An Introduction to May 2013 Table of Contents I. Executive Summary - - PowerPoint PPT Presentation

May 2013

An Introduction to

• Research. Investment Banking. Healthcare.

Table of Contents I. Executive Summary

• II. The Value Void
• III. The Healthios Exchange (“H/X”)

Appendices

• IV. H/X Case Studies & Empirical Track Record

Diabetic Nephropathy Diabetic Retinopathy Hypercholesterolemia Oral Mucositis Gout Acute Lymphocytic Leukemia Bone Metastasis Brain Cancer Breast Cancer Cervical Cancer Chronic Lymphocytic Leukemia Endometrial Cancer Ewing Sarcoma Gastric Cancer Gastrointestinal Stromal Tumors Head And Neck Cancer Hodgkin Lymphoma Kidney Cancer Liver Cancer Malignant Mesothelioma Medullary Thyroid Cancer Melanoma Multiple Myeloma Non-Hodgkin Lymphoma Non-Small Cell Lung Cancer Ovarian Cancer Pancreatic Cancer Testicular Cancer Thyroid Cancer Age Related Macular Degeneration Keratoconjunctivitis sicca (Dry Eye) Retinal Vein Occlusion Acute Respiratory Distress Syndrome Sepsis Staphylococcal Infections Acute Coronary Syndrome Angina Pectoris Atrial Fibrillation Coronary Artery Disease (CAD) Critical Limb Ischemia Hypertension Pulmonary Arterial Hypertension Acute Pain Anxiety Disorders Chronic Pain Dementia Diabetic Neuropathy Obsessive-Compulsive Disorder Osteoarthritis Pain Parkinson's Disease Post-Traumatic Stress Disorder Restless Legs Syndrome Schizophrenia Traumatic Brain Injury Liver Cirrhosis Childhood Enuresis Growth Hormone Disorders Hyperparathyroidism Hyperthyroidism Guillain-Barre Syndrome Cytomegalovirus Fungal Infections Gram-Negative Bacterial Infections H1N1 Infection Herpes Zoster HIV-1 Infection Human Papillomavirus Infections Staphylococcus Aureus (MRSA) Cardiovascular Devices Prosthetic Heart Valve Peripheral Vascular Devices Cardiovascular Monitoring & Diagnostic Devices Cardiovascular Surgery Cardiac Rhythm Management Cardiovascular Prosthetic Devices Interventional Cardiology Cardiac Assist Devices Wound Care Management Hospital Supplies Syringes and Needles Disposable Hospital & Surgical Supplies Drug Delivery Devices Inhalation Systems Needle Free Injections Infusion Systems Diabetes Care Devices Insulin Delivery & Glucose Monitoring Ophthalmic Devices Cataract Surgery Devices Ophthalmic Diagnostic Equipment Refractive Surgery Devices ENT Devices Hearing Implants Diagnostic Devices Electrosurgical Devices Dental Equipment & Accessories Diagnostic Imaging & MRI Systems C/T Systems & Mammography Equipment X-Ray & Ultrasound Systems Nuclear Imaging Equipment Contrast Media Injectors Bone Densitometry Anesthesia and Respiratory Devices Anesthesia Machines & Disposables Respiratory Devices & Disposables Sleep Apnea Diagnostic Systems Healthcare IT Medical Imaging Information Systems Nephrology and Urology Devices Renal Dialysis Equipment Orthopedic Devices Orthobiologics & Arthroscopy Joint Reconstruction Trauma Fixation Orthopedic Prosthetics Cranium Maxillofacial Fixation (CMF) Spinal Surgery Endoscopy Devices & instruments Rigid & Flexible Endoscope In Vitro Diagnostics Genetic Testing Clinical Chemistry Hematology Immuno Chemistry Infectious Immunology Histology And Cytology Patient Monitoring Multiparameter Patient Monitoring Micro-Electromechanical Systems Non-invasive Blood Pressure Monitors Neurology Devices Neurostimulation Devices Interventional Neurology CSF Management Neurosurgical Products Radiosurgery

Executive Summary

• Research. Investment Banking. Healthcare.

Healthios

I n v e s t m e n t B a n k i n g

Healthios is a boutique investment bank focused exclusively on the global healthcare industry. Healthios seeks to be the premier investment bank serving the global healthcare industry by combining the experience of (52) transactions in 17 countries with transformational capital markets solutions which broaden access to financing, lessen risk and maximize value.

G l o b a l I n v e s t m e n t M a r k e t p l a c e

Overview of the Firm

• Research. Investment Banking. Healthcare.

Executive Summary

In 2013, the 2nd generation of Healthios Exchange (“H/X”) will seek to transform the healthcare capital markets. Inspired by extraordinary economic and regulatory paradigms, the H/X will combine revolutionary technology with direct access to the individual healthcare investor, worldwide. In the process, H/X will generate $5 of NEW growth capital to support every $1 of institutional and strategic commitment.

• Healthcare is the largest, fastest growing and most dynamic market in the world
• Superior investment returns driven by favorable global demographics, universal

need, persistent innovation and rapid, sustained growth

Opportunity

• Value Void: “Gap” in global healthcare capital flows alters the risk/reward

equilibrium and provides transformational investment opportunities

Problem

• 2012 JOBS Law establishes new structural paradigm for capital markets
• Private Capital phenomenon & direct listing framework are catalyst for new

capital formation model

Context

• www.healthios.com / hx: End-to-end, cost effective, capital efficient, high-

velocity, standardized, transparent and secure transaction platform

• Financing the healthcare industry in the manner in which it capitalizes itself
• Database of 100,000 accredited investors, worldwide
• Proprietary asset classes designed to complement institutional, strategic capital
• CrowdFinance

TM, Foundation Place TM, EX.PR.E.S.S. TM, InMarket TM, LiquidNET TM

Solution

• Research. Investment Banking. Healthcare.

Global Healthcare Investment Environment

RELATIVE RETURN: S&P HCX vs. S&P

In total, healthcare is the world’s fastest growing industry. It generates superior investment yields. It attracts capital more readily and regularly.

