PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020

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PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
PULSAR Phase 2
Trial Topline Results
Announcement
January 27, 2020

                                                                                              1
 Sotatercept is an investigational therapy that is not approved for any use in any country.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Acceleron Forward-Looking Statements
THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS ABOUT THE COMPANY’S STRATEGY, FUTURE PLANS and prospects,
including statements regarding the development and commercialization of sotatercept in pulmonary arterial hypertension (“PAH”) and of
the Company's other compounds, the timeline for clinical development and regulatory approval of sotatercept in PAH and of the
Company’s other compounds and the expected timing for reporting of data from ongoing clinical trials, and the potential of the Company’s
compounds as therapeutic drugs. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,”
“possible”, “potential,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain these identifying words.

ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE INCLUDED IN THE FORWARD-LOOKING STATEMENTS DUE TO VARIOUS
factors, risks and uncertainties, including, but not limited to, that preclinical testing of the Company's compounds and data from clinical
trials may not be predictive of the results or success of ongoing or later clinical trials, that the results of any clinical trials may not be
predictive of the results or success of other clinical trials, that regulatory approval of the Company’s compounds in one indication or
country may not be predictive of approval in another indication or country, that the development of the Company's compounds will take
longer and/or cost more than planned, that the Company will be unable to successfully complete the clinical development of the
Company’s compounds, that the Company may be delayed in initiating, enrolling or completing any clinical trials, and that the Company's
compounds will not receive regulatory approval or become commercially successful products. These and other risks and uncertainties are
identified under the heading "Risk Factors" included in the Company's most recent Annual Report on Form 10-K, and other filings that the
Company has made and may make with the SEC in the future.

THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION ARE BASED ON MANAGEMENT’S CURRENT VIEWS, plans,
estimates, assumptions and projections with respect to future events, and the Company does not undertake and specifically disclaims any
obligation to update any forward-looking statements.

 2                                                                                                    This presentation is for investor relations purposes only –
                                                                                                                         Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Habib Dable
Chief Executive Officer

                          This presentation is for investor relations purposes only –
                                             Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
2017 R&D Day: A Strategy and Vision Presented in PAH

    SOTATERCEPT
    In conjunction with announcing the sotatercept collaboration
    amendment with Celgene, we presented:
    ▪ The high unmet medical need in PAH
    ▪ The scientific rationale for targeting proteins within the TGF-beta
      superfamily in PAH
    ▪ Initial preclinical results from our collaborators at the Brigham and
      Women’s Hospital
    ▪ Our belief in the potential to combine sotatercept with background
      PAH-specific therapies
4                                                             This presentation is for investor relations purposes only –
                                                                                 Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Significant Program Progress Made to Date

    ▪ Multiple preclinical presentations at major medical meetings
    ▪ PULSAR trial designed and initiated
    ▪ SPECTRA trial designed and initiated
    ▪ PULSAR trial patient enrollment completed ahead of plan
    ▪ Sotatercept granted FDA’s Orphan Drug Designation in PAH

5
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Sotatercept Phase 2 Trials in Patients with Pulmonary
Arterial Hypertension (PAH)

                   Topline Results Announced                                                     Enrollment Ongoing

6                                                                                                       This presentation is for investor relations purposes only –
    Sotatercept is an investigational therapy that is not approved for any use in any country.                             Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Janethe Pena, MD, PhD
Vice President, Medical Research, Pulmonary

                                              This presentation is for investor relations purposes only –
                                                                 Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Marc Humbert, MD, PhD*
                                      Professor of Respiratory Medicine at the Université Paris-Saclay in Le Kremlin-
                                      Bicêtre, France; Director of the Department of Respiratory and Intensive Care
                                      Medicine, French Pulmonary Hypertension Reference Centre, Hôpital Bicêtre,
                                      Assistance Publique Hôpitaux de Paris, France

    *Dr. Humbert is an investigator in the PULSAR trial and a paid consultant to Acceleron.

