We are a Leader in Pet Therapeutics - KindredBio
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We are a Leader in Pet Therapeutics
Forward Looking Statements 2 This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, statements regarding our expectations about the trials, regulatory approval, manufacturing, distribution and commercialization of our current and future product candidates, and statements regarding our anticipated revenues, expenses, margins, profits and use of cash. These forward-looking statements are based on our current expectations. These statements are not promises or guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results to be materially different from any future results expressed or implied by the forward-looking statements. These risks include, but are not limited to, the following: our limited operating history and expectations of losses for the foreseeable future; the absence of significant revenue from our products and our product candidates for the foreseeable future; the likelihood that our revenue will vary from quarter to quarter; our potential inability to obtain any necessary additional financing; our substantial dependence on the success of our products and our lead product candidates which may not be successfully commercialized even if they are approved for marketing; the effect of competition; our potential inability to obtain regulatory approval for our existing or future product candidates; our dependence on third parties to conduct some of our development activities; our dependence upon third-party manufacturers for supplies related to our products and our product candidates and the potential inability of these manufacturers to deliver a sufficient amount of supplies on a timely basis; the uncertain effect of the COVID-19 pandemic on our business, results of operations and financial condition; uncertainties regarding the outcomes of trials regarding our product candidates; our potential failure to attract and retain senior management and key scientific personnel; uncertainty about our ability to enter into satisfactory agreements with third-party licensees of our biologic products and uncertainty about the amount of revenue that we will receive from such agreements; our significant costs of operating as a public company; potential cyber-attacks on our information technology systems or on our third-party providers’ information technology systems, which could disrupt our operations; our potential inability to repay the secured indebtedness that we have incurred from third-party lenders, and the restrictions on our business activities that are contained in our loan agreement with these lenders; the risk that our 2020 strategic realignment and restructuring plans will result in unanticipated costs or revenue shortfalls; uncertainty about the amount of royalties that we will receive from the sale of Mirataz® to Dechra Pharmaceuticals PLC; the risk that the revenue from our delivery of services or products under any contract may be less than we anticipate if the other party to the contract exercises its right to terminate the contract prior to the completion of the contract; our potential inability to obtain and maintain patent protection and other intellectual property protection for our products and our product candidates; potential claims by third parties alleging our infringement of their patents and other intellectual property rights; our potential failure to comply with regulatory requirements, which are subject to change on an ongoing basis; the potential volatility of our stock price; and the significant control over our business by our principal stockholders and management. For a further description of these risks and other risks that we face, please see the risk factors described in our filings with the U.S. Securities and Exchange Commission (the SEC), including the risk factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K and any subsequent updates that may be contained in our Quarterly Reports on Form 10-Q filed with the SEC. As a result of the risks described above and in our filings with the SEC, actual results may differ materially from those indicated by the forward- looking statements made in this presentation. Forward-looking statements contained in this press release speak only as of the date of this presentation and we undertake no obligation to update or revise these statements, except as may be required by law. The results stated in this presentation have not been reviewed by the Food and Drug Administration or the United States Department of Agriculture Center for Veterinary Biologics, as applicable. March 15, 2021
Growing Spend on Pet Family Members 3
We spend We spend 35% 71%
We spend
We spend
...Because 95%
$1.7 billion $490 million of pet parents
of pets sleep
generously $99.0 billion on Valentine’s on Halloween pets are of owners would give up
in bed with
consider pets their cell phone
on pets... a year on pets Day presents costumes for family part of the family to pay for pet
their pet
parents
for pets pets emergency
85 MILLION
HOUSEHOLDS
HAVE PETS
34 MILLION 80% 52% 43% 46%
HOUSEHOLDS care for their believe the buy non- have
HAVE CHILDREN pets like quality of essentials purchased
children their pets’ like toys on clothing or
food should impulse fashion
exceed their accessories
own
Sources: APPA National Pet Owners Survey - https://www.americanpetproducts.org/press_industrytrends.asp; Valentine’s Day Gift Spend: https://nrf.com/media-center/press-releases/confident-consumers-and-broad-
er-buying-lead-record-valentines-day; Halloween costumes: https://nrf.com/blog/halloween-shopping-trends-then-and-now; American Institute of Certified Public Accountants-https://www.aicpa.org/content/aicpa/
press/pressreleases/2017/survey-explores-financial-sacrifices-americansmake-for-pets.html; Pet food: https://www.prnewswire.com/news-releases/furred-lines-pet-trends-2019-300741947.html; https://www.snipp.
