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BRAINco Biopharma

Context and Background
PROGENIKA GROUP




                                    Progenika Group                   BRAINco Biopharma

is part of the                      Pioneer in Personalized           Develops and commercializes products
Progenika Group of                  Medicine with diagnostic          for personalized treatments for
companies.
                                    products for complex              diseases of the nervous system.
                                    genetic diseases.




 Progenika Group is composed by seven companies, including Progenika Inc in Boston and Progenika
Latam in Mexico to introduce Progenika products in USA and Latin America.

 Proteomika, Preventia, Abyntek are other companies part of Progenika Group.
BRAINco Biopharma
History


2008 – Schizophrenia and Major Depression Projects
 Progenika´s internal research identified, through proteomic and genomic studies, alterations in the
expression levels of several genes and proteins in the brain of Schizophrenic and Depressed subjects
(suicides).
 After IP research and market study, Progenika identified a great opportunity and decided to get into drug
discovery with the creation of BRAINco Biopharma.
 BRAINco set up two drug discovery programs, in which cellular and animal models were generated and
characterized in order to validate the target, as well as for their use all along the drug discovery programs and
lead optimization.


2010- Multiple Sclerosis Project
 BRAINco in-licensed molecules from the Spanish Research Council and started a new project in Multiple
Sclerosis based on a new mechanism of action relevant for the disease.
BRAINco Biopharma
WORKING MODEL: Professional Project Management drives the process


                                       OPEN INNOVATION MODEL
  Developing Innovative Personalized Treatments for CNS diseases through the integration of
                               Scientific Excellence and Industrial Drive.



Drug Discovery:                                                                 CROs
 BRAINco carries out drug discovery projects based
on innovative targets found altered in the diseases.
 BRAINco     optimizes   treatments    through    the                         BRAINco
                                                                              Biopharma
development of biomarker discovery programs.
                                                                   KOLs in                Research
                                                                  the field                centers
Pharmacogenomic tools:
 The company also develops and commercializes
pharmacogenomic tools.                                       BRAINco designs, develops and generates tools
                                                                     for drug discovery programs.
WORKING MODEL
Where are “our labs”?




   BRAINco Collaborations
BRAINco Biopharma

Drug Discovery
BRAINco Biopharma
Drug Discovery




Target        Assay          Target        Hit            Hit to            Lead            Preclinical      Clinical
Discovery     Development    Validation    Finding        Lead              Optimization    Evaluation       Evaluation




               Major Depression project                                Multiple Sclerosis project

              Animal                                                        Screening
              model                                                         cascade:
Post mortem                                  Schizophrenia project           Potency,
studies                       Target
                              validation                                     Efficacy in
              Cell based                   High           Hit validation:   animal model,           Preclinical
              assays                       throughput     Cell based         ADMEtox,              Regulatory
Internal                                                                     Security,
                                           screening      assays
evaluation                                                                   PK/PD.
              Biochemical     In silico    Virtual        Hit validation:
              assays          modeling     screening      In-vitro
                                                          testing




                                                                            Biomarker discovery
DRUG DISCOVERY: Major Depression
A cytokine as new target for Major Depression


   Studying post-mortem brain tissues, BRAINco found that a specific cytokine, involved in
    neurogenesis and synaptogenesis, was significantly overexpressed in the prefrontal cortex of
    major depressive subjects.
                                                                    DEPRESSION


   The target is a secreted cytokine.                                         ALTERATIONS IN:

   The target induced responses are                                            BRAIN PLASTICITY
                                           BRC target
                                                                                    SYNAPTOGENESIS
    mediated by different receptors.                                                NEUROGENESIS
                                                                                NEUROTRANSMISSION
                                                                                BEHAVIOR & COGNITION




    BRAINco findings have shown, for the first time, a direct implication of this cytokine and its
           related biological system in Major Depression, which represents a very promising
       mechanism of action for drug development of new and more efficacious antidepressants
DRUG DISCOVERY: Major Depression
A cytokine as new target for Major Depression


     Transgenic mice overexpressing the target could be considered a non classical model of depression:
           At basal state, TG mice present an anxious-like phenotype, cognitive impairment and alterations
            in brain plasticity (Neurogenesis and LTP).
           After an aversive stimulus, TG mice show a higher sensitivity to develop a depressive-like
            phenotype.
           Chronic antidepressant treatment reverses both, anxious and depressive symptoms.

