Developing Best in Class BET Inhibitors for Oncology & AI: from Discovery to the Clinic. Kevin G. McLure, PhD EpiCongress July 2014

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Developing Best in Class BET Inhibitors for Oncology & AI: from Discovery to the Clinic Kevin G. McLure, PhD EpiCongress July 2014

Zenith Epigenetics Overview Formed from Resverlogix as an independent company to develop a novel epigenetic platform for oncology and autoimmune diseases Developing small molecule inhibitors against BET Bromodomains (BET) Clinical studies initiating with ZEN-3365 in 2H 2014 for hematological malignancies & 1H 2015 for solid tumors Strong PD and efficacy effect in multiple in vitro and in vivo models Molecularly defined patient subsets for development in AML, DLBCL, and other hematological and solid tumor indications Broad chemistry platform and IP estate In vivo Proof of Concept in multiple models of autoimmune disorders 2

Phase I BET Inhibitor Oncology Clinical Trials Activity shown with OTX-015 Company Drug Indications Zenith Epigenetics ZEN-3365 AML, LPD Zenith Epigenetics ZEN-3365 Solid GlaxoSmithKline I-BET762 NUT midline carcinoma and other solid tumors GlaxoSmithKline I-BET762 Relapsed, Refractory Hematologic Malignancies Constellation Pharmaceuticals Constellation Pharmaceuticals Constellation Pharmaceuticals CPI-0610 CPI-0610 CPI-0610 Progressive lymphomas Multiple myeloma AML, ALL, acute undifferentiated or biphenotypic leukemia, CML in blast crisis, MDS or MDS/MPN Tensha Therapeutics TEN-010 Advanced solid tumors, NUT midline carcinoma OncoEthix OTX015 Haematological Malignancies Efficacy in lymphoma & AML below MTD

Zenith s broad platform has generated high potency BETi with desirable pharmaceutical properties ZEN-3365 selected as Development Candidate from a panel of excellent compounds Compound ID FRET Brd4(1) FRET Brd4(12) c-myc Proliferation PK (Rat) In Vivo Efficacy MV4-11 Xenograft ZEN-3365 0.04 0.05 0.09 0.10 +++ P ZEN-3309 0.05 0.05 0.46 0.79 +++ P ZEN-3293 0.07 0.12 0.61 0.84 +++ P Novel scaffolds generated by virtual screening SAR Favorable Chemical Properties Chemically distinct from known BET inhibitors Tractable SAR, chemistry allows for fast library synthesis and scale-up, >1300 compounds synthesized Good Pharmaceutical Properties for Lead Molecules Good solubility across ph; High permeability (Caco-2 assay; oral absorption) Good oral bioavailability Strong IP portfolio of novel scaffold diverse from other BET inhibitors in development 4

ZEN-3365 selectively binds BET bromodomains 10 40 nm IC50 for BET bromodomains > 20-fold selectivity for BRD4(1) vs non-bet bromodomains > 200-fold selectivity vs 68 cellular receptors 0/456 kinase domains bound 1 74-185 345-457 632-710 801 BRD2 BD1 BD2 ET BRD3 BRD4 1 34-145 307-419 562-640 726 BD1 BD2 ET 1 58-159 BD1 349-461 BD2 600-678 ET 1 27-138 268-380 500-578 947 1362 BRDT* BD1 BD2 ET BET inhibitors compete with acetylated lysines on histones and transcription factors to block ALPHAScreen binding of BET bromodomains BRD2 BRD2 BRD2 BRD3 BRD3 BRD3 BRD4 BRD4 BRD4 BRDT BRDT Compound (1) (2) (1,2) (1) (2) (1,2) (1) (2) (1,2) (1) (1,2) JQ1 0.08 0.05 0.03 0.04 0.03 0.02 0.06 0.04 0.05 0.15 0.13 I-BET762 0.06 0.01 0.02 0.02 0.02 0.05 0.04 0.01 0.03 0.12 0.11 ZEN-3365 0.03 0.01 0.02 0.01 0.01 0.01 0.02 0.01 0.04 0.10 0.04 5

% of Input ZEN-3365 selectively displaces BRD4 from a superenhancer to selectively repress gene expression ZEN-3365 more potently represses superenhancer driven MYC expression in MM.1S than regular enhancer/promoter driven BCL-2 in MM.1S or regular promoter-driven MYC in MV4-11 cells 20 15 10 5 0 BRD4 Binding to Genetic Control Regions 13.4 DMSO ZEN3365 2.1 1.7 1.2 IgH Super-enhancer BCL-2 promoter Superenhancer 6

ZEN-3365 inhibits expression of MYC and BCL-2 and induces apoptosis in AML and DLBCL mrna IC50 (nm) MV4-11 IC50 (nm) SUDHL-2 IC50 (nm) SUDHL-4 MYC 90 91 176 BCL-2 120 97 140 DMSO ZEN-3365, IC90 1 um AML (MV4-11) 1.5 um 21% 98% DLBCL (SUDHL-2) ZEN-3365 reduces expression of MYC & BCL-2 mrna and protein in AML & DLBCL cell lines Drives cell cycle arrest, apoptosis 7

MV4-11 xenograft model: ZEN-3365 causes durable tumor regression 8

ZEN-3365 potently inhibits proliferation of solid tumor cell lines Cell Line Tumor Type MDA MB 231 Breast 0.37 HT-29 Colon 0.54 SCC-9 Head and Neck 0.32 DMS273 Lung 0.38 BPH1 Prostate 0.31 Tumor type No. cell lines No. IC50 < 2 um CRC 23 15 CRPC 6 4 Breast 16 10 H & N 8 8 Medium sensitivity Higher sensitivity Lower sensitivity 9

