NON – CONFIDENTIAL

World leading drug discovery
targeting GPCRs
39th Annual J.P. Morgan Healthcare Conference
14 January 2021 | © Sosei Group Corporation

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
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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.

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World leading drug discovery targeting GPCRs
World leader in
GPCR drug discovery
and early development

EVOLVING WITH A SPECIALISTTHERAPEUTIC FOCUS

Proprietary GPCR-targeted
StaR® technology and SBDD
platform capabilities

Advancing a broad and deep
pipeline of over 40 partneredand in-house programs acrossmultiple therapeutic areas:
Neurology
Immunology
Gastroenterology
Other

Japan-anchored biotech, withstate-of-the-art R&D center inCambridge, UK
Listed on Tokyo Stock Exchange(4565-JP)

14%
34%
25%

200+

EMPLOYEESWORLDWIDE300+

STRUCTURESSOLVED500+

GLOBALPATENTS

15+

WORLD-LEADINGPARTNERSPARTNER REV.
RECEIVED TO DATE1

1 Includes upfront and milestone payments, royalties and R&D funding received from active, inactive and completed partnerships from 2005 to 2020.

3$700M+

27%

We can unlock the potential of GPCRs with our StaR® technology
GPCRs are well-known targets withsignificant untapped opportunity

~400

GPCR
PROTEINS

StaR® enables us to unlock the potential of GPCRs via advanced
understanding of their structure and atomic/molecular interactions
Unstable
native GPCR

Stabilized
StaR® protein
Enables mAb discovery

75%

SBDD
Novel drugcandidate
SMEs and Peptides

4

Sources: “Unexplored opportunities in the druggable human genome”, Nature Reviews, 2016 ;“Trends in GPCR in Drug Discovery – new agents, targets and indications”, Nature Reviews,
2017; Management analyses

Receptors for which a structure has beenreleased in Protein Data Bank (public domain)

Solved 300+ molecular structuresfrom 30+ different receptors / 60+ StaRs
Receptors for which Sosei Heptares
has developed a StaR®

Strategy leverages core capabilities in drug discovery and development
DRUG DISCOVERY/EARLY DEVELOPMENT DRIVEN BY STAR® / SBDD ENGINE
PRE-DISCOVERYDISCOVERYPRECLINICAL

PH 1a

PH 1b

StaR® Technology

SBDD

DMPK

SAD

Dosing assessment

Structure

Chemistry

Toxicology

MAD

Hit ID

Pharmacology

Translation

Experimental
Medicine

Proof of
MechanismTarget ValidationPrograms advanced through to certain value inflection points
before partnering / seeded into co-owned investment vehicles

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LATE STAGE DEVELOPMENT

PH 2/3

APPROVAL•

Strategic tactical development
team sources novel global
treatments for Japanese patients•

Development plans target
approvals and domestic launch by2025 timeframe
PMDA

PMDA

Clinical Efficacy

PharmacovigilanceEstablished track record of attracting world-leading partners
Active Partnerships~$700
millionUpfront and milestone payments,
royalties and R&D funding
received from partners to date1

Active Spin-Out Asset Centric Vehicles~$7billionTotal potential deal value ofactive partnerships2

1 Encompasses payments received from active, inactive and completed partnerships from 2005 to 2020. 2 Includes potential option fees, upfront, development, regulatory and commercial milestone payments

and committed R&D funding. Excludes potential royalty payments.

