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Christopher Kirk
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KZR Investor Presentation December 2020 Selective Targets. Broad Impact.
Uniquely powerful approaches to tackling the toughest diseases
Corporate Overview
www.kezarlifesciences.com
Forward-Looking Statements Disclaimer
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expect," "plan," "anticipate," "target," and similar expressions (as well as other words or expressions referencing future events or circumstances) are intended to identify forward-looking statements. Each of these forward-looking statements involves substantial risks and uncertainties that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements. Forward-looking statements contained in this presentation include, but are not limited to, statements regarding the disruption of our business and clinical trials from the global outbreak of a novel strain of coronavirus (COVID-19), the potential use of our product candidates to treat patients, the association of data with treatment outcomes, the design, timing of initiation, progress, enrollment and scope of clinical trials for our product candidates, the expected timing of program updates and data disclosures, the timing of filing INDs and other regulatory documents, the timing and likelihood of seeking regulatory approval for our product candidates, and the patient prevalence, regulatory pathway and competitive landscape for our product candidates.
These forward-looking statements reflect Kezar's current beliefs and expectations. Many factors may cause differences between current expectations and actual results, including unexpected safety or efficacy data observed during preclinical or clinical studies, clinical site activation rates or clinical trial enrollment rates that are lower than expected, changes in expected or existing competition, changes in the regulatory environment, and unexpected litigation or other disputes. Other factors that may cause our actual results to differ from current expectations are discussed in Kezar's most recent Form 10-K or Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC), under the caption "Risk Factors" and elsewhere in such reports. Except as required by law, we assume no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.
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The Kezar Opportunity: Harnessing Master Regulators of Cellular Function to Tackle Immune-mediated Diseases and Cancer
2 distinct scientific programs with potential across multiple indications of high unmet need
Rich Platform & Growing Pipeline
KZR-616: First-in-Class Immunoproteasome
Inhibitor
A novel approach to harmonizing the immune system; Potential to be a pipeline in a drug
First in class agent with broad antitumor activity; Potential to inhibit multiple targets with a single small molecule
KZR-261: First candidate from
Protein Secretion Platform
Strong Financial Position
(as of 9/30/2020)
$150M cash, cash equivalents, and marketable securities; 46.3M common shares outstanding
2
Our Programs Employ Uniquely Powerful Approaches to Address a Diverse Pipeline of Indications
KZR-616 and KZR-261 are first-in-class small molecules that harness master regulators of cellular function to inhibit multiple drivers of disease via single targets
COMPOUND
THERAPEUTIC INDICATION
Selective Immunoproteasome Inhibition
KZR-616
Lupus Nephritis (LN)
Dermatomyositis (DM) / Polymyositis (PM)
Protein Secretion Inhibition
KZR-261
Oncology
DISCOVERY
DEVELOPMENT STAGE
PRECLINICAL
PHASE 1
PHASE 2
MISSION PRESIDIO
IND-enabling activities
PHASE 3
KZR-TBD
Oncology & Autoimmunity
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Kezar's Novel, Complementary Programs Target Master Regulators of Cellular Function to Achieve Broad Therapeutic Activity
PROTEIN DEGRADATION: The Immunoproteasome
PROTEIN SECRETION: The Sec61 Translocon
The target of selective immunoproteasome inhibitor KZR-616
· Modulates multiple drivers of inflammation
· Active in broad array of autoimmune disease models
· Restores normal immune responses in autoimmune disorders, while potentially avoiding immunosuppression
