Safeguard Scientifics Investor Day 2012

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Safeguard Scientifics, Inc. (NYSE:SFE), a holding company that builds value in growth-stage life sciences and technology companies, is hosting its 6th annual Investor Day 2012 on Tuesday, October 10, 2012 at The Yale Club of New York City.

Safeguard is a catalyst for business growth and value creation. We provide capital and operational support to emerging and growth-stage life sciences and technology companies.

Representatives from Safeguard will include: Peter J. Boni, President and CEO; Stephen T. Zarrilli, SVP and CFO; and James A. Datin, EVP and Managing Director. Partner company presentations include, in alphabetical order, AdvantEdge Healthcare Solutions, Bridgevine, Good Start Genetics, Lumesis, MediaMath, NuPathe (NASDAQ:PATH), PixelOptics and Putney. For the complete agenda, please visit www.safeguard.com/InvestorDay.com.

Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests

Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.

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Safeguard Scientifics Investor Day 2012

  1. 1. WELCOMEInvestor Day 2012
  2. 2. Forward Looking Statements Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation. NYSE:SFE
  3. 3. Investor Day 2012 NYSE:SFE
  4. 4. Survey NYSE:SFE • Expect to be Contacted Shortly • Your Participation is Critical • Findings will Assist Management in: • Understanding any Misperceptions within the Investment Community • Developing Strategies to Maximize Value and Communicate Effectively
  5. 5. Peter J. Boni President and CEO Investor Day 2012
  6. 6. The Safeguard Difference (NYSE:SFE) NYSE:SFE SIGNIFICANTLY UNDERVALUED
  7. 7. Why Own Safeguard? • Full Value Yet to be Realized • Ownership Stakes in Exciting Partner Companies • Top Performance of Proven Team • Financial Strength, Flexibility and Liquidity • Strong Alignment of Interests NYSE:SFE
  8. 8. Experienced Team NYSE:SFE
  9. 9. The Company We Keep NYSE:SFE
  10. 10. Safeguard Today NYSE:SFE
  11. 11. Safeguard Positioning NYSE:SFE
  12. 12. Go To Market Strategy > Growth Financing > Typically Deploy Up to $25M > Generally Primary Shareholder > Realize Value GROWTH DRIVERS CRITERIA • Maturity • Migration • Convergence • Compliance • Cost Containment • Management • Market • Model • Momentum • Moat NYSE:SFE
  13. 13. Attractive Sectors Represents % of Capital Deployed in Current Partner Companies as of June 30, 2012. NYSE:SFE
  14. 14. Recent Success Stories NYSE:SFE Acquired By Proceeds* Cash-on-Cash Return $38M 4x $138M 13x $41M 3x $208M** 3x * Includes amounts held in escrow as of June 30, 2012 which are deemed likely to be realized during 2012, if any, but not unearned milestones / earnouts, where applicable. ** Proceeds include $61M from sale of CLRT shares during Q3’09. *** Based on achievement of difficult earnout provisions. Return Potential Could Approach 8x*** Market Cap Increased 5x
  15. 15. Revenue Stages NYSE:SFE
  16. 16. Safeguard Partner Companies • 16 Partner Companies Today • 26 Board Seats Across 16 Companies • 15 Companies Generating Revenue • Deployed $176.7M in Current Partner Companies as of June 30, 2012 • Realized $643M Since January 2006 * Aggregate revenue guidance for 2012 and prior years, presented above, reflects revenue on a net basis. Revenue figures utilized for certain companies pertain to periods prior to Safeguard’s involvement with said companies and based solely on information provided to Safeguard by such companies. Safeguard reports the revenue of its equity method and cost method partner companies on a one-quarter lag basis. NYSE:SFE RANGE: $185M to $190M
  17. 17. Strategy for Growth • Build Value in Current Holdings • Realize Some Valuable Exits • Replenish The Holdings with Winners • Expand the Platform NYSE:SFE
  18. 18. Stephen T. Zarrilli SVP and CEO Investor Day 2012
