Clinical Development in the Treatment of Carcinoid Syndrome. Pablo Lapuerta, MD Executive Vice President and Chief Medical Officer

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Clinical Development in the Treatment of Carcinoid Syndrome Pablo Lapuerta, MD Executive Vice President and Chief Medical Officer

Carcinoid Syndrome Heart Pulmonic and tricuspid valve thickening Stenosis Endocardial fibrosis Gastrointestinal Diarrhea Cramps Nausea Vomiting Skin Flushing Tumoral release of serotonin and other vasoactive substances into the systemic circulation causes carcinoid syndrome 1 Treatment with SSAs is associated with improved symptom control, but patients may not maintain adequate control of symptoms 2,3 Inhibition of serotonin synthesis with PCPA was previously shown to provide symptom control, but its utility was limited by CNS side effects 4 CNS=central nervous system; PCPA=para-chlorophenylalanine; SSA=somatostatin analog. 1. Kulke MH, Mayer RJ. N Engl J Med. 1999;340:858-868. 2. Rubin J, et al. J Clin Oncol. 1999;17:600-606. 3. Strosberg J, et al. Gastrointest Cancer Res. 2013;6:81-85. 4. Engelman K, et al. N Engl J Med. 1967;277:1103-1108.

Key Messages There are three keys to clinical development Study design Data analysis Patient focus 2

Telotristat Ethyl Background Telotristat ethyl is an investigational agent Top-line results of TELESTAR were recently reported at three scientific meetings the initial, placebo-controlled portion of TELESTAR part of the open-label extension portion of TELESTAR Top-line results of TELECAST were recently presented Evaluation of the long-term safety and efficacy of telotristat is ongoing TELEPATH

A Drug Development Timeline Pre-clinical Phase 1 Phase 2 Phase 3 FDA Review 1995-2007 2008 2009-2011 2012-2016 2016-2017 4

Pre-Clinical Development Developing the mouse model Genetic technology Selecting the protein target Discovery biology Finding the compound Medicinal chemistry 5

Phase 1 Studies in Healthy Volunteers What is the broad dose range? Are there any early safety issues? Does the drug product inhibit the enzyme in clinic? Is it absorbed effectively? How long does it stay in the bloodstream? Do higher doses provide more inhibition of the enzyme? Telotristat Phase 1 Studies Initiated in 2008 6

Phase 1 Progress Dosing 3 times daily is reasonable 500 mg was the maximal tolerated dose Monitor liver enzymes in Phase 2 7

Phase 2: Dose Ranging Studying carcinoid syndrome for the first time Key questions Is the 500 mg dose tolerated long-term? Could lower doses be effective? What safety monitoring will be needed for Phase 3? What are the best ways to identify efficacy in Phase 3? Bowel movement frequency Stool consistency 8

Making the Most of Phase 2 Study Design Data Analysis Sequential Dosing Patient Focus Identifying Responders Adequate Relief 9

Phase 2: A Placebo-Controlled Study 23 Patients 4 Weeks of Placebo-Controlled Treatment 10

Phase 2: An Open-Label Study 15 Patients Dose Titration in each Patient 12-Week Treatment 11

Lessons from Phase 2 Both 250 mg and 500 mg doses deserved further study Fewer visits and tests would be reasonable in Phase 3 Bowel movement frequency is a precise measure Daily reports provide a lot of information But we need to support the interpretation of results 12

Interviewing Patients from the Phase 2 Study A Reduction of 30% or more in Bowel Movement Frequency is Clinically Meaningful 13

Important Decisions: Advancing to Phase 3 How many studies? How big should they be? How can we recruit effectively? Telotristat Phase 3 Plan Initiated in 2012 14

The Phase 3 Plan At least 120 patients TELESTAR At least 60 patients TELEPATH TELECAST 12 Weeks Placebo Control + 36 Weeks Open-Label Treatment PHASE 2 PATIENTS 15

