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Item 1. Business

2021-09-20 compared with 2020-09-23 · 617 added, 775 removed, 166 unchanged (89% of the section changed)

Company Overview

We endeavor to

become the leader in discovery, development, and commercialization of therapeutic agents capable of addressing significant unmet medical need via the application of the silence and replace approach to the treatment of genetic disorders.

We endeavor to become the leader in discovery, development, and commercialization of therapeutic agents capable of addressing significant unmet medical need via the application of the silence and replace approach to the treatment of genetic disorders.

Benitec Biopharma Inc.

(Benitec or the Company or in the third person, we or our) is a

development-stage biotechnology company focused on the advancement of novel genetic medicines with headquarters in Hayward, California.

The proprietary platform, called DNA-directed RNA interference, or

ddRNAi, combines RNA interference, or RNAi, with gene therapy to create medicines that facilitate sustained silencing of disease-causing genes following a single administration.

The Company is developing ddRNAi-based therapeutics for chronic and

life-threatening human conditions including Oculopharyngeal Muscular Dystrophy (OPMD), and Chronic Hepatitis B.

BB-301 is the most advanced ddRNAi-based genetic medicine currently under development by Benitec.

BB-301 is an internally optimized,

AAV-based gene therapy agent that is designed to both silence the expression of mutated, disease-causing genes (to slow, or halt, the underlying mechanism of disease progression) and replace the mutant genes

with normal, wild type genes (to drive restoration of function in diseased cells).

This fundamental approach to disease management is called silence and replace and this biological mechanism offers the potential to restore

the underlying physiology of the treated tissues and, in the process, improve treatment outcomes for patients suffering from the chronic and, potentially, fatal effects of Oculopharyngeal Muscular Dystrophy (OPMD).

BB-301 has been granted Orphan Drug Designation in the United States and the European Union.

Through the combination of the targeted gene silencing effects of RNAi and the durable transgene expression achievable via the use of modified

viral vectors, the silence and replace approach has the potential to produce long-term silencing of disease-causing genes along with simultaneous replacement of wild type gene function following a single administration of the proprietary genetic

We believe this novel attribute of the investigational agents under development by Benitec may facilitate the achievement of robust clinical activity while greatly reducing the dosing frequencies traditionally expected for medicines

employed for the management of chronic diseases.

Additionally, the establishment of chronic gene silencing and gene replacement may significantly reduce the risk of patient non-compliance during the course of

medical management of potentially fatal clinical disorders.

We will require additional financing to progress our product candidates

through to key inflection points.

Our proprietary technology platforms are designated as

DNA-directed RNA interference, or ddRNAi, and silence and replace.

ddRNAi is designed to produce long-term silencing of disease-causing genes, by combining RNA interference, or RNAi,

with viral delivery agents typically associated with the field of gene therapy (i.e.

viral vectors).

Modified AAV vectors are employed to deliver genetic constructs which encode short hairpin RNAs that are, then, serially expressed and processed, to

produce siRNA molecules within the transduced cell for the duration of the life of the target cell.

These newly introduced siRNA molecules drive long-term, and

potentially permanent, silencing of the expression of the disease-causing gene.

The silence and replace approach further bolsters the biological benefits of long-term silencing of disease-causing

genes by incorporating multifunctional genetic constructs within the modified AAV vectors to create an AAV-based gene therapy agent that is designed to both silence the expression of mutated, disease-causing

genes (to slow, or halt, the underlying mechanism of disease progression) and, simultaneously, replace the mutant genes with normal, wild type genes (to drive restoration of function in diseased cells).

This fundamentally distinct

approach to disease management offers the potential to restore the underlying physiology of the treated tissues and, in the process, improve treatment outcomes for patients suffering from the chronic and, potentially, fatal effects of diseases like

Oculopharyngeal Muscular Dystrophy (OPMD).

Traditional gene therapy is defined by the introduction of an engineered transgene to correct

the pathophysiological derangements derived from mutated or malfunctioning genes.

Mutated genes can facilitate the intracellular production of disease-causing proteins or hamper the production of critical, life-sustaining, proteins, and the

introduction of a new transgene can facilitate the restoration of production of normal proteins within the diseased cell, thus, restoring natural biological function.

Critically, the implementation of this traditional method of gene therapy cannot

eliminate the expression, or the potential deleterious effects of, the underlying mutant gene (as mutant proteins may be continually expressed and aggregate or drive the aggregation of other native proteins within the diseased cell).

In this regard,

the dual capabilities of the proprietary silence and replace approach to silence a disease-causing gene via ddRNAi and simultaneously replace the wildtype activity of a mutant gene via the delivery of an engineered transgene could facilitate the

development of differentially efficacious treatments for a range of genetic disorders.

Re-domiciliation

On April 15, 2020, or the Implementation Date, the re-domiciliation, or the Re-domiciliation, of Benitec Biopharma Limited, a public company incorporated under the laws of the State of Western Australia, or Benitec Limited, was completed in accordance with the Scheme Implementation

Agreement, as amended and restated as of January 30, 2020, between Benitec Limited and us.

As a result of the Re-domiciliation, our jurisdiction of incorporation was changed from Australia to Delaware,

and Benitec Limited became our wholly owned subsidiary.

The Re-domiciliation was effected

pursuant to a statutory scheme of arrangement under Australian law, or the Scheme, whereby on the Implementation Date, all of the issued and outstanding ordinary shares of Benitec Limited were exchanged for newly issued shares of our common stock,

on the basis of one share of our common stock, par value $0.0001 per share, for every 300 ordinary shares of Benitec Limited issued and outstanding.

Holders of Benitec Limiteds American Depository Shares, or ADSs (each of which represented 200

ordinary shares), received two shares of our common stock for every three ADSs held.

Our common stock began trading on The Nasdaq Capital

Market, or Nasdaq, at the start of trading on the Implementation Date under the symbol BNTC.

(“Benitec” or the “Company” or in the third person, “we” or “our”) is a development-stage biotechnology company focused on the advancement of novel genetic medicines with headquarters in Hayward, California.

The proprietary platform, called DNA-directed

RNA interference, or ddRNAi, combines RNA interference, or RNAi, with gene therapy to create medicines that facilitate sustained silencing of disease-causing genes following a single administration.

The Company is developing ddRNAi-based therapeutics for chronic and life-threatening clinical indications including Oculopharyngeal Muscular Dystrophy (OPMD), and Chronic Hepatitis B.

is the most advanced ddRNAi-based genetic medicine currently under development by Benitec.

is an AAV-based

gene therapy designed to both silence the expression of mutated, disease-causing genes (to slow, or halt, the underlying mechanism of disease progression) and simultaneously replace the mutant genes with normal, “wild type” genes (to drive restoration of function in diseased cells).

This fundamental therapeutic approach to disease management is called “silence and replace” and this biological mechanism offers the potential to restore the underlying physiology of the treated tissues and, in the process, improve treatment outcomes for patients suffering from the chronic and, potentially, fatal effects of Oculopharyngeal Muscular Dystrophy (OPMD).

has been granted Orphan Drug Designation in the United States and the European Union.

Through the combination of the targeted gene silencing effects of RNAi and the durable transgene expression achievable via the use of modified viral vectors, the silence and replace approach has the potential to produce long-term silencing of disease-causing genes along with simultaneous replacement of wild type gene function following a single administration of the proprietary genetic medicine.

Additionally, the achievement of long-term gene silencing and gene replacement may significantly reduce the risk of patient non-compliance

during the course of medical management of potentially fatal clinical disorders.

We will require additional financing to continue the development of our product candidates through key inflection points.

Our proprietary technology platforms are designated as DNA-directed

RNA interference, or “ddRNAi”, and “silence and replace”.

ddRNAi is designed to produce long-term silencing of disease-causing genes, by combining RNA interference, or RNAi, with viral delivery agents typically associated with the field of gene therapy (i.e., viral vectors).

Modified AAV vectors are employed to deliver genetic constructs which encode short hairpin RNAs that are, then, serially expressed and processed to produce siRNA molecules within the transduced cell for the duration of the life of the target cell.

These newly introduced siRNA molecules drive

long-term, and potentially permanent, silencing of the expression of the disease-causing gene.

The silence and replace approach further bolsters the biological benefits of long-term silencing of disease-causing genes by incorporating multifunctional genetic constructs within the modified AAV vectors to create an AAV-based

gene therapy agent that is designed to both silence the expression of mutated, disease-causing genes (to slow, or halt, the underlying mechanism of disease progression) and, simultaneously, replace the mutant genes with normal, “wild type” genes (to drive restoration of function in diseased cells).

This fundamentally distinct therapeutic approach to disease management offers the potential to restore the underlying physiology of the treated tissues and, in the process, improve treatment outcomes for patients suffering from the chronic and, potentially, fatal effects of diseases like Oculopharyngeal Muscular Dystrophy (OPMD).

Traditional gene therapy is defined by the introduction of an engineered transgene to correct the pathophysiological derangements derived from mutated or malfunctioning genes.

Mutated genes can facilitate the intracellular production of disease-causing proteins or hamper the production of critical, life-sustaining, proteins.

The introduction of a new transgene can facilitate the restoration of production of normal proteins within the diseased cell, thus, restoring natural biological function.

Critically, the implementation of this traditional method of gene therapy cannot eliminate the expression, or the potential deleterious effects of, the underlying mutant gene (as mutant proteins may be continually expressed and aggregate or drive the aggregation of other native proteins within the diseased cell).

In this regard, the dual capabilities of the proprietary silence and replace approach to silence a disease-causing gene via ddRNAi and simultaneously replace the wildtype activity of a mutant gene via the delivery of an engineered transgene could facilitate the development of differentially efficacious treatments for a range of genetic disorders.

Overview of RNAi and the siRNA Approach

The mutation of a single gene can cause a chronic disease via the resulting intracellular production of a disease-causing protein

The mutation of a single gene can cause a chronic disease via the resulting intracellular production of a disease-causing protein (i.e.

an abnormal form of the protein of interest), and many chronic and/or fatal disorders are known to result from the inappropriate expression of a single gene or multiple genes.

In some cases, genetic disorders of this type can be treated

exclusively by silencing the intracellular production of the disease-causing protein through well-validated biological approaches like RNA interference (RNAi).

RNAi employs small nucleic acid molecules to activate an

intracellular enzyme complex, and this biological pathway temporarily reduces the production of the disease-causing protein.

In the absence of the disease-causing protein, normal cellular function is restored and the chronic disease that initially

resulted from the presence of the mutant protein is partially or completely resolved.

In some cases, genetic disorders of this type can be treated exclusively by “silencing” the intracellular production of the disease-causing protein through well-validated biological approaches like RNA interference (“RNAi”).

RNAi employs small nucleic acid molecules to activate an intracellular enzyme complex, and this biological pathway temporarily reduces the production of the disease-causing protein.

In the absence of the disease-causing protein, normal cellular function is restored and the chronic disease that initially resulted from the presence of the mutant protein is partially or completely resolved.

RNAi is potentially applicable to over 20,000 human genes and a large number of disease-causing microorganism-specific genes.

A small double stranded RNA, or dsRNA, molecule (A, Figure 1), comprising one strand known as the sense

strand and another strand known as the antisense strand, which are complementary to each other, is synthesized in the laboratory.

A small double stranded RNA, or dsRNA, molecule (A, Figure 1), comprising one strand known as the sense strand and another strand known as the antisense strand, which are complementary to each other, is synthesized in the laboratory.

These small dsRNAs are called small interfering RNAs, or siRNAs.

The sequence of the sense strand corresponds to a

short region of the target gene mRNA.

The siRNA is delivered to the target cell (B, Figure 1), where a group of enzymes, referred to as the RNA-Induced Silencing Complex, or RISC, process the siRNA (C,

Figure 1), where one of the strands (usually the sense strand) is released (D, Figure 1).

The sequence of the sense strand corresponds to a short region of the target gene mRNA.

The siRNA is delivered to the target cell (B, Figure 1), where a group of enzymes, referred to as the RNA-Induced

Silencing Complex, or RISC, process the siRNA (C, Figure 1), where one of the strands (usually the sense strand) is released (D, Figure 1).

RISC uses the antisense strand to find the mRNA that has a complementary sequence (E, Figure 1) leading to the cleavage of the target mRNA (F, Figure 1).

consequence, the output of the mRNA (protein production) does not occur (G, Figure 1).

As a consequence, the output of the mRNA (protein production) does not occur (G, Figure 1).

Several companies, including Alnylam Pharmaceuticals Inc.

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(“Dicerna”), utilize this approach in their RNAi product candidates.

Importantly, many genetic disorders are not amenable to

the traditional gene silencing approach outlined in Figure 1, as the diseased cells may produce a mixture of the wildtype protein of interest and the disease-causing, mutant variant of the protein, and the underlying genetic mutation may be too

small to allow for selective targeting of the disease-causing variant of the protein through the use of siRNA-based approaches exclusively.

In these cases, it is extraordinarily difficult to selectively silence the disease-causing protein without

simultaneously silencing the wildtype intracellular protein of interest whose presence is vital to the conduct of normal cellular functions.

Our proprietary silence and replace technology utilizes the unique specificity and robust gene silencing capabilities of RNAi while overcoming

many of the key limitations of siRNA-based approaches to disease management.

In the standard RNAi approach, double-stranded siRNA is

produced synthetically and, subsequently, introduced into the target cell via chemical modification of the RNA or alternative methods of delivery.

efficacy has been demonstrated in several clinical indications through the use of this approach, siRNA-based approaches maintain a number of limitations, including:

Clinical management requires repeat administration of the siRNA-based therapeutic agent for multiple cycles to

maintain efficacy;

Importantly, many genetic disorders are not amenable to the traditional gene silencing approach outlined in Figure 1, as the diseased cells may produce a mixture of the wildtype protein of interest and the disease-causing mutant variant of the protein, and the underlying genetic mutation may be too small to allow for selective targeting of the disease-causing variant of the protein through the use of siRNA-based approaches exclusively.

In these cases, it is extraordinarily difficult to selectively silence the disease-causing protein without simultaneously silencing the wildtype intracellular protein of interest whose presence is vital to the conduct of normal cellular functions.

Our proprietary silence and replace technology utilizes the unique specificity and robust gene silencing capabilities of RNAi while overcoming many of the key limitations of siRNA-based approaches to disease management.

In the standard RNAi approach, double-stranded siRNA is produced synthetically and, subsequently, introduced into the target cell via chemical modification of the RNA or alternative methods of delivery.

While efficacy has

been demonstrated in several clinical indications through the use of this approach, siRNA-based approaches maintain a number of limitations, including:

Clinical management requires repeat administration of the siRNA-based therapeutic agent for multiple cycles to maintain efficacy;

Long-term patient compliance challenges due to dosing frequencies and treatment durations;

Therapeutic concentrations of siRNA are not stably maintained because the levels of synthetic siRNA in the target

cells decrease over time;

Novel chemical modifications or novel delivery materials are typically required to introduce the siRNA into the

target cells, making it complicated to develop a broad range of therapeutics agents;

Therapeutic concentrations of siRNA are not stably maintained because the levels of synthetic siRNA in the target cells decrease over time;

Novel chemical modifications or novel delivery materials are typically required to introduce the siRNA into the target cells, making it complicated to develop a broad range of therapeutics agents;

Potential adverse immune responses, resulting in serious adverse effects;

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Our Approach to the Treatment of Genetic Diseases—ddRNAi and Silence and Replace

Our proprietary silence and replace approach to the treatment of genetic diseases combines RNAi with wildtype gene replacement to drive

sustained silencing of disease-causing genes and concomitant restoration of functional wildtype genes following a single administration of the therapeutic agent.

Our proprietary silence and replace approach to the treatment of genetic diseases combines RNAi with wildtype gene replacement to drive sustained silencing of disease-causing genes and concomitant restoration of functional wildtype genes following a single administration of the therapeutic agent.

Benitec employs ddRNAi in combination with classical gene therapy (i.e.

delivery via viral vectors) to overcome several of the fundamental limitations of RNAi.

The silence and replace approach to the treatment

of genetic disorders employs adeno-associated viral vectors (AAVs) to deliver genetic constructs which may, after a single administration to the target tissues:

Chronically express RNAi molecules inside of the target, diseased, cells (to serially silence the intracellular

production of mutant, disease-causing, protein and the wildtype protein of interest);

Simultaneously drive the expression of a wildtype variant of the protein of interest (to restore native

intracellular biological processes);

AAV vectors can accommodate the multi-functional DNA expression cassettes containing the engineered wildtype

transgenes and the novel genes encoding short hairpinRNA/microRNA molecules (shRNA/miRNA) that are required to support the development of therapeutic agents capable of the achievement of the goals of the silence and replace approach to therapy.

Our silence and replace technology utilizes proprietary DNA expression cassettes to foster continuous production of

gene silencing shRNAs and wildtype proteins (via expression of the wildtype transgene).

A range of viral and non-viral gene therapy vectors can be used to deliver the DNA construct into the nucleus of the

target cell and, upon delivery, shRNA molecules are expressed and subsequently processed by intracellular enzymes into siRNA molecules that silence the expression of the mutant, disease causing protein (Figure 2).

transgene delivery via viral vectors) to overcome several of the fundamental limitations of RNAi.

The silence and replace approach to the treatment of genetic disorders employs adeno-associated viral vectors (“AAVs”) to deliver genetic constructs which may, after a single administration to the target tissues:

Chronically express RNAi molecules inside of the target, diseased, cells (to serially silence the intracellular production of mutant, disease-causing, protein and the wildtype protein of interest);

Simultaneously drive the expression of a wildtype variant of the protein of interest (to restore native intracellular biological processes);

AAV vectors can accommodate the multi-functional DNA expression cassettes containing the engineered wildtype transgenes and the novel genes encoding short hairpinRNA/microRNA molecules (shRNA/miRNA) that are required to support the development of therapeutic agents capable of the achievement of the goals of the silence and replace approach to therapy.

