An Innovative Treatment Option for Patients with Recurrent Nasal Polyps

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An Innovative Treatment Option for Patients with Recurrent Nasal Polyps Burden of illness and management of Chronic Sinusitis with Nasal Polyps Continuum of care and polyp recurrence Clinical and health economic value of SINUVA for treatment of nasal polyps 1

Societal Burden of Chronic Sinusitis (CS) Affects 29 million Americans 1 Increased incidence of depression 2 $10,077 per year in lost productivity costs 3 39 Sleep quality comparable to obstructive sleep apnea 3 days per year of work missed 3 2016 direct and indirect costs of $21 Billion 3 1 Summary health statistics tables for US adults: National Health Interview Survey, 2015. Table A-2. https://ftp.cdc.gov/pub/health_statistics/nchs/nhis/shs/2015_shs_table_a- 2.pdf. (accessed 2-22-2018). 2 Campbell, et al; Depression symptoms and lost productivity in chronic rhinosinusitis, Annals of Allergy, Asthma and Immunology, March, 2017, Volume 118, Issue 3, 286-289. 3 Deconde AS, Soler Z. CRS: Epidemiology and burden of disease; American Journal of Rhinology and Allergy 30, 134-139, 2016. Nasal Polyps Nasal polyps are soft, painless, noncancerous growths lining the nasal passages or sinuses. 1 Caused by chronic inflammation due to asthma, recurring infection, allergies, drug sensitivity or certain immune disorders. 1 Polyps lead to breathing problems, facial pain/headache, anosmia and frequent infections. 1 Nasal Polyps are present in ~31% of patients with Chronic Sinusitis. 2 Patients with Chronic Sinusitis and nasal polyps may persist for a longer duration, be relatively recalcitrant to medical management, more frequently lead to surgical management and/or require more surgeries to address. 3 1 Source: https://www.mayoclinic.org/diseases-conditions/nasal-polyps/symptoms-causes/syc-20351888 (accessed 2-15-2018) 2 Stein NR, et al. Revision rates and time to revision following endoscopic sinus surgery: A large database analysis. Laryngoscope 2017, Jul 8. doi: 10.1002/lary.26741. 3 Hulse KE, et al. Pathogenesis of nasal polyposis. Clin Exp Allergy. 2015 February, 45(2): 328-346. doi:10.1111/cea.12472. 2

Current Treatment Continuum Symptom Resolution is Most Important to Patients, Public and Practitioners 1 Maximal Medical Therapy Employed Upon Diagnosis Surgery Performed for Patients that Fail MMT 257,000 sinus surgeries are performed in US per year. 2 Recurrence of Nasal Polyps 38% of patients experience polyp recurrence within 1 year post-op 4 Post-operative Symptoms and Complications Managed Patients whose cavities became normal on inspection after surgery and postop care are much less likely to require revision surgery. 3 1 Orlandi et al; Cochrane Corner: Extracts from The Cochrane Library: Intranasal Steroids for CRS. Otolaryngology-Head and Neck Surgery 2017, Vol. 156(3)397-402. 2 Bhattacharyya N. Ambulatory sinus and nasal surgery in the United States: demographics and perioperative outcomes. Laryngoscope 2010; 120:635-638. 3 Kennedy DW, Wright ED, Goldberg AN. Objective and subjective outcomes in surgery for chronic sinusitis. Laryngoscope. 2000 Mar;110. 4 DeConde et al. Prevalence of Polyp Recurrence after ESS for CRSwNP; Laryngoscope, 127:550-555, 2017. Prevalence of Polyps Post Surgery The rate of nasal polyp recurrence was documented in a study of 363 patients having undergone ESS with polypectomy. For patients in the study, 244 underwent graded postoperative endoscopies during the 18 month follow-up period. 1 Polyp Recurrence 6 months 35% 12 months 38% 18 months 40% 10% 15% 20% 25% 30% 35% 40% 45% 1 DeConde et al. Prevalence of Polyp Recurrence after ESS for CRSwNP; Laryngoscope, 127:550-555, 2017. 3

