Crb Bio Ii Summary Nov2010 Eng

Private and Confidential

CRB Bio II: A New Investment Opportunity in Biotech

November, 2010

A Unique Spanish Biotech Initiative

A new Venture Capital Fund specialized in early stage investment in the biotechnology sector with a target fund size of €60 million.

The Fund will be managed by a new Venture Capital Firm (CRB Inverbío) created by the founding partners of Cross Road Biotech, a Spanish venture capital company with wide experience and track record in biotech project management.

Cross Road Biotech currently has a diversified portfolio of eleven companies in the biomedicine sector at different stages of development.

Cross Road Biotech has achieved a unique know how in the Spanish venture capital market specialized in biotechnology and its portfolio will generate net returns several times higher than the investment.

Cross Road Biotech SCR - Confidential InformationP. 2

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The new Fund is anchored on six differential competitive advantages to generate high financial returns

A Unique Spanish Biotech Initiative

Experience and track record in continuous value creation in the

biotech industry

Deep scientific understanding and

extensive network of contacts

Experienced Management Team with

high credibility, led by Enrique Castellón

Proven capacity to access non dilutable funds as a

way of leveraging investments

Hands on involvement in the management and divestment strategy,

adding value from the first moment

Leadership position in a growing sector in Spain

allowing CRB to attract and generate proprietary

operations

Cross Road Biotech SCR - Confidential Information

P. 4

Enrique Castellón – CEO & ChairmanPhD in Medicine, Economist. Former Secretary of State for Health and Consumers in the Health and Consumer Ministry. Chairman of the Spanish Medicines' Agency. Creation of national oncological research centers (CNIO) and cardiovascular disease centers (CNIC). Deputy minister for Health and Social Services in the region of Madrid . General Manager of the health service of Galicia

Pablo Cabello – Technical and Scientific DirectorMolecular Biologist. Professional experience in the Instituto de Biología Celular.Histopathology services in the Fundación Jiménez Diaz Hospital.20 years in the Molecular Genetics laboratory of the Hospital Ramón y Cajal.

Executive Team -Founding partners

Manuel Castellón – Managing Director.Lawyer and Economist. Master in Legal Counselling. 25 years of experience as corporate lawyer . Director and certified company counsel in various companies including Antena 3 Radio and Grupo Prisa. Founder of Castellón Abogados.

Founding Team of CRB Inverbío


Angel Santos – Director of Business DevelopmentEngineer. Has developed his career in Spain, the UK and the US in companies such as Johnson's Wax and Lilly, in which he has held different leadership positions in general management, strategic and corporate development, M&A, business development and innovation management.

Cross Road Biotech: a history of success

2002 2003 2004 2005 2006 2007 2008 2009 20100

5

10

15

20

25

30

35

Evolution of assets under management

CRB Capital Increase

11 Companies+€32M invested82 job creation38 patents

P. 5 Cross Road Biotech SCR - Confidential Information

CRB has demonstrated capacity identifying and developing biotechnology companies in the human health sector, creating value for shareholders

Current portfolio. Companies

P. 6 - Cross Road Biotech SCR - Confidential Information

LACTEST• Test for lactose intolerance which is able to measure the level of intolerance of the patient• Overcomes the deficiencies of current systems. Simple production, rapid evaluation of

results.

TCD PHARMA• Platform with therapeutical compounds and prognostic solutions for treating different

types of cancer, using an innovative and technically viable approach to the diseases.• The approach is based on new therapeutical targets such as Choline Kinase and the

development of potential inhibitors.

GREEN MOLECULAR• A technology platform of naturally occuring polyphenols with multiple indications in huge

prevalence areas.• Anti-tumoral and anti-metastasic in high incidence cancer types: colorrectal and malignant

melanoma. Also anti-inflamatory, anti-aging and dermo protection.



EMBRYOMICS• The aim is to improve and simplify the pre-implantational analysis that determine the

viability and absence of some illnesses in human reproduction treatments.• This advance will be a step forward compared to the previous methods of diagnostic,

avoiding the use of invasive procedures.

OWL GENOMICS• A biotechnology company that develops new diagnostic systems and therapeutic targets

based on metabolomics.• The company has identified Steatosis and NASH biomarkers that compound a metabolomic

signature with diagnostic value that is being first introduced in the Spanish Hospital market.

BIOCROSS• Non-invasive serum based diagnostic test for Alzheimer´s disease which overcomes the

unreliability of current clinical evaluations.• The test is designed to be used to discriminate Alzheimer´s from other types of dementia.



NLIFE / DENDRICO• nLife Therapeutics is a discovery-stage biopharmaceutical company using the development

and potential commercialization of proprietary therapeutics based on RNA interferences and DNA vaccines for the treatment of human diseases.