6

Successful ~$200m capital raise to fast track our corporate ambition
Funds will be deployed, with a focus on accelerating long-term revenue growth through M&A and future-proofing andexpanding our drug discovery platform

Largest biotech-focused capital raise out of Japan
during COVID-19 pandemicDespite uncertain global economic outlook, strong levels ofinvestor support enabled successful transaction

Significantly improved level of financial flexibility
and enhances our strategic options

Note: USDJPY FX rate of 107.74 used7

June 2020~$50m Equity Follow-On~$150m Euro Yen Convertible Notes

Cash
Capital RaisePF Cash30 Jun 2020 Net Proceeds 30 Jun 2020

Cash
30 Sep 2020

Excellent operational progress despite the ongoing pandemic
Enerzair® Breezhaler® launched in Japan and EU by
Novartis for treating uncontrolled asthma

ORGANIC GROWTH PLAN

Extend technology /platform leadershipGenerate high quality
novel candidates
Advance discovery anddevelopment pipeline

Second novel drug candidate (CCR6 antagonist) from
Pfizer multi-target collaboration entered clinical trials


Execute high value
partnerships

Building a broad pipeline to fuel multiple
high value partnerships that can generate cash

8

Significant scientific progress by Orexia and Inexia
triggered second tranche of funding from Medicxi

Created new company Tempero Bio to advanceclinical development of mGlu5 NAM program inneurological diseases
New collaboration deals with AbbVie, Biohaven and
GSK targeting inflammatory, neurological,
gastrointestinal and immunology diseases

Executing high value collaborations with therapeutic area specialists
Partner

Active Partnered Program

Therapeutic Area

UF / Near Term Payments

Potential deal value1

2020 Collaboration and Licensing
Agreement for GPR35 agonist

Gastrointestinal,
immunology$44m$480m+

2020 Collaboration and Licensing
Agreement for CGRP antagonist

Neurology$10m$380m+

2020 Discovery Collaboration andOption to License2

Inflammatory andAutoimmune$32m$400m+

2019 Multi-target Collaboration

Multiple; Initial focus on
Gastrointestinal$26m$1.2bn+2019 Multi-target Collaboration

Multiple$26m$1.0bn+2015 Multi-target Collaboration

MultipleNil$1.8bn+2015 Collaboration and Licensing
Agreement for A2a antagonist

Immuno-oncology$10m$500m+$148m$5.9bn+TOTAL
1 Potential option fees, development, regulatory and commercial milestone payments, plus royalties on global commercial sales;
2 AbbVie has the option to expand the collaboration by an additional three targets

9Productive discovery engine generating multiple high quality candidates
LAST 10 YEARS (StaR® / SBDD GENERATED)MEDIUM TERM OUTLOOKDRUG DISCOVERYEARLY DEVELOPMENTTECHNOLOGYDRUG DISCOVERY

Generated

Produced

Deliver at least

Generate on averagehigh quality novel
preclinical candidates

IND1 clinical candidates
that have enteredhuman trials

new programs to lead
optimization stage every
2 years

new preclinicalcandidates
every year

24

8

4

2

Candidates to be partnered/ seeded into co-owned investment vehicles

Focus on targets across immunology, neurology and gastroenterology, with validated translational
biology. Further emphasis on small molecule chemistry with efficient synthesis.
Note: 1 IND = Investigational New Drug

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Robust partnered and proprietary pipeline to fuel future value creation
Pre-Discovery /Discovery
Discovery Collab.
and Licensing

Preclinical development
Single target

CGRP ant.

Metabolic

Neurology

GPR35 ag.

Solid tumors

A2a ant. combo(s)mCRPC

AsthmaOravi®

I/O

Mouth candidiasis

Co-owned
Investments

ongoing
Neurology
GI / Inflammation
Immunology

mGlu5 NAM
Substance Use

H4 ant.

Atopic Dermatitis

EP4 ant.

Immuno-oncology

GLP-2 ag. peptide
Intestinal failure

GPR52 ag.
Neurology

PAR2 mAb

Atopic Dermatitis

M1 ag. Backup
Neurology

SSTR5 ag. peptide
Endocrine

M1 ag1 HTL’318
DLB

M4 ag. HTL’878
Neurology

M1 ag. HTL’936
Neurology

Note: Seebri®, Ultibro®, Enerzair® and Breezhaler® are registered trademarks of Novartis AG. 1 Phase 2 trial of HTL0018318 for DLB in Japan has been withdrawn. The Group plans to resubmit a new clinical trial
notification for HTL0018318 (or another novel M1 agonist) to the Japanese Pharmaceuticals and Medical Devices Agency (PMDA) in the future.

