Cosmo Pharmaceuticals
Jefferies
Global Health Care ConferenceLondon, 20 November 2019
Cosmo Pharmaceuticals
SAFE HARBOUR
This presentation may include forward-looking statements that are based on our management’s beliefs andassumptions and on information currently available to our management.
The inclusion of forward-looking statements should not be regarded as a representation by Cosmo that any ofits plans will be achieved. Actual results may differ materially from those set forth in this presentation due to therisks and uncertainties inherent in Cosmo’s ability to develop and expand its business, successfully completedevelopment of its current product candidates and current and future collaborations for the development andcommercialization of its product candidates and reduce costs (including staff costs), the market for drugs to treatIBD diseases, Cosmo’s anticipated future revenues, capital expenditures and financial resources and othersimilar statements, may be “forward-looking” and as such involve risks and uncertainties and risks related to thecollaboration between Partners and Cosmo, including the potential for delays in the development programs forits products. No assurance can be given that the results anticipated in such forward looking statements willoccur. Actual events or results may differ materially from Cosmo’s expectations due to factors which include, butare not limited to, increased competition, Cosmo’s ability to finance expansion plans, the results of Cosmo’sresearch and development activities, the success of Cosmo’s products, regulatory, legislative and judicialdevelopments or changes in market and/or overall economic conditions. Cosmo assumes no responsibility toupdate forward-looking statements or to adapt them to future events or developments.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of thedate hereof, and Cosmo undertakes no obligation to revise or update this presentation.
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Cosmo Pharmaceuticals
COSMO PHARMACEUTICALS NV IN A NUTSHELL
Market Cap
CHF 1.092 billion
Net Cash CHF 301 million
Value 45% Stake
in Cassiopea
CHF 187 million
Employees
245 Value 19.5% stake in
RedHill CHF 44 million
Value repurchased treasury
shares CHF 49 million
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1H 2019
Revenues
€21.5million
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Cosmo Pharmaceuticals
COSMO IN A NUTSHELL
Providing solutions for colon diseases
3 marketed
therapeuticsLialda/Mezavant
Uceris/Cortiment
Aemcolo/RelaFalk
2 marketed
medtech products Eleview
GI Genius (EU)
Rich development
pipeline
Stakes in
other pharma
companies:45% Cassiopea
19.5% RedHill
8.2% Paion
2.6% Volition
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Cosmo Pharmaceuticals
COSMO PHARMACEUTICALS: THE GI SPECIALTY COMPANY
Cosmo is an organization focused on improving treatment of colon diseases. Cosmo leverages its knowledge and
relationships with the medical community to create shareholder value while reducing overall risks.
Gi Genius
Lialda | Mezavant | Mesavantcol
CB-03-10
Uceris | Cortiment
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Cosmo Pharmaceuticals
COSMO: 2019 AS A TRANSFORM ATI ON AL YEAR
Following delay in MB MMX approval Cosmo has:
• Completely restructured its US business, generating savings of €17.5m
• Completed the acquisition of 100% of Linkverse, therefore owning 100% of the AI business
• Closed the worldwide AI distribution deal with Medtronic
• Closed the US, China and South America Eleview distribution deal with Medtronic
• Closed the Collaboration Agreement with Medtronic to strengthen cooperation in AI
• Licensed Aemcolo for the USA to RedHill Biopharma and acquired a 19.56% stake in the company
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Cosmo Pharmaceuticals
