Minimums. Q3 2008bionest.com/wp-content/uploads/2015/10/Bionest_Financial_Advisor… · Bionest MPV™ (Market Pipeline Value) is a proprietary benchmarking approach that compares

Contact:[email protected]

Bionest Partners19 rue du Général Foy75008 ParisFranceTel: +33 1 58 05 14 00

Tower 49, 12th floor12 East 49th StreetNew York, NY 10017 USATel: +1 (646) 386 2900

Frédéric Desdouits

Managing Partner

[email protected]

Georges-David Medina

Partner

[email protected]

Catherine Pichereau

Manager

[email protected]

Rodolphe Journoud

Associate

[email protected]

Thomas Ranson

Associate

[email protected]

Louis Labriffe

Analyst

[email protected]

Myriam Makhloufi

Analyst

[email protected]


Minimums.

Q3 2008

► Research-based Companies Valuation

Strong and steady trend in anti-infectious

► Initial Public Offerings

Counting withdrawals, not IPOs

► Follow-on Offerings

Infectious, definitely

► Equity Indices and Sub-Sector Trackers

Oncology on the rise while Vaccines are plunging

Equity MarketsPages 2 to 5

Mergers & Acquisitions in Biotech

► Transactions

It is deal time in small, mid and large Biotechs. Roche on fire!

► Partnerships

Big value in preclinical and Phase I

Page 6 & 7

► Venture Capital

Over €200m invested this quarter in Europe

► Buy Outs

Smaller deals but still active

Private Equity ActivityPage 8 & 9

Page 10

► We bring high quality financial services to the healthcare industry

Bionest Selected Completed Transactions

Financia

l Adviso

ry News

letter

4

6

8

10

12

14

16

18

20

39373533312927252321191715131197531

# of 3Q08 Weeks

Point Value in EURm

Vaccines Cardiovascular Neurology

Infl. & Autoimmune Anti-Infectious Cancer

4

6

8

10

12

14

16

18

20

39373533312927252321191715131197531

# of 3Q08 Weeks

Point Value in EURm

EU & US EU US

Global

Average

Cardiovascular

Neurology

Infl. &

AutoimmuneAnti-Infectious

Vaccines

Cancer

0

100

200

300

400

500

0 10 20 30 40 50 60

Average Pipeline Size (*)

Average MPV in EURm

192

24

29

11

34

80

26

+20%

+18%

Research-based Companies Valuation


September 2008Page 2 of 10

Equity Markets

Global Overview

EU vs. US – All Therapeutic Areas EU & US – Breakdown by Therapeutic Area

Regional

What is Bionest MPVTM?

► Bionest MPV™ (Market Pipeline Value) is a proprietary

benchmarking approach that compares the value of 200

research-based, mainly loss making, publicly listed

companies in Europe and in the United States

► Bionest MPVTM is based on a pipeline scoring system and the

value of publicly traded companies

► This approach allows to quickly assess the value of a clinical-

stage portfolio of products with a limited amount of information

Regional & Therapeutic Historical Breakdown

* Based on Bionest's proprietary scoring system Note: Bubble size represents the number of companies

Sources: Bionest Research, FactSet, BioCentury, Dowjones

► Parameters remain the same since last quarter except for Vaccines

► Average Vaccines MPV per company dropped from 260 to 200


► Anti-Infectious is the big winner so far this year, with a jump of value of 50%

► Interestingly, Vaccines are loosing grip since last summer

Bionest MPV™ Universe

138

54

0

100

200

300

400

0 10 20 30 40

Average Pipeline Size (*)

