The document discusses Sofinnova Capital VI's investment activities and trends as of January 2010, highlighting the firm's strong performance in 2009 amidst economic challenges. It outlines the focus on early-stage investments in areas such as biopharmaceuticals, medical devices, and green technologies, while also projecting continued growth in M&A and IPO activities. Additionally, it identifies key trends for 2010, including advancements in mobile internet, digitalization, and disruptive innovations in medicine.

1. Sofinnova Capital VI – 2010 Trends
January 26, 2010

2. Agenda
Welcome
Where we are today:
2009 activity and Sofinnova Capital VI
Where we’ve been:
a review of investment activity since 1989
Where we are going:
2
2010 trends
Q&A
Breakfast Presentation: January 26, 2010
Confidential

3. WELCOME

4. Sofinnova Partners
Denis Lucquin, Managing Partner (LS)
Antoine Papiernik, Managing Partner (LS)
Monique Saulnier, Managing Partner & CFO
Jean Schmitt, Managing Partner (IT)
Jean-Bernard Schmidt, Managing Partner
Graziano Seghezzi, Partner (LS)
4
Olivier Sichel, Partner (IT)
Rafaèle Tordjman, Partner (LS)
Breakfast Presentation: January 26, 2010
Confidential

5. WHERE WE ARE TODAY
2009 AND SOFINNOVA CAPITAL VI

6. “We foresee strong M&A activity in 2009
for our portfolio companies:
technologies making a real difference
for patients or for customers will always
be valuable — such is the beauty of
venture. This proves the non-correlation
of venture to the rest of the economy.”
6 Denis Lucquin,
Managing Partner and Chairman
March 24, 2009
Breakfast Presentation: January 26, 2010
Confidential

7. Sofinnova Portfolio Developments Page 7
Deal Activity and Exits of 2009 Company X
Q1 10: IT Company sold
Value Creation
Dec 09 (SK V): Movetis to IPO – 3
years after investment. Sofinnova is
largest shareholder and founding
investor.
Feb 09 (SK V): Esmertec merges
with Purple Labs forming Myriad,
Feb 09 (SK IV): Sofinnova of Europe’s largest mobile phone
Corevalve (EV 700m$ + milestone software company. Sept 09 (SK IV): Sofinnova Exit of Dec 09 (SK IV): Sofinnova Exit of
payments) Fovea (EV 370m€ incl. milestone Novexel (total cash consideration
payments) of $505 million, including earn out
MERGER payments of $75 million)
Q1
2010
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Aug 09 (SK VI):
June 09 (SK VI): Sofinnova VI invests Sofinnova VI invests Omthera
€6.16m in CoAxia €2.8m in MD Start
Pharmaceuticals
Dec 09 (SK VI): Sofinnova
VI invests €1.4m in Omthera
June 09 (SK VI): Sofinnova VI invests
€4.70m in Flexion Therapeutics Aug 09 (SK VI): Sofinnova
invests €3.6 m in Crescendo Nov 09 (SK VI): Sofinnova
VI invests €1.50m in Celsius
Capital Deployed
June 09 (SK VI): Sofinnova VI invests
€2.88m in DNP Green Technology

8. Sofinnova Capital VI
Closed December 31, 2009
€260 million ($370 million)
Target was €300 million
Already committed to date: 40% to 50% in ten companies
LPs include: CDC Entreprises within the France Investment
program, Industrial & Financial Investments Co., JP Morgan
Asset Management, funds advised by Partners Group and
Skandia Life Insurance Company
8
Sofinnova Partners continues to be recognized by its investors
for its solid investment style and capacity to generate strong
returns, even during turbulent economic times.
Breakfast Presentation: January 26, 2010
Confidential

9. WHERE WE’VE BEEN
INVESTMENT ACTIVITY SINCE 1989

10. Sofinnova Partners:
Solid Investment Style
Early-stage, spin offs and restarts are the area of investment
focus
IP rich technologies
Biopharmaceuticals, medical devices, green chemicals,
wireless, mobile internet
Europe & USA
10 Repeat entrepreneurs and experienced management
No « me too » investments
Breakfast Presentation: January 26, 2010
Confidential

