Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...

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Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
Switching off inflammation
1st program: to prevent formation of a scar
            Mike J. Davies, MD, FRCS
                  CEO, Carocell Bio Inc
          mike.davies@carocellbio.com
          +1-919-408-7121
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
The Problem: inflammation leads to scar formation

                                      Nothing currently PREVENTS the
                                            formation of a scar

                                   It is widely known that inflammation is
                                    the cause of scaring. Inflammation is
                                   seen as redness after a surgical incision

                                     $37 billion dollar market to manage
                                   existing scars and not one solution truly
                                              eliminates the scars

                                    Recognized need for safe and effective
                                         scar prevention treatment

                                   Carocell Bio’s unique product: JEL3108
        OTC creams & oils               will be steroid-free and safe

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Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
Current standards of care to Reduce Scaring (nothing PREVENTS Scaring)

    Therapy for scar treatment

    Plastic surgery                     Scar revision surgery                                            2nd most common plastic surgical procedure
    Skin camouflage                     Make-up                                                          Waterproof camouflage can stay in place for 2-3 days
    Silicone gels or sheets             Silicone gels or sheets should be placed over the scar           Treatment for 12 hours a day for at least 3 months
    Steroids                            Corticosteroid injections can be used to treat some keloid and   Injections are usually given for several months of treatment
                                        hypertrophic scars
    Laser therapy                       Pulses of light can reduce the redness in a scar by targeting    No long-term studies to prove the effectiveness/safety of laser
                                        the blood vessels                                                therapy

    Cryotherapy                         Liquid nitrogen can be used to freeze keloid scars               Can lighten the colour of the skin

    Dermal fillers                      "plump up" pitted scars                                          Costly and usually temporary
    Skin needling                       Rolling a small device covered in hundreds of tiny needles       Variable results
                                        across the skin
    Surgery with / without skin graft   Making it appear more natural / less noticeable                  Invasive
    Pressure dressings                  Aim is to flatten and soften the scars                           6-12 month treatment 24 hours a day
    Creams                              E45 cream                                                        Makes scar supple
                                        Vitamin D cream                                                  Unproven
                                  JEL3108 works with a novel mode-of-action and delivery method
                                 It will be a first-in-class therapy and a short treatment for patients

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Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
Our Solution is…
                                                   Simplified              LPS/UV
                                                   MAPK p38⍺
    • Topical delivery of p38a-                     cascade
                                                                                            Feedback

      inhibitor                                     Extracellular
                                                       Stimuli
    • Prevent scar formation by
      stopping inflammation
      cascade early on!                              MAPKKK          MAPKKK
                                                                                                                    IL-6
                                    Target for                              MAPKK                          IL-1β
    • Stop collagen deposition     MAPK p38⍺
                                                       MAPKK                                                       TNFα

      that creates a scar           inhibitors,        MAPK               p38α
                                  high up in the
    • Gives increased safety      inflammatory
                                     cascade
      margin over small                               Nuclear       MK2
                                                                                             IL-6

      molecules by using                             Substrates                     IL-1β           TNFα

      peptide

                                            p38α is a key modulator of the Inflammation
5                                            Cascade that blocks collagen deposition
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
The Proof Points – work already done

    • We deliver JEL3108 into
      cytoplasm of cell using                                    Area JEL3108 binds
      safe nanoparticle delivery                                  in docking studies

    • We deliver the peptide
      into dermis of skin
    • Docking studies show
                                      JEL3108 with a
      JEL3108 binds in the
                                    fluorescent tag in
      substrate groove of p38α     the cells’ cytoplasm
    • We have shown novel
      modulation vs traditional
      small molecule p38α
      inhibitors

                                                          JEL3108 delivered into
6                                                            dermis of skin
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
JEL3108 Novel Peptide Significantly Reduces Levels of the Inflammation
    Index (TNF-⍺) in Cellular Studies

                                                      1400

                                                      1200

                      Inflammation Index
                                                      1000

                                           TNF-α (pg/ml)
                                                           800

                                                           600

                                                           400

                                                           200

                                                            0
                                                                 LPS100
                                                                     + 100       LPS10+ 10       LPS1 + 1         LPS0+ 0        Control
                                                                                                                                Control (no
                                                                  Concentration of peptide (ng/ml) after stimulation with LPS      LPS)

                     TNF-⍺ is a pro-inflammatory cytokine that is a recognized marker of inflammation.
                      On exposure to the peptide, TNF-⍺ levels significantly reduced in cellular studies
                                      indicating a significant reduction in inflammation
                  LPS, lipopolysaccharide; TNF, tumor necrosis factor

7
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
JEL3108 Peptide Inhibits the Activation and Activity of p38⍺ in Cellular Studies

                           Activation of p38⍺ is a critical step in the inflammation cascade
                            Levels significantly reduced in cellular studies when exposed
                                    to the Jel-3108 peptide and NP combination

                                                             Prevention of activation of MAPK
                                                       1.4                                                                                                    All doses tested - [100nM (the
                                                       1.2                                                                                                    minimum effective dose - prevent
                       Activated MAPK

                                                                                                                                                              the activation of inflammation
                                        Phospho/p38α
                                                        1
                                                                                                                                                              (Phospho/p38a)
                                                       0.8
                                                       0.6
                                                       0.4
                                                       0.2
                                                        0
                                                                0         100          300        1000
                                                                    Concentration of peptide (nM)
                Cells were analyzed for active (phospho)-MAPK p38α by immunoprecipitation and immunoblotting using Sigma p38 MAPK activity assay kit (product number CS02050)
                MAPK, Mitogen-activated protein kinase

