corporate presentation, june 2012
TRANSCRIPT
Corporate Presentation
Roberto BelliniPresident and Chief Executive Officer
June 2012
Forward Looking Statement
Certain statements contained in this presentation, other than statements of fact that areindependently verifiable at the date hereof, may constitute forward-looking statements. Suchstatements, based as they are on the current expectations of management, inherently involvenumerous risks and uncertainties, known and unknown, many of which are beyond BELLUSHealth Inc.'s control. Such risks include but are not limited to: the ability to obtain financingimmediately in current markets, the impact of general economic conditions, general conditionsin the pharmaceutical and/or nutraceuticals industry, changes in the regulatory environment inthe jurisdictions in which the BELLUS Health Group does business, stock market volatility,fluctuations in costs, and changes to the competitive environment due to consolidation,achievement of forecasted burn rate, and that actual results may vary once the final andachievement of forecasted burn rate, and that actual results may vary once the final andquality-controlled verification of data and analyses has been completed.
Consequently, actual future results may differ materially from the anticipated results expressedin the forward-looking statements. The reader should not place undue reliance, if any, on anyforward-looking statements included in this news release. These statements speak only as ofthe date made and BELLUS Health Inc. is under no obligation and disavows any intention toupdate or revise such statements as a result of any event, circumstances or otherwise, unlessrequired by applicable legislation or regulation. Please see the Company’s public fillingsincluding the Annual Information Form of BELLUS Health Inc. for further risk factors that mightaffect the BELLUS Health Group and its business
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Background and Business Model
Public company (TSX: BLU) based in Montreal, QC
Focused namely on the development of products in amyloid-related fields, principally AA Amyloidosis, an orphan indication affecting the kidneys
Late-stage product pipeline
Focused on building value for clinical stage health products in critical unmet
medical needs
BUSINESS MODEL
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Pipeline of Products
PHARMACEUTICALS
NRM8499
Alzheimer’s
DISCOVERY PRECLINICAL PHASE I PHASE II PHASE III NDA/MAA
Eprodisate
(KIACTA™)
AA amyloidosis
NUTRACEUTICAL
Alzheimer’s
disease
Homotaurine VIVIMIND™
Memory protection
COMMERCIA
-LIZATIONDISCOVERY PRECLINICAL PHASE I PHASE II PHASE III
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KIACTA™
Phase II/III clinical trial showing statistically
Orphan population of ≈50,000 in the USA, Europe and Japan with peak annual revenues projected at $400-600M1
1 Independent market assessment by Frankel Group in April 2009.
For AA Amyloidosis, an orphan indication and a deadly disease with no treatment
Market opportunity
Clinical
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Phase II/III clinical trial showing statistically significant primary efficacy endpoints(p value = 0.025) and clean safety profile
Clinical evidence
Partnership with Celtic Therapeutics to conduct and finance confirmatory phase III clinical trialPartnership
Confirmatory phase III
clinical trial
Marketing approval based on confirming safety and efficacy of phase II/III study
Actively recruiting patients
AA Amyloidosis
Rare and life-threatening disease
Associated with chronic inflammatory diseases
� 65% of patients are rheumatoid arthritis patients
AA protein accumulates in major organs, mainly kidneys, leading to:
� Rapid and significant deterioration of kidney function, and
� Eventual progress to dialysis
Kiacta slows the deterioration of kidney function by preventing amyloid A protein fibril formation, accumulation and deposition
� Orally bioavailable small molecule
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Na+-03S S03-Na+
KIACTA™ - Targeted OpportunityD
iagn
osed
AA
Pat
ient
s (0
00s)
Patient population estimated at 34-50,000 in the U.S., EU5 and Japan1
Clear pharmacoeconomic rationale for premium pricing
™
7
Dia
gnos
ed A
A P
atie
nts
(000
s)
KIACTA™ peak annual revenues projected at $400-600M1
(U.S., EU5, Japan)
Orphan Drug Status in the U.S. and EU provides 7 and 10 years market exclusivity upon commercialization, respectively
1Independent market assessment by Frankel Group in April 2009
FINANCIAL IMPLICATION
With global fund Celtic Therapeutics
Celtic Therapeutics funding 100% of KIACTA™’s
PARTNERSHIP
US$10M in upfront payments
≥ US$35M in investments by Celtic Therapeutics
KIACTA™ - Strategic Partnership
100% of KIACTA™’s confirmatory phase III clinical trial
Auction process for the commercialization rights of KIACTA™ on completion of Phase III clinical trial
Proceeds of any eventual transaction expected to be shared 50%-50% between BELLUS Health and Celtic Therapeutics
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KIACTA™ - Robust Clinical Results in Phase II/III
Statistical significant on primary endpoint (p value <0.05) and clinically meaningful treatment effect (42% reduction in risk)
� Calculated 2-year delay to dialysis for patients on KIACTATM
Number of
Clean safety profile
Agreement with FDA/EMEA for confirmatory phase III clinical trial