Average MPV in EURm

US

EU

Cancer

39%

Neurology

17%

Anti-Infectious

14%

Cardiovascular

12%

Inflammatory &

Autoimmune

11%

Vaccines

5%

Others

2%

Therapeutic Area

Genfit

Alternext

Cytotools

Frankfurt

4SC

Frankfurt Zurich

NorDiag

Oslo Copenhagen

BioAlliance Wilex

Euronext Euronext Frankfurt

Prostrakan Ipsen Bioxell AlphaHelix Santhera Vita 34 Vivalis

London Euronext Zurich Stockholm Zurich Frankfurt Euronext

Topotarget Exonhit Curalogic Biovitrum Innate Tigenix AMT

Copenhagen Alternext Copenhagen Stockholm Euronext Euronext Euronext

Ardana Devgen NascaCell Genovis Biofrontera Cosmo Exiqon Hybrigenics

London Euronext Oslo Frankfurt Stockholm Frankfurt Zurich Copenhagen Alternext

Intercell Arpida Orexo Geneart Liponova Algeta Addex Merrion PCI Biotech

Vienna Zurich Stockholm Frankfurt Oslo Frankfurt Oslo Zurich Dublin Oslo

Paion Galapagos Speedel Jerini Renovo OctoPlus Cellectis GenOway MolMed Ipsogen

Frankfurt Euronext Zurich Frankfurt London Euronext Euronext Alternext Alternext Euronext Milan Alternext

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Biotec

Pharmacon

Onco

Methylome

Newron

Pharma

Lifecycle

Pharma

AblynxThrombo-

genics

Clavis

Pharma

234

277

135

430

221

388

106

641

469

749

37

360

61

100%

55%

77%

82%

50%

64%

55%

31%

30%

28%94% 019

45%

23%

100%

18%

100%

50%

36%

45%

69%

70%

100%

72%

0

100

200

300

400

500

600

700

800

1Q052Q053Q054Q051Q062Q063Q064Q061Q072Q073Q074Q071Q082Q083Q08

Cumulative Amount Raised

Bars - in EURm

0

200

400

600

800

1 000

1 200

1 400

Last 12 Months Cumulative Amount Raised

Lines - in EURm

3

5

1

8

65

10

5 5

3

12

4

2

4

2

5

5

2

6

8

10

2

7

1

7 7

5

10

5

11

7

16

13

15

2

10

2

0

2

0

2

4

6

8

10

12

14

16

18

20

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q061Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Cumulative Number of IPOs

Bars

0

5

10

15

20

25

30

Last 12 Months Cumulative Number of IPOs

Lines

Initial Public Offerings



Equity Markets

Cumulative Amount Raised and Number of IPOs

European Biotech Listings

Q3 2008 Listing Focus

► The IPO window clearly shut this

quarter, confirming previous trends

► We do not see the IPO market

reopening before H2:09

► The number of companies lining-up

for the next window is growing

rapidly in Europe



EU vs. US – Amount Raised EU vs. US – Number of IPOs

US EU US EU


Company Country

Company Name

Trading Place

� How to read it?

Alternext

Eurolist A

Eurolist B

Eurolist C

Other Exchanges

Trends

► In the US, Fluidigm, XDx, Codexis,

Insys, and Zogenix pulls their IPO

► In Europe, only Kedrion disclosed its

postponed listing

► After 8 IPOs withdrawn in Q1 & Q2,

the rhythm tends to accelerate

6 withdrawn IPOs in Q3

Follow-On Offerings



Equity Markets

Europe

United States

Q3 2008 Follow-On Focus




0

53

0

150

55

99

0 0 0

35261116

253

4

1

11

2

4

1

2

1

0

50

100

150

200

250

300

350



Bars - in EURm

0

50

100

150

200

250

300

350


Lines - in EURm

735 709

1 039

771

1 950

467

1 062

537

941

707

468

693

377

537

14 10

16

16

12

11

11

9

20

17

11

7

7

2

4

640

500

1 000

1 500

2 000

2 500



Bars - in EURm

0

1 000

2 000

3 000

4 000

5 000


Lines - in EURm

► Despite terrible

market conditions

Vertex

(Nasdaq:NRTX)

performed well after

its fund raising

thanks to good results

on second lead

compound Telaprevir

(Ph II/HCV Infection)Data in EURm

Company Country Therapeutic Area FO DateMarket Cap

at Deal

Amount

Raised

Share Price Variation

since Deal

SkyePharmaSKP

GB Drug Delivery 25/09/2008 41 26 -1%

VertexVRTX

US Infectious, Cancer 18/09/2008 2 885 155 +22%

AcordaACOR

US CNS 07/08/2008 575 85 +9%

IlluminaILMN

US Molecular Testing 07/08/2008 3 271 228 +7%

IncyteINCY

USCancer, CNS,

Diabetes, HIV31/07/2008 504 70 +3%

Total 564

Average 113

60

70

80

90

100

110

120

Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Absolute Perform

ance

Bionest Vaccines Bionest Inf. and Autoimmune

Bionest Cancer Bionest Neurology

+17%

-15%

+31%

-4%

160

200

240

280

320

360

Sep-07 Dec-07 Mar-08 Jun-08 Sep-08

Absolute Perform

ance

Bionest Animal Health (Rel. to Pharma S&P 500)

Bionest Animal Health (Abs.)

