Therapeutics (Sprout IX, formerly NASDAQ: RNAI, exited through sale to Merck, 8.1x multiple).
e Structured Investments in Public Companies: The Fund Managers have led and participated in a number of structured investments into small cap public companies. These have included Array Pharmaceuticals (NLV-II, NASDAQ: ARRY; led a structured follow-on investment, NLV team member joined the board, exited at 2.25x), Acadia Pharmaceuticals (NLV-II, NASDAQ: ACAD, exited at 2.5x) and _ Intercept Pharmaceuticals (NLV-II, NASDAQ: ICPT; anchored company’s IPO, NLV team member initially joined the company’s board, exited at 3.2x).
For a complete list of investments made by the Fund Managers in healthcare technology companies see Appendix 1.
Favorable conditions for biopharmaceutical investments for NLV-III
The Fund Managers believe that NLV-III will be invested in a market with attractive conditions for investment in the biopharmaceutical sector. As a result, the Fund should have the opportunity to invest in compelling biopharmaceutical opportunities that have attractive risk- return profiles. A number of factors support this positive view of the investment thesis in the biopharmaceuticals sector.
First, the Fund will invest in a portfolio of biopharmaceutical companies with an emphasis on those that are developing targeted therapeutic opportunities that address mechanisms of disease at the molecular level with high specificity and offer meaningful efficacy and safety benefits to specific sub-groups of patients. Where possible, the Fund will look to invest in companies with product programs that are guided by validated biomarkers that can enable highly specific patient selection and provide an objective measurement of drug effect. The Fund Managers believe that opportunities with these characteristics offer important benefits to all market participants in the biopharmaceuticals sector, and that these substantially de-risk the R&D and commercial sides of the biopharmaceutical business model in ways that can meaningfully benefit investors.
Patients are offered therapies that are more targeted to their disease, and benefit from improvements in efficacy and safety through increased life expectancy, improved quality of life, and a more rapid return to a fully productive life;
Physicians have access to an arsenal of products that they can choose from to tailor therapy to specific patients’ disease, and avoid the costs and risks associated with using less effective therapies that carry all the safety risks, but may or may not have any effect on the specific disease subtype of an individual patient;
Payers may pay higher prices for these therapies, but with the enhanced efficacy and safety profile that’s possible with biomarker based targeting, they can expect to see better overall patient outcomes, that ultimately save money within the system;
Pharmaceutical Companies benefit because with targeted approaches to drug discovery and
development, the probabilities of success improve, interactions with regulators become less risky, timelines to move products from the lab to the market can be significantly shortened, and
35 CONTROL NUMBER 257 - CONFIDENTIAL
HOUSE_OVERSIGHT_024046