TOTAL RETURN: NBI vs. HCX vs. S&P 400 Biotech vs. NASDAQ Healthcare Index vs. S&P 500

• 100%

0% 100% 200% 300% 400% 500% 600%

• 100%
• 80%
• 60%
• 40%
• 20%

0% 20% 40% 60% 80% 100%

ABSOLUTE RETURN: NBI vs. S&P

• 100%
• 50%

0% 50% 100% 150% 200% 250%

7

The Global Healthcare Industry

Company Name Stock Price % of 52 Wekk high LTM Total Rev Market Cap TEV Total Debt / LTM EBITDA TEV/LTM Total Rev TEV/LTM EBITDA 3 Yr. Revenue Growth LTM Gross Margin LTM EBITDA Margin Johnson & Johnson 64.74 $ 95% 65,030.0 177,716.4 165,082.4 1.0x 2.5x 8.5x 0.7% 68.8% 29.8% GlaxoSmithKline plc 22.26 $ 95% 42,629.0 110,143.4 125,497.1 1.5x 2.9x 7.9x 4.0% 73.5% 36.7% Abbott Laboratories 57.95 $ 100% 38,851.3 91,118.1 98,521.6 1.4x 2.5x 8.8x 9.6% 60.2% 28.7% AstraZeneca PLC 45.16 $ 90% 33,591.0 57,232.8 54,961.6 0.6x 1.6x 3.6x 2.1% 82.2% 44.7% Medtronic, Inc. 37.67 $ 87% 16,479.0 39,199.1 47,117.1 1.8x 2.9x 8.5x 4.0% 75.4% 33.8% Baxter International Inc. 58.89 $ 94% 13,893.0 32,998.8 35,531.8 1.3x 2.6x 9.2x 4.0% 51.4% 28.0% Covidien plc 52.39 $ 91% 11,703.0 25,322.1 27,990.1 1.4x 2.4x 8.6x 3.3% 57.5% 27.9% Stryker Corp. 52.90 $ 81% 8,307.0 20,156.0 18,506.0 0.7x 2.2x 7.5x 7.3% 67.9% 29.5% Becton, Dickinson and Company 76.82 $ 86% 7,874.5 16,140.1 17,617.7 1.9x 2.2x 7.9x 3.6% 51.8% 28.3%

• St. Jude Medical Inc.

41.80 $ 77% 5,611.7 13,333.7 15,105.9 1.7x 2.7x 9.2x 8.7% 73.5% 29.1% Synthes Inc. 169.51 $ 98% 3,973.8 20,135.5 17,685.8 0.1x 4.4x 10.9x 7.6% 79.4% 40.3% Essilor International SA 82.54 $ 99% 5,442.7 17,251.3 18,104.0 1.0x 3.3x 14.9x 10.9% 55.4% 21.4% Boston Scientific Corporation 5.95 $ 75% 7,622.0 8,631.7 12,625.7 2.4x 1.7x 7.2x (1.8%) 63.3% 22.9% Zimmer Holdings, Inc. 61.56 $ 88% 4,451.8 10,965.3 11,468.4 1.2x 2.6x 7.8x 2.6% 75.1% 33.0% Smith & Nephew plc 9.90 $ 88% 4,270.0 8,830.7 8,969.7 0.3x 2.1x 7.5x 4.0% 73.5% 27.9% Median 1.3x 2.5x 8.5x 4.0% 68.4% 29.7% New Enterprise Associates 140 General Electric Company 39 # of Companies 3507 Johnson & Johnson Development Corporation 99 Alere Inc. 38 # of Investors 679 Delphi Ventures 98 Koninklijke Philips Electronics NV 33 Investors / Company 0.2 Kleiner, Perkins, Caufield & Byers 94 Medtronic, Inc. 33 # of Rounds 991 Versant Ventures 93 Johnson & Johnson 31 # of Rounds / Company 0.3 InterWest Partners 91 RoundTable Healthcare Management, LLC 28

• Avg. Round Size ($M)

8 Domain Associates, L.L.C. 81 Total Invested ($M) 8,366 Three Arch Partners 77 # of Exits 892 3i Group plc 75 M&A Exits 747 SV Life Sciences Advisers LLP 69 Intrasense SAS 2/3/2012

• Public Offering Exits

145 De Novo Ventures 63 EOS imaging SA 2/1/2012 140 # of Illiquid Companies 2615 Oxford Bioscience Partners 62 Sphere Medical Holding PLC 10/20/2011 51 Illiquid Capital ($M) 39,217 Frazier Healthcare Ventures 60 3-D Matrix, Ltd. 9/16/2011 89 Illiquid Capital (3 Yrs) ($M) 11,460 Polaris Venture Partners, Inc. 58 Greenway Medical Technologies, Inc. 7/15/2011 546 % of Illquid Capital (3 Yrs) 29% MPM Capital 56 Boule Diagnostics AB 5/19/2011 23

Initial Public Offerings / Date / TEV ($M)

Trading Multiples Operating Statistics

Liquidity PUBLIC CAPITAL MARKETS PRIVATE INVESTMENT Most Active Venture Investors / Rounds

Size

Most Active Strategic Acquirors / Deals

Healthcare represents a $3 trillion global industry, growing 16% annually, capitalizing itself $13.8 million at a time through more than 9,000 negotiated transactions in 6,000 companies into which, on average, $49 million of capital is deployed over 6.2 years, yielding a “Cash-on-Cash” IRR equal to 4.1x and generating 81% liquidity on invested capital through 892 “Exit” events, of which 86% are M&A..

Healthcare’s Investment Bank

The Value Void

Healthios is the first to define the Value Void: A series of irrational, systematic dysfunctions – or, “Gaps” – in global healthcare capital flows in which financing requirements and investment returns are mis-aligned at sequential points along the development pathway. These dysfunctions are irrational in that they do not reflect extraordinary risk for which investors cannot be rewarded. Therein lies immense opportunity …

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

Private Institutional Investors Public Markets Strategic Buyers

IPO Venture Capital Angels / Grants Growth Equity / PE

THE VALUE VOID

Financing Requirements Investment Returns

• Research. Investment Banking. Healthcare.

2012 JOBS Law

Recent legislation has introduced a new paradigm in the financing of Emerging Growth healthcare companies, as the increasing prominence of the private markets will be underpinned by the “Crowd” and the deployment of advanced technologies.

Highlights Significance

Raises Shareholder Limits

Shareholder Cap increased from 500 to 2000

Lesser Restrictions On REG. A

New “REG A+” limit from $5 Mil to $50 Mil

Legalizes Crowd Funding

Non-accredited investment up to $1 Mil

Funding Platforms

Simplifies online posting and investing

Increases investor pool without forcing companies to go Public Small companies can raise more capital without going public Broader investor base will increase access to capital for small financings Kickstarter campaigns have drawn as many as 60,000 investors for $10 Mil

Lifts General Solicitation Ban

Issuers allowed to generally solicit investors including REG D Offerings

Issuers seeking capital from investors will be able to leverage the internet

• Research. Investment Banking. Healthcare.

The Appeal of Healthcare

According to a study by the Kaufman Foundation, there are 6 million accredited investors in the U.S., alone, yet only 10% have participated in Regulation D offerings since 2009. Healthcare ranks among the top priorities for these investors.

