Oncolytic Viruses: Reovirus

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T S X : O N C N A S D A Q : O N C Y International Society for Biological Therapy of Cancer 2008 Oncology Biologics Development Primer Oncolytic Viruses: Reovirus

REOLYSIN - mode of action REOLYSIN contains the reovirus, a naturally occurring, replication competent oncolytic virus - Not a gene therapy agent so no interaction with GTA (UK) - Not recombinant so no interaction with NIH DNA RAC (US) Asymptomatic in humans (does not cause disease) Replicates in Ras-activated cancer cells resulting in cell death

Two methods of tumor killing

Replication Fully replication-competent Replication is exclusively cytoplasmic Proof of viral replication in tumors following systemic delivery Mammalian permissive therefore effective modeling in murine and non-human primate models Picture courtesy of Scott Wadler, Cornell University

Preclinical toxicology unique challenges Reovirus replicates in target cells Non-tumor bearing animals will not have the ability to replicate the virus - Input virus could be significantly less than virus amplified in tumor tissue - Animals bearing tumors with actively replicating virus experience prolonged virus exposure - Various chemotherapeutic agents can increase progeny virus production - Lytic release of tumor associated antigens cannot be modeled in non-tumor bearing animals

Tumor regression and viral amplification A. REOLYSIN Induced Local and Remote Tumor Regression in Breast Cancer Xenografts B. Viral Amplification in Xenograft 120 100 RIGHT FLANK LIVE VIRUS LEFT FLANK LIVE VIRUS RIGHT FLANK INACTIVE VIRUS LEFT FLANK INACTIVE VIRUS 1.0E+12 1.0E+10 Tumour size (mm 2 ) 80 60 40 pfu/g or pfu/ml 1.0E+08 1.0E+06 1.0E+04 20 1.0E+02 Left (injected) flank Right (uninjected) flank Blood 0 0 8 16 24 32 Days post-injection (Into left flank) 1.0E+00 0 4 8 12 16 20 24 28 Days post-injection

Clinical Development Strategy & Appropriate Toxicology Modeling

Clinical development strategy From local to systemic, monotherapy to combination Local or regional administration using REOLYSIN as a monotherapy Systemic administration using REOLYSIN as a monotherapy Combination therapy using REOLYSIN locally, regionally or systemically with radiation or chemotherapy

Preclinical toxicology - changing route of administration increases commitment to toxicology Thirteen GLP safety studies consistent results Three routes of administration SubQ, intracerebral, and intravenous Three animal species Rat, canine, primate Single and multiple dose studies 28-day infusion studies completed in 3 species No product-related severe adverse events or dose-limiting toxicities in immune competent animals

Why start with local administration? Although local administration is not as clinically relevant as systemic treatment, there are advantages: - Considered safer than repeat systemic administration - Proof of concept could assure virus delivery to tumor Activity could be measured by local response, systemic response, and superficial lesions can easily be biopsied pre and post treatment - Requires less virus than systemic administration If the above criteria were met (i.e. safe, demonstration of tumor regression, and improved manufacturing) then move to systemic administration

Results Phase I intratumoral Dose escalation from 1x10 7 to 1x 10 10 TCID 50 given a single or multiple injections No anaphylaxis seen in multiple injection cohorts No severe adverse events noted, no DLTs, MTD not reached Viral activity detected in 11 of 18 patients (>30% 2-D tumor regression) Evidence of field effects noted in several patients Results mostly mirror preclinical results During this period improvements to manufacturing were implemented, with resulting increases in yield from 4% to 40%

Preclinical Toxicology & Intravenous Delivery

Repeat IV studies Species Dose in Frequency Result TCID 50 Spraque-Dawley Rats 2.1 x 10 6 2.1 x 10 7 Once daily for 28 days No compound-related effects produced on any of the parameters assessed in this study. 2.1 x 10 8 Beagle Dog 7.1 x 10 7 7.1 x 10 8 7.1 x 10 9 Primate 5.0 x 10 7 5.0 x 10 8 5.0 x 10 9 Once daily for 28 days Once daily for 28 days No compound-related effects produced on any of the parameters assessed in this study Dosing and recovery phases completed. No observed morbidity or mortality. EKGs conducted on day one and during week two demonstrated no abnormalities.

