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CASE STUDY: Avid Radiopharmaceuticals
Jim Datin, EVP and Managing Director, Safeguard Scientifics

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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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3.
About Safeguard Scientifics

4.
Safeguard Today
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5.
Recent Success Stories
Cash-on-Cash
Acquired By Proceeds*
Return
$38M 4x
$138M 13x
$208M** 3x
Market Cap Increased 5x
$41M 3x
Return Potential Could
Approach 8x***
* 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.
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CASE STUDY
“The Success of Avid Pharmaceuticals
from an Investor's Point of View“
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Avid’s Product Portfolio
ALZHEIMER’S
“Probable Alzheimer’s” Patient Cognitively Normal Elderly
PARKINSON’S and
DEMENTIA WITH LEWY BODIES
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Significant Market Opportunity
Alzheimer’s disease affects millions of older Americans....
U.S. Prevalence of Alzheimer's
8 (Millions of Patients)
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5
4
3
1990 1995 2000 2005 2010 2015 2020 2025 2030
… yet current diagnostic methods are inaccurate.
Souces: American Academy of Neurology Practice Parameter for Diagnosis of Dementia;
Morgan Stanley AD Market Report, 2003; U.S. Census Bureau
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About the Founder
Daniel M. Skovronsky, M.D. Ph.D.
Founder and CEO
Avid Radiopharmaceuticals, Inc.
• 33 years old when he founded Avid Radiopharmaceuticals
• 20+ peer-reviewed publications; 2 NIH-funded grants on Alzheimer’s disease research
• E&Y Entrepreneur Of The Year® Award in 2009
• Philadelphia Business Journal “40 under 40” in 2006
• Scientific Director of High Throughput Screening and Drug Discovery at the Center for
Neurodegenerative Disease Research at the University of Pennsylvania
• Resident in Pathology; Fellowship in Neuropathology – Hospital of UPenn
• M.D., Ph.D. – University of Pennsylvania
• B.S., Molecular Biochemistry – Yale University
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World Class Team
Background
Daniel M. Skovronsky, M.D., Ph.D. – President & CEO
Hank F. Kung, Ph.D. – Chairman Scientific Advisory Board
Franz Hefti, Ph.D. – Chief Scientific Officer
Richard Baron – Chief Financial Officer
Alan P. Carpenter, Jr., Ph.D., J.D. – Business Development
Michael Pontecorvo, Ph.D. – Clinical Development
Chris Clark, M.D. – Medical Director
Chris Bunting – Marketing & Sales
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Board Members and/or Investors
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History of Avid Radiopharmaceuticals
2005 Founded
Spun out of
UPenn
Seed Funding
Raised $500K
2006 Series A/B
Raised $9M
Alzheimer’s Licensing Agreement: Awards
2007 Series C
Raised $26M
Product
Phase I
Bayer Schering
Pharma
Frost & Sullivan
ETC Enterprise Award
Alzheimer’s Parkinson’s FDA Advisory
2008 Product
Phase II
Product
Phase I
Committee Meeting for
Alzheimer’s Product
Alzheimer’s Parkinson’s Diabetes
2009 Series D
Raised $35
Product
Phase III
Product
Phase II
Product
Phase I
Alzheimer’s
2010 Product
NDA
Acquired by
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The Results for Safeguard?
• Safeguard deployed $12M in Avid
• Eli Lilly acquired Avid for initial payment of $300M, plus an additional
$500M contingent upon potential future regulatory and commercial
milestones for Alzheimer’s product
• Initial Proceeds were $36M, Constituted 3x CoC return for Safeguard
• CoC return for Safeguard could approach 8x based on Avid’s
achievement of some difficult regulatory and revenue milestones
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Safeguard’s Capital Deployment Criteria: The ‘5Ms’
• Management – How’s the management in this organization?
Does it need to be augmented?
• Market – Is the market large enough to build a real
business, or is it just large enough to have a successful product
line?
• Model – Does the business model enable valuation growth?
• Momentum – Are the momentum indicators showing that the
company has its back to the wind as opposed to its back to the
wall?
• Moat – How defensible is a company’s competitive
positioning?
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CASE STUDY: Avid Radiopharmaceuticals
Jim Datin, EVP and Managing Director, Safeguard Scientifics