BUSINESS UPDATE CALL September 7, 2017 INTRODUCTION Gem Hopkins - - PowerPoint PPT Presentation

BUSINESS UPDATE CALL

September 7, 2017

INTRODUCTION

Gem Hopkins VP, Investor Relations & Corporate Communications

Business Update I September 7, 2017

SAFE HARBOR STATEMENT

This presentation and any statements made for and during any presentation or meeting contain forward-looking statements related to Synergy Pharmaceuticals Inc. under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements may be identified by the use of forward-looking words such as "anticipate," "planned," "believe," "forecast," "estimated," "expected," and "intend," among others. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, the development, launch, introduction and commercial potential of TRULANCE™; growth and opportunity, including peak sales and the potential demand for TRULANCE, as well as its potential impact on applicable markets; market size; substantial competition;

• ur ability to continue as a going concern; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of

government or third party payer reimbursement; dependence upon third parties; our financial performance and results, including the risk that we are unable to manage our operating expenses or cash use for operations, or are unable to commercialize our products, within the guided ranges or

• therwise as expected; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. As with any

pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that future clinical trials discussed in this presentation will be completed or successful or that any product will receive regulatory approval for any indication or prove to be commercially successful. Investors should read the risk factors set forth in our most recent periodic reports filed with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2016. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Forward-looking statements included herein are made as of the date hereof, and we do not undertake any obligation to update publicly such statements to reflect subsequent events or circumstances except as required by law. The information in this presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

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Business Update I September 7, 2017

AGENDA

• Business Overview – Gary S. Jacob
• Financial Update – Gary Gemignani
• Launch Update – Troy Hamilton
• Closing Remarks – Gary Jacob
• Q&A Portion

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OVERVIEW

Gary S. Jacob, PhD Chairman & CEO

Business Update I September 7, 2017

RECENT HIGHLIGHTS

• Completed first full quarter of launch of Trulance in CIC
• More than 12,600 prescriptions, $2.3M net revenues, for 2Q17
• Trulance sNDA for IBS-C accepted for FDA review
• January 24, 2018 PDUFA date
• Secured $300 million debt financing

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Business Update I September 7, 2017

KEY BUSINESS PRIORITIES

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• Optimize the value of Trulance
• Continue to grow market share in CIC
• Expand utility in IBS-C – January 24, 2018 PDUFA date
• Ensure a strong financial foundation
• Continue to evaluate opportunities to improve expense management
• Transition Company to cash flow positive
• Maximize long-term shareholder value

FINANCIAL UPDATE

Gary Gemignani EVP, Chief Financial Officer

Business Update I September 7, 2017

• Secured $300 million debt financing
• Funds will be used primarily to support the commercial launch of Trulance
• Non-dilutive source of capital that enhances cash position
• Continue to evaluate opportunities to improve operating efficiency and

expense management ENSURING A STRONG FINANCIAL FOUNDATION

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TRULANCE LAUNCH UPDATE

Troy Hamilton EVP, Chief Commercial Officer

Business Update I September 7, 2017

RIGHT

STRATEGY

RIGHT

PRODUCT

RIGHT

MARKET

RIGHT

TEAM

SYNERGY AND TRULANCE: WELL POSITIONED FOR SUCCESS

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Business Update I September 7, 2017

KEY CUSTOMERS AND LAUNCH STRATEGIES

Launch Strategies

Drive Awareness of Trulance and Stimulate Trial and Adoption

HCPs PAYERS PATIENTS

Ensure Access Activate and Support the Rx Ready Patient

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Business Update I September 7, 2017

