European Market Entry Solutions to accelerate Value Creation and - - PowerPoint PPT Presentation

European Market Entry Solutions to accelerate Value Creation and maintain Strategic Flexibility

March 2018

March 2018 This is Vicarius Pharma

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Vicarius Pharma addresses an unmet market need

Vicarius Pharma addresses the risks and disadvantages of existing European market entry strategies (out-licensing or go-it-alone) by

• ffering novel and highly flexible partnership models,

building and managing rightsized go-to-market organizations

• n behalf of our partners, and

dedicating the full attention of a ready-now, expert European Executive Team

March 2018 This is Vicarius Pharma

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Key benefits of a partnership with Vicarius Pharma

Expert launch preparation and execution Pan-European, right-sized commercial coverage Attractive economics Strategic and structural flexibility

March 2018 This is Vicarius Pharma

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Key benefits

Comprehensive European market entry solutions

Commercial Coverage Attractive economics

Proven, ready-now European Executive Team Regulatory, pricing & reimbursement, medical affairs, stakeholder management and go-to-market strategies increase likelihood of launch success Access to top talent for

• rganization build

Legal and operational responsibility Direct customer-facing commercial organizations in major EU markets Expert, compliant access to minor EU and ex-EU markets Leveraged cross-functional support Full launch cost absorption by Vicarius spares partner P&L High royalties and/or profit sharing out-perform

• ut-license economics

Single point of contact for Distributor Markets Commercial structure rightsized to asset potential and Partner’s long-term European strategy Partner may elect to take

• ver dedicated
• rganization built by

Vicarius Partner can recover asset at any time

Expert launch preparation Strategic and structural flexibility

March 2018 This is Vicarius Pharma

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Bespoke and right-sized

Comprehensive European market entry solutions

Vicarius Pharma’s core business and unique offering

Creation and management of go-to-market organizations in major European markets

Dedicated Company Dedicated commercial organizations for assets with exp. peak sales of > €100m and partners interested in building footprint in Europe Multiple, non-competing assets in aligned therapeutic area with exp. peak sales < €100m that do not justify dedicated organization Portfolio Company

March 2018 This is Vicarius Pharma

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We provide excellence in launch preparation and execution

Leadership team consists of senior executives with an average of 27 years

• f experience in Life Sciences industry

Expertise and know-how gathered with over 40 product launches

• n a pan-European level

Achieved multiple successful pan-European and national regulatory approvals Successfully negotiated P&R submissions, incl. HTA submissions, in all European markets Registered dozens of legal entities in Europe and built robust, tax-efficient inter-company structures Hired over 2000 employees for direct EU operations and successfully managed extensive third party distributor networks in and outside the EU

March 2018 This is Vicarius Pharma

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We are experienced in a wide range of disease areas

Neurology (Alzheimer’s disease, MS, Parkinson’s disease) Cardio-vascular diseases Auto-immune (Crohn’s disease, Lupus, rheumatoid arthritis) Infectious diseases Psychiatric disorders (depression, anxiety, schizophrenia) Dermatology (psoriasis) Oncology Pain management Metabolic diseases (diabetes, GH deficiency, hemophilia) Ophthalmology Respiratory diseases (asthma) Rheumatology Neuromuscular disorders Several rare and ultra rare diseases

March 2018 This is Vicarius Pharma

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Commercializing a first product in Europe by building and managing a Dedicated Company

March 2018 This is Vicarius Pharma

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Partner’s European commercial organization

Vicarius Pharma HQ Dedicated and branded customer-facing Operations (OpCo)

> General management > HR > Regulatory > Market Access > Medical > Supply Chain > Legal > Pharmacovigilance > Compliance > Infrastructure > General management > Business Unit Head > Marketing > MSLs > KAMs > MAMs

Expertise and resources

Bridging the gaps with a Dedicated Company

We build dedicated customer-facing operations

March 2018 This is Vicarius Pharma

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Bridging the gaps with a Dedicated Company

