“Developing Treatments for Orphan Kidney Disease - Diabetic Nephropathy and
Polycystic Kidney Disease”
Non Confidential XRX:CSE
XORTX Therapeutics Inc.Feb, 2018
1
This document contains forward-looking information pursuant to applicable securities
law. All information that addresses activities or developments that we expect to occur
in the future are forward-looking statements. Forward-looking statements are based
on the estimates and opinions of management on the date the statements are made.
However, they should not be regarded as a representation that any of the plans or
objectives will be achieved. Actual results may differ materially from those expressed
or implied by the forward-looking information set forth in this document due to risks
and uncertainties affecting the Company, including access to capital, the successful
completion of clinical trials and receipt of all regulatory approvals. The forward-
looking statements in this document are based on a number of assumptions which
may prove to be incorrect, including assumptions concerning general business and
economic conditions, positive clinical trials and the availability of financing. XORTX
assumes no responsibility to update forward-looking statements in this document.
2
Historical Value Creation & Advancements 2014-2017:
new formulation & Intellectual Property
characterization bioavailability
two new classes of purine metabolism inhibitors
further IP development
Future Value Creations Steps 2018- : In-license complete phase II –PoC outlicense.
In-license of a proprietary xanthine oxidase inhibitor for development in diabetic nephropathy.
Merger $ Acquisition discussions …. Ongoing
3
XORTX Therapeutics Inc. - developing therapies to treat kidney disease where no therapeutic option exists, and based on XORTX patent protection.
For example, Granted US 9,155,749 - Claims:
“All Xanthine Oxidase Inhibitors for Treatment of Diabetic nephropathy”.
XORTX has First-in-class opportunities:
1/ Large Market – Type 2 Diabetic Nephropathy;
2/ Orphan - polycystic kidney disease.
XORTX programs are de-risked –Recent phase II clinical pilot trial evidence shows that managing purine metabolism and decreasing serum uric acid concentration can slow or stop progression of kidney disease to dialysis giving patients years of quality of life, kidney health and avoid dialysis.
4
~10,000,000 DN
End Stage Renal Disease~700,000/yr
* Diabetes (~9.5%) of North Americans.
* ~40% of patients with diabetes develop evidence of nephropathy.
*In the U.S. diabetic nephropathy accounts for about ~45% of new cases of ESRD. (3%)
5
US Population: 330,000,000
U.S. 14% with Progressive Kidney Disease ~46,200,000
U.S. Diabetic Population: ~32,000,000
U.S. Diabetic Kidney Disease ~10,000,000
U.S. AD-Polycystic kidney disease ~120,000
Progressive Kidney Disease-Accelerating Decline of filtration (GFR)-Increased creatinine-Increase urine protein loss-Abdominal Pain-Declining health/ wellness
Diabetic Nephropathy is responsible for ~ 45% ESRD. While, Polycystic Kidney Disease is responsible for ~5%
ESRD
ESRD is a life altering event –*4 hours per day on dialysis;
*loss of ability to work fulltime;
*dependence on family;
* Pain and declining health are constant burden
* Shortened survival= FEAR measured in days!
Any Therapy to maintain kidney health and avoid dialysis would be profoundly important.
No Drugs are currently approved to treat progressive kidney disease. An opportunity to provide first-in-class therapy exists.
ONLY 50% survive ~2 Yrs!
Curr Opinion Nephrol Hypertens 22(2):185-192, 2013
6
OXYPURINOL Reformulation: Patent Application - ‘Enhanced bioavailability and improved dosing range’
filed as composition of matter - Worldwide Patent - ‘PCT’ 2014
Oxypurinol Action clinical trial evidence:
uric acid lowering;
improved endothelial function;
superior tolerability compared to allopurinol.
Ideal for repositioning in orphan disease indications.
Lead Program: Autosomal dominant polycystic kidney disease (ADPKD)
7
Recent, Phase II Clinical Trial Success in progressive kidney disease increases the probability for translational success of this program.
8
Lowering and managing Blood Uric acid is associated with slowing kidney disease progression.
