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SmartCells, Inc.
                   An Introduction to SmartInsulinTM


                          Todd C. Zion, Ph.D.
                      Co-founder, President & CEO


                              April 6th, 2009


                       e-mail: todd.zion@smartinsulin.com
                       Phone: 978.927.4246
                       Web: www.smartinsulin.com


                                                            1
SmartCells, Inc.
Imagine a “Smart” Insulin

            Calculate Insulin Dose

                                                    SmartInsulinTM


                                                                        Food
                               Food
    Measure


              Blood Glucose                             Blood Glucose



                           • Once-a-day injection
                           • No hypoglycemia
                           • Near-perfect glucose control
                           • Significantly fewer finger-sticks
                           • Minimal dietary restrictions
                                                                               2
 SmartCells, Inc.
SmartCells, Inc. and the SmartInsulinTM Mission
• Founded in August 2003
   – Exclusive licensee from M.I.T.

   – Based on founder’s 5+ years of Ph.D. research

• World-class collaborators to complement 12 full-time employees
   – Management includes founder, M.I.T. Ph.D.’s, and biotech executives

   – Collaborators from M.G.H., Joslin, former Lilly/Novo experts

• $4.2M+ in private investment; $6.3M+ in public grant funds



                           Corporate Headquarters in Beverly, MA (25 miles north of Boston)
                           For more information, please visit www.smartinsulin.com




                                                                                        3
  SmartCells, Inc.
Insulin and Type 1 Diabetes
• Insulin saves lives, BUT with…
    – Life-threatening bouts of hypoglycemia

    – Poor glucose control and long-term complications

    – Frequent finger sticks and counting carbs

    – Constant vigilance


• Insulin lowers blood glucose levels no matter what
    – Too much: Hypoglycemia

    – Too little: Hyperglycemia and ketoacidosis


• Effective control requires glucose-responsive delivery


                                                           4
  SmartCells, Inc.
-cell glucose-stimulated insulin release



                                                                                                                        Saturated maximum
                                                                                                                        above 400 mg/dl


                                                                                                   Rapid increase between
                                                                                                   100 and 400 mg/dl

                                                                                      Negligible below 100 mg/dl



http://journals.prous.com/journals/dot/20033904/html/dt390287/images/Langin_f1.gif   Cerasi, E., Q. Rev. Biophys. 8 (1975) 1-41.




 • Provide the missing -cells: regeneration or transplantation
 • Mimic the -cell function

                                                                                                                                     5
       SmartCells, Inc.
The artificial pancreas approach


                                                                                        Assume the insulin
                                                                                        molecule cannot be
                                                                                             changed

     Better
accuracy, redun
dancy, biocompa       Renard, E., Curr. Opin. Pharmacol. 2 (2002) 708-716.

     tibility
                                                                             Better algorithms and
                                                                              device integration


 • SmartCells makes the insulin molecule glucose-responsive
 • Eliminates the need for cells, pumps, sensors and algorithms


                                                                                                       6
   SmartCells, Inc.
Glucose-responsive SmartInsulin technology
                         Insulin

                                                               Key:
            Insulin
                                                              Glycosylated
                                                              insulin-polymer
                                                              conjugate (IPC)
                                    Insulin


                                                              Glucose

                                                              Multivalent
                                                              glucose-binding
                                                              molecule (GBM)

                                                              Conceptual
                                                              particle surface
                                                              boundary




     1.    IPC and GBM combine to form insoluble network
     2.    Free glucose molecules displace the IPC from the GBM
     3.    The matrix erodes from the surface inward
     4.    The released IPC lowers glucose levels in the body
     5.    The matrix stops eroding until the next glucose challenge

                                                                                 7
 SmartCells, Inc.
SmartInsulin subcutaneous injection




       Dispersion in 10 ml       Withdrawal into 31G
         multi-dose vial     subcutaneous insulin syringe




                                                            8
 SmartCells, Inc.
Pancreas-like performance in rats
                                          SmartInsulin                                                                                   Pancreas
                       8000                                       500                                                    800                                  500
                                      Insulin                                                                                      Insulin




                                                                                          Serum Rat Insulin Conc. (pM)
                       7000                                                                                              700
                                      Glucose                                                                                      Glucose
                                                                  400                                                                                         400
Serum IPC Conc. (pM)




                       6000




                                                                        Glucose (mg/dl)
                                                                                                                         600




                                                                                                                                                                    Glucose (mg/dl)
                       5000
                                                                  300                                                                                         300
                                                                                                                                     IP glucose
                                                                                                                         500
                                      IP glucose
                       4000
                                                                                                                         400
                                                                  200                                                                                         200
                       3000
                                                                                                                         300
                       2000
                                                                  100                                                                                         100
                                                                                                                         200
                       1000

