bionest partners capabilities summer 2009

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Strategic Advice and Beyond

Summer 2009

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A unique A unique blend of management consulting and financial advisory servicesblend of management consulting and financial advisory services

"We combine strategic thinking with extensive real world experience to provide operational solutions which will help you to achieve your business goals"

Bionest Partners Leadership Team

� Corporate development

� Product strategy/portfolio management

� Commercialization strategy

� Implementation support

� Mergers and acquisitions

� In- and out-licensing

� Pipeline and company valuation

� Private placement

Management Consulting Financial Advisory Services

Bionest is exclusively dedicated to life sciencesBionest is exclusively dedicated to life sciences

Over 250 clients

� Extensive network

� Industry experts & executives

� Regulatory experts & healthcare officials

� Key Opinion Leaders

PHARMA

BIOTECHS

INVESTORS

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�Global reach

� Europe (Paris) and USA (New York)

� 35 experienced consultants

� Combining healthcare, strategy and

banking backgrounds

Life sciences only

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Capabilities and track record built around six areas of expertisCapabilities and track record built around six areas of expertisee

Medical Devices

Rx/Generics/Biosimilars/OTC

Diagnostics

Healthcare Services

Animal Health

Vaccines

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Bionest bridges the gap between strategy and finance Bionest bridges the gap between strategy and finance

� Roll-out plans / Key Performance Indicators (KPI)

� Commercial organization effectiveness

� Initiation of operations

Implementation Support

Commercialization Strategy

� Market Access

� “Go-it-Alone” versus partnering

strategy evaluation

� Blueprint for organizational

structure

Product Strategy

� Competitive positioning

� Clinical development strategy

� Market assessment & sales forecast

� Product strategic plans

� Portfolio management

M&A/Licensing

� Acquisition advisory

� Divestment advisory

� Target identification

� Assistance in negotiations

Valuation/Placement

� Value drivers identification

� Business plan

� Financial analysis

� Fund raising

� Strategic scenarios review

� Opportunity assessment

� Resource allocation

� Spin off/carve out support

� Strategic due diligence

Corporate Development


P 7

P10

P 12

P 14

P 17

P 19

� Roll-out plans / Key Performance Indicators (KPI)

� Commercial organization effectiveness




� Market Access


strategy evaluation


structure

Product Strategy



� Market assessment & sales forecast



M&A/Licensing





M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising

Valuation/Placement


� Business plan


� Fund raising














P 7

P 10

P 12

P 14

P 17

P 19

Case Studies1

Management Consulting Case Management Consulting Case StudiesStudies

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� Roll -out plans / Key Performance

Indicators (KPI)

� Commercial organization

effectiveness




� Market Access

� “Go-it-Alone ” versus partnering

strategy evaluation


structure

Product Strategy



� Market assessment & sales

forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising








� Roll -out plans / Key Performance

Indicators (KPI)


effectiveness




� Market Access

� “Go-it-Alone ” versus partnering

strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising

Valuation/Placement


� Business plan


� Fund raising














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Product Strategy / Portfolio Management (1/2)Product Strategy / Portfolio Management (1/2)

We helped We helped SavientSavient toto

size up the value of the size up the value of the

European market European market

opportunity and position opportunity and position

PuricasePuricase ®®

Bionest impact

� Savient is a US specialty biopharma

� Bionest provided all inputs required to build a preliminary model

of a stand alone European commercialization strategy for Phase

III Puricase®

� Key work streams included the gout market, competitive

landscape, physicians’ feedback, sales forecasts…

� Bionest accompanied Savient on the investor road show

Market assessment

June 2007

Attitude Awareness

and Use study

Sales forecast model

Developed an IV product

for gout treatment a

market without innovation

for 40 years

Assignment overview

� Javelin is a US company that applies innovative proprietary

technologies to develop new drugs and improve formulations

of existing drugs

� Bionest evaluated the best target price for the product to

enable ideal positioning in Europe by analyzing:

� Payors’ value drivers

� Optimal and effective price in the G5

� Market size and market share

� Pan-European pricing strategy

Other clients

Market assessment Assignment overview

Bionest carried out a detailed Bionest carried out a detailed

pricing study which confirmed pricing study which confirmed

that the new IV that the new IV diclofenacdiclofenac

formulation could command a formulation could command a

much higher price against much higher price against

generic competitiongeneric competition

Bionest impact

August 2006

Developed an innovative

IV diclofenac for a post

operative pain product

Attitude Awareness and

Use Study

Pricing&Reimbursement

study

July 2008

US big pharma

Clinical and commercial

strategy assessment

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Product Strategy / Portfolio Management (2/2) Product Strategy / Portfolio Management (2/2)

