Developing first in class cardiovascular drugs JUNE 2016 - - PowerPoint PPT Presentation

developing first in class
SMART_READER_LITE
LIVE PREVIEW

Developing first in class cardiovascular drugs JUNE 2016 - - PowerPoint PPT Presentation

Developing first in class cardiovascular drugs JUNE 2016 Highlights Lead drug candidate, QGC001, currently in 30-patient phase IIa in hypertension - data expected in Q3 2016 Novel therapeutic class - brain aminopeptidase A inhibitors (BAPAIs)


slide-1
SLIDE 1

Developing first in class cardiovascular drugs

JUNE 2016

slide-2
SLIDE 2

Highlights

Lead drug candidate, QGC001, currently in 30-patient phase IIa in hypertension - data expected in Q3 2016 Novel therapeutic class - brain aminopeptidase A inhibitors (BAPAIs) - provides antihypertensive effects and cardioprotection

2

Program QGC101 received approval in France to initiate a pan-european phase IIa in congestive heart failure in mid 2016 3 patent families granted, 3 patent families filed and starting to be granted Experienced management team and Scientific/Clinical Advisory Board Willing to target subgroups of patients in large indications with strong unmet medical need (hypertension and heart failure)

slide-3
SLIDE 3

3

“Hyper-pressure contributes to nearly 9.4 million deaths due to heart disease and stroke every year and, together, these two diseases are the number one cause of death worldwide. And, hyper-pressure also increases the risk of kidney failure, blindness and several other conditions. It often occurs together with other risk factors like obesity, diabetes and high cholesterol – increasing the health risk even further.”

WHO Chief Dr Margaret Chan – World Health Day April 07, 2013

Do you know that ?

Sources : (1) WHO (World Health Organization) - A global brief on hypertension, Silent killer, global public health crisis (2013), (2) the pharmaletter (June 2014), (3) Heidenreich et al, Circulation Heart Failure (2013)

1/3

Of adults ar more, depending on countriy has high blood pressure. With the proportion going up to one in two for people aged 50 and above(1)

9.4 million

Deaths worlwide every year due to complications of high blood pressure(1)

1/3

  • f humans is dying due to

cardiovascular diseases. 1st cause of death with 17 million deaths in the world each year(1)

$ 40 billion

Global anti-hypertensive drugs market in 2013(2)

$ 39 billion

Global heart failure drugs market estimate for 2015(3)

3

slide-4
SLIDE 4

4

Blockbuster patent expiration creates opportunity

Blockbuster (I.N.N.) Company Main Patent expiration date Diovan (valsartan)

  • Sept. 2012

Micardis (telmisartan)

  • Jan. 2014

Benicar, Olmetec (olmesartan)

  • Oct. 2016

Avapro, Aprovel (irbesartan)

  • Mar. 2014

Blopress (candesartan)

  • Jun. 2012

Antihypertensive drugs account for 5 of 10 top-selling cardiovascular products, each with annual sales >$1 billion Increasing generic threat creates significant need for innovative antihypertensive therapeutics candidates Pipeline lacks innovation; majority of late stage programs focused on combination therapies using existing drugs

Top-selling antihypertensive drugs

slide-5
SLIDE 5

BAPAI : novel therapeutic class

1

slide-6
SLIDE 6

6

BAPAI : a new therapeutic approach to treat hypertension and associated cardiovascular diseases

Brain Aminopeptidase A Inhibitors (BAPAIs)

Quantum Genomics, the BAPAI company, is developing first in class treatment targeting a new pharmacological pathway in the brain

Hypertension Heart failure Other diseases

Benefiting from more than 20 years of the highest standard academic research in Europe

Catherine Llorens-Cortes, PhD in Neurobiology, Director of the Central Neuropeptides and cardio-vascular hydro- regulation research team – College de France CIRB-CNRS UMR U1050 7241/INSERM

