NON-CONFIDENTIAL

H1 FY2022 Financial Results
Six-month period ended June 30, 2022
August 10, 2022 | Sosei Group Corporation (TSE:4565)

Disclaimer
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unforeseen safety issues resulting from the administration of our products in patients, uncertainties related to product manufacturing, the lack of market acceptance of our products, our inability to manage growth, thecompetitive environment in relation to our business area and markets, our inability to attract and retain suitably qualified personnel, the unenforceability or lack of protection of our patents and proprietary rights, ourrelationships with affiliated entities, changes and developments in technology which may render our products obsolete, and other factors. These factors include, without limitation, those discussed in our public reports filedwith the Tokyo Stock Exchange and the Financial Services Agency of Japan. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonably based on
information currently available to the Company's management, certain forward looking statements are based upon assumptions of future events which may not prove to be accurate. The forward looking statements in thisdocument speak only as at the date of this presentation and the company does not assume any obligations to update or revise any of these forward statements, even if new information becomes available in the future.
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considered as replacements or alternatives profit, or operating profit, as an indicator of operating performance or as replacements or alternatives to cash flow provided by operating activities or as a measure of liquidity (ineach case, as determined in accordance with IFRS). Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, analysis of the Company's results reported in accordance with IFRS.
References to "FY" in this presentation for periods prior to 1 January 2018 are to the 12-month periods commencing in each case on April 1 of the year indicated and ending on March 31 of the following year, and the 9 month
period from April 1 2017 to December 31 2017. From January 1 2018 the Company changed its fiscal year to the 12-month period commencing in each case on January 1. References to "FY" in this presentation should beconstrued accordingly.
© Sosei Group Corporation. Sosei Heptares is the corporate brand and trademark of Sosei Group Corporation. Sosei, Heptares, the logo and StaR® are trademarks of Sosei Group companies.

2

Agenda3

1

Financial Results

2

Operational Highlights

3

R&D Progress

4

Objectives for FY2022

5

Q&A

6

Appendix

Note: This material was created to explain the details of our company and is not intended to be used for investment decisions. In addition, the contents reflect the views of our company at the time of thecreation of the material, and the accuracy of the information is not guaranteed. Investments should be made based on the independent views of investors

1. Financial
Results

1
Financial Results

Hironoshin Nomura, CFO

4

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

6. Appendix

Financial Summary for H1 2022

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Successful execution of strategy with continuing investment in R&D

1

H1 Revenue of ¥2,457m ($20m) vs. ¥3,123m ($29m) in the prior comparative period. H1 2022
includes two milestone events vs. five in the prior comparative period.

2

H1 Operating Loss of ¥3,804m ($31m) vs. ¥1,849m ($17m) in the prior comparative period. This
reflects increased R&D expenses of ¥1,100m ($6m) vs. the prior comparative period, in line with ourstrategy.

3¥54bn cash balance ($393m) as at June 30, 2022 - the majority of which is earmarked for
acquisitions and in-licensing opportunities to accelerate our growth.

4

Significant events occurring after from July 1 will be accounted for in our Q3 financial results (andafterwards) but disclosed as Subsequent Events in our Q2 financial results:• New collaboration with AbbVie announced on 2 August ($40m upfront)• Neurocrine M4 Phase2 milestone announced on 5 August ($30m milestone)

Note: USD:JPY FX rates used – 122.83 (Average rate YTD 2022) and 108.11 (Average rate YTD 2021)

5

6. Appendix

1. Financial
Results

Key Financial Indicators

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

There were lower number of milestone events until end of June, compared with FY21
Revenue(JPY million)
6,000
5,000

5,056
296

4,000
3,000

2,878

0

3,123

2,457

752

1,547

1,882

1,764

1,577

1,945

FY19 H1

FY20 H1

FY21 H1

FY22 H1

2,000
1,000

2,516

512

Upfront
Milestone
Royalty/Other

Operating Loss

(JPY million)
2,000
1,000

1,596
731

0

(181)

(1,000)(1,136)(2,000)(3,000)(802)(1,849)(4,000)(5,000)6

 Revenue can vary significantly quarter on quarter depending on the occurrence of
milestone events and the signing of new collaborations agreements with upfront fees.
 Revenue was down JPY666m / $9m in H1 2022 vs. H1 2021 primarily due to milestone
income.
 Milestone income from existing partnerships in H1 2022 included:• Milestones from Takeda and Genentech• Deferred revenue releases on AbbVie and Genentech collaborations
 There were 5 milestones in the prior comparative period.
 Royalties from Novartis were broadly flat vs. H1 2021 but slightly increased on a JPY
basis due to FX rates(2,378)(3,804)

FY19 H1

FY20 H1

FY21 H1

FY22 H1

OP
Core OP Core R&D costs increased by ¥1,003m / $6m vs. H1 2021 primarily due to higher
activity on in-house programs, participation in new co-development collaborations,the impact of a stronger GBP vs. JPY and cost inflation.
 Core SG&A costs increased by ¥329m / $1.3m vs. H1 2021 due to a general increase inbusiness activity owing to of lighter COVID restrictions (including travel andtraining) plus the impact of a stronger GBP vs. JPY and cost inflation.

