SHERATON RALEIGH HOTEL

Maintaining Financial Success through Innovative Deal Structures, Addressing the Financial Impact of New Healthcare Delivery Models to Ensure Continued Organizational Growth by Increasing Efficiencies & Reducing Spending

500 N. DEARBORN STREET, SUITE 500 CHICAGO, IL 60654 (P) 312.822.8100 (F) 312.602.3834 www.q1productions.com

5TH ANNUAL LIFE SCIENCE FINANCIAL FORUMJUNE 19-20, 2014 | RALEIGH-DURHAM, NC

Alex GariniChief Financial OfficerSYSMEX AMERICA, INC.

Michael DinkinsChief Financial OfficerGREATBATCH

August J. MorettiChief Financial OfficerDEPOMED, INC

R.A. Session IIVice President, Corporate DevelopmentPTC THERAPEUTICS, INC.

Matthew L. CohnFirst VP & Senior Program ManagerLife Science & Medical ProductsSolutionsALLIANT INSURANCE SERVICES

Mark BooneChief Compliance OfficerEXACTECH, INC.

Joe PocrassDirector, R&D FinanceMEDIMMUNE

William SarraillePartnerSIDLEY AUSTIN

Eirik OlsenBusiness Development & MarketingDAVIZTA

Krishnan PadmanabhanPresident & COODAVIZTA

Sandra ClarkeVice President, Finance & Chief Financial OfficerDAIICHI SANKYO, INC.

Todd FarnsworthChief Financial Officer, Global ResearchELI LILLY AND COMPANY

Janet StaceyVice President, HealthPADILLACRT

Mike JahnerVice President & Co-Program ManagerLife Sciences & Medical ProductsSolutionsALLIANT INSURANCE SERVICES

Simon OwenAssociate Director, FinanceEISAI

Jim QuinlanPartnerCORPORATE FINANCE GROUP

Chad MartinsonVP, Finance and Business Development - Neuromodulation DivisionMEDTRONIC

Chris PalermoVP, Global Financial Planning & AnalysisCOVIDIEN

Laurent ChardonnetVice President, Finance & TreasurerINCYTE CORPORATION

DISTINGUISHED PRESENTERS INCLUDE:

Susan KingDirector, Head of R&D Finance ALCON LABORATORIES

Antoine GalouAssociate Director,R&D Finance Business PartnerIRONWOOD PHARMACEUTICALS