Our silence and replace technology utilizes proprietary DNA expression cassettes to foster continuous production of gene silencing shRNAs and wildtype proteins (via expression of the wildtype transgene).

A range of viral and non-viral

gene therapy vectors can be used to deliver the DNA construct into the nucleus of the target cell and, upon delivery, shRNA molecules are expressed and subsequently processed by intracellular enzymes into siRNA molecules that silence the expression of the mutant, disease-causing protein (Figure 2).

In the silence and replace approach (Figure 2):

A DNA construct is delivered to the nucleus of the target cell by a gene therapy vector (A) such as an AAV;

Once inside of the nucleus, the DNA construct drives the continuous production of shRNA

molecules (B) which are processed by an enzyme called Dicer into siRNAs (C);

The processed siRNA is incorporated into RISC and silences the target gene using the same mechanism shown in

When the DNA expression cassette is additionally comprised of a wildtype transgene, upon entry of the DNA

construct into the nucleus of the target cell via the use of the AAV vector, the DNA construct also drives the continuous production of wildtype protein (to restore native intracellular biological processes).

Our strategy is to discover, develop and commercialize treatments that leverage the capabilities of ddRNAi

and the silence and replace approach to disease management.

For selected product candidates, at the appropriate stage, we may collaborate

with large biopharmaceutical companies to further co-develop and, if approved, commercialize our ddRNAi-based and silence and replace-based products to achieve broad clinical and commercial distribution.

specific clinical indications that we deem to be outside of our immediate areas of focus (e.g.

HBV), we will continue to out-license, where appropriate, applications of our ddRNAi and silence and replace

technology to facilitate the development of differentiated therapeutics, which could provide further validation of our proprietary technology and approach to disease management.

Our cash and cash equivalents will be deployed to advance our product candidate BB-301 for OPMD and,

while we are not actively working on the development of BB-103 for the treatment of HBV due to our current liquidity and funding, we will seek a strategic partnership to support its development.

A DNA construct is delivered to the nucleus of the target cell by a gene therapy vector (A) such as an AAV vector;

Once inside of the nucleus, the DNA construct drives the continuous production of shRNA molecules (B) which are processed by an enzyme called Dicer into siRNAs (C);

The processed siRNA is incorporated into RISC and silences the target gene using the same mechanism shown in Figure 1;

When the DNA expression cassette is additionally comprised of a wildtype transgene, upon entry of the DNA construct into the nucleus of the target cell via the use of the AAV vector, the DNA construct also drives the continuous production of wildtype protein (to restore native intracellular biological processes).

Our strategy is to discover, develop and commercialize treatments that leverage the capabilities of ddRNAi and the silence and replace approach to disease management.

For selected product candidates, at the appropriate stage, we may collaborate with large biopharmaceutical companies to further co-develop

and, if approved, commercialize our ddRNAi-based and silence and replace-based products to achieve broad clinical and commercial distribution.

For specific clinical indications that we deem to be outside of our immediate areas of focus (e.g.

HBV), we will continue to out-license,

where appropriate, applications of our ddRNAi and silence and replace technology to facilitate the development of differentiated therapeutics, which could provide further validation of our proprietary technology and approach to disease management.

Our cash and cash equivalents will be deployed to advance our product candidate BB-301

for OPMD and, while we are not actively working on the development of BB-103

for the treatment of HBV, we may seek a strategic partnership to support its development.

Oculopharyngeal Muscular Dystrophy—OPMD

OPMD is an insidious, autosomal-dominant, late-onset degenerative muscle disorder that typically presents in patients at 40-to-50 years of age.

The disease is characterized by progressive swallowing difficulties

(dysphagia) and eyelid drooping (ptosis).

OPMD is an insidious, autosomal-dominant, late-onset degenerative muscle disorder that typically presents in patients at 40-to-50

years of age.

The disease is characterized by progressive swallowing difficulties (dysphagia)

and eyelid drooping (ptosis).

OPMD is caused by a specific mutation in the poly(A)-binding protein nuclear 1, or PABPN1, gene.

OPMD is a rare disease;

however, patients have been

diagnosed with OPMD in at least 33 countries.

Patients suffering from OPMD are well-identified, and significant geographical clustering has been noted for patients with this disorder, which could simplify clinical development and global

commercialization efforts.

BB-301 is an internally optimized,

with normal, wild type genes (to drive restoration of function in diseased cells).

This fundamental approach to disease management is called silence and replace and this biological mechanism offers the potential to restore

BB-301 has been granted Orphan Drug Designation in the United States and the European Union.

of September 3, 2019, the License and Collaboration Agreement with Axovant was terminated.

As a result, all rights and licenses which Benitec had granted to Axovant to develop and commercialize BB-301 and

related gene therapy product candidates terminated.

We are now solely responsible for the costs in connection with the development and commercialization of the BB-301 product candidates.

Prior to such termination, the Benitec team endeavored to conduct several additional exploratory nonclinical analyses in order

to potentially improve the biological efficacy of BB-301 via further optimization of the route of administration employed to dose the target muscle tissues.

The Company is developing BB-103 for the treatment of HBV.

Results of in vivo and in vitro studies, from December 2016, March 2016 and December 2015, demonstrated the potential utility of an approach that combines RNAi with gene therapy to

In April 2017, the Company completed a pre-IND submission with the FDA in which the feedback provided by the agency included details regarding steps required to initiate a clinical trial for BB-103.

As noted, due to our current liquidity and funding, the Company is seeking strategic partnerships to complete the IND enabling studies for BB-103.

however, patients have been diagnosed with OPMD in at least 33 countries.

Patient populations suffering from OPMD are well-identified, and significant geographical clustering has been noted for patients with this disorder, which could simplify clinical development and global commercialization efforts.

is an AAV-based

has been granted Orphan Drug Designation in the United States and the European Union.

On July 9, 2018, the Company entered into a License and Collaboration Agreement with Axovant.

Pursuant to the Agreement, the Company granted Axovant an exclusive worldwide license to develop, manufacture, and commercialize products containing the Company’s product known as BB-301, which was designed for the potential treatment of Oculopharyngeal Muscular Dystrophy.

As of September 3, 2019, the License and Collaboration Agreement with Axovant was terminated.

As a result, all rights and licenses which Benitec had granted to Axovant to develop and commercialize BB-301

and related gene therapy product candidates terminated.

We are now solely responsible for the costs in connection with the development and commercialization of the BB-301

product candidates.

Prior to such termination, the Benitec team endeavored to conduct several additional exploratory nonclinical analyses in order to potentially improve the biological efficacy of BB-301

via further optimization of the route of administration employed to dose the target muscle tissues.

Nonclinical experiments have been completed in support of the prior development of BB-103

for the treatment of HBV.

Results of in vivo and in vitro studies, from December 2016, March 2016 and December 2015, demonstrated the potential utility of an approach that combines RNAi with gene therapy to treat HBV.

In April 2017, the Company completed a pre-IND

submission with the FDA in which the feedback provided by the agency included details regarding steps required to initiate a clinical trial for BB-103.

As noted, the Company may seek strategic partnerships to complete the IND enabling studies for BB-103.

Our Strengths

We believe that the

combination of our proprietary ddRNAi technology and our deep expertise in the design and development of genetic medicines, and specifically ddRNAi-based therapeutics, will enable us to achieve and maintain a leading position in gene silencing and

gene therapy for the treatment of human disease.

We believe that the combination of our proprietary ddRNAi technology and our deep expertise in the design and development of genetic medicines, and specifically ddRNAi-based therapeutics, will enable us to achieve and maintain a leading position in gene silencing and gene therapy for the treatment of human disease.

Our key strengths include:

A first mover advantage for ddRNAi-based therapeutics;

A proprietary ddRNAi-based silence and replace technology platform that may potentially enable the serial

development of single-administration therapeutics capable of facilitating sustained, long-term silencing of disease-causing genes and concomitant replacement of wildtype gene function;

A proprietary AAV vector technology which improves the endosomal escape capability of virus produced in insect

cells using a baculovirus system.

This technology has broad application in AAV-based gene therapies;

The capabilities to drive the development of a pipeline of programs focused on chronic diseases with either large

patient populations, including Chronic Hepatitis B virus infection, or rare diseases, which may potentially support the receipt of Orphan Drug Designation, including OPMD;

A growing portfolio of patents protecting improvements to our ddRNAi, and silence and replace, technology and

product candidates through at least 2036, with additional patent life anticipated through at least 2040.

We endeavor to become the leader in discovery, development, and commercialization of therapeutic agents capable of addressing significant unmet

medical need via the application of the silence and replace approach to the treatment of genetic disorders.

A proprietary ddRNAi-based silence and replace technology platform that may potentially enable the serial development of single-administration therapeutics capable of facilitating sustained, long-term silencing of disease-causing genes and concomitant replacement of wildtype gene function;

A proprietary AAV vector technology which improves the endosomal escape capability of virus produced in insect cells using a baculovirus system.

This technology has broad application in AAV-based

gene therapies;

The capabilities to drive the development of a pipeline of programs focused on chronic diseases with either large patient populations, or rare diseases, which may potentially support the receipt of Orphan Drug Designation, including OPMD;

A growing portfolio of patents protecting improvements to our ddRNAi, and silence and replace, technology and product candidates through at least 2036, with additional patent life anticipated through at least 2040.

We apply the following general strategy to drive the Company towards these goals:

Selectively develop proprietary and partnered programs;

Continue to explore and secure research and development partnerships with global biopharmaceutical companies

supported by the differentiated nature of our scientific platform and intellectual property portfolio.

leadership team will continue to explore partnership opportunities with global biopharmaceutical companies, as we expect that the unique attributes of the proprietary ddRNAi and silence and replace approaches, and the breadth of potential clinical

indications amenable our proprietary methods, to support the formation of collaborations over a broad range of diseases with significant unmet medical need.

Continue to explore and secure research and development partnerships with global biopharmaceutical companies supported by the differentiated nature of our scientific platform and intellectual property portfolio.

Our senior leadership team will continue to explore partnership opportunities with global biopharmaceutical companies, as we expect that the unique attributes of the proprietary ddRNAi and silence and replace approaches, and the breadth of potential clinical indications amenable to our proprietary methods, to support the formation of collaborations over a broad range of diseases with significant unmet medical need.

We seek to actively protect our intellectual property and proprietary technology.

These efforts are central to the growth of our business and

Seeking and maintaining patents claiming our ddRNAi and silence and replace technologies and other inventions

relating to our specific products in development or that are otherwise commercially and/or strategically important to the development of our business;

These efforts are central to the growth of our business and include:

Seeking and maintaining patents claiming our ddRNAi and silence and replace technologies and other inventions relating to our specific products in development or that are otherwise commercially and/or strategically important to the development of our business;

Protecting and enforcing our intellectual property rights;

Strategically licensing intellectual property from third parties to advance development of our product

Strategically licensing intellectual property from third parties to advance development of our product candidates.

The following table sets forth our current product candidates and their development status:

Oculopharyngeal Muscular Dystrophy and Chronic Hepatitis B Virus Infection

BB-301 is a late-stage nonclinical investigational agent currently

in development for the treatment of Oculopharyngeal Muscular Dystrophy.

BB-301 is the lead pipeline program for Benitec, and IND-enabling studies are currently being

A summary of the BB-301 program is provided in Figure 3.

BB-103 has demonstrated robust nonclinical activity during the

evaluation of this agent for the treatment of Chronic Hepatitis B Virus infection.

Benitec is currently seeking strategic partners to advance BB-103 through IND-enabling

In-House Programs

BB-301 for Treatment of Oculopharyngeal Muscular Dystrophy

OPMD is an insidious, autosomal-dominant, late-onset, degenerative muscle disorder that typically presents in patients at 40-to-50 years of age.

is under development for the treatment of Oculopharyngeal Muscular Dystrophy and is currently undergoing evaluation in IND-enabling

is the lead pipeline program for Benitec, and the key attributes of BB-301

are outlined in in Figure 3.

has demonstrated robust nonclinical activity during the evaluation of this agent for the treatment of Chronic Hepatitis B Virus infection.

Benitec is currently seeking strategic partners to advance BB-103

through IND-enabling

Development Programs

for the Treatment of Oculopharyngeal Muscular Dystrophy

OPMD is an insidious, autosomal-dominant, late-onset, degenerative muscle disorder that typically presents in patients at 40-to-50

years of age.

The disease is characterized by progressive swallowing difficulties (dysphagia) and eyelid drooping (ptosis).

OPMD is caused by a specific mutation in

the poly(A)-binding protein nuclear 1, or PABPN1, gene.

OPMD is caused by a specific mutation in the poly(A)-binding protein nuclear 1, or PABPN1, gene.

OPMD is a rare disease, however, patients have been diagnosed with OPMD in at least 33 countries.

Patients suffering from OPMD are well-identified, and significant geographical clustering has

been noted for patients with this disorder, which could simplify clinical development and global commercialization efforts.

ubiquitous factor that promotes interaction between the poly(A) polymerase and CPSF (cleavage and polyadenylation specificity factor) and, thus, controls the length of mRNA poly(A) tails, mRNA export from the nucleus, and alternative poly(A) site

The characteristic genetic mutation underlying OPMD results in trinucleotide repeat expansion(s) within exon 1 of PABPN1 and results in an expanded poly-alanine tract at the N-terminal end of PABPN1.

The mutation generates a protein with an N-terminal expanded poly-alanine tract of up to 18 contiguous alanine residues prone to form aggregates called intranuclear inclusions (INIs).

The INIs that sequester

wildtype PABPN1 could also contribute to loss of the function phenotype associated with OPMD.

Current OPMD Treatments and Products

in Development

PABPN1 is a ubiquitous factor that promotes interaction between the poly(A) polymerase and CPSF (cleavage and polyadenylation specificity factor) and, thus, controls the length of mRNA poly(A) tails, mRNA export from the nucleus, and alternative poly(A) site usage.

The characteristic genetic mutation underlying OPMD results in trinucleotide repeat expansion(s) within exon 1 of PABPN1 and results in an expanded poly-alanine tract at the N-terminal

end of PABPN1.

The mutation generates a protein with an N-terminal

expanded poly-alanine tract of up to 18 contiguous alanine residues prone to the formation of aggregates called intranuclear inclusions (INIs).

The INIs that sequester wildtype PABPN1 could also contribute to loss of the function phenotype associated with OPMD.

Current OPMD Treatments and Investigational Therapeutic Agents in Development

No curative or disease-modifying therapies currently exist for OPMD patients.

Surgical interventions can be

undertaken for palliative purposes, including the use of cricopharyngeal myotomy.

Investigational therapies that have been explored,

unsuccessfully, in the past include:

Surgical interventions can be undertaken for palliative purposes, including the use of cricopharyngeal myotomy.

Investigational therapies that have been explored, unsuccessfully, in the past include:

Intravenous administration of trehalose;

The use of autologous myoblast transplant.

Our Lead, Silence and Replace-Based, OPMD Therapeutic Agent BB-301

BB-301 is composed of a modified AAV serotype 9

(AAV9) capsid that expresses a bifunctional construct under the control of a single muscle specific Spc5-12 promoter to achieve co-expression of both the codon-optimized

PABPN1 mRNA and two shmiR molecules directed against wild type and mutant PABPN1, and the agent is designed to correct the genetic defect underlying OPMD following a single localized administration.

BB-301Design and Mechanism of Action

BB-301 is designed to target two distinct regions of the PABPN1 mRNA via the concomitant expression of

two distinct shmiRs from a single DNA construct and the simultaneous expression of a codon-optimized, siRNA-resistant, version of the wildtype PABPN1 gene (Figure 4) .

In collaboration with researchers at the Royal Holloway University of London and the Institut de Myologie

in Paris, we developed a ddRNAi construct expressing three shRNAs against three distinct regions of PABPN1 mRNA and observed effective silencing of the PABPN1 gene in vitro using this ddRNAi construct.

Furthermore, as part of this

collaboration, we have generated a gene expression construct that produces a siRNA-resistant version of the wildtype PABPN1 gene.

subsequent studies undertaken exclusively by Benitec, a second set of target regions within PABPN1 were identified for therapeutic development and shmiRs designed against these regions.

Additional shmiRs have also been designed for the original

shRNA developed in collaboration with Royal Holloway University of London and the Institut de Myologie.

The silence and replace construct, designated BB-301, incorporates the two best performing

shmiRs, and the gene expression construct that produces a siRNA-resistant version of the wildtype PABPN1 gene, under the control of a muscle-specific promoter.

The mechanism of action of BB-301 is shown in

In initial in vivo studies evaluating the use of direct intramuscular injection of AAV-based constructs with the potential to drive the desired silence and replace approach in the A17 transgenic mouse model of OPMD at the Royal Holloway University of London and the Institut de Myologie, we

observed decreases in muscle fibrosis, increases in cross sectional area of the treated muscles, decreases in intranuclear inclusions, and normalization of muscle strength.

These nonclinical results were published in Nature Communications in

In subsequent studies, Benitec demonstrated in a key non-clinical model (the A17

mouse model) that a single intramuscular injection of BB-301 results in robust intracellular silencing of PABPN1 protein production and concomitant expression of the normal, biologically functional PABPN1

is our Lead, Silence and Replace-Based, OPMD Therapeutic Agent

is composed of a modified AAV serotype 9 (AAV9) capsid that expresses a bifunctional construct under the control of a single muscle specific Spc5-12

promoter to achieve co-expression

of both the codon-optimized PABPN1 mRNA and two shmiR molecules directed against wild type and mutant PABPN1.

designed to correct the genetic defect underlying OPMD following a single localized administration.

