Cempra Inc November 16, 2015

November 16, 2015 Cempra Inc More Favorable on Solithromycin Approval, Moving to OW with a $38 Price Target Industry View In-Line Stock Rating Overweight Price Target $38.00 Cempra has released additional details on the data for solithromycin IV, suggesting the liver abnormalities noted are transient and the heart rate changes appear in-line with moxifloxacin. External consultants believe existing data are approvable. Accordingly, we are raising our POS, and PT to $38. What's Changed? From: To: Cempra Inc Price Target $25.00 $38.00 Rating Equal-weight Overweight Recently Cempra released additional color on the solithromycin IV data from the Solitaire-IV trial suggesting that the increased liver enzymes (ALT) noted in the trial are transient and reversible, without any additional indication of liver injury. In regards to the heart rate increases noted in this trial and during the QT study, we think there is still some question about the changes DURING the infusion and whether solithromycin causes mild QT prolongation, albeit less than moxifloxacin. External consultants with extensive regulatory experience have reviewed the publicly available data and believe that solithromycin has a high probability of being approved with the existing data. Despite a similar drug having an unfavorable regulatory past (Ketek), these consultants think the environment at the FDA has changed, resulting in an agency receptive to new antibiotics. Accordingly, we are increasing our probability of success (POS) for oral solithromycin to 75% from 55% and IV solithromycin to 70% from 40%, our price target to $38, and upgrading CEMP to OW. We will be hosting a client call at 2pm EST with renowned regulatory consultant Dr. Mark Goldberger to discuss his insights about the solithromycin data and anticipated regulatory pathway. Dial-in information for the 2pm EST call: +1 (888) 802-7234, Conference ID: 82525722. Liver enzyme increases not likely to derail solithromycin approval. In the Solitaire-IV trial, 8.2% of patients experienced Grade 3 ALT elevations, a rate higher than that noted with other antibiotics, including Ketek. Additional color about these elevations provided by the company suggest that the elevations occurred early (detected on Day-4 or Day-7), and that the elevations seen on Day-4 typically declined by Day-7 despite continued dosing. Additionally, no additional evidence of liver injury including Hy's Law, was noted. External consultants indicated these changes, while likely to increase regulatory scrutiny, alone were not likely to be "lethal" to the regulatory MORGAN STANLEY & CO. LLC Andrew S Berens Andrew.Berens@morganstanley.com Thomas J Smith Thomas.J.Smith@morganstanley.com Amy Le Amy.Le@morganstanley.com Cempra Inc ( CEMP.O, CEMP US ) +1 212 761-3017 +1 212 761-6209 +1 212 761-0840 Biotechnology / United States of America Stock Rating Overweight Industry View In-Line Price target $38.00 Shr price, close (Nov 13, 2015) $27.63 Mkt cap, curr (mm) $1,035 52-Week Range $46.99-13.05 Fiscal Year Ending 12/14 12/15e 12/16e 12/17e ModelWare EPS ($) (1.81) (2.22) (2.50) (2.16) Prior ModelWare EPS - (2.11) (2.41) - ($) P/E NM NM NM NM Consensus EPS ($) - (2.23) (1.84) (1.94) Div yld (%) - - - - Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare framework = Consensus data is provided by Thomson Reuters Estimates e = Morgan Stanley Research estimates QUARTERLY MODELWARE EPS ($) 2015e 2015e 2016e 2016e Quarter 2014 Prior Current Prior Current Q1 (0.51) - (0.41)a - - Q2 (0.49) - (0.57)a - - Q3 (0.34) (0.55) (0.63) - - Q4 (0.46) (0.57) (0.61) - - e = Morgan Stanley Research estimates, a = Actual Company reported data Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. 1

