PTV Sciences, L'P'

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PTV Sciences, L.P.

• Life Science Technology and Deal Trends in Texas

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Venture Capitals Early Roots
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Institutional NIH Awards and Technology Output in
Texas
RD (Bn)
LICENSES
DISCLOSURES
SPINOUTS
De-emphasis on Creating Startups is National
Trend
Source Association of University Technology
Managers
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State Rankings in RD Expenditures2001-2003
2001
2002
2003
Source Association of University Technology
Managers
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Increasing Momentum in the Houston Region
COMPANIES
EMPLOYEES
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Due Diligence
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Houstons Assets

• Houston region has the potential to become a
  competitive biotech center because it is a world
  leader in one of the keys to success research
• Employs more than 75,000 life science
  professionals in 45 institutions
• Attracts more than 1.7 billion in funding each
  year
• Texas ranked as 3 in nation for federally funded
  RD 2/3 of spending occurs in Houston region
• Texas Medical Center
• Largest medical center in the world 42 member
  institutions
• 5.6 million patient visits annually
• 2.1 billion spent for additions to facilities
  from 2002-2004
• 800 acres 100 permanent buildings

• Massive but under-recognized research and
  commercialization assets

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World Class Research Institutions
Leading Medical Institutions in the U.S.
Source U.S. News and World Report, 2004, NIH
database, Small Times
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Research Leadership

• Vanguards
• First multiple organ transplant
• First total heart transplant
• First artificial artery
• First identification of C60
• First draft of the human genome
• Designation of one of two National Biocontainment
  Labs first in nation
• First successfully cloned companion animal
• Rich Collaborations
• Alliance for NanoHealth
• Gulf Coast Consortia
• TexGen
• Texas Institute for Genomic Medicine
• Center for Advanced Diagnostic Imaging at UT
  Research Park

• Nationally Recognized
• Three Nobel laureates
• Four Lasker Award Winners
• 16 members of the NAS
• 2 Presidential Advisors
• Hundreds of members of other national academies
• Next Generation Leadership
• 2 in higher education degrees in bioscience
• 22,000 biomedical students
• 30,316 bachelors, masters, doctoral and
  professional degrees granted 2003-2004

Sources Battelle Memorial Institute State
Science and Technology Institute study Greater
Houston Partnership
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Regional Research Strength

• Researchers in the region produce internationally
  acclaimed developments in multiple fields

Nanotechnology
Cardiovascular Medicine
Metabolic Diseases
Oncology
Biodefense/ Infectious Disease
Genomics
Neuroscience
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Nowhere in the World

• Texas Medical Center, UTMB Texas AM
• 5.4 million annual patient visits in the Texas
  Medical Center alone
• Ethnically diverse international population
• Extraordinary spectrum of illnesses and
  therapeutic areas
• ? Rapid clinical trial recruitment
• ? Personalized medicine research enabled
• Expertise and experience
• Deep pool of thought leaders in virtually every
  therapeutic area
• Long experience with designing and conducting
  compliant clinical trials
• Mature clinical trials infrastructure
• Long experience with sponsored research

Nowhere in the world is there cutting-edge
research, leading clinicians, and large and
diverse patient population in such close
proximity.
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Support for the Biotech Business Community Helps
Foster Commercialization

• Business leadership
• CEOs of two of the most successful IPOs in
  biotech industry created their companies in
  Houston
• Educational excellence
• Rice University / Baylor College of Medicine
  joint MBA/MD programs
• Lower cost of research and office facilities
• Rental rates are 10 30 percent lower than the
  San Francisco and Boston areas

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The Venture Capitalists
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PTV Sciences, L.P.

• Seed and Early Stage Investments
• Fund size 66 Million
• Experienced Fund Management
• Exclusive Focus Life Science and Materials
  Science (capitalize on strength of research base)
• Texas Based, Texas Focused

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Investment Strategy Process

• What We Look For
• Market
• Large and Growing (Growth Rates gt20).
• Affluent Customers (Many MA Exits).
• Company
• Good Management DNA.
• Product Focus.
• Novel Ideas are Best (New twist on an old
  game).
• Financial
• Operating Margins gt40 (current portfolio in
  excess of 80).
• Short Time (within three years) to Meaningful
  Revenues ? Real Businesses.

