AECOM, Bronx, NY; 2 Incyte Corporation, Wilmington, DE; 3 dgd Research, San Antonio, TX; 4 Profil Institute, San Diego, CA

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INCB013739, a Selective Inhibitor of 11β-Hydroxysteroid Dehydrogenase Type 1 (11βHSD1), Improves Insulin Sensitivity and Lowers Plasma Cholesterol Over 28 Days in Patients with Type 2 Diabetes Mellitus Meredith Hawkins 1, Deborah Hunter 2, Preeti Kishore 1, Sherwyn Schwartz 3, Marcus Hompesch 4, Gregory Hollis 2, Richard Levy 2, Bill Williams 2, Reid Huber 2 1 AECOM, Bronx, NY; 2 Incyte Corporation, Wilmington, DE; 3 dgd Research, San Antonio, TX; 4 Profil Institute, San Diego, CA

11βHSD1 Activity Increases Local Cortisol Concentrations in Key Metabolic Tissues Inactive 11βHSD1 11 11 Active 11βHSD1 increases local cortisol production in specific tissue types such as adipose, liver, skeletal muscle, and the pancreas 11βHSD1 activity within the splanchnic bed produces as much as 30% of the amount of cortisol as is produced by adrenal biosynthesis Adipose tissue 11βHSD1 activity has been shown to be upregulated in human obesity and insulin resistance

11βHSD1 Activity in Adipose Tissue May Drive Metabolic Disease and Cardiovascular Risk Lessons from Rodent Models 3-fold increase in adipose 11βHSD1 as seen in human obesity Blood Glucose (mg/dl) Glucose Intolerance 3x 11βHSD1 Normal 11βHSD1 Time (min) Metabolic Syndrome Insulin resistance Hyperglycemia Triglycerides Body weight Visceral fat mass Blood pressure Could intracellular cortisol production by 11βHSD1 underlie the diverse cardio-metabolic phenotype that associates with obesity? Basu et al. Diabetes 2004; Lindsay et al. JCEM 2003; Masuzaki et al. Science 2001; Masuzaki et al. JCI 2003

INCB013739: A Potent and Selective Small Molecule Inhibitor of 11βHSD1 INCB013739 is a non-steroidal, small molecule inhibitor of 11βHSD1 1.1 nm potency in cellular assays > 1000-fold selective over 11βHSD2, GR, and MR INCB013739 is orally bio-available with a plasma T 1/2 of 11 h in man INCB013739 is pharmacodynamically active in adipose tissue of rhesus monkeys after oral dosing Cellular INCB013739 Potency N=45 Rhesus monkey adipose inhibition Vehicle INCB013739

Adipose Tissue and Liver Pharmacodynamic Activity of INCB013739 After Oral Dosing in Obese Subjects Adipose Tissue 11βHSD1 Activity (ex vivo whole tissue assay) Liver 11βHSD1 Activity (Oral Cortisone Challenge) Adipose Tissue HSD1 Activity (%) 140 120 100 80 60 40 20 0 0h 4h 12h 0h 4h 12h Placebo INCB013739 50 mg Plasma Cortisol (μg/dl) 25 20 15 10 5 Baseline INCB013739 50 mg 0 0 1 2 3 4 Time Post-Challenge (h)

INCB 13739-201: Phase 2a Evaluation of INCB013739 in Patients with Type 2 Diabetes 28-Day Phase IIa study in Type 2 Diabetic patients Eligible subjects were either naïve to treatment or withdrawn from anti-hyperglycemic medication for 14 days (TZDs excluded) 100 mg INCB013739 BID vs. Placebo (2:1 randomization) Dose selected to completely inhibit splanchnic 11βHSD1 activity 24/7 Primary Objectives Safety and tolerability Insulin sensitivity as determined by stepped hyperinsulinemic clamp Secondary Objectives Fasting blood glucose Fasting plasma lipid profiles Trough INCB013739 exposures on days 14 and 27

Stepped Hyperinsulinemic, Euglycemic, Pancreatic Clamp to Assess Hepatic and Peripheral Insulin Sensitivity Variable glucose Glucose tracer, Somatostatin, Glucagon Insulin titration to euglycemia Basal Low High 200 +150 mu/m 2 /min 400 Plasma Glucose (mg/dl) 150 100 T=0 T=120 T=240 T=360 300 200 100 Plasma Insulin (μu/ml) Individualized Insulin Requirements +20 mu/m 2 /min 50 0 T= -5hr Tonelli et al. Diabetes 2004 EGP Rd

