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Forward Looking Statements
This presentation contains forward-looking statements, including but not limited to statements regarding the
timing of development for our product candidates, expected commencement and completion of pivotal trials,
prospective product candidates, anticipated regulatory approvals for our product candidates, anticipated
commercialization of our product candidates, our financial position, business strategy, plans and objectives of
management for future operations and other similar statements. These forward-looking statements are based
on our current expectations and beliefs, as well as assumptions concerning future events. These statements
are subject to risks, uncertainties, and other factors, many of which are outside of our control, that could cause
actual results to differ materially from the results discussed in the forward-looking statements, including, but not
limited to, our limited operating history and lack of profitability, our lack of product revenue and potential need
to raise additional capital to achieve our goals, our dependence upon the success of our lead product
candidates, other companies’ ability to develop substantially similar products that may compete with our
product candidates, any inability to obtain regulatory approval for our existing or future product candidates, any
delay or discontinuance of our current or future pivotal trials, any inability to achieve market acceptance or
commercial success for our product candidates even if they are approved, inability to obtain adequate
intellectual property protection covering our product candidates, our dependence on third-party manufacturers
for supplies, and any inability to successfully identify, develop and commercialize additional product
candidates.
Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation
and represents our estimates and assumptions only as of the date of this presentation. Except as required by
law, we assume no obligation to update these statements publicly, or to update the reasons actual results
could differ materially from those anticipated in these statements, even if new information becomes available in
the future.
January 6, 2017
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Pets Are Family Members
In 2015, pet owners in the U.S. spent $60.28 billion on pets
Nearly 80 million U.S. households have a pet family
member
40% of pets sleep in bed with the pet parents
Source: APPA Pet Industry Market Size & Ownership Statistics 2015
The market is
underappreciated because
pets are not new –
but the pet’s role in the
family has changed
dramatically
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$15.7 billion on veterinary care
$1.5 billion on dog knee surgeries
$370 million on pet Halloween
costumes
$700 million on Valentine’s Day gifts
Annually, U.S. pet parents spend:
We Love Our Pet Family Members
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Millennials and Their Pets
78%
of Millennials and Boomers
agree pets are Family
82%
of Millennials feel getting a pet
is part of preparing for a
family, while only 59% of
Boomers felt the same.
Source: Pet Age, 2014: http://www.petage.com/the-millennial-mind/
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KindredBio’s Strategy:
Repurpose Human Drugs for Pets
Pursue molecules
already known to
work
Reduce
technical risk
Reduce
timelines
$3M-$5M to
develop each pet
drug
Reduce
financing risk
Portfolio
approach
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KindredBio Highlights
Two launches
by 2017
Zimeta™ for fever in horses
Mirataz™ for mgmt. of weight loss in cats
~2 launches per year thereafter
Attractive
Markets
Rapidly growing
Few current competitors
World Class
Team
Extensive drug development experience
Human and veterinary experience
Deep Pipeline ~20 small molecule and biologic candidates
Strategic
Approach
Reduces technical risk
Reduces financing risk
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Richard Chin, M.D.
Founder and Chief Executive Officer
Former Head of Clinical Research, BioTherapeutics, Genentech
Rhodes Scholar
World Class Leadership Team
Denise Bevers
Founder and Chief Operating Officer
Founder, SD Scientific; 25 years in biotech/pharma
Stephen Sundlof, D.V.M, Ph.D.
Chief Scientific Officer and Executive Vice President, Regulatory Affairs & Quality
Former Director, Center for Veterinary Medicine, FDA
Wendy Wee
Vice President, Finance
16 years of biotechnology finance experience
Hangjun Zhan, Ph.D.
Vice President, Biologics Research
20 years of drug discovery experience
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Deep Product Pipeline
Not all programs are listed. Some are not disclosed for competitive reasons.
* Initial pilot studies completed. Final formulation being developed.
