BTC Health Ltd Registered · ASX:BTC
BTC Health Ltd Registered — BioTech Capital — Investor Presentation (November 2002)
31 slides from BTC Health Ltd Registered's investor presentation, Nov 11, 2002
Slide 1: BioTech Capital Limited
[liChallenger Biotech Capital Limited Me fo WY cil
Slide 2: Presentation Outline
Challenger INVESTMENT SERVICES til Presentation Outline = introduction History People ® Scientific Advisory Panel ® Structure ;" Investment Philosophy " Financials ® Deal Flow ® Performance ® Outlook = Summary ® Background on Investments
Slide 3: Introduction
Challenger INVESTMENT PEMICES ti Introduction BioTech Capital Limited offers investors: « — A listed vehicle providing exposure to a diversified portfolio of early stage, Australian bio-medical research « Access to national deal-flow opportunities » Access to the expertise and networks of some of Au
Slide 4: History
Challenger INVESTMENT SERVICES ti History WI ™ Managed by Challenger International Limited " Successfully raised $40m ® Listed on ASX in August 2000 ® Approximately 6,000 shareholders " Amongst the largest pure biotech funds in Australia
Slide 5: People
ti Challenger People Board comprises 3 executive and 2 non-executive directors ®" Good mix of commerce, funds management, deal structuring and technical expertise « Bill Ireland (Chairman) « Harry Karelis (Managing Director) w Alastair Davidson « |rene Lee (Independent) « Professor Tony Basten (Inde
Slide 6: Scientific Advisory Panel
Challenger INVESTMENT SERMICES 7, ti Scientific Advisory Panel ® Foursight Associates © Leading group of internationally recognised scientists « Sir Gustav Nossal (WEHI) « Dr Graham Mitchell (WEHI, CSL) ® Dr John Stocker (AMRAD, CSIRO, CIR, TLS) « Prof. David Pennington (Melbourne Uni, COH) |ndepend
Slide 7: Structure
MV Challenger _ INVESTMENT SERVICES, til Structure ® BioTech Capital is structured as an investment fund and not an operating company ® No “burn rate” as such ® No requirement to raise additional funds from investors ® No desire to become a long term holding company Investments will be realised at t
Slide 8: Investment Philosophy
il |Challenger | Investment Philosophy Pn en Investment Style Traditional Funds Management Traditional Venture Capital Very hands on 2 Active/passive 2 Passive Usually early approach 2 Usually late : i stage * Blend of styles stage 2 Often controlling 2 Minority stakes stakes = Usually no Board » Bo
Slide 9: Investment Philosophy (continued)
Investment Philosophy (continued) [dng ane eno ti ANVESTMENT SERVICES: Challenger Portfolio Construction & Target a diversified portfolio of 10-20 investments Seek to diversify portfolio across stage of development and by sector Investments will never represent >50% of a company’s issued capital Ens
Slide 10: Investment Philosophy
{iiChalienger — Investment Philosophy Pg fn onion Diversification a core philosophy * Diversified by company, stage of development and sector » . No interest in pre-seed/start-up investments ie id Risk Early Expansion Late-stage IPO/EXIT
Slide 11: Investment Philosophy: Investment Focus
Challenger _ i | INVESTMENT, SERVICES, Investment Philosophy ~~ [eet Investment Focus u Areas of focus will be: « Post-Genomics: functional genomics, proteomics, glycomics, pharmacogenomics « Stem Cell Biology: drug screening, therapy * Convergence: bioinformatics, bionics, biosensors, tissue engine
Slide 12: Investments
ey iy, Vy y Ys ey a i i NG Investment Philosophy Investments Challenger ANVESTMENT SERVICES: ti Cash 49% ill | igi? Proteome Systems i / hoe X-Ray Technologies 4 10% Xenome 9% Pacific Knowledge Alchemia Systems 5% 5%
Slide 13: Financials
Challenger INVESTMENT PEN ICES ti Financials Cash backing of 23.90 cents per share Asset backing of 48.8 cents per share $19.1 million in cash available for investments
Slide 14: NTA Breakdown
Challenger — INVESTMENT PEMICES ti NTA Breakdown Investment % ownership $ value % of total funds Equivalent cents Per 1 |Proteome Systems 2.57% $5,375,000 13.75% 6.72 2 [X-Ray Technologies 20.00% $4,000,000 10.24% 5.00 3 |Xenome 27.30% $3,500,000 8.96% 4.37 4|Biocomm 24.00% $3,000,000 7.68% 3.75 5 |
Slide 15: Deal flow
Challenger INVEST MIEN SERVICES ti Deal flow )* Have reviewed 72 opportunities in past 12 months * 6 progressed to formal due diligence: 2 investments concluded (Xenome, Biocomm) 2 aborted N 2 pending
Slide 16: Deal flow
| ll Challenger INVESTMENT SERVICES Deal flow Proteomics Other Genomics Agricultural Medical Device Informatics Enabling Technology Platform Technol echnology Therapeutic Discovery Diagnostic
Slide 17: Milestones: Past months
