Beacon VP Capital

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•  Beacon VP translates evidence-based scientific research insights into practical biotech investments

•  Backed by a research team of Harvard/MIT trained PhD’s and Post-Docs, Beacon VP identifies biotech investment ideas that help clients build portfolios to include drugs under FDA review

•  Our philosophy is: "The business value of small to mid-cap life science companies depends on the underlying science of its drugs. We assess its safety and efficacy, then buy low and sell high“

•  With a scientific priority, Beacon VP’s process explores every aspect of pre-market drug applications (i.e. clinical trial design, safety and risk assessment, and head-to-head drug comparison)

•  In the past 3 years, our research methodology has predicted FDA approval decisions with a success rate of 80% on 37 drug applications

•  21 investment ideas shared on Seeking Alpha with 100,000+ reads

•  In 2015, ranked as one of the top 100 experts by TipRanks.com

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FDA Pipeline Drugs

• 100 + drug applications received by the FDA each year

Qualify • 60 + potential targets meet our selection criteria and drug classes

Research

• 40 + unique investments each year • In-depth safety and efficacy analysis • In-depth head-to-head drug analysis

Meet • Evaluate relative attractiveness at final investment committee stage

Portfolio • 20 + investments each year • Monitor the portfolio for compliance with investment guidelines

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Analytical Method

Upcoming FDA events Research Framework Vetting Process Tactical Roadmap

Select key questions: •  Do these drugs meet our criteria? •  What factors do we consider? •  Will the FDA approve the

analyzed drug? •  What is the optimal

investment strategy?

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Strategy Z

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Information availability

Drug FDA event

Drug A 2/1/2015 Drug B 2/15/2015 Drug C 3/1/2015 Drug D 3/15/2015 Drug E 4/1/2015 Drug F 4/15/2015 Drug G 5/1/2015 Drug H 5/15/2015 Drug I 6/1/2015 Drug J 6/15/2015 Drug K 7/1/2015

Key information evaluated

•  Safety Data •  Efficacy Data •  Medical Indications & Size •  Drug Classes •  Drug Sectors •  Proprietary Framework

Based on Collective Intelligence

Criteria-Based filtering

Investment strategy

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Portfolio Construction

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Portfolio

Portfolio

Standard NDAs

BLAs

Biotech Stocks

Biotech ETFs

Resubmissions

NME NDAs

Step 1 Equity/ETFs Allocation

Step 2 Allocation-Drug Classes

Step 3 Allocation-Risk Factors

Market Risk

Drug Class/Sector

Company Size

Information Risk

NME = New Molecular Entity BLA = Biologics License Application NDA = New Drug Application

Portfolio Construction • Limited to no more than 10% per position • 20% stop loss per position based on acquisition price • No single drug class > 30% except standard NDAs • No single drug sector > 20%

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Buy / Sell Process

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Buy Sell Hold – FDA Review

• Scientific foundation is attractive

• Clinical data is complete and transparent • Market opportunity is relative to the current treatments

• Target price has been achieved

• Investment thesis has been changed due to new scientific data • FDA event has occurred

Evaluating Sell Decisions to Refine Our Investing Approach Going Forward • Track performance of all investments sold • Reassess sell decisions to further understand our reasoning and the outcome • Validate of our investment philosophy and process

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Risk Management

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Enhanced risk-adjusted returns rely upon a combination of stock selection, option hedging and rigid sell discipline

Stock Selection • We only invest in stocks that have met our Beacon VP strict scientific criteria and have passed our disciplined review process

Option Hedging / Trading • We sell covered calls against portfolio positions to generate additional premium income • We buy put(s) for portfolio positions to protect against severe downturn • We trade NASDAQ Biotech ETF (IBB) when market conditions dictate • We employ 20% stop losses on portfolio positions to provide downside protection Sell Discipline • We are called away • We are stopped out • We determine that the investment position is no longer consistent with our Beacon VP stock selection standards

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Beacon VP Compared to Other Strategies

