FCF Life Science Research 2 nd Life Science Venture Capital Report Financing Trends in Europe and the US Fungi Penicillium

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1 FCF Life Science Research 2 nd Life Science Venture Capital Report Financing Trends in Europe and the US Fungi Penicillium Part of FCF Life Science Research Series

2 F C F O v e r v i e w R e c e n t F u n d i n g D e v e l o p m e n t L i f e S c i e n c e s : A c l o s e r L o o k C r o s s - b o r d e r I n v e s t m e n t A c t i v i t y I n v e s t o r A n a l y s i s L i f e S c i e n c e E x i t s 2

3 Debt Equity FCF Overview FCF seeks to provide its clients with financing (i) at the lowest cost, (ii) with the highest flexibility, (iii) in the shortest period of time, (iv) with the highest closing probability, and with (v) financing partners that integrate well into their strategy Who We Are Specialized investment bank and financing specialist Advising public and private small / midcap companies Advisor for structuring and placement of financing transactions: All instruments: Unbiased approach to all available corporate financing instruments (no product selling approach), allowing for customized financing structures All investors: Close and trusted relationships with senior executives of virtually all relevant equity and debt investors Fast process: Process management skills and direct / personal access to institutional debt and equity investors enable fast transactions More than transactions with a total placement volume in excess of EUR 4. billion since foundation in 25 Approx. professionals with offices in Munich Capital Markets Capabilities and Services Private / Pre-IPO Public Short-term Debt Long-term Debt Venture capital financing Growth capital financing Initial Public Offering (IPO) / Capital increase Dual-track (IPO and alternative transaction Receivables financing / Factoring / ABS Borrowing base / Inventory financing Bank loan facility / Straight debt Sale-and-lease back Corporate bonds (public / private placement) Private equity financing pursued in tandem) Private Investment in Public Equity (PIPE) Block trade Working capital / Revolving credit facility Guarantees / Letter of Credit Promissory note (Schuldscheindarlehen) High-yield / PIK bond (public / private) Second lien financing Mezzanine Mezzanine capital Convertible bonds Selected Transactions 3

4 FCF Facts & Figures More than 2 # More than Network Completed Transactions Contacts to Family Offices and Ultra High Net Worth Individuals worldwide Financing Advisor in Germany, purely focusing on corporate financing transactions Investment Banking Professionals Access to more than 4 international financial institutions More than 4 bn Leading Close to More than 2 More than 25 Total volume of advised & closed transactions since 25 Advisor for Financing Transactions with EIB in the DACH region Years of aggregated, investment banking / financing experience Articles and research papers published International conferences organized 4

5 FCF s Equity Expertise FCF has successfully closed numerous equity-related transactions over the past years Life Science Financing Research IPO / Public Equity Markets Coverage FCF regularly publishes specialized research, covering industry trends, equity valuations, debt transactions, IPO and M&A activity FCF has hosted / hosts the FCF IPO Conference, addressing going public topics with great relevance to decision makers FCF IPO Conference Presenters FCF Family-2-Family Conference Presenters FCF bi-annually hosts its Family-2- Family Conference, an opportunity for public companies to present themselves to family offices 5

6 F C F O v e r v i e w R e c e n t F u n d i n g D e v e l o p m e n t L i f e S c i e n c e s : A c l o s e r L o o k C r o s s - b o r d e r I n v e s t m e n t A c t i v i t y I n v e s t o r A n a l y s i s L i f e S c i e n c e E x i t s 6

7 European Life Science Venture Capital Volumes over Time After a record high in 26, funding volumes experienced a significant decrease in 27, however, still recorded the 2 nd highest annual volume of all times 3, 2,5 # of Funding volumes of the last six years find themselves above the average annual deal volume of EUR,26m (2 27) 2,,5 Average Annual Deal Volume (2-27): EUR,26m The annual number of European venture rounds in the Life Science sector has been steadily increasing since the year 2, despite a setback in 26 and 27, European Deal Volume European Deal Count Source: PitchBook as of , FCF Equity Research 7

8 Most Developed European Life Science Countries (L5Y) Among the Top 5 targeted countries, the Life Science industry in the UK recorded the most deals and received by far the largest financing volumes over the last five years, followed by Switzerland and Germany Top 5 Targeted Countries by Deal Volume 2,5 2, 2,54,648,5,477,26, Top 5 Targeted Countries by Number of # of German and Swiss Life Science companies tend to receive the highest average deal volumes France Netherlands Germany Switzerland United Kingdom Top 5 Targeted Countries by Average Deal Volume United Kingdom France Switzerland Germany Ireland Ireland Germany Switzerland France United Kingdom Source: PitchBook as of , FCF Equity Research 8

