Essentialis Changing the course of chronic disease Update on clinical study PC025 Presentation to FPWR Conference November 2014 1 Agenda Introduction MOA in Prader-Willi syndrome PC025 Interim Results Essentialis Changing the course of chronic disease 2 Introduction to Essentialis • Carlsbad, CA based, clinical stage, venture backed drug development company • Focused on development of activators or openers of the ATP-sensitive potassium (KATP) channel to treat orphan diseases Essentialis Changing the course of chronic disease 3 Products – Based on Patented Active • Diazoxide choline is a patent protected, proprietary salt of diazoxide • Formulated as – Once per day tablet – DCCR • Tested in more than 200 subjects to date – Oral solution – DCOS – IV solution - DCIV Essentialis Changing the course of chronic disease 4 Diazoxide – Long History of Safe Use Diazoxide • KATP channel agonist • IV treatment for malignant hypertension – First Approved 1973 and used through the 80’s, no longer available • Oral suspension for the treatment of insulinoma in adults and CHI in neonates and children – Approved 1976 and remains standard of care globally • More than 110,000 patient-years of chronic use Essentialis Changing the course of chronic disease 5 Agenda Introduction MOA in Prader-Willi syndrome PC025 Interim Results Essentialis Changing the course of chronic disease 6 Hyperphagia in PWS is most likely due to dysregulation of neurons in the hypothalamus Dysregulation of AgRP and POMC neurons will result in increased food intake and reduced energy expenditure DCCR may reduce this dysregulation Appetite Reduced food intake Essentialis Changing the course of chronic disease 7 DCCR has peripheral impacts that complement the central effect Synthesis of fat Long Chain fatty acids Use of fat as fuel DCCR coordinately down-regulates denovo synthesis of fatty acids by down regulating ACCase and FAS and upregulates β-oxidation of fat reducing fat stores Triglycerides Energy production Acetyl-CoA Fatty acids Triglycerides Fat Stores Essentialis Changing the course of chronic disease 8 DCCR may affect key neurotransmitters • Gamma-amino butyric acid (GABA) is an important neurotransmitter • In PWS – The expression of GABA-A receptors is diminished – GABA concentrations are markedly elevated – Likely leads to receptor desensitization – May be associated with aggressive behaviors • DCCR reduces GABA concentrations, may restore sensitivity, potentially reducing aggressive behaviors Essentialis Changing the course of chronic disease 9 DCCR - Mode of Action in PWS • DCCR – In the hypothalamus • Reduces dysregulation of key neurons - reducing the central starvation signal – Peripherally • Coordinately down-regulates synthesis of fats and upregulates the use of fat as fuel - reducing fat stores – Centrally • May restore sensitivity to GABA • Overall – Reduces hyperphagia, increases energy expenditure, reduces fat mass and weight, may impact aggressive behaviors Essentialis Changing the course of chronic disease 10 Agenda Introduction MOA in Prader-Willi syndrome PC025 Interim Results Essentialis Changing the course of chronic disease 11 PC025 Pilot Study Open label titration followed by randomized withdrawal Pilot Study of DCCR in obese, genetically confirmed PWS patients between 10 and 22 years • Being conducted at the University of California, Irvine • Up to12 patients • Total duration of treatment 14 weeks • Open label dose escalation 1.5 mg/kg to 5 mg/kg (titrated in 4 steps every 2 weeks) – 10 weeks • Last 4 weeks are a double-blind, placebo-controlled, randomized withdrawal extension – Randomized 1:1 to continue on dose or receive placebo – 4 additional weeks of treatment • Endpoints: hyperphagia, REE; exploratory – weight, BMI, fat mass, lean body mass, RQ, behaviors, endocrine and glycemic parameters Recruitment 4 more patients Essentialis Changing the course of chronic disease 12 Schematic of study Screening (up to 4 wks) Double-Blind, PlaceboControlled, Randomized Withdrawal Extension (4 wks) Open Label Treatment Period (10 wks) Base 4 wks line 2 wks 2 wks 2 wks 2 wks 2 wks 4 wks 5.1 mg/kg Day 55 dose or Placebo Equivalent for Responders and Day 0 1.5 mg/kg 2.4 mg/kg 3.3 mg/kg 4.2 mg/kg 5.1 mg/kg Day 55 dose for Non-Responders Essentialis Changing the course of chronic disease 13 Efficacy endpoints in PC025 Parameter Measured by Measured at Hyperphagia Questionnaire Every visit Body fat DEXA Screening or Baseline, 10 wks Lean body mass DEXA Behaviors Questionnaire Screening and 10 wks Weight Scale Every visit Resting energy expenditure Indirect calorimetry Baseline, 4 wks, 8 wks, 10 wks, 14 wks Respiratory quotient Indirect calorimetry Baseline, 4 wks, 8 wks, 10 wks, 14 wks Blood pressure Automated Every visit Lipids Lab assay Baseline, 10 wks Essentialis Changing the course of chronic disease Screening or Baseline, 10 wks 14 Patients enrolled in the study to date Parameter Baseline average (range) Sex 4 F/6 M Age 16 yr (11 - 21 yr) PWS sub-type All deletions GH treatment 3 Y/7 N Weight 92.3 kg (56.9 - 133.6 kg) Percent body fat 53.4 % (42.9 – 60.7%) BMI 40.1 (25 – 53.8) Hyperphagia score (0 – 34) 16.4 (3 – 25.5) Essentialis Changing the course of chronic disease 15 PC025 – Hyperphagia: High response rate statistically significant improvements • Hyperphagia response rate to DCCR is high ~ 87.5% – Statistically significant improvements in hyperphagia (~33% reduction) – Response is better or more durable in those who responded with baseline hyperphagia scores below 20 Baseline hyperphagia < 20 ≥ 20 N 4 3 Improvement in hyperphagia 39.7% 24.0% – Initial hyperphagia response observed at the two lowest doses Essentialis Changing the course of chronic disease 16 Results are confirmed by verbatim statements from parents • “She never misses her breakfast, lunch, snack, or dinner. Usually she asks for more food. But surprisingly she said she feels full. This has never happened before. She skipped her lunch!” • “It seems like my child is less interested in food” • “He is no longer getting up at night for food and digging through the trash!” Essentialis Changing the course of chronic disease 17 Other efficacy responses Efficacy Parameter Response Yelling/ aggressive / destructive/ threatening behavior Stopped Weight - 1.0 kg Body fat - 2.4% Lean body mass +3.33% in GH patients with no change in nonGH Resting energy expenditure + 90 kcal/day Fuel source Shift towards burning more fat as fuel Blood pressure and lipids Improvements are known effect of drug Essentialis Changing the course of chronic disease 18 PC025 – Interim results • Response occurring at very low doses of DCCR – Below the labeled range of diazoxide in its approved indication • Drug appears to be well tolerated Essentialis Changing the course of chronic disease 19 Safety • The most common adverse events – Peripheral edema • Often transient • Associated with the blood pressure lowering effect • Mechanism similar to that of other blood pressure lowering drugs – Potential to raise glucose levels • A small subset of patients are particularly sensitive and can be quickly identified Essentialis Changing the course of chronic disease 20 DCCR in PWS Next Steps • Complete pilot study • Our thinking on the development plan is evolving as interim data becomes available • Open a dialogue on development with FDA • Raise the funds to continue development Essentialis Changing the course of chronic disease 21