PATIENT CAPITALIMPROVING THE LIVES OF MILLIONS ----- THE VITAL ROLE OF

VENTURE CAPITAL IN LIFE SCIENCE INNOVATION

KKEEYY FFIINNDDIINNGGSS

More than 100 million (1 out of 3) Americans have been positively

affected by venture backed medical innovations developed during the

past 20 years. This positive effect occurs in several forms – extended life,

improved quality of life, and the peace of mind associated with low-risk,

yet highly effective diagnostic and treatment tools.

More than 70 million Americans have had their lives extended or quality of

life improved as a direct result of venture backed diagnostic and thera-

peutic innovations.

More than 25 million Americans have their lives extended or quality of life

improved every year through the use of venture backed diagnostic and

therapeutic products.

The U.S. venture capital community invested $5 billion in the life sciences

sector in 2003, representing 28 percent of all venture capital investments.

Product revenues provide a return of over $50 for every venture dollar

invested in recent launched products described in this report and as

much as $750 for every venture dollar invested in referenced products

introduced 10 to 15 years ago. This rate of return allows for robust

reinvestment in the development of next generation therapies and

devices.

Venture backed medical innovations are developed and made available

to patients as much as three times faster when compared to a bootstrap-

ping approach to product development.

The biotechnology and medical device sectors employ more than

600,000 people in the United States, earning an average of $70,000 per

year.

Employment growth from 2000 to 2003 was 23 percent in the venture

backed life sciences industry, compared to just five percent employment

growth for the entire biotechnology industry.

PATIENT DEATHS BY DISEASE

IN B

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AMERICA'S VENTURE CAPITALINVESTMENTS BY CAUSES OF DEATH

OVER THE PAST 20 YEARS

Source: National Center for Health Statistics

1

EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY

This report provides an overview of the study Patient Capital: Improving theLives of Millions --- The Vital Role of Venture Capital in Life Science Innovationwhich demonstrates a long-term commitment by the venture capital communityto the life sciences industry and improving lives with staggering results for allAmericans. Indeed, more than one in three Americans has benefited from aventure capital backed life sciences product. Venture capitalists bridge thesignificant gap between discovery, development, and thorough testing of lifesciences innovations by providing both monetary and non-monetary support,thus speeding the time it takes to move a product from the lab to the patient.

VENTURE CAPITAL COMBATS AMERICA'S LEADING CAUSES OF DEATH

Innovations by venture backed life sciences companies produce treatmentsolutions for the leading causes of death in the United States. Althoughdiseases such as cancer, stroke, respiratory disease, and heart disease are not100 percent curable, medical breakthroughs by venture capital backed lifesciences companies can extend and increase the quality of life for peoplesuffering from such diseases.

VENTURE CAPITAL IMPROVES THE LIVES OF PATIENTS WITH CHRONICDISEASES

Medical innovations by venture backed life sciences companies havepositively affected the lives of more than 100 million Americans over the past20 years. Monetary and non-monetary investments by the venture capitalindustry in companies producing drugs and medical devices to treat chronicdisease have positive effects by extending life, improving quality of life, andproviding the peace of mind associated with low-risk, yet highly effectivediagnostic and treatment tools.

VENTURE CAPITAL INVOLVEMENT ACCELERATES LIFE ENHANCINGINNOVATION

Venture backed medical innovations by life sciences companies are developedand made available to patients as much as three times faster than a bootstrapping approach to product development.

VENTURE CAPITAL BACKED LIFE SCIENCES COMPANIES CONTRIBUTETO THE U.S. ECONOMY

The biotechnology and medical devices industry employed more than 600,000people in the United States, earning an average annual wage of $70,000 in2003. Venture backed biotechnology companies increased their employmentbase by 23 percent between 2000 and 2003, compared to just five percent totalemployment growth for the entire biotechnology industry. In addition, thesuccessfully invested venture dollars analyzed in this report have returned, at aminimum, 50 times the investment to the economy.

"More than one of every threeAmericans have beenpositively affected by lifesciences innovations devel-oped by companies that cantrace their roots to venturecapital backing."

