MORVUS TECHNOLOGY€¦ · Previously with Unilever, Bristol Myers and Royal Numico, Mike has developed valuable, technology-based businesses including the areas of orphan drugs and

MORVUS TECHNOLOGY

1Q 2019

Specialising in improving existing drugs which are off patent either

by enhancing them or improving the delivery mechanism. With

well-established provenance, the regulatory pathway for the Morvus

enhancements are considerably de-risked.

Morvus Technology Limited | Investor Summary 2

• Morvus does not discover new drugs but takes existing

cancer drugs, improves upon their efficacy, files

patents and out-licenses

• Very strong management team who have Viagra,

carboplatin and plethora amongst their discoveries

• Risk further offset by late stage of lead technology

• First exit anticipated by mid 2020 via industry sale

MORVUS SUMMARY


• Funded & out-licensed with Royalty on net sales = 8%

• Completion of clinical trials (pancreatic) = Dec 2019

• Revs over life of patent to Morvus* = >£1bn

• Phase 2 improvement vs current drug** = 7.25 x

* Jefferies research report on Nucana May 29th 2018

** http://www.bbc.co.uk/news/uk-wales-32917141

LEAD DRUG ACELARIN (Pancreat ic , ovar ian and b i l iary cancer)


• NSC and small cell lung cancer market = $37bn

• Target revenues @ 20% market pa = $7.4bn

• Completion of formulation optimisation = Mid 2019

• Completion of pre-clinical tox study = Mid 2020

• Phase 1/2 study = late 2020

• Requires funding = £3m

RESEARCH DRUG ( INHALABLE) for Lung cancer

Professor Michael G Wyllie Non-Executive Chairman

Mike was a Director of Pfizer where he led the team which discovered Viagra and has recently launched Plethora Solutions.

THE TEAM

Jonathan Beatson-Hird Chief Executive

Founded Sarum Partners, a specialist Oncology consultancy and investment group in 2009 after spending 24 years Investment Banking in New York.

Dr Trevor Phillips Non-Executive Director & Consultant

Latterly CEO of Vectura, Trevor is an expert on inhalable drugs and respiratory diseases. He is spearheading the development of Morvus’s inhalable lung cancer drug.

Sir Roger Jones Non-Executive Director

Sir Roger is a specialist in the economics of pharmaceutical development. He was awarded an OBE in 1996 for services to the Pharmaceutical Industry and knighted in the 2005 New Years Honours.

Professor Richard Knox BSc, PhD Research and Development

Ex leader of the Molecular Pharmacology team at the Institute of Cancer Research (ICR), London where he was senior member of the team that developed carboplatin. Richard is a founder of Morvus

Mrs Judith Phillips ACIS Company Secretary & Financial Controller

Founder of Kymed which was acquired by Protherics Plc leading to the management buy-out and formation of Morvus. IP expertise.

Mr David Baynes Non-Executive Director

Chief Operating Officer of the IP Group following the acquisition of Fusion IP plc, where he was CEO. IP Group is a 6% shareholder in Morvus.

Dr Mike Hudson MorEx

Previously with Unilever, Bristol Myers and Royal Numico, Mike has developed valuable, technology-based businesses including the areas of orphan drugs and radiation oncology. Mike is running Morvus’s radiation enhancer programme.


Oliver de Giorgio-Miller Non-Executive Director & Consultant

Oliver worked for over 30 years with several global pharma companies and has extensive experience advising a number of other early stage bio-pharmaceutical companies.

• Delivery technology which is combined with existing approved drugs, then patented

• Overcomes key cancer resistance mechanisms that severely limit the action and effectiveness of many anti-cancer drugs

• Out-licensed a library of c.70 drugs via subsidiary, Cardiff Protides, to Nucana plc

• First sales anticipated 2020/2021

• Royalties paid on net sales (to 8%)

• Phase 2 for ovarian cancer due to complete 1H 2019 • Phase 3 for pancreatic cancer due to complete 4Q 2019 • Phase 3 for biliary cancer due to start 1H 2019

1. PROTIDES™ – FULLY OUT-LICENSED TO NUCANA BIOMED


THE CHEMISTRY OF ACELARIN

Preactivated nucleotide analog of Gemcitabine with a protective phosphoramidate moiety. The ProTide’s chemical structure (a combination of aryl, ester and amino acid groupings) enables the drug to enter the cancer cell

independent of membrane transporters and protects it from extra and intracellular degradation.