BB-301—Design

and Mechanism of Action

is designed to target two distinct regions of the PABPN1 mRNA to accomplish gene silencing via the concomitant expression of two distinct shmiRs from a single DNA construct ( Figure 4

is also engineered to drive the simultaneous expression of a codon-optimized, siRNA-resistant, version of the wildtype PABPN1 gene (Figure 4)

In collaboration with researchers at the Royal Holloway University of London and the Institut de Myologie in Paris, we developed a ddRNAi construct expressing three shRNAs against three distinct regions of PABPN1 mRNA and observed effective silencing of the PABPN1 gene in vitro

using this ddRNAi construct.

Furthermore, as part of this collaboration, we have generated a gene expression construct that produces a siRNA-resistant version of the wildtype PABPN1 gene.

In subsequent studies undertaken exclusively by Benitec, a second set of target regions within PABPN1 were identified for therapeutic development and shmiRs designed against these regions.

Additional shmiRs have also been designed for the original shRNA developed in collaboration with Royal Holloway University of London and the Institut de Myologie.

The ‘silence and replace’ construct, designated BB-301,

incorporates the two best performing shmiRs, and the gene expression construct that produces a siRNA-resistant version of the wildtype PABPN1 gene, under the control of a muscle-specific promoter.

The mechanism of action of BB-301

is shown in Figure 5.

In initial in vivo

studies evaluating the use of direct intramuscular injection of AAV-based

constructs with the potential to facilitate the desired silence and replace approach in the A17 transgenic mouse model of OPMD at the Royal Holloway University of London and the Institut de Myologie, we observed decreases in muscle fibrosis, increases in cross sectional area of the treated muscles, decreases in intranuclear inclusions, and normalization of muscle strength.

These nonclinical results were published in Nature Communications

in April 2017.

In subsequent studies, Benitec demonstrated in a key non-clinical

model (the A17 mouse model) that a single intramuscular injection of BB-301

results in robust intracellular silencing of PABPN1 protein production and concomitant expression of the normal, biologically functional PABPN1 protein.

In the A17 mouse model, the treatment restores muscle strength and muscle weight to wild type levels and improves other physiological hallmarks of the disease (Figure 6a, Figure 6b, Figure 6c, Figure 6d):

Multiple A17 animal cohorts received single doses of BB-301 (over a range

of doses spanning 4x10 8 vg/muscle-to-7.5x10 11 vg/muscle) and,

following BB-301 administration, each cohort was observed for 14- weeks

BB-301 was injected into the Tibialis Anterior (TA) muscle of 10 week old-to-12 week old animals, and 14- weeks post administration each A17 cohort was anesthetized and the contractile properties of the

injected TA muscles were analyzed via in-situ muscle electrophysiology

Intermediate doses of BB-301 resulted in 75% silencing of PABPN1 and 26%

replacement of wild type PABPN1 activity, leading to full restoration of muscle strength, clearance of INIs, and a reduction of fibrosis

Multiple A17 animal cohorts received single doses of BB-301

(over a range of doses spanning 4x10 8

vg/muscle-to-7.5x10

vg/muscle) and, following BB-301

administration, each cohort was observed for 14-weeks

was injected into the Tibialis Anterior (TA) muscle of 10 week old-to-12

week old animals and, 14-weeks

post administration, each A17 cohort was anesthetized and the contractile properties of the injected TA muscles were analyzed via in-situ

muscle electrophysiology

Intermediate doses of BB-301

resulted in 75% silencing of PABPN1 and 26% replacement of wild type PABPN1 activity, leading to full restoration of muscle strength, clearance of INIs, and a reduction of fibrosis

An additional experiment conducted over the course of 20-weeks

demonstrated that more modest doses of BB-301 (which supported only partial resolution of the disease phenotype at week-14) were, surprisingly, able to facilitate

significant benefit at 20-weeks, as evidenced by full restoration of all parameters relating to muscle strength, weight and INI formation

demonstrated that more modest doses of BB-301

(which supported only partial resolution of the disease phenotype at week-14)

surprisingly, able to facilitate significant benefit at 20-weeks,

as evidenced by full restoration of all parameters relating to muscle strength, weight and INI formation

Dose-Dependent shRNA Expression

3 unchanged sentences

Ongoing Development Plans for BB-301

On July 8, 2020, Benitec announced the initiation of the BB-301 Tissue Transduction Study in large

animal subjects.

The BB-301 Tissue Transduction Study is the first of

three planned IND-enabling studies that will be conducted in large animals.

These IND-enabling studies will be carried out under the guidance of the scientific team at

Benitec, with key elements of the study design and execution conducted in close collaboration with a team of leading experts in both medicine and surgery that have been deeply engaged in the treatment of OPMD patients for several decades.

The BB-301 Tissue Transduction study, along with the subsequent non-clinical studies, will be conducted in canine subjects and will support the validation and optimization of the

newly designed method of BB-301 administration, confirm the efficiency of vector transduction in the key tissue compartments underlying the natural history of OPMD, confirm the optimal drug doses in advance of

initiation of human clinical studies, and facilitate observation of key toxicological data-points.

BB-301 Tissue Transduction Study is designed as an 8-week study in Beagle dogs to confirm the transduction efficiency of BB-301

On July 8, 2020, Benitec announced the initiation of the BB-301

Pilot Dosing Study in large animal subjects.

Pilot Dosing Study is the first of two planned IND-enabling

studies that were designed to be conducted in large animals.

These IND-enabling

studies continue to be carried out under the guidance of the scientific team at Benitec, with key elements of the study design and execution conducted in close collaboration with a team of leading experts in both medicine and surgery that have been deeply engaged in the treatment of OPMD patients for several decades.

Pilot Dosing Study, along with the subsequent GLP Toxicology and Biodistribution Study, will be conducted in canine subjects and will support the validation and optimization of the newly designed method of BB-301

administration, confirm the efficiency of vector transduction and transgene expression in the key tissue compartments underlying the natural history of OPMD, confirm the optimal drug doses in advance of initiation of human clinical studies, and facilitate observation of key toxicological data-points.

Pilot Dosing Study was designed as an 8-week

study in Beagle dogs to confirm the transduction efficiency of BB-301

upon administration via direct intramuscular injection into specific anatomical regions of the pharynx through the use of an open surgical procedure.

This new route of BB-301 administration was developed

in collaboration with key surgical experts in the field of Otolaryngology, and this novel method of BB-301 dosing will significantly enhance the ability of a treating physician to accurately administer the AAV-based investigational agent to the muscles that underlie the characteristic deficits associated with the progression of OPMD.

It is important to note that prior

non-clinical studies of BB-301 have reproducibly validated the robust biological activity achieved following direct intramuscular injection.

As an example, direct

injection of BB-301 into the tibialis anterior muscles of A17 mice facilitated robust transduction of the targeted skeletal muscle cells and supported complete remission of the OPMD disease phenotype in this

animal model.

Interim data for the BB-301 Tissue Transduction Study is expected in late 2020 or

BB-103 for the Treatment of Hepatitis B

We are seeking strategic partners to continue the development of BB-103 for the treatment of HBV.

This new route of BB-301

administration was developed in collaboration with key surgical experts in the field of Otolaryngology, and this novel method of BB-301

dosing will significantly enhance the ability of a treating physician to accurately administer the AAV-based

investigational agent to the muscles that underlie the characteristic deficits associated with the progression of OPMD.

It is important to note that prior non-clinical

studies of BB-301

have reproducibly validated the robust biological activity achieved following direct intramuscular injection.

As an example, direct injection of BB-301

into the tibialis anterior muscles of A17 mice facilitated robust transduction of the targeted skeletal muscle cells and supported complete remission of the OPMD disease phenotype in this animal model.

Interim data for the BB-301

Pilot Dosing Study was reported in early 2021:

Benitec conducted the BB-301

Pilot Dosing Study in Beagle dog subjects to demonstrate that direct intramuscular injection of BB-301

via the use of a proprietary dosing device in an open surgical procedure could safely achieve the following goals:

Biologically significant and dose-dependent levels of BB-301

tissue transduction (i.e., delivery of the multi-functional BB-301

genetic construct into the target pharyngeal muscle cells);

Broad-based and dose-dependent expression of the three distinct genes comprising the BB-301

gene construct within the pharyngeal muscle cells;

Durable and biologically significant levels of target gene knock-down (i.e., inhibition of the expression of the gene of interest) within the pharyngeal muscle cells.

The Pilot Dosing Study evaluated the safety and biological activity of two concentrations of BB-301

(1.0+E13 vg/mL and 3.0+E13 vg/mL) across three distinct doses (1.0+E13 vg/mL, 3.0+E13 vg/mL with a low injection volume, and 3.0+E13 vg/mL with a high injection volume) following direct intramuscular injection into the Hypopharyngeus (HP) muscles and the Thyropharyngeus (TP) muscles of Beagle dogs via the use of a proprietary delivery device employed in an open surgical procedure.

The HP muscle in Beagle dogs corresponds to the Middle Pharyngeal Constrictor muscle in human subjects, and the TP muscle in Beagle dogs corresponds to the Inferior Pharyngeal Constrictor muscle in human subjects.

was injected only on Day 1 of the Pilot Dosing Study, and the corresponding canine pharyngeal muscles were harvested for analysis after 8 weeks of observation post-dosing.

dosing was carried out by both a veterinary surgeon and a practicing Otolaryngologist who has extensive experience with the provision of palliative surgical care for OPMD patients.

Further data analyses are ongoing for the canine subjects treated in the BB-301

Pilot Dosing Study, and the interim data-points highlighted here are derived from completed analyses of pharyngeal muscle tissues isolated from 6 Beagle dog subjects (of the 24-subject

study population).

derived from the Pilot Dosing Study and the formal conclusions will be updated as additional study subjects are analyzed.

The key preliminary results are summarized here:

Pharyngeal Muscle Tissue Transduction Levels for BB-301

Regarding Gene Expression Levels Observed for BB-301

Within the Pharyngeal Muscle Tissues (Figure 8, Figure 9, Figure 10):

encodes two distinct siRNA species (i.e., siRNA13 and siRNA17) which are each, independently, capable of inhibiting (i.e., “silencing”) the expression of the mutant form of the PABPN1 protein and the wildtype (i.e., endogenous) form of the PABPN1 protein (importantly, the mutant form of the PABPN1 protein underlies the development and progression of OPMD).

also codes for a wildtype version of the PABPN1 protein whose intracellular expression is unaffected by the inhibitory activities of siRNA13 and siRNA17, and this codon optimized PABPN1 protein (i.e., coPABPN1) serves to replenish the endogenous form of the PABPN1 protein and to replace the mutant form of PABPN1 that underlies the development and progression of OPMD in diseased tissues.

For comparative purposes, is should be noted that the average range of expression for wild type PABPN1 within the pharyngeal muscle cells of Beagle dogs is 4.5 copies per cell-to-7.8

copies per cell.

siRNA13 Expression Levels for BB-301

within Pharyngeal Muscle Tissues

siRNA17 Expression Levels for BB-301

within Pharyngeal Muscle Tissues

coPABPN1 Expression Levels for BB-301

within Pharyngeal Muscle Tissues

Regarding WildType PABPN1 Silencing (i.e.

target “knock-down”) Observed for BB-301

Within the Pharyngeal Muscle Tissues (Figure 11):

As noted above, BB-301

encodes two distinct siRNA species (i.e.

siRNA13 and siRNA17) which are each, independently, capable of inhibiting (i.e., “silencing”) the expression of all forms of the PABPN1 protein (siRNA13 and siRNA17 silence the expression of both wildtype PABPN1 [wtPABPN1] and mutant PABPN1).

While the Beagle dog subjects treated in the current BB-301

Pilot Dosing Study do not express mutant PABPN1, the level of BB-301-driven

gene silencing for the PABPN1 target can be accurately assessed due to the equivalent inhibitory effects of siRNA13 and siRNA17 on both wtPABPN1 and mutant PABPN1.

Thus, the wtPABPN1 silencing activity observed in the current BB-301

Pilot Dosing Study serves as a surrogate for the activity that would be anticipated in the presence of mutant PABPN1.

has been evaluated in prior non-clinical

studies in animals that express mutant PABPN1 and manifest the key signs and symptoms of OPMD and, in these animal models of OPMD, the achievement of PABPN1 silencing levels of 31% inhibition or higher led to complete resolution of OPMD disease symptoms and correction of the histological hallmarks of OPMD.

PABPN1 Silencing (i.e.

“target knock-down”) within Pharyngeal Muscle Tissues

Finally, it is critical to highlight the key methodological distinctions between the current BB-301

Pilot Dosing Study in Beagle dogs conducted by Benitec and the prior Beagle dog dosing study carried out independently by the previous BB-301

licensee of Benitec.

dosing study conducted by the prior BB-301

licensee employed non-ideal

routes and methods of BB-301

administration to the target pharyngeal muscle tissues and employed similarly limited analytical methods at the completion of the dosing phase of the study.

The Benitec team worked to optimize the route and method of administration of BB-301

and to refine the core analytical methods employed following the completion of dosing.

Following these methodological improvements, Benitec demonstrated a 248-fold

improvement (+24,650%) in BB-301

transduction of the HP muscle and a 111-fold

improvement (+11,027%) in BB-301

transduction of the TP muscle relative to the levels of BB-301

transduction observed by the previous BB-301

licensee (Figure 12).

Impact of Benitec-Initiated Methodological Improvements to the BB-301

Large Animal Study Design on the Relative Pharyngeal Muscle Tissue Transduction Levels Achieved

In May 2021 Benitec completed a Scientific Advice Meeting with the National Agency for the Safety of Medicines and Health Products in France (L’Agence nationale de sécurité du médicament et des produits de santé or ANSM).

The Scientific Advice Meeting was held to review the BB-301

GLP Toxicology Study design, the BB-301

GMP Clinical Manufacturing plan, and the design of the First-in-Human

Clinical Trial for BB-301.

Our team awaits the formal receipt of the final Meeting Minutes from the BB-301

Scientific Advice Meeting.

Benitec will provide updates related to each of the key data-points upon receipt of the final Meeting Minutes.

Additionally, Benitec will provide updated results derived from ongoing analyses of the animal subjects treated in the BB-301

Pilot Dosing Study (for which interim data were originally disclosed in February 2021).

Benitec continues to plan for the initiation of the First-in-Human

clinical study of BB-301

in OPMD patients in 2022.

for the Treatment of Hepatitis B

We are seeking strategic partners to continue the development of BB-103

for the treatment of HBV.

Results of in vivo and in vitro studies, from December 2016, March 2016 and December 2015, have, we believe, demonstrated the potential utility of an approach that combines RNAi with gene therapy to treat HBV.

The Company is seeking strategic

partnerships to complete the IND-enabling studies for BB-103.

The human hepatitis B virus is a small DNA virus that, according to the World Health Organization, infects up to 240 million people

worldwide, resulting in up to 780,000 deaths per year.

HBV infection can lead to differential outcomes, ranging from a silent, acute phase infection that can be resolved via the inherent action of the immune system, to a chronic infection requiring

life-long therapy.

In the case of a chronic HBV infection, the presence of viral proteins, particularly the hepatitis B surface antigen, causes hepatic inflammation, liver dysfunction, acute hepatic failure, cirrhosis and/or hepatocellular

The Company may seek strategic partnerships to complete the IND-enabling

studies for BB-103.

The human hepatitis B virus is a small DNA virus that, according to the World Health Organization, infects up to 240 million people worldwide, resulting in up to 780,000 deaths per year.

HBV infection can lead to differential outcomes, ranging from a silent, acute phase infection that can be resolved via the inherent action of the immune system, to a chronic infection requiring life-long therapy.

In the case of a chronic HBV infection, the presence of viral proteins, particularly the hepatitis B surface antigen, can cause hepatic inflammation, liver dysfunction, acute hepatic failure, cirrhosis and, hepatocellular carcinoma.

Current Hepatitis B Treatments

HBV predominantly exists as eight genotypes, designated A through H, with distinct geographic distribution.

According to GlobalData, a market research firm, the global hepatitis B therapeutics market was worth $2.4 billion in 2014 and is

expected to reach a total value of $3.0 billion by 2024 at a Compound Annual Growth Rate of 2.4%.

The current standards of care for HBV consist of antivirals composed of nucleotide and nucleoside analogues, or NUCs, and, less commonly,

interferon therapy.

Most of the currently employed anti-HBV therapies can provide long-term viral

load suppression, however, these therapeutic agents have modest cure rates and possess the additional risk of driving the development of drug-resistant mutations.

The long-term use of interferon, particularly in high doses, may also be associated

with significant side effects, including nausea, vomiting, shortness of breath, dizziness and fatigue, adding to issues with patient compliance for the course of treatment.

According to GlobalData, a market research firm, the global hepatitis B therapeutics market was worth $2.4 billion in 2014 and is expected to reach a total value of $3.0 billion by 2024 at a Compound Annual Growth Rate of 2.4%.

The current standards of care for HBV consist of antivirals composed of nucleotide and nucleoside analogues, or NUCs, and, less commonly, interferon therapy.

Most of the currently employed anti-HBV

therapies can provide long-term viral load suppression, however, these therapeutic agents have modest cure rates and possess the additional risk of driving the development of drug-resistant mutations.

The long-term use of interferon, particularly in high doses, may also be associated with significant side effects, including nausea, vomiting, shortness of breath, dizziness and fatigue, adding to issues with patient compliance for the course of treatment.