  19. 19. Key Financial Fundamentals * At 6/30/12 ** At/Since 1/1/06 • Strength, Flexibility and Liquidity • Cash and Equivalents and Marketable Securities: ~$241M* • Realized $643M in Proceeds (Excluding Amounts held in Escrow)** • Deployed $327M in Safeguard Capital** • Tax Loss Carryforwards in Excess of $150M* • Strict Management of Operating Expenses • $0.85 Per Share on Annual Basis • Continued Expansion of Capital Under Management • Income NYSE:SFE
  20. 20. Cash Use 6/30/12 YTD (in millions) New Capital Deployments 12$ Follow-On Funding for Existing Holdings 7 Operating Expenses 10 Penn Mezzanine 2 31$ NYSE:SFE
  21. 21. Current Holdings Acquisition Year Ownership % Carrying Value* Cost Life Sciences Partner Companies: Alverix 2007 50% - 8.4 Good Start Genetics 2010 29% 6.2 10.5 Medivo 2011 30% 5.8 6.3 NovaSom 2011 30% 15.7 20.0 PixelOptics 2011 25% 13.4 27.1 Putney 2011 28% 9.0 10.0 NuPathe (Nasdaq:PATH) 2006 18% 10.9 18.3 TOTAL: 61.0 100.6 Technology Partner Companies: AdvantEdge Healthcare Solutions 2006 40% 8.1 15.3 Beyond.com 2007 38% 10.6 13.5 Bridgevine 2007 23% 6.5 10.0 DriveFactor 2011 24% 1.6 1.7 Hoopla Software 2011 25% 1.2 1.3 Lumesis 2012 32% 2.2 2.2 MediaMath 2009 22% 11.7 16.9 Spongecell 2012 23% 10.0 10.0 ThingWorx 2011 30% 3.1 5.0 TOTAL: 55.0 75.9 Total: Life Sciences + Technology 116.0$ 176.5$ ($ in millions) *As of 6/30/12 ** Figures above do not include amounts deployed relating to Penn Mezzanine since inception or amounts previously deployed in private equity funds. **** NYSE:SFE
  22. 22. • Purpose/Objective • Asset Diversification • Expansion of Capital Platform • Revenue/Fee Income Generation • Economic Attributes • 36% Ownership • Income • 8% Preferred Return • $30M to be Deployed • Rollover of Capital into Future Pools NYSE:SFE
  23. 23. Equity Incentive Compensation • Aligned with Shareholder Interests • Primarily Performance Based Vesting • Target Returns on Deployed Capital and Market Cap Thresholds NYSE:SFE
  24. 24. Questions & AnswersInvestor Day 2012
  25. 25. James A. Datin EVP and Managing Director Investor Day 2012
  26. 26. Bridgevine, Inc. NYSE:SFE Bridgevine is a leading performance based digital marketing company that has consolidated the fragmented digital media ecosystem through a proprietary up-sell and cross-sell optimization platform. • Migration from offline to online advertising • Acquires Customers for Internet, Phone, TV, Wireless and Entertainment • 75+ Marquee Advertisers Fully Integrated Into Bridgevine Platform • Partners include AT&T, Comcast, DirecTV, Amex, Dell, Intel and more! • Named to INC. 500|5000 Six Years in a Row • Highly Scalable Business Model • New CEO – J. Patrick (“JP”) Bewley $10.0M 23% AUG’07 CAPITAL DEPLOYED SFE STAKE INITIAL CAPITAL DEPLOYED
  27. 27. Questions & AnswersInvestor Day 2012
  28. 28. Cloud Based Research & Analysis Platform for the Municipal Fixed Income Market Safeguard Scientifics Investor Day Presentation October 9, 2012 Yale Club
  29. 29. Company  Age: • Founded 2010 • Youngest company in the Safeguard portfolio  Location: Stamford, CT  Team: • Founders: Gregg Bienstock, Ambac, Tim Stevens, Ambac • Board: Jim Ashton, Ex-CEO Sungard; Robin Wiessmann, MSRB Board & Ex-Treasurer State of PA; Philip Moyer, Ex CEO EDGAR Online, MD Safeguard  Funding: • $850,000 Invested by Co-Founders • $250,000 Seed Financing from Friends and Family • $2.2mm Series A from Safeguard + $300k others
  30. 30. Market  US Muni Market  $4.0 Trillion Market, 1.5mm CUSIPS, 54,000+ Issuers  30% Institutional: Portfolio & Risk Managers, Credit Analysts: estimate 6,000 as target  70% Retail: 275,000 Financial Advisors; estimate 63,000 as target  Opaque Market Facing Increasing Scrutiny and Regulation  State and Local Government Fiscal Reality  Unfunded Liabilities: $2 to $3 Trillion of Unfunded Pension and OPEB Liabilities  Stale Financials: 190 days from Fiscal Year Close and Financial Reporting  Insurance and Ratings: Decreased Reliance  Increased Regulatory Framework: Dodd Frank, MSRB and FINRA  Alternatives to Ratings  Required to Disclose to Investors Information “Reasonably Available”  Report Material Events Timely  Investors Chasing Yield  Limited Analytical Tools