INCB 13739-201: Study Demographics (End-of-study analysis, PP) @ Screening Visit: Age (yr) Sex BMI (kg/m 2 ) A1c (%) FPG (mg/dl) No. on OADs @ Baseline Visit: FPG (mg/dl) LDL (mg/dl) HDL (mg/dl) Cholesterol (mg/dl) Triglyceride (mg/dl) Placebo (n=9) 53.1 (8.5) 1 female, 8 male 34.2 (3.8) 7.2 (0.6) 134 (26) 6 [3M, 1M+S, 2S] 170 (41) 108 (34) 38 (9) 181 (41) 177 (94) INCB013739 (n=22) 55.7 (7.1) 6 female, 16 male 32.0 (3.3) 7.7 (1.1) 156 (36) 17 [10M, 3M+S, 4S] 190 (39) 114 (36) 38 (8) 189 (41) 188 (89) Values are mean (SD)

INCB 13739-201: Morning Trough Exposures of INCB013739 IC 90 IC 50 Phase 1 100 mg BID Day 14 Trough Day 27 Trough

INCB 13739-201: Safety and Tolerability Summary 100 mg INCB013739 BID was safe and very well tolerated No serious adverse events Most frequent AEs occurring in more than one subject: headache (6), nausea (4), hyporeflexia (2), diarrhea (2), upper respiratory tract infection (2); all mild to moderate in intensity headache, nausea, and hyporeflexia also reported in PBO arm No LFT abnormalities observed No incidences of hypoglycemia observed No other trends in vital signs, ECGs, or laboratory parameters observed

INCB 13739-201: Plasma ACTH and Cortisol (End-of-study analysis, PP) Morning Plasma ACTH Morning Plasma Cortisol pg/ml (ULN = 58) 60 50 40 30 20 10 +9.5 pg/ml P=0.056 ug/dl (ULN = 30) 30 25 20 15 10 5 0 Day -2 Day 27 Day -2 Day 27 0 Day -2 Day 27 Day -2 Day 27 Placebo INCB013739 Placebo INCB013739

INCB 13739-201: Primary Clamp Endpoints (End-of-study analysis, PP) Mean change from baseline (mg/kg/min) 1.5 1.0 0.5 0.0-0.5-0.614 mg/kg/min P=0.018 +0.752 mg/kg/min P=0.177-1.0 PBO (3) INCB013739 (15) PBO (4) INCB013739 (14) EGP (Low Insulin) Rd (High Insulin)

INCB 13739-201: Secondary Glucose, Lipid Endpoints (End-of-study analysis, PP) P=0.075 P=0.007 P=0.001 0-10 -20-30 -40-50 -60-70 PBO-adjusted FPG change from baseline (LS Mean; mg/dl) -80 All subjects FPG > 160 mg/dl 0-10 -20-30 -40 PBO-adjusted change from baseline (LS Mean; mg/dl) -19.5-45.0 (15A/4P) -50-26.9-22.3-12.8 CHOL LDL TG HDL

INCB 13739-201: Exploratory Blood Pressure Evaluation (End-of-study analysis, PP) Mean change from baseline (mm Hg) 8 6 4 2 0-2 -4-6 -8-10 -12-6.4 mm Hg -3.7 mm Hg PBO INCB013739 PBO INCB013739 Systolic BP Diastolic BP

Summary and Conclusions 100 mg INCB013739 BID was safe and very well tolerated over 28 days in patients with type 2 diabetes mellitus Compensatory ACTH pharmacology with normal cortisol levels observed following INCB013739 therapy INCB013739 therapy led to statistically significant improvements in: hepatic insulin sensitivity plasma LDL-cholesterol plasma total-cholesterol Trends for improvements also observed in fasting plasma glucose, peripheral insulin sensitivity, plasma triglycerides, blood pressure INCB013739 has the potential to target multiple macrovascular risk factors in concert in patients with type 2 diabetes mellitus INCB013739 is currently being studied in a dose-ranging Phase 2b study in T2D patients whose glucose levels are not adequately controlled by metformin monotherapy

Acknowledgements Albert Einstein College of Medicine Preeti Kishore Do-Eun Lee Laura Clintoc Meredith Hawkins Profil Institute Heidi Mueller Alexa Kollmeier Linda Morrow Khin Win Adalberto Barba Marcus Hompesch dgd Research Sherwyn Schwartz Yale Varman Samuel Incyte Corporation Bill Williams Richard Levy Greg Hollis Deborah Hunter Robert Flores Kevin Hou William Sun Swamy Yeleswaram Xuejun Chen Reid Huber