creating world class companies from university research

Financing for University Spin Outs

The listed commercialisation companies

• IP Group- (10 Universities)

• Imperial Innovation- (4 Universities)

• Fusion IP- (2 Universities)

The Fusion model

• Fusion IP creates value out of university IP by the creation of spin-out companies

and licensing

• We have two long-term exclusive pipeline agreements

• With over 20 companies in our portfolio:

To date

• 24 companies

• £28 million raised for Fusion

• £40 million raised for the portfolio

• 1 exit

The Fusion model

1

✴ Assign research

contracts/recruit

✴ Insert rower and

provide

management

experience

✴ Provide initial

funding

Fusion IP

Third Party Investors

Investment partners

Up to £200k

As required

2

✴Recruit senior

management

✴Develop and grow

the business

✴Raise third party

funding

Up to £500k

As required

As required

3

✴Reduce

involvement

✴Trade sale or IPO

As required

As required

The Exit

• $34 million

• 200 fold return

Changing the way we develop drugs

Part of the group

Part of the group

THE COMPANY

World leading provider of Physiologically based pharmacokinetic and pharmacodynamic modeling;

Simulation software/informatics platforms; and

Education and scientific consultancy

Industry and regulatory standard for In-silico prediction of in-vivo drug-drug interactions

Only company integrating sophisticated patient-based biological variability Into pharmacokinetic modeling through the generation of virtual patient populations

Bridging the gap Between pre-clinical and clinical development

International reputation for scientific excellence

Licensed by 17 of the top 20 pharma Including all of the top 10

Ranked 15th fastest growing company in the UK

Part of the group

SALES, PBT and CASH GROWTH (forecast)

Forecasts for 2012 and 2013 are based on the most recent reasonable estimates by Simcyp

Some Cardiff companies

Part of the group

Novel, oral, hormone replacement therapies based on known drugs

Company summary

Diurnal creates high-value hormone therapeutics

− Based upon approved drugs

− Toxicity known, faster and less expensive route to market

− Using proprietary formulations

− Creates IP position, market exclusivity

− To be administered in novel physiological treatment regimes

− Technology ‘delivers’ hormone when the body requires it

Diurnal’s first market

− ‘Congenital Adrenal Hyperplasia’ (CAH)

© Copyright Diurnal plc. 2011. All rights reserved. 13

Current treatment of CAH

© Copyright Diurnal plc. 2010. All rights reserved. 14

0

100

200

300

400

500

600

700

800

900

1000

06 10 14 18 22 02

Time (24 Hour Clock)

Seru

m H

ydro

cort

isone (

nM

)

10 14 18 22 02 06

Lead Product - ‘Chronocort’

For the treatment of ‘CAH’ (a chronic disease)

− Patients cannot make ‘cortisol’

− Amount of cortisol required is subject to diurnal variation

− Current treatment does not account for variation

‘Chronocort’ tablet

− Formulated to release cortisol to mimic diurnal variation

− Successful Phase 1b study (Jan 2012)

− Complete Phase 1 by June 2012 (supported by Pfizer)

− Complete Phase 2 by June 2013

− Potential to licence from 2013

− Partner could begin to sell ‘Chronocort’ in 2015

− Total market size for cortisol replacement >$250M

© Copyright Diurnal plc. 2011. All rights reserved. 15

Advanced Ultrasound Training

16

Changing the way we teach ultrasound

Part of the group

17

Changing the way we teach ultrasound

Real feel haptic simulates patient

PC becomes 24/7 tutor using real patient scans

Sales to date

• Launched for sale in July 2010

• 15 sales to UK hospitals

• First sales to US and Europe made

• Over 50 hospitals in discussion

• Three distributors signed for

• Far East

• Australasia

• Benelux

ESTIMATED MARKET POTENTIAL OF c. £400m*

Changing the way we teach ultrasound

Demonstration to Lord Darzi in Dubai

*Based on all hospitals using the system

Multiple future applications

Gynaecology

Obstetrics

Changing the way we teach ultrasound

Launched 2010

Launched 2010

Prostate

Paediatric

Cranial

Available 2013

Available 2013

General

Abdomen Available 2012

INTERNAL SCANNING

Obstetrics Available 2012

EXTERNAL SCANNING

Confidential

Novel laparoscopic tools

Part of the group

Confidential Confidential

• Maintains a clear visual field in minimal access surgery

• Based upon existing, widely available technology

• Clears all types of surgical matter

• Standalone reusable unit

• Disposable peripherals

• In commercial discussions

• Product launch 4Q 2012

Innervision

21

Confidential Confidential

• Estimated 4m operations laparoscopically USA and EU: – Majority use devices that create smoke

• Total market opportunity >£175m pa

• Plus upside revenue of: – Other non-USA/EU territories

– Non-laparoscopic MIS procedures

– Open surgical procedures

– Integration into surgical instruments

– Up-sell of product range (if made exclusive)

• Two other laparoscopic devices under development

Commercial potential

22

Other Cardiff companies

• Morvus

• Progenteq

• Abcellute

• Mesuro

Summary

• Maturing portfolio with key companies coming to fruition

• Effective infrastructure for a new generation of spin-outs

• Succession of exits to provide the medium and long-term

funding

• 3 new Cardiff companies expected over the next 3 months

Fusion IP team

Chairman

CEO

Executive

team

Managers

Doug Liversidge

David Baynes

Dominic

Griffiths

Andy

Cheer Andrew

Tingey

Peter Grant

Sheffield

Non-execs Alison Fielding

IPG

Bob Rabone

University of Sheffield

Mike Davies

Cardiff University

Stuart Gall

Cardiff

• creating world class companies from university research