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

(Screen Shot)

THE Financial Marketplace for Healthcare

Powered by CrowdFundConnect

Diabetic Nephropathy Diabetic Retinopathy Hypercholesterolemia Oral Mucositis Gout Acute Lymphocytic Leukemia Bone Metastasis Brain Cancer Breast Cancer Cervical Cancer Chronic Lymphocytic Leukemia Endometrial Cancer Ewing Sarcoma Gastric Cancer Gastrointestinal Stromal Tumors Head And Neck Cancer Hodgkin Lymphoma Kidney Cancer Liver Cancer Malignant Mesothelioma Medullary Thyroid Cancer Melanoma Multiple Myeloma Non-Hodgkin Lymphoma Non-Small Cell Lung Cancer Ovarian Cancer Pancreatic Cancer Testicular Cancer Thyroid Cancer Age Related Macular Degeneration Keratoconjunctivitis sicca (Dry Eye) Retinal Vein Occlusion Acute Respiratory Distress Syndrome Sepsis Staphylococcal Infections Acute Coronary Syndrome Angina Pectoris Atrial Fibrillation Coronary Artery Disease (CAD) Critical Limb Ischemia Hypertension Pulmonary Arterial Hypertension Acute Pain Anxiety Disorders Chronic Pain Dementia Diabetic Neuropathy Obsessive-Compulsive Disorder Osteoarthritis Pain Parkinson's Disease Post-Traumatic Stress Disorder Restless Legs Syndrome Schizophrenia Traumatic Brain Injury Liver Cirrhosis Childhood Enuresis Growth Hormone Disorders Hyperparathyroidism Hyperthyroidism Guillain-Barre Syndrome Cytomegalovirus Fungal Infections Gram-Negative Bacterial Infections H1N1 Infection Herpes Zoster HIV-1 Infection Human Papillomavirus Infections Staphylococcus Aureus (MRSA) Cardiovascular Devices Prosthetic Heart Valve Peripheral Vascular Devices Cardiovascular Monitoring & Diagnostic Devices Cardiovascular Surgery Cardiac Rhythm Management Cardiovascular Prosthetic Devices Interventional Cardiology Cardiac Assist Devices Wound Care Management Hospital Supplies Syringes and Needles Disposable Hospital & Surgical Supplies Drug Delivery Devices Inhalation Systems Needle Free Injections Infusion Systems Diabetes Care Devices Insulin Delivery & Glucose Monitoring Ophthalmic Devices Cataract Surgery Devices Ophthalmic Diagnostic Equipment Refractive Surgery Devices ENT Devices Hearing Implants Diagnostic Devices Electrosurgical Devices Dental Equipment & Accessories Diagnostic Imaging & MRI Systems C/T Systems & Mammography Equipment X-Ray & Ultrasound Systems Nuclear Imaging Equipment Contrast Media Injectors Bone Densitometry Anesthesia and Respiratory Devices Anesthesia Machines & Disposables Respiratory Devices & Disposables Sleep Apnea Diagnostic Systems Healthcare IT Medical Imaging Information Systems Nephrology and Urology Devices Renal Dialysis Equipment Orthopedic Devices Orthobiologics & Arthroscopy Joint Reconstruction Trauma Fixation Orthopedic Prosthetics Cranium Maxillofacial Fixation (CMF) Spinal Surgery Endoscopy Devices & instruments Rigid & Flexible Endoscope In Vitro Diagnostics Genetic Testing Clinical Chemistry Hematology Immuno Chemistry Infectious Immunology Histology And Cytology Patient Monitoring Multiparameter Patient Monitoring Micro-Electromechanical Systems Non-invasive Blood Pressure Monitors Neurology Devices Neurostimulation Devices Interventional Neurology CSF Management Neurosurgical Products Radiosurgery

The Value Void

Healthcare’s Investment Bank

Healthcare Investment Cycle: 2000

Historical investment cycles allowed for growth capital to be deployed efficiently along the spectrum of the risk / development pathway for sustained & superior return.

L I Q U I D I T Y = I R R

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

IPO Venture Capital Follow-On Offerings

Private Markets Public Markets Strategic Buyers

Growth Equity / PE

NVCA U.S. Venture Capital Fund Healthcare Index: End-to-End Pooled IRR 1993 1994 1995 1996 1997 1998 1999 2000 17.5% 17.3% 29.5% 59.4% 26.7% 37.3% 84.9% 137.2%

Rational, harmonious, linear investment flows Vibrant private & public markets High capital velocity& liquid currencies Efficient valuations Predictable development horizons Active, dynamic information flows

2000

Healthcare’s Investment Bank

Emerging Growth Healthcare: 2007 – 2012

Key Capitalization, Valuation & Liquidity Measures Measure Notes

Total Enterprise Value of H/C Investments $ 82.3 B 48.3% of Capital Deployed Remains Unrealized Aggregate Value of Investment “Realizations” $ 42.5 B Total # of Sponsor-Backed H/C Companies 5,402 23.7% of Portfolio Companies created 100% of “Realizations” Sponsor-Backed Companies with “Exits” 1,295 “Exit” Events Attributable to M&A (%) 86.4% Dominance of M&A Strategic Buyers with Enterprise Value > $250 Million 1,982 Intense Selectivity, High Uncertainty Few “Winners” M&A Transactions Per Strategic Buyer 0.564 Ratio of Emerging Growth Companies to Strategic Buyer 2.8 Average # Of Milestone Transactions Per EGC Prior To Exit 5.73 Importance of Strategic Validation Milestone Transactions Attributable to a Strategic Nature (%) 66.9% Financing Events Comprised Of Syndicates Of > 0 New Investors (%) 57.3% Syndicate Risk, Capital Concentration Number of Financing Rounds (avg. per Company) 3.9 2010 NVCA Wght.’d Avg. Pooled Gross IRR (%) for Healthcare Sector 20.9% 17.7% improvement over 2006 Average Investment Per Financing Round $13.8 M “Exit” Value As Multiple Of Total Invested Capital: 4.1 x Total Invested Capital Over Horizon (avg. per Company) $49.7 M Median M&A Enterprise Value at Liquidity $200.7 million During the past decade, the healthcare capital markets have been transformed, as (i) the number of venture capital firms has declined by 62% and aggregate annual investments by VC’s has fallen 14.8%; (ii) as the number of IPO’s has collapsed by 79.2%; while, (iii) overall capital inflows into emerging growth healthcare has increased 17%; (iv) the pace

• f investment by Corporate Venture Capital has increased by 93%; and, (v) the amount of “dry powder” funds under

management by growth & private equity firms has increased at a 29% CAGR to $175 billion.

Healthcare’s Investment Bank

Healthcare Investment Cycle: 2013 …

Dramatic shifts in the global capital markets have altered the healthcare investment cycle and imposed intense complexity in the way value is created – and realized.

