Confidential © 2018 CRISPR Therapeutics Genome Editing What will the Future bring? Swiss Re, October 2018 Rodger Novak, MD President, Director & Chair of the Board CRISPR Therapeutics AG
Confidential© 2018 CRISPR Therapeutics
Genome EditingWhat will the Future bring?
Swiss Re, October 2018
Rodger Novak, MD
President, Director & Chair of the Board CRISPR Therapeutics AG
Confidential© 2018 CRISPR Therapeutics
Forward-Looking Statements
2
This presentation and other related materials contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: the timing of filing of clinical
trial applications and INDs and timing of commencement of clinical trials, the timing, therapeutic value, development, and
commercial potential of CRISPR/Cas-9 gene editing technologies and therapies, the sufficiency of CRISPR’s cash resources
and the intellectual property coverage and positions of CRISPR, its licensors and third parties. All statements, other than
statements of historical facts, included or incorporated by reference in this presentation and other related materials, including
statements regarding CRISPR’s strategy, future operations, future financial position, future revenue, projected costs,
prospects, plans, and objectives of management, are forward-looking statements. The words ‘‘anticipate,’’ ‘‘believe,’’
‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘target,’’ ‘‘should,’’ ‘‘would,’’
and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements
contain these identifying words. CRISPR may not actually achieve the plans, intentions, or expectations disclosed in these
forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or
events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a
result of various factors, including: uncertainties regarding the intellectual property protection for CRISPR’s technology and
intellectual property belonging to third parties; uncertainties inherent in the initiation and completion of preclinical studies for
CRISPR’s product candidates; availability and timing of results from preclinical studies; whether results from a preclinical trial
will be predictive of future results of the future trials; expectations for regulatory approvals to conduct trials or to market
products; and those risks and uncertainties described under the heading “Risk Factors” in CRISPR’s most recent annual
report on Form 10-K, and in other filings that CRISPR has made or may make with the U.S. Securities and Exchange
Commission.
In addition, the forward-looking statements included in this presentation and other related materials represent CRISPR’s
views as of the date of the presentation. CRISPR anticipates that subsequent events and developments will cause its views
to change. However, while CRISPR may elect to update these forward-looking statements at some point in the future,
CRISPR specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as
representing CRISPR’s views as of any date subsequent to the date of the presentation. Existing and prospective investors
are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are
made.
Confidential© 2018 CRISPR Therapeutics
The CRISPR/Cas9 Revolution
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A new technology for ‘editing’ defective genes
has raised hopes for a future generation
of medicines
DISRUPTION DELETION CORRECTION
Specific, efficient, and versatile platform
Confidential© 2018 CRISPR Therapeutics
CRISPR Gene Editing is Precise and Highly Efficient
4
https://www.youtube.com/watch?v=UKbrwPL3wXE
Confidential© 2018 CRISPR Therapeutics
CRISPR Publications Between 2012 and 2017
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› Fully democratized technology – academia as driver of innovation
› Reasons are ease of use, versatility, preciseness and low costs
Confidential© 2018 CRISPR Therapeutics
Human Therapeutics - Two Principles Apply to Gene Editing
Ex-vivo and in-vivo applications
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IN VIVO – REQUIRES DELIVERY EX VIVO - USES ELECTROPORATION
Confidential© 2018 CRISPR Therapeutics
Adressable Disease Areas, Benefits and Challenges
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Benefits
Challenges
Hematology
Neurodegenerativ
e Diseases
Immuno-Oncology
Cardiology
Ophtalmology
Autoimmune
› Causative treatment of severe diseases of all
organ systems
› Monogenic and polygenic diseases