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Portfolio Companies
Accumetrics, Inc. Accumetrics has developed the
VerifyNow System and a series of novel
diagnostic assays for the cardiovascular and
cerebrovascular market. Two assays for measuring
alterations in platelet functions by
anti-platelet agents (including aspirin) have
been cleared by the FDA. The Company designs,
develops, and manufactures all aspects of its
product under U.S. Food Drug Administration
(FDA) Good Manufacturing Practices (GMP)
standards.
Alereon, Inc. Alereon is a new fabless
semiconductor company focused on developing and
deploying UWB chipsets for personal area
networking applications that comply with the
emerging IEEE standard (802.15.3a). The Company
is targeting very high bandwidth, low-power,
low-cost solutions to connect wirelessly consumer
electronics, personal computing, and mobile
devices.
BioForm Medical, Inc. BioForm is a medical device
company that has developed and manufactured a
family of proprietary injectable implant products
used for soft tissue augmentation. BioForm is
undergoing a commercial transformation with the
U.S. launch of its first product, Radiance, an
indictable tissue augmentation and marking
material. Radiance solves a long-standing need
for a durable, biocompatible, easy-to-inject
material.
                          
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Portfolio Companies
BioMimetic Pharmaceuticals, Inc.
(BMPI)BioMimetic Pharmaceuticals is a
late-stage biopharmaceutical company focused on
the development and commercialization of
innovative protein-based products for the
treatment of musculoskeletal and orthopedic
disorders. The Company's lead product candidate,
GEM 21S?, is a fully synthetic regeneration
system being developed for the treatment of
periodontally-related bone defects. The Company
has additional product candidates in development
for multiple musculoskeletal indications. Other
product candidates under development are targeted
for diverse orthopedic indications including
traumatic fractures, applications in the spine
and sports medicine applications such as
cartilage, tendon and ligament repair.  
BioSurface Engineering Technologies, Inc.
(BioSET) BioSET is an early stage
company focused on developing synthetic growth
factor compounds targeted to the rapidly emerging
medical device/drug combination markets. These
technologies aim to capitalize on next generation
biologically active medical implants that combine
the traditional mechanical benefit of device
implant with adjunctive surface treatments, or
drug coatings, delivered from the surface of the
implant in a local-regional format. BioSET will
initially target the orthopedic and orthobiologic
markets because of the intense interest by
orthopedic manufacturers in this field. 
Calcitec Biomaterial Solutions, Inc. Calcitec is
a privately held company that was founded to
create novel nanocrystalline bone substitutes for
regenerative orthopedic applications. The Company
has a full-line of bone substitute products
designated for use in orthopedic and spinal graft
procedures. Approximately 760,000 bone graft
procedures were performed in the US in 2002 in
the orthopedic, spinal, oncological, and
periodontal spaces.
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Portfolio Companies
GlycoMimetics, Inc. (GMI) GMI
capitalizes and builds on advances in the field
of glycobiology by developing small molecule
drugs that mimic the action of carbohydrates. The
initial focus is on therapeutics to treat
inflammatory diseases and cancer. GMI announced
the completion of its seed round of financing in
May of 2003. They will use the funding to bring
the lead compounds into pre-clinical testing to
demonstrate their viability as candidates for
human clinical trials. In addition, they plan to
demonstrate pre-clinical proof of concept for the
use of other proprietary compounds in important
applications to treat cancer and other diseases.

IDev Technologies, Inc. (IDev) IDev is
an innovator and developer of next generation
medical devices for use in the interventional
radiology and cardiology device marketplace.
IDev's current portfolio contains over twenty
technologies exclusively licensed from the
University of Texas M.D. Anderson Cancer Center
representing over a 5.0 billion market
opportunity. Since its inception, IDev has
successfully obtained CE-mark and FDA Clearance
for two product lines.
InSite Vision, Inc. (ISV)InSite Vision is an
ophthalmic products company currently focused on
ocular infection, glaucoma, and retinal disease.
The Company specializes in three platform
technologies topical drug delivery (DuraSite),
genomics, and retinal drug delivery. As a result,
the Company has a portfolio of both diagnostic
and therapeutic products in early and late-stage
development. The Company's lead product,
AzaSite?, targets infection of the eye, and will
initially compete in the expanding market for
ocular infection in the United States. AzaSite
contains the drug azithromycin, a widely used,
broad-spectrum antibiotic that has now been
successfully formulated for topical application
in the eye.
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Portfolio Companies
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Venture Capital
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Contact Information

• PTV sciences, L.P.
• 1000 Main, Suite 3250 600 Congress Ave., Suite
  200
• Houston, Texas 77002 Austin, Texas 78701
• 713-209-7555 Telephone [phone] Telephone
• 713-209-7599 Facsimile 512-505-4550 Facsimile
• Evan S. Melrose, M.D. Matthew S. Crawford
• Managing Director Managing Director