Venture Capital BiotechnologyEmployment Growth vs. Total

Biotechnology Employment Growth2000 - 2003

Source: Global Insight

VENTURE CAPITAL COMBATS AMERICA'S LEADING CAUSES OF DEATHS

There were more than 2.4 million deaths in the United States in 2001. With theexception of accidental injury, the top five causes of death are treatable withinnovations developed by venture capital backed life sciences companies. Notall of these diseases are 100 percent curable, but life can be extended andquality of life improved through diagnosis and treatment with breakthroughproducts.

VENTURE CAPITAL IMPROVES THE LIVES OF PATIENTS WITH CHRONICDISEASES

Venture capital investments combat chronic diseases that account for seven ofthe ten leading causes of death in the United States. Seventy percent of allhealth care costs are dedicated to the treatment of these diseases --- not onlyincreasing the quality of life of more than 100 million Americans, but oftenextending life, too. As a result, people are healthier, spend less time in thehospital, and more time in the workforce. This lowers overall health care expen-ditures and increases the nation's productivity.

2

Cause of Death Number ofPeople2001

Venture CapitalSupport During

the Past 20 Years

Venture Backed InnovativeTreatment Examples

Heart Disease 700,142 $22 billion Angioplasty, Minimally InvasiveBy-pass, Electro-Ablation,Implantable Defibrillators,Integrilin, ReoPro

Cancer 553,768 $9 billion Doppler Ultrasound, MinimallyInvasive Biopsy, PSA, MRI,Avastin, Erbitux, Velcade,Gliadel, Herceptin, Rituxan

Stroke 163,538 $1.3 billion MRI, TPA

Respiratory Disease 123,013 $19.5 billion FluMist, Ventilators

VENTURE BACKED INNOVATIVE TREATMENTS FOR LEADING CAUSES OF DEATH

Condition EstimatedCumulative LivesSaved/Improved

Company Key VentureBacked Products

Diabetes 18.2 million Therasense Blood Glucose Monitors

Asthma 7 million Sepracor Xopenex

Kidney Disease 300,000 Amgen EPOGEN

Rheumatoid Arthritis 234,000 Immunex/Amgen ENBREL

CHRONIC CONDITIONS TREATED BY VENTURE BACKED DRUGS AND DEVICES

VENTURE CAPITAL INVOLVEMENT ACCELERATES LIFE ENHANCINGINNOVATION

The conversion of life sciences discoveries into successfully appliedproducts is critical to improving the health of the U.S. population.Compared to other industry start-up companies, life sciences companiesneed a large amount of investment due to high risk exposure and thelengthy timeframe before a return on investment can be realized. Thismakes investments by individual people insufficient and investments frombanks and public capital markets unlikely. Venture capital is the onlyviable source of funds to support the development of the majority of lifesciences innovations.

However, the money from venture capitalists is not all that is required tobring a product to the market, or to take a company public. Strategicguidance is needed, as well as legal, financial, and other expertise.Without all of these pieces in place, it is virtually impossible to get a newlife sciences product from the laboratory to the patient.

Venture capital backed life sciences companies are able to accelerate theconversion of their discoveries into products that benefit patients. Thestudy Patient Capital noted that life sciences products can be developedand made available as much as three times faster with venture capitalsupport as compared to a bootstrapping approach to product develop-ment.

"Where we are today, one year and nine months into operations,would have taken five years without venture capital investment."

Guo Liang Yu, Ph.D., President and Chief Executive Officer,Epitomics

VENTURE CAPITAL FUNDS HIGH RISK PROJECTS

Many medical innovations would never be developed into commerciallyavailable products without venture capital involvement. For instance,venture capital backing was instrumental in the development of ENBREL,a product that has helped a quarter of a million people deal with arthritis, apainful and debilitating condition. Without the confidence and support ofthe venture capital community, the receptor technology that led to ENBRELwould not have been pursued as vigorously. Indeed, getting ENBRELfrom laboratory to patients would have been delayed or would not havehappened without venture capital support.

"Without the confidence and support of the venture capitalists onthe board, getting the product from bench to patients would havebeen delayed or not happened at all without that support."