com/wp-content/uploads/2017/07/Snipp-Resources-Guide-06-2017-CPG-Pet-Care-Trends.pdf; Pets part of family: https://theharrispoll.com/whether-furry-feathered-or-flippers-a-flapping-americans-continue-to-dis-
play-close-relationships-with-their-pets-2015-is-expected-to-continue-the-pet-industrys-more-than-two-decades-strong/
* Figures are with respect to the United States Market
Unique Development Strategy 4
Reduce
technical risk
Pursue Shorten
targets timelines
known to work
in humans
KindredBio
Develops
Innovative Biologics
Average of for Pets Reduce
$8M to financing risk
develop a
biologic in
6 years Portfolio
approach
Market sizes are 2 to 10-fold smaller than human markets,
but the cost of development is 100-fold less
Recession-Resistant Spend 5
Recession-Resistant Spend (1)
Pet Industry Sales: Government Personal Consumption Expenditures (“PCE”) and Industry Estimates
$120 ($ in Billions)
$100 Pet industry
Estimates CONTINUED GROWTH
$80 DURING RECESSION
PCE, Pets,
Pet Relatied
$60 Services
$40
$20
$0
1994 1996 1998 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Average Spend to Save Life of Pet (2) Low Generic Competition (3)
Few Generic
$12,000 Generic Dispensing Rates
Competitors
100%
$10,000
$10,200 $10,330 81% No Automatic
80%
$8,000 Substitution
$6,000 60%
Peak Sales Often
40%
Reached Post Patent
$4,000
Expiration
$2,000 20%
7%
No Biosimilar
$0
Cat Owners Dog Owners
0%
Companion animal Human
Pathway
(1) U.S Bureau of Economic Analysis (2018); American Pet Products Association (2018) (2) www.lendedu.com/blog/how-much-are-dog-and-cat-owners-willing-to-spend (3) Healty, Putney BofA Merill Lynch Global Research: Note: Companion Animal dispensing rate within the veterinary clinic
Canine Dermatitis - Large and Growing Market 6
Prevalence Diagnosis
Itch is #1
#1 10-15%
have atopic
reason for canine dermatitis,
veterinarian an allergic
visits skin disease
Two recent drugs Growing Market Key Profit Center
are selling
47% 83%
>$900M a year (combined)
increase in
itchy dog
veterinarian
of dogs seen by
dermatologists
suffer from
visits since pruritis (itch)
and are growing 2014
Sources: Hillier, A. and C.E. Griffin, The ACVD task force on canine atopic dermatitis (I): incidence and prevalence. Vet Immunol Immunopathol, 2001. 81(3-4): p. 147-51.
Website, N.P.I. Top 10 Medical Conditions of 2016. Available from: https://press8.petinsurance.com/articles/2017/march/nationwide%C2%AE-data-reveals-mostcommon-medical-conditions-for-dogs-and-cats
March 2018 Vetstreet Pruritus Projection Trend Report
2019 Canine Atopic Dermatitis Veterinarian Research, February, 2019 (n=173 U.S. small animal veterinarians and dermatology specialists). Data on file at Kindred Biosciences
Need for New Biologicals 7
Not all products work for
every patient
Treatment non-response rates
70% 80% as high as one in four patients,
depending on allergy
GP veterinarians Dermatologists
desire a new biological desire a new
treatment option for biological treatment Treating pruritis is multimodal and
veterinarians desire more tools
pruritic dogs option for
pruritic dogs
Source: 2019 Canine Atopic Dermatitis Veterinarian Research, February, 2019 (n=173 U.S. small animal veterinarians and dermatology specialists). Data on file at Kindred Biosciences
Lead Canine Dermatitis Candidate 8
TIRNOVETMAB: FULLY CANINIZED, HIGH-AFFINITY
MONOCLONAL ANTIBODY TARGETING INTERLEUKIN-31
Blocks IL-31, a key mediator of itching
Positive results in pilot effectiveness study
Achieved rapid and dramatic reduction in pruritus (itch)
and CADESI-4 score versus placebo
Pivotal study commenced in December 2020
Note: CADESI-4 = Canine Atopic Dermatitis Extent and Severity Index-4
The results stated in this slide have not been reviewed by the United States Department of Agriculture Center for Veterinary Biologics.
