annual general meeting 27 th october 2004. highlights 2003-04 services –labhotel development in...
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Annual General Meeting27th October 2004
Highlights 2003-04
• Services– LabHotel development in Bioscience Innovation Centre– Bioscience VCT fees increase as investments made– Tek-Check due diligence product sales debut at £37,453– NBS account broadened to include 15 centres
• Fundraising– Significant new institutional shareholders– £1.8 million raised in institutional placing– Post year end: £2.3m placing - announced 24 September 2004
• Financial– Pre-exceptional loss in line with expectations– Reduction in staff and directors’ costs– Year-end cash increased by 24%– Market capitalisation increased from £2m to £29m
• ONCO 4400 series (ruthenium anti-cancers)– Ruthenium compounds show exceptional activity in difficult cancers– Notification of grant of EU and USA patents and new patents filed
• ONCO 0247 (pineapple protease anti-cancers)– Preclinical dosing studies and xenograft studies ongoing
• VIR 5103 (anti-HIV/AIDS ribozymes)– 75% reduction in HIV penetration in human blood cells demonstrated– High levels of penetration of therapy into human cells shown– Notification of EU patent grant– Further anti-viral ribozymes identified
• Genvax (vaccines for cancer, viral and bacterial diseases)– DNA vaccine joint venture company added to portfolio
MMI: What do we do?
• We develop drugs for major markets with unmet need – eg cancer, infection
• We source potential drugs through partnerships with universities, NHS, NBS, and other research institutions
• We aim to commercialise through partnerships with big pharma
• We focus on commercial milestones to accelerate return on investment
• We have a significant and growing portfolio of potential blockbusters
• We have an integrated and cost-effective business model
Accelerating Return On Investment
Value£ Million
Research Preclinical Phase I Phase II Phase III Marketing
MMI1,000’s
100’s
10’s
0
Client Case History:National Blood Service
15 Laboratories: London, Oxford, Cambridge, Bristol, Manchester etc
Technology audit Fee income, technology access
Commercialisation strategy fee income, technology access
Licensing projects fee income, contingency income
Potential spin-outs:• Viral therapies/diagnostics• Mab therapies/diagnostics• BSE/nvCJD diagnostic/therapy
fee income, equity
Actual spin-outs:• Cancer vaccines, Leukaemia therapies
Genvax
How Do We Develop Potential Blockbusters?
• Industry-experienced team targets acquires and develops products to address unmet need in major markets
• Internal development resources –BIC, LabHotel, patent strategy
• Industry-standard partners – Covance, Mewburn Ellis, Eversheds
• World-leading partners – Prof Sadler, Prof Stevenson, CXR
• Target multinational marketing partners – Internal Licensing skills
Market-Driven Pipeline
• Cancer therapy market $20bn, 16% growth
• Cancer product deals $100m - $2bn
• AIDS therapy market $6.3bn, 14% growth
• Viracept / Aguron – acquired by Pfizer
Company Name Focus Technology“Partners”
MMI % Share
Ownership
MMI Book Value
ONCOSENSE Cancer • Edinburgh University• Cancer Research UK• Cambridge University• Provalis / MMI
100% £2
VIRATIS Viruses • King’s College London• Queen Mary College London
50% £2
ENDOZYME Drug-resistantInfections
• Cambridge University• Novartis
100% £2
GENVAX DNA Vaccines
• Southampton University• CRUK/LRF
50% £2
The Portfolio
The Ideal Anti-cancer Drug ProfileFactor
Coverage
Compounds
Resistance
Toxicity
Patents
Efficacy
Mode of Action
Development Needs
Market potential
Ideal
Broad (platform)
Many
None
Low
Major territories
Long life
Good
Known
Established
> $2 billion
Platinum
Broad
3
Some
Significant
Expired
Good
Unknown
Established
$5 billion
Ruthenium
Broader (platform)
1000’s/100’s/15
Selected compounds overcome resistance
Designed out
EU/USA granted
Good/Better
Known
Established
$10bn?
Factor
Coverage
Compounds
Resistance
Toxicity
Patents
Efficacy
Mode of Action
Development Needs
Market potential
The Ideal Anti-viral Drug ProfileIdeal
Broad (platform)
Many
None
Low
Major territories
Long life
Good
Known
Established
> $2 billion
HAART
Specific
3 +
10% +
Significant
Short life
Medium
Known
Established
$7 billion
Viratis ribozymes
Specific (platform)
Several
Unlikely
Unlikely
EU/USA granted
Good
Known
Evolving
$10bn?
