Twelve Months from the ClinicTwelve Months from the ClinicTales from an unlikely journey from bench to boardroom

Jeffrey Coull, PhDPresident & Acting CEOChlorion Pharma, Inc.

This PresentationThis Presentation

• About me

• The Chlorion story

• Perspectives on sourcing capital

• Being a founder, CEO and entrepreneur

About MeAbout Me

• PhD in pharmacology from McGill University,Montreal

• Former management consultant at SHI Consulting,Toronto

• Founder, President and Acting CEO of ChlorionPharma, Montreal

The Chlorion StoryThe Chlorion Story

• Base technology patented in 2003

• Incorporated in 2004

• Received CIHR POP I grant in 2005

• First full-time employee in 2005 (M. Gagnon)

• Identified small molecule leads and demonstratedproof-of-concept in vivo in 2007

• Closed series A1 round of financing ($6M) in thesummer of 2007

• To close series A2 round ($14M) in Q2 2008

Developing novel therapeutic strategies toDeveloping novel therapeutic strategies tocorrect chloride disequilibrium in disorders ofcorrect chloride disequilibrium in disorders of

the CNSthe CNS

The Chlorion Story (2)The Chlorion Story (2)

• 12 full-time researchers (67% with advanced degree, 4PhD)

• Fully-integrated R&D facility (Laval, Quebec), withcapacity in medicinal and bioanalytical chemistry, aswell as in vitro and in vivo pharmacology

• World’s largest library of diverse small moleculemodulators of cation-chloride co-transporters

• IND-enabling studies to commence in 2-3 months forfirst lead, with clinical development to kick-off in 14-15months

• Scientific Advisory Board includes top experts in theworld in CNS drug discovery

Perspectives on Sourcing CapitalPerspectives on Sourcing CapitalThe top ten facts I wish I had known in 2004…

10. Expect the quest for capital to take 2-3 times longer than you think it will.

8. To a VC, “pre-money valuation” really means the total value of alloutstanding shares + total value of all stock options. Hence, onpaper all non-investor shareholders will hold $2M worth of sharesonly at the end of the financing period.

9. A start-up biotechnology company will rarely fetch a valuationgreater than $2M to $3M, regardless of base technology.

7. Sourcing capital is a time-consuming exercise that cannot beperformed only during evenings and weekends.

6. Your chances of finding a VC that will be interested in yourtechnology (and seriously consider an investment) are about 1 in 20.

Perspectives on Sourcing CapitalPerspectives on Sourcing CapitalThe top ten facts I wish I had known in 2004…

5. Know the “right” answers to questions posed by VCs, even if theseare not necessarily the “true” answers.

4. If you are able to identify a VC that is truly interested in your project,spend 80% of your time trying to secure a commitment from this VC,and 20% of your time identifying other VCs that might be trulyinterested in your company.

3. Be optimistic about your timelines, but never deceitful. Understandthat VCs don’t typically want to invest in a drug discovery companyunless it is “12 months from the clinic”.

2. Think of VCs as the “customer”: they are ALWAYS right.

1. When a VC says “no” to you, what they really mean is “not now”.Truly.

Being a Founder / CEOBeing a Founder / CEO

• Founder / CEO versus “Professional” CEO

• Vision, motivation and obsession

• The CEO as integrator

• Other key responsibilities (“a day in the life of…”)

• Perspectives on leadership and relationships

• Beyond the current opportunity

Necessary Attributes for EntrepreneursNecessary Attributes for Entrepreneurs

• Persevere and be patient

• Profile opportunity and prove the concept

• Pitch

• Project manage

• Profit from challenge and responsibility

• PERFORM

The “Ps” of entrepreneurship

Closing Closing

• Questions?

• Thank you.