Oncology Innovation Powered by Investments and Competition from - PowerPoint PPT Presentation

Oncology Innovation Powered by Investments and Competition from China Moderator: James T. Lee , PhD, Associate Principal, Cello Health BioConsulting, previously Defined Health Panelists: • Iris Luo , MS, MBA, Head of Business Development, North America, Cstone Pharmaceuticals • Ian Somaiya , CFO, TCR 2 Therapeutics • Jack Wu , PhD, Head of Business Development (USA), Adlai Nortye • Ian Woo , MBA, President & CFO, Everest Medicines Cancer Progress New York, NY | May 7 - 8, 2019

China BioPharma is Seeing an Unprecedented Boom Driven by Three Pillars: Policy, Money, and Need • Regulatory: – China joins ICH harmonizing global clinical development regulations/standards – Chinese NMPA speeds up clinical development process and opening up for global development – Accelerated approval set up for innovative therapeutics that are marketed overseas • Finance: – China putting economic force behind the industry by building biotech parks, providing subsidies and incentives for biotechs to develop innovative products – Chinese investors have raised significant capital to help the biotech boom both domestically and cross-borders, though new CFIUS process may become limiting – HKEX open to pre-revenue biotechs, with recent success of Cstone, Innovent and others, but also cautionary tales of others (Ascletis, Beigene) • Need for Therapeutics: – Growing patient population, especially related to cancer, where innovative therapeutics are needed. UBS 2018; ChinaBio 2018 Cancer Progress New York, NY | May 7 - 8, 2019

Since Last Year, Oncology is 50% of Deals, Driven by Interest in Innovative Therapeutics Total No. of Deals Distributed by Onco vs. Non-onco Deals (n=260) Upfront Total 6.09 Bn Year Top Oncology China Deal 90 7 Bn (USD) (USD) 2014 Altor and Shenzhen Beike $4M $200M 80 6 Bn 2015 Eli Lilly and Innovent $56M $456M 5.12 Bn 70 2016 Aveo and Canbridge $1M $134M 5 Bn 2017 Valeant/Dendreon and Sanpower $820M $820M 4.20 Bn Total Deal Value ($Bn) 60 Total No. of Deals Non-onco 2018 Zymeworks and Beigene (2 deals) $60M >$1B 4 Bn 2019 Abpro and Chiatai Tianqing Pharma N//A $4B 50 Onco 40 2.38 Bn Total Upfront Value 3 Bn 30 Total Deal Value (TDV) 2 Bn 1.49 Bn 1.39 Bn 1.26 Bn 1.01 Bn 20 1.21 Bn 0.64 Bn 1 Bn 0.15 Bn 10 Q1 0.03 Bn 1 0 0 Bn 2014 2015 2016 2017 2018 2019 BCIQ; *Note = Non-onco count also includes those deals where a therapeutic area wasn’t included/specified; Total Upfront = includes upfront cash and equity. Cancer Progress New York, NY | May 7 - 8, 2019