Next Edge CIA Disciplined Growth Portfolio · TSX:PCD.UN
Next Edge CIA Disciplined Growth Portfolio — Next Edge Biotech and Life Sciences Opportunities Fund — Investor Presentation (April 2025)
39 slides from Next Edge CIA Disciplined Growth Portfolio's investor presentation, April 2025
Slide 1: Next Edge Biotech and Life Sciences Opportunities Fund
Next Edge Biotech and THELife CASE FOR PRIVATE Sciences LENDING Opportunities Follow Us Fund April 2025 1
Slide 2: Important Notes
Important Notes The “Next Edge Biotech and Life Sciences Opportunities Fund” or “Fund” means the “Next Edge Biotech and Life Sciences Opportunities Fund”. Capitalized terms not defined in this presentation are defined as set forth in the prospectus of the Fund (the “Prospectus”). This communication
Slide 3: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following presentation may contain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Next Edge Capital Corp., the Portfolio Manager, or any affiliates the
Slide 4: About Next Edge Capital Corp.
About Next Edge Capital Corp. Next Edge Capital Corp. (“Next Edge”) is an alternative investment fund manager providing leading-edge solutions for investors. For almost two decades our experienced team has launched numerous investment solutions in a variety of product structures. The people and appr
Slide 5: About Next Edge Capital Corp. - Our Funds
About Next Edge Capital Corp. Our Funds Next Edge Biotech and Life Sciences Opportunities Fund invests in companies with the potential to facilitate breakthroughs and opportunities of tomorrow in the biotech and life sciences sector. Next Edge Strategic Metals and Commodities Fund opportunistically
Slide 6: Why the Next Edge Opportunities Fund? Experienced Team
Why the Next Edge Biotech and Life Sciences Opportunities Fund? Experienced Team EDEN RAHIM Portfolio Manager Eden Rahim is the Portfolio Manager for the Next Edge Biotech and Life Sciences Opportunities Fund. He also manages the Purpose Healthcare Innovation Yield ETF (TSX ticker: HEAL) as a sub-ad
Slide 7: Media Contributions and Television Appearances
Why the Next Edge Biotech and Life Sciences Opportunities Fund? Media Contributions and Television Appearances Respected Expertise - Called upon to provide biotechnology and healthcare insights for Bloomberg News, BNN, MorningStar, The Globe and Mail, Streetwise, Cantech, Wealth Professional and oth
Slide 8: Why the Next Edge Opportunities Fund?
Next Edge Biotech and Life Sciences Opportunities Fund Why the Next Edge Biotech and Life Sciences Opportunities Fund? • Experienced management team with over two decades of experience in biotech and life sciences • A deep understanding of the science • A unique, well-defined investment process of i
Slide 9: More than a Decade of Biotech Breakthroughs
More than a Decade of Biotech Breakthroughs 2005-2020 2013 • 2 new personalized medicines to treat the most dangerous forms of SKIN CANCER • A new oral treatment for MULTIPLE SCELROSIS 2019 • CRISPR first used to 2015 edit gene in humans 2010 • 2 new drugs for difficult-to-treat forms of HIGH CHOLES
Slide 10: The Case for Biotech - Why now?
The Case for Biotech and Life Sciences - Why now? Cost to decode the human genome has plummeted from $2.7 Billion to Under $1,000 per DNA Sequence. MOORE’S LAW OF BIOTECH: Cost of Sequencing a 3 Billion Base-pair Human Genome $1,000,000,000 $100,000,000 Over the past 20 Years the cost has plunged fr
Slide 11: The Path from Discovery to Commercialization
Why the Next Edge Biotech and Life Sciences Opportunities Fund? The Path from Discovery to Commercialization Experienced Portfolio Manager with a defined process – the focus is on post phase 2 companies enabling a higher probability of commercialization. Sources: PhRMA adaptation of DiMasi JA et al.
Slide 12: Investment Process
Why the Next Edge Biotech and Life Sciences Opportunities Fund? Investment Process Disciplined Investment Process predominately focussed on Post Phase 2 companies with higher probabilities of commercialization. VALUE-CREATING/DESTRUCTION PHASES OF DEVELOPING A RECOMBINANT BIOLOGIC DRUG VALUE-CREATIN
Slide 13: Collision Course of Biology with AI and Computational Mathematics
Collision Course of Biology with AI and Computational Mathematics - Available -85% off Sale Technology Fusing With Biotech: The Emerging 21st Century Biotech Ecosystem GENE EDITING (CRISPR, TALENS, ZINC FINGER) ARTIFICIAL INTELLIGENCE TOOLS / EQUIPMENT GENOMIC SEQUENCING BIG DATA ANALYSIS (AMZN, GOO
Slide 14: Future of Computationally Driven Drug Discovery is Bright
Future of Computationally Driven Drug Discovery is Bright Source: Schrodinger November 2021 Presentation, slide 28 14
Slide 15: The Case for Biotech - Why now?
