Converge Advisory Group

CONFIDENTIAL
© Converge Advisory Group
An introduction to a cutting-edge advisory firm
Actionable strategies for life sciences
February 2017

2
CONFIDENTIAL
Biopharmaceutical companies face a number of ever-
increasing challenges
The R&D cost per new drug
approval has increased by 80%
between 2002 and 2015.
In 2014, 88% of US
prescriptions were filled by
generics at a cost of $65B
while the remaining 12% were
filled by branded rugs at a
staggering cost of $312B.
17 18 19
33 33
9 11 15
10 12$58
$108
$128
$135 $141
$0
$50
$100
$150
0
25
50
75
2002 2006 2009 2012 2015
BLA Approved
NCE Approved
R&D Spend
Drug Discovery
Development Cycle
While the timelines for drug
discovery have remained fairly
consistent, drug development
timelines have increased by
30% between 2004 and 2014.
Source: EvaluatePharma®; Nature Biotechnology; Tufts Center
for the Study of Drug Development; Converge Advisory Group
Analysis
Higher R&D CostsLonger Development
Times
Greater Price Pressure

3
CONFIDENTIAL
These challenges require companies to continuously
rethink their strategies throughout an assets’ lifecycle
The Lifecycle
Discovery RegulatoryPre-Clinical Clinical Commercial Post-Marketing
(New Indications / Combo Therapies)
3. Detailed Collaborative Design
4. Knowledge Transfer &
Implementation
2. Iterative Analysis &
Conceptual Design
1. Scoping and Measurable Objectives
Iterative Feedback and Refinement
Strategy Development and Refinement

4
CONFIDENTIAL
Strategies should be based on more insightful evidence
to improve the probability of success
Trends
Acquiring INSIGHTFUL and
TARGETED EVIDENCE
quickly and based on
broader and deeper data
sets and information
sources.
Underlying Needs
Leveraging systems,
services and products, to
gain ACCESS TO
MATERIAL INFORMATION
for successful market
differentiation.
Transforming data into
PRIVILEGED
INFORMATION to make
informed decisions on
strategic and competitive
tactics.
All stakeholders are
holding a magnifying
glass to value: value to
customers; value to
patients; value to payers;
value to the market.
Partnerships are
abounding: from pharma to
service providers; care
systems to practices; public
to private.
A significant focus on
“Big Data” - more
practically “Smart Data”:
leveraging multiple data
sources; larger data sets;
and multiple data

5
CONFIDENTIAL
Consulting firms are expected to provide dynamic and
iterative support but the economics are not aligned
Traditional Consulting Firms Converge Advisory Group Difference
Artificial intelligence
displaces costly analysts
Expertise right-sized for
each engagement
Optimized search and
methods for best impact
No active seeking of low
cost, high value solutions
Drive delivery to lowest
level team member
Need to bill for full teams
for high utilization rates

6
CONFIDENTIAL
The Converge Advisory Group’s guiding principle is to
quickly transition evidence to actionable strategy
Converge Advantage
Research
Apply relevant quantitative and
qualitative analytic research methods
Analyze 2-5x more
information and data
points
Insights
Develop scientific, clinical,
commercial, and regulatory insights
Create inflection
points, not data points
Strategy
Provide strategic guidance to
maximize asset and portfolio value
Formulate clear actions
25-40% faster

7
CONFIDENTIAL
We work with clients on developing strategies
throughout the lifecycle…
Indication
• Unmet Needs - Clinical /
Patient
• Competitive Landscape
• MOAs
• Current Trials
• Leading Rx
P&R
• Current Landscape, by
Indication
• Current and Future
Implications (HC
systems, potential
partnerships, etc.)
• Value-based Outcomes
• Health Economic
Factors (ICER, QALY)
Patients
• Patient Challenges
• Current Patient Care
and Care Providers
• Socio-economic Burden
• Quality of Care
• Patient Sentiment
BD&L
• Patentable inventions
• Investor Profiles
• Market Landscape /
Prioritization of Highest
Opportunity Markets
• Financial Valuation
• Risk Assessment
• Buyer Assessment
Launch /
Commercialization
• Scenario Analyses
• KOL Mapping
• Revenue Forecast
• Valuation Models
(DCF/NPV)
• Decision Support
Models