LESS THAN 20% OF PRESCRIBERS ARE WRITING 70% OF THE TOTAL BRANDED PRESCRIPTIONS

Decile Rx Mean # of Doctors % of Doctors # of Prescriptions % of Prescriptions 10 460 753 0.5% 346,054 10.0% 9 245 1,411 0.9% 346,028 10.0% 8 163 2,120 1.3% 346,114 10.0% 7 113 3,057 1.9% 346,196 10.0% 6 78 4,440 2.7% 346,134 10.0% 5 54 6,448 4.0% 346,132 10.0% 4 36 9,484 5.9% 346,141 10.0% 3 24 14,549 9.0% 346,145 10.0% 2 14 25,109 15.5% 346,109 10.0% 1 4 94,563 58.4% 346,071 10.0% Total 161,934 100% 3,461,124 100% 4-10 27,713 17% 2,422,799 70% Branded Rx Combined

27,713 HCPs = 70% of Rx’s

• ~ 45% primary care physicians
• ~ 30% gastroenterologists
• ~ 18% nurse practitioners or

physician assistants

Decile 3: 2 Rx’s per month Decile 2: ~ 1 Rx per month Decile 1: = 1 Rx every 3 months

Source: QuintilesIMS Xponent - March 2017; excluding non-called on specialties (peds, pain, hem/onc)

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Business Update I September 7, 2017

Key Points:

• The ~27K prescribers are within 15K

group practices/offices

• Reaching the 27K prescribers with an

experienced sales force and surround sound of promotional efforts

TARGETED COMMERCIAL STRATEGY FOCUSED ON A CONCENTRATED PRESCRIBER BASE

1.0MM TRx (30%)

2.4MM TRx (~70%)

Branded Rx Market

27,713 Prescribers

134,221 Prescribers

Source: QuintilesIMS Xponent - March 2017; excluding non-called on specialties (peds, pain, hem/onc)`

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Business Update I September 7, 2017

HCPs

• Drive Awareness of

Trulance and Stimulate Trial / Adoption

• Activate and Support the

Rx Ready Patient

• Ensure Access

ü Sales force of ~ 250 educating ~ 27,000 prescribers ü Over 360,000 sample packs distributed to field to date ü ~ 430 peer-to-peer speaker programs, > 6000 attendees ü Launched comprehensive HCP media plan ü DDW 2017 – significant promotional presence; 6 abstracts (two posters of distinction, one oral presentation)

KEY LAUNCH STRATEGIES AND ACTIVITIES

Source: Company Data

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Business Update I September 7, 2017

ü Trulance Campaign:

▬ Point of Care Promotion: ~ 20,000 offices ▬ Web Sponsorships/Display Ads: > 245,000,000 impressions ▬ Search Engine Marketing: > 403,000 clicks ▬ Trulance.com visits: > 615,000 for consumer site

ü Confront Constipation Campaign:

▬ Disease awareness initiative ▬ 33 original media placements ▬ > 310,000,000 media impressions ▬ > 95,000 Emoji App downloads

KEY LAUNCH STRATEGIES AND ACTIVITIES

• Drive Awareness of

Trulance and Stimulate Trial / Adoption

• Activate and Support the

Rx Ready Patient

• Ensure Access

PATIENTS

Source: Company Data

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Business Update I September 7, 2017

ü Removing barriers and gaining commercial open access ü > 67% of patients with commercial insurance currently have unrestricted access; 2018 discussions ongoing ü Trulance Access Support Services Program

▬ “Savings-to-Go” program: copay of $25/Rx for > 95% of patients with commercial insurance ▬ Prior authorization support

ü Medicare Part D and Medicaid Discussions Ongoing

KEY LAUNCH STRATEGIES AND ACTIVITIES

PAYERS

• Drive Awareness of

Trulance and Stimulate Trial / Adoption

• Activate and Support the

Rx Ready Patient

• Ensure Access

Source: Company Data

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KEY PERFORMANCE METRICS

Business Update I September 7, 2017

TRULANCE TOTAL MONTHLY PRESCRIPTION VOLUME HAS INCREASED OVER 140% ON AVERAGE MONTH-OVER-MONTH

Source: QuintilesIMS

19 394 1843 4149 6262 7186

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Mar-17 Apr-17 May-17 Jun-17 Jul-17