TELESTAR: Phase 3 Study Design 1 3- to 4-week run-in (n=135) Run-in: Evaluation of BM frequency 1:1:1 R Placebo tid (n=45) Telotristat ethyl 250 mg tid (n=45) Telotristat ethyl 500 mg tid* (n=45) Telotristat ethyl 500 mg tid Evaluation of primary endpoint: Reduction in number of daily BMs from baseline (averaged over 12-week double-blind treatment phase)) All patients required to be on SSA at enrollment and continue SSA therapy throughout study period Antidiarrheal agent use (eg, loperamide) and rescue short-acting Sandostatin (octreotide) use were allowed while on study 2 BM=bowel movement; tid=three times daily. 1. TELESTAR (telotristat ethyl for somatostatin analogue not adequately controlled carcinoid syndrome). ClinicalTrials.gov website. https://clinicaltrials.gov/ct2/show/nct01677910. Accessed 09/15. Kulke M, et al. Presented at: ESMO. 2015 (abstr 37LBA). 16

Keys to Recruitment No required scans Optional home visits Support for travel All symptomatic treatments allowed All patients offered open-label treatment after 12 weeks If you did not qualify for TELESTAR, you might still qualify for TELECAST With the same randomized design 17

Recruitment Results Almost 1 year to initiate a significant number of sites Approximately 27 months from 1 st patient to last enrolled Sites in US, Canada, France, Italy, UK, Germany, Belgium, the Netherlands, Israel, and Australia 135 patients in TELESTAR 76 patients in TELECAST 18

Phase 3 Data Analyses Mean change in bowel movement frequency Proportions of patients with 30% reduction in bowel movement frequency Relationship between bowel movement frequency and other symptoms Urgency, consistency, and reports of overall symptom relief Different degrees of change (20%, 40%, 60% reductions) and different subgroups (men, women) Is the change real? Is it meaningful? Is it robust? 19

Patient Focus: Be Proactive Learn about the patient experience early in development Use the opportunity to prospectively define clinically meaningful change Who can you identify as a responder? Discuss responder analyses with FDA prior to phase 3 Interview again in Phase 3 Capture the patient voice Support your key efficacy measure Validate your responder analysis 20

TELESTAR Patient Exit Interviews: Methods 1 Clinical sites in 5 countries invited all TELESTAR patients to be interviewed Australia, Canada, England, Germany, and the United States The interview procedure was prespecified in the TELESTAR protocol and approved by ethics committees 2 Interview consent was obtained before initiation of blinded treatment 2 Interviews were conducted by phone between weeks 12 and 14 by an independent expert in patient-reported outcomes 1,2 Patients, clinical sites, and interviewers were blinded to treatment group assignment 1. Anthony L, et al. Poster. NANETS. 2015 (abstr C1). 2. Lexicon Pharmaceuticals, Inc. Protocol LX1606.1-301-CS. 2013. 21

TELESTAR Patient Exit Interviews: Participant Demographics TELESTAR Interview Participants (N=35) TELESTAR Overall (N=135) Age, years 62 64 Female, % 51 48 White, % 97 98 Baseline body mass index, kg/m 2 26 25 Baseline BM frequency, BM/day 5.8 5.7 Anthony L, et al. Poster. NANETS. 2015 (abstr C1). 22

Phase 1: Patient Comments About Baseline Symptoms I was up over 10 [BMs] a day, which wasn't really acceptable... I felt like I was living in my bathroom all the time. Uncontrollable diarrhea where you have to go and there s no stopping it When all I had to do was try to move or walk, and I had to go running to the toilet Anthony L, et al. Poster. NANETS. 2015 (abstr C1). 23

TELESTAR Patient Exit Interviews: Phase 2 Clinically Meaningful Change Participants who reported reductions in BM frequency described better enjoying life, leaving the house, and participating in social and other activities: I definitely feel like I'm not a prisoner in my house, staying 10 feet to the nearest bathroom. I can go out to activities But the biggest change is not having to run to the toilet constantly You can't live going 20 times a day. I was able to go out more often Most participants reported that a BM frequency reduction of at least 30% would be considered meaningful Anthony L, et al. Poster. NANETS. 2015 (abstr C1). 24