8
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
Demonstrates High Specificity and Selectivity of lead peptide for p38⍺ in
    Biochemical Assays

          JnnK               Cdk2                 Prak                Chk1                 EGF                  Src                 Fak                  Mek                 Akt
                                                                                                                                                                                               Selectivity over related enzymes
                                                                                                                                                                                               (kinases) very important in
          >10                >10                  >10                 >10                  >10                  >10                 >10                  >10                 ~10
                                                                                                                                                                                               preventing unwanted side effects

          Kdr                   Jak3                   Egfr                   ZAP70                  CSK                    IGFR                    p38β                   p38⍺

          7                     7                      4                      4                      3                      0.95                    0.450                  0.003

                                                                          Kinase inhibition (uM)

         The Jel-3108 peptide was screened against a panel of 30 kinases in biochemical assays. Results
                               showed high selectivity and specificity for p38α

                 Akt, protein kinase B; CDK2, cyclin-dependent kinase 2; CHK1, checkpoint kinase1; CSK, C-terminal Src kinase; EGF, epidermal growth factor; EGFR, epidermal growth
                 factor receptor; FAK, focal adhesion kinase; IGFR, insulin-like growth factor receptor; JAK3, Janus kinase 3; JNK, c-Jun N-terminal kinase; KDR, kinase insert domain; MEK,
                 mitogen-activated protein kinase; p38, p38 mitogen-activated protein kinase; PRAK, p38-regulated/activated protein kinase; Src, Src kinase; ZAP70, zeta chain-associated
                 protein kinase 70

9
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
Crystal structure of diphosphorylated
                                                 p38α ‘ACTIVE’ MAP kinase (pdb: 3py3)
                                                                                              The Detail
                                                                                              • Novel Binding

                                                                            Phosphorylation   • Novel Mode of
                                                                                                Action
                                                                            Phosphorylation

                                                                                              • Novel delivery into
                                                                                                cells

                                                                                              • Complete & ‘local’
                                                                                                shutdown of the
                                                                                                p38α pathway

     JEL3108 Novel nanoparticle delivery system will get our payload into cells
     Novel binding mode blocks the inflammation three-fold:
      (1) JEL3108 locks p38α autoactivation by TAB1
      (2) Blocks p38α activation by MKK3, MKK4, and MKK6 (upstream)
      (3) JEL3108 sterically blocks p38α substrates getting phosphorylated (downstream)

10
Switching off inflammation - 1st program: to prevent formation of a scar Mike J. Davies, MD, FRCS - RESI ...
The Carocell Bio Product

     • Safe, sterile, spray formulation applied at the time
       of incision closing and used daily, on the site, for
       up to a week – so it is a short and painless
       treatment cycle
     • Nanoparticles in the spray promote skin
       absorption and uptake by cells to release the
       unique, patented, novel binder which adhere to
       the target
     • Release the unique, patented, novel peptide
       binder which adheres to the target
     • Ameliorates the inflammatory process, reduces &
       stops the collagen deposition thus preventing the
       formation of a scar

11
The Current Market - what people spend on scar reduction

                                  $37bn
                                       234-million
                                       operations
                                       world-wide
                                          (2019)

12
Traction

     • 3 Patents issued
       • USA, EU, Japan (Pending – China)
     • Cellular studies completed
     • Human tissue biopsies ongoing
     • Big pharma excited – we need your help to get there

14
Team

     Mike Davies                   John Nicholson                Ann Mackey                    Graham Combe
     MD, University of Edinburgh   MA, University of Cambridge   BA, Vanderbilt University     BSc (Hons), University College London
     Founder & CEO                 Chairman                      CFO                           Business Development

                                                                              Developed drugs       2 exits
                                                                              on market       55 years pharma
                                                                              $200M raised    experience

15
Financials – potential exits within 5 years

       Investment                    Novartis pay $310M for IFM Therapeutics’
                                     inflammation-focused unit
                                     Novartis is handing over $310 million up front and up
                                     to $1.265 billion in milestones.                        Clinical Proof
                                                                                              of Concept
                                     April 2019
        Exit

                                                  Regulatory Approval
                                                   for Clinical Trials

          DeepBridge Capital ~ 50%
                                                                                  $20M
                                          $6.5M
         $1.5M           $3.5M

         2021            2022            2023             2024                    2025           2026
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$10M Investment over 2 years

                                                                       Toxicology
                                                                       GMP manufacture
                                                                       GMP stability
                                                                       Regulatory engagement (IND/CTA)
                                                                       Grow team
                                                                                                             2024
                                     Formulation development
                                     Pig scar prevention study                                            Regulatory
                                     Regulatory engagement (pre-IND)
                                     Patents
                                                                                                         approval for
                                                                                   2023
     Cellular studies                Grow team                                                           clinical trials
     IUK grants                                                                 $6.5M
     Patents
     Deepbridge Capital investment                                                 ask
     Personal investment                         2022
                                              $3.5M
             2021
                                                 ask
          $1.5M
           raised

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See you in
BREAKOUT Room 1

              Thank You
                     Dr Mike Davies
                     NC Biotechnology Center
                     Durham, NC 27709
                     mike.davies@carocellbio.com
                     +1-919-408-7121
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