Developing multi‐benefit DARPin® therapies to improve health and advance modern medicine Corporate Presentation April 2015 Disclaimer NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES. This presentation is not an offer to sell or a solicitation of offers to purchase or subscribe for shares of Molecular Partners AG, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. This presentation is not an offering circular within the meaning of Article 652a of the Swiss Code of Obligations, nor is it a listing prospectus as defined in the listing rules of the SIX Swiss Exchange AG or a prospectus under any other applicable laws. Copies of this presentation may not be sent to countries, or distributed in or sent from countries, in which this is barred or prohibited by law. This document is not a prospectus or a prospectus equivalent document and investors should not subscribe for or purchase any securities referred to in this document except on the basis of information in any prospectus (and any supplement(s) thereto) which has been published in Switzerland in due course in connection with the Offering (the “Offering Memorandum”). Copies of any Offering Memorandum are available from Molecular Partners AG’s registered office. This document does not constitute a recommendation regarding the shares. Recipients of this document who are considering acquiring shares in the offering are reminded that any such acquisition should be made solely on the basis of the information contained in the Offering Memorandum. No reliance may be placed by such recipients for any purposes whatsoever on the information given at this presentation or contained in this document and/or related materials or on the completeness of such information. No representation or warranty, express or implied, is given by or on behalf of Molecular Partners AG, any of its directors, J.P. Morgan Securities plc, UBS AG, Cowen and Company or Bank am Bellevue (together the “Managers”) or their respective subsidiary undertakings, affiliates, agents, counsel or advisers (together, the “Identified Persons”) or any other person as to the accuracy or completeness of the information or opinions given at the presentation or contained in this document and/or related materials and no liability is accepted for any such information or opinions. In particular, certain industry and market information in this document and/or related materials and/or given at the presentation has been obtained by Molecular Partners AG from third party sources. This document has been prepared by Molecular Partners AG. Neither Molecular Partners AG nor any other Identified Person has independently verified such information and none of the Identified Persons or any other person provides any assurance as to the accuracy, fairness or completeness of such information or opinions contained in this document and none of the Identified Persons or any other person takes any responsibility for such information. Without prejudice to the foregoing, neither Molecular Partners AG nor the Identified Persons accept any liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this document or its contents or otherwise arising in connection therewith. This presentation and its contents are solely for your information on a confidential basis and may not be reproduced, distributed, passed on or disclosed, in whole or in part, by any medium or in any form, to any other person. The distribution of this presentation and any offering or sale of securities in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, all such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction. The information set out herein and in any related materials and given at the presentation is subject to updating, completion, revision, verification and amendment, and such information may change materially. The Identified Persons are under no obligation to update or keep current the information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except to the extent they would be required to do so under applicable law or regulation, and any opinions expressed herein, in any related materials or given at the presentation are subject to change without notice. The information contained in this document does not constitute an offer of securities to the public in the United Kingdom or in any other jurisdiction. This presentation is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth individuals, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this document relates is only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Nothing