I R R

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

Private Institutional Investors Public Markets Strategic Buyers

IPO Venture Capital Angels / Grants Growth Equity / PE

EMERGING GROWTH HEALTHCARE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 NVCA Distribution to Paid-in-Capital 0.64 0.58 0.61 0.46 0.27 0.23 0.23 0.11 0.10 0.02 NVCA Gross Pooled Weighted IRR 9.7% 11.7% 11.9% 9.7% 3.6% 11.7% 14.6% 22.2% 19.8% 19.2%

• Prolonged Investment Cycles
• Dependence On M&A as sole “Exit” Pathway
• Shifting Risk Paradigm
• Negotiated Transactions based on ‘Best Information’
• Fragmentation Of Capital Flows
• Severe Liquidity Constraints
• Deteriorating Capital Velocity & Asset Dislocation
• Dominance Of Private Financing Market

2013

Healthcare’s Investment Bank

The Value Void

Healthios is the first to define the Value Void: A series of irrational, systematic dysfunctions – or, “Gaps” – in global healthcare capital flows in which financing requirements and investment returns are mis-aligned at sequential points along the development pathway. These dysfunctions are irrational in that they do not reflect extraordinary risk for which investors cannot be rewarded. Therein lies immense opportunity …

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

Private Institutional Investors Public Markets Strategic Buyers

IPO Venture Capital Angels / Grants Growth Equity / PE

THE VALUE VOID

Financing Requirements Investment Returns

Healthcare’s Investment Bank

The Value Void

Although the global healthcare industry continues to generate premium returns, such realizations are only available those who have capital.

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

According to the Kaufman Foundation, 81% of healthcare VC’s do not invest in “early-stage” Since 2009, the number of VC funds has declined by 13% Since 2010, 77% of the capital commitments to VC funds has been raised by 30% of the VC’s 52.7% of financing events in the emerging growth healthcare market between 2006 and 2011 were supported by investor syndicates comprised of zero new investors In 2012, 300% more capital has been invested into Emerging Growth Healthcare companies than has been raised by healthcare venture capital firms from own their limited partners 59.3% of M&A transactions in 2012 have been consummated at values in excess of 4x invested capital, while 23.5% generated more than 10x. 98.8% of the market capitalization of the top 20 healthcare companies is trading above 90% of their 52-week highs, yet capital liquidity for sub-$350 M market cap has declined 1000% since 2000. Since 2009, capital inflows into emerging growth healthcare companies of market capitalization less than $200 million, including private companies, has increased 17% In 2012, the pace of investment by Corporate Venture Capital (“CVC”) has increased dramatically, as the number of consummated transactions and the amount of capital deployed expanded by 50% and 93%, respectively…

Diabetic Nephropathy Diabetic Retinopathy Hypercholesterolemia Oral Mucositis Gout Acute Lymphocytic Leukemia Bone Metastasis Brain Cancer Breast Cancer Cervical Cancer Chronic Lymphocytic Leukemia Endometrial Cancer Ewing Sarcoma Gastric Cancer Gastrointestinal Stromal Tumors Head And Neck Cancer Hodgkin Lymphoma Kidney Cancer Liver Cancer Malignant Mesothelioma Medullary Thyroid Cancer Melanoma Multiple Myeloma Non-Hodgkin Lymphoma Non-Small Cell Lung Cancer Ovarian Cancer Pancreatic Cancer Testicular Cancer Thyroid Cancer Age Related Macular Degeneration Keratoconjunctivitis sicca (Dry Eye) Retinal Vein Occlusion Acute Respiratory Distress Syndrome Sepsis Staphylococcal Infections Acute Coronary Syndrome Angina Pectoris Atrial Fibrillation Coronary Artery Disease (CAD) Critical Limb Ischemia Hypertension Pulmonary Arterial Hypertension Acute Pain Anxiety Disorders Chronic Pain Dementia Diabetic Neuropathy Obsessive-Compulsive Disorder Osteoarthritis Pain Parkinson's Disease Post-Traumatic Stress Disorder Restless Legs Syndrome Schizophrenia Traumatic Brain Injury Liver Cirrhosis Childhood Enuresis Growth Hormone Disorders Hyperparathyroidism Hyperthyroidism Guillain-Barre Syndrome Cytomegalovirus Fungal Infections Gram-Negative Bacterial Infections H1N1 Infection Herpes Zoster HIV-1 Infection Human Papillomavirus Infections Staphylococcus Aureus (MRSA) Cardiovascular Devices Prosthetic Heart Valve Peripheral Vascular Devices Cardiovascular Monitoring & Diagnostic Devices Cardiovascular Surgery Cardiac Rhythm Management Cardiovascular Prosthetic Devices Interventional Cardiology Cardiac Assist Devices Wound Care Management Hospital Supplies Syringes and Needles Disposable Hospital & Surgical Supplies Drug Delivery Devices Inhalation Systems Needle Free Injections Infusion Systems Diabetes Care Devices Insulin Delivery & Glucose Monitoring Ophthalmic Devices Cataract Surgery Devices Ophthalmic Diagnostic Equipment Refractive Surgery Devices ENT Devices Hearing Implants Diagnostic Devices Electrosurgical Devices Dental Equipment & Accessories Diagnostic Imaging & MRI Systems C/T Systems & Mammography Equipment X-Ray & Ultrasound Systems Nuclear Imaging Equipment Contrast Media Injectors Bone Densitometry Anesthesia and Respiratory Devices Anesthesia Machines & Disposables Respiratory Devices & Disposables Sleep Apnea Diagnostic Systems Healthcare IT Medical Imaging Information Systems Nephrology and Urology Devices Renal Dialysis Equipment Orthopedic Devices Orthobiologics & Arthroscopy Joint Reconstruction Trauma Fixation Orthopedic Prosthetics Cranium Maxillofacial Fixation (CMF) Spinal Surgery Endoscopy Devices & instruments Rigid & Flexible Endoscope In Vitro Diagnostics Genetic Testing Clinical Chemistry Hematology Immuno Chemistry Infectious Immunology Histology And Cytology Patient Monitoring Multiparameter Patient Monitoring Micro-Electromechanical Systems Non-invasive Blood Pressure Monitors Neurology Devices Neurostimulation Devices Interventional Neurology CSF Management Neurosurgical Products Radiosurgery

The Healthios Exchange

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

Rationale

Proliferation of personal wealth on a global basis Humanitarian appeal of healthcare investing Increasing sophistication of individual investors Absence of investment yield in conventional investment instruments

(e.g. “blue-chip” stocks, bonds, real estate)

Appeal of flexible investment structures, multi-tiered portfolios & transaction-oriented exits Need for transparency Lack of access to alternative investments Appetite for direct investing alongside top-tier VC’s, private equity & alternative investors Aversion to excess fees and carried interest associated with traditional investment funds Inconsistency of alternative investment funds

(e.g. Private equity, fund-of-funds)

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

An online investment marketplace dedicated exclusively to the global healthcare industry. The goal of the H/X is to revolutionize healthcare capital flows by generating $5 of new growth capital to support every dollar of institutional and strategic commitment.

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

… To its unique structure…

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

… and, To the distinct manner in which it capitalizes itself. A revolutionary investment marketplace dedicated exclusively to the global healthcare industry…

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

An online investment marketplace dedicated exclusively to the global healthcare industry. The goal of the H/X is to revolutionize healthcare capital flows by generating $5 of new growth capital to support every dollar of institutional and strategic commitment.