Al GalganoVice President, Investor RelationsPADILLACRT

Derek KostiInternational Controller – Worldwide Biopharmaceutical BusinessPFIZER

James SnipesPartnerCOVINGTON & BURLING LLP

Robert KeepSenior ManagerCORPORATE FINANCE GROUP

Paul BarberChief Executive OfficerPROPHIX

Joe BuzitskyRegional DirectorCHANGEPOINT

Brad AquinoGroup Vice President, FinanceBIOMET

Robyn HobanLife Sciences LeadHOST ANALYTICS

7:00 REGISTRATION & CONTINENTAL BREAKFAST7:50 CHAIRPERSON’S OPENING REMARKSTodd Farnsworth, Chief Financial Officer, Global Research, ELI LILLY AND COMPANY8:00 STATE OF THE INDUSTRY KEYNOTE ADDRESS: THRIVING AS A LIFE SCIENCE COMPANY IN 2014The life science industry continues to undergo a transformation as the Affordable Care Act, increased FDA scrutiny, global financial uncertainty, emerging market op-portunities and other external factors impact strategic planning conducted by senior financial executives. As the healthcare environment evolves, pharmaceutical and medical device companies must follow suit by developing innovative commercial models and expansion strategies that will create new revenue streams. From a CFO’s perspective, this opening presentation will offer attendees an inside look at what it will take to remain competitive in the coming years. • From volume to value: focusing on innovative products• Non-traditional growth channels• Understanding new decision-makers in healthcareAlex Garini, Chief Financial Officer, SYSMEX AMERICA, INC.8:45 OVERCOMING THE HUMAN ELEMENT IN BUDGETING FOR A LIFE SCIENCE COMPANYBudget planning can be a tedious process for financial teams within the life science industry, as gathering forecasts and resource needs from multiple departments holds potential for inaccurate data and expense projections. Financial executives must minimize the human element that can distort this process of developing ac-curate quarterly and annual budgets. Oftentimes, business heads have a tendency to submit substantially less forecasted targets of revenue while requesting large budgets to accomplish strategic goals, causing a back-and-forth negotiation process between business units and financial leaders. With an open dialogue, financial teams can ensure a smoother budgeting process by educating business heads on financial implications while receiving a commitment from business units for a bal-anced profit contribution. Todd Farnsworth, Chief Financial Officer, Global Research, ELI LILLY AND COMPANY9:30 COFFEE BREAK & NETWORKING MEETINGS11:00 HOW EINSTEIN’S DEFINITION OF INSANITY COULD WREAK HAVOC IN YOUR LIFE SCIENCE BUSINESSProperty and Casualty Insurance for the average company in the Life Science Industry is extremely complex and far outside the scope of the average local insurance broker that insures restaurants, contractors and general business. To say the “devil is in the detail” would be quite an understatement. During this presentation you will learn through various client case studies the systematic steps and decision logic needed to avoid the “havoc” and most optimally protect shareholder value.Matthew L. Cohn, First VP & Senior Program Manager, Life Science & Medical Products Solutions, ALLIANT INSURANCE SERVICESMike Jahner, Vice President & Co-Program Manager Life Sciences & Medical Products Solutions, ALLIANT INSURANCE SERVICES11:45 HOW CORPORATE PERFORMANCE MANAGEMENT SOFTWARE CAN BE USED IN BOTH EARLY STAGE AND MATURE LIFE SCIENCES COMPANIESFor start-ups, with limited resources, “cash is king”. Yet many companies are challenged when it comes to managing costs and predicting cash. Methods for predict-ing cash using CPM software will be discussed. Life sciences companies operate in a very dynamic environment. Even for more mature companies, reacting quickly to external factors such as regulatory requirements and media interest means that calculating multiple scenarios is essential. This talk includes a case study that shares the business model of Myriad Genetics, a major supplier of diagnostic tests, and explains how revenue forecasting was affected by external factors.Paul Barber, Chief Executive Officer, PROPHIX12:30 LUNCHEON FOR ALL ATTENDEES, SPEAKERS & SUPPLIER PARTNERS

4:00 FUNDING INNOVATION: RESOURCE ALLOCATION FOR RESEARCH & DEVELOPMENT The success of a life science company largely lies with the ability to predict project outcomes and invest wisely across a product portfolio, lowering financial risks in funding therapies with high potential for regulatory approval and reimbursement. Rather than simply relying on intuition and industry prowess, finance executives can work alongside competitive intelligence and portfolio management groups to knowledgeably determine which R&D projects have valuable potential based on market penetration, competitor landscape and customer value. • Managing risk in R&D resource allocation • Key product and market attributes for consideration • Calculating investment dollars and appropriate timing • Adapting to financial attrition within R&D portfolio Antoine Galou, Associate Director, R&D Finance Business Partner, IRONWOOD PHARMACEUTICALSSusan King, Director, Head of R&D Finance, ALCON LABORATORIES

1:30 UNDERSTANDING VARIABLES IN FORECASTING AND BUDGETING FOR CLINICAL TRIALSAccording to analysis conducted by Cutting Edge Research, the average Phase 3b clinical trial costs $48,000 per patient and early-stage trials have more than doubled in cost since 2008, exhibiting the immense expense put forth by life science companies during clinical studies. As such, accurately budgeting and forecasting for clinical trials is of utmost importance to finance teams, making it critical to understand and appropriately account for variables that streamline or halt clinical development. Alongside clinical operations teams, finance execu-tives can pinpoint key drivers for allocating resources and forecasting expenses, including speed of patient enrollment, clinical research organization fees, labora-tory expenses and more. • Applying risk management in clinical trial budgeting • Identifying inputs of variables in clinical forecasting • Building forecast models with clinical teams Joe Pocrass, Director, R&D Finance, MEDIMMUNE

2:15 MAXIMIZING PROFITABILITY: ADAPTING PRICING AND REIMBURSEMENT STRATEGY BASED ON PAYER EXPECTATIONSA joint effort between finance, marketing and reimbursement teams, determining a pricing and reimbursement strategy that will maximize profitability in the long run proves to be a difficult task as the market conditions continue to evolve due to the Affordable Care Act. Life science companies have observed payers move to a more evidence-based, clinical outcomes outlook for reimbursement decisions, and finance executives must incorporate these elements to balance targeted ROI and patient access. Other areas to focus on when developing an optimal pricing and reimbursement strategy include the competitive landscape, novel practices in contracting and new decision makers within ACOs and hospital networks.• Identifying decision makers: physicians, ACO networks, etc.• Impact of increased insured patients on reimbursement• Payer perspective: showing product value William Sarraille, Partner, SIDLEY AUSTIN