  31. 31. Lumesis DIVER Platform  Parsed 1.5 million Muni Bonds by CUSIP and Geo-Locate to State, County, City and School District Level  Built Massive Cloud-Based Data Store  Integrated Nearly 200 Private and Public Data Sets  Housing, Employment, Education, Commerce, Disasters, Healthcare, Income, Pension, Population, Taxes and More  Users Securely Import Portfolios of Any Size  Sophisticated Analytical and Visualization Tools that Scale  Deep IP: Patents Pending
  32. 32. Two Products DIVER Analytics Target Users:  Credit Analysts  Portfolio and Risk Managers  Target Market:  Global Banks  Regional & Bankers’ Banks  Mutual Funds  Investment Advisory  Asset Managers  Insurance Companies (P&C, Life)  Bond Insurers  Hedge Funds DIVER Advisor Target Users:  Financial Advisors  Legal/Compliance  Credit Analysts Target Market:  Global Banks  Regional Banks & Broker/Dealers  Investment Advisory  Insurance (w/ Advisory Networks)
  33. 33.  Released: Sept 2010  Scalable Analytical and Visualization Tools for Risk/Portfolio Management  Analyze an Entire Portfolio or a Single CUSIP  Highlight and Manage Risks/Opportunities  Enhance Credit Research Capabilities  Compare to Benchmarks  Easily Upload Portfolios  Save Time and Money  Eliminates Time-Consuming Data-Mining and Preparation  Track Drivers of Municipal Revenues and Expenditures  Alerts and Monitoring  Pinpoint Issuers/Positions of Concern and Shape Portfolios  Integration with Leading Portfolio Management Tool  Business Model: Over $15,000/User/Annum DIVER Analytics
  34. 34. DIVER Analytics
  35. 35. DIVER Advisor  Released: October 2012  Compliance and Information Delivery Solution  Addresses Regulatory Requirements: • FINRA, MSRB, SEC and Internal Reporting Adherence • Dodd Frank/OCC Guideline Support  Generates Client Ready Report Identifying Risks and Characteristics of Every CUSIP • From 30 Minutes to 3 Seconds  Offers Communication Efficiencies  Dissemination of Research from Credit Analyst to FA  Serving: Financial Advisor and PWM Networks  Simple to Generate and Easy to Deliver to Client  Protects from Reputational Risk  Improves Client Service with Real-Time Information Business Model: Between $1,000-$2,500/User/Annum
  36. 36. DIVER Advisor
  37. 37. Product Pipeline  DIVER MBR:  “Easy” Button – CUSIP/Sector Based Bond Report  DIVER API:  Programmatically deliver DIVER Data to 3rd Parties  DIVER Issuer:  Assist Issuers in Analysis and Reporting
  38. 38. Growth Strategies (Use of Funds)  Building Sales & Marketing Team  Hired MD of Sales  Hired Part Time CMO  Adding Dedicated Customer Service  Undertaking Significant Branding Effort & New Web Presence  Expanding Development Team  Expanding Data Team  Expanding Strategic Alliances with Established Muni Market Tools Vendors
  39. 39. Financials/Metrics  Revenue Growth at >75% Over 2011  Client CAGR 75%+  Renewal Rate: 88%  Financial Data Company M&A Multiples - 3-5X Revenues  Goal: $15mm++ for 2014
  40. 40. Summary  Municipal Fixed Income Market  Underserved  Changed Dynamics  Increased Regulation  Lumesis  Early Stage Company  Providing Patent Pending, Cloud-Based Platform  Analytics and Visualization  Serving the Portfolio & Risk Managers, Analysts, Financial Advisors and Issuers
  41. 41. Cloud Based Research & Analytical Platform for the Municipal Fixed Income Market
  42. 42. Questions & AnswersInvestor Day 2012
  43. 43. AdvantEdge Healthcare Solutions October 2012
  44. 44. AHS CONFIDENTIAL INFORMATION – Do Not Distribute Enabling Healthcare Providers to Thrive AHS is a technology enabled provider of Revenue Cycle Management Services, Informatics, and Expertise that enables healthcare providers to maximize financial performance and eliminate compliance risks.