    Human neuronal progenitor cell models have been selected for cell based assays. Changes in
     neurogenesis properties have been confirmed in these models.
 Lead compounds acting on target-associated signaling pathways are available.

 The target is a secreted cytokine that can be measured in human serum, making the development of
     specific biomarkers easier and very feasible.


 BRAINco proposes a project based on an innovative target system with a novel mechanism of action. Our
    results suggest that BRAINco target could allow the finding of molecules for the treatment of a specific
                                 subtype of the disease: Anxious Depression.
DRUG DISCOVERY: Schizophrenia
Neurotransmitter release and Schizophrenia


 BRAINco found that a specific protein, involved in the neurotransmitter release, was significantly
overexpressed in the prefrontal cortex of schizophrenic suicides. Other research groups also found that the
target and proteins of the basic exocytosis machinery were differently expressed in the brain of subjects
with Schizophrenia and other psychiatric diseases.


 The neurotransmitter release machinery is a
very promising mechanism of action for the
development of new drugs in Schizophrenia, due
to its direct implication in several processes found
altered in this disease:
  Neurotransmission,
  Neurite outgrowth and connectivity,
  Receptor/Transporter translocation.

          BRAINco is targeting a new mechanism of action found altered in the disease.
DRUG DISCOVERY: Schizophrenia
Neurotransmitter release and Schizophrenia

 The target and other proteins from the basic neurotransmitter release machinery have been found
altered in the brain of subjects with Schizophrenia as well as other psychiatric diseases.

 BRAINco used two approaches to find molecules:
      Cell based approach, to find molecules that modulate exocytosis in specific human neuronal cell
      lines that overexpressed the target.
      Target focused approach, to find molecules that break the liaison between the target and its ligand.

      Chemical starting points, modulating neurotransmitters release, have been identified. BRAINco is
      going to test best molecules coming from both approaches: cell based assays and animal model.

   An animal model overexpressing the target has been generated, it presents schizophrenia
    characteristics: morphological alteration of the brain, as well as specific positive, negative and
    cognitive symptoms.

    BRAINco has discovered molecules acting on an innovative target which controls neurotransmitter
      release. BRAINco molecules could become a novel and promising treatment for Schizophrenia.
            Targeting the exocytosis opens a wide range of possibilities in terms of indications.
DRUG DISCOVERY: Multiple Sclerosis
PDE7 and Multiple Sclerosis

 PDE7     regulates   intracellular   levels   of   cyclic   adenosine
monophosphate (cAMP).
                                                                                cAMP                  AMP
 cAMP, apart from its role in the regulation of the immune
                                                                                              PDE7
system, it is also involved in a wide range of neuronal
functions, including neuroprotection and neuroinflammation.
 PDE7 enzyme is expressed in immune and pro-inflammatory
cells, as well as in the brain. Recent data showed an upregulation in                      PDE7
                                                                                         inhibitors
the central nervous system of PDE7A and PDE7B proteins associated
to neuroinflammation in an experimental model of Parkinson                Anti-Inflammation
disease.                                                                   Neuroprotection
                                                                            Neurogenesis
 It has been recently described that PDE7 inhibitors confer
protection against alteration of neuron´s morphology in the spinal
cord from spinal cord injury mouse models.
  The control of cAMP levels by PDE7 inhibitors may play a crucial role in the development of
           neuroinflammatory associated diseases, such as Multiple Sclerosis. BRAINco has
                              synthesized several families of PDE7 inhibitors.
DRUG DISCOVERY: Multiple Sclerosis
PDE7 and Multiple Sclerosis


 More than a hundred new compounds have been chemically synthesized.
 PDE7 IC50 is in the nM range.
 Molecules present selectivity for PDE7.
 Compounds are orally available and cross the blood brain barrier.

 Molecules present neuroprotective and anti-Inflammatory activities in cellular models. They also
promote neurogenesis.

