Syneos Health® Consulting Biopharma BD Newsletter

Syneos Health® Consulting

BioPharma BD Newsletter February 19, 2021

2020 | H2 Overview Newsletter Despite a slowing in deal making due to economic uncertainty and deal friction caused by Content the global pandemic in H1, the biopharmaceutical industry has rebounded nicely in H2 with large increases in both deal volume and deal value. Not surprisingly, growth was driven by a focus on COVID-19 assets as well as mergers and acquisitions within the usual . H2 Deal Summary drivers of oncology and immunology therapeutic areas. We expect oncology, immunology, . H2 US IPOs and cell therapy to remain as in-demand areas for deal-makers in 2021. Additionally, the . 2020 Deal Spotlight influx of funding into the biopharma industry continues to drive an upward trend of US IPOs with 42 companies going public in H2 2020. . 2020 Overview H2 Deal Summary1

HIGHLIGHTS . AstraZeneca announced that it w ould acquire Alexion for $39B, a strategic move to build a greater presence in immunology 2 . Strengthening their position in Oncology, Gilead laid out $21B to acquire Immunomedics and their lead product Trodelvy, a fir st-in- class antibody drug conjugate approved to treat triple-negative breast cancer w ith promise for additional solid tumors 3 . AstraZeneca and Daiichi Sankyo have entered a global development and commercialization collaboration agreement for oncology candidate, trastuzumab deruxtecan (DS-8201); the partnership deepens each company’s oncology portfolios 4

H2 2020 # of Deals Tot. Deal Avg. Deal No. of Deals Avg. Upfront YoY Growth Summary disclosed Value (M) Value (M) With upfront Payments % H2 2020 v. finances of payments (M) H2 2019 total Tot. Deal Value Mergers & 25 (of 41) $93,304 $2,323 17 $2,389  255% Acquisitions

Partnerships 47 (of 256) $39,180 $834 36 $132  88%

Asset 11 (of 70) $9,994 $909 6 $616  49% Purchases

Deals by Geography

WW -- | 32 | 4

NA EU 22 | 1 | 7 2 | 1 | --

APAC 1 | 13 | --

1 Legend: Note: M&As deals used the sellers HQ country. Partnerships deals listed through the licensing territory. Asset M&A Partnerships Asset Purchases Purchases deals used either the HQ country or the licensing territory. YoY Growth only includes deals with disclosed value syneoshealth.com © 2021 All rights reserved | Confidential | For Syneos Health® use only Syneos Health® Consulting

BioPharma BD Newsletter February 19, 2021

H2 2020 Deal Summary1

Value & No. of Deals by Quarter Value of Deals (M) No. of Deals

100,000 61 Deals 70 $80,026M 60 80,000 22 Deals $62,451M 50 60,000 29 Deals 40 31 Deals $37,086M 40,000 43 Deals 30 Deals 30 $29,758M $26,521M $23,591M 20 20,000 10 0 0 Q3 ‘19 Q4 ‘19 Q1 ‘20 Q2 ’20 Q3 ’20 Q4’ 20

 Deal volume saw a sharp increase for Q3 YoY and a slight drop off for Q4 YoY; however, overall deal value increased mainly due to mega mergers such as the AstraZeneca acquisition of Alexion ($39B)

Value & No. of Deals by Therapeutic Area H2 2020 Value of Deals (M) No. of Deals

60,000 30 Deals 30 $48,661M 50,000 3 Deals 25 $40,705M 40,000 20

30,000 15 14 Deals 3 Deals 20,000 $15,611M $14,940M 12 Deals 10 $8,967M 3 Deals 10,000 $5,950M 3 Deals 4 Deals 4 Deals 4 Deals 1 Deal 1 Deal 1 Deal 5 $2,367M $2,283M $1,530M $1,192M $211M $46M $15M 0 0 Onc Hem Neuro Auto Inf ec Inf lam Endo/Meta Hepatic Muscu Cardio Genito Ophth Gastro

 Driven primarily by M&As, oncology and hematology continue to see growth for both deal value and deal volume in 2020

Value & No. of Deals by Development Phase H2 2020 Value of Deals (M) No. of Deals