-8%

-2%

50

60

70

80

90

100

110


Rebased Perform

ance

European Biotech (Abs.)

European Biotech (Rel. to Stoxx Pharma)

+9%

+5%

250

300

350

400

450

500


US Pharma S&P 500 (Abs.)

US Pharma S&P 500 (Rel. to S&P 500)

+7%

-1%

250

300

350

400

450

500


EUR Pharma Stoxx (Abs.)

EUR Pharma Stoxx (Rel. to Stoxx)

+12%

+3%

Equity Indices and Sub-Sector Trackers



Equity Markets

Pharmaceutical Sector Absolute & Relative Performance

Bionest Therapeutic Trackers

European Pharmaceutical Sector Performance




EU Pharmaceutical Sector Performance US Pharmaceutical Sector Performance

Absolute Performance Relative Performance to Nasdaq Biotech

Animal Health Sector Performance Biotech Sector Performance

► As always in falling markets, Pharmaceuticals have played their defensive role

► Oncology is on the rise in Europe and US while Vaccines is strongly declining

► The biotech sector resisted well in the current difficult market

► The Animal-Health sector remains atone

60

70

80

90

100

110

120

Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Rel. Perf. to Nasdaq Biotech

Bionest Vaccines Bionest Inf. and Autoimmune

Bionest Cancer Bionest Neurology

+26%

+14%

-18%

-8%

1

4

4

0

5

10

15

20

25

30

35

40

1Q08 2Q08 3Q08

Cumulative Deal Size

EURbn

Transactions



M&A in Biotech

Global Overview: It is deal time!

Deal Split per Size

Top Stories: Roche on fire!

Sources: Bionest Research, FactSet, BioCentury, Dowjones, MergermarketNote: Numbers on the top indicate the number of transactions

Note: Numbers on the top indicate the number of transactions

Disclosed transactions only

Undisclosed Deals

Disclosed Deals

Corporate deals worldwide in the pharma/biotech industryScope of our Analysis

Deals < €100m Deals > €500mDeals €100 < 500m

Sources: Bionest Research, FactSet, BioCentury, Dowjones, Mergermarket

► Big pharmaceutical companies

demonstrated high level of

interest for companies

developing breakthrough

therapeutics or diagnostic

products through a proprietary

technology platform

► Roche proceeded in no less

than 3 major acquisitions in

the US, granting access to

new and innovative

technologies

Technology Reward

► Date 22/07/2008

► Target Mirus Bio

► Lead Product Market

► Area na

► Deal Value €78.8m

Mirus Bio develops transfection and

molecular labeling technology

products

► Date 21/07/2008

► Target Genentech

► Lead Product Market

► Area Oncology

Immunology

► Deal Value €27.6bn

Roche acquired the remaining

44.1% stake it does not already

own in Genentech Inc

► Date 23/07/2008

► Target Arius Research

► Lead Product Preclinical

► Area Oncology

ance

► Deal Value €72.5m

Arius Reaserch developed a

fragment-based drug discovery

platform (“FAST”)

Targets Localization vs. Acquirers Region North American Acquirors

86%

7% 7%

European Acquirors

39%

57%

4%

RoW Acquirors

67%

11%

22%

US EU RoW

19

30

24

7

26

34 34

410

0

5

10

15

20

25

30

35

40

1Q08 2Q08 3Q08

Number of Deals

0

5

10

15

20

25

30

35

40

1Q08 2Q08 3Q08

Cumulative Deal Value

EURbn

15

18

12

0

100

200

300

400

500

1Q08 2Q08 3Q08


EURm

3

8

8

0

400

800

1 200

1 600

2 000

2 400

2 800

1Q08 2Q08 3Q08


EURm

Roche/

Genentech

Deal

In % of deals volume

196173

463

151

315

163

361

215

97113

163161

86

493

212181

485

115

427

232

0

100

200

300

400

500

600

MarketedApprovedFiledPhase IIIPhase II/IIIPhase IIPhase I/IIPhase IPreclinicalDiscovery

