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1 New Organic Germanium Molecules for Therapeutics Core Technology Platform for New Molecules July 2013 R&D project

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1

New Organic Germanium Molecules for Therapeutics

Core Technology Platform for New

Molecules

July 2013

R&D project

2

WDS Pharma LLC

Synthesis, R&D of new organic germanium molecules for perspective use in medicine,

health care, veterinary and cosmetic

Researches are going on since 2005. The proprietary core technology platform for

chemical synthesis of Germanium and different organic substances was developed. The

technology allows purposely to construct a variety of unique bioactive molecules based

on organic germanium compounds, perspective for medical therapies.

The current foresights are:

Antiviral (antiherpetic) therapy

Anticancer therapy

Anti-acne

Diabetes type 2

New water-soluble vaccine adjuvant

Anti-infection therapy etc.

IP: 5 Russian patents (2 patents received in 2013), 4 PCT (2 PCT issued in 2012 г)

Since September 2012 WDS Pharma is a resident of Skolkovo Innovative Cluster

3

1. One of the main advantages of the developed technology platform is its technological

and technical simplicity, universality (variety of initial organic molecules can be used),

and availability of main synthesis reagents, which are biogenic. This excludes the

possibility of contamination of final product with unwanted toxic or hazard impurities

(green chemistry).

2. The chemical purity of new synthesized compounds is >99% and totally free of

germanium dioxide.

3. We are able to create a variety of new organic molecules with different bioactivity and

perspective for new drug development (novel drug candidates) see Suppl. 1

4. We are also able to create the new unique molecules with improved characteristics and

activity on the base of different generic substances (me-too drugs). See Suppl. 2

5. All new molecules are patentable

Core Technology Platform

4

Carboxylic acids, aminoacids, their derivateves and

other organic molecules

Organic

germanium

molecules

GeO2

New bioactive

organic

germanium

molecules

Generic

New

ME-TOO

DRUG

NOVEL

DRUG

Proprietary Technology Platform

5

Our current researches help us to believe and demonstrate that the new molecules have the

following key advantages:

High water and biopharmaceutical solubility resulting to higher bioavailability.

Safe for Human (acute, cumulative and mutagen non-toxicity etc).

Small molecule’s size allows to penetrate physiological barriers

The therapeutic effect of me-too drugs is higher (comparing with the initial generic) due

to synergism and better pharmaceutical characteristics

Allows to use less dosage of me-too drug with the same or higher therapeutic

efficiency, that also lead to decreasing of general and organ’s human medication

intoxication and side effects.

Advantages of New Molecules

6

Pipeline

Compound Indication Discovery Preclinical Phase 1

WDS-1 (gel, suppositories) Genital Herpes, Cold Sore & Oral

Herpes

WDS-1 (capsules) Herpesviruses infections

WDS-3 (gel) Dermatology (Acne, Rozacea)

WDS-10 Solid Tumors

WDS-11 Solid Tumors

WDS-9 Immunotherapy

Water-soluble Vaccine Adjuvant

WDS-HGC Immunotherapy

Water-soluble Vaccine Adjuvant

WDS-HGC Diabetes type 2

WDS-18 Osteoporosis, calcium

metabolism

7

Ivanovskiy Virology Institute (prof. Igor Barinskiy, Dr. Ludmila Alimbarova),

Moscow;

Fraunhofer Institute for Toxicology and Experimental Medicine (Fraunhofer

ITEM) (Dr. Jochen Buschman), Hannover (Germany)

Pasteur Institute of Epidemiology and Microbiology (prof. Areg Totolyan, Dr.

Irina Lavrentieva), Sankt-Peterburg

Petrov Oncology Institute (prof. Vladimir Anisimov), Sankt-Peterburg

Mechnikov Vaccines and Serum Institute (prof. Vsevolod Lyashenko, prof.

Ludmila Krasnoproshina, prof. Nelly Akhmatova), Moscow

Molecular System Ltd. (Dr. Valery Ossovskaya), SF (USA)

R&D Cooperation

8

New Organic Germanium molecule

Russian Patent № 2293086 dated 27.12.2005 (PCT # WO/2007/075122)

in vitro & in vivo initial studies

Nano-size bioactive molecule

Supplement 1

9

№ Parameter Data

1 Name 1-hydroxygermatranil citrate (HGC)

2 Category Small molecule

3 Appearance White powder

4 Solubility in water 200C > 60%

5 pH 4

6 Solubility in organic solvents Insoluble

7 Solubility in pH 1.2/4.4/6.8 >500 mg/ml / >500 mg/ml / >500 mg/ml

8 Solubility in FaSSIF / FeSSIF > 500 mg/ml / 500 mg/ml

9 Chemical purity >99.5%

10 Odour Odourless

Main Characteristics

10

Low acute toxicity

According to LD50 (> 5000 mg/kg mice I.P.) the compound belongs to the V class

of hazard (Hodge, Sterner)