2014 Category « Research team »

slide-7
SLIDE 7

7

A triple mechanism of action with a single drug

Increase of the diuresis (urinary elimination) Inhibition of Aminopeptidase A BAPAIs are innovative drugs that target a new central pharmacological pathway leading to both antihypertensive effects and cardioprotection Lowering vascular resistance Controlling heart rate

Angiotensin II

BAPAI

Angiotensin III

Vasopressin release Sympathetic nerve activity Baroreflex

Mechanism of action described in several peer reviewed academic publications:

Bodineau & al – Hypertension – 2008 Marc & al – ProgNeuroscience – 2011 Marc & al – Hypertension - 2012

slide-8
SLIDE 8

8

Our goal is to target a specific population of patients : LRHV Low Renin High Vasopressin patients

LRHV is overexpressed in elderly, Asian, African American and Hispanic populations ACEs and ARBs drugs are not effective for those patients Mostly uncontrolled or poorly controlled : LRHV patients

slide-9
SLIDE 9

Robust pipeline of new drug candidates

2

slide-10
SLIDE 10

10

A robust pipeline of new drug candidates

CONGESTIVE HEART FAILURE HYPERTENSION

First-in-class

Prevention and treatment of congestive heart failure

QGC101

Tolerance, safety and efficacy In hypertensive patients Proof of efficacy single dose in hypertensive rats Regulatory Preclinical results Pharmacokinetics and toxicology (rats and dogs)

First-in-class

Treatment of hypertension as monotherapy

QGC001

Combination

Treatment of hypertension in combination

QGC011

Best-in-class

Optimized treatment

  • f hypertension

as monotherapy

QGC006

Identification of active compounds Preclinical studies Clinical studies Phase I Clinical studies Phase IIa Clinical studies Phase IIb Clinical studies Phase III New drug approval (NDA) Commercia- lization

Proof of efficacy repeated doses (post infarction rats and dogs models) and start of phase II

Quantum Genomics Partner

Typically, identification and preclinical phases last 2-3 years, a phase I 1-2 years, a phase IIa 1-2 years , a Phase IIb 1-2 years, a phase III 2-3 years and new drug approval and commercialization 2-3 years.

slide-11
SLIDE 11

11

QGC001, phase I trials

Target discovery Identification of active compounds Preclinical studies Clinical studies Phase I Clinical studies Phase II

First-in-class

Stand alone treatment

  • f Hypertension

QGC001

Phase Ia • 2012

Randomized, double blind, placebo controlled study

  • f single ascending doses in 80 healthy volunteers

Positive : overall safety and tolerability

  • f QGC001 up to 2g

Phase Ib • 2013

Randomized, double blind, placebo controlled study

  • f multiple ascending doses in 44 healthy volunteers

Positive : overall safety and tolerability

  • f QGC001 up to 750mg twice a day

and no food interaction

Phase IIa • Q1 2015

Initiation of a phase IIa in 30 hypertensive patients

Medical Doctor, University Professor – Hospital Practitioner Director of CIC 9201 (Cardiovascular, renal, endocrine pathology and physiology)

Michel Azizi, MD,

slide-12
SLIDE 12

QGC001, summary of the clinical findings in healthy normotensive subjects

Safety & Tolerability :

Clinically and biologically well-tolerated in healthy male subjects after a single oral dose up to 2000 mg and after multiple oral doses up to 750 mg b.i.d.

Pharmacokinetics

Rapidly absorbed with a Tmax of 1.5 hours QGC001 is partly converted in its active metabolite EC33 at the gastrointestinal tractus level Mild accumulation of QGC001 and EC33 and increase in half-life with time after repeated administrations

  • ver 7 days

No food influence on the pharmacokinetics profile of QGC001

QGC001 is not a hypotensive drug in healthy normotensive subjects

Pharmacodynamics :

No effect on blood pressure, heart rate, and the systemic Renin-Angiotensin System activity.