TELESTAR Patient Exit Interviews: Phase 2 Satisfaction and Observed Reduction in BM Frequency at Week 12 1 Reduction in BM Frequency at Week 12, % 0 5 10 15 20 25 30 35 40 45 No Satisfaction (n=14) Somewhat Satisfied (n=7) Very Satisfied (n=12) Note: Treatment satisfaction reported in question 3. BMs reported daily on electronic diaries during TELESTAR. N=33 from pooled treatment arms.* Patients who answered 3, 4, or 5 to the treatment satisfaction question were grouped into category no satisfaction. *Of 35 participants, 2 did not answer the satisfaction question due to early termination or scheduling issue. 2 1. Anthony L, et al. Poster. NANETS. 2015 (abstr C1) 2. Data on file. Lexicon Pharmaceuticals, Inc. 25

TELESTAR Patient Exit Interviews: Conclusions The primary endpoint of TELESTAR, a reduction in BM frequency, was very meaningful to patients Effective reduction in BM frequency led to improvement in emotional well-being and social and physical function Anthony L, et al. Poster. NANETS. 2015 (abstr C1). 26

Analyzing Safety TELESTAR provided placebo-controlled safety data on 135 TELECAST provided placebo-controlled safety data on 76 patients TELEPATH has open-label safety data for up to 6 years of treatment A recent safety update (based on continuing safety experience) was provided to FDA Control of carcinoid syndrome is relevant to the safety of patients 27

Telotristat Ethyl, a Tryptophan Hydroxylase Inhibitor for the Treatment of Carcinoid Syndrome Matthew H. Kulke 1, Dieter Hörsch 2, Martyn E. Caplin 3, Lowell B. Anthony 4, Emily Bergsland 5, Kjell Öberg 6,Staffan Welin 6, Richard R.P. Warner 7, Catherine Lombard-Bohas 8, Pamela L. Kunz 9, Enrique Grande 10, Juan W. Valle 11, Douglas Fleming 12, Pablo Lapuerta 13, Phillip Banks 13, Shanna Jackson 13, Brian Zambrowicz 13, Arthur T. Sands 13, and Marianne Pavel 14 1 Dana-Farber Cancer Institute, Boston, Massachusetts, USA, 2 Zentralklinik Bad Berka, Bad Berka, Germany, 3 Royal Free Hospital, London, UK, 4 University of Kentucky, Lexington, Kentucky, USA, 5 UCSF Helen Diller Family Comprehensive Cancer Center, San Francisco, California, USA, 6 Uppsala University, Uppsala, Sweden, 7 Icahn School of Medicine at Mount Sinai, New York, New York, USA, 8 Hôpital Edouard Herriot, Hospices Civils de Lyon, Lyon, France, 9 Stanford University, Palo Alto, California, USA, 10 Hospital Universitario Ramón y Cajal, Madrid, Spain, 11 The University of Manchester/ The Christie NHS Foundation Trust, Manchester, UK, 12 Ipsen BioScience, Cambridge, Massachusetts, USA, 13 Lexicon Pharmaceuticals, Inc., The Woodlands, Texas, USA, 14 Charitè Universitätsmedizin, Berlin, Germany Kulke M, et al. J Clin Oncol. 2016;34. DOI: 10.1200/JCO.2016.69.2780

Filing for New Drug Approval TELESTAR TELECAST TELEPATH Two Phase 2 studies Compassionate use experience Several studies in healthy volunteers Animal safety data Important data on chemistry and manufacturing 29

Next Steps FDA is evaluating the efficacy and safety of telotristat ethyl FDA decision is anticipated by February 28 th, 2017 If approved, a product label will be provided Indications and Usage Dosage and Administration Contraindications Warnings and Precautions Adverse Reactions Drug Interactions Use in Specific Populations Clinical Pharmacology Nonclinical Toxicology Clinical Studies Storage and Handling Patient counseling 30

Example of an FDA Label: ARICEPT 31

Summary Clinical development of new treatment for carcinoid syndrome is an extensive process Its advancement is based on attention to three main areas Study Design Data Analysis Patient Focus 32