› Ease of use as driver of innovation –
including unraveling complex disease
biologies
› Early stage of pharmaceutical development
› Ex vivo therapies most amenable – however,
primarily cost intense cell therapies
› Systemic use – in vivo – target organ
specificity (delivery) and pharmacology
Confidential© 2018 CRISPR Therapeutics
Somatic vs Germline Mutations
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Somatic Mutation Germline Mutation
Nonheritable
Mutation in specific organ
tissue or tumor
› Mutations occur in nongermline
tissues
› Cannot be inherited by offspring
› Mutations in egg or sperm
› Can be inherited
› Cause of familial genetic disorders
Mutation in
egg or sperm
All cells
affected in
offspring
Inheritable
Confidential© 2018 CRISPR Therapeutics
Anti-BCMA Allogeneic CAR-T Various
CTX001: β-thalassemia Disruption Clinical trial approvals in
multiple EU countries
CTX001: Sickle cell disease (SCD) Disruption
CRISPR Therapeutics Portfolio (Selection)
9
Editing
approach Research IND-enabling Ph I/II
Glycogen storage disease Ia (GSD Ia) Correction
Duchenne muscular dystrophy (DMD) Disruption
CorrectionSevere combined immunodeficiency (SCID)
Cystic fibrosis (CF) Correction
Hemophilia Correction
CTX101: CD19-positive malignancies Various IND/CTA filings Q4
2018
Anti-CD70 Allogeneic CAR-T Various
In vivo: Various Organ Systems – monogenetic and complex multigenetic origin
Ex vivo: Immuno-oncology – complex multigenetic
Program
Ex vivo: Hematopoietic – mostly monogenetic
Comments
Clinical trial approvals in
multiple EU countries plus
USA
IND/CTA filings Q2
2019
IND/CTA filings
Q42019
Ex vivo: Regenerative medicine (autoimmune) – complex
multigenetic approach
Diabetes mellitus Type I Various
Confidential© 2018 CRISPR Therapeutics
Two Key Components Drive Transformation of Health Care
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• Democratization of gene editing technology
(CRISPR)
• Dramatic drop in genome sequencing costs
• Much improved understanding of human biology
• ……
• Modest treatment effects require huge pivotal
trials – tremendous economic risk of failure
• Limited consideration of variable human
genetics with suboptimal or variable
outcomes
• Often treatment of symptoms – not causative
• …..
Enabling & Affordable
Breakthrough
Technology(ies) Available
Exhaustion of
“One Pill Fits All“
Model
Personalized Medicine
Confidential© 2018 CRISPR Therapeutics
Significant Drop in Cost for Human Genome Sequencing
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› DNA sequencing costs are dropping by 37% per year – current cost US$ 1000/genome
to less than US$ 100 within the next 4 to 5 years
› Data value so far limited since most mutations could not be treated, lack of biological
understanding and context, a weak link that might be addressed by CRISPR
Confidential© 2018 CRISPR Therapeutics
Autologous CAR-T is Transformative, But has Limitations
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Patient-to-patient variability
Costly, complicated manufacturing
Patients progress or die while
waiting
Commercial challenges of bespoke
therapy
. . . But there are still significant
limitations to autologous CAR-T
CAR-T has generated tremendous
excitement . . .
The first-ever treatment that
genetically alters a patient’s own
cells to fight cancer, a milestone
that is expected to transform
treatment in the coming years
Confidential© 2018 CRISPR Therapeutics
Power of CRISPR Gene-Editing - Allogeneic CD19 CAR-T
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CRISPR enables an allogeneic approach that
remedies issues with autologous CAR-T
CTX101 – immuno-oncology product
candidate
Consistent healthy-donor
lymphocytes
Low COGs and simpler
manufacturing
Product available immediately
Off-the-shelf product – broader
access
MHC I
knock-out
TCR
knock-out
Anti-CD19
CAR
Multiplex
editing in
one step
TCRα
locus
CAR
β2M
locus
Confidential© 2018 CRISPR Therapeutics
Changing Clinical Trial Paradigm
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If done properly, potential to expand a phase I/II trial into a registrational trial,
as well as to additional genotype and age cohorts, if supported by safety and
efficacy
Sites
Highly specialized sites needed to
access target patient population
& provide optimal medical care
Reduced number of
available patients incl.
