Lonza Peptides “The trusted peptides partner, serving your life cycle needs” Updated 14 Apr 2011 Disclaimer Certain matters discussed in this presentation may constitute forward-looking statements. These statements are based on current expectations and estimates of Lonza Group Ltd, although Lonza Group Ltd can give no assurance that these expectations and estimates will be achieved. The actual results may differ materially in the future from the forward-looking statements included in this presentation due to various factors. Furthermore, Lonza Group Ltd has no obligation to update the statements contained in this presentation. Note: All slides are incomplete without verbal comments. 14-Mar-16 slide 2 Nature: An unlimited source of inspiration! “Predatory marine cone snails use a diverse mixture of peptides known as Conopeptides in the capture of their prey … Each cone snail may contain up to 200 peptides and given there are over 700 cone snail species, … the library of bioactive peptides using animal venoms is huge.” 14-Mar-16 slide 3 Nature: An unlimited source of inspiration! Several peptides extracted from venoms are on the market: Brand Name Owner Source Captopril (Capoten) BMS viper venom Prialt® (Ziconotide) Airmid cone snail venom Byetta® (Exanatide) Amylin-Eli Lilly lizard venom Eptifibatide (Integrilin) Millenium/ Schering Plough snake venom 14-Mar-16 Images FPO, Sources: www. sandesh.com,www.fotopedia.com,www.bangkokpost.com. slide 4 Agenda The Challenges of Custom cGMP Peptides Manufacturing Customer Value Proposition Lonza, The Right Peptides Partner 14-Mar-16 slide 5 Complexity by Molecular Weight Chemical Molecule Peptide Protein Antibody Cell / Tissue Increasing Molecular Weight (MW) Aspirin (180 Da) 14-Mar-16 6mer (804 Da) Lysozyme (14,700 Da) Immunoglobulin G (150,000 Da) Surface of an Animal Cell slide 6 Process development know-how is the key to future success Right route selection from the beginning based on large-scale experience Robust process development Process validation Process optimization 14-Mar-16 slide 7 Capabilities and infrastructure are critical to success On average, producing 1 kg (net) of peptide generates over 5 metric tons of solvent. Required Infrastructure 14-Mar-16 Strategic (worldwide) sourcing Raw materials in rail-tank-cars Tank-farms No open handling Adequate warehousing Solvent recylcing systems Exhaust gas treatment Waste Disposal slide 8 Quality Impurity Profile Purity Scalable Process GMP 14-Mar-16 slide 9 HAPI Peptides AHSK* OEL ADI (Occupational Exposure Limit) (Acceptable Daily Intake) Mattplease add challenges 1 > 1mg/m3 > 10mg/d 2 0.1-1 mg/m3 1-10 mg/d 3 0.01-0.1 mg/m3 0.1-1 mg/d 4 0.1-10 µg/m3 1-100 μg/d 5 1-100 ng/m3 0.1-1 μg/d 6 < 1 ng/m3 < 10 ng/d Generic peptides like LHRH family are HAPIs, AHSK 5 (gosereline, decapeptil, leuprolide, busereline, desloreline, triptorelin…) Abarelix, degarelix are also AHSK 5 Avoid cross contamination AND protect the people Low cleaning limit * Lonza Occupational hygienic substance category 14-Mar-16 slide 10 Conjugate Peptides Peptides are versatile platforms for product design Lipid PEG Antibody PEPTIDE CPP 14-Mar-16 Sugar slide 11 Purity Purity challenges based on new regulation in 2010 95% Pre-clinical 96-97% Toxicology Commercial Phase I >98.0% Phase II Phase III European Pharmacopeia 6.5 14-Mar-16 slide 12 FDA New regulation will challenge peptide process development Stage 1: Process Design Stage 2: Process Qualification Stage 3: Continued Process Verification Process Life-cycle Phase 0+1 14-Mar-16 Phase 2 Phase 3 Launch / Production Generic slide 13 Agenda The Challenges of Custom cGMP Peptides Manufacturing Customer Value Proposition Lonza, The Right Peptides Partner 14-Mar-16 slide 14 Global, Integrated, Strategic Supply Chain Broad network of suppliers Negotiation power Regular suppliers audit Security of starting materials supply (Group synergies, back integration for raw materials) 14-Mar-16 slide 15 Large-Scale Manufacturing Expertise Multi-100 kgs of peptide API production yearly Large purification HPLC capacity (up to 60 cm) 3 Technologies (SPPS, HPPS,Recombinant DNA) 4 Sites (Belgium, Switzerland, Czech Republic, China) 14-Mar-16 slide 16 Benefit from Lonza synergies during your peptide API development 14-Mar-16 Peptides Conjugates Large-scale peptides for non-pharma applications (cosmetic, nutrition, detergent, surfaces treatment …) Highly potent peptides 2nd generation process for large-scale peptide manufacturing via recombinant technologies slide 17 Quality by Design at Lonza The definition A maximally efficient, agile, flexible pharmaceutical manufacturing sector that reliably produces high quality drug products with less extensive regulatory oversight A true answer to FDA expectations Build quality in the process Based on sound science and knowledge Proactive to problems Control strategy based on risk assessment Continuous improvement and process verification 14-Mar-16 slide 18 Quality by design A Tailored Approach in Process R&D Process Life-cycle process selection Phase 2 critical attributes risk assessment Process Design Launch / Production Phase 3 design space control strategy Process Qualification Generic continuous improvement Knowledge Phase 0+1 Continued Process Verification The roadmap