Molecule Indication Discovery/Process Development
Pilot/Pivotal
Clinical Studies
NADA & Launch
Preparation
Biologic Product Candidates
epoCat™ (feline erythropoietin) Anemia in cats
Anti-Interleukin Antibodies Atopic dermatitis in dogs
Checkpoint Inhibitors Cancer in dogs
Anti-CD20 antibody
Cancer and autoimmune
diseases in dogs
KIND-Bodies Multiple indications
Anti-IgE antibody Allergic diseases in dogs
Anti-VEGF antibody Cancer in dogs
Anti-TNF Sick newborn foals
Molecule Indication Formulation
Laboratory
Pilot Studies
Field Pilot
Studies
Pivotal
Clinical
Study
NADA &
Launch
Preparation
Small Molecule Product Candidates
Mirataz™
(mirtazapine 2% transdermal ointment)
Management of weight loss in
cats
NADA
Zimeta™
(dipyrone injection)
Fever in horses
KIND-014* Equine gastric ulcers
KIND-015* Metabolic syndrome in horses
Rolling NADA
Filed
Rolling NADA
Filed
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Market Opportunity
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Veterinary Market is Growing Rapidly
The veterinary care
market grew 71% from
2006 to 2016
Animal health stocks have
increased 35% in 2016,
versus S&P 500 at 8.3%
(as of Aug 2016, Reuters)
Source: APPA Pet Industry Market Size & Ownership Statistics 2016 & TriMark Vet Health Market, June 2013
Estimated
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Pet owners are willing to spend on their seriously ill pets if they require
medical treatment.
There is a High Willingness to Pay…
$500 $1,000 $2,000 $5,000
Extremely/Very likely 62% 42% 35% 22%
Somewhat likely 18% 20% 28% 20%
Not too likely/Not at all likely 18% 36% 36% 55%
Don’t know 1% 2% 1% 3%
Source: The AP-Petside.com Poll, Conducted by GfK Roper Public Affairs & Media;
Interview dates: April 7 – April 12, 2010
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…But Treatment Options are Limited
Underserved market with attractive
growth opportunities
Few competing biotechs
Large pharma focused on blockbusters
On average, less than a dozen pet
drugs are approved annually by the
FDA
In 2016 the FDA approved:
6 novel pet drugs
22 novel humans drugs
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Programs
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KindredBio Drug Development Process
Small
Molecules
Biologics
Already validated in
humans &
established
manufacturing
Customize species-
specific dosage
and formulate
flavored/convenient
delivery
Targets based on
approved human
drugs (e.g., Enbrel
and Orencia)
Create canine/
feline/equine
versions of
biologics w/ same
or similar target
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Zimeta™ (dipyrone injection)
IV and Oral drug for the control of pyrexia (fever) in horses
High unmet medical need
U.S. equine Veterinarians report seeing 12 cases (median) of
fever in a typical month
Currently, no FDA-approved treatment for fever in horses
Source: The Economic Impact of the Horse Industry on the United States, 2005,
American Horse Council Foundation (n=18,648 U.S. horse owners/industry suppliers).
Zimeta Pricing Research, Ipsos Ag & Animal Health, May 2016 (n=160 U.S. equine Veterinarians). Data on file at Kindred Biosciences.
690,000 horses
treated for
fever annually
8-9 million horses
in the U.S
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Zimeta Development Program
IV:
NADA technical sections filed
Effectiveness technical section of NADA approved by FDA
Oct 2016
Expect approval 2H/2017, if review proceeds as expected
Oral:
Initial pilot studies completed
Final formulation development underway
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Zimeta Pilot Study Results (IV)
Mean Temp. over Time - First Dose and Crossover Dose (Treated Pts.)
Zimeta
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Zimeta Pivotal Field Study Results (IV)
KB0120 study:
Randomized, double-blind, placebo-controlled (N=130)
Primary endpoint was improvement or resolution of fever
Suc
c
e
s
s
R
a
te
(%
)
P-value <0.0001
76.8
19.4
Placebo
N=31
Zimeta
N=99
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Zimeta New Product Opportunity
Source: Zimeta Pricing Research, Ipsos Ag & Animal Health, May 2016 (n=160 U.S. equine Veterinarians) .
Data on file at Kindred Biosciences.
88% of Veterinarians would
seek information on a new
product labeled for treatment
of pyrexia
Currently, there are no FDA-approved products labeled for the control
of pyrexia (fever) in horses. Instead, Veterinarians rely on “off-label”
use of traditional NSAIDs (such as phenylbutazone and flunixin).
