The market opportunity for ADC manufacturing

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ADCs: the opportunity

Barry Heavey,

Head of Life Sciences

IDA Ireland

June 20

th

, 2014

ADC market opportunity

7000000

– Herceptin:

 Launched 1998

 patent expiration 2014

 Controversy over price/efficacy

 Mylan & Biocon Biosimilars in India

6000000

5000000

4000000

3000000

2000000

1000000

– Kadcyla:

 Herceptin ADC

0

2006 2007 2008 2009 2010 2011 2012

 80% of US oncologists are prescribing only 9 months after FDA approval

 $100M in Q1 2014

 Peak sales estimate $2-5bn

2

ADC market opportunity

– Brentuximab

 Millenium/Takeda pipeline antibody

 2000-2010: Failed to show efficacy in clinical trials for Hodgkins

Lymphoma

– Brentuximab-vedotin (ADCetris)

 Partnership with Seattle Genetics to develop ADC version

 34% complete remission, 40% partial remission

 Accelerated approval 2012

 2015 sales target €420M

3

ADC market opportunity

– “Biobetters” of existing Mabs: kadcyla

– “Reactivate” shelved Mabs: Adcetris

– Precedents for strong efficacy, fast track status

– Part of overall strong momentum in oncology

 €42Bn chemotherapy market growing through innovation

– Regulators/payors/clinicians getting familiar with ADC technology

– All major pharma companies now developing ADCs

 2013: 100 ADCs in clinical trials

4

Selected ADCs in clinical development

Antibody-drug conjugate

Mylotarg (gemtuzumab ozogamicin)

Adcetris (brentuximab vedotin,

SGN-35) trastuzumab-DM1 inotuzumab ozogamicin lorvotuzumab mertansine

Sponsor company Cellular target Phase of development

Pfizer

Seattle

Genetics/Millennium

(Takeda)

Roche/Genentech/

Chugai

Pfizer

ImmunoGen

CD33

CD30

HER2

CD22

CD56 withdrawn from market

Approved

Approved phase III phase II glembatumumab vedotin Celldex Therapeutics GPNMB phase II

BT-062 Biotest + ImmunoGen CD138 phase I/II

SAR-3419

IMGN529

SGN-75

ASG-5ME

ASG-22ME

Sanofi + ImmunoGen

ImmunoGen

Seattle Genetics

Agensys (Astellas) +

Seattle Genetics

Agensys (Astellas) +

Seattle Genetics

CD19

CD37

CD70

SLC44A4

Nectin-4 phase I phase I phase I phase I phase I

5

ADC market opportunity

– Technology maturing

 VC backing for novel technology

• linker/conjugation chemistry/site-specific conjugation/payload

 Investment in supporting services

• Specialised CMOs – linkers, conjugation, high containment FF

• Specialised CROs for QA/QC?

 Investment by equipment/technology companies

• Process engineering for conjugation

• Improved containment tech

• Improved analytics (process and product)

• Single use ADC mfng systems

 Specialised conferences, industry working groups etc etc

– Broad investment helps mitigate technology risk

6

ADC Global Manufacturing Capabilities

Future location

7

Case study: Adcetris supply chain

Abbvie

(Antibody)

AMRI (Drug linker mfmg)

SAFC (Drug linker mfng)

Piramal healthcare

(Conjugation)

Pierre Fabre

(Fill/finish)

8

ADCs: B-2-B collaboration essential

9

The opportunity for Ireland

– Ireland is winning high value manufacturing FDI

 Biotech DS/DP

 High potency API/formulation

 Single product sites transitioning to multiproduct sites

 Combination products: drug-device combos

 Global release testing

 Packaging

 Responsibility for management of complex supply chains

– VC funds being attracted to Ireland

 Can attract innovator companies

– Technology providers in Ireland

 Indigenous: PM, DPS, Prosys…

 MNC: GE, Waters, PPD, Millipore…

– Manufacturing a priority area for state investment (R&D grants)

10

$2bn in Recent Investment Wins

April. 2014

Manufacturing of biologic device combination product.

270 jobs $100M

April. 2014

Global supply chain, quality fill finish & packaging.

250 jobs $100M

Aug. 2013

$300M investment in 400,000ft2 biotech drug substance facility

July. 2013

Establishing packaging, quality and supply chain function in Dublin

Feb. 2013

$44m investment in Biotech campus

Employs > 500

Employs > 100

Apr. 2012

$200m investment

Employs > 300

Apr. 2012

New Biotech facility in Cork

$420m/200 jobs

Apr. 2012 Jan. 2012

$500m investment in two strategic sites

$350m investment

Respiratory and sterile fill finish

Manufacturing & development

Employs > 700 200 new jobs

June. 2011

Manufacturing plant

$50m/100 jobs

11

Biopharma Cluster

In Ireland

More than 5,000 people employed in Biotech development and manufacturing in 2014

7% employment growth per annum since 2009

NIBRT provided training in biopharma manufacturing to

2,000 people in 2013

Recent supply chain management projects in pharma

Company Project Location Functions Second site

Athlone Jazz Nov 2012 Dublin Tech ops, SCM, QC, finance,

Legal, treasury

Regeneron June 2013 Dublin Regulatory affairs, SCM

Alexion

Endo

Sept 2013

50 +

250jobs

Dublin SCM, procurement

April 2014 Dublin SCM, Regulatory, quality, IP, commercial

Limerick

300 jobs

Athlone

70 jobs

Athlone

Biomarin May 2014

50 jobs

Dublin International Sales support,

SCM, procurement

Cork

100 jobs

13

Why Ireland for biopharma FDI?

– 9 of the world’s top 10 Pharmaceutical companies

– 83 plants - 33 FDA approved.

– 17 Biopharmaceutical plants

– Exports €55 billion in 2012.

– 24,500 people directly employed plus 24,500 indirect

– Strong regulatory track record – FDA/IMB

– Government R&D support through IDA and SFI

– National Institute for Bioprocessing, Research and Training (NIBRT)

– Construction/engineering capacity and capability.

– Strategic sites.

– Cluster development

Developing an “ADC Cluster”

– IDA committed to supporting ADC investments through grant aid

 Biopharma companies: grants for in-house process R&D

 Supplier companies: grants for new product/service development

15

Developing an “ADC Cluster”

– IDA committed to supporting ADC investments through grant aid

 Biopharma companies: grants for in-house process R&D

 Supplier companies: grants for new product/service development

EPA

1%

Government spend on

R&D

(€800M in 2012)

IRCSET 3%

DJEI 3%

DAFM 4%

HRB

5%

Teagasc

7%

Others

6%

HEA

28%

IDA

Ireland

8%

SFI

20%

EI

14%

16

Developing an “ADC Cluster”

– IDA committed to supporting ADC investments through grant aid

 Biopharma companies: grants for in-house process R&D

 Supplier companies: grants for new product/service development

 Indigenous companies – support from Enterprise Ireland

 Opportunities for B-2-B collaboration

– SFI/EI supports for industry academic collaborations/consortiums

– NIBRT as a neutral venue/pilot scale test-bed/showcase facility

 R&D programs = marketing collateral for FDI

– Networking/mobilising the sector

 Biopharma industry tech group

 Establish Subgroup on ADCs?

 Spot opportunities for B-2-B collaboration

 Develop proposals for publically funded research programs

17

To learn more log on to idaireland.com

+353 1 6034285

Barry.heavey@ida.ie

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