GLYCART Biotechnology AG From Inception to the Sale to Roche Group

1
GLYCART Biotechnology AGFrom Inception to the
Sale to Roche Group

• Joël Jean-Mairet, PhD
• biospain biotec 2006
• Madrid 20 September 2006

2
Company EvolutionSnap Shot

• Initiated clin. trial first patient receives
  next-generation molecule
• Roche Group acquires GLYCART for 150
  million (July 2005)

2005
3
Field Specific Background

• Now over 17 marketed antibodies in the US
• Clinical validated concept
• Fastest and cheapest way to market a drug
• Increasingly valuable as new disease targets
  proliferate
• Some 300 Antibodies in development
• Global market is projected to increase to
  13.5 bn in 2008

4
GlycoMAb TechnologyMore Efficient Recruitment
of Immune Killer Cells
GlycoMAb boosts this natural mechanism of action
5
GlycoMAb TechnologyOverview

• Increased binding to a specific receptor a
  key step in Antibody Dependent Cellular
  Cytotoxicity
• No impact in pharmacokinetics
• Flexible in choice of pathway for
  implementation existing production cell
  lines or new cell line
• Robust production process
• Cell growth and MAb productivity are not
  affected
• Solid intellectual property position

6
Corporate Strategy

• Focus on clinically validated targets
• Start with best possible and clearly
  differentiated molecule from day one
• Non-core tasks outsourced
• Technology validation by selective partnering
  PoC
• Carefully limit the availability of the
  technology keeping all in process IP and key
  materials in-house

Integrated antibody development company from
target to early clinical trials
7
Two Antibody LeadsClinically Validated Targets
Development Phase
Preclinical pipeline targeting clinically
validated antigens
Lead
Optimization
Preclinic
I/II
IIb
III
generation
GA101
2006
Humanized antibody
GA201
2006
Humanized antibody
GA301
2006
Humanized antibody
Two proprietary antibodies to enter into the
clinic in 2007
GA401
2006
GA501
2006
8
Value PropositionProspective VCs or Potential
Acquirers

• Unique technology to enhance potency of
  antibodies
• Potential reduction of attrition rate
• Proprietary pipeline with two lead compounds
• Solid IP
• Potential impact in life-cycle management via
  patent extension
• Credible Management, achieving milestones since
  inception

9
Original Financial Plan
Seed round
2 mio
Bridge
1.3 mio
Series A
12 mio
Series B
30 mio
10
Trade Sale ProcessMain Objectives of GLYCART
Consideration
Objective

• Price Obtain the highest possible share
  price
• Fit / future stage Partner that understands
  the business and able to give the
  additional scale
• Timing 45 days to new offers, 90 days to
  completion
• Confidentiality No leakage into public
  domain of intended transaction, to ensure
  security of current offer
• Secure current offer Maintain the interest
  of current party and achieve highest price
  with lowest earn out component
• Stakeholders Take into account stakeholder
  objectives (e.g. employees)

11
Alignment of Interested PartiesA Key Success
Factor
Combined process front runner with limited
auction

• Manage expectations and timelines of interested
  parties
• Goal was to close deal within 90 days
• Initially a 30 million Series B round private
  placement was run in parallel
• Strong support from current shareholders
  parallel negotiations for convertible bridge loan

Front runner
Other parties
Preparation
2-3 weeks
Gathering of information and structuring of the
process
Phase 1
Phase 1
2-3 weeks
3-4 weeks
Continue discussions with front runner
Contact other potential buyers non-binding bids
Phase 2
Phase 2
4 weeks
4 weeks
Exclusive due diligence subject to competing
offers
Due diligence (1-3 parties)
Phase 3
Phase 3
2 -3 weeks
2 -3 weeks
Final discussions and negotiations SPA
Final discussions and negotiations SPA
12
Transaction Process Completed in less than three
months
Number of parties in the process
1
8
5
4
2
16
1
Non binding offers
----------------- Negotiations--------
CDA
Confirmatory due diligences
Preliminary due diligences
Providing information
Teasers (blinded)
Finalise SPA
Full info pack with procedure letter
Select PIPs
Tension
Signing/ closing
Selection MA advisor
22/04/05
05/05
06/05
18/07/05
07/05
Timing
Number includes the frontrunner
13
Critical Success Factors

• Unsolicited offer
• Distinctive technology and compelling product
  pipeline
• Interests of shareholders and management fully
  aligned
• Selection of investment bank
• Strict process management and data-room quality
• No earn-out and exclusivity
• Total commitment and trust between all deal team
  members

14
History from Start to Start
1996
1997
1998
1999
2000
2001
First Proof
Start Operations
Venture
Start Research
Of Concept
2000
International
Top 10
Patent
Appl
.
Provisional
US Patent
Appl
.
Technology
2
Validation
nd
3
Validation
rd
Transfer
Business Plan
Seed Round
15
GLYCART TeamThanks!
Ackermann Daniela Ast
Oliver Brünker Peter Buholzer
Patrick Carle Anna Emmenegger
Andreas Faccin Erica Ferrara
Claudia Forcellino Laurianne Gerdes
Christian Grau Roger Grau
Sandra Guarino Barbara Herbez
Valentin Hervé Karine Holenstein
Fabian Jäger Christiane Jean-Mairet
Joël Karg Saskia Lutz Seraina
Martínez JuliaMoser Samuel Mössner
Ekkehard Nopora Adam Patre
Monika Püntener Ursula Rüegg
Priska Schmidt Carla Sondermann
Peter Späni Manuel Suter
Tobias Thöni Sarina Umaña
Pablo Unsin Gabi van Puijenbroek
Erwin Vetterli Helen Wagner
Karen Wirth Simona Wittig
David Zabaleta Adriana
16
Gilde BioInnovaciones

• Gestora Gilde BioInnovaciones Management
  (Barcelona)
• Equipo gestor 3-4 personas con experiencia
  operacional y de inversión
• Tamaño del fondo 45 millones
• Enfoque Innovaciones en Healthcare (biotec,
  medtec, diagnósticos)
• Tamaño de la inversión 250000 - 5 millones
• Periodo 10 años (55)
• Tamaño del portfolio 10-15 inversiones
• Fase de inversión Early stage (incluyendo
  capital semilla)
• Area geográfica España
• Comienzo operativa Aprox. Q1 2007

joel.jean_mairet_at_yahoo.com