1. Proteus Venture Partners
Transforming Healthcare through Regenerative
Medicine
June 2009

2. Fund Summary
 Regenerative Medicine  World Class Team
Fund − Core team with complementary skills
− Deep domain expertise
− Global reach − Outstanding SAB & strategic partners
− Stage agnostic − Industry leadership
− Top tier venture returns
− 1st mover advantage  Disciplined Investment
Approach
 Technology Focus
− Cell Therapies
− Proprietary deal flow
− Rigorous due diligence
− Regenerative Compounds
− Build value thru active management
− Tissue Engineering − Timely exits
− Tools & Enabling Devices
− Aesthetic Medicine
 Target Investments
 Addressing Large Markets − Outstanding technology & team
− Defensible IP
− Large unmet medical needs − Viable business model
− Aging population − Near term path to clinic or revenues
CONFIDENTIAL 2

3. The Promise of Regenerative Medicine (Select
Examples)
Restricted Glial Cells for Remyelination*
 Untreated  Transplant – 1 Year Later
Paralyzed Rat Paralyzed Rat Walks *Source:
Steve
(double click to see video) (double click to see video) Goldman,
Rochester
To Regenerate Heart Muscle To Grow & Replace Entire Organs Heal Acute Spinal Cord Injury
To
Beating
Cardiomyocytes
•(double click to
see)
Geron receives FDA go ahead to initiate
Tissue Engineered ESC therapy in clinical trials Jan 23, 2009
Urinary Bladder CONFIDENTIAL 3

4. Agenda
I. Proteus Team
II. Proteus Coverage of Regenerative
Medicine
III. Why Invest in Regenerative Medicine
Now?
IV. Proteus Investment Strategy
V. Summary and Next Steps
CONFIDENTIAL 4

5. Proteus Team and Network of
Relationships
1. Specialized Set of Skills
2. Industry Leadership
3. Worldwide Network / Discovery Relationships
4. Result: Early Access to Best Innovation, IP & Scientists

6. Proteus’ Team

7. Team Built to Succeed in RM
Technology Team
Alan, PhD Science / Finance
Asma, PhD Technology Business Team
Chris, FRCS, PhD
Daniel, MD Greg, JD
Fayad, MD Jeff, MBA
Leonide, PhD Ward, PhD, MBA
Melissa, PhD Regulatory Operations
Susan, FRCS, PhD
Science / Regulatory Operations Finance
Technology
 Extensive Board &  Builders of value
 Close and regular ties to
management 
 Broad expertise In RM regulatory agencies Deep knowledge of
experience
 valuations, business
 Conducted pioneering Thorough knowledge of
 Understand RM models and deal
research FDA and EMEA
commercialization structures
regulations
 Deep ties to academia strategies & biz models 
 Structured many
Nuanced understanding
 Command of IP successful exits: M&A,
of clinical trial design
landscape IPO, Partnerships
within the context of RM

8. Proteus Team: Senior Partners
Gregory A. Bonfiglio, Managing Partner
 Senior Partners have 50+
- Early Investor in Regenerative Medicine
- Senior Partner at Anthem Venture Partners years of venture capital,
- Stellar track record: Top 5% Returns operating and financial
- Senior Partner - Morrison & Foerster advisory experience
- Adjunct Professor - Stanford Law School
- RM Industry Leader: Frequent Speaker  Strong operational and
- ISSCR Industry & ISCT Commercialization Committees entrepreneurial DNA
- Served on Numerous Boards
 Complementary skill sets
 Collaborative approach
Jeffrey S. Karan, Senior Partner  Long-standing
interpersonal relationship
- 25+ yrs building value in companies
- 12 years with Morgan Stanley & Goldman Sachs  Deep network with RM
- Managed Over $5B of equity, debt, and M&A deals community, companies
- Managing Partner of Woodside Capital Partners and scientists
- Extensive experience raising capital, aggregating assets,
and negotiating partnerships
- Structured numerous IPO and M&A Transactions
- Dartmouth, BA; Tuck, MBA, Edward Tuck Scholar
CONFIDENTIAL 8

