AVX-470, an Orally Delivered Anti-TNF Antibody for Treatment of Acute Ulcerative Colitis: Results of a First-in- Human Trial

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AVX-470, an Orally Delivered Anti-TNF Antibody for Treatment of Acute Ulcerative Colitis: Results of a First-in- Human Trial M Scott Harris 1, Deborah Hartman 1, Sharon Spence 1, Sally Kennedy 1, Theodore Ptak 2, Ronald Pruitt 3, Severine Vermeire 4, Barbara Fox 1 1 Avaxia Biologics, Lexington, United States; 2 Toronto Digestive Disease Associates, Toronto, Canada; 3 Nashville Medical Research Institute, Nashville, United States; 4 University Hospital Gasthuisberg, Leuven, Belgium

Disclosures I am currently consult for Avaxia Biologics, the sponsor of this study. I also disclose that I have consulted for or have had financial interests in the following companies or organizations in the past two years: Ardelyx Bill and Melinda Gates Foundation Biomedical Systems CIPAC CymaBay Drais Pharmaceuticals Kala Pharmaceuticals Lyric Pharmaceuticals Neurogastrx Ocera Therapeutics Orchid Pharmaceuticals PATH-One World Health Rhythm Pharmaceuticals Symbiomix Theravance White Sands Pharmaceuticals ZS Pharma

Disadvantages of Parenteral Anti-TNF Antibodies PARENTERAL ANTI-TNF Abs Parenterally administered Infusion reactions common Distribute throughout the body Cause systemic immunosuppression May develop anti-drug antibodies Drugs lose effectiveness

Advantages of Oral Gut-Targeted Anti-TNF Antibodies PARENTERAL ANTI-TNF Abs ORAL Anti-TNF Abs Parenterally administered Infusion reactions common Orally administered Distribute throughout the body Locally active Works at site of disease Cause systemic immunosuppression May develop anti-drug antibodies Drugs lose effectiveness No systemic immunosuppression Overcomes major drawback of anti-tnfs Anti-drug antibodies not induced Potential for better longterm efficacy

AVX-470 Milk-based polyclonal anti-tnf antibodies for oral delivery Pregnant dairy cows immunized with recombinant human TNF Antibody is purified from colostrum (early milk) Approximately 0.3-0.9% by weight is TNF-specific Antibody retains activity in GI tract Bovine milk antibodies are inherently stable to intestinal digestion Enteric coating designed to release drug at ph 6.0 Long history of safe oral exposure to bovine immunoglobulin Dairy products, meat, whey-based food additives Lactose free, no risk of BSE in dairy products

First-in-Human Trial of AVX-470 Study Endpoints and Objectives Endpoint Objective Primary Safety Assess safety in adult UC patients Assess systemic exposure Secondary Exploratory Pharmacokinetics Immunogenicity Pharmacodynamics Clinical efficacy Confirm stability of AVX-470 in human GI tract Assess ability of AVX-470 to penetrate colonic mucosa of UC patients Assess induction of anti-drug antibodies Measure TNF levels in tissues Assess systemic markers of disease activity (CRP, IL-6) Assess clinical and endoscopic remission and response

Overview Screening Double-blind treatment F/U Week -3 0 4 Colonoscopy-Bx Biomarkers Colonoscopy-Bx Biomarkers 37 patients with active UC 13 centers in US, Canada, Belgium and Hungary Placebo-controlled, double-blind 4 weeks treatment, 3 ascending-dose cohorts 0.2 g/d, 1.6 g/d, and 3.5 g/d in divided dose 2x or 3x daily Within each cohort, patient randomized 3:1 to AVX-470 or placebo Colonoscopy and biopsy by central reading at baseline and Week 4

Inclusion and Exclusion Criteria Men and women ages 18-75 Total Mayo score 5-12, inclusive Mayo endoscopic subscore 2 at or above 15 cm from anus Permitted medications: Concomitant use of 5-ASA, corticosteroids (up to prednisone 20mg equivalent), immunosuppressives Prior use of TNF agents (secondary failure only)

