Epidarex Capital III

Epidarex Capital III

Epidarex Capital III Presentation to the University System of Maryland Foundation Board of Directors November 2018 Epidarex Capital Investing early, being hands on company creations, seeding and Series A Targeting hubs with strong science & technology base but lack scalable risk capital Transforming emerging science into commercial success Building diversified life science portfolio primarily therapeutics & devices Catalyzing Innovation Life Science Focus Proven, effective investment model generating competitive financial returns Confidential 2 Emerging Hubs Track Record Company Builders Epidarex Current Investors Fund of Funds

Financial Institution Development Agency Universities Corporates Global Leader in Imaging and Medical Equipment Confidential Japanese leader in cellular immunotherapy Global Pharma Note: Current investors also include several private family offices 3 Japanese market leader in monitoring devices Market Case Study: Epidarex II Epidarex team had been successfully deploying its investment strategy in the US (from a Maryland base) Recruited to anchor a fund focused on UK life science with an emphasis on Scotland under-ventured market similar to MD Prior to Epidarex II launching, market was over-dependent upon angel investors. Led to under-funded companies and disappointing investor returns Limited number of therapeutic deals done, few financings of scale Epidarex II significantly improved credibility of market Other VCs now syndicating with Epidarex in Scotland

In the last 5 years, Epidarex invested in 7 start-ups in Scotland and syndicated approximately $50 million 5 University spin-outs that were unlikely to be financed at this stage Recruiting experienced management executives LP expectations have been met several are re-upping into Epidarex III Confidential 4 Marylands Equity Capital Gap Public PublicMarkets Markets Available Capital Mezzanine MezzanineFunds Funds&&Venture Venture Debt Debt Clear need for VC funds to lead/colead rounds of $5 million+ Epidarex syndicates to attract funds & strategics

Leverage Epidarex investment 6x (on average) through syndication Late LateStage StageVCs VCsand andCVCs CVCs Biz BizAngels Angels University UniversityTTOs TTOs&& Grants Grants Capital Capital Gap Gap USM USMGrant Grantand andEquity Equity Sources Sources Seed Seed

Research Early Early Initial POC Pre-Clinical Mid Mid Clinical Late Late Phase II/III Trials Development Stage Confidential 5 Impact of the Equity Gap in Maryland Historically Maryland lags behind other regions in VC $ invested Lack of early stage local leads with scalable capital that can syndicate with co-investors Strong POC/seed funding but lack of next money in Losing companies to other states JHU since 2012, 83% of the $1.1 billion raised by JHU founded companies have left Maryland. Recent examples of other states actively recruiting MD life science companies with funding including Texas and NY Knock-on effect for talent recruitment

New State/Regional goal of being 3rd by 2023 in life science unlikely to be realized without financial resources behind it NY moved to #3 in VC funding after over $750 million committed by the state and other corporate investors into early VC funds Additional funding announced by Governor Cuomo last year. Confidential 6 Momentum Fund Focused on late seed deals Typically investing as part of a convertible note into the next round De-risking university projects/companies to prepare them for institutional fundraise 3 investments made to date ($792k); 4 additional committed pending syndication goals ($1.4 million) $10M committed over 4 years Syndication is still a risk factor. Requires heavy lifting but important to not be the sole investor. Challenge will be finding a lead for the next money in Confidential 7 Epidarex Case Study: Harpoon Medical Nov 2013: Met with TTO Sept 2013: 1st contact with Scientific founder Jan 2014: Epidarex initiates due diligence June 2014:

Epidarex pull syndicate together Feb 2015: First in Man July 2014 Epidarex Leads Series A March 2016: CE Study Begins Dec 2015: Edwards Invests May 2014: Epidarex contacts Edwards Lifesciences as part of DD Epidarex: Company Building May 2017: Data presented at Mitral Conclave May 2017: Early Feasibility

Study 2 Harpoon: Current Status Led Led negotiations negotiations for for pipeline pipeline agreement agreement with with the the University University Led Led Series Series AA syndicate, syndicate, sharing sharing diligence diligence Board governance Board governance Collaborated Collaborated with with management management on on Edwards Edwards negotiations negotiations Confidential April 2017: CE submission Dec 2017:

