Gregory A. BonfiglioProteus Venture Partners

Proposal: Build The Leading International Cryo-Banking and Stem Cell Therapeutics Company

September, 2011

CONFIDENTIAL 2

Proteus: An Investment and Advisory Firm Focused on RM

Proteus, Inc.

Proteus Management, LLC

(Fund Management)

Proteus Insights, LLC

(Consulting Services)

Proteus Advisors, LLC

(Investment Banking Services)

Agenda

I. The Market & Opportunity Broader Regenerative Medicine Market Cord Blood Market: Key Metrics & Market Leaders The Opportunity

II. Phase I: Build A Dominant International Bio-Banking Company Acquire A Market Leader & Roll-Up Small Underperforming Banks Drive Revenues with Aggressive Sales & Marketing Expand Tissue Offering

III. Phase II: Bring RM Therapeutics To Emerging Markets Initial Therapies Leverage Stored Tissue Proven Therapies That Address Unmet Regional Medical Needs

IV. Funding & Exit Strategy Funding Required Exit Strategy

CONFIDENTIAL 3

The Promise of Regenerative Medicine

To Regenerate Heart MuscleTo Replace Entire Organs

CONFIDENTIAL 4

Paralyzed Rat(double click to see video)

Paralyzed Rat Walks(double click to see video)

To Heal Acute Spinal Cord InjuryTo Cure Vision DisordersTo Cure Diabetes

Tools for Drug Discovery

CONFIDENTIAL 5

Development of Regenerative Medicine

1968 – ALL patient irradiated, infused with identical twin BMT

1968 – ALL patient irradiated, infused with identical twin BMT

1973 – First unrelated bone marrow transplant

1973 – First unrelated bone marrow transplant

2001 – RhBMP-7 Approved

2001 – RhBMP-7 Approved

FDA Approves Dermagraft (2001)FDA Approves Dermagraft (2001)

1997 – Dolly the Sheep cloned; –FDA ApprovesCarticel (19997) & Apligraf (1999)

1997 – Dolly the Sheep cloned; –FDA ApprovesCarticel (19997) & Apligraf (1999)

1960s 1990s1970s 1980s 2000s

Source: Company websites, NIH, Pubmed

2005 Use of unrelated cord blood in BMT

2005 Use of unrelated cord blood in BMT

1963 – Mouse ASCs isolated1963 – Mouse ASCs isolated

1981 – Mouse ESCs Isolated1981 – Mouse ESCs Isolated

1998 – Human ESCs isolated

1998 – Human ESCs isolated

2007 – iPSCs from Humans

2007 – iPSCs from Humans

Current technologies build on 50 years of research

1993 – ViaCell Begins Banking Cord Blood

1993 – ViaCell Begins Banking Cord Blood

1989 – First Sibling Cord Blood Transplant (Gluckman)

1989 – First Sibling Cord Blood Transplant (Gluckman)

1986 – First Mouse Cloned1986 – First Mouse Cloned

RM Is Entering A New ERA

RM Market is Maturing: Key Metrics Rapidly Expanding Market:• $1.6B in 2010• $20.0B in 2025 • CAGR of 18.34%

Dramatic Revenue Growth• $130M in 2001• $1.6B+ in 2010

Worldwide funding for research Increasing• $2.5B Now• $14B in 10 Years

Clinical Programs • Over 3600 Clinical Trials• Over 400 ex-Oncology

Commercial Products • 400 on Market (Mostly Skin, Tools Media,

& Devices); – 900+ in Development

• 44 Cell Therapies on Market– $1B Revenues– 400 in Development– 28 in PIII/Pivotal Trials

1.2M+ Patients Treated with RM Products.

• 320K+ Cell Therapy Patients

RM Companies• 700+ Co’s involved in RM • 50+ Public Co’s;

– $8-$10B Total Market Cap • 250+ Private Co’s

CONFIDENTIAL 6

RM Market: Global Company Distribution

5%

Asia32 firms

3%

Canada24 firms

56%

USA386 firms

14%

Europe (ex. UK)93 firms

UK133 firms

19%

2%

Middle East17 firms

700+ RM companies worldwide!