   After administration of BRAINco compounds, the clinical score in two well established Multiple Sclerosis
    animal models is significantly improved.
   Anti-inflammatory and neuroprotective properties of the compounds have been confirmed in tissues
    from these animal models.

   Biomarker program is ongoing

      BRAINco has developed specific inhibitors for PDE7 enzyme. Their anti-inflammatory, as well as
     neuroprotective activities have been demonstrated in vivo and in vitro. All these results support the
            development of new Multiple Sclerosis treatments based on BRAINco PDE7 inhibitors.
DRUG DISCOVERY
Biomarkers and patient selection


A biomarker program is set up once first molecules are found and start being optimized. All the tools
developed during hit validation and hit finding will be used for biomarker discovery.

Major Depression
 BRAINco target is secreted and the protein can be measured in serum of patients with other
pathologies, such as cancer.
 Alterations in the expression of the target in the animal model, as well as in patients, are being
investigated using non-invasive samples.
Schizophrenia
 Exocytosis can be measured in several peripheral tissues.
 Results obtained with the animal model will be used for a biomarker discovery program.
Multiple Sclerosis
 Specific cytokines, as well as other specific markers altered in Multiple Sclerosis and modulated by
current drug treatments have been selected by BRAINco´s team.
 Protocols to measure these biomarkers at mRNA and protein levels in different tissues/fluids, are being
optimized.
DRUG DISCOVERY:
Business Model


    In order to bring these novel molecules to patients, BRAINco is looking for partners:
                                Investors and/or Companies.


   Target       Target         Hit       Hit to         Lead       Preclinical     Clinical
  Discovery   validation     Finding     Lead       Optimization   Evaluation    Evaluation

      Major Depression
                                                                             2015

      Schizophrenia
                                                                             2014

       Multiple Sclerosis
                                                                                              2015




       Completed activities
       Activities under development
BRAINco Biopharma

Pharmacogenomic tools
BRAINco Biopharma
Pharmacogenomic products




                           Pharmacogenomics is the study of DNA genetic variations which can lead
                           to changes in drug response. DNA Single Nucleotide Polymorphisms (SNP)
                           related to drug metabolism, drug transporters, and drug targets are

 Offers tools based on     responsible for variations in the efficacy and/or toxicity of many drugs.
 DNAchip technology.


                           The use of pharmacogenomics in routine clinical practice leads to:
                                         Increase drug safety and efficacy.
                                         Increase drug treatment adherence.
                                         Decrease direct and indirect costs of the disease.
BRAINco Biopharma
Brainchip, Available on the market


BRAINchip I      detects the genetic variations of
CYP450 enzymes, which metabolize most antidepressant
and antipsychotic drugs, providing information about :
 Optimal antipsychotic and antidepressant drug for
each patient,
 Interaction with concomitant drugs undergoing the
same metabolic pathways.

      Brainchip Increases safety and efficacy of
antidepressant and antipsychotic drug treatments, as well
as treatment adherence rates.


  Approximately 10% of the population has a slow acting
   form of this enzyme and 7% a super-fast acting form.
Pharmacogenetic products
       Market strategy

BRAINco commercializes its pharmacogenomic products through a global network of distributors.

                                             Norway   Sweden

                                                               Finlande

                                                                  Austria

                                                                   Turkey
                                     Spain                          Middle east

                                                                     Egypt

        Mexico




  BRAINchip distributors
BRAINco Biopharma

Intellectual Property
DRUG DISCOVERY: IP and publications



Patents
   STXBP1 as psychiatric biomarker in murine model system and their uses. WO/2010/020642.

   Compound that is a dual inhibitor of enzymes PDE7 and/or PDE4, pharmaceutical compositions and uses
    thereof. WO/2008/113881.
   A genotyping tool for improving the prognostic and clinical management of MS patients.
    WO/2010/103292.
   Animal model for OMTX-MDT1: psychiatric marker, System Model and Related Methods (provisional
    patent application).