70,000 12 Deals 25 60,000 $56,315 20 50,000 15 40,000 9 Deals 22 Deals $27,777M $28,824M 30,000 10 18 Deals 20,000 8 Deals $11,250M $8,283M 6 Deals 4 Deals 5 10,000 1 Deal 3 Deals $1,360M $1,626M $3,748M $3,305M 0 0 Marketed Approv ed Registration Phase III Phase II Phase I Preclinical Research Undisclosed  Preclinical and Phase II stages of development saw the highest volume of deals while deal value was highest for marketed products

2 Legend: Note: Therapeutic count was determined by the largest drug in the pipeline or the focus drug M&A Partnerships Asset Purchases Deal Count of the deal. The graph only includes deals with disclosed financing. syneoshealth.com © 2021 All rights reserved | Confidential | For Syneos Health® use only Syneos Health® Consulting

BioPharma BD Newsletter February 19, 2021

H2 Deal Summary – Top Deals by Total Deal Value1

Top 3 Mergers & Acquisitions

Tot. Deal Upfront Buyer Company Summary Value (M) Payment (M)

AZ acquires Alexion to expand its immunology presence, $39,000 $39,000 ASTRAZENECA ALEXION and accelerate the companies strategic development

IMMUNO- Gilead Sciences acquires Immunomedics to strengthen GILEAD $21,000 $21,000 MEDICS their oncology portfolio

CBPO CHINA China Biologic merges w ith parent company CBPO $4,760 -- HOLDINGS BIOLOGICS Holdings to go private

Top 3 Partnerships Tot. Deal Upfront Licenser Licensee Partnership TA Phase Value (M) Payment (M)

DAIICHI Development and ASTRAZENECA $6,000 $1,000 Oncology Phase II SANKYO Commercialization License

SEATTLE Development and MERCK & CO $4,475 $600 Oncology Phase II GENETICS Commercialization License

DENALI Development and BIOGEN $2,150 $560 Neurology Phase I THERAPEUTIC Commercialization License

Top 3 Asset Purchases

Tot. Deal Upfront Buyer Seller Phase Asset Value (M) Payment (M)

US GSK & Supply the US w ith 100 million doses of $2,100 $2,100 Preclinical GOVERNMENT SANOFI COVID-19 vaccine – Warp Speed

US PFIZER & Pfizer & BioNTech enter supply agreement $1,950 -- Phase II GOVERNMENT BIONTECH w ith US to supply COVID-19 vaccine

US Novavax receives funding to manufacture NOVAVAX $1,600 -- Phase II and supply the US w ith COVID-19 vaccine – GOVERNMENT Warp Speed

BioPharma BD Newsletter February 19, 2021

H2 US IPOs – Top 20 IPOs by Amount Raised1

Ticker Amount Lead Product Date Company Therapeutic Area (NASDAQ) Raised (M)  Status Complete

Relay Therapeutics RLAY $460 Oncology Phase I Jul 15 Atea Pharmaceuticals AVIR $345 Infectious Disease Phase II Oct 29 AlloVir Inc. ALVR $318 Infectious Disease Phase III Jul 30 Nkarta Inc. NKTX $290 Oncology Preclinical Jul 10 Kronos Bio Inc. KRON $288 Oncology Phase II Oct 08 Kinnate Biopharma Inc. KNTE $276 Oncology Preclinical Dec 02 Dyne Therapeutics Inc. DYN $268 Musculoskeletal Preclinical Sep 16 Annexon Inc. ANNX $251 Neurology Phase I Jul 23 PMV Pharmaceuticals Inc. PMVP $244 Oncology Preclinical Sep 24 Olema Pharmaceuticals Inc. OLMA $240 Oncology Preclinical Nov 18 Shattuck Labs Inc. STTK $232 Oncology Phase I Oct 08 Poseida Therapeutics Inc. PSTX $224 Gene/Cell Therapy Phase II Jul 09 4D Molecular Therapeutics Inc. FDMT $222 Gene/Cell Therapy IND Dec 10 C4 Therapeutics Inc. CCCC $210 Oncology Preclinical Oct 01 Nurix Therapeutics Inc. NRIX $209 Oncology Preclinical Jul 23 Athira Pharma Inc. ATHA $204 Neurology Phase II Sep 17 Kymera Therapeutics Inc. KYMR $200 Inflammation Preclinical Aug 20 Praxis Precision Medicines PRAX $190 Neurology Phase II Oct 15 BioAtla Inc. BCAB $189 Oncology Phase II Dec 15 Prelude Therapeutics Inc. PRLD $182 Oncology Phase I Sep 24