COSMO: 2019 AS A TRANSFORM ATI ON AL YEAR
From the product pipeline standpoint Cosmo has:
• Filed the MB MMX Marketing AuthorizationApplication with the EMEA
• Filed the ByFavo (Remimazolam) NDA with the FDA (PDUFA April 5, 2020)
• Filed the CB-03-10 IND with the FDA
• Filed the protocol for the second phase III study for MB MMX with the FDA
• Further advanced the Aemcolo Phase II Study in IBS-D
• Promoted the start of three Investigator InitiatedPhase II Studies for Aemcolo in the US for Uncomplicated Diverticulitis, Minimal HepaticEncephalopathy and Small Bacterial Overgrowth(SIBO)
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Cosmo Pharmaceuticals
COSMO: 2019 AS A TRANSFORM ATI ON AL YEAR
Further, Cassiopea (45% owned by Cosmo) has:
• Announced positive results from Phase III Acne Open-Label Safety Study Evaluating Winlevi®
• Announced Very Positive Phase II Twelve Months Results for Breezula®
• Filed Winlevi’s NDA with the FDA (PDUFA August 27, 2020)
• Started the Breezula Phase II POC in women
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Cosmo Pharmaceuticals
COSMO: STRATEGY GOING FORWARD
Following delay in approval of MB MMX in the US Cosmo has decided to shift strategy and thus to:
A) Enter into partnerships with
selective players in exchange of
equity stake and/or
milestones/royalties or combination
of both (Medtronic, RedHill)
B) Develop new products
opportunities with partners
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Cosmo Pharmaceuticals
As for Cassiopea, in line with the original plan and reason for spin-off, Cosmo intends to provide the necessary
financing (either equity or debt) until the approval of Winlevi
Cosmo has no long-term strategic objectives for Cassiopea, which is considered as a financial investment
that will be monetized in due course
Cosmo, upon this shift of strategy, will thoroughly reassess its need for cash in the medium term and consider options
for the eventual excess cash
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COSMO: STRATEGY GOING FORWARD
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Cosmo Pharmaceuticals Jefferies Global Health Care Conference
PRODUCT INDICATION PH I PH II PH III
Aemcolo IBS-D
Acute Uncomplicated
Diverticulitis*
Small Intestine BacteriaI
Overgrowth (SIBO)*
Minimal Hepatic
Encephalopathy*
Byfavo Procedural Sedation
MethyleneBlueLesion detection during
colonoscopy
CB-03-10Oral AR antagonist against
solid tumors
GI-GeniusLesion detection during
colonoscopy (US registration)
* Investigator Initiated Studies
COSMO DEVELOPMENT PIPEL INE
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Cosmo Pharmaceuticals
THERAPEUTIC PRODUCTS
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Cosmo Pharmaceuticals
• Non-systemic, minimally absorbed
• MMX® delivery to the colon
• Proven efficacy against E. coli
• Reliable safety and tolerability
• Simple BID dosing
• No increase in ESBL-E colonization rates/lower
risk of acquisition
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AEMCOLO OFFERS A CURE TO
TRAVELERS’ DIARRHEA
ELIMINATING THE
SHORTCOMINGS OF OTHER
TREATMENTS
1. DuPont, HL, et al. Targeting of Rifamycin SV to the Colon for Treatment of Travelers’ Diarrhea: A Randomized, Double-Blind, Placebo-Controlled Phase 3 Study, Journal of Travel Medicine, Vol. 21:369–376, 2014. 2. Steffen, R, et al, Rifamycin SV-MMX® for treatment of Travelers’ diarrhea: equally effective as ciprofloxacin and not associated with the acquisition of multi-drug resistant bacteria, Journal of Travel Medicine, 2018,
published online ahead of print, Accessed Dec 9, 2018
AEMCOLO : PERFECTLY TAILORED FOR TRAVELERS ’ D IARRHE A 1 , 2
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Cosmo Pharmaceuticals