12

slide-13
SLIDE 13

QGC001, preclinical pharmacology in DOCA-Salt rats

Single oral administrations of RB150/QGC001 decrease mean blood pressure (MBP) in alert hypertensive rats (DOCA-salt rats) without affecting significantly heart rate (HR) Single oral administrations of RB150/QGC001 have no effect in normotensive rats (WKY and Sham rats)

Bodineau et al, Hypertension, 2008

RB150 = QGC001

13

slide-14
SLIDE 14

QGC001, preclinical pharmacology in SHR rats

Single oral administrations of RB150/QGC001 decrease mean blood pressure (MBP) in alert spontaneously hypertensive rats (SHRs)

Adapted from Marc et al, Hypertension, 2012 20 40 60 80 100

Saline SHR QGC001 100mg/kg Saline

** ∆1 ∆2 ** *** QGC001

(150 mg/kg)

Enalapril

(3 mg/kg)

QGC001

(15 mg/kg)

QGC001

(100 mg/kg)

Saline

  • 50

1 2 3 4 5 6 24

Temps (h) ** ** * ** ** ** ** ** * *

  • 40
  • 30
  • 20
  • 10

10 ∆MABP (mmHg)

* * * ED50 : 30 mg/kg

Brain APA activity Blood pressure

14

slide-15
SLIDE 15

QGC001, preclinical pharmacology in SHR rats

Inhibiting both the brain and the systemic RAS by combining QGC001 with an ACE inhibitor

  • r an AT1 receptor antagonist results in synergy of action and should improve the control of

BP in hypertensive patients

Adapted from Marc et al, Hypertension, 2012

  • 50,0
  • 40,0
  • 30,0
  • 20,0
  • 10,0

0,0 10,0 1h 2h 3h 4h 5h 6h 24h Time (h)

Valsartan (0.3 mg/kg) QGC001 (100 mg/kg) + Valsartan (0.3 mg/kg) QGC001 (100 mg/kg * * * QGC001(100 mg/kg) +Enalapril (1mg/kg) Enalapril (1 mg/kg) QGC001 (100 mg/kg) Saline

  • 50
  • 40
  • 30
  • 20
  • 10

10 ∆MABP (mmHg) 1 2 3 4 5 6 24 Time (h) ‡ * ‡ * ‡ * * ‡ **

**

**

15

slide-16
SLIDE 16

16

Phase IIa for QGC001: trial completed

Tapering and discontinuation of current HTA therapy 2 weeks 2 weeks 4 weeks 2 weeks 4 weeks No drug treatment Placebo Run-in Period Randomization 1:1 QGC001 Placebo Washout Period P1 Period P2 Placebo

A

Placebo Placebo Washout Period P1 Period P2 QGC001

B

4 Centers in France all labelled as “Centers of Excellence” by the European Society of

  • Hypertension. Principal Investigator: Pr. Michel Azizi - Hôpital Européen Georges Pompidou - Paris

Safety endpoints : Evaluated from signs, symptoms and laboratory tests at each visit Pharmacokinetics endpoints : Measured twice during each of the two treatments periods Efficacy endpoints include :

24 hours ambulatory blood pressure measurement (ABPM) Home blood pressure measurement (HBPM) Office blood pressure measurement (OBPM) Hormonal measurement of several biomarkers

slide-17
SLIDE 17

QGC001, progresses of trials in hypertension

Supervisory committee’s meeting* • 29 Sep. 2015

Conclusions concerning product tolerance in patients

Continuation of the study without any change to the clinical trial protocol

*a group of independent experts tasked with reviewing the data from the clinical trial

Last news on phase IIa :

17

Enrollment of 100% of patients • 5 Jan. 2016

(ahead of the recruitment schedule)

Over 75% of the patients have fully completed the trials.