· Broad anti-tumor activity in preclinical models
· Applications in oncology, immuno-oncology, N
and autoimmunity · Potential for small molecules to replace
certain biologics
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The Immunoproteasome Acts as a Master Regulator of Cellular Function in the Body's Immune System its Dysfunction Underlies the Pathogenesis of Immune-mediated Diseases
Immunoproteasome
Proteins to be
degraded
Class 1 Antigen Presentation
Lymphocyte migration & adhesion
Lymphocyte proliferation
Cytokine expression
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Selective Immunoproteasome Inhibition is not Cytotoxic and Results in Broad Immunomodulatory Activity
Dual-Targeting Proteasome Inhibitors
Selective Immunoproteasome Inhibitors
Dual proteasome inhibitors
Myeloma Cell
Macrophage
TNF-
IL-23 IL-6
· Dual inhibition required for cell death
· Death induced by protein buildup (UPR)
Apoptosis
T-cell
KZR-616
B-cell
Th1 Th17 Treg
autoAb
Parlati et al. Blood 2009
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KZR-616, A First-in-Class Selective Immunoproteasome Inhibitor Offers a Novel Approach for Harmonizing the Immune System for Immense Disease-Modifying Benefit
KZR-616
Strong Pharmaceutical Properties Exhibited in Studies to Date
· Ideal clinical pharmacology parameters
· Low DDI risk
· 100% bioavailability with subcutaneous administration
· Amenable to patient selfadministration
· Experienced CMC team prepared for commercial grade manufacturing with low COGS
· Extensive IP coverage and lifespan (2034+)
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We are Leveraging KZR-616's Broad Immunomodulatory Potential to Initially Address Severe, Chronic Autoimmune Diseases
DM/
LN
PM
Prevalence: ~150K US patients Treatment: No approved treatments in US/EU
Prevalence: ~70K US patients Treatment: Limited approved
treatments in US/EU
CURRENT TREATMENT PARADIGMS ARE INADEQUATE
· Prolonged corticosteroid use results in significant complications · Existing therapies are ineffective in many patients
Almani S et al. CJASN 2017 Oddis C et al. Nat Rev Rheumatol 2018 Barcellini W et al. Expert Rev Clin Immunol 2018
· Targeted therapies (e.g., biologics) may not address needs of all patients with Lambert MP et al. Blood 2017
diseases characterized by defects in multiple arms of the immune system
https://www.ncbi.nlm.nih.gov/pmc/articles/P MC4386579/figure/Fig4
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Data From 130+ Healthy Volunteers and SLE Patients* Receiving KZR-616 Support Advancement into Ph2 Trials in Chronic Autoimmune Diseases
Safety & Tolerability
Efficacy & Biomarkers
PK & PD
· Well-tolerated for 13 weeks of treatment
· Safety profile does not indicate need for patient monitoring
· Improvement across all measured parameters of disease activity
· Rapid and sustained immunomodulatory gene expression changes
· Reduction in anti-dsDNA antibody titers in 7/7 patients with elevated levels at BL
· Consistent PK and PD across subjects and with repeat dosing
· Target levels of immunoproteasome inhibition at doses 30mg
· Rapid reduction in UPCR in 2/2 patients with active, proliferative LN
*data as of Sept 24, 2020
Furie et al, EULAR 2019, ACR 2019, ASN 2020, and ACR 2020
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KZR-616 is Now Being Evaluated Phase 2 Clinical Trials for the treatment of Chronic, Severe Autoimmune Diseases
Phase 1b
SLE / LN
2020 2H
Phase 2
LN
Phase 2
DM / PM
2021
1H
2H
2022 1H
OLE OLE
Anticipated data updates 10
PRESIDIO Phase 2 Placebo-Controlled Cross-over Study for the Treatment of Dermatomyositis and Polymyositis Designed to Inform Late Stage Studies
Adult patients with DM or PM
(n=24)
Randomize 1:1
TREATMENT PERIOD 1
TREATMENT PERIOD 2
KZR-616 45mg* SC once weekly
t
Placebo SC once weekly
*1st 2 doses are 30mg
Placebo SC once weekly
t
KZR-616 45 mg* SC once weekly
*1st 2 doses are 30mg
12 month Extension Study or 8week Safety Follow-up
Week 16 Secondary Endpoint
Week 32 Primary Endpoint
ENDPOINTS
1o: Efficacy: Total Improvement Score (TIS)