“In conclusion, no single drug is perfect against Traveler's diarrhea. We rate the advantages of non-absorbed antibiotics — reduced risk of adverse events, improvement in disease in most patients with illness, reduced risk of acquisition of multiple drug resistant organisms (so far demonstrated only for Rifamycin SV-MMX®) and lastly protection of systemic antibiotics against resistance — greater as compared to the disadvantages such as personal harm and public health impact that a small minority of Traveler's diarrhea patients with invasive illness would not be initially treated by a systemic antibiotic as first line drug from a travel kit for self-treatment.” – International Society of Travel Medicine (ISTM)
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AEMCOLO FOR TRAVELER S ’ DIARRHE A : NOW RECOMMENDEDBY THE INTERNAT IO N AL SOCIETY OF TRAVEL MEDICINE ( ISTM)
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Cosmo Pharmaceuticals Jefferies Global Health Care Conference
AEMCOLO FOR TRAVELER S ’ DIARRHE A : SUPPORTED BY THE FDA
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Cosmo Pharmaceuticals
70M
Americans Travelling Abroad
46M
Visit Developing
Countries
Priority
targets
TRAVELERS ’ DIARRHE A IS A HUGE MARKET
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Cosmo Pharmaceuticals
TRAVELERS ’ DIARRHE A IS A HUGE MARKET
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High travel spending per person in the US facilitates big commercial opportunity
https://www.aarp.org/content/dam/aarp/research/surveys_statistics/life-leisure/2017/2018-travel-trends.doi.10.26419-2Fres.00179.001.pdf
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Cosmo Pharmaceuticals
• New formulation in ongoing multicenter Phase II clinical
trial in Europe for IBS-D
• Data expected: Q2 2020
• Further clinical development with Investigator Initiated
Studies:
• Minimal Hepatic Encephalopathy
• IND and study protocol accepted by FDA
• Study began in August
• Acute Uncomplicated Diverticulitis
• Protocol being finalized
• Small Intestine Bacterial Overgrowth (SIBO)
• Protocol under development
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AEMCOLO – STRONG FUTURE THROUGH ADDIT ION AL INDICATI O NS
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Cosmo Pharmaceuticals
AEMCOLO – OVERALL MARKET OPPORTUNITY
• Aemcolo:
• US FDA Approval for Travelers’ Diarrhea Nov. 2018
• Aemcolo US Market Opportunity at least $1 billion
• Estimated market share: 20-25%
• Estimated peak sales: US$200 - 250 million
• Estimated time to peak sales: 7 - 8 years
• Marketed by Dr.Falk in Australia and Europe, launch
in Germany December, 1st
• Marketed by RedHill in US
• Leading Competition:
• US Sales of Xifaxan: US$1.3 billion
• Physicians perceive advantages vs Xifaxan
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Cosmo Pharmaceuticals
THE REDHILL DEAL
• RedHill is a $250m mkt cap Israeli company with US operations (NASDAQ: RDHL)
• Run by a highly experienced GI management team
• Rich and interesting pipeline of proprietaryproducts
• Talicia for H pylori infection has just been approvedby the FDA
• RedHill is also developing RHB-104 againstCrohn’s disease (first phase III successfullycompleted)
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Cosmo Pharmaceuticals
THE REDHILL DEAL
Talicia just approved, has the potential to become a first-line therapy for H pylori
infection, which affects over 50% of the population worldwide and approximately
35%, or over 100 million people, in the U.S., with an estimated 2.5 million patients
treated annually in the US. H. pylori is classified as a Group I carcinogen by the
International Agency for Research on Cancer. It is the strongest risk factor for the
development of gastric cancer and a major risk factor for peptic ulcer disease and
gastric mucosa-associated lymphoid tissue (MALT) lymphoma.