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Zimeta New Product Opportunity
Industry adoption expected to be rapid
Source: Zimeta Pricing Research, Ipsos Ag & Animal Health, May 2016 (n=160 U.S. equine Veterinarians) .
Data on file at Kindred Biosciences.
95% believe Zimeta is a
good fit for their
practice
83% would use
Zimeta in the first
year
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Mirataz™ (mirtazapine 2% transdermal ointment)
Transdermal drug for the management of weight loss in cats
Innovative Accusorb™ transdermal technology
High unmet medical need
Currently no FDA approved product is available
90% of Veterinarians treat cats with inappetence (avg. 7 cats/week)
Source: 2012 U.S. Pet Ownership & Demographics Sourcebook American Veterinary Medical Association (n=50,000 U.S. Households)
2016 U.S. Veterinarian Mirtazapine Research, Wise Insights May 2016 (n=89 U.S. small animal Veterinarians).
Data on file at Kindred Biosciences.
9 million cats
are inappetent
3 million cats
are treated for
inappetence
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Mirataz Development Program
Positive pivotal field study completed
CMC technical section of NADA filed May 2016
Effectiveness technical section of NADA filed Aug 2016
Safety technical section of NADA filed Sep 2016
Expect approval 2H/2017 if review proceeds as expected
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Mirataz Pivotal Field Study Results
Randomized, double-blind, placebo-controlled study (N=231)
Primary endpoint was percentage change in body weight from
Day 1 to Week 2
Mean
body weight
c
h
ang
e
fro
m
D
a
y
1
to
W
ee
k
2
(%
)
n: 90
p-value: <0.0001
P-value <0.0001
4.07
0.29
Placebo
N=97
Mirataz
N=90
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Mirataz New Product Opportunity
Source:2016 U.S. Veterinarian Mirtazapine Phase 3 Research, Ipsos, September 2016 (n=201 U.S. small animal
Veterinarians). Data on file at Kindred Biosciences.
There are no FDA-approved products labeled for the control of weight
loss in cats. Mirtazapine, the active ingredient in Mirataz, is widely used
today from both human generic and compounded formulations.
7% of Veterinarians
have never heard of
mirtazapine
71% of Veterinarians
use mirtazapine
14% of Veterinarians
have heard of
mirtazapine, but never
used it
7% of Veterinarians
have used mirtazapine
in the past, but not
currently
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Mirataz New Product Opportunity
The majority of Veterinarians would replace most or all of
the mirtazapine they are using today with the transdermal
mirtazapine gel formulation.
Source:2016 U.S. Veterinarian Mirtazapine Phase 3 Research, Ipsos, September 2016 (n=201 U.S. small animal
Veterinarians). Data on file at Kindred Biosciences.
59% of Veterinarians
would replace most or
all mirtazapine currently
in use
34% of Veterinarians
would replace some of
the mirtazapine
currently in use
Only 7% of
Veterinarians would not
replace any mirtazapine
currently in use
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Mirataz New Product Opportunity
Source:2016 U.S. Veterinarian Mirtazapine Phase 3 Research, Ipsos, September 2016 (n=201 U.S. small animal
Veterinarians). Data on file at Kindred Biosciences.
49% of Veterinarians report that ease of
administering the medication and/or client medication
compliance is a primary factor in selecting a medication
for feline weight loss
74% of Veterinarians report that the difficulty of
giving medication impacts feline weight loss
treatment rates
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Mirataz New Product Opportunity
Source:2016 U.S. Veterinarian Mirtazapine Phase 3 Research, Ipsos, September 2016 (n=201 U.S. small animal
Veterinarians). Data on file at Kindred Biosciences.