TRx Volume

Trulance Monthly Total Prescriptions

394 2237 6386 12648 19834

5,000 10,000 15,000 20,000 25,000 Mar-17 Apr-17 May-17 Jun-17 Jul-17

TRx Volume

Cumulative Trulance Monthly Total Prescriptions

Business Update I September 7, 2017

124 244 282 422 489 628 730 856 952 1,115 1,002 1,252 1,327 1,576 1,624 1,348 1,754 1,742 1836 1867 1901 1923 2006

500 1,000 1,500 2,000 2,500 3/24/17 3/31/17 4/7/17 4/14/17 4/21/17 4/28/17 5/5/17 5/12/17 5/19/17 5/26/17 6/2/17 6/9/17 6/16/17 6/23/17 6/30/17 7/7/17 7/14/17 7/21/17 7/28/17 8/4/17 8/11/17 8/18/17 8/25/17

TRx Volume

Trulance Weekly TRx Volume

TRULANCE TOTAL WEEKLY PRESCRIPTION VOLUME SHOWING CONSISTENT GROWTH

Holiday Week Holiday Week

148 392 674 1096 1585 2213 2943 3799 4751 5866 6868 8120 9447 11023 12647 13995 15749 17491 19327 21194 23095 25018 27024

5,000 10,000 15,000 20,000 25,000 30,000 3/24/17 3/31/17 4/7/17 4/14/17 4/21/17 4/28/17 5/5/17 5/12/17 5/19/17 5/26/17 6/2/17 6/9/17 6/16/17 6/23/17 6/30/17 7/7/17 7/14/17 7/21/17 7/28/17 8/4/17 8/11/17 8/18/17 8/25/17

TRx Volume

Cumulative Trulance Weekly TRx Volume

Source: QuintilesIMS

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Business Update I September 7, 2017

TRULANCE NEW-TO-BRAND PRESCRIPTION MARKET SHARE AT 13.3% AMONG GASTROENTEROLOGISTS

Source: QuintilesIMS

LAUNCH

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31.8% 21.0% 66.9% 65.7% 12.9% 13.3% 0% 10% 20% 30% 40% 50% 60% 70% 80%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

NBRx Market Share

NBRx Market Share Among Gastroenterologists

Amitiza Brand Linzess Brand Linzess 72mcg Trulance 3mg

LAUNCH

Business Update I September 7, 2017

TRULANCE PRESCRIBERS HAVE INCREASED AN AVERAGE OF 136% MONTH-OVER-MONTH SINCE LAUNCH

Source: QI XPT, Mar – Jul 2017

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257 1,145 2,427 3,768 4,949 1,000 2,000 3,000 4,000 5,000 March April May June July

Cumulative Trulance Prescribers

Business Update I September 7, 2017

MAJORITY OF TRULANCE GROWTH COMING FROM PATIENTS NEW TO BRANDED RX TREATMENTS

• 51% of Trulance NRx were new branded

Rx therapy starts

• 43% of Trulance patients have converted

from other Rx treatments

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Source: Weeks ending 3/17 – 6/30, QIMS XPD

Switch To 43% New Therapy Starts 51%

Trulance NRx Breakdown

Add on 6%

Business Update I September 7, 2017

• Positive early launch results
• Early prescriber and patient experience appears promising
• Continue to execute on our launch plan
• Opportunity to “broaden the base” and build off of successful Trulance launch
• DTC development
• Prepare for IBS-C launch

OPTIMIZING THE VALUE OF TRULANCE

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CONCLUSION

Gary S. Jacob, PhD Chairman & CEO

Business Update I September 7, 2017

RECAP OF OUR KEY BUSINESS PRIORITIES

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• Optimize the value of Trulance
• Ensure a strong financial foundation
• Maximize long-term shareholder value

Q&A SESSION

September 7, 2017