A NEW TREATMENT OPTION SINUVA (mometasone furoate) Sinus Implant FDA Approval Type Drug FDA Approval Path NDA FDA Approval Date December 8, 2017 Drug Component Mometasone Furoate 1,350 µg Drug Release Period 90 days FDA INDICATION: The SINUVA Sinus Drug Implant is indicated for treatment of nasal polyps in patients 18 years of age who have had ethmoid sinus surgery. Ethmoid Sinus Pre-implant Immediately Following Insertion 6 Weeks Post-treatment The images shown represent a single patient outcome and may not be typical. The average nasal obstruction reduction score was -0.80 on a scale of 0 to 3 and the average polyp grade reduction score was -0.56 on a scale of 0 to 4 for patient in the experimental arm of the RESOLVE II study. 1 1 SINUVA- Prescribing information Dec 2017. http://www.intersectent.com/wp-content/uploads/sinuva-prescribing-information.pdf 4

Differentiation of Drug-Eluting Sinus Implants PROPEL (Mometasone Furoate Sinus Implant, 370 µg) FDA-Cleared as DEVICE via PMA in 2011 Clinical Application: Maintain sinus patency following surgery Reduce inflammation Decrease need for medical and surgical re-intervention following surgery Clinical Setting: Following surgery in O.R. (HOPD or ASC) Adjunct surgical supply cost to facility SINUVA (Mometasone Furoate Sinus Implant, 1,350 µg) FDA-Approved as a DRUG via NDA in 2017 Clinical Application: Treatment of nasal polyps in patients 18 years of age who have had ethmoid sinus surgery Clinical Setting: Office/Clinic alternative for patients with recurrent disease eligible for revision surgery SINUVA Clinical Evidence Program Pilot Study 1 PK 2 RESOLVE 3,4* RESOLVE II 5 Non-Randomized Open Label Single Cohort (SINUVA Implant) Non-Randomized Single Cohort Pharmacokinetic Study Randomized 1:1 Blinded Controlled: Parallel Groups (SINUVA Implant vs. sham) Randomized 2:1 Blinded Controlled: Parallel Groups (SINUVA Implant vs. sham) n = 12 patients 4 sites Follow-up: 6 months n = 5 patients 1 site 30 days n = 100 patients 18 sites 6 months n = 300 patients 34 sites 3 months 1 Lavigne F, et. al. Steroid-eluting sinus implant for in-office treatment of recurrent nasal polyposis: a prospective, multicenter study. Intl Forum Allergy & Rhinol. 2014; 4(5):381-389. 2 Ow R, Groppo E, et al. Steroid-eluting sinus implant for in-office treatment of recurrent polyposis: a pharmacokinetic study. Intl Forum Allergy Rhinol. 2014; 4(10) 3:816-822. 3 Han J, Forwith K, Smith TL, et al. RESOLVE: a randomized, controlled, blinded study of bioabsorbable steroid-eluting sinus implants for in-office treatment of recurrent sinonasal polyposis. Intl Forum Allergy Rhinol. 2014; 4(11):891-870. 4 Forwith, et al. RESOLVE: bioabsorbable steroid-eluting sinus implants for in-office treatment of recurrent sinonasal polyposis after sinus surgery:6-month outcomes; Int. Form Allergy Rhino, 2016, 6: 573-581. (Safety study) 5 Kern RC, et al. A phase 3 trial of mometasone furoate sinus implant for chronic sinusitis with recurrent nasal polyps. Int Forum Allergy Rhinol. 2018 Jan 19. doi: 10.1002/alr.22084. PMID: 29350840. (Efficacy study) *Data on file, Intersect ENT. RESOLVE CSR R 28011. Version: 1.0. February 2016. 5