9. Senior Scientific Advisors
 Chris Mason, MBBS, PhD, FRCS
− Director, Regenerative Medicine & Stem Cell Bioprocessing Unit, UCL
− Fellow of the Royal College of Surgeons of England
− PhD in Stem Cell/Tissue Engineering (University College London)
− Cofounder of the London Regenerative Medicine Network (LRMN),
− Editorial Boards of the journals "Regenerative Medicine" and "Tissue Engineering"
− Founder + Member of the Steering Committee for the UK National Stem Cell Network
− Founder/Director of Stem Cell Translation Ltd
 Alan J. Russell, Ph.D.
− Director of the McGowan Institute for Regenerative Medicine, Pittsburgh
− Professor of Surgery, UPMC
− Professor Chemical Engineering, Bioengineering, and Rehab Sciences &
Technology
− Executive Director of the Pittsburgh Tissue Engineering Initiative (PTEI)
− Director of the National Tissue Engineering Center (NTEC)
− Founder of Agentase LLC
CONFIDENTIAL 9

10. Senior Scientific Advisors
 Melissa Carpenter, PhD,  Deep knowledge,
experience and
− 13+ years developing stem cell therapies networks in RM
− Leadership positions at CytoTherapeutics
(StemCells Inc), Geron, and Novocell  Created innovative
− Numerous publications and patents in the stem cell stem cell related IP
field
− Experience in translating discovery research into  Deep ties to academia
regenerative medicine therapies
− Experience in developing preclinical development  Access to early deal
strategies flow and technology
 Extensive clinical work

11. United States Venture Partners
 Deep knowledge,
experience and
 Daniel Kraft, MD, Venture Partner networks in RM
− Stanford and UCSF Faculty Member  Founded stem cell
− Pioneering Stem Cell Research based companies
− Multiple publications, inventions & patents
− Extensive clinical work with stem cell transplantation  Created innovative
− Founder & BOD of StemCor: RM Tools Company stem cell related IP
− Medical Training at Stanford & Harvard
− Boarded Certified in Internal Medicine, Pediatrics,  Deep ties to academia
and Hematology/Oncology
− Kaufman Fellow  Access to early deal
flow and technology
 Extensive clinical work
 Operational experience,
SAB and BOD roles in
RM focused companies

12. International Venture Partners
 Fayad A. Dandashi, M.D. (Kingdom of Saudi Arabia)
– Founder and CEO of FutureMed, a leading Saudi biotechnology company
– Formed the first private Umbilical Cord Blood Bank in KSA
– Introduced mesenchymal stem cell banking services in Jeddah
– Co-founder and Managing Partner of several specialty medical companies, including: MedLab KSA (diagnostic
lab), The Eye Center (ophthalmology center), and Mashafi Group (Secondary Care Hospitals)
– M.D. by training with strong business and entrepreneurial experience
 Dr. Susan ML Lim, FRCS, Ph.D. (Singapore)
– Chairman, Susan Lim Surgery & Group of Practice, Consultant General Surgeon, Transplant Surgeon
– Chairman & CEO, Stem Cell Technologies focused on human adult progenitor cells derived predominantly from
adipose tissue
– MBBS (Hons 1 Monash University); PhD (Cantab), FRCS (Edinburgh, Gold Medal); FRCS (Glasgow); M.Med Surg
(Singapore), FACS,FAMS, HonMD (New Castle), Visiting Professor to the Institute of Cell & Molecular Sciences, Barts
& University of London, Queen Mary College
 Asma Ibrahim Al Asad, B.S. (UAE)
– Business Development Manager, Dubai Cord Blood & Research Center (DCRC)
– Project Manager, Dubai Cord Blood & Research Center (DCRC)
– Chief Lab Technologist, Hematology Department, Department of Health & Medical Services
– Co-founder of DCRC, the 1st UAE mixed (public & private) cord blood bank , 1st of its kind in the Middle East.
– Engaged with Bone Marrow Donor registries worldwide
CONFIDENTIAL 12