8                                                                                      This presentation is for investor relations purposes only –
                                                                                                          Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Pulmonary arterial hypertension: A severe pulmonary vascular
    disease
            •   Definition: chronic pre-capillary pulmonary hypertension
            •   Cause: progressive structural remodeling of the small pulmonary arteries
            •   Consequence: right heart failure and death

          Normal                                          PAH

9                                                                      Galiè N et al. Eur Heart J 2016 & Eur Respir J 2015
PULSAR Phase 2 Trial Topline Results Announcement - January 27, 2020
Pulmonary arterial hypertension: a rare, but not an orphan, disease

          •   Rare: prevalence 15–50/million (incidence 6/million/year)
          •   Pathophysiology: pulmonary artery endothelial cell dysfunction
          •   Drugs: 14 agents approved in the last 25 years (orphan drug status)
          •   Lung/heart–lung transplantation: if refractory to medical therapy

                                             PGI2: -

                                              NO: -
                                              ET-1: +

                                                           SMCs

                         Endothelial cell

10                                                                 Adapted from: Humbert M et al. Circulation 2014
Current PAH treatment
     Targeting 3 major endothelial cell dysfunctional pathways

11
               Humbert et al. N Engl J Med 2004   Humbert et al. Circulation 2014
Targeting endothelial dysfunction in PAH

     ET, endothelin; IP, prostacyclin receptor; NO, nitric oxide; PDE5, phosphodiesterase type 5; PGI2, prostacyclin; sGC, soluble
12   guanylate cyclase.
     Humbert M et al. Circulation 2014;130:2189–208.
Targeting the Prostacyclin, Endothelin and NO Pathways

                        The Nobel Prize in                                                      The Nobel Prize in
                        Physiology or                                                           Physiology or Medicine
                        Medicine 1982                                                           1998
"for their discoveries concerning                                      "for their discoveries concerning nitric oxide as a
prostaglandins and related biologically active                         signalling molecule in the cardiovascular system"
substances"
                                                                                                                                                                    Ser
                                                                                                                                                                          Ser
                                                                                                                                                              Leu               Cy   Ser Cys
                                                                                                                                                                                s
                                                                                                                                                                                               N
                                                                                                                                                             Met

                                                                                                                                                             Asp                                         ET-1
                                                                                                                                                             Lys
                                                                                                                                                                   Glu Cys Val Tyr Phe Cys His Leu Asp Ile   Ile Trp
                                                                                                                                                                                                                       C

Sune K.                  Bengt I.                John R. Vane
                                                                       Robert F. Furchgott          Louis J. Ignarro           Ferid Murad
Bergström                Samuelsson

    1/3 of the prize         1/3 of the prize       1/3 of the prize
                                                                             1/3 of the prize             1/3 of the prize           1/3 of the prize
Sweden                   Sweden                  United Kingdom
                                                                       USA                          USA                        USA
Karolinska Institutet    Karolinska Institutet   The Wellcome
Stockholm, Sweden        Stockholm, Sweden       Research              SUNY Health Science Center   University of California   University of Texas Medical
                                                 Laboratories          Brooklyn, NY, USA            School of Medicine         School at Houston
                                                                                                    Los Angeles, CA, USA       Houston, TX, USA
                                                 Beckenham, United
                                                 Kingdom

b. 1916                  b. 1934                 b. 1927               b. 1916                      b. 1941                    b. 1936
d. 2004                                          d. 2004

13
                                                                                                                                                                      Humbert et al. N Engl J Med 2004
Targeting the Prostacyclin, Endothelin and NO Pathways

14                        Barst et al. N Engl J Med 1996; Rubin et al. N Engl J Med 2002; Galiè et al. N Engl J Med 2005
Unmet need in the modern management era
         Despite drug discovery and development PAH remains a devastating condition

15
                         Humbert M et al. Circulation 2010;122:156–63
How to do better?

• Better use of currently available therapies (strategies)
   – Early detection and management
   – Risk stratification
   – Goal-oriented therapy (with initial/ sequential combination)
   – Initial combination therapy

• Development of novel therapies
   – New treatments targeting other pathways (BMPR-II…)

16
Pulmonary arterial hypertension
          Treatment algorithm

17                                     Galiè et al; Eur Respir J 2019
Targeting novel pathways in PAH

•        Pulmonary artery endothelial cell dysfunction is a major abnormality identified in PAH
•        Three dysfunctional pathways are targetable with 14 approved in the last 20 years (orphan drug status)
•        Lung/heart–lung transplantation should be considered in eligible patients refractory to medical therapy
•        Strong translational research has identified a large number of novel targets in recent years
•        A major challenge will be to prioritize drug discovery and development
•        Improving right heart function is another priority
                                                                           Inflammation
                             Mitochondrial metabolism                                                      Growth factors

                      Dysregulated angiogenesis                                                               BMPR2/TGF beta signaling

                                Extracellular matrix                                                              Calcium signaling

                                                                                                            Vasoactive peptides
                             Neurohormonal activation
                                                                                              Adapted from: Humbert M et al. Circulation 2014;130:2189–208.