Allergic and skin-resorptive action (in guinea pigs and CBA mice)

No immediate or delayed hypersensitivity reactions were documented

No changes in nonspecific immunity or numbers of leucocites and eosinophiles

Mutagenic action:

Ames test: the compound can not induce mutations of genes in test strains of

Salmonella typhimurium

Count of chromosomic abberations in mice bone marrow: the compound does not

have mutagenic action

Studies by Russian Scientific Center of Biological Substances Safety and Sysin Institute of the Human Ecology and Environmental Hygiene, Moscow

Toxicological Safety

11

The laboratory screening studies showed the folowing biological activities:

Immunomodulatory and immunostimulatory action; possible effect on stem cells

activity;

Strong adjuvant action;

Anti-infection (antiviral, anti-bacterial)

Antihypoxic and nootropic action;

Antitoxic action (decrease the side effects of some drugs);

Biological Activities Perspective for

Medicinal Use

Due to nanosize HGC demonstrates

o Interacion with TLR-receptors, including extracellular (TLR4, TLR2) and intracellular

(TLR9)

o Activation of the intrinsic immunity.

o Stimulation globulin-forming cells (demonstrated in vivo, in intact, as well as in

immunized animals).

o Ability to permeate the BBB and act on processes in brain

12

Study by Mechnikov Institute of Vaccines and Serums, Moscow

The similar dynamics was

registered for T,

CD19, CD5 and other

markers

0

10

20

30

baseline ГОС 24 ч ГОС 7сут

CD

3

0

5

10

15

baseline ГОС 24 ч ГОС 7сут

NK

0

1

2

3

4

baseline ГОС 24 ч ГОС 7сут

CD

3/N

K

0

1

2

3

4

baseline ГОС 24 ч ГОС 7сут

CD

4/ C

D25/F

ox

p3

0

5

10

15

20

25

baseline ГОС 24 ч ГОС 7сут

CD

8

Action of immune status changing in

immunized mice

HGC 24h HGC 7 days HGC 24h HGC 7 days

HGC 24h HGC 7 days HGC 24h HGC 7 days

HGC 24h HGC 7 days

13

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

TLR2 TLR4 TLR9

Effect on TLR2, TLR4, TLR9 activation in vivo

baseline

Ваксигрипп 24 ч

В+ГОС 24 ч

ГОС 24 ч

Baseline

Flu vaccine 24 h

Flu vaccine + HGC

24h

HGC 24 h

Adjuvant action

Study by Mechnikov Institute of Vaccines and Serums, Moscow

14

0

200

400

600

800

1000

1200

Amount of antibody-forming cells in mice spleen in 4 days after injection with T-independent antigen (Dextran) (detected by ELISPOT)

N

Dex

Dex + ГГЦ

Baseline

Dex

Dex+ HGC 10

mcg

Summary: the increasing of Antibody-Forming cells in >2,4 fold.

Adjuvant Action

Study by Mechnikov Institute of Vaccines and Serums, Moscow

15

Immune response in mice after administration of

erythrocites and cyclophosphamide Av .hemagglutinin dilution

Sheep’s erythrocites and cyclophosphamide 50 mg/kg,

simultaneously 3,5±1,03

Sheep’s erythrocites, cyclophosphamide, and HGC 500

mg/kg, intraperitoneal, simultaneously 6,25±0,33 √

Control 5,12±0,61

Immune Support during

Immunosupression by Cyclophosphamide Study by Mechnikov Institute of Vaccines and Serums, Moscow

Study model:

Immunisation of mice by sheep’s erythrocites.

Antybodies production increases in the case of simultaneous or consecutive

administration of HGC and erythrocites

Prevents the immunity inhibition and demonstrates antitoxic action

16

Effect on mice tolerance of the St.aureus infection Test methodic:

Each mouse received 20 μkg twice daily IP. 24

hours after the 2nd administration animals received

S. Aureus Wood 46 2,5х109 CFU. Microbial

suspension was administrated intraperitoneally in

0,2% agar. Animals were followed up for 3 days,

endpoint was death.