  45. 45. AHS CONFIDENTIAL INFORMATION – Do Not Distribute About AdvantEdge  AdvantEdge Healthcare Solutions  Top 10 medical billing, coding and practice management company  Over 675 employees in 8 regional offices in the US and 1 office in Bangalore, India  Collecting over $1.25B for its physician clients  Recognized industry leader - uniquely positioned  Clients are typically large medical group practices with a high propensity to outsource due to practice characteristics  Since 1966, AdvantEdge (and/or its acquired entities) has served some of the nation’s most respected healthcare institutions Hospital for Special Surgery North Shore-LIJ Health System Advocate Healthcare System Wellspan St. Barnabas Health System SUNY Downstate Med Center Erlanger Health Centers Partners Healthcare  The Company continues to enjoy outstanding growth opportunities  “Thoughtful” acquirer yielding 5 year CAGR of 41% in a consolidating market  Organic growth rate (annualized revenue of new sales closed) average of 19.8% annually over past 5 years  AdvantEdge has been recognized as one of the fastest growing companies by regional and national publications, such as INC magazine (4 years running) and NJBusiness (top 10 growth company in 2010)
  46. 46. AHS CONFIDENTIAL INFORMATION – Do Not Distribute Business Characteristics  Highly predictable recurring revenues and strong cash flow  Superior client retention  Significant Operating Leverage: Scalable platform based on proprietary technology and workflow  Effective buy-and-build strategy: Integrate, Migrate, Operate  Sales & marketing focus with aggressive organic growth strategy  Management Team has extensive industry, acquisition and integration experience
  47. 47. AHS CONFIDENTIAL INFORMATION – Do Not Distribute Market Leading Strategy Creating Value for Clients, Employees, and Stakeholders through: GROWTH EFFICIENCY ZERO CLIENT ATTRITION TECHNOLOGY INTEGRATION
  48. 48. AHS CONFIDENTIAL INFORMATION – Do Not Distribute AHS has a broad footprint across the US and Bangalore, India AHS Office AHS Client AHS Clients (Multiple/many clients) Geographic Presence
  49. 49. AHS CONFIDENTIAL INFORMATION – Do Not Distribute AdvantEdge Value Proposition The Problem Constant threat of reduced reimbursement rates Increasing complexity & regulatory requirements Technology and staff investments are expensive Attract & retain high-quality staff The AHS Solution  More Money, Faster  Compliance, Built-in  Business Intelligence and Reporting – Anytime/Anywhere  Client First™ Service
  50. 50. AHS CONFIDENTIAL INFORMATION – Do Not Distribute $4.00 $4.00 $3.30 $0.70 The market for the Company’s services is estimated at $4B - $8B Billing and Practice Management Service Market (Falcon Capital): $8.0B Total RCM Market (Wallingford Capital/HBMA, 2007): $4.7 B; top 10 billing cos.: $1.0B In-House: Practice Management Hospital Based MD RCM Office-based RCM AHS Target Market Target markets Large and growing market:  Physician expenditures increasing by 8% + / yr.  Increasing shift to outsourcing (RCM); currently less than 20% of total  Largest competitor has under 5% of total market Market Opportunity
  51. 51. AHS CONFIDENTIAL INFORMATION – Do Not Distribute Financial Performance  2009 Revenue and EBITDA growth of 116% and 125% respectively  2010 Revenue and EBITDA growth of 85% and 280% respectively  2011 Revenue and EBITDA growth of 41% and 67% respectively **EBITDA reflected throughout this report is adjusted to add back capital and acquisition related costs and Investor Group management fees
  52. 52. Questions & AnswersInvestor Day 2012
  53. 53. October 2012 Company Overview
  54. 54. MediaMath provides the technology to plan, execute, optimize and analyze marketing programs across all digital channels. Technology Results Team Strategy, Support and Vision “Empowering the new marketing professional” MediaMath: The New Marketing OS
  55. 55. Industry Leadership  Operating system for digital marketers  Over 1,000 clients and growing quickly  176 employees in 7 offices worldwide  Over 120% CAGR – Inc. 500 Fastest Growing  World-class support, services and training Technology Leadership  Delivers the complete ad tech stack  Largest access to supply  Highest quality infrastructure
  56. 56. © 2012 MediaMath, Inc. All rights reserved. Confidential. The Problem The ad tech landscape is getting more complex My vendors are slow to innovate Digital media usage is eclipsing offline and TV CMO’s under pressure to “figure out” digital Average CMO tenure is just 36 months Innovation at scale is difficult
  57. 57. © 2012 MediaMath, Inc. All rights reserved. Confidential. 2011 Advertising Spend in US Source: emarketer 2011, Forrester 2011
  58. 58. © 2012 MediaMath, Inc. All rights reserved. Confidential. 2011 Estimated Stats for Exchange Buying & RTB RTB MARKET: Grew from $0 in 2008 Source: emarketer, Forrester, AMG Industry Interviews
  59. 59. © 2012 MediaMath, Inc. All rights reserved. Confidential. New York Chicago San Francisco Boston Los Angeles International Footprint & Expansion = Current Office or Datacenter Washington = Region with Active Clients Hong Kong Berlin (JV)London Paris
  60. 60. © 2012 MediaMath, Inc. All rights reserved. Confidential. Forrester Ranks DSP’s: MediaMath is #1 “MediaMath is a great all-around choice for buyers in market for a DSP.” “Its large employee base and diverse, well- tenured management team also provide the necessary foundation for it to execute effectively on its strategic vision: to empower marketing professionals with a flexible, easy-to-use, multichannel platform.” “MediaMath boasts excellent algorithmic optimization capabilities (including a multifaceted view of the decisioning engine’s output), and its multichannel media and data access is both broad and deep.”
