425 1 b3667042e425.txt ANTIGENICS, INC. FOR AQUILA BIOPHARMACEUTICALS 1 Filed by Antigenics Inc. pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Aquila Biopharmaceuticals, Inc. (Registration File No. 333-46168) [The following slide show presentation was delivered by Garo Armen, Ph.D., of Antigenics Inc. on October 2, 2000 at the UBS Warburg Global Life Sciences Conference at the Pierre Hotel, New York, New York.] SLIDE: [Logo.] Antigenics SLIDE: Sources of Important Information This material is not a substitute for the prospectus/proxy statement Antigenics and Aquila Biopharmaceuticals, Inc. have filed with the Securities and Exchange Commission. Investors are urged to read that document because it contains important information. The proxy statement/prospectus and other documents filed by Antigenics and Aquila with the SEC are available free of charge at the SEC's website (www.sec.gov) and from Antigenics or Aquila. SLIDE: Forward Looking Statements The presentation contains forward-looking statements. These include statements about, the future financial position of Antigenics and Aquila, their ability to generate positive cash flows, the potential commercial success of programs in development, and the consummation of the merger. Several risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. These factors include the ability to satisfy regulatory requirements, the outcome of clinical trials, the ability to convince the medical community to adopt products, competition from pharmaceutical and biotechnology companies, difficulties and costs associated with integration of the businesses, the strength of intellectual property rights, and the risk factors included in the Antigenics and Aquila SEC filings, including in Antigenics' Registration Statement on Form S-4 filed on September 20, 2000, and any amendments thereto, under the heading "Risk Factors." We encourage you to carefully review these risk factors. ANTIGENICS [LOGO] 2 SLIDE: ANTIGENICS' STRATEGIC ADVANTAGE - Superior technology for treatment of major diseases - Lead product in phase III clinical development - Science extensively published and independently validated - Financially strong - Blockbuster commercial potential ANTIGENICS [LOGO] SLIDE: WHAT WE DO Cancer Vaccines: In Clinical Trials --- lymph node --- stomach --- kidney [GRAPHIC OF HUMAN BODY WITH ARROWS --- pancreas POINTING AT LISTED ORGANS OMITTED] --- colon --- skin --- sarcoma ANTIGENICS [LOGO] 3 SLIDE: ONCOPHAGE CLINICAL TRIAL PROGRAM CANCER PHASE INSTITUTION PATIENTS Renal Cell III Multi-center trial 500+ Carcinoma II M D Anderson 60 I/II M D Anderson 38 Melanoma II Istituto dei Tumori 40 I/II M D Anderson 36 Colorectal II Istituto dei Tumori 30 Non-Hodgkin's II M D Anderson 35 Lymphoma Gastric I/II Johannes-Gutenberg 30 Pancreatic I Memorial Sloan-Kettering 5 Sarcoma II Memorial Sloan-Kettering 35 SLIDE: WHAT WE DO Drugs for Infectious Diseases BACTERIA (e.g. Tuberculosis) [GRAPHIC OF BACTERIA IMAGE OMITTED] PARASITE (e.g. Malaria) [GRAPHIC OF PARASITE IMAGE OMITTED] [GRAPHIC OF HUMAN BODY OMITTED] VIRUS (e.g. Herpes) [GRAPHIC OF VIRUS IMAGE OMITTED] ANTIGENICS [LOGO] 4 SLIDE: THE IMMUNE SYSTEM: The Natural Guardian Against Disease - Distinguishes healthy from diseased cells [GRAPHIC OF OUTLINE OF - Result is reduced toxicity HUMAN BODY OMITTED] - Immunological memory ANTIGENICS [LOGO] SLIDE: NEED FOR DRUGS WHICH ACTIVATE CELLULAR IMMUNITY - Cancer - Herpes [GRAPHIC OF HUMAN BODY - HIV WITH SPHERICAL IMAGES IN VARIOUS LOCATIONS - Tuberculosis OMITTED] - Malaria ANTIGENICS [LOGO] 5 SLIDE: HEAT SHOCK PROTEINS - Natural molecules