Mesoblast Limited · ASX:MSB

Mesoblast — Q1 FY2020 Earnings Presentation

33 slides from Mesoblast's earnings presentation, October 2019

  1. Slide 1: Global Leader in Allogeneic Cellular Medicines for Inflammatory Diseases

    Global Leader in Allogeneic Cellular Medicines for Inflammatory Diseases First Quarter Ended September 30, 2019 Nasdaq: MESO ASX: MSB

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

    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, levels of activity, perf

  3. Slide 3: Our Mission

    Our Mission Mesoblast is committed to bringing to market innovative cellular medicines to treat serious and life-threatening illnesses |3

  4. Slide 4: Corporate History

    Corporate History Over a decade of scientific, manufacturing, clinical development and corporate development experience targeted at bringing to market allogeneic, off-the-shelf cellular medicines for inflammatory diseases 2004: 2013: 2015: 2017: 2019: 2019: Mesoblast founded in Acquired MSC Dual lis

  5. Slide 5: Premier Global Cellular Medicines Company

    Premier Global Cellular Medicines Company Innovative Technology Platform1 Late Stage Pipeline Commercialization  Innovative technology targets  Initiated rolling filing with US  Building US sales force for some of the most severe disease FDA for approval for steroid- potential aGVHD product launc

  6. Slide 6: Commercial Scale Manufacturing Capability

    Commercial Scale Manufacturing Capability  Scalable allogeneic “off-the-shelf” cellular medicine platform  Manufacturing meets stringent criteria set by international regulatory agencies including FDA and EMA  Robust quality assurance processes ensure final product with batch-to-batch consistency

  7. Slide 7: Global IP Estate Provides Substantial Competitive Advantage

    Global IP Estate Provides Substantial Competitive Advantage  ~1,000 patents and patent applications (68 patent families) across all major jurisdictions  Covers composition of matter, manufacturing, and therapeutic applications of mesenchymal lineage cells Diseases  Enables licensing to third part

  8. Slide 8: Commercial and Late-Stage Product Pipeline

    Commercial and Late-Stage Product Pipeline PLATFORM PRODUCT THERAPEUTIC AREA APPROVAL COMMERCIAL RIGHTS MARKETED TEMCELL®  MSC Acute Graft Versus Host Japan 1st allogeneic regen med approved in Japan (Bone Marrow) HS Inj1 Disease MSC (Adipose) Alofisel®2 Perianal Fistula 1st allogeneic regen med ap

  9. Slide 9: Partnerships and License Agreements

    Partnerships and License Agreements  Strategic partnership to develop and commercialize MPC-06-ID for chronic low back pain due to degenerative disc disease in patients who have exhausted conservative treatment options  Grünenthal will have exclusive commercialization rights for Europe and Latin A

  10. Slide 10: Financials First Quarter FY2020

    Financials First Quarter FY2020

  11. Slide 11: Substantial Increase in Revenues

    Substantial Increase in Revenues September 30, September 30, September 30, For the quarter ending (US$m) 2019 2018 2017 Upfront/milestone revenue 15.0 10.5 0.5 Commercialization revenue 1.9 1.0 0.6 Interest revenue 0.1 0.1 0.1 Total revenue 17.0 11.6 1.2  Strategic partnerships drive upfront and mi

  12. Slide 12: Loss After Tax Reduced by 72% (US$14.0 million)

    Loss After Tax Reduced by 72% (US$14.0 million) September 30, September 30, Profit and Loss for the quarter ending (US$m) 2019 2018 Total Revenue 17.0 11.6 Research and development (12.4) (18.5) Manufacturing (2.7) (4.3) Management & administration (5.4) (5.6) Contingent consideration (0.3) (0.6) Ot

  13. Slide 13: Strong Balance Sheet and 20% Reduction in Operating Net Cash Outflows

    Strong Balance Sheet and 20% Reduction in Operating Net Cash Outflows September 30, June 30, As of (US$m) 2019 2019 Cash on Hand 34.5 50.4 ` Pro forma cash on hand 100.0 50.4  Pro forma cash on hand at September 30, 2019 includes a US$15.0 million upfront payment for the strategic partnership with

  14. Slide 14: Operational Highlights First Quarter FY2020

    Operational Highlights First Quarter FY2020

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

    Acute Graft Versus Host Disease (aGVHD) Significant market opportunity for Remestemcel-L  aGVHD is a life-threatening complication that occurs in ~50% of patients receiving Burden of allogeneic bone marrow transplants (BMTs)1 Illness  Steroid-refractory aGVHD is associated with mortality rates as

  16. Slide 16: Remestemcel-L: U.S. Regulatory and Commercial Strategy

    Remestemcel-L: U.S. Regulatory and Commercial Strategy  US strategy for remestemcel-L informed by TEMCELL sales experience in Japan  Rolling BLA submission to FDA  Fast Track designation provides eligibility for FDA priority review  Commercialization strategy in place for product launch  Ramp-u

  17. Slide 17: SR-aGVHD is Associated with Significant Burden of Illness in Children in the U.S.

    Remestemcel-L: SR-aGVHD is Associated with Significant Burden of Illness in Children in the U.S.1 Average Average Average Average Additional Pediatric SR Additional Hospitalization Additional Additional All-Cause Cost: aGVHDvs. Outpatient Prescription ~US$500k LOS: 28 days Visits:30 Fills: 7 NoGVHD