8
CONFIDENTIAL
…across three target client stakeholder groups
Pharma/Biotech
R&D and Commercial
• Develop actionable
strategies based on
holistic assessment of
scientific, clinical and
commercial information
• Advise across the
lifecycle on multiple
fronts: MOA / indication
assessments; CDPs;
forecasting scenarios;
pricing/reimbursement;
launch requirements;
competitive threats
BD&L / M&A
VC/PE/CorpDev groups
• Assess and screen
assets and analyze
indication nuances to
inform financial and risk-
based models
• Focus on commercial
viability of potential
deals
(acquisition/divestiture/
partnership/licensing)
Biotech Start-ups
Executive Management
• Provide cost-effective
strategy directions to
better manage cash and
VC expectations
• Serve as a sounding-
board on operational
aspects of the business

9
CONFIDENTIAL
We start by establishing critical questions with our
clients to serve as strategic building blocks
Early-Stage
Development
 Lead indication?
 Stratification of
targeted indications?
 Most-prevalent
unmet need
Implications?
 Clinical feasibility,
including patient
recruitment?
 Initial commercial
viability, by
indication?
Commercial
 Market assessment
and dynamics?
 Stakeholder unmet
needs?
 HTA requirements?
Past decisions?
 Comparative
effectiveness?
 Needs for value
dossier creation?
 Regional variations?
 Payer/provider
sentiment? Value
evidence?
 Comparative P&R?
 Competitive
implications?
Late-Stage
Development
 Payers/provider
sentiment? What
value evidence is
required?
 Market Access
strategy to be
deployed?
 Product price?
Assumptions?
 Current and
projected
competitive
implications?
 In-license or out-
license an asset?
BD&L
 IP strategy?
 Buy rights? Divest?
 Investor / partner
landscape?
 Comparative
investments?
 Royalty projections?
 Market potential?
Best opportunities?
 Financial projections
/ value?
 Real and inferred
risk?
List not intended to be exhaustive

10
CONFIDENTIAL
Then we consider the entire universe of data sets
Your Strategic
Questions
Scientific / Clinical
Literature
Customer/Physician
Perspectives
Patient Perspectives
Health Economics
Payer / Provider
Perspectives
Competitive Landscape
Clinical Environment
Commercial Factors
…and then layer in our 40+ years of experience to derive specific
strategic inflection points for our clients to leverage.
We “CONVERGE’” ALL critical factors leveraging artificial intelligence…

11
CONFIDENTIAL
And strategically identify the right data sets, of which a
majority already exists
Social Media
Multitudes of people place opinions
on treatment, drugs, outcomes and
trade-offs on social media
• Twitter
• Patient / Physician Social Networks
• Disease discussion forums
Informed Opinion
Finance, medical, scientific,
regulatory professionals generate
reams of personal opinions to
inform others
• Blogs
• News Releases
• Whitepapers
• Financial / market analyst reports
Intelligent Inferences
Smartly analyzing data can lead to a
significant amount of evidence,
leading to quick inferences
• Asset / TA Benchmarking
• Comparable Analysis / Effectiveness
• Market Potential / Value
Published Data
Scientists, clinicians, payer medical
advisors, regulatory authorities only
care about published, peer-reviewed
literature as gold standard for
decision-making
• PubMed
• Conference Abstracts
• Regulatory authority guidelines

12
CONFIDENTIAL
Finally, we converge machine and human intellect to
develop strategic inflection points…
Evidence-based solutions
with traceable logic
Supplement with external
primary research as needed
Layer in expert human
analysis to sift strategically
Machine learning to filter
at super-human scale
Inflection Points &
Recommendations
• “80/20 rule”: 20% of the data usually
holds 80% of the value so we
optimize efforts to smartly analyze
the most valuable data quickly
• Perform the bulk of data
aggregation and analysis
leveraging artificial intelligence
• Strategically supplement with
external primary research
using ‘micro-surveys’
• Infer sets of inflection points
for fast strategic
recommendations
Why needlessly pay consulting /
MR firms to do background
research, at the limits of human
analysis, and then validate with
KOLs to generate insights?
80% of firms DO NOT do this: they focus on billable hours & are tech-averse
Social
Media
Informed
OpinionPublished
Data