Acquired by Edwards Lifesciences for up to $250M 8 Excellent Excellent clinical clinical results results treated treated 62 62 patients patients to-date to-date Clinical Clinical results results show show significant significant reduction reduction in in MR MR over over 70% 70% of of patients patients treated treated to-date to-date went went from from severe severe to to mild mild or or less.

less. Option Option triggered triggered December December 2017, 2017, acquired acquired by by Edwards Edwards for for $250 $250 million, million, including including $100 $100 million million upfront upfront CE Mark granted January 2018 CE Mark granted January 2018 Total Total transaction transaction value value == significant significant return return on on Epidarex Epidarex investment investment

Still More to Be Done Serie A Investors Momentum Fund Grant Programs Pre-spin out and early seed Confidential Bridge from post spin out to Series A Excellent start, but will soon face challenge for next money in 9 Critical money needed to truly advance value Very few local VCs of scale Still challenging to attract out of state investors Options for Solving Series A Gap USM - $150M+ venture fund Single system fund Significant anchor $ provided by each foundation in the system Raise outside capital which may prove to be difficult, deal flow constrained Would need to managed by outside, professional investor Co-investment fund Passive investor DD done by lead VC Invest alongside other VCs Potentially also could invest alongside Momentum fund (may be higher risk) Could be platform to capture alumni donation

LP in local funds already interested in USMs deal flow Could be seen as catalyst Local VC already bought into local ecosystem potential VC track record in line with Foundations fiduciary goals Confidential 10 Additional Slides USM Strength in Early Resources Various programs for assisting companies from pre-company formation to late seed funding. USM funding to complement state / federal programs: Baltimore Fund (grants for location in Baltimore City) UMBC Catalyst Fund ($25k grants) UMB Inst. for Clinical & Translational Res. ($50k grants) UM Ventures Seed Grants ($50-75k grants) Maryland Industrial Partnerships ($100-$200k grants) Life Sciences IP Fund ($50-100k investments) Chesapeake Bay Seed Capital Fund ($75-150k invest) Momentum Fund ($250k-500k typical investment) Confidential 12 Experienced Management Team Co-founder & Managing Partner Kyp Sirinakis Over 25 years experience operating and investing in early stage companies

Successfully raised 3 early stage VC funds (co-managing funds with Dunlop > 10 yrs.) Achieved IRR of 12.5% in initial VC fund Directly responsible for 10 exited portfolio companies with multiples up to 19X Role: deal sourcing, diligence and executing, portfolio management, compliance, investor relations, all finance and operations Co-founder & Managing Partner Sinclair Dunlop Successfully raised 3 early-stage VC funds (co-managing funds with Sirinakis > 10 yrs.) Built more than 20 successful portfolio companies in US and UK, exits include M&A/trade sales, IPOs (>$1bn.) Secured international business development partnerships for LPs, including multi-hundred million dollar licensing transactions Partner Partner Liz Roper, PhD Peter Finan, PhD

17 years in Life Science Industry Closed major pharma transactions as business development executive, including a GSK deal worth up to $1 billion Part of management team that raised >$100 million in VC funding Multiple successful exits from early stage investments (Sirtris, Fovea, Nabriva, Micromet) Role: deal sourcing, diligence and executing, portfolio management 20 years career in Pharma in Europe and US. Global Head of Respiratory at Novartis Oversaw progression of more than 50 preclinical programs and 10 clinical programs; responsible for 350 drug discovery scientists Led/co-led investments attracting approx. 23 million from syndicate investors Role: deal sourcing, diligence and executing, portfolio management Role: deal sourcing, diligence and executing, portfolio management, investor relations, and compliance All Partners are members of the GP and Investment Committee 13 Company Builders: Value Added Investors Epidarex Leads

Universities Health Systems Corporates Home grown ideas Seed or create companies Funding Syndication Identify Innovation Confidential Results Teams expertise Hands on governance Interim management Recruit C-Level talent Attract strong Boards Epidarex Adds Value 14 Successful Exits Attract later stage investors Epidarex Leverages Investment with Blue Chip Syndicates EPX Invested $51 million Confidential

$301 million syndicated 15 Epidarex Case Study: Nodthera Feb 2015: Jan 2016: Luke ONeill nature Diligence Complete publication Sept 2015: Selvita discussions initiated Nov 2016: March 2018: Hal Hoffman and Raised 25.25M Aug 2017: BMS Gabriel Nunez join SAB Series A2 July-Aug 2016: acquires IFM ($2.32B) Company formed March 2017: Claire April 2016: Bryant joins SAB Term sheet signed 8M