Publications
   María José Guerrero, Itsaso Hormaeche, María Uribarri, Julie Masse and José María Palacios “The
    exocytosis machinery as a target for the development of new drugs for Schizophrenia“ in Luis M. Botana
    and Mabel Loza “Therapeutic Targets: Modulation, Inhibition and Activation“. 2012.“
   Brain over expression of munc18-1a in mice induces a schizophrenia-related phenotype”, 2012.
    (Submitted)
Thank you for your attention.




                                Julie Masse
www.brainco.es                  Business Development Manager
                                jmasse@brainco.es

                                Jose Mª Palacios
                                Director of Research and Development
                                jmpalacios@brainco.es

                                BRAINco Biopharma, S.L.
                                Bizkaia Technology Park. Building 504
                                48160 Derio (Spain)
                                www.brainco.es
                                Phone: +34 94 406 4525

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BRAINco Biopharma company presentation

  • 1.
  • 3. PROGENIKA GROUP Progenika Group BRAINco Biopharma is part of the Pioneer in Personalized Develops and commercializes products Progenika Group of Medicine with diagnostic for personalized treatments for companies. products for complex diseases of the nervous system. genetic diseases.  Progenika Group is composed by seven companies, including Progenika Inc in Boston and Progenika Latam in Mexico to introduce Progenika products in USA and Latin America.  Proteomika, Preventia, Abyntek are other companies part of Progenika Group.
  • 4. BRAINco Biopharma History 2008 – Schizophrenia and Major Depression Projects  Progenika´s internal research identified, through proteomic and genomic studies, alterations in the expression levels of several genes and proteins in the brain of Schizophrenic and Depressed subjects (suicides).  After IP research and market study, Progenika identified a great opportunity and decided to get into drug discovery with the creation of BRAINco Biopharma.  BRAINco set up two drug discovery programs, in which cellular and animal models were generated and characterized in order to validate the target, as well as for their use all along the drug discovery programs and lead optimization. 2010- Multiple Sclerosis Project  BRAINco in-licensed molecules from the Spanish Research Council and started a new project in Multiple Sclerosis based on a new mechanism of action relevant for the disease.
  • 5. BRAINco Biopharma WORKING MODEL: Professional Project Management drives the process OPEN INNOVATION MODEL Developing Innovative Personalized Treatments for CNS diseases through the integration of Scientific Excellence and Industrial Drive. Drug Discovery: CROs  BRAINco carries out drug discovery projects based on innovative targets found altered in the diseases.  BRAINco optimizes treatments through the BRAINco Biopharma development of biomarker discovery programs. KOLs in Research the field centers Pharmacogenomic tools:  The company also develops and commercializes pharmacogenomic tools. BRAINco designs, develops and generates tools for drug discovery programs.
  • 6. WORKING MODEL Where are “our labs”? BRAINco Collaborations
  • 8. BRAINco Biopharma Drug Discovery Target Assay Target Hit Hit to Lead Preclinical Clinical Discovery Development Validation Finding Lead Optimization Evaluation Evaluation Major Depression project Multiple Sclerosis project Animal Screening model cascade: Post mortem Schizophrenia project  Potency, studies Target validation  Efficacy in Cell based High Hit validation: animal model, Preclinical assays throughput Cell based  ADMEtox, Regulatory Internal  Security, screening assays evaluation  PK/PD. Biochemical In silico Virtual Hit validation: assays modeling screening In-vitro testing Biomarker discovery
  • 9. DRUG DISCOVERY: Major Depression A cytokine as new target for Major Depression  Studying post-mortem brain tissues, BRAINco found that a specific cytokine, involved in neurogenesis and synaptogenesis, was significantly overexpressed in the prefrontal cortex of major depressive subjects. DEPRESSION  The target is a secreted cytokine. ALTERATIONS IN:  The target induced responses are  BRAIN PLASTICITY BRC target  SYNAPTOGENESIS mediated by different receptors.  NEUROGENESIS  NEUROTRANSMISSION  BEHAVIOR & COGNITION BRAINco findings have shown, for the first time, a direct implication of this cytokine and its related biological system in Major Depression, which represents a very promising mechanism of action for drug development of new and more efficacious antidepressants
