G. Steven Burrill Chief Executive Officer Burrill & Company

1. Biotech 2008: A Global Transformation G. Steven Burrill Chief Executive Officer Burrill & Company Wisconsin Life Sciences Transformation: World Perspectives & Wisconsin’s Advantage Madison, WI, February 21, 2008 Last Updated: November 4, 2014

2. Exclusive focus on Life Sciences Human Healthcare (Rx and Dx) Nutraceuticals/Wellness Agbio Industrial Biofuels/ Bioenergy Enabling Technologies Burrill & Company

3. Burrill & Company – exclusively focused on life sciences Private Equity / Venture Capital Group • Investing across the entire spectrum of the life sciences/biotechnology ≈ $950 million under management Merchant Banking (Burrill LLC) • Strategic Partnering including licensing, research and other collaborations • Strategic Advisory Services including new company formation • Merger & Acquisitions across life sciences • Spin-outs ranging from products, to research divisions to disease area franchises Media • Publications (biotech book, newsletters, special purpose publications [stem cells, personalized medicine, aging etc.], The Journal of Life Sciences, web-based intelligence reports) • Conferences Headcount: 60+ professionals and staff

4. China Japan India United Kingdom Malaysia UAE United States Shanghai Tokyo Mumbai London Kuala Lumpur Dubai San Francisco (HQ) New York Indianapolis Portland Burrill & Company U.S. & International Locations

5. Burrill Life Sciences Capital Fund III (2006) $283 Burrill Life Sciences Capital Fund II (2003)(1) $211 Burrill Life Sciences Capital Fund I(1) Burrill Biotechnology Capital Fund (1999)(1)$140 Burrill Agbio I + Annex & Agbio II Capital Funds (1998(1)/2001)(1) $ 82 Burrill Nutraceuticals Capital Fund (2000)(1)$ 61 $283 Malaysian Life Sciences Capital Fund (a JV Fund) $150 Burrill AgBio II Annex* (a side-car fund to the MLSCF) $ 20 Total Funds Under Management at 12/31/07 $947 Burrill Funds Under Management -($ millions) • Fully invested, including reserves/commitments for subsequent financings in existing portfolio companies

6. Strategic Investors in Burrill & Company Funds

7. Transactions Across Life Sciences for Public and Private Clients • Sell-side • Buy-Side • Divestitures • Reverse mergers Private Placements • PIPE financing • Late-stage venture financing • M&A financing M&A Transactions Financing Representing Biotech and Big Pharma • Out-licensing, profit shares, options, and regional deals, etc. • Preclinical through marketed products Strategic Partnering Create a New Company or Merge into an Established Entity • Newco financings for pharma and biotech Spin-Outs Burrill Merchant Banking Services (Burrill LLC) Potential Scope of Burrill LLC Client Relationship

8. Burrill Created/Hosted Industry Events For inquires, contact Britt Fenton-Olsen at (415) 591-5475 or bfenton-olsen@b-c.com

9. G. Steven Burrill’s Annual Book Our 22nd annual book will be out February 2008 To order most recent book or complete sets, visit: www.burrillandco.com

10. The Burrill & Company’s Special Reports: The Burrill Personalized Medicine Biointelligence Report The Burrill Stem Cell Biointelligence Report The Burrill Aging Biointelligence Report The Burrill China Biointelligence Report The Burrill India Biointelligence Report The Burrill Media’s quarterly/monthly bio-intelligence report: The Burrill Canadian biotech News Monthly M&A/Partnering Stem Cells Personalized Medicine Burrill Biointelligence Group Reports

11. The Journal of Life Sciences Mr. William Patrick Editor in Chief A six-times per year publication. For information, see our website www.burrillandco.com and www.tjols.com

12. The Journal of Life Sciences on the web Weekly Brief and Weekly Brief, California Edition To request the free weekly e-mail editions: weeklybrief@tjols.com

13. Themes in ’88 book …Into The Marketplace • Science being converted to business • Products coming to market place • Are product liability, regulatory reform, patent court behavior insurmountable barriers? • Partner or vertically integrate? • Acquisitions by pharma desirable? • How will the industry evolve?