We enabled Bayer Schering Pharma to develop the best

global strategy for its oncology franchise over the

next 5 years

Bionest impact Product strategic plans Assignment overview

� Large US pharmaceutical with significant pipeline but lack of

experience in oncology

� For each compound, Bionest:

� Developed full scenario-based forecasts taking into

account market dynamics, trials data and competitive

landscape

� Recommended optimal commercialization strategies

for targeted patient segmentation, unmet needs, most

favorable NPV and strategic fit within the organization

Clinical development strategy

Assignment overview

Bionest helped to maximize Bionest helped to maximize

value creation through an value creation through an

accurate rankingaccurate ranking

of portfolio products of portfolio products

Bionest impact

2007 - 2008

Strategy, operations

and organization

Oncology franchise

strategic plan

- 10 cancer indications

- 8 products

Other clients

� 8 Product strategic plans for

� Fully documented situation assessments

� Resulting key event grids, product SWOT analyses and

formulation of key challenges

� Product strategy encompassing scenario planning,

contingency plan, product ambition, One Page Strategy,

product positioning, targeting strategy & investment

priorities

� Product action plans including “quick wins” and

resulting P&Ls

� Resource allocation exercise

� Development of Oncology franchise strategy, including

organizational effectiveness

Management Consulting Case Studies

� Roll-out plans / Key Performance

Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising









Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising








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Commercialization StrategyCommercialization Strategy

Bionest constructed an initial organizational structure for the product

launch in Europe

Bionest impact Go-it-alone strategy Assignment overview

Operational roadmap Assignment overview

Bionest developedthe ex US worldwide launch strategy for the Flumist

vaccine, for Medimmune and Astra Zeneca

Bionest impact

October 2007

Flu vaccine

Ex-US

commercialization

strategy

March 2007

Testing a go-it-alone

strategy

Go it alone strategy

evaluation for the launch

of oritavancin in Europe

� Targanta, acquired by The Medicine Company in January 2009, is

a US biopharmaceutical company

� Bionest provided Targanta with:

� Strong data for the board to make a go/no go decision

� The first model of their European organization

� Strategic, operational/practical and tactical

recommendations as the basis of a detailed roll-out plan

by country

� The commercial infrastructure of Medimmune, acquired in 2007 by

Astra Zeneca, is limited to the US

� Built detailed forecast and prioritization models for 32 ex-US

countries

� Physicians and payors’ perception of the product

� Key Opinion Leaders interviewed for influenza

� Opportunity assessment 14 markets, EU, Asia, Latin America

� Resourcing of ex-US launch through workshop sessions with

affiliates of Europe, Asia and Latin America

Other clients

Management Consulting Case Studies

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Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising









Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising








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We provided Idenix with a turn-key solution to be ready in time for EMEA

filing and launch

Bionest impact Commercial organization

effectivenessAssignment overview

Commercial organization effectiveness

Assignment overview

Bionest helped Paionto open discussions

with Lundbeck’s team and capture Lundbeck’s vision on

Desmoteplase com-mercialization

Bionest impact

� Idenix needed to build a European co-promotion infrastructure

from scratch for their HBV phase III product

� Bionest assessed key strategic issues for commercializing a

Hepatitis B product in Europe

� Assessed future EU HQ location and designed required

infrastructure, quantified associated investments

� Developed a detailed implementation road map and supported

company setup (e.g. identified subcontractors)

Desmoteplase

co-promotion strategy

for EU G5

� Involved in a co promotion agreement with the big pharma

Lundbeck, German biotech Paion gave these key assignments to

Bionest:

� Desmoteplase’s "ideal" and "realistic" sales force sizing

� Identification of co-promotion organizational models

� Preparation and facilitation of a joint workshop meeting to

address Desmoteplase’s sales force organization

Other clients

October 2007

HBV treatment

Ex-US

commercialization

strategy

2007

Corporate Development Case Studies


Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising









Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising








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Corporate DevelopmentCorporate Development