                           0                                      0                                                      100                                   0
                               0     100        200   300   400                                                                0   100       200      300   400
                                            Time (min)                                                                                   Time (min)


                       • Glucose-stimulated release mimics pancreas
                       • Glucose stimulated to basal release ~ 4x-5x

                                                                                                                                                                                9
                       SmartCells, Inc.
No hypoglycemia over 4x dose increase
                                                                                                 600
                   600
                                                                                                           NO FEEDING
                             NO FEEDING                                                                                                       Diabetics
                                                              Diabetics
                                                                                                                                              Normals
                                                              Normals                            500
                   500
                                                                                                                                             10 U/kg
                                                             5 U/kg
 Glucose (mg/dl)




                                                                               Glucose (mg/dl)
                   400                                                                           400

                   300                                                                           300

                   200                                                                           200

                   100                                                                           100

                     0                                                                             0
                         0            200            400                 600                           0            200                400            600
                                          Time (min)                                                                      Time (min)
                   600
                             NO FEEDING                        Diabetics
                                                               Normals
                   500
                                                                                          • Substantially improved therapeutic
 Glucose (mg/dl)




                                                             20 U/kg
                   400
                                                                                            window vs. conventional insulin
                   300
                                                                                          • Minimal risk of dangerous
                   200
                                                                                            overdose
                   100

                     0
                                                                                                                                                            10
                       0              200              400               600
                   SmartCells, Inc.
                                            Time (min)
Safety summary in preclinical models

• No signs of injection site irritation

• No risk of hypoglycemia over broad range of doses

• No excessive body weight gain or loss due to repeated dosing

• No signs of organ abnormalities due to repeated dosing

• No signs of toxicity or cell abnormalities after repeated dosing

• No signs of anti-insulin antibody formation



                                                                     11
  SmartCells, Inc.
JDRF partnership summary
• Industry Discovery & Development Partnership

    – Metabolic Control – Dr. Aaron Kowalski

• Initiated in August 2008

• Year 1: Pre-clinical formulation optimization in Type 1 models

    – Successful completion of Q1-Q3 milestones

    – End of Year 1: Success in large animal, human-representative models

• Year 2: Manufacturing and Safety Studies to Support Clinical Trial

    – End of Year 2: Human Clinical Trials


                                                                            12
  SmartCells, Inc.
Path to Proof-of-Concept Human Clinical Trial


                     Q2 ‘09           Q3 ‘09          Q4 ‘09           Q1 ’10           Q2 ’10
                     Serum half-
 Animal              life in
                     rats, cats and
 Studies             pigs
                     Single dose
                     ADME 14                                                            Complete
                                                      Toxicology
 Safety              day tox          Contract                         Study
                                                      Safety
                                                                                        Phase 1a
                     Antigenicity     CROs                             reporting
 Studies                                              pharmacol
                     Receptor
                                                                                         Clinical
                     binding
                                      Qualify
                                                                                          Trial
                     Contract                         Clinical
                                                                       Stability test
                                      suppliers
Manufacturi          CMO                              batches Fill
                                      Select assays                    CMC
                     Optimize                         and finish
   ng                                 Produce 1st                      reporting
                     process                          Stability test
                                      batch

                                                      Design Phase
                     Request pre-     Hold Pre-IND                     Submit IND
                                                      1
Regulatory                                            Contract
                     IND meeting      meeting                          Active IND
                                                      CRO




                                                                                            13
  SmartCells, Inc.

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Presentation from Dr. Todd Zion

