LAO Aripiprazole OW Long Acting Oral aripiprazole Once Weekly An alternative option to Long Acting Injectables (LAI) in the rapidly expanding market for prevention of psychotic relapse Preventing Relapse in Schizophrenia and Bipolar Disorders with oral once-weekly, fully medically-supervised therapy Opportunity Summary • The total antipsychotic market in 2013 is US$ 24 billion; Zysis forecasts a 34.2% market share by value with peak year sales of ~1.4 billion USD. • Our Long Acting Oral aripiprazole Once Weekly product with medically supervised dosing is intended to reduce relapse rate in the mild to moderate maintenance population of schizophrenia patients who require approaches to increase adherence but who are not ready yet for the highly invasive and extremely expensive option of the long acting injectable (LAI). • An FDA New Drug Application submission is anticipated within 4 years, with a total investment of approximately US$23 million for clinical trial work required to reach this point. An open-label extension study (US$10 million) will be undertaken as part of the phase III program for pricing justification to demonstrate similar relapse rate improvements to LAIs. • This is a low-risk project with a high probability of technical success given the now established pharmacokinetic (brain & plasma), safety and efficacy profile of aripiprazole in schizophrenia. 2 Aripiprazole is the market leader in $24 Billion world wide Atypical Antipsychotic Market INVEGA/ SUSTENNA 3% INVEGA/ paliperidone 3% RISPERDAL/ risperidone 5% RISPERDAL CONSTA 7% ABILIFY/ Aripiprazole 30% $7.2 Billion $7.2 billion GEODON/ Ziprasidone 5% SEROQUEL/ quetiapine 26% ZPREXA/ olanzapine 18% Other 5% 3 Targeting unmet needs in schizophrenia – non-adherence Zysis is developing a true aripiprazole OW oral formulation • Non-adherence rates are extremely high with schizophrenia therapy – ~75% of patients with schizophrenia are non-adherent within 2 years of being discharged from hospital1 • The consequences of non-adherence are medically (and economically) severe – 69% of patients with poor adherence suffer a relapse2 – (Only 18% of patients with good adherence suffer a relapse2) • Poor adherence is a predictor of poorer outcomes – Poorly adherent patients are hospitalised more often, and for longer periods of time3,4 References 1. Weiden PJ et al. Psychiatr Serv, 1995; 46: 1049–1054 3. Valenstein M et al. Med Care, 2002; 40: 630–639 2. Morken G et al. BMC Psychiatry, 2008; 8: 32–38 4. Gilmer TP et al. Am J Psych, 2004; 161: 692–699 4 LAOs – An Alternative to LAIs for Psychotic Relapse Prevention LAO Aripiprazole – With Medically Supervised Dosing once weekly targets and prevents relapse before resorting to LAI therapy • First-in-class antipsychotic therapy for orally dosed relapse prevention • Better outcomes for doctors & patients – fewer relapses • Direct cost savings for payers - reducing relapse & medical staff costs • An earlier and more cost effective alternative to LAIs 5 How can we scientifically achieve aripiprazole oral OW? Three key characteristics define the strategy : - Gastrointestinal compartment Slow release from formulation & absorption over 24 to 48hours Plasma compartment Long plasma aripiprazole half-life (3 days) Brain compartment Very slow aripiprazole dissociation from the D2/D3 receptors in the striatum 6 Clinical testing of aripiprazole oral OW Mean pharmacokinetic performance demonstrates ideal SR profile Healthy volunteers for SR-A and SR-B vs immediate release (IR) reference 7 Steady-state pharmacokinetic comparisons Various IR and SR dosing regimens 30 mg IR OD 15 mg IR OD 10 mg IR OD 60 mg SR-A OW 100 mg SR-A OW 140 mg SR-A OW 100 mg IR OW (for illustrative purposes) 8 Zysis Phase II study design Comparing the receptor occupancy of aripiprazole OW with OD Dose-ranging PET study in schizophrenia patients • This study is a randomised, single-centre, multiple group study in 30 schizophrenia patients (as defined by the DSM-IV-TR criteria) • The primary objective of the study is to determine which dose of aripiprazole OW matches D2 and D3 receptor occupancy in the striatum region of the brain at trough (7 days post-dose), compared to aripiprazole OD. • All 30 patients will be treated with 15 mg aripiprazole OD for three weeks (steady state) followed by PET imaging of receptor occupancy. After the run-in period, the patients will be randomized to one of the following three groups:– Group 1: 60 mg aripiprazole OW (n=10) – Group 2: 100 mg aripiprazole OW (n=10) – Group 3: 140 mg aripiprazole OW (n=10) • After six weeks treatment with the OW regimen, PET imaging will be repeated at day 42 and compared to the IR OD