CONFIDENTIAL 7

Shire Acquires ABH for $750M

Big Pharma is Actively Engaged

GSK & HSCI: $25M Deal

Merck, Pfizer & Lily Launch Enlight BioScience

Pfizer RM Division: $111M Deal with Athersys (IBD); UCL (RPE); ViaCyte (Diabetes) GSK, AZN & Roche Help Launch Stem Cells

for Safer Medicine in UK

Johnson & Johnson Invests in Tengion & ViaCyte (NovoCell)

Genzyme & Osiris: $1.25B Deal

CONFIDENTIAL 8

GE & Cytori: StemSource

Cephalon & Mesoblast: $2B Deal

Cord Blood Market: Key Metrics

Cord Blood Market Metrics

Market Size:• $3.4B (2010)• $14.9B (2105) • CAGR: 27.9%

Cord Blood Banks:• 150+ Private Banks• 44 Public Banks • 26 Countries

Total Cord Blood Units Stored• 500,000 Units in Public Banks • 1M+ Units in Private Banks

Market Penetration • 1-6% of All Births (varies by

country/region)

Average Fees: Private Banks • $1,750 Initial Collection & Storage

– Range: $890 - $2300• $125 Annual Fee

– Range: $85-$150

Average Fee: Public Banks• $35,000 per Unit (US/EU)

Public Bank Utilization Rate:• 1-3% of Units per year

CONFIDENTIAL 9

Cord Blood Market: Key Metrics

Cord Blood Market Metrics

Total Cord Blood Transplants: 15,000 in 43 Countries • 1,056 per year (2009) • 10,000 per year (2015)• CAGR: 37.8%

50% of All Patients Seeking a BM/PBSC Transplant Cannot Find a Match

Fastest Growing Segment of Cell Transplant Market

• 25% of All Cell Transplants in 2010• 60% by 2015

Regulatory Framework• Regulated as a “Biologic” by FDA/EMA• By October 2011, All Cord Blood Banks

Must be Licensed (BLA)

Therapeutic Applications• 70+ in Clinical Practice• Leukemia; Lymphoma; Blood

Disorders; Hematopoietic Restoration

Clinical Trials • Over 530 FDA Clinical Trials

– 396 New Therapies – 50 Pivotal/PIII Trials

CONFIDENTIAL 10

Cord Blood Therapeutics: Comparison with Bone Marrow

Confidential 11

Cord Blood v. Bone Marrow

Donor Morbidity

HLA Match Required

Units Available

Search Time

2nd or Double Graft

Engraftment Time

GvHD Risk

Ethnic Match

Cord Blood

None 4/6550,000Units

1 Day Yes 26 Days Minimal Easier

Bone Marrow

50% 8/814.6MDonors

3-4 Months

Possible if donor is available

18 Days 50% Difficult

Banking Other Tissues

• Wharton’s Jelly/Entire Cord • CHORI Technology (www.chori.org)

• Placental Tissue (MSCs) • Pluristem Therapeutics, Inc. (www.pluristem.com) ; LifebankUSA (

www.lifebankusa.com)

• Amniotic Fluid (MSCs & HSCs)

• Biocell Center (www.biocellcenter.com)

• Autologous Marrowized Bone• Arnie Caplan (Cell Bank Technologies)

• iPS Cell Lines• Shinya Yamanaka (Japan)/Janet Rossant (Toronto); iPerian (

www.ipierian.com)

CONFIDENTIAL 12

Banking Other Tissues

• Peripheral Blood/Bone Marrow• Stem Cell Assurance, Inc. (www.stemcellassurance.com)• Oristem (www.oristem.com/)

• ALDH Cells (Hematopoietic Stem And Progenitor Cells)• Aldagen (www.aldagen.com)

• Adipose Derived Mesenchymal Cells (MSCs) • Cytori (www.cytori.com); GE Healthcare • Stem Cell Assurance, Inc. (www.stemcellassurance.com)

• Menstrual Blood • CryoCell (www.cryo-cell.com)