2:15 GLOBAL EXPANSION: RECOGNIZING OPPORTUNITIES & CHALLENGES FOR REVENUE GROWTH While pharmaceutical and medical device companies were initially aggressive with emerging market expansion to increase revenue growth, the past few years have presented a hesitation due to a largely competitive landscape that has oversaturated the market. Additionally, many foreign government and regulatory infrastructures have exhibited an unwillingness to pay for innovative therapies, negatively impacting advanced healthcare initiatives in emerging markets. De-spite these disadvantages, financial executives must still explore potential reve-nue-generating opportunities outside of the US. Through development of a sound evaluation strategy that melds traditional indicators such as GDP growth and life science expenditure along with non-traditional metrics, an all-encompassing view of a specific country’s realizable growth stimulation can surface. • Leveraging advantageous international tax structures • Metrics for evaluation: health expenditure, health expenditure per capita, etc.• Organic expansion vs emerging market acquisitionsDerek Kosti, International Controller – Worldwide Biopharmaceutical Business, PFIZER

DAY ONE | THURSDAY, JUNE 19

TRACK ONE TRACK TWO

1:30 EXAMINING PARTNERSHIP TRENDS IN BIG PHARMA Traditionally, Big Pharma has played a more active in role in forming partnerships with biotech start-ups and academic institutions as compared to medical device companies, mainly due to the variety of early-stage collaboration opportunities. Partnerships offer pharmaceutical corporations optimal growth for a brand while minimizing risk associated with extensive budgets allocated to the development of a single drug. As such, finance executives must devote time and resources to identifying potential partners that will influence business development objectives and advance medical innovation. • Collaborations with non-profit, government, academia and biotech• Shift in funding studies and early R&D projects• Optimal timing for partnership within the product lifecycle• Status and reputation: elements of partnership successJames Snipes, Partner, COVINGTON & BURLING LLP

4:00 GUARANTEEING LONG-TERM FINANCIAL SUCCESS: FUNDING, INITIAL PUBLIC OFFERINGS, PARTNERSHIP & OTHER STRATEGIESCentral to the success of an emerging growth company is a CFO’s ability to secure capital from a variety of sources to minimize dilutive funding. Industry financing has fallen by more than $5 billion over the past five years, causing CFOs to seek alterna-tive funding, in addition to venture capital firms. Angel investors, matching founda-tion grants and other non-dilutive funding sources can assist in boosting cash flow to support operating and product development costs. Additionally, organizations have entered into IPOs as another tool for increasing company exposure and raising capital. In May 2013, eight life science companies went public on US exchanges, making it the busiest month for initial public offerings within the industry since 2000. As evidenced by a progressively receptive public market for healthcare in-novation, emerging growth companies should consider an IPO as a suitable option for raising capital and increasing liquidity to build product portfolios and expand market share while cultivating public awareness of a company and its therapies. R.A. Session II, Vice President, Corporate Development, PTC THERAPEUTICS

3:00 COFFEE BREAK & NETWORKING MEETINGS 3:00 COFFEE BREAK & NETWORKING MEETINGS

7:30 REGISTRATION & CONTINENTAL BREAKFAST7:50 CHAIRPERSON’S OPENING REMARKSSandra Clarke, VP, Finance & Chief Financial Officer, DAIICHI SANKYO, INC.8:00 KEYNOTE: LONG-TERM PLANNING: IMPLEMENTING A COST-EFFECTIVENESS PROGRAM ACROSS A LIFE SCIENCE COMPANYEstablishing a cost-conscious and productive operational structure that aligns with a company’s vision and strategic goals is at the core of a CFO’s responsibility, and the life science industry continues to place great pressure on spending stabilization expectations. Although a one-size-fits-all approach is not realistic, financial leaders can take an extensive look through all parts of the business to identify areas for lowering expenses by generating efficiencies, shrinking workforces and centralizing operations. Leaders must take a balanced approach that combines short term ac-tions with long-term investments and savings. Many of these measures may create an initial backlash with stakeholders, but pharma and device companies must push through with cost-cutting programs in order to thrive in an ever-changing marketplace. • Beyond ROI: business benefits for R&D projects, sales & marketing efforts, etc. • Down-sizing manufacturing vs low-cost foreign operations• Obtaining support from stakeholders at all levelsSandra Clarke, VP, Finance & Chief Financial Officer, DAIICHI SANKYO, INC.8:45 RETURN ON INFLUENCE: PADILLACRT CASE STUDIESPadillaCRT is a top 10 independent strategic communications firm with a single focus – to inspire. We bring together a deep body of industry knowledge, meticulous research and the best communications talent in healthcare, medical devices and life sciences. Through our expertise in marketing, corporate and investor relations, crisis management, media relations, social media, creative and digital communica-tions, we build brands and reputations that inspire audiences to take action. In this session, a variety of client case studies will be shared.Janet Stacey, Vice President, Health, PADILLACRT Al Galgano, Vice President, Investor Relations, PADILLACRT9:30 COFFEE BREAK & NETWORKING MEETINGS10:30 INCREASING PROFITABILITY AND MARKET SHARE THROUGH MERGERS & ACQUISITIONSWhile merger and acquisition activity slightly dropped in 2013, performance ex-pectations for companies acquired significantly increased as evidenced by the 21% jump in deal values from 2012, reaching $132 billion in global transac-tions. Investment decisions made by large life science companies demonstrate an excitement for strategically folding smaller and innovative businesses into an expanding product portfolio. The following two presentations will explore the iden-tification and integration processes, highlighting ways to strive in a competitive M&A environment and successfully overcome cultural and operational barriers.10:30 EXPANDING A PRODUCT PORTFOLIO THROUGH M&A • Filtering through a myriad of potential companies • Filling portfolio gaps to strengthen product offerings• Tax advantages with international acquisitions August J. Moretti, Chief Financial Officer, DEPOMED, INC11:15 OVERCOMING INTEGRATION BARRIERS AFTER M&A• Create an integration task force with finance involvement • Quick, strategic personnel decisions based on financial analysis • Pledge to a unifying company culture led by senior executivesChad Martinson, VP, Finance & Business Development - Neuromodulation Division MEDTRONIC

