8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 25, 2019

PhaseBio Pharmaceuticals, Inc.

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-38697	03-0375697
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1 Great Valley Parkway, Suite 30 Malvern, Pennsylvania	19355
(Address of Principal Executive Offices)	(Zip Code)

(610) 981-6500

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☒

Item 2.02    Results of Operations and Financial Condition.

On March 26, 2019, PhaseBio Pharmaceuticals, Inc. (the “Company”) reported financial results for the fourth quarter and full year ended December 31, 2018. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.

The information in this Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 7.01    Regulation FD Disclosure.

On March 25, 2019, the Company issued a press release to announce that the Company had entered into a term loan facility with Silicon Valley Bank and WestRiver Innovation Lending Fund. A copy of this press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

On March 26, 2019, the Company will make available an updated version of the Company’s corporate presentation on the Company’s website. A copy of the updated corporate presentation is furnished as Exhibit 99.3 to this Current Report on Form 8-K.

The information in this Item 7.01 of this Current Report on Form 8-K (including Exhibits 99.2 and 99.3) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits

Exhibit No.	Description
99.1	Press Release, dated March 26, 2019, titled “PhaseBio Reports Fourth Quarter and Full-Year 2018 Financial and Business Results.”
99.2	Press Release, dated March 25, 2019, titled “PhaseBio Announces Term Loan of up to $15 million.”
99.3	Corporate Presentation, dated March 26, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PhaseBio Pharmaceuticals, Inc.
Dated: March 26, 2019	By:	/s/ John Sharp
		John Sharp
		Chief Financial Officer

EX-99.1

Exhibit 99.1

PhaseBio Reports Fourth Quarter and Full-Year 2018 Financial and Business Results

Results from Phase 1 clinical trial of PB2452 published in the New England Journal of Medicine and presented at the American College of Cardiology’s Annual Scientific Session

Initiated Phase 2b trial of PB1046 for the treatment of pulmonary arterial hypertension

Closed initial public offering that raised $43.0 million in net proceeds

Malvern, PA, and San Diego, CA, March 26, 2019 — PhaseBio Pharmaceuticals, Inc. (Nasdaq: PHAS), a clinical-stage biopharmaceutical company focused on the development and commercialization of novel therapies for orphan diseases, today reported financial results for the fourth quarter and full-year ended December 31, 2018, and provided an update on corporate activities.

“For PhaseBio Pharmaceuticals, 2018 was a transformative year during which we reported positive results from our Phase 1 trial of PB2452, completed a successful initial public offering and advanced our clinical program for PB1046,” said Jonathan P. Mow, Chief Executive Officer of PhaseBio. “We are pleased that the results from our Phase 1 clinical trial of PB2452 were presented at the American College of Cardiology’s Annual Scientific Session and simultaneously published in the New England Journal of Medicine. In the trial, PB2452 demonstrated an immediate and sustained reversal of the antiplatelet effects of ticagrelor. The totality of our recent accomplishments has positioned us well to deliver on our goal of bringing important therapies to patients with significant unmet medical need.”

Fourth Quarter and Recent Corporate Progress

• Reported PB2452 Phase 1 results: In March 2019, full results from the Phase 1 clinical trial of PB2452 were published online in the New England Journal of Medicine in a paper titled, “An Antibody-Based Ticagrelor Reversal Agent in Normal Volunteers” and simultaneously presented in a featured clinical research session at the American College of Cardiology’s 68th Annual Scientific Session. Results demonstrated PB2452 provided immediate and sustained reversal of the antiplatelet activity of ticagrelor.

• Secured up to $15.0 million term loan facility: In March 2019, PhaseBio entered into a $15.0 million term loan facility with Silicon Valley Bank and WestRiver Innovation Lending Fund. PhaseBio received an initial tranche of $7.5 million upon execution of the loan agreement and will use the funds to repay an existing term loan in full. A second tranche of $2.5 million will be available through May 31, 2019. PhaseBio will draw the remaining funding of $5.0 million upon the achievement of certain clinical milestones related to the development of PB2452.

