1. No category

Impacting Cancer
The global oncology investment firm
May 2015
CONFIDENTIAL
EUROPE AND REST OF WORLD ALL INFORMATION IN THIS PRESENTATION IS ONLY OF A PRELIMINARY NATURE AND MAY BE SUBJECT TO CHANGE. NEXTECH IV
ONCOLOGY S.C.S. SICAV-SIF HAS BEEN APPROVED BY THE COMMISSION DE SURVEILLANCE DU SECTEUR FINANCIER (CSSF). THE COMPANY NEXTECH IV
ONCOLOGY S.C.S. SICAV-SIF HAS BEEN INCORPORATED ON 17 SEPTEMBER, 2014. THE FIRST CLOSING OF THE FUND HAS TAKEN PLACE ON 26 SEPTEMBER,
2014. A SUBSCRIPTION OF INTERESTS CAN ONLY BE MADE ON BASIS OF THE ISSUING DOCUMENT AS WELL AS THE LIMITED PARTNERSHIP AGREEMENT IN
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DOES NOT CONSTITUE A SALES DOCUMENT AND ACCORDINGLY IS NOT TO BE CONSTRUED AS AN OFFER OR INVITATION TO INVEST IN NEXTECH IV
ONCOLOGY S.C.S. SICAV-SIF. IN ADDITION THIS DOCUMENT IS NOT TO BE MADE AVAILABLE TO THIRD PARTIES AND IN PARTICULAR MUST NOT BE MADE
AVAILABLE TO THE PUBLIC NOR BE MADE AVAILABLE IN JURISDICTIONS WHERE THIS WOULD BE CONTRARY TO LOCAL LAWS AND REGULATIONS.
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SERVICES S.A., 11, RUE DU GÉNÉRAL-DUFOUR, 1204 GENEVA. THE SWISS PAYING AGENT IS BANQUE CANTONALE DE GENÈVE, 17, QUAI DE L'ILE, 1204 GENEVA.
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Disclaimer
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CONFIDENTIAL
Nextech Invest – Global oncology investment
I
IV
Page 3
Oncology
– Value driver of the healthcare industry
– Regulatory environment and pricing
II
Portfolio construction and investment process
III
Portfolio companies
Team and organization
CONFIDENTIAL
I. Oncology: Value driver of the healthcare industry
Executive summary
 Inception in 2006
Nextech
Oncology
Opportunity and Highlights
 Late stage private equity investments
 Focus on cancer therapeutics
 World leading scientists and drug developers in
oncology as part of Nextech investment process
 Global investment approach
 Total amount raised: $140 m
 Late stage investments (3 - 5 years to exit)
 Improved risk/return relationship due to recent
tremendous developments in science
 Focus on innovative, high value sector oncology, the
Scientific
Board
Leaders in oncology with
extensive experience in
bringing breakthrough
drugs to market
largest and fastest growing healthcare market
 High proportion of trade sales creates independency
from financial market cycles
14 investments





Portfolio
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CONFIDENTIAL
3 full exits
2 partial exits
4 IPOs
2 write downs
10 active companies
I. Oncology: Value driver of the
healthcare industry
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CONFIDENTIAL
I. Oncology: Value driver of the healthcare industry
Opportunity in oncology
“Increased understanding of the biology
behind cancer should result in more
selective treatments and more efficient
clinical trials” 2014
“For the smaller research and
development companies, the dawn
of cancer genomics offers good
business opportunities” 2014
“The drugs don't cure cancer and face
significant hurdles. But doctors now talk of a
"precision medicine" approach in which those
pinpoint drugs can treat tumors far more
effectively than catchall chemotherapy” 2013
“The newfound variants have led major cancer centers
to revamp their approach to treating cancer and have
spurred a rush among drug companies to find medicines
that narrowly target each one” 2013
“Andrew Baum, analyst at Citigroup, predicts that annual
revenues from so called immuno-oncology drugs could climb
as high as $35bn, outstripping the value of previous
blockbuster categories such as cholesterol-lowering statins”
2014
“Ms. Carey has one of at least 15 lung-cancer variations,
almost all of which scientists didn't know existed 10 years
ago. Researchers have identified those variations, most of
them in just the past four years, by decoding DNA in
tumors – akin to how crime labs analyze DNA to
genetically fingerprint suspects” 2013
“Big BioPharma continues to source
a significant portion of its pipeline
externally (>>50%), in particular
from venture-backed biotechs” 2014
“What we're seeing is the
beginning of a revolution in
therapeutics," says Janet
Woodcock, director of the Food
and Drug Administration's (FDA)
Center for Drug Evaluation and
Research. “We can only hope