The Case for Biotech and Life Sciences - Why now? A Virtuous Investment – Significant Research and Investment into Future Breakthroughs. Note: The Fund has a key focus on highlighted areas. Source: PhRMA Research, “Medicines in Development for Neurological Disorders 2018” 15
Slide 16: The Case for Biotech - Why now?
The Case for Biotech and Life Sciences - Why now? A Virtuous Investment – Significant Research and Investment into Future Breakthroughs. Source: Medicines In Development | 2021 Report: Neurodegenerative Disease 16
Slide 17: Nasdaq Biotech Index 1993 to 2022
The Case for Biotech and Life Sciences - Why now? NASADAQ BIOTECH INDEX (^NBI) NASDAQ BIOTECH1993 INDEX (^NBI) 1993 to 2022 - 2022 7 YEARS 4096 2048 1024 7 YEARS 512 4 YEARS 256 128 93 94 95 96 97 98 99 00 01 02 03 03 04 05 06 07 08 09 10 11 12 13 14 14 15 16 17 18 19 20 21 22 Source: Bloomberg Data
Slide 18: Every Major Biotech Bear Market in History of Sector
Every Major Biotech Bear Market in History of Sector 1983->1985: --67% 641 days Q2-Q4 1987: --31% 275 days 1992-1994: --71% 1,163days 0% 0% 5% Apr-83 Aug-83 Dec-83 Apr-84 Aug-84 Dec-84 -10% -5% -5% -15% -20% -10% -25% -30% -15% -35% -40% -20% -45% -50% -25% -55% -60% -30% -65% Reuters Datastream Bio
Slide 19: Almost 60% of Healthcare Companies Declined Over 80% from 2021 High
Almost 60% of Healthcare Companies Declined Over -80% from 2021 High Price % OF HEALTHCARE COS PERFORMANCE BY DECILE FROM 2021 HIGH DECILE BUCKET FROM -100% TO +100% 0.3% 0.2% 0.1% 0.1% 0.2% 0.2% 0.3% 1.1% 1.2% 1 3.5% 2.4% 3.2% 3.3% 5.2% 5.5% 7.0% 9.7% 19.3% 33.6% 3.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25
Slide 20: Impact of Changes in Real Interest Rates on Sector
Impact of Changes in Real Interest Rates on Sector (2020 -2022) 135 165 130 145 S&P BIOTECH INDEX ETF (XBI) 125 125 120 105 TIPs PRICE 115 85 110 65 45 105 25 100 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 S&P BIOTECH INDEX ETF (XBI) TIPs REAL YIELD (TIP) Sou
Slide 21: S&P Biotech Index Versus % Deviation from 200-DMA
S&P Biotech Index Versus % Deviation from 200-DMA: 2002 - 2022 S&P BIOTECH INDEX VS % DEVIATION FROM 200-DMA 2002 - 2022 16000 80% 60% 8000 40% S&P BIOTECH INDEX (^SPSIBI) % DEVIATION FROM 200-DMA 4000 20% 0% 2000 -20% -40% 1000 -60% 500 -80% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20
Slide 22: Footprint of a New Bull Market Unfolding
Footprint of a New Bull Market Unfolding: Biotech Stocks Above 200-DMA at Extreme Matched Only 4th Time in 20 Years NASDAQ BIOTECH INDEX CYCLES 2002 - 2022 PERCENT OF BIOTECH STOCKS ABOVE THEIR 200 DAY MOVING AVERAGE 100 90 PERCENT OF BIOTECH STOCKS ABOVE 200 DMA 80 3200 NASDAQ BIOTECH INDEX (^NBI)
Slide 23: Biotech May be Where O&G Was: % Trading Below Cash
Biotech May be Where O&G Was a Couple Years Ago: % Trading Below Cash Source: https://cms.zerohedge.com/s3/files/inline-images/Snag_1078974.png?itok=NAVdQIAM 23
Slide 24: Relative P-E: Profitable Biotechs Versus S&P
Relative P-E: Profitable Biotechs in S&P Versus S&P P-E: 1992 - 2022 BIOTECH IS UNDERVALUED Source: Bloomberg Data, Concept: Next Edge Capital Corp. Data as of May 11, 2022 24
Slide 25: Biotech Enterprise Value to Revenue Ratio Back to Lows
Biotech Enterprise Value to Revenue Ratio Back to Lows of GFC 13 Years Ago BIOTECH EV-TO-REVENUES (T12 MONTH) 2002 - 2022 14 12 10 8 6 4 2 Data: Bloomberg, Concept: Next Edge Capital 2002 - 2022 25
Slide 26: Biotech Returns the Year After Similar Declines
The Year fter Similar Declines Saw Biotech Rise +63% in 1995 and +44% in 2003 S&P BIOTECHNOLOGY SELECT INDUSTRY INDEX RETURNS (^SPSIBI) 1991 - 1995 2000 - 2003 2020 - 2022 60% 48% 50% 40% 30% 20% 10% 0% -10% -20% -20% -30% -26% 2020 2021 2022 Source: Bloomberg Data, Concept Next Edge Capital Corp, a
Slide 27: Biotech Bull Markets Following Declines Greater than -40%
