This document provides an overview and analysis of trends in life science mergers and acquisitions from 2005 to 2011. It analyzes big exits, investments by indication for biotech and medical devices, and indication performance. The first part reviews annual big exits, total exit value, average time to exit, and deal structures. Biotech saw more structured deals while devices saw more outright acquisitions. Later sections analyze investments and exits by clinical indication for biotech and devices.

1. Continued Rebound:
Trends in Life Science M&A
Silicon Valley Bank
July 2012
Written By:
y
Jonathan Norris
Managing Director
650.926.0126
jnorris@svb.com
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2. Agenda • Part I:Overview of 2011 Big Exits
• Part II: Analysis by Indication
o Series A Investment by Indication
between 2005 and 2011
o LPI and Hit Rate – Measuring
Indication Performance in the Life
Science Industry
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3. Overview of Big Exits
3

4. M&A Big Exits Per Year (
g (2005-2011)
)
4

5. Total Big Exit Dollar Volume
g
5

6. Average Time to Exit
g
6

7. Biotech Deal Type
yp
7

8. Biotech Big Exits
g
8

9. Biotech Structured Deal Breakdown
9

10. Biotech Breakdown by Stage, Round, Years to Exit
y g , ,
10

11. Biotech Upfront Payments by Stage in Structured
Deal Era (2009-2011)
( )
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12. Device Big Exits
g
12

13. Device Structured Deal Breakdown
13

14. Device Stage Breakdown
g
14

15. Device Capital Efficient Exits by Multiple
p y p
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16. Analysis By Indication
y y
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17. Life Science Series A Data
17

18. Biotech Series A Data
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19. Device Series A Data
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20. Life Science Investments by Indication
y
20

21. Indication Breakdown: Biotech
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22. Indication Breakdown: Med Device
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23. Biotech Indication Performance Data
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24. Device Indication Performance Data
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25. Disclosures
This material, including without limitation the statistical information herein, is provided for
informational purposes only. The material is based in part upon information from third-party
only
sources that we believe to be reliable, but which has not been independently verified by us
and, as such, we do not represent that the information is accurate or complete. The
information should not be viewed as tax, investment, legal or other advice nor is it to be
relied on in making an investment or other decision. You should obtain relevant and specific
professional advice b f
f i l d i before making any i
ki investment d i i
t t decision. N thi relating t th material
Nothing l ti to the t i l
should be construed as a solicitation or offer, or recommendation, to acquire or dispose of
any investment or to engage in any other transaction.
U.S. VC-backed Service companies were included under the device category. Services
represented l
t d less th 10 percent of all d l i thi category. R ti
than t f ll deals in this t Rational f i l di
l for including
Services was to try and capture as much U.S. LS Venture investment as possible -
creating an additional category with a small data set did not make sense.
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Group. reserved. System.
SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley Bank are registered
trademarks. B-12-12265. Rev. 07-16-12.
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