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Bringing True Novelty to the Anti-Infectives Space New Class of Antibacterials Based on a Completely New Mechanism of Action Truly Novel Anti-Infectives MGB Biopharma Delivering True Novelty Developing a truly novel class of drugs for


  1. Bringing True Novelty to the Anti-Infectives Space New Class of Antibacterials Based on a Completely New Mechanism of Action Truly Novel Anti-Infectives

  2. MGB Biopharma – Delivering True Novelty • Developing a truly novel class of drugs for infectious diseases based on the University of Strathclyde’s DNA Minor Groove Binder (MGB) Technology • This platform provides an opportunity to develop various compounds against bacteria, viruses, fungi and parasites with a completely new mode of action which are distinct from the antimicrobial drugs used in clinical practice today • MGB-BP-3 is the first compound from this platform, with strong activity against Gram-positive pathogens, ready to progress into clinical development • Founded in April 2010 – HQ in Glasgow, Scotland - and funded by an Angel syndicate and the Scottish Co-Investment Fund 2 Truly Novel Anti-Infectives

  3. The First Novel Mode of Action For Decades • MGBs bind A-T or G-C rich sequences within the minor groove of bacterial DNA in a sequence and conformation- specific fashion • Interferes with transcription factors and alters the microorganism’s regulation • Does not inhibit bacterial Binding of MGB-BP-3 compound to the DNA replication DNA minor groove; NMR-derived structure 3 Truly Novel Anti-Infectives

  4. Creating Our Novel Technology Platform The basic structure of the MGB chemical platform is based on distamycin A Distamycin A Head Head BB 1 BB 1 BB 2 BB 2 BB 3 BB 3 Tail Tail • Changing the type, position and links of the building blocks and by introducing different head and tail components and side radicals, enables specific activity against different microorganisms • Principal components of IP: • new building blocks - in particular a thiazole • short, branched alkyl chains as part of the thiazole • alkenes as links between the building blocks 4 Truly Novel Anti-Infectives

  5. MGB-BP-3 – Our Lead Molecule • Oral formulation for C. difficile infections – endorsed by MHRA to progress into a phase I study • I.V. formulation targeting a broad range of Gram +ve pathogens - clinic-ready in 2014 • Topical formulation – feasibility testing 5 Truly Novel Anti-Infectives

  6. Broad Gram +ve antimicrobial activity in vitro Potent antibacterial activity against all the Gram-positive bacteria tested Activity against Gram-positive bacteria superior to vancomycin MGB-BP-3 Vancomycin Organism MIC50 MIC90 MBC50 MBC90 MIC50 MIC90 MBC50 MBC90 n= (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) Group B Streptococci 15 0.25 1 0.25 1 0.5 2 0.5 2 Group C Streptococci 15 0.25 1 0.5 1 0.5 1 0.5 1 Group G Streptococci 15 0.5 0.5 0.5 0.5 0.5 1 0.5 1 Methicillin-resistant Staphylococcus aureus 15 1 2 1 2 1 1 1 2 Methicillin-resistant Staphylococcus epidermidis 15 0.25 0.5 0.5 2 2 4 2 4 Methicillin-susceptible Staphylococcus aureus 15 0.5 1 1 2 1 2 1 2 Methicillin-susceptible Staphylococcus epidermidis 15 0.25 0.5 0.25 2 2 2 2 2 S. constellatus 15 0.25 0.5 0.5 1 1 1 1 2 S. mitis 15 0.5 2 0.5 2 0.5 1 0.5 1 Streptococcus pyogenes 15 0.25 0.5 0.25 2 0.5 0.5 0.5 0.5 Vancomycin-resistant Enterococcus faecalis 15 2 2 >32 >32 >32 >32 >32 >32 Vancomycin-resistant Enterococcus faecium 15 1 2 >32 >32 >32 >32 >32 >32 Vancomycin-susceptible Enterococcus faecalis 15 1 2 >32 >32 1 2 16 >32 Vancomycin-susceptible Enterococcus faecium 15 1 2 >32 >32 1 2 32 >32 6 Truly Novel Anti-Infectives

