WHAT’S HOT & WHAT’S NOT IN ONCOLOGY LICENSING

Based on the web panel discussion of the same name on February 13, 2020

Cancer is the biggest therapeutic area for licensing deals. But there Panelists: are almost 3,000 drugs in Phase 1 • Linda M. Pullan, PhD through Phase 3, so competition Founder, Pullan Consulting for licensing deals and for market • Jeffrey M. Bockman, PhD position is huge. Checkpoint EVP, Oncology Practice Head, inhibitors have benefits in most Cello Health BioConsulting tumors and have made combination • Asthika Goonewardene Managing Director, trials an industry standard. But Senior Biotech Analyst, everything in immuno-oncology SunTrust Robinson Humphrey has become so crowded that • Peter Sandor, PhD differentiation is key. So what are SVP Oncology, Astellas Pharma the areas everyone is seeking? • Chris Sheldon, PhD In our February 13th panel discussion, VP & Head of Oncology Business Development, AstraZeneca Linda Pullan, PhD of Pullan Consulting and our panel of experts provided insights in oncology and immuno- oncology to answer Figure 1: 2019 Sales2019 by Sales Therapeutic Area these questions. 160 140 137

Oncology Sales 120

Oncology is an 100

enormous therapeutic 80 area and oncology 60 54

drugs are expensive. Billions USD Sales 40 32

2019 Sales, $US Billions 20

0 RespiratoryRespiratory CardiovascularCardiovascular OncologyOncology Source: GlobalData ShareVault, Pullan Consulting, and Cello Health BioConsulting

The top selling drugs today are a mix of small molecules and antibodies. A few are immuno-oncology, but many of them are targeted therapeutics.

Figure 2: Top-Selling Drugs in 2018 0 2000 4000 6000 8000 10000 12000

Revlimid (Celgene, COX2/TNFa,… Keytruda (Merck, PD1, Ab) Herceptin (Roche, HER2, Ab) Avastin (Roche, VEGF, Ab) MabThera/Rituxan (Roche, CD20, Ab) Opdivo (BMS, PD1, Ab) Ibrance (Pfizer, CDK, small mol) Zytiga (J&J, CYP17A1, small mol) Xtandi (Astellas, AR, small mol)

Imbruvica (Abbvie, BTK, small mol) Source: GlobalData

If we look at oncology sales forecast for 2025, certainly, the immuno-oncology (in orange) dominance is increasing with time. Keytruda sales have skyrocketed and Opdivo sales also remain strong but there are new entrants into the top 10 (in yellow).

Figure 3: Top 10 Drugs 5,000Forecast for10,000 2025 ($M)15,000 20,000 25,000 5,000 10,000 15,000 20,000 25,000 Keytruda (Merck. Ab, PD1) 5,000 5,000 10,000 10,000 15,000 15,000 20,000 20,000 25,000 25,000 RevlimidKeytruda (BMS,Keytruda small (Merck. mol., (Merck.Ab, TNFa/COX2) PD1) Ab, PD1) RevlimidRevlimid (BMS, small (BMS, mol., Opdivosmall TNFa/COX2) mol., (BMS, TNFa/COX2) Ab, PD1) IbranceOpdivo (Pfizer,Opdivo (BMS, small Ab, (BMS, PD1)mol., Ab, CDK) PD1) Ibrance IbranceIbrance(Pfizer,Perjeta small(Pfizer,(Pfizer, (Roche, mol., smallsmall CDK) Ab, mol.,mol., HER2) CDK)CDK) Perjeta Perjeta(Roche,Tagrisso (Roche, Ab, (AZ, HER2) Ab, Ab, EGFR) HER2) ImbruvicaTagrissoTagrisso (J&J,(AZ, Ab,small (AZ, EGFR) mol., Ab, EGFR)BTK) ImbruvicaImbruvicaImbruvicaImbruvica (J&J, (Abbvie, small (J&J,(J&J, mol., small smallsmall BTK) mol. mol.,mol., BTK) BTK)BTK) ImbruvicaDarzalexImbruvicaImbruvica (Abbvie,(J&J, Ab, (Abbvie,(Abbvie, small ADP mol. ribose smallsmall BTK) mol.Cyclase)mol. BTK)BTK) DarzalexDarzalex (J&J, XtandiAb, (J&J, ADP (Astellas, Ab, ribose ADP Cyclase) smallribose mol. Cyclase) AR) Xtandi (Astellas,Xtandi (Astellas, small mol. small AR) mol. AR) Source: GlobalData

2 What’s Hot & What’s Not in Oncology Licensing, 2020

There has been a paradigm shift Nectin-4 as a target for bladder cancer toward immuno-oncology that has and the data is truly astonishing. That changed the way we think about drug has the ability to be utilized in oncology drug development. multiple lines of therapy and multiple disease areas and will likely be a big Linda Pullan: Considering how product. strong the field of immuno-oncology is, Similarly, the novel HER2-targeting and will likely continue to be, are there antibody-d