in this presentation constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any person who is not a Relevant Person should not act or rely on this presentation or any of its contents and must return it immediately to Molecular Partners AG. This presentation is only directed at and being communicated to the limited number of invitees who, if in the European Economic Area, are persons who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC to the extent implemented in the relevant member state) (“Qualified Investors”). This presentation is not an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the laws of any state and may not be offered or sold within the United States of America absent registration or an exemption from registration under the Securities Act. There will be no public offering of the securities in the United States of America. This presentation contains specific forward‐looking statements, beliefs or opinions, including statements with respect to the product pipelines, potential benefits of product candidates and objectives, estimated market sizes and opportunities as well as the milestone potential under existing collaboration agreements, which are based on current beliefs, expectations and projections about future events, e.g. statements including terms like “potential”, “believe”, “assume”, “expect”, “forecast”, “project”, “may”, “could”, “might”, “will” or similar expressions. Such forward‐looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of Molecular Partners AG and investments and those explicitly or implicitly presumed in these statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts (including the risk factors to be described in the Offering Memorandum). Past performance of Molecular Partners AG cannot be relied on as a guide to future performance. Forward‐looking statements speak only as of the date of this presentation and each of the Identified Persons expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward looking statements in this presentation. No statement in this document or any related materials or given at this presentation is intended as a profit forecast or a profit estimate and no statement in this document or any related materials or given at this presentation should be interpreted to mean that earnings per share for the current or future financial periods would necessarily match or exceed historical published earnings per share. As a result, you are cautioned not to place any undue reliance on such forward‐looking statements. The Managers are acting for Molecular Partners AG in connection with the Offering and no one else and will not be responsible to anyone other than Molecular Partners AG for providing the protections afforded to their respective clients or for providing advice in relation to the Offering or any transaction or arrangement referred to in this presentation.By attending this presentation and/or by accepting this document and/or any related materials, you agree (i) to be bound by the restrictions set out herein and (ii) that you will not at any time have any discussion, correspondence or contact concerning the information given at the presentation and/or in this document and/or in respect of the offering with any of the directors or employees of Molecular Partners AG nor with any of its partners, or any governmental or regulatory body without the prior written consent of Molecular Partners AG. Confidential ‐ 2 Developing multi‐benefit DARPin® therapies to improve health and advance modern medicine Corporate overview • Assets in ophthalmology, oncology and immunology • Pipeline of 4 DARPin® product candidates and several research programs • Abicipar (partnered with Allergan) is expected to enter Phase III in wet AMD in Q2 2015 • Proprietary assets in oncology and ophthalmology • DARPin® technology platform • Multiple partnerships with blue chip pharma companies • c.CHF 164 million non‐equity funding collected1 • c.CHF 3.0 billion milestone potential2 • Up to double‐digit royalties in all partnerships • Financials • CHF 106.2 million raised in IPO on SIX Swiss Exchange (ticker: MOLN); 2nd largest Biotech IPO in Europe 2014; 1st Biotech IPO in Switzerland for 5 years • CHF 188.4 million in cash at hand as of Dec 31, 2014 with multiple years of runway • Debt free balance sheet 1 up until Dec 31, 2014; 2 Assumes exercise of all options for additional programs and attainment of all research option fees, preclinical milestones, development milestones and full commercial milestones for the maximum number of