that exist in all cells [GRAPHIC OF HEAT SHOCK - Natural role in generation PROTEIN OMITTED] of immune response [GRAPHIC OF HUMAN BODY [GRAPHIC OF HEAT SHOCK - Bind proteins and WITH ARROWS POINTING PROTEIN OMITTED] peptides TO DIFFERENT PARTS OMITTED] - Comprise cell's antigenic [GRAPHIC OF HEAT SHOCK repertoire or "fingerprint" PROTEIN OMITTED] - Act as natural adjuvants ANTIGENICS [LOGO] SLIDE: HOW HSPs WORK Normal Cell [GRAPHIC OF NORMAL CELL OMITTED] Diseased Cell [GRAPHIC OF DISEASED CELL OMITTED] - Heat shock proteins bind the entire antigenic repertoire ANTIGENICS [LOGO] 6 SLIDE: HOW HSPs WORK [GRAPHIC OF HEAT SHOCK PROTEIN AND TUBULAR SHAPED OBJECT OMITTED] - Purification of HSP antigen complexes from diseased cells [ANTIGENICS LOGO] SLIDE: HOW HSPs WORK [GRAPHIC OF HEAT SHOCK PROTEIN WITH SUBSTANCE ENTERING TUBULAR SHAPED OBJECT OMITTED] - Purification of HSP antigen complexes from diseased cells [ANTIGENICS LOGO] 7 SLIDE: HOW HSPs WORK [GRAPHIC OF HUMAN BODY WITH SYRINGE POINTED AT ARM OMITTED] - Injection of purified HSP-peptide complexes [ANTIGENICS LOGO] SLIDE: HOW HSPs WORK HSP RECEPTOR INTERACTION [DENDRITIC CELL GRAPHIC OMITTED] [ANTIGENICS LOGO] 8 SLIDE: HOW HSPs WORK HSP RECEPTOR INTERACTION [DENDRITIC CELL GRAPHIC OMITTED] [ANTIGENICS LOGO] SLIDE: HOW HSPs WORK [GRAPHIC OF HUMAN BODY WITH SPHERICAL IMAGES GROUPED IN VARIOUS LOCATIONS OMITTED] [ANTIGENICS LOGO] 9 SLIDE: HOW HSPs WORK [GRAPHIC OF HUMAN BODY WITH SPHERICAL IMAGES GROUPED IN VARIOUS LOCATIONS] [ANTIGENICS LOGO] SLIDE: EMERGENCE OF INDIVIDUALIZED MEDICINE [UPPER RIGHT ARROW GRAPHIC OMITTED] [LOWER RIGHT ARROW GRAPHIC OMITTED] Diseases are more diverse (individualized) than historically believed Discoveries in: Requirement for Immunology individualized Molecular Biology treatment Genomics 10 SLIDE: EMERGENCE OF INDIVIDUALIZED MEDICINE ANTIGENICS IS LEADING THE DEVELOPMENT OF PERSONALIZED MEDICINES Discoveries in: Requirement for Immunology individualized Molecular Biology treatment Genomics SLIDE: PRECLINICAL STUDIES SURVIVAL CURVES Micrometastatic Disease Bulky Disease Percentage Survival 100 80 60 [LINE GRAPH OMITTED] [LINE GRAPH OMITTED] 40 20 N=40 N=10 0 25 50 75 100 125 150 175 200 225 0 20 40 60 Days After Surgery Days After Tumor Challenge - Oncophage - Placebo ANTIGENICS LOGO 11 SLIDE: CLINICAL STUDIES: METASTATIC MELANOMA SURVIVAL CURVES ADJUVANT PATIENTS RESIDUAL DISEASE PATIENTS Percentage of Patients 100 Oncophage 80 Oncophage 60 [LINE GRAPH OMITTED] [LINE GRAPH OMITTED] 40 20 N=20 N=16 0 0 6 12 18 24 0 6 12 18 24 Overall Survival Overall Survival (months) (months) New cases in 1999: 44,200 Deaths: 7000 ANTIGENICS [LOGO] SLIDE: CLINICAL STUDIES: RENAL CELL CARCINOMA ANTIGENICS TRIAL GLEAVE ET AL NEJM 1998 Percentage of Patients 100 80 [LINE GRAPH OMITTED] [LINE GRAPH OMITTED] 60 40 Oncophage Placebo 20 N=34 N=90 0 5 10 15 20 0 5 10 15 20 Time to Progression Time to Progression (months) (months) ANTIGENICS [LOGO] 12 SLIDE: CLINICAL STUDIES: PANCREATIC AND GASTRIC CANCERS Pancreatic Cancer Gastric Cancer Treated: N=5 Treated: N=10 Alive: N=3 (>2 years) Alive: N=5 Expired: N=2 Expired: N=5 New cases 1999: 28,600 New cases 1999: 21,900 Deaths 1999: 28,600 Deaths 1999: 13,500 ANTIGENICS [LOGO] SLIDE: STATUS OF ANTIGENICS' PERSONALIZED MEDICINE - Logistically feasible - Cost competitive - Easy to administer ANTIGENICS [LOGO] 13 SLIDE: ANTIGEN DELIVERY WITH HSPS Gene-encoded antigens Heat Shock Proteins [GRAPHIC OF ANTIGENS OMITTED] [GRAPHIC OF HEAT SHOCK PROTEINS OMITTED] [DOWN ARROW OMITTED] [DOWN ARROW OMITTED] Therapeutic Vaccine [GRAPHIC OF THERAPEUTIC VACCINE OMITTED] ANTIGENICS [LOGO] SLIDE: PRODUCT PIPELINE