CONFIDENTIAL 13

Current Therapeutic Applications for Cord Blood Market

• 25,000 + Cord Blood Transplant To Date

• 3000+ Transplants in 2010o 9% Increase over 2009o 100% Increase (2X) over 2005

• 10,000 Transplants per year projected by 2015o CAGR: 49.3%

• Multi-Cord Transplants Increased 25% in 2010

• 60+ Diseases Treated

CONFIDENTIAL 14

Key Metrics

Agenda

I. The Market & Opportunity Broader Regenerative Medicine Market Cord Blood Market: Key Metrics & Market Leaders The Opportunity

II. Phase I: Build A Dominant International Cryo-Banking Company Acquire A Market Leader & Roll-Up Small Underperforming Banks Drive Revenues with Aggressive Sales & Marketing Expand Tissue Offering

III. Phase II: Bring RM Therapeutics To Emerging Markets Initial Therapies Leverage Stored Tissue Proven Therapies That Address Unmet Regional Medical Needs

IV. Funding & Exit Strategy Funding Required Exit Strategy

CONFIDENTIAL 15

Build A Dominant International Cryo-Banking Company: Strategic Plan

#1: Acquire a Market Leader

• Acquisition Candidate: StemCyte (http://www.stemcytefamily.com/)

3rd Largest Cord Blood Company o Cord Blood Registry, and ViaCord Are Largest

Public & Private Banks Proprietary Plasma Reduction Technology Active Therapeutics Program

o 1300+ Transplants to Dateo Clinical Trials in China (Spinal Cord; Stroke)

Facilities in US, Taiwan, and India

CONFIDENTIAL 16

Build A Dominant International Cryo-Banking Company: Strategic Plan

#2: Roll-Up Small Underperforming Banks

• 20-25 Possible Candidates Worldwide Small “Proprietary” Operations Struggling to Achieve Sustained Profitability

o 2500-7500 Units Under Management Limited Budget for Sales & Marketing Facing New Regulatory Environment

o October 2011 – New FDA Regs Become Effective o Need Update Technology to cGMP/cGLP Standards

Facing Potential Long-term Liability o Storage Obligations for 20+ years

• Aggregate All Banking Operations Into One Facility in Each Country/Region

CONFIDENTIAL 17

Build A Dominant International Cryo-Banking Company: Strategic Plan

#3: Drive Revenues and Reduce Expenses

• Drive Revenues In Private Banks Thru Aggressive Sales & Marketing Strategy Internet/Website; Call Center; Professional Sales Team (Nurses) Build Relationships with Maternity Hospitals & OBGYNs

• Drive Revenues in Public Banks Thru Education/Marketing and Product Differentiation Focus on Transplant Physicians & Transplant Coordinators Led By Internal Transplant Surgeon & SAB Members Differentiate Product By Including Data to Improve Patient Match

o Genetic Datao Ethnic Data

Target Utilization Rate: 3-5%

CONFIDENTIAL 18

Build A Dominant International Cryo-Banking Company: Strategic Plan

#3: Drive Revenues and Reduce Expenses

• Reduce Expenses By Improving Collection Technology and Sourcing Materials from India Improved Collection Technologies: Closed Perfusions/Gravity

Systems Acquire Rights to Technology Source Materials & Manufacture in India

• Reduce Expenses By Leveraging Economies of Scale Single, Global Management Team Standardize Processes Common Sales & Marketing Materials

o Modified for Local Markets

CONFIDENTIAL 19

Build A Dominant International Cryo-Banking Company: Strategic Plan

#4: Expand Tissue Offering

• New Tissue Candidates Include:

• Wharton’s Jelly/Entire Cord

• Placental Tissue (MSCs)

• Amniotic Fluid (MSCs & HSCs)

• Autologous Marrowized Bone

• iPS Cell Lines

• Peripheral Blood/Bone Marrow

• ALDH Cells (Hematopoietic Stem And Progenitor Cells)

• Adipose Derived Mesenchymal Cells (MSCs)

CONFIDENTIAL 20

Agenda

I. The Market & Opportunity Broader Regenerative Medicine Market Cord Blood Market: Key Metrics & Market Leaders The Opportunity

II. Phase I: Build A Dominant International Cryo-Banking Company Acquire A Market Leader & Roll-Up Small Underperforming Banks Drive Revenues with Aggressive Sales & Marketing Expand Tissue Offering