6. Appendix

1. Financial
Results

Full year cost guidance (Updated)

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Incremental investment designed to deliver greater returns over the medium to long term

(JPY million)

Updated Guidance

R&D expenses (IFRS basis)

7,750¥6,750m to ¥7,750m (up from ¥5,750m to ¥6,750m)

8,000

~

7,000

6,750

6,000
5,000

2,000

4,292

3,793

FY19

FY20

1,000
0

5,931

FY21

Expand platform and grow discovery capacity

Build a program-centric clinical development focus, and invest in new translational medicine
capabilitiesMove priority programs into early (Phase 1b) clinical studies to deliver greater value

Increase in full year Guidance due to:i. Impact of FX rates (GBP has strengthened by 6% in the YTD vs. JPY)
ii. Cost inflation (UK inflation is running at circa 9%)iii. Part of RSU cost reclassification from G&A to R&D for clearer presentation

R&D

4,000
3,000



FY22

G&A expenses (IFRS basis)(JPY million)
5,000

4,250
3,750

3,000
2,000

3,614

3,435

G&A

3,940

1,000
0

7

¥3,750m to ¥4,250m (unchanged)

~

4,000

FY19

FY20

FY21

FY22



Invest in functional teams to support great scienceEnhance corporate governance

Explore TSE PRIME listingNo change to full year G&A Guidance:
i. FX rates and inflation have the effect of increasing costii. The impact has been largely off-set by the reclassification of RSU

6. Appendix

1. Financial
Results2
Operational Highlights
Chris Cargill, CEO

8

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

6. Appendix

1. Financial
Results

2. Operational
Highlights

Strong execution across all phases/collaboration types
Pre-Disc. / Discovery
Multi-target

Multi-target

Multi-target✓ Multi-target✓

Multiple

GI and other

Inflammatory and Neurology

Outlicensed

Preclinical studies

Phase 1

M1M4 ag.

GLP-1 ag.

M1 ag.

CCR6 ant.

GPR35 ag.

MC4 ant.

T2DM/Obesity

Neurology

IBD

Neurology

Multiple

Anorexia

IBD

CGRP ant.

Co-dev /Profitshare

TPD

Antibody

Gut-brain axis

4. FY2022
Goal

5. Q&A

Updates (H1)
Post H1 event

Phase 2✓M4 ag. NBI’568
Schizophrenia

A2a ant. combo(s)1mCRPC

6. Appendix

Marketed✓ Ultibro® Breezhaler®
COPD

Seebri® Breezhaler®
COPD

Enerzair® Breezhaler®
AsthmaOravi®

Neurology✓

3. R&D
Progress

Mouth candidiasis

CXCR4 mAb

Immuno-oncology

PAR2 peptide✓
Ion channel

AI-driven

Co-owned
companies

In-house /Not yetpartnered

9AI-driven

AI-driven

SARS-CoV-2 MPro
Coronaviruses

GPR52 ag.

H4 ant.

PAR2 mAb

EP4 ag.

EP4 ant.

Atopic Dermatitis

Substance abuse

Narcolepsy(Intranasal)

Narcolepsy(Oral)

10+ other programs

mGlu5 NAM

OX2 ag.

OX2 ag.

Neurology

IBD

Atopic Dermatitis✓

Immuno-oncology

Note: Seebri®, Ultibro®, Enerzair® and Breezhaler® are registered trademarks of Novartis AG.) 1AstraZeneca has removed the A2a program from its clinical pipeline as at Q3 2021

Partnered Program
In-house Program1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Strong execution across all phases/collaboration types (cont’d)
Discovery Research Innovation Updates

New GPCR targets alreadyidentified with AI dataset
New platform to identify
novel targets
5 milestones achieved
across multiple programs
New US$1.2bn multi-target
neurology collaboration

Translational Medicine/Clinical Development Updates

Strong GLP-1 Ph. 1 data, Ph.
2 start possible H2 2022

M4 IND accepted by FDA,
Ph. 2 start possible H2 2022

New EP4 partnership tomaximize cancer trials

Importantly, in addition to continuously expanding our discovery innovation, we now have two major programs,
PF-070815732 (GLP-1) and NBI-1117568 (M4), expected to advance into Phase 2 trials with our partners
10

6. Appendix

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

New multi-target Neurology collaboration with AbbVie

4. FY2022
Goal

5. Q&A

6. Appendix

Post H1 event

US$80m in upfront and near-term revenues, plus up to US$1.2bn in future milestone revenues
Balance of potential milestone income from existing license agreements1

1

2

3

US$40m upfront, US$40m in near-term
research milestone revenues expected over the
next three years, plus up to US$1.2bn future
milestone revenues, plus tiered royalties.
Targeting three novel G protein-coupled
receptor (GPCR) targets associated withneurological disease.

