Q2 2009 Advisory Signs of appetite - Bionestbionest.com/wp-content/uploads/2015/10/Bionest_Financial_Advisor… · Bionest MPV™ (Market Pipeline Value) is a proprietary benchmarking

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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]

Nicolas Brodetsky

Associate Manager

[email protected]

Thomas Ranson

Associate

[email protected]

Louis Labriffe

Analyst

[email protected]

Myriam Makhloufi

Analyst

[email protected]

Contact:[email protected]

Financial

Advisory

Newsletter

► Research-based Companies Valuation

Europe valuation is catching-up

► Initial Public Offerings

-

► Follow-on Offerings

The US market remains active

► Equity Indices and Sub-Sector Trackers

Confirmed Q1 Biotech rebound

Equity Markets

Mergers & Acquisitions in Biotech

► Transactions

Slowdown versus 2008

► Partnerships at and above $100m

Preclinical : the place to be

► Buy Outs

Bottom reached in Q1?

Private Equity in Europe

► We bring quality financial services to the healthcare industry

Selected Bionest Track Record

Pages 2 to 5

Page 8

Page 9

Pages 6 & 7

Q2 2009

Signs of appetite

2007

Has Sold Ginkor Fort

to

2008

Assessment of

Oncology Franchise

For Acquisition from

Sole Advisor Sole Advisor

2008

Sole Advisor

Has Out-licensed

Preclinical OP-R003

to

112

50

150

250

350

15 20 25 30

Average Pipeline Size (*)

Average M

PV in USDm

USEU

Cancer

40%

Neurology

16%

Anti-Infectious

13%

Cardiovascular

12%

Inflammatory &

Autoimmune

12%

Vaccines

5%

Others

2%

Research-based Companies Valuation


June 2009Page 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 162

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


► Europe outperformed the US until early June

► Cardiovascular and anti-infectious remain highly ranked

Bionest MPV™ Universe

Therapeutic Area

► The spread between Europe and US is narrowing down

EU & US EU US

+11%

+11%

2423

26

32

10 77

Global Average

Cardiovascular

Neurology

Infl. & Autoimmune

Anti-Infectious

Vaccines

Cancer

0

100

200

300

400

500

600

0 10 20 30 40 50 60

Average Pipeline Size (*)

Average MPV in USDm

16221

23

10

31

69

21

0

5

10

15

20

25

03/04/09

10/04/09

17/04/09

24/04/09

01/05/09

08/05/09

15/05/09

22/05/09

29/05/09

05/06/09

12/06/09

19/06/09

26/06/09

Point Value in USDm

Cardiovascular Infl. & Autoimmune Anti-Infectious Cancer

0

5

10

15

01/04/09 01/05/09 01/06/09

Point Value in USDm

Initial Public Offerings



Equity Markets

Cumulative Amount Raised and Number of IPOs

European Biotech Listings


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

US EUUS EU


Company Country

Company Name

Trading Place

� How to read it?

Alternext

Eurolist A

Eurolist B

Eurolist C

Other Exchanges

Genfit

Alternext

Cytotools

Frankfurt

4SC

Frankfurt Zurich

NorDiag

Oslo Copenhagen

BioAlliance Wilex

Euronext Euronext Frankfurt

Ipsen Bioxell AlphaHelix Santhera Vita 34 Vivalis

Euronext Zurich Stockholm Zurich Frankfurt Euronext

Exonhit Curalogic Biovitrum Innate Tigenix AMT

Alternext Copenhagen Stockholm Euronext Euronext Euronext

NascaCell Genovis Biofrontera Cosmo Exiqon Hybrigenics

Oslo Frankfurt Stockholm Frankfurt Zurich Copenhagen Alternext

Orexo Geneart Liponova Algeta Addex Merrion PCI Biotech

Stockholm Frankfurt Oslo Frankfurt Oslo Zurich Dublin Oslo

Speedel Jerini Renovo OctoPlus Cellectis GenOway MolMed Ipsogen

Zurich Frankfurt London Euronext Euronext Alternext Alternext Euronext Milan Alternext