Current standard-of-care therapies fail in approximately 25-40% of patients due to
growing resistance of H. pylori to clarithromycin and metronidazole, antibiotics
commonly used in standard combination therapies. Clarithromycin-resistant H. pylori
was formally categorized by the World Health Organization (WHO) as a pathogen
for which there is a high priority need to develop new treatment
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Cosmo Pharmaceuticals
THE REDHILL DEAL
• Outlicense of Aemcolo for the US
• Aemcolo will be promoted by a sales force of 40 reps as of now
and 140 reps as of February 2020
• Down-payment of $12m in RDHL ADS (listed on NASDAQ)
• Royalties in the high twenties including supply of product
• Regulatory and commercial milestones totalling additional $ 100m
• Take over by RedHill of all marketing activities, including digital
marketing
• Shift of development responsibilities and related costs
• Additional cash investment by Cosmo of $36.3m in RDHL ADS
• Total investment (cash + down-payment) $48.3m, equal to 19.5%
of the share capital of RDHL
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Cosmo Pharmaceuticals
Procedural sedation
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Cosmo Pharmaceuticals
• Annual US colonoscopies, upper GI endoscopies
and bronchoscopies: 24.5 million
• 90% of US colonoscopies, upper GI endoscopies
and bronchoscopies used moderate sedation
• Estimated market opportunity in procedural sedation:
US$600 million
• Estimated peak sales in procedural sedation:
US$150 - 200 million
• Estimated time to peak sales: 5 - 7 years
US procedural sedation market only
US NDA FILED APRIL 2019
APPROVAL EXPECTED
APRIL 5 2020
BYFAVO ( REMIMAZOLAM ) MARKET OPPORTUNITY
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Cosmo Pharmaceuticals
Lesion detection during colonoscopy
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Cosmo Pharmaceuticals
METHYLENE BLUE MMX – US MARKET OPPORTUNITY
• 16 million US colonoscopies annually, 74%
colorectal cancer related
• 12 million U.S. colorectal cancer related
colonoscopies
• 31% colonoscopies in IBD patients/high risk patients
• Estimated Market Opportunity: US$3 billion
• Estimated peak sales: US$600 - $700 million
• Estimated time line to peak sales: 7 - 8 years
• Outstanding results from first phase III trial
• Next steps: Ongoing discussions with FDA re
additional Phase III trial protocol
• Confirmatory Phase III trial: Expected to begin Q2
2020
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Cosmo Pharmaceuticals
CB-03-10Oral AR antagonist against solid tumors
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Cosmo Pharmaceuticals
CB-03-10 is a highly potent AR and GR antagonist with impressive anti-tumor activity
Potential for first and second line therapy in pancreatic, colon and other cancers
Regulatory toxicology shows oral dosing is safe and well-tolerated
IND authorized by the FDA
Phase 1 clinical trial scheduled to begin Q2 2020
CB-03-10
Interest from potential licensing partners
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Cosmo Pharmaceuticals
MEDTECH PRODUCT
Cosmo Pharmaceuticals
Submucosal injectable solution
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Cosmo Pharmaceuticals
ELEVIEW – MARKET OPPORTUNITY
• 16 million US colonoscopies annually
• 2.4 average polyp/patient as found in MB MMX trial: total 38.4 million lesions
• 8% of polyps required injection: total injection approx. 3 million
• Average 1.5 vial per removal: total 4.5 million vials
• Current price: US$81 per vial
• Market Opportunity approx.: US$350 million
• Estimated peak sales: US$65 - 75 million (20% of market)
• Time to peak sales: 7 - 8 years
• US, China, South America distributor: Medtronic
• Japan distributor: EA Pharma
• 2018: US $11 million gross sales
• US sales by Medtronic started in mid September
• Medtronic will pay Cosmo 50% of sales executed in first year to already existing customers
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OUR REVENUES ARE PROFIT – NET MARGIN 20%
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Cosmo Pharmaceuticals
GI GENIUSAI-enhanced endoscopy aid software
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Cosmo Pharmaceuticals
GI GENIUS
• Global Distributor: Medtronic
• GI Genius devices currently being deployed with EU
KOLs to prepare commercial launch
• EU sales: Starting in H2 2019
• To date 180 devices delivered to Medtronic for EU
deployment
• US registration trial expected to begin in Q4 2019
• US sales: Expected in H2 2020 following FDA approval
THE AI PARTNERSHIP WITH MEDTRONIC – OUR REVENUES ARE PROFITS
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Cosmo Pharmaceuticals
GI GENIUS PRODUCT OUTLOOK
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Cosmo Pharmaceuticals
GI GENIUS IN PLAY
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Cosmo Pharmaceuticals
GI GENIUS MARKET OPPORTUNITY
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Medtronic established business model: User
fees
Estimated initial yearly fee per endoscopy
tower US/EU: US$/€36,000
Estimated net margin
for Cosmo expected
above 20%
Estimated n. of endoscopy towers in
US: 20,000
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Cosmo Pharmaceuticals
THANK YOU
Cosmo Pharmaceuticals NV
Riverside II
Sir John Rogerson’s Quay
Dublin 2, Ireland
Mr. Alessandro Della Cha , CEO
Mr. Niall Donnelly, CFO
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