package. Cardiac changes with solithromycin appear manageable. The company released additional data regarding the heart rate changes noted in the trial. While tachycardia was noted in 3 solithromycin patients versus 2 moxifloxacin patients, less solithromycin patients (n=11) experienced cardiac disorders than moxifloxacin (n=17), and at four hours post-infusion on Day 1, the mean decline in baseline heart rate was greater with solithromycin. While this does not completely alleviate concerns about the cardiac changes occurring during infusion, one consultant indicated that QT changes seen with solithromycin appear to be less than moxifloxacin and are also not likely to be viewed as "lethal" by the agency. Short-term follow-up data suggest IV solithromycin more often has less efficacy than moxi and rarely was superior. One consultant highlighted that, in the reported solithromycin IV short-term efficacy (CE-SFU), the upper confidence interval just crossed 0, suggesting that solithromycin efficacy rarely exceeded that of moxi, while the lower confidence interval was minus 9.4%. This consultant felt that short-term follow-up data, while not being the endpoint preferred by the FDA, is important clinically. External consultants see solithromycin IV and oral as approvable. Based on the publicly available data and knowledge of the regulatory climate at the agencies, both consultants believe that solithromycin is likely to be approved. They believe that the liver and cardiac changes, while likely to heighten scrutiny, are not insurmountable, especially given the recent efforts to stimulate antibiotic development. Raising probability of success, price target, and rating to OW. We think sentiment regarding solithromycin approval, while improving after the company released additional data, is still overly skeptical about the risk, likely related to extremely high expectations into the data, and the Ketek experience. Based on external consultant input we have raised our POS for oral solithromycin to 75% from 55%, our POS for IV solithromycin to 70% from 40%, our POS for pediatric solithromycin to 45% from 40%, and POS for ex-us royalties to 55% from 30%. We have not changed our revenue forecasts or any other inputs into our model or valuation. Commercial concerns still likely to be polarized argument. While we think solithromycin is likely to be approved, many investors still question the commercial viability of the drug in a sea of generics, especially given the less efficacy noted with the IV formulation and infusion pain. We do not think this polarized argument is likely to be resolved until the first meaningful prescription data are available. Until that point, we think CEMP shares are likely to trade on the de-risking of the regulatory process,with rolling submission of the regulatory application expected to be completed in 1H16. The full dataset from the IV trial is expected to be presented in May 2016. Expert call today to discuss data and regulatory pathway fueling upgrade. We will be hosting a client call with Dr. Mark Goldberger to discuss the solithromycin data and anticipated regulatory pathway. Access the 2pm EST call using the following details: +1 (888) 802-7234, Conference ID: 82525722 2