• Appointed new members to the PhaseBio board of directors: In March 2019, Richard A. van den Broek was appointed to the board of directors. In December 2018, Edmund P. Harrigan, M.D., was appointed to the board of directors. Caroline M. Loewy was appointed to the board of directors in July 2018. Nancy Hutson, Ph.D., and Linda Tufts were appointed to the board of directors in March 2018.

• Dosed first patient in PB1046 Phase 2b trial: In November 2018, PhaseBio dosed the first patient in a multi-center, randomized, double-blind, parallel-group Phase 2b trial to evaluate the safety, tolerability and efficacy of PB1046 for the treatment of pulmonary arterial hypertension (“PAH”).

• Completed initial public offering and Series D financing: In October 2018, PhaseBio closed an initial public offering of 9,864,666 shares of common stock at a public offering price of $5.00 per share, including shares sold pursuant to the partial exercise of the underwriters’ option to purchase additional shares. PhaseBio received $43.0 million in net proceeds, after deducting underwriting discounts and commissions and offering expenses. In September 2018, PhaseBio closed a Series D financing that resulted in net proceeds of $17.7 million.

• Awarded $2.8 million NIH SBIR grant: In February 2018, PhaseBio was awarded a $2.8 million Fast Track Small Business Innovation Research (“SBIR”) grant from the National Institutes of Health (“NIH”) to support the clinical development of PB1046, a first-in-class, sustained-release vasoactive intestinal peptide analogue, in patients with PAH.

Upcoming Milestones

• Initiate Phase 2a trial of PB2452 in the first half of 2019.

• Data readout from Phase 2a trial of PB2452 in the first half of 2019.

• Initiate Phase 2b trial of PB2452 in the second half of 2019.

Fourth Quarter and Full-Year 2018 Financial Results

Cash Position

Cash and cash equivalents at December 31, 2018 were $61.0 million, compared to $13.4 million at December 31, 2017. The increase reflects net proceeds from the initial public offering, the issuance of Series D preferred stock and net proceeds from term loan borrowings, partially offset by cash used in operating activities.

Results of Operations

Three Months Ended December 31, 2018

PhaseBio reported a net loss of $4.9 million for the three months ended December 31, 2018, which compared with a net loss of $2.5 million for the same period in 2017. This resulted in a net loss of $0.26 per share for the three months ended December 31, 2018, as compared to a net loss of $3.41 per share for the corresponding period in 2017, on both a basic and diluted basis.

Grant revenues were $0.3 million for the three months ended December 31, 2018, as PhaseBio incurred allowable costs qualifying for reimbursement under the government grants. PhaseBio did not record any grant revenues for the three months ended December 31, 2017.  

Research and development expense increased to $5.7 million for the three months ended December 31, 2018, as compared to $1.8 million for the three months ended December 31,

2017, reflecting an increase in manufacturing, clinical and preclinical development activities related to PB2452 and PB1046.

General and administrative expense increased to $2.2 million for the three months ended December 31, 2018, as compared to $0.6 million for the three months ended December 31, 2017, primarily attributable to increases in professional services, personnel, insurance and business travel-related expenses.

Year Ended December 31, 2018

PhaseBio reported a net loss of $23.8 million for the year ended December 31, 2018, which compared with a net loss of $10.2 million for 2017. This resulted in a net loss of $4.49 per share for the year ended December 31, 2018, as compared to a net loss of $13.78 per share for the corresponding period in 2017, on both a basic and diluted basis.

Grant revenues were $0.7 million for the year ended December 31, 2018, as PhaseBio incurred allowable costs qualifying for reimbursement under the government grants. PhaseBio did not record any grant revenues for the year ended December 31, 2017.  

Research and development expenses increased to $15.5 million for the year ended December 31, 2018, as compared to $6.2 million for the year ended December 31, 2017, reflecting an increase in clinical and preclinical development activities related to PB2452 and PB1046.

General and administrative expenses were $4.9 million for the year ended December 31, 2018 compared to $2.3 million for the year ended December 31, 2017, primarily attributable to increases in professional services, personnel, insurance and business travel-related expenses.