In 3 weeks, Bionest was able In 3 weeks, Bionest was able

to provide 4SC with a BUY to provide 4SC with a BUY

recommendation for recommendation for

NycomedNycomed’’ss preclinical oncology preclinical oncology

portfolioportfolio

Bionest impact Opportunity assessment Assignment overview

Global strategic review Assignment overview

Bionest developed a crystal Bionest developed a crystal

clear road map to share with clear road map to share with

the management, the board the management, the board

and the shareholders and the shareholders

Bionest impact

� In November 2007, Nycomed announced its intention to divest a

portfolio of oncology products, encompassing three HDAC

inhibitors (Phase I and PC) and several other early compounds

� The Germany-based 4SC company solicited Bionest to conduct

an in-depth assessment of each drug candidate as well as the

valuation of the portfolio

� Bionest Partners provided a “buy” recommendation and 4SC

submitted a successful bid including a total consideration of

€14m in cash

� Exonhit is a French-American biotech company that develops

applications of its proprietary gene profiling technology in the

diagnostic/ therapeutic areas

� A new CEO was appointed in July 2008, whose mission was to lay

out the vision and the business model of the Company for the

next 5 to 10 years

� ExonHit asked Bionest Partners to help the Company analyze its

potential future from the science & technology, commercial and

financial angles

� ExonHit also wanted to assess the impact of new business

models on financial market valuation.

December 2008

Global strategic

review

Rx / Dx

April 2008

Assessment of

product franchise

Oncology

Other clients

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Bionest was able to act swiftly for this major transaction, not only

assessing the business plan but educating the PE team about the generic market

place

Bionest impact Strategic due diligence Assignment overview

Strategic due diligence

Bionest contributed significantly to the understanding of the

European medicated feed additives market and its

evolution over time

Bionest impact

2008

Commercial due

diligence

Bid for

� Bionest acted as commercial due diligence provider for the

Apax/Bain Capital consortium

� Bionest answered clients’ needs through desk research,

interviews with clients, competitors, industry associations and

government representatives on an international basis

� For a 2-month period, key work streams included:

� Determine the attractiveness of each generics/branded

market

� Evaluate the competitive position of Merck by country

� Assess the defensibility of Merck’s position in each market

2008

Commercial due diligence

for

� Working closely with 3i, Bionest combined extensive secondary

and primary research to provide the most current view of the

European animal health industry dynamics and develop a rigorous

set of combinations with Phibro’s business from a build-up

perspective

� To meet these objectives, Bionest followed a two-step approach:

� Global review of AH segments attractiveness in Europe,

especially nutritional feed additives

� Assessment of business and industrial options for Phibro

in view of European expansion

Corporate DevelopmentCorporate Development

Assignment overview

Other clients

Financial Advisory Case Studies


Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising









Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising








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MergersMergers & Acquisitions / & Acquisitions / LicensingLicensing

Bionest was able to rapidly Bionest was able to rapidly

secure a transforming deal secure a transforming deal

with an with an ““outout--ofof--thethe--boxbox””

buyerbuyer

Bionest impact M&A Assignment overview

Licensing Assignment overview

Bionest supported EUSA Bionest supported EUSA

PharmaPharma in the outin the out--licensing of licensing of

a preclinical anti ILa preclinical anti IL--6 to GSK 6 to GSK

for $44million for $44million

Bionest impact

� The French health authorities decided to stop reimbursing

venotonic agents as of 1 January 2008

� French pharmaceutical company Ipsen did not wish to enter the

OTC market and decided to divest Ginkor Fort to a company

offering a better fit

� On 23 August 2007, Ipsen announced the out-licensing of Ginkor

Fort French distribution rights to Groupe GTF, a specialist in the

management of mature products via its subsidiary Tonipharm

� EUSA Pharma is a transatlantic specialty pharmaceutical company

focused on in-licensing, developing and marketing late-stage

oncology, pain control and critical care products

� As part of the company’s 2007 acquisition of France-based OPi,

EUSA Pharma acquired OP-R003, the first fully human anti-

interleukin-6 (IL-6) antibody developed for oncology and

inflammatory diseases, at a preclinical stage of development

� In February 2008, EUSA Pharma announced the global and

exclusive out-licensing of OP-R003 to GSK for a consideration of up

to $44m (upfront fee, development milestones plus royalties on

future sales)

February 2008

Sole Advisor

Out-licensed

OP-R003 Full Rights to

August 2007

Sold Ginkor Fort to

Exclusive Advisor

Other clients

Financial Advisory Case Studies


Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising









Indicators (KPI)


effectiveness




� Market Access


strategy evaluation


structure

Product Strategy




forecast



M&A/Licensing





Valuation/Placement


� Business plan


� Fund raising














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ValuationValuation / Placement / Placement

In two weeks, Bionest In two weeks, Bionest

implemented standard as implemented standard as

well as creative and easywell as creative and easy--

toto--read resultsread results to perform to perform

the company valuationthe company valuation

Bionest impact Valuation Assignment overview

Placement Assignment overview

Bionest actively contributed Bionest actively contributed

to the closing of a to the closing of a €€15m 15m

placement by delivering a placement by delivering a

simple yet attractivesimple yet attractive

equity storyequity story

Bionest impact

� Mutabilis is a France-based biopharmaceutical company

specialized in the anti-infectious field

� In view of a forthcoming fundraising round, Mutabilis mandated

Bionest to conduct an independent valuation of the company

� As decided together with management, Bionest approached the

valuation of Mutabilis solely based on a benchmark approach (no

DCF analysis was performed on the Mutabilis products and

technology platforms)