Alan Frazier, Founder and Managing Partner, Frazier HealthcareVentures

3

BENEFITS OF VENTURE CAPITALFOR LIFE SCIENCES

COMPANIES

Acceleration of Innovation

Funding of High-Risk Projects

Multiplier Effect

4

VENTURE CAPITAL SPAWNS OTHER COMPANIES ---THE MULTIPLIER EFFECT

The success of venture capital backed life sciences companies helps tospawn new companies. The study found that many of the early-stageemployees of successful life sciences companies, such as Genentech,move on to lead new companies of their own.

Genentech was a first generation company in the San Francisco Bay Area,founded in 1976. Today, there are 820 life sciences companies in the BayArea. While not all of these companies were spawned directly byGenentech, many were. Senior level executives and other employees whogained critical experience while at Genentech now are leading second-and third-generation Bay Area companies.

Thriving life sciences hubs require pools of human talent, with a base ofwell trained scientists and managers capable of turning science into goodbusinesses, top R&D universities, and local venture capital firms. Theleading biotechnology metropolitan areas by employment are Boston, SanDiego, Philadelphia, Seattle, and Washington, DC, according to a recentMilken Institute study.

PARTIAL GENENTECH FAMILY TREE

GENENTECH

COLLABRA NOVACEA SUGEN TERCICA GILEAD

PLEXXIKONEXELIXIS

RENOVIS

1st

Generation

2nd

Generation

4th

Generation

3rd

Generation

BIOTECHNOLOGY CLUSTERSBY EMPLOYMENT

2002

Rank City Employment

1. Boston 18,741

2. San Diego 14,542

3. Philadelphia 10,554

4. Seattle 9,464

5. Washington, DC 9,266

6. San Jose 9,174

7. Los Angeles-Long Beach 8,145

8. San Francisco 6,935

9. Raleigh-Durham-Chapel Hill 6,474

10. Oakland 6,208

Source: America's Biotech and Life SciencesClusters, Milken Institute, June 2004

VENTURE CAPITAL BACKED LIFE SCIENCES COMPANIESCONTRIBUTE TO THE U.S. ECONOMY

Venture capital backed life sciences companies have made a signifi-cant contribution to the U.S. economy. In addition to patient benefits,products introduced by venture backed life sciences companiesprovide significant economic benefits, both to those companies thatprovide the products and to the American economy overall.

The U.S. venture capital community invested $5 billion in the lifesciences sector in 2003, representing 28 percent of all venture capitalinvestment. Of the products featured in this report, product revenuesprovide a payback of at least $50 for every venture dollar invested.EPOGEN, launched a decade ago, has provided a $750 return perventure dollar invested. These revenues help supply the U.S. lifescience industry with needed capital to reinvest into research anddevelopment of new therapies.

THE RETURN ON INVESTMENTS OFLIFE SCIENCES VENTURE CAPITAL

BIOPHARMACEUTICALEMPLOYMENT

2003

DirectState Employment

California 69,986

New Jersey 46,356

New York 36,313

Pennsylvania 34,673

North Carolina 25,482

Illinois 21,914

Massachusetts 21,419

Indiana 19,497

Texas 12,311

Michigan 12,207

Source: Biopharmaceutical IndustryContributions to State and U.S. Economics,Milken Institute, October 2004

VENTURE CAPITAL INVESTMENTSIN LIFE SCIENCES*

2003

*Source: PricewaterhouseCoopers/Thomson Venture Economics/National Venture Capital AssociationMoneyTreeTM Survey

$5.3 billion28%

Total VC Investments = $19 billion

Product CumulativeRevenue Since

Launch

VentureInvestment

Ratio of VC $to Total

Revenue $

ENBREL $1.62 billion $10.7 million 1:151

EPOGEN $17.8 billion $23.5 million 1:756

Integrilin $1.1 billion $20.6 million 1:53

Rituxan $3.5 billion $43.9 million 1:79

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LIFE SCIENCES CASE STUDIES

Venture capital yields innovative products in a significantly shortenedtimeline. These products have helped, and will continue to help,millions of Americans by lengthening life and providing a higher qualityof life. Without the continued monetary and non-monetary contributionsfrom venture capitalists to the life sciences industry, the introduction ofnew and innovative products that help patients and fuel the economywould virtually grind to a halt.