Highly productive working relationship with
AbbVie established during initial collaborationin 2020, enables us to get off to a quick start.

(USD million)(USD million)

12,000

1,200✓
10,000

1,000

8,000

800

5,000+
6,000

600

4,000

400

5,000+

2,000

0

FY15/3

FY16/3

FY17/3

FY18/3

FY18/12FY19/12

FY20/12

FY21/12

Commercial milestone(left axis)
Development milestone(left axis)
Received upfront and milestone(right axis/cumulative)
1 Balance as of the end of the fiscal year of only those currently under contract. TEVA and AbbVie (formerly Allergan), for which compounds were returned, are excluded from the balances from FY2018 and11

FY2021, respectively

FY22/12200

0EP4 antagonist (HTL0039732)

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&ANew collaboration with CRUK to advance clinical trials for this promising cancer therapeutic
Best access - unrivalled network of world-leading
scientists and cliniciansWorld-class infrastructure - multi-center trials
delivered across 20 clinical centers in the UK
Shared costs and risks - co-development project,
coordinated and managed by CRUK, with joint
funding and shared risk reward
Win-win for cancer drug development - Sosei
Heptares retains the license to clinical trial results
and collaboration IP, CRUK receives a share of future
revenue if the drug successfully developed
Cancer is an extremely complex area for development. We are partnering with CRUK who have a proven trackrecord having delivered 6 agents as registered medicines alongside world-leading corporate partners

Source: Cancer Research UK, Center for Drug Development

12

6. Appendix

Post H1 event

1. Financial
Results

Advancing four wholly-owned programs

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

Advancing priority programs into early clinical studies, including collaboration with CRUKIndication andtargetTargetProduct
ProfileClinical starttarget13

Schizophrenia
and Psychosis

AtopicDermatitis

Immunosuppression
in solid tumors

Inflammatory
Bowel Disease

GPR52 agonist

H4 antagonist

EP4 antagonist

EP4 agonist• Once daily oral
small molecule• 24hr target engagement

H1 2023• Once daily oral small
molecule• To be used as amonotherapy or in
combination

H1 2023• Once daily oral small
molecule• To be used in combo withcheckpoint inhibitors• Collaboration with CRUK

H1 2023• Oral GI restricted• Good potency andselectivity• Minimal GI systemic
exposure

End of 2023

5. Q&A

6. Appendix

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

3
R&D Progress
Dr. Matt Barnes, President of Heptaresand Head of UK R&D

14

5. Q&A

6. Appendix

Muscarinic M4 agonist (NBI-1117568)

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

Collaboration with Neurocrine, announced IND of Ph2 study trigger $30 million milestone

Source: Neurocrine Biosciences Announces Conference Call and Webcast of Second Quarter 2022 Financial Results
https://www.neurocrine.com//assets/2022/08/NBIX-Q2-2022-Earnings-Presentation-Final-08.04.22.pdf

15

5. Q&A

6. Appendix

Post H1 eventGLP-1 agonist (PF-07081532)

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

Pfizer highlights potentially best-in-class data to be presented at EASD (19-23 September)

Source: Pfizer Quarterly Corporate Performance – Second Quarter 2022 presentation
https://s28.q4cdn.com/781576035/files/doc_financials/2022/q2/Q2-2022-Earnings-Charts-FINAL.pdf

16

5. Q&A

6. Appendix

Post H1 event

1. Financial
Results

Multi-target Collaboration Partners

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Updates (H1)
Post H1 event

Making excellent progress with new and long-term partnered programs
Partner

Execution

Therapeutic Area

Stage

Progress

November 2015

Multiple

Phase 1x3 clinical stage assets achieved in 6 years
and clinical development is ongoingx5 milestones achieved in 3 years withtargets for small and large molecule drugs✓

July 2019

Multiple

Discovery

August 2019

Multiple(Initial focus on
Gastrointestinal)