Our ddRNAi-based Hepatitis B Therapeutic-BB-103

BB-103 is a ddRNAi-based

therapeutic designed to target the liver and inhibit viral replication and surface-antigen production.

The initial in vivo data for BB-103 suggest that joint administration of BB-103 and a NUC could support reactivation of the host immune response which is believed to be essential for the achievement of cure.

BB-103-Design and Mechanism of Action

The design of the BB-103 DNA construct takes advantage of the structure of the HBV genome.

hepatitis B virus is a small DNA virus with four overlapping open reading frames, meaning several genes are produced from the same DNA sequence by shifting the starting point of the translation process (Figure 7B) .

These four genes are known

as the core, surface, X and polymerase genes.

is a ddRNAi-based therapeutic agent designed to target the liver and inhibit viral replication and surface-antigen production.

The initial in vivo

data for BB-103

suggest that joint administration of BB-103

and a NUC could support reactivation of the host immune response which is believed to be essential for the achievement of cure.

BB-103-Design

and Mechanism of Action

The design of the BB-103

DNA construct takes advantage of the structure of the HBV genome.

The hepatitis B virus is a small DNA virus with four overlapping open reading frames, meaning several genes are produced from the same DNA sequence by shifting the starting point of the translation process (Figure 13B)

These four genes are known as the core, surface, X and polymerase genes.

The core gene encodes the core nucleocapsid protein, which is important in viral packaging and thought to help stabilize cccDNA, and the hepatitis B e-antigen.

surface gene encodes proteins, including s-antigen.

The surface gene encodes proteins, including s-antigen.

The X gene encodes the X protein, which has properties that may be relevant to liver carcinogenesis.

The polymerase gene encodes a large protein with

functions critical for viral packaging and replication.

The polymerase gene encodes a large protein with functions critical for viral packaging and replication.

Although HBV is a DNA virus, it replicates through an RNA intermediate.

BB-103 targets the viral mRNA at three overlapping regions of the genome

(Figure 7A and Figure 7B) , simultaneously silencing the surface, X, core and polymerase genes.

As a result, we believe that the long-term suppression of HBV viral replication, through silencing of the polymerase gene and the HBV RNA used for

replication, the inhibition of HBV viral proteins production, including s-antigen production, through silencing of the surface gene, and the inhibition of the cccDNA, through silencing of the core protein

gene, could lead to eradication of HBV infection in patients by a single administration of BB-103 when paired with a NUC.

targets the viral mRNA at three overlapping regions of the genome (Figure 13A and Figure 13B)

, simultaneously silencing the surface, X, core and polymerase genes.

As a result, we believe that the long-term suppression of HBV viral replication, through silencing of the polymerase gene and the HBV RNA used for replication, the inhibition of HBV viral protein production, including s-antigen

production, through silencing of the surface gene, and the inhibition of the cccDNA, through silencing of the core protein gene, could lead to eradication of HBV infection in patients by a single administration of BB-103

when paired with a NUC.

In Vitro Development Highlights

Our bioinformatics analysis of the major HBV genotypes, A through H, has identified several well-conserved regions of the genome for targeting

with ddRNAi therapeutics, and we have designed and evaluated numerous shRNAs to target these regions.

Our bioinformatics analysis of the major HBV genotypes, A through H, has identified several well-conserved regions of the genome for targeting with ddRNAi therapeutics, and we have designed and evaluated numerous shRNAs to target these regions.

The most advanced nonclinical construct is illustrated in Figure13A.

Regarding the mechanism of action of BB-103, the DNA construct is

delivered to the nucleus of hepatocytes via an AAV8 vector.

Upon reaching the nucleus the construct expresses three distinct shmiRs that are processed intracellularly to produce siRNAs that cleave the HBV mRNA and, thus, prevent the virus from

replicating and producing viral proteins.

Regarding the mechanism of action of BB-103,

the DNA construct is delivered to the nucleus of hepatocytes via an AAV8 vector.

Upon reaching the nucleus the construct expresses three distinct shmiRs that are processed intracellularly to produce siRNAs that cleave the HBV mRNA and, thus, prevent the virus from replicating and producing viral proteins.

Intellectual Property

Benitec seeks to actively procure rights to and protect the intellectual property and proprietary technology that it believes is important to

its business.

Such intellectual property rights include patents claiming our ddRNAi and silence and replace technologies, as well as know-how and trade secrets related to our product candidates and proprietary

Benitec seeks to actively procure rights to and protect the intellectual property and proprietary technology that it believes is important to its business.

Such intellectual property rights include patents claiming our ddRNAi and silence and replace technologies, as well as know-how

and trade secrets related to our product candidates and proprietary technology.

ddRNAi-based treatment of Hepatitis B

The Benitec patent portfolio includes four patent families relevant to Benitecs ddRNAi-based candidate for treatment of hepatitis B virus

(HBV) infection (BB-103).

This includes three patent families directed to RNAi agents targeting HBV and Benitecs AAV patent family which covers the delivery system for

The first patent family directed to RNAi agents targeting HBV, entitled HBV

Treatment (HBV family #1) , relates to single-stranded RNA and shRNA sequences to a range of target regions of the hepatitis B viral genome.

Although drafted to explicitly cover shRNAs (as this was the RNAi format under development at the

time), the claims encompass shRNAs comprised within a microRNA backbone (i.e., short hairpin microRNA (shmiR)) which is the format of RNAi currently in use within Benitecs HBV program.

The Benitec patent portfolio includes four patent families relevant to Benitec’s ddRNAi-based candidate for treatment of hepatitis B virus (HBV) infection (BB-103).

This includes three patent families directed to RNAi agents targeting HBV and Benitec’s AAV patent family which covers the delivery system for BB-103.

The first patent family directed to RNAi agents targeting HBV, entitled “ HBV Treatment (HBV family #1)

”, relates to single-stranded RNA and shRNA sequences to a range of target regions of the hepatitis B viral genome.

Although drafted to explicitly cover shRNAs (as this was the RNAi format under development at the time), the claims encompass shRNAs comprised within a microRNA backbone (i.e., short hairpin microRNA (shmiR)) which is the format of RNAi currently in use within Benitec’s HBV program.

A further patent family relating to shRNA sequences to a range of additional target regions of the hepatitis B viral genome was filed.

patent family is entitled Reagents for treatment of hepatitis B virus (HBV) infection

and use thereof (HBV family #2) and, although drafted to cover shRNAs (as this was the RNAi format under development at the time), the claims encompass shRNA and shmiR.

This patent family is entitled “ Reagents for treatment of hepatitis B virus (HBV) infection

and use thereof (HBV family #2)

” and, although drafted to cover shRNAs (as this was the RNAi format under development at the time), the claims encompass shRNA and shmiR.

The third patent family relevant to HBV relates to the development of constructs.

This patent family, entitled Reagents for treatment

of hepatitis B virus (HBV) infection and use thereof (HBV family #3) , was filed to cover single and triple shmiR constructs currently under development at Benitec.

This patent family, entitled “ Reagents for treatment of hepatitis B virus (HBV) infection and use thereof (HBV family #3)

”, was filed to cover single and triple shmiR constructs currently under development at Benitec.

ddRNAi-based treatment for OPMD

Benitecs patent portfolio for OPMD includes five patent families relating to shRNA and shmiRs targeting PABPN1 (the causative gene for

OPMD), as well as silence and replace therapeutics and treatment strategies for OPMD.

These five families cover the OPMD therapeutic candidate, BB-301, under development at Benitec, treatment

strategies for OPMD that silence PABPN1 which is causative for OPMD and replace with functional PABPN1, and Benitecs AAV patent family which covers the delivery system for BB-301.

BB-301 is a silence and replace construct encoding two shmiRs targeting the endogenous PABPN1 (including variants causative of OPMD) internally designated shmiR-13

and shmiR-17, as well as a codon-optimized PABPN1 replacement construct, the transcript of which is not targeted by shmiR-13 and

Benitec’s patent portfolio for OPMD includes five patent families relating to shRNA and shmiRs targeting PABPN1 (the causative gene for OPMD), as well as ‘silence and replace’ therapeutics and treatment strategies for OPMD.

These five families cover the OPMD therapeutic candidate, BB-301,

under development at Benitec, treatment strategies for OPMD that silence PABPN1 which is causative for OPMD and replace with functional PABPN1, and Benitec’s AAV patent family which covers the delivery system for BB-301.

is a ‘silence and replace’ construct encoding two shmiRs targeting the endogenous PABPN1 (including variants causative of OPMD) internally designated shmiR-13

and shmiR-17,

as well as a codon-optimized PABPN1 replacement construct, the transcript of which is not targeted by shmiR-13

and shmiR-17.

Both shmiRs and the codon-optimized PABPN1 replacement construct are under the control of a muscle-specific promoter.

The first patent family, entitled Reagents for treatment of oculopharyngeal muscular dystrophy (OPMD) and use thereof (OPMD family

#1), arose out of a collaboration with Royal Holloway University of London (RHUL) and relates to three shRNA target regions within PABPN1.

RHUL assigned its ownership interests in this patent family to Benitec, and the PCT application and the

The first patent family, entitled “Reagents for treatment of oculopharyngeal muscular dystrophy (OPMD) and use thereof (OPMD family #1)”, arose out of a collaboration with Royal Holloway University of London (RHUL) and relates to three shRNA target regions within PABPN1.

RHUL assigned its ownership interests in this patent family to Benitec, and the PCT application and the related U.S.

priority document were filed solely in the name of Benitec.

This patent family is directed to RNAi agents targeting specific regions within mutant PABPN1 variants causative of OPMD, as well as use of those RNAi agents in combination

with PABPN1 replacement constructs to treat OPMD.

More specifically, this family includes claims covering shmiR17 of BB-301 This patent family entered the national/regional phase in October/November 2018.

The second patent family, entitled Reagents for treatment of oculopharyngeal muscular dystrophy (OPMD) and use thereof (OPMD family

#2) relates to a second set of target gene sequences within PABPN1 as well as silence and replace construct BB-301 under development at Benitec.

This patent family is directed to RNAi agents targeting specific regions within mutant PABPN1 variants causative of OPMD, as well as use of those RNAi agents in combination with PABPN1 replacement constructs to treat OPMD.

More specifically, this family includes claims covering shmiR17 of BB-301

This patent family entered the national/regional phase in October/November 2018.

The second patent family, entitled “Reagents for treatment of oculopharyngeal muscular dystrophy (OPMD) and use thereof (OPMD family #2)” relates to a second set of target gene sequences within PABPN1 as well as ‘silence and replace’ construct BB-301

under development at Benitec.

The PCT application and the related U.S.

priority document were filed solely in the name of Benitec, and this family entered the national/regional phase in June/July 2019.

This patent family is directed to RNAi agents targeting specific regions within mutant PABPN1 variants causative of

OPMD, as well as silence and replace constructs and use of same for treatment of OPMD.

More specifically, this family includes claims covering shmiR13 and shmiR17 of BB-301 separately, as well as

the full BB-301 knockdown and replacement construct.

A third patent family, entitled

Methods for Treating Oculopharyngeal Muscular Dystrophy (OPMD) (OPMD family #3) has been filed to pursue claims which are broadly directed to the silence and replace treatment concept for OPMD, relying on RNAi agents to

knockdown PABPN1 and replacement with functional PABPN1 which is not targeted by the RNAi agents.

This patent family is directed to RNAi agents targeting specific regions within mutant PABPN1 variants causative of OPMD, as well as ‘silence and replace’ constructs and use of same for treatment of OPMD.

More specifically, this family includes claims covering shmiR13 and shmiR17 of BB-301

separately, as well as the full BB-301

‘knockdown and replacement’ construct.

A third patent family, entitled “Methods for Treating Oculopharyngeal Muscular Dystrophy (OPMD) (OPMD family #3)” has been filed to pursue claims which are broadly directed to the ‘silence and replace’ treatment concept for OPMD, relying on RNAi agents to knockdown PABPN1 and replacement with functional PABPN1 which is not targeted by the RNAi agents.

The claims in this application are not limited to BB-301.

This patent family exists as a PCT application and

was filed solely in the name of Benitec.

A fourth patent family, entitled Methods for Treating Oculopharyngeal Muscular Dystrophy

(OPMD) (OPMD family #4) has been filed to specifically claim the OPMD therapeutic candidate developed by Benitec, BB-301 (described herein).

This patent family exists as a PCT application and was filed

solely in the name of Benitec.

This patent family exists as a PCT application and was filed solely in the name of Benitec.

A fourth patent family, entitled “Methods for Treating Oculopharyngeal Muscular Dystrophy (OPMD) (OPMD family #4)” has been filed to specifically claim the OPMD therapeutic candidate developed by Benitec, BB-301

(described herein).

This patent family exists as a PCT application and was filed solely in the name of Benitec.

AAV with modified phospholipase domain

The Benitec patent portfolio includes a single patent family, entitled Adeno-associated virus (AAV) with modified phospholipase

domain , which relates to an AAV having a modified phospholipase (PLA2) domain in the capsid.

The Benitec patent portfolio includes a single patent family, entitled “ Adeno-associated virus (AAV) with modified phospholipase domain

,” which relates to an AAV having a modified phospholipase (PLA2) domain in

The modified AAV will be used as the delivery system for the OPMD therapeutic candidate and the HBV therapeutic candidate.

We are aware of a third party patent directed to AAV vectors that expires in 2026.

event we receive regulatory marketing approval before the expiration date it may be necessary for us to obtain a license to the patent in order to commercialize.

We cannot guarantee the availability of the license or that it can be obtained on

commercially reasonable terms.

In addition to patent protection of ddRNAi and other technology and our product candidates, we also rely on proprietary know-how that is not patentable or that we elect not to patent, as valuable intellectual property for our business.

This know-how is related to the areas of, among others,

identifying nucleic acid targets for ddRNAi technology and designing ddRNAi constructs for targeting preferred genes.

In the event we receive regulatory marketing approval before the expiration date it may be necessary for us to obtain a license to the patent in order to commercialize.

We cannot guarantee the availability of the license or that it can be obtained on commercially reasonable terms.

In addition to patent protection of ddRNAi and other technology and our product candidates, we also rely on proprietary know-how

that is not patentable or that we elect not to patent, as valuable intellectual property for our business.

This know-how

is related to the areas of, among others, identifying nucleic acid targets for ddRNAi technology and designing ddRNAi constructs for targeting preferred genes.

We have implemented a number of security measures designed to safeguard our know-how

including limiting access to our research facilities, databases and networks.

We also seek to protect our know-how by way of confidentiality agreements when engaging with external providers for progressing our

pipeline of therapeutic candidates.

We also seek to protect our know-how

by way of confidentiality agreements when engaging with external providers for progressing our pipeline of therapeutic candidates.

Laws and Regulations Regarding Patent Terms

The term of individual patents depends upon the legal terms of the patents in the countries in which they are obtained.

In most countries in

which we file, the patent term is 20 years from the earliest date of filing a non-provisional patent application.

In the United States, a patent term may be shortened if a patent is terminally disclaimed over

another patent or as a result of delays in patent prosecution by the patentee.

In most countries in which we file, the patent term is 20 years from the earliest date of filing a non-provisional

patent application.

In the United States, a patent term may be shortened if a patent is terminally disclaimed over another patent or as a result of delays in patent prosecution by the patentee.

A patent’s term may be lengthened by a patent term adjustment, which compensates a patentee for administrative delays by the USPTO in granting a patent.

term of a European patent is 20 years from its filing date, which, unlike in the United States, is not subject to patent term adjustments.

The term of a patent that covers an FDA-approved biologic may also be eligible for patent term

extension, which permits patent term restoration as compensation for the patent term lost during the FDA regulatory review process.

The Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act, permits a patent term

extension of up to five years beyond the expiration of the patent.

The patent term of a European patent is 20 years from its filing date, which, unlike in the United States, is not subject to patent term adjustments.

The term of a patent that covers an FDA-approved

biologic may also be eligible for patent term extension, which permits patent term restoration as compensation for the patent term lost during the FDA regulatory review process.

The Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act, permits a patent term extension of up to five years beyond the expiration of the patent.

The length of the patent term extension is related to the length of time the biologic is under clinical testing regulatory review.

Patent extension cannot extend the remaining term

of a patent beyond a total of 14 years from the date of product approval and only one patent applicable to an approved biologic may be extended.

Similar provisions are available in Europe and other jurisdictions to extend the term of a patent that

covers an approved biologic although the eligibility requirements for any duration of such extension vary.

In the future, if and when our products receive FDA approval, or approval from an equivalent regulatory body in another jurisdiction in which

patent protection is sought or obtained, we expect to apply for patent term extensions on patents covering those products.

Patent extension cannot extend the remaining term of a patent beyond a total of 14 years from the date of product approval and only one patent applicable to an approved biologic may be extended.

Similar provisions are available in Europe and other jurisdictions to extend the term of a patent that covers an approved biologic although the eligibility requirements for any duration of such extension vary.

In the future, if and when our products receive FDA approval, or approval from an equivalent regulatory body in another jurisdiction in which patent protection is sought or obtained, we expect to apply for patent term extensions on patents covering those products.

Our trademarks include registrations for company branding and product names for our pipeline in development.

Several of the trademarks that we

use in connection with our business are described below.

The trademarks that we use in connection with our business include the following:

Country or Territory

Trade Mark (program)

BENITEC ®

United States

European Union

BENITEC BIOPHARMA ®

United States

GIVING DISEASE THE SILENT

TREATMENT ®

GIVING DISEASE THE SILENT

TREATMENT ®

Application or

Registration number

BENITEC BIOPHARMA

SILENCING GENES FOR LIFE

BENITEC BIOPHARMA

BENITEC - logo

International Bureau (WIPO) – designating EU;

GIVING DISEASE THE SILENT TREATMENT

European Union

SILENCING GENES FOR LIFE ®

United States

GIVING DISEASE THE SILENT TREATMENT

United Kingdom

Manufacturing

The manufacture of the complex biological products required for gene therapy is complex and difficult.

