VBIO

**** Disseminated on Behalf of Valion Bio Inc

A late-stage, highly de-risked TLR5 platform with a non-dilutive government funding pathway, a vertically integrated manufacturing subsidiary, and multiple near-term value-inflecting catalysts

Late-Stage Biopharmaceutical Company with Government-Backed Asset and Potential Multiple Revenue Stream Model

Read the Investor Presentation HERE

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Hello Everyone,

There's a biotech company betting that medicine has been looking in the wrong place. For decades, drug developers have poured resources into the adaptive immune system — antibodies, T-cell therapies, checkpoint inhibitors — while largely ignoring the body's original defense mechanism: innate immunity, the system that senses danger within minutes and mobilizes before anything else kicks in.

Valion Bio thinks that gap is the opportunity.

The company's entire pipeline runs through a single molecule, Entolimod, a Toll-like Receptor 5 agonist now in clinical development. Rather than chasing dozens of programs, Valion is going deep on one well-understood mechanism and testing it everywhere the biology suggests it could matter — from Acute Radiation Syndrome to oncology supportive care to early immuno-oncology work.

What sets Valion apart isn't just the science, though. It's the infrastructure around it. Through Velocity Bioworks, a wholly owned manufacturing subsidiary in San Antonio, the company controls its own domestic supply chain and generates commercial revenue independent of its clinical pipeline — a level of self-sufficiency most clinical-stage biotechs simply don't have. And its closest partners aren't typical biotech collaborators: BARDA, NIAID, DTRA, the Department of War, and major oncology centers, the institutions actually on the front lines of the problems Valion is trying to solve.

Entolimod is the world's most advanced TLR5 agonist — for acute radiation syndrome under the FDA Animal Rule pathway, oncology supportive care, and immuno-oncology. The company acquired a $140M+ de-risked asset including an active IND, FDA Fast Track, and Orphan Drug designation. Its wholly owned CDMO subsidiary, Velocity Bioworks, provides domestic biomanufacturing and a path to non-dilutive revenue.

A TLR5 agonist in clinical development — where innate immunity matters most

Mechanism

Entolimod is a Toll-like Receptor 5 (TLR5) agonist. TLR5 is a pattern-recognition receptor on the surface of immune and epithelial cells that, when activated, triggers NF-kB signaling — a central pathway in the body’s innate immune response.

Activation of this pathway has been shown in nonclinical models to influence multiple biological processes associated with the response to radiation exposure, including modulation of cell survival pathways, support of progenitor cell recovery in affected tissues, and effects on immune cell activity, including NK and T cells.

Entolimod is being investigated across multiple indications where activation of this pathway may support cellular and tissue responses. Each indication will require its own clinical development program and regulatory submissions.

Lead indication: Acute Radiation Syndrome

High-dose radiation exposure — whether from a nuclear incident, a radiological weapon, or an accident at an industrial or medical facility — causes Acute Radiation Syndrome (ARS): a cascade of bone marrow failure, gastrointestinal complications, and epithelial damage.

Entolimod is being developed as a medical countermeasure for ARS under the FDA’s Animal Rule — a regulatory framework designed for treatments where human efficacy trials are not ethical or feasible. The program has received Fast Track and Orphan Drug designations from the FDA. The development program includes nonclinical efficacy studies, clinical safety data, and translational work to support dose selection, and continues to advance toward potential regulatory submission.

In a post-hoc pooled analysis of the RS-23 animal study conducted under the FDA Animal Rule, Entolimod was associated with an odds ratio of 7.9. A 25-hour post-exposure treatment window has been observed in nonclinical models. Note: RS-23 was not accepted by FDA as a pivotal study.

Expanded Indications

Neutropenia is a life-threatening drop in white blood cells that affects a significant proportion of patients undergoing chemotherapy or radiation therapy. Currently approved agents include G-CSF products such as Neupogen and Neulasta, which address multiple clinical contexts including chemotherapy-induced neutropenia, stem cell mobilization, severe chronic neutropenia, and mitigation of damage from ARS.

Entolimod is being investigated for its potential to activate innate immune pathways and support tissue responses to injury. In nonclinical models, this activity has been associated with effects in both hematopoietic and gastrointestinal tissues. The program is in early-stage development for oncology supportive care. The global market for oncology supportive-care therapies is estimated at more than $22 billion.