Discovery

Inflammatory,
Autoimmune and
Neurology

Discovery

June 2020
August 2022 ✓17

6. Appendix

Early Discovery milestones achieved

1. Financial
Results

Strategic collaboration landscape

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

Pre-Disc. / Discovery

Preclinical studies

Clinical studies

Commercialization

Target ID

Structure

Hit ID

Lead Optimization✓

Our Core Technologies
StaR®

SBDD

CryoEM

DEL Screening

Protein Binder Toolkit✓

18

6. Appendix

Updates (H1)

Adding complementary approaches to increase discovery opportunities

Choosing the right target

5. Q&A

Discovering a therapeutic agent

1. Financial
Results

Strategic collaboration partners

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Updates (H1)

Identification and validation of novel GPCR targets for new discovery programs
2021~

AI drug discovery (Target)••

Discovery collaboration combining
InveniAI’s AI-powered platform fortarget discovery with SH’s GPCR
SBDD and early development
capabilities
Collaboration aims to identify new
therapeutic product concepts for
immune diseases and generate
novel compounds that could
improve responses to existing
immunotherapies
Immunology/Multi-target

19

✓

2022~

2022~

AI drug discovery (Target)••

Research collaboration combining
Verily’s immune profilingcapabilities and SH’s StaR® platform
and SBDD capabilities
Collaboration aims to identify
GPCRs expressed in immune cells,
enhance our understanding of theirfunctional relevance and prosecuteas potential drug targets inimmune-mediated diseases
Immunology/Multi-target

6. Appendix✓

Gut-brain axis platform (Target)••

Strategic research collaboration
leveraging Sosei Heptares
capabilities with Kallyope’s gutbrain axis platform
Collaboration aims to identify,
prioritize and validate novel GPCR
targets with a goal of creating new
drug discovery programs in the areaof gastrointestinal (GI) diseases

Gastroenterology/Multi-target

1. Financial
Results

4
Objectives for FY2022
Chris Cargill, CEO

20

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

6. Appendix

Priority objectives for FY2022

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Excellent progress YTD across our business
FY2022 OBJECTIVES

Organic
Growth1

Execute at least one new high value collaboration
and/or co-investment

2

Generate at least one new preclinical candidates

3

Strategic
Growth21

Further enhance R&D productivity

1

Continue to search for opportunities to acquirecompanies that will bring new sources of revenue

2

Collaborate/invest in new technologies with synergies

3

In-license late-stage products for clinical development
and commercialization in JapanUPDATES✓✓

US$80m in upfront and near-term milestone
revenues, plus up to US$1.2bn in the future

Strategic collaboration to drive R&D
transformation and growth and to build
Translational Medicine

World-class clinical trial partner for cancer✓
Aiming to deliver the next wave of datadriven, innovative drug targets

6. Appendix

1. Financial
Results

2. Operational
Highlights

Mid to long-term direction for accelerating our growth

3. R&D
Progress

4. FY2022
Goal

5. Q&A

World-class science and Translational Medicine expansion to build long-term value
Historic and planned corporate value expansion

Translational
Medicine

Preclinical
Drug
Discovery

22

StaR®

Platform

2007 – 20142015 – 2022

Drug
Discovery

Example of partnership value versus stage of progress

Avg. Total Deal Value
Avg. Upfront Cash Receipt$200m

Platform$5 – 10m

2022 – 2030

Discovery$400m$1–3bn$20-100m$10 – 20m
Preclin/Phase 1a

Phase 1b/2a6. Appendix

1. Financial
Results

5
Q&A

23

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

6. Appendix

1. Financial
Results

6
Appendix24

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

6. Appendix

EP4 antagonist (HTL0039732)

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Clinical Development Partnership with CRUK to advance potential best-in-class therapeuticPartnership enables us to cost effectively access the most advanced cancer drug development capabilities –and bring potentially innovative medicines to patients faster than we could do by ourselves
Source: Source: Cancer Research UK, Center for Drug Development

25

6. Appendix

Post H1 event

Introduction of ‘Core Operating Profit’

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Core Operating Profit – the financial indicator closer to the reality of our business
Operating Profit

Operating Profit“IFRS”



Financial results recorded and prepared inaccordance with International Financial
Reporting Standards (IFRS)“Core”+ Material Non-cash Costs(Depreciation, Amortization, Share based payments, Impairment...etc.)+ Material Non-recurring Costs(Restructuring costs and Other material one-off items...etc.)

Cash
Recurring
Non-recurring(Material)

26

Non-cash(Material)

Costs under“Core”

Costs under “IFRS”

Core Operating Profit is a new key
financial indicator that highlights theunderlying recurring cash generating
capability of the business.
 Core Operating Profit is defined as IFRS
Operating Profit + material Non-cash costs+ material non-recurring costs
 Material Non-cash Costs include
depreciation, amortization, share based
payments and impairment.
 Material Non-recurring Costs include
restructuring costs and other material
one-off items.
 Core Operating Profit = Cash Earnings +material Non-recurring Costs


6. Appendix

1. Financial
Results

Partnered pipeline
CompoundTarget / Mechanism of Action

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

6. Appendix

Updates (H1)
Post H1 event
Modality

Indication

Partner

Disc.