III. Phase II: Bring RM Therapeutics To Emerging Markets Initial Therapies Leverage Stored Tissue Proven Therapies That Address Unmet Regional Medical Needs

IV. Funding & Exit Strategy Funding Required Exit Strategy

CONFIDENTIAL 21

Phase II: Bring RM Therapeutics to Emerging Markets

Selection Criteria for New RM Therapies

• Leverage Existing Tissues Cord Blood “Concentrated” MSCs & HSCs

• Autolgous Cells; Minimally Manipulated Simple Regulatory Path

• Established Record of Successful Treatments Proven Therapies Faster Time To Market & Revenues Build Track Record of Success

• Reasonable Market Size

CONFIDENTIAL 22

Phase II: Bring RM Therapeutics to Emerging Markets

Potential RM Therapies (Near Term)

• Cord Blood Leukemia Thalassemia; Sickle Cell Anemia Hematopoietic Restoration

• MSCs Peripheral Vascular Disease Cardio GvHD Immune Disorders

• HSCs Hematopoietic Restoration

CONFIDENTIAL 23

Phase II: Bring RM Therapeutics to Emerging Markets

Potential RM Therapies - Aesthetic Medicine

• MSCs (Adipose Derived) Skin Rejuvenation Anti-Wrinkle Reconstructive Surgery (Breast Implants)

• Fibroblasts Dermal Fillers

• Conditioned Media (Histogen; ReGen Biosciences) Hair Regrowth Skin Rejuvenation

CONFIDENTIAL 24

Phase II: Bring RM Therapeutics to Emerging Markets

Potential RM Therapies (Mid Term)

• Engineered Skin Products - Wound Repair Apligraf /Dermagraft Diabetic Foot Ulcers

• Dendritic Cells Prostate Cancer

• Cardio Products MSCs CHF or MI

• Fibroblasts ReCell - Wound Repair

• Vision Disorders• Corneal Transplants; RPEs

CONFIDENTIAL 25

Phase II: Bring RM Therapeutics to Emerging Markets

Potential Therapies (Long Term)

• Diabetes • Other Autoimmune Diseases (MS; Lupus; Crohn’s) • CNS Disorders

Parkinson's Alzheimer's Stroke

• Spinal Cord Repair • Tissue & Organs

Bladder Ligaments; Veins; Valves Cartilage

CONFIDENTIAL 26

Agenda

I. The Market & Opportunity Broader Regenerative Medicine Market Cord Blood Market: Key Metrics & Market Leaders The Opportunity

II. Phase I: Build A Dominant International Cryo-Banking Company Acquire A Market Leader & Roll-Up Small Underperforming Banks Drive Revenues with Aggressive Sales & Marketing Expand Tissue Offering

III. Phase II: Bring RM Therapeutics To Emerging Markets Initial Therapies Leverage Stored Tissue Proven Therapies That Address Unmet Regional Medical Needs

IV. Funding & Exit Strategy Funding Required Exit Strategy

CONFIDENTIAL 27

Funding & Exit Strategy

Funding Required: $75M

• Use of Proceeds: Acquisition of Market Leader Execute Roll-Up Of Small Underperforming Banks Centralize Banking Operations in Country/Region Expand Sales & Marketing Program

o Website Design; Call Center Operationso Expand Sales & Marketing Team o Education/Conferences for Transplant Surgeons & Transplant

Coordinators Acquire New Collection Technologies Bring All Facilities Up To cGMP Standards Fund Research on Cord Blood Therapies

CONFIDENTIAL 28

Funding & Exit Strategy

Exit Strategy: IPO in 24-36 Months

• Drive Revenues to $100M-$150M Revenue Ramp of 25% per Quarter Gross Profit Margins: 60%

• List on Most Favorable Exchange Current Cord Bank Valuations: 4-6X Revenues

• Expected Valuation Range: $300M-$600M Expected ROI: 30+% (3 years; assumes 50% ownership)

• Use Proceeds of IPO to Fund Introduction of RM Therapies

CONFIDENTIAL 29

MAJOR RISKS

• Risk: Decline In Market Price for Public Units Due to Increase in Supply

• 550,000 Units now; growing rapidly

o Risk Mitigation Strategy Product Differentiation: Store Higher Quality Product (TNC & CD34+ Counts) ;