Risk Reward Solithromycin Offers a Compelling Commercial Opportunity in the Treatment of Pneumonia $ 60 50 40 30 20 10 Price Target $38 Bull $50 Risk-Adjusted SOP $27.63 $50.00 (+81%) $38.00 (+38%) $11.00 (-60%) 0 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 Price Target (Nov-16) Historical Stock Performance Current Stock Price Source: Company data, Morgan Stanley Research WARNINGDONOTEDIT_RRS4RL~CEMP.O~ We derive our PT from a risk-adjusted sum-of-the-parts (SOP) analysis. We forecast expected revenue/profits for each drug/condition combination with varying commercial assumptions for base/bull/bear cases. We assume an 10% WACC and terminal value of 1.5x the 2030 cash flow to derive our PT. We then assign a probability factor for each drug/condition to reflect clinical and regulatory risks/timing, sum the risk-adjusted NPVs and add cash in excess of required investment. Full presentation of the solithromycin data from the Solitaire-IV trial alleviate safety concerns and/or lead to a more favorable commercial outlook in which the drug gains favorable inpatient formulary placement and sees rapid uptake and prescriber acceptance. We model a more robust launch, and peak sales of ~$2 billion. Investment Thesis We are Overweight CEMP. Our diligence on the commercial opportunities and development risks for Cempra's lead compound suggests the drug can be commercially successful. Outside of pneumonia, we see the drug gaining usage as an alternative to other macrolides. Solithromycin offers compelling commercial opportunities. We believe solithromycin can take market share from fluoroquinolones and successfully carving out a niche in the largely genericized antibiotic market if the drug proves to have a more favorable safety profile. Key Value Drivers The main valuation drivers are perceived clinical and regulatory risks for solithromycin and the commercial launch execution. Potential Catalysts Solithromycin Phase 3 SOLITAIRE-U data in gonorrhea YE15/early'16 Solithromycin completes rolling submission of NDAs for CABP 1H16 Solithromycin Phase 3 IV SOLITAIRE data presentation at medical meeting April/May 2016 Solithromycin Phase 2 data in COPD and NASH YE16 Base $38 Risk-Adjusted SOP Bear $11 Risk-Adjusted SOP We have concerns about the safety and regulatory profile of solithromycin, and assume a probability of success in CABP of 75% in the outpatient setting and 70% in the inpatient setting. Assuming approval, we expect solithromycin to capture market share from the fluoroquinolone class of drugs with some share gains from other macrolide antibiotics. Most of the revenues in both the outpatient and inpatient settings are likely to be derived from pneumonia. We forecast peak sales of $1.7 billion in the U.S, based on a conservative launch trajectory to similar antibiotics (i.e Ketek). Presentation of the full IV solithromycin data reveal additional safety and regulatory concerns. In this scenario, the oral capsule solithromycin may still be approvable, but the inpatient (IV) and IV-to-oral usage is removed, and risk to the overall solithromycin program is increased. Risks to Achieving Price Target Solithromycin full Phase 3 IV data raises some hepatic and/or cardiac safety concerns Solithromycin is not approved 3

CEMP Updated Valuation Exhibit 1: Valuation Driven by Risk-Adjusted Sum-of-the-Parts Source: Company data, Morgan Stanley Research Our $38 PT includes US solithromycin usage in community-acquired bacterial pneumonia (CABP), sexually-transmitted infections (STIs) including gonorrhea, use in pediatric populations, as well as royalties and milestones from sales of solithromycin in Europe and Japan. Updated Valuation and Price Target: Our new price target of $38 (raised from $25) is driven by changes to the probability of success for solithromycin. Specifically, we have increased our probability of success for (1) outpatient CABP (oral) usage to 75% from 55%, (2) inpatient CABP (IV) usage to 70% from 40%, (3) hospital discharge (IV to oral) usage to 70% from 40%, (4) outpatient non-cabp usage to 