JDRF Therapeutic Ventures

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ACCELERATING LIFE-CHANGING

BREAKTHROUGHS TO CURE, TREAT

AND PREVENT TYPE 1 DIABETES AND

ITS COMPLICATIONS

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A NEW STRATEGIC PLAN:

EffectiveAugust 30, 2015

A RESTRUCTURED ORGANIZATION:

Improved efficiency and productivity with lower costs

INCREASE IN LEADERSHIP GIVING:

Dedicated infrastructure to support high-level giving

LAUNCH JDRF THERAPEUTIC VENTURES:

New venture philanthropy approach with donors as active partners

SCALE LEVERAGE OF PUBLIC AND CORPORATE CAPITAL:

Use JDRF Therapeutic Ventures to exploit a proven strength

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How We Get There

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ico

THE OPPORTUNITY

Changing the Course of T1D

PROGRAM THERAPEUTIC GOAL SHORT-TERM (5-7 YEAR) DELIVERABLES

ARTIFICIAL

PANCREAS

Fully-automated system combining continuous glucose

monitor and pump with algorithms to maintain near-normal

glucose levels with minimal user effort

Patient access and reimbursement of predictive low-

glucose suspend and treat-to-range systems; develop, test

and commercialize cell phone controlled, integrated seven-

day micro-patch pump/CGM

ENCAPSULATIONRestoration of insulin independence with replenishable

encapsulated beta cell product without immunosuppression

Clinical proof of concept of stem cell-derived islet & islet

progenitor transplants from multiple companies; multiple

companies within 5-10 years of product availability

GLUCOSE

RESPONSIVE

INSULIN

Change T1D treatment paradigm to once a day injection

resulting in near-normal glucose levels with minimal glucose

measurement, thereby reducing patient burden, short-term

risk, and long-term incidence of complications

Establish clinical proof of concept of at least one new GRI

technological approach; one or more companies in addition

to Merck on path to near- to mid-term commercialization

PREVENTION

Eliminate T1D as a threat to the next generation through

strategies and therapies to intercept and disrupt disease

onset and progression

Development of diabetes prevention vaccines and

therapies, including alteration in intestinal microbiome -

induced immunoregulation; clinical proof of concept withcommercialization in 7-10 years

BETA-CELL

RESTORATION

Return of biological insulin production through restoration

and regeneration of functional beta-cell mass combined with

autoimmunity mediation

Clinical validation of drug repurposing to reverse disease;

Development and proof of principle of gene edited human

stem cell derived islets resistant to immune attack

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THE NEED

Changing the Course of T1D: $375-$625MM

PROGRAM SHORT-TERM (5-7 YEAR) DELIVERABLES INCREMENTAL FINANCIAL NEED

ARTIFICIAL

PANCREAS

Patient access and reimbursement of predictive low-glucose suspend and

treat-to-range systems; develop, test and commercialize cell phone

controlled, integrated seven-day micro-patch pump/CGM$50-$100 MM

ENCAPSULATION

Clinical proof of concept of stem cell-derived islet & islet progenitor

transplants from multiple companies; multiple companies within 5-10 years

of product availability$50-$75 MM

GLUCOSE

RESPONSIVE

INSULIN

Establish clinical proof of concept of at least one new GRI technological

approach; one or more companies in addition to Merck on path to near- to

mid-term commercialization$25-$50 MM

PREVENTION

Development of diabetes prevention vaccines and therapies, including

alteration in intestinal microbiome -induced immunoregulation; clinical

proof of concept with commercialization in 7-10 years$100-$150 MM

BETA-CELL

RESTORATION

Clinical validation of drug repurposing to reverse disease; Development and

proof of principle of gene edited human stem cell derived islets resistant to

immune attack$150-$250 MM

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MULTIPLYING THE IMPACT

JDRF Effectively Leverages Donor Funds

100.9 112.2 26.25.0

247.3 267.8

107.2

1,642.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Industry Partners Foundations and Non-

Profit Partners

Foreign Government

Support

US Government

Support

Million

s

Attracted Funding

JDRF Funding

2000

2022

2.5 2.4 4.1 Multiplier


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CF FUND: In 1998, the CFF established a Therapeutics Development Program, apioneering partnership with the biotech community intended to expedite CF research

and the development of drugs to treat CF

VERTEX/KALYDECO:In return for royalty rights, the CFF invested $150 million in VertexPharmaceuticals to develop the drug Kalydeco, effective in patients whose CF is caused

by a specific gene mutation. Following FDA approval of Kalydeco in 2012, CFF sold itsroyalty rights at a profit and reinvested the funds in its research program

JOE ODONNELL: Chairman of the Milestone to a Cure major gifts campaign and

raised over $175 million for the Cystic Fibrosis Foundation. He currently chairs the

Milestones II campaign and plans to raise additional $75 million by the end of 2015

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THE VEHICLE

Modeled After Cystic Fibrosis Foundation

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STRUCTURE: Single member LLC sponsoring a series of closed-end therapeutic funds;maximum expense load of 10% over fund life.

FUNDING:Tax-deductible $500,000 contribution units; returns accrue to fund forreinvestment or distribution to JDRF; Investments may include equity, royalty-based,

low-interest loans with warrant coverage, and/or pilot grants with shared IP or

commercial rights.

OPERATIONS: Separate entity for liability purposes; initially staffed by Steven Griffen,M.D., JDRF VP, Translational Development & Jit Patel, JDRF VP, Research Business

Development; facilities, administration and finance contracted from JDRF.

GOVERNANCE: Five member JDRF Therapeutic Ventures board appointed by JDRF;fund-specific oversight by scientific and device/bio-pharma experts, early stage

investors, and selected donors.

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THE VEHICLE

JDRF Therapeutic Ventures, LLC

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Leverage JDRFs knowledge, network, staff and portfolio, knowledge to

identify most promising opportunities

Create T1D-focused venture philanthropy funds to accelerate development,

commercialization and adoption of therapies

Leverage capital through co-investments with universities, financial and

strategic investors

Utilize and fund JDRF for regulatory, reimbursement, and adoption efforts

Re-invest returns in therapeutic funds

JDRF THERAPEUTIC VENTURES

Change the Course of T1D

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PARTICIPATION:

Advisory board seats; participation in fund investment strategy

COMMUNICATION:

Quarterly progress reports; annual donor briefing; additional access toJDRF staff and researchers

NAMING OPPORTUNITIES:

Fund-specific opportunities for leadership gifts

JDRF THERAPEUTIC VENTURES

Donor Engagement & Recognition

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THANK YOU

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Documents

JDRF Therapeutic Ventures