products; Confidential ‐ 4 Strong management team includes DARPin creators Dr. Christian Zahnd, CEO • Founder, board member • PhD in Molecular Biology from University of Zurich Dr. Patrick Amstutz, COO • Founder • PhD in Molecular Biology from University of Zurich Dr. Andreas Harstrick, CMO • MD, 28 years of experience in Oncology • Senior executive roles at Merck‐Serono, Imclone, Eli Lilly • Several approved biologicals (e.g. Erbitux, Cyramza) Dr. Michael Stumpp, CSO • Founder • PhD in Molecular Biology, Postdoc from University of Zurich Andreas Emmenegger, CFO • Previously with Roche and Glycart • Ex‐CFO of two listed companies, including IPO From left to right: Dr. Stumpp, Mr. Emmenegger, Dr. Amstutz, Dr. Zahnd Not on picture: Dr. Andreas Harstrick Confidential ‐ 5 Experienced and independent board of directors Jörn Aldag (Chairman) Steve Holtzman (Non‐executive director) • CEO uniQure, Ex CEO Evotec • EVP BD Biogen, Founder and Chairman of Infinity, Ex CBO of Millenium Christian Zahnd (CEO) Francesco de Rubertis (Investor) • CEO Molecular Partners, Founder • Index Ventures Göran Ando (Non‐executive director) Petri Vainio (Investor) • Chairman Novo Nordisk, Ex CEO Celltech, Ex CSO Pharmacia • Essex Woodlands Ventures Bill Lee (Non‐executive director) Andreas Plückthun (Founder) • SVP Research Gilead, part of the Gilead team from the start • Professor UZH, co‐founder of Morphosys Confidential ‐ 6 Broad pipeline addressing high value end markets Immu‐ nology Oncology Ophthalmology Description Area Target Abicipar wet AMD VEGF Abicipar DME VEGF multi‐DARPin® VEGF/PDGF wet AMD 3 programs n.d. n.d. 2 programs n.d. n.d. MP0250 solid tumors VEGF/HGF MP0274 solid tumors HER2 2 Programs immuno‐ oncology n.d. Multiple programs DARPin®‐Toxins n.d. Program Immunology n.d. Partner Preclinical development Clinical development Discovery Phase I Preclinics Phase II Phase III Phase III start expected in Q2 2015 Phase II study started in July 2014 VEGF/PDGF Phase I study started in July 2014 Lighter shading indicates research program Confidential ‐ 7 Unlocking value in partnerships • Validation of the DARPin® approach Comments • All partnerships expanded over time • Validation of the technological approach • Upfront: CHF 99.7 million¹ Ophthalmology • Milestones: c.CHF 1.8 billion2,3,4 • Attractive economical value • Royalties: up to double‐digit3 • Significant revenue potential • Upfront: up to CHF 55 million • Strong long‐term value retention • Milestones: c.CHF 1.0 billion4 • Development costs borne by partner Oncology • Significant upfront and milestones • Potential for further partnerships • Unlock the full potential of DARPins® • Royalties: up to low double‐digit Immunology • Royalties: up to low double‐digit • Option taken for program in Dec 14 • Use of DARPins® in novel fields • Increase speed to market c.CHF 3.0 billion4 in milestone potential c.CHF 164 million5 in non‐equity funding collected 1 as per audited accounts; USD 45 million (CHF 38.8 million) for Abicipar and USD 62.5 million (CHF 60.9 million) for multi‐DARPin® VEGF/PDGF and discovery alliance; 2 Exchange rate as of 31 Dec 2014: CHF/USD: 1.0064; USD 375 million (CHF 373 million) for Abicipar and USD 1.4 billion (CHF 1.4 billion) for multi‐DARPin® VEGF/PDGF and discovery alliance; 3 Co‐funding option for significant step‐up in royalties on multi‐DARPin® VEGF/PDGF; 4 Assumes exercise of all options for additional programs and attainment of all research option fees, preclinical milestones, development milestones and full commercial milestones for the maximum number of products; 5 up until Dec 31, 2014; Confidential ‐ 8 Key investment highlights • Most advanced product candidate Abicipar partnered with Allergan expected to enter Phase III development in Q2 2015 in wet AMD • Broad pipeline of 4 DARPin® product candidates and several research programs targeting high value indications • Proprietary portfolio of multi‐benefit product candidates in oncology with MP0250 in Phase I development for solid tumors • Partnerships with blue chip pharma companies: Roche (oncology), Allergan (ophthalmology) and Janssen (immunology) • Robust compound engine based on highly efficient DARPin® discovery and preclinical development • Entrepreneurial and collaborative management team who are pioneers in the DARPin® space Confidential ‐ 9 Abicipar Retinal diseases – Unmet medical need remains • Large and growing market opportunity in wet age‐ related macular degeneration (wet AMD) and diabetic macular edema (DME) • Annual sales in 2013: USD 6.0 billion1 • Expected sales in 2016: USD 8.4 billion (12% CAGR)2 wet AMD Normal vision • Standard of care drugs administered by frequent E injection into the eye • 4 wk dosing3 for Lucentis, Avastin4 • 8 wk dosing5 for Eylea • Unmet medical need for new wet AMD/DME F P therapeutics with: T O Z • Less frequent injections L P E D • Greater vision gains P E C F D E • Quality of life issues (travel, lost wages) D F C Z P F E L O P Z D Source: 1 Represents 2013A global sales of Eylea® (USD 2.0 billion) and Lucentis® (USD 3.8 billion) and other products (USD 0.3 billion) in wet AMD and DME as reported by EvaluatePharma® a service of Evaluate Ltd. (UK), www.evaluategroup.com, accessed [28 Aug.2014]; 2 EvaluatePharma® a service of Evaluate Ltd. (UK), www.evaluategroup.com, accessed [28 Aug.2014]; Estimated expected sales in 2016 do not include off‐label use of Avastin; 3 PRN dosing under some European labels; 4 off‐label use; 5 Dosing interval following 3 initial loading doses Confidential ‐ 11 Abicipar – VEGF blocker with potential for less frequent dosing and higher vision gain Abicipar Product • Mono‐DARPin® blocking VEGF • Collaboration with Allergan • Low double digit to mid‐teen royalties and up to USD 375 million in additional milestones • USD 225 million in development and regulatory milestones, USD 150 million in sales milestones • Tested in more than 240 patients to‐date Indications and markets • Wet AMD and DME Phase and timing • Wet AMD: Initiation of pivotal Phase III study expected in Q2 2015 • DME: Phase II study initiated in July 2014 Differentiation • Potential for less frequent injections than competitors (long intra‐vitreal half‐life) • Potential for higher efficacy and higher vision gain Confidential ‐ 12 Phase 2 Study: REACH, Stage 3 study design Assessing dose level, vision gain and dosing frequency Abicipar Week BL 4 8 12 16 Abicipar (2 mg) Abicipar (1 mg) Lucentis® (0.5 mg) n1=64 (3:3:2) No Abicipar administered BL Baseline and Randomization Sham Treatment No Treatment Treatment administered Source: Allergan 1 Study not powered to reach statistical significance Confidential ‐ 13 20 REACH, Stage 3 – Abicipar data presented at ASRS Abicipar Change of best‐corrected visual acuity (BCVA) 1,2 Summary of efficacy and safety data Vision gain Safety (letters) # AEs3 of ocular WK16 WK20 inflammation n = 23 n = 25 Abicipar 2.0mg 8.2 9.0 2 Abicipar 1.0mg 6.3 7.1 3 Lucentis 0.5mg 5.3 4.7 0 n = 16 Dosing: Source: Allergan, 12 August 2014 1 Study not powered to reach statistical significance; 2 Mean visual acuity improvement from baseline (letters); 3 AE: adverse event; 4 BCVA: best corrected visual acuity Confidential ‐ 14 Strong support by Allergan and Actavis “I think as you look at the Allergan products specifically, probably DARPin is the one that I don't think gets enough credit and perhaps that's because it comes in at the ending of the planning period and we're looking at” “When I was at Bausch & Lomb, we tried to buy DARPin as well and missed out on it to [Allergan and its CEO David Pyott]. But this is an area that is growing; [AMD is] a horrific disease and if we can reduce the injection burden for patients, then you really could have a potential blockbuster" Brent Saunders, CEO Actavis, 17 November 2014 “Mr. Saunders praised Allergan's R&D pipeline […]. He was particularly impressed with Allergan's ophthalmology portfolio, including the DARPin program for age‐related macular degeneration (AMD)“ Mandy Jackson, Scrip Intelligence, 18 November 2014 “DARPin® could provide the next leap in treatment duration & has c. $ 20 billion in potential cumulative 10 year sales (excl. dual‐DARPin®)” David Pyott, CEO Allergan, 30 June 2014 Confidential ‐ 15 DARPins: Multi‐benefit products Confidential ‐ 16 Mono‐DARPins®: Next generation biologics • Tailor‐made binding proteins derived from natural ankyrin repeat proteins • Fast and robust DARPin® generation process • Selection of mono‐DARPins® from large DARPin® libraries (display technologies) mono‐DARPin® • Versatile building blocks with pronounced class behavior • Small size (14‐18 kDa) good tissue penetration • High potency (<5‐100 pM) active at low concentration • High stability long shelf‐life • High solubility (> 100 mg/ml) ideal drug properties • Bacterial production (7‐15g/L) rapid and low‐cost production • PK properties (min – weeks) adjustable to patient need • Class behavior high developability DARPin inhibiting a target Confidential ‐ 17 From next generation therapeutics to multi‐ benefit therapies PEG Robust DARPin® toolbox Mono‐DARPins® Next‐generation