BRINGING UNTAPPED MEDTECH DISCOVERIES TO MARKET

CONFIDENTIALQUATTROCENTO EXECUTIVE SUMMARY JUNE 2013

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BRINGING UNTAPPED MEDTECH DISCOVERIES TO MARKET

Executive summary June 2013


2QUATTROCENTO'S CAPITAL RAISING OF 15 M€Quattrocento is looking to develop its capacity to build and create innovative medtech companies with new shareholders who wish to bring their know-how and networks of relationships to the process.

Created in 2010 by experienced entrepreneurs in the medtech sector, Quattrocento transforms untapped discoveries of the leading public research labs in Paris into innovative medical technology products with strong commercial value, with a particular focus on measurement instruments for biotech research and diagnostic devices.

OBJECTIVECreate and build around ten subsidiaries in the next 5 years, of which at least 1 or 2 will achieve a substantial market presence and achieve a stock exchange listing

USE OF FUNDS • Create and launch new subsidiaries: 4

over the next 24 months• Finance the development of the 4

existing subsidiaries alongside new investors (external investors)

• Reinforce the operational team with a technology/market analyst and a financial controller


3QUATTROCENTO, INDUSTRIALIST IN EARLY-STAGE DEVELOPMENT OF MEDTECH COMPANIES Paris-based Quattrocento’s founders have assembled the resources and expertise to “industrialise” the seed stage of start-ups such that overcomes the obstacles to getting innovative products to market, more quickly and more cheaply:

• Creation and development of businesses in close collaboration with researchers wishing to remain in their research labs

• End-to-end process of execution and financing – Early evaluation of commercial potential; protection of intellectual property, development of an economic demonstrator, creation, as a subsidiary of Quattrocentro, of the company which will commercialise the product

• Highly experienced team with all the skills and experience necessary to bring each project to fruition : science, marketing, development, strategy, intellectual property


4A POWERFUL COMBINATION OF OPTIMAL ECOSYSTEM AND RESOURCESExcellent sourcing giving early access to research projects• Based in the Latin Quarter of Paris, in

close proximity to the leading research establishments, the Quattrocento team has close links with researchers, built over 15 years of collaboration

• Good relationships with the technology transfer offices, which facilitates the development of the intellectual property of Quattrocento companies

Experienced entrepreneurial team• Highly complementary founding team

members, with a blend of scientific, industrial and entrepreneurial expertise, having already collaborated on a medtech startup, sold in 2011 at an attractive price

• A committee of shareholder-experts, which advises on projects, and to whose members Quattrocento can outsource project requirements

Efficient use of resources• Pooling of expertise across

Quattrocento’s subsidiaries• Financing of subsidiaries that closely

follows the intensity of each phase of development

Active management of the portfolio of subsidiaries, with the flexibility to arbitrate between the continued development or sale of subsidiaries at every stage of the process


5AN INDUSTRIAL PROJECT WITH INDUSTRIAL REVENUESQuattrocento is structured as an industrial holding company with equity of 1.3M€

It derives its revenues from • Management fees from subsidiaries in

the early stages of development• Dividends from profitable subsidiaries

…and its return on investment from the sale of portfolio companiesQuattrocento will propose, on the occasion of each exit, to distribute a part of the resulting capital gain to it shareholdersInvestment in the subsidiaries will be made only via the holding company.


6RAPID RESULTS

Some examplesSUBSIDIARY 1

An innovative electrochemical system for detecting biological molecules (DNA, RNA, proteins), in advanced discussions with a major international distributorSUBSIDIARY 2

Microfluidic systems for cell tests (pharma screening, toxicology), prototyped and ready for industrialisation

4 subsidiaries created of which one is already profitable in 2 years


7QUATTROCENTO IDENTIFIES OPPORTUNITIES IN THE UNEXPLOITED NUGGETS OF FRENCH RESEARCH…France has world class research but too few results of this research are transformed into innovative products due to two major obstacles specific to the country:

• Complexity of the process of technology transfer (patent filing and negotiation of patent licenses) in the multi-layered system of French research and innovation

• Lack of entrepreneurs with combined competencies in science, industry and business

A particularly acute problem in the medical technology sector (“medtech”), despite the opportunities that a global market of US$200 billion with sustained growth present.