9 Top European Life Science (L3Y) by Volume The 2 nd round of Dutch Acerta Pharma with EUR 336m is leading the league table of the largest Life Science VC rounds in Europe over the last 3 years 5% of the companies in the Top have a UK and 3% a Swiss origin The German(-origin) JenaValve Technology s 4 th round of EUR 9m ranks on 9 th place Companies solely focusing on oncology represent the majority in the Top Life Science deals (4%) Acerta Pharma B.V. 2 nd round / 25 American Funds Insurance Series, Franklin Templeton Investments, Janus Capital Group, T. Rowe Price, Variable Annuity Life Insurance Company (5) Indication: Oncology Immunocore Ltd. 3 rd round / 26 AstraZeneca, Eli Lilly and Company Foundation, Fidelity Investments, Genentech, GlaxoSmithKline Pharmaceuticals, Malin Corporation, NeoMed Management, RTW Investments, Woodford Investment Management (9) Indications: Oncology, infectious diseases and autoimmune diseases ADC Therapeutics SA 5 th round / 27 AstraZeneca, Auven Therapeutics, Redmile Group, Wild Family Office (4) Indication: Oncology Oxford Nanopore Tech. Ltd. th round / 26 7-Main, GT Healthcare Capital Partners, IP Group UK, Woodford Investment Management (4) Sector: Medical Technology Undisclosed Oxford Nanopore Tech. Ltd. th round / 25 Sector: Medical Technology EUR 336m EUR 264m EUR 7m EUR 8m EUR 98m Oxford 5 Cambridge London Epalinges Oss Basel 3 Munich Orchard Therapeutics Ltd EUR 96m 3 rd round / 27 4BIO Capital Partners, Agent Capital, Baillie Gifford, Cowen Group, F-Prime Capital Partners, Juda Capital, ORI Capital, Pavilion Capital, RTW Investments, Temasek Holdings, UCL Business () Indication: Rare diseases ADC Therapeutics SA 4 th round / 26 Astrazeneca, Auven Therapeutics, EG Capital Advisors, Wild Family Office (4) Indication: Oncology Kymab Ltd. 3 rd round / 26 EUR 95m Bill & Melinda Gates Foundation, Malin Corporation, ORI Capital, Shenzhen Hepalink Pharmaceutical, Wellcome Trust, Woodford Investment Management (6) Indication: Autoimmunity JenaValve Technology, Inc. 4 th round / 25 EUR 93m Atlas Ventures, Edmond de Rothschild Investment Partners, Gimv, Legend Capital, NeoMed Management, Omega Fund Management, Rudi Marien, Sunstone Capital, Valiance, VI Partners () Sector: Medical Technology CRISPR Therapeutics AG 2 nd round / 25 EUR 9m EUR 89m Abingworth Management, Bayer, Celgene, CLI Ventures, Clough Capital Partners, Franklin Templeton Investments, New Enterprise Associates, New Leaf Venture Partners, Novo Holdings, SR One, others* (4) Indication: Immuno-oncology Source: PitchBook as of , FCF Equity Research, Biotechgate *others: Versant Venture Management, Vertex Pharmaceuticals, Vivo Capital, Wellington Capital Management 9

10 Top German Life Science (L3Y) by Volume JenaValve Technology s 4 th financing round (EUR 9m) leads the Top ranking of German Life Science deals over the last 3 years 7% of the companies are based in Southern Germany (Bavaria, Baden- Wuerttemberg) InflaRx ranks with two financing rounds (4 th and 5 th round) in the Top in Germany In contrast to the European Top, the Top German Life Science deals focus on different indications JenaValve Technology, Inc. EUR 9m Munich / 4 th Round / 25 Atlas Ventures, Edmond de Rothschild Investment Partners, Gimv, Legend Capital, NeoMed Management, Omega Fund Management, Rudi Marien, Sunstone Capital, Valiance, VI Partners () Sector: Medical Technology Immatics Biotech. GmbH Tübingen / 5 th Round / 27 Amgen, AT Impf, dievini Hopp BioTech, Wellington Partners (4) Indication: Oncology EUR 49m InflaRx GmbH EUR 47m Jena / 5 th Round / 27 Bain Capital, Cormorant Asset Management, RA Capital Management (3) Indication: Inflammatory diseases Breath Therapeutics GmbH EUR 44m Munich / st Round / 27 Gilde Healthcare Partners, Gimv, Sofinnova Partners (3) Indication: Respiratory diseases iomx Therapeutics AG EUR 4m Munich / st Round / 26 Merck Ventures, MPM Capital, Sofinnova Partners, Wellington Partners (4) Indication: Immuno-oncology 2 Tübingen 2 Jena 5 Rostock Munich Immunic AG EUR 32m Planegg-Martinsried / st Round / 27 RMM, Atlas Venture, Edmond de Rothschild, Gimv, NeoMed, VI Partners, Valiance (8) Indication: Immunology InflaRx GmbH Jena / 4 th Round / 26 Staidson Hongkong Investment () Indication: Inflammatory diseases EUR 3m Rigontec GmbH EUR 29m Munich / st Round / 26 Boehringer Ingelheim Venture Fund, Forbion Capital Partners, High-Tech Gründerfonds, MP Healthcare Venture Management, NRW.Bank, Sunstone Capital, Wellington Partners (7) Indication: Oncology Centogene AG EUR 25m Rostock / st Round / 26 Careventures, CM-CIC Investissement, DPE Deutsche Private Equity, Norddeutsche Landesbank, OstseeSparkasse Rostock, TVM Capital Life Science (6) Indication: Rare diseases Allecra Therapeutics GmbH Weil am Rhein / 2 nd Round / 26 EUR 22m Delos Capital, Edmond de Rothschild Investment Partners, EMBL Ventures, Forbion Capital Partners (4) Indication: Infectious and diseases Source: PitchBook as of , FCF Equity Research