PCC

Ph1

Ph2

Ph3

Out-licensing Collaborations

27

5. Q&A

Seebri® Breezhaler®

LAMA

SME

COPD

Ultibro® Breezhaler®

LAMA+LABA

SME

COPD

Enerzair® Breezhaler®

LAMA+LABA+ICS

SME

AsthmaORAVI®

Antifungal agent miconazole

SME

Oropharyngeal candidiasis

Imaradenant1

Adenosine A2a ant. combo

SME

mCRPC

NBI’568

Muscarinic M4 agonist

SME

Schizophrenia

Not disclosed

Muscarinic M1 agonist

SME

Neurology diseases

Not disclosed

Muscarinic M1/M4 agonist

SME

Neurology diseases

PF-07081532

GLP-1 agonist

SME

T2DM / ObesityPF-07054894

CCR6 antagonist

SME

Inflammatory bowel disease

PF-07258669

MC4 antagonist

SME

Anorexia

Not disclosed

CGRP antagonist

SME

Neurology diseases

Not disclosed

GPR35 agonist

SME

Inflammatory bowel diseaseNot disclosed

Multi target

SME

Multiple indications

Not disclosed

Multi target

SME/LME

Multiple indications

Not disclosed

Multi target

SME/LME

Gastrointestinal and otherNot disclosed

Multi target

SME

Inflammatory diseases / CNS✓✓

Note: SME = small molecule. LME = large molecule. Seebri®, Ultibro®, Enerzair® and Breezhaler® are registered trademarks of Novartis AG. 1 AstraZenenca have removed the A2a program from their clinicalpipeline as at Q3 2021

App

Mkt

1. Financial
Results

Partnered pipeline (cont’d)CompoundTarget / Mechanism of Action

Modality

Indication

KY1051CXCR4 mAb

mAb

Immuno-oncology

Not disclosed

PAR-2

PeptideInflammatory diseases

Not disclosed

Targeted Protein Degradation

SME

Gastrointestinal disorders

Not disclosed

AI-Augmented Drug Discovery

SME

Neurology diseases

Not disclosed

Ion Channel Drug Discovery

SME

Neurology diseases

Not disclosed

Multi target AI-powered

SME/LME

Immune diseases

Not disclosed

Antibody Discovery

mAb

Disease-relevant GPCR targets

Not disclosed

Multi target AI-powered

SME/LME

Immune diseases

Not disclosed

Gut-brain axis drug discovery

SME

Gastrointestinal disorders

TMP301mGlu5 NAM

SME

Substance use disorders

Not disclosed

OX2 agonist (Intranasal)

PeptideNarcolepsy

Not disclosed

OX2 agonist (Oral)

SME

Narcolepsy

28

Note: SME = small molecule. LME = large molecule

3. R&D
Progress

4. FY2022
Goal

5. Q&A

6. Appendix

Updates (H1)
Post H1 event
PartnerDisc.

Co-development

Co-owned companies

2. Operational
Highlights

✓
✓

PCC

Ph1

Ph2

Ph3

App

Mkt

1. Financial
Results

In-house pipeline
CompoundTarget / Mechanism

Modality

Indication

Not disclosed

H4 antagonist

SME

Atopic Dermatitis

HTL0039732

EP4 antagonist

SME

Immuno-oncology

Not disclosed

GPR52 agonist

SME

Neurology diseases

Not disclosed

EP4 agonist

SME

Inflammatory bowel diseaseNot disclosed

PAR-2 mAb

mAb

Atopic Dermatitis

Not disclosed

SARS CoV-2 Mpro

SME

Coronaviruses

Multiple programs

Not disclosed

SME/LME

Neurology diseases

Multiple programs

Not disclosed

SME/LMEGI and Inflammatory diseases

Multiple programs

Not disclosed

SME/LME

Immunology diseases

In-house Programs

In-house Programs (No longer internally funded. Targeting academic / industrial partnership)29

HTL’310

SSTR5 agonist

PeptideHypoglycaemic disorders

HTL’097

GLP-1 antagonist

PeptideHypoglycaemic disorders

HTL’023

GLP-2/GLP-1 agonist

PeptideIntestinal failure / NASH

Not disclosed

Apelin agonist

PeptidePulmonary Arterial Hypertension

HTL’641

Dual orexin antagonist

SME

Insomnia and sleep disorders

Note: SME = small molecule. LME = large molecule

Originator

Disc.