We do not currently own or operate

manufacturing facilities for the production of preclinical, clinical or commercial quantities of any of our product candidates.

We are exploring long- term manufacturing alliances with a number of potential partners to investigate manufacturing

processes in order to produce materials at reasonable scale and cost of goods to support future commercialization efforts.

We do not have a long-term agreement with any third-party manufacturer, but we plan to

establish such a relationship with an appropriate manufacturer to serve our long-term needs.

Manufacturing is subject to extensive

regulations that impose various procedural and documentation requirements, which govern record keeping, manufacturing processes and controls, personnel, quality control and quality assurance, among others.

Our contract manufacturing organizations

manufacture our product candidates under cGMP conditions.

The manufacture of the biological products required for gene therapy is complex and difficult.

We do not currently own or operate manufacturing facilities for the production of preclinical, clinical or commercial quantities of any of our product candidates.

We are exploring long-term manufacturing alliances with a number of potential partners to investigate manufacturing processes in order to produce materials at reasonable scale and cost of goods to support future commercialization efforts.

We do not have a long-term agreement with any third-party manufacturer, but we plan to establish such a relationship with an appropriate manufacturer to serve our long-term needs.

Manufacturing is subject to extensive regulations that impose various procedural and documentation requirements, which govern record keeping, manufacturing processes and controls, personnel, quality control and quality assurance, among others.

Our contract manufacturing organizations manufacture our product candidates under cGMP conditions.

cGMP is a regulatory standard for the production of pharmaceuticals that will be used in humans.

Sales and Marketing

We have not yet

established sales, marketing or product distribution operations because our product candidates are in preclinical or clinical development.

If we receive marketing and commercialization approval for any of our product candidates, we intend to market

the product through strategic alliances and distribution agreements with third parties.

We have not yet established sales, marketing or product distribution operations because our product candidates are in preclinical or clinical development.

If we receive marketing and commercialization approval for any of our product candidates, we intend to market the product through strategic alliances and distribution agreements with third parties.

In certain cases, we may market an approved product directly worldwide or in selected geographical segments.

The ultimate implementation of our strategy for

realizing the financial value of our product candidates is dependent on the results of clinical trials for our product candidates, the availability of funds and the ability to negotiate acceptable commercial terms with third parties.

The biopharmaceutical

industry is characterized by intense and dynamic competition to develop new technologies and proprietary therapies.

candidates that we successfully develop and commercialize will have to compete with existing therapies and new therapies that may become available in the future.

While we believe that our proprietary

technology and scientific expertise in gene silencing using ddRNAi provide us with competitive advantages, we face potential competition from many different sources, including larger and

better-funded pharmaceutical, specialty pharmaceutical and biotechnology companies, as well as from academic institutions and governmental agencies and public and private research institutions that may develop potentially competitive products or

technologies.

We are aware of several companies focused on developing gene therapy or gene silencing product candidates, including Alnylam, Arbutus and Arrowhead-developing siRNA-based therapeutics for hepatitis B.

The ultimate implementation of our strategy for realizing the financial value of our product candidates is dependent on the results of clinical trials for our product candidates, the availability of funds and the ability to negotiate acceptable commercial terms with third parties.

The biopharmaceutical industry is characterized by intense and dynamic competition to develop new technologies and proprietary therapies.

Any product candidates that we successfully develop and commercialize will have to compete with existing therapies and new therapies that may become available in the future.

While we believe that our proprietary technology and scientific expertise in gene silencing using ddRNAi provide us with competitive advantages, we face potential competition from many different sources, including larger and better-funded pharmaceutical, specialty pharmaceutical and biotechnology companies, as well as from academic institutions and governmental agencies and public and private research institutions that may develop potentially competitive products or technologies.

We are aware of several companies focused on developing gene therapy or gene silencing product candidates, including Dicerna, Alnylam, Arbutus and Arrowhead.

We are not aware of any companies developing a gene therapy or gene silencing approach for OPMD.

Our product candidates, if approved, would

also compete with treatments that have already been approved and accepted by the medical community, patients and third-party payers.

of our competitors and potential competitors, alone or with their strategic partners, have substantially greater financial, technical and human resources than we do and significantly greater experience in the discovery and development of product

candidates, obtaining FDA and other regulatory approvals of treatments and the commercialization of those treatments.

Mergers and acquisitions in the biotechnology and pharmaceutical industries may result in even more resources being concentrated

among a smaller number of our competitors.

These competitors also compete with us in recruiting and retaining qualified scientific and management personnel and establishing clinical study sites and subject registration for clinical studies, as well

as in acquiring technologies complementary to, or necessary for, our programs.

Our product candidates, if approved, would also compete with treatments that have already been approved and accepted by the medical community, patients and third-party payers.

Many of our competitors and potential competitors, alone or with their strategic partners, have substantially greater financial, technical and human resources than we do and significantly greater experience in the discovery and development of product candidates, obtaining FDA and other regulatory approvals of treatments and the commercialization of those treatments.

Mergers and acquisitions in the biotechnology and pharmaceutical industries may result in even more resources being concentrated among a smaller number of our competitors.

Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies.

We anticipate that we will face intense and increasing competition as new products enter the market and advanced technologies become

We expect any treatments that we develop and commercialize to compete on the basis of, among other things, efficacy, safety, convenience of administration and delivery, price, the level of competition and the availability of reimbursement

from government and other third- party-payers.

Our commercial opportunity could be reduced or eliminated if our competitors develop and

commercialize products that are safer, more effective, have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop.

Our competitors also may obtain FDA or other regulatory approval for

their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market.

In addition, we expect that our therapeutic products, if approved,

will be priced at a significant premium over competitive products and our ability to compete may be affected in many cases by insurers or other third-party payers seeking to encourage the use of competitive products including biosimilar or generic

We anticipate that we will face intense and increasing competition as new products enter the market and advanced technologies become available.

Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer, more effective, have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop.

Our competitors also may obtain FDA or other regulatory approval for their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market.

In addition, we expect that our therapeutic products, if approved, will be priced at a significant premium over competitive products and our ability to compete may be affected in many cases by insurers or other third-party payers seeking to encourage the use of competitive products including biosimilar or generic products.

This increasingly competitive landscape may compromise the development of our product candidates.

For example, improvements in

the efficacy, delivery and success rates of competitors product candidates, in conjunction with a reduction in the price and duration of their treatments, diminished partnering interest from pharmaceutical companies in our product candidate TT-034 for the treatment of HCV.

This caused us to announce in February 2016 the discontinuation of our program to develop TT-034 before the conclusion of its clinical trial,

despite the promising clinical results regarding the safety of that product candidate achieved to date.

Government Regulation

As a pharmaceutical and biological product company that wishes to conduct clinical trials and ultimately obtain marketing approval in the

United States, we are subject to extensive regulation by the FDA, and other federal, state, and local regulatory agencies.

The Federal Food, Drug, and Cosmetic Act, or the FDC Act, the Public Health Service Act, or PHS Act, and their implementing

regulations set forth, among other things, requirements for the research, testing, development, manufacture, quality control, safety, effectiveness, approval, labeling, storage, record keeping, reporting, distribution, import, export, advertising

and promotion of our products.

A failure to comply explicitly with any requirements during the product development, approval, or

post-approval periods, may lead to administrative or judicial sanctions.

These sanctions could include the imposition by the FDA or an IRB, of a suspension on clinical trials, refusal to approve

pending marketing applications or supplements, withdrawal of approval, warning letters, product recalls, product seizures, total or partial suspension of production or distribution, injunctions, fines, civil penalties or criminal prosecution.

Although the discussion below focuses on regulation in the United States, we anticipate seeking approval for the testing and marketing of our

products in other countries.

As a pharmaceutical and biological product company that wishes to conduct clinical trials and ultimately obtain marketing approval in the United States, we are subject to extensive regulation by the FDA, and other federal, state, and local regulatory agencies.

The Federal Food, Drug, and Cosmetic Act, or the FDC Act, the Public Health Service Act, or PHS Act, and their implementing regulations set forth, among other things, requirements for the research, testing, development, manufacture, quality control, safety, effectiveness, approval, labeling, storage, record keeping, reporting, distribution, import, export, advertising and promotion of our products.

A failure to comply explicitly with any requirements during the product development, approval, or post-approval

periods, may lead to administrative or judicial sanctions.

These sanctions could include the imposition by the FDA or an IRB, of a suspension on clinical trials, refusal to approve pending marketing applications or supplements, withdrawal of approval, warning letters, product recalls, product seizures, total or partial suspension of production or distribution, injunctions, fines, civil penalties or criminal prosecution.

Although the discussion below focuses on regulation in the United States, we anticipate seeking approval for the testing and marketing of our products in other countries.

Generally, our activities in other countries will be subject to regulation that is similar in nature and scope as that imposed in the United States, although there can be important differences.

Additionally, some

significant aspects of regulation in the European Union are addressed in a centralized way through the EMA, but country-specific regulation remains essential in many respects.

Additionally, some significant aspects of regulation in the European Union are addressed in a centralized way through the EMA, but country-specific regulation remains essential in many respects.

Government regulation may delay or prevent testing or marketing of our products and impose costly procedures upon our activities.

and marketing approval process, and the subsequent compliance with appropriate statutes and regulations, requires substantial time, effort, and financial resources, and we cannot be certain that the FDA or any other regulatory agency will grant

marketing approvals for our products or any future products on a timely basis, if at all.

The FDAs or any other regulatory agencys policies may change and additional governmental regulations may be enacted that could prevent or delay

regulatory approval of our products or any future products or approval of new indications or label changes.

We cannot predict the likelihood, nature or extent of adverse governmental regulation that might arise from future legislative, judicial, or

administrative action, either in the United States or abroad.

The testing and marketing approval process, and the subsequent compliance with appropriate statutes and regulations, requires substantial time, effort, and financial resources, and we cannot be certain that the FDA or any other regulatory agency will grant marketing approvals for our products or any future products on a timely basis, if at all.

The FDA’s or any other regulatory agency’s policies may change and additional governmental regulations may be enacted that could prevent or delay regulatory approval of our products or any future products or approval of new indications or label changes.

We cannot predict the likelihood, nature or extent of adverse governmental regulation that might arise from future legislative, judicial, or administrative action, either in the United States or abroad.

Recent Developments in Regulation of Gene Therapy

The FDA has provided guidance for the development of gene therapy products.

For example, the FDA has established the Office of Tissues and

Advanced Therapies (formerly Office of Cellular, Tissue and Gene Therapies) within CBER, to consolidate the review of gene therapy and related products, and the Cellular, Tissue and Gene Therapies Advisory Committee to advise CBER on its reviews.

addition, the FDA has issued a growing body of clinical guidelines, chemical, manufacturing and control, or CMC, guidelines, regenerative medicine guidelines a and other guidelines, all of which are intended to facilitate industrys development

of gene therapy products.

In 2016, Section 3033 of the 21st Century Cures Act created a new product category called

regenerative medicine advanced therapy, or the RMAT designation.

The RMAT designation gives the sponsor of a new investigational biologic access to increased meeting opportunities with the FDA, in a manner comparable to those offered to

sponsors of therapies designated as breakthrough therapies by the FDA.

Because the designated products meet the criteria for unmet medical need in the treatment of a serious condition, they may be eligible for priority review, in which

the initial assessment of the BLA is reduced from 12 months to eight months, and accelerated approval, which bases approval on an effect on a predictive surrogate endpoint or an intermediate clinical endpoint.

RMATs qualifying for such accelerated

approval may be able to satisfy licensing requirements through commitment to post-approval clinical studies as well as real-world data such as patient registries and health record analysis.

The eligibility of the RMAT-designated product for these

expedited programs can be discussed with the FDA at specific development meetings, but we do not know whether any of our current or future product candidates will be eligible for RMAT designation.

We believe the increased access to the FDA during

early development is a benefit for sponsors, because the typical Type B development meetings are normally restricted to one each at the stages of pre-IND, end of Phase

II/pre-Phase III and pre-BLA submission.

In addition, the option to qualify for a fast- track program, also based on the potential to serve an unmet medical need in the

treatment of a serious condition, allows for a so-called rolling review of parts of the BLA, which can be submitted for assessment following agreement of a review timetable with CBER.

The FDA plans to include certain gene therapy products that permanently alter tissue and produce a sustained therapeutic benefit as part of

the products that will meet the definition of being eligible to come under

the pathway enabled by RMAT designation.

RMAT designation enables gene therapy products to access the FDAs existing expedited programs to help foster the development and approval of gene

therapy products.

For example, the FDA has established the Office of Tissues and Advanced Therapies (formerly Office of Cellular, Tissue and Gene Therapies) within CBER, to consolidate the review of gene therapy and related products, and the Cellular, Tissue and Gene Therapies Advisory Committee to advise CBER on its reviews.

In addition, the FDA has issued a growing body of clinical guidelines, chemical, manufacturing and control, or CMC, guidelines, regenerative medicine guidelines and other guidelines, all of which are intended to facilitate industry’s development of gene therapy products.

In 2016, Section 3033 of the 21st Century Cures Act created a new product category called “regenerative medicine advanced therapy”, or the RMAT designation.

The RMAT designation gives the sponsor of a new investigational biologic access to increased meeting opportunities with the FDA, in a manner comparable to those offered to sponsors of therapies designated as “breakthrough therapies” by the FDA.

Because the designated products meet the criteria for unmet medical need in the treatment of a serious condition, they may be eligible for priority review, in which the initial assessment of the BLA is reduced from 12 months to eight months, and accelerated approval, which bases approval on an effect on a predictive surrogate endpoint or an intermediate clinical endpoint.

RMATs qualifying for such accelerated approval may be able to satisfy licensing requirements through commitment to post-approval clinical studies as well as real-world data such as patient registries and health record analysis.

The eligibility of the RMAT-designated product for these expedited programs can be discussed with the FDA at specific development meetings, but we do not know whether any of our current or future product candidates will be eligible for RMAT designation.

We believe the increased access to the FDA during early development is a benefit for sponsors, because the typical Type B development meetings are normally restricted to one each at the stages of pre-IND,

end of Phase II/pre-Phase

III and pre-BLA

In addition, the option to qualify for a fast-track program, also based on the potential to serve an unmet medical need in the treatment of a serious condition, allows for a so-called

“rolling review” of parts of the BLA, which can be submitted for assessment following agreement of a review timetable with CBER.

The FDA plans to include certain gene therapy products that permanently alter tissue and produce a sustained therapeutic benefit as part of the products that will meet the definition of being eligible to come under the pathway enabled by RMAT designation.

RMAT designation enables gene therapy products to access the FDA’s

existing expedited programs to help foster the development and approval of gene therapy products.

Our product candidates may not be eligible for RMAT designation now or in the future.

In May 2016, the EMA approved a

second gene therapy product called Strimvelis, the first approved ex vivo stem cell gene therapy, to treat patients with a very rare disease called ADA-SCID (Severe Combined Immunodeficiency due to

Adenosine Deaminase deficiency).

In May 2016, the EMA approved a second gene therapy product called Strimvelis, the first approved ex vivo

stem cell gene therapy, to treat patients with a very rare disease called ADA-SCID

(Severe Combined Immunodeficiency due to Adenosine Deaminase deficiency).

In August 2017, the FDA approved the first gene therapy product in the United States.

The FDA approved

Kymriah (tisagenlecleucel) for the treatment of certain pediatric and young adult patients with a form of acute lymphoblastic leukemia (ALL).

Kymriah is a genetically-modified autologous T-cell immunotherapy.

The FDA approved Kymriah (tisagenlecleucel) for the treatment of certain pediatric and young adult patients with a form of acute lymphoblastic leukemia (ALL).

Kymriah is a genetically-modified autologous T-cell

immunotherapy.

Because of the risk of cytokine release syndrome and neurological events, Kymriah is being approved with a REMS.

In December 2017, the FDA approved Luxturna (voretigene neparvovec-rzyl), a gene therapy to

treat children and adult patients with an inherited form of vision loss that may result in blindness.

Luxturna is the first directly administered gene therapy approved in the United States that targets a disease caused by mutations in a specific

In December 2017, the FDA approved Luxturna (voretigene neparvovec-rzyl),

a gene therapy to treat children and adult patients with an inherited form of vision loss that may result in blindness.

Luxturna is the first directly administered gene therapy approved in the United States that targets a disease caused by mutations in a specific gene.

To date, the FDA has approved a total of four gene therapy products.

Marketing Approval

In the United States, for premarket approval purposes, the FDA regulates gene therapy products as biologics under the FDC Act, the PHS Act and

related regulations.

In the United States, for premarket approval purposes, the FDA regulates gene therapy products as biologics under the FDC Act, the PHS Act and related regulations.