11 Top European Life Science by Volume and Year Acerta Pharma B.V. EUR 336m / 2 nd Round Ridgeback, Rock Springs, F-Prime, Merlin Nexus, New Enterprise Associates, Novo, OrbiMed, Wellington, VenBio, Foresite, Uni Oxford, QVT Financial (2) Immunocore Ltd. EUR 264m / 3 rd Round AstraZeneca, Eli Lilly and Company Foundation, Fidelity Investments, Genentech, GlaxoSmithKline Pharmaceuticals, Malin Corporation, NeoMed Management, RTW Investments, Woodford Investment Management (9) ADC Therapeutics SA EUR 7m / 5 th Round AstraZeneca, Auven Therapeutics, Redmile Group, Wild Family Office (4) 2. Oxford Nanopore Tech. Ltd. Undisclosed EUR 98m / th Round Oxford Nanopore Tech. Ltd. EUR 8m / th Round 7-Main, GT Healthcare Capital Partners, IP Group UK, Woodford Investment Management (4) Orchard Therapeutics Ltd. EUR 96m / 3 rd Round 4BIO Capital Partners, Agent Capital, Baillie Gifford, Cowen Group, F- Prime Capital Partners, Juda Capital, ORI Capital, Pavilion Capital, RTW Investments, Temasek Holdings, UCL Business () 3. JenaValve Technoloy, Inc. EUR 89m / 4 th Round Atlas Ventures, Edmond de Rothschild Investment Partners, Gimv, Legend Capital, NeoMed Management, Omega Fund Management, Rudi Marien, Sunstone Capital, Valiance, VI Partners () ADC Therapeutics SA EUR 95m / 4 th Round AstraZeneca, Auven Therapeutics, EG Capital Advisors, Wild Family Office (4) Cell Medica Ltd. EUR 69m / 6 th Round Invesco Perpetual, Touchstone Innovations, VI Partners, Woord Investment Management (4) 4. ADC Therapeutics SA EUR 7m / 3 rd Round AstraZeneca, Auven Therapeutics, ET Capital, Wild Family Office (4) Kymab Ltd. EUR 93m / 3 rd Round Bill & Melinda Gates Foundation, Malin Corporation, ORI Capital, Shenzhen Hepalink Pharmaceutical, Wellcome Trust, Woodford Investment Management (6) Autolus Ltd. EUR 67m / 3 rd Round Arix Bioscience, Cormorat Asset Management, Nextech Invest, Syncona, Woodford Investment Management (5) 5. DNA Electronics, Inc. Undisclosed EUR 58m / 2 nd Round CRISPR Therapeutics AG EUR 89m / 2 nd Round Abingworth Management, Bayer, Celgene, CLI Ventures, Clough Capital Partners, Franklin Templeton Investments, New Enterprise Associates, New Leaf Venture Partners, Novo Holdings, SR One, others** (4) Iterum Therapeutics Ltd. EUR 65m / 3 rd Round Advent Life Sciences, Arix Bioscience, Bay City Capital, Canaan Partners, Domain Associates, Frazier Healthcare Partners, New Leaf Venture Partners, Pivotal bioventure Partners, Sofinnova Ventures (9) CRISPR Therapeutics AG EUR 56m / st Round Abingworth Management, Celgene, New Enterprise Associates, SR One, Versant Venture Management (5) ObsEva SA EUR 55m / 3 rd Round HBM Healthcare Investments, HBM Partners, Intel Capital, Merck Ventures, New Enterprise Associates, Novo Holdings, OrbiMed, Rock Springs Capital,Sofinnova Partners, Sofinnova Ventures () Carrick Therapeutics Ltd. EUR 86m / st Round ARCH Venture Partners, Cambridge Enterprise, Cambridge Innovation Capital, Evotec, GV, Lightstone Ventures, Woodford Investment Management (7) Mission Therapeutics Ltd. EUR 77m / 3 rd Round Cancer Research Technology, Pfizer Venture Investments, Roche Venture Fund, Sofinnova Partners, SR One, Touchstone Innovations, Woodford Investment Management (7) Hookipa Biotech AG EUR 5m / 3 rd Round BioMedPartners, Boehringer Ingelheim Venture Fund, Forbion Capital Partners, Gilead Sciences, HBM Partners, Hillhouse Capital Group, Sirona Capital, Sofinnova Partners, Takeda Ventures (9) Immatics Biotech GmbH EUR 49m / 5 th Round Amgen, AT Impf, dievini Hopp Biotech, Wellington Partners (4) 8. Merus BV EUR 42m / 3 rd Round Aglaia Biomedical Ventures, Bay Citi Capital, Johnson & Johnson Innovation JJDC, Life Sciences Partners, others* () Autolus Ltd. Arix Bioscience, Syncona, UCL Business, Woodford Investment Management (4) EUR 77m / 2 nd Round InflaRx GmbH Bain Capital, Cormorant Asset Management, RA Capital Management (3) EUR 47m / 5 th Round 9. Autolus Ltd. Syncona () EUR 39m / st Round Kymab Ltd. EUR 74m / 2 nd Round Lion s Head Global Partners, Malin Corporation, Wellcome Trust, Woodford Investment Management (4) Bicycle Therapeutics Ltd. EUR 46m / 4 th Round Atlas Venture, Cambridge Innovation Capital, Longwood Fund, Novartis Venture Fund, SR One, SV Health Investors, Vertex Ventures HC (7). PsiOxus Therapeutics Ltd. EUR 35m / 5 th Round Invesco Perpetual, Lundbeckfond Ventures, Mercia Technologies, SR One, Touchstone Innovations, Woodford Investment Management (6) F2G Ltd. EUR 53m / 6 th Round Advent Life Sciences, Aisling Capital, Brace Pharma Capital, Merifin Capital, Novartis Venture Fund, Novo Holdings, Sectoral Asset Management, Sunstone Capital (8) Source: PitchBook as of *others: Novartis Venture Fund, Novo Holdings, Pfizer Venture Investments, RA Capital Management, Rock Springs Capital, Sofinnova Ventures, Tekla Capital Management **others: Versant Venture Management, Vertex Pharmaceuticals, Vivo Capital, Wellington Capital Management Breath Therapeutics GmbH EUR 44m / st Round Gilde Healthcare Partners, Gimv, Sofinnova Partners (3)

