Slide 1: Today's Commercial Reality
mesoblast the adult stern cell company Today’s Commercial Reality October 2005
Slide 2: Our vision - a world leader in the treatment of orthopedic disease
a pmesoblast the edllt steer cell company our vision — a world leader in the treatment of orthopedic disease Mesoblast's vision is to become a world leader in the definitive treatment of orthopedic conditions. Our immediate focus is to rapidly commercialise our unique and patented adult stem cell te
Slide 3: Quick notes
a pmesoblast the edllt steer cell company mesoblast quick notes * market cap circa $70m * circa 800 shareholders * atight register with building liquidity * strong board and management * cash at 30 June 2005 $15m (Angio $2.6m) * sufficient cash through to filing of INDs
Slide 4: Agenda
mesoblast the edllt steer cell company agenda * why mesoblast? — a strong business model * what have we got? - a platform stem cell technology * who are our competitors - we have a unique position * how do we protect our position? — a structured IP strategy * what's the market? — massive unmet deman
Slide 5: Why Mesoblast? A strong business model
a pmesoblast the edllt steer cell company why mesoblast? a strong business model: an adult stem cell platform technology substantial short term revenue opportunities potential for profits equal to pharmaceuticals low to no entry barriers to medical community
Slide 6: What have we got?
p mesoblast the edllt steer cell company what have we got?
Slide 7: Adult stem cells are multipotent
mesoblast the edllt steer cell company adult stem cells are multipotent Mesenchymal Orthopaedic pene Precursor Cell, MPC . MPC Isolated cartilage and Cultured — ak iecracn ‘ : Ey other cell types nt Non-immunogenic \ “ea at heart muscle Adult Stem Cell — Allogeneic use Cardiac Self-Renewing <r" musc
Slide 8: Our cells deliver an efficient high margin business
a pmesoblast the adult stent cxf conpasyy our cells deliver an efficient high margin business: a platform stem cell technology for multiple markets * safe * — universal donor * doses for hundreds/thousands * up to 1000 fold purer initial stem cell pool ~ greater potency * — multiple orthopaedic indi
Slide 9: What's the competitive landscape?
mesoblast the edllt steer cell company what's the competitive landscape? a unique position
Slide 10: Competitive landscape - adult stem cells
a pmesoblast the edllt steer cell company competitive landscape — acult stem cells other stem cell developments use: * — mixed populations of stern cells * whole tissue preparations * autologous (patients own) cells * separation devices * less efficient isolation and culture methods - density gradie
Slide 11: How do we protect our position?
a pmesoblast the edllt steer cell company how do we protect our position? a structured IP strategy
Slide 12: Strong intellectual property
a pmesoblast the edllt steer cell company strong intellectual property a broad based “barrier strategy” to protect our IP and to create a dominant market position * adult stem cell (mesenchymal precursor cell) “ownership” ~ efficient isolation —~ composition of matter * methods of expansion and diff
Slide 13: What's the market?
mesoblast the edllt steer cell company what's the market? massive unmet demand
Slide 14: Stem cells for regenerative medicine - a clear commercial driver
a pmesoblast the edtilt steer ce company stem cells for regenerative medicine — a clear commercial driver market characteristics * massive unmet needs * expanding patient population * increased quality of life at a lower cost * physicians seeking better/safer treatment regimes
Slide 15: Markets are demanding a generational improvement
a p mesoblast the edllt stern ext conpaacyy markets are demanding a generational improvement market drivers * current treatments focus on the two ends of the treatment spectrum: — symptom and pain control (pharma); and —- replacement (device) * current therapies in selected markets: — not curative;
Slide 16: Multiple near term partnership opportunities exist
a p mesoblast the edule stent cel! compasgy multiple near term partnership opportunities exist * commercial partners produce complementary FDA approved products cements/polymers vertebral cages biological stimulants fracture repair devices delivery matrices * catheters * major device companies * maj
Slide 17: Our markets are large unmet indications
a p mesoblast the edtilt steer cel? company our markets are large unmet indications ANNUAL ECONOMIC ANNUAL COST OF BURDEN MEDICAL CARE (USD BILLION) (USD BILLION) BONE FRACTURES USD13b USD 2.3b (materials only) CARTILAGE USD65b USD15b (OSTEOARTHRITIS) SPINAL USD100b USD 9b HEART FAILURE USD 254.8b U
Slide 18: What drives us?
mesoblast the edllt steer cell company what drives us? milestones, outcomes, global success
Slide 19: We're on track to deliver
mesoblast the edllt steer cell company we’re on track to deliver clinical protecol/ethics aes GMP process (allo) safetyitox(allo animals) a »- australian human triais ° arthopacdic (auto) « cardiovascular (auto) FOAAND filing * orthopaedic (allo) + cardiovascular (allo) IN aeerovalLS Wwiele | | 5 20
Slide 20: Significant progress since listing
a pmesoblast the edllt steer cell company significant progress since listing funds in place assembled strong delivery team expanded intellectual property rights acquired interest in Angioblast Systems Inc NNN FDA requirements for filling an IND v preparing protocols, SOPs & master files vy GMP manuf
Slide 21: Near term news flow and milestones
a p mesoblast the edllt steer cell company near term news flow and milestones * two australian pilot clinical trials — non-union fractures ~- Royal Melbourne Hospital ~ severe mulli-vessel coronary artery disease — John Hunter NSW * the potential for near term deals with device companies and big pha
Slide 22: Milestone driven, outcome focused
a pmesoblast the edllt steer cell company milestone driven outcome focused a business model that can provide early sharehoider returns ° substantial short term milestones . proprietary platiorm technology — long term protection . multiple applications that can deliver pharma range profit margins ° o
Slide 23: Mesoblast - the adult stem cell company
mesoblast the adult stern cell company Today’s commercial reality October 2005