Sofinnova Capital VI – 2010 Trends

January 26, 2010

 Agenda

Welcome

Where we are today:
2009 activity and Sofinnova Capital VI

Where we’ve been:
a review of investment activity since 1989

Where we are going:
2
2010 trends

Q&A

Breakfast Presentation: January 26, 2010

Confidential
WELCOME
 Sofinnova Partners

Denis Lucquin, Managing Partner (LS)

Antoine Papiernik, Managing Partner (LS)

Monique Saulnier, Managing Partner & CFO

Jean Schmitt, Managing Partner (IT)

Jean-Bernard Schmidt, Managing Partner

Graziano Seghezzi, Partner (LS)
4

Olivier Sichel, Partner (IT)

Rafaèle Tordjman, Partner (LS)
Breakfast Presentation: January 26, 2010
Confidential
 WHERE WE ARE TODAY
2009 AND SOFINNOVA CAPITAL VI
 “We foresee strong M&A activity in 2009
for our portfolio companies:
technologies making a real difference
for patients or for customers will always
be valuable — such is the beauty of
venture. This proves the non-correlation
of venture to the rest of the economy.”
6 Denis Lucquin,
Managing Partner and Chairman
March 24, 2009

Breakfast Presentation: January 26, 2010

Confidential
Sofinnova Portfolio Developments Page 7

Deal Activity and Exits of 2009 Company X

Q1 10: IT Company sold

Value Creation

Dec 09 (SK V): Movetis to IPO – 3

years after investment. Sofinnova is
largest shareholder and founding
investor.
Feb 09 (SK V): Esmertec merges
with Purple Labs forming Myriad,
Feb 09 (SK IV): Sofinnova of Europe’s largest mobile phone
Corevalve (EV 700m$ + milestone software company. Sept 09 (SK IV): Sofinnova Exit of Dec 09 (SK IV): Sofinnova Exit of
payments) Fovea (EV 370m€ incl. milestone Novexel (total cash consideration
payments) of $505 million, including earn out
MERGER payments of $75 million)

Q1
2010
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Aug 09 (SK VI):

June 09 (SK VI): Sofinnova VI invests Sofinnova VI invests Omthera
€6.16m in CoAxia €2.8m in MD Start
Pharmaceuticals
Dec 09 (SK VI): Sofinnova
VI invests €1.4m in Omthera

June 09 (SK VI): Sofinnova VI invests

€4.70m in Flexion Therapeutics Aug 09 (SK VI): Sofinnova
invests €3.6 m in Crescendo Nov 09 (SK VI): Sofinnova
VI invests €1.50m in Celsius

Capital Deployed

June 09 (SK VI): Sofinnova VI invests

€2.88m in DNP Green Technology
 Sofinnova Capital VI

Closed December 31, 2009

€260 million ($370 million)

Target was €300 million

Already committed to date: 40% to 50% in ten companies

LPs include: CDC Entreprises within the France Investment
program, Industrial & Financial Investments Co., JP Morgan
Asset Management, funds advised by Partners Group and
Skandia Life Insurance Company
8

Sofinnova Partners continues to be recognized by its investors
for its solid investment style and capacity to generate strong
returns, even during turbulent economic times.
Breakfast Presentation: January 26, 2010
Confidential
 WHERE WE’VE BEEN
INVESTMENT ACTIVITY SINCE 1989
 Sofinnova Partners:
Solid Investment Style

Early-stage, spin offs and restarts are the area of investment

focus

IP rich technologies

Biopharmaceuticals, medical devices, green chemicals,
wireless, mobile internet

Europe & USA
10
Repeat entrepreneurs and experienced management

No « me too » investments

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WHERE WE ARE GOING
2010 TRENDS
 What Does Sofinnova Partners’
Success Mean for The VC Industry in
Europe?

Alive and kicking!

M&A will continue to feed corporate growth

IPO window is reopening

Early-stage investment strategy works

Consistent investment in innovation transcends economic
12 fluctuations

« Back to basics»: invest only in exceptional companies

Breakfast Presentation: January 26, 2010

Confidential
 2010 Trends: Mobile Internet
THE NEXT GENERATION OF INTERNET, MAY BE EVEN MORE POWERFUL THAN FIXED INTERNET

 With new ways to search:

 New advertising model:

Blyk

13  And key software browsers/multimedia:

Breakfast Presentation: January 26, 2010

Confidential
 2010 Trends: The Mobile Backhaul Issue

MOBILE NETWORKS ARE ABOUT TO MOVE TO FULL IP

 Needs network intelligence:

14  And policy management:

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 2010 Trends: The New Digital Frontier
DIGITALIZATION WILL BRING NEW INNOVATIONS

 Choosing your home in 3D:

 Working together:

15

 Listening to music:
Breakfast Presentation: January 26, 2010
Confidential
 2010 Trends: The New User Interface

 Everything becoming more tactile:

 Bringing Convenience and Security:

16

 Bringing security:

Breakfast Presentation: January 26, 2010

Confidential
 2010 Trends: Convergence of Brands
and Technology
PIONEERED BY EUROPEAN INNOVATION

 New brands with radical innovations and vision:

17

 And a place where design counts:

Breakfast Presentation: January 26, 2010
Confidential
 2010 Trends: Vaccines
Growth Old technology
35
30
25
20
15
10
5
0
2002 2003 2004 2005 2006 2007 2008 2012
[E]

Future Innovation
SHIFT
30.0
PROPHYLACTIC VACCINES THERAPEUTIC VACCINES

Births per year (m)

Seven major markets BRIC countries
25.0
18
20.0
INFECTIOUS DISEASE
$B CHRONIC DISEASE
15.0
Bacterial 10.0
2008 2018
Cancer
Viral Diabetes
Alzheimer’s Disease 5.0
0.0
BRIC: Brazil, Russia, India, China
Copyright © 2006 Sofinnova Partners
 2010 Trends: Antibodies
Growth Past Innovation
450 70
400 60
350
50
300
250 40
$B
200 30
Murine Chimeric Humanized Fully Human
150
20
100 Murine % 100 30-35 5-10
50 10
0 0 Human % 60-65 90-95 100
2002 2003 2004 2005 2006 2007 2008 2009 2012 2014
[E] [E]
NCE MAB Mouse Human

Future Innovation
Variable region of
Heavy chain (Vh)

Constant region 1 of
Heavy chain (Ch1)

19

Variable region of
Light chain (Vl)

Constant region of
Light chain (Cl) Single-chain Antigen-binding
antibody (SCA) Fragment (Fab)
Full-size antibody

Copyright © 2006 Sofinnova Partners

 2010 Trends: Disruptive Technologies
in Medical Devices - Who Could be the
next CoreValve?
 Perfusion augmentation therapies

Patented product to treat specific

cardiac artery diseases and
avoid open-chest surgery for
hundreds of thousands of
20 patients

Nurturing companies
at the seed stage: MD Start

Breakfast Presentation: January 26, 2010

Confidential
 2010 Trends: Green Chemistry
Alternatives

 Biotech alternative to petrochemical

routes

21

Breakfast Presentation: January 26, 2010

Confidential
 2010 Trends: Pharma Spin-offs
Evolution of the Pharma industry (rationalisation – concentration)
will lead to spin-off opportunities

22
Q&A