    18
                      BMPR2, bone morphogenetic protein receptor type 2; TGF, transforming growth factor
Vallerie McLaughlin, MD*
                                       Professor of Cardiovascular Medicine;
                                       Director of the Pulmonary Hypertension Program
                                       University of Michigan

     *Dr. McLaughlin is an investigator in the PULSAR trial and a paid consultant to Acceleron.

19                                                                                      This presentation is for investor relations purposes only –
                                                                                                           Not for product promotional purposes.
PULSAR Phase 2 Trial Design & Topline Results
                                                This presentation is for investor relations purposes only –
                                                                   Not for product promotional purposes.
PULSAR Trial Inclusion Criteria

                                       Key Inclusion Criteria
     ▪ Adults ≥18 years old
     ▪ WHO Group I PAH
     ▪ Functional Class II/III
     ▪ Baseline right heart catheterization with PVR ≥5 Wood Units
     ▪ Baseline 6MWD: 150 – 550 meters

       WHO: World Health Organization; PVR: Pulmonary vascular resistance; 6MWD: 6-minute walk distance

21
5th World Symposium on PH: Hemodynamic Definition of PH/PAH

                               PH                                                                     PAH
                                                                                      Mean PAP ≥25 mm Hg plus
                   Mean PAP ≥25 mm Hg
                                                                                       PAWP ≤15 mm Hg plus
                    at rest during RHC
                                                                                        PVR >3 Wood units

     RHC: right heart catheterization PAP: pulmonary arterial pressure PAWP: pulmonary artery wedge pressure PVR: pulmonary vascular resistance

                                               Hoeper MM et al. J Am Coll Cardiol. 2013;62:D42-D50.
22                                                                                                        This presentation is for investor relations purposes only –
                                                                                                                             Not for product promotional purposes.
PAH Functional Class Assessments
       NYHA: New York Heart Association                       WHO: World Health Organization
         NYHA         WHO
      FUNCTIONAL   FUNCTIONAL                                      DESCRIPTIONS
         CLASS        CLASS

          1             I       No symptoms of pulmonary arterial hypertension with exercise or at rest

                                No symptoms at rest but uncomfortable and short of breath with normal activity such
          2            II       as climbing a flight of stairs, grocery shopping, or making the bed

                                Activities greatly limited by shortness of breath, fatigue, or near fainting. Patients in
          3            III      this class have a difficult time doing normal chores around the house and have to take
                                breaks while doing activities of daily living.

                                Symptoms at rest and severe symptoms with any activity. Patients may faint especially
          4            IV       while bending over with their heads lowered. Most patients in this class are also
                                volume overloaded with edema in their feet and ankles from right heart failure

23                                                                                      This presentation is for investor relations purposes only –
                                                                                                           Not for product promotional purposes.
PULSAR Phase 2 Trial Design
                                   Double-Blind                            Extension Period
                 106 subjects    Treatment Period          Re-randomize       18 months
                 Randomized          6 months               PBO group
                   (3:3:4)                                     (1:1)

                                  Placebo (PBO) plus                      0.3 mg/kg Sotatercept
                                Standard of Care (SOC)                          plus SOC
                                        N = 32

                                                                          0.7 mg/kg Sotatercept
                                                                                plus SOC
     Screening                  0.3 mg/kg Sotatercept
      28 days                         plus SOC
                                       N = 32                             0.3 mg/kg Sotatercept
                                                                                plus SOC

                                0.7 mg/kg Sotatercept
                                      plus SOC                            0.7 mg/kg Sotatercept
                                       N = 42                                   plus SOC

                                                                                                  Long-term safety and
                                                   24-week Primary and                             efficacy endpoints
                                                   Secondary Endpoints

24                                                                            This presentation is for investor relations purposes only –
                                                                                                 Not for product promotional purposes.
PULSAR Phase 2 Trial Endpoints

     Primary Endpoint
      ▪ Change from baseline in pulmonary vascular resistance (PVR)
     Key Secondary Endpoint
      ▪ Change from baseline in 6-minute walk distance (6MWD)
     Other Secondary Endpoint
      ▪ Change from baseline in NT-proBNP
      ▪ Change in World Health Organization (WHO) functional class

     The trial was powered to detect an 18% reduction in the primary endpoint of
       PVR and a 24-meter improvement in the secondary endpoint of 6MWD.