  7. MGB-BP3 is superior to vancomycin against C. difficile in in vitro tests MGB-BP-3 was found to be superior to vancomycin against 3 Clostridium difficile strains, including the most virulent strain, NAP1/027. Graph plotting log 10 reduction of viable cells against time on Graph plotting log 10 reduction of viable cells against time on Graph plotting log 10 reduction of viable cells against time on exposure to x2, x4 and x8 the MIC of MGB-BP3 and vancomycin exposure to x2, x4 and x8 the MIC of MGB-BP3 and vancomycin exposure to x2, x4 and x8 the MIC of MGB-BP3 and vancomycin against C . difficile isolate ATCC 700057 against C . difficile isolate NCTC13366 (NAP1/027) against C . difficile isolate 113703-13 8 8 8 MGB-BP3, all MGB-BP3 x2 concentrations MGB-BP3 x2 MGB-BP3 x4 Vancomycin x2 MGB-BP3 x4 MGB-BP3 x8 6 6 6 Vancomycin x4 MGB-BP3 x8 Vancomycin x2 Vancomycin x8 Vancomycin x4 Vancomycin x2 Control Vancomycin x8 Vancomycin x4 4 Control 4 4 Vancomycin x8 log 10 reduction log 10 reduction log 10 reduction Control 2 2 2 0 6 12 18 24 0 0 6 12 18 24 6 12 18 24 Time(h) Time(h) Time(h) -2 -2 -2 -4 -4 -4 7 Truly Novel Anti-Infectives

  8. MGB-BP3 is superior to vancomycin against C. difficile in an animal model of infection MGB-BP-3 was found to be at least as effective at improving survival as oral vancomycin, and its microparticle formulation was superior at reducing the recovery of C. difficile from the small intestine, caecum and colon in a hamster CDAD infection model. EUPR_356002_CDIFF001 Survival data following infection with Clostridium difficile 6 VEHICLE PO BD 5 VANCOMYCIN 25mg/kg PO BD NUMBER OF HAMSTERS 4 MGB-BP-3 FORMULATION (MICROPARTICLES) 3 10mg/HAMSTER PO BD MGB-BP-3 SUSPENSION (API) 10mg/HAMSTER PO BD 2 UNTREATED 1 0 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 DAYS POST INFECTION 8 Truly Novel Anti-Infectives

  9. Global Gram +ve Pipeline – Lacks Novelty Class Drug delafloxacin Fluoroquinolones nemonoxacin JNJ-Q2 tedizolid Oxazolidinones radezolid cethromycin Ketolides solithromycin dalbavancin Lipoglycopeptides oritavancin Pleuromultins BC-3781 Peptidomimetics PMX-30063 Fab Inhibitors AFN-1252 9 Truly Novel Anti-Infectives

  10. US GAIN Act - Designed to Reward Novelty Generating Antibiotic Incentives Now (GAIN) Act FDA issued a proposed rule listing pathogens that would be eligible for drug development incentives under the Generating Antibiotic Incentives Now (GAIN) Act. The pathogens are: species of Acinetobacter, Aspergillus, Campylobacter, Candida, Enterococcus and Pseudomonas as well as Clostridium difficile , Enterobacteriaceae, Neisseria gonorrhoeae, Neisseria meningitidis , Staphylococcus aureus , Streptococcus agalactiae , Streptococcus pneumoniae , Streptococcus pyogenes , Vibrio cholerae, the Burkholderia cepacia complex of species, the Mycobacterium tuberculosis complex of species and non-tuberculous Mycobacteria species. FDA is required to consider four factors in establishing and maintaining the list: impact on the public health due to drug-resistant organisms in humans; rate of growth of drug-resistant organisms; increase in resistance rates and morbidity and mortality. • 7 out of the 17 “GAIN” pathogens are sensitive to MGB-BP-3 • GAIN will allow MGB Biopharma and its partners to generate attractive returns from its novel anti-infective platform 10 Truly Novel Anti-Infectives

  11. MGB’s Novelty could Deliver High Returns MGB-BP-3 attractive market positioning: Highly novel broad range anti-Gram positive agent : • Used where existing agents (such as vancomycin, daptomycin and linezolid) are relatively ineffective due to resistance • GAIN would allow attractive pricing of such a “life saving” agent • Novelty would drive initial uptake in line with Antibiotic Stewardship policy - limited marketing spend • GAIN initiative could potentially allow for a more efficient and targeted approach to clinical development – faster and lower costs • Limited completion would enable MGB-BP-3 to gain significant market share • A very attractive business proposition targeting a large market opportunity 11 Truly Novel Anti-Infectives

  12. Novel Anti-Infectives Platform Lead Discovery Hit-to-Lead Preclinical Phase I Phase II Optimisation MGB-BP-3 C. diff oral MGB-BP-3 MRSA etc. IV MGB-BP-3 topical Gram-negative Anti-fungal Anti-viral Anti-parasitic 12 Truly Novel Anti-Infectives

  13. MGB Biopharma – Delivering True Novelty • Developing a truly novel class of drugs for infectious diseases based on the University of Strathclyde’s MGB Technology • This platform provides an opportunity to develop various compounds against bacteria, viruses, fungi and parasites with a completely new mode of action • MGB-BP-3 is the first compound from this platform, with strong activity against Gram-positive pathogens, ready to progress into the clinical development • Clearly meets one of the world’s major public health requirements • MGB Biopharma is on track to be the first developer of a truly novel antibacterial for more than a decade - major beneficiary of the GAIN initiative in the US 13 Truly Novel Anti-Infectives

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