2. Operational
Highlights

PCC

Ph1

3. R&D
Progress

Ph2

4. FY2022
Goal

Ph3

5. Q&AApp

6. Appendix

Mkt

1. Financial
Results

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Our partnered candidates target significant market opportunities
Multi-billion USD annual peak sales potential for our post-pre-clinical pipeline
Category

Neurologicaldisorders

Indication2

Individual Products~55 million$7.3 billion (2010)$3.9 billion (2009/Aricept)

M1 agonist, M1/M4 agonist

Schizophrenia~20 million$20.7 billion (2011)$5.7 billion (2013/Abilify)

M4 agonist, M1/M4 agonist

Substance use disorders

Other~10.4 million1~3 million-

Cancer

--$2.2 billion (2021)
-

-

-

-

$1.7 billion (2020/Xyrem)--mGlu5 NAM
OX2 agonist
CGRP antagonist, GPR52 agonist~42 million$168.7 billion (2021)$17.2 billion (2021/Keytruda)

A2a antagonist, EP4 antagonist, CXCR4 mAb~10 million$22 billion (2021)$8.3 billion (2021/Humira)

CCR6 antagonist, GPR35 agonist, EP4 agonist

Atopic Dermatitis~13.3 million$6 billion3 (2021)$5 billion (2021/Dupixent)

T2DM/Obesity~420 million$55.5 billion (2021)

Anorexia~10 million

ImmunologicalIBD
disorders

Total

30

Market Size

Our Candidates

Dementia

Narcolepsy

Other

Peak Sales(USD million)

Number ofPatients--~$282 billion/year$6.6 billion (2014/Lantus)--

H4 antagonist, PAR2 mAb
GLP1 agonist
MC4 antagonist~$49 billion/year

Source (Number of patients)：World Health Organization, Evaluate Pharma, The European Federation of Crohn‘s & Ulcerative Colitis Associations (EFCCA), Narcolepsy Network, Inc., GBD 2015 Disease andInjury Incidence and Prevalence Collaborators (October 2016). “Global, regional, and national incidence, prevalence, and years lived with disability for 310 diseases and injuries, 1990-2015: a systematic
analysis for the Global Burden of Disease Study 2015”. Lancet. 388 (10053): 1545–1602 1 The number of patients with drug addiction
Source (Peak Sales):Sales of each indications are extracted form Evaluate Pharma’s data of sales by disease and sales by individual products (as of 30 June. 2022). 2 Sosei Heptares may target one segment in
the market for specific diseases. 3 Since there is no applicable indication category, the market size of “Eczema” is stated. Current market size for Atopic Dermatitis may be larger than stated above.

6. Appendix

1. Financial
Results

Potential revenues from existing partnerships

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

Securing stable revenues in the short to medium term from existing partnerships
Potential milestones from existing partners

Potential royalties from existing partners~$282bn/year

In addition to $5.0bn+ below

Total market size ofour target diseases(maximum)~$49bn/year$5.0bn +1(potentially receive after commercialized)

Commercial milestones(from existing partners)$5.0bn+ 1(Sum up for peak sales of product)

Product Market potential(maximum)Product Market potential (maximum)×~mid-teen percentage1(potentially receive after commercialized)(potentially receive in next c.10 years)
Development
milestones(from existing
partners)

Short to medium term revenue
potentially received in next 10 years(Total drug market for target indication)

Potential royalty(maximum)Mid to long term revenue potentially
received after commercialization

Expand by executing
new collaborations

1 All of these are the maximum values if all existing programs are successful. Note that the probability of success in drug discovery is not relatively high, and realistically not all programs will be successful.
Source: Total market size of our target diseases and Product Market potential is stated in the previous page31

5. Q&A

6. Appendix

1. Financial
Results

Major licensing transactions

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&ANew multi-target collaboration for Neurological disorders with AbbVie signed in August 2022
Partner

Execution

Program

Therapeutic Area(s)Upfront and Initial
Milestones

Potential Total
Milestone1

August 2022

Multi-target Collaboration

Neurological disorders$80m$1.2bnNovember 2021

Collaboration and license agreementfor M4, M1 and M1/M4 dual agonist

Neurological disorders$100m$2.6bnDecember 2020

Collaboration and license agreement
Gastrointestinal, immunology
for GPR 35

$44m

$480m

December 2020

Collaboration and license agreement
for CGRP portfolio

Neurology

$10m

$380m

June 2020

Discovery Collaboration andOption to License2

Inflammatory andAutoimmune

$32m

$400m

August 2019

Multi-target Collaboration

Multiple; Initial focus on
Gastrointestinal$26m$1.2bnJuly 2019

Multi-target Collaboration

Multiple

$26m

$1bn

November 2015

Multi-target Collaboration

Multiple-$1.8bnAugust 2015

Collaboration and license agreement
for A2a antagonist3

Immuno-oncology

$10m

$500m

1Potential option fees, development, regulatory and commercial milestone payments. Sosei Heptares is also eligible to receive tiered royalties ranging from high single digit to mid-teen percentage on future32

net sales of any products developed under the partnership. 2 AbbVie has the option to expand the collaboration by an additional three targets. 3 AstraZeneca have removed the A2a program from theirclinical pipeline as at Q3 2021