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Disease No. ofCases PerYear

Annual CostsAssociated withthe Disease

Venture CapitalSupport Duringthe Past 20 Years

Key VentureCapitalBackedInnovation

EstimatedCumulativeLives Saved orImproved Dueto Treatment

Arthritis 70 million $86.2 billion $2 billion in 248companies

ENBREL 234,000

Cardiovascular/Heart Disease

64.4 million $368.4 billion $22 billion in2,479 companies

Integrilin 115,000

RespiratoryDisease

35 million N/A $19.5 billion in2,203 companies

Xopenex 7 million

SurgicalProcedures

25 million N/A $32.8 billion in4,075 companies

Pulse Oximeter 60,000

Diabetes 18.2 million $132 billion $2.8 billion in 265companies

Diabetes Self-DiagnosticProducts

18.2 million

UrinaryIncontinence

12.5 million N/A $674 million in104 companies

Micro-remod-eling System,Sling Systems

Not Launched

Kidney Disease 7.4 million $20 billion $775 million in102 companies

EPOGEN 300,000

Stroke 4.8 million $53.6 billion $1.3 billion in 162 companies

Cerovive Not Launched

Cancer 1.4 million $189 billion $9 billion in 992companies

Herceptin 48,000

Influenza andPneumonia

200,000 $5.2 billion $115.6 million in19 companies

FluMist N/A

Examples of Venture Backed Life Sciences Innovation

CASE STUDY --- ARTHRITIS

One in three adults in the United States is afflicted with arthritis. Thereare more than 70 million Americans with arthritis, making it one of themost prevalent chronic health problems and the nation's leading causeof disability among Americans over the age of 15. In fact, arthritis issecond only to heart disease as a cause of work disability. Arthritisresults in 39 million physician visits and more than a half million hospi-talizations annually.

VENTURE CAPITAL INVOLVEMENT IN ARTHRITIS

The venture capital community has invested more than $2 billion in 248companies that are developing treatments for arthritis sufferers. Keyventure capital backed innovations include ENBREL, Remicade, andJoint Replacement.

ENBREL

ENBREL was developed by Immunex (purchased by Amgen in July2002) and launched in December 1998. ENBREL has been shown tobe effective approximately two-thirds of the time, reducing the debili-tating symptoms and preventing further joint damage.

VENTURE CAPITAL FUNDING AND ROLE FOR IMMUNEX

ENBREL was developed through the work of Steven Gillis and ChrisHenney at the Fred Hutchinson Research Institute in Seattle beginningin 1983, 15 years prior to the launch of ENBREL. While Gillis andHenney were trying to develop the product, they faced the prospect ofneeding to break away from academia to start a new company. Inorder to make the transition, they were introduced to "old-line" Seattleinvestors, but these investors were not interested in funding theirresearch. They ultimately were introduced to Steve Duzan, who helpedthem identify prominent venture capitalists willing to invest $1 millioninitially, and $3 million more soon after. In December 1998, ENBRELwas launched and has since helped 250,000 people suffering fromrheumatoid arthritis.

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KEY VENTURE BACKEDINNOVATIONS FOR ARTHRITIS

ENBREL

Remicade

Joint Replacement

The venture capital commu-nity invested $2 billion in 248companies focused onarthritis treatments

IMPACT OF ENBREL

Number of Patients with Rheumatoid ArthritisAnnually: 250,000Total Since ENBREL Launch: 2 million

Estimate of Lives Saved or Improved Due to Treatment with ENBRELAnnually: 234,000Total Since ENBREL Launch: 234,000

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CASE STUDY --- CARDIOVASCULAR DISEASE/HEART DISEASE

Cardiovascular disease affects the lives of 64 million Americans. Today,nearly 30 percent of the U.S. population is afflicted by the heart'sinability to function normally. Over 700,000 Americans died of heartdisease in the United States in 2001, according to the National Centerfor Health Statistics. Yet, heart disease is also the leading chronicpreventable disease in the United States, outpacing all other prevent-able conditions, according to the National Institutes of Health.