Canine Dermatitis Pipeline 9
IL-4R
KIND-032 binds to the IL-4 receptor on the surface of immune cells
As a result of blockade of IL-4R, it prevents both IL-4 and IL-13 signaling pathways
Positive results from pilot laboratory study of IL-4R. Evidence of positive
efficacy and dose response
Pilot study to further assess dosing commenced in 3Q 2020
Sources: Hillier, A. and C.E. Griffin, The ACVD task force on canine atopic dermatitis (I): incidence and prevalence. Vet Immunol Immunopathol, 2001. 81(3-4): p. 147-51. Website, N.P.I. Top 10 Medical Conditions of 2016.
https://press8.petinsurance.com/articles/2017/march/nationwide%C2%AE-data-reveals-most-common-medical-conditions-for-dogs-and-cats.
Note: The results stated in this slide have not been reviewed by the United States Department of Agriculture Center for Veterinary Biologics.
PVAS score: Pruritic Visual Analog Scale
Deep Product Pipeline 10
PIPELINE COMPRISES FOCUS ON MIX OF
INNOVATIVE LATE STAGE NEW MODALITIES &
BIOLOGICS PROGRAMS GREENFIELD MARKETS
Laboratory Field
MOLECULE Proposed Indication Preclinical Pilot Studies Pilot Studies Pivotal Study
Tirnovetmab Atopic dermatitis
(IL-31 antibody)
IL-4R antibody Atopic dermatitis
KIND-030 Parvovirus
Inflammatory bowel
Anti-TNF antibody disease
Other product candidates in development (partial list) include KIND-bodies, VEGF antibody, and Checkpoint Inhibitors. Does not include
equine candidates.
Pipeline disclaimer: This material is intended to provide investors with information about KindredBio’s clinical development pipeline and is not intended for promotional purposes.Agreements Validate Commercialization Strategy 11
Sale of Mirataz to Dechra Elanco granted exclusive global rights to Dechra Pharmaceuticals granted
Pharmaceuticals for an upfront payment KIND-030 (parvovirus) in return for exclusive marketing, sales &
of $43 million & low teen royalty on development milestones ≤$16M, sales distribution rights to Zimeta, the first
worldwide sales. Mirtaz was developed milestones ≤$94M & low to high teen FDA-approved drug for the control of
for $5M in five years royalty pyrexia in horsesKey Milestones 12
Molecule Proposed Indication 2019 2020
Positive results from pivotal efficacy study
KIND-030 Parvovirus in dogs Positive pilot study results (prophylactic therapy). Pivotal efficacy study for
treatment indication expected in 2Q 2021.
Commercialization agreement with Elanco
Tirnovetmab (IL-31 antibody) Atopic dermatitis in dogs Pivotal efficacy study commenced in December
Positive pilot study results
2020 and is ongoing
Pilot study to further assess dosing
IL-4R antibody Atopic dermatitis in dogs Positive pilot study results
commenced in 3Q 2020
Inflammatory bowel Positive results from pilot field effectiveness
Anti-TNF antibody Pilot study commenced
disease in dogs study in 4Q 2020
IL-4/13 SINK Atopic dermatitis in dogs Pilot study commenced Positive study results in 1Q 2020
Mirataz® (mirtazapine Control of weight loss Completed sale of Mirataz to Dechra for $43
transdermal ointment) in cats Self-commercialization million and global royalties in April 2020
Commercial launch in the UK and EU by
Mirataz® EU Bodyweight gain in cats Approval
Dechra expected early in 2021
Bodyweight gain in cats Dechra granted exclusive marketing, sales &
Zimeta™ (dipyrone injection) Approval
distribution rights to ZimetaFocus on Innovative Biologics
Biologics: The Future of Veterinary Medicine 14
VETERINARY MEDICINE TO FOLLOW HUMAN
MARKET, IN WHICH TOP DRUGS ARE BIOLOGICS
Industry leading biologics programs
Declining manufacturing costs make biologics competitive in animal health
Administered in office, so veterinarian maintains revenue stream
Highly experienced KindredBio team responsible for developing top human drugs
End-to-end capabilities and new technologies (KIND-bodies)Half-Life Extension 15
Typical canine antibodies have half-life of
9-12 days
KindredBio has developed technology to modify