  61. 61. © 2012 MediaMath, Inc. All rights reserved. Confidential. How It Works: Simple Intuitive Interface
  62. 62. 1st & 3rd Party Data Ad Verification Privacy Compliance Ad Serving Supply-side Platforms Premium Media Sources Search Retargeting Creative Optimization Brand Measurement Exchanges Social Mobile Video Contextual Targeting Web Analytics & Attribution DMP and Data Aggregators Private Marketplace Nielsen PRIZM How It Works: Deep Ecosystem Integrations
  63. 63. © 2012 MediaMath, Inc. All rights reserved. Confidential. How It Works: Real-Time Decisioning at Scale The Brain Algorithm 4.0 Processes 80 Billion Bid Opportunities per Day Worldwide RMX > Monday > 11pm - 12am > mail.yahoo.com > Philadelphia $0.70 RMX > Day = All Other > 12pm-5:59pm > tech.cnn.com > ISP = Cable > New York $1.98
  64. 64. © 2012 MediaMath, Inc. All rights reserved. Confidential. Questions & AnswersInvestor Day 2012
  65. 65. BREAKInvestor Day 2012
  66. 66. PixelOptics Electronic Interactive Eyewear
  67. 67. Large and Profitable Market
  68. 68. $82.5B Global Eyewear Market $30.0B $30.0B $9.7B $12.0B $0.8B Frames Lenses Contacts Sunglasses OTC Readers
  69. 69. Global Market Opportunity $450M revenue realized with every 1% of progressive market PixelOptics Objective: ≥5% market share
  70. 70. Disruption in a Sea of Incremental Change
  71. 71. Digital Is Disruptive
  72. 72. Presbyopia • Loss of accommodation • Tear quality changes • Begins in your 40’s Problem – Aging Eyes
  73. 73. Presbyopic Options Spectacle Lenses bifocal 1784 progressive 1959 D N I
  74. 74. Peripheral Distortion
  75. 75. Ground Blur Ground Blur
  76. 76. New Category SmartphoneNot So Smart PhoneStatic Lens D N I Dynamic Lens That Comes with a Switch
  77. 77. emPower! • Widest distance and intermediate viewing • Near zone activated without distortion • Electronics hidden & integrated into frame D I N
  78. 78. Peripheral Distortion Resolved
  79. 79. Ground Blur Resolved
  80. 80. Expansive Electronic Platform
  81. 81. A Revolutionary Optical Device Right Temple Controls Optical Zone Left Temple Other Electronics
  82. 82. Incredible Patent Portfolio & Recognized in the Industry
  83. 83. 300+ patents and patent pending applications worldwide The Gold Edison Award for Quality of Life in the competition’s Lifestyle and Social Impact category awarded to PixelOptics The Technology Category Award given to PixelOptics for emPower - the world’s first electronically focusing eyewear Recognition
  84. 84. $100M+ Invested and More To Come
  85. 85. Capital History • $100M+ funding through D Round • Major Investors • Safeguard Scientifics • Delphi • Longitude • Brian Stark (purchased incremental interest from Carlyle, June 2012) • Strategic Investor • Panasonic Healthcare
  86. 86. Learning's Have Driven: New Generation
  87. 87. Favorable • Global industry anticipation • Value chain margin improvement • “Optimized” vision on demand Experience Jun 2011 – Jun 2012Unfavorable • Frames, electronics unreliable • Frames not fashionable • Optics range limited • Non-optimized coating technologies • Complex business model
  88. 88. Improvements ① New Electronics & Frames ② Optics & Range Improved ③ Optimized Coatings ④ De-Risked Business Model 0 5 10 15 1 2 3 4 5
  89. 89. Moving from an Analog Industry Lens Companies Frame Companies
  90. 90. To a Digital Industry PixelOptics Brings It All Together D N D N
  91. 91. Summary • Pioneered the world’s first electronic interactive eyewear • Superior vision introduced into a large ophthalmic market
  92. 92. Summary • 300+ global issued/pending patents • $1 Billion+ opportunity
  93. 93. Questions & AnswersInvestor Day 2012
  94. 94. James A. Datin EVP and Managing Director Investor Day 2012
  95. 95. Putney, Inc. NYSE:SFE Putney partners with veterinary practices to provide high quality medicines that meet pet medical needs and offer cost-effective alternatives for pet owners. $10.0M 28% SEP’11 CAPITAL DEPLOYED SFE STAKE INITIAL CAPITAL DEPLOYED • Specialty Pharmaceutical Company • Developing High-Quality, Cost-Effective Generic Medicines for Pets • Total Global Market for Companion Animal Pharmaceuticals Approx. $5.7B • Total U.S. Market for Companion Animal Pharmaceuticals Approx. $3B • +165M Dogs and Cats in +73M Households in the U.S. • Only 6% of Drugs Approved by FDA for Dogs/Cats Have Generic Equivalent • Approx. 20 Drugs in Various Stages of Development and Submission to FDA
  96. 96. Questions & AnswersInvestor Day 2012
  97. 97. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. The New Gold Standard in Carrier Screening
  98. 98. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Investment Thesis: Genetic Testing Currently a Large Market opportunity and Expanding Rapidly due to advances in Technology • Good Start Genetics Tests Target a $1B+ and Fast Growing Segment • Good Start Genetics Has Developed a Cutting Edge Clinical Next Generation DNA Sequencing Platform  Yields Superior Clinical Results Compared to Older, Less Accurate Technology  Advanced NGS platform from the research setting to routine clinical practice • Market Strategy  Initial focus: U.S. fertility clinics  Maternal Fetal Medicine & large Ob-Gyn’s selectively & with partner  Selected international markets through partnerships  Technical Risk Eliminated- Market Risk Minimized  Tests are in practice guidelines and generally reimbursed by insurance  Direct sales force with laser like focus will yield a competitive advantage  High touch service will increase “stickiness” of large accounts
