Mesoblast Limited · ASX:MSB

Mesoblast — FY2019 Earnings Presentation

48 slides from Mesoblast's earnings presentation, Aug 30, 2019

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

    For personal use only Global Leader in Allogeneic Cellular Medicines for Inflammatory Diseases FY Ended June 30, 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 bringing to market innovative cellular medicines to treat serious and life-threatening illnesses |3

  4. Slide 4: Corporate History

    Corporate History For personal use only 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: Mesoblast founded in Melbo

  5. Slide 5: Premier Global Cellular Medicines Company

    Premier Global Cellular Medicines Company For personal use only Innovative Technology Platform1 Late Stage Pipeline Commercialization Plan  Innovative technology targets  Initiated filing with US FDA for  Building US sales force for some of the most severe disease approval for steroid-refractory

  6. Slide 6: Commercial and Late-Stage Product Pipeline

    Commercial and Late-Stage Product Pipeline For personal use only RollingBLA BLA submission to submission FDA underway ongoing |6

  7. Slide 7: Partnerships and License Agreements

    Partnerships and License Agreements For personal use only  JCR has rights to use our MSC technology to treat acute GVHD in Japan  Its product TEMCELL® HS Inj. was the first fully approved allogeneic cellular medicine inJapan  Royalties and milestones received in last 12 months exceed US$6.0 milli

  8. Slide 8: Recent Corporate Highlights

    Recent Corporate Highlights For personal use only Remestemcel-L for Steroid-Refractory Acute Graft Versus Host Disease  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 TEMCE

  9. Slide 9: Recent Corporate Highlights (continued)

    Recent Corporate Highlights (continued) Revascor for Advanced Heart Failure For personal use only  Phase 3 trial in advanced heart failure has completed patient enrollment, with 566 patients randomized to receive Revascor or placebo across 55 centers in North America. The trial’s primary endpoint i

  10. Slide 10: Recent Corporate Highlights (continued)

    Recent Corporate Highlights (continued) For personal use only MPC-06-ID for Chronic Low Back Pain  Phase 3 trial in chronic low back pain completed enrollment in March 2018 with 404 patients randomized to receive MPC- 06-ID or placebo. All patients have now completed at least 12 months of safety an

  11. Slide 11: Commercial Scale Manufacturing Capability

    Commercial Scale Manufacturing Capability For personal use only  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 batc

  12. Slide 12: Global IP Estate Provides Substantial Competitive Advantage

    Global IP Estate Provides Substantial Competitive Advantage For personal use only  ~995 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 lic

  13. Slide 13: Financials FY 2019

    For personal use only Financials FY 2019

  14. Slide 14: Revenues from Royalties on Japan Product Sales – 37% Year on Year Growth

    Revenues from Royalties on Japan Product Sales – 37% Year on Year Growth US$m For personal use only 6.0 5.0 5.0 4.0 3.6 3.0 2.0 1.0 1.5 - 0.4 FY16 FY17 FY18 FY19  37% growth in royalty revenue for the FY2019 year compared to FY2018 from sales of TEMCELL in Japan for SR-aGVHD by Mesoblast licensee J

  15. Slide 15: Revenues – Continued Growth in Royalties and Substantial Payments from Strategic Partnerships

    Revenues – Continued Growth in Royalties and Substantial Payments from Strategic Partnerships For personal use only June 30, June 30, For the year ending (US$m) 2019 2018 Upfront/milestone revenue 11.0 13.3 Commercialization revenue 5.0 3.6 Interest revenue 0.7 0.4 Total revenue 16.7 17.3  Strategi

  16. Slide 16: Increased Investment in Commercial Manufacturing

    Increased Investment in Commercial Manufacturing Non-cash Gains in Comparable Period from Revaluation of Tax and Contingent Consideration For personal use only June 30, June 30, Profit and Loss for the year ending (US$m) 2019 2018 Total Revenue 16.7 17.3 Research and development (59.8) (65.9) Manufa

  17. Slide 17: Reduction in Operating Net Cash Outflows for the Year

    Reduction in Operating Net Cash Outflows for the Year Due to Increased Payments from Strategic Partnerships For personal use only June 30, June 30, For the year ending (US$m) 2019 2018 Operating net cash outflows (57.8) (75.0) ` Investing net cash outflows (1.0) (1.2) Financing net cash inflows 71.6

  18. Slide 18: Lead Product Candidate: Remestemcel-L for aGVHD

    For personal use only Lead Product Candidate Remestemcel-L for aGVHD

  19. Slide 19: Acute Graft Versus Host Disease (aGVHD)

    Acute Graft Versus Host Disease (aGVHD) Significant market opportunity forremestemcel-L For personal use only  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 wit

