BTC Health Ltd Registered · ASX:BTC
BTC Health Ltd Registered — BioTech Capital — Shareholder Meeting (November 2004)
49 slides from BTC Health Ltd Registered's shareholder meeting presentation, Nov 22, 2004
Slide 1: BioTech Capital Limited Annual General Meeting
aa ee BioTech Capital Limited Annual General Meeting Year ended 30 June 2004 y ac n % 4 bn Mita Winns COPE AL Saas Managed by: titan BIOVENTURES November 2004 ,
Slide 2: Outline
Outline « What is BioTech Capital? *« Year in review « Portfolio companies « Financial summary * Current focus « Next 12 months « Why invest in BioTech Capital? * Portfolio Companies
Slide 3: BioTech Capital ("BTC")
BioTech Capital (“BTC”) A focused investment vehicle adopting private equity investment techniques providing access to a diversified portfolio of Australia’s leading life-science companies
Slide 4: BTC
BIC « Listed biotechnology private equity fund « Managed by Titan Bioventures Management « »~$45m fund —- one of the largest life science focused funds in Australia « 10 investments (75% invested), $10m cash « Investment company not operating company - no cash burn « Tax-free returns to shareholders
Slide 5: Portfolio companies
Portfolio companies starpharma \ proteome » SYS tems ay) integrated prteome technology ae CONTROL SYSTEMS Biopharmaceutical “A KRT Discovery — BIOCOMM The Sharper Edge In Imaging xendgdme
Slide 6: Year in review
Year in review @ @ @ @ @ @ A busy year..... Xenome successfully progresses clinical trials Investment in Stem Cell Sciences (SCS) Relocation of SCS to Edinburgh Investment in Clinical Cell Culture (C3) Bonus options issue to BTC shareholders C3 appoints European partner Xenome secures $3.2m START Gr
Slide 7: Year in review
Year in review « Alchemia announces IPO and floats on ASX « Challenger disposes of management rights to BTC « Titan Bioventures appointed new manager « Investment in Starpharma « XRT sells unit to prestigious Lawrence Livermore National Labs in USA « Xenome files NDA with US FDA
Slide 8: Year in review
Year in review « XRT embarks on UK re-location strategy « Investment in Continence Control Systems « Pacific Knowledge Systems expands internationally securing reference sites in The Netherlands « Xenome commences human trials « Proteome Systems lists on ASX « Biocomm completes third investment (Cry
Slide 9: Year in review
Year in review « Continence Control Systems commences animal trials « Pacific Knowledge Systems successfully expands product range and secures several new sites « Alchemia announces significant anti-microbial activity from a new class of antibiotics # Investment in Prima Biomed
Slide 10: Our Portfolio
Our Portfolio Alchemia — Proprietary chemistry technology to produce novel therapeutics « Biocomm - Gives BTC access to early stage investment opportunities (Cryptopharma, CNS Bio, Hatchtech) « (C3 - World-leading skin technology for burns victims and plastic surgery markets » Continence Control Sys
Slide 11: Our Portfolio
Our Portfolio @ & Proteome Systems —- Integrated proteomics hardware and software Starpharma — nanotech leader exploiting dendrimer technology platform Stem Cell Sciences - Regenerative medicine, drug screening and therapeutics Xenome — Highly specific, potent new pharmaceuticals based on substances
Slide 12: BTC Portfolio (at market Oct 2004)
CA IUVIST TO CREATE BTC Portfolio (at market 31 Oct 2004) Cash (net of tax) 20.9% Proteome Systems 2.6% Continence Contr! Systems 45% Starpharma 4.8% Pacific Knowledge Systems 8.0% Aichemia 5.0% oy Stem Celi Sciences 6.8%
Slide 13: Relative Performance Since Listing
EAE iuvisy yo cueare Relative Performance Relative Performance Since Listing 20 “=—Cytopia/Medica ecw Circadian 0 T T 1 1 1 1 1 1 T T T T T 1 1 T T T T T T T T T T T T PDP PD SP VB ih DD Hh Hh Hd DD DM HM HP PP HF PKK KKK LPF PHA FF FPF PD GH GHIA YH YI SF PO CPPS Se Fo YO ODO FS YS SS > SP SF oC SS