About PhaseBio

PhaseBio Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel therapies to treat orphan diseases, with an initial focus on cardiopulmonary disorders. The company’s lead development candidate is PB2452, a novel reversal agent for the antiplatelet therapy ticagrelor. PhaseBio is also leveraging its proprietary elastin-like polypeptide (“ELP”) technology platform to develop therapies with the potential for less-frequent dosing and improved pharmacokinetics. PhaseBio’s second product candidate PB1046, which is based on ELP, is a once-weekly vasoactive intestinal peptide receptor agonist for the treatment of pulmonary arterial hypertension.

PhaseBio is located in Malvern, PA and San Diego, CA. For more information, please visit www.phasebio.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements.

Forward-looking statements include statements concerning or implying the conduct of our clinical trials and the timing of the release of the results of our clinical trials. Forward-looking statements are based on management's current expectations and are subject to various risks and

uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements.

Risks regarding our business are described in detail in our Securities and Exchange Commission filings, including in our Annual Report on Form 10-K for the year ended December 31, 2018. These forward-looking statements speak only as of the date hereof, and PhaseBio Pharmaceuticals, Inc. disclaims any obligation to update these statements except as may be required by law.

###

Investor Contact:

John Sharp

PhaseBio Pharmaceuticals, Inc.

Chief Financial Officer

(610) 981-6506

john.sharp@phasebio.com

Media Contact:

Sarah Hall

6 Degrees

(215) 313-5638

shall@6degreespr.com

PhaseBio Pharmaceuticals, Inc.

Statements of Operations

(in thousands, except share and per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
	2018			2017			2018			2017
Grant revenues	$	257		$	—		$	668		$	—
Operating expenses:
Research and development		5,676			1,823			15,455			6,210
General and administrative		2,241			628			4,857			2,328
Total operating expenses		7,917			2,451			20,312			8,538
Loss from operations		(7,660	)		(2,451	)		(19,644	)		(8,538	)
Other income (expense)		2,792			(84	)		(4,202	)		(1,709	)
Net loss	$	(4,868	)	$	(2,535	)	$	(23,846	)	$	(10,247	)
Net loss per common share, basic and       diluted	$	(0.26	)	$	(3.41	)	$	(4.49	)	$	(13.78	)
Weighted average common shares       outstanding, basic and diluted		18,824,091			744,155			5,305,062			743,470

PhaseBio Pharmaceuticals, Inc.

Condensed Balance Sheets

(in thousands)

	December 31,
	2018		2017
Assets:
Cash and cash equivalents	$	61,031	$	13,406
Other receivable, prepaid expenses and other current assets		1,597		360
Property and equipment, net		355		302
Other non-current assets		43		31
Total assets	$	63,026	$	14,099
Liabilities, redeemable convertible preferred stock and        stockholders' equity (deficit):
Convertible promissory notes, net of discount	$	—	$	12,095
Derivative liability		—		3,028
Current portion of long-term debt		—		761
Accounts payable and accrued expenses		4,577		1,711
Preferred stock warrant liability		—		1,656
Deferred rent		22		5
Long-term debt		7,500		2,625
Redeemable convertible preferred stock		—		89,634
Stockholders’ equity (deficit)		50,927		(97,416	)
Total liabilities, redeemable convertible preferred stock and        stockholders' equity (deficit)	$	63,026	$	14,099

EX-99.2

Exhibit 99.2

PhaseBio Announces Term Loan of up to $15 Million

Entered into term loan facility with Silicon Valley Bank and WestRiver Innovation Lending Fund to borrow up to $15 million

Funds will be used to advance clinical development of PB2452, a reversal agent for ticagrelor, and for repayment of the existing term loan

Malvern, PA, and San Diego, CA, March 25, 2019 — PhaseBio Pharmaceuticals, Inc. (Nasdaq: PHAS), a clinical-stage biopharmaceutical company focused on the development and commercialization of novel therapies for orphan diseases, today announced that the Company has secured up to $15 million in funds to support the clinical advancement of PB2452, a novel reversal agent for the antiplatelet drug ticagrelor, and for repayment of PhaseBio’s existing term loan in full.

