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Realizing value from leading Scandinavian life science research
Accelerator - At a glance
A life science group aiming to create and realize value Majority owner in 6 companies Business model aimed at commercialize
life science projects Attractive target areas
Large medical needs Diagnostics, cancer and orthopedics
Late stage portfolio 2 medtech products on the way to market 2 phase II drug development projects in
cancer and cardiology 1 orthopedic drug delivery in clinic
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Portfolio set to unlock value in 2010
Publicly traded share
Owners Capital
Staffan Persson 25%
Peter Lindell 18%
Andreas Bunge 13%
Länsförsäkringar Småbolag 7.3%
UBS (Luxembourg) 3.4%
Others 33.3%
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Listed on AktieTorget Market cap ~ 125 MSEK 1,600 shareholders Remium market maker
Group companies
Company Area Ownership
AddBIO Orthopedics 63%
OptoQ Diagnostics 100%
Optovent / Archea Pharma Drug delivery 100% / 51%
PledPharma Cancer 60%
SPAGO Imaging Imaging / Diagnostics 100%
Synthetic MR MR Imaging 64%
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Leading Scandinavian findings that target large medical needs
Adding skills to reap success
Board of Directors Staffan Persson, chair, Senior
partner ITP Andreas Bunge, CEO Accelerator Thomas Gur, Consultant Peter Lindell, Senior partner ITP Ingemar Lundström, Prof
Linköping UniversityNetwork Prof Lou Ignarro, UCLA, Nobel
Laureate Prof Per Jynge, LITH Steven Lang, ex BD&L Smith &
Nephew Jan Sandström, ex VP BD&L
AstraZeneca
Skilled employees in group 9 Ph D’s employed Dr Oskar Andersson, ex Senior
scientist GE Healthcare Ass Prof Jan Olof Karlsson, ex
Senior scientist GE Healthcare Dr Marcel Warntjes, ex Scientist
Philips Gunnar Strand, ex Sales
manager Kodak/Care Stream
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Academia & Science – Life Science Industry – Entrepreneurs
Financials
9m 2009 9m 2008 FY 2008
Cash flow from operations and investments
-15.5 -10.9 -14.2
Liquid funds 11.8 6.5 26.7
Long term assets 56.1 44.9 48.0
Equity ratio 59.7 62.8 60.0
Equity per share (fully diluted) 0.59 0.70 0.83
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Conservative use of funds
Risk reward in life science areas
Medtech Lower risk / lower reward Shorter development
cycle Drug development
High risk / high reward Long development cycle
Hybrid projects Lower development risk
but may require extensive market authorization procedures
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The birth of a drug
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Portfolio
Key products and projects
Project Area Company Development phase
Medtech Idea Concept Pilots Market
SyMRI Suite Imaging Synthetic MR
OBSQlip Dialysis OptoQ
Biopharma Pre-clin Ph I Ph II Ph III Market
PledOx Cancer PledPharma
Pled-099 Cardiology PledPharma
Skruvcoat Orthopedics AddBIO *
ProtR-C Cancer Optovent
SPAGOEnhanced MR
Imaging/ Diagnostics SPAGO
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* Skruvcoat to follow a different regulatory pathway
SyMRI suite
Market
120 million MR scans annuallyMR system market: 2 BUS$, Major players: GE, Philips, SiemensPACS market: 6 BUS$
Description
Status & IPCE approvedDistribution agreement with Sectra AB, pilots in marketPatent pending
Type Software for MRI
Ownership 100% SyntheticMR AB
Increases efficiency in MRI by • reducing examination time • improving decision support with more data• allows for analysis post scan
Limited throughput in MRI today with examination times averaging 45 min
ObsQlip
Market1.7 million patients regularly undergoes dialysis treatmentHemodialysis: 90% of the dialysis marketHemodialysis market: 10.5 BUS$Fresenius market share in hemodialysis: 38%
Description
Status & IPLicensed to Fresenius Medical Care for worldwide sales, except US/CanadaFinal production series made, Market launch Patent approved
Type Hb detection in dialysis equipment
Ownership& resources 100% OptoQ AB
HemodialysisOnline detection of Hb value in blood for use by patients undergoing dialysis
PledOx
Market
Description
Status & IPClinical phase II study in colon cancer ongoing,expected to be finalized in 2010Partnering 2010/2011Patent licensed, additional patent applications
Type Supportive cancer care drug. Cytoprotective
Ownership 100% PledPharma AB
Supportive cancer care (in connection with cancer treatment) is estimated to 13 BUS$
Est. market for lead-indication (colon cancer): >1.5 BUS$ Est. potential peak year sales for lead-indication : 400 MUS$
PLED derivative and LowMEMs (Low Molecular weight Enzyme Mimetic) with SOD mimetic activity.Increases survival and quality of life for patients receiving chemotherapy. Reduces side effects induced by chemotherapy and selectively protects healthy cells, by mimicking the SOD enzyme which protect cell from damage caused by unstable molecules known as free radicals.