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Beacon VP

Believes that business value of micro, small to mid-cap life science companies will depend on the underlying science of their drugs

Focuses on scientific evaluation and transparency of clinical data

Provides a greater diversification advantage by deploying the FDA-event driven strategy that has a less direct correlation to markets

Active / Index Management

Allows major benchmarks to define their strategies or attempts to identify mispricing in securities

Relies on forecasting techniques to pick securities and/or time markets. Reduces flexibility if tethered to a benchmark

Has a more direct correlation to markets

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Our Drug Review Record

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•  Figures based on 37 drugs over 36 months.

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Drug Sector # of Drug Analyized Predictive Accuracy

Cardiovascular 5 40%

Endocrine 6 83%

Gastrointestinal 3 67%

Genetic 1 100%

Hematology 3 100%

Infectious Diseases 3 100%

Metabolic 2 100%

Nephrology 2 100%

Neurology 2 50%

Oncology 6 83%

Respiratory 2 100%

Rheumatology 2 50%

Grand Total 37 80%

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Number of Drugs Per Sector

Cardiovascular

Endocrine

Gastrointes6nal

Gene6c

Hematology

Infec6ousDiseases

Metabolic

Nephrology

Neurology

Oncology

Respiratory

Rheumatology

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Stock Recommendations

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- - - Company was acquired by another firm.

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Stock Recommendations

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https://www.tipranks.com/bloggers/beacon-vp-investments As of March, 2016 •  Ranked 62th out of 4900 financial bloggers that Tipranks is tracking •  Ranked 151th out of 8650 experts that Tipranks is tracking •  Success Rate of 77% (where our recommendations were profitable) •  Average Return of 60.9% per recommendation

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Management

Manager: Shaw Saw, CIA, CMA, CFM

•  Founder of Beacon VP Consulting

•  10 Years of experience in corporate accounting

•  Certified Internal Auditor & Management Accountant

•  Harvard University Alumni

Manager: Raj Hazarika, MD

•  Board certified physician

•  Boston Consulting Group Alumni

•  Assistant Professor at UMass Medical School and Medical Director 

•  Master’s degree in Epidemiology from Harvard University

•  8 + Years Experience in Medicine & Management

Manager: Ty McGuire, MBA

•  5 years of experience in finance industry

•  4 years asset management experience at Wells Fargo and Wachovia 

•  Graduate of The University at Buffalo, DePaul University and Harvard University

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Raj Hazarika, MD (857) 205-1346 Raj@beaconvp.com  Rajhazarika@post.harvard.edu

Ty McGuire (704) 644-9456 Ty@beaconvp.com Ty.mcguire@post.harvard.edu

Shaw Saw (617) 682-9548 Shaw@beaconvp.com Shaw.saw@post.havard.edu

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Process

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•  Harvard & MIT trained PhD’s & Post-Docs with specialties in life science disciplines

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Breakout of PhD's and Post-Docs by Specialties Molecular

BioEngineering

CellularBiology

Endocrinology

Hematology

Immunology

Neurology

Oncology

Rheumatology

Toxicology

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Process

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Terms

Fund Terms

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Strategy BiotechEventDrivenStrategy

InvestmentManager BeaconVPCapital,LLC

FundCurrency USD

Subscriptions Monthly,SeparatelyManagedAccount(SMA)format

AcceptableAccountTypes Regular,Traditional,ROTH,SEP-IRAs,401KRollover,Trust

Redemptions Quarterly(45daysnotice)

MinimumInitialInvestment $250,000

ManagementFee(Annual) 2%

PerformanceFee 20%;greaterthan50%then30%performancefee

HighWaterMark Yes

MasterAdvisorAccount InteractiveBrokers

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Contact Details

Ty McGuire, Co-Founder & Managing Partner Beacon VP Capital

665 Washington 6th Floor

Boston, MA 02116

Telephone: +1 704 644 9456 Ty@BeaconVP.com

www.BeaconVP.com

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