Opthotech "IPO's in Ophthalmology" Presentation from OIS@AAO 2014

1. Moderator: David R. Guyer, M.D.
CEO and Chairman of the Board - Ophthotech
Ophthalmology Innovation Summit
IPOs in Ophthalmology
October 16, 2014

2. 2
Key Historical IPO Events
• Early public ophthalmology companies
- 1958 – 2007: Bausch & Lomb publicly traded*
- 1970 and 1989: Allergan became a public company#
• Early 1980s – Biotech began to take off
- 1980 - Genentech raised $35 million in its IPO+
• Considered biotech’s first entry into the capital markets
• First ophthalmic biotech IPOs
- August 3, 2000 – First ophthalmic biotech IPO – Inspire
- August 22, 2000 – First ophthalmic “pure play” IPO – ISTA
**New York Times; Bausch & Lomb Plans I.P.O March 22, 2013 6:01pm
#USA Life Sciences Database –www.biotechgate.com
+ New York Times: Cetus in Record Offering; Market Response is Cool – March 7, 1981

3. O P H T H O T E C H
Ophthalmology IPOs since 2000
Market cap at
IPO:
$365mm
Market cap at
IPO:
$222mm
Market cap at
IPO:
$662mm
Market cap at
IPO:
$154mm
Market cap at
IPO:
$161mm
Market cap at
IPO:
$267mm
Market cap at
IPO:
$293mm
Market cap at
IPO:
$154mm
Market cap at
IPO:
$10bn
Market cap at
IPO:
$350mm
Market cap at
IPO:
$926mm
Market cap at
IPO:
$331mm
Market cap at
IPO:
$131mm
Market cap at
IPO:
$342mm
Since 2000, ophthalmology companies have had a median market capitalization at IPO of $293 million.
Market caps range from $131 million to $10 billion
Source: Company filings, press releases
Note: IPOs greater than $100mm Excludes withdrawn IPOs for Oculex, Eyeonics and Bausch & Lomb

4. O P H T H O T E C H
History of Ophthalmology IPOs: 2000 – 2012
The majority of ophthalmology companies that have gone public between 2000-2012 have been acquired
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
IPO: 08/03/00
Market cap: $293mm
04/05/11
Acquired for $430mm
26% premium
IPO: 08/22/00
Market cap: $154mm
03/26/12
Acquired for $500mm
10% premium
IPO: 03/20/02
Market cap: $10bn
12/16/10
Acquired for $51.6bn
IPO: 06/29/02
Market cap: N/A
01/12/09
Acquired for $1.4bn
150% premium
IPO: 01/29/04
Market cap: $926mm
08/22/05
Acquired for $935mm
43% premium
02/13/12
Undisclosed
IPO: 10/07/04
Market cap: $331mm
01/01/07
Acquired for $808mm
13% premium
IPO: 07/06/06
Market cap: $131mm
IPO: 04/21/10
Market cap: $342mm
Source: Company filings, press releases. Excludes withdrawn IPOs for Oculex, Eyeonics and Bausch & Lomb
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Spun off
2008
Private
Acquired
Note: IPOs greater than $100mm

5. 5
2013 – 2014 IPO Observations: US Biotechnology
• 110 U.S. Biotech IPOs in 2013/2014 YTD
- 2013: 40
- 2014 YTD: 70
• Previous record of 64 companies (2000) and 76 in 1999/2000
• IPO “maturity” in 2014 class remains at the 2013 level
- 77% - lead drug in at least Phase 2 (2014)
• Average “valuation per predicted approved drug” is lower for the
class of 2014 ($601M) than the class of 2013 ($794M)
(Source: Credit Suisse IPO Monitor-Edition 7)

6. 6
2013 – 2014 IPO Observations (cont’d)
• A “hot” 2014 IPO window, but still lower than 2000 levels
w/r to average raise, average post-money valuation, total
raised, and total post-money valuation
• Class of 2013 / 2014 - represent 25 of the top 100 biotechs
by market cap (only 10 from the class of 2000 in the top
100 list)
(Source: Credit Suisse IPO Monitor-Edition 7)

7. O P H T H O T E C H
Ophthalmology IPOs: since 2013
Amount raised: $77 million
Current market cap: $482 million
Amount raised: $192 million
Current market cap: $1.3 billion
Amount raised: $58 million
Current market cap: $178 million
Amount raised: $75 million
Current market cap: $299 million
Amount raised: $58 million
Current market cap: $283 million
Amount raised: $117 million
Current market cap: $702 million
Source: FactSet market data as of 10/07/14
September 2013 October 2013 February 2014
March 2014 July 2014 July 2014
Amount raised from $58mm - $192 million (median $76 million)
Market caps range from $178 million - $1.3 billion (median $390 million)

8. O P H T H O T E C H
Ophthalmology has been one of the most attractive areas for investors in
recent biotech IPOs
# of IPOs
Investment ($mm) Performance
Total
Average
deal size
Average
step-up
Offer / current
(mean)
Offer / current
(median)
Oncology 16 $1,329 $83 1.2x 30% 4%
Specialty 8 $468 $58 1.4x 13% (8%)
Ophthalmology 6 $577 $96 1.8x 53% 60%
Anti-infectives 6 $479 $80 1.3x 78% 54%
Orphan / rare diseases 6 $647 $108 2.0x 52% 34%
Platform 6 $485 $81 1.3x 14% 6%
Hematology 5 $467 $93 1.5x 57% 80%
Cardiovascular 5 $376 $75 1.1x 23% 20%
Inflammation 4 $261 $65 1.9x 75% 1%
CNS 4 $295 $74 1.3x 40% 38%
IPOs since 2013 (>$40mm)
Source: Company filings, Dealogic, press releases, FactSet as of 10/07/14

9. O P H T H O T E C H
Relative trading performance of recent Ophthalmology IPOs
Source: FactSet as of 10/07/14
1 Ophthalmology IPOs include OPHT, AAVL, AERI, OCUL, AGTC, EBIO
2 Other IPOs includes all biotech IPOs since 2013 greater than $40mm
Ophthalmology IPOs1
Nasdaq Biotech
S&P 500
Indexed stock-price performance
Other IPOs2
Returns summary
73.7% 24.7%
28.5% 17.5%
19.8% 12.5%
14.0% 5.6%
Ophthalmology IPOs have outperformed over the past year
Since Sept 2013 YTD

10. 10
IPOs In Ophthalmology
• Panelists
• Vicente Anido Jr., PhD
CEO – Aerie Pharmaceuticals
• Thomas W. Chalberg, PhD
Founder & CEO – Avalanche Biotechnologies
• Michael Gaito
Managing Director – Head of West Coast Life Sciences – J.P. Morgan
• Brian Johnson
Partner – WilmerHale
• Amarpreet Sawhney, PhD
President & CEO – Ocular Therapeutix
• Susan Washer
President & CEO – AGTC
• Moderated By
• David R. Guyer, MD
CEO – Ophthotech Corporation