3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Onco

Methylome

Newron

Pharma

Lifecycle

Pharma

AblynxThrombo-

genics

Clavis

Pharma

Biotec

Pharmacon

31%

82%

50%

64%

55%

31%

30%

28%94%

69%

18%

50%

36%

45%

69%

70%

72%

19

135

430

221

388

106

641

469

749

37

360

61

0

100

200

300

400

500

600

700

800

3Q054Q051Q06 2Q063Q064Q061Q072Q073Q07 4Q07 1Q082Q083Q084Q081Q09 2Q09

Cumulative Amount Raised

Bars

- in E

URm

0

200

400

600

800

1,000

1,200

1,400

Last 12 Months Cumulative Amount Raised

Lin

es - in E

URm

1

8

10

5 5

2

4

25

2

6

8

10

2

7

13

65 5 2

5

10

5

11

7

16

13

15

2

10

2

0

2

4

6

8

10

12

14

16

18

20


Cumulative Number of IPOs

Bars

0

5

10

15

20

25

30

Last 12 Months Cumulative Number of IPOs

Lin

es

1

Follow-On Offerings



Equity Markets

Europe

United States

2Q09: 9 for the US vs. 1 for EU




150

55

99

253

0

261635

2611

1

2

1

4

111

1

4

0

50

100

150

200

250

300

350



Bars

- in E

URm

0

50

100

150

200

250

300

350

Last 12 Months Cumulative Amount Raised

Lines - in E

URm

1039

771

1950

467

1062

537

941

707

468

693

377 384

547

64

537

94

2

7

711

17

20

9

11

11

12

16

16

4

0

500

1,000

1,500

2,000

2,500



Bars

- in E

URm

0

1,000

2,000

3,000

4,000

5,000

Last 12 M

onths Cumulative Amount Raised

Lines - in E

URm

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

► Flattish performance this quarter

► The rebound seen in the first quarter is confirmed

► Strong performance of Animal Health and Biotech compared to the first quarter

60

70

80

90

100

110

120

130

140

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09

Absolute Perform

ance

Bionest Vaccines Bionest Inf. and Autoimmune

Bionest Cancer Bionest Neurology

+21%

+34%

+31%

+16%

60

70

80

90

100

110

120

130

140


Rel. Perf. to Nasdaq Biotech

Bionest Vaccines Bionest Inf. and Autoimmune

Bionest Cancer Bionest Neurology

+28%

+19%

+27%

+12%

200

250

300

350

400


Perform

ance

EUR Pharma Stoxx (Abs.)

EUR Pharma Stoxx (Rel. to Stoxx)

-14%

-7%

200

250

300

350

400


Perform

ance

US Pharma S&P 500 (Abs.)

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

-9%

-4%

20

60

100

140


Perform

ance

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

Bionest Animal Health (Abs.)

+20%

+24%

20

60

100

140


Perform

ance

European Biotech (Abs.)

European Biotech (Rel. to Stoxx Pharma)

+9%

+15%

Target Location:

European Acquirors

85%

5%10%

2

169 6 3 5

0

10

20

30

40

50

60

70

80

90

100

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Cumulative Deal Value

EURbn

19

30

24 25

18 19

7

6

3

8

26

34 34

31

21

27

410

0

5

10

15

20

25

30

35

40

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Number of Deals

Transactions



M&A in Biotech

Global Overview: Towards Smaller Deals

Deal Split per Size

Major Operations in Q209

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

Targets Localization vs. Acquirers Region

US

In % of deals volume

RoW AcquirorsNorth American Acquirors

Merck/Schering

Pfizer/WyethRoche/

Genentech

15

18

12

19

10

11

0

400

800

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Cumulative Deal Size

EURm

3

8

8

5

3

6

0

400

800

1,200

1,600

2,000

2,400

2,800

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09


EURm

1

4

4

1 2

5

0

10

20

30

40

50

60

70

80

90

100

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09


EURbn

13%

49%

38%

75%

25%

GSK – Stiefel Laboratories / April 2009 Express Scripts – WellPoint NextRx / April 2009

► GSK acquired Stiefel Laboratories for a cash consideration

of $ 2.9 billion in cash and will assume $0.4 billion of net

debt upon closing. A potential further $0.3 billion cash

payment is contingent on future performance.

► Cost synergies for the new business are expected from

combining manufacturing and administrative functions.

Besides, Stiefel’s products will benefit from GSK’s global

distribution and commercial organisations in the BRIC

countries while GSK’s products will benefit from Stiefel’s

experience in dermatology.

► Express Script acquired WellPoint NextRx in a cash-and-

stock transaction valued at approximately $4.7billion.The

transaction includes a 10-year contract for Express

Scripts to provide services to WellPoint, following closing

of the transaction.

► WellPoint will retain control of medical policy, formulary

and integrated disease management, and will work

alongside Express Scripts to offer best-in-class pharmacy

management and data analytics

EU

RoW

Note: Numbers on the top indicate the number of transactions; One deal therapeutic area not disclosed in 3Q08, one in 1Q09 and one in 2Q09

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

Partnerships at and above $100m



Global Overview

Partnerships by Development Phase

Partnerships by Therapeutic Area

► Date 14/05/2009

► Acquirer Sanofi-Aventis

► Target Kyowa Hakko Kirin

► Products Anti-LIGHT MAb

► Status Preclinical

► Area Infl. & Autoimmune

► Deal Value €232m

Sanofi-aventis and Kyowa Hakko Kirin enter into a collaboration and licensing agreement on an Anti LIGHT fully human monoclonal antibody

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 3Q08


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

► Impressive decreasing number of deals in Phase I and Phase II

► Small deals but deals… in Gastrointestinal and Gynaecology!