the Fc tail of antibodies to increase half-life to
3X normal
This could reduce frequency of administration by 3X
and/or could lower cost of goods by 3X
The technology may work for other species
Long-acting versions of certain publicly diclosed
molecules in developmentDeep Pipeline
Canine Parvovirus 17
Highly Contagious Disease Affects mostly puppies, with no approved therapies
Mortality rate as high as 91% if untreated; > 60% of shelter dogs lack
Disease Burden
adequate titers to protect against parvo
Cost Burden Supportive care can cost thousands, with average cost $1,200
Approx. 250,000* canine parvovirus (CPV) cases in the US each year, excluding
Market Opportunity emergency hospitals, shelters, or undiagnosed cases. Veterinarians estimate about
half infected puppies potentially expose other puppies, and each puppy has on
average the potential to expose five others**
Two indications being pursued: Prophylactic therapy after exposure and
Positive Pivotal Efficacy treatment of CPV after infection. In prophylactic study, all placebo-control
Results (Prophylactic) dogs developed CPV infection, while none of the KIND-030 treated dogs
developed the disease. Mortality benefit observed in treated group
Regulatory Timeline Completion of pivotal efficacy study for treatment indication expected in 2Q
2021
Elanco granted exclusive global rights in return for development milestones
Commercialization
of ≤$16M, sales milestones of ≤$94M and low to high teen royalty
Source: * 2014 Banfield State of Pet Health Report; ** Data on file at Kindred Biosciences, Inc. 2019 Veterinarian Parvovirus Research: Anti-Canine Parvovirus Monoclonal Antibody Assessment 10.9.2019Canine Inflammatory Bowel Disease 18
Majority of cases involve chronic states of diarrhea, vomiting, gastroenteritis, and other symptoms
Prevalence
Diarrhea prevalence >5%
Chronic condition, with diagnosis common in middle age
Disease Burden
Existing treatments can have significant drawbacks, leading to treatment lapses or poor quality of life
Cost Burden High willingness to pay given impact on owner
Positive results from pilot field effectiveness study. Complete remission* was achieved in
Recent Catalyst 75% of the anti-TNFα group compared to 17% in the placebo group. The treatment effect
was early-onset and durable
* Defined as ≥ 75% reduction in average post-dose Canine Inflammatory Bowel Disease Activity Index (CIBDAI) score from baselineFirst Approvals
Approvals Underscore Business Model 20
Mirataz is the FIRST and ONLY Zimeta™ (dipyrone injection) is the
FDA-approved transdermal FIRST and ONLY drug FDA-
medication for the management approved for the control of
of weight loss in cats pyrexia (fever) in horses
**Equine clinical relevance has not been determined
Zimeta is indicated for the control of pyrexia in horses
Important Safety Information: ZimetaTM (dipyrone injection) should not be used more frequently than every 12 hours. For use in horses only. Do not use in horses with a hypersensitivity to dipyrone, horses
intended for human consumption or any food producing animals, including lactating dairy animals. Not for use in humans, avoid contact with skin and keep out of reach of children. Take care to avoid accidental
self-injection and use routine precautions when handling and using loaded syringes. Prior to use, horses should undergo a thorough history and physical examination. Monitor for clinical signs of coagulopathy and
use caution in horses at risk for hemorrhage. Concomitant use with other NSAIDs, corticosteroids and nephrotoxic drugs, should be avoided. As a class, NSAIDs may be associated with gastrointestinal, renal, and
hepatic toxicity. The most common adverse reactions observed during clinical trials were Elevated Serum Sorbitol Dehydrogenase (SDH), Hypoalbuminemia and Gastric Ulcers. For complete safety information,
see the product insert at the end of the presentation.Corporate Information
Select Summary Financials 22