14. Biotech is Transforming the Globe …and being transformed by it

15. Transformation • Webster: trans·for·ma·tionPronunciation: "tran(t)s-f&r-'mA-sh&n”, -Function: noun • The act or process of transforming somebody or something • Webster: trans.form • 1a: To change in composition or structure

16. A Global Transformation… …From To… Chemistry Biochemistry On Size fits all drugs Personalized medicine Aging (just happens) Aging is optional / controllable Therapeutics/diagnostics/devices “Theranostics” Treating sickness Preventing Sickness Food for survival Food for health

17. A Global Transformation… …From To… Fossil fuels Alternative fuels (biomass conversion) Unavailable local capital Global arbitrage Fully integrated business model (FIPCO) Virtually Integrated business model (VIPCO) Local companies Global companies US centric biotech industry Global industry Changing the healthcare environment Transforming the world

18. Life Sciences – Biotech: A Short History … • Circa 1953 – Watson and Crick • Circa 1973 – Inception of biotech • ALZA (`68) Cetus (`71) Amgen (`80), • Genentech (`76 ) Biogen (`78), • Centocor (`79) Hybritech (`78) • Circa 1993 - Meaningful biotech revenue • Circa 2008 – Transforming the world

19. Era of Unprecedented Advances in Medical Research • Understand the pieces • Hardware of Life (20th Century) genes/proteins • Software of Life (21st Century) – systems/network • “Biomarkers ‘r us” (Note: “genes ‘r us” biz model failed) • Cost per bit of biological info rapidly decreasing (Moore’s law) The consequences are staggering …

20. Moore’s law – Cost Per Base

21. Challenges/Opportunities in Improvement of Care And we see its implications: • Evidence based medicine • Advances in health information (Web MD) • Personalized, predictive, preventative medicine - (3 P’s) • Electronic Health Records (EHR) BUT … • Delivery system so flawed can’t bring healthcare “advances” to market place • Government increasingly the payor (Medicare/other government healthcare systems)

22. Also Era of Macro Issues • Climate change • Energy needs/alternative fuels • Poverty • Security/terrorism • Philosophical - ideological conflict (religious conflict)

23. ……yet we are the envy of the world • FDA • NIH • CDC • DOD/DARPA/SARPA • USDA • DOE – Energy Alternatives

24. Total US Spend for Biotech/Pharma Research • NIH $29B • Pharma $43B • Biotech $30+B TOTAL $100+B

25. Current Healthcare System in “Silos” • Insurers • Employers (Providing $) • Providers/ Managed Care • Doctors/Nurses/Hospitals • Suppliers • Pharma Companies • Diagnostic Companies • Medical Device Companies • Medical Innovators

26. Integration Is Essential BUT Where Is It Happening? • Kaiser Permanente (California) • Intermountain Health (Utah) • Analogy (Clayton Christiansen/ Harvard) • Color TVs invented by RCA but no sales since nobody would broadcast in color • RCA then bought NBC, then integration happened …Therefore integration within the healthcare system is essential if benefits of new technologies are to be realized

27. HHS Secretary Michael Leavitt “Combining gene based medical care with health information technology could transform healthcare…” “Personalized healthcare will combine basic scientific breakthrough of the human genome with computer-age ability to exchange and memorize data”

28. Not only integration, but a greater need for international collaboration • Pandemic diseases • Regulatory harmonization • Approvals • Patents • Drug/ Food Safety • Diseases know no borders • It’s a global economy

29. Entering a Period of Co-opetition (Cooperation/ Competition) • Strategic Partnering • Co-development • Co-branding • Co-promotion • Co-marketing • Country to country • Public/private • Big/small • Within industry/outside industry (IT/biotech)