Systemic administration studies Phase I systemic administration study at the Royal Marsden Hospital and St. George s Hospital, UK Intravenous administration in patients with advanced or metastatic solid tumors refractory to standard therapy Examined dose frequency, dose escalation, retreatment (4 week cycle), and a treatment arm at the MTD Enrolment from May 04 Nov 06 Phase I systemic administration study at the Montefiore Medical Center, US Intravenous administration in patients with advanced or metastatic solid tumors refractory to standard therapy Examined dose escalation Enrolment from Nov 05 Oct 06

UK dose escalation Phase I component Study designed to look at effect of increasing frequency and dose Concentration Dose C (x 5) Dose B (x 5) Dose A (x 1) Dose A (x 3) Dose A (x 5) Frequency Allowed multiple administrations (4 week cycle) Expansion at top dose to better measure efficacy

US dose escalation Phase I Concentration Top Dose (x 1) Dose C (x 1) Dose B (x 1) Top Dose (x 3) Study designed to look at increasing dose only Single cycle only (until sufficient data generated from UK study) No expansion at top dose Dose A (x 1) Frequency

Different jurisdictional issues MHRA FDA Pro early allowance to look at repeat administration and multiple cycles Con concern with shed required first cohorts to be treated in hospital in negative pressure rooms resulting in slow accrual and added cost Pro realistic view of the risk posed by shed of a naturally occurring virus allowed patients to be treated in out-patient care resulting in rapid enrolment Pro - allowed early interaction with the Agency Con initial concerns with risk of repeat administration required first cohorts to receive single administration only By concurrently running the studies, it was believed that the transition into Phase II studies in multiple jurisdictions would be expedited

REOLYSIN clinical overview - systemic monotherapy Trial Patient Population Tumour Response Phase I systemic administration (UK) Late-stage or advanced cancer patients who have failed all other therapies. (N=33) Responses noted in several tumor types - Colorectal cancer 2 patients : Stable Disease at 3 and 6 months; CEA tumor marker reduction of 27% and 60% - Metastatic prostate cancer one patient: Stable disease at 4 months 50% decrease in PSA. Biopsy lymph node EM: Viral replication. Pathology - Necrosis - Metastatic bladder cancer one patient: Stable disease at 4 months. Minor tumor response (24% tumor reduction) in metastatic lesion (lymph node); patient later reported as disease free post surgery (ppr). - Pancreatic cancer one patient: Stable disease at 4 months. - NSC Lung Cancer one patient: Stable Disease at 4 months. Phase I systemic administration (US) Late-stage or advanced cancer patients who have failed all other therapies. (N=18) 44% showed stable disease or better One partial response in progressive breast cancer

REOLYSIN clinical overview Phase II program Monotherapy Phase II Program Program status ongoing US: recurrent sarcoma metastatic to lung (ongoing) Trial has met initial criteria to proceed to full enrolment One patient stable for >6 months NCI: melanoma and ovarian cancer Trials received FDA approval, enrolment to begin Q1 2008 These studies employ the recommended dose from the UK study (ie 5 injections/week on a 4 week cycle) Phase II monotherapy program is currently exclusively conducted in the US

REOLYSIN clinical overview Phase I/II program Phase I/II Drug Combination Program Program status - ongoing Combination: UK: Phase II low dose radiation including head/neck (ongoing) Combinations with cytotoxics (dose escalation ongoing) Gemcitabine Docetaxel Carboplatin/paclitaxel REOLYSIN + cyclophosphamide (MHRA approval received)

Imaging, tumor markers and histopathology Phase I program suggested that conventional imaging (CT) was inadequate to measure responses caused by REOLYSIN - Demonstrable tumor marker responses by CEA, PSA, and CA199 without 2D changes in CT - Histopathologic response in post-treatment biopsies and surgical specimens without 2D changes in CT

Example - PSA response patient JB Treatment cycles

CT Scan patient JB Pre-treatment Post 2 cycles of REOLYSIN

Metastatic prostate patient s histology patient JB

Phase II program addition of functional imaging In response to imaging concerns the Company introduced the use of PET/CT into Phase II programs. Introduction of this imaging modality is already bearing fruit: - Phase II sarcoma study has demonstrated that a patient with 6 month SD (CT RECIST) has metabolically inert disease by PET and study has moved to full enrolment (enrolment ongoing)

REOLYSIN: lessons and issues Key strategic decisions Impact of regulatory interactions Financial considerations: projected costs vs. reality Lessons learned

T S X : O N C N A S D A Q : O N C Y International Society for Biological Therapy of Cancer 2008 Oncology Biologics Development Primer Oncolytic Viruses: Reovirus