December 31, 2020 Quarter FY 2020 Capital Structure Market Cap3
Revenues
Net product revenues $0.1 $0.9 Shares Outstanding1
Revenue from asset sale $0.0 $38.7
Royalty revenue $0.1 $0.5
Contract manufacturing
Partner licensing revenue
$0.2
$0.5
$1.6
$0.5
$203.1M
Total revenues
41.4 M
$1.0 $42.2
Operating costs and expenses
Options2
Cost of product revenues $0.3 $3.9
Contract manufacturing costs $0.0 $0.7
6.4 M
Research and Development $7.6 $31.3
1. As of Mar 10, 2021
Selling, General and Administrative $3.3 $22.0 2. As of Dec 31, 2020
3. As of close of market Mar 12, 2021
Restructuring costs $0.0 $4.2
Aegis Capital Nathan Weinstein nweinstein@aegiscap.com
Total cash operating costs and expenses $11.3 Alliance Global Partners Ben Haynor bhaynor@allianceg.com
$62.1
Barclays Balaji Prasad Balaji.Prasad@barclays.com
Total operating costs and expenses $9.8 $54.5 Cantor Fitzgerald Brandon Folkes brandon.folkes@cantor.com
(including stock-based compensation) Guggenheim Securities David Westenberg david.westenberg@GuggenheimPartners.com
H.C. Wainwright & Co. Swayampakula Ramakanth sramakanth@hcwresearch.com
Total cash, cash equivalents, and investments $59.9 $59.9 Lake Street Capital Markets Brooks O’Neil brooks.oneil@laketreetcm.com
Stifel Jonathan Block blockj@stifel.comCompelling Value Proposition 23
Deep pipeline in
First three approvals
development
validate business model
Focus on Multiple potential blockbuster
Successful development
highest value launches anticipated
track record - 9 positive in next three years
pilot studies in a row biologics
IP platform to maximize
program value
Capital-efficient Deep pipeline
model reduces targets large
financing needs markets
Partnership-focused model
Runway through early 2023
maximizes product opportunity
Capital to achieve key
Partnerships to Mirataz and KIND-030
pipipeline catalysts
maximize agreements underscore
Reduction in operating demand for assets
expenditures under new model product value
Strong capital position
Quarterly opex of ~$10M provides ability to optimize
expected through 2021 partership termsRecent & Upcoming Catalysts for Late Stage Pipeline 24
Tirnovetmab (IL-31) pivotal study for canine
Reduce
atopic dermatitis commenced in 4Q 2020 technical risk
KIND-030 pivotal efficacy study for parvovirus
in dogs to complete in 2Q 2021
Second pilot study for IL-4R program for
canine atopic dermatitis commenced in
3Q 2020
Positive results from pilot study for anti-TNF
antibody in 4Q 2020
Multiple blockbuster approvals anticipated in
next several yearsKindredBio Highlights 25
Focus on Leveraging Attractive ROI
innovative validated potential,
biologics human targets with cost of
– the future to maximize development
1 2 3
of veterinary probability of 100 times lower
medicine success than human
markets
Deep pipeline in Strong, Broad intellectual
development. late-stage portfolio &
Three approvals pipeline for state-of-the-art
validate canine manufacturing
4 development
model 5 dermatitis
6 capabilitiesContact Investor Relations 26
For investor inquiries:
Katja Buhrer
katja.buhrer@kindredbio.com
(917) 969-3438
Corporate Office: San Diego Office:
1555 Bayshore Hwy, Suite 200 591 Camino De La Reina, Ste 407
Burlingame, CA 94010 San Diego, CA 92108
Tel (650) 701-7901
© 2020 Kindred Biosciences, Inc, Burlingame, CA 94010. All rights reserved.Zimeta - Prescribing Information 27
65000010 - AW v.1
ref.: D300.060 F57
Zimeta™ Control
(dipyrone injection) Product
Adverse Reaction (N=107) (N=31)
Elevated Serum Sorbitol Dehydrogenase (SDH) 5 (5%) 5 (16%)
Hypoalbuminemia 3 (3%) 1 (3%)
Gastric Ulcers 2 (2%) 0 (0%)
Hyperemic Mucosa Right Dorsal Colon 1 (1%) 0 (0%)
Prolonged Activated Partial Thromboplastin Time 1 (1%) 0 (0%)
(APTT)
Elevated Creatinine 1 (1%) 0 (0%)
Injection Site Reaction 1 (1%) 0 (0%)
Anorexia 1 (1%) 1 (3%)
O CH3 O
N S
N ONa H2 O
O
N
H3 C CH3Zimeta - Prescribing Information 28
65000010 - AW v1
ref.: D300.060 F57
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