Definitions Clinical Response Reduction of 3 points on the total Mayo score and an overall decrease of at least 30%, plus a decrease in the rectal bleeding subscore of at least 1-point or an absolute rectal bleeding score of 1 or less Clinical Remission Total Mayo score of 2 or lower and no subscores higher than 1 Endoscopic Response 1-point decrease in Mayo endoscopic subscore Endoscopic Remission Mayo endoscopic subscore of 0-1

Colonoscopy UCEIS (Ulcerative Colitis Index of Severity) scored in 3 segments Proximal colon (ascending and transverse colons) Descending colon and sigmoid (above 15 cm) Rectum (below 15 cm)` Biopsies obtained from worst area of inflammation in each segment. Mucosal bovine Ig and TNF assessed by immunohistochemistry

Study Enrollment and Disposition Parameter Placebo 0.2 g/d 1.6 g/d 3.5 g/d Pooled Active Overall Enrolled 9 8 12 8 28 37 Treated 9 8 12 7 27 36 Completed study 8 8 11 6 25 33 Reason for Early Termination (ET): Withdrew consent 1 a 1 a 1 b 2 3 Investigator opinion 1 c 1 1 A uncontrolled UC activity during Week 1 of treatment; B patient withdrew before first dosing; C recurrence of nausea and dysphagia for medications, established pre-study, precluded continued study participation

Demographics Parameter Overall (n = 36) Months since diagnosis, mean (SD) 87.5 (86.0) Site of disease Rectum 2.8% Left colon 50.0% Entire colon 47.2% Prior and Concomitant Meds 5-ASA 77.8% Corticosteroids AZA/ 6-MP 55.6% A 41.7% B Prior anti-tnf use (secondary failures only) 33.3% Total Mayo score, mean (SD) 8.1 (1.2) A concurrent use 36.1%; B concurrent use 30.6%

Treatment-Emergent Adverse Events (AEs) Parameter Placebo (n = 9) 0.2 g/d (n = 8) 1.6 g/d (n = 12) 3.5 g/d (n = 7) Pooled Active (n = 27) Overall (n = 36) All, n (%) A 7 (77.8) 3 (37.5) 6 (50.0) 5 (71.4) 14 (51.9) 26 (72.2) AEs (Total) B 13 (100.0) 8 (100.0) 13 (100.0) 13 (100.0) 34 (100.0) 47 (100.0) Mild 9 (69.2) 7 (87.5) 10 (77.0) 9 (69.2) 26 (76.5) 35 (74.5) Moderate 4 (30.8) 1 (12.5) 2 (15.9) 4 (30.8) 7 (20.6) 12 (23.4) Severe 0 (0.0) 0 (0.0) 1 (7.7) 0 (0.0) 1 (2.9) 1 (2.1) SAEs, n (%) A 0 (0.0) 0 (0.0) 1 (8.3) 0 (0.0) 1 (3.7) 1 (2.8) AEs of Special Interest C 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) A no. of patients experiencing AEs, n (%); B no. of AEs, n (%); C allergic reaction or opportunistic infection Worsening UC on Day 3 of study drug;

Pharmacokinetics Minimal Levels of Bovine Ig in Serum Treatment Group # positive (%) Pre-dose (Visit 3) Post-dose (Visit 7A) Bovine Ig Bovine Ig Anti-TNF range (µg/ml) # positive (%) range (µg/ml) range (µg/ml) Placebo 0/8 (0) - 1/8 (13%) 0.424 -- 0.2 g/d 2/8 (25%) 0.418-0.653 1/8 (13%) 0.430 0.0013 1.6 g/d 0/11 (0) - 2/11 (18%) 0.551 0.589 0.0017-0.0018 LLOQ = 0.391 µg/ml 3.5 g/d 1/6 (17%) 0.481 4/6 (67%) 0.412 0.990 0.0012-0.0030 Bovine Ig detectable before dosing, presumably of dietary origin Concentrations not significantly different from baseline levels and remained 1000x lower than levels associated with clinical activity

Bovine Ig in Colon Tissue Bovine Ig Detected by IHC in Colon Lamina Propria Placebo (105004) Pre-Dosing (502003) Post-Dosing (502003) Bovine Ig staining observed in baseline samples and after 4 weeks dosing All colon regions Every patient With or without AVX-470 dosing With or without endoscopic disease activity Submucosa stained when present

Bovine Ig in Stool Patients with Bovine Ig in stool Levels of Bovine Ig in stool (ng/g) 80 3500 % of patients 60 40 20 0 Placebo AVX-470 0.2 AVX-470 1.6 AVX-470 3.5 0.2 g/d 1.6 g/d 3.5 g/d Bovine Ig level, ng/g (average, SEM) 3000 2500 2000 1500 1000 500 0 Placebo AVX-470 0.2 g/d g AVX-470 1.6 g/d g AVX-470 3.5 g/d g 16 All pre-dose samples were negative. Post-dosing stool samples with highest levels of bovine Ig contained anti-tnf activity.