  99. 99. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Genetic Carrier Testing Competitors: • Genotyping (fixed) • Clinical sensitivity limited by cost / benefit tradeoff • Test must be re-built to increase sensitivity Good Start Genetics’ Approach Good Start Genetics: • Sequencing – (adaptable) • Clinical sensitivity limited only by clinical knowledge • Priced in-line with today’s tests
  100. 100. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. • Ability to analyze vastly more DNA base pairs than traditional technologies (and without cost limitations) • Testing for the most comprehensive set of known and novel disease-causing mutations • Yields higher detection rates, regardless of the Patient’s Ethnic Background The Power of Next-Generation Sequencing Detecting More Mutations Groundbreaking Technology High degree of confidence in carrier screening results No need to compromise accuracy for price
  101. 101. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. A balanced approach uniquely focusing on testing for society guideline mandated disorders, coupled with the most comprehensive set of only disease causing genetic mutations per disorder. Only Recommended Disorders Only Disease Causing Mutations GoodStart Select Balance of Design Balance drives clinical value and sets a new standard for excellence Responsible
  102. 102. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Focus on Society-Recommended Disorders Routinely Ordered in IVF GoodStart Select™ Test Menu Responsible Disorder Pan-ethnic tests ACOG ACMG AJ Cystic fibrosis Fragile X syndrome * * Spinal muscular atrophy Hemoglobinopathies Alpha-thalassemia Beta-thalassemia Sickle cell disease Ashkenazi Jewish tests Canavan disease Familial hyperinsulinism Familial dysautonomia Glycogen storage disease type Ia Tay-Sachs disease ** Joubert syndrome Bloom's syndrome Dihydrolipoamide dehydrogenase deficiency Gaucher disease Maple syrup urine disease type A/B Fanconi anemia type C Nemaline myopathy Mucolipidosis type IV Usher syndrome type IF Niemann-Pick type A Usher syndrome type III RecommendationsDisorder Pan-ethnic tests ACOG ACMG AJ Cystic fibrosis Fragile X syndrome * * Spinal muscular atrophy Hemoglobinopathies Alpha-thalassemia Beta-thalassemia Sickle cell disease Ashkenazi Jewish tests Canavan disease Familial hyperinsulinism Familial dysautonomia Glycogen storage disease type Ia Tay-Sachs disease ** Joubert syndrome Bloom's syndrome Dihydrolipoamide dehydrogenase deficiency Gaucher disease Maple syrup urine disease type A/B Fanconi anemia type C Nemaline myopathy Mucolipidosis type IV Usher syndrome type IF Niemann-Pick type A Usher syndrome type III Recommendations AJ – Tests recommended by professional organizations supporting the Ashkenazi Jewish population.
  103. 103. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Disease Causing Mutations in CFTR Gene GSG Tests for 544 Mutations Groundbreaking ACOG (23) Other Labs (98) Known (544) Novel (unknown) GSG (544+)
  104. 104. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. GoodStart Select™ Cystic Fibrosis ~ 1000 Patient Experience • Uncovered 32 pathogenic mutations, which is in line with the generally accepted CF carrier frequency rate (testing performed on a diverse ethnic group) • 3 of the 32 pathogenic mutations detected would not have been found by the frequently used carrier screening tests • 1 of the 32 pathogenic mutations detected would not have been detected by any other carrier screening test GSG’s NGS platform is the new gold standard that captures five times more pathogenic mutations than traditional genotyping
  105. 105. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Significant Progress Achieved Across Key Areas Established Organization: • Senior Leadership Team experienced in Large Lab Operations, Clinical & Molecular Diagnostics, Reimbursement and Administration • 60+ FTE’s •Technology development •Clinical operations •Sales & marketing •Bioinformatics •Reimbursement • Recruited world-class Clinical Advisory Board - 12 IVF Physicians • Recruited Outstanding Genetic Counselor Advisory Board – 8 GC’s • State-of-the-art CLIA approved clinical lab facility - Cambridge, MA
  106. 106. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Clinical & Commercialization Roadmap Rapid Clinical Progress Achieved • Proprietary next-generation sequencing technology developed • Rigorous technical validation of sequencing platform completed • Clinical validation on affected DNA & blood samples completed • Augment test menu on next-gen sequencing platform – 23 tests Path to Commercialization Progress • Q4/2011, Granted MA State Licensure to begin clinical operations • Q4/2011, GSG Launch in Select U.S. Fertility Clinics • Q1/2012, National Launch in U.S. - Fertility Clinics • Today– 23 Tests--Market penetration 50 Clinics & 120 MD’s
  107. 107. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. Growth Strategy • Increase sample throughput of next-gen sequencing platform • Secure New York State Licensure • In-license additional products • Develop commercial partnerships for other markets • Develop partnerships with therapeutic and diagnostic companies • Drive Revenue Growth - 2013 $20m+ • Achieve Profitability in 2013
  108. 108. © 2012 Good Start Genetics, Inc. All rights reserved. Confidential. The New Gold Standard in Carrier Screening
  109. 109. Questions & AnswersInvestor Day 2012
  110. 110. Corporate Presentation October 9, 2012 © 2012 NuPathe Inc. All rights reserved.