RESOLVE II: Study Methods Patients Clinical Sites Randomization 300 34 (all in US) 2:1 Screening Treatment Control Baseline Procedure Day 14 Four follow-up evaluation visits Day 30 Day 60 Day 90 ediary Treatment group: in-office bilateral implant placement in the ethmoid sinuses Control group: in-office bilateral sham procedure; patients blindfolded and ear-muffed All patients used mometasone furoate nasal spray (MFNS) once daily (200 mcg) through day 90 follow-up Kern RC, et al. A phase 3 trial of mometasone furoate sinus implant for chronic sinusitis with recurrent nasal polyps. Int Forum Allergy Rhinol. 2018 Jan 19. doi: 10.1002/alr.22084. PMID: 29350840 RESOLVE II: Baseline Characteristics Treatment Control Total no. of subjects 201 99 Male 63% 57% Age (y) 51 48 Medical history: Asthma Allergic rhinitis Aspirin exacerbated respiratory disease ESS history: Number of prior ESS 1 2 or more CRS symptoms despite ongoing use of INCS Nasal obstruction/blockage Post-nasal discharge Altered sense of smell/taste Facial pain/pressure/fullness 74% 77% 15% 41% 59% 92% 91% 87% 38% 62% 80% 17% 41% 59% 91% 84% 90% 44% Kern RC, et al. A phase 3 trial of mometasone furoate sinus implant for chronic sinusitis with recurrent nasal polyps. Int Forum Allergy Rhinol. 2018 Jan 19. doi: 10.1002/alr.22084. PMID:29350840 6

RESOLVE II: Statistically Significant Outcomes Nasal obstruction/congestion score change (baseline to day 30, patient reported) Bilateral polyp grade change (baseline to day 90 by independent blinded panel) Patients still indicated for repeat sinus surgery at day 90 Percent ethmoid sinus obstruction (baseline to day 90 by independent blinded panel) Nasal obstruction/congestion score change (baseline to day 90, patient reported) Decreased sense of smell score change (baseline to day 90, patient reported) Treatment (mean) Co-Primary Efficacy Endpoints Secondary Efficacy Endpoints Control (mean) Btw Group Difference P value -0.80-0.56-0.23 0.0074-0.56-0.15-0.35 0.0073 78/200 39% 62/98 63% 0.0004-11.3-1.9-7.96 0.0007-0.93-0.69-0.27 0.0248-1.20-0.76-0.46 0.0470 Kern RC, et al. A phase 3 trial of mometasone furoate sinus implant for chronic sinusitis with recurrent nasal polyps. Int Forum Allergy Rhinol. 2018 Jan 19. doi: 10.1002/alr.22084. PMID:29350840 * p-value < 0.05 Economic Value Proposition The clinical benefits of SINUVA have been demonstrated as an alternative to surgery in patients with recurrent nasal polyps. In RESOLVE II, control pts had 2.7x higher risk of remaining indicated for revision surgery than treated patients at six months. 1 $3,000 Cost per implant: $1,275 (assumes bilateral) Cost of related services: ~$450 Surgery $14,175 3 1 Kern RC, et al. A phase 3 trial of mometasone furoate sinus implant for chronic sinusitis with recurrent nasal polyps. Int Forum Allergy Rhinol. 2018 Jan 19. doi: 10.1002/alr.22084. PMID: 29350840 2 CMS National Average Payment for CPT 31231/31237. Assumes bilateral procedure with applicable payment reduction plus cost of two SINUVA implants @ $1,275 WAC. 3 Tina D. Hunter, Adam S. DeConde & R. Peter Manes (2018): Disease-related expenditures and revision rates in chronic rhinosinusitis patients after endoscopic sinus surgery, Journal of Medical Economics, DOI: 10.1080/13696998.2018.1452748. (cost of revision surgery $13,549 inflation adjusted to 2018) 7

SINUVA Offers a Safe, Non-surgical Option to Patients With Recurrent Polyp Disease Proposed Payor Coverage Criteria for SINUVA Diagnosis of Nasal Polyps Over age 18 At least one prior ethmoid sinus surgery (note: prior ethmoidectomy is required to accommodate implant size/shape) Suboptimal response to appropriate medical therapy including: o INCS (intranasal corticosteroids) and/or oral steroids (unless ineligible or refused due to contraindications or intolerance) 8