1. US-Swedish Life Science Relations: Context Setting Swedish-American Life Science Summit Stockholm, Sweden 21 August 2008

2. Beyond Borders2 Financing by type Global financing reaches second-highest total on record Source: Ernst & Young, BioCentury, BioWorld and VentureOne

3. Beyond Borders3 Financing by geography Global financing reaches second-highest total on record Source: Ernst & Young, BioCentury, BioWorld and VentureOne

4. Beyond Borders4 US financing: regional distribution Capital raised by leading US regions in 2007

5. Beyond Borders5 European financing: regional distribution Capital raised by major European countries in 2007

6. Beyond Borders6 Behind the numbers: shrinking IPO returns More money in … Source : Ernst & Young analysis of company financial statements 0 20 40 60 80 100 120 140 1997Recovery (2002-2003) "End of windows" (2004-2007) US$m Avg pre-IPO investment

7. Beyond Borders7 Behind the numbers: shrinking IPO returns More money in … and relatively less money out Source : Ernst & Young analysis of company financial statements 0 20 40 60 80 100 120 140 1997Recovery (2002-2003) "End of windows" (2004-2007) US$m Avg pre-IPO investmentAvg pre-money preferred stock valuation at IPO

8. Beyond Borders8 Behind the numbers: shrinking IPO returns More money in … and relatively less money out Source : Ernst & Young analysis of company financial statements 0 20 40 60 80 100 120 140 1997Recovery (2002-2003) "End of windows" (2004-2007) US$m Avg pre-IPO investmentAvg pre-money preferred stock valuation at IPO 2.16x1.60x1.55x

9. Beyond Borders9 Behind the numbers: the valuation gap CompanyAcquirerValue (US$ million) AgensysAstellas537 AdnexusBMS505 RinatPfizer478 DomantisGSK454 IllypsaAmgen420 GlycofiMerck400 AvidiaAmgen380 IllumigenCubist341 AlantosAmgen300 Average value of “IPO-ready” company acquisitions: $425 million Average pre-money IPO valuation: $150-160 million Selected acquisitions of private “IPO ready” companies, 2006-2007 Source: Ernst & Young

10. Beyond Borders10 Uncertain public equity markets Most companies are planning on M&As or dual tracking for exits … Source: Ernst & Young company survey. Chart does not include companies not planning exits, or planning exits other than IPOs or M&As.

11. Beyond Borders11 Uncertain public equity markets … and those considering IPOs don’t expect the markets improve soon Source: Ernst & Young company survey. Chart only shows companies that are planning IPOs.

12. Beyond Borders12 US deals: mergers and acquisitions Record-breaking M&As, led by a mega deal Source: Ernst & Young, BioWorld, Recombinant Capital and Windhover

13. Beyond Borders13 US deals: mergers and acquisitions adjusted for mega deals Record-breaking M&As, led by a mega deal Source: Ernst & Young, BioWorld, Recombinant Capital and Windhover

14. Beyond Borders14 European deals: mergers and acquisitions European M&A values scale historic heights Source: Ernst & Young, Windhover, BioWorld, Recombinant Capital and company news (through Newsanalyzer)

15. Beyond Borders15 US deals: alliances Strategic alliances boomed in 2007 Source: Ernst & Young, BioWorld, Recombinant Capital and Windhover

16. Beyond Borders16 European deals: alliances European alliances show strong growth Source: Ernst & Young, Windhover, BioWorld, Recombinant Capital and company news (through Newsanalyzer)

17. Beyond Borders17 European deals: alliances by country European alliances by country, 2007 Source: Ernst & Young, Windhover, BioWorld, Recombinant Capital and company news (through Newsanalyzer) 0 10 20 30 40 50 60 70 80 90 Number of alliances Value (€b) Number of alliances