  20. Slide 20: 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 For personal use only Average Average Average Average Additional Pediatric SR Additional Hospitalization Additional Additional All-Cause Cost: aGVHDvs. Outpatient Prescription ~US$500k LOS: 28 days Visi

  21. Slide 21: Results from Providers/Payers Indicate Near Maximal Rating on Product Attributes

    Remestemcel-L: Results from Providers/Payers Indicate Near Maximal Rating on Product Attributes1 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 (especi

  22. Slide 22: Remestemcel-L: U.S. Regulatory and Commercial Strategy

    Remestemcel-L: U.S. Regulatory and Commercial Strategy For personal use only  US strategy for remestemcel-L informed by TEMCELL sales experience in Japan  Rolling BLA submission to FDA initiated  Fast Track designation provides eligibility for FDA priority review  Ramp-up for inventory build is

  23. Slide 23: Remestemcel-L: Global GVHD Life Cycle Program

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

  24. Slide 24: Outlook

    For personal use only Outlook

  25. Slide 25: Anticipated FY2020 Milestones

    Anticipated FY2020 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 (Q4 CY19) Revascor for Advanced Heart Failure  Phase 3 events-driven trial i

  26. Slide 26: Additional Information: Development & Commercialization

    For personal use only Additional Information Development & Commercialization

  27. Slide 27: Remestemcel-L: 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 pediatricpatients  241 pediatric patients un

  28. Slide 28: Remestemcel-L: Expanded Access Program

    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 othermodali

  29. Slide 29: Remestemcel-L: 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

  30. Slide 30: Remestemcel-L: Phase 3 Trial Protocol GVHD001 – Demographics

    Remestemcel-L: Phase 3 Trial Protocol GVHD001 – Demographics1 For personal use only Subjects Enrolled 55 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%) UnderlyingDisease AML 18 (32.7%) ALL 12 (21.8%) Anemia 5 (9.1%) CML 4 (7.3%) Sick

  31. Slide 31: Protocol GVHD001 - Disease characteristics reflect aGVHD severity

    Remestemcel-L: Phase 3 Trial Protocol GVHD001 - Disease characteristics reflect aGVHDseverity1 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 GradeD Baseline Organ Involvement  26% of

  32. Slide 32: Grade C/D GVHD has Significantly Worse Survival than Grade A/B

    Grade C/D GVHD has Significantly Worse Survival than Grade A/B For personal use only |32

  33. Slide 33: Protocol GVHD001 - 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%, Response Rate 60% 81%) 50%  p-value calculated from the binomial 40% distr

  34. Slide 34: Remestemcel-L: Phase 3 Trial

    Remestemcel-L: Phase 3 Trial1 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 associated with up to 90% mortality2,3  Study successfully met the

  35. Slide 35: Remestemcel-L: 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. |35

  36. Slide 36: 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 orARB Advanced  Statins and End-Stage HF patients3  Beta blocker

  37. Slide 37: Advanced Heart Failure: Revascor Commercial Opportunity

    Advanced Heart Failure Revascor – Commercialopportunity 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 

  38. Slide 38: Revascor: Phase 2 Trial Identified Optimal Therapeutic 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 populatio

  39. Slide 39: Revascor: Therapeutic Benefit on LV Remodeling in Phase 2 Subjects

    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

  40. Slide 40: Revascor: Single Dose Prevented Any HF-MACE in Phase 2

    Revascor: 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 36monthsfollowing 36 months following treatment in allpatien

  41. Slide 41: Advanced Heart Failure: 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 150 million cell dose vs control  Events-driven Phase 3 trial completed enrollment of 566 patients in

  42. Slide 42: End-Stage Heart Failure: Commercial opportunity in reducing GI bleeding in LVADs

    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 Burdenof suffer from advanced systolic heart failure (NYHA Class III–IV)1 Illness  Despite optimal medic

  43. Slide 43: Revascor: 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 Controll

  44. Slide 44: Revascor: 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 | 44

  45. Slide 45: 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 thanany other condition1 Burden of Illness  Inflicts substantial direct and indirect costs on thehealthcaresystem,1 including excessive use of opioid

  46. Slide 46: 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% 45.0% 46.6% 45.0% p = 0.032 p = 0.050 40

  47. Slide 47: 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 a

  48. Slide 48: For personal use only

    For personal use only

Mesoblast — FY2019 Earnings Presentation on 6ix