BTC Health Ltd Registered · ASX:BTC
BTC Health Ltd Registered — BioTech Capital — Shareholder Meeting (November 2005)
50 slides from BTC Health Ltd Registered's shareholder meeting presentation, Nov 28, 2005
Slide 1: Fifth Annual General Meeting
Fifth Annual General Meeting 28 November 2005, Sydney
Slide 2: Outline
Outline = Overview * Our people and networks *» Valuation policy » Sector sentiment * Qur portfolio » Case studies * Outlook *» Conclusion
Slide 3: BioTech Capital ("BTC")
BioTech Capital (“BTC”) “BioTech Capital is an active, specialist fund focused on life sciences, that invests in Australian companies seeking to develop and commercialise innovative science and technology“
Slide 4: BTC
BIC » Listed biotechnology private equity fund « Managed by Titan Bioventures Management » w$45m fund — one of the largest and most active dedicated life-science focused funds in Australia * 10 investments (82% invested), $8m cash « Investment company not operating company - no cash burn » Tax-free
Slide 5: Board of Directors
Board of Directors 4 Blend of investment banking, corporate finance, management consulting, media/communications, scientific and funds management networks ~ Kathryn Greiner (Chairman) ~ appointed Oct 05 ~ Harry Karelis (Managing Director) ~ Bill Ireland (Independent) ~ retiring at this meeting ~ Ali
Slide 6: 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 oppor
Slide 7: Management company
©titan BIOVENTURES Management company » BTC currently contracts Titan Bioventures to act as Investment Manager * Titan is well connected globally in the life science sector and has a reputation for being a very active Manager » Titan has established a UK presence, co-located with one of the UK’s lea
Slide 8: Investment Philosophy
Investment Philosophy * Diversification across stage of development and sector » Adopt private equity techniques * Negotiate favourable terms Anti-dilutes Board seat Preferred returns » Syndications * Take an active stance in assisting the company » Placements in listed stocks limited to 4.9% maximu
Slide 9: 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 10: Sector sentiment
Sector sentiment @ Sustained positive sentiment and significant returns in resources sector continues to distract traditional biotech investors However, signs of life now emerging Solid, positive news flow improving sentiment = Nobel Prize for Medicine » CSL Cancer Vaccine » Flu and Relenza sales >
Slide 11: Resources sector very strong
INMEST TO CBEATE Resources sector very strong BHP 0 oy 20 ida cad acilasluc ia bal Woodside Petroleum Orchard Petroleum 000 oe BOE BO PUM ., 3600 200 0 Ieee ° q se 00. x00. 0 7500 2200 0 2000 2000 .. 2 4500 100 4000 1000. 18M a WON : tN ~ SM | : Ey imi i sad uated kicks SA TOMREART Source: www.stock
Slide 12: Biotech improving
ab INMEST TO CBEATE Biotech improving CSL Cochlear aol an qe moe 4000 4000 me 3500 lca ADD, 2500 2000 lOO, 4000. 1500 15h 8H _ 10t4 aM ; ae 2H | 7 saan ate Mla thd i feria Gera te ewer ules dusts msenonuicroe Biota Alchemia jm 204 140. 190 100. Source: www.stocknessmonster.com 12
Slide 13: Relative Performance
Relative Performance Relative Performance Since Listing 120 « Circadian Aug Nov Jan Apr Jun Sep Nov Feb Apr Jul Sep Dec Feb May Jul Oct Dec Mar May Aug Oct Jan Mar Jun Aug Nov 00 60 O61 Of O1 61 01 02 02 02 O02 02 03 03 03 08 03 04 04 04 O04 05 05 05 OS 05 13
Slide 14: Relative Performance
aka weet INMEST TO CBEATE Relative Performance Relative Performance Since Listing 160 140 120 106 BTC 20 +j =m ASX Healthcare Index NASDAQ Biotech Index 0 T T T T T T T T T T T T T T T T T T T T T T T T T Aug Nov Jan Apr Jun Sep Nov Feb Apr Jul Sep Dec Feb May Jul Oct Dec Mar May Aug Oct Jan Mar Jun
Slide 15: Rising yellow line implies increasing discount to NTA
15 Rising yellow line implies increasing discount to NTA Discount to NTA over time _ ee
Slide 16: Portfolio companies
