Welcome to A novel partnership model with better results and more - - PowerPoint PPT Presentation

Welcome to

This is Vicarius Pharma, July 2017

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A novel partnership model with better results and more flexibility

We provide a novel option to commercialize in Europe, bridging the gap between going direct and out-licensing We are European launch experts with unmatched experience and a deep understanding of the European markets Our partnership model has key strategic, commercial and operational advantages over standard entry options of out-licensing or going direct, and provides more focus and thus better chances of success better economics for our partners more strategic flexibility

This is Vicarius Pharma, July 2017

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Our partnership model reduces risks & bridges the gap

Entering Europe going direct or with an out-licensing deal is risky

Going direct with a first asset entails risks of high cost and flawed execution; a single asset may not justify infrastructure build; P&L impact and long wait to break-even Out-licensing entails the risks of lack of focus, conflicts of interest and loss of control

We offer shared-value partnerships which address trade-offs

• f traditional entry options

Benefits vs. going direct Benefits vs. out-license

Reduced up-front financial costs (back-office and field force) Minimal distraction from U.S. business Access to European launch excellence Ability to scale quickly No scale-down costs Long term optionality for asset recapture Strong influence over branding, strategy Strategic focus from European Executive Team Higher overall value capture No “poison pill” effect

This is Vicarius Pharma, July 2017

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Total returns with Vicarius outperform out-licensing

High share of economics via profit share and royalties

Targeted 40% - 60% total asset NPV for partner in base case scenario with Vicarius, vs. typical below 30% with out-license

For a $400m NPV asset, Vicarius will provide $60m to $140m increased NPV.

Upfront payments in out-licenses often come at a heavy price

Example: Base case NPV is $400m, with a 60% chance of success. Out-license (incl. $10m upfront) provides 25% NPV ($100m), of which $10m at zero risk and $90m adjusted to 60% ($54m), totaling $64m. Assume 50% NPV share with Vicarius ($200m) and adjust to 60%, totaling $120m. The “cost” of a $10m upfront is $56m of risk-adjusted NPV.

Our partnership model increases value capture

This is Vicarius Pharma, July 2017

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Increased global corporate value through goodwill creation and brand equity No “poison pill” effect

The valuation of the innovator company does not suffer from a “poison pill” effect of a long-term out-license agreement

Asset can be recovered at any time

Partners can recover the asset and dedicated customer-facing organization at any time, e.g. on change of control, or as new indications or follow-on products are approved

Partners keep all options open

Unlike out-licenses, Vicarius partnerships do not block other corporate transactions or reduce takeover premium

Vicarius partnership model bridges the gap

Partnership with Vicarius avoids the risk, distraction and expense of going direct, whilst preserving our partners’ strategic control of R&D and global branding

Our partnership model provides highest strategic flexibility

This is Vicarius Pharma, July 2017

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Regulatory approval Launch Start of partnership Post partnership period Advisory & strategic guidance: regulatory, pricing & reimbursement, clinical trial design, stakeholder management and go-to-market strategies Change of Control/IPO clauses protect partner’s corporate value Local market authorizations held by Vicarius Building of dedicated customer- facing commercial

• rganizations

Allocated cross- functional support provided by Vicarius Full launch cost absorption by Vicarius Royalties as of first sale Profit sharing as of break even Asset and market authorizations return to partner at expiry of term

Our partnership terms are tailored to our partners’ needs

Partnership terms allow for recapture of asset and customer-facing organization at any time

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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

We are experienced in a wide range of disease areas

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We provide excellence in launch preparation and execution

Our leadership team consists of senior executives with an average of 26 years of experience in the Life Sciences industry We combine the expertise and know-how gathered with

• ver 35 product launches on a pan-European level

We have achieved multiple successful pan-European and national regulatory approvals We have successfully negotiated P&R submissions, including HTA submissions, in all EU and EEA markets We have registered dozens of legal entities in Europe and built robust, tax- efficient inter-company structures We have hired over 2000 employees for direct EU operations and successfully managed extensive third party distributor networks in and outside the EU

Thank you