12 F C F O v e r v i e w R e c e n t F u n d i n g D e v e l o p m e n t L i f e S c i e n c e s : A c l o s e r L o o k C r o s s - b o r d e r I n v e s t m e n t A c t i v i t y I n v e s t o r A n a l y s i s L i f e S c i e n c e E x i t s 2

13 Life Science Sector Analysis (L5Y) Life Science venture rounds saw a continuing rise in deal volumes from 23 to 26, however, recorded a slight decrease in 27 Within the Life Science sector, the pharmaceuticals sector recorded the highest deal volumes and average deal volumes in each year from 23 to 27, followed by biotechnology and medical technology The biotechnology sector was the most active with 475 deals, however, with a significantly lower average deal volume than in the pharmaceuticals sector Life Science Split by Deal Volume 3, 2,5 2,,49,583,5, 5 Life Science Split by Deal Volume 6% 3% 4% % 9,444 48%,83 Pharmaceuticals Biotechnology Medical Technology Healthcare Technology Systems Healthcare Services 2,57, Healthcare Technology Systems Biotechnology Pharmaceuticals Healthcare Services Medical Technology Average Deal Volume Split Life Science Split by Number of 94 6 Pharmaceuticals Biotechnology Healthcare Services Pharmaceuticals Biotechnology Medical Technology Healthcare Technology Systems Healthcare Services Medical Technology Healthcare Technology Systems Source: PitchBook as of , FCF Equity Research 3

14 Life Science Subsector Analysis (L5Y) Pharmaceuticals The pharmaceuticals sector saw increasing deal volumes from 23 to 26, followed by a decline of EUR 543m in 27 Drug discovery recorded by far the highest aggregated deal volumes and deal count within the pharmaceuticals subsectors Pharmaceuticals Split Over Time,5,479, Drug Discovery Other Pharmaceuticals and Biotechnology Drug Delivery Discovery Tools Cultivation All Subsectors by Average Deal Volume Other Pharmaceuticals and Biotechnology Drug Discovery Drug Delivery Discovery Tools Cultivation The second largest subsector other pharmaceuticals and biotechnology, however, exhibits the highest average deal volume Pharmaceuticals by Deal Volume 8% % 4% 3,89 87% Cultivation Discovery Tools Drug Delivery Drug Discovery Other Pharmaceuticals and Biotechnology Pharmaceuticals Split by Number of Drug Discovery Drug Delivery Other Pharmaceuticals and Biotechnology Discovery Tools Cultivation Source: PitchBook as of , FCF Equity Research 4

15 Life Science Subsector Analysis (L5Y) Biotechnology The biotechnology sector featured a decreasing tendency until 25, but was able to recover again Activity was primarily driven by the therapeutics & diagnostics sector in terms of number of deals and deal volume Biotechnology Split Over Time Therapeutics & Diagnostics R&D Services Other All Subsectors by Average Deal Volume Therapeutics & Diagnostics R&D Services Other Far higher average deal volumes are recorded in the therapeutics & diagnostics sector than in R&D services and other biotechnology areas Biotechnology Split by Deal Volume 6% % 2,936 Therapeutics & Diagnostics R&D Services Other Biotechnology Split by Number of % Therapeutics & Diagnostics R&D Services Other Source: PitchBook as of , FCF Equity Research 5

16 Life Science Subsector Analysis (L5Y) Medical Technology The overall medical technology sector finds itself in decline since 23, mainly driven by the massive fall in therapeutic devices and surgical devices deal volume Most deals were recorded by far in the diagnostic equipment subsector, however, with a relatively low average deal volume Over the last 5 years, diagnostic equipment has received the most funding Financing rounds of surgical devices feature the highest average deal volume Medical Technology Split Over Time Diagnostic Equipment Medical Supplies Monitoring Equipment Other Devices and Supplies Surgical Devices Therapeutic Devices Medical Technology by Deal Volume 7% 23%,537 2% 5% 7% 36% Diagnostic Equipment Medical Supplies Monitoring Equipment Other Devices and Supplies Surgical Devices Therapeutic Devices All Subsectors by Average Deal Volume Surgical Devices Therapeutic Devices Other Devices and Supplies Diagnostic Equipment Medical Supplies Monitoring Equipment Medical Technology by Number of Diagnostic Equipment Other Devices and Supplies Therapeutic Devices Monitoring Equipment Medical Supplies Surgical Devices Source: PitchBook as of , FCF Equity Research 6