findings. • Study will be undertaken with Professor Gerhard Gründer and Dr Wolfgang Greb at PharmaImage 9 Zysis Phase III study design Demonstrating maintenance of efficacy and improved relapse prevention for OW vs OD Several possible options for Phase III/clinical trials to launch Cost [USD] Time to regulatory submission [years] 0 0 1.5 Single Phase III study of 6 weeks’ drug treatment 625 12.5 million 3 Single Phase III study of 12 weeks’ drug treatment 625 18 million 3 1,250 36 million 4 Phase III options No Phase III study Two Phase III studies of 12 weeks’ drug treatment Patient numbers Likely Phase III strategy An Open-Label Extension phase will be required for any phase III program to gather relapse rate improvement data for pricing purposes 10 Zysis Phase III study design Demonstrating maintenance of efficacy for OW vs OD Topics under consideration ahead of EOP2 meeting with FDA • The primary efficacy endpoint of the study is the change in PANSS total score from baseline. All participants will be eligible to continue in an openlabel phase and receive aripiprazole OW for an additional 12 months. • The objective of the extension phase of the study is to assess the safety and long-term durability of effect for aripiprazole OW. • Three week run-in period for aripiprazole IR once daily before switch to aripiprazole OW to match phase II study design. • The effect of improved adherence strategies will be investigated as part of the extension study. Zysis regulatory strategy was validated by the phase III study design announced by Alkermes in December 2011 for ALKS 9070, a prodrug designed to provide patients with once-monthly dosing of aripiprazole 11 Zysis IP position Aripiprazole oral OW has a strong intellectual property position • Zysis filed a UK patent application on the SR aripiprazole formulation, which includes the OW positioning, with a priority date of 26 September 2006. A Patent Cooperation Treaty (PCT) application was filed 12 months later. • The patent application entered the national phase of prosecution in key markets (US, Europe, Japan, Israel, Australia, Canada and South Korea) with amended claims in March 2009 • Granted patent with broad claims in :– US (September 2013) – Europe (January 2012) – Israel (August 2012) – Australia (August 2013) • Ongoing prosecution in Canada, South Korea and Japan 12 LAO Aripiprazole OW – Targeting Psychotic Relapse Molecule Sustained Release Formulation Fully Medically Supervised Dosing The antipsychotic Aripiprazole has the best efficacy/side effect profile of all the atypicals Our patent protected sustained release formulation allows for oral once weekly dosing to become a reality by increasing drug residence time at the site of action. Fully Medically Supervised dosing ensures patients take every dose without forgetting and still demonstrates cost effective, health economic superiority to all other therapies. 13 Fully Medically Supervised Dosing eradicates all potential issues that may arise with a OW Oral product Issue • Once Weekly dosing can be more difficult to remember than once daily dosing Solution • Medically supervised dosing takes away the responsibility of remembering from patients ensuring continuous therapy provision (in common with LAIs) Issue • Many psychotic patients are on several once daily medications. Solution • Medically supervised dosing ensures that at least the most important therapy (the anti-psychotic) is taken and reduces the number of drugs the patient has to remember to take once daily. Issue • A OW product is simply a convenience product with no real therapeutic benefit so price has to be at generic level Solution • Medically Supervised Dosing ensures Relapse Rate Improvement which on a pharmacoeconomic basis justifies a higher price than generics albeit much more cost effective than LAIs 14 Launch Product Profile for LAO Aripiprazole OW Feature Benefit Long acting oral – otherwise as effective/safe etc as the once daily oral Patients only have to take their medicine orally, once weekly Structures are in place to support medically supervised patient dosing in the clinic & by medical staff in the community The responsibility of remembering to take the treatment is taken out of the patients hands using existing care platforms Observing the patient take the therapy can be done in the clinic by a minimally-trained person Requirements to monitor dosing in the clinic is not onerous – no litigation requirement for two in surgery cost, shorter paper trail, no needle disposal cost, no secure storage cost, no refrigeration cost, no waiting in surgery after dosing…all easier than a LAI One year study shows relapse rate reduction eg. from 45% to 