75% from 40%, (5) pediatric usage to 45% from 40%, and (6) royalties from ex-us usage in Europe and Japan to 55% from 30%. Our peak sales estimate for solithromycin remains unchanged at $1.7bn in the US. Valuation Methodology: We use a risk-adjusted sum-of-the-parts methodology to value Cempra, examining the clinical, regulatory, and commercial risks and opportunities for each individual indication and region, and assigned a probability of success to account for the likelihood of achieving those revenues/expenses. Discount Rate: We use a discount rate of 10% for CEMP, generally in-line with the company's historical WACC and companies at a similar stage at development. Terminal Growth Rate: Our model forecasts the revenues and expenses for each opportunity to 2030. We apply a 1.5x multiple to the 2030 cash flows to account for the terminal value of each asset. 4

Income Statement Exhibit 2: CEMP Income Statement Cempra Inc. Income Statement ($ mn except per-share data) 2012A 2013A 2014A 1Q15A 2Q15A 3Q15A 4Q15E 2015E 2016E 2017E 2018E 2019E 2020E US Solithromycin - Outpatient CABP 27.4 81.4 140.9 204.2 US Solithromycin - Inpatient CABP 11.2 35.1 61.2 89.6 US Solithromycin - Outpatient Non-CABP 12.2 36.8 59.0 74.0 US Solithromycin - Gonorrhea 1.0 2.9 4.8 US Solithromycin - Pediatric Usage 17.0 55.0 97.6 Total US Solithromycin Sales 50.7 171.3 318.9 470.3 EU Solithromycin Royalties 0.0 4.1 13.7 25.5 JP Solithromycin Royalties 0.0 3.4 11.6 21.5 Total Solithromycin Royalties 0.0 7.5 25.3 47.0 Product Sales - - 50.7 171.3 318.9 470.3 Royalties - - 0.0 7.5 25.3 47.0 Contract research 0.0 3.5 9.6 2.1 3.2 2.5 2.0 9.7 9.0 License 0.0 4.3 4.3 10.0 0.0 0.0 0.0 10.0 Supply 0.0 0.0 1.3 1.9 1.9 0.0 2.0 5.8 8.0 Revenue 0.0 7.8 15.2 14.0 5.1 2.5 4.0 25.5 17.0 50.7 178.8 344.2 517.3 Cost of Goods - - - - - - - - - 5.6 17.1 31.9 47.0 Gross Profit 0.0 7.8 15.2 14.0 5.1 2.5 4.0 25.5 17.0 45.1 161.7 312.3 470.3 Research and development 16.9 41.3 62.5 26.1 23.7 23.5 24.0 97.3 100.0 80.0 50.0 45.0 38.3 General and administrative 6.1 9.4 12.1 4.7 5.7 5.8 6.0 22.2 28.0 65.0 80.0 92.0 101.2 Total operating expenses 22.9 50.7 74.6 30.8 29.4 29.4 30.0 119.6 128.0 145.0 130.0 137.0 139.5 Operating income (Loss) (22.9) (42.9) (59.4) (16.8) (24.4) (26.9) (26.0) (94.0) (111.0) (99.9) 31.7 175.3 330.8 Interest Income 0.1 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - - Interest expense (1.4) (2.1) (2.4) (0.6) (0.6) (0.7) (0.7) (2.6) (2.5) (2.5) (2.5) - - Pretax income (loss) (24.2) (45.0) (61.6) (17.4) (25.0) (27.6) (26.7) (96.6) (113.5) (102.4) 29.2 175.3 330.8 Income Taxes (expense) benefit - - - - - - - - - - - 26.3 82.7 Tax Rate 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15% 25% Net loss attributable to common stockholders (24.5) (45.0) (61.6) (17.4) (25.0) (27.6) (26.7) (96.6) (113.5) (102.4) 29.2 149.0 248.1 Net income (loss) attributable to common ($1.23) ($1.53) ($1.81) ($0.41) ($0.57) ($0.63) ($0.61) ($2.22) ($2.50) ($2.16) $0.60 $3.03 $5.02 Basic Shares Outstanding 19.9 29.4 34.1 42.7 43.7 43.9 44.0 43.6 45.4 47.4 47.6 47.7 47.9 Diluted Shares Outstanding 19.9 29.4 34.1 42.7 43.7 43.9 44.0 43.6 45.4 47.4 48.9 49.2 49.4 Source: Company data, Morgan Stanley Research 5

