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Next Edge CIA Disciplined Growth Portfolio — Next Edge Biotech and Life Sciences Opportunities Fund — Investor Presentation (May 2021)
29 slides from Next Edge CIA Disciplined Growth Portfolio's investor presentation, May 2021
Slide 1: Next Edge Biotech and Life Sciences Opportunities Fund
Next Edge Biotech and Life Sciences Opportunities Fund May 2021
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: Access to what's next
We are 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 approaches we discover may not be well known, but we believe they pr
Slide 5: Next Edge Capital Corp.
Next Edge Capital Corp. Formed in July 2006 as Man Investments Canada Corp. and spun out via a management buyout in June 2014 and renamed to Next Edge Capital Corp. Registered as an Exempt Market Dealer, Portfolio Manager and Investment Fund Manager.* Management team responsible for raising over CDN
Slide 6: Next Edge Biotech and Life Sciences Opportunities Fund
Next Edge Biotech and Life Sciences Opportunities Fund 1. 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 o
Slide 7: Why the 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. Eden’s broad experience includes over twenty-five years as a Portfolio and Hedge Fund Mone
Slide 8: Why the Fund? Experienced Team
Why the Next Edge Biotech and Life Sciences Opportunities Fund? Experienced Team Managing the Fund requires a unique combination of specialized skills: Proven knowledge, Hedging skills to navigate relationships and intense volatility and Volatility to be turned experience investing in frequent binar
Slide 9: 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, Globe & Mail, Streetwise, Cantech and other publications. BNN BLOOMBERG BNN BLOOM
Slide 10: 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 11: 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 Predominate f
Slide 12: Indication
TREATMENT INDICATION BY FUND PORTFOLIO WEIGHT % Alzheimers 21 Oncology 14 Gene Therapy 11 Covid 11 CNS 10 Gene Editing 7 Indication Anti-Viral 7 Rare Diseases 6 Tools 5 Cash 4 Short Position 2 Other 2 0 5 10 15 20 25 Weight, % Source: Next Edge Capital Corp. as of June 11, 2021 12
Slide 13: Moore's Law of Biotech
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 MOORE'S LAW OF BIOTECH: Base-pair Cost of Sequencing Human Genomea 3 Billion Base-pair Human Geno
Slide 14: New tools are fueling a wave of innovation
The Case for Biotech and Life Sciences - Why now? New tools are fueling a wave of innovation and accelerated discoveries. A confluence of breakthroughs in biological science, with the development of computing, automation, and Al, are fueling a new wave of innovation. Source: McKinsey & Company as of
Slide 15: Accelerated Discoveries and Commercialization
The Case for Biotech and Life Sciences - Why now? Accelerated Discoveries and Commercialization - The New Normal March 13, 2020 Five-point plan to battle May 5, 2020 COVID-19 Pfizer and BioNTech dose first July 1, 2020 participants in the USA as part of global COVID-19 mRNA vaccine Pfizer and BioNTe
Slide 16: Nasdaq Biotech Index
The Case for Biotech and Life Sciences - Why now? NASADAQ BIOTECH INDEX 1993 NASADAQ - 2021 BIOTECH 1993 - 2021 INDEX 8000 5 YEARS 4000 2000 1000 6 YEARS 500 3 YEARS 250 125 94 94 95 95 96 96 97 98 98 99 99 00 01 01 02 02 03 03 04 05 05 06 06 07 08 08 09 09 10 10 11 12 12 13 13 14 15 15 16 16 17 17
Slide 17: Breakout: Prelude to a New Bull Market?
The Case for Biotech and Life Sciences - Why now? 5 YEAR BREAKOUT: PRELUDE TO A NEW BULL MARKET? NASDAQ BIOTECH INDEX: JANUARY 2014 - JANUARY 2021 Deja Vu: It’s only just begun 4000 2000 2014 2015 2016 2017 2018 2019 2020 2021 Source: Bloomberg Data as of June 13, 2020, Concept: Next Edge Capital Co
Slide 18: 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 19: Biotech is Undervalued
The Case for Biotech and Life Sciences - Why now? Biotech is Undervalued RELATIVE PRICE-EARNINGS RATIO: S&P BIOTECH P-E to S&P P-E 1992 - 2019 3.0 RATIO OF BIOTECH P-E to S&P P-E 2.5 2.0 1.5 1.0 0.5 0.0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 @Edenrahim YE
Slide 20: Benefits from M&A activity in Biotech
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 21: Benefits from M&A activity in Biotech
The Case for Biotech and Life Sciences - Why now? Benefits from M&A activity in Biotech US and European Biopharma Company Trade Sales (Total Transaction Volumes) Completed and in 2019 announced trade sales of public and private US and European biopharma companies, not including asset deals or purcha
Slide 22: Significant premiums on acquisition targets
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% Immun
Slide 23: Diversification Benefits – Biotech
The Case for Biotech and Life Sciences - Why now? Diversification Benefits – Biotech Sector has shown to have low correlation to other indices and other broadly owned sectors by Canadian investors. Correlation of the NASDAQ Biotechnology Index (“NBI”) to Various Equity Indices Over the Past 20 years
Slide 24: A Virtuous Investment – Research into Future Breakthroughs
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” 24
Slide 25: A Virtuous Investment – Progress is being made
The Case for Biotech and Life Sciences - Why now? A Virtuous Investment – Progress is being made. Percentage Changes in Selected Causes of Death (All Ages) Between 2000 and 2015 Source: Alzheimer’s Association - 2018 Alzheimer’s Disease Facts & Figures 25
Slide 26: 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 27: Fund Performance
Fund Performance The Fund had a trading start date of December 21, 2020. As such, only monthly performance returns will be shown for the first year. HISTORICAL PERFORMANCE1 Class A JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD 2021 21.23% 0.97% -4.14% -4.14% -6.83% - - - - - - - N/A 2020 - - -
Slide 28: Fund Details
Fund Details Manager Next Edge Capital Corp. Fund Type Alternative Mutual Fund Launch Date December 2020 Registered Plan Status Eligible Minimum Initial Investment $5,000 Minimum Subsequent Investment $1,000 Redemptions/Purchases Daily Class A 1% (1% Servicing Fee payable out of the Management Fee)
Slide 29: nextedgecapital.com
nextedgecapital.com linkedin.com/company/next-edge-capital twitter.com/NextEdgeCapital 1 Toronto Street, Suite 200, Toronto, ON M5C 2V6 416.775.3600 Toll Free: 1.877.860.1080 info@nextedgecapital.com
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