Product Infection

Dose

Number of

mice

Animal death %

survived

mice Day 1 Day 2 Day 3

HGC 2.5х109 10 7 1 20

Control 2.5х109 10 10 * * 0

Effect on mice tolerance of the St.aureus infection

Animals were infected by

different doses to assess

LD 50.

Result: LD50 increased >4

times

Product Infection

Dose

Number of

mice

Animal death LD 50

Day 1 Day 2 Day 3

HGC

3х108 10 3

3х109

6х108 10 3

1,25х109 10 4 1

2,5х109 10 7

5х109 10 9

Control

3х108 10 3 2

7х108

6х108 10 5 1 1

1,25х109 10 8

2,5х109 10 9 1

5х109 10 9 1

Anti-infection and Protective Action

Study by Mechnikov Institute of Vaccines and Serums, Moscow

17

Assessment of mice survival after infection by Salmonella Typhimurium

HGC was

administrated I.P.

Immunisation

scheme Doze (μg)

Mice

number % death LD 50 Lifetime (days)

24 hours before

and at the day of

infection

0,1 50 16 5,0*105 51,5

Control 50 28 1.2*105 22,5

Summary: Results show that HGC stimulates the intrinsic immunity and

protects animals, the animal lifetime increased in 2+ times in using of

HGC in microdozes

Anti-Infection and Protective Action

Study by Mechnikov Institute of Vaccines and Serums, Moscow

18

Study by Brain Institute, Moscow

Before

Standard Experimental Experimental Standard

Antihypoxic Activity

40 min after

The changes in cerebral acid-base balance.

The intensity of volunteer’s (male, 57 years) brain energy status by method of measuring of

omnipresent millivolt potential levels before and in 40 min after oral administration of 50 ml

HGC water solution (1 mg/ml)

19

Supplement 2

New Organic Germanium

me-too molecules

in vitro & in vivo studies

20

Different unique new molecules based on generics had been synthesized using the developed chemical technology platform e.g.:

I) Based on Aciclovir* (WDS-1)

*The used approach is totally differing from previously used for valacyclovir and other synthesis. Thus the proprietary technology platform also allows to synthesize the

new molecules with other nucleotide analogous (valaciclovir, ganciclovir, vidarubine, penciclovir etc.) to develop the antiherpetic molecule of me-better

class.

(PCT/RU2012/000897 dated 01.11.2012, priority date 16.05.2012 .).

II) Based on Azelaic Acid (WDS-3)

III) Based on Dichloroacetic Acid (WDS-11)

(Russian Patent № 2476436 dated 27.02.2013, priority date 25.01.2012,

PCT/RU2012/000922 dated 09.11.2012)

New Organic Germanium me-too molecules

21

R&D project in cooperation with

Fraunhofer Institute for Toxicology und Experimental Medicine (Fraunhofer

ITEM), Hannover (Germany)

HannoverImpuls, Hannover (Germany)

Ivanovskiy Virology Institute. Moscow

I. New Anti-herpetic molecule WDS-1

Human Herpes viruses (herpetoviridae) include: herpes simplex virus

type 1 (HSV-1), herpes virus simplex type 2 (HSV-2), varicella zoster

virus (VZV), Epstein-Barr virus (EBV), cytomegalovirus (CMV), and

human herpes virus HHV-6, HHV-7, HHV-8.

Worldwide rates of HSV infection are between 65% and 90%.

WHO reported that the lethal cases caused by HSV are 15.8% of all

viral disease and are the world second after flu lethality (35,8 %)

22

Scientific Background

Disorders caused by herpes viruses:

Oral herpes is the most common form of infection, the visible symptoms

of which are called cold sores or fever blisters, acute herpetic

gingivostomatitis

Anogenital herpes, known simply as herpes, is the second most

common form of herpes overall cause of genital ulceration in the world.

Herpetic whitlow, herpes gladiatorum, ocular herpes (keratitis), cerebral

herpes infection encephalitis, Mollaret's meningitis, neonatal herpes.

HSV-1 has been proposed as a possible cause of Alzheimer's disease

HSV-1 as well as HHV-6 and HHV-8 are also considered to be an

important pathogen related to epilepsy

The major public health importance of HSV-2 lies in its potential role as

a co-factor for HIV transmission

23

Scientific Background

Patients with immature or suppressed immune systems, such as

newborn infants, transplant recipients, or AIDS patients are prone

to severe complications from herpes viruses infections.

As neurotropic and neuroinvasive viruses, HSV-1 and HSV-2

persist in the body by becoming latent and hiding from the immune

system in the cell bodies of neurons.