Slide 14: Relative Performance Since Listing
ME tives rocneare Relative Performance Relative Performance Since Listing 20 5 ‘ASX Heaithcare index IASDAQ Biotech index 0 T SF LS ot ot ot S xy = & < SSS SM sh & OS & as & © PF * oe & Ss a FPF PF WH BWP FP WP F wr HF F HF PFW FW Ww yvF wr oH 14
Slide 15: NTA Breakdown (as at October 2004)
NTA Brea kd own (as at 31 October 2004) 31 October 04 ost P @ o Company Cost Price Cents per share Current Value" Cents per share LISTED SECURITIES Hc $ 3,094,104 3.460 $ 9,971,262 414166 C3 Options $ . 8.00c $ 161,180 0.17¢ 2 Starpharma $ 2,520,000 2.82¢ $ 2,010,619 2.280 Starpharma Options $ . 0.0
Slide 16: Valuation (as at October 2004)
Va | uation (as at 31 October 2004) Current Share Price 36.50c Represented by: Cash (net of tax) 10.32c Listed securities* 17.35c TOTAL CASH & LISTEDS 27.68C * Listed securities are after discounts of 5-20% applied Implied value for unlisted portfolio 8.82¢c 16
Slide 17: Unlisted securities: converting preference shares with protections
All unlisted securities are some form of converting preference share with various protection mechanisms (except for PKS - ordinary shares). Examples: *» Minimum IRR upon conversion » Liquidation preferences * Anti-dilution mechanisms * Drag/tag along rights *» Redemption rights 59.6% of XRT 26.1% of
Slide 18: Discount to NTA over time
Slide 19: Deal Flow
Deal Flow Due diligence statistics 302 Total deals seen 24 Due diligence commenced 11 Concluded investments
Slide 20: Deal Flow
ME tives rocneare Deal Flow . Proteomics Genomics Other informatics Medical Device inabling Technology Agricultural Platform Technology Diagnostic Therapeutic 20
Slide 21: Current focus
Current focus « Listings/Exits » Several unlisted investees could list in 2005 including XRT and potentially Continence Control Systems » Opportunity to exit listed holdings will be evaluated as opportunities arise « New Investments * Continuously evaluating new opportunities with current areas of i
Slide 22: Next months
Next 12 months « Term sheet signed for a $2m investment (~28% stake) in a very promising drug discovery and development company as part of a pre-IPO funding * Likely to offer BTC shareholders opportunity to invest at IPO early next year « Still subject to finalising due diligence expected to be comp
Slide 23: Next months
Next 12 months @ Successful animal trials for Continence Control Systems (CCS) Commencement of human trials for CCS Positive news from Starpharma related to its therapeutic programs as well as US-subsidiary Dendritic Nanotechnologies Regulatory approvals in Europe and possibly USA and Japan from Cli
Slide 24: Next months
Next 12 months « Continued expansion of PKS into offshore markets driving revenue and profit growth « Potential exit from listed exposures as opportunities arise « Subject to above combination of share buyback and/or dividend Seek to increase institutional shareholding base in BTC 24
Slide 25: Challenges
Challenges @ Communicating a broad and complex story Low visibility of unlisted companies High visibility of listed companies Continued strong performance of Top 100 market Positive sentiment towards resources sector means “hot”money diverted away from biotech Results in opportunities 25
Slide 26: Board of Directors
Board of Directors « Blend of investment banking, corporate finance, management consulting, scientific and funds management networks ~ Bill Ireland (Independent Chairman) ~ Harry Karelis (Managing Director) ~ Alastair Davidson (Independent) ~ Dr Lisa McIntyre (Independent) ~ Professor Tony Basten (I
Slide 27: Capital management
Capital management * Continue with the current policy of rewarding shareholders through a combination of share buyback and/or dividends depending on prevailing circumstances « To be funded from the proceeds of realised gains « Always ensure sufficient cash resources to maintain investment flexibilit
Slide 28: Why invest in BTC?