A revolutionary investment marketplace dedicated exclusively to the global healthcare industry…

Database of 100,000 accredited investors, worldwide Family offices, private banks, HNW individuals, foreign trusts Eradicating the Value Void Accelerate Access to Capital “Expand the Pie” Broaden Exit & Liquidity Alternatives Maximizing Company Value while Preserving Valuation Enhancing Capital Efficiency, Velocity & Liquidity Reducing Costs, Uncertainty

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

A revolutionary investment marketplace dedicated exclusively to the global healthcare industry…

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

… To its unique structure…

End-to-End Solution

1st $ invested… to the last $ realized

“H/X @” Conferences 2,100 Weekly Lifelines Management Presentations LinkedIn Groups The H/X Scoring System Capital Flows Sector-Oriented… EcoSystem-Driven… Milestone-Measured Liquidity Indexing Grand Rounds Market Reports, Forecasts & Financial Models Shareholder Reports & Portfolio Analysis Benchmarking:

I/P Databases; Pipeline Products; Milestones; Value/ Price Thresholds

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

A revolutionary investment marketplace dedicated exclusively to the global healthcare industry… To its unique structure…

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

… and, To the distinct manner in which it capitalizes itself.

Novel investment instruments within paradigm-shifting asset classes 100% complementary, like-minded to incumbent capital flows Point-to-Point, “No Limitations” Financing Non-dilutive capital Capital market solutions to “Expand the Pie”, maximize IRR’s Harnessing the public markets to inspire transformational growth Innovative, multi-dimensional liquidity alternatives Aligned interest, shared risk, mutual incentives

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

An online investment marketplace dedicated exclusively to the global healthcare industry. The goal of the H/X is to revolutionize healthcare capital flows by generating $5 of new growth capital to support every dollar of institutional and strategic commitment.

Discovery Develop - ment I N D Phase I Phase II Phase III N D A Approval Launch Growth Mature

… To its unique structure…

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

… and, To the distinct manner in which it capitalizes itself. A revolutionary investment marketplace dedicated exclusively to the global healthcare industry…

Diabetic Nephropathy Diabetic Retinopathy Hypercholesterolemia Oral Mucositis Gout Acute Lymphocytic Leukemia Bone Metastasis Brain Cancer Breast Cancer Cervical Cancer Chronic Lymphocytic Leukemia Endometrial Cancer Ewing Sarcoma Gastric Cancer Gastrointestinal Stromal Tumors Head And Neck Cancer Hodgkin Lymphoma Kidney Cancer Liver Cancer Malignant Mesothelioma Medullary Thyroid Cancer Melanoma Multiple Myeloma Non-Hodgkin Lymphoma Non-Small Cell Lung Cancer Ovarian Cancer Pancreatic Cancer Testicular Cancer Thyroid Cancer Age Related Macular Degeneration Keratoconjunctivitis sicca (Dry Eye) Retinal Vein Occlusion Acute Respiratory Distress Syndrome Sepsis Staphylococcal Infections Acute Coronary Syndrome Angina Pectoris Atrial Fibrillation Coronary Artery Disease (CAD) Critical Limb Ischemia Hypertension Pulmonary Arterial Hypertension Acute Pain Anxiety Disorders Chronic Pain Dementia Diabetic Neuropathy Obsessive-Compulsive Disorder Osteoarthritis Pain Parkinson's Disease Post-Traumatic Stress Disorder Restless Legs Syndrome Schizophrenia Traumatic Brain Injury Liver Cirrhosis Childhood Enuresis Growth Hormone Disorders Hyperparathyroidism Hyperthyroidism Guillain-Barre Syndrome Cytomegalovirus Fungal Infections Gram-Negative Bacterial Infections H1N1 Infection Herpes Zoster HIV-1 Infection Human Papillomavirus Infections Staphylococcus Aureus (MRSA) Cardiovascular Devices Prosthetic Heart Valve Peripheral Vascular Devices Cardiovascular Monitoring & Diagnostic Devices Cardiovascular Surgery Cardiac Rhythm Management Cardiovascular Prosthetic Devices Interventional Cardiology Cardiac Assist Devices Wound Care Management Hospital Supplies Syringes and Needles Disposable Hospital & Surgical Supplies Drug Delivery Devices Inhalation Systems Needle Free Injections Infusion Systems Diabetes Care Devices Insulin Delivery & Glucose Monitoring Ophthalmic Devices Cataract Surgery Devices Ophthalmic Diagnostic Equipment Refractive Surgery Devices ENT Devices Hearing Implants Diagnostic Devices Electrosurgical Devices Dental Equipment & Accessories Diagnostic Imaging & MRI Systems C/T Systems & Mammography Equipment X-Ray & Ultrasound Systems Nuclear Imaging Equipment Contrast Media Injectors Bone Densitometry Anesthesia and Respiratory Devices Anesthesia Machines & Disposables Respiratory Devices & Disposables Sleep Apnea Diagnostic Systems Healthcare IT Medical Imaging Information Systems Nephrology and Urology Devices Renal Dialysis Equipment Orthopedic Devices Orthobiologics & Arthroscopy Joint Reconstruction Trauma Fixation Orthopedic Prosthetics Cranium Maxillofacial Fixation (CMF) Spinal Surgery Endoscopy Devices & instruments Rigid & Flexible Endoscope In Vitro Diagnostics Genetic Testing Clinical Chemistry Hematology Immuno Chemistry Infectious Immunology Histology And Cytology Patient Monitoring Multiparameter Patient Monitoring Micro-Electromechanical Systems Non-invasive Blood Pressure Monitors Neurology Devices Neurostimulation Devices Interventional Neurology CSF Management Neurosurgical Products Radiosurgery

The H/X: Global Listing & Transaction Platform

• Research. Investment Banking. Healthcare.

H/X Listing Levels

H/X LISTING LEVELS Access Level Listing Service Global EcoSystem Institutional Universal GrandRounds X.PR.E.S.S. ONE COMPANY. ONE PAGE. Accredited Investors √ √ √ √ √

• I n s t i t u t i o n a l L e a d e r s h i p
• S t r a t e g i c Va l i d a t i o n
• 1 2 - t o 2 4 - M o n t h “ E x i t ” H o r i z o n

Investment Research √ √ √ √ √ H/X Company Scoring √ √ √ √ √ Virtual Data Room √ √ √ √ √ Compliance (Reg. D, etc.) √ √ √ √ √ Transaction Processing √ √ √ √ √ Reporting √ √ √ √ √ OPEN MARKETS H/X Marketcast (Monthly) √ √ √ √ Peer Grouping √ √ √ √ “Seed to Exit” Placement √ √ √ √ Access to H/X GLOBAL CAPITAL SOURCES H/X Referrals √ √ √ Webinars √ √ √ “H/X @” Conferences √ √ √ Curating & Positioning √ √ Roadshows √ √ Access to STRATEGIC BUYERS H/X Introductions √ √ One-on-One’s √ H/X Syndication √ Listing Fee ($’s / month) Free TBD TBD TBD TBD TBD

A range of capital markets solutions to nurture the success of every emerging growth healthcare company throughout the entire investment and liquidity horizon.