Recurrent infections (outbreaks) occur from time to time, especially

in times of immune impairment (such as HIV and cancer-related

immune suppression)

People who have genital HSV-2 have an average of 4-6 outbreaks

per year. About 20% of people with HSV-2 have 10 or more

outbreaks per year.

24

Current problems in treatment

Treatments by antiviral medications (aciclovir and other nucleoside analogous) can

reduce viral reproduction and shedding, frequency, duration, and severity of outbreaks,

prevent the virus from entering the skin, and reduce the severity of herpetic symptoms.

But

Aciclovir is poorly water soluble and has poor bioavailability (15-20% oral

and <4% topical). Thus patients on aciclovir therapy have to use high doses

leading to general and organ medication toxicity.

The poor water solubility cause renal impairment due to the crystallization of

aciclovir in the kidneys.

During the recurrence the herpes viruses activate and become the factor

aggravating the immunodeficiency. The protracted virus persistence leads to the

second immunodeficiency; however second immunodeficiency promotes the

virus activation. Aciclovir also seems to inhibit immune response.

The main potential problem is the resistance towards aciclovir which evolves

rather rapidly, especially for the patients with diminished immunity

25

New Strategy in Herpes Therapy

A new Germanium-organic/aciclovir coordination complex WDS-1 was

synthesized by using proprietary unique know-how methods and

patented chemical technology.

The developed technology platform also allows to synthesize the new

organic germanium coordination complexes with other different organic

molecules including nucleoside analogues e.g. valaciclovir, penciclovir,

famciclovir, ganciclovir, brivudine etc.

Acute toxicity 5 000 mg/kg (mice, IP)

Repeated doze toxicity 14 days/ Mice I.P./ /1000 mg/kg/day /NOAEL

Ames test negative

26

New Strategy in Herpes Treatment

WDS-1 with the similar to ACV lipophilicity has considerably better

biorelevant and biopharmaceutical solubility, which can testify to its

higher bioavailability

Solubility, mg/ml

Solution medium ACV WDS-1

Water, 200C 0.13% > 25%

рН 1,2 3,5 mg/ml > 32 mg/ml

рН 4,4 2,6mg/ml > 32 mg/ml

рН 6,8 2,4 mg/ml > 32 mg/ml

Fasted State Simulated Intestinal Fluid (FaSSIF) 1,44 mg/ml > 32 mg/ml

Simulated Intestinal Fluid (FeSSIF) 1,38 mg/ml > 32 mg/ml

27

Dual Mode of Action

Mode of Action

Virus inhibiting Immune modulation

Synergetic therapeutic efficiency

2 + 2 = 5 !

28

Influence of WDS-1 on HSV-1 reproduction in eye lavagates of rabbits with ocular herpes

Mode of action - 1:

Virus inhibiting

Study by Ivanovskiy Virology Institute, Moscow

* - р<0,05

№/

Group size, n

Days after infection / Virus titer lg TCD50/0,1ml(М±м).

2nd 5th 7th 9th 12th

1 Control 2,75±0,25 4,0±0,25 2,75±0,1 1,0±0.1 0,5±0,1

2 WDS-1 2,85±0,25 1,25±0,2 0,75±0,1* 0,5±0,1 0

Detected by in vitro neutralization reaction

Data adequacy compared with reference serum of non-infected animals

29

Influence of WDS-1 on production of virus-neutralizing antibodies in blood

serum of rabbits infected with HSV-1 ocular herpes

Mode of action - 2:

Immune modulating

Study by Ivanovskiy Virology Institute, Moscow

№/

Group size, n

In 2 weeks after infection In 3 weeks after infection

Titer of

Antibodies P*

Titer of

Antibodies P**

1 Control, (placebo)

1/128 <0,05 1/16 – 1/32* <0,05

2 WDS-1

1/256* <0,05 1/64 – 1/128* <0,05

3 Reference normal

serum 0 0

Detected by in vitro neutralization reaction

Data adequacy compared with reference serum of non-infected animals

30

New Strategy in Herpes Treatment

VERO cell culture, infection dose 100 CTD50

Scheme: 1 hour after virus absorbtion

Detection after 96 hours

Anti-Herpetic Activity against HSV-1 ACV-resistant strain L2/R

Study by Ivanovskiy Virology Institute, Moscow

№/№

WDS-1 Aciclovir Valaciclovir

Sample

concentration

equivalent to

ACV (mcg/ml)

Virus titre

reduction

comparing to

control, lg

TCD50

Sample

concentration,

mcg/ml

Virus titre

reduction

comparing to

control, lg

TCD50

Sample

concentration,

mcg/ml

Virus titre

reduction

comparing to

control, lg

TCD50

1 400 3,25 500 2 500 1,5

2 160 1,50 250 1,5 250 1,5

3 80 0,75* 100 1 100 0,75*

4 40 0,5* 50 - 50 0,75*

31

New Strategy of Herpes Treatment

Resume:

The studies demonstrated that new organic germanium compound WDS-1 is

non-toxic, has good biopharmaceutical characteristics and unique antiviral dual

mode of action: herpes virus inhibiting (including aciclovir resistant stains e.g.