different genotypes
Patients Endpoints
Clinical endpoints incl. selection
of proper surrogate
pharmacological markers of
particular relevance
Confidential© 2018 CRISPR Therapeutics
Foundational Intellectual Property Landscape
15
BROAD
INSTITUTE
Patent Filings
Strategic Investors
>$3BPartners & Total Deal Size
>$3B <$2B
Human Therapeutics Licensees
via
EMMANUELLE
CHARPENTIER
UC
BERKELEY /
U. VIENNA
Foundational IP estate Broad IP estate
› Direct license to foundational IP covering all human therapeutic fields; term through 2033
› Four large pharma partnerships indicate strength of the Charpentier / Berkeley foundational IP estate
› Access to Vilnius IP estate through invention management agreement
Confidential© 2018 CRISPR Therapeutics
Major Developments Using CRISPR Technology SinceInception 2013
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Chinese scientists report first time successful use of CRISPR to edit targetgenes in twin monkey embryos (germline)
January 2014
October 2018
CRISPR Therapeutics announces approval of CTA in beta-thalassemiain several European countries (somatic)
June 2018
October 2016
Chinese scientists report editing of fertilized eggs (non-viable) to gene editbeta-thalassemia (germline)
April 2015
Chinese scientists administer CRISPR modified cells into a patient suffering
from aggressive lung cancer (somatic)
Scientist in Oregon report successful editing of human embryos with cardiacdisease (germline)
August 2017
October 2018China - use of base editing in human embryos to correct a mutation causing
Marfan Syndrome (germline)
China - healthy mice are born to same sex parents using CRISPR
technology (germline)
Confidential© 2018 CRISPR Therapeutics
The US and the UK Quickly Change Position on GermlineEditing
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› 2015 - immediately following first reports of embryonic gene-editing in China, an
international summit convened by the US National Academy of Sciences (NAS) concluded
that actually trying to produce a human pregnancy from such modified germlines was
“irresponsible”.
› 2017 - a report from the NAS and the National Academy of Medicine stated that clinical
trials for editing out heritable diseases could be permitted in the future, but only for
serious conditions under stringent oversight.
› 2018 - United Kingdom’s Nuffield Council on Bioethics stated that heritable genome editing
could be “ethically acceptable in some circumstances.”
› 2018 - a Pew Research Council study released at the end of July found that 72 percent of
Americans think changing an unborn baby’s DNA to treat a serious disease would be an
appropriate use of gene-editing technology.
Confidential© 2018 CRISPR Therapeutics
Impact on Insurers?
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› Thorough prenatal diagnostics possible and affordable
› Value of diagnostic tests will increase significantly,
including whole genome sequencing
› Germline editing would offer prevention of deleterious
diseases
› Significant reduction of morbidity and mortality a must for
genome medicines – highly dependent on disease
indication
› E.g. I/O applications with potential for population-wide
impact
› Some genetic diseases with first time option for causative
treatment› Major increase in cost to be expected – personalized
medicines, cell therapies, and orphan indications as large
cost drivers
› Change in reimbursement strategy – value-based pricing
due to higher sticker prize with post-commercialization
monitoring
Prevention / (Prenatal) Diagnostics
Morbidity / Mortality
Costs / Reimbursment$
Confidential© 2018 CRISPR Therapeutics
Concluding Thoughts
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› The question is not if, but when will personalized or precision medicine have its full impact
on our healthcare system
› Gene editing, particularly CRISPR/Cas9, will be at the forefront in fueling this rapid change
in medicine – two aspects are important
– Diagnosis - CRISPR is the perfect tool to better understand complex disease biology, putting
genomic analysis and with that disease risk assessment in a significantly more valuble context
(whole genome sequencing, definition and identification of genetic risk factors)
– Intervention - CRISPR is about to possibly become the missing link between genomic diagnostic
and potential cure – currently only somatic editing, but possibly germline editing in the future
› Insurers will/can consider this development in an effort to better define patient risk profiles
in the context of life insurances or critical illness insurance
› Major ethical considerations to be considered in the context of germline editing – different
countries with different legislation – but also risk assessment definitions for individual
clients
Confidential
CRISPR Therapeutics
www.crisprtx.com
Confidential
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