Balance Sheet Exhibit 3: CEMP Balance Sheet Cempra Inc. Balance Sheet ($ mn except per-share data) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cash and ST Investments: Cash 70.1 96.5 99.1 145.0 186.9 87.5 93.6 224.5 451.3 Receivables 0.0 1.6 2.4 1.5 1.7 2.5 8.9 17.2 25.9 Prepaid expenses 0.3 0.4 3.4 3.8 4.3 6.1 19.7 34.4 51.7 Inventories 0.0 - - - - 7.6 26.8 51.6 77.6 Total current assets 70.4 98.5 104.9 150.3 192.8 103.7 149.1 327.7 606.5 Property and equipment, net 0.0 0.1 0.1 0.5 0.7 1.5 4.5 8.6 14.6 Deposits 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Total Assets 70.7 99.0 105.3 151.2 193.9 105.6 154.0 336.7 621.5 Current liabilities: Accounts payable 2.2 6.3 11.9 17.9 19.2 21.8 19.5 20.6 20.9 Accrued expenses 0.3 0.4 1.0 1.2 1.3 1.5 1.3 1.4 1.4 Accrued payroll and benefits 0.6 1.0 1.6 2.4 2.6 2.9 2.6 2.7 2.8 Deferred revenue 0.0 0.0-0.0 0.0 0.0 0.0 0.0 0.0 Warrant liability 0.0 0.9 - - - - - - - Current portion of long-term debt 2.2 2.2 3.6 Total current liabilities 5.3 10.9 18.1 21.5 23.0 26.1 23.4 24.7 25.1 Deferred revenue 0.0 5.6 11.3 Long-term debt 7.6 12.5 14.9 20.0 15.6 8.9 2.2 0.0 0.0 Total Liabilities 13.0 29.0 44.3 41.5 38.6 35.0 25.6 24.7 25.1 Stockholders Equity: Convertible preferred stock 0.0 - - - - - - - - Common stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Additional paid-in capital 179.0 236.2 288.9 434.3 593.4 603.5 612.8 622.7 632.9 Accumulated deficit (121.2) (166.3) (227.9) (324.7) (438.2) (532.9) (484.5) (310.7) (36.6) Total Stockholders Equity 57.8 70.0 61.0 109.6 155.3 70.6 128.3 312.1 596.4 Total Liabilities and Stockholders Equity 70.7 99.0 105.3 151.2 193.9 105.6 154.0 336.7 621.5 Source: Company data, Morgan Stanley Research 6

Cash Flow Statement Exhibit 4: CEMP Cash Flow Statement Cempra Inc. Cash Flow ($ mn except per-share data) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cash Flows From Operating Activities Net loss (24.2) (45.0) (61.6) (96.6) (113.5) (102.4) 29.2 149.0 248.1 Adjustments to reconcile net loss to net cash used in operatin Depreciation 0.0 0.0 0.1 0.1 0.1 0.2 0.5 1.1 1.8 Share-based compensation 1.7 3.2 3.1 5.9 7.7 8.7 7.8 8.2 8.4 Change in fair value of warrant liabilities (0.1) 0.2 (0.1) - - - - - - Amortization of debt issuance costs 0.4 0.7 0.8 0.4 Changes in operating assets and liabilities: Accounts receivable, net - (1.6) (0.7) 0.8 (0.2) (0.8) (6.4) (8.3) (8.7) Prepaid expenses and other assets 0.0 (0.1) (3.0) (0.4) (0.4) (1.8) (13.6) (14.7) (17.3) Deposits (0.3) (0.0) (0.0) - - - - - - Accounts payable (0.8) 4.1 5.6 6.0 1.3 2.6 (2.3) 1.1 0.4 Accrued expenses 0.1 0.0 0.6 0.2 0.1 0.2 (0.2) 0.1 0.0 Accrued payroll and benefits 0.2 0.4 0.6 0.8 0.2 0.3 (0.3) 0.1 0.0 Deferred revenue - 5.7 5.7 (11.3) - - - - - Net cash used in operating activities (23.1) (32.4) (49.1) (94.1) (104.8) (93.0) 14.8 136.5 232.7 Cash Flows From Investing Activities Purchases of furniture, fixtures and equipment (0.0) (0.1) (0.1) (1.0) (0.3) (1.0) (3.6) (5.2) (7.8) Net cash used in investing activities (0.0) (0.1) (0.1) (1.0) (0.3) (1.0) (3.6) (5.2) (7.8) Cash Flows From Financing Activities Proceeds from borrowing on long-term debt - 5.2 3.0 1.5 (4.4) (6.7) (6.7) (2.2) - Payments on long-term debt - (0.2) - Payment of debt issuance costs - (0.3) (0.0) Proceeds from exercise of stock options and warrants 0.0 0.1 0.4 0.7 1.4 1.4 1.5 1.7 1.9 Proceeds from issuance of common stock, net of underwriting d 78.3 54.4 48.5 138.8 150.0 - - - - Payment of offering costs (0.7) (0.2) (0.1) Net cash provided by financing activities 77.6 59.0 51.8 141.0 147.0 (5.3) (5.1) (0.5) 1.9 Net (decrease) increase in cash and cash equivalents 54.5 26.4 2.6 45.8 41.9 (99.3) 6.1 130.8 226.8 Cash and cash equivalents at beginning of period 15.6 70.1 96.5 99.1 145.0 186.9 87.5 93.6 224.5 Cash and cash equivalents at end of period 70.1 96.5 99.1 145.0 186.9 87.5 93.6 224.5 451.3 Source: Company data, Morgan Stanley Research 7