  • 10. DRUG DISCOVERY: Major Depression A cytokine as new target for Major Depression  Transgenic mice overexpressing the target could be considered a non classical model of depression:  At basal state, TG mice present an anxious-like phenotype, cognitive impairment and alterations in brain plasticity (Neurogenesis and LTP).  After an aversive stimulus, TG mice show a higher sensitivity to develop a depressive-like phenotype.  Chronic antidepressant treatment reverses both, anxious and depressive symptoms.  Human neuronal progenitor cell models have been selected for cell based assays. Changes in neurogenesis properties have been confirmed in these models.  Lead compounds acting on target-associated signaling pathways are available.  The target is a secreted cytokine that can be measured in human serum, making the development of specific biomarkers easier and very feasible. BRAINco proposes a project based on an innovative target system with a novel mechanism of action. Our results suggest that BRAINco target could allow the finding of molecules for the treatment of a specific subtype of the disease: Anxious Depression.
  • 11. DRUG DISCOVERY: Schizophrenia Neurotransmitter release and Schizophrenia  BRAINco found that a specific protein, involved in the neurotransmitter release, was significantly overexpressed in the prefrontal cortex of schizophrenic suicides. Other research groups also found that the target and proteins of the basic exocytosis machinery were differently expressed in the brain of subjects with Schizophrenia and other psychiatric diseases.  The neurotransmitter release machinery is a very promising mechanism of action for the development of new drugs in Schizophrenia, due to its direct implication in several processes found altered in this disease:  Neurotransmission,  Neurite outgrowth and connectivity,  Receptor/Transporter translocation. BRAINco is targeting a new mechanism of action found altered in the disease.
  • 12. DRUG DISCOVERY: Schizophrenia Neurotransmitter release and Schizophrenia  The target and other proteins from the basic neurotransmitter release machinery have been found altered in the brain of subjects with Schizophrenia as well as other psychiatric diseases.  BRAINco used two approaches to find molecules:  Cell based approach, to find molecules that modulate exocytosis in specific human neuronal cell lines that overexpressed the target.  Target focused approach, to find molecules that break the liaison between the target and its ligand.  Chemical starting points, modulating neurotransmitters release, have been identified. BRAINco is going to test best molecules coming from both approaches: cell based assays and animal model.  An animal model overexpressing the target has been generated, it presents schizophrenia characteristics: morphological alteration of the brain, as well as specific positive, negative and cognitive symptoms. BRAINco has discovered molecules acting on an innovative target which controls neurotransmitter release. BRAINco molecules could become a novel and promising treatment for Schizophrenia. Targeting the exocytosis opens a wide range of possibilities in terms of indications.
  • 13. DRUG DISCOVERY: Multiple Sclerosis PDE7 and Multiple Sclerosis  PDE7 regulates intracellular levels of cyclic adenosine monophosphate (cAMP). cAMP AMP  cAMP, apart from its role in the regulation of the immune PDE7 system, it is also involved in a wide range of neuronal functions, including neuroprotection and neuroinflammation.  PDE7 enzyme is expressed in immune and pro-inflammatory cells, as well as in the brain. Recent data showed an upregulation in PDE7 inhibitors the central nervous system of PDE7A and PDE7B proteins associated to neuroinflammation in an experimental model of Parkinson Anti-Inflammation disease. Neuroprotection Neurogenesis  It has been recently described that PDE7 inhibitors confer protection against alteration of neuron´s morphology in the spinal cord from spinal cord injury mouse models. The control of cAMP levels by PDE7 inhibitors may play a crucial role in the development of neuroinflammatory associated diseases, such as Multiple Sclerosis. BRAINco has synthesized several families of PDE7 inhibitors.