  • 1. SmartCells, Inc. An Introduction to SmartInsulinTM Todd C. Zion, Ph.D. Co-founder, President & CEO April 6th, 2009 e-mail: todd.zion@smartinsulin.com Phone: 978.927.4246 Web: www.smartinsulin.com 1 SmartCells, Inc.
  • 2. Imagine a “Smart” Insulin Calculate Insulin Dose  SmartInsulinTM Food Food Measure Blood Glucose Blood Glucose • Once-a-day injection • No hypoglycemia • Near-perfect glucose control • Significantly fewer finger-sticks • Minimal dietary restrictions 2 SmartCells, Inc.
  • 3. SmartCells, Inc. and the SmartInsulinTM Mission • Founded in August 2003 – Exclusive licensee from M.I.T. – Based on founder’s 5+ years of Ph.D. research • World-class collaborators to complement 12 full-time employees – Management includes founder, M.I.T. Ph.D.’s, and biotech executives – Collaborators from M.G.H., Joslin, former Lilly/Novo experts • $4.2M+ in private investment; $6.3M+ in public grant funds Corporate Headquarters in Beverly, MA (25 miles north of Boston) For more information, please visit www.smartinsulin.com 3 SmartCells, Inc.
  • 4. Insulin and Type 1 Diabetes • Insulin saves lives, BUT with… – Life-threatening bouts of hypoglycemia – Poor glucose control and long-term complications – Frequent finger sticks and counting carbs – Constant vigilance • Insulin lowers blood glucose levels no matter what – Too much: Hypoglycemia – Too little: Hyperglycemia and ketoacidosis • Effective control requires glucose-responsive delivery 4 SmartCells, Inc.
  • 5. -cell glucose-stimulated insulin release Saturated maximum above 400 mg/dl Rapid increase between 100 and 400 mg/dl Negligible below 100 mg/dl http://journals.prous.com/journals/dot/20033904/html/dt390287/images/Langin_f1.gif Cerasi, E., Q. Rev. Biophys. 8 (1975) 1-41. • Provide the missing -cells: regeneration or transplantation • Mimic the -cell function 5 SmartCells, Inc.
  • 6. The artificial pancreas approach Assume the insulin molecule cannot be changed Better accuracy, redun dancy, biocompa Renard, E., Curr. Opin. Pharmacol. 2 (2002) 708-716. tibility Better algorithms and device integration • SmartCells makes the insulin molecule glucose-responsive • Eliminates the need for cells, pumps, sensors and algorithms 6 SmartCells, Inc.
  • 7. Glucose-responsive SmartInsulin technology Insulin Key: Insulin Glycosylated insulin-polymer conjugate (IPC) Insulin Glucose Multivalent glucose-binding molecule (GBM) Conceptual particle surface boundary 1. IPC and GBM combine to form insoluble network 2. Free glucose molecules displace the IPC from the GBM 3. The matrix erodes from the surface inward 4. The released IPC lowers glucose levels in the body 5. The matrix stops eroding until the next glucose challenge 7 SmartCells, Inc.
  • 8. SmartInsulin subcutaneous injection Dispersion in 10 ml Withdrawal into 31G multi-dose vial subcutaneous insulin syringe 8 SmartCells, Inc.
  • 9. Pancreas-like performance in rats SmartInsulin Pancreas 8000 500 800 500 Insulin Insulin Serum Rat Insulin Conc. (pM) 7000 700 Glucose Glucose 400 400 Serum IPC Conc. (pM) 6000 Glucose (mg/dl) 600 Glucose (mg/dl) 5000 300 300 IP glucose 500 IP glucose 4000 400 200 200 3000 300 2000 100 100 200 1000 0 0 100 0 0 100 200 300 400 0 100 200 300 400 Time (min) Time (min) • Glucose-stimulated release mimics pancreas • Glucose stimulated to basal release ~ 4x-5x 9 SmartCells, Inc.
  • 10. No hypoglycemia over 4x dose increase 600 600 NO FEEDING NO FEEDING Diabetics Diabetics Normals Normals 500 500 10 U/kg 5 U/kg Glucose (mg/dl) Glucose (mg/dl) 400 400 300 300 200 200 100 100 0 0 0 200 400 600 0 200 400 600 Time (min) Time (min) 600 NO FEEDING Diabetics Normals 500 • Substantially improved therapeutic Glucose (mg/dl) 20 U/kg 400 window vs. conventional insulin 300 • Minimal risk of dangerous 200 overdose 100 0 10 0 200 400 600 SmartCells, Inc. Time (min)
  • 11. Safety summary in preclinical models • No signs of injection site irritation • No risk of hypoglycemia over broad range of doses • No excessive body weight gain or loss due to repeated dosing • No signs of organ abnormalities due to repeated dosing • No signs of toxicity or cell abnormalities after repeated dosing • No signs of anti-insulin antibody formation 11 SmartCells, Inc.
  • 12. JDRF partnership summary • Industry Discovery & Development Partnership – Metabolic Control – Dr. Aaron Kowalski • Initiated in August 2008 • Year 1: Pre-clinical formulation optimization in Type 1 models – Successful completion of Q1-Q3 milestones – End of Year 1: Success in large animal, human-representative models • Year 2: Manufacturing and Safety Studies to Support Clinical Trial – End of Year 2: Human Clinical Trials 12 SmartCells, Inc.
  • 13. Path to Proof-of-Concept Human Clinical Trial Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ’10 Q2 ’10 Serum half- Animal life in rats, cats and Studies pigs Single dose ADME 14 Complete Toxicology Safety day tox Contract Study Safety Phase 1a Antigenicity CROs reporting Studies pharmacol Receptor Clinical binding Qualify Trial Contract Clinical Stability test suppliers Manufacturi CMO batches Fill Select assays CMC Optimize and finish ng Produce 1st reporting process Stability test batch Design Phase Request pre- Hold Pre-IND Submit IND 1 Regulatory Contract IND meeting meeting Active IND CRO 13 SmartCells, Inc.