132

409

194

292

375

183

87

217

335

119

373

795

264

646

299

590

692

328

153

344305

76

336

174

454

605

223

172

92

318

250

530

0

100

200

300

400

500

600

700

800

Anti-Infectious Cancer Cardiovascular CNS Dermatology Gastrointestinal Gynaecology Inflammatory &Autoimmune

Metabolic Ophthalmology Respiratory &Allergy

Other

Average Deal Value in EURm

3Q08 4Q08 1Q09 2Q09

44 1

52

135

1

1

0

1 1 3 3 1 2 4 3 2 1 1 1 7 31 2 7 4 1 10 5 1 6 2 1 22 4 4142

215349

204285281

833

431272

2,184

95173

251392

217

436

119113

463

113254

430419

196173

463

151315

163

361

0

500

1,000

1,500

2,000

2,500

MarketedApprovedFiledPhase IIIPhase II/IIIPhase IIPhase I/IIPhase IPreclinicalDiscovery

Average Deal Value in EURm

3 8 3 4 1 5 6 2 4 2 1 1 1 25 5 2 2 3 2 1 8 2 116 2 1 37

3Q08 4Q08 1Q09 2Q09

314

400

280304

360423

313

208253

364

22

26

22

25

1919

2625

18

28

0

100

200

300

400

500

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Average Deal Size in EURm

0

5

10

15

20

25

30

Number of Deals

Buy Out Transactions in EuropePrivate Markets



Global Overview of Q2 09 Buy Out Healthcare Transactions

Top 10 European Private Equity Buyouts: 3 in the Healthcare Field !

0

10

20

30

40

50

60

70

Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009

Va

lue

(€

bn

)

►For the first time since Q2 2007, overall value of European Private EquityBuyouts has increased.

►The numbers are still far fromthose in 2007, but thisincrease from €2bn in Q1 to €3.6bn in Q2 (overall buyouts) could be the first signs of a potential private equitybuyouts upturn…

End of decline ?

Target Company Value €m Target Country Equity Providers

Wood Mackenzie 637 United Kingdom Charterhouse Capital Partners

Chesapeake Corporation 366 United Kingdom Irving Place Capital, Oaktree Capital Management

Grupo SAR 200 Spain G Square Capital, Palamon Capital Partners

Bol.com 110 Netherlands Cyrte Investments

Grupo Diagnóstico Recoletas 100 Spain Mercapital

Moret Industries 100 France Céréa Mezzanine, Unigrains

TMD Friction 100 Germany Pamplona Capital Management

Bounty Group Ltd 70 United Kingdom Barclays Private Equity

Vanguard Healthcare Solutions 34 United Kingdom MML Capital Partners

The Amor Group 31 United Kingdom Close Growth Capital, Scottish Enterprise

European Private Equity Buyouts: End of decline ?

Target Company Sub Sector Value €mTarget

CountryDeal Type Acquirer

Elysee Dental Solutions BV Medical Equipment ND Netherland IBO Synergia Capital Partners BV

Société d'Etudes de Recherche

et de Fabrication SASMedical Supplies ND France Build-up Turenne Capital via Dedienne Sante SAS

Korian SA (three housing facil.) Healthcare Provider ND France Build-upAzulis Capital / BNP Developpement / Dominique Pelle

via Domidep

Grupo SAR Healthcare Provider 200 Spain IBI G Square Capital / Palamon Capital Partners LP

Grupo Iberica de Diagnostico y

CirurgiaHealthcare Provider 100 Spain IBI Mercapital SL

No Significant Deals

Articles de Laboratoire de

Precision SASMedical Supplies ND France Build-up American Capital Ltd / Axygen Scientific

Aesculabor-Karlsruhe GmbH Healthcare Provider ND Germany Build-up 3i Group Plc via Labco

Vanguard Healthcare Solutions Medical Equipment 34 UK MBO MML Capital Partners LLP

June 2009

May 2009

April 2009

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 Transactions

2008

Has Out-licensed

Research L-Asparaginase

to

Sole Advisor

2007

Has Sold Ginkor Fort

to

Sole Advisor

2006

Co-Advisor

Raised €15m

Listed on Alternext

2008

Oncology

-

Assessment of

Product Franchise

Sole Advisor

2008

Has Divested

MAb Research Business

to

Sole Advisor

2008

Oncology

(Financing Round)

Corporate

Valuation

2008

Mature Products

(Financing Round)

Corporate

Valuation

2008

Has been acquired

by

Due Diligence

2007

Commercial Due Diligence

for

Due Diligence

2007

Has been acquired

by

Due Diligence

2006

Due Diligence

Has been acquired

by

Due Diligence

2009

Entered

financial agreements

with

Notes

Notes

Documents

Q2 2009 Advisory Signs of appetite - Bionestbionest.com/wp-content/uploads/2015/10/Bionest_Financial_Advisor… · Bionest MPV™ (Market Pipeline Value) is a proprietary benchmarking