April 2005 How Patients Can Benefit From Molecular Imaging Paula M. Jacobs, Ph.D Vice President Advanced Magnetics, Inc

April 2005 How Patients Can Benefit From Molecular Imaging Probe basic biological and disease processes in animal models –Identify therapeutic targets –Identify prognostic factors Provide new clinical imaging agents for –Diagnosis –Therapeutic stratification –Monitor response to therapy

April 2005 MR Agent Development $50 M minimum and at least 10 years to develop a single diagnostic indication Reimbursement now around $45/dose Might be able to charge $ /dose About 1 million patients a year to even think about breaking even Example: 10-12,000 new high grade glioma patients each year

April 2005 Barriers to clinical availability of imaging agents Small potential patient populations but ever increasing regulatory requirements Expensive pre-clinical & manufacturing investment before trials Unpredictable regulatory climate Difficult reimbursement climate  Poor commercial viability

April 2005 What can we do to make these targeted imaging agents available to small but important patient populations?