• The nanotherapeutics company is focused on major depression disorders, obesity and a new generation of vaccines for influenza.

NEOCODEX• NeoCodex is working with leading global pharmaceutical, government and academic

institutions in the design and implementation of new biomarker studies. The company owns patents on genetic markers related to cardiovascular risk, osteoporosis and reproductive abnormalities.

• The company is bringing together the best of biomaterials and innovative genomic analysis methods to the world of genomic discovery, diagnostics and drug development.

GENOMADRID• Diagnostic test for detecting the proviral charge of HIV to allow a better monitoring of the

disease.• The kit will enable the forecasting of the evolution and to determine the continuity

termination or suspension of the treatment for HIV patients.

Current portfolio. Equity Position

Services Products DivestmentSe

LIVER DISEASES AND

METABOLOMICS

41,7%(2006)(2009)(2013)

LACTOSE

INTOLERANCE

51,4%(-)

(2009)(2010)

FARMACOGENOMICS

4,5%(2006)(2007)(2010)

ALZHEIMER DIAGNOSTICS

90,8%(-)(-)

(2011)

siRNA THERAPEUTICAL APPLICATIONS NANOTECHNOLOGY

DRUG DELIVERY

ONCOLOGY

63,4%(-)

(2011)(2013)

VIH DIAGNOSTICS

99,7%(-)

(2010)(2010)

ONCOLOGY

74,9%(-)(-)

(2013)

PREIMPLANTATIONAL DIAGNOSIS

CRB 5%OWL 30%(2010)(2011)(2014)

100%(-)(-)

(2010)

50%(-)(-)

(2014)


The Management Team of CRB promotes the creation of a new Venture Capital Firm named CRB Inverbío

The partners and founders of CRB have achieved a unique know how in the Spanish venture capital market specialized in biotechnology.

The constitution of a new fund promoted by the Venture Capital Firm will give continuity to CRB´s entrepreneurial initiative.

There are many new projects with great potential that can be consider into the new structure of CRB Inverbío.

CRB Inverbío fills in a market segment that does not count with other parties, which represents an opportunity for accessing proprietary investments and thus, a competitive advantage.

There is an increasing interest from the regional and local governments and institutions in promoting specialized investment vehicles in biotechnology.

CRB Inverbío is well positioned to be the reference partner to this initiatives.


Outline of the Transition

Managing Team

CRB SCR

Managing Team

Current CRB

portfolio

BIO IIFund

Other Funds

Venture Capital Firm


New Projects

Vision and Mision of the new BIO II Fund

• VisionThe most profitable Spanish fund specialized in life sciences at initial stages, developing business projects based on new scientific solutions that cover unmet medical and or technological needs.

• Mision To select the best business projects based on advanced science and technology and with great opportunities for value creation.

To guarantee the best development, financing and strategic management until the clinic or industrial proof of concept that maximizes the value equation.

Divest with added value that will assure big returns to the investors.


Strategy and magnitudes of the new Bio II Fund

• Name: CRB Bio II Fund• Size of Fund: €60 M first close November 2010• Duration: 8 years (+2)• Investment period: 3 years (+1)• Minimum investment: Depending upon project needs• Maximum investment: up to 15% of the fund• Follow-on Investment paced in multiple rounds upon

milestone achievement• Number of investments: 10-12• Investment outside Spain: max 10%• Investment in biomedicine: up to 80%• Investment in med tech: up to 10%• Investment in other life sciences: up to 20%

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Investment Strategy will look for a balanced portfolio

Technology and field of operation

• The investment strategy mandates the majority of the Fund to be invested in the biomedicine field as this is the area where CRB has developed its expertise and know how.

• However the new Fund will extend its reach and consider investments in closely related fields of operations and technologies including:– Agriculture and Animal health– Medical Devices and medical technologies– Bioinformatics

• There are many opportunities in these areas, in general require shorter development and maturation time and are less capital intensive and still have good exit options, therefore representing a good option to balance the portfolio.

• The new Fund will not invest in industrial biotech.


Timing for the incorporation of the Fund

15

2Q 3Q 4Q 1Q 2Q

2010

Venture Capital Investment Firm incorporation (CRB Inverbío)

CRB Bio II Fund incorporation

Fund raising

1st Fund closing

2nd Fund closing

Ordinary operations

30/XII

2011


30/IV

Almagro 1, 1º derecha28010 Madrid, Spain

Tel.: +00 34 91 446 7897

Email: [email protected]: www.crossroadbiotech.com

Economy & Finance

Crb Bio Ii Summary Nov2010 Eng