Deficiency in transporter = Resistance

Deamination by Cytidine

deaminase

Activation by deoxycytidine kinase

required

= Resistance Down regulation = Resistance

No active transport = No Resistance = No Resistance = No Resistance

NOT a substrate for Cytidine deaminase

No kinase required for activation

Deprotection by ubiquitous enzymes and spontaneous chemical

reactions


ESTIMATED REVENUES FROM NUCANA LICENCE

2020 £000s

2021 £000s

2022 £000s

2023 £000s

2034 £000s

2025 £000s

2026 £000s

Revenues:

Acelarin for metastatic pancreatic cancer 27,410 102,168 197,545 266,205 288,315 292,960 287,741

Acelarin for platinum-resistant 4L ovarian cancer 17,340 63,007 138,581 207,824 269,955 294,227 300,018

Acelarin for platinum-sensitive 2L ovarian cancer 12,422 58,355 116,554 160,949 185,631

Acelarin for 1L metastatic biliary cancer 21,115 65,133 116,305 157,789 171,573 174,596

TOTAL REVENUES 44,750 186,290 413,681 648,689 832,613 919,709 947,986

Cost of Goods Sold 6,265 26,081 57,915 90,816 116,566 128,759 132,718

Net Revenues 38,485 160,209 355,766 557,873 716,047 790,950 815,268

Milestone payable to Cardiff Protides 1,321 1,166

Royalty payable to Cardiff Protides 3,079 12,817 28,461 44,630 57,284 63,276 65,221

TOTAL PAYABLE TO CARDIFF PROTIDES 4,406 13,983 28,461 44,630 57,284 63,276 65,221

Accreditation: Jefferies research report NCNA 29th May 2018


• Inhalable drug for cancer in the lung

• Potent contact cytotoxic

Kills the tumour cells

Normal, non-dividing tissue unaffected

Deactivation of the drug in serum ensures no systemic toxicity

• Administered by nebuliser

• Additional cost of treatment should be similar to existing chemotherapy Cost effective

• Other potential applications for the compound Further usage for skin, rectal and vaginal cancer

2. MTL-004 WHOLLY MORVUS OWNED Morvus Technology Limited | Investor Summary 9

• Known small molecule Was considered too difficult to manufacture

• New synthesis patented

• Strong animal results

• Therapeutic applications patented

• Formulation underway at Strathclyde University

• Lack of systemic toxicity should allow use in conjunction with existing chemotherapy Enhanced anti-cancer effect

2. MTL-004 WHOLLY MORVUS OWNED Morvus Technology Limited | Investor Summary 1 0

2. MECHANISM OF ACTION OF MTL-004

NO2

N

C

O

H2N

N

H

OH

Inhalation delivers the DNA cross-linking agent MTL-004 directly to the lung tumour to be treated, causing major damage to the tumour cells, which will die after entering the dividing phase. The properties of the drug are such that it is rapidly deactivated in serum, eliminating systemic damage.

Platinum chemotherapy also delivers a DNA cross-linking agent (predominately N7-N7 between guanines but represent 2% or less of the total DNA reactions) but is given into a vein (intravenous) and circulates throughout the body – as well as killing cancer cells, chemotherapy will damage some healthy cells in the body, particularly cells in the bone marrow, digestive tract and hair follicles.

• Following the intracellular esterification and activation, the 4-hydroxylamine of MTL-004 reacts mostly with the C8 position of deoxyguanosine in DNA

• This leaves the aziridine function poised to react with an O6 position of a deoxyguanosine on the opposite strand of DNA to give a crosslink

• Such a C8-O6 DNA interstrand crosslink is not produced by other types of alkylating or platinating agents

High frequency (70%) Slow repair c.f. other crosslinks

Morvus Technology Limited | Investor Summary 1 1

• NCNA mkt cap 12 mo range = $370m - $1.1bn @ 8% = $30m - $88m

• Current NPV of Morvus (Protides only, Jefferies estimates) = £152m

• Future earnings of Acelarin only (Jefferies e) @ 22 years = $1.4bn (e)