Goicoechea et al. (2010) Effect of allopurinol in CKD progression and CV risk. Clin J Am Soc Nephrol 5:1388-1393
Chronic Kidney Disease ( ~50% diabetic patients)
(Han M, et al., Hyperuricemia and Deterioration of Renal function in ADPKD, BMC Nephrol 15:63-2014)
Polycystic Kidney Disease
-5
-4
-3
-2
-1
0
1
2
3
Untreated Treated
Serum Uric Acid (mg/dL)
-20
-15
-10
-5
0
5
10
Untreated Treated
GFR Change (ml/min/1.73
m2)
(n=57,56)
Stage2-3a Stage
3b-4
n=32; 21
GFR: Glomerular Filtration RateUA: Serum Uric Acid
9
SUASUA
GFR – Rate
Decline
GFR –Rate
Decline
Dialysis
Dialysis
Renal Events
Renal Events
-15
-10
-5
0
5
10
15
20
25
UnTreated Treated
Effects of SUA lowering on CKD-->
DURABILITY after 7 yrs
BIG PICTURE - - If a quarter of 9,000,000 patients gain at least 1 years, then save the Health Care System – 324 B in Dialysis Costs.
***The data suggests > 5 years delay in ESRD onset.
Years of Quality of Life
Goicoechea et al. (2015) Allopurinol and Progression of CKD and Cardiovascular Events: A long-term Follow-up, Am J Kid Dis
Diabetes (9 %) of North Americans.
In the U.S. diabetic nephropathy accounts for about ~45% of new cases of End Stage Renal Disease (ESRD).
10
North American Population: 360,000,000
N.A. Obese Population: ~120,000,000
N.A. Diabetic Population: ~32,000,000
Diabetic nephropathy: ~ 10,000,000
Diabetic nephropathy:
Most common cause of chronic kidneydisease (CKD) and end-stage renaldisease (ESRD) worldwide. (Collins et al.,
2012).
A 5-year observational study, showed that a 1 ± S.D. increase in uric acid was associated with a 21% increased incidence of CKD (Zoppini et al., 2012).
11
A novel, highly potent uric acid lowering agent that can decrease and maintain UA, would provide the greatest benefit to type 2 Diabetic nephropathy patients.
Q1< 3.2 mg/dLQ2= 4.4 mg/dLQ3 =5.0 mg/dLQ4 > 6.2 mg/dL
NORMAL Range
HIGH Range
(n=1449)
Several large observational studies have shown that hyperuricemia has a pathogenic role in the development and progression of CKD (Jalal, Chonchol, Chen, & Targher, 2013; Zoppini et al., 2012).
No Drugs are currently approved in the US, to treat progressive kidney disease caused by Diabetic Nephropathy or Polycystic Kidney Disease.
XORTX GRANTED Patent claims: ” use of all uric acid lowering agents” as a therapy including all classes of agents– Xanthine oxidase inhibitors, Uricosurics & Uricase.
Drugs with similar MoA to oxypurinol: allopurinol and febuxostat have a monograph warning that affects ‘off label’ use…
Competitive advantage: once approved would be the first in class drug for this purpose and potentially best in class for individual effectiveness, and potency.
12
Financing Request: $30 M USD
13
IND ---------------Phase IIb study Q2,2019------------------------------
$10 M Financing$ 5 – 7 M Financing
2018 2019 2020
Type 2 Diabetic Nephropathy
ADPKD License
Polycystic Kidney Disease OrphanDesignation -- IND/ Mfg --Phase II study Q2,2017-----------------------------------------
$10M Financing
Our Vision is to Build XORTX Therapeutics Pipeline, through merger and acquisition.
Strategic analysis of Potential M & A candidates, suggest two key acquisitions in H1, 2018 would position XORTX Therapeutics with 4-7 Phase 2 ready programs.