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

20,000 Accredited Investors, Worldwide, Participating With The Most Compelling Emerging Growth Healthcare Companies. Healthcare’s Investment Marketplace

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

Database of 100,000 Accredited Investors Global Listings of EGC’s Secure, Private Transaction Interface Real-Time Feedback

• Research. Investment Banking. Healthcare.

The Healthios Exchange (“H/X”)

Channeling the humanitarian mission of leading foundations and for-profits to attract non-dilutive financing while attaining important validation Healthcare’s Investment Marketplace

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

L3.C, 501(c)3 Non-Dilutive Financing (Q2 2013)

• Research. Investment Banking. Healthcare.

H/X EX.PR.E.S.S: A New Asset Class

EXclusive.PReferred.EmergingGrowth.Sponsored.Security

Healthcare’s Investment Marketplace

Target IRR = 25% Multiple of Invested Capital = 4.4x Investment Period: 12- to 24-months % of Cash Realized at “Exit”: 80% % of Cash Realized 360 days after

“Exit”: 100%

Proprietary Reg. D Investment Instrument Differentiated Deal Flow to Worldwide

Private Capital & B/D Network

Exclusive Investment Discipline:

1. Institutional Leadership 2. Strategic Validation 3. 12- to 24-month “Exit”

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

• Research. Investment Banking. Healthcare.

H/X InMarket

Harnessing The Public Markets To Inspire Transformational Growth Strategies.

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

OTCBB Reverse Mergers “At-the-Market” Syndicated Direct (Q2 2013)

• Research. Investment Banking. Healthcare.

H/X LiquidNET

A secondary transaction environment committed to generating liquidity for investors by making markets in a range of asset classes.

CrowdFinance EX.PR.E.S.S. Foundation Place INMarket LiquidNET

Secondary Sales Pre-M&A, Pre-IPO Equity / Debt Founders Shares Primary / Secondary Structures Earn-Outs / Contingencies / Escrows Transition Plans

Diabetic Nephropathy Diabetic Retinopathy Hypercholesterolemia Oral Mucositis Gout Acute Lymphocytic Leukemia Bone Metastasis Brain Cancer Breast Cancer Cervical Cancer Chronic Lymphocytic Leukemia Endometrial Cancer Ewing Sarcoma Gastric Cancer Gastrointestinal Stromal Tumors Head And Neck Cancer Hodgkin Lymphoma Kidney Cancer Liver Cancer Malignant Mesothelioma Medullary Thyroid Cancer Melanoma Multiple Myeloma Non-Hodgkin Lymphoma Non-Small Cell Lung Cancer Ovarian Cancer Pancreatic Cancer Testicular Cancer Thyroid Cancer Age Related Macular Degeneration Keratoconjunctivitis sicca (Dry Eye) Retinal Vein Occlusion Acute Respiratory Distress Syndrome Sepsis Staphylococcal Infections Acute Coronary Syndrome Angina Pectoris Atrial Fibrillation Coronary Artery Disease (CAD) Critical Limb Ischemia Hypertension Pulmonary Arterial Hypertension Acute Pain Anxiety Disorders Chronic Pain Dementia Diabetic Neuropathy Obsessive-Compulsive Disorder Osteoarthritis Pain Parkinson's Disease Post-Traumatic Stress Disorder Restless Legs Syndrome Schizophrenia Traumatic Brain Injury Liver Cirrhosis Childhood Enuresis Growth Hormone Disorders Hyperparathyroidism Hyperthyroidism Guillain-Barre Syndrome Cytomegalovirus Fungal Infections Gram-Negative Bacterial Infections H1N1 Infection Herpes Zoster HIV-1 Infection Human Papillomavirus Infections Staphylococcus Aureus (MRSA) Cardiovascular Devices Prosthetic Heart Valve Peripheral Vascular Devices Cardiovascular Monitoring & Diagnostic Devices Cardiovascular Surgery Cardiac Rhythm Management Cardiovascular Prosthetic Devices Interventional Cardiology Cardiac Assist Devices Wound Care Management Hospital Supplies Syringes and Needles Disposable Hospital & Surgical Supplies Drug Delivery Devices Inhalation Systems Needle Free Injections Infusion Systems Diabetes Care Devices Insulin Delivery & Glucose Monitoring Ophthalmic Devices Cataract Surgery Devices Ophthalmic Diagnostic Equipment Refractive Surgery Devices ENT Devices Hearing Implants Diagnostic Devices Electrosurgical Devices Dental Equipment & Accessories Diagnostic Imaging & MRI Systems C/T Systems & Mammography Equipment X-Ray & Ultrasound Systems Nuclear Imaging Equipment Contrast Media Injectors Bone Densitometry Anesthesia and Respiratory Devices Anesthesia Machines & Disposables Respiratory Devices & Disposables Sleep Apnea Diagnostic Systems Healthcare IT Medical Imaging Information Systems Nephrology and Urology Devices Renal Dialysis Equipment Orthopedic Devices Orthobiologics & Arthroscopy Joint Reconstruction Trauma Fixation Orthopedic Prosthetics Cranium Maxillofacial Fixation (CMF) Spinal Surgery Endoscopy Devices & instruments Rigid & Flexible Endoscope In Vitro Diagnostics Genetic Testing Clinical Chemistry Hematology Immuno Chemistry Infectious Immunology Histology And Cytology Patient Monitoring Multiparameter Patient Monitoring Micro-Electromechanical Systems Non-invasive Blood Pressure Monitors Neurology Devices Neurostimulation Devices Interventional Neurology CSF Management Neurosurgical Products Radiosurgery