The Case for Biotech and Life Sciences - Why now? Biotech Bull Markets Following Declines Greater than -40% (1980 – 2019) – Bull Market Cycles Can Offer Significant Upside Source: Next Edge Capital Corp., Bloomberg Data, Reuters-Datastream Biotech represented by the Reuters Datastream World DS Biote
Slide 28: Benefits from M&A Activity in Biotech
The Case for Biotech and Life Sciences - Why now? Benefits from M&A activity in Biotech. Significant premiums can be seen on acquisition targets. Company Month Premium Medivation August 2016 117% Xenoport May 2016 65% Heartware June 2016 93% Transition June 2016 120% Cynapsus September 2016 123% Imm
Slide 29: Biotech is a Farm System for Big BioPharma
The Case for Biotech and Life Sciences - Why now? Benefits from M&A activity in Biotech Biotech is a Farm System for Big BioPharma to Fuel Growth/Significant Premiums. ● December 17, 2019 ● 120% + premium to buy Spark ● To strengthen presence in gene therapy ● September 28, 2016 ● 117% premium paid
Slide 30: R&D Problem Facing Biopharma: Eroom's Law
R&D Problem Facing Biopharma: Eroom’s Law Source: Next Edge Capital Corp., Bloomberg Data 30
Slide 31: The Coming Storm: A 30-Year View of US Patent Expiries
The Coming Storm: A 30-Year View of Us Patent Expiries THE COMING STORM: A 30-YEAR VIEW OF US PATENT EXPIRIES Data: Pharma Market Drivers Part Two: Ch-ch-changes, June 2022. 31
Slide 32: The Case for Biotech - Summary
The Case for Biotech and Life Sciences - Why now? Summary Why Biotech and Life Sciences? Accelerated discoveries, as technology has fused with biotech. Higher Success Rates on discoveries due to innovation from research and development progress. Vast Wealth Creation potential due to rapidly increasi
Slide 33: Fund Performance
Fund Performance HISTORICAL PERFORMANCE1 Class A JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD 2025 2.91% -11.99% -12.82% 10.08% - - - - - - - - -13.08%2 2024 -6.54% 17.97% -7.34% -13.01% -6.97% -6.48% 20.80% 7.73% -7.08% 0.28% -0.37% -11.64% -29.30% 2023 8.71% -6.40% -6.52% 5.42% -1.53% -3.54
Slide 34: Historical Performance
HISTORICAL PERFORMANCE1 Class A1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD 2025 2.98% -11.94% -12.77% 10.15% - - - - - - - - -12.86%2 2024 -6.49% 18.03% -7.29% -12.96% -6.93% -6.44% 20.87% -7.68% -7.02% 0.34% -0.32% -11.56% -28.82% 2023 12.40% -8.18% -7.37% 5.47% -1.47% -3.48% -1.28% -4.78
Slide 35: Fund Details
Fund Details Manager Next Edge Capital Corp. Fund Type Alternative Mutual Fund Launch Date January 2023 Registered Plan Status Eligible Minimum Initial Investment $5,000 Minimum Subsequent Investment $1,000 Redemptions/Purchases Daily Class A: 1.5% (1% servicing fee paid Management Fee (Includes Ser
Slide 36: Appendix
Appendix
Slide 37: Institutional Biotech Performance
Institutional Biotech Performance PORTFOLIO MANAGER’S HEALTHCARE PERFORMANCE Portfolio Manager's HealthcareAT RBC Performance at RBC 1995-2003* Cumulative & Absolute Performance versus TSX Healthcare Benchmark1995-2003* Cumulative & Absolute Performance versus TSX Healthcare Benchmark 450 110 400 90
Slide 38: Reference Track Record for Portfolio Management Team
Reference Track Record for Portfolio Management Team Track record of the Next Edge Bio-Tech Plus Fund from February 2015 to December 2020 3 Year 5 Year Annualized Annualized 1 Year Annualized Annualized Since Inception volatility Next Edge Bio-Tech Plus Fund 13.83% -4.24% -1.50% -0.37% 22.76% Refere
Slide 39: nextedgecapital.com
nextedgecapital.com linkedin.com/company/next-edge-capital twitter.com/NextEdgeCapital NextEdgeCapital 18 King Street East, 902, Toronto, Ontario M5C 1C4 416.775.3600 Toll Free: 1.877.860.1080 info@nextedgecapital.com
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