NEA_Menlo_Park

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Pharmion Overview

• Global Specialty Pharmaceutical Company
• Focused on Hematology and Oncology
• Licensed Four Products to Date
• Commercial, Regulatory and Development
  Capabilities
• Innovative Products with High Therapeutic Impact

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Global Leverage

• Pharmion Organization US, EU and Australia
• Distributor network in 30 additional countries
• Increases product licensing opportunities
• Allows for regional and global partnerships
• Global branding
• Consistent regulatory strategy
• Consistent product label
• Consistent pricing
• Consistent product positioning
• Highly economic for hematology/oncology products

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Pharmion Organization

• 130 employees
• Regulatory Affairs
• Medical Marketing
• Sales and Marketing
• Commercial Development
• Information Technology

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Initial Focus Hematology

• Highly responsive to scientific marketing and
  education programs
• Well developed global network
• Focused target audience
• Opinion leaders
• Community professionals
• Limited attention from big pharma
• Platform to enter broader oncology market

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Pipeline Overview

• Phase of Product Indication
  Development Licensor Territory
• Thalomid Relapsed/refractory
  Registration Celgene EU selected multiple
  myeloma ROW ENL territories
• Azacitidine Myelodysplastic Preregistration Phar
  macia Global syndrome
• Refludan Heparin induced Marketed Schering
  AG EU/ROW thrombocytopenia
• Innohep Treatment of Marketed LEO
  Pharma US DVT with or A/S without PE

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Thalomid

• Licensed from Celgene for all markets outside
  North America, Japan, China, Korea and Taiwan
• License fees and royalties to Celgene
• Validated sales potential 82M in 2001 US sales
• Predominant use in Multiple Myeloma
• Potential in multiple tumor types
• Licensed S.T.E.P.S. safety program

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Thalomid Regulatory Status

• Licensed Thalomid from Celgene November 2001
• Submitted MAA to EMEA March 2002
• Seeking two indications
• ENL
• Relapsed/refractory multiple myeloma
• Orphan drug designations provide 10-year
  exclusivity
• Approval for initial indication expected 2003

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Thalomid in Multiple Myeloma (MM)

• Relapsed/refractory MM
• Barlogie University of Arkansas study
• 31 of patients responded (? 50 ? in M-protein)
• 47 overall survival rate at 2 years
• Initial therapy MM
• Phase II Mayo Clinic study
• Thalidomide dexamethasone, 50 patients 64
  response (? 50 ? in M-protein)
• Phase III Celgene sponsored study
• 440 patients
• Thalidomide dexamethasone VS placebo
  dexamethasone

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THALOMID US Oncology Usage

• Solid Tumors 26
• Renal cell 6
• Brain 4
• Melanoma 3
• Colorectal 2
• Prostate 2
• Bladder 1
• Liver 1
• Lung 1
• Other 6

Hematologic Malignancies 74 Multiple myeloma
67 MDS 5 Other 2
Solid Tumor
Hematologic
SOURCE S.T.E.P.S.
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Key Elements of S.T.E.P.S.(System for Thalomid
Education and Prescribing Safety)

• Prescriber, pharmacy, and patient registration
• Patient education and informed consent
• Pregnancy testing and contraception
• Monthly surveys for prescribers and patients
• Prospective interventions by Company to prevent
  inappropriate use
• Company authorization for dispensing each
  prescription
• No automatic refills or phone orders
• Controlled pharmacy reorders and patient refills

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Azacitidine

• Licensed global rights from Pharmacia in June
  2001
• Royalty-based acquisition
• One-time option to convert to 50/50
  WWco-promotion relationship
• Initial indication sought Myelodysplastic
  Syndromes
• Phase III study completed and published
• Unique Mechanism of Action Demethylation
• Potential in other tumor types

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Azacitidine Regulatory Status

• Licensed Azacitidine from Pharmacia June 2001
• Pre-NDA meeting held Q4 2002
• NDA submission on schedule for H1 2003
• EMEA submission on schedule for H2 2003
• Seeking first-line MDS indication
• Confirmatory Phase III study to begin Q1 2003
• Orphan drug designations provide 7-year (US) and
  10-year (EU) exclusivity

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Myelodysplastic Syndromes (MDS)

• Bone marrow disorder characterized by immature
  blood cells with abnormal function
• Can effect red blood cells, white blood cells,
  and platelets
• Mortality from bleeding and/or infection
• Transformation to acute leukemia
• Incidence in US and Europe 35,000 patients
• Currently no approved treatment
• Azacitidine could be first approved treatment for
  MDS

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Azacitidine Phase III Results