Portfolio companies Continence Sa BIOCOMM CONTROL SYSTEMS PHYLOGICA & PRIMABioMed KAT The Sharper Edge In Imaging sta rpharma 16
Slide 17: BTC Portfolio (at market Oct 2005)
BTC Portfol iO (at market 31 Oct 2005) Cash Clinical Cell Culture 16% 17% Prima Biomed 2% Starpharma 4% XRT Pacific Ki ledge Syst acific Knowledge Systems 13% 5% Biocomm 7% Phylogica 9% Alchemia 9% Continence Control Systems 9% Stem Cell Sciences 8% 17
Slide 18: Our Portfolio
Our Portfolio Alchemia - proprietary chemistry technology to produce novel therapeutics Biocomm - provides 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 Systems
Slide 19: Our Portfolio
Our Portfolio » Phylogica — peptide-based therapeutics * Prima Biomed — portfolio of oncology technologies » Starpharma — nanotech leader exploiting dendrimer technology platform » Stem Cell Sciences - regenerative medicine, drug screening and therapeutics * XRT- high resolution imaging techniques
Slide 20: A busy year
A busy year @ @ @ Lisa McIntyre appointed to the Board Proteome Systems lists on ASX Investment in Prima Biomed Disposal of Xenome holding Continence Control Systems awarded R&D START Grant Investment in Phylogica PKS wins tender and expands product lines 20
Slide 21: A busy year
A busy year @ @ Phylogica lists on ASX XRT signs major collaboration and license agreement XRT signs technology license agreement with Gatan Stem Cell Sciences lists in UK Continence Control Systems commences patient recruitment for first human implants 21
Slide 22: A busy year
A busy year @ Stem Cell Sciences - breakthrough neural stem cell technology XRT secures new investors from UK Stem Cell Sciences signs licence deal with Deltagen AEGIS publishes comprehensive report on BTC Starpharma awarded US$20m Grant from NIH Prima sells inflammation program Stem Cell Sciences e
Slide 23: A busy year
A busy year @ # Kathryn Greiner appointed Chairman Prima enters into malaria collaboration with Walter Reed Army Hospital (USA) Phylogica awarded $2.3m Commercial Ready Grant Stem Cell Sciences announces licencing arrangement with Lexicon Genetics Share buyback announced Stem Cell Sciences secures s
Slide 24: Selected Case Studies
Selected Case Studies « Continence Control Systems « Phylogica » Stem Cell Sciences 24
Slide 25: Continence Control Systems
Continence Control Systems *« Medical device spin-off from Cochlear » Focus on severe urinary incontinence *» “Black box” controller connected to own muscle * First human implants commenced « >US$1 billion market « Tremendous upside for BTC if successful 25
Slide 26: Neosphincter created using smooth muscle
. Neosphincter created using smooth muscle obtained from the same patient © . Stimulation of neosphincter maintains urine in the bladder . Stimulation temporarily’ stopped to allow urine flow 26
Slide 27: Phylogica
Phylogica @ Protein therapeutics focus targeting inflammation pathways (asthma, arthritis, stroke etc) Phylomers™ - “Beyond Antibodies” Novel, protected IP - ICHR, Fox Chase Growing therapeutic pipeline Very positive stroke results Recently awarded major Federal government grant 27
Slide 28: Phylogica
Phylogica DISEASE INTERACTION =~ pyscovEny 4 oe DISEASE INTERACTION 28
Slide 29: Stem Cell Sciences
Stem Cell Sciences World leader in cell engineering Strong IP position Recently listed on UK AIM market Four core activities: = Fee for service — cell-based assay systems * — Licensing of intellectual property = Cell culture media and reagents = Cell therapy Recent string of revenue generating deals
Slide 30: Stem Cell Sciences
Stem Cell Sciences * Cell-based drug discovery ew Cell-based Blois eels red bleod a inerapies — = 30
Slide 31: Outlook
Outlook « Listings/Exits » Potential for listing 1-2 of our unlisted investees over next 12 months » Opportunity to exit listed holdings will be evaluated as opportunities arise « New Investments = Continuously evaluating new opportunities with current areas of interest in therapeutics and diagnosti