20% for medically observed once weekly dosing Patients stay out of hospital and symptoms are under control HE modelling demonstrates substantial direct & indirect HE benefit priced at USD9 per day Patients on oral OW therapy cost less overall, long-term to treat USD 9 is justified by modelling and data generated through relapse rate improvement pricing study 15 Pricing and cost-effectiveness Key concepts to build a strong cost-effectiveness argument The argument justifying the price of LAO Aripiprazole OW: • Open label extension study will be added onto the Phase III program to investigate relapse rate improvement and generate the data for LAO Aripiprazole OW pricing arguments • Risperdal depot achieved 17% relapse rate in a similar open label extension phase study • LAO Aripiprazole OW should achieve at least an equal relapse rate to Risperdal Depot • Phase ii independent Health Economic Modelling justifies a price of USD 9 per day at a relapse rate of 17% per year Precedent is set with payers - LAIs use improvement in relapse rate to justify premium pricing 16 Modelling Medically Supervised Dosing for Aripiprazole OW Cost benefits are achievable with medically supervised dosing over all other therapies Cost Savings Per Patient Per year USD LAO Aripiprazole OW with medically supervised dosing at 9 USD/day Long-acting injectable Aripiprazole once monthly Long-acting injectable Paliperidone once monthly Long-acting injectable Risperidone twice monthly Long-acting injectable Generic once monthly Immediate release oral Branded daily therapy Immediate release oral Generic daily therapy $5,899 $4,804 $4,648 $889 $3,712 $427 The costs of Schizophrenia therapy are driven by the cost of relapse A treatment that improves relapse rates can justify a higher price (cf LAI Aripiprazole OM) 17 LAO Aripiprazole OW – Market Share Analysis Maintenance Market Segment* Disease severity and prevalence Disease severity Mild ~25% Adherent ~25% Oral Once-Daily Moderate ~65% Few Relapses ~10% Repeat Relapses ~55% Long Acting Oral Severe ~10% Frequent Relapses ~10% Long Acting Injection LAO Aripiprazole OW Conservative Scenario Market Share 10% of Repeat Relapses, or 5.5% of *Maintenance Market Segment Market Share of Total Schizophrenia Market = 3-4.2% (vol or pats) *Maintenance Market Segment represents 70% of total schizophrenia market 18 Forecast Sales Assuming Relapse Rate Improvement Data justifies 9 USD per Day Sales for a product priced at USD 9 Per Day, with a 3 - 4.2% market share: 2019 2020 EU Schizophrenia patients (m) US Schizophrenia patients (m) EU BP1 patients (m) US BP1 patients (m) EU Penetration of Ari OW (%) US Penetration of Ari OW (%) EU patients treated with Ari OW (k) US patients treated with Ari OW (k) 3.13 3.57 3.13 3.59 0.005 0.010 Total patients treated Price per patient per year Gross Sales ($m) * 2021 2022 2023 2024 2025 2026 0.010 0.020 3.14 3.61 3.14 3.61 0.015 0.025 3.14 3.63 3.14 3.63 0.020 0.030 3.14 3.65 3.14 3.65 0.025 0.035 3.14 3.68 3.14 3.68 0.030 0.040 3.15 3.70 3.15 3.70 0.030 0.042 3.15 3.72 3.15 3.72 0.030 0.042 15.66 31.35 94.11 125.56 157.06 188.61 188.74 188.87 35.68 71.79 180.54 217.95 255.80 294.10 310.66 312.52 51.34 2785 103.13 2785 274.65 2785 343.51 2785 412.87 2785 482.71 2785 499.40 2785 501.39 2785 142.97 287.19 764.79 956.55 1149.67 1344.15 1390.62 1396.18 * Sales in Major Depressive Disorder (MDD) are not included in this analysis however Aripiprazole Once Daily has an indication for this condition and off-label MDD sales are anticipated for Aripiprazole OW. 19 Upside Sales Analysis Once the Supervised Dosing strategy has achieved market acceptance… Why wait for multiple relapses? Last Resort The LAI Non-adherence re-emerges Non-adherence re-emerges Non-adherence re-emerges Re-stabilised 2-3 months in hospital Fourth Relapse (or more) Third Relapse Second Relapse First Relapse ‘To be used just before LAIs’ Becomes ‘To be used after first relapse, as non-adherence is clearly now an issue’ 20 Zysis Management Team • Dr Peter Cozens, Non-Exec Chairman – More than 30 years’ experience in licensing – Chairman of the Intellectual Property Advisory Committee of the UK BIA • Dr Ian Wilding, VP – Development – Founder of Pharmaceutical Profiles, a Phase 1 CRO – Leading authority in drug delivery and formulation development, with 250 patents and publications – Advisor to US FDA • Mr Russ Pendleton, VP – Commercial – 14 years in big pharma Sales & Marketing, including the global launch of three psychiatric drugs – Global Brand Manager – Seroquel, AZ – Founder of Cortex Congress Neuroscience Conference company; 12 years of establishing and managing conferences in psychiatry and neurology 21