L2/R of HHV-1) + activation and long period support of specific humoral

immunity.

These allows to develop different new medicines effective against herpes

viruses, which will have a lot of advantages (in comparision with market

analogous) e.g. higher bioavailability, less therapeutic dose, decreasing of side-

effects etc.

Furthermore the new medicines can be developed in variety of medicinal forms

including unique in the market (gel, suppositorium, eye drops and others)

32

1.The program of preclinical studies required for the performance of

„First in Man“ clinical studies was approved by bfArM (Germany) on

July 05, 2012

2.The preclinical Russian registration studies of antiherpetic gel (for

cold sore and genital herpes) are starting in May 2013.

3.The preclinical Russian registration studies of antiherpetic vaginal

suppositorium (for genital herpes) are starting in 3-4Q 2013.

New Strategy of Herpes Treatment

33

* Literature data

II. New Antimicrobic (anti-acne) molecule

WDS-3 Parameter Azelaic Acid WDS-3

Category Generic New patentable molecule

Water Solubility (20oC) 0.2% >10%

pH N/A*** 5.4

Acute toxicity, class of Hazard (Hodge,

Sterner) mice oral

V*** V

Skin irritant action Yes*** Negative

Skin-resorptive action N/A*** Negative

Sensibilization N/A*** Negative

Bioavailability Very low*** High**

34

Antimicrobic activity of WDS-3 vs Skinoren (azelaic acid) against

Propionibacterium acnes by in vitro agar diffusion test (products dilution 1:5)

II. New Anti-acne molecule WDS-3

Test microorganism

Size (diameter) of P. acnes growth inhibition zone (mm)

Skinoren*

gel 15%

Skinoren*

cream

20%

WDS-3*

gel 3%

WDS-3*

gel 5%

WDS-3*

cream 3%

WDS-3*

cream 5%

Propionibacterium

acnes 5592 12,5 15,5 17,5 22 18,5 27

Propionibacterium

acnes А-1 15,5 15 25 17 24 30

The less active concentrations of WDS-3 are more efficient against

Propionibacterium acnes than commercial «Skinoren» gel 15% и «Skinoren»

cream 20%.

35

Characteristic DCA (sodium salt) WDS-11

Category Generic New patentable

molecule

Solubility

рН 1,2, mg/ml 92,62 >108,29

рН 4,4, mg/ml 100,66 >147,69

рН 6,8, mg/ml 97,05 >165,28

Mode of action Warburg effect Warburg effect +

Immune therapy

III. New Anticancer molecule WDS-11

We developed and synthesized the new organic germanium molecule

basied on dichloroacetic acid (DCA) and perspective for anticancer

therapy.

36

III. New Anticancer molecule WDS-11

DCA sodium is inhibitor of mithohondrial pyruvate dehydrogenase and

now intensively studying as potential target medicine effective against

solid cancers1,2. The DCA’s mode of action is so called Warburg effect

– changing of cancer cells metabolism from aerobic glycolisys to

glucose-oxidative mechanism following to cancer cells apoptosis.

We believe that our new molecule can have dual mode of anticancer

action 2 in 1: inducting of Warburg effect + immunotherapeutic via

citokines (interferons) and natural killers stimulating.

The laboratory in vivo studies are planning to be start in 3-4Q 2013

1. Dichloroacetate (DCA) as a potential metabolic-targeting therapy for cancer. ED Michelakis et al., British Journal of Cancer

(2008) 99, 989 – 994

2. Pyruvate dehydrogenase kinase as a novel therapeutic target in oncology.Sutendra G, Michelakis ED. Front Oncol. 2013;3:38

37

We are open to

cooperation!

For further information, please contact: WDS Pharma LLC

Dr. Igor Ambrosov

[email protected]

Kulakova str., 20 bld. 1G,

123592 Moscow, Russia

Tel/fax +7 (495) 781-9203

Tel +7 (985) 765-2038