Health Innovators: Funding Healthcare Innovation - Presentation by Darshana Zaveri

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Health Innovators: Funding Healthcare Innovation - Presentation by Darshana Zaveri

  1. 1. © 2011 CATALYST HEALTH VENTURES PRESENTATION AND SLIDES MAY NOT BE SHARED WITHOUT PERMISSION. © 2012 CATALYST HEALTH VENTURES PRESENTATION AND SLIDES MAY NOT BE SHARED WITHOUT PERMISSION. CHV Presentation April 16, 2014 Healthcare Investing that Impacts People’s Lives
  2. 2. Investing that Changes People’s Lives 5 investments; All Active 2 derivative investments Actively Investing 2 Investing in Healthcare since 2000 CHV I Y2000 Y2008 Y2013 10 investments; 7 exits 1 Active Notable Exits: Novazyme (Genzyme), Biotrove (Life Technologies), Hansen Medical (NASD: HNSN), GI Dynamics (AUS: GID) 10 investments; 3 exits 7 Active Notable Exits: Biocius (Agilent), Vortex Medical (AngioDynamics) CHV II CHV III
  3. 3. Investing that Changes People’s Lives 3 Who We Are Joshua Phillips Managing Partner Darshana Zaveri Partner Kevin McCaffertty Co-Founder, Special Partner Robert Vigoda Co-Founder, Special Partner Dianne Letzelter CFO & VP of Investor Relations
  4. 4. Investing that Changes People’s Lives CHV Portfolio 4 12.7 1.6 5.8 2.1 Kaleidoscope Medical
  5. 5. Investing that Changes People’s Lives 5 Healthcare Investing: Risks  Longer Clinical and Development Cycles  Uncertain Regulatory Environment – No clear directive on Diagnostics – Device approvals taking longer  Uncertain Reimbursement Environment – Harder to get paid for products and procedures – Focus on outcomes – Uncertainty in diagnostics reimbursement  Overall Dampening Effect on Venture Investing – Poor Returns, particularly IRR – Fewer healthcare funds raised CHV III
  6. 6. Investing that Changes People’s Lives 6 Healthcare Investing: Opportunities  16% of GDP and Growing  Non Cyclical business  Changing Demographics – People living longer; Want to be active and stay at home as long as possible – New healthcare needs created  No overall change in Medtech companies appetite for acquisition – Product pipeline weak post 2020 – Long term outlook favorable CHV III
  7. 7. Investing that Changes People’s Lives 7 Taking Advantage of the Opportunities  Healthcare rapidly adopting value-based purchasing  Industry focus is on improving outcomes and lowering cost  Manifests in several ways – Reimbursement – Pricing – Approvals  All our portfolio companies demonstrate a clear value proposition aligned with this new world It’s not just amazing technology!
  8. 8. Investing that Changes People’s Lives 8 Our Strategy: Focus on Opportunity Selection  Focus on Large Opportunities within Healthcare – Billion $ markets – Big clinical needs: Women’s Health, Cancer, Cardiology, Audiology  Invest in Innovative Technology Solutions; Limit Scientific Risk – High probability of value creation  Capital efficient – Responsible investing – Entrepreneur friendly  Earlier stage than traditional VC – Ability to add significant non-financial value – Fill a real financing gap Meaningful impact on health
  9. 9. Investing that Changes People’s Lives 9 Case Study: Vortex Medical  Challenged prevalent assumptions on investment needs – Virtual Company; 1 employee – Outsourced all non-core functions including Development, Regulatory and Manufacturing – Commission based sales model  Challenged prevalent assumptions on regulatory, pricing and reimbursement – Clear, well thought out regulatory strategy resulted in non-clinical, 510K clearance – Clear, well thought out economic benefit analysis resulted in payment for every single procedure – Product commercialized in US first; One of the highest priced single use devices on market  Capital Efficient Model – $3.5M total investment and <4 years from idea to exit – Acquired by Angiodynamics Inc. (NASD: ANGO) CHV II Transformed Standard of Care for PE; Superb Returns for Investors

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