Slide 1: FY2022 Financial Results
NON-CONFIDENTIAL FY2022 Financial Results 12-month period ended December 31, 2022 14 February 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 Strategy Updates 3 Operational Highlights 4 R&D Progress 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 reflect the vie
Slide 4: FY2022 Financial Results
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 1 FY2022 Financial Results Hironoshin Nomura, CFO 4
Slide 5: Financial Summary for FY2022
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Financial Summary for FY2022 Strong revenue & cash generation in 2022 combined with continued investment in R&D 2022 Revenue of ¥15,569m ($119m) vs. ¥17,712m ($161m) in the prior year. 2021 revenue included a $100m upfront fee (N
Slide 6: Key Financial Indicators
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Key Financial Indicators 2022 Revenue lower due to inclusion of one substantial upfront fee in 2021 (JPY million) FY22 actual Revenue 20,000 Revenue can vary significantly year on year depending on the occurrence of milestone 1
Slide 7: Full year cost guidance
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Full year cost guidance Incremental investment designed to deliver greater returns over the medium to long term Latest Guidance R&D expenses (IFRS basis) (JPY million) ¥8,000 to ¥10,000m 10,000 10,000 8,000 ~ Expand platform an
Slide 8: Strategy Updates
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 2 Strategy Updates Chris Cargill, CEO 8
Slide 9: The vision for Sosei Group
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix The vision for Sosei Group World Leading Science, Life Changing Medicines Development, medical affairs and commercial capabilities to deliver medicines to patients WORLD-LEADING SCIENCE LIFE-CHANGING MEDICINES World-class scienti
Slide 10: Clear strategy to drive the business forward
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Clear strategy to drive the business forward Four pillars of strategic focus DRUG DISCOVERY TRANSLATIONAL MED. DEVELOPMENT COMMERCIAL 1 3 WORLD-LEADING DRUG TRANSFORMING DISCOVERY IN-HOUSE R&D UK 4 Japan JAPAN PHARMA BUSINE
Slide 11: World-Leading GPCR Drug Discovery
1 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix World‐Leading GPCR Drug Discovery Why GPCRs? ‘Second golden age’ of GPCR discovery is here and we have a 15-year head start ~400 NEUROLOGICAL DISORDERS GPCR targets active in diseases2 GASTROINTESTINAL DISEASES ~34% IMMUNOLOGY/
Slide 12: Major Cash Flow Generating Partnerships
2 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Major Cash Flow Generating Partnerships Income from strategic licensing provides non-dilutive finance to support investment and growth Balance of potential milestone income from existing license agreements1 Top 15 pharmaceutica
Slide 13: Transforming In-House R&D
3 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Transforming In-House R&D Enhancing efficiency and success rates to drive returns and value creation • Entrench target biology to understand TARGET disease processes BIOLOGY • Define robust and testable hypothesis High quality
Slide 14: Japan Pharma Business Unit
4 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Japan Pharma Business Unit Huge opportunity to create a disruptive pharma business in Japan Second Large, Universal FOCUS: underserved, Stable, pro- Relatively Attractive largest ageing health care specialty TA/DAs innovation w
Slide 15: Operational Highlights
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 3 Operational Highlights Chris Cargill, CEO 15
Slide 16: Partners and active pipeline overview
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Partners and active pipeline overview Pre-Start / Discovery Preclinical Phase 1 Phase 2 Phase 3 Marketed 15+ PROGRAMS SELECTED ACTIVE PIPELINE PROGRAMS Previous and ongoing discovery collabs. M1M4 ag. NBI’570 CCR6 ant. PF’894 M4
Slide 17: Major updates since the beginning of FY22
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Major updates since the beginning of FY22 Further enhanced the platform’s value, via multiple new collaborations Pre-Start / Discovery Updates ✓ 1 New GPCR targets already identified with AI dataset ✓ New platform to identify nov
Slide 18: Major updates since the beginning of FY22 (cont'd)
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Major updates since the beginning of FY22 (cont’d) Great progress by our partners, including two new late-stage clinical trial starts Translational Medicine / Clinical Development Updates ✓ 2 Strong GLP-1 Ph. 1 data, Ph. 2b start
Slide 19: R&D Progress
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 4 R&D Progress Dr. Matt Barnes, President of Heptares and Head of UK R&D 19
Slide 20: Platform evolution and new targeted collaborations
1 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Platform evolution and new targeted collaborations World-leaders choose our platform to prosecute complex GPCRs Pre-Disc. / Discovery Preclinical studies Clinical studies Commercialization Multi-target Discovery Collaborations
Slide 21: Technology collaboration landscape