VENTURE CAPITAL INVOLVEMENT IN CARDIOVASCULARDISEASE

The venture capital community has invested more than $22 billion in2,479 companies specializing in cardiovascular diseases within the last20 years. Key venture capital backed innovations include angioplasty,minimally invasive by-pass, implantable defibrillators, and Integrilin.

INTEGRILIN

Integrilin was developed by COR Therapeutics (purchased byMillennium Pharmaceuticals in February 2002) and launched in May1988. Integrilin is a life saving drug that prevents platelets fromclumping together, reducing the likelihood of blood clotting and, there-fore, the risk of acute myocardial infarction (heart attack). A keyoutcome from the introduction of Integrilin has been a dramatic shift inthe safety of angioplasty, with shorter hospital stays and fewer surgicalcomplications.

VENTURE CAPITAL FUNDING AND ROLE FOR COR THERAPEUTICS

Venture capital has played a significant role in supporting and devel-oping COR Therapeutics, leading to the successful introduction of thislife saving therapy. The company was founded in 1988 by LeeDouglas, with a team of three scientists from the University of Californiaat San Francisco and one individual from Genentech. In combinationwith angel investors, three venture capital firms raised approximately$10 million to provide COR with the financing needed to explore theviability of its technology.

IMPACT OF INTEGRILIN

Number of Patients with Acute Coronary SyndromeAnnually: 1.3 millionTotal Since Integriln Launch: 7.8 million

Estimate of Lives Saved or Improved Due to Treatment with IntegrilinAnnually: 20,000Total Since Integrilin Launch: 115,000

ANGIOPLASTY

1 million angioplasties weredone in the United States in2001

689,000 men and 363,000women had angioplasties

516,000 cardiac revasculariza-tions, also known as coronaryartery by-pass graft opera-tions, were done in the UnitedStates in 2001

U.S. DEATHS ATTRIBUTABLETO HEART DISEASE

2001

Source: National Center for Health Statistics

700,00029%

Total Annual Mortality = 2.4 million

CASE STUDY --- SURGICAL PROCEDURES

Approximately 25 million surgeries requiring general anesthesia areperformed in the U.S. each year. Prior to 1983, approximately 10,000 to15,000 people were dying or severely brain damaged annually in theUnited States due to undetected oxygenation problems during generalanesthesia. Today, there are virtually no more anesthesia-relateddeaths in the United States due to undetected lack of oxygenation.

VENTURE CAPITAL INVOLVEMENT IN SURGICAL PROCEDURES

The venture capital community invested $32.8 billion in 4,075 compa-nies specializing in surgical procedures and equipment. A key venturecapital backed innovation is pulse oximetry.

NELLCOR PULSE OXIMETER

The Nellcor pulse oximeter was developed by Nellcor Incorporated(now part of Tyco) in 1982 and first sold in 1983. It was designed as asimple to use, non-invasive monitor to continuously measure bloodoxygen saturation, and has become a standard of care for patientmonitoring in operating rooms, intensive care units, in-patient care, andshort procedure units worldwide.

Prior to the advent of pulse oximeters, there was no way to monitorcontinuously the arterial blood oxygen status of a patient. The bloodabsorbs a small amount of the light and the pulse oximeter translatesthat change in light absorption into a number that reflects the amountof oxygen being carried by the arteries. If the oxygen level drops, thepulse oximeter can detect the change in oxygen status before thepatient experiences complications, thus giving an early warning to inter-vene.

VENTURE CAPITAL FUNDING AND ROLE FOR NELLCOR

Venture capital has played a significant role in supporting and devel-oping Nellcor's pulse oximeter. Nellcor was backed by some of themost prominent venture capital firms of the time, including KleinerPerkins Caulfield & Byers, Technology Venture Investors, InstitutionalVenture Partners, and New Enterprise Associates.