APPENDIX

Diabetic Nephropathy Diabetic Retinopathy Hypercholesterolemia Oral Mucositis Gout Acute Lymphocytic Leukemia Bone Metastasis Brain Cancer Breast Cancer Cervical Cancer Chronic Lymphocytic Leukemia Endometrial Cancer Ewing Sarcoma Gastric Cancer Gastrointestinal Stromal Tumors Head And Neck Cancer Hodgkin Lymphoma Kidney Cancer Liver Cancer Malignant Mesothelioma Medullary Thyroid Cancer Melanoma Multiple Myeloma Non-Hodgkin Lymphoma Non-Small Cell Lung Cancer Ovarian Cancer Pancreatic Cancer Testicular Cancer Thyroid Cancer Age Related Macular Degeneration Keratoconjunctivitis sicca (Dry Eye) Retinal Vein Occlusion Acute Respiratory Distress Syndrome Sepsis Staphylococcal Infections Acute Coronary Syndrome Angina Pectoris Atrial Fibrillation Coronary Artery Disease (CAD) Critical Limb Ischemia Hypertension Pulmonary Arterial Hypertension Acute Pain Anxiety Disorders Chronic Pain Dementia Diabetic Neuropathy Obsessive-Compulsive Disorder Osteoarthritis Pain Parkinson's Disease Post-Traumatic Stress Disorder Restless Legs Syndrome Schizophrenia Traumatic Brain Injury Liver Cirrhosis Childhood Enuresis Growth Hormone Disorders Hyperparathyroidism Hyperthyroidism Guillain-Barre Syndrome Cytomegalovirus Fungal Infections Gram-Negative Bacterial Infections H1N1 Infection Herpes Zoster HIV-1 Infection Human Papillomavirus Infections Staphylococcus Aureus (MRSA) Cardiovascular Devices Prosthetic Heart Valve Peripheral Vascular Devices Cardiovascular Monitoring & Diagnostic Devices Cardiovascular Surgery Cardiac Rhythm Management Cardiovascular Prosthetic Devices Interventional Cardiology Cardiac Assist Devices Wound Care Management Hospital Supplies Syringes and Needles Disposable Hospital & Surgical Supplies Drug Delivery Devices Inhalation Systems Needle Free Injections Infusion Systems Diabetes Care Devices Insulin Delivery & Glucose Monitoring Ophthalmic Devices Cataract Surgery Devices Ophthalmic Diagnostic Equipment Refractive Surgery Devices ENT Devices Hearing Implants Diagnostic Devices Electrosurgical Devices Dental Equipment & Accessories Diagnostic Imaging & MRI Systems C/T Systems & Mammography Equipment X-Ray & Ultrasound Systems Nuclear Imaging Equipment Contrast Media Injectors Bone Densitometry Anesthesia and Respiratory Devices Anesthesia Machines & Disposables Respiratory Devices & Disposables Sleep Apnea Diagnostic Systems Healthcare IT Medical Imaging Information Systems Nephrology and Urology Devices Renal Dialysis Equipment Orthopedic Devices Orthobiologics & Arthroscopy Joint Reconstruction Trauma Fixation Orthopedic Prosthetics Cranium Maxillofacial Fixation (CMF) Spinal Surgery Endoscopy Devices & instruments Rigid & Flexible Endoscope In Vitro Diagnostics Genetic Testing Clinical Chemistry Hematology Immuno Chemistry Infectious Immunology Histology And Cytology Patient Monitoring Multiparameter Patient Monitoring Micro-Electromechanical Systems Non-invasive Blood Pressure Monitors Neurology Devices Neurostimulation Devices Interventional Neurology CSF Management Neurosurgical Products Radiosurgery

EX.PR.E.S.S. Case Studies & Track Record

Healthcare’s Investment Bank

EX.PR.E.S.S.: Proprietary Deal Flow

Healthios has quantified relationships with the most successful institutional investors. This ensures the most predictable, highest quality EX.PR.E.S.S. offerings.

Capital Under No. of Lifelines # Scored % Rank Latest Fund Latest Fund Account Name Management "Opens" Last Activity Activities in Healthcare % Rank # Rank

Essex Woodlands Health Ventures $ 2,374,000,000 252 11/20/2012 13 34.82% 95.16% 1 Inventages Venture Capital Investment Inc. $ 1,320,000,000 1 11/5/2012 1 25.60% 93.75% 2 Norwest Venture Partners $ 1,850,000,000 84 11/20/2012 1 8.46% 92.75% 3 Advanced Technology Ventures $ 1,475,000,000 29 11/19/2012 4 33.57% 91.94% 4 Prospect Venture Partners $ 600,000,000 1 11/19/2012 2 34.02% 88.89% 5 InterWest Partners LLC $ 2,606,000,000 3 11/21/2012 1 35.81% 88.71% 6 Institutional Venture Partners $ 2,552,000,000 9 12/8/2011 27.77% 88.00% 7 Western Technology Investment $ 2,584,000,000 17 2/26/2012 2 47.10% 86.83% 8 SCP Partners $ 1,010,000,000 5 9/18/2012 2 47.10% 84.16% 9 SV Life Sciences Advisers LLP $ 1,907,000,000 41 11/19/2012 6 35.56% 83.87% 10 Clarus Ventures $ 1,160,000,000 166 11/19/2012 3 31.58% 80.56% 11 Thoma Cressey Bravo $ 1,769,000,000 1 2/26/2012 2 20.62% 79.64% 12 Bay City Capital LLC $ 961,000,000 31 11/19/2012 4 32.38% 79.41% 13 Domain Associates, L.L.C. $ 1,824,000,000 44 11/26/2012 7 35.69% 79.03% 14 Mohr Davidow Ventures $ 2,252,000,000 27 8/29/2012 1 31.32% 77.25% 15 CMEA Capital $ 786,000,000 83 8/1/2012 7 32.38% 74.19% 16 Aisling Capital $ 1,649,000,000 4 11/16/2012 1 24.14% 73.33% 17 North Bridge Venture Partners $ 2,110,000,000 1 11/9/2012 1 18.37% 72.46% 18 Frazier Healthcare Ventures $ 1,802,000,000 26 11/26/2012 5 35.49% 72.22% 19 Three Arch Partners $ 1,060,000,000 168 11/27/2012 5 35.62% 70.30% 20 Versant Ventures, Inc. $ 1,550,000,000 17 11/27/2012 6 35.78% 69.46% 21 Venrock $ 2,746,000,000 77 10/23/2012 5 35.36% 69.36% 22 Skyline Ventures $ 773,000,000 1 11/21/2012 3 34.37% 69.36% 23 HealthCare Ventures LLC $ 1,193,000,000 6 8/29/2012 4 28.63% 68.57% 24 MPM Capital $ 2,820,000,000 3 11/26/2012 6 35.30% 66.67% 25

Other Notable Investors:

OrbiMed Advisors, L.L.C. $ 1,035,000,000 3 11/27/2012 2 35.11% 66.67% 28 QuestMark Partners $ 755,000,000 78 9/13/2012 14 28.63% 52.10% 49 Saints Capital $ 300,000,000 87 11/26/2012 2 27.00% 52.10% 50 Ascension Health Ventures, LLC $ 225,000,000 116 11/27/2012 4 34.47% 44.31% 67 Delphi Ventures $ 502,000,000 113 11/20/2012 4 35.75% 41.18% 73

Healthcare’s Investment Bank

H/X: 2012 Achievements

In 2012, Healthios clients raised ~ $50 M in EX.PR.E.S.S. offerings, solving the value void while generating proprietary investment opportunities and providing superior financing alternatives according to a disciplined, "Rules Based" investment strategy.

Has completed its $6,000,000 Series A financing PINNACLE BIOLOGICS, INC.

THE UNDERSIGNED ACTED AS EXCLUSIVE FINANCIAL ADVISOR TO PINNACLE

STEADYMED, LTD

THE UNDERSIGNED ACTED AS EXCLUSIVE FINANCIAL ADVISOR TO STEADYMED

Has issued $10,000,000 Series B Preferred Stock WELLDOC, INC.

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR WELLDOC

Has issued $20,000,000 Series B Preferred Stock

• Research. Investment Banking. Healthcare.

Healthios EX.PR.E.S.S.

Case Studies

CORIUM INTERNATIONAL, INC.