The steps required before a new biologic may be marketed in the United States generally include:

nonclinical pharmacology and toxicology laboratory and animal tests according to good laboratory practices, or

GLPs, and applicable requirements for the humane use of laboratory animals or other applicable regulations;

nonclinical pharmacology and toxicology laboratory and animal tests according to good laboratory practices, or GLPs, and applicable requirements for the humane use of laboratory animals or other applicable regulations;

submission of an IND application which must become effective before human clinical trials may begin;

adequate and well-controlled human clinical trials according to GCPs and any additional requirements for the

protection of human research subjects and their health information to establish the safety and efficacy of the investigational product for each targeted indication;

adequate and well-controlled human clinical trials according to GCPs and any additional requirements for the protection of human research subjects and their health information to establish the safety and efficacy of the investigational product for each targeted indication;

submission of a biologics license application, or BLA, to the FDA;

FDAs pre-approval inspection of manufacturing facilities to assess

compliance with cGMPs and, if applicable, the FDAs good tissue practices, or GTPs, for the use of human cellular and tissue products to prevent the introduction, transmission, or spread of communicable diseases;

FDA’s pre-approval

inspection of manufacturing facilities to assess compliance with cGMPs and, if applicable, the FDA’s good tissue practices, or GTPs, for the use of human cellular and tissue products to prevent the introduction, transmission, or spread of communicable diseases;

FDA’s audit of clinical trial sites that generated data in support of the BLA;

2 unchanged sentences

Before testing any biologic in humans, the product enters the nonclinical, or preclinical, testing stage.

Nonclinical tests include laboratory

evaluations of product chemistry, toxicity, and formulation, as well as animal studies to assess the potential safety and activity of the product.

Nonclinical tests include laboratory evaluations of product chemistry, toxicity, and formulation, as well as animal studies to assess the potential safety and activity of the product.

The conduct of nonclinical tests must comply with federal regulations and requirements including GLPs.

Where a gene therapy trial is conducted at, or sponsored by, institutions receiving NIH funding for recombinant DNA research, prior to

the submission of an IND to the FDA, a protocol and related documentation is submitted to and the trial is registered with the NIH Office of Science Policy, or OSP.

The product sponsor then submits the results of the nonclinical testing, together with manufacturing information, analytical data, any

available clinical data or literature, and a proposed clinical protocol, to the FDA

in an IND, which is a request for authorization from the FDA to administer an investigational product to humans.

Where a gene therapy trial is conducted at, or sponsored by, institutions receiving NIH funding for recombinant DNA research, prior to the submission of an IND to the FDA, a protocol and related documentation is submitted to and the trial is registered with the NIH Office of Science Policy, or OSP.

The product sponsor then submits the results of the nonclinical testing, together with manufacturing information, analytical data, any available clinical data or literature, and a proposed clinical protocol, to the FDA in an IND, which is a request for authorization from the FDA to administer an investigational product to humans.

Some nonclinical testing may continue even after the IND application is submitted.

IND authorization is required before interstate shipping and administration of any new product to humans that is not the subject of an approved BLA.

The IND automatically becomes effective 30 days after receipt by the FDA unless the FDA, within the 30-day time period, raises concerns or questions about the conduct of the clinical trial and places the clinical trial on a clinical hold.

In such case, the IND sponsor must resolve any outstanding concerns with the

FDA before the clinical trial may begin.

IND authorization is required before interstate shipping and administration of any new product to humans that is not the subject of an approved

The IND automatically becomes effective 30 days after receipt by the FDA unless the FDA, within the 30-day

time period, raises concerns or questions about the conduct of the clinical trial and places the clinical trial on a clinical hold.

In such case, the IND sponsor must resolve any outstanding concerns with the FDA before the clinical trial may begin.

Further, an IRB for each site proposing to conduct the clinical trial must review and approve the plan for any clinical trial before it commences at that site.

If the site has an IBC, it may also have to

review and approve the proposed clinical trial.

Clinical trials involve the administration of the investigational product to patients under the supervision of qualified investigators following GCPs, requirements meant to protect the rights and

health of patients and to define the roles of clinical trial sponsors, investigators, and monitors.

Clinical trials are conducted under protocols that detail, among other things, the objectives of the clinical trial, dosing procedures, subject

selection and exclusion criteria, the parameters to be used in monitoring safety, including stopping rules that assure a clinical trial will be stopped if certain adverse events should occur, and the efficacy criteria to be evaluated.

Each protocol

involving testing on U.S.

If the site has an IBC, it may also have to review and approve the proposed clinical trial.

Clinical trials involve the administration of the investigational product to patients under the supervision of qualified investigators following GCPs, requirements meant to protect the rights and health of patients and to define the roles of clinical trial sponsors, investigators, and monitors.

Clinical trials are conducted under protocols that detail, among other things, the objectives of the clinical trial, dosing procedures, subject selection and exclusion criteria, the parameters to be used in monitoring safety, including stopping rules that assure a clinical trial will be stopped if certain adverse events should occur, and the efficacy criteria to be evaluated.

Each protocol involving testing on U.S.

patients and subsequent protocol amendments must be submitted to the FDA as part of the IND.

The informed written consent of each participating subject is required and the form and content of the informed consent must be

approved by each IRB.

The informed written consent of each participating subject is required and the form and content of the informed consent must be approved by each IRB.

The clinical investigation of an investigational product is generally divided into three phases.

phases are usually conducted sequentially, they may overlap or be combined in some cases.

Although the phases are usually conducted sequentially, they may overlap or be combined in some cases.

The three phases of an investigation are as follows:

Phase I includes the initial introduction of an investigational product into humans.

Phase I clinical trials may

be conducted in patients with the target disease or condition or on healthy volunteers.

These studies are designed to evaluate the safety, metabolism, pharmacokinetics and pharmacologic actions of the investigational product in humans, the side

effects associated with increasing doses, and if possible, to gain early evidence on effectiveness.

During Phase I clinical trials, sufficient information about the investigational products pharmacokinetics and pharmacological effects may be

obtained to permit the design of Phase II clinical trials.

Phase I clinical trials may be conducted in patients with the target disease or condition or on healthy volunteers.

These studies are designed to evaluate the safety, metabolism, pharmacokinetics and pharmacologic actions of the investigational product in humans, the side effects associated with increasing doses, and if possible, to gain early evidence on effectiveness.

During Phase I clinical trials, sufficient information about the investigational product’s pharmacokinetics and pharmacological effects may be obtained to permit the design of Phase II clinical trials.

The total number of participants included in Phase I clinical trials varies, but is generally in the range of 20 to 80.

Phase II includes the controlled clinical trials conducted to evaluate the effectiveness of the investigational

product for a particular indication(s) in patients with the disease or condition under study, to determine dosage tolerance and optimal dosage, and to identify possible adverse side effects and safety risks associated with the product.

clinical trials are typically well- controlled, closely monitored, and conducted in a limited patient population, usually involving no more than several hundred participants.

Phase IIa trials provide information on the impact of dose ranging on

safety, biomarkers and proof of concept, while Phase IIb trials are patient dose-ranging efficacy trials.

Phase III clinical trials are controlled clinical trials conducted in an expanded patient population at

geographically dispersed clinical trial sites.

to establish the overall benefit-risk relationship of the product, and to provide an adequate basis for product approval.

Phase II includes the controlled clinical trials conducted to evaluate the effectiveness of the investigational product for a particular indication(s) in patients with the disease or condition under study, to determine dosage tolerance and optimal dosage, and to identify possible adverse side effects and safety risks associated with the product.

Phase II clinical trials are typically well- controlled, closely monitored, and conducted in a limited patient population, usually involving no more than several hundred participants.

Phase IIa trials provide information on the impact of dose ranging on safety, biomarkers and proof of concept, while Phase IIb trials are patient dose-ranging efficacy trials.

Phase III clinical trials are controlled clinical trials conducted in an expanded patient population at geographically dispersed clinical trial sites.

They are performed after preliminary evidence suggesting effectiveness of the investigational product has been obtained, and are intended to further evaluate dosage, clinical effectiveness and safety, to establish the overall benefit-risk relationship of the product, and to provide an adequate basis for product approval.

Phase III clinical trials usually involve several hundred to several thousand participants.

In most cases, the FDA requires two

adequate and well controlled Phase III clinical trials to demonstrate the efficacy of the product.

FDA may accept a single Phase III trial with other confirmatory evidence in rare instances where the trial is a large multicenter trial demonstrating

internal consistency and a statistically very persuasive finding of a clinically meaningful effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious outcome and confirmation of the result in a second trial

would be practically or ethically impossible.

Annual progress reports detailing the results of the clinical trials must

be submitted to the FDA.

Written IND safety reports must be promptly submitted to the FDA and the investigators for serious and unexpected

adverse events;

any findings from other studies, tests in laboratory animals or in vitro testing that suggest a significant risk for human subjects;

or any clinically important increase in

the rate of a serious suspected adverse reaction over that listed in the protocol or investigator brochure.

The sponsor must submit an IND safety report within 15 calendar days after the sponsor determines that the information qualifies for

In most cases, the FDA requires two adequate and well controlled Phase III clinical trials to demonstrate the efficacy of the product.

FDA may accept a single Phase III trial with other confirmatory evidence in rare instances where the trial is a large multicenter trial demonstrating internal consistency and a statistically very persuasive finding of a clinically meaningful effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious outcome and confirmation of the result in a second trial would be practically or ethically impossible.

Annual progress reports detailing the results of the clinical trials must be submitted to the FDA.

Written IND safety reports must be promptly submitted to the FDA and the investigators for serious and unexpected adverse events;

any findings from other studies, tests in laboratory animals or in vitro

testing that suggest a significant risk for human subjects;

or any clinically important increase in the rate of a serious suspected adverse reaction over that listed in the protocol or investigator brochure.

The sponsor must submit an IND safety report within 15

calendar days after the sponsor determines that the information qualifies for reporting.

The sponsor also must notify the FDA of any unexpected fatal or life-threatening suspected adverse reaction within seven calendar days after the sponsor’s initial receipt of the information.

The FDA typically recommends that sponsors

observe subjects for potential gene therapy-related delayed adverse events for a 15-year period, including a minimum of five years of annual examinations followed by 10 years of annual queries, either in

person or by questionnaire, of trial subjects.

The decision to terminate a clinical trial of an investigational biologic may be made by

the FDA or other regulatory authority, an IRB, an IBC, or institutional ethics committee, or by a company for various reasons.

The FDA may place a clinical hold and order the temporary, or permanent, discontinuation of a clinical trial at any time,

or impose other sanctions, if it believes that the clinical trial either is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial patients.

If the FDA imposes a clinical hold, trials may not

recommence without FDA and IRB authorization and then only under terms authorized by the FDA and IRB.

In some cases, clinical trials are overseen by an independent group of qualified experts organized by the trial sponsor, or the clinical monitoring

board or DSMB.

The FDA typically recommends that sponsors observe subjects for potential gene therapy-related delayed adverse events for a 15-year

period, including a minimum of five years of annual examinations followed by 10 years of annual queries, either in person or by questionnaire, of trial subjects.

The decision to terminate a clinical trial of an investigational biologic may be made by the FDA or other regulatory authority, an IRB, an IBC, or institutional ethics committee, or by a company for various reasons.

The FDA may place a clinical hold and order the temporary, or permanent, discontinuation of a clinical trial at any time, or impose other sanctions, if it believes that the clinical trial either is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial patients.

If the FDA imposes a clinical hold, trials may not recommence without FDA and IRB authorization and then only under terms authorized by the FDA and IRB.

In some cases, clinical trials are overseen by an independent group of qualified experts organized by the trial sponsor, or the clinical monitoring board or DSMB.

This group provides authorization for whether or not a trial may move forward at designated check points.

These decisions are based on the limited access to data from the ongoing trial.

The suspension or termination of a clinical

trial can occur during any phase of clinical trials if it is determined that the participants or patients are being exposed to an unacceptable health risk.

In addition, there are requirements for the registration of ongoing clinical trials of drugs

and biologics on public registries and the disclosure of certain information pertaining to the trials as well as clinical trial results after completion.

Assuming successful completion of all required testing in accordance with all applicable regulatory requirements, detailed investigational

product information is submitted to the FDA in the form of a BLA for a biologic to request marketing approval for the product in specified indications.

The suspension or termination of a clinical trial can occur during any phase of clinical trials if it is determined that the participants or patients are being exposed to an unacceptable health risk.

In addition, there are requirements for the registration of ongoing clinical trials of drugs and biologics on public registries and the disclosure of certain information pertaining to the trials as well as clinical trial results after completion.

Assuming successful completion of all required testing in accordance with all applicable regulatory requirements, detailed investigational product information is submitted to the FDA in the form of a BLA for a biologic to request marketing approval for the product in specified indications.

Human gene therapy products are a new category of therapeutics.

Because this is a relatively new and expanding area of novel therapeutic

interventions, there can be no assurance as to the length of the trial period, the number of patients the FDA will require to be enrolled in the trials in order to establish the safety, efficacy, purity and potency of human gene therapy products, or

that the data generated in these trials will be acceptable to the FDA to support marketing approval.

The NIH and the FDA have a publicly accessible database, the Genetic Modification Clinical Research Information System, which includes information

on gene transfer trials and serves as an electronic tool to facilitate the reporting and analysis of adverse events on these trials.

Over the last several years the FDA has issued helpful guidance on development of gene therapy products and shown a

willingness to work closely with developers, especially with those working in orphan disease areas.

Biologics License Application

Approval Process

In order to obtain approval to market a biologic in the United States, a BLA must be submitted to the FDA that

provides data from nonclinical studies and clinical trials and manufacturing information establishing to the FDAs satisfaction the safety, purity, and potency or efficacy of the investigational product for the proposed indication.

be accompanied by a substantial user fee payment unless a waiver or exemption applies.

The FDA will initially review the BLA for

completeness before it accepts it for filing.

Under the FDAs procedures, the agency has 60 days from its receipt of a BLA to determine whether the application will be accepted for filing based on the agencys threshold determination that

the application is sufficiently complete to permit substantive review.

After the BLA submission is accepted for filing, the FDA reviews the BLA to determine, among other things, whether the proposed product is safe, pure and potent, which includes

determining whether it is

effective for its intended use, and whether the product is being manufactured in accordance with cGMP, to assure and preserve the products identity, safety, strength, quality, potency and

purity, and in accordance with biological product standards.

The FDA will inspect the facilities at which the product is manufactured to ensure the manufacturing processes and facilities are in compliance with cGMP requirements and are adequate to

assure consistent production of the product within required specifications.

Because this is a relatively new and expanding area of novel therapeutic interventions, there can be no assurance as to the length of the trial period, the number of patients the FDA will require to be enrolled in the trials in order to establish the safety, efficacy, purity and potency of human gene therapy products, or that the data generated in these trials will be acceptable to the FDA to support marketing approval.

The NIH and the FDA have a publicly accessible database, the Genetic Modification Clinical Research Information System, which includes information on gene transfer trials and serves as an electronic tool to facilitate the reporting and analysis of adverse events on these trials.

Over the last several years the FDA has issued helpful guidance on development of gene therapy products and shown a willingness to work closely with developers, especially with those working in orphan disease areas.

Biologics License Application Approval Process

In order to obtain approval to market a biologic in the United States, a BLA must be submitted to the FDA that provides data from nonclinical studies and clinical trials and manufacturing information establishing to the FDA’s satisfaction the safety, purity, and potency or efficacy of the investigational product for the proposed indication.

The BLA must be accompanied by a substantial user fee payment unless a waiver or exemption applies.

The FDA will initially review the BLA for completeness before it accepts it for filing.

Under the FDA’s procedures, the agency has 60 days from its receipt of a BLA to determine whether the application will be accepted for filing based on the agency’s threshold determination that the application is sufficiently complete to permit substantive review.

After the BLA submission is accepted for filing, the FDA reviews the BLA to determine, among other things, whether the proposed product is safe, pure and potent, which includes determining whether it is effective for its intended use, and whether the product is being manufactured in accordance with cGMP, to assure and preserve the product’s identity, safety, strength, quality, potency and purity, and in accordance with biological product standards.

The FDA will inspect the facilities at which the product is manufactured to ensure the manufacturing processes and facilities are in compliance with cGMP

requirements and are adequate to assure consistent production of the product within required specifications.

For a human cellular or tissue product, the FDA also will not approve the product if the manufacturer is not in compliance with the GTPs.

These are FDA regulations that

govern the methods used in, and the facilities and controls used for, the manufacture of human cells, tissues, and cellular and tissue based products, which are human cells or tissue intended for implantation, transplant, infusion, or transfer into

a human recipient.

These are FDA regulations that govern the methods used in, and the facilities and controls used for, the manufacture of human cells, tissues, and cellular and tissue based products, which are human cells or tissue intended for implantation, transplant, infusion, or transfer into a human recipient.

The primary intent of the GTP requirements is to ensure that cell and tissue based products are manufactured in a manner designed to prevent the introduction, transmission, and spread of communicable disease.

Additionally, before

approving a BLA, the FDA may inspect one or more clinical sites to assure compliance with GCP.

If the FDA determines the application,

manufacturing process or manufacturing facilities are not acceptable, it typically will outline the deficiencies and often will request additional testing or information, or corrective action for a manufacturing facility.

This may significantly

delay further review of the application.

If the FDA finds that a clinical site did not conduct the clinical trial in accordance with GCP, the FDA may determine the data generated by the clinical site should be excluded from the primary efficacy

analyses provided in the BLA.

Additionally, before approving a BLA, the FDA may inspect one or more clinical sites to assure compliance with GCP.

If the FDA determines the application, manufacturing process or manufacturing facilities are not acceptable, it typically will outline the deficiencies and often will request additional testing or information, or corrective action for a manufacturing facility.

This may significantly delay further review of the application.

Additionally, notwithstanding the submission of any requested additional information, the FDA ultimately may decide that the application does not satisfy the regulatory criteria for approval.

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The FDA also may determine a REMS is necessary to assure the safe use of the biologic, in which case the BLA sponsor must submit a proposed REMS.

The REMS may include, but is not limited to, a Medication Guide, a communications plan, and other

elements to assure safe use, such as restrictions on distribution, prescribing, and dispensing.