17 Life Science Subsector Analysis (L5Y) Healthcare Technology Systems After a significant rise from 23 to 26, deal volumes plummeted from EUR 49m in 26 to EUR 3m in 27 Healthcare Technology Systems Split Over Time All Subsectors by Average Deal Volume Medical Records Systems Other Healthcare Technology Systems The medical records systems subsector features by far the largest deal and average deal volume Medical Records Systems Decision/Risk Analysis Enterprise Systems Other Healthcare Technology Systems Outcome Management Decision/Risk Analysis Outcome Management Enterprise Systems Most deals were recorded in other healthcare technology systems, however, with a relatively low average deal volume Healthcare Technology Systems by Deal Volume 2% % 38 8% 7% Decision/Risk Analysis Enterprise Systems Medical Records Systems Other Healthcare Technology Systems Outcome Management Healthcare Technology Systems Split by Number of Other Healthcare Technology Systems Medical Records Systems Enterprise Systems Decision/Risk Analysis Outcome Management Source: PitchBook as of , FCF Equity Research 7

18 Life Science Subsector Analysis (L5Y) Healthcare Services In general, healthcare services is a relative small subsector compared to the other Life Science subsectors in terms of deal numbers as well as average deal volume The highest deal volume was recorded in 23, all other years show little volumes, despite a constant deal activity (except for 27) Healthcare Services Split Over Time Other Healthcare Services Laboratory Services Clinics/Outpatient Services Hospitals/Inpatient Services Healthcare Services by Deal Volume 4% %% 82 Distributors 58% 9 Other Healthcare Services Laboratory Services Clinics/Outpatient Services Hospitals/Inpatient Services Distributors 5 4 All Subsectors by Average Deal Volume Healthcare Services Split by Number of 2 Other Healthcare Services 5 Laboratory Services Clinics/Outpatient Services Hospitals/Inpatient Services 3 Distributors Laboratory Services Other Healthcare Services Clinics/Outpatient Services Hospitals/Inpatient Services Deal Deal Distributors Source: PitchBook as of , FCF Equity Research 8

19 Average European Deal Size and Duration (L5Y) The pharmaceuticals sector exhibits larger average deal volumes in every financing round than the Biotechnology sector (except for 8 th round) Life Science Round Size Round Number 8 The duration between the financing rounds is the highest for the pharmaceuticals sector with 67 days on average, followed by biotechnology with 58 days Medical technology financing rounds feature predominantly shorter time windows between later financing rounds than all other sectors Pharmaceuticals 29 companies Biotechnology 289 companies Medical Technology 24 companies Healthcare Technology Systems 59 companies Healthcare Services 28 companies Days into corporate life after st financing round Source: PitchBook as of , FCF Equity Research Note: No sufficient data for the subsectors Healthcare Services and Healthcare Technology Systems, rounds that might affect the full financing cycle (round to 8) but are older than 5 years are not taken into consideration 9

20 F C F O v e r v i e w R e c e n t F u n d i n g D e v e l o p m e n t L i f e S c i e n c e s : A c l o s e r L o o k C r o s s - b o r d e r I n v e s t m e n t Ac t i v i t y I n v e s t o r A n a l y s i s L i f e S c i e n c e E x i t s 2

21 Domestic and Cross-border Investments into Europe (L5Y) Since 25 crossborder (foreign / nondomestic) investors exceed domestic investors in terms of total annual deal volumes The proportion of cross-border investors continuously increased in later stage VC rounds Domestic vs. Cross-border Investments 2,5 2, 45%,5 42% 35%, 5% 56% 55% 5 65% 58% 44% 49% Domestic vs. Cross-border Investments by Funding Round # of deals # of deals 6,4 58% 25 4,2 2, 6% 42% 62% % 38% 7% 6 6 6% 4 4 3% 4% VC- VC-2 VC-3 VC-4 VC-5 Cross-border Volume Domestic Volume with Cross-border Participation with Domestic Participation Over the last 5 years, cross-border investors feature higher average deal volumes than their domestic peers with less deal activity Average Domestic and Cross-border Investment Deal Volumes Average Cross-border Volume Average Domestic Volume Source: PitchBook as of , FCF Equity Research Note: Proportional attribution of deal values to investors participating in a transaction 2

22 Origin of Cross-border Investors The US dominates by far the cross-border investor league table in each year from 23 to 27 in terms of deal volumes EUR 27m Ø EUR 3.7m 2. EUR 42m Ø EUR 3.m EUR 299m Ø EUR 3.8m EUR 57m Ø EUR 2.6m EUR 636m Ø EUR 8.m EUR 72m Ø EUR 6.m EUR 495m Ø EUR 6.4m EUR 9m Ø EUR 59.7m EUR 49m Ø EUR 5.7m EUR 9m Ø EUR 8.2m The second most active cross-border investors have a UK origin EUR 42m Ø EUR 2.8m EUR 42m Ø EUR 2.4m EUR 4m Ø EUR 4.m EUR 39m Ø EUR 9.5m EUR 54m Ø EUR.5m EUR 4m Ø EUR 4.m EUR 78m Ø EUR 8.7m EUR 67m Ø EUR 3.5m EUR 8m Ø EUR 4.2m EUR 75m Ø EUR 6.9m 5. EUR 37m Ø EUR 3.4m EUR 32m Ø EUR 4.5m EUR 35m Ø EUR 3.m EUR 57m Ø EUR.m EUR 64m Ø EUR 5.9m 6. EUR 28m Ø EUR 2.5m EUR 28m Ø EUR 3.5m EUR 32m Ø EUR 2.6m EUR 49m Ø EUR 3.7m EUR 53m Ø EUR 3.m 7. EUR 8m Ø EUR 2.6m EUR 27m Ø EUR 2.7m EUR 25m Ø EUR 2.8m EUR 49m Ø EUR 4.9m EUR 2m Ø EUR 9.9m 8. EUR 6m Ø EUR 2.2m EUR 24m Ø EUR 8.m EUR 8m Ø EUR.5m EUR 4m Ø EUR 4.m EUR 9m Ø EUR 3.8m 9. EUR 6m Ø EUR 6.4m EUR 22m Ø EUR.m EUR 2m Ø EUR 3.m EUR 37m Ø EUR 2.3m EUR 8m Ø EUR 8.8m. EUR 6m Ø EUR 2.m EUR 2m Ø EUR 5.3m EUR 8m Ø EUR 3.8m EUR 37m Ø EUR 7.3m EUR 7m Ø EUR.7m Source: PitchBook as of , FCF Equity Research Note: Proportional attribution of deal volumes to investors participating in a transaction 22