2o: Safety and tolerability; Patient Reported Outcomes (PROs), PK
Exploratory: Biomarkers, PK/PD relationship
Study NCT04033926
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KZR-616 Improved Muscle Function in a Mouse Model of Polymyositis and Dermatomyositis*
CIM MODEL
· Gold standard model for PM and DM (Sugihara 2007)
· Replicates multiple features of clinical disease
Tx (2 weeks)
· KZR-616 treatment of diseased animals restored normal muscle function
· Significant reduction in tissue damage (histology and circulating enzyme levels)
Muscle Strength
Histopathology score Grip Strength
(Relative to Body Weight) CK Activity (units/L)
4
3
2
***
Naive
1
Vehicle
KZR-616 0
13 15 17 19 21 23 25 27 29
Days Post Immunization
Muscle Histology
Muscle Enzymes
10
***
8
6
4
2
0 Vehicle
KZR-616
500
*
400
300
200
100
0 Naive Vehicle KZR-616
CIM=C protein-induced myositis *Oliva MDR et al, ACR 2020
Vehicle
KZR-616
Triceps Histology
(H&E Staining)
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MISSION Phase 2 Trial to Demonstrate Responder Rate of KZR-616 60 mg Weekly and Inform Late Stage Studies in LN
Adult patients with Lupus Nephritis (n=20)
1 Immunosuppressive + KZR-616 60mg* SC
once weekly (n=20)
*1st dose is 30mg
KZR-616 45 mg* SC once weekly
Week 24 Primary Endpoint
12-month extension study or 12week safety follow-up
KEY INCLUSION CRITERIA:
Biopsy-proven Class III or IV +/- Class V LN w/significant proteinuria (UPCR 1) despite standard therapy
Must be on stable therapy for at least 8 weeks prior to study entry
ENDPOINTS
1o: Efficacy Number of patients with 50% reduction in UPCR
2o: Safety and tolerability; Additional renal response parameters (e.g. CRR); Extra-renal SLE disease indices; PROs
Exploratory: Biomarkers
NCT03393013
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MISSION Phase 1b is Designed to Evaluate Safety, Tolerability, and Early Efficacy Signals Enrollment Complete
Cohort 1 (n=8) COMPLETED
Cohort 2 (n=5) COMPLETED
Cohort 2a (n=14) COMPLETED
Cohort 2b* (n=6) COMPLETED
Cohort 2c* (n=8) ACTIVE
Cohort 3* (n=6) ACTIVE
WEEK 0
Tolerability Strategies Cohort
WEEK 13
30 mg KZR-616 QW 45 mg KZR-616 QW 60 mg KZR-616 QW 75 mg KZR-616 QW
12-week safety follow-up
2
4
6
8
10
12
*Cohorts 2b/2c/3 use lyophilized formulation
ENDPOINTS
1o: Safety
2o: Recommended Phase 2 doses, Plasma PK
Exploratory: Efficacy, PD, Biomarkers, Pharmacogenomics
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Results Observed in 2 of 2 LN Patients Treated in the MISSION Phase 1b Showed Rapid Improvement in Renal Function
Cohort 2a patient
3.9
Cohort 2c patient
2.4
Week
0.7 0.6
Baseline Week 13 Week 17 Week 25
SLEDAI-2K 17 8 8 8
anti-dsDNA(IU/ml) 137 53 73 61
0.69 0.7
Week
Baseline Week 13 Week 17 Week 25
SLEDAI-2K 14 8 8 NA
anti-dsDNA(IU/ml) 123.5 52 40 53
· Baseline stable treatment regimen of leflunomide, hydroxychloroquine, and prednisone (10mg/day); failed prior tacrolimus
· Nephrotic range · >50% reduction in UPCR at week 17 · Reduced anti-dsDNA at week 13 · Drug holiday due to AE W2-4 & W11
· Baseline stable treatment regimen of MMF (2g), hydroxychloroquine, and prednisone (10mg/day) Nephrotic range
· >50% reduction in UPCR at week 5 · Improve symptom scores at week 5
· Reduced anti-dsDNA at week 5
End of Treatment W13; End of Study=W25
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KZR-616 Demonstrated Improvement on Exploratory Efficacy Measures of Disease Activity Across Organ Systems in SLE
Tool
SLEDAI-2K
Improvement
Baseline (n=33)a
Mean Patient Score*
EOT -W13 (n=32) ab
EOS -W25 (n=27) a
9.2
6.7
7.2
CLASI-A
5.8
2.9
3.4
Tender Joint Count
11.2
5.0
5.6
Swollen Joint Count
7.7
2.5
2.1
Physician Global Assessment Score
57.0
40.4
39.6
Patient Pain Assessment
59.3
37.8
44.7
Patient Global Assessment Score
59.3
44.2
44.6
aNot all completing patients were evaluable because data had not been entered at the time of the data cut; b SLEDAI-2K at W13 is n=31
BL=Baseline; EOT=End of Treatment; EOS=End of Study; W13=week 13; W25=week 25; CLASI-A, Cutaneous Lupus Erythematosus Disease Area and Severity Index-Activity; SD, standard deviation; SLEDAI-2K, Systemic Lupus Erythematosus Disease Activity Index 2000.