1 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Technology collaboration landscape Adding complementary approaches to increase discovery opportunities Pre-Disc. / Discovery Preclinical studies Clinical studies Commercialization Target ID Structure Hit ID Lead Optimization Ch
Slide 22: Clinical stage partnerships (Muscarinic Programs)
2 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Clinical stage partnerships (Muscarinic Programs) Developing novel muscarinic receptor agonists for schizophrenia and other neuropsychiatric disorders Phase II initiated ‘22 Sosei Heptares received $100m upfront, +$30m @ Ph 2 S
Slide 23: Clinical stage partnerships (Pfizer GLP-1 agonist for T2D/Obesity)
2 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Clinical stage partnerships (Pfizer GLP-1 agonist for T2D/Obesity) Well-positioned to compete on efficacy, tolerability and administration vs. other oral therapies Phase IIb initiated ‘22 Orals projected to capture ~30% of GLP-
Slide 24: Wholly-owned programs to begin clinical studies next 12 months
3 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Wholly-owned programs to begin clinical studies next 12 months Advancing priority programs into early clinical studies, including our collaboration with CRUK Indication Immunosuppression Schizophrenia Inflammatory and target in
Slide 25: EP4 antagonist (HTL0039732)
3 1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix EP4 antagonist (HTL0039732) New collaboration with CRUK to advance clinical trials for this promising cancer therapeutic Best access - unrivalled network of world-leading scientists and clinicians World-class infrastructure - m
Slide 26: Objectives for FY2023 and beyond
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 5 Objectives for FY2023 and beyond Chris Cargill, CEO 26
Slide 27: Achievements in FY2022
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Achievements in FY2022 Organic and strategic initiatives position us well for long-term growth FY2022 OBJECTIVES ACHIEVEMENT Execute at least one new high value collaboration 1 and/or co-investment ✓ Organic Growth 2 Generate at
Slide 28: Priority objectives for FY2023
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Priority objectives for FY2023 Continue to promote future growth by focusing on four strategic pillars FY2023 OBJECTIVES 1 WORLD-LEADING DRUG DISCOVERY 1 Invest to enhance GPCR SBDD platform capability 2 MAJOR CASH FLOW GENERATIN
Slide 29: Strategy to enhance our success
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Strategy to enhance our success Key pillars aimed at increasing corporate value over the medium term Japan Pharma Business Unit Transform In‐House R&D Major Cash flow Generating Partnerships World‐Leading Drug Discovery 29
Slide 30: Our 2030 vision
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 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, deep and sustainable pipeline of programs with s
Slide 31: Appendix
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 7 Appendix 31
Slide 32: Major updates since the beginning of FY22
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Major updates since the beginning of FY22 Selected programs re-positioned or deprioritized to optimize strategy and investment Position Updates / Deprioritized CGRP ant. Neurology Strategic decision of partner to revert program t
Slide 33: Introduction of 'Core Operating Profit'
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Introduction of ‘Core Operating Profit’ Core Operating Profit – the financial indicator closer to the reality of our business Operating Profit Operating Profit “IFRS” “Core” Financial results recorded and prepared in + Material
Slide 34: Estimation of potential market size
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 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 Candidates Patients Market Size Individual Products D
Slide 35: Potential revenues from existing partnerships
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix Potential revenues from existing partnerships Securing stable revenues in the short to medium term from existing partnerships Potential milestones from existing partners Potential royalties from existing partners ~$299bn/year Tot
Slide 36: Partnered pipeline
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 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® LAMA+LABA SME COPD Enerzair® Breezhaler® LAMA+LAB
Slide 37: Partnered pipeline (cont'd)
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 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 disclosed) PAR-2 Peptide Inflammatory diseases (
Slide 38: In-house pipeline
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix In-house pipeline Compound Target / Mechanism Modality Indication Originator Disc. PCC Ph1 Ph2 Ph3 App Mkt In-house Programs HTL’732 EP4 antagonist SME Immuno-oncology (Not disclosed) GPR52 agonist SME Neurology diseases (Not dis
Slide 39: Glossary
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 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, about 300 of them are not yet drugged Sosei Hep
Slide 40: Glossary (cont'd)
1. Financial 2. Strategy 3. Operation 4. R&D 5. Objectives 6. Appendix 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 memory. M4 Muscarinic M4 Receptor One of the five sub
Slide 41: 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