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A Pioneer in Neuromodulation with Kinetic Oscillations Novel Treatment for Peripheral T Cell Lymphoma (PTCL) Opportunity to License in USA and Europe Prepared by The Sage Group June 2016 1 Executive Summary and Corporate Overview Executive Summary • Solasia Pharma K. K. (“Solasia” or the “Company”; www.solasia.co.jp) is a privately owned company based in Japan. It is headquartered in Tokyo, with a subsidiary in Shanghai and offices in Beijing. Solasia has a strong and experienced management team from Amgen, Searle, Roche, Takeda and Sosei. The Company has received over US$80M in funding. • Solasia is a specialty pharmaceutical company established to develop and commercialize innovative oncology therapies and supportive care products in Japan and Asian countries. • Solasia targets the world’s largest oncology market in China and Japan, and has in-licensed three western oncology compounds acquired for their focus on Asian markets. These include Darinaparsin (SP-02) from Ziopharm Oncology, for which Solasia received worldwide rights. • Darinaparsin has already been licensed for Japan and Asia to Meiji Seika. The Company is working with Sage Group to license Darinaparsin in USA and EU. • Darinaparsin is an water soluble organic arsenic derivative which has been shown to be safe and efficacious in treatment of Peripheral T Cell Lymphoma, where there is a market due to unmet clinical need. The Company has Orphan Drug designation in USA and EU. • Solasia owns global rights to Darinaparsin, and because it is focused on Asian markets, it would like to identify and negotiate one or more relationships in USA and Europe to market the product also in those territories. 3 Solasia Corporate Profile Established 2007 Headquarter : Tokyo, Japan Subsidiary : Solasia Medical Information Consulting (Shanghai) Co. Ltd. China Offices : Shanghai & Beijing Number of Employees 17 Office Management President, Representative Director Chief Financial Officer SVP, Product Development Head VP, Business Development Head VP, Business Development General Manager in China Board of Directors Yasuhiro Abe (Itochu), Bard Geesaman (MPM), Norikazu Eiki (formerly Bayer), Masahiro Michisuji (formerly Novartis), Stanley Lau (formerly Baxter), Yoshihiro Arai, Toshio Miyashita Shareholders Investment, MPM Capital, Itochu, Meiji Seika Pharma, Lee‘s Pharma, Mitsubishi UFJ Capital, Shinsei Mitsui Sumitomo Marine Capital, SMBC Capital, Nihon Venture Capital, Golden Asia Fund, Kyowa Hakko Kirin, Sansei Capital, Mitsubishi Trust Bank Raised capital Approx. USD 80 million 4 Yoshihiro Arai (formerly Amgen, Searle) Toshio Miyashita (formerly Sosei, Arakis, Hibiki Partners) Shigeru Sakamaki (formerly Amgen, Takeda Bio) Koji Shinozaki (formerly Itochu, MPM Capital) Takashi Ono (Concurrently with Itochu, formerly Sosei) Vivian Zhang (formerly Roche China) 4 Darinaparsin Clinical and Marketing Plan Preclinical SP-02 darinaparsin Peripheral T-Cell Lymphoma Originator : ZIOPHARM Oncology Solasia’s Territory : W-W Clinical Study Phase 1 Phase 2 NDA Approval Launch Partner Phase 3 Japan commercial right: Meiji Seika Pharma Japan, Korea, Taiwan, Hong Kong(Solasia) * US(Solasia) *: Pivotal study for NDA 5 Background to Darinaparsin (SP-02) Background to SP-02 Darinaparsin - Organic Arsenic Apoptosis Inducer Effective & well tolerated organic arsenic apoptosis inducer mediated by damage to mitochondria Initial indication: peripheral T-cell lymphoma (PTCL) Solasia territory: Worldwide Complete & partial responses seen in PTCL patients in US Phase 2 trial Phase 1 studies completion in Japan and Korea Complete & partial responses seen in PTCL patients in Phase 1 trials Good safety profile compared to competitors (FOLOTYNmucositis, ISTODAX: less hematologic toxicity) Partnering sales & marketing in Japan with Meiji Seika Pan-Asian (Japan, Korea, Taiwan and Hong Kong) pivotal study