European venture capital firm Sofinnova Partners has closed its sixth fund, Sofinnova Capital VI, on €260m, following what the firm describes as its most successful year. Investors in the fund include CDC Enterprises, Industrial & Financial Investments, JP Morgan Asset Management, funds advised by Partners Group and Skandia Life Insurance Company. Eight start-ups and spinoffs have already been invested in by Sofinnova Capital VI. These deals include Celsius, CoAxia Inc, Crescendo Biologics, DNP Green Technology Inc, Flexion Therapeutics, MD Start, Mydeco and Sagem Wireless.

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