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Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively. COVERAGE UNIVERSE INVESTMENT BANKING CLIENTS (IBC) STOCK RATING CATEGORY COUNT % OF TOTAL COUNT % OF TOTAL IBC % OF RATING CATEGORY Overweight/Buy 1210 36% 340 43% 28% Equal-weight/Hold 1445 43% 346 44% 24% Not-Rated/Hold 91 3% 9 1% 10% Underweight/Sell 651 19% 95 12% 15% TOTAL 3,397 790 Data include common stock and ADRs currently assigned ratings. Investment Banking Clients are companies from whom Morgan Stanley received investment banking compensation in the last 12 months. Analyst Stock Ratings Overweight (O). The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Equal-weight (E). The stock's total return is expected to be in line with the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Not-Rated (NR). Currently the analyst does not have adequate conviction about the stock's total return relative to the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Underweight (U). The stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months. Analyst Industry Views Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be attractive vs. the relevant broad market benchmark, as indicated below. In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be in line with the relevant broad market benchmark, as indicated below. Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant broad market benchmark, as indicated below. Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia - relevant MSCI country index or MSCI sub-regional index or MSCI AC Asia Pacific ex Japan Index. Stock Price, Price Target and Rating History (See Rating Definitions) 9

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Third-party data providers make no warranties or representations relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages relating to such data. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and S&P. Morgan Stanley Research, or any portion thereof may not be reprinted, sold or redistributed without the written consent of Morgan Stanley. INDUSTRY COVERAGE: Biotechnology COMPANY (TICKER) RATING (AS OF) PRICE* (11/13/2015) Andrew S Berens Acceleron Pharma Inc (XLRN.O) O (08/13/2015) $35.47 Akebia Therapeutics Inc (AKBA.O) O (09/09/2015) $8.30 Cempra Inc (CEMP.O) O (11/16/2015) $27.63 GW Pharmaceuticals PLC (GWPH.O) O (08/13/2015) $82.71 Intercept Pharmaceuticals Inc (ICPT.O) U (08/13/2015) $181.01 Keryx Biopharmaceuticals Inc (KERX.O) E (10/05/2015) $5.07 Ocular Therapeutix Inc (OCUL.O) E (10/23/2015) $8.48 Relypsa, Inc. (RLYP.O) U (08/13/2015) $18.96 Rockwell Medical Inc (RMTI.O) U (08/13/2015) $10.01 Versartis, Inc. (VSAR.O) E (08/13/2015) $10.25 ZS Pharma Inc (ZSPH.O) E (11/09/2015) $89.56 Matthew Harrison Alexion Pharmaceuticals (ALXN.O) O (10/01/2015) $166.44 Amgen Inc. (AMGN.O) E (01/05/2015) $151.55 Biogen Inc (BIIB.O) O (03/26/2014) $284.84 Bluebird Bio Inc (BLUE.O) O (10/05/2015) $71.39 Celgene Corp (CELG.O) E (03/26/2014) $107.49 Chimerix Inc (CMRX.O) E (10/05/2015) $38.78 DBV Technologies SA (DBVT.O) O (09/15/2015) $34.82 Galapagos NV (GLPG.O) O (06/08/2015) $49.37 Gilead Sciences Inc. (GILD.O) E (10/01/2015) $102.57 Global Blood Therapeutics Inc (GBT.O) O (09/08/2015) $45.35 ImmunoGen Inc. (IMGN.O) U (09/21/2015) $12.49 Infinity Pharmaceuticals Inc (INFI.O) O (09/21/2015) $7.78 Ironwood Pharmaceuticals, Inc. (IRWD.O) E (08/14/2014) $11.87 Juno Therapeutics Inc (JUNO.O) E (01/13/2015) $50.00 Ophthotech Corp (OPHT.O) O (08/14/2014) $54.38 Portola Pharmaceuticals Inc (PTLA.O) O (08/14/2014) $48.96 Regeneron Pharmaceuticals Inc. (REGN.O) E (10/01/2015) $548.90 Regenxbio Inc (RGNX.O) O (10/12/2015) $23.20 Theravance Inc (THRX.O) U (08/14/2014) $8.86 Ultragenyx Pharmaceutical Inc (RARE.O) E (07/27/2015) $95.70 Vertex Pharmaceuticals (VRTX.O) O (10/01/2015) $123.05 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted. 2015 Morgan Stanley 11