23 Investee Company Domicile European Life Science Deal Volume Matrix (L5Y) Within Europe, the UK features by far the highest crossborder in- and outflows in terms of deal volume, however, in terms of its share of crossborder outflows, the UK features the lowest with 6% only Swiss companies received the largest relative share of cross-border investments (84%) Investor Origin Others Global Crossborder Inflows Overall Funding Volume Share of Crossborder Inflow Share of Domestic Funding, ,235 2,926 43% 57% % 76% % 52% ,65 84% 6% % 58% % 24% % 59% % 2% % 7% Comparing crossborder investment flows, the share of German companies which have received foreign investments, ranks in the lower third Global Crossborder Outflows Overall Funding Volume Share of Crossborder Outflow % 8% Others Share of Domestic Funding , % 33% 27% 53% 43% 56% 28% 5% 3% 24% 84% 67% 73% 47% 57% 44% 72% 49% 7% 76% Domestic Investment Foreign Investment Source: PitchBook as of , FCF Equity Research, Note: Proportional attribution of deal values to investors participating in a transaction 23

24 F C F O v e r v i e w R e c e n t F u n d i n g D e v e l o p m e n t L i f e S c i e n c e s : A c l o s e r L o o k C r o s s - b o r d e r I n v e s t m e n t A c t i v i t y I n v e s t o r An a l ys i s L i f e S c i e n c e E x i t s 24

25 Most Active Investors in European Life Science Companies (L3Y) Over the last 3 years, the share of US investors decreased in the Top most active investors in Europe EUR 67m EUR 48m EUR 43m 2. EUR 67m EUR 9m EUR 43m Besides Astra Zeneca, Syncona and Horizon 22* (double mentioning), the league table shows a very diversified composition of investors in each year 3. EUR 67m EUR 63m EUR 43m 4. EUR 67m EUR 53m EUR 43m 5. EUR 67m EUR 5m Wild Family Office EUR 43m 6. EUR 55m EUR 42m EUR 42m 7. EUR 29m EUR 38m EUR 42m 8. EUR 28m EUR 38m EUR 4m 9. * EUR 28m EUR 37m EUR 34m *. EUR 22m EUR 36m EUR 3m Source: PitchBook as of , FCF Equity Research Note: Proportional attribution of deal values to investors participating in a transaction (transaction volume / # investors by financing round) * Horizon 22, the framework program of the European Commission, funds research, technological development and innovation 25

26 Top European Investor Hubs by Capital (L5Y) European Investors Invested in European Life Science Companies The United Kingdom hosts with London, Oxford and Cambridge the most and biggest VC hubs in Europe. London EUR,46m / AUM: EUR 53.bn Top 3 Investors: Janus Henderson Group, Capital Dynamics, Lansdowne Partners Invested capital in European Life Science companies: EUR 5.bn 6. Hellerup EUR 79m / AUM: EUR 47.6bn Top 3 Investors: Novo Holdings, Vækstfonden, - The biggest German VC hub is Munich, with EUR 9m invested capital in European Life Science companies, ranks not even in the Top Paris EUR 427m / AUM: EUR 68.3bn Top 3 Investors: BNP Paribas Asset Management, IdInvest Partners, Omnes Capital Cambridge EUR 42m / AUM: EUR 3.5bn Top 3 Investors: Cambridge Enterprise, Cambridge Innovation Capital, IQ Capital Partners Oxford EUR 36m / AUM: EUR 2.8bn Top 3 Investors: Woodford Investment Management, Oxford Technology, Oxford Sciences Innovation Dublin Oxford 3 London Cambridge Brussels Paris Basel Amsterdam Stockholm Hellerup Basel EUR 7m / AUM: EUR.7bn Top 3 Investors: Novartis Venture Fund, Roche Venture Fund, BioMedPartners Brussels EUR 65m / AUM: EUR.6bn Top 3 Investors: ParticipatieMaatschappij Vlaanderen, European Commission, BNP Paribas Fortis Private Equity Stockholm EUR 47m / AUM: EUR 8.2bn Top 3 Investors: Skandinaviska Enskilda Banken, HealthCap, - Amsterdam Dublin 5. EUR 88m / AUM: EUR 28.7bn Top 3 Investors: PPF Group, Life Sciences Partners, Merck Ventures Invested Capital in European Life Science. EUR 45m / AUM: EUR 2.7bn Top 3 Investors: Enterprise Ireland, Atlantic Bridge Caiptal, ACT Venture Capital Source: PitchBook as of , FCF Equity Research Note: Note: Proportional attribution of deal values to investors participating in a transaction (transaction volume / # investors by financing round) 26