• 20% all drugs used (c.$3.7bn mkt) x 22 years @ 8% royalty = $1.3bn (e)

• 50% replacement of gemcitabine £2bn pa 22 years @ 8% royalty = $1.2 bn (e)

• Inhalable lung cancer drug for free

UP TO £3M RAISE @ £49M PRE-MONEY VALUATION

Assumptions: Margin 86% , Patent life 22 yrs, Royalty 8%, Gemcitbine sales $2 bn pa, all drugs for pancreatic, ovarian and biliary cancer $3.7bn annually


USE OF FUNDS 2019 - 2020

£000s

Development of MTL-004 for lung cancer 1,500

Other programmes 200

Patent Costs 320

Operating Costs 700

Contingency 280

3,000


• 292m shares outstanding

• Investment to date:

• Direct £25.6m

• Indirect >£120m

• All outstanding debt is convertible

• Last fundraise in 2018 @ 17p valuing Morvus at £49m

CAP TABLE Morvus Technology Limited | Investor Summary 1 4

FULLY DILUTED SHARE CAPITAL

Holder Shares %age Nathan International Holdings 42,173,966 14.42% Sarum 38,396,562 13.13% McBraida Plc 30,450,755 10.41%

RAB Capital 23,457,003 8.02%

Management (incl options) 22,365,423 7.65%

IP Group 15,830,703 5.41%

Biotrade 4,666,667 1.60%

Rowan Dartington 4,775,745 1.63%

Options (ex debenture holders) 4,656,738 1.59%

Convertible 17,821,930 6.09%

OSTC 3,979,627 1.36%

Isambard 31,657 0.01%

Protherics 1,090,900 0.37%

Other 82,711,133 28.29% 287,306,635 100.00%


MORVUS HISTORY AND MILESTONES Morvus Technology Limited | Investor Summary 1 6

FUTURE MILESTONES

ACELARIN CLINICAL TRIALS

Indication Official Title Start Date

ExpectedEnd date

Link to Government website

Biliary tract cancer

A Phase Ib, Multi-centre, Open-label

Study of a First-in-class Nucleotide

Analogue Acelarin (NUC-1031) in

Combination With Cisplatin in Patients

With Locally Advanced/Metastatic

Biliary Tract Cancers

Jan-16 Mar-19 ABC-08: Phase Ib Trial of Acelarin in Combination With Cisplatin in Locally Advanced/ Metastatic Biliary Tract Cancers - Full Text View - ClinicalTrials.gov

Pancreatic cancer

A Phase III, Open Label, Multicentre

Randomised Clinical Study Comparing

Acelarin (NUC-1031) With Gemcitabine

in Patients With Metastatic Pancreatic

Carcinoma

Dec-15 Dec-19 Acelarin First Line Randomised Pancreatic Study - Full Text View - ClinicalTrials.gov

Ovarian Cancer

A Phase II Open-Label Study of NUC-

1031 in Patients With Platinum-

Resistant Ovarian Cancer

Sep-17 Jun-20 NUC-1031 in Patients With Platinum-Resistant Ovarian Cancer - Full Text View - ClinicalTrials.gov


https://clinicaltrials.gov/ct2/show/NCT02351765?term=Acelarin&rank=1
























https://clinicaltrials.gov/ct2/show/NCT03146663?term=nuc-1031&rank=2














Office

MORVUS TECHNOLOGY LIMITED

Aberllech

Pentre Bach

Brecon

Powys

LD3 8UB

Tel: 01874 638858

www.morvus.com

JONATHAN BEATSON-HIRD, CEO

Tel: 07787 520998

Email: [email protected]

CONTACT DETAILS Morvus Technology Limited | Investor Summary 1 8

JUDITH PHILLIPS, COMPANY SECRETARY

Tel: 07778 163179

Email: [email protected]

If you would like further information please contact us

mailto:[email protected]




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DISCLAIMER Morvus Technology Limited | Investor Summary 1 9

Documents

MORVUS TECHNOLOGY€¦ · Previously with Unilever, Bristol Myers and Royal Numico, Mike has developed valuable, technology-based businesses including the areas of orphan drugs and