Average Deal Value in EURm

7 3 5 2 3 1 4 5 2 4 1 1 1 1 25 5 3 4 2

Q108 Q208 Q308

Note: Numbers on the top indicate the number of transactions; One deal therapeutic area not disclosed in Q3

Disclosed partnerships only with deal values equal to $100m or above

Partnerships



Global Overview

Partnerships by Development Phase

Partnerships by Therapeutic Area

► Date 07/08/2008

► Acquirer Roche

► Target Metabasis

► Dealed Product HepDirect®

► Status Technology

► Area Anti-Infectious

► Deal Value €132m

Agreement to apply Metabasis'

HepDirect® liver-targeting technology

to Roche's proprietary lead nucleosides

to develop new treatments for

Hepatitis C

Top Story Focus

Sources: Bionest Research, FactSet, BioCentury, Dowjones, Recombinant Capital



Note: Numbers on the top indicate the number of partnerships


Note: Numbers on the top indicate the number of transactions; Two deal phases not disclosed in Q3


M&A in Biotech

Biotech or pharma product transaction between global parties, for which the terms are disclosed, with a total deal value reaching $100m at least

Scope of our Analysis

280 304

360423

313

208253

25

19

28

18

2625

19

0

100

200

300

400

500

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08


0

5

10

15

20

25

30

Number of Deals

► Big value in discovery, Phase I and Phase III

► CNS is on the rise

99

265

222

508

689

306

141

372

147

202

85

376

189

132

409

194

292

375

183

87

0

100

200

300

400

500

600

700

Anti-Infectious Cancer Cardiovascular CNS Dermatology Gastrointestinal Gynaecology Inflammatory &

Autoimmune

Metabolic Ophthalmology Respiratory &

Allergy

Other


4

32

4

6

1

2

2

135

1

1

0

4 1 3 2 1 3 5 10 1 3 1 3 42 323344

Q108 Q208 Q308

0

20

40

60

80

100

120

140

160

180

4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08


in EURm

Autoimmune Diseases CNS Inflamation Vaccine

+69%

+137%

-94%

+36%

0

50

100

150

200

250

300

350

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08


in EURm

PC Ph I Ph II Ph III Mkt

+7%

-16%

-13%

-32%

-33%

Last Quarter Variation

Private Fund Raisings in Europe



Private Markets

Cumulative Amount Raised...

... per Development Stage

... per Selected Therapeutic Focus




Last Quarter Variation

293

164

257

197

176

148

205

305

252 246

296 295

315

143

208

0

50

100

150

200

250

300

350


Cumulative Amount Raised by Quarter

Bars - in EURm

0

200

400

600

800

1 000

1 200

1 400

12 Months Cumulative Deal Value

Lines - in EURm

Buy Out Transactions in EuropePrivate Markets



Sources : Bionest Research, Private Equity Insight, Merger Market

Global Overview of Q3 08 Buy Out Healthcare Transactions

Total Buy Out Deals vs Healthcare Deals

2008 Healthcare Sector Distribution (Number of Deals)

Value of Deals Number of Deals Average Size of Deals

Q1 2008 Q2 2008 Q3 2008

Healthcare Provider65%

Pharmaceuticals21%

Medical Equipment14%


Pharmaceuticals22%


9 deals


Pharmaceuticals18%


Medical Supplies5%

14 deals

22 deals

2 2 1

21 22

16

10%

8%

0

5

10

15

20

25

30

Q1 2008 Q2 2008 Q3 2008

in EUR bn

0%

2%

4%

6%

8%

10%

12%

Proportion of the healthcare deals

229 14

139 169139

16%

5%

10%

0

50

100

150

200

Q1 2008 Q2 2008 Q3 2008

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Proportion of the healthcare deals

143 135

111127

255

134

0

50

100

150

200

250

300

Q1 2008 Q2 2008 Q3 2008

in EUR m

All Sectors Healthcare Sector

7%

Healthcare Sector Other Sectors Healthcare proportionHealthcare Sector Other Sectors Healthcare proportion