27 Top US Investor Hubs by Capital (L5Y) US Investors Invested in European Life Science Companies. San Francisco EUR 277m / AUM: EUR 6.6bn Top 3 Investors: Versant Venture Management, Foresite Capital Management, 5AM Ventures Seattle West Coast Invested capital in European Life Science companies: EUR 627m East Coast Invested capital in European Life Science companies: EUR 652m 6. New Brunswick EUR 74m / AUM: undisclosed Top 3 Investors: Johnson & Johnson Innovation JJDC, - Boston San Mateo EUR 254m / AUM: EUR 2,64.bn* Top 3 Investors: Fidelity Investments, Wellington Management, Bain Capital San Francisco New York EUR 238m / AUM: EUR 2.3bn Top 3 Investors: OrbiMed, Invus Group, QVT Financial San Mateo Los Angeles Menlo Park 4 Chicago New Brunswick Chevy Chase Boston New York City EUR 74m / AUM: EUR 636.bn Top 3 Investors: Franklin Templeton Investments Los Angeles EUR 68m / AUM: undisclosed Top 3 Investors: Thomas McInerney, Angel Investors, American Funds Insurance Series Menlo Park Chicago 4. EUR 2m / AUM: EUR 24.6bn Top 3 Investors: Sequoia Capital, Bessemer Venture Partners, Canaan Partners 9. EUR 46m / AUM: EUR 2.4bn Top 3 Investors: ARCH Venture Partners, Sandbox Industries, Cultivian Sandbox Ventures Seattle Chevy Chase 5. EUR 96m / AUM: EUR 3.3bn Top 3 Investors: Frazier Healthcare Partners, Maveron, Bill & Melinda Gates Foundation Invested Capital in European Life Science. EUR 4m / AUM: EUR 9.8bn Top 3 Investors: New Enterprise Associates, - Source: PitchBook as of , FCF Equity Research Note: Proportional attribution of deal values to investors participating in a transaction transaction (transaction volume / # investors by financing round) * Significantly influenced by Fidelity Investments (AUM: EUR,79bn) 27

28 European Life Science Fund Development Compared with the record year 26, newly launched Life Science funds collected EUR.bn in 27, down from EUR 3.6bn Top 5 European Life Science Funds Launched in 27* EUR 28m EUR 267m EUR 82m EUR m EUR 85m Fund volumes raised by the new Top 5 Life Science funds in 27 ranges from EUR 9m to EUR 28m LSP Health Economics Fund 2 Target Sector: Medical Technology and Biotechnology Investment Size: EUR 27m - EUR 36m Target Region: Europe & US Medicxi Growth I Target Sector: Biotechnology Investment Size: EUR m - EUR 3m Target Region: Europe European VC Life Science Fund Launches (L5Y) DFJ Esprit IV Target Sector: Biotechnology, Healthcare Services, Information Technology, Software Investment Size: EUR m - EUR 63m Target Region: Europe Seroba Life Sciences Fund III Target Sector: Biotechnology Investment Size: EUR 4m Target Region: Europe Rewired Fund Target Sector: Biotechnology Investment Size: > EUR.5m Target Region: Europe 4, 3,5 3, 2,5 2,,5, 5 3,65, , # of new funds Fund Size Number of Funds Source: PitchBook as of , FCF Equity Research * Results might change with appearance of new funds not tracked by PitchBook 28

29 US Life Science Fund Development US Life Science funds are far bigger than their European counterparts Top 5 US Life Science Funds Launched in 27* The aggregated size of newly launched Life Science funds in the US showed a massive growth with a CAGR of 28.6% from 23 to 27 The New Enterprise Associates 6 th fund leads the table by far with a fund volume of EUR 2,94m EUR 2,94m New Enterprise Associates 6 Target Sector: Pharmaceuticals and Biotechnology Investment Size: EUR 2m - EUR 2m Target Region: North America EUR 79m Clarus IV Target Sector: Pharmaceuticals and Biotechnology Investment Size: EUR 2m - EUR m Target Region: US US VC Life Science Fund Launches 2,, 8, 6, 4, 2, 3,222 3,793 EUR 695m Canaan XI Target Sector: Healthcare Technology Systems Investment Size: EUR m - EUR 4m Target Region: US and Europe 6,96 EUR 56m Oak HC/FT Partners II Target Sector: Life Sciences Investment Size: EUR 9m EUR 53m Target Region: US 8,5 EUR 424m Venrock Associates VIII Target Sector: All Life Science Sectors Investment Size: EUR 5m EUR 53m Target Region: US (one investment in Europe) ,46 # of new funds Fund Size Number of Funds Source: PitchBook as of , FCF Equity Research * Results might change with appearance of new funds not tracked by PitchBook 29

30 F C F O v e r v i e w R e c e n t F u n d i n g D e v e l o p m e n t L i f e S c i e n c e s : A c l o s e r L o o k C r o s s - b o r d e r I n v e s t m e n t A c t i v i t y I n v e s t o r A n a l y s i s L i f e S c i e n c e E x i t s 3