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COPD

Enerzair® Breezhaler®

IBD

CXCR4 mAb

10+ programs

Ultibro® Breezhaler®

COPD

CCR6 ant.

[Undisc.]Marketed

Seebri® Breezhaler®

T2DM/Obesity

GLP-1 ant. peptide
Endocrine

A2A ant.

Phase 2

GLP-1 ag.

IBD

Co-development /Profit Share Collab.

Phase 1

Partnered GPCR Program
In-house GPCR Program
Other Medicines
Recently regained programRegained global rights to muscarinic agonist programs from AbbVie
Now a greatly advanced and enriched portfolio of selective muscarinic agonists
Sosei Heptares receives all programs underdevelopment, together with the associated IP and
preclinical and clinical data generated from thepartnership with Allergan
Includes a pipeline of next-generation
selective muscarinic agonists
with newly developed chemistry
StaR® and SBDD precision-design platform
has delivered a patent estate of chemically diverse
M4, M1 and M1/M4 muscarinic agonist back-ups
in preclinical development

Program
M4 agonist

M1 agonist

M1 / M4 dual agonist

CompoundStage

HTL’878

Ph 1

Undisclosed

Preclinical

HTL’318

Ph 1

HTL’936

Ph 1

Undisclosed

Candidate Selection

Undisclosed

Discovery

Undisclosed

Discovery

Undisclosed

Candidate Selection

We regained a larger and strengthened IP portfolio following over $55m of investment from Allergan,
including a pipeline of next-generation selective muscarinic agonists with novel and diverse chemistry
Note: Blue denotes currently in preclinical stage or about to enter preclinical stage

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Potential to deliver transformative new treatments for patients
Muscarinic M4 and M1 receptors are validated targets for psychosis and cognition
Muscarinic M4 and M1 receptors represent
validated targets for the treatment of psychosis
and cognition, respectively

Xanomeline, the M4/M1 preferring agonist, achieved
human Proof of Concept in double-blind, placebocontrolled trials in SZ and AD patients

Selective orthosteric agonists have been very
challenging despite over 25 years of effort bymajor global pharma~20M
SCHIZOPHRENIA~50M
GLOBAL SUFFERERS$818BNSOCIETAL COST

DEMENTIA

1.1%
COST OF DEMENTIAGLOBAL GDP

Muscarinic M4 and/or M1 receptor agonists with selectivity over peripheral muscarinic M2 and M3 receptor
subtypes have the potential to be transformative treatments
Source: World Health Organization

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HTL’878 potential to deliver transformative treatments for patients
Schizophrenia remains a huge unmet medical need
Large market withblockbuster sales profiles…

~20M

SZ patients worldwide

Blockbusters sales profiles despite
limited efficacy and severe side effects$10BN+(2020)$13BN+(2026)…Despite no innovationin 70 years
Current treatments use the same
MOA from the 1950s

1st GenD2 modulating

Atypicals

Dual D2/5HT
modulating

2nd Gen
Atypicals

Dual D2/5HT
modulating

Huge opportunity for HTL’878


Selective M4 agonist

Potential First in Class therapywith a novel MOA
Improved tolerability

Significant need for new
treatment options in SZ

The severe side effect profile of Atypicals continues to drive high relapse rates, disease progression anddiscontinuation of treatment – there is a significant need for new treatment options
Source: World Health Organization; EvaluatePharma

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HTL’878 potential to deliver transformative treatments for patients
Highly selective muscarinic M4 agonist with potential to be best-in-class treatment
M4 Selectivity Impacts Brain Functions
M4 Muscarinic
Receptor

Potential Effect

Other
Muscarinic
Receptors

Antipsychosis‒?

Cognition‒

GI Side Effects

?