Greater Genetic Diversity Expand Market: Increased Therapeutic Applications Drives Additional Demand

and Offsets Increases in Supply

• Risk: Cost of Roll-Up Increases Due to Market Pressures• Acquisition Targets Increase Demands with Knowledge of Roll-Up

Strategy

o Risk Mitigation Strategy Close on Initial Acquisition Targets Simultaneously

CONFIDENTIAL 30

MAJOR RISKS

• Risk: Failure to Execute • Typical Roll-Up Execution Risk

o Risk Mitigation Strategy Assemble World-Class Acquisition Team – Technical & Business (Chris

Mason; Melissa Carpenter) Leverage Proteus Team & Network

• Risk: Competition In Market • Other Groups Looking at Roll-Up Strategy (DW Harper; Cord Blood

America)

o Risk Mitigation Strategy Move Quickly to Acquire Key Targets : 18 Month Window

CONFIDENTIAL 31

CONFIDENTIAL 32

Proposal Re Cryo-Banking and Stem Cell Therapeutics Business

APPENIDX

Cord Blood Transplants Have Doubled In Last 5 Years (NMDP Data)

CONFIDENTIAL 33

Cord Blood Is the Preferred Cell Source for Pediatric Patients (NMDP Data)

CONFIDENTIAL 34

Adult Patients Are the Fastest Growing Population: 58% 0f 2010 Cord Transplants

CONFIDENTIAL 35

0

200

400

600

800

1,000

1,200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0-17 18+

Cord Blood Transplants By Patient Age (NMDP Data)

Transplant Outcomes Have Improved Dramatically in Last 5 Years

CONFIDENTIAL 36

• Improved HLA Matching;

• Advances in Conditioning Regimes; KEY FACTORS

• Advances in Post-Transplant Supportive Care

Report Year Period One-Year Survival

2008 2002-2006 54.0%

2007 2001-2005 51.5%

2006 2000-2004 48.8%

2003 1996-2001 42.2%

Clinical Outcomes Related to Quality of Tissue & Match

Quality of Tissue• TNC Count (150+)• CD34+ Count • Size of Unit

Matching Criteria • HLA Match (4/6 Min)• Race & Ethnicity Match • Genetic Match (DNA tissue typing)

CONFIDENTIAL 37

Key Metrics

Cord Shipments By TNC Count for Adults

CONFIDENTIAL 38

0

200

400

600

800

1,000

1,200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

150+

125-149

90-124

<90

Most Units (77%) for Adults Had TNC >150 (NMDP Data)

82% of all 2010 shipments came from 31% of the available inventory. (NMDP Data)

Less than 12518%

Greater than or equal to

12582%

TNC of Shipments -CY 2010

Less than 12569%

Greater than or equal to

12531%

TNC of Inventory as of June 30, 2010

Public Bank Utilization Rates: 2010 Inventory and Shipments

CONFIDENTIAL 39

Current Therapeutic Applications for Cord Blood

60+ Diseases Treated• Leukemias And Lymphomas, Including:

– Acute Myelogenous Leukemia

– Acute Lymphoblastic Leukemia• Multiple Myeloma And Other Plasma Cell Disorders• Severe Aplastic Anemia And Other Marrow Failure States, Including:

– Severe Aplastic Anemia

– Fanconi Anemia • SCID And Other Inherited Immune System Disorders, Including:

– Severe Combined Immunodeficiency (SCID, All Sub-types)

– Wiskott-aldrich Syndrome • Hemoglobinopathies, Including:

– Beta Thalassemia Major

– Sickle Cell Disease

CONFIDENTIAL 40

Diseases Treated: Hematologic Malignancies (NMDP Data)

CONFIDENTIAL 41

Diseases Treated:Non-Malignant Disorders (NMDP Data)

CONFIDENTIAL 42

Cord Blood Therapies in Clinical Development: 426 Ongoing FDA Trials

CONFIDENTIAL 43Source: ClinicalTrials.gov (www.clinicaltrials.gov)

FDA Trials Involving Cord Blood Address Numerous Conditions & Diseases

Source: ClinicalTrials.gov (www.clinicaltrials.gov)