to process validation 14-Mar-16 slide 19 Full Regulatory Support 14-Mar-16 DMF CMC section Audit Inspection track records Corporate experience Accreditation from Japanese authorities slide 20 Technology Development through R&D Outsourcing Modeling of Peptide Purifications Study of Peptide Aggregation Collaboration / thesis Centrifugal Partition Chromatography (CPC) Collaboration / Thesis Nanofiltration and Molecular Imprinting EU Program Trade secret Automatic Peptide Synthesizer Collaboration 14-Mar-16 Continuous process Thesis SPPS and Methodology Consulting and Route scouting slide 21 Easy, Effective, Regular Communication Peptide Specialists Steering Committee QA Customer Worldwide Sales Presence PM Operations Legal Customerdedicated Data SharePoint We bring everyone to the table In-house Video Conference Tools 14-Mar-16 slide 22 Time Savings We serve all your life cycle needs Full In-house Capabilities 30 Years of Peptide R&D expertise Large-Scale Manufacturing Know-How 14-Mar-16 slide 23 Costs Savings Route selection, scaleup capabilities and expertise (low-risk of tech. transfer) based on long-term customer forecasts Swiss Tax Structure: Lonza to collaborate to establish tax holiday opportunities for commercial deliveries 14-Mar-16 Strong expertise in process scaleup and cost improvement Lonza Nansha platform for ISO needs slide 24 Security of Supply for Chemical Processes Nansha, China Small scale (100mg 10g non-GMP) Braine, Belgium Large scale (solid and solution phase) 10 peptide chemists 50+ chemists/technicians Visp, Switzerland Large scale (solid and solution phase) USP + dedicated DSP 20+ chemists/technicians Multi-Site Financially Sound 14-Mar-16 Multi-Technologies Backward Integrated Peptides slide 25 Flexibility Unique Awareness of Peptide Challenges Four Shift Systems Experienced Project Management Team Multi-Site Custom Synthesis Mindset 14-Mar-16 slide 26 You will benefit from IP protection Product Life Cycle Management meeting, including Lonza patent support Transparency on Lonza IP strategy with our key customers to better protect their products from their competitors We aim to protect a customer’s product during its life cycle Access to Lonza patents portfolio 14-Mar-16 slide 27 Agenda The Challenges of Custom cGMP Peptides Manufacturing Customer Value Proposition Lonza, The Right Peptides Partner 14-Mar-16 slide 28 Choose Lonza for: R&D 14-Mar-16 Quality by Design Specific R&D know-how to improve your processes 30 years of experience and successful track record R&D peptide teams in Visp, Braine, Nansha slide 29 Your small-scale samples platform milligram-scale gram-scale Preferred Collaboration with California Peptide Lonza, China Early stage non-GMP services to serve every step of your product life cycle Specific knowhow, fast and low-cost efficient development Dedicated peptide staff IP protection From mg to grams, Lonza has your small-scale platform 14-Mar-16 slide 30 Case Study: Successful Route Selection O NH2 O NH2 O OH HO HO O H2 N O H N N H NH H2 N O N H O H N N H O O H N O N H HO O H N O HO O O O N H N O O HN OH O H N O O H N N H O N H H N O N H O HO NH OH O O NH Fuzeon® (T-20 Roche) O H2 N HN O O NHH2 N HO HO O O HN O N H H N O H2 N O NH2 O O N H H N O HO O N H O H N O N H OH O O H N O O N H NH H N N H O NH H N O O OH O O HN O NH2 HN O N H 14-Mar-16 Source: 2004 Trimeris - NP2D event Zermatt, Switzerland N H O NH2 slide 31 Case Study: Quality by Design (QbD) Bremelanotides ® (PT-141, Palatin Tech.) O N H O H N O O O N H H N N H O O H N H N N H O OH O NH N NH N H HN + NH3 O H3 C O 14-Mar-16 slide 32 Case Study: Quality by Design (QbD) Catalyst Pd(Ph3)4 Pd(OAc)2 / P(oTol)3 PdCl2(Ph3)4 Factor Screening DoE Design Space yield Contour 150.00 79 80 81 88.5 14-Mar-16 HCOOH/DIEA Dimedone Morpholine AcOH/NMM Phenylsilane Me2NH.BH3 (DMAB) 88 B: temperature Scavengers / proton donor 82 83 147.50 876 145.00 86 Optimization DoE 85 142.50 84 80 81 82 83 83 140.00 80.00 85.00 90.00 95.00 100.00 Solution to selective Allyl/Aloc cleavage A: rxn time slide 33 Case Study: Synergies lead to Innovation Semisynthesis of Bivalirudin® Inhibition of Thrombin Therapeutic value in angioplasty after acute myocardial infarction Recombinant E. coli (carboxy terminal fragment) H-Arg-Pro-Gly-Gly-Gly-Gly-Asn-Gly-Asp- + Chemical Synthesis (amino terminal fragment) BOC-D-Phe-Pro-OSu Phe-Glu-Glu-Ile-Pro-Glu-Glu-Tyr-Leu-OH fragment condensation deprotection final purification = 14-Mar-16 API (Bivalirudin®) slide 34 Successful Regulatory Inspections History: Lonza Braine, Belgium Who When What Remarks FDA 2001 Pre-approval inspection UCB Bioproducts Braine-l‘Alleud FDA 2003 Follow up Inspection UCB Bioproducts Braine-l‘Alleud FDA 2005 Pre-approval inspection Approval by 12 march 2006 FDA June 2009 Successful GMP systems and pre-approval inspection FDA February 2011 Pre-approval inspection BI, Nansha Korean FDA November 2007 Pre-approval inspection Approval, June 2008 EU Regulatories December 2008 GMP inspection Successful GMP inspection 14-Mar-16 slide 35 Lonza’s Visp & Nansha facilities have a long history of successful inspections 14-Mar-16 slide 36 Let’s Share Our Peptides Future Together! Experienced Teams Peptides Excellence Customer Service Road to Success 14-Mar-16 © Wolfgang Staudt slide 37 Thank You