Series A Nov 2015: Aug 2016: Aug 2017: Lead like Chris Gabel and Rod Porter Alan Watt recruited as CSO molecules identified sign up as consultants July 2015: Active diligence on a number of opportunities Epidarex: Company Building Nodthera: Current Status Identified the inflammasome as an emerging area Scoped assets from across Europe and the US Identified promising chemical matter from Selvita S.A Created the company setup and led the Series A round Negotiated assignation of the assets from Selvita S.A Recruited a CSO with Pharma and Biotech experience Formed a world class Scientific Advisory Board Confidential 6 novel, diverse chemical series identified Lead-like molecules currently being profiled in-vivo

Significant traction with corporates, including unsolicited term sheet Raised 25 million Series A2 in March 2018 co-led by Sofinnova Partners and 5AM Ventures, with F-Prime Capital Partners and Epidarex also investing 16 Strong Scientific Network Epidarex cultivates long-standing relationships with leading PIs and commercialization teams at top Universities Epidarex team actively involved with Uni commercialization initiatives and funding panels Majority of Epidarex investments have been university spin-outs, led or co-led by Epidarex United States Confidential United Kingdom 17 Raising Epidarex Capital III Similar model as Epidarex I and II Additional features of Epidarex III Dedicating a small percentage of the fund for seeding or killer experiment funding Adding EIRs and Venture Partners to bring more resources to spin-outs and company creation Expanding US team and adding to the Advisory Board Target fund size: $150 million Provides ability to better fund companies at scale Projection 9 seeds; maximum portfolio of 13 companies Balanced investments on both sides of the Atlantic On track for first close in Q1 2019

Confidential 18 Disclaimer This document does not constitute an offer to sell or a solicitation of an offer to make an investment (the Investment) in Epidarex Capital III, LP (the Fund). No such offer or solicitation will be made prior to the delivery of a definitive subscription agreement and other materials relating to the matters herein. Before making an investment decision with respect to the Investment, potential investors are advised to carefully read the offering document relating to interests in the Fund, the Funds subscription agreement, and the limited partnership agreement of the Fund (the Documents). Further, potential investors are advised to consult with their tax, legal and financial advisors before consummating an Investment. This document is being provided to you on a confidential basis solely to assist you in deciding whether or not to proceed with a further investigation of an investment in the Fund. Some of the statements contained herein are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Funds actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as may, will, should, expects, plans, anticipates, believes, targeted, projected, underwritten, estimates, predicts, potential, or continue or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can not make guarantees of future results, levels of activity, performance or achievements. Moreover, neither the Fund nor any other person or entity assumes responsibility for the accuracy and completeness of forward-looking statements. No person or entity is under any duty to update any of the forward-looking statements to conform them to actual results. Past Performance: Past Performance is not a guarantee of future results. Unless otherwise noted, performance data per company is presented on a gross basis, which does not include management fees, fund expenses and carried interest charged to investors that are substantial in aggregate and have a significant adverse effect The case studies presented are intended solely to provide potential investors with representative information about the venture capital investment experiences of certain members of the team and to provide examples of the types of projects that we intend to target for investment by the Fund. The performance results shown in the case studies should not be regarded as indicative of the performance the Fund will achieve and it should not be assumed that the Funds investments will be profitable or that the Fund will be able to make comparable investments. In considering the performance results shown herein, prospective investors should bear in mind the respective timeframes in which these investments were made and their related market conditions, which will differ from those under which the Fund will invest. Certain of the investments presented herein were made and, in certain cases, realized under favorable economic conditions for such investments in the early stage life science sector and there is no guarantee that similar favorable economic conditions will exist while the Fund is making and/or realizing investments. Additional information about Epidarexs prior investments is available upon request. All results presented are gross and do not reflect the customary fees and expenses investors pay when investing in pooled investment vehicles, such as management fees and carried interest, which will have a significant negative impact on returns. Please see the Endnotes to Performance Information for important information regarding the limitations inherent in providing anticipated returns for unrealized investments and the assumptions upon which the performance information contained these case studies is based. Confidential 19

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