*There are patients still active in cohorts 2c and 3 as of Sept 24, 2020
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Whole Blood RNASeq Data from MISSION Phase 1b Patients Support Potential Broad Immunomodulatory Activity of KZR-616
GENE S I G N AT U R E C O M PA R I S O N S
4 wks post 12 wks post last dose last dose
BL vs HV W5 vs BL W17 vs BL W25 vs BL
downregulated
upregulated
Enriched inflammatory gene signatures in SLE pts (n=16)
Rapid decrease in inflammatory gene expression
Fan et al.,ACR 2019
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All Patients with Elevated Anti-dsDNA Levels at Baseline (n=7) Experienced Reductions After Treatment with KZR-616
Patients Completing Study w/Elevated anti-dsDNA at BL*
Individual
Mean anti-dsDNA level, IU/mL (baseline)
Patient A Patient Ba
1015 87
Patient C
32
Patient Db
134
Patient Ea
90
Patient Fb
98
Patient G
29
aHistory of nephritis. bActive nephritis. Abbreviation: anti-dsDNA, antidouble-stranded DNA antibody
% Change from baseline, week 13 (end of treatment)
-64.0 -20.7 -6.3 -60.4 -76.7 -46.9 -17.2
% Change from baseline, week 25
(end of study)
-82.0 -33.3 -18.8 -54.5 -68.9 -45.9 -24.1
*Elevated levels of anti-dsDNA antibodies are highly specific markers of SLE disease activity (>20 IU/mL considered elevated)
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KZR-616 Continues to Demonstrate a Favorable Safety and Tolerability Profile at Higher Doses
Lyophilized formulation
Measures, N% of patients
Cohort 2aa (n=14)
Cohort 2b (n=6)
Cohort 2c (n=8)
All patients* (Cohorts 1-3)
(n=46)
At least 1 Treatment Emergent Adverse Event (TEAE)
12 (85.7)
4 (66.7)
7 (87.5)
38 (82.6)
Injection Site Erythema
5 (35.7)
2 (33.3)
6 (75.0)
20 (43.5)
Nausea
5 (35.7)
1 (16.7)
4 (50.0)
18 (39.1)
Vomiting
4 (28.6)
1 (16.7)
2 (25.0)
14 (30.4)
TEAEs Grade 3
3 (21.4)
0 (0.0)
0 (0.0)
4 (10.3)
Infectious TEAEs Grade 3
1 (7.1)
0 (0.0)
0 (0.0)
1 (2.2)
Infectious TEAEs; All Grades
5 (37.5)
2 (33.3)
2 (25.0)
10 (21.7)
Serious TEAEs
2 (14.3)
1 (16.7)
0 (0.0)
4 (8.7)
TEAEs leading to discontinuation
2 (14.3)
0 (0.0)
aPatients received 4 doses to reach target dose. *All patients are inclusive of patients from Cohort 1. 47 patients were enrolled, but data for one patient were not entered at time of data cut. Cohorts 2b, 2c and 3 utilize a lyophilized formulation of KZR-616, prophylactic oral electrolyte solution, non-sedating antihistamines, and antiemetics and/or dose escalation
0 (0.0)
10 (21.7)
*No patients in Cohort 3 had completed treatment as of Sept 24, 2020
Furie et al, EULAR 2019, ACR 2019, ASN
2020, ACR 2020
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KZR-261, Our First Protein Secretion candidate, is Currently in IND-enabling Studies
COMPOUND
THERAPEUTIC INDICATION
Selective Immunoproteasome Inhibition
DISCOVERY
DEVELOPMENT STAGE
PRECLINICAL
PHASE 1
PHASE 2
KZR-616
Lupus Nephritis (LN)
Dermatomyositis (DM) / Polymyositis (PM)
Protein Secretion Inhibition
MISSION PRESIDIO
KZR-261 Oncology
IND-enabling activities
KZR-TBD Oncology & Autoimmunity
PHASE 3
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The Sec61 Translocon Represents Initiation of the Protein Secretion Pathway
· Highly conserved process
· Nearly all secreted and transmembrane proteins (5,000 7,000 proteins) utilize Sec61 to enter the endoplasmic reticulum (ER)
· Each protein expresses a unique signal sequence or transmembrane domain
· Kezar tool compounds block functional interaction of signal sequences and Sec61
· Blocking functional interaction of signal sequences inhibits the expression of a selected protein or proteins
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Targets of Most Biologics Utilize Sec61 for Secretion or Membrane Expression
A plethora of validated targets utilize the Sec61 translocon. Kezar's program holds the potential for superior small molecule therapeutics against these targets.
