Personalized Medicine: Dead or Alive? BioNJ Diagnostic & Personalized Medicine Innovation Summit and Funding Roundtable March 14, 2012 Princeton University Princeton Township, New Jersey G. Steven Burrill Chief Executive Officer Burrill & Company Burrill & Company’s 26th annual report on the life sciences industry Available Later this Month And a CD of the first 25 years of publications Available at www.burrillandco.com Markets off to a Strong Start in 2012 • Unemployment dropped to 8.3 percent in January, its lowest level since February 2009 • Dow Jones Industrial Average closes above 13,000 for the first time since 2008 • The Nasdaq Composite Index hits a high not seen since December 2000 • Burrill Select Index up more than 15 percent for the year 5 Political and Economic Turmoil Turned Markets in H2 2011 INDEX H1 2011 % Change H2 2011 % Change 17.30% Burrill Select 1.12% 11.00% Burrill Large Cap -10.45% Burrill Mid-Cap 29.80% 5.57% Burrill Small-Cap 9.50% -14.23% Burril Diagnostics 2.80% -3.92% Burrill Personalized Medicine 20.40% -9.40% Burrill Biogreentech 13.40% -18.66% Nasdaq Composite 4.50% -7.50% Dow Jones Industrial Average 7.20% -2.90% Amex Biotech 12.60% -26.10% Amex Pharmaceutical 8.60% -0.50% 6 Indices Post Solid Gains in First Two Months of 2012 INDEX Performance in 2011 First Two Months 2012 Burrill Select 18.5% 16.50% Burrill Large Cap 0.5% 16.3% Burrill Mid-Cap 35.4% 10.4% Burrill Small-Cap -4.5% 6.4% Burril Diagnostics -1.2% 2.0% Burrill Personalized Medicine 11.0% 9.9% Burrill Biogreentech -5.3% 9.6% Nasdaq Composite -1.8% 14.7% Dow Jones Industrial Average 5.5% 5.8% Amex Biotech -16.0% 20.4% Amex Pharmaceutical 8.9% 0.5% 7 Tough Year for IPOs, But Investors Win Big Through M&A • IPOs got done, but activity slowed in the second half of 2011 (16 in 2011 vs. 20 in 2010) • Companies sold more share and raised less money than they hoped • Aftermarket performance weak • Big winners in M&A companies with early- and mid-stage assets demanded big premiums 8 The Challenge of Personalized Medicine • Is personalized medicine a surrogate for molecular diagnostics? • Will our understanding of genomics / proteomics / metabolomics really improve treatment by getting the right drug to the right patient at the right dose and the right time? • Can we be predictive? Are we preemptive? • Is value actually created? • Are providers using it? Are patients demanding it? • Are payers willing to pay for it? 9 What are the pressures on healthcare and does personalized medicine provide an answer?