conventional therapeutics Multi‐benefit DARPins® Unlocking the potential of multifunctional therapeutics Single pathway • Overcome limitations of current therapies • Low risk due to validated biology • Clear differentiation Single target • Target multiple binding‐sites on one target • Act through novel mechanism of action Example: • Abicipar Example: • MP0274 Confidential ‐ 18 Multiple pathways • Block multiple targets in parallel • Block evasion/resistance mechanisms Example: • MP0250 • multi‐DARPin® VEGF/PDGF Strong IP protection of DARPin® technology platform and product candidates • Novel substance class – no antibody‐related royalty burden • Exclusive license for DARPin® base technology from the University of Zürich • Standard DARPin® process development with public domain technologies • DARPin® know‐how kept as trade secret • IP protection for the DARPin® technology and key mono‐DARPins® • Patent applications claim composition of matter for key mono‐DARPins® and certain DARPin® product candidates • Multi‐layer patent protections allows late filing of composition of matter patent leading to long patent protection of DARPin products Confidential ‐ 19 Multi‐Benefit DARPins: Ophthalmology Multi‐benefit DARPin® targeting VEGF and PDGF multi‐DARPin® VEGF/PDGF Product • Multi‐DARPin®: blocking VEGF and PDGF • Collaboration with Allergan – tiered royalties into the low double‐digit range and c.USD 1.4 billion in potential additional milestones (including discovery alliance)1 • Co‐funding option for significant step‐up in royalties Indications and markets • Wet AMD Phase and timing • Preclinical development Differentiation • Potential for greater vision gain • Opportunity to take treatment holidays 1 Assumes exercise of all options for additional programs and attainment of all research option fees, preclinical milestones, development milestones and full commercial milestones for the maximum number of products Confidential ‐ 21 Multi‐DARPin VEGF/PDGF targets validated pathways and has the potential to be highly differentiated multi‐DARPin® VEGF/PDGF Mean change in VA (letters) – Baseline to Week 24 Validation of PDGF as target in wet AMD – Fovista Phase II results by Ophthotech2 Differentiation of multi‐DARPin® VEGF/PDGF • Large end market potential • Treatment for most severe cases of wet AMD 10.61 • Mechanism of action validated by Fovista 8.8 • Regression of new blood vessels through destabilization of pericytes 6.5 • Aptamer blocking PDGF validates approach but needs injection on top of anti‐VEGF therapy • Potential to become best in class • Fewer injections • No co‐formulation needed 1.5mg Fovista™ + Lucentis® 0.3mg Fovista™ + Lucentis® Lucentis® Source: Ophthotech (2012) 1 P=0.0190 compared to 6.5 letters for patients receiving Lucentis® (baseline line to week 24); 2 Ophthotech; 3 Based on Company data Confidential ‐ 22 Multi‐Benefit DARPins: Oncology Current limitations in cancer therapy • Significant burden on health system –> USD 100 billion in the US alone in 20101 Control Proliferation Metastasis Micro‐environment signaling Tumor cell invasion • Complex, multi‐factorial tumor biology limits treatment • Current “targeted” therapies alone work for some cancers – but are the exception What is needed? Apoptosis Tumor cell killing Immune system Regression Activation Synergistic targeting of multiple pathways Low toxicity and potential for combination therapy Novel approaches with high specificity Source: EvaluatePharma® a service of Evaluate Ltd. (UK), www.evaluategroup.com, accessed [28 Aug.2014]; Reichert, Nature Biotechnol. 23, 1073‐78 (2005), International agency for research on cancer, IMS; 1National Cancer Institute Confidential ‐ 24 MP0250 – Multi‐benefit DARPin® blocking VEGF and HGF (Phase I, proprietary) MP0250 Product • Multi‐DARPin®: blocking VEGF and HGF and binding to human serum albumin • Molecular Partners has full commercial rights Indications and markets • Solid tumors such as liver, renal and gastric cancers Phase and timing • Clinical development started in July 2014 in solid tumors (est. recruitment of 54 patients) • Initial top‐line safety and efficacy data expected in 2015 Differentiation • First biologic targeting both VEGF and HGF – blocking tumor growth and spreading • Low toxicity of MP0250 expected to allow for combination with chemotherapy or tyrosine kinase inhibitors (TKIs) • Potential PFS (progression free survival) benefit vs. anti‐VEGF mAbs Confidential ‐ 25 MP0250 data is equal or superior to clinical standard of care in all tested PDX