� Marketing approval based on positive result (p value <0.05) from confirmatory study with same scope of first phase III clinical trial
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Number of
EventsRelative Risk
NC-503 Placebo HR 95% C.I. P value
Primary composite endpoint(First “worse” event)
29 45 0.58 0.37, 0.93 0.025
Doubling SCr 9 17 0.41 0.19, 0.86 0.019
50% decrease CrCl 19 31 0.48 0.28, 0.82 0.008
Dialysis/ESRD 7 13 0.54 0.22, 1.37 0.20
Death 5 5 0.95 0.27, 3.29 0.94
CONFIRMATORY PHASE III STUDY
183 patients in 13 countries
Statistically significant composite primary endpoint (p=0.025) principally based on patients reaching kidney function events:
� Doubling serum creatinine
COMPLETED PHASE II/III STUDY
230 patients in 28 countries
Composite primary endpoint (target p<0.05) based on patients reaching kidney function events:
� 80% increase serum creatinine
KIACTA™ - Confirmatory Phase III Study
� Doubling serum creatinine
� 50% decrease in creatinine clearance
� Reaching ESRD/dialysis
� Death
Fixed treatment duration of 2 years
� 40% decrease in creatinine clearance
� Reaching ESRD/dialysis
Event driven trial to conclude on attainment of 120 events (~90% power)
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Key improvements made to increase robustness of
confirmatory study
Key improvements made to increase robustness of
confirmatory study
KIACTA™ - Study Progress
Recruitment 1
>70 sites in 26 countries actively recruiting
Completion
Event driven trial to complete on reaching 120 eventsrecruiting
90 patients enrolled
Recruitment expected to be completed in 2H 2013
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120 events
Study expected to be completed in 2H 2015
Patient baseline characteristics and demographics t o date are similar to those in the first Phase III study
1 Data as of May 10, 2012
KIACTA™ - Providing Base Value
+
DEVELOPMENT COST FULLY FUNDED BY
CELTIC
AUCTION PROCESS WITH
EQUALLY SHARED
PROCEEDS
LOW RISKCONFIRMATORYPHASE III STUDY
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SIGNIFICANT SHAREHOLDER VALUE BASE
+
VIVIMIND™
Nutraceutical for memory protection
Canada: Protects the hippocampus
Italy: Enhances cognitive function and memoryHealth Claims
Growing cash flow positive business
Partnerships for Italy, Canada, Greece, Middle East and IsraelPursuing efforts to conclude additional partnerships in other territories: creating a distributor network worldwide
Regulatory approvals in Italy and Spain obtained in 2009
NPN number issued by Health Canada in 2010
Regulatory Approval
Partnerships
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NRM8499
Next generation of tramiprosate intended for the treatment of Alzheimer's disease
Large and growing epidemic currently affecting over 30M patients worldwide
Represents > $180B in annual costs in the USA alone
Market opportunity
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alone
Completed in 67 young and elderly healthy subjects
Safe and well tolerated at the intended therapeutic dose
Better gastrointestinal tolerability and pharmacokinetic profile than tramiprosate
Company seeking a potential partnership to pursue development process
Phase I clinical trial
Pharmascience
Leading Canadian manufacturer of generic drugs
Private company
Strategic Investment
$17.25M total investment:
� $8.15M in non-dilutive capital
� $9.1M for 10.4% stake
Strategic Partnership and Financing
Annual sales >$700M
R&D budget >$30M
More than 1,300 employees
� $9.1M for 10.4% stake
1 board member
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Pharmascience transaction closed on May 25 th
Capital Structure
Financial Position and Capital Structure
Basic Shares Outstanding 47M
Fully Diluted Shares Outstanding 61M
Cash (as of May 31 st, 2012) >$20M
Financial Position
1616
Cash (as of May 31 st, 2012) >$20M
Burn Rate (monthly) <$300K
Operations funded beyond 2016
� Kiacta Phase 3 data expected in 2015
� Additional funds can be used for new potential projects
Governance and Shareholders
Board of Directors Company / Experience
Dr. Francesco Bellini (Chair)
Franklin Berger
Charles Cavell
Hélène Fortin
Management Title
Roberto BelliniPresident and Chief Executive Officer
Dr. Denis GarceauSenior Vice President, Drug Development
François Desjardins Vice President, Finance
Tony MatzouranisVice President, Business Development
LAROSE FORTIN CA Inc.
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Hélène Fortin
Pierre Larochelle
Donald Olds
Joseph Rus
Dr. Martin Tolar
Roberto Bellini
Development
Shareholder Ownership
Bellini Family ≈ 30%
Power Corporation ≈ 30%
Pharmascience ≈ 10%
LAROSE FORTIN CA Inc.
Milestones
Past Execution
Attractive partnership with Celtic for Kiacta
Execution of global Kiacta Phase III
2012 Milestones
Continued execution of KIACTA Confirmatory phase III clinical trial:
Launch of Japan sites and receipt of Japanese orphan drug designation
Long Term Value
Results of confirmatory phase III clinical trial and auction of KIACTA™
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Short-term milestones driving long-term value
Kiacta Phase III confirmatory study
Building cashflow positive VIVIMIND business
Fully financed business plan
orphan drug designation
Partnership for NRM8499 for Phase 2 study
Financial partner with no shareholder dilution
Large regional partnership for VIVIMIND™
Sale or spin-out of nutraceutical business
NRM8499 Phase 2 study results