Desentum Oy

Media-aamiainen

13.10.2011

Pekka Mattila

Goldsby RA et al. Immunology, 5th edition,

USA 2003, p. 363.

Slide prepared by prof. Juha Rouvinen

three components

• receptor (Fc RI)

• antibody (IgE)

• antigen (allergen)

The problem Type I hypersensitivity reaction

native mass spectrometry

Jänis J. et al, J. Mass Spectrom. 2008, 43: 1376

The Opportunity

• VTT and Univ. Of Eastern Finland have discovered unique IgE-binding structures in allergens

• Mutated allergens are hypothesized to be able to function as safe allergy vaccines

• A large unmet medical need

• A highly increased use of immunotherapy in the future seems likely

The Company

Mission and objectives The company vision is to extend the use of allergy immunotherapy world-wide, especially by introducing effective, new and patient friendly allergy vaccines that are well-documented and registered by the authorities.

Business model The business model is to develop, manufacture and sell new allergy vaccines based on mutated allergens in collaboration with partners.

The Company

Business strategy The strategy is to build on patents and the immunology competence within the company and its owners to develop new allergy vaccines. In collaboration with larger pharmaceutical partners the vaccines will be evaluated in clinical trials, manufactured and sold in different markets enabling the company to receive upfront payments, milestone payments and eventually if successful royalty on sales.

Prevalence of allergic diseases

USA

% of Allergic population

EUROPE

% of Allergic population

Allergic patients of total population 65 Million 87 Million

Grasses 56 % 52 %

House Dust Mite 45 % 49 %

Ragweed 49 % n.a.

Birch 23 % 14 %

Cat 39 % 30 %

Weed n.a. 27 %

Cedar, Japanese 10 % n.a.

Dog 19 % n.a.

Food 10 % 11 %

Venom 13 % 13 %

• Trends indicate that half of all Europeans will suffer from allergy by 2015 (Meltzer et al. 2009)

• Meda estimats 60 million people will suffer from asthma and 180 million from allergic rhinitis in just the seven largest markets

• Allergy treatment is almost exclusively concerned with the management of allergic symptoms using drugs such as anti-histamines and steroids

• Anti-allergy drugs is expected to exceed 14,7 billion USD in 2015 in US alone. (http://www.prweb.com/releases/allergy_drugs_allergens/allergic_rhinitis/prweb3610254.htm)

• World-wide sales for allergy vaccines was 642 MUSD in 2010, with an annual growth rate of 4%. (EvaluatePharma report)

Market size and competitors

Competitors The market for safe and efficient therapies of allergy is undeveloped

The desensitization players are small:

• Europe: ALK Abello, Stallergenes, Allergopharma and Allergy Therapeutics account for 2/3 of the

600 M€ market

• US: Bulk manufacturers of allergens Hollister Steer & Greer Laboratories

• Trend to sublingual and recombinant allergens in the desensitization

Product concept

• Allergy targets for the development of hypoallergen vaccine candidate(s) needs to be considered in the global commercial context.

• Desensitization treatment practices -oral vs sublingual - duration and acceptability of the desensitization program - longevity of the tolerance and its resistance to break down

Scientific background

Allergen

IgE

Fc R1

Mast cell

Degranulation Histamine release

Positive discovery results from mutations on the allergen - Mice model - Histamin release assay with birch pollen allergic patient cells

IPR and knowledge base • Four patent applications filed by VTT

• Several applications to be filed in the next three years by Desentum Oy

• Selection criteria for target hypoallergens:

I Importance

II The 3D structure is known

III Production in heterologous host is possible

• Several mutated allergens under development

• Birch, Timothy

• Milk

• House dust mite

• Celery, Apple

• Mugwort, ragweed, Japanese cedar

Collaborative Partners

•Allergy tests e.g. Phadia

•Adjuvant e.g. Isconova

•Final production in small scale e.g. GMP Medipolis or Biovian

•Preclinical & Clinical testing e.g. Quintiles

•Clinical trials, sales and distribution e.g. Orion

Revenue for Desentum Oy

• Early sales of recombinant allergens for diagnostic tests and standards

• Upfront & Milestone payments

• Royalty