13. Proteus Advisory Board & Key Academic
Relationships
 Tony Atala, MD Tissue Engineering; Director RM Inst, Wake Forest
 Jacqui Brandwynne, MBA Aesthetic Medicine; Yardley; Citicorp; Neutrogena
 Gordon Keller, PhD ESC Biology & In Vitro Tools; Dir of RM, Univ. of Toronto
 Arnold Kriegstein, MD, PhD Neural Stem Cells: Dir. UCSF Dev Bio & Stem Cell
Program
 Robert Lanza, MD ESC Biology & Therapy; VP. R&D of ACT
 Michael Longaker, MD, MBA RM; Director- Stanford Institute of Regenerative Med
 Malcolm Moore, PhD Cell Therapy; Memorial Sloan Kettering, Inventor of
Neupogen
 Gail Naughton, PhD, MBA Business; Dean San Diego State B-School;
Founder of ATS
 Julia Polak, MD, DSc Tissue Engineering; Imperial College London
 Brock Reeve, MBA Executive Director, Harvard Stem Cell Institute
 Wolf Reik, PhD Epigenetics & Tools; Babraham Institute, UK
 Myron Spector, PhD
Key Academic Relationships: Tissue Engineering; Orthopedics Research, Brigham &
Harvard, Stanford, MIT, University of Wisconsin, UCSF, UPMC, WakeHarvard Medical School
Women's Hospital; Prof. at Forest,
& MIT
Columbia, Univ. of Toronto, Burnham Institute, U Washington, MD Anderson, UCL,
Oxford, Imperial College, King’s College London, Cambridge (England), Singapore MIT
Alliance
CONFIDENTIAL 13

14. Proteus’ Coverage of RM
1. All Major RM Platforms
2. Across Medical Indications
3. Access Best Teams, IP & Innovations at
Earliest Stage from around the World

15. Regenerative Medicine is Transforming
Healthcare
CONFIDENTIAL 15

16. RM Is A Broad Field: 5 Key Sectors (Selected
Applications)
Cell Therapies Tissue Engineering
 Heart Disease  Organ Replacement
 Diabetes  Tissue Regrowth
 Vision Disorders  Bone & Cartilage
 Neurological Disorders  Wound Healing
Regenerative Compounds
 Compounds that trigger
endogenous regeneration
 Anemia
 Advanced Wound Healing
 Advanced Fracture Healing
Aesthetic Medicine Tools & Devices
 Dermal Fillers  Delivery Devices
 Hair Restoration  Cells Assays for DD&D
 Anti-Aging/Anti-Wrinkle  Predictive Toxicology
Tooth Regeneration  Bioinformatics
CONFIDENTIAL 16

17. Breadth of RM Products In Development
Vascular Wound Blood
3% 3% 3%
Urinary Cancer
2% 8%
Skin
17% Cardiac
12%
Respiratory
1%
Periodontal
Diabetes
1%
10%
Eye
2%
Orthopedic Gastrointestinal
23% 1%
Neural Liver
10% 3%
Muscle
1%
Proteus’ database covers 700+ RM products in development
CONFIDENTIAL 17

18. Applications of Regenerative Medicine
Cardiovascular diseases
Cancer and ex: Theregen (cell based patch to promote small
blood vessels in heart muscle), Cytograft
Hematologic diseases
(dialysis shunt / coronary artery bypass graft),
ex: Cellerant – Neutrapenia;
Cytori (adipose stem cells)
Fate Therapeutics – first
products likely to be in cancer;
G-CSF (Neupogen and the Orthopedic diseases
newer Neulasta) ex: BMP – Infuse; CellCoTec
(autologous cartilage), Genzyme -
Carticel™ for cartilage repair;
Tigenix (biopsy
RM treatments & implant);
cover large markets of ISTO - cells & scaffold
unmet medical needs
Central Nervous with aim of curing vs.
System treating diseases
Ex: Geron – spinal cord;
Q-Therapeutics -
demyelinating diseases;
California Stem Cell –
motor neuronal diseases;
ACT - macular degeneration
Diabetes
ex: Novocell- encapsulated islet
cells; BetaCell – encapsulated
xenograft; diabetic complications:
Stratatech for diabetic foot ulcers