9

"Without the support of our venturecapital investors, we would nothave had sufficient resources todevelop and ultimately to produceand support the pulse oximeter."

Jack Lloyd, co-founder andformer President and ChiefExecutive Officer of Nellcor

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CASE STUDY --- DIABETES

There are 18.2 million people in the United States, or 6.3 percent of thepopulation, who have diabetes. While an estimated 13 million havebeen diagnosed, another 5.2 million people are unaware that they havethe disease. Altogether, diabetes contributed to more than 200,000deaths in 2000.

The cost associated with diabetes is $132 billion. Indirect costs relatedto diabetes (which include disability, work loss, and prematuremortality) are estimated to cost the U.S. economy $40 billion.

VENTURE CAPITAL INVOLVEMENT IN DIABETES

Over the past 20 years, the venture capital community has investedmore than $2.8 billion in 265 companies specializing in products fordiabetes. Also, venture capitalists have invested nearly $500 million in46 diabetes testing companies during the last 20 years. Key venturecapital backed innovations include human recombinant insulin andglucose monitoring devices like Free Style and One Touch.

GLUCOSE SELF-MONITORING

Since there is no cure for diabetes, the most effective way to control thedisease and prevent complications is regular testing of blood sugarlevels. Until the early 1980s, testing for blood glucose levels waspainful, expensive, and inaccurate. Lifescan introduced the first meterwith a digital read-out in 1983. This device reduced the pain andincreased the accuracy of glucose self-monitoring. As a result, themillions of Americans with this condition could check their blood sugarlevel more effectively and more regularly.

Other products have been developed to reduce the pain associatedwith the test even further. Therasense (now part of Abbott) launchedthe FreeStyle glucose self-monitoring system in 2001. This is a majorimprovement from testing that requires pricking a finger, one of themost painful places from which to extract blood. As a result of thesedevices, millions of diabetics in the United States and around the globeare able to manage their blood sugar more effectively, reducing oreliminating the many complications of diabetes.

DIABETES

18.2 million Americans havediabetes

6.3 percent of the U.S.population has diabetes

Diabetes costs $132 billionper year

The venture capital commu-nity invested more than $2.8billion in 265 companies indeveloping products fordiabetes

Human recombinant insulinand glucose monitoringdevices are examples ofventure backed innovationsfor diabetes

CASE STUDY --- STROKE

More than two million strokes occur each year in the world's majorindustrialized countries. About 700,000 of these occur in the UnitedStates. Health statistics reveal that stroke accounts for 1 out of every 15deaths in the United States. A stroke is an acute medical conditioninvolving the death of brain tissue caused by blockage or rupture of theblood vessels leading to, or within, the brain. It is the third leadingcause of death in most developed countries, and the leading cause ofdisability in adults. The risk doubles with each decade after age 35.The annual cost of stroke-related care in the United States exceeds $51billion.

VENTURE CAPITAL INVOLVEMENT IN STROKE

The venture capital community has invested nearly $1.3 billion in 162companies specializing in strokes. Key venture capital backed innova-tions include MRI and TPA.

CEROVIVE

Cerovive is an intravenous drug for the treatment of acute ischemicstroke that is being evaluated in Phase III clinical trials by Renovis andits licensing partner, AstraZeneca. Cerovive is being studied as a neuro-protective to see if it can protect the brain cells from the damagetriggered by a stroke. If Cerovive demonstrates neuroprotective benefitsin stroke patients, it may also be evaluated in a range of other braininjuries.

VENTURE CAPITAL FUNDING AND ROLE FOR RENOVIS

Renovis has been able to attract a syndicate of top tier venture capitalfirms, including Venrock, Flagship, Alta Partners, Easton Hunt, MDS, andSkyline Ventures. Renovis closed five funding rounds prior to its initialpublic offering in February 2004. Both the positive human clinical dataand the caliber of the venture capitalists involved in the earlier roundsled to the successful February 2004 initial public offering.