  111. 111. Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All remarks and information that are not historical facts are hereby identified as forward-looking statements for this purpose and include, among others, remarks and information relating to: the Company’s ability to satisfy the closing conditions and complete its recently announced financing; the sufficiency of the proceeds to be received upon closing of the financing, together with recently announced cost-containment measures, to fund operations into the fourth quarter of 2013; the Company’s interpretation of the FDA’s complete response letter (CRL); the timing and prospects for FDA approval of Zecuity (also referred to as NP101 and migraine patch); the therapeutic benefits, pricing, reimbursement and market opportunity for Zecuity; partnering and commercialization plans for the Company’s product candidates; duration and scope of IP protection; and other and all other remarks and information relating to the Company’s projections, expectations, beliefs, future performance or plans or objectives for future operations (including assumptions underlying or relating to any of the foregoing). Forward-looking statements are based on the Company’s current expectations, plans and beliefs and are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially and adversely from those indicated by such statements including, among others: the Company’s ability to satisfy the closing conditions and complete the financing; the Company’s ability to continue operations until the closing of the financing; the adequacy of activities undertaken to address the issues contained in the CRL; the extent to which the FDA may request or require additional information, studies or redesign of NP101; physician and patient acceptance of the Company’s product candidates; safety or other risks that could require the Company to abandon or delay development of, or preclude or limit approval of, the Company’s product candidates; varying interpretation of study and market data; risks and uncertainties relating to intellectual property; and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 under the caption “Risk Factors” and elsewhere in such report, which is available at on the Company’s website at www.nupathe.com in the “Investor Relations – SEC Filings” section. As a result, you are cautioned not to place undue reliance on any forward-looking statements. While the Company may update certain forward-looking statements from time to time, it specifically disclaims any obligation to do so, whether as a result of new information, future developments or otherwise.
  112. 112. • ZecuityTM : substantial near-term commercial opportunity  The first migraine patch • Delivers sumatriptan, the #1 Rx migraine treatment  Uniquely designed to overcome migraine-related nausea & vomiting • Impacts half of all migraine sufferers • PDUFA date Jan 17, 2013 • Focused on gaining FDA approval, securing commercial partners, and select pre-launch activities • Financing & cost containment measures expected to provide cash runway into 4Q13 NuPathe – Innovative Neuroscience Solutions
  113. 113. • Applied during migraine • Rapidly delivers sumatriptan • Bypasses GI tract • Simple to use, single use • Multiple application sites • Strong intellectual property protection until April 2027 First and Only Migraine Patch
  114. 114. Key CRL Issue Action Taken Skin events of concern Implemented device enhancement • Prevents patch from activating when misapplied Packaging • Usability • Uniformity • Containment Modified secondary packaging • Usability study demonstrated all patients correctly applied patch during a migraine • Additional data supports consistent uniformity and containment Repeat BE study Successfully completed Required new in vitro method for product release Developed and validated new in vitro method Justification of waiver for CA study Demonstrated that sumatriptan not passively delivered even in presence of penetration enhancers in two laboratory dermal studies Zecuity NDA Resubmitted PDUFA Jan 17, 2013
  115. 115. • 31 million migraine sufferers • Triptan market  94% of migraine prescriptions  97% of migraine sales • Preferred class of migraine treatment  3 – 4 triptan trials before moving to different classes (e.g. opioids, DHE) • Key challenge for triptans: circumventing pervasive migraine-related GI issues  Injection is poorly tolerated and orals/nasals are unreliable Triptans Dominate the Migraine Market Triptans 94% Analgesic Combos 5%Ergots 1%
  116. 116. Triptan Sensations Mimic a cardiovascular event • >42% of injection patients • > 8% of oral tab patients Millions Remain Underserved * Linked to a variety of factors, including gastroparesis. Gastroparesis Unreliable absorption Inconsistent Efficacy* • >40% of treated patients Migraine-Related Nausea (MRN) • 8 million patients in >50% of attacks • 4.7 million patients in 100% of attacks Migraine-Related Vomiting (MRV) • 3.4 million patients in >50% of attacks • 1.5 million patients in 100% of attacks Note: Overlap amongst patient types.
