Bio Magnetics

1
Bio - Magnetics

• Micro and Nano Handling

2
The Company

• In 2004 BM signed a development contract with
  Festo, a worldwide supplier of industrial
  automation with locations in over 50 countries.
• In 2005 2006 working robotic prototypes were
  completed, additional patents were filed and a
  unique patented disposable plastic "Tip" went
  into production.Festo becomes our partner in
  robotics and tips.
• Hand Held devices, targeted to Lab Automation,
  were developed commercialized with BMs own
  resources.

3
Magnetic Separation
Magnetic separation is a quick, easy and
inexpensive method for sensitive and reliable
capture and separation of genetic material and
other molecules.
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Magnetic Particles

• Magnetic particles are made by many major
  companies such as Merke, Dynal/Invitrogen,
  Promega and Agencourt. New particles are
  developed continually.
• New particles are developed continually.
• Prices of magnetic particles are dropping
  constantly.
• There is no need for FDA approval for BM products.

5
The Total Market

• Novel Separation Market The U.S. market for
  biotech separations was estimated at 3 billion
  in 2006. This market is projected to increase to
  5 billion by 20111.

1 Business Communications Company Inc. Source
Industry Figures Jan 2004
6
Market

• The Magnetic Particle market was estimated at
  330 million in 2002 and approximately 530
  million in 2005.2
• 
  
  Dynel buys Invitrogen for
  300 m
• Pipettes Market- The total global market
  potential for pipettes and disposable pipette
  tips is over EUR 700 million (approximately 840
  million)3.

2 Business Communications Company Inc 3 The
information derive from www.biohit.com
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Market Challenges

• Laboratory facilities for DNA separation and
  sequencing are growing rapidly.
• Classical methods for separation have high costs
  and take a long time.
• Laboratories have a great need for high
  efficiency and fast separation techniques.

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BMs Solution

• BM technology allows labs all over the world to
  conduct tests they could never afford.
• Labs can complete their tests with significant
  savings of both cost and time.

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Current technology magnet activation under
well plate
Magnet
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BM technology moves particles out of wells and
combinatorial
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BM Technology

• Combinatorial Magnetic Separation (CMS) allows
  the user to select and move any combination of
  desired magnetic pins into standard well plates.
• Tip technology that can achieve over 99 of the
  retention of the Magnetic particles.
• FLIP FLOP BMs unique washing and purification
  technology.
• Hand Held devices for MS and LH.

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Automated products work with any customers
existing robotics
The Products

• CMS allows the user to select and move any
  combination of desired magnetic pins into a
  standard 96 and 384 well-plates.
• The Flip-Flop (FF)- a stream of magnetic
  particles in a static liquid providing a unique,
  efficient method of washing particles.

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The Products Hand Held Devices

• Magnetic Separation device for 8
  and/or 16 magnets enables the isolation of
  magnetic particles.
• Magnetic Separation device with one magnet.
• A Pipettor with 8 and/or 16 channels.

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The Products Ultra thin disposable plastic
Micro plates and "Tips"
BM has developed a method for manufacturing an
ultra thin Tip and Micro plate. The Tips thin
membrane protects the magnets from adhering to
the magnetic particles, yet retains the very
strong magnetic field. BMs Ultra thin 30µ
(micron) tip gives more than 99.9 efficiency in
collecting magnetic beads - compared to a minimum
300µ thickness of competitors tips.
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Competitors / Potential Licensees...

• In recent years substantial effort and progress
  has been made in developing new separation
  methods using magnetic particles.
• Giant companies (Beckman, Roche, GE, Mitsubishi,
  Thermo and many more) are either in the field or
  planning to enter the market. Many can become
  customers, since BMs business plan is to license
  our technology to these corporations.

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Present Status

• A standard lab procedure was performed with a
  BM/Festo Prototype at a large working laboratory.
  Our CMS technology reduced, by over 60, the time
  it took for successfully completing the lab
  purification technique.

17
Currently in contact with large companies
regarding BM technology.
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Business Model

• BM has designed its products as either
  stand-alone machines or modular stations so that
  they can fit on existing Liquid Handling robots
  and instruments.
• BM intends to sell production-licensing rights to
  leading manufacturers and to work cooperatively,
  rather than competitively, with them.
• BM will sell customized disposable tips, through
  manufacturers and distributors.

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Science researchers use about 40,000 microplates
monthly (96 wells). Assuming every lab uses only
30 tips per microplate- 1.2 Million tips per year
per device are needed. According to PhorTech
International report
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Financial Forecast
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Bio - Magnetics
Thank you

• Please visit us at
• www.bio-magnetics.us

22

• About Israel global investment market

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Israel and the global investment market

• Over 70 Israeli companies are traded on the
  Nasdaq (the biggest outside N. America).
  
• Over 30 Israeli companies traded on European
  exchanges.
• 21 Israeli companies dual-listed on the Tel Aviv
  Stock Exchange and Nasdaq.

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There are many international Israeli companies
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ISRAEL
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The Israeli Biotechnology Market

• 160 companies (30 in therapeutics)
• 10 Public companies
• 4000 employees
• Market valuation 3.5 billion
• Market capitalization 2.7 billion
• Average of growth in companies 14
• Sales 800 million (incl.Copaxon sales)
• 75 of the companies employ less than 20 people

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Overview

• The Israeli economy is mature, stable and strong.
  The effects of the ongoing security unrest on the
  economy will be relatively mild and should not
  affect fundamentals.
• We are confident that the economy will survive
  the turmoil and continue to grow at an impressive
  rate in the coming years. Morgan Stanley Dean
  Witter Report, as reported in Haaretz, February
  14, 2001