models1,2 MP0250 Performance of MP0250 vs. Sorafenib as mono‐ therapy Performance of MP0250 in combination with Paclitaxel PDX: Renal cancer PDX: Gastric cancer RXF 2264 GXA 3027 Source: Presented by the company at ASCO, 2014 1 Company preclinical data. Antitumor activity of MP0250, a bispecific VEGF‐ and HGF‐targeting DARPin, in Patient‐Derived Xenograft models (Abstract), ASCO, 2014; 2 MP0250 also tested in preclinical models in liver cancer and lung cancer, which are not depicted above Confidential ‐ 26 Limitation of current therapies open commercial opportunity for MP0250 MP0250 Estimated WW Market size (USD)1 Marketed therapies VEGF / HGF rationale (+/+) Potential for combination therapy Avastin® failed3 Gastric 1.1 billion Herceptin® Cyramza® +/+ Liver 0.8 billion Nexavar® +/+ Renal cell carcinoma 3.7 billion Avastin® Sutent® +/+ - - Colorectal 7.7 billion Avastin® Erbitux® Others2 +/+ - Ovarian 0.2 billion Avastin® +/? - - Gliobastoma 0.8 billion Avastin® +/? ? - Cancer type Source: 1Market figures as per EvaluatePharma® a service of Evaluate Ltd. (UK), www.evaluategroup.com, accessed [28 Aug.2014]; 2 Includes Stivarga, Zaltrap and Vectibix; 3 refers to indication in which Avastin® trial results were inconclusive or otherwise did not meet primary outcome objective Confidential ‐ 27 MP0274 – Multi‐benefit DARPin® with broad anti‐ HER activity (proprietary) MP0274 Product • Multi‐DARPin® blocking HER2 and HER3 signaling • Molecular Partners has full commercial rights Indications and markets • In HER2+ patients including those with low levels of HER2 expression Phase and timing • In preclinical development • Expected to enter clinical development in 2016 Differentiation • Inhibits downstream‐signaling of HER2 and HER3 • Potentially induces tumor apoptosis and blocks proliferation • Potentially higher cancer killing of MP0274 than Herceptin® Confidential ‐ 28 MP0274 – Differentiation potential based on pre‐ clinical studies1 MP0274 Tumor cell apoptosis • Higher cell‐killing than Herceptin and Perjeta in preclinical models • Increased potency relative to current HER2‐targeted therapies • Potential to benefit a broader spectrum of cancer patients Tumor volume • Treatment for low HER2 expressers • Improved treatment for HER2 overexpressers Source: Company information 1 Company preclinical data. Antitumor activity of MP0274, anti‐HER2 VEGF‐ and HGF‐targeting DARPin Confidential ‐ 29 No marketed therapy for low HER2 is opportunity for MP0274 MP0274 HER2 Sub‐group Marketed therapies Est. percentage of patients HER 2+ Rationale Potential opportunity for MP0274 High HER2+ Herceptin® / Perjeta® Kadcyla® 20‐302,3,4 - Low HER2+ ‐ 40‐50%3 Negative Afinitor® 10‐20%4 - - Estimated WW market1 (USD) HER2 Sub‐group Marketed therapies Est. percentage of patients HER 2+ Rationale Potential opportunity for MP0274 Gastric 1.1 billion Positive Herceptin® 15‐20%5 Ovarian 0.2 billion Positive 20‐30%6 6‐20%7 <5%8 Cancer type Breast Other Cancer types Colorectal Estimated WW market1 (USD) 11.5 billion 7.7 billion Positive Avastin® (not HER2 specific) Avastin® Erbitux® (not HER2 specific) Pancreatic 0.6 billion Positive Abraxane® (not HER2 specific) Source: 1 EvaluatePharma® a service of Evaluate Ltd. (UK), www.evaluategroup.com, accessed [28 Aug.2014]; 2Metastatic Breast Cancer; 3”A bivalent HER2 targeting DARPin® with high efficacy against HER2‐low and HER2‐positive tumors”, Cancer Research (2013); 4Breastcancer.org; 5”HER2 Testing in Gastric Cancer”, Modern Pathology, 2012; 6 “HER2 in Ovarian Cancer”, Genentech 2014; 7 “HER2 Status in Colorectal Cancer: Its Clinical Signficance and the Relationship between HER2 Gene Amplication and Expression,” 2014; 8 “Potential treatment for a specific kind of pancreatic cancer”, Science Daily, 2013 Confidential ‐ 30 DARPins® with potential to go beyond – Expanding our reach into emerging areas • Molecular Partners explores approaches with Immune checkpoint modulators game‐changing potential with DARPins® in oncology • Potential to address fields alone or with partners • Immune‐oncology as key focus area • Immune checkpoint modulators (ICM) show potential to revolutionize oncology (e.g. mono‐ targeting PD‐1) • Multi‐benefit DARPin® approach could have the potential to unlock the complex ICM signaling network • DARPin®‐toxin fusions • DARPins® allow combination with different toxins DARPin®‐toxin conjugate Confidential ‐ 31 Financials Confidential ‐ 32 Financial Summary (CHF million; as per IFRS) FY 2011 FY 2012 FY 2013 FY 2014 18.1 35.6 32.4 26.6 Total expenses1 (20.8) (21.2) (25.3) (24.8) Operating Profit (Loss) (2.7) 14.4 7.1 1.8 2.0 (1.1) 0.0 (4.1)2 Net Profit (Loss) (0.7) 13.3 7.1 (2.3) Net cash from (used in) operations 28.5 54.0 (13.6) (11.3) Cash & cash equivalents 64.2 113.2 96.1 188.4 Revenues Net finance income (expenses) 1 Thereof non‐cash costs of CHF 1.7m in FY2011, CHF 1.1m in FY2012, CHF 0.9m in FY2013 and CHF 2.6m in FY2014 2 Including CHF 7.1m IPO costs and CHF 2.6m currency gains Confidential ‐ 33 Balance sheet Balance sheet as of Dec 31, 2014 (CHF million) Comments • Strong balance sheet 194.0 Other assets 5.6 194.0 • CHF 188.4 million cash & cash equivalents Other liabilities 6.6 (97% of total assets) Deferred revenues 38.9 • Solid equity base • Debt free • CHF 38.9m deferred revenues to be recognized as revenue in coming years Cash & cash equivalents 188.4 Assets Shareholders' equity 148.5 Shareholders' equity & liabiliites Confidential ‐ 34 Funding overview Funding since inception (CHF million) 0.7 Highlights • CHF 324.3 million funding since inception from both capital market and business partners2 55.8 • Multiple years of cash runway with 163.7 104.1 CHF 188.4 million cash at hand per Dec 31, 2014 • Debt free balance sheet • Operating Cash Flow positive since inception on accumulated basis Cash income from partnerships11 Initial public offering (IPO)11 VC funding Founder capital • c.CHF 3.0 billion3 combined milestone potential and up to double‐digit royalties in all partnerships 1 VC funding as net proceeds; IPO as gross primary proceeds 2 3 Up until Dec 31, 2014 Exchange rate as of 31 Dec 2014: CHF/USD: 1.0064; Assumes exercise of all options for additional programs and attainment of all research option fees, preclinical milestones, development milestones and full commercial milestones for the maximum number of products Confidential ‐ 35 Shareholder structure Shareholder structure as of Dec 31, 2014 (in %) Highlights • Listed on SIX Swiss Exchange (Ticker: MOLN) • Included in SPI, SPI Extra, SXI Life Sciences 24% and SXI Bio+Medtech indices 51% 25% • 19.6 million shares outstanding • CHF 494 million market capitalization as of Dec 31, 2014 • Free Float of 24% pre-IPO investors Management, Board, Founders Free float (IPO + non-lockup) • Customary lock‐up for Management, Board of Directors (12m) and VCs (6m) Confidential ‐ 36 Financial Guidance for 2015 at constant exchange rates vs. Dec 31, 2014 • Gross cash burn of between CHF 35‐40 million • Additional capital expenditures of c. CHF 3 million • Net cash burn depends on cash collections from strategic partners • Non‐cash effective costs for share based payments and pension accounting as per IFRS come on top • Guidance subject to progress and changes of pipeline Confidential ‐ 37 Summary A strong track record of financial and clinical success 2015 IPO on SIX Swiss Exchange 2014 Start Phase I for MP0250 Phase IIb data for Abicipar Extension of Roche alliance 2013 Phase I/II data of Abicipar in DME Extension of Allergan and JNJ alliance 2012 Alliance with Allergan 2011 2010 Series B financing Start Phase I for Abicipar 2009 Alliance with Janssen Roche partnership and Series A Financing First clinical data for Abicipar 2008 Other milestones 2007 Clinical milestones Source: Company information Confidential ‐ 39 Key near term value catalysts • Start of Abicipar Phase III in wet AMD expected in Q2 2015 • Abicipar Phase II data from BAMBOO/CYPRESS study (establish comparability between Japanese and non‐Japanese patients) in wet AMD • Abicipar Phase II data from PALM study in DME • Topline safety and initial efficacy data for MP0250 in solid tumors expected in 2015 • Expect to start clinical development for MP0274 in 2016 • Several upcoming milestone events from partnerships Confidential ‐ 40 Summary • Most advanced product candidate Abicipar partnered with Allergan expected to enter Phase III development in Q2 2015 in wet AMD • Broad pipeline of 4 DARPin® product candidates and several research programs targeting high value indications • Proprietary portfolio of multi‐benefit product candidates in oncology with MP0250 in Phase I development for solid tumors • Partnerships with blue chip pharma companies: Roche (oncology), Allergan (ophthalmology) and Janssen (immunology) • Robust compound engine based on highly efficient DARPin® discovery and preclinical development • Entrepreneurial and collaborative management team who are pioneers in the DARPin® space Confidential ‐ 41 Molecular Partners AG Wagistrasse 14 8952 Zürich‐Schlieren Switzerland www.molecularpartners.com
© Copyright 2024