12:00 SMALL GROUP DISCUSSIONS: KEY FINANCIAL ISSUESFinancial executives within pharma and device companies face an ever-evolving economic and healthcare landscape, and as such encounter different challenges and obstacles on a sometimes daily basis, with little or no predictability related to what might come next. These discussions will provide a forum for the sharing of ideas and networking, which are of high value to CFOs and senior level finan-cial executives. The topics for discussion have been previously selected based on feedback received from financial executives throughout the life science industry. Attendees, speakers and sponsors are encouraged to be active participants al-lowing for better exchange of ideas, peer-to-peer learning and open discussion.Driving Revenue and Profitability through Your Services BusinessJoe Buzitsky, Regional Director, CHANGEPOINTIdentifying, Quantifying & Plugging Revenue LeakageEirik Olsen, Business Development & Marketing, daVIZtaKrishnan Padmanabhan, President & COO, daVIZtaQuantifying Operational, Financial & Reputational RiskDerek Kosti, International Controller – WW Biopharmaceutical Business, PFIZERThe New Standard on Revenue RecognitionJim Quinlan, Partner, CORPORATE FINANCE GROUPRobert Keep, Senior Manager, CORPORATE FINANCE GROUPThe Impact and Benefits of Taking Finance to the CloudRobyn Hoban, Life Sciences Lead, HOST ANALYTICS 12:45 LUNCHEON FOR ALL ATTENDEES, SPEAKERS & SPONSORS1:45 PHYSICIAN PAYMENT SUNSHINE ACT (OPEN PAYMENTS): REMAINING COMPLIANT WITH PAYMENT DISCOSURESThe final ruling for the Sunshine Act, re-named by CMS as Open Payments, was im-plemented in February 2014. The final regulations provide clarity and guidance for the industry in a number of areas, including a revision to the definition of applicable manufacturer, clarified rules for certain categories of payments, additional data ele-ments in the disclosure report and specific requirements for an applicable manu-facturer or group purchasing organization to register and report. Companies have already devoted significant resources for disclosure readiness through utilization of expense tracking systems and development of processes for payment disclosures, and these responsibilities have largely fallen under the realm of financial teams. With the final ruling now in place, financial teams can review tracking and reporting processes to ensure compliance with the Sunshine Act / Open Payments, including:• Processes for reviewing & approving direct payments & in-kind transfers of value• Mechanisms for capturing information necessary for disclosures.• Internal auditing of all reportable activities to support certification requirementsMark Boone, Chief Compliance Officer, EXACTECH, INC.2:30 BEYOND THE NUMBERS: COMMUNICATING COMPANY PERFORMANCE TO INVESTORS AND THE BOARD OF DIRECTORS Through annual reports, earnings releases and published financials, senior financial executives provide investors and the board of directors with information regarding a company’s financial health; however, these figures do not adequately depict the comprehensive financial story. Life science companies must present to stakehold-ers further details concerning innovative R&D projects, forecasted growth opportuni-ties and other investments unseen in a simple balance sheet. At times, this requires transparent yet careful communication by financial teams regarding risk mitigation plans and unfortunate detours from a strategic plan posed by external factors. • Communicating results that are not as anticipated • Explaining changes in financial position due to regulatory actions• Foreseeable risks based on political and economic climateMichael Dinkins, Chief Financial Officer, GREATBATCH 3:15 BEST PRACTICES IN FINANCIAL TALENT ACQUISITION & DEVELOPMENTEnsuring compliant reporting and effective financial assessment of a life science company requires a talented finance staff with good analytical and technical skills along with thorough industry knowledge. Balancing the hiring of experience ver-sus talent that can be trained is integral to the building of a superior finance team, and identifying the skill sets needed for a particular organization can help finance executives to be effective and strategic with talent acquisition. Further-more, once a team is assembled, providing cross-functional opportunities and leadership roles prove to ensure the professional development of a finance staff. • Effective ways for recruiting a finance team • Adding value to the organization: skills and experience needed• Retaining talent through cross-departmental leadership opportunities• Creating excitement and motivation in a transactional environment Brad Aquino, Group Vice President, Finance, BIOMETChris Palermo, VP, Global Financial Planning & Analysis, COVIDIEN4:15 CLOSING REMARKS & FORUM CONCLUSION