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO CORIUM INTERNATIONAL

Has issued $35 million in Interest-Bearing High Yield Securities Has completed a global collaboration with

THE UNDERSIGNED ACTED AS FINANCIAL ADVISOR TO LIQUIDIA

LIQUIDIA TECHNOLOGIES, INC.

36

Company

Advanced transdermal drug delivery company

EX.PR.E.S.S. Rules?

Institutional Sponsorship; Strategic Validation; 24-month “Exit”

Co-Investor / Lead

Aphelion Capital; Essex Woodlands; Quantum Technology Partners

Result

Partnership with Procter & Gamble, Teva Pharmaceuticals

Company

Micro and nanoparticles for the delivery of biological and small molecule therapeutics

EX.PR.E.S.S. Rules?

Institutional Sponsorship; Strategic Validation; 24-month “Exit”

Co-Investor / Lead

Bill & Melinda Gates Foundation; Canaan; Firelake; Morningside; NIST; NEA; Pappas; Pharmaceutical Product Development; UNC; Velocity; Wakefield

Result

$360 million partnership with Glaxo Smith Kline

• Research. Investment Banking. Healthcare.

Case Studies

Healthios EX.PR.E.S.S.

CARDIOSOUTIONS, INC.

THE UNDERSIGNED ACTED AS EXCLUSIVE FINANCIAL ADVISOR TO CARDIOSOLUTIONS

Has completed its $15,000,000 Series B financing led by

37

Company

Percutaneous catheter-based structural heart solution for patients with mitral regurgitation

EX.PR.E.S.S. Rules?

Institutional Sponsorship; Strategic Validation; 24-month “Exit”

Co-Investor / Lead

BioVentures; Makaira Venture

Result

$250 million partnership with Sorin

Company

Mobile and web-based provider of clinical information and decision support tools to healthcare professionals

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

Bay City Capital,, Draper Fisher Jurvetson, Goldman Sachs, Industry Ventures, InterWest Partners, Millennium Partners, New Leaf Ventures, Sprout Group, Three Arch Partners

Result

IPO

EPOCRATES, INC.

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO EPOCRATES

Has completed multiple strategic initiatives

• Research. Investment Banking. Healthcare.

Healthios EX.PR.E.S.S.

38

Case Studies

WELLDOC, INC.

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO WELLDOC

Has completed a strategic partnership with Has been acquired by

THE UNDERSIGNED ACTED AS EXCULSIVE FINANCIAL ADVISOR TO CALIBRA

CALIBRA MEDICAL, INC.

Company

Mobile and web-based chronic disease management platform technology that supports patient self-management and provider clinical decisions

EX.PR.E.S.S. Rules?

Strategic Validation; 24-month “Exit”

Co-Investor / Lead

Leading global insulin provider

Result

Partnership with AT&T

Company

Small, wearable, disposable devices, FinesseTM, that deliver insulin to patients with insulin-dependent

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

Canaan Partners, Frazier Healthcare Ventures, Intersouth Partners, Skyline Ventures, Three Arch Partners

Result

Sold to JNJ

• Research. Investment Banking. Healthcare.

Healthios EX.PR.E.S.S.

39

Case Studies

Has completed its $11,000,000 Series D financing SYNCARDIA SYSTEMS, INC.

THE UNDERSIGNED ACTED AS ADVISOR TO SYNCARDIA

Company

The world's first and only FDA, Health Canada and CE (Europe) approved Total Artificial Heart

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-Month “Exit”

Co-Investor / Lead

Ceres Venture; Highway 12; HMA Capital; Iron Gate; Seneca Health Partners; Trinity Capital

Result

$7 million EBITDA, annualized.

Has entered a Worldwide Commercialization Partnership with

THE UNDERSIGNED ACTED AS EXCLUSIVE FIANCIAL ADVISOR TO VERAX BIOMEDICAL

V B

ERAX IOM EDICAL

I N C O R P O R A T E D

VERAX BIOMEDICAL, INC.

Company

Rapid tests for detection of bacterial contaminants in blood components, tissues for transplantation and cellular therapies

EX.PR.E.S.S. Rules?

Institutional Sponsorship; Strategic Validation

Co-Investor / Lead

BioVentures; CNF Investments; KB Partners; Long River Ventures; Sightline Partners; Teknoinvest; Village Ventures

Result

Partnership with Fenwal; FDA Mandate

• Research. Investment Banking. Healthcare.

Healthios EX.PR.E.S.S.

40

Case Studies

ING BARING

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO ING BARING

Has completed an investment in

Company

Disposable medical devices mostly developed in the US, manufactured in China

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

Baring Private Equity Asia; Novo Tellus Capital Partners

Result

Recapitalization

BAYER PLASMA, GmBH Has been acquired by

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO MORGAN STANLEY

An operating division of Cerberus, LLC

Company

Blood-plasma company

EX.PR.E.S.S. Rules?

Institutional Sponsorship; Strategic Validation; 24-month “Exit”

Co-Investor / Lead

Ampersand Capital Partners (Richard Charpie), Bayer AG (DB:BAYN), Cerberus Capital Management, L.P.

Result

Multiple ROC: 4.0x IRR: 57.1%

• Research. Investment Banking. Healthcare.

Healthios EX.PR.E.S.S.

41

Case Studies

SXC HEALTH SOLUTIONS, INC.

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO SXC HEALTH SOLUTIONS

Has expanded its management team and Board of Directors with the addition of several leaders with significant experience in the global healthcare industry

Company

Provide pharmacy benefit management services and healthcare information technology solutions to the healthcare benefit management industry

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

ABRY Capital Partners; Arcadia Resources

Result

Multiple ROC: 7.8x IRR: 102%

Company

Outpatient rehabilitation therapy services provider

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

Aethena Group; Charterhouse Equity Partners

Result

Recapitalization

UPSTREAM REHABILITATION, LLC

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO UPSTREAM REHABILITATION

Has been formed by management in collaboration with

• Research. Investment Banking. Healthcare.

Healthios EX.PR.E.S.S.

42

Case Studies

MOLNLYCKE HEALTHCARE, AG

THE UNDERSIGNED ACTED AS STRATEGIC ADVISOR TO CLAYTON DUBILIER & RICE

Has been acquired by PULSE SYSTEMS

THE UNDERSIGNED ACTED AS EXCLUSIVE ADVISOR TO PULSE

Healthios has issued a fairness

• pinion in conjunction with the

acquisition of Pulse Systems

Company

Rapid tests for detection of bacterial contaminants in blood components, tissues for transplantation and cellular therapies

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

Cardinal Growth, L.P., Convergent Capital, Pacific Mezzanine Fund, L.P., Pacific Private Capital, LLC

Result

Sold to Cegedim, SA.

Company

Rapid tests for detection of bacterial contaminants in blood components, tissues for transplantation and cellular therapies

EX.PR.E.S.S. Rules?

Institutional Sponsorship; 24-month “Exit”

Co-Investor / Lead

APAX Partners

Result

Multiple ROC: 4.4x IRR: 178.2%

May 2013

An Introduction to