iii ii Milestones: Past 12 months ti Challenger INVESTMENT FENCES Z Investment in Xenome Proteome Systems/IBM alliance Early exercise of Proteome Systems options Xenome collaborations — Cytopia, lonix, Icagen Investment in Biocomm Proteome Systems/Cystic Fibrosis Foundation alliance Alchemia/Euroscr
Slide 18: Relative Performance
[|Challenger INVESTMENT HNICES Relative Performance ® Significantly outperforming NASDAQ Biotechnology Index since listing and since June 30 2001 Relative Performance Since Listing 120 100 80 5 60 40 PRTC (adjusted for options} NASDAQ Biotech Index 0 T T T T T T T T T , , T T T Aug 00 Oct00 DecOO Fe
Slide 19: Relative Performance
Challenger — INVESTMENT SERVICES ll Relati * Qutperforming comparable listed Australian companies | Relative Performance June 30 2001 - current 100 80 5 60 BTC em Viedica Me ircadian 0+ r T T T T T T T Jun 01 Aug 01 Oct 01 Dec 01 Feb 02 Apr 02 May 02 Jul 02 Sep 02
Slide 20: Relative Performance
ti Challenger Relative Performance Board has been closely following share-price performance In context with the market, performance has been in-line and in fact ahead of other comparable companies (Medica, Circadian) Capital management strategies always on the Board’s agenda Share buy-back has been
Slide 21: Relative Performance
Relative Performance ti Challenger — INVESTMENT PEMICES FINANCIAL: Share buy-backs provide a short-term stimulus only and rarely have long-term benefits Whilst the discount to NTA would appear large, as an investment fund seeking high returns the Board believes even greater returns can be achieved t
Slide 22: Outlook
Challenger — INVESTMENT PEMICES ti Outlook NM ® Depressed public markets and sentiment likely to continue for some time ® Many opportunities now apparent |" Due diligence discipline maintained ® Cheap does not mean a good investment ® Syndicated investments now standard w Share risk « Leverage netwo
Slide 23: Outlook
MV Outlook ti Challenger INVESTMENT Sednual a Due diligence continuing on two projects currently Expect at least three new investments over next 12 months Some follow on investments in existing companies 75-80% invested by end of 2003 Prospect of two IPO’s as soon as market conditions allow * Board
Slide 24: Summary
MV ti Challenger Summary BTC is of sufficient size to be an important player in the market Sufficient funds available to build a diversified portfolio of projects Deal flow has been very strong and truly national Disciplined approach ensuring only high quality opportunities are included in the portf
Slide 25: Background on Investments
ti Challenger ANVESTMENT SERMICES Me i Mae
Slide 26: Investments: Proteome Systems
MV ti Challenger - | INEST MIEN SERVICES Investments Pvt re eo Proteome Systems Lid (www.proteomesystems.com) ® Sydney based integrated proteomics company ® Staff are amongst the world’s best in the field Excellent corporate and research collaborations ® BM, Shimadzu, Sigma, Thermo-Finnigan, Charles
Slide 27: Investments: Pacific Knowledge Systems
ti Challenger | INVESTMENT PEMICES Investments rein handel dom Pacific Knowledge Systems (www.pks.com.au) ' Sydney based supplier of software to pathology industry LabWizard product in use at several sites Product helps de-bottleneck processing of pathology results assisting in high volume throughpu
Slide 28: Investments: Alchemia
MV Challenger INVESTMENT SERIES POSES OR IESG ill Investments Pi dl fon Alchemia (www.alchemia.com.au) ® Brisbane based specialist in the synthesis and manipulation of carbohydrates Combinatorial chemistry libraries, lead therapeutic compounds ® Very strong patent position /* Has a major research an
Slide 29: Investments: X-Ray Technologies
iii ii ill ll Investments rn rr ton X-Ray Tech nologies (www.xrt.com.au) Challenger . INVESTMENT PEMICES i Melbourne based specialist in high resolution imaging techniques using X-Rays S$pin-out from CSIRO Brings together world leaders in the field ® Have published (front cover) in prestigious NATUR
Slide 30: Investments: Xenome
MV t ll Challenger - / | INVEST MIENT SERVICES ey Investments so Xenorme (www.xenome.com.au) Brisbane based drug discovery company World leader in the study of venoms as potential drugs Strong genomics and protein synthesis technology platforms Growing pipeline of drug candidates 50% entitlement to
Slide 31: Investments: Biocomm
MV ill I Investments rang Harel endo Biocomm (www.biocomm.com.au) Challenger INVESTMENT PEMICES ® Melbourne based technology commercialisation company ® Outstanding group of research institute members comprising some of Australia’s leading centres ® Focus is on identifying attractive technologies an
BioTech Capital — Investor Presentation (November 2002) on 6ix