13
CONFIDENTIAL
…allowing us to deliver better and much faster results,
with a far greater return on investment
We take the best of strategy and market
research firms….
 Market / competitive intelligence
 Domain expertise
 Quant models and strategic frameworks
 Hypothesis-based solutions
 Deep client interactions
 Executive-level deliverables
…then exclude low-value activities
o Junior-level team members doing 70% of the work
o Drive towards a firm’s utilization metrics
o High ramp-up times on disease areas
o Charging for less-than optimized primary research
o Encyclopedic deliverables without clear actions
Converge Advantage
• We leverage artificial intelligence to
analyze disparate data, broadly and
deeply…in days, not weeks.
• We employ a hybrid resource model
to keep costs at a minimum while
acquiring the highest functional
expertise on-demand.
• Our leadership has a ‘hands-on’
approach since junior consultants
haven’t developed strategic search
skills, the ability to draw value-add
inferences or assess risk based on
their limited experience.
• We have launched products,
managed growth strategies,
designed and implemented life-
cycle strategies, unlike most
consultants without any operational
experience.

14
CONFIDENTIAL
Leadership Team
Robert co-founded and serves as a Managing Director with the Converge Advisory Group and
has over 20 years helping clients drive improved business performance in their U.S. and global
operations.
Prior to co-founding the Converge Advisory Group, Robert was a Principal and member of the
New York Leadership Team of Quintiles Advisory Services. Previously, he founded the Bedrock
Consulting Group, a specialty consulting firm focused on global operations strategy. Robert also
held leadership positions with PwC (formerly PRTM) and Archstone Consulting.
Robert’s client work includes a full range of engagements across the product lifecycle with a focus
on clinical and commercial strategies, organizational transformation, and business analytics. His
client experience includes large pharmaceutical, biotech and medical device companies, as well
as midsize and pre-commercial organizations.
Bachelor’s in social sciences, SUNY-Oneonta; Hofstra MBA
Robert S. Liebman, MBA Managing Director robliebman@ConvergeAdvisory.com
Subha co-founded and serves as a Managing Director with the Converge Advisory Group and has
over 20 years of academic, industry and consulting experience.
Prior to co-founding the Converge Advisory Group, Subha held senior positions with Decision
Resources Group, Quintiles Advisory Services, Frost & Sullivan and Becton Dickinson.
Subha has extensive exposure to opportunity assessment, emerging markets and strategy
development in pharma, bioprocessing, medtech and biosimilars sectors.
Bachelor’s in biochemistry, Berkeley; PhD in neuroimmunology, SUNY-Brooklyn
Post-doctoral Fellowship in neuroscience, Stanford; Carnegie Mellon MBA
Subha B. Basu, PhD/MBA Managing Director subhabasu@ConvergeAdvisory.com

15
CONFIDENTIAL
A sampling of our capabilities…

16
CONFIDENTIAL
We can perform due diligence at a different scale
Autoimmune / IBD
Chimeric / Cell Malignancies
Tumor Cells / Metastases
Stem Cell / Regen Med
Cell Culture Production
Immunotherapy / Orphan
Potential M&A Targets
(Immunotherapy Companies: 366)
Focused Area
of Interest
Lead
Investors
Investment
Amounts
For Illustrative Purposes Only

17
CONFIDENTIAL
We can dissect scientific and medical literature
efficiently to generate key themes and focal points
Comparison of retinal nerve fiber layer measured by
time domain and spectral domain optical coherence
tomography in optic neuritis.
Nerve fiber layer and macular thinning measured
with different imaging methods during the course of
acute optic neuritis.
Acute optic neuritis: retinal ganglion cell loss
precedes retinal nerve fiber thinning.
Memantine for axonal loss of optic neuritis.
Key themes for Acute Optic Neuritis:
Analysis of 1653 PubMed Articles
Stratification of most important papers:
Rapid-fire title and abstract screening

18
CONFIDENTIAL
We can provide targeted clinical insights for single and
multiple indications extremely quickly
What are the Lead Interventions (Rx)? What Types of Outcomes Exist?
Who are the Lead Sponsors? What is Enrollment Across Phases?

19
CONFIDENTIAL
We can baseline commercial dynamics with the latest
economic findings
Source: ISPOR Abstracts (1740), 2016
RA
110
78
28
MS
MS
MS RA
RA
Payers always prefer to use published data as reference points for formulary decisions:
Quality Adjusted Life Year (QALY) & Incremental Cost-Effective Ratios (ICER) are the leading metrics
Multiple Sclerosis and Rheumatoid Arthritis

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