Download pdf - Sofinnova Partners picks up €260m for sixth fund

Sofinnova Capital VI – 2010 TrendsJanuary 26, 2010

Agenda

� Welcome

� Where we are today:

2009 activity and Sofinnova Capital VI

Breakfast Presentation: January 26, 2010

Confidential

2

� Where we’ve been:

a review of investment activity since 1989

� Where we are going:

2010 trends

� Q&A

WELCOMEWELCOME

Sofinnova Partners

� Denis Lucquin, Managing Partner (LS)

� Antoine Papiernik, Managing Partner (LS)

� Monique Saulnier, Managing Partner & CFO


Confidential

4

� Jean Schmitt, Managing Partner (IT)

� Jean-Bernard Schmidt, Managing Partner

� Graziano Seghezzi, Partner (LS)

� Olivier Sichel, Partner (IT)

� Rafaèle Tordjman, Partner (LS)

WHERE WE ARE TODAY

2009 AND SOFINNOVA CAPITAL VI

“We foresee strong M&A activity in 2009for our portfolio companies:technologies making a real differencefor patients or for customers will alwaysbe valuable — such is the beauty of


Confidential

be valuable — such is the beauty ofventure. This proves the non-correlationof venture to the rest of the economy.”

Denis Lucquin, Managing Partner and ChairmanMarch 24, 2009

6

Page 7Sofinnova Portfolio DevelopmentsDeal Activity and Exits of 2009

Feb 09 (SK IV): Sofinnova of Corevalve (EV 700m$ + milestone

payments)

Feb 09 (SK V): Esmertec merges with Purple Labs forming Myriad,

Europe’s largest mobile phone software company .

Dec 09 (SK V): Movetis to IPO – 3 years after investment. Sofinnova is

largest shareholder and founding investor.

Sept 09 (SK IV): Sofinnova Exit of Fovea (EV 370m€ incl. milestone

payments)

Q1 10: IT Company sold

Value Creation

MERGER

Dec 09 (SK IV): Sofinnova Exit of Novexel (total cash consideration of $505 million, including earn out

payments of $75 million)

Company X

Jan Aug SepFeb Mar Apr JulMay Oct Nov Dec

Capital Deployed

Jun

June 09 (SK VI): Sofinnova VI invests €2.88m in DNP Green Technology

June 09 (SK VI): Sofinnova VI invests €6.16m in CoAxia

June 09 (SK VI): Sofinnova VI invests €4.70m in Flexion Therapeutics

Q12010

Aug 09 (SK VI): Sofinnova VI invests €2.8m in MD Start

Aug 09 (SK VI): Sofinnova invests €3.6 m in Crescendo Nov 09 (SK VI): Sofinnova

VI invests €1.50m in Celsius

OmtheraPharmaceuticals

Dec 09 (SK VI): Sofinnova VI invests €1.4m in Omthera

Sofinnova Capital VI� Closed December 31, 2009

� €260 million ($370 million)

� Target was €300 million

� Already committed to date: 40% to 50% in ten companies


Confidential

� LPs include: CDC Entreprises within the France Investment

program, Industrial & Financial Investments Co., JP Morgan

Asset Management, funds advised by Partners Group and

Skandia Life Insurance Company

� Sofinnova Partners continues to be recognized by its investors

for its solid investment style and capacity to generate strong

returns, even during turbulent economic times.

8

WHERE WE’VE BEEN

INVESTMENT ACTIVITY SINCE 1989

Sofinnova Partners:Solid Investment Style

� Early-stage, spin offs and restarts are the area of investment

focus

� IP rich technologies


Confidential

� Biopharmaceuticals, medical devices, green chemicals,

wireless, mobile internet

� Europe & USA

� Repeat entrepreneurs and experienced management

� No « me too » investments

10

WHERE WE ARE GOING

2010 TRENDS

What Does Sofinnova Partners’ Success Mean for The VC Industry in Europe?� Alive and kicking!

� M&A will continue to feed corporate growth


Confidential

� IPO window is reopening

� Early-stage investment strategy works

� Consistent investment in innovation transcends economic

fluctuations

� « Back to basics»: invest only in exceptional companies

12

2010 Trends: Mobile InternetTHE NEXT GENERATION OF INTERNET, MAY BE EVEN MORE POWERFUL THAN FIXED INTERNET

� With new ways to search:


Confidential

� New advertising model:

� And key software browsers/multimedia:13

Blyk

2010 Trends: The Mobile Backhaul Issue

MOBILE NETWORKS ARE ABOUT TO MOVE TO FULL IP


Confidential

� Needs network intelligence:

� And policy management:14

2010 Trends: The New Digital Frontier

DIGITALIZATION WILL BRING NEW INNOVATIONS

� Choosing your home in 3D:


Confidential

� Working together:

� Listening to music:

15

2010 Trends: The New User Interface

� Everything becoming more tactile:


Confidential

� Bringing Convenience and Security:

� Bringing security:

16

2010 Trends: Convergence of Brandsand Technology

PIONEERED BY EUROPEAN INNOVATION

� New brands with radical innovations and vision:


Confidential

� And a place where design counts:

17

05

101520253035

2002 2003 2004 2005 2006 2007 2008 2012

2010 Trends: VaccinesGrowthGrowth Old technologyOld technology

2002 2003 2004 2005 2006 2007 2008 2012 [E]

Copyright © 2006 Sofinnova Partners

Future InnovationFuture Innovation

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Bir

ths

per

year

(m

)2008 2018

Seven major markets BRIC countries

BRIC: Brazil, Russia, India, China

$BINFECTIOUS DISEASE

BacterialViral

PROPHYLACTIC VACCINES

SHIFT

CHRONIC DISEASE

CancerDiabetes

Alzheimer’s Disease

THERAPEUTIC VACCINES

18

GrowthGrowth

$B

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

2002 2003 2004 2005 2006 2007 2008 2009 2012 2014

2010 Trends: Antibodies

Murine Chimeric Fully HumanHumanizedMurine Chimeric Fully HumanHumanized

30-35

60-65

5-10

90-95 100

100Murine %

Human %

Murine Chimeric Fully HumanHumanizedMurine Chimeric Fully HumanHumanized

30-35

60-65

5-10

90-95 100

100Murine %

Human %

Past InnovationPast Innovation

2002 2003 2004 2005 2006 2007 2008 2009 2012 [E]

2014 [E]

NCE MAB

Copyright © 2006 Sofinnova Partners

Full-size antibody

Single-chain antibody (SCA)

Variable region ofLight chain (Vl)

Constant region ofLight chain (Cl) Antigen-binding

Fragment (Fab)

Variable region ofHeavy chain (Vh)

Constant region 1 ofHeavy chain (Ch1)

Future InnovationFuture Innovation

Mouse HumanMouse HumanMouse HumanMouse HumanMouse HumanMouse Human

19

2010 Trends: Disruptive Technologies in Medical Devices - Who Could be the next CoreValve?

� Perfusion augmentation therapies


Confidential

20

� Patented product to treat specific cardiac artery diseases and avoid open-chest surgery for hundreds of thousands of patients

�Nurturing companies at the seed stage: MD Start

2010 Trends: Green Chemistry Alternatives

�Biotech alternative to petrochemical routes


Confidential

21

routes

2010 Trends: Pharma Spin-offs

Evolution of the Pharma industry (rationalisation – concentration) will lead to spin-off opportunities

22

Q&AQ&A