• Bacterial and Fungal Diseases• Behaviors and Mental Disorders• Blood and Lymph Conditions• Cancers and Other Neoplasms• Digestive System Diseases• Diseases and Abnormalities at or

before Birth• Ear, Nose, and Throat Diseases• Eye Diseases• Gland and Hormone Related

Diseases• Heart and Blood Diseases• Immune System Diseases• Wounds and Injuries

• Mouth and Tooth Diseases• Muscle, Bone, and Cartilage Diseases• Nervous System Diseases• Nutritional and Metabolic Diseases• Parasitic Diseases• Respiratory Tract (Lung and Bronchial)

Diseases• Skin and Connective Tissue Diseases• Substance Related Disorders• Symptoms and General Pathology• Urinary Tract, Sexual Organs, and

Pregnancy Conditions• Viral Diseases

CONFIDENTIAL 44

NMDP Data

CONFIDENTIAL 45

NMDP Data

CONFIDENTIAL 46

NMDP Data

CONFIDENTIAL 47

Adult Patients Are the Fastest Growing Population: 58% 0f 2010 Cord Transplants

CONFIDENTIAL 48

Tissue Engineering: Skin Substitute/Wound Healing Products

EpiCel® CorMatrix ®

Apligraf ®

CONFIDENTIAL 49

RM Applications:Tissue Engineering – Skin & Wound Repair

Company Product Product Type Status IndicationOther

InformationPros/Cons

Organo-genesis

Apligraf®

Allogeneic neonatal fibroblasts/keratinoc

ytes on scaffoldCommercial

Diabetic skin ulcers

1st cell-based regenerative

product approved in 1998 in the

U.S.

3 times faster healing in

difficult wounds/Most

expensive, short shelf-life

LifeCell Corporation

AlloDerm® Acellular dermal allograft

Commercial

Abdominal wall

repair/breast reconstruction

Can be grafted simultaneously with epithelial

autografts; shelf life 2 yrs

No refrigeration or

freezing required/Potential for disease transmission

TengionNeo-

Bladder Augment™

Autologous urothelial and

muscle cells on biodegradable

scaffold for implantation

Phase II complete

(October 2008)

Bio-engineered

organs

12-month data presented at AUA

2009 annual conference

No immunosuppressive drugs/2 safety events

Osiris Therapeutics,

Inc.Prochymal®

Allogeneic adult mesenchymal stem

cell therapy

Phase III complete (May

2009)

Graft versus host disease

Fast Track designation

(FDA), Orphan Drug (FDA &

EMEA)

Large-scale production/P3

data: not statistically better than

placebo

RM Applications: Orthopedic

Company Product Product Type Status Indication Other Information Pros/Cons

TiGenixChondro-Celect®

Autologous chondrocytes

injection

EU approval (Oct 2009)

Cartilage repair

1st approved cell therapy by EMEA

More durable hyaline cartilage*/separate

periosteal** patch, 4-6 wks culture time

Genzyme Carticel®Autologous

chondrocytes injection

CommercialCartilage

repair Cell therapy in use for

10+ yrs in the U.S.

3-4 wks culture time/separate

periosteal patch

Aesculap Implant

Systems, Inc.

Novocart ®

3D

Autologous chondrocytes on 3D bioscaffold

Commercial in EU

Cartilage repair

Will be a biologic-device combination product in the U.S.

No periosteal patch/2-step process, biopsy &

implantation

Osiris Therapeutics

, Inc.Chondrogen®

Allogeneic adult mesenchymal

stem cell therapy

Phase I/II complete

(Feb 2008)

Osteoarthris and knee

injury

Alliance between Osiris and Genzyme

Off-the-shelf product potential; preliminary data: significant pain improvement/in-vitro

MSC proliferation could be limited

RM Applications: Cardiovascular

Company Product Product Type Indication Status Other Information Pros/Cons

Kensey Nash

CorporationAngio-Seal™

Vascular closure device

Arterial seal CommercialClass III device, in market since 1996

Easy to use/vascular

complications in 0.2-2% of patients*

Cytori

Adipose-derived stem

and regenerative

cells (ADRCs)

Autologous adult stem cell therapy

Heart failurePhase I in EU

(2007)Official data to be

reported in 1Q 2010

No cell culture; P1 met safety &

feasibility goal/

Advanced Cell

Technology, Inc.