PhaseBio entered into a $15 million term loan facility with Silicon Valley Bank and WestRiver Innovation Lending Fund, subject to funding in up to three tranches. PhaseBio received the initial tranche of $7.5 million upon execution of the loan agreement and will use the funds to repay PhaseBio’s existing term loan in full. The second tranche of $2.5 million will be available through May 31, 2019. PhaseBio will draw the remaining funding of $5 million upon the achievement of certain clinical milestones.

“We are pleased that our new partnership with WestRiver Innovation Lending Fund and our continued partnership with Silicon Valley Bank are able to support clinical advancements for our product candidates, including PB2452, which has the potential to be an important treatment for patients on ticagrelor who experience major bleeding or require urgent surgery,” said John Sharp, Chief Financial Officer of PhaseBio. “This funding further strengthens our cash position and provides additional financial resources as we continue to focus on bringing meaningful therapies to patients who are currently without effective treatment options.”

“Working with PhaseBio, we have been impressed by the company’s commitment to advancing novel therapies for patients with orphan diseases,” said Tom Gordon, Managing Director at Silicon Valley Bank. “We are excited for the future of PB2452 and look forward to our continued partnership with PhaseBio.”

About PB2452

PB2452 is a novel, recombinant, human monoclonal antibody antigen-binding fragment, or Fab fragment, designed to reverse the antiplatelet activity of ticagrelor in major bleeding and urgent surgery situations. In Phase 1 clinical and preclinical studies, PB2452 achieved immediate and complete reversal of ticagrelor’s antiplatelet activity, and has the potential to bring life-saving therapeutic benefit by increasing the safety of ticagrelor and mitigating concerns regarding the bleeding risk associated with antiplatelet drugs. There are currently no approved reversal agents for ticagrelor or any other antiplatelet drugs.

About PhaseBio

PhaseBio Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel therapies to treat orphan diseases, with an initial

focus on cardiopulmonary disorders. The company’s lead development candidate is PB2452, a novel reversal agent for the antiplatelet therapy ticagrelor. PhaseBio is also leveraging its proprietary elastin-like polypeptide (“ELP”) technology platform to develop therapies with the potential for less-frequent dosing and improved pharmacokinetics. PhaseBio’s second product candidate PB1046, which is based on ELP, is a once-weekly vasoactive intestinal peptide receptor agonist for the treatment of pulmonary arterial hypertension.

PhaseBio is located in Malvern, PA and San Diego, CA. For more information, please visit www.phasebio.com.

###

Investor Contact:

John Sharp

PhaseBio Pharmaceuticals, Inc.

Chief Financial Officer

(610) 981-6506

john.sharp@phasebio.com

Media Contact:

Sarah Hall

6 Degrees

(215) 313-5638

shall@6degreespr.com

EX-99.3

Q4 and Full Year 2018 Financial Results March 26, 2019 Exhibit 99.3

Legal Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding future results of operations and financial position of PhaseBio Pharmaceuticals, Inc. (“we,” “us” or “our”) our business strategy and plans, the preclinical and clinical development of our product candidates and our objectives for future operations, are forward-looking statements. The words “anticipate,” believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, clinical development, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Risks regarding our business are described in detail in our Securities and Exchange Commission filings, including in our Annual Report on Form 10-K for the year ended December 31, 2018. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements contained in this presentation.

