Continued Rebound:Trends in Life Science M&ATrends in Life Science M&ASilicon Valley BankJuly 2012

Written By: yJonathan NorrisManaging Director650.926.0126jnorris@svb.com

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Agenda • Part I:Overview of 2011 Big ExitsAgenda Part I:Overview of 2011 Big Exits• Part II: Analysis by Indication

o Series A Investment by Indication between 2005 and 2011

o LPI and Hit Rate – Measuring Indication Performance in the Life Science Industry

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Overview of Big ExitsOverview of Big Exits

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M&A Big Exits Per Year (2005-2011)g ( )

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Total Big Exit Dollar Volumeg

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Average Time to Exitg

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Biotech Deal Typeyp

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Biotech Big Exitsg

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Biotech Structured Deal Breakdown

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Biotech Breakdown by Stage, Round, Years to Exity g , ,

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Biotech Upfront Payments by Stage in Structured Deal Era (2009-2011)( )

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Device Big Exitsg

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Device Structured Deal Breakdown

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Device Stage Breakdowng

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Device Capital Efficient Exits by Multiplep y p

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Analysis By Indicationy y

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Life Science Series A Data

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Biotech Series A Data

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Device Series A Data

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Life Science Investments by Indicationy

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Indication Breakdown: Biotech

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Indication Breakdown: Med Device

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Biotech Indication Performance Data

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Device Indication Performance Data

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Disclosures

This material, including without limitation the statistical information herein, is provided for informational purposes only The material is based in part upon information from third-partyinformational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific

f i l d i b f ki i t t d i i N thi l ti t th t i lprofessional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

U.S. VC-backed Service companies were included under the device category. Services t d l th 10 t f ll d l i thi t R ti l f i l direpresented less than 10 percent of all deals in this category. Rational for including

Services was to try and capture as much U.S. LS Venture investment as possible -creating an additional category with a small data set did not make sense.

©2012 SVB Financial Group All rights reserved Member Federal Reserve System©2012 SVB Financial Group. All rights reserved. Member Federal Reserve System. SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley Bank are registered trademarks. B-12-12265. Rev. 07-16-12.

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