MyoblastAutologous

skeletal myoblasts stem cell therapy

Heart failurePhase I

completed (2007)

Injection via a catheter,

1-yr data presented at 2007 AHA annual

meeting

No in-vitro differentiation; 1-yr

data: significant improvement in

tissue regrowth and function/requires

tissue culture, depends on in-vivo transdifferentiation

*Published data from Kadner K; et. al, Vasc Endovascular Surg 2008; 42; 225

CONFIDENTIAL 52

RM Applications: Cardiovascular

Company Product Product TypeIndicatio

nStatus Other Information Pros/Cons

Osiris Therapeutics,

Inc.Prochymal®

Allogeneic adult mesenchymal

stem cell therapy

Heart failure

Phase II (May 2009)

Intravenous infusion,

Phase I data in JACC (May 2009)

No in-vitro differentiation; 2-yr P1 data: 6.6 point

improvement in LVEF*; reduction in

arrhythmias (p<0.006)/cell

culture needed, limited in-vitro

MSC propagation

Geron GRNCM1hESC-derived cardiomyocytes

Heart failure

Pre-clinical

Intracardiac injection,

Data published in Nat Biot, 2007**

Successful engraftment and heart function in 100% of rats/in-

vitro differentiation; potential for

teratoma

*LVEF: Left Ventricular Ejection Fraction, a measure of overall heart function**Laflamme MA, et. al, Nature Biotechnology, 2007, 25: 1015-1024

CONFIDENTIAL 53

RM Applications: Diabetes

Company Product Product Type Indication Status Other Information Pros/Cons

NovocellHuman islets

encapsulated in PEG

Allogeneic cell therapy

Type 1 diabetes

Phase I/II complete (started in

2006)

Preliminary data presented in 66th

ADA

Results marginal/regular

insulin shots needed

NovocellhESC-derived human islets

Allogeneic cell therapy

Type 1and 2 diabetes

R&D2-yr drug discovery agreement w/ Pfizer

(Dec 2008)

Insulin production in mice/tumors

developed in 5% of treated mice*

*Nature Reports Stem Cells, 28 May 2009

CONFIDENTIAL 54

RM Applications: Diabetes

Company Product Product Type Indication Status Other Information Pros/Cons

Osiris Therapeutics,

Inc.Prochymal®

Allogeneic adult mesenchymal

stem cell therapy

Type 1 diabetes

Phase II (started in Jun 2008)

Collaborative agreement with JCR

Pharmaceuticals (2003), Japan &

JDRF (2007)

Good safety profile to

date/in-vitro MSC

proliferation could be limited

Harvard Stem Cell Institute

Induced pluripotent stem (iPS)

cells

Cell therapyType 1 and 2

diabetesR&D

Proc Natl Acad Sci USA (2009)

Differentiate mature cells

into beta cells/ low efficiency**

** Proceedings of National Academic Sciences USA (Sep 15 2009, Vol 106, 15768-15773)

CONFIDENTIAL 55

RM Applications: CNS

Company Product Product Type Indication Status Other Information Pros/Cons

Integra Life Sciences

CorporationNeuraWrapTM Collagen sleeve

implant

Peripheral nerve

protectionCommercial

Pre-cut*; bio-absorbable; easy

placement/repairs < 30-40mm

Opexa Therapeutics

Tovaxin® vaccine

Autologous myelin-reactive T

cell therapy

Multiple Sclerosis

Phase I/II complete

(Dec 2008)

Increased baseline disease burden in all

trial patients

55% reduction in relapses/primary and secondary endpoints

not met

* http://www.podiatrytoday.com/article/8978

Company ProductProduct

TypeIndicatio

nStatus

Other Information

Pros/Cons

GeronhESC-derived

oligodendrocytesAllogeneic cell therapy

Spinal cord

injuries

IND put on 2nd clinical hold (Aug

2009)*

More preclinical studies done

Locomotive function in animal model/high frequency of cysts in one preclinical study

Neuralstem, Inc.