Value & No. of IPOs by Quarter

Value of IPOs (M) 20 IPOs No. of IPOs 4,000 19 IPOs $3,835M 25 $3,576M 22 IPOs 3,500 $3,167M 20 3,000

2,500 15 2,000 8 IPOs 1,500 12 IPOs $1,258M 10 5 IPOs $1,033M 1,000 $625M 5 500 0 0 Q3 ’19 Q4 ’19 Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20

BioPharma BD Newsletter February 19, 2021

2020 Deal Summary – Spotlight on COVID-191 Value & No. of Deals for COVID-19 COVID-19 Deal Summary

Value of Deals ($M) 2020 Summary # of Deals Tot. Deal Avg. Deal Value 37 Deals 11,500 $11,319M 40 with Value (M) (M) Disclosed 11,000 35 No. ofNo. Deals Finances 30 3,000 Mergers & 1 $15 -- 2,500 25 Acquisitions 2,000 20 1,500 15 Partnerships 28 $2,624 $94 1,000 10 Asset 500 5 8 $8,680 $1,085 Purchases 0 0 COVID-19 Top 10 COVID-19 Deals

Tot. Deal Value Upfront Deal Type Summary (M) Payment (M)

Sanofi & GSK partner w ith US Gov. to supply US w ith 100M doses of $2,100 $2,100 Asset Purchase COVID-19 vaccines

Pfizer & BioNTech enter supply agreement w ith US Gov. for COVID-19 $1,950 -- Asset Purchase vaccine candidate

Novavax receives $1.6B funding from US Gov. to develop & manufacture $1,600 -- Asset Purchase COVID-19 vaccine candidate NVX-CoV2373

Moderna partners w ith US Gov. to supply 100M doses of mRNA-1273 $1,525 -- Asset Purchase vaccine to prevent COVID-19

$1,000 -- Asset Purchase J&J enters supply agreement w ith US Gov. for COVID-19 vaccine candidate

BARDA partners w ith Moderna to develop mRNA-1273 vaccine against $955 -- Partnership COVID-19

Pfizer partners w ith BioNTech to co-develop and distribute BNT162, a $748 $72 Partnership mRNA-based COVID-19 vaccine

Vir Biotechnology partners w ith Samsung Biologics to manufacture SARS- $362 -- Asset Purchase COV-2 antibody treatments for COVID-19

$250 -- Partnership GSK and Vir Biotechnology partner to find coronavirus solutions

Novartis partners w ith Molecular Partners to develop and commercialize $231 -- Partnership MP0420 and MP0423 to treat COVID-19 infection

BioPharma BD Newsletter February 19, 2021

2020 Summary1

Top Dealmakers of 2020 No. of Tot. Deal Company Summary Deals Value (M) GILEAD 23 $32,921 The biopharmaceutical sector has experienced continued volatility as a combination of economic factors and the global pandemic drive 16 $13,378 SANOFI change across the landscape. Despite uncertainty around the global MERCK & CO 22 $12,876 economy, 2020 was a banner year for IPOs within the biopharmaceutical landscape. In terms of deals, M&As led the way J&J 15 $10,600 with several deals surpassing the billion dollar threshold, however PFIZER 26 $9,307 robust activity was seen across all deal types.

Mergers & Acquisitions Partnerships & Asset Purchases

61 $82,309 $1,349 213 $114,227 $534 Disclosed Deals $ Tot. Deal Value $M Avg. Deal Value $M Disclosed Deals $ Tot. Deal Value $M Avg. Deal Value $M

AstraZeneca acquires Alexion for $39B to add to its rare disease, and immunology portfolio, accelerating the companies strategic dev elopment5  The deal creates a roughly $30 billion-a-year biopharma powerhouse that expands AstraZeneca’s focus on developing drugs for indications in oncology, respiratory diseases, cardiovascular, renal, and metabolic disorders  AstraZeneca plans to expand on Alexion’s pipeline of 11 molecules across more than 20 clinical-development programs in rare diseases and beyond  AstraZeneca anticipates $500 million in annual pre-tax “synergies” due to reduced spending by the end of the third year following completion of the acquisition, as well as double-digit core earnings per share growth for the first three years as a combined company