Company Overview Therapeutic Focus Clinical-stage biopharma company focused on the development and commercialization of novel therapies to treat orphan diseases, with an initial focus on cardiopulmonary indications Product Candidates PB2452 – Novel agent for immediate and sustained reversal of ticagrelor, the preferred antiplatelet therapy of the American College of Cardiology, the American Heart Association and European Society of Cardiology PB1046 – Once-weekly novel treatment for pulmonary arterial hypertension (PAH), based on elastin-like polypeptide (ELP) technology, that is vasodilatory, potentially disease-modifying and complementary to current standard-of-care therapies Platform Technology ELP Technology Extends circulating half-life of proteins and peptides and provides a sustained-release mechanism Enhances solubility, stability and bioavailability, provides extended drug exposure Creates product candidates that are straightforward to manufacture and administer Milestones & Catalysts 2019 PB2452 March 17, 2019 Late-breaking oral presentation of full Phase 1 results at 68th Annual American College of Cardiology Scientific Sessions / Simultaneous publication in New England Journal of Medicine PB2452 1H 2019 Initiate Phase 2a trial in healthy older adults PB2452 1H 2019 Report results from Phase 2a trial in healthy older adults PB2452 2H 2019 Initiate large Phase 2b trial in healthy older adults to support BLA safety database 2020 PB1046 1H 2020 Phase 2b data PB2452 2020 Initiate Phase 3 study based on plan to pursue accelerated approval pathway

Program Indication/Therapeutic Area Pre-Clinical Phase 1 Phase 2 Phase 3 WW Commercial Rights Milestones PB2452 Reversal of Ticagrelor Antiplatelet Activity 1H 2019: Initiate Phase 2a Report Phase 2a results 2H 2019: Initiate Phase 2b 2020: Initiate Phase 3 based on plan to pursue accelerated regulatory pathway PB1046 Pulmonary Arterial Hypertension (PAH) 2020: Phase 2b results GLP2-ELP Short Bowel Syndrome CNP-ELP Achondroplasia Early Programs A Clinical Stage, Orphan Disease-Focused Biopharmaceutical Company Phase 2 ongoing Late research PROPRIETARY LONG ACTING INJECTABLE RECOMBINANT BIOPOLYMERS (Elastin-like Polypeptides – ELPs) ELP TECHNOLOGY PLATFORM DRIVES INTERNAL DISCOVERY IND-enabling activities Phase 2 ongoing

Corporate

Recent Corporate Highlights Reported PB2452 Phase 1 results Presented as a late breaking oral presentation at the American College of Cardiology Scientific Sessions on March 17, 2019 Simultaneously published in the New England Journal of Medicine Secured up to $15 million term loan facility from Silicon Valley Bank Funds to repay existing $7.5M term loan in full and support advancement of PB2452: March 2019 Appointed new members to board of directors Richard A. van den Broek: March 2019 Edmund P. Harrigan, M.D.: December 2018 Caroline M. Loewy: July 2018 Nancy Hutson, Ph.D.: March 2018 Linda Tufts: March 2018 Dosed first patient in PB1046 Phase 2b trial for the treatment of pulmonary arterial hypertension (PAH) Dosed first patient in a multi-center, randomized, double-blind, parallel-group Phase 2b trial: November 2018 Completed initial public offering (IPO) and Series D Financing Received $43.0 million in net proceeds from an IPO, after deducting underwriting discounts, commissions and offering expenses: October 2018 Received $17.7 million in net proceeds from a Series D financing: August 2018 Awarded National Institutes of Health (NIH) Small Business Innovation Research (SBIR) Grant Received $2.8 million Fast Track SBIR grant from the NIH to support the clinical development of PB1046: February 2018

Full-Year 2018 Financial Highlights Operating expense: $20.3M R&D: $15.5M SG&A: $4.9M Loss from Operations: ($19.6M) Net Loss of ($23.8M) or ($4.49) per share 5.3M shares used for computing FY 2018 net loss per share Cash and cash equivalents as of 12/31/2018: $61.0M Shares outstanding as of 03/15/2019: 24,498,425 All values in USD millions except share counts and net loss per share Numbers may not sum to totals due to rounding