Lymphocyte exhaustion

Chronic infections and cancers can drive T-cells and other lymphocytes into a state of functional exhaustion — reduced cytokine production, reduced proliferative capacity, and loss of effector function. Entolimod’s ability to activate innate immune signaling offers a mechanistic rationale for restoring immune function in these states.

Immune function in older adults

As people age, immune responses may become less robust and less predictable, which can contribute to increased vulnerability to infection and reduced vaccine responsiveness. Entolimod has been evaluated in a Phase 2 study at Mayo Clinic in healthy older adults receiving influenza vaccination. These data support continued exploratory research into the potential effects of TLR5 activation on age-related immune function.

Chronic Radiation Syndrome

Chronic Radiation Syndrome results from prolonged, lower-dose radiation exposure — a clinical condition distinct from ARS and without effective treatment. Entolasta, a second-generation follow-on to Entolimod, is being advanced through IND-enabling studies for chronic indications including Chronic Radiation Syndrome.

Domestic biomanufacturing. Vertically integrated. Operating in alignment with applicable regulatory requirements

Velocity Bioworks is Valion Bio’s wholly owned contract development and manufacturing organization (CDMO) — a U.S.-based biomanufacturing facility that supports Valion Bio’s own supply chain and generates independent commercial revenue serving outside clinical-stage biotech clients.

Why it Matters

Most clinical-stage biotech companies depend on third-party manufacturers — a structural consideration in timelines, costs, and supply chain resilience. Velocity Bioworks supports Valion Bio’s own pipeline and operates as a revenue-generating strategic asset.

For federally funded biodefense programs and engagement with federal biodefense agencies, domestic biomanufacturing operating in alignment with applicable regulatory requirements is an important capability. Velocity was built with that standard in mind.

What Velocity Does

Velocity Bioworks operates from San Antonio, Texas, and provides end-to-end support for clinical-stage biologics development and manufacturing, including:

cGMP drug substance and cell bank manufacturing.
Upstream and downstream process development and optimization.
Analytical testing, assay development, and qualification.
Quality control and stability testing.
Microbial expression systems.
Technology transfer and program management.
Regulatory compliance support.

Built for speed to clinic

Velocity is structured around a single operating principle: translate defined program goals into scalable manufacturing processes and robust analytical strategies without compromising quality or timeline. The team designs programs to support near-term clinical milestones while meeting every applicable quality and regulatory requirement.

Two assets. Multiple indications. One mechanism.

Entolimod and its second-generation follow-on, Entolasta, together form a pipeline of innate immune modulating therapies being investigated across biodefense, oncology supportive care, and immuno-oncology. More than $140 million has been invested across the platform to date.

TLR5 platform: one receptor, multiple disease states

Targeted activation of the TLR5 receptor drives a coordinated biological response across multiple tissue systems — enabling one mechanism to address multiple clinical indications:

Hematopoiesis — bone marrow recovery (neutrophils, platelets).
GI protection — intestinal integrity after radiation injury or chemotherapy.
NK / T-cell activation — anti-tumor immunity and immuno-oncology combination potential.
Anti-apoptotic signaling — cell survival in bone marrow and GI tissues.
Endothelial repair — vascular integrity after radiation exposure.
Immune modulation — reversing immunosenescence (Mayo Clinic Phase II).

Development milestones

Anticipated development milestones across the next 18 to 24 months include:

Initiation of Neutropenia clinical studies (timing subject to IND readiness)
Entolasta IND-enabling studies
Entolasta drug substance availability (targeted end of 2026)
GMP Entolimod for bioequivalence study (targeted 1Q2027)
Entolasta pre-IND meeting (targeted 1Q2027)
GMP manufacturing validation activities (targeted 2027)

Milestone timing is subject to clinical, regulatory, and operational factors and may change. Entolasta is expected to be treated by FDA as a new molecular entity and will require its own clinical development program and regulatory submissions.

Market context

The TLR5 platform is being investigated across therapeutic areas with significant market potential, including Acute Radiation Syndrome (estimated $5.5B, 5.2% CAGR), Neutropenia and oncology supportive care (estimated $22.3B, 4.8% CAGR), and Immuno-Oncology solid tumors (estimated $120B, 16.3% CAGR). Market estimates are based on industry sources and do not reflect Valion Bio revenue projections.