Preparation of two phases IIb planned for 2017: one in the US for a targeted population and another in Europe Phase IIa trial was completed in April 2016 and results are expected in Q3 2016

slide-18
SLIDE 18

18

QGC101 : Launch of a Phase IIa clinical trial in humans by mid-2016

Professor Faiez Zannad, PhD, lead expert since July 2015 Head of the hypertension and heart failure unit of the cardiology department at Institut Lorrain du Cœur et des Vaisseaux (CHU Nancy)

Phase IIa • Q2 2016

Initiation of a phase IIa in humans

June 2015 : Proof of efficiency in a dog model. The results show an improvement during the fourth week in the cardiac ejection fraction in dogs treated over a 28-day period compared to untreated dogs. July 2015 : Signature of a research collaboration agreement in heart failure with University of Ottawa Heart Institute and the Center for Interdisciplinary Research in Biology at College de France.

2015 events : Mid 2016 : initiation of a phase IIa in congestive heart failure - muticentric in several European countries

slide-19
SLIDE 19

QGC101 : Rationale of BAPAI for the treatment of heart failure

Myocardial Infarction (MI) leads to an activation of the brain renin-angiotensin system and a sympathetic hyperactivity

Activation of excitatory angiotensinergic pathways Ang II release in e.g. PVN Plasma Ang II  Post MI Sympathetic Hyperactivity Circumventricular

  • rgans

19

slide-20
SLIDE 20

QGC101 : Rationale of BAPAI for the treatment of heart failure

QGC001 lowers brain APA activity in rats post myocardial infarction to normal levels

20

Adapted from Huang et al, Cardiovasc Res 2013 1 2 3 4 5 6 7 8 9 Brain APA activity (nmol ßNA/mg tissu/h)

Sham vehicle losartan QGC001

** *** *** ** Brain APA activity Myocardial Infarction induced by coronary artery ligation Measurement of :

  • brain APA activity
  • renal sympathetic nerve activity

(RSNA)

  • Left Ventricular function by

echocardiography and Millar catheter.

Chronic icv treatment for 4 weeks:

28 days

Vehicle Losartan (0.25mg/day) QGC001 (0.3mg/day)

MI

slide-21
SLIDE 21

QGC101 : Rationale of BAPAI for the treatment of heart failure

QGC001 reduces the renal sympathetic nerve hyperactivity and improves left ventricular dysfunction observed in rat post myocardial infarction better than losartan

21

Sham MI size (%) Vehicle Losartan QGC001 Renal sympathetic nerve activity (%) EF (%) LVPSP (mmHg) LVEDP (mmHg) dP/dtmax (mmHg/s)

  • 25 ± 1

24 ± 2 24 ± 1 7259 ± 293*† 17 ± 2 34 ± 2 * 23 ± 2 † 20 ± 2 † 92 ± 2 126 ± 2 3 ± 1 8076 ± 145 66 ± 3 * 120 ± 1 * 6116 ± 141 * 16 ± 2 * 63 ± 3 * 6740 ± 63*† 9 ± 1*† 118 ± 3* 124 ± 2 76 ± 2*† 9 ± 1*† Left ventricular function: MI

Adapted from Huang et al, Cardiovasc Res 2013

slide-22
SLIDE 22

Efficient organization and strong assets

3

slide-23
SLIDE 23

Management team

Lionel Ségard - President & CEO

Former CEO of’Inserm-Transfert, subsidiary of INSERM (French National Institute for Health and Medical Research) Founder and former president of Inserm Transfert Initiative (seed fund dedicated to healthcare young innovative companies) Founder of the Strategic Council for Innovation (secretary general from 2003 to 2005), The Council's goal is to boost French efforts in the field of research and high technologies and included key figures from France's science, industry and financial community Biochemist by training (University of South Paris - Orsay)

Jean-Philippe Milon, PhD - Chief Operating Officer

Several management positions at Bayer HealthCare, then member of the Worldwide Executive Committee as head of WW Business Development, Licensing, Mergers & Acquisitions Previously head of the cardiovascular business at Sandoz More than 25 years of experience in Healthcare mainly in the Pharmaceutical Industry

Marc Karako - Chief Financial Officer

Previously Executive Vice President & Chief Financial Officer of Carlson Wagonlit Travel Former Chief Financial and Legal Officer of Vallourec. Former Vice President Finance at Thomson Multimedia 10 years at IBM in various financial management positions. Master of engineering (Ecole des Ponts ParisTech) and MBA from the University of Chicago