that this gets us to where cancer
is managed or curable” 2013
Source: FT Special Report, Sep 26, 2014; Forbes Pharma & Healthcare: Startups, Exits, And Ecosystem Flux in Software and Biotech, Sep 8, 2014; Wall Street Journal: Gene
Breakthroughs Spark a Revolution in Cancer Treatment, Aug 13, 2013
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CONFIDENTIAL
I. Oncology: Value driver of the healthcare industry
Large cancer patient population
 Oncology
Science & research of cancer
14’100’000 estimated number of new cancer cases per year
 Cancer
Uncontrolled cell growth caused
by genetic mutations
0.5m
1.8m
1.2m
1.9m
Normal cell
3.8m
1.8m
0.9m
0.1m
0.7m
Unwanted cell growth
0.9m
0.2m
 8.2 million cancer deaths pear year with 33 million patients in 2013
 Main cause of death in developed countries – accounts for ~33% of deaths
Tumor
 High unmet medical and diagnostic need
Source: GLOBOCAN 2013, Region estimates do not sum to the worldwide estimate due to calculation method
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CONFIDENTIAL
I. Oncology: Value driver of the healthcare industry
Oncology drives high value exits
Trade sale exits not affected by cyclical markets
#
Economic crisis
40
Average trade sale value at time of exit
#
$m
200
600
30
150
20
100
10
50
0
400
200
0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotech big exits (left axis)
Biotech IPO (right axis)
Economic crisis
2005
2006
2007
2008
2009
2010
2011
2012
2013
Trend line
IPOs (right axis)
Oncology leads in high value trade sales
#
$m
30
600
20
400
10
200
0
 Exit by trade sale is an important and viable
exit strategy for biotech companies especially
during volatile public markets
0
Deals
Avg valuation at exit
 Within the biotech sector, oncology companies
create most trade sale exits and have the highest
average value at the time of sale
Data from 2005 - 2012
Source: Silicon Valley Bank: Trends in Healthcare Investments and Exits, 2014; Silicon Valley Bank: Trends in Mergers and Acquisitions, 2013; Jay Ritter, University of Florida,
Initial Public Offerings: Updated Statistics, Dec 4, 2014
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CONFIDENTIAL
I. Oncology: Regulatory environment and
pricing
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CONFIDENTIAL
I. Oncology: Regulatory environment and pricing
Oncology profits from special regulation
Faster and more efficient approval of oncology drugs thanks to special regulatory status
Breakthrough Therapy
Average approval time
(years)
 Approval times for oncology drugs are
50% shorter on average
2.0
34%
1.5
 Oncology drugs represent 34% of all
Breakthrough Therapy designations
granted by FDA*
1.0
66%
0.5
0.0
Oncology
Non-oncology
Non-oncology
Oncology
Orphan Drug designation greatly improves the likelihood of approval
Orphan Drug designation
50%
Oncology
50%
Non-oncology
Oncology approval rate
(likelihood of approval)
 Oncology drugs represent 50% of
drugs receiving an Orphan Drug
designation
25%
20%
15%
10%
5%
0%
Total
Orphan
 Oncology Orphan Drugs are 4 times
more likely to be approved than nonorphan oncology drugs
* FDA: Federal Drug Administration
Source: Worldwide Clinical Trials White Paper, Mar, 2014: Expedited Review Programs For Oncology Drugs from the FDA; Tufts Center for the Study of Drug Development Report, 2007
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CONFIDENTIAL
II. Portfolio construction and investment
process
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CONFIDENTIAL
II. Portfolio construction and investment process
Effective global deal sourcing
 More than 900 cancer
companies screened
resulting in 14 investments
>900 companies analyzed, 14 investments
 Deal sources
– Scientific Advisory Board
– Investment peers
– Professional network
– Scientific venues
 Global deal screening
– 47% USA
– 32% Europe
– 21% Rest of world
 Nextech invests based on
– Scientific concept
– Management track record
– Matching investor syndicate
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“We [Nextech’s SAB] operate as a group of collegial experts with highly complementary
areas of expertise. Our most important responsibility is to identify and evaluate current
scientific developments that have the potential to result in game-changing effects on
cancer therapeutics. We recommend the very best of these opportunities to Nextech.”