PB2452 – Reversal Agent for Ticagrelor

PB2452 - Novel reversal agent for Brilinta (ticagrelor) Human monoclonal antibody fragment (Fab), delivered intravenously in the hospital Phase 1 Proof of Concept Study completed Selected for late-breaking oral presentation at 68th Annual American College of Cardiology Scientific Sessions (March 17, 2019) Simultaneously published in the New England Journal of Medicine Immediate and sustained reversal of ticagrelor anti-platelet effects P2Y12 receptor antagonist with demonstrated superior efficacy to clopidogrel Reversal agent availability would differentiate ticagrelor on safety vs. other oral antiplatelet agents Growth in ticagrelor share of P2Y12 market would increase need for reversal agent Significant unmet need for antiplatelet agent reversal All oral antiplatelet agents have the potential to cause major bleeding, which can be severe or even fatal PB2452 immediately and sustainably reverses the antiplatelet effects of ticagrelor Currently oral P2Y12 agents, including ticagrelor, require a ≥5 day washout prior to surgery Urgent surgery cannot wait 5 days High thrombotic risk during washout In the Phase 1 study, PB2452 immediately and sustainably reversed ticagrelor inhibition of platelet activation Enables immediate surgery Active Major Bleeding Urgent Surgery or Intervention

PB2452: Well-Characterized Mechanism of Reversal of Ticagrelor ADP ADP Platelet ADP binds to P2Y12 receptor causing platelet aggregation Ticagrelor binds to P2Y12, inhibiting ADP-induced platelet aggregation This is a reversible process with ticagrelor cycling on/off the P2Y12 receptors PB2452:ticagrelor is eliminated from the bloodstream PB2452:ticagrelor binding is preferential to ticagrelor:P2Y12 binding As free ticagrelor is eliminated, ADP can again activate the P2Y12 receptor, restoring platelet activity PB2452 binds to free ticagrelor with very high affinity PB2452 4. 5. 6. 1. 2. 3. ADP ADP Platelet ADP Ticagrelor P2Y12 Receptor ADP

PB2452 Phase 1 Proof-of-Concept Study in Healthy Subjects Selected as late-breaking oral presentation during featured clinical research session at the 68th Annual Scientific Session of the American College of Cardiology – March 17, 2019 Simultaneously published in the New England Journal of Medicine Bhatt DL, Pollack CV, Weitz JI, et al. Antibody-Based Ticagrelor Reversal Agent in Healthy Volunteers. N Engl J Med 2019;Mar 17:[Epub ahead of print]. https://www.acc.org/latest-in-cardiology/clinical-trials/2019/03/15/21/37/ticagrelor-reversal-agent

PB2452 Phase 1 Proof-of-Concept Study in Healthy Subjects Randomized, double-blind, placebo-controlled, single ascending dose (SAD), sequential group study (n=64) 3:1 randomization, PB2452-Placebo Higher-dose cohorts pre-treated with ticagrelor After 48 hours of ticagrelor, platelet aggregation was suppressed by ~80%, as expected based on approved package insert Platelet function evaluated using three well established and commonly used assays Onset of reversal occurred within 5 minutes and was sustained for over 20 hours (P<0.001 across all timepoints, Bonferroni adjusted) Well tolerated with no drug-related serious adverse events No evidence of rebound in platelet activity after drug cessation Bhatt DL, Pollack CV, Weitz JI, et al. Antibody-Based Ticagrelor Reversal Agent in Healthy Volunteers. N Engl J Med 2019;Mar 17:[Epub ahead of print].

Platelet Function After Ticagrelor Reversal - LTA Normalization of platelet response to ADP was assessed by whether reversal of ticagrelor achieved a normal range of platelet function Bhatt DL, Pollack CV, Weitz JI, et al. Antibody-Based Ticagrelor Reversal Agent in Healthy Volunteers. N Engl J Med 2019;Mar 17:[Epub ahead of print]. Return to Normal Platelet Function: Post-PB2452 Dosing Inhibited Platelet Function: Post-Ticagrelor Dosing Normal Platelet Function: Pre-Ticagrelor Dosing Normal Platelet Function Inhibited Platelet Function LTA= light transmittance aggregometry; Adenosine Diphosphate (ADP) is the agonist Shown are data from cohorts 9 and 10 (pooled) Cohorts 9 and 10 achieved study objectives and will be the basis for dosing in the Phase 2a study in healthy older volunteers Dose-dependent response across all cohorts tested Immediate reversal within 5 minutes of start of infusion Sustained duration of reversal extended to 20+ hours Rapid resumption of ticagrelor dosing post infusion Well tolerated across all cohorts No drug-related SAEs