Olivier Madonna - Chief Medical Officer

In depth knowledge of international R&D processes within pharmaceutical , biotech and medical device industries Previous experience as Head of cardiovascular medical depatrments with MSD and J&J MD Cardiologist , Nephrologist, Specialist in Internal Medicine

Fabrice Balavoine - Vice President Research & Development

15 years of experience in Drug Discovery and Drug Development Participated in the development of several drug candidates (new chemical entities, peptides and recombinant proteins) that reached clinical stages in different therapeutic areas. Ph.D. in Organic Chemistry from the University Paris-Sud, master of science from Ecole Supérieure de Physique et de Chimie Industrielle of Paris (ESPCI) and Executive MBA from the ESSEC & Mannheim Business School

23

slide-24
SLIDE 24

Pierre Corvol, MD, Chairman

Professor Emeritus at Collège de France • Honorary President of Collège de France Member of the Academy of Sciences • Member of the Academy of Medicine Member of the American Academy of Arts and Sciences

Professor Mark Caulfield

Co-director of William Harvey Research Institute, Barts and The London School of Medicine and Dentistry, Queen Mary University of London (UK) • Director of the NIHR Biomedical Research Unit in Cardiovascular Disease at Barts (UK) Member of the Academy of Medical Sciences in the UK

Professor Alexandre Persu

Head of the Hypertension Clinic, Cardiology Department, Cliniques Universitaires Saint-Luc, Catholic University of Louvain, Brussels, Belgium Member of the International and European Society of Hypertension 24

Scientific Advisory Board

In addition, a US Clinical Advisory Board was established in March 2016 with professors Keith Ferdinand, Henry Black and Howard Dittrich

slide-25
SLIDE 25

25

Strong and broad Intellectual Property

Patent family 1

(granted)

Patent family 2

(granted)

Patent family 3

(granted)

Patent family 4

(filed)

Patent family 5

(filed)

Patent family 6

(filed)

Owner

(exclusive WW license) (exclusive WW license) (exclusive WW license)

Area of invention Concept of BAPAI to treat hypertension (active ingredient patent) QGC001 for the treatment of hypertension and related diseases QGC006 for the treatment of hypertension and related diseases QGC001 trihydrate form (current product) for the treatment of hypertension and related disesases QGC011 for the treatment of hypertension and related diseases QGC001 L-lysine form for the treatment of hypertension and related diseases Status

Granted Granted Granted Under review *

Zone PCT +

Under review

Zone PCT

Under review *

Zone PCT +

Expiration date

14/01/2019 16/07/2023 * 06/08/2024 ** 07/11/2031 21/12/2032 * 10/22/2033 *

Patents operated by Quantum Genomics provide secure protection for future drugs up to 2033 (plus potential 5 years extension)

* Potential patent protection extention for 5 years ** Data exclusivity if the patent expires before the date of market availability ( 10 years in France, 5 years in the USA)

* Already granted in the US and several countries

slide-26
SLIDE 26

26

Simplified income statements and balance-sheet

Audited data in K€ French GAAP 2015 2014 Income 167.4 341.1 Personnel expenses (1,600.2) (1,302.8) Other operating expenses (2,877.3) (1,455.8) OPERATING RESULT (4,310.1) (2,417.5) FINANCIAL RESULT (192,9) (119,4) EARNINGS BEFORE TAXES (4,478.1) (2,541.9) RESEARCH TAX CREDIT 713.8 335.0 NET INCOME (3,764.3) (2,206.9) Audited data in € French GAAP 12/31/2015 Fixed assets 520.0 Inventory/receivables 1,085.1 Cash 8,652.1 Prepaid expenses 283.1 TOTAL ASSETS 10,540.3 Shareholders equity 8,022.0 Other equity (conditional advance) 727.5 Provisions 0.0 Financial debt 0.0 Current liabilities 1,790.8 TOTAL EQUITY AND LIABILITIES 10,540.3