Neural stem cellsAllogeneic fetal neural stem cells

ALS

Phase I approved

(December 2009)

Preclinical data in J of Comp

Neu Jun 2009,Tumor-free

pigs**

Neuroprotective effect seen in

rats***/in-vitro MSC propagation could be

limited

RM Applications: CNS

* http://www.stemcellresearchnews.com/absolutenm/anmviewer.asp?a=1768&z=9** http://money.cnn.com/2008/04/08/news/companies/stem_cell/index.htm*** Journal of Comparative Neurology, 514: 297-309 (2009)

CONFIDENTIAL 57

RM Applications: Oncology

Cancer Vaccines• Vaccine that uses greater concentration of tumor antigens to

give a boost to the immune systemTumor-specific antigensCells loaded with tumor-specific antigens

Adoptive T Cell Therapy• Isolation, ex-vivo expansion and activation, & infusion of T-

cells into patientTumor-infiltrating lymphocytes (TIL; lymchocytes inside the tumor)Engineered/genetically modified T cells

CONFIDENTIAL 58

Cancer: Adoptive T-Cell Therapy (TIL & T-Cells)

Source: J Clin Invest 2007 117:1466-76CONFIDENTIAL 59

RM Applications: Oncology/Hematology

Company/Institute

Product Product Type IndicationDevelopment

StageOther

InformationPros/Cons

Aastrom BioSciences,

Inc.

Vascular repair cells

Bone-marrow-derived adult stem

and progenitor cells

Vascular regeneration

Phase II started in Apr 2007

Data to be analyzed in 4Q

2009

Off-the-shelf potential; 9.5 mo data: evidence of

blood flow and wound healing/need

differentiation; in-vitro propagation could be limited

Dendreon Provenge®

Autologous dendritic cells

against prostatic acid phosphatase

Prostate cancer

BLA submitted (Nov 2009)

GMP facility

P3 data showed safety; reduced the

risk of death by 22.5%/treatment repeated 3 times

RM Applications: Oncology/Hematology

Company/Institute

Product Product Type IndicationDevelopment

StageOther Information Pros/Cons

U.S. National Cancer Institute

Tumor-infiltrating

lymphocytes (TIL)

Autologous T cell from melanoma tumor

MelanomaPhase II complete

(started in Jun 2003)

Treatment offered after a brief

chemotherapy

Tumor-specific T cells, T cell persistence post infusion/30-40% efficiency in producing TILs; long

culture time (wks); multiple rounds of T cell activation; requires IL-2 support

Roger William Medical Center

Designer/Engineered T

cells

Autologous T cell transduced to express

receptor for PSMA antibody

Prostate cancer

Phase I started April 2008

Retroviral transduction

No tumor tissue needed; short culture time (days); independent of TCR-MHC interaction/in-vivo antigen escape or poor expression; potential of genetic

mutagenesis

CONFIDENTIAL 61

RM Applications: Eye

Company ProductProduct

TypeIndication Status Other Information Pros/Cons

Advanced Cell Technology,

Inc.

hESC-derived retinal

pigmented epithelial

(RPE) cells

Allogeneic cell therapy

Adult macular degeneration

IND filed (Nov 2009)

GMP-compliant RPE cell line

(cryopreserved)

100% vision improvement in rats, no

ASE*, hESC line w/o embryo

destruction/potential for teratomas

Intercytex

hESC-derived retinal

pigmented epithelial

(RPE) cells on a synthetic

matrix

Allogeneic cell therapy

Adult macular degeneration

PreclinicalPhase I/II in UK in

late 2010

Vision improvement, no ASE in

preclinical/potential for teratomas

*ASE = Adverse Safety Event

RM Applications: Aesthetic Medicine

Source: Intercytex

Company Product Product Type Indication Status Other Information Pros/Cons

Fibrocell Science

Laviv™Autologous cell

therapyFacial

wrinkles

BLA review in progress (due

Jan 2010)cGMP facility

Significant wrinkle improvement

(p<0.0001)/exact mechanism of

action unknown

Intercytex ICX-TRCAutologous dermal papilla cell therapy

Male baldness and female hair

thinning

Phase II completed in

UK (Mar 2008)

Looking for partner for further clinical

development

Increase in hair count in 78% of

subjects/culture time

CONFIDENTIAL 63