Enhanced cancer vaccine effectiveness with NKTR-214, a CD122 biased cytokine

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SMi Immuno-Oncology, London Loui Madakamutil, Ph. D Vice President, Head for Discovery Enhanced cancer vaccine effectiveness with NKTR-214, a CD122 biased cytokine Sept 26-27 2018

Nektar Therapeutics San Francisco, CA Huntsville, AL Hyderabad, India 100,000-sq.ft. State-of-the-Art R&D Center 114,000-sq.ft. Manufacturing Facility 88,000-sq.ft. R&D Support Facility Biopharmaceutical company leveraging polymer conjugation technologies to develop new therapies in multiple disease areas Strong heritage of partnership with top biopharma companies ~ 500 employees R&D Center and Headquarters in San Francisco, CA Pharmaceutical Development & Manufacturing in Huntsville, AL R&D support in Hyderabad, India 2

Evolution of Nektar s Polymer Conjugation Technology R&D 2001 2003 2007 2014 Small molecule NKTR-181 Hepatitis C Acromegaly Chronic kidney disease anemia Opioid induced constipation NKTR-262 2002 2004 2008 2015 Biologics Neutropenia Wet macular degeneration Crohn s Hemophilia A NKTR-214 NKTR-255 NKTR-358 Hepatitis C Large Molecule Half-life Extension Concentration in Diseased Tissue Small Molecule Compartmental Distribution Bias Receptor Activity 3

Focus of Nektar Pipeline Immuno-oncology Immunology Chronic Pain Target the innate and adaptive immune system NKTR-214 (Co-Develop and Co-Promote) CD122-Biased Agonist - Multiple Solid Tumors In Phase 1/2 Trials NKTR-262 (Wholly-Owned) TLR 7/8 Agonist - Multiple Solid Tumors Phase 1 study opened for recruitment Q1 2018 NKTR-255 (Wholly-Owned) IL-15 Receptor Agonist IND 2019 Harness the immune system to fight autoimmune disease NKTR-358 (Co-Promote) T Regulatory Cell Stimulator - Lupus - Crohn s Disease - Rheumatoid Arthritis - Psoriasis In Phase 1 Studies: - SAD ongoing - MAD in Lupus patients Initiated April 2018 Potentially to help prevent the abuse and addiction NKTR-181 (Wholly-Owned) New Opioid Agonist Molecule - Pain relief without the high levels of euphoria that can lead to abuse and addiction with standard opioids - Chronic low back pain in opioid-naïve adult patients - NDA Submitted Q2 2018 4

Harnessing the IL-2 Pathway the Right Way to Increase TILs Prodrug (inactive) Prodrug design to enable safe, outpatient dosing Q2w or Q3w Active cytokine species bias signaling through the heterodimeric IL-2 receptor pathway (IL-2Rβγ) Biased and sustained signaling to preferentially activate and expand effector CD8+ T and NK cells over Tregs in the tumor microenvironment 5

NKTR-214: Prodrug design to improve Risk/Benefit Profile NKTR-214 is a prodrug that is inactive which generates biased IL-2 with increased potency NKTR-214 increases the quality and quantity of the T cell response in tumor bearing mice Clin Cancer Res; 22(3), February 1, 2016 6

NKTR-214 drives greater T cell expansion and clonality in a murine tumor model along with check point inhibitors Langowski, J., et al., AACR 2016, ABS 558 7

PIVOT-02: Best Percent Change in Target Lesions by PD-L1 Deepening of Responses Over Time SITC 2017 (Data Cut: Nov 2, 2017) ASCO 2018 (Data Cut: May 29, 2018) 26/36 (72%) Reduction in Target Lesions 30/37 (81%) Reduction in Target Lesions * Best overall response is PD (SD for target lesions, PD per non-target lesions) # Best overall response is SD (PR for target lesions, PD per new lesion at confirmatory scan) + Best overall response is PR (CR for target lesions, non-target lesions still present) Data are shown for patients with post-baseline scans that included assessment of target lesions. Diab, A. et al., SITC, 2017. Abstract # Diab, A. et al., ASCO, 2018. Oral Presentation 8

NKTR-214: A robust CD8 T cell activator that shows promising clinical activity NKTR-214 is a CD122 biased agonist that stimulates IL-2 receptor pathway NKTR-214 demonstrates single agent activity and shows synergistic activity with checkpoint inhibitors in tumor models Enhances CD8 T cells and decreases T regs and provides a favorable immune milieu Expands T cells and induces greater clonality when combined with anti-pd-1 demonstrating antigen specific expansion NKTR-214 in combination with nivolumab showed encouraging anti-tumor activity with notable ORR in PD-L1 negative patients Ongoing enrollment in PIVOT-02 continuing for additional tumor types in I-O naïve and refractory settings 9

