyond GPCR are in the following slides FY2021 OBJECTIVES ACHIEVEMENT Execute 2-3 new hi
Slide 32: Strategic collaboration Target
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Strategic collaboration Target To leverage technology by choosing right targets and agent is our greatest opportunities Key opportunity/Target of Strategic collaboration Choosing
Slide 33: Strategic collaboration landscape
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Strategic collaboration landscape Significant build of in-house methods and industry collaborations to drive new best practice Pre-Disc. / Discovery Preclinical studies Clinical
Slide 34: Strategic collaboration Partners
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Strategic collaboration Partners Three new key partnerships in AI drug discovery field since 2021 AI drug discovery (Target) AI drug discovery (Target) AI drug discovery (Compoun
Slide 35: New multi-target collaboration with Verily
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal New multi-target collaboration with Verily Aims to accelerate the development of novel therapies for immune-mediated diseases 300+ Potential High priority Structure-based GPCRs c
Slide 36: Strategic collaboration Partners (cont'd)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Strategic collaboration Partners (cont’d) Our SBDD platform is also now being applied to areas outside our traditional GPCR space Targeted GPCR Degradation Ion Channels Antibody
Slide 37: Objectives for FY2022
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 6 Objectives for FY2022 Shinichi Tamura, President and CEO 37
Slide 38: Overview for our growth strategy
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Overview for our growth strategy Mid to long-term direction for accelerating our growth For our IT-based drug discovery platform (StaR®/SBDD) For our future strategic growth In
Slide 39: Priority objectives for FY2022
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Priority objectives for FY2022 Continue to promote future growth through both organic and strategic growth FY2022 OBJECTIVES Execute at least one new high value collaborations an
Slide 40: Priority objectives for FY2022 (cont'd)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Priority objectives for FY2022 (cont'd) Promote sustainable ESG practices and policies across global business Sustainable Development Goals adopted by the United Sosei Heptares i
Slide 41: Our management team
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Our management team Transition to new management will be executed after approval general shareholders' meeting Board of Directors Executive Officers Senior Management Chris Cargi
Slide 42: Appendix
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 7 Appendix 42
Slide 43: Revenue breakdown by type (IFRS)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Revenue breakdown by type (IFRS) USD (M) Upfront (UF)/Milestone (MS) revenue recognized in the full Financial Year1 Revenue Revenue Date FY20 UF/MS Event Date FY21 UF/MS Event (U
Slide 44: IFRS Income Statement Reconciliation
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal IFRS Income Statement Reconciliation Income Statement Reconciliation: ‘Cash’ basis to IFRS basis USD (000s) YEN (M) FY21 FY20 FY21 FY20 Royalties 20,981 23,826 2,311 2,544 Milest
Slide 45: StaR® Platform
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal StaR® Platform We are driving a new era of GPCR SBDD with surprising insight into ligand binding modes DRUG TARGET PROFILE SCREENING ITERATIVE MUTAGENESIS BIOPHYSICS THERMOSTABIL
Slide 46: SBDD Platform
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal SBDD Platform Collaborating with StaR®, Structure Based Drug Design(SBDD) is powerful tool for GPCR DRUG TARGET PROFILE PHARMACOLOGY Cl N N NH2 HOMOLOGY MODEL CADD N N STRUCTURE
Slide 47: Major indication for GPCR
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Major indication for GPCR Neuroscience, Immunology and GI are our areas of focus CNS Disorders and Neuro-inflammation ~400 NEUROLOGICAL DISORDERS M1 GPR52 M4 Ox1 Ox2 GPCR targets
Slide 48: SARS-CoV-2 protease inhibitors competition landscape
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal SARS-CoV-2 protease inhibitors competition landscape We need several option for drug resistance and aiming one of the best class therapy Receives Grant Funding from Wellcome on D
Slide 49: In vitro data of SH-879
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal In vitro data of SH-879 SH-879 represents an excellent opportunity for further development as an oral drug for the treatment of COVID-19 Next Step M Pro enzyme inhibition TARGET
Slide 50: SZ treatment system
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal SZ treatment system M4 agonist is 4th-gen candidate aiming to be a highly effective and safer treatment for SZ Typical Atypical antipsychotics M4 agonist is antipsychotic 4th-gen
Slide 51: Estimation of potential market size
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Estimation of potential market size Market size and peak sales of our development products in the preclinical stage and beyond Number of Peak Sales(USD million) Category Indicati
Slide 52: Partnered Pipeline
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Partnered Pipeline Compound Target / Mechanism of Action Modality Indication Partner Disc. PCC Ph1 Ph2 Ph3 App Mkt Traditional Out-licensing Collaborations Seebri® Breezhaler® LA
Slide 53: Partnered Pipeline (cont'd)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal Partnered Pipeline (cont’d) Compound Target / Mechanism of Action Modality Indication Partner Disc. PCC Ph1 Ph2 Ph3 App Mkt Co-development / Profit-share Collaborations KY1051 CX
Slide 54: In-house Pipeline
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal In-house Pipeline Compound Target / Mechanism of Action Modality Indication Originator Dis PCC Ph1 Ph2 Ph3 App Mkt. In-house Programs (Not yet partnered) Not disclosed H4 antagon
Slide 55: Glossary
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 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 targe
Slide 56: Glossary (cont'd)
1. Business 2. Consolidated 4. Organic 5. Strategic 6. FY2022 3. Highlight 7. Appendix Summary Results Growth Growth Goal 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 me
Slide 57: 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