8… TO CREATE VALUABLE PRODUCTS FOR THE MEDTECH MARKET, A MARKET EXPERIENCING STRONG GROWTH AT THE INNOVATIVE END


9EXECUTIVE TEAM BEHIND QUATTROCENTOBERTRAND FOURQUET - President Prior to founding Quattrocento, he founded and managed Echosens, which develops innovative cirrhosis diagnostic equipment. Created in 2001, Echosens was sold 10 years later at an attractive price. Bertrand had previously gained business development experience creating and developing the Spanish subsidiaries of well known consumer brands. He began his career in mergers and acquisitions at Lazard Brothers and JP Morgan after graduating from ESSEC, one of France’s leading business schools

LUC TALINI - Chief Executive OfficerA founder of Quattrocento, Luc was previously CTO of Echosens. He has held a number of senior positions in leading research institutions. He worked for the technology transfer office of Paris Diderot university after leading the CEDIB project (creation of a centre for innovation in bioengineering). He had his first entrepreneurial experience with Genescore, which he created following his post at ESPCI in the neurobiology laboratory. Luc is an engineer and holds a doctorate in physics.

DAVID POIZAT - Technology And Quality DirectorHe joined Echosens in 2003 as head of industrialisation and production of the Fibroscan medical system and quickly took over management of the company’s CE marking and Quality systems (obtaining ISO 13485 in 2005), finally directing the after-sales department. David is an Engineer in physics.


10QUATTROCENTO’S ADVISORY COMMITTEE

These experts have over 220 years of combined experience:Technical consulting; 3 PhDs: in Chemistry, Physics and Biomedicine; an expert in industrial computing; an expert in industrialisation and quality in the biomedical sector; a specialist in communication and design, a human resources expert, specialists in finance and marketing in the innovation/start-up sector, specialists from non-medical sectors able to bring cross-sector knowledge and contacts, a specialist in fundraising and a market researcher in the medical sector.

12 experts, all shareholders, advise on the projects as a committee and can also individually provide professional services to portfolio companies.


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THE FIRST SUBSIDIARIESElice l Alvéole l Thamis l Azalée


12Technology

DETSCAN™ is a new technology for the electrochemical detection of biological molecules (DNA, RNA, proteins). It offers the advantages of technology from the electronics industry: robustness, the option of miniaturisation, and low production costs.Field of application/market

Elice will develop a robust, multi-purpose and easy-to-use DNA detection device for routine use by researchers and technicians in public and private research laboratories, and for molecular diagnostics.State of progress

In the launch phase, 1 demonstrator has been developed and a Chief Operating Officer recruited. Elice currently requires €3M to put its first product into production and bring it to market in 2014.Aims

Financially stable company by 2015, 2017 turnover = €9MPrizes/accolades

• Innovation prize from Diderot Valorisation 2006

• Winner of the National Competition for Aid in the Creation of Innovative Technology Companies (2009 and 2010)

• Member of the Paris Biotech Santé incubator (2009)

• Scientipôle Initiative (2010)

ESTABLISHED: October 2009

ORIGINATING LABORATORY: Laboratory of Molecular Electrochemistry, Université Paris-Diderot

RESEARCH TEAM: Damien Marchal (Lecturer), Benoît Limoges (Head of Laboratory)

INTELLECTUAL PROPERTY: 3 patents

WEBSITE: elice.fr


13Technology

“Microsticker” is a technology enabling the development of microfluidic devices with the following features:

• the ability to generate controlled gradients of chemical species on top of culture cells;

