Forum On Financing Biotechs: Partnering The Biotech Perspective May 15, 2002 Celia Courchene VP, Business Development Xenon Genetics Inc. The Biotech Perspective May 15, 2002 Celia Courchene VP, Business Development Xenon Genetics Inc. BC Biotech

Xenon Genetics – Background  Private genomics-based drug discovery/development company  Founded 1996 by Drs. Michael Hayden, Simon Pimstone & John Kastelein (all clinical scientists)  Based in Vancouver; expanded to Montreal through the acquisition of RGS Genome in 2000  Currently 100 FTE’s, including 33 MD’s, MD/PhD’s, PhD’s  Raised >$87 M to date, including $74 M in the mezzanine round in 2001 (Investors = Fidelity, Invesco, JP Morgan, Novo & Pfizer)  Experienced Management Team & Board

Xenon Genetics – Strategic Plan Near Term (2002) Mid Term ( ) Longer Term (2005+)  Integrated drug discovery company  Develop portfolio of high value drug targets and compounds  Forward integrate into pre-clinical and clinical development  Advance drug candidates to proof-of-principle in human trials  Genomics-based pharmaceutical company  Develop/market new drugs addressing unmet clinical needs

Xenon Genetics – Partnering Experience  Corporate – Pfizer License – ABCA1 gene for the development of small molecule therapeutics for elevating HDL-cholesterol Multi-year research funding  Academic – University of Wisconsin – McGill  Clinical

Xenon Genetics – Clinical Collaborations CANADA CVD, CNS 24 collaborations covering 35 distinct and informative populations ARGENTINA CNS NETHERLANDS CVD ITALY Metabolic BRAZIL CNS DENMARK CVD, CNS FRANCE CNS LEBANON CNS TURKEY Metabolic TUNISIA CNS SOUTH AFRICA Metabolic

Biotech Partnering – Objectives  Infancy – Access Technology (in-licensing) Academic institutions  Mid Life – Exploit Own Technology (out-licensing) Third Party Validation Pharma Wall / Bay Street Assist with financings Close private rounds Go public Cash for operations Build Infrastructure Access External Expertise Development & Marketing – Access Capabilities CRO’s  Mature – Build Pipeline (in-licensing)

Biotech Partnering – Deal Structures  Partnering structures can include: – Research collaborations – In licenses – Out licenses – Options – CRO Agreements – JVs / Partnerships – M&A – Spin out – Co-promotion –... (permutations & combinations of the above)

Biotech Partnering – Deal Structures  Deal structure dependant on & limited by: – Partnering Objectives – Market Therapeutic Market Disease indication Competitive products Product differentiation Partnering Market Potential partners Competitive products Product differentiation – Creativity

Biotech Partnering – Tips for Success  Choosing Your Partner  Preparation  Closing the Deal  Relationship Maintenance

Forum On Financing Biotechs: Partnering The Biotech Perspective May 15, 2002 Celia Courchene VP, Business Development Xenon Genetics Inc. The Biotech Perspective May 15, 2002 Celia Courchene VP, Business Development Xenon Genetics Inc. BC Biotech