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VENTURE CAPITAL NON-MONETARY SUPPORT FOR

RENOVIS

Executive Recruiting

Strategic Guidance

Maintenance of Long-TermFocus

“Venture capitalists wereabsolutely behind significantlydeparting from the originalbusiness model. They werefocused on the long-term successand confident enough in thepeople they backed that theywould pull it off.”

Corey Goodman, PhD, co-founder & President and ChiefExecutive Officer, Renovis

CASE STUDY --- CANCER

Over 18 million new cases of cancer have been diagnosed since 1990,and an estimated 1.4 million new cases will be diagnosed in 2004alone. The nation's leading cancer organizations report thatAmericans' risk of getting and dying from cancer continues to decline,and survival rates for many cancers continue to improve. Death ratesfrom all cancers combined dropped 1.1 percent per year from 1991 to2001, according to the Annual Report to the Nation on the Status ofCancer.

VENTURE CAPITAL INVOLVEMENT IN CANCER

The venture capital community has invested more than $9 billion in 992companies in the last 20 years that have developed or are developingnew treatments and detection methods for all forms of cancer. Keyventure capital backed innovations include Doppler Ultrasound,Minimally Invasive Biopsy, PSA, MRI, and Herceptin.

HERCEPTIN

Herceptin was launched by Genentech in 1988. This groundbreakingtreatment offers hope to the more than 50,000 women diagnosed withmetastatic breast cancer associated with HER2 overexpression eachyear. Breast cancer is the most common form of cancer in women andis the second leading cause of cancer death in women, exceeded onlyby lung cancer.

VENTURE CAPITAL FUNDING AND ROLE FOR GENENTECH

The initial venture capital investment in Genentech not only led to theirearly groundbreaking products, but enabled the company to establishitself and develop a second generation of life saving products. Theoverwhelming success of Genentech created a new regional expertisethat spawned an entire industry in the San Francisco Bay Area after thecompany was founded in 1976. Today, the Bay Area is home to 820life sciences companies, many spawned directly by Genentech.

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U.S. DEATHS ATTRIBUTABLETO CANCER

2001

Source: National Center for Health Statistics

554,00023%

Total Annual Mortality = 2.4 million

IMPACT OF HERCEPTIN

Number of Patients with Breast CancerAnnually: 50,000Total Since Herceptin Launch: 300,000

Estimate of Lives Saved or Improved Due to Treatment with HerceptinAnnually: 8,000Total Since Herceptin Launch: 48,000

METHODOLOGY

This study was commissioned by the National Venture CapitalAssociation. The authors of Patient Capital: Improving the Lives ofMillions --- The Vital Role of Venture Capital in Life Science Innovation areAnthony Solis, Managing Director of Pacific Bridge Life Sciences andDavid E. Goodman, M.D., of the Weinberg Group.

This publication was prepared by Content First, LLC, a full-serviceresearch firm based in Washington, DC. It provides research services totrade associations, businesses, law firms, consulting firms, and thepublic affairs community. Content First utilizes a unique process thatmelds solid research and analysis with presentation and communicationto bring data to life. For more information about Content First, pleasevisit www.contentfirst.com.

National Venture Capital Association

The National Venture Capital Association (NVCA) represents approxi-mately 450 venture capital and private equity firms. NVCA's mission isto foster greater understanding of the importance of venture capital tothe U.S. economy, and support entrepreneurial activity and innovation.According to a 2004 Global Insight study, venture backed companiesaccounted for 10.1 million jobs and $1.8 trillion in revenue in the U.S. in2003.

NVCA represents the public policy interests of the venture capitalcommunity, strives to maintain high professional standards, providesreliable industry data, sponsors professional development, and facili-tates interaction among its members. For more information about theNVCA, please visit www.nvca.org.

NATIONAL VENTURE CAPITAL ASSOCIATION1655 Fort Myer Drive, Suite 850Arlington, Virginia 22209-3114Phone: 703-524-2549Fax: 703-524-3940www.nvca.org

Nancy SaucierMedical Industry Groupnsaucier@nvca.org

National Venture Capital Association1655 Fort Myer Drive, Suite 850Arlington, Virginia 22209-3114Phone: 703-524-2549Fax: 703-524-3940www.nvca.org