30. Life Science Investment Thesis “To create and capture value across the spectrum of the life-sciences industries” HEAL THE WORLD FEED THE WORLD K Agriculture Human Health Care Diagnostics Traits Tools Therapeutics Services “Sustain & Nourish the world” Wellness Enhancers Food ingredients Seeds Medical devices Bio Processing Bio Fuels Biomaterials Building sustainable businesses Addressing major market needs Biopharmaceuticals FUEL THE WORLD

31. So let’s look at where we are and what happened during the last year...

32. Key Industry Stats – Biotech 2008

33. Pharma vs. Biotech Industry Market Cap ($B) Company 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 Pfizer 155 187 172 199 280 192 251 290 Johnson & Johnson 191 180 186 184 154 112 181 146 Merck 127 82 69 69 103 165 133 216 Eli Lilly 60 62 65 65 77 50 88 105 Bristol-Myers Squibb 53 50 46 47 58 65 112 145 Pfizer/Merck 282 269 241 268 383 357 384 506 Total US Biotech 455 496 491 399 342 213 366 425 Industry 1.6x 1.8x 2.0x 1.5x 0.9x 0.6x 1.0x 0.8x

34. Top ten Biotech Companies by Market Cap

35. Historical Biotech Market Cap 1997–2006

36. ….And these small Life Science companies are becoming increasingly important as a source of value creation and innovation in the healthcare sector Top Five US Pharma* vs. Total Biotech Market Cap Market Value of selected Big Pharma acquisitions of public Biotechs (2005-2007) Source: Capital IQ, Windhover, Burrill Analysis

37. So, what really happened during the last year ? • Stem cells politically hot and the science is delivering • Technology/platform companies rebounded • BioFuels are BOOMING… • Industrial biotech is finally happening • Ag/animal health show progress • acreage is up • but “organics” and “natural’ are hot

38. So, what really happened during the last year ? • Increased interest in “wellness” not just sickness • Personalized medicine makes real progress • Regulatory concerns: • IVD/MIA “approvals” • FDA Critical Path • Theranostics • Biogenerics/biosimiliars/follow-on biologics • Big pharma buys into the biotech pipeline

39. So, what really happened during the last year ? • Reimbursement dynamics continue to dominate, especially in the US • India/China make real progress (Malaysia, Korea, others do too) • Industry raises $45b in capital in US alone • The last year has been a good year, not a great one … My projections for 2008 will followat the end

40. Transformation: Sickness to Wellness

41. Healthcare Industry Dilemma… • Rising Healthcare Costs • Loss of Patent Protection for Blockbuster Drugs • Need for Innovation; build vs. buy • Reimbursement/Payment system changes – Medicare Part D • Compulsory Licensing

42. Healthcare Costs Have Been Rising -For a Long Time

43. Prescription Drug Costs as Percentage of Healthcare

44. Estimate of Overall US Healthcare Spending on Prescription Drugs (by general public)

45. Worldwide Global Pharmaceutical Sales –

46. Supplements Functional Foods Natural Foods Personal Care …by the way, the Global Nutraceuticals Industry is $228 Billion in 2006 (millions) Source: Nutrition Business Journal May/June 2007

47. Today’s Medicine Challenge: One Size Doesn’t Fit All

48. Pharmacogenomics Shapes the Healthcare Business in 2000+

49. 1st generation 2nd generation 3rd generation genomics / proteomics cell pharmacology/ molecular biology drugs against natural products targets identified genetic engineering and derivatives from disease genes receptors chronic degenerative serendipity disease associated enzyme with ageing, Biotech drugs inflammation, cancer New Therapeutic Cycles lowerers lipid ACE-inhibitors H2-antagonists beta blockers NSAIDS psychotropics penicillins sulphonamides aspirin 1900 1950 1960 1980 1990 2000 2010 2020 2030 2040 1970 140 Years of Drug Discovery Technology Source: CMS, Lehman Brothers research

50. Confluence of Technology, Tools, and Knowledge