14
1. Add additional BoD members, Advisory members
2. Orphan Designation - Polycystic kidney disease - 4 months
3. M & A for ESDR and Valproate programs - 6 months
4. M&A with Women’s health Care Company and Oncology programs - 6 months
5. FDA Investigational New Drug application – PKD Phase II - 6 months
6. European – Diabetic nephropathy patent grant - 10 months
7. Manufacture of Clinical grade GMP drug for phase II PKD trial – 10 months
8. License of proprietary xanthine oxidase inhibitor for type 2 DN – 6 months
9. FDA Investigational New Drug Application – Type DN – 12 months
10. Initiate & Conduct Phase II PKD trial - 30 months
11. Initiate & Conduct Phase II Type 2 DN trial – 36 months
12. Complete Licensing deal for PKD program – 36 months
15
Currently
~ 62,000,000 Shares Issued
~ 4,000,000 2-year Warrants - $0.80
Future Steps:
Eventual NASDAQ listing.
Pipeline Expansion through M&A
16
“Developing Treatments for Orphan Kidney Disease - Diabetic Nephropathy and
Polycystic Kidney Disease”
Non Confidential
XRX:CSE
Contact Information: Dr. Allen [email protected]
XORTX Therapeutics Inc.
References available on request
17
Board of Directors:
Mr. Bruce Rowlands, Mr. Rowlands is the current Chairman and Chief Executive Officer of Eurocontrol Technics Group. Prior to
forming Eurocontrol, Mr. Rowlands worked in the biotechnology and investment banking industries as Senior Vice President withLorus Therapeutics and Vice President and Director of Dominick and Dominick Securities Canada, a Canadian investment bankingfirm.
Mr. Paul Van Damme, B. Comm., MBA, Has an extensive career in industry and finance, Paul Van Damme has held senior
positions with a number of Canadian and US public companies. He brings a biotech industry focus through experience withGlycoDesign, Allelix Pharmaceuticals Inc., he participated in the sale of that company to NPS Pharmaceuticals, Inc. Paul is currentlyManaging Director, WCM Capital, a Director of OncoQuest Inc. and Chief Financial Officer for Structural Genomics Consortium, aUK-based charity. Paul has also been appointed Chair of the XORTX Audit Committee.
Mr. Allan Williams, Allan Williams, an independent businessman, brings over 30 years capital market and public company
experience to the XORTX board. Allan has been instrumental in raising over $250 million in project capital. He also has extensive mergers and acquisitions experience, most recently relating to the acquisition of Calico Resources Corp., a TSX Venture listed company by Paramount Gold Nevada Corp., a New York Stock Exchange listed company. Alan is a current director of GreatbanksResources Inc., Maritime Resources Corp., both TSX Venture listed companies and True Grit Resources Inc., a NEX listed company.
Dr. Allen Davidoff, Ph.D., Chairman, CEO, President, Co-founder
Dr. Allen W. Davidoff, Ph.D. (15 years drug development ), Formerly, Chief Scientific officer, VP Product Development and co-founder of Stem Cell Therapeutics Corp. (7 yrs) ( Trillium TRIL:NASDAQ). Prior to Stem Cell Therapeutics Corp., Senior Scientist and Head of Pharmacology at Cardiome Pharma Corp. Allen has a broad range of clinical and regulatory experience. Senior management experience in pharmaceutical R&D including 2 investigational new drug (“IND”) applications or supplemental IND’s, 2 phase I studies (4 multi-country), 7 phase II studies, and 1 NDA. 12 years C- level leadership as Co-founder of Stem Cell Therapeutics Corp (Trillium Therapeutics) – A NASDAQ listed Company and XORTX Therapeutic Corp ( XRX-CSE)
18
19
Clinical and & Scientific Advisory Board
Scientific Advisory Board:
Dr. Richard J Johnson Jr. MD : Professor of Pediatrics and Associate Dean forResearch and Development University of Colorado School of Medicine
Dr. Henk E. D. J. ter Keurs, M.D., PhD, Cardiologist, LIBIN Cardiovascular Institute of Alberta
Clinical Advisory Board:
Dr. Daniel Feig MD: Nephrologist - Children’s of Alabama and Director of the Pediatric Hypertension Program and Pediatric Renal Transplant Program at the University of Alabama, Birmingham
Dr. William R. Hiatt MD: Novartis Foundation Endowed Professor forCardiovascular Research at the University of Colorado School of Medicine,Division of Cardiology, FDA advisory committee – CardioRenal Division