  • 14. DRUG DISCOVERY: Multiple Sclerosis PDE7 and Multiple Sclerosis  More than a hundred new compounds have been chemically synthesized.  PDE7 IC50 is in the nM range.  Molecules present selectivity for PDE7.  Compounds are orally available and cross the blood brain barrier.  Molecules present neuroprotective and anti-Inflammatory activities in cellular models. They also promote neurogenesis.  After administration of BRAINco compounds, the clinical score in two well established Multiple Sclerosis animal models is significantly improved.  Anti-inflammatory and neuroprotective properties of the compounds have been confirmed in tissues from these animal models.  Biomarker program is ongoing BRAINco has developed specific inhibitors for PDE7 enzyme. Their anti-inflammatory, as well as neuroprotective activities have been demonstrated in vivo and in vitro. All these results support the development of new Multiple Sclerosis treatments based on BRAINco PDE7 inhibitors.
  • 15. DRUG DISCOVERY Biomarkers and patient selection A biomarker program is set up once first molecules are found and start being optimized. All the tools developed during hit validation and hit finding will be used for biomarker discovery. Major Depression  BRAINco target is secreted and the protein can be measured in serum of patients with other pathologies, such as cancer.  Alterations in the expression of the target in the animal model, as well as in patients, are being investigated using non-invasive samples. Schizophrenia  Exocytosis can be measured in several peripheral tissues.  Results obtained with the animal model will be used for a biomarker discovery program. Multiple Sclerosis  Specific cytokines, as well as other specific markers altered in Multiple Sclerosis and modulated by current drug treatments have been selected by BRAINco´s team.  Protocols to measure these biomarkers at mRNA and protein levels in different tissues/fluids, are being optimized.
  • 16. DRUG DISCOVERY: Business Model In order to bring these novel molecules to patients, BRAINco is looking for partners: Investors and/or Companies. Target Target Hit Hit to Lead Preclinical Clinical Discovery validation Finding Lead Optimization Evaluation Evaluation Major Depression 2015 Schizophrenia 2014 Multiple Sclerosis 2015 Completed activities Activities under development
  • 18. BRAINco Biopharma Pharmacogenomic products Pharmacogenomics is the study of DNA genetic variations which can lead to changes in drug response. DNA Single Nucleotide Polymorphisms (SNP) related to drug metabolism, drug transporters, and drug targets are Offers tools based on responsible for variations in the efficacy and/or toxicity of many drugs. DNAchip technology. The use of pharmacogenomics in routine clinical practice leads to:  Increase drug safety and efficacy.  Increase drug treatment adherence.  Decrease direct and indirect costs of the disease.
  • 19. BRAINco Biopharma Brainchip, Available on the market BRAINchip I detects the genetic variations of CYP450 enzymes, which metabolize most antidepressant and antipsychotic drugs, providing information about :  Optimal antipsychotic and antidepressant drug for each patient,  Interaction with concomitant drugs undergoing the same metabolic pathways. Brainchip Increases safety and efficacy of antidepressant and antipsychotic drug treatments, as well as treatment adherence rates. Approximately 10% of the population has a slow acting form of this enzyme and 7% a super-fast acting form.
  • 20. Pharmacogenetic products Market strategy BRAINco commercializes its pharmacogenomic products through a global network of distributors. Norway Sweden Finlande Austria Turkey Spain Middle east Egypt Mexico BRAINchip distributors
  • 22. DRUG DISCOVERY: IP and publications Patents  STXBP1 as psychiatric biomarker in murine model system and their uses. WO/2010/020642.  Compound that is a dual inhibitor of enzymes PDE7 and/or PDE4, pharmaceutical compositions and uses thereof. WO/2008/113881.  A genotyping tool for improving the prognostic and clinical management of MS patients. WO/2010/103292.  Animal model for OMTX-MDT1: psychiatric marker, System Model and Related Methods (provisional patent application). Publications  María José Guerrero, Itsaso Hormaeche, María Uribarri, Julie Masse and José María Palacios “The exocytosis machinery as a target for the development of new drugs for Schizophrenia“ in Luis M. Botana and Mabel Loza “Therapeutic Targets: Modulation, Inhibition and Activation“. 2012.“  Brain over expression of munc18-1a in mice induces a schizophrenia-related phenotype”, 2012. (Submitted)
  • 23. Thank you for your attention. Julie Masse www.brainco.es Business Development Manager jmasse@brainco.es Jose Mª Palacios Director of Research and Development jmpalacios@brainco.es BRAINco Biopharma, S.L. Bizkaia Technology Park. Building 504 48160 Derio (Spain) www.brainco.es Phone: +34 94 406 4525