Target Company Sub Sector Value €m Target Country Acquirer

September 2008

Carewatch Care Services Ltd Health Care Providers 46 UK Lyceum Capital

Veris Polska Pharmaceuticals ND Poland Penta Investment

August 2008

Independent Clinical Services Ltd Health Care Providers 75 UK Inflexion PE Partners LLP

Care Inspirations Ltd Health Care Providers 75 UK Global Innovations Partners LLC

Bioton SA Pharmaceuticals 205 Poland Windstorm Trading & Investment Ltd

Raphael Healthcare Ltd Health Care Providers 38 UK RJD Partners Ltd

July 2008

Medicom System Health Care Providers 100 Greece Global Finance SA

Photonis SA Medical Equipment ND France Astorg Partners

Istituto Il Baluardo Health Care Providers ND Italy 3i/Labco France

Labco Diagnostics Network Health Care Providers 258 France 3i/Natexis PE/CIC Finance/TCR Capital

Excent BV Health Care Providers ND Netherlands Friesland Bank Investments

Craegmoor Group Health Care Providers 341 UK Advent International

OLMED Operation Medical Equipment ND Sweden Maquet Holding

Phythea SAS Pharmaceuticals 70 France AtriA Capital Partenaires

1 208

134

Q3 Total Transaction Value (5 deals undisclosed)

Q3 Average Deal Amount (5 deals undisclosed)

This publication has been prepared by Bionest Partners (19 rue du Général Foy – Paris, France) and is provided solely for the information of the recipients who are expected to make their own investment decisions without undue reliance on this report. The information herein is not intended as an offer to buy or sell, or a solicitation to buy or sell any financial instrument. The information herein has been obtained from, and any opinions herein are based upon, sources believed to be reliable, but Bionest Partners makes no representation as to its relevance, accuracy or completeness and it should not be relied upon as such. As a result, Bionest Partners accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.

This report shall not be reproduced, distributed or published by any recipient for any purpose without the prior consent of Bionest Partners.

All opinions and estimates herein reflect the judgement of Bionest Partners on the date of this report and are subject to modifications without notice. Any investments referred to herein may involve significant risks and are not necessarily available in all jurisdictions, may be illiquid and may not be suitable for all investors. The value of, or income from, any securities referred to herein may fluctuate and/or be affected by changes in exchange rates. Past performance is not indicative of future results. Investors are expected to make their own investment decisions without relying on this publication. Only investors with sufficient knowledge and experience in financial and business matters to evaluate the relevant merits and risks should consider an investment in any issuer or market discussed herein.

The information contained in this publication is not available to a person who would be categorized as a private customer under the rules of the FSA. To the extent that any securities, or any broker-dealer, investment adviser or other services, are deemed to be offered herein for purposes of U.S. law, such securities or services are not being offered in the United States or to U.S. persons absent from an exemption under applicable U.S. law. This report is not intended for distribution to, or use by, U.S. persons without such an exemption.

Bionest Partners: (a) may have managed or co-managed a public offering of the subject companies securities in the past 12 months; (b) may have received compensation for investment banking services from the subject companies in the past 12 months; and (c) expect to receive or intends to seek compensation for investment banking services from the subject companies in the next 6 months.

Disclaimer



Selected Bionest Financial Advisory Completed Transactions

2008

Has been acquired

by

Sole Advisor

2008

Sole Advisor

Tier 1 Private Equity Fund

Commercial Due Diligence

for

2008

Has Out-licensed

Research L-Asparaginase

to

Sole Advisor

2008

Sole Advisor

Has Out-licensed

Preclinical OP-R003

to

2007

Has Sold Ginkor Fort

to

Sole Advisor

2006

Co-Advisor

Raised €15m

Listed on Alternext

2008

Oncology

-

Assessment of

Product Franchise

Sole Advisor

Selected Bionest Transaction Services Assignments

2007

Commercial Due Diligence

for

Co Advisor

2006

Sole Advisor

Has been acquired

by

2008

Has Divested

MAb Research Business

to

Sole Advisor

2008

Oncology

(Financing Round)

2008

Mature Products

(Financing Round)

Corporate

Valuation

Corporate

Valuation

Notes

Documents

Minimums. Q3 2008bionest.com/wp-content/uploads/2015/10/Bionest_Financial_Advisor… · Bionest MPV™ (Market Pipeline Value) is a proprietary benchmarking approach that compares