After the FDA completes its initial

review of a BLA, it will either license, or approve, the product, or issue a complete response letter to communicate that it will not approve the BLA in its current form and to inform the sponsor of changes that the sponsor must make or additional

clinical, nonclinical or manufacturing data that must be received before the FDA can approve the application, with no implication regarding the ultimate approvability of the application.

If a complete response letter is issued, the sponsor may

either resubmit the BLA, addressing all of the deficiencies identified in the letter, or withdraw the application.

The testing and

approval process for both a drug and biologic requires substantial time, effort and financial resources and this process may take several years to complete.

Data obtained from clinical trials is not always conclusive and may be susceptible to

varying interpretations, which could delay, limit or prevent regulatory approval.

The REMS may include, but is not limited to, a Medication Guide, a communications plan, and other elements to assure safe use, such as restrictions on distribution, prescribing, and dispensing.

After the FDA completes its initial review of a BLA, it will either license, or approve, the product, or issue a complete response letter to communicate that it will not approve the BLA in its current form and to inform the sponsor of changes that the sponsor must make or additional clinical, nonclinical or manufacturing data that must be received before the FDA can approve the application, with no implication regarding the ultimate approvability of the application.

If a complete response letter is issued, the sponsor may either resubmit the BLA, addressing all of the deficiencies identified in the letter, or withdraw the application.

The testing and approval process for both a drug and biologic requires substantial time, effort and financial resources and this process may take several years to complete.

Data obtained from clinical trials is not always conclusive and may be susceptible to varying interpretations, which could delay, limit or prevent regulatory approval.

The FDA may not grant approval on a timely basis, or at all.

We may encounter difficulties or unanticipated costs in our efforts to secure necessary governmental

approvals, which could delay or preclude us from marketing our products.

We may encounter difficulties or unanticipated costs in our efforts to secure necessary governmental approvals, which could delay or preclude us from marketing our products.

Orphan Drug Designation

Under the Orphan Drug Act, the FDA may grant orphan designation to a drug or biological product candidate intended to treat a rare disease or

condition, which is generally a disease or condition that affects fewer than 200,000 individuals in the United States, or more than 200,000 individuals in the United States and for which there is no reasonable expectation that the cost of developing

and making a drug or biological product available in the United States for this type of disease or condition will be recovered from sales of the product candidate.

Under the Orphan Drug Act, the FDA may grant orphan designation to a drug or biological product candidate intended to treat a rare disease or condition, which is generally a disease or condition that affects fewer than 200,000 individuals in the United States, or more than 200,000 individuals in the United States and for which there is no reasonable expectation that the cost of developing and making a drug or biological product available in the United States for this type of disease or condition will be recovered from sales of the product candidate.

Orphan product designation must be requested before submitting a BLA.

After the FDA

grants orphan product designation, the identity of the therapeutic agent and its potential orphan use are disclosed publicly by the FDA.

Orphan product designation does not convey any advantage in or shorten the duration of the regulatory review and

approval process.

If a product candidate that has orphan designation subsequently receives the first FDA

approval for the disease or condition for which it has such designation, the product is entitled to orphan product exclusivity, which means that the FDA may not approve any other applications to market the same drug or biological product for the

same indication for seven years, except in limited circumstances, such as a showing of clinical superiority to the product with orphan exclusivity.

Competitors, however, may receive approval of different products for the indication for which the

orphan product has exclusivity or obtain approval for the same product but for a different indication than the one for which the orphan product has exclusivity.

Orphan product exclusivity also could block the approval of one of our products for

seven years if a competitor obtains approval of the same biological product as defined by the FDA or if our product candidate is determined to be contained within the competitors product for the same indication or disease.

biological product designated as an orphan product receives marketing approval for an indication broader than what is designated, it may not be entitled to orphan product exclusivity.

Orphan drug status in the European Union has similar, but not

identical, benefits.

After the FDA grants orphan product designation, the identity of the therapeutic agent and its potential orphan use are disclosed publicly by the FDA.

Orphan product designation does not convey any advantage in or shorten the duration of the regulatory review and approval process.

If a product candidate that has orphan designation subsequently receives the first FDA approval for the disease or condition for which it has such designation, the product is entitled to orphan product exclusivity, which means that the FDA may not approve any other applications to market the same drug or biological product for the same indication for seven years, except in limited circumstances, such as a showing of clinical superiority to the

product with orphan exclusivity.

Competitors, however, may receive approval of different products for the indication for which the orphan product has exclusivity or obtain approval for the same product but for a different indication than the one for which the orphan product has exclusivity.

Orphan product exclusivity also could block the approval of one of our products for seven years if a competitor obtains approval of the same biological product as defined by the FDA or if our product candidate is determined to be contained within the competitor’s product for the same indication or disease.

If a drug or biological product designated as an orphan product receives marketing approval for an indication broader than what is designated, it may not be entitled to orphan product exclusivity.

Orphan drug status in the European Union has similar, but not identical, benefits.

Expedited Development and Review Programs

The FDA has a fast track program that is intended to expedite or facilitate the process for reviewing new drugs and biological products that

meet certain criteria.

Specifically, new drugs and biological products are eligible for fast track designation if they are intended to treat a serious or life-threatening condition and demonstrate the potential to address unmet medical needs for the

The FDA has a fast track program that is intended to expedite or facilitate the process for reviewing new drugs and biological products that meet certain criteria.

Fast track designation applies to the combination of the product and the specific indication for which it is being studied.

The sponsor of a new biologic or drug may request the FDA to designate the biologic or drug as a fast track

product at any time during the clinical development of the product.

Unique to a fast track product, the FDA may consider for review sections of the marketing application on a rolling basis before the complete application is submitted, if the sponsor

provides a schedule for the submission of the sections of the application, the FDA agrees to accept sections of the application and determines that the schedule is acceptable, and the sponsor pays any required user fees upon submission of the first

section of the application.

Any product submitted to the FDA for marketing, including under a fast track program, may be eligible for

other types of FDA programs intended to expedite development and review, such as priority review and accelerated approval.

Any product is eligible for priority review if it would, if approved, be a significant improvement in the safety,

effectiveness, treatment, diagnosis or prevention of a disease compared to marketed products.

The FDA will attempt to direct additional resources to the evaluation of an application for a new biological or drug product designated for priority review

in an effort to reduce the review period from 12 to eight months.

The sponsor of a new biologic or drug may request the FDA to designate the biologic or drug as a fast track product at any time during the clinical development of the product.

Unique to a fast track product, the FDA may consider for review sections of the marketing application on a rolling basis before the complete application is submitted, if the sponsor provides a schedule for the submission of the sections of the application, the FDA agrees to accept sections of the application and determines that the schedule is acceptable, and the sponsor pays any required user fees upon submission of the first section of the application.

Any product submitted to the FDA for marketing, including under a fast track program, may be eligible for other types of FDA programs intended to expedite development and review, such as priority review and accelerated approval.

Any product is eligible for priority review if it would, if approved, be a significant improvement in the safety, effectiveness, treatment, diagnosis or prevention of a disease compared to marketed products.

The FDA will attempt to direct additional resources to the evaluation of an application for a new biological or drug product designated for priority review in an effort to reduce the review period from 12 to eight months.

Additionally, a product may be eligible for accelerated approval.

Biological or drug products studied for their safety and effectiveness in treating serious or life-threatening

illnesses and that provide meaningful therapeutic benefit over existing treatments may receive accelerated approval, which means that they may be approved on the basis of adequate and well-controlled clinical trials establishing that the product has

an effect on a surrogate endpoint that is reasonably likely to predict a clinical benefit, or on the basis of an effect on an intermediate clinical endpoint.

As a condition of approval, the FDA may require that a sponsor of a biological or drug

product receiving accelerated approval perform adequate and well-controlled post-marketing clinical trials.

In addition, the FDA currently requires as a condition for accelerated approval pre-approval of

promotional materials, which could adversely impact the timing of the commercial launch of the product.

Lastly, under the provisions of the new Food and Drug Administration Safety and Innovation Act, enacted in 2012, a sponsor can request

designation of a product candidate as a breakthrough therapy. A breakthrough therapy is defined as a drug or biological that is intended, alone or in combination with one or more other drugs or biological, to treat a serious or

life-threatening disease or condition, and preliminary clinical evidence indicates that the drug or biological may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial

treatment effects observed early in clinical development.

Biological or drug products studied for their safety and effectiveness in treating serious or life-threatening illnesses and that provide meaningful therapeutic benefit over existing treatments may receive accelerated approval, which means that they may be approved on the basis of adequate and well-controlled clinical trials establishing that the product has an effect on a surrogate endpoint that is reasonably likely to predict a clinical benefit, or on the basis of an effect on an intermediate clinical endpoint.

As a condition of approval, the FDA may require that a sponsor of a biological or drug product receiving accelerated approval perform adequate and well-controlled post-marketing clinical trials.

In addition, the FDA currently requires as a condition for accelerated approval pre-approval

of promotional materials, which could adversely impact the timing of the commercial launch of the product.

Lastly, under the provisions of the new Food and Drug Administration Safety and Innovation Act, enacted in 2012, a sponsor can request designation of a product candidate as a “breakthrough therapy.” A breakthrough therapy is defined as a drug or biological that is intended, alone or in combination with one or more other drugs or biological, to treat a serious or life-threatening disease or condition, and preliminary clinical evidence indicates that the drug or biological may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development.

Drugs and biologicals designated as breakthrough therapies receive the same benefits as drugs and biologicals with Fast Track designation.

In addition, the FDA must take certain additional

actions, such as intensive guidance on an efficient drug development program (beginning as early as Phase 1), and organizational commitment involving senior managers, intended to expedite the development and review of an application for approval of

a breakthrough therapy.

Fast Track designation and breakthrough therapy designation may expedite the product

development and approval process, and priority review may expedite the approval process.

However, these three paths do not change the standards for approval.

Accelerated approval designation changes the standards for product approval and thus may

expedite the development and/or approval process.

In addition, the FDA must take certain additional actions, such as intensive guidance on an efficient drug development program (beginning as early as Phase 1), and organizational commitment involving senior managers, intended to expedite the development and review of an application for approval of a breakthrough therapy.

Fast Track designation and breakthrough therapy designation may expedite the product development and approval process, and priority review may expedite the approval process.

However, these three paths do not

change the standards for approval.

Accelerated approval designation changes the standards for product approval and thus may expedite the development and/or approval process.

FDA Additional Requirements

The FDA may require, or companies may pursue, additional clinical trials after a product is approved.

so-called Phase 4 clinical trials may be made a condition to be satisfied for continuing drug and biologic approval.

The results of Phase 4 clinical trials can confirm the efficacy of a product candidate and

can provide important safety information.

These so-called

Phase 4 clinical trials may be made a condition to be satisfied for continuing drug and biologic approval.

The results of Phase 4 clinical trials can confirm the efficacy of a product candidate and can provide important safety information.

In addition, the FDA has expressed statutory authority to require sponsors to conduct post-market studies to specifically address safety issues identified by the agency.

Even if a product candidate receives regulatory approval, the approval may be limited to specific disease states, patient populations and

dosages, or might contain significant limitations on use in the form of warnings, precautions or contraindications, or in the form of an onerous REMS, restrictions on distribution, or post-marketing study requirements.

Further, even after regulatory

approval is obtained, later discovery of previously unknown problems with a product may result in restrictions on the product or even complete withdrawal of the product from the market.

In addition, we cannot predict what adverse governmental

regulations may arise from future U.S.

Even if a product candidate receives regulatory approval, the approval may be limited to specific disease states, patient populations and dosages, or might contain significant limitations on use in the form of warnings, precautions or contraindications, or in the form of an onerous REMS, restrictions on distribution, or post-marketing study requirements.

Further, even after regulatory approval is obtained, later discovery of previously unknown problems with a product may result in restrictions on the product or even complete withdrawal of the product from the market.

In addition, we cannot predict what adverse governmental regulations may arise from future U.S.

or foreign governmental action.

Medical Device Requirements

Our contemplated diagnostics, for use with certain of our therapeutic products, are regulated by FDA as in vitro diagnostic, or IVD, medical

Such IVD devices must comply with applicable FDA IVD-specific regulations as well as FDA regulations applicable more broadly to medical devices.

These FDA regulations include requirements for

registering establishments with FDA;

Our contemplated diagnostics, for use with certain of our therapeutic products, are regulated by FDA as in vitro diagnostic, or IVD, medical devices.

Such IVD devices must comply with applicable FDA IVD-specific

regulations as well as FDA regulations applicable more broadly to medical devices.

These FDA regulations include requirements for registering establishments with FDA;

listing IVD devices with FDA;

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There are also regulations covering the requirements for investigational devices and the conduct of clinical investigations of devices.

Like drugs and

biologics, failure to comply with applicable device/IVD requirements can result in legal or administrative enforcement actions against an IVD device firm, its officers or employees, and/or its products.

Like drugs and biologics, failure to comply with applicable device/IVD requirements can result in legal or administrative enforcement actions against an IVD device firm, its officers or employees, and/or its products.

FDA Post-Approval Requirements

Any products manufactured or distributed by us or on our behalf pursuant to FDA approvals are subject to continuing regulation by the FDA,

including requirements for record-keeping, reporting of adverse experiences with the biologic or drug, and submitting biological product deviation reports to notify the FDA of unanticipated changes in distributed products.

Manufacturers are required

to register their facilities with the FDA and certain state agencies, and are subject to periodic announced or unannounced inspections by the FDA and certain state agencies for compliance with cGMP requirements, which impose certain quality

processes, manufacturing controls and documentation requirements upon us and our third-party manufacturers in order to ensure that the product is safe, has the identity and strength, and meets the quality, purity and potency characteristics that it

purports to have.

Any products manufactured or distributed by us or on our behalf pursuant to FDA approvals are subject to continuing regulation by the FDA, including requirements for record-keeping, reporting of adverse experiences with the biologic or drug, and submitting biological product deviation reports to notify the FDA of unanticipated changes in distributed products.

Manufacturers are required to register their facilities with the FDA and certain state agencies, and are subject to periodic announced or unannounced inspections by the FDA and certain state agencies for compliance with cGMP requirements, which impose certain quality processes, manufacturing controls and documentation requirements upon us and our third-party manufacturers in order to ensure that the product is safe, has the identity and strength, and meets the quality, purity and potency characteristics that it purports to have.

In November 2013, the Drug Quality and Security Act, or DQSA, became law and establishes requirements to facilitate the tracing of prescription drug and biological products through the supply distribution chain.

This law includes a

number of new requirements that are being implemented over time and require us to devote additional resources to satisfy these requirements, including serializing the product and using new technology and data storage to electronically trace the

product from manufacturer to dispenser.

This law includes a number of new requirements that are being implemented over time and require us to devote additional resources to satisfy these requirements, including serializing the product and using new technology and data storage to electronically trace the product from manufacturer to dispenser.

If our products are not covered by the serialization and tracing requirements of the DQSA, they may be subject to state pedigree and traceability requirements.

We cannot be certain that we or our present or

future suppliers will be able to comply with the cGMP and other FDA regulatory requirements.

If our present or future suppliers are not able to

comply with these requirements, the FDA may halt our clinical trials, refuse to approve any BLA, force us to recall a product from distribution, shut down manufacturing operations or withdraw

approval of the applicable BLA.

We cannot be certain that we or our present or future suppliers will be able to comply with the cGMP and other FDA regulatory requirements.

If our present or future suppliers are not able to comply with these requirements, the FDA may halt our clinical trials, refuse to approve any BLA, force us to recall a product from distribution, shut down manufacturing operations or withdraw approval of the applicable

Noncompliance with cGMP or other requirements can result in issuance of warning or untitled letters, civil and criminal penalties, seizures, and injunctive action.

The FDA and other federal and state agencies closely regulate the labeling, marketing and promotion of drugs and biologics.

regulators, including the Department of Justice and the Office of the Inspector General of the Department of Health and Human Services, as well as state authorities, recently have increased their scrutiny of the promotion and marketing of drugs and

While doctors are free to prescribe any product approved by the FDA for any use, a company can only make claims relating to safety and efficacy of a product that are consistent with FDA approval, and the company is allowed to market a

product only for the particular use and treatment approved by the FDA.

In addition, any claims we make for our products in advertising or promotion must, among other things, be appropriately balanced with important safety information and otherwise

be adequately substantiated.

with governmental agencies that materially restrict the manner in which a company promotes or distributes products.

Research Equity Act

Under the Pediatric Research Equity Act, or PREA, as amended, a BLA or supplement must contain data to assess

the safety and efficacy of the product for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which the product is safe and effective.

Manufacturers must

submit a pediatric study plan to the IND not later than 60 days after the end-of-phase 2 meeting with the FDA;

if there is no such meeting, before the initiation of any

phase 3 studies or a combined phase 2 and phase 3 study;

Government regulators, including the Department of Justice and the Office of the Inspector General of the Department of Health and Human Services, as well as state authorities, recently have increased their scrutiny of the promotion and marketing of drugs and biologics.

In addition, any claims we make for our products in advertising or promotion must, among other things, be appropriately balanced with important safety information and otherwise be adequately substantiated.

Failure to comply with these requirements can result in adverse publicity, warning or untitled letters, corrective advertising, injunctions, potential civil and criminal penalties, criminal prosecution, and agreements with governmental agencies that materially restrict the manner in which a company promotes or distributes products.

Pediatric Research Equity Act

Under the Pediatric Research Equity Act, or PREA, as amended, a BLA or supplement must contain data to assess the safety and efficacy of the product for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which the product is safe and effective.

Manufacturers must submit a pediatric study plan to the IND not later than 60 days after the end-of-phase

2 meeting with the FDA;

if there is no such meeting, before the initiation of any phase 3 studies or a combined phase 2 and phase 3 study;

or if no such study will be conducted, no later than 210 days before a marketing application or supplement is submitted.