Lower risks compared to go-it-alone

Full exploitation of asset’s potential in Europe as it gets strategic focus from ready-now, experienced and dedicated European Executive Team Full-fledged launch strategy, co-developed with partner, is ready prior to entering the market – a key factor for achieving successful launch trajectory in the first 6 months Protection of partner’s P&L and strengthening of cash flow position, as Vicarius Pharma absorbs launch costs and assumes entrepreneurial risk Minimal distraction from U.S. business for partner company’s Executive Team Ability to identify and hire talent for commercial organization and thus minimize execution risks thanks to Vicarius Pharma’s network Efficient allocation of cross-functional resources drives profitability, permitting Vicarius to offer attractive returns to partners

March 2018 This is Vicarius Pharma

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Bridging the gaps with a Dedicated Company

Increased value capture compared to traditional out-licensing

Vicarius Pharma builds branded European footprint that can be taken over by the partner Partners enjoy goodwill creation and increased brand equity Improved economics through generous royalty stream and profit share Asset gets full focus from a ready-now, expert European Executive Team Strategic options remain open for innovator company as asset can be recovered at any time Valuation of innovator company does not suffer from “poison pill” effect

• f typical out-licensing agreements

March 2018 This is Vicarius Pharma

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Commercializing innovative small/medium size assets through a Portfolio Company

March 2018 This is Vicarius Pharma

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Typical out-license arrangements are not suited for all types of assets:

Some partners (e.g. single asset companies) don’t intend to build a dedicated organization in Europe but want improved economics vs out-licensing and wish to preserve strategic control following launch Assets in highly specialized disease areas may not provide sufficient business opportunity to justify a dedicated organization

Costly executive management and senior expert functions (e.g. VP Medical) Relatively small customer facing organization (KAMs, MSLs) compared to management and expert function overhead

Portfolio Company

Improved economics through leverage

Vicarius Pharma offers an alternative – the Portfolio Company

March 2018 This is Vicarius Pharma

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Portfolio Company

Features and benefits

Portfolio Company commercializes several non-competing assets in same therapeutic area which would be too small to justify single-asset Dedicated Company, or where partner is not interested in building an European Organization Vicarius offers partners opportunity to obtain attractive economic terms plus strategic flexibility to recover asset at any time, e.g. on change of control Recovery right removes poison pill effect of standard out-licenses

March 2018 This is Vicarius Pharma

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Why entering Europe with Vicarius is a highly attractive option:

March 2018 This is Vicarius Pharma

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Our models offer highest flexibility & increased value creation

Vicarius partnership models bridge the gap

Partnership with Vicarius avoids the risk, distraction and expense of go-it-alone, whilst preserving strategic control of R&D and global branding

Increased global corporate value

The valuation of partner companies does not suffer from a “poison pill” effect

• f a long-term out-license agreement

Partners achieve goodwill creation and increased brand equity

Asset can be recovered at any time

Asset can be recovered at any time, e.g. on change of control,

• r as new indications or follow-on products are approved

Partner keep all options open

Unlike out-licenses, Vicarius partnerships do not block other corporate transactions

• r reduce takeover premium

March 2018 This is Vicarius Pharma

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Vicarius is the best partner for European market entry

Vicarius has the best team for an European launch

The company and business model are new - but we are not! We provide a proven, ready-now, Executive Team to increase chances

• f launch success

We attract the best talent thanks to our reputation and networks

We can quickly build a customer-facing European organization that is tailored to our partners’ assets

We manage only a few assets, with laser focus

Partner assets will not get “lost” or “forgotten” as frequently occurs in out-licenses

We hold ourselves to KPIs

We propose transparent partnerships and hold ourselves to agreed pre-and post- launch performance targets

We have committed funding: CHF21m raised in Series A financing in 2017

March 2018 This is Vicarius Pharma

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Faster value creation while maintaining strategic flexibility

benefit from our unmatched experience & focused execution reduce the risks of entering Europe and achieve increased value capture retain the highest strategic flexibility Launching a first product in Europe with Vicarius Pharma, our partners will

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