Hazards of Biotechnology Investing

1
Hazards of Biotechnology Investing

• The Biomedical Sciences Group
• The future of technical analysis for medical
  biotechnology
• Michael Mayne, PhD
• Director of Scientific Research
• The BioMedical Sciences Group

www.thebmsgroup.com
2
An Expanding Sector

• There are 350 biotech drugs currently in clinical
  trials targeting 200 diseases
• US biotech companies spent almost 11 billion in
  2000 on RD
• The FDA approved 32 drugs or vaccines for
  treatment in the year 2000
• Financing within the biotech industry reached 40
  billion in 2000

3
Understanding Biotechnology

• Investment in a confusing industry
• Science behind these products is highly
  specialized thus, expert opinions are difficult
  to obtain
• Understanding the medical needs is also difficult

4
Chesapeake PERL

• Huge markets for purified proteins
• Protein production using larvae
• Potentially cut production costs
• Proteins made in an eukaryotic cell thus
  potentially biologically relevant product
• Alternative sources
• Proteins generated using bacteria or animals
• Gene therapy
• Antibodies
• Drugs

5
Why are proteins so important?

• Treatment of several human diseases where
  proteins are mutant or malfunctioning
• Vaccination of infectious disease
• Protection against effects of aging (Alzheimers)
• Examples of proteins used clinically
• Insulin Interferon beta
• Interleukin 2 Amyloid beta (potential)

6
Potential Hazards of Investing in this technology

• Is the protein biologically active?
• post-translational modification
• activity in human systems
• cell or tissue entry

7
Beyond the science

• Medical need and acceptance
• Marketing
• Policy

8
How BMSG Addresses These Issues

• Provide biotechnology investment a rational
  foundation
• Produce unbiased opinions on research, medicine
  and policy to reduce investment risk

• Basic Science (Ph.D.s)
• Clinicians (M.D.s)
• Market/Policy experts
• Experts are drawn from academia

9
Our Review Process

• Basic Scientific Review
• Clinical Assessment
• Medical Applications and Acceptance
• Market Viability and Competition
• Policy

10
Conclusion

• Biotechnology represents an evolving and
  currently a high risk investment
• Full understanding of the science behind the
  product strengthens investing
• Clinical and regulatory factors need to be
  considered

11
Bioinformatics Due Diligence services BMSG and
the Adrenaline Group
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