11. WHERE WE ARE GOING
2010 TRENDS

12. What Does Sofinnova Partners’
Success Mean for The VC Industry in
Europe?
Alive and kicking!
M&A will continue to feed corporate growth
IPO window is reopening
Early-stage investment strategy works
Consistent investment in innovation transcends economic
12 fluctuations
« Back to basics»: invest only in exceptional companies
Breakfast Presentation: January 26, 2010
Confidential

13. 2010 Trends: Mobile Internet
THE NEXT GENERATION OF INTERNET, MAY BE EVEN MORE POWERFUL THAN FIXED INTERNET
With new ways to search:
New advertising model:
Blyk
13 And key software browsers/multimedia:
Breakfast Presentation: January 26, 2010
Confidential

14. 2010 Trends: The Mobile Backhaul Issue
MOBILE NETWORKS ARE ABOUT TO MOVE TO FULL IP
Needs network intelligence:
14 And policy management:
Breakfast Presentation: January 26, 2010
Confidential

15. 2010 Trends: The New Digital Frontier
DIGITALIZATION WILL BRING NEW INNOVATIONS
Choosing your home in 3D:
Working together:
15
Listening to music:
Breakfast Presentation: January 26, 2010
Confidential

16. 2010 Trends: The New User Interface
Everything becoming more tactile:
Bringing Convenience and Security:
16
Bringing security:
Breakfast Presentation: January 26, 2010
Confidential

17. 2010 Trends: Convergence of Brands
and Technology
PIONEERED BY EUROPEAN INNOVATION
New brands with radical innovations and vision:
17
And a place where design counts:
Breakfast Presentation: January 26, 2010
Confidential

18. 2010 Trends: Vaccines
Growth Old technology
35
30
25
20
15
10
5
0
2002 2003 2004 2005 2006 2007 2008 2012
[E]
Future Innovation
SHIFT
30.0
PROPHYLACTIC VACCINES THERAPEUTIC VACCINES
Births per year (m)
Seven major markets BRIC countries
25.0
18
20.0
INFECTIOUS DISEASE
$B CHRONIC DISEASE
15.0
Bacterial 10.0
2008 2018
Cancer
Viral Diabetes
Alzheimer’s Disease 5.0
0.0
BRIC: Brazil, Russia, India, China
Copyright © 2006 Sofinnova Partners

19. 2010 Trends: Antibodies
Growth Past Innovation
450 70
400 60
350
50
300
250 40
$B
200 30
Murine Chimeric Humanized Fully Human
150
20
100 Murine % 100 30-35 5-10
50 10
0 0 Human % 60-65 90-95 100
2002 2003 2004 2005 2006 2007 2008 2009 2012 2014
[E] [E]
NCE MAB Mouse Human
Future Innovation
Variable region of
Heavy chain (Vh)
Constant region 1 of
Heavy chain (Ch1)
19
Variable region of
Light chain (Vl)
Constant region of
Light chain (Cl) Single-chain Antigen-binding
antibody (SCA) Fragment (Fab)
Full-size antibody
Copyright © 2006 Sofinnova Partners

20. 2010 Trends: Disruptive Technologies
in Medical Devices - Who Could be the
next CoreValve?
Perfusion augmentation therapies
Patented product to treat specific
cardiac artery diseases and
avoid open-chest surgery for
hundreds of thousands of
20 patients
Nurturing companies
at the seed stage: MD Start
Breakfast Presentation: January 26, 2010
Confidential

21. 2010 Trends: Green Chemistry
Alternatives
Biotech alternative to petrochemical
routes
21
Breakfast Presentation: January 26, 2010
Confidential

22. 2010 Trends: Pharma Spin-offs
Evolution of the Pharma industry (rationalisation – concentration)
will lead to spin-off opportunities
22

23. Q&A