Veterinarian adoption of Mirataz is expected to be rapid;
95% of Veterinarians would use Mirataz in the first year
7%
2%
47%
42%
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Biologics
Highly experienced biologics team
Extensive experience developing Lucentis®, Xolair®, Tysabri®,
Avastin®, Rituxan®, Herceptin®, Enbrel®, and multiple other
biologics
Internal caninization/felinization/equinization expertise
Promising biologics candidates
Feline erythropoietin
Checkpoint inhibitors
Interleukin antibodies
New technologies, including KIND-Bodies
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KIND-510: Feline Erythropoietin
Proprietary recombinant feline erythropoietin (epoCat™)
Strong internal expertise in erythropoietin biology and
engineering
Initial laboratory study completed - positive efficacy signal,
as evidenced by increased reticulocyte formation
Pilot field study ongoing
High unmet medical need
Over 50% of elderly cats (≥15 years) develop kidney
disease, often leading to anemia
Human erythropoietin is immunogenic in cats
Source: http://www.vet.cornell.edu/fhc/Health_Information/kidneydisease.cfm
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KIND-511: Anti-TNF for Newborn Foals
Sick newborn foals are challenging and difficult to treat
Approximately 50% mortality
Pilot field study for Anti-Tumor Necrosis Factor (Anti-TNF)
underway
Sick foals defined as sepsis score ≥ 11 or positive blood culture
Of 5 foals enrolled, all survived to day 7 (primary endpoint of
study)
References on file at Kindred Biosciences.
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Key Focus Area: Atopic Dermatitis
Atopic dermatitis is a large market
Apoquel® projected peak sales >$200M
Multiple antibody candidates
Anti-IgE antibody
Anti-IL17a antibody
Anti-IL4Ra antibody
Anti-IL31 antibody
Anti-CD20 antibody
Multi-center, pilot field study underway to assess safety and
efficacy of several molecules
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Key Focus Area: Cancer
Multiple antibody candidates
Anti-CTLA4 antibody
Anti-PD1 antibody
Anti-PDL1 antibody
Anti-CD20 antibody
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Biologics Manufacturing Plant
In-house biologics manufacturing plant nearly complete
Single-use, state of the art system
Will allow full GMP commercial production of feline epo
(epoCat™)
Will allow full GMP clinical and early commercial production
of antibodies
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Commercialization
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Commercialization
Equine Commercialization:
Launch and commercialize our U.S. products with
~10 person direct sales force
Dog/Cat Commercialization Options:
Self-Commercialization
Out-license
Partner for 3 – 5 years, and then transition to KindredBio
salesforce
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Few pet generic companies
No automatic substitution
Requires sales & marketing effort
Rimadyl reached peak sales
several years after loss of
exclusivity
Relationship-oriented industry
Low Generic Penetration
Note: Companion Animal dispensing rate within the veterinary clinic.
Source: IMS Health, Putney, BofA Merril Lynch Global Research
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Exclusivity and IP Position
Full intellectual property protection anticipated for
antibody portfolio
Use and formulation patents for small molecules
20 years of patent protection from date of filing
Regulatory Exclusivity
5 years in U.S.
10 years in E.U.
Lifecycle Management
New formulations, combinations and derivatives
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Business Development
In active discussions about acquisitions of businesses
and/or assets, particularly of equine assets
Ideal candidate:
Revenue generating/accretive
Commercial infrastructure
Complementary assets
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Financials
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Select Summary Financials
$ millions
For the quarter
ended
September 30, 2016
Operating expenses:
Research and development $3.8
General and administrative $2.0
Total cash operating expenses
(excluding stock-based compensation)
$4.8
Total operating expenses
(including stock-based compensation)
$5.8
Total cash, cash equivalents and investments
(As of September 30, 2016)
$62.5
We believe that our cash and equivalents are sufficient to fund operations until
we start generating significant revenues.
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Share Structure & 6 Month Stock History
19.9 M
Shares
Outstanding
3.6 M Options1
US$107.4 M Market Cap2
US$58.7 M
Working
Capital3
1 As of September 30, 2016; avg. $6.35
2 As of close of market October 31, 2016
3 As of September 30, 2016
Analyst Coverage
Alex Arfaei, BMO Capital Markets
Alex.Arfaei@BMO.com
Kevin DeGeeter, Ladenburg Thalmann
kdegeeter@Ladenburg.com
Ben C. Haynor, Feltl and Company
bchaynor@feltl.com
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Our Track Record
Founded the company in 2012
IPO in 2013
Assembled world-class team of human and animal health drug developers
Two drugs submitted to the FDA for approval
within 4 years since founding KindredBio
(vs. average of 15 years in human drug
development)
Developed deep pipeline of innovative
products for unmet medical needs in cats,
dogs, and horses
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Summary
Validated Drugs and
Targets
$3M-$5M to Market
Multiple Approvals
Starting within 1 year
World Class Team
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Thank You