ZEN-3365 inhibits MYC expression & CRC proliferation in vitro and inhibits xenograft growth ZEN-3365: ZEN-3365 Tumor inhibits regression, MYC expression complete and HT29 colorectal carcinoma cell proliferation (IC50 response = 66 nm); and sustained is well-tolerated effect up and to see 33 days 58 77% TGI at 30 and 65 mg/kg q.d. 5/2 post cessation of treatment 10

ZEN-3365 is a compelling molecule for clinical development Feature Potency Selectivity PK/PD Pre-clinical Efficacy Toxicity Profile Synthetic Route Comments 50 nm BRD4 ; 90 nm MYC ; 160 nm MV4-11 proliferation Highly selective for BET proteins Does not inhibit kinases No off-target binding to Panlabs 68 receptor panel Orally bioavailable, level and duration of exposure achieved for modulating target and effecting pharmacodynamics Active in multiple hematologic & solid tumor xenografts Active in AML patient derived primary cells Active in multiple hematologic solid tumor cell lines Reversible, manageable, and on target 3 linear high yielding GMP steps, no chromatography steps 11

Phase 1 study of ZEN-3365: First patient in 3Q 2014 2014 2015 2016 2H 1H 2H 1H 2H IND filing Relapsed AML (Dose Escalation + Expansion Cohort) Dose Escalation Lymphoproliferative malignancies (LPM) Expansion Cohort 1: TBD Expansion Cohort 2: TBD Expansion Cohort 3: TBD Solid Tumors (Dose Escalation + MTD Expansion ) 12

BETi gene signature will be used to evaluate PD in clinic Fold change mrna DMSO ZEN003365 DMSO ZEN003365 DMSO ZEN003365 DMSO ZEN003365 DMSO ZEN003365 2.0 PD Marker mrna in Human PBMCs (3 um 6h) 1.5 1.0 0.5 0.0 MYC BCL-2 Gene A Gene B Gene C 13

14 Zenith s biology selectivity platform: developing next generation BD1 selective compounds Zenith s compounds can uniquely dissect BD1 vs BD2 biology Zenith has BD2 selective and pan-selective compounds BD1 [BRD4 (1)] binding is necessary to inhibit MYC expression and proliferation; evaluating whether BD1 is sufficient BD2 [BRD4(2)] binding is not sufficient Compound BRD4(1) BRD4(2) MYC Zenith has irreversible BD1 selective tool compounds Tool to investigate BD1/BD2 selectivity question Covalent irreversible BD1 binding results in persistent inhibition of a subset of BETi regulated gene expression; tool to further dissect BET dependent gene regulation Proliferation ZEN222 3.0 0.06 8.5 14 BD2 ZEN297 1.2 0.02 1.3 3.1 Selective ZEN2135 1.0 0.04 3.1 5.6 ZEN3118 0.09 0.03 0.50 1.16 ZEN3212 0.02 0.01 0.31 0.30 Pan ZEN3228 0.08 0.03 0.73 0.93 Selective ZEN3309 0.06 0.03 0.41 0.67 ZEN3317 0.03 0.01 0.27 0.56 ZEN3365 0.02 0.01 0.09 0.16

Zenith s robust platform has generated promising BET inhibitors for auto-immune disorders Compound ID FRET Brd4(1) FRET Brd4(12) IL6 IL17 PK (Rat) In Vivo Efficacy ZEN-3118 0.07 0.07 0.23 0.19 +++ Rat CIA Mouse EAE ZEN-3309 0.05 0.05 0.23 0.36 +++ Rat CIA ZEN-3228 0.03 0.03 0.54 0.26 +++ Mouse EAE ZEN-3212 0.03 0.06 0.13 0.15 +++ Mouse EAE Separate IP space than ZEN-3365 and oncology molecules Potent BRD4 inhibitors with good drug like properties Inhibits auto-immune-related gene expression in vitro Efficacious in multiple auto-immune in vivo models Well tolerated at efficacious doses 15

ZEN-3118 inhibits human autoimmune-related gene expression in vitro Zenith has demonstrated multiple cell systems where BETi inhibit drivers of autoimmune disease (antigen stimulation of T cells; macrophages; synovial fibroblasts) IL-6, TNFa and IL-17 are implicated in rheumatoid arthritis IL-17 and MCP-1 are implicated in multiple sclerosis 16

ZEN-3118 is efficacious in rat CIA & mouse EAE at well tolerated doses ZEN-3118 shows dose-dependent inhibition of disease progression in a therapeutic rat collageninduced arthritis model of rheumatoid arthritis Good efficacy in experimental autoimmune encephalomyelitis model of multiple sclerosis CIA EAE 17

ZEN-3365 Summary BET bromodomains are a novel epigenetic target which regulate super-enhancer acquired oncogenic drivers such as c-myc and BCL-2 Significant MOA rationale and pre-clinical evidence for BET inhibition in leukemia/lymphomas and solid tumors Broad and differentiated chemistry platform Zenith has novel assays and reagents to increase selectivity for BD1 vs BD2 and to elucidate deeper understanding of the biology of BETi Clinical studies initiating late 3Q 2014 for ZEN-3365 for hematological malignancies Strong PD and efficacy effect in multiple in vitro and in vivo models Molecularly defined patient subsets being identified for expansion cohorts Solid tumor Phase 1 initiating 1H 2015 18