David Livingston, Chairman of SAB, Nextech Oncology Funds
CONFIDENTIAL
II. Portfolio construction and investment process
Value creation in oncology
1 – 3 years
Avg 1.5
years
Avg 6.7 years
Pre-clinical
IND*
Phase I
Phase II
NDA/
BLA*
Phase III
Commercial
Value increase
Main «exit window»
in oncology
3 – 5 years horizon
Value
inflection
Graphic is for illustration purpose, not to scale
0
2
4
6
8
10
12
14
Years
 The highest value increase of oncology assets occurs
during Phase I and/or Phase II clinical trials that show
early efficacy
 The sweet spot of Nextech Invest ( ) is to invest shortly
before the main value increase leading to a 3 – 5 years
holding period per company
* IND: Investigational New Drug: regulatory application necessary for human trials; NDA/BLA: New Drug Application/Biologics License Application: Regulatory application necessary
for commercialization
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CONFIDENTIAL
II. Portfolio construction and investment process
Investment process
Screening





Technology
Pathway/Target
Indication
Team
Investors
Due diligence






Science/Concept
Team
Investors
Intellectual property
Clinical study design
Finance and terms
120*
Investment
 Term sheet
negotiations
 Valuation
 Investor syndicate
 Corporate
governance
20*
3-4*
Portfolio
 Active assessment of
progress and strategy
 Annual review
including SAB
 Business and
strategic support
Exit
 Support M&A and
IPO activities
 Connect to potential
acquirer
12-16 (total)
Board representation
3 step due diligence process
Step 1
Nextech, 1 SAB member
Step 2
Nextech, all SAB members
Step 3
2 – 3 SAB members
 Written report
– Scientific concept
– (Pre-) Clinical data
– Team
– Competitive landscape
 Written report
– Scientific concept
– Clinical study design
– (Pre-) Clinical data
– Product potential
– Exit strategy
 1.5 hours call with target
company to test scientific
rigor, quality of the team,
current results and
development plan
* Average number of companies per year
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CONFIDENTIAL
II. Portfolio construction and investment process
Strong syndication partners
Selection of recent syndicate partners
Alta Partners MacroGenics, Sunesis
Bay City Capital Sunesis
Orbimed Agensys
JAFCO Agensys, Tracon
Lombard Odier Sunesis
Biotech Value Fund Blueprint Medicines
Novartis Bioventures ImaginAb
Amgen Ventures TetraLogic
Pfizer Ventures TetraLogic
Clarus Ventures MacroGenics, TetraLogic
Arcus Ventures MacroGenics, Tracon, Palyon
Boehringer Ingelheim MacroGenics
MPM MacroGenics
Third Rock Ventures Blueprint Medicines
Fidelity Bioscience Blueprint Medicines
The Column Group Peloton Therapeutics
Topspin Fund Peloton Therapeutics
EcoR1 Capital Kura Oncology
Remeditex Peloton Therapeutics
Fidelity Investments Kura Oncology, Jounce Therapeutics
Arch Ventures Kura Oncology
Wellington Management Jounce Therapeutics
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CONFIDENTIAL
III. Portfolio companies
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CONFIDENTIAL
III. Portfolio companies
Company portfolio
Exit
Portfolio
Portfolio
Portfolio
IPO
Exit
Exit
Agensys Pharmaceut., Inc.