Membrane protein
Extracellular
Sec6 1 Ribosom e
mRN A
Golgi apparatus
Traditional biologics bind with proteins outside of the cell
DN A
E R Nucleu s
Cytos ol
Secreted proteins
Membrane Proteins
(partial list)
EGFR (ERBITUX) IL-6R (ACTEMRA) PD-1 (OPDIVO) PDL1 (TECENTRIQ) CTLA4 (YERVOY)
Secreted Proteins
(partial list)
TNF- (HUMIRA) IL-17 (COSENTYX) PCSK9 (REPATHA)
IL-6 (SYLVANT) BAFF (BENLYSTA)
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Kezar has Multiple Small Molecule Approaches to Modulating Protein Secretion at the Sec61 Translocon
Multiple Protein Secretion
Inhibitors
Specific Protein Secretion
Inhibitors
· Potential for multiple clinical candidates
· Broad anti-tumor activity in vitro and in vivo
· KZR-261-first protein secretion clinical candidate; anticipated IND filing Q1 2021
Potential to inhibit multiple therapeutically relevant targets
with a single small molecule
· Small molecule replacement of biologic therapies
· Target selective approach · High value / validated
targets · Potential applications in
oncology and autoimmunity
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KZR-261 Blocked Expression of Therapeutically Relevant Targets and Inhibited Tumor Growth In Vivo; IND Anticipated Q1 2021
In vitro Protein Secretion Assays
Cytokines & Cytokine Receptors
Immune Checkpoints
Oncogenic Factors
IC50 (nM) 1
100 250 500 750 900 >1000
TNFR1 TNFR2 IL-17A IL-17RA IL-23A IL-12B IL-23R
IL-6 IL-6R GP130 IL-1R1 IL-1R2 IL-1RA IL-2RA IFN-A1 IFN-A2 IFN-A4 IFN-B IFNG IFNAR1 IFNAR2 CTLA-4 PD-1 PD-L1 LAG3 TIM3 TIGIT CD96 VISTA B7H3 CD73 CD47 PDGFRa VGFR2 IL-7R EGFR VEGF HER3 Prolactin
In vivo Tumor Xenografts
Lowe et al. ASCO 2020
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Gene Expression Profiling Reveals Differential ER Stress Response: Potential Gene Signature Biomarker
Sensitive Resistant
CCLE Gene Expression
TCGA Gene Expression
· Sensitive and resistant myeloma cell lines were treated with a Sec61 inhibitor
· RNASeq analysis used to find gene modules that differed between the cell lines
· Sensitive cells: Increased expression of ER stress genes
· Enriched expression of ER stress genes in multiple solid tumor types
ER Stress Gene Module Expression Levels: log10(Wilcox P-Value)
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Positioned for Growth and Delivering Shareholder Value
Q4 2020
· Updated MISSION Phase 1b data (through Sept 2020) · Initiate PRESIDIO Open-label Extension Study
1H 2021
· IND Submission for KZR-261 · Initiate Phase 1 basket study in solid tumors (KZR-261) · Final Data from MISSION Phase 1b study (KZR-616 in SLE) · Initiate MISSION Phase 2 Open-label extension study (KZR-616 in LN)
2H 2021 · Interim data from MISSION Phase 2 study (KZR-616 in LN)
1H 2022
· Top-line data from MISSION Phase 2 study (KZR-616 in LN) · Top-line data from PRESIDIO Phase 2 study (KZR-616 in DM/PM)
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The Kezar Opportunity: Harnessing Master Regulators of Cellular Function to Tackle Immune-mediated Diseases and Cancer
2 distinct scientific programs with potential across multiple indications of high unmet need
Rich Platform & Growing Pipeline
KZR-616: First-in-Class Immunoproteasome
Inhibitor
A novel approach to harmonizing the immune system; Potential to be a pipeline in a drug
First in class agent with broad antitumor activity; Potential to inhibit multiple targets with a single small molecule
KZR-261: First candidate from
Protein Secretion Platform
Strong Financial Position
(as of 9/30/2020)
$150M cash, cash equivalents, and marketable securities; 46.3M common shares outstanding
27
THANK YOU
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