initiated in 1Q 2016 7 Darinaparsin (Product Code: SP-02L) • Organic arsenic is characterized by its antitumor activity. – Has similar structure to one of the intermediates of the arsenic detoxification pathway, and is expected to has lower toxicity than inorganic arsenic – Chemical Name and Structure • C12H22AsN3O6S • Molecular Weight : 411.31 – Formulation: a sterile lyophilized powder for injection • Mechanism of Action – Disruption of mitochondrial functions – Increase in reactive oxygen species (ROS) production • induction of apoptosis • Arrest of cell cycle at G2/M phase • Potent antiangiogenesis activity 8 Mechanism of Action Unique Compared to Inorganic Arsenic DARINAPARSIN (ORGANIC ARSENIC) INORGANIC ARSENIC • Cytotoxicity via two pathways: i) increase in reactive oxygen species (ROS); ii) direct disruption of mitochondrial function, stimulating release of cytochrome C, thereby activating caspase-9 & caspase-3 • Cytotoxicity not susceptible to known resistance mechanisms (PML/RAR-a, BCL-2) • Cell death via apoptosis & cell cycle arrest (G2/M) • Cytotoxicity via caspase-8 • Cytotoxicity minimized by both functional PML/RAR-a & BCL-2 • Cell death via apoptosis & cell cycle arrest (G1) Mitochondria INORGANIC ARSENIC Mitochondria DARINAPARSIN Cytochrome C Cytochrome C ROS BID NADPHoxidase BCL-2 Death Receptor Caspase-8 Caspase-3 CELL DEATH Caspase-9 Caspase-3 9 CELL DEATH Caspase-9 Overview of Non Clinical Studies Overview of PreClinical studies (in vitro pharmacology) Study Summary result Induce Apoptosis and Inhibit Cell Growth of Leukemia Cell Lines U266, KMS11, and MM.1s lines were 1- to 3-fold less sensitive to darinaparsin than to ATO Apoptosis Induction by Darinaparsin Compared to ATO Electron microscopy of NB4 cells incubated with darinaparsin revealed time-dependent mitochondrial atrophy, mitochondrial matrix condensation, and apoptosis. Induction of Cell Cycle Arrest in G2/M G2/M arrest was confirmed by assessing BrdU incorporation into HL60 cells after 24-hour treatment of darinaparsin Bcl-2 Down-regulation Appears not Required for Darinaparsin-induced Apoptosis Bcl-2 protein down-regulation does not appear to be an obligate feature of darinaparsin’s apoptotic mechanism of cytotoxicity Increase in Intracellular Production of Reactive Oxygen Species (ROS) Studies in the HL60 leukemic cell line show that darinaparsin treatment results in a prominent early burst in H2O2 production followed by a sustained increase in superoxide production NCI human cancer cell line panel screens Active against cell lines derived from leukemia, non–small-cell lung (NSCL), colon, brain, melanoma, ovarian, kidney, prostate, and breast cancers over a wide range of concentrations Antiangiogenic Activity Incubation of HUVEC on extracellular matrix stimulates the attachment, growth, and differentiation of endothelial cells, resulting in the assembly of tube-like structures. 11 Overview of PreClinical studies (in vivo pharmacology) Study Summary result Multiple Myeloma Xenografts in Mice In a xenograft of multiple myeloma LAGl-1 cells isolated from a bortezomib-resistant subject, darinaparsin inhibited not only tumor growth but also the synthesis of human IgG antibodies by these cancer cells Activity against Murine Renal Tumors in Mice Darinaparsin inhibits the growth of in vivo-passaged, subcutaneously (SC) implanted RENCA murine renal tumors in CD2F1 mice Activity against Solid Tumors (Hollow Fiber Assay) A standard panel of 12 tumor cell lines was used to assess darinaparsin activity in a hollow fiber assay. Darinaparsin exhibited modest subcutaneous and IP activity Increase in Survival with Darinaparsin Administered (IP or Oral) in Mice Implanted with P388 Leukemia Intravenous administration of 200 mg/kg darinaparsin for 9 consecutive days inhibited growth of established RENCA tumors 12 Overview of Darinaparsin Clinical Studies Overview of Clinical Trials IV Study No. Target Primary