� By using five benchmark-based valuation methods, Bionest was

able to derive a realistic valuation range

� Genfit is a French biopharmaceutical company focused on the

treatment of cardiometabolic disease

� Oddo Corporate Finance and Bionest Partners acted as co-

advisors to Genfit

� Prior to the IPO, the company successfully completed a private

placement of €15 million amongst several qualified investors as

well as historical shareholders

� Bionest produced an in-depth analyst report, positioning Genfit

as a highly differentiated player in the biotechnology field

December 2007

Independent

corporate valuation

Exclusive Advisor

December 2006

Raised €15m

Listed on Alternext

Co-Advisors

Other clients

Selected Publications2

Major publications by Bionest Major publications by Bionest PartnersPartners

200720072008 2008 2008

20082008200820082009

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Partners and Managers Biographies3

� Before joining Bionest as a Managing Partner, Frédéric was head of Pharma Equity Research and a partner at Exane BNP Paribas, Paris

� Previously head of a research team at GlaxoWellcome (Les Ulis, France) - research and preclinical development in cardiovascular diseases; Scientific

Consultant for Hoechst (Sommerville, USA) Advisor for the R&D team in neurodegenerative disorders (i.e. Alzheimer’s)

� Guest Investigator at Rockefeller University (New York, USA) conducting research on biochemical and cellular aspects of Alzheimer’s disease in Paul

Greengard’s laboratory (Nobel Prize for Medicine, 2000)

Frédéric Desdouits – Managing Partner, PhD, MSc., CEFA

Management team Management team -- PartnersPartners

� Co-founder of Bionest in 2003

� Previously European Founding President of Biogen Inc, (BGEN) where he was responsible for the launch of Avonex®

� Held several positions at senior management level such as European founder of IDEXX Labs Inc, President of Medtronic Europe

� Started his career in sales and marketing at Abbott’s Diagnostic Division and remained there for 17 years

� At Bionest, Alain is mostly involved in Biopharmaceutical, Animal Health, Product Launch, Private Equity and very focused on the USA

Alain J. Gilbert – Managing Partner

� Before co-founding Bionest in 2003, Claude was a ISO HealthCare Consulting VP in Paris (1998-2002), responsible for developing the European

healthcare and biotechnology consulting services and Senior consultant specialized in Healthcare for Arthur D. Little (1991-1998)

� He led over 200 projects in R&D, Marketing and Sales, Medical Affairs, and Business Development, in Europe and North America, for Big Pharma and

growing biopharmaceutical firms.

� Prior to consulting, Claude held a number of Corporate and Operational Finance / Marketing positions for 14 years with Glaxo PLC International,

Rhône-Poulenc Santé International and Parke-Davis France.

� Claude graduated from ESSEC and is a member of SFAF (Société Française des Analystes Financiers)

Claude Allary – Managing Partner , MBA, CEFA

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Management team Management team -- Managers Managers

� Former London-based investment banker with Robertson Stephens and Bank of America Securities

� Before joining Bionest in 2004, spent over eight years specializing in US and European healthcare (Biotech, Spec Pharma, Pharma, Med Tech)

� Mandates mainly covered M&A (both buy-sides and sell-sides) and Private Placements

Catherine Pichereau – Manager, MSc.

� Over 5 years of Consulting experience at Bionest Partners where he has been involved and/or managed over 50 projects

� Worked on a large range of projects: Strategic positioning, business planning, strategic due diligences

� Gained experience at Genopole (Evry, France), French Trade Commission (Toronto, Canada)

� Obtained a Master’s in Life Sciences and Management from ISTM (Paris)

Thomas Martinelli – Manager

� Before Bionest, gained 10 years of management experience in strategic and organizational consulting dedicated to the Healthcare Industry

� Before entering consultancy, held several key operational positions at IMS Health

� Consulting expertise developed around strategic, operational and organizational issues

Lionel Delaporte – Managing Director

26

19, rue du Général Foy75008 Paris

France

Tel: +33 1 58 05 14 00Fax: +33 1 58 05 14 09

Tower 49, 12th floor12 East 49th StreetNew York, NY 10017

USA

Tel: +1 646 386 2900Fax: +1 212 832 3227

[email protected]

www.bionest.com