  117. 117. • Frequent nausea patients are less satisfied with their migraine medications • Frequent nausea patients drive direct medical costs for migraine  5.4 times as many emergency/urgent care visits  8.2 times higher overnight hospital stay costs • Presence of nausea predicts poor response to oral medications in treating headache pain  Headache pain relief with patch not compromised by presence of nausea* MRN Drives Tremendous Disease Burden * Ad hoc data analysis of Phase 3 pivotal study ( P <0.0001 ).
  118. 118. • Insurance is >90% commercial private pay • Payors see value in Zecuity for migraine  Acknowledge barrier of GI issues  Recognize cost of poorly controlled migraine patients  Accept Zecuity as a unique solution • Payors indicate broad formulary access for Zecuity  Majority Tier 3; opportunities to contract for Tier 2 • Non-orals priced up to $90 per unit (WAC)  Annual gross revenue per patient using 2 patches/month • $80/patch = $1,900 • $100/patch = $2,400 Broad Formulary Coverage Expected
  119. 119. • Physicians rate Zecuity superior to oral, nasal, and injectable triptans for MRN patients on key attributes including:  Ability to use early in a migraine attack despite GI issues  Frequency of triptan sensations and overall tolerability  Elimination of nausea at 1 and at 2 hours • 77% of MRN patients will ask their physician about Zecuity Quantitative Research Confirms the Market Opportunity for Zecuity Physicians (n=409)  Priority segments • Heightened concern about MRN • High interest in prescribing a migraine patch Patients (n=400)  Priority segments • Actively seeking new treatments • Highest % of migraines with nausea
  120. 120. • 1.5 million patients vomit with every migraine • Branded injection pricing of $90/migraine • 24 migraines per year Illustrative Market Opportunity (Only Patients Who Vomit with Every Migraine) $0 $81 $162 $243 $324 $0 $100 $200 $300 $400 0% 2.5% 5% 7.5% 10% Revenue($millions) Share of Segment – Vomit with 100% of Migraines Annual Revenue Potential – Patients that Vomit with Every Migraine 1.5 MM vomit during every attack
  121. 121. • Secure commercial partnerships  Zecuity is a versatile asset within a portfolio • Migraine co-morbidity rates include: sleep disorders (52%), depression (44%), arthritis (26%), GERD (25%) • Specialists (~10K) drive 1/3rd of triptan prescriptions  Headache specialists and neurologists • Primary care drives the balance of the market  ~30K PCPs account for 1/3rd of the market • Significant commercial opportunity in ROW Commercialization Strategy 121
  122. 122. • NP202: 90-day risperidone biodegradable implant to treat schizophrenia and bipolar disorder  Designed to address significant patient non-compliance  Continuous delivery reduces psychotic breaks and improves patient functionality1  Seeking global development & commercial partner • NP201: 60-day ropinirole biodegradable implant to treat the signs and symptoms of Parkinson’s disease  Designed to address the challenges of “on and off” time due to intermittent dosing and reducing drug-related adverse events  Evidence suggests continuous dopaminergic stimulation delays disease progression and improves treatment2  Seeking partner for continued development Pipeline
  123. 123. • Financing & cost containment measures expected to provide cash runway into 4Q13  $28 million financing expected to close in Oct/Nov  Restructured $7.5 million of outstanding debt  Headcount reduction and reduced spend on pipeline and commercialization activities • Focused on achievement of key milestones  Zecuity approval  Securing commercial partnerships  Select pre-launch activities Financial
  124. 124. • ZecuityTM : substantial near-term commercial opportunity  The first migraine patch • Delivers sumatriptan, the #1 Rx migraine treatment  Uniquely designed to overcome migraine-related nausea & vomiting • Impacts half of all migraine sufferers • PDUFA date Jan 17, 2013 • Focused on gaining FDA approval, securing commercial partners, and select pre-launch activities • Financing & cost containment measures expected to provide cash runway into 4Q13 NuPathe – Innovative Neuroscience Solutions
  125. 125. Questions & AnswersInvestor Day 2012
  126. 126. ConclusionInvestor Day 2012
  127. 127. Why Own Safeguard? • Full Value Yet to be Realized • Ownership Stakes in Exciting Partner Companies • Top Performance of Proven Team • Financial Strength, Flexibility and Liquidity • Strong Alignment of Interests NYSE:SFE
  128. 128. John E. Shave III VICE PRESIDENT, BUSINESS DEVELOPMENT & CORPORATE COMMUNICATIONS jshave@safeguard.com P 610.975.4952 E IR@safeguard.com NYSE:SFE

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