Expected Clinical ProgrammeCompany Product 2004/05 2005/06 2006/07
ONCOSENSE MMI/ONCO 4404 (Ruthenium) Phase I/II Phase II Phase III
MMI/ONCO 4412 (Ruthenium) Phase I/II Phase II Phase II/III
MMI/ONCO 4424 (Ruthenium) Phase I Phase II
MMI/ONCO 0247 (Protease) Phase I/II Phase II Phase III
MMI/ONCO 1600 (Endosialidase) Phase I
VIRATIS HIV / Ribozyme Phase I
ENDOZYME Endosialidase Phase I
GENVAX Leukaemia Vaccine Phase I/II
Prostate Cancer Vaccine Phase I/II
Colon Cancer Vaccine Phase I/II
DNA Vaccine Cassette Against Cancer Antigen
B-cell LymphomaMultiple MyelomaEpithelial Cancers
Cancer AntigenAlert signal from
Tetanus Toxin
DNA Vaccine Against An Infective Organism
Genvax Technology: DNA Vaccinelinks DNA for antigen (cancer or pathogen) to fragment of tetanus toxin
MuscleCell
Antibody response Cellular Response
PROTECTION AGAINST INFECTION
Genvax – Potential Markets
• Platform technology having broad application in multiple
indications e.g. many forms of cancer, anti-virals and anti-
bacterials
• Substantial markets– Vaccine market value: anti-infectives $5.9bn (2000) growing to $17bn (2010)1
– Cancer Vaccine Market value: currently $10bn
– DNA Vaccine market value: ‘$-multi-billon potential’2
1 Source: Datamonitor - Commercial Perspectives: Vaccines2 Source: Donner Corp Intl
Ruthenium Organometallic complexes
Pineapple proteases Endosialidase
(Edinburgh University)(Provalis plc /
Oncosense Ltd)(Novartis AG,
Cambridge University)
• Oncosense is a market driven company established by MMI as a vehicle to commercialise innovative cancer therapies
• Three unique technologies developed in own laboratory in Bioscience Innovation Centre (Cambridge) and through external contract research:
Oncosense
NH2 NH2
NH2
NH2
NH2 NH2
Compound Arene Ligand
RM175
HC11
AH078
Ruthenium
Ruthenium
• Novel class of patented anti-cancer agents discovered by Edinburgh University and Cancer Research UK
• Exclusively licensed worldwide to Oncosense Ltd
• To date 100 compounds synthesised and tested in vitro, 15 compounds have been identified to be more potent than carboplatin
• Activity demonstrated in a number of human cell lines; including lung, colorectal and ovarian carcinoma cells
• Activity demonstrated in xenograft models; human lung and ovarian carcinoma
• Active against platinum-resistant tumours and multi-drug resistant tumours
Ruthenium: Lung Cancer (A549) Xenograft model
0
1
2
3
4
5
6
7
8
9
10
0 10 20 30 40 50
Time from start of treatment (days)
Rel
ativ
e T
umou
r vo
lum
eControls
HC11 25 mg/kg ip d1;8;15
RM175 25 mg/kg ip d1;5
IC50 in vitro RM175 = 2 M, HC11 = 0.5 M
Ruthenium: Ovarian Cancer (A2780cis) Xenograft model
0
2
4
6
8
10
12
14
16
18
20
0 5 10 15
Day
Re
lativ
e T
um
ou
r V
olu
me
Control
Cisplatin
RM175
**
**
Ruthenium:Spectrum of activity for RM175 and AH078 is different!
Large cell lung
Breast
Lung
Melanoma
Breast
RM175 AH078
Potential News Flow• Oncosense
– Ruthenium clinical trials begin
• Genvax– Clinical trials results– Further clinical trials begin
• Viratis– New ribozymes for other viruses
• Service products– LabHotel®
– More fee income– More biobabies
Key Messages• Proven business model
– ‘Virtual’ outsourcing dynamics– Prudent approach to expenditure– Strong scientific relationships
• Potential blockbuster products in the global pharmaceutical arena– Oncosense (Cancer); Genvax (DNA/Cancer Vaccines); Viratis (HIV/AIDS)– Competitive product profiles
• Strong cash position– Recent successful fundraisings & shareholder support– Revenue ‘arm’
• Value enhancing ‘events’ over next 12 months– Substantive clinical data available– New clinical trials– Portfolio expansion
Annual General Meeting27th October 2004