Santa Monica, USA
Invested: 2007
Acquired: 2007 by Astellas
MolecularMD Corp.
Portland, USA
Invested: 2012
ImaginAb, Inc.
Inglewood, USA
Invested: 2012
Palyon Medical Corp.
Santa Clarita, USA
Invested: 2009
Currently in liquidation
Blueprint Medicines Corp.
Cambridge, USA
Invested: 2014
IPO: 2015
Ganymed Pharmaceut., Inc.
Mainz, GER
Invested: 2007
Acquired: 2008 by ATS
Telormedix AG
Bioggio, CH
Invested: 2009
Sale of shares: 2011
Partial write-down
Antibody platform
Clinical phase I
Genetic biomarker
On market
Tumor imaging
Clinical phase II
Implantable pumps
In man
Small molecules
Pre-clinical
Antibodies
Pre-clinical
Small molecules
Clinical phase I
Reverse merger
Partial exit
IPO
Portfolio
IPO
Kura Oncology Inc.
La Jolla, USA
Invested: 2015
Reverse merger: 2015
Sunesis Pharmaceuticals, Inc.
San Francisco, USA
Invested: 2009
Partial sale of shares: 2010
2012
2014
Small molecules
Tracon Pharmaceuticals, Inc.
San Diego, USA
Invested: 2011
IPO: 2015
Peloton Therapeutics, Inc.
Dallas, USA
Invested: 2014
Antibodies
Clinical phase II
Small molecules
Clinical phase I
Small molecules
Clinical phase II
Clinical phase III
Portfolio company (Private)
Successful exit
Write-down
IPO or public company
Page 17
Partial exit
IPO
Portfolio
MacroGenics, Inc.
Rockville, USA
Invested: 2011
IPO: 2013
Partial sale of shares: 2014
TetraLogic Pharmaceut. Corp.
Malvern, USA
Invested: 2011
IPO: 2013
Jounce Therapeutics, Inc.
Cambridge, USA
Invested: 2015
Antibodies
Clinical phase II
Small molecules
Clinical phase II
Antibodies
Pre-clinical
Most investments in the U.S.
CONFIDENTIAL
IV. Team and organization
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CONFIDENTIAL
IV. Team and organization
Unique partnership with SAB
Long-term partnership with Scientific Advisory Board (SAB)
Experienced executive Nextech
Invest management
Experts in private equity, global
pharma and finance
9 years of
continuous
partnership
6 member exclusive
Scientific Advisory Board
World leading scientists and drug
developers in oncology
The Scientific Advisory Board of Nextech Invest has a long-term relationship with the management team, a unique
partnership with intense, unbiased, frank knowledge exchange between the two sides. The SAB members are
exclusive to Nextech Invest and as such do not advise other private equity companies. All SAB members are world
renown key opinion leaders in the field of oncology. The nine year personal relationship and financial participation
and commitment in the funds enforces the alignment between the interest of the investors of Nextech Invest and
the members of the Scientific Advisory Board.
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CONFIDENTIAL
IV. Team and organization
Scientific Advisory Board
World renown key opinion leaders in oncology
David M. Livingston, MD, Chairman of the Board
Deputy Director, Dana Farber Cancer Institute / Harvard Cancer Center
Harvard Medical School, USA
Member of the U.S. National Academy of Sciences and the U.S. Institute of Medicine
Karl-Heinz Altmann, PhD
Sir Bruce A.J. Ponder, PhD
Professor of Pharmaceutical Sciences
Swiss Federal Institute of Technology (ETH)
Zurich, Switzerland
Head of the Department of Oncology and
Director of the Cambridge Cancer Center
University of Cambridge, U.K.
Fellow of the Royal Society
Glenn Dranoff, MD, PhD*
Charles L. Sawyers, MD
Professor of Immunology
Harvard Medical School, USA
Am. Society for Clinical Investigation
Chair, Human Oncology Program
Memorial Sloan-Kettering Cancer Center, USA
HHMI** Investigator
U.S. National Academy of Sciences
William G. Kaelin, MD
Paul Workman, PhD
Professor of Medicine
Harvard Medical School, USA
HHMI** Investigator
U.S. National Academy of Sciences
CEO and President
Institute of Cancer Research (ICR), U.K.