The intent of PREA is to compel sponsors whose products have pediatric

applicability to study those products in pediatric populations, rather than ignoring pediatric indications for adult indications that could be more economically desirable.

The FDA may grant deferrals for submission of data or full or partial

The intent of PREA is to compel sponsors whose products have pediatric applicability to study those products in pediatric populations, rather than ignoring pediatric indications for adult indications that could be more economically desirable.

The FDA may grant deferrals for submission of data or full or partial waivers.

By its terms, PREA does not apply to any product for an indication for which orphan designation has been granted, unless the FDA issues regulations stating otherwise.

Because the FDA has not issued any such regulations, submission of a

pediatric assessment is not required for an application to market a product for an orphan-designated indication.

In a July 2018 guidance, the FDA announced that it does not expect to grant any additional orphan drug designations to drugs for

pediatric subpopulations of common diseases (i.e., diseases or conditions with an overall prevalence of 200,000 or greater).

Because the FDA has not issued any such regulations, submission of a pediatric assessment is not required for an application to market a product for an orphan-designated indication.

In a July 2018 guidance, the FDA announced that it does not expect to grant any additional orphan drug designations to drugs for pediatric subpopulations of common diseases (i.e., diseases or conditions with an overall prevalence of 200,000 or greater).

Pediatric subpopulation orphan designations that have already been granted will not be affected by this change.

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Depending on the timing, duration and specifics of FDA marketing approval of our product candidates, some of our U.S.

patents may be eligible

for limited patent term extension under the Hatch-Waxman Amendments.

The Hatch-Waxman Amendments permit a patent restoration term of up to five years as compensation for patent term lost during product development and the FDA regulatory review

patents may be eligible for limited patent term extension under the Hatch-Waxman Amendments.

The Hatch-Waxman Amendments permit a patent restoration term of up to five years as compensation for patent term lost during product development and the FDA regulatory review process.

However, patent term restoration cannot extend the remaining term of a patent beyond a total of 14 years from the product’s approval date.

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the time between the effective date of an IND and the submission date of a BLA plus the time between the submission date of a BLA and the approval of that application.

Only one patent applicable to an approved biological is eligible for the

extension and the application for the extension must be submitted prior to the expiration of the patent and within sixty days of approval of the biological product.

The USPTO, in consultation with the FDA, reviews and approves the application for

any patent term extension or restoration.

The Biologics Price Competition and Innovation Act of 2009, which was included within the

Patient Protection and Affordable Care Act, created an abbreviated approval pathway for biological products shown to

be similar to, or interchangeable with, an FDA-licensed reference biological product, and grants a reference biologic twelve years of exclusivity from the

time of first licensure.

Biosimilarity, which requires that there be no clinically meaningful differences between the biological product and the reference product in terms of safety, purity, and potency, can be shown through analytical studies,

animal studies, and a clinical study or studies.

and, for products administered multiple times, the biologic and the reference biologic may be switched after one has been previously administered without increasing safety risks or risks of diminished efficacy relative to exclusive use of the

reference biologic.

However, complexities associated with the larger, and often more complex, structure of biological products, as well as the process by which such products are manufactured, pose significant hurdles to implementation that are still

being worked out by the FDA.

Only one patent applicable to an approved biological is eligible for the extension and the application for the extension must be submitted prior to the expiration of the patent and within sixty days of approval of the biological product.

The USPTO, in consultation with the FDA, reviews and approves the application for any patent term extension or restoration.

The Biologics Price Competition and Innovation Act of 2009, which was included within the Patient Protection and Affordable Care Act, created an abbreviated approval pathway for biological products shown to be similar to, or interchangeable with, an FDA-licensed

reference biological product, and grants a reference biologic twelve

years of exclusivity from the time of first licensure.

Interchangeability requires that a product is biosimilar to the reference product and the product must demonstrate that it can be expected to produce the same clinical results as the reference product and, for products administered multiple times, the biologic and the reference biologic may be switched after one has been previously administered without increasing safety risks or risks of diminished efficacy relative to exclusive use of the reference biologic.

Pediatric exclusivity is another type of exclusivity in the United States.

Pediatric exclusivity, if

granted, provides an additional six months of exclusivity to be attached to any existing marketing exclusivity, e.g., twelve year exclusivity, or patent protection for a drug.

This six month exclusivity, which runs from the end of other exclusivity

protection or patent delay, may be granted based on the voluntary completion of a pediatric trial in accordance with an FDA-issued Written Request for such a trial.

Pediatric exclusivity, if granted, provides an additional six months of exclusivity to be attached to any existing marketing exclusivity, e.g., twelve year exclusivity, or patent protection for a drug.

This six month exclusivity, which runs from the end of other exclusivity protection or patent delay, may be granted based on the voluntary completion of a pediatric trial in accordance with an FDA-issued

“Written Request” for such a trial.

Government regulation outside the United States

In addition to regulations in the United States, we will be subject to a variety of regulations in other jurisdictions governing, among other

things, clinical trials and any commercial sales and distribution of our products.

Whether or not we obtain FDA approval for a product,

we must obtain the requisite approvals from regulatory authorities in foreign countries prior to the commencement of clinical trials or marketing of the product in those countries.

Certain countries outside of the United States have a similar

process that requires the submission of a clinical trial application much like the IND prior to the commencement of human clinical trials.

In the European Union, for example, a request for a clinical trial authorization, or CTA, must be submitted to

each countrys national health authority and an independent ethics committee, much like the FDA and the IRB, respectively.

In addition to regulations in the United States, we will be subject to a variety of regulations in other jurisdictions governing, among other things, clinical trials and any commercial sales and distribution of our products.

Whether or not we obtain FDA approval for a product, we must obtain the requisite approvals from regulatory authorities in foreign countries prior to the commencement of clinical trials or marketing of the product in those countries.

Certain countries outside of the United States have a similar process that requires the submission of a clinical trial application much like the IND prior to the commencement of human clinical trials.

In the European Union, for example, a request for a clinical trial authorization, or CTA, must be submitted to each country’s national health authority and an independent ethics committee, much like the FDA and the IRB, respectively.

Once the CTA is approved in accordance with a country’s requirements, clinical trial development may proceed.

The requirements and process governing the conduct of clinical trials, product approval or licensing, pricing and reimbursement vary from

country to country.

The requirements and process governing the conduct of clinical trials, product approval or licensing, pricing and reimbursement vary from country to country.

In all cases, the clinical trials are conducted in accordance with GCP and the applicable regulatory requirements and the ethical principles that have their origin in the Declaration of Helsinki.

To obtain regulatory approval of a biological product under European Union regulatory systems, we must submit a marketing authorization

To obtain regulatory approval of a biological product under European Union regulatory systems, we must submit a marketing authorization application.

The application required in the European Union is similar to a BLA in the United States, with the exception of, among other things, country-specific document requirements.

The European Union also provides opportunities for market

The European Union also provides opportunities for market exclusivity.

For example, in the European Union, upon receiving marketing authorization, a new biological generally receives eight years of data exclusivity and an additional two years of market exclusivity.

If granted, data exclusivity prevents

regulatory authorities in the European Union from referencing the innovators data to assess a biosimilar application.

During the additional two-year period of market exclusivity, a biosimilar marketing

authorization can be submitted, and the innovators data may be referenced, but no biosimilar product can be marketed until the expiration of the market exclusivity.

The innovator may obtain an additional one year of market exclusivity if the

innovator obtains an additional authorization during the initial eight year period for one or more new indications that demonstrate significant clinical benefit over existing therapies.

This data and market exclusivity regime in the European Union

of a total of 10 or 11 years protects against generic competition, but does not protect against the launch of a competing product if the competitor, rather than referencing the clinical data of the originator, has conducted its own clinical trials

to support its marketing authorization application.

Orphan drugs in the European Union are eligible for

10-year market exclusivity.

This 10-year market exclusivity may be reduced to six years if, at the end of the fifth year, it is established that the product no longer

meets the criteria for orphan designation, for example, if the product is sufficiently profitable not to justify maintenance of market exclusivity.

Additionally, marketing authorization may be granted to a similar product for the same indication at

the second applicant can establish that its product, although similar, is safer, more effective or otherwise

clinically superior;

If granted, data exclusivity prevents regulatory authorities in the European Union from referencing the innovator’s data to assess a biosimilar application.

During the additional two-year

period of market exclusivity, a biosimilar marketing authorization can be submitted, and the innovator’s data may be referenced, but no biosimilar product can be marketed until the expiration of the market exclusivity.

The innovator may obtain an additional one year of market exclusivity if the innovator obtains an additional authorization during the initial eight year period for one or more new indications that demonstrate significant clinical benefit over existing therapies.

This data and market exclusivity regime in the European Union of a total of 10 or 11 years protects against generic competition, but does not protect against the launch of a competing product if the competitor, rather than referencing the clinical data of the originator, has conducted its own clinical trials to support its marketing authorization application.

Orphan drugs in the European Union are eligible for 10-year

market exclusivity.

market exclusivity may be reduced to six years if, at the end of the fifth year, it is established that the product no longer meets the

criteria for orphan designation, for example, if the product is sufficiently profitable not to justify maintenance of market exclusivity.

Additionally, marketing authorization may be granted to a similar product for the same indication at any time if:

the second applicant can establish that its product, although similar, is safer, more effective or otherwise clinically superior;

the applicant consents to a second orphan medicinal product application;

the applicant cannot supply enough orphan medicinal product.

If we fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension or

withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

If we fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

Pharmaceutical Coverage, Pricing and Reimbursement

Sales of our products, when and if approved for marketing, will depend, in part, on the extent to which our products will be covered by

third-party payers, such as federal, state, and foreign government healthcare programs, commercial insurance and managed healthcare organizations.

These third-party payers are increasingly reducing reimbursements for medical products, biologicals,

drugs and services.

Sales of our products, when and if approved for marketing, will depend, in part, on the extent to which our products will be covered by third-party payers, such as federal, state, and foreign government healthcare programs, commercial insurance and managed healthcare organizations.

These third-party payers are increasingly reducing reimbursements for medical products, biologicals, drugs and services.

In addition, the U.S.

government, state legislatures and foreign governments have continued implementing cost containment programs, including price controls, restrictions on coverage and reimbursement and requirements for

substitution of interchangeable products.

government, state legislatures and foreign governments have continued implementing cost containment programs, including price controls, restrictions on coverage and reimbursement and requirements for substitution of interchangeable products.

Adoption of price controls and cost containment measures, and adoption of more restrictive policies in jurisdictions with existing controls and measures, could further limit our net revenue and results.

Decreases in third-party reimbursement for our product candidates or a decision by a third-party payer not to cover our product candidates could reduce physician usage of our products once approved and have a material adverse effect on our sales,

results of operations and financial condition.

The containment of healthcare costs has become a priority of federal, state and foreign

Third-party payers are increasingly challenging the prices charged for drug products and medical services, examining the medical necessity and reviewing the cost effectiveness of drug products and medical services, in addition to

questioning safety and efficacy.

If these third-party payers do not consider our products to be cost-effective compared to other available therapies, they may not cover our products after FDA approval or, if they do, the level of payment may not be

sufficient to allow us to sell our products at a profit.

In the United States and some foreign jurisdictions, there have been, and likely

will continue to be, a number of legislative and regulatory changes and proposed changes regarding the healthcare system directed at broadening the availability of healthcare and containing or lowering the cost of healthcare.

In March 2010, the

Patient Protection and Affordable Care Act, as amended by the Health Care Education Reconciliation Act, or the ACA, was enacted.

The ACA includes measures that have significantly changed, and are expected to continue to significantly change, the way

healthcare is financed by both governmental and private insurers.

The containment of healthcare costs has become a priority of federal, state and foreign governments.

In the United States and some foreign jurisdictions, there have been, and likely will continue to be, a number of legislative and regulatory changes and proposed changes regarding the healthcare system directed at broadening the availability of healthcare and containing or lowering the cost of healthcare.

In March 2010, the Patient Protection and Affordable Care Act, as amended by the Health Care Education Reconciliation Act, or the ACA, was enacted.

The ACA includes measures that have significantly changed, and are expected to continue to significantly change, the way healthcare is financed by both governmental and private insurers.

Other legislative changes have been proposed and adopted in the United States since the ACA was enacted.

In August 2011, the Budget Control Act of 2011, among other things, created

measures for spending reductions by Congress.

A Joint Select Committee on Deficit Reduction, tasked with recommending a targeted deficit reduction of at least $1.2 trillion for the years 2013 through 2021, was unable to reach required goals, thereby

triggering the legislations automatic reduction to several government programs.

This includes aggregate reductions of Medicare payments to providers up to 2% per fiscal year, which went into effect in April 2013 and will remain in effect

through 2024 unless additional Congressional action is taken.

In January 2013, former President Obama signed into law the American Taxpayer Relief Act of 2012, which, among other things, further reduced Medicare payments to several providers,

including hospitals, imaging centers and cancer treatment centers, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years.

In August 2011, the Budget Control Act of 2011, among other things, created measures for spending reductions by Congress.

This includes aggregate reductions of Medicare payments to providers up to 2% per fiscal year, which went into effect in April 2013 and will remain in effect through 2024 unless additional Congressional action is taken.

In January 2013, former President Obama signed into law the American Taxpayer Relief Act of 2012, which, among other things, further reduced Medicare payments to several providers, including hospitals, imaging centers and cancer treatment centers, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years.

Other Healthcare Laws

Although we currently do not have any products on the market, we may be subject to additional healthcare regulation and enforcement by the

federal government and by authorities in the states and other countries in which we conduct our business.

Such laws include, without limitation, state and federal anti-kickback, fraud and abuse, false claims, privacy and security and physician

sunshine and open payment laws and regulations, many of which may become more applicable to us if our product candidates are approved and we begin commercialization.

If our operations are found to be in violation of any of such laws or any other

governmental regulations that apply to us, we may be subject to penalties, including, without limitation, administrative, civil and criminal penalties, damages, fines, disgorgement, the curtailment or restructuring of our operations, exclusion from

participation in federal and state healthcare programs and imprisonment, any of which could adversely affect our ability to operate our business and our financial results.

As of June 30, 2020, we

had 14 full-time employees, 9 of whom have a Ph.D.

Although we currently do not have any products on the market, we may be subject to additional healthcare regulation and enforcement by the federal government and by authorities in the states and other countries in which we conduct our business.

Such laws include, without limitation, state and federal anti-kickback, fraud and abuse, false claims, privacy and security and physician sunshine and open payment laws and regulations, many of which may become more applicable to us if our product candidates are approved and we begin commercialization.

If our operations are found to be in violation of any of such laws or any other governmental regulations that apply to us, we may be subject to penalties, including, without limitation, administrative, civil and criminal penalties, damages, fines, disgorgement, the curtailment or restructuring of our operations, exclusion from participation in federal and state healthcare programs and imprisonment, any of which could adversely affect our ability to operate our business and our financial results.

As of June 30, 2021, we had 14 full-time employees, 9 of whom have a Ph.D.

or other post-graduate degrees.

Of these full-time employees, 10 are engaged in research and development activities and 4 are engaged in finance, legal, human resources, facilities and general

Our employees are located in Sydney and Melbourne, Australia and at our scientific laboratories located in Hayward, California.

Of these full-time employees, 11 are engaged in research and development activities and 3 are engaged in finance, legal, human resources, facilities and general management.

None of our employees is represented by any labor union.

As of June 30, 2020, 12 of our employees were

located in Hayward, California, and 2 of our employees were located in Sydney and Melbourne, Australia.

As of June 30, 2021, 13 employees were located in the United States of America, and 1 employee was located in Australia.

Corporate Information

We were incorporated as a Delaware corporation on November 22, 2019 and completed the Re-domiciliation April 15, 2020.

Our predecessor, Benitec

Limited, was incorporated under the laws of Australia in 1995.

We were incorporated as a Delaware corporation on November 22, 2019 and completed the Re-domiciliation

April 15, 2020.

Our predecessor, Benitec Limited, was incorporated under the laws of Australia in 1995.

Our principal executive offices are located at 3940 Trust Way, Hayward, California 94545.

Re-domiciliation

On April 15, 2020, or the Implementation Date, the re-domiciliation,

or the Re-domiciliation,

of Benitec Biopharma Limited, a public company incorporated under the laws of the State of Western Australia, or Benitec Limited, was completed in accordance with the Scheme Implementation Agreement, as amended and restated as of January 30, 2020, between Benitec Limited and us.

As a result of the Re-domiciliation,

our jurisdiction of incorporation was changed from Australia to Delaware, and Benitec Limited became our wholly owned subsidiary.

The Re-domiciliation

was effected pursuant to a statutory scheme of arrangement under Australian law, or the Scheme, whereby on the Implementation Date, all of the issued and outstanding ordinary shares of Benitec Limited were exchanged for newly issued shares of our common stock, on the basis of one share of our common stock, par value $0.0001 per share, for every 300 ordinary shares of Benitec Limited issued and outstanding.

Holders of Benitec Limited’s American Depository Shares, or ADSs (each of which represented 200 ordinary shares), received two shares of our common stock for every three ADSs held.

Our common stock began trading on The Nasdaq Capital Market, or Nasdaq, at the start of trading on the Implementation Date under the symbol “BNTC.”

Available Information

Our telephone

number is (510) 780-0819, and our Internet website is www.benitec.com.

Our telephone number is (510) 780-0819,

and our Internet website is www.benitec.com.

The information on, or that can be accessed through, our website is not part of this Annual Report and is not incorporated by reference herein.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business