Capital increase of 8.6 M€ in March 2016 in US & Europe, which could reach 14.1 M€ should all the attached purchase warrants be exercised.

slide-27
SLIDE 27

27

Optimized cash management

Data in K€ - audited FY 2015 FY 2014 FY 2013 Net income corrected for non-cash effects (3,764) (2,034) (1,532) Change in net working capital 386 (757) 545 Investments (368) (350) (113) FREE CASH FLOW (3,142) (3,141) (1,100) Capital increase 12,150 3,699 831 Borrowings and shareholders’ loans 3,307 1,043 Debt repayment (3,306) (1,042) (419) Other elements (mainly Bpifrance loans) 162 (75) FINANCINGS 8,844 8,210 1,380 Change in cash 5,334 2,984 280 CASH (END OF PERIOD) 8,652 3,318 334

€ 18.7 million

Cash expenses (primarily R&D)

Cash from inception

December 23, 2005 to December 31, 2015

€ 23.5 million

Equity financing

€ 1.8 million

Subsidies from Bpifrance (Public Innovation Bank) and ANR (National Research Agency)

€ 2.1 million

Research Tax Credits (RTC)

Capital increase of 8.6 M€ in March 2016

slide-28
SLIDE 28

28

Shareholding & stock exchange information

Current capital breakdown:

(8,390,320 shares)

Stock market data Listed on Alternext Paris since April 10, 2014. ISIN : FR0010783837. Ticker code : ALQGC. Public Equity Offering of 12.9 M€ in February 2015 Market capitalisation: 50,5 M€ as of May 31, 2016. Potential dilution Up to 1,605,517 new shares could be issued if all existing common share purchase warrants were to be exercised, which represents 16% potential dilution

  • Alix AM: 14.6%
  • Tethys : 11,8% (owns 33% of L’OREAL)
  • Management: 10,6%
  • Float: 63,0% (Europe and US)
slide-29
SLIDE 29

A strategy focused on rapid value creation

4

slide-30
SLIDE 30

Representative Transactions

Acquirer Developer Indication Status Terms

Heart Failure Phase II

Acquisition up to $ 2 billion+, with $300 M upfront and potentially a

further $1.775 billion based on development, regulatory and sales based milestones

Cardiovascular Phase I

Upfront payment + up to € 120 million license fees and milestone payments; Servier to continue development of XEN-D0103; Owns commercial rights ex US and Japan

Hypertension Phase II

Acquisition (90.3% of shares) : $ 882.3 million

30

Business Development strategy Goal

Building an alliance with a pharmaceutical company to develop the BAPAI platform

Upfront/ Milestones

Financing clinical and regulatory trials starting from the signature of the license

Royalties

The partner will be in charge

  • f marketing and sales activities

Starting sales ASAP after New Drug Approval Quantum Genomics will receive royalties on sales

Quantum Genomics targeting partnerships with big pharma

slide-31
SLIDE 31

31

Milestones

QGC101 QGC001

2016 2017

Start of 2 phases IIb:

  • In the US, on targeted population
  • In Europe, with focus on biomarkers

End of clinical part of phase IIa in Q4 Initiation of phase IIa in humans in Q2 Agreement with existing partner in animal health Phase IIa: Patients enrollment: 100% Study completion in April Results in Q3

slide-32
SLIDE 32

CONFIDENTIAL - NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

32

3 reasons to be a shareholder

QGC001: lead asset with blockbuster potential

Ended phase II for hypertension and starting phase II for heart failure Leading anti-hypertensive drugs facing patent expiration

Breakthrough therapeutic class in a huge market

$79 Billion in annual sales worldwide for anti-hypertensive and heart failure drugs >50% of hypertension patients lack adequate treatment 23 million people worldwide suffer from heart failure today

Robust pipeline of new drugs

3 compounds in development for hypertension and 1 for congestive heart failure Supported by strong intellectual property portfolio