Immunogenicity HABA Concentrations by Treatment Arm 40.0 Mean Percent Inhibition Pre- and Post Treatment First dose Last dose 35.0 30.0 Inhibition (%) 25.0 20.0 15.0 10.0 0.2 g/d 0.1 g AVX-470 BID 1.6 g/d 0.8 g AVX-470 BID 3.5 g/d 1.2 g AVX-470 TID Placebo Placebo 5.0 0.0 0 1 2 3 4 5 6 7 8 Visit

Clinical and Endoscopic Remission Parameter Placebo (n = 9) 0.2 g/d (n = 8) 1.6 g/d (n = 12) 3.5 g/d (n = 7) Pooled Active (n = 27) Clinical Response 1/9 (11.1) 3/8 (37.5) 2/12 (16.7) 2/7 (28.6) 7/25 (25.9) Clinical Remission 0 0 0 1/7 (14.3) 1/27 (3.7) Endoscopic Response 0 0 1/12 (8.3) 1/7(14.3) 2/27 (7.4) Endoscopic Remission 0 0 1/12 (8.3) 1/7 (14.3) 2/27 (7.4) expressed as n/n (%)

UC Endoscopic Index of Severity (UCEIS) (0-8) Parameter Placebo (n = 9) 0.2 g/d (n = 8) 1.6 g/d (n = 12) 3.5 g/d (n = 7) Pooled Active (n = 27) Proximal Colon Baseline 2.8 0.6 1.0 3.3 1.5 Week 4 3.5 1.5 1.4 2.5 1.7 from Baseline A +0.7 +0.9 +0.4-0.8 * +0.3 * p = 0.14, student t-test Descending Colon and Sigmoid (above 15 cm) Baseline 4.3 3.8 3.4 4.3 3.8 Week 4 4.3 3.6 3.8 4.0 3.8 from Baseline A 0.0-0.1 +0.4-0.3 0.0 A mean of individual patient changes

Changes in Serum CRP Across Treatment Arms and Treatment Duration Change over 4 weeks Time course of change (3.5 g/d) Change in Serum CRP (µg/ml) p = =0.052 Change in Serum CRP (µg/ml) 20 10 0-1 0-2 0-3 0 p p = =0.058 W eek 4 W eek 5 W eek 6 W eek 7 3.5 g/day vs placebo, paired analysis Week 4 vs baseline CRP,paired analysis

Changes in Serum IL-6 Across Treatment Arms 15 IL-6 Change in Serum IL-6 pg/ml 10 5 0-5 -1 0-1 5 p = 0.015 Placebo 0.2 g/day 1.6 g/day 3.5 g/day 3.5 g/day vs placebo, paired analysis

Changes in Tissue TNF Across Treatment Arms Fold Change (IHC staining index) 20 10 0-10 -20-30 p = 0.047 Placebo 0.2 g/day 1.6 g/day 3.5 g/day 3.5 g/day vs placebo, un-paired group analysis of all colon segments

Conclusions 1. AVX-470 was well-tolerated with no drug-related SAEs, opportunistic infections or allergic reactions. 2. AVX-470 was stable in passage through the GI tract and was not associated with significant systemic exposures. No immunogenicity was observed. 3. Prior dietary exposures interfered with detection of changes in tissue levels. However, bovine Ig was shown to penetrate the colonic mucosa, even in areas of normal endoscopic activity. 4. Efficacy trends were observed across multiple parameters (clinical, endoscopic, biomarker) of disease activity, most favoring the 3.5g/d dose group, with a proximal to distal gradient of response. 5. Future studies will examine the effects of higher doses and longer dose treatment duration.