Ovarian Cancer
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JamesJames A.A. Bianco,Bianco, M.D.M.D. PresidentPresident andand CEOCEO C E L L T H E R A P E U T I C S, I N C. (N A S D A Q : C T I C) ForwardForward LookingLooking StatementStatement This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this presentation include statements about future financial and operating results, and risks and uncertainties that could affect CTI’s product and products under development. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which CTI expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks associated with preclinical, clinical and sales and marketing developments in the biopharmaceutical industry in general and in particular including, without limitation, the potential failure of XYOTAX™ to prove safe and effective for treatment of non-small cell lung and ovarian cancers, the potential failure of pixantrone to prove safe and effective for treatment of non-Hodgkin’s lymphoma, determinations by regulatory, patent and administrative governmental authorities, competitive factors, technological developments, costs of developing, producing and selling CTI’s products under development; and other economic, business, competitive, and/or regulatory factors affecting CTI’s business generally, including those set forth in CTI’s filings with the SEC, including its Annual Report on Form 10-K for its most recent fiscal year and its most recent Quarterly Report on Form 10-Q, especially in the “Factors Affecting Our Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections, and its Current Reports on Form 8-K. Except as may be required by Italian law, CTI is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. AgendaAgenda •• General corporate overview •• Current portfolio status: development stage, time horizons to commercial launch •• New product acquisitions, portfolio synergies and status •• Commercial Opportunity: Pixantrone, XYOTAX® •• Capital Structure, financials, stock performance •• Milestones next 12 months: key messages GeneralGeneral OverviewOverview ••CTI- Incorporated 1991: University of Washington and Fred Hutchinson Cancer Research Center Seattle, WA (Nobel Prize recipient E.D.Thomas) - Founders: Former Chief of Oncology and Former Director Marrow Transplant Program ••Selected biotech companies originating from the UW/Fred Hutchinson Cancer Center - Immunex 1987, purchased by Amgen 2004 $16B - ICOS 1991, purchased by Eli Lilly 2005 $3.5B - Pathogenesis 1991, purchased by Chiron 2003 $650M ••Average time and expenditure for biotech companies to become profitable: 15 to 17 years >$1B • Most significant Value Appreciation in Biotech Stocks occurs between phase III results and NDA approval - CTIC: In 2000 was 2nd best performing stock on NASDAQ: (~1500% annual return) following Trisenox® NDA GeneralGeneral OverviewOverview ••Established operations March 1992, Seattle WA ••Singular focus: build profitable cancer company - Bring to market less toxic more effective cancer drugs ••Initial Public Offering : March 1997 ••Growth through acquisition strategy - Successful product acquisition track record • 1 product (Trisenox®) approved and marketed in US/EU/Japan • Sold to CEPH in 2005 for $70,000,000 and potential $80,000,000 earnouts • 1 product (XYOTAX) pending MAA filing • 2 products (Xyotax, pixantrone) completing phase III trials ••Merged with Novuspharma January 2004 TRISENOX® (arsenic trioxide) IntegratedIntegrated DevelopmentDevelopment CapabilitiesCapabilities Post-Novuspharma merger • Former oncology drug development unit of Boehringer Mannheim, and later part of Roche oncology - Expertise in pre-development, pharmacology, CMC, Phase I/II - Cost efficient, pharma drug development expertise ResearchResearch DevelopmentDevelopment Target Target Lead Lead Pharmacology Clinical Sales & Manufacture Regulatory Identification Validation Generation Optimization Preclinical Trials Marketing MergerMerger gavegave CTICTI fullyfully integratedintegrated capabilitiescapabilities fromfrom targettarget discoverydiscovery throughthrough commercializationcommercialization InternationalInternational ReachReach United States Europe - SEATTLE, WASHINGTON - BRESSO, ITALY ••~140 FTEs in, clinical, regulatory ••~80 employees in and commercial operations pharmacology, toxicology, preclinical studies, CMC, QA/QC PortfolioPortfolio StrategyStrategy •• Improve the safety and effectiveness of the most frequently prescribed anti-cancer drugs - Taxanes - Anthracyclines - Platinates •• Develop new agents with unique mechanisms of tumor cell killing without more side effects - Bis-platinates - Hif-1α inhibitors CommercialCommercial StrategyStrategy •• BloodBlood--relatedrelated CancerCancer MarketMarket (lymphoma, leukemia, myeloma, MDS) - Typical market size between 10,000 to 60,000 patients/year - Middle-tier companies have been successful with product entries - Strategy: Establish sales and marketing presence to promote CTI products •• SolidSolid TumorTumor MarketMarket (NSCLC, breast, ovarian, CRC, prostate) - Typical market size between 120,000 to 200,000 patients/year - Dominated by top 5 multi-national pharma-companies - Strategy: Establish commercial partnerships with co-promotion option CurrentCurrent ProductProduct PipelinePipeline StatusStatus 22 LateLate StageStage ProductsProducts NearingNearing ApprovalApproval Maturing phase III programs for pixantrone and XYOTAX Pixantrone results in DBCL and Follicular have high probability of success Phase III results 2007 Potential NDA late 2008 XYOTAX has good likelihood of approval in EU with existing STELLAR data MAA filing early ’08 with potential approval 1H-‘09 XYOTAX gender based Lung and Ovarian trials have high probability of success NDA potential filing for NSCLC 1-H ’09, Ovarian 2H- ’09 Commercial Launch in 12-18 months Clinical Pipeline Gap Only pre-clinical candidates after pixantrone and Xyotax 2 new “first in class” cancer drugs OncologyOncology PipelinePipeline CurrentCurrent ApprovalApproval && LaunchLaunch DateDate TargetsTargets 2007 2008 2009 2010 2011 Pixantrone Phase III Phase III Launch Q1-3rd Launch Launch results results line DBCL Year +1 Year +2 DBCL Follicular Launch Q4-2nd File NDA line Follicular Xyotax File MAA EU launch Q2 Launch – Launch File NDA (NI)-Lung Ovarian Year +2 US launch-Q4 Year +1 Lung-women Bis- Select File IND Start phase II Start Pivotal lead, Start trial(s) pivotal trial(s) platinate Start phase IND I trial trial(s) continue studies HIF-1α Lead Lead Start IND File IND Start phase II Optimize selection studies Start phase trial(s) preclinical I trial studies = commercial 20072007 ProductProduct PipelinePipeline StrategyStrategy “Jump start” commercial effort in blood related cancer market Acquire marketed product that has synergies with pixantrone Re-establish commercial infrastructure in advance of pixantrone launch Generates awareness of pixantrone trials and indications Synergies in selling to same target audience Sales training, MSL support, clinical trial support Add additional phase II/III product to pipeline that could permit a focused selling effort in targeted solid tumor applications Initial indications <20,000 patients annually Allows utilization of the 35FTE’s under NVS agreement Allows CTI to back integrate into the larger solid tumor market once resources and infrastructure permit OncologyOncology PipelinePipeline Proposed Additions and Target Dates 2007 2008 2009 2010 2011 2012 2013 Marketed Phase III Phase Expand Expand PRODUCT A st Relapsed 1 line III’s Label- Label DBCL st st Follicular results 1 line 1 line st NHL 1 line DBCL Follicular Follicular Pixantrone Launch Launch Launch DBCL Year +1 Year +2 Follicular XYOTAX Launch Launch Launch Lung Ovarian Year +2 PRODUCT B Phase II- Pivotal File Launch Launch III Lipo- Year +1 Lipo- NDA Lipo- sarcoma sarcoma sarcoma Bis-platinates Select File IND Start Start Phase III NDA Launch lead Start Phase phase continues filing Phase 1 II III Hif-1α Lead Select Start File IND Start Start Phase Optimize Lead IND Start phase II Phas III Start studies phase I e III (cont) preclin = commercial ByBy yearyear endend --20072007 CTI will have marketed product with annual sales ~$15M Market expansion phase III studies in progress CTI will have reported on pixantrone Phase II/III trial results Meet with FDA to discuss