Slide 32: Challenges
Challenges @ e @ @ 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 32
Slide 33: On Market Share Buyback
On Market Share Buyback @ Recently announced an on-market share buyback to acquire up to 4,354,905 ordinary shares (4.9% of issued capital) Driven by persistent, excessive discount to published NTA despite several positive valuation drivers Will not compromise our ability to fund existing and new in
Slide 34: 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 35: Background Information
INMEST TO CBEATE Background Information 35
Slide 36: NTA Breakdown (as at October 2005)
const I NTA Breakdown (as at 31 October 2005) 31 October 05 ost Price @ atio ‘Company ASX Code Cost Price Gents per BG Current Value" Cents per BTC share lListeo secunimes Jf Ahemia ome 2,000,000 2240 8 8,968,688 4.480 2 Chinicat Cek Culture coe | 3,094,10¢ adBe 8 8,016,084 ave Is Phylogice pro | 2,
Slide 37: Deal Flow
Deal Flow 370 Due diligence statistics Total deals seen 25 12 2 | | = Due diligence Concluded Exits commenced investments 37
Slide 38: Deal Flow
INMEST TO CBEATE Deal Flow Genomics Proteomics Informatics Enabling reniog—_ ~~ Agricultural : Discovery Other aman latform Technology Diagnostic Medical Device 38
Slide 39: Capital Structure
Capital Structure ee Ordinary shares (BTC): » §89,354,905 Listed 10 Oct 2006 $0.55 options (BTCOA): * 44,677,419 Substantial shareholders (as at 26 September 2005): » Select Asset Management: 19.2% * Top 20 hold 32.4% 4,937 shareholders 39
Slide 40: 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 Achieving all technic
Slide 41: Biocomm
Biocomm * Technology commercialisation company « [Initially Victorian focused with 14 member Institutes * Qperating costs covered by Victorian State Government contract * Strong links with international players « Provides seed stage deal flow » Structure minimises downside to BTC » Three investments
Slide 42: Clinical Cell Culture
Clinical Cell Culture @ Developed and refined a series of autologous skin replacement products (CellSpray, ReCell) Applications in burns and plastic surgery Skin cells applied in shorter time period than competing products Reduced scarring, reduced time in hospital Uses patients own cells eliminatin
Slide 43: Continence Control Systems
Continence Control Systems @ @ @ Medical device company Focused on severe urinary incontinence Strong relationship with Cochlear Very promising results to date Very large market Human implants underway 43
Slide 44: Pacific Knowledge Systems
Pacific Knowledge Systems * Informatics platform technology * Labwizard — software tool for pathology labs = Customises and sepreteemy sme adds value to the pariouoey nEGUEsT . aa ’ ae processing of anon | [mew] pathology results ee UNVALIOATED RESULTS » Other applications identified broadening prod
Slide 45: Phylogica
Phylogica @ @ e Peptide based therapeutics Next generation antibody-like therapies Secure intellectual property position Anti-inflammatory focus Growing therapeutic pipeline Recently awarded $2.3m Commercial Ready Grant 45
Slide 46: Prima Biomed
Prima Biomed * Portfolio of immunology and cancer immunotherapy technologies derived from Austin Research Institute = Re-focusing towards oncology » Various technologies being assessed in a variety of fields * Ovarian Cancer (Biomira) * Malaria (Walter Reed Army Hospital) » BTC invested ahead of a p
Slide 47: Starpharma
Starpharma @ e @ 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 Insti
Slide 48: 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 re
Slide 49: 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 — sales, licensing, partnering occurring now Re-focused growth strategy with a UK
Slide 50: Portfolio companies
Portfolio companies Continence Sa BIOCOMM CONTROL SYSTEMS PHYLOGICA & PRIMABioMed KAT The Sharper Edge In Imaging sta rpharma 50
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