  18. Slide 18: Remestemcel-L: Results from Providers/Payers Indicate Near Maximal Rating

    Remestemcel-L: Results from Providers/Payers Indicate Near Maximal Rating on Product Attributes1 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)  Day

  19. Slide 19: Remestemcel-L: Life Cycle Strategy

    Remestemcel-L: Life Cycle Strategy Mesoblast has over 10 years of experience in hematology-oncology space Remestemcel-L: − Positive Phase 3 Results Q12018 Chronic GVHD − Large US Pediatric GVHD Expanded Access Program (>240 patients) SR-aGVHD pediatric Ex-US launch Label extension 2018 other indicat

  20. Slide 20: Remestemcel-L for Acute GVHD

    Remestemcel-L for Acute GVHD Recent Highlights  Continued growth in revenues from royalties on sales of TEMCELL in Japan for steroid refractory aGVHD  Product adoption and reimbursement seen in the Japan GVHD market for TEMCELL informs Mesoblast US commercial strategy for remestemcel-L in aGVHD 

  21. Slide 21: Common Treatment Pathway in Progressive Heart Failure

    Advanced and End-Stage Heart Failure Common Treatment Pathway in Progressive Heart Failure1 Class I Progressive Vascular (Endothelial) Dysfunction and Heart Failure ClassIV Mesoblast Target Market: Early  ACEI orARB Advanced  Statins and End-Stage HF patients3  Beta blockers  Re-vascularization

  22. Slide 22: Advanced Heart Failure

    Advanced Heart Failure Revascor – Commercialopportunity  ~ 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  Despite recent advances in n

  23. Slide 23: Advanced Heart Failure: Revascor Phase 3 Trial Fully Enrolled

    Advanced Heart Failure Revascor - Phase 3 trial fully enrolled  Trial design is 1:1 randomized, controlled, double blinded; conducted over 55 sites across North America using 150 million cell dose vs control  Events-driven Phase 3 trial completed enrollment of 566 patients in February 2019  Prima

  24. Slide 24: Revascor for Advanced Heart Failure

    Revascor for Advanced Heart Failure Key milestones • Full accrual of primary endpoints events in the Phase 3 trial of Revascor for advanced heart failure around the end of CY19 • Data read-out for this Phase 3 trial planned in H1 CY20 • Results will be considered pivotal to support regulatory approv

  25. Slide 25: End-Stage Heart Failure

    End-Stage Heart Failure Revascor – Commercial opportunity in reducing GI bleeding in patients with LVADs  In the US there are ~ 250,000–300,000 patients annually who suffer from Burdenof advanced systolic heart failure (NYHA Class III–IV)1 Illness  Despite optimal medical therapy, mortality exceed

  26. Slide 26: End-Stage Heart Failure in LVAD Patients

    End-Stage Heart Failure in LVAD Patients Revascor reduced GI bleeding events causing hospitalizations in two randomized trials 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 C

  27. Slide 27: Revascor for End-Stage Heart Failure in LVAD Patients

    Revascor for End-Stage Heart Failure in LVAD Patients Recent Highlights • Mesoblast and the International Center for Health Outcomes Innovation Research (InCHOIR) at the Icahn School of Medicine at Mount Sinai in New York have agreed on the protocol for a confirmatory Phase 3 trial of Revascor • In

  28. Slide 28: MPC-06-ID: A New Paradigm for Treatment of Chronic Low Back Pain

    MPC-06-ID: A New Paradigm for Treatment of Chronic Low Back Pain Due to Degenerative Disc Disease  Back pain causes more disability than any other condition1 Burden of  Inflicts substantial direct and indirect costs on the healthcare Illness system1,2, including excessive use of opioids in this pa

  29. Slide 29: MPC-06-ID – Development Strategy for US & Europe

    MPC-06-ID – Development Strategy for US & Europe  Phase 3 trial in chronic low back pain completed enrolment in March 2018 with 404 patients randomized to receive MPC-06-ID or placebo  Initiate confirmatory Phase 3 trial in Europe in partnership with Grünenthal  Complete commercial manufacturing

  30. Slide 30: Key Terms of the Strategic Partnership with Grünenthal

    Key Terms of the Strategic Partnership with Grünenthal Grünenthal has obtained  An exclusive license for Europe and Latin America to develop and commercialize MPC-06-ID in the treatment of chronic low back pain due to degenerative disc disease In consideration, Mesoblast will receive  Up to US$150

  31. Slide 31: Transaction Benefits to Mesoblast

    Transaction Benefits to Mesoblast  Strong commercial partner  Delivers commercialization, distribution, sales & marketing  Field force comprises around 1,600 people across Europe, Latin America & US – overall focus is on pain – visited nearly 300,000 stakeholders in 2018 (physicians, pharmacists

  32. Slide 32: MPC-06-ID for Chronic Low Back Pain

    MPC-06-ID for Chronic Low Back Pain Key Milestones  Last patient last visit at 24-months of follow up in the Phase 3 trial of MPC-06-ID for chronic low back pain H1 CY20, with the primary endpoint being a composite outcome of pain and function at 12 and 24 months  Obtain clearance in CY20 from Eur

  33. Slide 33: Questions

    Questions

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