PB2452 Clinical Development Plan Based on FDA Accelerated Approval Pathway Regulatory Strategy based on Pre-IND discussion of Accelerated Approval Phase 2a study to confirm dosing in an older, healthy-for-age population Large Phase 2b study will develop safety database Phase 3 non-randomized trial conducted largely in parallel with Phase 2 Initial approval based on platelet aggregation biomarker SAD: healthy subjects BLA US Approval Clinical Studies BLA enabling data Phase 1 ✔ Major Bleeding and Urgent Surgery Phase 3 Ph2b: ~200 Healthy older subjects Phase 2 FDA Interim analysis for BLA submission Ph2a: healthy older subjects

Continued Long Term Unit Growth of Ticagrelor Fueled by PB2452 approval Brilinta/Brilique sales in 2018 were $1.32B and growing (+22% Y/Y) Patient growth drives Y/Y revenue growth in all regions: EU (+18%), US (+16%), Emerging Markets (+46%) In February 2019, Brilinta Phase III THEMIS1 trial met primary endpoint in patients with established coronary artery disease and type-2 diabetes Brilinta Phase III THALES2 trial in stroke expected to readout in 2020 Ticagrelor Differentiation vs. clopidogrel Efficacy ✔ ✔ ✔ Safety -- (no reversal agent) ✔ ✔ Price O (branded vs. generic) O (branded vs. generic) ✔ Now Post PB2452 Launch Post LOE of ticagrelor https://www.astrazeneca.com/media-centre/press-releases/2019/brilintas-phase-iii-themis-trial-met-primary-endpoint-in-patients-with-established-coronary-artery-disease-and-type-2-diabetes-25022019.html https://clinicaltrials.gov/ct2/show/study/NCT03354429 Copyright © 2019 PhaseBio Pharmaceuticals, Inc. All Rights Reserved

PB2452 Program Summary and Next Steps Phase 1 trial achieved clinically-important immediate and sustained reversal of ticagrelor Well tolerated and no PB2452-related SAEs Product profile: Immediate and sustained reversal of ticagrelor antiplatelet effects Major bleeding requires immediate and sustained reversal Duration of reversal dependent on infusion length Next steps for program Phase 2a study to confirm most appropriate dose and dose regimen in healthy older subjects Initiation of large Phase 2b study to support BLA safety database

Elastin-Like Polypeptide Technology (ELP) – Engine for Growth

PROLONGED CIRCULATING HALF-LIFE Repeating Sequence of Human Elastin Peptides VPGXG Peptide/Protein (VIP, GLP1, etc.) Active Moiety “Biopolymer” n UP TO 200x INCREASE IN ½ LIFE Proprietary Elastin-Like Polypeptide (ELP) Technology Growth Engine for PhaseBio Preclinical Pipeline ↑ Temperature COACERVATION DELIVERS SLOW RELEASE Inside Body Non-Soluble ELP WEEKLY OR MONTHLY DOSING Outside Body Highly Soluble ELP Pharmacokinetics Slower rate of bioavailability Ease of Administration Patient Compliance IMPROVING

ELP: A Highly Flexible Technology for Modulating Pharmacokinetics VERSATILE: MANY ACTIVE MOIETIES POSSIBLE Peptides or proteins can be genetically fused to N- or C-terminus1, or both. Chemical conjugation to small molecules or peptides LOW COST MANUFACTURING Can be produced in E.coli, yeast or mammalian cells FLEXIBLE EXPOSURE ELP engineering enables exposures ranging from weekly or monthly to rapid uptake (e.g. prandial insulin) WELL TOLERATED Multiple clinical programs with no drug-related SAEs CORE ELP TECHNOLOGY https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3622222/

PB1046 - Once Weekly Vasoactive Intestinal Peptide (VIP) Analog for Pulmonary Arterial Hypertension