6. Appendix

1. Financial
Results

Glossary

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Basic Terminology/Technology
GPCR

G Protein-Coupled Receptor

There are about 800 types of GPCRs in the human body. While 400 of them are known to be potential drug targets, about 300 of them are not yet drugged

StaR

Stabilized Receptor

Sosei Heptares’ proprietary technology to stabilize a GPCR by engineering a small number of single point mutations outside of the ligand-binding site. It enables to identify the structureof GPCRs to be used for SBDD drug discovery as well as antibody drug discovery as antigens
A method to design drugs on a computer base based on the analysis of the three-dimensional structure of the drug target (e.g., protein receptor)

SBDD

Structure-Based Drug Design

TPD

Targeted Protein Degradation

Drugs that promote the degradation of target proteins (e.g., receptors) in cells and aim for therapeutic effects by reducing disease-causing proteins

PAM

Positive Allosteric Modulator

A regulator that binds to unusual active sites (allosteric sites) on the receptor to increase the affinity and effect of the agonist

NAM

Negative Allosteric Modulator

A regulator that binds to an unusual active site on the receptor (allosteric site) and reduces the affinity and effectiveness of the agonist

Ag

AgonistA therapeutic drug that binds to a receptor and activates an intracellular signaling system similar to biological substances

Ant

Antagonist

A therapeutic drug that suppresses biological reactions by binding to receptors and preventing them from binding to biological substances

PK

Pharmacokinetics

Research and testing on the relationship between drug dosage and blood concentration. Mainly describes the rate process of ADME
Research and testing on the relationship between drug concentration and pharmacological effects

PD

Pharmacodynamics

ADME

Absorption, Distribution, Metabolism and Excretion A series of process in the absorption of drugs into the body, distribution within the body, metabolism in the liver and other organs, and excretion in the kidneys and other organs

POM

Proof of Mechanism

Proof of mechanism of action, mainly through biomarkers. It can suggest the possibility of efficacy in fewer cases than POC

POC

Proof of Concept

Proof of a therapeutic concept, primarily through clinical efficacy and safety

AchAcetylcholine

A neurotransmitter released from the peripheral parasympathetic and motor nerves to transmit nerve stimuli

IND

Investigational New Drug

Information packages for development candidates to be submitted to the U.S. Food and Drug Administration (FDA) at the time of initiation of clinical trials

Ph1

Phase1

A study in humans. The main purpose is to confirm the safety of the drug candidate mainly by healthy volunteers.

Ph2

Phase2A study in humans. The main purpose is to confirm the efficacy of the drug candidates on a small scale (however, the number of patients varies greatly depending on the disease)

Ph3

Phase3A study in humans. The main purpose is to determine the efficacy of the drug candidates on a large scale (however, the number of patients varies greatly depending on the disease)

NDA

New Drug Application

An application to the U.S. Food and Drug Administration (FDA) for approval to market a new drug
Disease/Drug

33

LAMA

Long Acting Muscarinic Antagonist

An inhalant that dilates bronchial tubes and improves respiratory function by inhibiting the action of acetylcholine receptors (M3), which increase parasympathetic nerves.

LABA

Long Acting Beta2-Agonist

An inhalant that improves respiratory function by stimulating sympathetic beta2 receptors to dilate the bronchi.

ICS

Inhaled Corticosteroid

An inhalant that suppresses airway inflammation to prevent coughing attacks and other symptoms caused by asthma, also promotes the action of beta 2 stimulants and improve airway
hyperresponsiveness.

mCRPC

Metastatic Castration–Resistant Prostate Cancer

Cancer that has spread (metastasized) beyond your prostate gland and for which hormone therapy is no longer effective in stopping or slowing the disease.

COPD

Chronic Obstructive Pulmonary Disease

A group of diseases that causes damage to the bronchi and lung due to smoking or inhalation of toxic substances, resulting in breathing problems.

AD

Alzheimer’s Disease

Alzheimer's disease is a progressive neurologic disorder that causes the brain to shrink (atrophy) and brain cells to die, the most common cause of dementia .