25                                                              This presentation is for investor relations purposes only –
                                                                                   Not for product promotional purposes.
PULSAR Phase 2 Trial Topline Results Summary
     Primary Endpoint
      ▪ In patients on stable background PAH-specific therapies, sotatercept demonstrated a
        statistically significant reduction in PVR at week 24 versus placebo.

     Key Secondary Endpoint
      ▪ The trial achieved a statistically significant improvement in the key secondary endpoint
        of 6MWD.
     Other Secondary Endpoint
      ▪ The trial also achieved a statistically significant improvement in NT-proBNP and WHO
        functional class.
     Safety
      ▪ Generally well tolerated and adverse events were generally consistent with previously
        published data on sotatercept in other diseases
26                                                                         This presentation is for investor relations purposes only –
                                                                                              Not for product promotional purposes.
KOL View on PULSAR Topline Results

     *Drs. McLaughlin and Humbert are investigators in the PULSAR trial and are paid consultants to Acceleron.
27                                                                                       This presentation is for investor relations purposes only –
                                                                                                            Not for product promotional purposes.
Summary
Habib Dable
Chief Executive Officer

                          This presentation is for investor relations purposes only –
                                             Not for product promotional purposes.
Summary

        High unmet medical need for new                                                   PULSAR topline results establish proof-of-
        treatment options for patients with PAH.                                          concept for Acceleron’s lead pulmonary
                                                                                          program (sotatercept) in PAH.

       The PULSAR Phase 2 trial met its primary                                             Sotatercept was generally well
       (PVR) and key secondary (6MWD) endpoints                                             tolerated in the trial and adverse events
       The trial also achieved a statistically                                              were generally consistent with
       significant improvement in other secondary                                           previously published data on
       endpoints, including NT-proBNP and WHO                                               sotatercept in other diseases.
       functional class.

29                                                                                                           This presentation is for investor relations purposes only –
     Sotatercept is an investigational therapy that is not approved for any use in any country.                                 Not for product promotional purposes.
A Significant Step Toward our Goal with Sotatercept in
     PAH
                            Currently Approved
                           PAH-Specific Medicines
                              Multiple Pathways
                        Primarily Promote Vasodilation

                               Endothelin Receptor
                                Antagonists (ERAs)
                                                                             +
                                  PDE-5 Inhibitors
                                                                             +                     SOTATERCEPT
                                                                                               A novel investigational
                                  sGC Stimulators
                                                                             +                       medicine
                                     Prostacyclin
                                                                             +
                      Initial goal: A combination approach with the potential to
                           reverse vascular remodeling in patients with PAH
30
      Sotatercept is an investigational therapy that is not approved for any use in any country.
Priorities for Sotatercept Program in PAH

     ▪   End of Phase 2 meeting with health authorities
     ▪   Presentation and publication of PULSAR Phase 2 trial results
     ▪   Planning for further global development of sotatercept in PAH
     ▪   SPECTRA Phase 2 trial preliminary results expected by YE2020
     ▪   Results from PULSAR trial long-term extension period

31                                                                                                This presentation is for investor relations purposes only –
     Sotatercept is an investigational therapy that is not approved for any use in any country.                      Not for product promotional purposes.
Question & Answer Session

     Habib Dable                           President and Chief Executive Officer

     Janethe Pena, MD, PhD                 Vice President, Medical Research, Pulmonary​

     Marc Humbert, MD, PhD*                Professor of Respiratory Medicine at the Université Paris-Saclay

     Vallerie McLaughlin, MD*              Professor of Cardiovascular Medicine at the University of Michigan

     Jay T. Backstrom, MD, MPH             Executive Vice President, Head of R&D

     Sujay Kango                           Senior Vice President and Chief Commercial Officer

     Todd James                            Vice President, Investor Relations and Corporate Communications

        *Drs. McLaughlin and Humbert are investigators in the PULSAR trial and are paid consultants to Acceleron.
32                                                                                          This presentation is for investor relations purposes only –
                                                                                                               Not for product promotional purposes.
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