CLINICAL PRODUCT INDICATION RESEARCH PRECLINICAL PHASE I/II PHASE II PHASE III --------------------------------------------------------------------------------------------------- CANCER Oncophage(R) Renal Cell Carcinoma ------------------------------------------------------------ > Melanoma ------------------------------------------------------------- > Colorectal Cancer ----------------------------------------------------- > Gastric Cancer------------------------------------------------- > Pancreatic Cancer ------------------------------------------------- > NHL -------------------------------------------------------------------- > Sarcoma ---------------------------------------------------------------- > HSPPC-70-C Various Cancers--------------------- > HSPPC-90-C Various Cancers -------------------- > HSPPC-56-C Various Cancers -------------------- > Target Market: > $15 billion INFECTIOUS DISEASES in annual HSPPC-96-GH Genital Herpes -------------------------------- > revenue US HSPPC-70-GH Genital Herpes ------------------------------- > products HSPPC-56-I Various Infect. Dis. -------------- > HSPPC-70-I Various Infect. Dis. -------------- > AUTOIMMUNE DISORDERS gp96 Type 1 Diabetes ------------------- > Multiple Sclerosis ---------------- >
ANTIGENICS [LOGO] 14 SLIDE: LEADING PATENT ESTATE Antigenics' issued US patents cover use of HSPs in treatment of cancer, infectious diseases and autoimmune disorders - In US, 13 issued, 7 allowed & over 40 pending patents - Patents and applications cover: - Composition of matter - Medical use - Treatment protocol - Methods of manufacturing ANTIGENICS [LOGO] SLIDE: OUR KEY PEOPLE - Successful companies (Elan Corporation, Alza Corporation, Immunex, PerSeptive Biosystems, Warner Lambert, Genzyme, Boerhinger Mannheim) - Global financial institutions (Deutsche Bank, Barclays Bank) - Centers of cutting edge research (University of Connecticut, Rockefeller University, Imperial Cancer Research Fund, Max Planck Institute, Memorial Sloan-Kettering Cancer Center) - Nobel Laureate (Physiology or Medicine) ANTIGENICS [LOGO] 15 SLIDE: TERMS OF AQUILA ACQUISITION - Stock-for-stock, tax-free transaction - Aquila's shareholders receiving .2898 Antigenics' shares - 2.5 million Antigenics shares issued (- 9%) - $40 million equity value - Transaction expected to close Nov 2000 - Transaction will be neutral to Antigenics' earnings in 2001 and 02 and accretive in '03 and '04 SLIDE: WHAT WE ARE ACQUIRING - One marketed product - 11 products in clinical trials - Two technology platforms - QS-21 adjuvant - CD1 antigen discovery - 6 partnerships with leading pharmaceutical companies - $5 million expected revenue in 2000 - 40 professionals - Manufacturing capacity 16 SLIDE: BENEFIT OF ACQUISITION - Additional tools for vaccine development - QS-21 activates antibody response (also enhances CTL response) - HSP activates CTL response - Combination can better target infectious diseases - Expands Antigenics' product pipeline - Aquila's trials primarily in infectious and neurodegenerative diseases - Antigenics' trials in cancer - Combination better positions Antigenics as leader in immunotherapy - Aquila's existing corporate partnerships complement Antigenics direct marketing strategy SLIDE: ANTIGENICS' STRATEGIC ADVANTAGE - Superior technology for treatment of major diseases - Lead product in phase III clinical development - Science extensively published and independently validated - Financially strong - Blockbuster commercial potential [LOGO] ANTIGENICS 17 SLIDE: [LOGO] wwww.antigenics.com