Professor of Pharmacology and Therapeutics,
University of London, U.K.
* Glenn Dranoff left the SAB end of Feb 2015 due to another job assignment, candidate identified; ** HHMI: Howard Hughes Medical Institute
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CONFIDENTIAL
IV. Team and organization
Scientific Advisory Board experience
Industry experience and knowledge of the SAB
SAB company engagements
 Strong background in
world leading pharma
companies as well as
successful biotech startups
 Crucial contribution to
discovery and
development of multiple
blockbuster cancer drugs
 Active engagement in the
advisory boards of more
than 15 biotech
companies including
Agios, Peloton*, Seragon,
Blueprint*, and Tracon*
* Nextech Invest portfolio companies
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CONFIDENTIAL
$16bn annual sales of drugs with
SAB contribution
IV. Team and organization
Investment management
Experienced investment management team
Alfred Scheidegger, PhD
Thilo Schroeder, PhD
Kristina Kakalacheva, PhD
Roland Ruckstuhl, CPA
Founding Partner & CEO
Partner
Associate
CFO of Nextech Invest Ltd.
16 years private equity
15 years global pharma
Harvard Business School (TGM)
3 years private equity
5 years entrepreneur
5 years experience in research
University of Zurich
1 year private equity
5 years experience in research
University of Oxford, University of
Zurich
29 years auditor, Ernst & Young
University of St. Gallen
Key responsibilities:
Deal sourcing, deal structuring,
business assessment, board
representation, investor relations
Key responsibilities:
Deal sourcing, deal structuring,
scientific analysis, board
representation
Key responsibilities:
Scientific analysis, deal
structuring, compliance, fund
management
Key responsibilities:
Finances, accounting, controlling,
compliance
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CONFIDENTIAL
IV. Team and organization
Financial, strategic and scientific expertise
Senior and experienced advisors
Thomas Lips, PhD
Sinikka Demaré, CFA
Marina Shargorodska
SAB
Partner
Strategic Advisor
Strategic Marketing
Scientific Advisory Board
33 years banking and asset
management
20 years CEO and CIO
UBS, Goldman Sachs, AIG PB,
Centrum Bank
Global business and institutional
investment management
Advisor for asset allocation, risk
management, and structured
finance
10 years in biotech and asset
management industries
Global business development and
strategic collaborations
>200 cumulative years in cancer
research & drug development
Key responsibilities:
Business assessment, legal,
fundraising, finance, asset
management
Key responsibilities:
Fundraising, finance, risk
management, strategic
management
Key responsibilities:
Fundraising and establishment of
partnerships in developed and
emerging markets
Key responsibilities:
Scientific investment strategy, due
diligence of science and clinical
development, deal sourcing
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CONFIDENTIAL
>1’900 scientific publications
IV. Team and organization
Nextech Invest Ltd.
Specialist investment advisor in oncology - Worldwide
Headquarter
Zurich, Switzerland
Founding year
1998
Previous investment fund
 Nextech I Emerging Technologies (1999 – 2011) | CHF74m, Delaware registered
Active investment funds
Investors
 Nextech II Oncology (2006)
| €41.4m, Jersey regulated
 Nextech III Oncology (2010)
| €34.6m, Swiss FINMA regulated
 Nextech IV Oncology (2014)
| $40.1m ($100m targeted), AIFM regulated
Institutional, asset management, strategic, private, family office, cancer foundation
“Through its experienced team and distinguished Scientific Advisory Board, Nextech understands oncology. As one
of their portfolio company CEOs, I appreciate Nextech’s investment well beyond their financial commitment.”
Scott Koenig – President & CEO, MacroGenics, Inc.
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CONFIDENTIAL
Nextech Invest Ltd.
Scheuchzerstrasse 35
8006 Zurich
Switzerland
Phone +41(0)44 366 66 11
[email protected]
www.nextechinvest.com
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CONFIDENTIAL