• Azacitidine statistically superior to supportive
  care for
• Response 60 of pts (7 CR, 16 PR, 37
  improved) on azacitidine vs 5 improved on
  supportive care (plt0.001)
• Time to leukemic transformation or death 21
  months with azacitidine vs 13 months on
  supportive care (plt0.007)
• Transformation to AML first event in 15 of
  azacitidine patients vs 38 with supportive care
  (plt0.001)
• QOL Improvement (fatigue, shortness of breath,
  psychological state, etc.) (plt0.05)

Silverman et al, JCO, May 15 2002, 2429-2440
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Azacitidine in MDS

• The positive experience with azacitidinebrings
  new hopes to thousands of patientswith MDS and
  to investigators who dedicate their research to
  improving prognosis in this relatively common and
  lethal malignancy

- Hagop M. Kantarjian
JCO, May 15 2002, 2415-2416
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Refludan

• Licensed from Schering AG in June 2002 for all
  countries outside US and Canada
• Upfront and milestone payments
• Direct thrombin inhibitor for treatment of
  heparin-induced thrombocytopenia (HIT)
• 2001 EU Sales 5M in Germany with no promotion
• Pharmion launching throughout EU and ROW
• Approved in 42 countries

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Refludan Establishes EU/ROW Commercial
Infrastructure

• European headquarters located in Cambridge, UK
• 9 EU country subsidiaries
• General Managers
• Regulatory Specialists
• Medical Directors
• Sales reps
• 15 EU sales reps in place
• 40 EU sales reps planned for the end of 2003
• Australia subsidiary and ROW distributor network
  for 30 countries in place
• Refludan funds EU/ROW structure for Thalomid
  launch

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Innohep

• Licensed US rights from LEO Pharma in July 2002
• Up-front payment and royalties
• Low molecular weight heparin indicated for
  treatment of deep vein thrombosis (DVT)
• US LMWH market is approximately 1.2 billion and
  growing
• 2001 EU Innohep sales were 100 million
• Pharmion re-launched Innohep in US October 2002

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Innohep Product Positioning

• Position as the treatment of choice for the
  hematology/oncology DVT patient
• DVT second leading cause of death in cancer
  patients
• Only LMWH with simple once a day dosing
• Efficacy is supported by the only published
  double-blind DVT treatment trial compared to
  heparin
• Unrestricted dosing in complicated patients
• Weight-compromised
• Renal Impairment
• Elderly

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U.S. Commercial Organization

• 31 field-based professionals
• Average oncology sales experience 13 years
• Medical marketing team
• Phase IIIb/IV clinical development team
• Building relationships for azacitidine launch
• Field sales organization of 60 professionals
  planned for azacitidine launch
• Capacity available for additional products

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Finances

• 130 million raised to date
• December 31, 2002 cash balance - 62 million
• Current investors
• NEA
• Nomura
• Bay City Capital
• Proquest
• Aberdare Ventures
• Domain Associates
• Versant Ventures
• GE Pension Trust

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2002 Accomplishments

• Thalidomide European MAA submission
• Refludan acquisition
• Innohep acquisition
• Established US commercial organization
• 30 field force launching Innohep
• Established European commercial organization
• Launching Refludan in 15 countries
• Completed 40 million financing

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2003 Objectives

• Thalidomide European approval and launch
• Implement S.T.E.P.S. safety program
• Additional ROW Thalidomide approvals
• Azacitidine NDA and MAA submissions
• 20-30 mm combined sales of Innohep and Refludan
• Acquire at least one additional product

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Summary

• Global hematology/oncology company
• Commercial, development and regulatory
  capabilities
• Four products licensed over past 18 months
• Innovative products responsive to scientific
  marketing
• Creative product licensing and acquisition
  structures
• Highly experienced management team

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Management Team
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Global Sales and Commercialization
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Product Portfolio

• Building a product portfolio with a balancedrisk
  profile
• Innovative products with high therapeutic impact
• Thalomid
• Azacitidine
• Refludan
• Innohep
• Attractive economic terms
• Common target audience

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Thalomid in Other Indications

• Metastatic renal cell carcinoma
• 2 Phase II studies
• 1st 16/25 - stable disease (SD) 14 alive at 1
  yr
• 2nd 14/22 patients responded 2 PR 12 SD
• Metastatic colorectal cancer in combination with
  irinotecan
• Pilot trial 4/10 patients responded 2 CR, 2 PR
  with ? incidence of irinotecan-induced GI
  toxicity in all patients
• Glioblastoma
• Phase II trial 18/38 patients responded 2 PR,
  16 SD
• Androgen independent prostate cancer
• Phase II trial 27 of 63 patients had 40 ? in
  PSA levels