High Unmet Need in an Orphan Disease Primary Pulmonary Arterial Hypertension (PAH, WHO Group 1 PH) High unmet need for novel disease-modifying PAH therapies for greater efficacy All 3 approved drug classes in PAH are vasodilators: prostacyclin, endothelin, and nitric oxide pathways Patients inevitably continue to decline and die on standard of care VIP addresses PAH vasoconstriction, progressive vascular remodeling, and right heart failure McGlaughlin et al. (2015) J. Am. Coll. Cardiol., 65:18

PB1046: Harnessing VIP to Create a Stable, Long-Acting Drug PRECLINICAL STUDIES Support Clinical Development for: Pulmonary Arterial Hypertension DMD Cardiomyopathy Heart Failure (Chemotherapy-Induced HF or HFpEF) Cystic Fibrosis MECHANISM OF ACTION VIA VPAC2 RECEPTOR Potent vasodilator Anti-inflammatory and anti-fibrotic Cardiac support through increased inotropy and lusitropy VIP as a THERAPEUTIC AGENT VPAC2 VPAC1 Half-Life ~60 Hours in Humans PB1046 VPAC2 VPAC1 VIP Peptide Half-Life ~ 1 minute in Humans

PHASE 1 Studies Completed PAH PHASE 2 Studies Well tolerated for a week over broad range of exposure; no drug-related SAEs Prolonged PK/PD profile over 1 week VIP activity confirmed (Systolic and Diastolic BP lowering) Well tolerated across dose range; no drug-related SAEs Replicated PK/PD from SAD over 4 weekly SC injections VIP activity reproduced in HFrEF patients on SOC COMPLETED COMPLETED SAD study in HTN patients washed off meds 4-week MAD study in HFrEF patients on SOC PB1046 Clinical Development Activities to Date Have Supported Advancement into a Phase 2b PAH Efficacy Study Open-Label Phase 2a CardioMEMS in PAH study: Safety and Hemodynamics Phase 2b PAH Efficacy 16-Wk Randomized, Controlled Study PHASE 2b STUDY ACTIVELY ENROLLING CardioMEMS Open-Label PAH Study N = 3 patients, dosed weekly for 8 wks, followed by extension No longer enrolling patients Realtime PA pressure and other hemodynamic monitoring Initial data show improved hemodynamics Phase 2b PAH 16 wk randomized, controlled study N = ~60 class II/III PAH patients, dosed weekly x 16 weeks Individual dose titration to MTD Efficacy endpoints PVR via RHC, 6MWD Extension study to follow COMPLETED

PB1046 Single Ascending Dose Study PK and PD Support Once-Weekly SC Administration Single subcutaneous injections in hypertensive patients washed off medications Well tolerated, week-long PK, dose-dependent VIP activity observed Supports weekly SC dosing in multi-dose studies Serum Concentration PB1046 (ng/mL) Slow Release Kinetics (Tmax 48 h) PK HALF-LIFE ~60 HOURS VIP EFFECT ON SYSTOLIC BLOOD PRESSURE Restart Background Anti-hypertensive Therapy 14 21 28

PB1046 Multiple Ascending Dose Study Multi-Dose Safety and PK/PD Confirmed in HFrEF Patients MAD in HFrEF completed 4Q2017 Weekly SC injections x 4 weeks in 29 HF patients maintained on SOC meds Well tolerated in a sick patient population on multiple vasoactive medications Prolonged PK profile replicated in heart failure patients Dose-related systolic BP reduction confirms durable VIP activity PB1046 Induced Sustained Reduction in Systolic BP p = 0.043, placebo vs PB1046 1.2 mg/kg

PB1046 Phase 2b PAH Study Actively Recruiting PAH WHO functional class II/III subjects on two drug oral SOC therapy 16 week randomized, double-blinded, controlled study with extension Primary endpoints: Pulmonary vascular resistance (PVR) via RHC, 6MWD, safety Designed to support placebo-controlled Phase 3 registrational study PhaseBio awarded NIH/NHLBI SBIR R44 grant to support PAH program $2.8M award supports CardioMEMS and Phase 2b PAH studies Open-label extension PB1046 individually titrated to Maximum Tolerated Dose Weekly SC injection x 16 weeks PB1046 Minimum Effective Dose with mock dose titration Weekly SC injection x 16 weeks