DLB

Dementia with Lewy Bodies

Protein deposits, called Lewy bodies, develop in nerve cells in the brain regions involved in thinking, memory and movement (motor control), the second most common type of dementia.

6. Appendix

1. Financial
Results

Glossary (cont’d)

2. Operational
Highlights

3. R&D
Progress

4. FY2022
Goal

5. Q&A

Drug discovery target

34

M1

Muscarinic M1 Receptor

M4

Muscarinic M4 Receptor

One of the five subtypes M1 to M5 of muscarinic acetylcholine receptors, known to be involved in behavior and dopamine release.

CGRP

Calcitonin Gene-Related Peptide

CGRP is thought to be involved in vasodilation, decreased heart rate, and increased myocardial contractility via receptors.

A2A

Adenosine A2A receptor

One of the four subtypes of adenosine receptors, A1, A2A, A2B, and A3. It is expressed in many tissues and has multiple functions such as neural activity, vasodilation, and immune
regulation.

GLP-1

Glucagon-like Peptide 1

GLP-1 is secreted by gastrointestinal cells when we eat, and is involved in insulin secretion from the pancreas and appetite regulation in the central nervous system.

CCR6

Chemokine Receptors 6

A type of Β chemokine receptor that responds to chemokines generated during inflammation. It is believed to be involved in inflammation and immunity mainly by it's regulating the
migration activity of leukocytes into inflamed tissues.

MC4

Melanocortin 4 Receptor

MC4 is expressed in the central nervous system and is the main receptor that mediates the appetite suppressing effect of alpha-melanocyte stimulating hormone.

GPR35

G Protein-Coupled Receptor 35

Orphan receptors - expressed mainly in immune and gastrointestinal tissues and is thought to be involved in areas of gastrointestinal tract, cardiovascular, inflammation, and central
nervous system.

CXCR4

CXC Motif Chemokine Receptor 4

CXR4 induces migration of cancer cells and is known to be important in metastasis process.

mGlu5

Metabotropic Glutamate Receptor 5

One of the metabolic glutamate receptors expressed in the central nervous system. Glutamate is known to be the most abundant excitatory neurotransmitter in the human nervous
system.

OX1、OX2

Orexin 1 Receptor、Orexin 2 Receptor

Orexins are a class of neuropeptides that are known to play a role in stabilizing wakefulness and inhibiting sleep.

GPR52

G Protein-Coupled Receptor 52

An orphan receptor that is highly expressed in the striatum- may play a role in the regulation of frontal lobe-striatal and limbic dopamine in psychiatric and neurological disorders.

H4

Histamine H4 Receptor

H4 is particularly expressed in immune system cells and is known to be involved in inflammation and allergy.

EP4

Prostaglandin EP4 Receptor

EP4 suppresses innate and acquired immunity and is known to induce tumor progression
PAR2 is known to be associated with many physiological and pathophysiological processes such as inflammation, tumor metastasis, gastrointestinal motility, pain, and itching

One of the five subtypes M1 to M5 of muscarinic acetylcholine receptors, known to be involved in learning and memory.

PAR2

Protease-Activated Receptor 2

SSTR5

Somatostatin Receptor 5

SSTR is expressed mainly on small intestinal endocrine cells and pancreatic beta cells, inhibits the secretion of gastrointestinal hormones such as GLP-1 and PYY by binding somatostatin.

GLP-2

Glucagon-like Peptide 2

Intestinal GLP-2 is secreted together with GLP-1 during nutrient intake, and repairs and protects the intestinal tract.

Mpro

SARS-CoV-2 Main Protease

An enzyme essential for the replication of Sars-CoV-2(COVID-19 cause virus). One of the target proteins for the development of antiviral drugs.

D2

Dopamine Receptor D2

Dopamine is a neurotransmitter in the brain involved in motor control, motivation, and learning - known to be associated with Parkinson's disease and schizophrenia.

5-HT

5-Hydroxytryptamine Receptor

5-hydroxytryptamine (serotonin), as a transmitter in the central nervous system, is thought to play an important role in the regulation of brain function.

Orphan receptor

A receptor whose existence is known based on genetic analysis, but for whom no ligand has been identified.

LigandA ligand is a molecule that binds to a specific receptor in vivo, such as hormones, neurotransmitters. For example, the ligand for muscarinic receptors is acetylcholine.

6. Appendix

Locations
SOSEI HEPTARESPMO Hanzomon 11F

Steinmetz and Cori Buildings

North West House

2-1 Kojimachi, Chiyoda-ku

Granta Park, Cambridge

119 Marylebone RoadTokyo 102-0083

CB21 6DG

London NW1 5PU

Japan

United Kingdom

United Kingdom