CV Side EffectsHTL’878

Highly Selective
Muscarinic M4 agonist

Receptor Subtype Selectivity Offers Potential Improvement
Xanomeline (M1/M4) data from SZ and AD patients show targeting
muscarinic receptor impacts brain function
Development limited by GI and CV side effects
Karuna’s KarXT addresses this by adding trospium (M2/M3
antagonist) to offset the GI and CV side effects
Non-selective approach
Cerevel’s CVL-231 is a Positive Allosteric Modulator (PAM) withselectivity for M4 over M1, M3 and M5 (>800x) and over M2 (>390x)
However, has demonstrated moderate treatment-emergent
increases in heart rate

HTL’878 much more selective for M4(over M1, M2 and M3) compared with xanomeline andorthosteric agonists have quite different profile to PAMs

Source: Sosei Heptares Internal Data; Cerevel Therapeutics Company Presentation (November 2020) LINK; Shekhar et al. Am J Psychiatry, Vol 165, Aug 2008. N=20. 2 active and 3 placebo-arm patients
discontinued the study, none due to adverse events; Bodick et al. Arch Neurol, Vol 54, Apr 1997. N = 343. 52% of patients in high-dose arm discontinued treatment due to adverse events.

15

Strongly enabled to fast-track our strategic corporate ambitions
Entered a strategic technology collaboration with
Captor Therapeutics, the European leader intargeted protein degradation.

STRATEGIC GROWTH PLAN

Seek out revenuegenerating acquisitions

Invest / collaborate innovel technologies

In-license late-stage
assets for Japan

Acquiring revenue generating assets, as well as
investing in technologies to expand our capabilities

16

Dec 2020

Entered a technology collaboration with PharmEnable toleverage its proprietary artificial intelligence-enabled andmedicinal chemistry technologies.


Expand drug target
classes beyond GPCRs

Initial focus to identify small molecules targeting a GPCR
with a key role in a strongly validated signalling pathway
implicated in gastrointestinal disorders.

Collaboration to drive novel drug discovery against achallenging peptidergic GPCR target
associated with neurological diseases.
Jan 2021

Priority objectives for FY2021

Commitment to sustainable
development goals

•
•

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Promote sustainable ESG
practices and policies acrossglobal business
Advance coronavirus
program and establish
collaborations with industry
partners to further develop
candidates as oral treatments
for human coronaviruses

Progress organic
growth plan

Execute strategic
growth plan•

Extend technology / platform
leadership••

Generate high quality novel
candidates••

Advance discovery anddevelopment pipeline••

Execute high value
partnerships•

Transformative revenuegenerating acquisition
In-license late-stage assets
for Japan market
Invest / collaborate in novel
technologies
Expand drug target classes
beyond GPCRs

World leading drug discovery targeting GPCRs

G-Protein Coupled Receptors are
the largest family of clinically
relevant targets in the humangenomeDiscovery engine generates on
average two preclinical candidates
p.a. to be partnered or seeded into
co-owned investment vehicles

Focus on targets across neurology,
immunology, gastroenterology andinflammation, with validated
translational biology

Four marketed products and over
40 partnered and in-houseprograms in the pipeline,
including eight assets in Ph I/II1

Well capitalized to execute onorganic and strategic growth plans
Cash balance of $350m post
Jun-20 international offering2
Potential to receive over $7bn inpayments from current partnerships3

Our vision is to become one of Japan’s global biotechnology and drug discovery champions
Note: 1 IND clinical candidates produced by StaR®/SBDD platform that have entered human trials; 2 Cash balance as of 30 September 2020 based on USDJPY FX rate of 107.74; 3 Includes potential option fees,
upfront, development, regulatory and commercial milestone payments and committed R&D funding. Excludes potential royalty payments.

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Thank you for your attention
Chris Cargill
Chief Financial Officer
IR@soseiheptares.com

SOSEI HEPTARESPMO Hanzomon 11F

Steinmetz Building

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

www.soseiheptares.com@soseiheptaresco@soseiheptaresco@soseiheptaresco