Part of the MaRS Entrepreneurship 101 Event Series "Hey buddy, can you spare a $100 million?" OR: How to convince successful financiers to give you millions of dollars in a project doomed to fail! Speaker: Mike Polonsky, Senior Vice President, The Equicom Group Download the audio presentation and post questions on the MaRS blog: http://blog.marsdd.com/2007/04/11/entrepreneurship-101-who-should-pitch/

1. hey buddy, can you spare
a $100 million?
or
how to convince
successful financiers to give you
millions of dollars in a project
doomed to fail!
Michael Polonsky
April 19th, 2006

2. I love love love
entrepreneurs life sciences canada

3. title here
generates long
high quality lasting, defined,
information effective, profitable
relationships

4. power of a narrative

5. which came first?

6. hunger
no hunger … no plot … no one cares

7. noitisoporP eulaV gniylrednU
Native Peptide DAC™:Peptide
minutes days

8. Coronary Heart Disease
Number
one 20%
killer! of all deaths

9. BREAK IN G T HR O UG H
FORTUNE MARCH 22, 2004
2

10. AF Incidence
arrhythmias 1 in 4 adults will get AF (age 40+)
6 million
patients in the world
Annual incidence: 700,000 * Wang et al. Circulation: Journal of the
American Heart Association. August 2004.

11. evidence evidence evidence
remember: high quality information

12. BREAK IN G T HR O UG H
50 YEAR CANCER BARRIER
Age-adjusted death rates per 100,000-population
600
500
Heart disease
400
300
200
Cancer
100
0
1950 1960 1970 1980 1990 2002
FORTUNE CHART/SOURCES CDC
3

13. World’s Largest Drug Market
Top 3 drug categories 2004 annual sales
$30.2B
}
$25.5B
5 blockbuster
drugs
$23.8B
Cytostatics Antiulcerants Cholesterol &
(Cancer) (GI tract) triglyceride
reducers

14. Current treatment drawbacks
drugs heat ablation
treats symptoms only used in <3% of cases
only when drugs fail
high procedural risks:
30 – 60% effectiveness
PV stenosis
diminishes over time
Thrombosis
Esophageal perforation
serious side effects

15. Healthcare ramifications and risks
leading cause of stroke >15%
1
2 leads to chronic heart failure >20%
3 leading cause of hospitalizations 415,000 (U.S.)
4 cost to healthcare US$6.6 billion
no practical solution!
* Donald M Lloyd-Jones, Md, ScM, FACC.
Medscape Cardiology 8 (2). 2004.

16. the billion dollar slide
No one invests in hyper growth stories to double their money
“you have to show them the 10 bagger”
- Michael Denny

17. BREAK IN G T HR O UG H
Theralux Market Opportunity
TM
current expected paradigm market
$140 M $126 M $3 B
Blood disorders
aGvHD current AlloSCT
Solid tumours with GVT
aGvHD other cancers
Autoimmune life-threatening
17

18. BREAK IN G T HR O UG H
NB1011 Market Opportunity
Initial Market Paradigm Shift
End Stage First Line Treatment (with TS over expression)
$1.0B $4.7B
Lung (NSCLC) Lung (NSCLC)
Breast Breast
Stomach Stomach
Small bowel Small bowel
Ovarian Ovarian
Bladder Bladder
Colorectal Colorectal
High TS patient
25

19. There are
54 million with
Americans
low HDL

20. AF Business Opportunity
Untreated Pool New Cases/Year
2.2 million 160,000
>$2 Billion
Annual Business Opportunity
2.1 million 145,000
4.3 million 305,000

21. at last, your passion…
value
value
proposition
“if only they understood me”
solution to hunger

22. evidence evidence evidence
remember: high quality information

23. Our Customers: Leading U.S. Hospitals
Our Advanced Neuro-Diagnostic Instruments are used in over 1,300
hospitals in the United States including 6 of the top 10 Neurology and
Neurosurgery Hospitals
23

24. Positive Phase I Results
Safety and • 3 phase I trials
• Single and multiple dose
tolerability • 65 healthy volunteers
established • Blood chemistry within
normal ranges
• No reported significant
adverse events

25. CRD5 Rapidly Increases HDL
% increase in HDL
CRD5 Niacin - ER
Levels still rising Poorly tolerated
Non-optimized Low market share
formulation
Healthy volunteers
Crestor
(Statin)

26. Arctic Front: Encouraging early results
20 patients / 2 centers (rev 1)
> 84% AF free
> 95% reduced burden & AF free
75 patients / 6 centers (rev 2)
> 98% acute success
no safety concerns!

27. Neuradiab
60million
$
1.
MATURE
R&D invested by NIH grant
/ foundation funding
PRODUCT
7trials
CANDIDATE 2.
Progressive survival
benefit demonstrated
193 patients
3.
Established safety profile 27

28. Neuradiab Outcomes
Clinically compelling difference
42 %
Increase in survival =
91
Surgery + Radiation + Temozolomide + Neuradiab
weeks
2005 Surgery + Radiation + Temozolomide
1980
Surgery + Radiation
to
2004
0 15 30 45 60 75 90 105
Survival in weeks 28

29. competitive landscape
be honest/humble - don’t be cavalier
In all likelihood, the person across from you
a) has an opinion
b) knows more than you
respect other interpretations of the truth

30. Competitive Landscape - Surgical
Only 1 of “big 5” in the game today Only 1 start-up in the game
Medtronic (30-35%) AtriCure (20-25%)
bipolar (RF) bipolar (RF)
BSx (10-15%)
unipolar (RF)
Guidant (10%)
CryoCath
AFX (Microwave)
15-20%
St.Jude (pre-commercial)
Epicor (HIFU)
J&J
no initiative

31. don’t forget
milestones
request for cash
current shareholders
financings to date
IP

32. Milestones
SPY System Q3 2005 Q4 2005 Q1 2006
X
U.S. sales partner
X
Installed in 25 U.S. hospitals
X
Initiate studies for expanded indications
OPTTX System
X
Initiate North American multi-centre trial
X
Initiate combo trial with multi-national partner
X
File for Canadian and European approval

33. Investment Opportunity
Seeking – Launching
commercial platform
$15million – Expanding content
partnerships
in financing
– Developing
to drive the molecular tests
business – Scaling quality
forward manufacturing

34. Financing History & Shareholders
Date Amount Type Shareholders
April 2001 C$21M Series A • MDS Capital
Preferred Shares • Covington Capital
• Genesys
• Temple Ridge
• Management
December 2003 C$5M Convertible • MDS Capital
Subordinated Debt • Covington Capital
TOTAL C$26M
34

35. closing thoughts

36. speed dating
show a
… move on
little leg …
(20 – 30 slides) (never turn down a meeting)

37. be authentic!
STOP TALK …transacts!
generating
the bullshit like a person
earned
attributes

38. how do you get to Carnegie Hall?

39. dilution
100%
Think
big!!!
of zero is zero

40. if I had only one slide
need expressed: hunger
need addressed: value proposition
market opportunity: greed

41. thank you