5:45 COCKTAIL HOUR & NETWORKING MEETINGS6:45 DAY ONE FORUM CONCLUSION

5:00 THE IMPACT OF COLLABORATIVE ALLIANCES ON SUPPLY CHAIN ACCOUNTINGAs companies face increasingly challenging market pressures within Domes-tic and Global Markets, there has been an increasing trend toward innovative collaborations, alliances, and creative structures seeking not just cost savings, but solutions targeted at passing on savings for patients. Traditional Pharma Ac-counting systems are designed to seamlessly facilitate high volume transactions whilst innovative collaborative arrangements do not necessarily fit the design purpose of these systems. As companies form partnerships, the underlying na-ture of the transaction dictates how companies reflect such transactions in their book. Whether the collaboration results in profit sharing, shared services or seg-regated supply chains, Accounting and Inventory transactions vary, depending on circumstance. These transactions are predominantly manual in nature. This paper seeks to illustrate those particular differences and in particular, highlight the impact these manual interventions can have on the Financial reporting.Simon Owen, Associate Director, Finance, EISAI

5:00 FROM DISCOVERY TO COMMERCIALIZATION: ENSURING REVENUE & PRODUCT SUCCESS IN THE LIFE SCIENCE INDUSTRYAs pharmaceutical and medical device companies become a fully integrated commercial company, finance managers must proactively prepare for a product’s commercial launch in order to maximize profitability and revenue success. Key areas of focus for financial executives prior to a new product launch include the choice of distribution channels, sales force expansion and financial compliance concerns. This in-depth case study will provide attendees an inside look at a bio-technology company’s journey from discovery to commercialization. Laurent Chardonnet, VP, Finance & Treasurer, INCYTE CORPORATION

DAY ONE | THURSDAY, JUNE 19 (CONTINUED)

DAY TWO | FRIDAY, JUNE 20

TRACK ONE TRACK TWO

 

 

Sandra Clarke is the CFO and Vice Presi-dent of Finance for Daiichi Sankyo, Inc. Sandra has served in numerous roles with-

in the healthcare industry and has more than 20 years of experience in finance and accounting. Her background includes diverse leadership positions with companies including Philips Healthcare and Siemens Wa-ter Technologies. Sandra holds a Bachelor of Science in Management from MIT and a Master of Science in Accounting from Bentley University.

Sandra ClarkeVice President, Finance & Chief Financial OfficerDAIICHI SANKYO, INC.

KEY CONFERENCE SPEAKER:

The 5th Annual Life Science Financial Forum has been approved for 12.5 CPE credits. Q1 Productions is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing profes-sional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual cours-es for CPE credit. Complaints regarding registered sponsors may be ad-dressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org. Please note that in order to collect your CPE credits, you will be asked to sign-in to each block of sessions, in order to confirm your participa-tion in that session. There are no pre-requisites for this course required.

CPE CREDITS

Sheraton Raleigh Hotel421 South Salisbury St.Raleigh, NC 27601919 – 834-9900

HOTEL LOCATION

500 N. DEARBORN STREET, SUITE 500 CHICAGO, IL 60654 (P) 312.822.8100 (F) 312.602.3834 www.q1productions.com

5TH ANNUAL LIFE SCIENCE FINANCIAL FORUM JUNE 19-20, 2014 - RALEIGH-DURHAM, NC