19. Regenerative Compounds: already 50% of Biotech
Sales
Biotech Sales (2006) –
Cytokines (Some
Regenerative Interferons and Interleukins
Compounds on Right (Avonex, Rebit, Betaseron)
9%
Half Human Growth Hormones
(Except insulin)
2%
$3.4b $0.8b
Other Biotech (monoclonal
antibodies, insulin, other)
52% Blood Growth Factors (led
$14.1b by CSF, EPO, derivatives)
$21b 35%
$0.8b
Tissue Growth Factors
(BMPs mostly,
neurotrophic GF, wound
healing GF)
2%
Expected CAGR: 15-20%
Source: Frost & Sullivan and Aggarwal, Nature 2007

20. Why Invest in Regenerative Medicine
Now?
1. Technology is Maturing After 30 Years of Development
2. Addressable Market is Enormous and Growing
3. Big Pharma is Very Active

21. Why the Time to Invest is Now
Technology Push Market Pull
RM is Maturing after Healthcare Spend is 17% of US
40 Years of GDP Heading Towards 23%
Development
 Research programs  Demographics: aging
proliferating: 80+
400+ Companies populations
 Technology maturing  Large unmet medical
 Clinical activity needs
accelerating (800+ FDA  Pharma pipeline
trials) diminishing
 Increased Government  Public markets receptive
Funding
The Market is at a Crucial Inflection
Point
CONFIDENTIAL 21

22. Development of Regenerative
Medicine
Current technologies build on 40 years of research
1960s 1970s 1980s 1990s 2000s
1973 – First 2001 –
unrelated 1997 – Dolly the RhBMP-7
1963 – Mouse bone marrow 1981 – Mouse 1993 – ViaCell approved
Sheep cloned
ASCs isolated transplant ESCs isolated Begins Banking Late 1990’s –
Cord Blood Multiple FDA Dermagraft - FDA
Approvals Approval 2001
1986 – First Carticel
1968 – ALL
Mouse Cloned (1997)
patient
Apligraf
irradiated, 2005 Use of
1990 – Geron (1999)
infused with unrelated cord
identical twin Founded blood in BMT
BMT
1998 – 2006 –
Human hESCs
ESCs produced
isolated w/out
harming
the
embryo
Source: Company websites, NIH, Pubmed
CONFIDENTIAL 22

23. Technology Push: Beginning the 2nd Half of the Gartner
Curve
Visibility Peak of Inflated Trough of Slope of Plateau of
Expectations Disillusionment Enlightment Productivity
2001: 3300 jobs, 73 firms, mkt cap > $2.5B
2000 Time Magazine: 2001 Ortec FDA approved
TE No. 1 job
2001 TE blood vessel enters clinic
2001 Dermagraft FDA approved
2002 ISSCR founded
1999 Intercytex founded
1999 TE bladders in clinic
1999 First TE product FDA 2001 Bush “partial ban” on HESCs
approved (Apligraf)
2003 UK Stem Cell Bank set up
1998 Plan to build human heart in 10 years 2005 CIRM founded
1998 Human ESCs first derived 2006 Carticel - 10,000 patients
1997 Dolly the sheep 2006 hESCs derived without harming embryo
1997 First cell therapy 2006 Batten’s Disease trial
FDA approved (Carticel) 2006 Reneuron file IND for stroke trial
2007 Apligraf - 200,000 patient therapies
1992 Geron 2007 Human iPSCs Derived
founded 2007 Intercytex start Phase 3 ICX-PRO
1988 SyStemix founded 2007 1.2M+ Patients Treated
2007 $1.5B RM Product Revenues
1986 ATS & Organogenesis founded 2007 800 FDA Clinical Trials Ongoing
1985 Term “TE” coined
2007 50 Public Companies: $4.7B Mrkt Cap
2002 ATS + Organogenesis file
1980 Early TE research (MIT) Chapter 11
Technology Trigger Time
Stage of Development
CONFIDENTIAL 23