Phases of Immune response that need attention during a cancer vaccine design Conventional vaccine (prophylactic) Priming Phase Expansion Phase Effector Phase Memory Phase Cancer Immuno-editing Elimination Equilibrium Escape Expansion Phase Cancer Vaccine (therapeutic) Priming Phase Expansion Phase Effector Phase Sequelae of immune events 10

Cancer vaccine forms an integral part of the treatment protocol Escape Priming Phase Expansion Phase Effector Phase Deploy Checkpoint inhibitors to prevent tumor cells from escaping immune system Stimulate patients immune system against tumor antigens Stimulate Expansion and Phase recruit a broad based Elicit direct or indirect NKTR-214 immune plays response a critical role by in this immune response cytokines Phase and TLR leading to tumor cell agents death 11

Melanoma vaccine model to study NKTR-214 Murine model for cancer vaccine evaluation Pmel-1 T cells with TCR genes that target B16 melanoma antigen gp100 Adoptive transfer of Pmel-1 T cells + peptide vaccination in B16F10 transplanted tumor model IL-2 seem to be essential for driving the Pmel-1 response against the B16F10 tumors NKTR-214 was evaluated in this model and compared with Aldesleukin ( recombinant IL-2) Vaccine = gp100 peptide + anti-cd40 + TLR-7 agonist NKTR-214 demonstrated more effective efficacy than Aldesleukin to delay tumor growth Collaboration with Meenu Sharma, Willem Overwijk, MD Anderson Cancer Center Zalevsky, J. SMI cancer vaccine, 2017. oral presentation 12

NKTR-214 induced sustained expansion of Pmel-1 T cells and reduced T regs in the tumor milieu Pmel-1 T regs No treatment Vaccine Vaccine + Aldesleukin Vaccine + NKTR-214 Zalevsky, J. SMI cancer vaccine, 2017. oral presentation 13

Proof of concept study with Nouscom neo antigen vaccine and NKTR-214 Neoantigen from Nouscom Nouscom generated a CT26 tumor based vaccine GAd-CT26-20 encoding 20 top scoring neo antigens after Next Gen Sequencing of CT26 tumors Utilize CT26 mouse model which has high neoantigen load Demonstrates partial response to checkpoint inhibitors Single injection of GAd-CT26-20 vaccine induced T cells against 5 neo antigens in both CD4 and CD8 T cell compartment Assessment of NKTR-214 with GAd-CT26-20 vaccine conducted in the model D Alise, AM. Et al., Keystone PEV, 2018. Abstract Poster 14

NKTR-214 dramatically improves efficacy of Nouscom GAd-CT26-20 vaccine D Alise, AM. Et al., Keystone PEV, 2018. Abstract Poster 15

Vaccine and NKTR-214 broadens the immune responses to non immunogenic peptides T cell response measured with pool of vaccine Pool 5 immunogenic peptide Pool 15 not immunogenic neo-epitopes D Alise, AM. Et al., Keystone PEV, 2018. Abstract Poster 16

Combination of GAd-CT26-20 vaccine with anti-pd-1 and NKTR-214 is curative in established tumor setting in mice Vaccine: GAd day 0, 5x10^8 vp MVA 20ep scr, day 28 10^7 pfu NKTR 214: d6,d14,d22, 36, 43, 46(iv) CR= complete response PR= partial response (>40% tumor shrinkage) D Alise, AM. Et al., Keystone PEV, 2018. Abstract Poster 17

Summary and Conclusions NKTR-214 in combination with gp100 peptide vaccine enhanced anti-tumor efficacy and delayed tumor growth in a melanoma mouse model Addition of NKTR-214 drove enhanced Pmel-1 T cell expansion NKTR-214 decreased the T reg load in the tumor NKTR-214 performed substantially better than aldesleukin to stably maintain high effector/t reg ratio in the tumor NKTR-214 in combination with GAd-NOUS-20 neoantigen dramatically improved anti-tumor efficacy in a CT26 mouse model 93% CR compared to single agent (6% for Gad-NOUS-20 and 26% for NKTR-214) NKTR-214 potentiated CD4 and CD8 T cell responses to immunogenic and non immunogenic epitopes Triple combination of vaccine, anti-pd-1 and NKTR-214 cured established tumors Vaccibody announces clinical collaboration agreement with Nektar Therapeutics Evaluate VB10.NEO and NKTR-214 in patients with squamous cell carcinoma of H&N 18