PP-099
Market
Description
Status & IPClinical phase II study in PCI patients approved, expected to start in 2010Patent licensed and patent applications
Type Supportive care therapy for acute heart attack treatment
Ownership 100% PledPharma AB
Increases survival of patients suffering form acute heart infarcts, by reducing injuries and complications.PLED derivative and LowMEMs (Low Molecular weight Enzyme Mimetic) with SODmimetic activity. Reduces side effects induced by reperfusion, by mimicking the SOD enzyme which protect cell from damage caused by unstable molecules known as free radicals.
2 million PCI procedures annually, of which 1 million in USA Rate of death after an acute myocardial infarction approaches 10% Incidence of heart-failure after an acute myocardial infarction is 25%Est. market for lead-indication: >1BUS$ Est. potential peak year sales: 300 MUS$
Skruvcoat/Fibmat
Market
Description
Status & IP
Proof of concept in dental indicationDental clinical program ongoingDevelopment of prototype production, starting clinical program in orthopedicsAiming to partner in 20104 patent applications
Type Drug delivery platform, implant improvements
Ownership 100% AddBIO AB
Local delivery of the established drug BisphosphonatesLowers the risk of implants loosening by improving the holding power of the boneLead-indication: Orthopedic trauma screws
Orthopedic and dental implants: 30 billion US$, CAGR 15%. 100 million screws sold annuallyEst. market lead-indication (orthopedic trauma screws) >300 MUS$ Est. potential peak sales: 60 MUS$
Spago enhanced MRI
Market Est. potential peak year sales for lead indication: 360 MUSD (USA)
Description
Status & IPProof of concept achieved by animal images Prototype product package under developmentPartnering aimed for in 2010/20114 patent applications
Type Contrast agent for MRI using nano particle based molecular imaging
Ownership 100% Spago Imaging AB
Identifying and locating tumors early and precisely to improve the probability of successful treatmentDeveloping nano particle based contrast agent with a unique in signal intensity and safety profile
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TumorTumor
Oedema
MagnevistUrine
Oedema(not
enhanced)
Expected news flow in 2010
Sales revenue from SyMRI suite software First patient included in phase II study of PP-099
in acute PCI Last patient enrolled in phase II study of PledOx in
colon cancer Results from phase II study of PledOx in colon
cancer Start of Skruvcoat study on hip implants and
fixation pins Commercial agreement for Skruvcoat
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Portfolio set to unlock value in 2010
Transaction overview
Structure Preferential share issue (fully guaranteed)
Amount SEK 25 million
Terms 5 shares buys 1 new share for SEK 1.90
Use of proceeds Subsidiaries and project close to commercialisation
Commitments Main owners Persson and Lindell to subscribe pro rata (43%) and underwrite remaining
Time table 26 Nov Record date1 – 10 Dec Trading in rights1 – 15 Dec Subscription period
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100% of the right issues guaranteed