• cells are cultivated on conventional media (Petri dish, microplates) and under conventional conditions;

• the cells are not disturbed by the hydrodynamic flow.Fields of application/market

Tests on live cells for:

• toxicology;

• stem cells and regenerative medicine;

• neurobiology and the search for molecules which are effective against neurodegenerative diseases.State of progress

In the seeding phase, development of a demonstrator is in progress under the framework of an R&D contract with the Foundation de Pierre-Gilles de Gennes. A market positioning analysis is also in progress. The aim is to bring a first product to market in 2014.Prizes/accolades

• Member of the Paris Biotech Santé incubator (2011)

ESTABLISHED: December 2010

ORIGINATING LABORATORIES: Department of Physics and Biology at the École Normale Supérieure (CNRS, ENS), Institut des Neurosciences de Bordeaux (CNRS UMR5297)

RESEARCH TEAM: Maxime Dahan (Head of Research at CNRS), Vincent Studer (CNRS Researcher), Jean-Christophe Galas (CNRS Researcher)



14Technology

Thamis’ technology is a patented method for measuring particle flow, based on the use of a matrix of scintillating plastic fibres connected to a digital camera. Thamis’ hodoscopes make it possible to measure beam profile and intensity. They have a very good dynamic range, are easy to use and require very little maintenance.Field of application/market

Quality control of the particle beams used in hadrontherapy.Hadrontherapy is a cancer treatment using a beam of particles (protons, carbon ions) to destroy X-ray-resistant and inoperable cancer cells. This highly effective method will have taken nearly 50 years to get off the ground on account of its infrastructure requirements which are both large (particle accelerator) and expensive (€100-150M). Since 2000, centres have been developing regularly across the globe. It is deemed that one centre can serve 10 million habitants; currently, in France, there are 2 centres (Orsay, Nice) in operation and 3 projects (Lyon, Caen and Toulouse).State of progress

At an advanced stage of the launch phase, Thamis is in the process of producing a series of hodoscopes for MedAustron, an Austrian centre which is under construction.Thamis aims to secure 1 order per year over the next 5 years.

ESTABLISHED: September 2011

ORIGINATING LABORATORIES: Prince-Ringuet Laboratory, Polytechnique/IN2P3/CNRS

RESEARCH TEAM:

Maurice Haguenauer (Head of Research at CNRS/CERN),

Patrick Poilleux (CNRS Technician)

INTELLECTUAL PROPERTY: 1 patent


15Technology

Azalée’s patented technology is based on the use of ultrasound to probe cortical bone and obtain structural and mechanical parameters. Field of application/market

Medical devices to monitor the quality of cortical bone. A first application is currently under development to assess the fragility of the cortical bone in the context of osteoporosis, which affects approximately 200 million people across the globe, 40 % of whom are women over 50 years of age (and 20 % men). The fight against osteoporosis, on a constant rise due to the ageing of the population, is deemed in developed countries to be a major public health issue.State of progress

Nearing completion of the assessment phase, a first demonstrator is being used in the laboratory to conduct ex-vivo tests on bones. The aim is to develop a demonstrator intended for a clinical pilot trial scheduled to start at the Cochin Department of Rheumatology in 2013, with a view to being brought to market in 2015.

ESTABLISHED: Summer 2012

ORIGINATING LABORATORY: Parametric Imaging Laboratory, Université Pierre-et-Marie-Curie, CNRS (UMR 7623)

RESEARCH TEAM: Pascal Laugier (Head of Laboratory),

Jean-Gabriel Minonzio (CNRS Researcher),

Maryline Talmant (CNRS Researcher),

Emmanuel Bossy (Lecturer at ESPCI)



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SAS au capital de 1.371.024 euros68, Bd de Port-Royal 75005 Paris R.C.S. 522 012 939lequattrocento.com

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BRINGING UNTAPPED MEDTECH DISCOVERIES TO MARKET