Objective # Subjects Status SGL1001 1 R/R Hematologic Malignancies (AML: 10, CLL: 1) Tolerability 11 Completed SGL1002 1 Advanced Solid Tumors (Colorectal: 15 and others) Tolerability 40 Completed SGL2001 1/2 R/R Multiple Myeloma Ph-1: Tolerability Ph-2: Efficacy (ORR) Ph-1: 17 Ph-2: 14 Completed SGL2001b 2 R/R Multiple Myeloma Efficacy (ORR) 14 Completed SGL2003 2 R/R Hematologic Malignancies (Lymphoma: 29 and others) Efficacy (ORR) 50 Completed SGL2005 2 Advanced Hepatocellular Carcinoma Efficacy (ORR, PFS) 15 Completed SP-02L01 1 R/R PTCL Tolerability 17 Completed SP-02L02 2 R/R PTCL Efficacy (ORR) 65 Ongoing SP-02L03 1 R/R PTCL Tolerability 6 Completed Study No. Oral Phase Phase Target Primary Objective SGC1001 1 Advanced Solid Tumors and Lymphomas Tolerability (2 days weekly) 22 Completed SGC1002 1 Advanced Solid Tumors and Lymphomas Tolerability (3 days weekly) 20 Completed SGC1004 1 Advanced Solid Tumors Tolerability (21 days monthly) 10 Completed 14 # Subjects Status Solasia’s Approach to Treatment of PTCL with Darinaparsin Darinaparsin Positioning in PTCL Treatment Algorithm Potential as the drug approved in ASIA for relapsed/refractory PTCL Combination Chemotherapy (e.g., CHOP) Responder FRONTLINE Refractory Relapsed DARINAPARSIN 16 SALVAGE Solasia Phase 1 Study with Darinaparsin – Japan & Korea Darinaparsin Phase 1 Study : Study Outline • Target Indications: Relapsed or Refractory PTCL – PTCL, not otherwise specified (PTCL-NOS) – Angioimmunoblastic T-cell Lymphoma (AITL) – Anaplastic Large Cell Lymphoma (ALCL) ALK-positive/negative • Study Objectives – To evaluate the safety, tolerability, efficacy and pharmacokinetics (PK) profile of SP-02L monotherapy, respectively in Japanese and Korean patients, with relapsed or refractory peripheral T-cell lymphoma (PTCL) • Endpoints – Primary: • Incidence of dose-limiting toxicity (DLT) and adverse events • Change in QTcF (ΔQTcF) from time-matched baseline – Secondary: • Tumor response (by revised Cheson’s Criteria) in subjects who completed at least 2 cycles of treatment • Plasma concentration-time profile and PK parameters 18 Darinaparsin Phase 1 Study : Study Design / Dosage • Study Design: Multi-center, open-label, non-randomized study Enrollment Screening Informed Consent Up to 4 Cycles • Intravenous infusion over 1 hour • Assessment of DLT in Cycle 1 • Evaluation of Tumor Response at the end of Cycle 2 and 4 Responders were allowed to continue treatment beyond Cycle 4 Follow Up < Planned Dose Cohort / Dosing Schedule > Japan Korea Dose Cohort Dosing Schedule 1 - 200 mg/m2 4-week cycle 5-consecutive day administration followed by 23-day rest 2 1 300 mg/m2 4-week cycle 5-consecutive day administration followed by 23-day rest 3 2 300 mg/m2 3-week cycle 5-consecutive day administration followed by 16-day rest 19 Japan/Korea Ph1 Studies: Summary • Darinaparsin is a novel “organic arsenic derivative” that has antitumor activity. • Darinaparsin was well tolerated at all doses and dosing schedules. Liver function disorder (Grade 3) in 1 Japanese subject in the cohort of 300 mg/m2 3-week cycle was determined as DLT. • Darinaparsin demonstrated its potential antitumor efficacy (1CR, 3PRs out of 14 evaluable subjects). • The results of two phase 1 studies suggested that 300 mg/m2/day for 5-consecutive days every 3 weeks would be the most suitable dosing schedule in an Asian phase 2 study of darinaparsin in patients with relapsed or refractory PTCL. 20 Solasia Phase 2 Study with Darinaparsin Darinaparsin Asian Phase 2 Study: Study Outline • Target Indications: Relapsed or Refractory PTCL – PTCL, not otherwise specified (PTCL-NOS) – Angioimmunoblastic T-cell Lymphoma (AITL) – Anaplastic Large Cell Lymphoma (ALCL) ALK-positive/negative • Study Objectives – Primary:To evaluate the efficacy of SP-02L monotherapy in patients with relapsed or refractory PTCL – Secondary: • To assess the safety of SP-02L monotherapy in patients