Why invest in BTC? « Diversified portfolio in terms of stage of development and sector « Access to expertise and networks of leading scientists when assessing investment opportunities * Retail investors get access to unlisted Australian biotech companies « Trading at a significant discount to underl
Slide 29: Portfolio companies
>: Be nana biote: ect CAPITS 1, etnremrarereses Portfolio companies 29
Slide 30: Alchemia
Alchemia @ Specialists in synthesis and manipulation of carbohydrates (VAST technology) Novel combinatorial chemistry libraries Lead compound can act as generic of heparin Licensing discussions with various pharma/biotech companies Novel anti-bacterial compound next in pipeline 30
Slide 31: Biocomm
Biocomm « Technology commercialisation company « Initially Victorian focused with 14 member Institutes « Operating costs covered by Victorian State Government contract * Strong links with international players « Provides seed stage deal flow to BTC « Structure minimises downside « Co- Investors: Mac
Slide 32: Clinical Cell Culture
Clinical Cell Culture @ Developed and refined a series of autologous skin replacement products (CellSpray, ReCell) Applications in burns and plastic & reconstructive surgery Skin cells applied in shorter time period than competing products Uses patients own cells eliminating immunorejection issues R
Slide 33: Continence Control Systems
¢ aha biotech cl Sowche B st Continence Control Systems @ @ @ @ Medical device company Focused on severe urinary incontinence Strong relationship with Cochlear Very promising results to date Very large market Successful large animal trials will see human implants commence 2HO5 33
Slide 34: Pacific Knowledge Systems
Pacific Knowledge Systems « Informatics platform technology Labwizard - software tool for pathology labs S « Customises and adds value to the pasno.oey RecuEsr . a t ~~. processing of aoc | [mee] [ee pathology results ee eae UNVALIDATED RESULTS S Other applications identified broadening product rang
Slide 35: Proteome Systems
Proteome Systems @ Developers of integrated protein science technologies that speed discovery Equipment reduces cost, increases accuracy Allows isolation and identification of low abundance proteins Discovery and diagnostic programs which leverage off these platforms 35
Slide 36: Starpharma
Starpharma @ @ @ World leader in nanomedicine Exploiting unique characteristics of dendrimers Diverse applications * Therapeutics « Drug delivery * Materials science » Surface coatings « Energy storage Major shareholder in US-based Dendritic Nanotechnologies * Industry partner in MIT-managed Institu
Slide 37: Stem Cell Sciences
Stem Cell Sciences « Technologies providing stem cells for: « Discovery and development of new drugs # Future application in human cell-based gene and tissue therapies « Immediate revenues from drug assays « Medium term revenues from discovery of novel growth factors * Cell therapies — long term res
Slide 38: Xenome
xenome @ World leader in study of venoms as potential drugs Growing pipeline of potential drugs Xen 2174 « painkiller that could replace morphine * successfully completed preclinical trials # IND approved by FDA * Clinical studies about to commence 50% entitlement to income received from AM336 - AMR
Slide 39: XRT
XRT « High resolution imaging techniques using X-rays * Platform technology with multiple applications * Life sciences, non-destructive industrial testing, diamond inspection tools « At commercialisation stage of development * Recently commissioned a unit at prestigious Lawrence Livermore National L
Slide 40: Portfolio companies
Portfolio companies starpharma \ proteome » SYS tems ay) integrated prteome technology ae CONTROL SYSTEMS Biopharmaceutical “A KRT Discovery — BIOCOMM The Sharper Edge In Imaging xendgdme 40
Slide 41: Supporting Slides
>: yp nana biote: ect CAPITA 1. Meierretcs Supporting Slides 41
Slide 42: Scientific Advisory Board
Scientific Advisory Board | *« 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) « Independent technical assessment of oppo
Slide 43: Investment Process
Investment Process PASS PASS PASS Scientifice and IP Due Diligence ® PASS Originating and generating incoming deal flow Log on deal flow sheet Preliminary Evaluation > REJECT Us Request and review additional information > REJECT Negotiate Term Sheet > REJECT u Complete Due Diligence > REJECT id MI C
Slide 44: Capital Structure
Capital Structure « Ordinary shares (BTC): » 89,354,905 * Listed 10 Oct 2006 $0.55 options (BTCOA): « 44,677,419 « Substantial shareholders (as at June 30): = Select Asset Management: 11.1% (since increased to 13.3%) « Top 20 hold 26.4% « 5,574 shareholders 44
Slide 45: Management company
titan BIOVENTURES Management company « BTC currently contracts Titan Bioventures to act as Investment Manager « BTC EGM on April 8 approved the replacement of Challenger by Titan BioVentures as new Manager « Titan comprises the previous investment team from Challenger & new hires « Titan has establi
Slide 46: Investment Team
Investment Team Harry Karelis Science, business and finance qualifications. Funds management experience both local and international Andrew Blackmore Economics and finance qualifications. Technology and finance experience as an analyst and funds manager Geoff Pocock Science, law and finance qualific
Slide 47: Investment Philosophy
Investment Philosophy « Diversification across stage of development and sector * Adopt private equity techniques « Negotiate favourable terms Anti-dilutes O Board seat o Preferred returns « Syndications « Take an active stance in assisting the company « Placements in listed stocks limited to 4.9% ma
Slide 48: Valuation Policy
Valuation Policy « Broadly adopt AVCAL guidelines « Unlisted companies ® Carried at cost » Revalue down in the event of arms length third party investor setting a lower price or if there has been a permanent diminution in value « Board retains discretion in valuing upwards « Listed companies # Value
Slide 49: Portfolio companies
Portfolio companies starpharma \ proteome » SYS tems ay) integrated prteome technology ae CONTROL SYSTEMS Biopharmaceutical “A KRT Discovery — BIOCOMM The Sharper Edge In Imaging xendgdme 49
BioTech Capital — Shareholder Meeting (November 2004) on 6ix