Daiichi Sankyo grants AstraZeneca rights to co-dev elop and commercialize an oncology candidate outside of Japan, deepening each company’s oncology portfolios6  The oncology candidate is being developed for multiple tumors that express trophoblast cell-surface antigen 2 (TROP2), including the majority of non-small cell lung cancers and breast cancers  AstraZeneca is delighted to enter the new collaboration with Daiichi Sankyo and to build on the successful launch of Enhertu to further expand their pipeline and leadership in oncology  Under the terms of the deal, AstraZeneca is paying Daiichi Sankyo $1 billion up -front in staged payments: $350 million due on completion, with $325 million after 12 months and $325 million after 24 months from date of agreement

Sanofi and GlaxoSmithKline snag the biggest coronav irus vaccine deal in 2020 with the US Federal Gov ernment, securing $2.1 billion to supply the US with 100 million doses of its experimental vaccine 7  Under the U.S. deal, Sanofi and GlaxoSmithKline will receive federal funding to pay for clinical trials as well as for manufacturing the vaccine  The partnered coronavirus vaccine relies on a protein-based technology that the company already uses to produce influenza vaccine  GSK is supplying the Sanofi vaccine with an adjuvant, an ingredient used in many vaccines that boosts the immune response

BioPharma BD Newsletter February 19, 2021

Sources Authors

1. https://bciq.biocentury.com/deal/all-deals/insights 2. https://www.astrazeneca.com/media-centre/press- releases/2020/ astrazeneca-to-acquire-alexion.html 3. https://www.gilead.com/news-and-press/press-room/press-releases/2020/9/ gilead-sciences-to- acquire-immunomedics 4. https://www.astrazeneca.com/media-centre/press-releases/2019/ astrazeneca- and-daiichi-sankyo- enter-collaboration-for-novel-her-2-targeting-antibody-drug-conjugate.html 5. https://www.genengnews.com/news/astrazeneca-to-acquire-alexion-for-39b-adding-rare-disease- immunology-assets/ 6. https://www.biospace.com/article/astrazeneca-inked-development-deal-with-daiichi-sankyo-for-cancer- drug-conjugate/ Neel Patel 7. https://www.nytimes.com/2020/07/31/health/covid-19-vaccine-sanofi-gsk.html Executive Managing Director Note: M&A deal ty pes include: Full Acquisition, Merger, Acquisition Option, and Majority Acquisition. M&A [email protected] asset types include: Company. Partnership deal types include: Academic / Foundational / Govt. Research, Collaborative Research and Product License Option, Development and Commercialization License, Equity Stake and License Option, Joint Venture / Consortium. Partnerships asset types include: Pharmaceutical Products and Company. Asset Purchases deal types include: Product Pipeline or Platform Purchase, Gov ernment Supply Contract, and Facility Purchase. Asset Purchases asset types include: Facility, Grants, Pharmaceutical Products.

About Syneos Health® Syneos Health® is the only fully integrated biopharmaceutical solutions organization. The Company, including a Contract Research Organization (CRO) and Contract Commercial Organization (CCO), is purpose-built to accelerate Katya Magonova customer performance to address modern market realities. We bring together Senior Engagement Manager approximately 25,000 clinical and commercial minds to help our [email protected] biopharmaceutical customers shorten the distance from lab to life. Syneos Health Consulting is a leading management consulting firm specializing in the life sciences industry. We provide deep subject matter expertise over the entire lifecycle of an organization, portfolio or asset and our unique ability to leverage end-to-end capabilities and global functional and therapeutic experts results in highly customized solutions. Learn more at syneoshealth.com and syneoshealth.com/solutions/consulting and syneoshealth.com/solutions/consulting/portfolio-strategy-and-transactions of FDA-approved Novel of EMA-approved products Andrew Okimura New Drugs developed or developed or commercialized Consultant 92% commercialized by Syneos 94% by Syneos Health (2015–2019) Health (2015–2019) [email protected]

Therapeutic Expertise Only end-to-end outsourced Cardiovascular integrated solutions Endocrinology company Hematology & Oncology Hepatology More than 6,800 Immunology projects successfully Neuroscience Nick Milazzo delivered Dermatology Associate Consultant + more [email protected]