with relapsed or refractory PTCL • To evaluate the pharmacokinetic (PK) profile of SP-02L at multiple doses in selected sites in each country • Endpoints – Primary:Tumor response (best overall response) based on the International Working Group Response Criteria for Malignant Lymphoma revised in 2007 (Cheson 2007) – Secondary:Progression-free survival (PFS), overall survival (OS), time to response (TTR), duration of response (DOR), occurrence of adverse events (AEs), SP-02L plasma concentration-time profile, PK parameters, and urinary excretion rates 22 US Phase 2 Study (SGL2003) Results - Efficacy 50 patients were enrolled (incl. 29 patients with Lymphomas, 21 others): 22 NHL, 7 Hodgkin’s Lymphoma (incl. 21 patients with AML and others) 22 NHL patients (8 DLBCL, 7 PTCL, FL 4, MCL 2, Others 1) Efficacy (Physician Assessments): 2/7 responders (1 CR, 1 CRu) in 7 PTCL patients (RR=28.5%) 2/8 responders (2 PRs) in 8 DLBCL patients (RR=25%) Peter J. Hosein, Izidore S. Lossos et al. A multicenter phase II study of darinaparsin in relapsed or refractory Hodgkin’s and non-Hodgkin’s lymphoma; American Journal of Hematology 2011, 87; 111–114 23 Solasia Intellectual Property Overview of Darinaparsin Patent Estate Patent Family Expiration Date Description of Subject Matter UTEX 001 Jan-7-2023 Composition of Matter and Methods of Treatment S-Dimethylarsino-Thiosuccinic Acid, S-DimethylarsinoThiobenzoic Acid, S-(Dimethylarsino) Glutathione as Treatments for Cancer Worldwide Status Granted cases in AU, EP, JP, and US Pending cases in HK and JP UTEX 002 Jul-15-2025 Darinaparsin Crystalline Forms and Analogs, and Related Granted cases in JP, KR, and US Methods of Treatment Pending cases in JP Compounds and Methods for the Treatment of Cancer ZIPH 001 Jul-28-2026 Darinaparsin Crystalline Forms and Methods of Treatment Granted cases in AU, BE, CH, DE, EP, GI, FR, GB, Compounds and Methods for the Treatment of Cancer IE, IT, JP, NL, ES, SE, and US UTEX 004 Jan-16-2027 ZIPH 026 Aug-14-2029 Extended Middle Arsenicals and Methods of Synthesis Compounds and Methods for the Treatment of Cancer Methods of Treatment (Lymphoma) Granted cases in JP and RU Organoarsenic Compounds and Methods for the Treatment Pending cases in US, CN, EP, GC, HK, IN, JP, KR, of Cancer MX, and SG ZIPH 015 Dec-12-2028 Methods of Synthesis Compounds and Methods for the Treatment of Cancer ZIPH 002 Sep-28-2027 Methods of Treatment (Angiogenesis) Methods for Controlling Angiogenesis in Animals ZIPH 029 Dec-5-2034 Granted cases in AU, CA, CH, CN, DE, EP, FR, GB, IE, HK, JP, KR, NL, SG, and US Pending cases in AU, CN, HK, and IL Granted case in JP Pending cases in CN, HK, JP, and SG Granted case in US Darinaparsin Crystalline Forms and Methods of Treatment Pending cases in CN, JP, KR, US, and TW Compounds and Methods for the Treatment of Cancer 25 Solasia Publications on Darinaparsin American Society for Hematology 2015 27 27 T Cell Lymphoma Forum 2015 28 Solasia CMC Solasia CMC and COGS • Solasia has a well defined manufacturing process for Darinaparsin and a strong supply chain • Manufacturing and batch scale up in kg quantities has been performed successfully. • COGS is low enough to make the program economically feasible. 30 Orphan Drug Designation Solasia Has Orphan Drug Designation in US and EU 32 Solasia Press Solasia Announces Meiji Seika Alliance in Japan 34 Contact Details Solasia has appointed The Sage Group to manage its licensing program for Darinaparsin. Please direct all enquiries to: US Corporate Office EU Corporate Office Wayne Pambianchi The Sage Group Inc. 1802 Route 31 North #381 Clinton New Jersey 08809 USA Phone: +1 908 2319644 Cell: + 1 908 2306170 Fax: +1 908 2319692 [email protected] Dr. Bill Mason Sage Healthcare Ltd. The Old Black Barns Lord’s Lane, Ousden Newmarket, Suffolk CB8 8TX UK Phone: +44 1638 508779 Mob: +44 7785 950134 [email protected] Corporate Website http://www.sagehealthcare.com 35