31 Top VC-Backed European Life Science IPOs (L3Y) by IPO Volume The IPO of Adaptimmune with an issuing volume of EUR 9m was the largest European IPO during the last 3 years. 25 Age at IPO: 7 years Indication: Oncology Issuing Volume EUR 9m Age at IPO: years Indication: Inflammatory diseases Issuing Volume EUR m 7 out of the Top IPOs of VC-backed European Life Science companies went public at the NASDAQ in the US The IPO of the German company InflaRx ranks on 6 th place The UK dominates the ranking of VCbacked European Life Science IPOs with a proportion of one third of the Top Age at IPO: 5 years Indication: Oncology 25 Euronext Brussels Age at IPO: 8 years Sector: Medical Technology 25 Age at IPO: 8 years Indication: Rare diseases 27 Age at IPO: 2 years Indication: Oncology Issuing Volume EUR 65m Issuing Volume EUR 9m Issuing Volume EUR 8m Issuing Volume EUR m Age at IPO: 5 years Indication: Genitourinary 27 Age at IPO: 3 years Indication: Orphan diseases 27 Age at IPO: 4 years Indication: Neurology 25 Age at IPO: 3 years Indication: Oncology Issuing Volume EUR 97m Issuing Volume EUR 95m Issuing Volume EUR 87m Issuing Volume EUR 75m Source: PitchBook as of , FCF Equity Research, Biotechgate, S&P Capital IQ as of

32 Top VC-Backed European Life Science Exits (L3Y) ) by Deal Volume The takeover of Acerta Pharma with a purchase price of EUR 3,64m was by far the largest during the last 3 years 3, Deal Year: 26 Found. Year: 22 Indication: Oncology 75 Deal Year: 26 Found. Year: 27 Indication: Oncology The takeover of the German company Ganymed Pharmaceuticals ranks 3 rd among the Top VC-Backed European Life Science exits The Netherlands dominate the ranking with the two largest exits in the last 3 years (Acerta Pharma and Dezima Pharma) ,38 Deal Year: 25 Found. Year: 22 Indication: Cardiovascular,282 Deal Year: 26 Found. Year: 2 Indication: Oncology 942 Deal Year: 27 Found. Year: 22 Indication: Dermatology Cambridge Sandwich Gosselies Copenhagen Naarden Oss Mainz Munich Deal Year: 25 Found. Year: 2 Indication: Neurology EUR m 558 Deal Year: 27 Found. Year: 2 Sector: Services 47 Deal Year: 25 Found. Year: 999 Indication: Musculoskeletal Most acquirers have a Japanese origin (4%)! 5. 8 Deal Year: 27 Found. Year: 22 Indication: Inflammatory Marseille. 464 Deal Year: 27 Found. Year: 24 Indication: Oncology Source: PitchBook as of , Biotechgate, FCF Equity Research ) Includes cash and stock considerations, milestone payments and other considerations 32

33 Top 3 VC-Backed European Life Science Exits (LY) ) by Subsector Significantly larger exits were recorded in pharmaceuticals and biotechnology than in all other Life Science subsectors The largest exit over the last years in the Life Science industry was the acquisition of Acerta Pharma by AstraZeneca with a purchase price of EUR 3,64m Biotechnology Pharmaceuticals,282 Deal Year: 26 Found. Year: 2 Indication: Oncology 942 Deal Year: 27 Found. Year: 22 Indication: Dermatology 75 Deal Year: 26 Found. Year: 27 Indication: Oncology Medical Technology Healthcare Technology Systems 32 Deal Year: 27 Found. Year: Deal Year: 2 Found. Year: 2 24 Deal Year: 24 Found. Year: 994 Healthcare Services Deal Year: 25 Found. Year: 2 29 Deal Year: 2 Found. Year: 25 2 Deal Year: 2 Found. Year: ,64 Deal Year: 26 Found. Year: 22 Indication: Oncology. 6 Deal Year: 25 Found. Year: 28 2.,38 Deal Year: 25 Found. Year: 22 Indication: Cardiovascular 2. Deal Year: 24 Found. Year: Deal Year: 27 Found. Year: 22 Indication: Inflammatory 3. No further deal Source: PitchBook as of , Biotechgate, FCF Equity Research ) Includes cash and stock considerations, milestone payments and other considerations 33

34 Contact Details & Disclaimer D I S C L A I M E R FCF Fox Corporate Finance GmbH Maximilianstrasse Munich Germany Telephone +49 (89) Facsimile +49 (89) info@fcf.de Arno Fuchs Chief Executive Officer P: +49 (89) M: +49 (72) arno.fuchs@fcf.de Dr. Mathias Schott Vice President P: +49 (89) M: +49 (74) mathias.schott@fcf.de Sebastian Sommer Analyst P: +49 (89) M: +49 (72) sebastian.sommer@fcf.de This document does not constitute an offer or invitation to purchase or subscribe for any securities, and neither this document nor anything contained herein shall form the basis of or may be relied upon in connection with any contract or commitment whatsoever. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither FCF nor any of its officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By accepting this document you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. This document contains certain forward-looking statements, including assumptions, opinions and views cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of the Company to differ materially from the estimations expressed or implied herein. FCF does not guarantee that the figures, assumptions and calculations underlying such historical and forward looking statements are free from errors nor does FCF accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments. FCF Fox Corporate Finance GmbH 28 34

35 T H E F I N A N C I N G S P E C I A L I S T