Demographics are compelling

• Estimates provided by the United Nations project that the 60+ population will reach 1.9 billion by 2050 - 22% of the total population
  
  
• Demographic shift spells an increase in the demand for pharmaceuticals
  
  
• 2003 pharmaceutical sales exceeded $429 billion
  
  
• Mergers and patent expirations in big pharma create the need for robust pipelines and the need to in-license compounds

Drugs make sense

• Intervention with therapeutics prevents other more expensive treatments
• Surgeries
• Long-term care
• Long hospital stays
• Medical devices
• Psychiatric wards
  
  
• Drugs enjoy high margins and long product cycles
  
  
• Functional genomics will produce many new targets
  
  

The industry is maturing

• More than 160 biotech products have been approved by the FDA and are on the market
  
  
• 734 biotechnology drugs were in human clinical trials in 2003
  
  
• Ever-growing percentage of companies becoming profitable and attaining critical mass
  
  

As an investment - what do we look for?

• Broad-based proprietary technology platform
• Strong intellectual property position
• Novel technology
  
  
• Products that address major market opportunities (large unmet needs)
  
  
• Management team that is scientifically grounded yet practical
  
  
• Clear strategy for commercialization of products
  
  
• Attractive valuation on risk/reward basis