24. Public Markets Are Rewarding Clinical Progress
Company Product / Stage Market Revenue Mkt Cap (as of
12/31/07) / M &A
AnorMED Mozobil, Phase III Hematopoietic stem cell < $1M Acquisition by Genzyme:
transplantation $580M (10/2006)
Cell Genesys GVAX Cancer Leukemia $1M $190M
(CEGE:NASDAQ) Immunotherapy / Phase III Pancreatic Cancer
Prostate Cancer
Dendreon Provenge;:FDA review Cellular immunotherapy, < $1M $530M
(DNDN:NASDAQ) (prostrate cancer) monoclonal antibody, and
Neuvenge: Ph I (breast, small molecule product
ovarian, colon cancer) candidates to treat various
cancers
Geron Filing IND for spinal cord treatment of cancer,spinal < $4M $440M
(GERN:NASDAQ) early 2008 cord injury, heart failure,
diabetes, and HIV/AIDS
Intercytex ICX-PRO, Ph III – in Ph III Stimulate active repair in < $1M $75M
(ICX.L:LSE/AIM) for VLUs & Ph II for chronic wounds
DFUsVAVELTA® , Ph II Facial rejuvenation
ICX-TRC, Ph II Hair regeneration
LifeCell AlloDerm ; GraftJacket; Tissue-based prods for $166M $1.4B
(LIFC:NASDAQ) AlloCraft reconstructive, orthopedic,
and urogynecologic
surgical procedures
Osiris (OSIR:NASDAQ) Prochymal, Ph III & II GVHD & Crohn’s Disease $10M $410M
Provacel, a phase I Acute MI
ViaCell UC storage Collecting and preserving $59M Acquisition by Perkin Elmer
Pre-clinical work in cancer, stem cells from umbilical $300M 10/07 – 52%
cardiac & diabetes cord blood premium)
CONFIDENTIAL 24

25. Big Pharma Faces Tidal Wave of Patent
Expirations
Patent FDA Sales 3Q
Brand Name Company Generic Name Indication Expiration Approval 2007 ($MM)
Actos Eli Lilly / Takeda Pioglitazone Type 2 diabetes 2011 1999 $180
Advair/Seretide GlaxoSmithKline Fluticasone Asthma 2010 1998/1999 $1,721
Sanofi-Aventis / Bristol-Myers
Aprovel Squibb Irbesartan Hypertension 2011 1998 $392
Aricept Pfizer / Eisai Donepezil HCI Alzheimer’s 2010 1996 $100
Avandia GlaxoSmithKline Rosiglitazone Type 2 diabetes 2012 1999 $463
Cozaar Merck Losartan Hypertension 2010 1995 $814
Crestor AstraZeneca Rosuvastatin Cholesterol 2012 2003 $691
Diovan/Co- Valsartan+hydroc Hypertension (high
Diovan Novartis hlorothiazide blood pressure) 2012 1996 $1,267
Levaquin Johnson & Johnson Levofloxacin Antibiotic 2010 1996 $366
Lipitor Pfizer Atorvastatin Cholesterol 2011* 1996 $3,170
Sanofi-Aventis / Bristol-Myers
Plavix Squibb Clopidogrel Anticoagulant 2011 1998 $1,250
Seroquel AstraZeneca Quetiapine Antipsychotic 2011 1997 $1,055
Singulair Merck Montelukast Asthma 2012 1998 $1,018
Budesonide
Symbicort AstraZeneca /Formoterol Asthma 2012 2000 $371
Taxotere Sanofi-Aventis Docetaxel Cancer 2010 1995 $694
Xalatan Pfizer Latanaprost Glaucoma 2011 1995 $402
Zometa Novartis Zoledronic acid Cancer 2012 2001 $318
* Estimate – Sources: Datamonitor; Dolphin; WSJ.com research

26. Big Pharma is Actively Engaged
•Merck, Pfizer & Lily Launch
• GSK & HSCI: $25M Deal
Enlight BioScience
•GSK, AZN & Roche Help
•Pfizer Forms Launch Stem Cells for Safer
Regenerative Medicine Medicine in UK
Division
•Johnson & Johnson Invests in
Tengion & NovoCell
CONFIDENTIAL 26

27. Proteus’ Investment Strategy
1. Substantial Proprietary Deal Flow
2. Rigorous Due Diligence Process
3. Build Value through Active Management
4. Timely Exits

28. Investment Process Overview
Proteus’ systematic approach leads to…
1. Proprietary Industry Leadership, Proprietary Identify Best
Deal Flow Extensive Network Databases Opportunities
Initial Screen & Structure Deal to
1. Due Diligence and Primary Due
Deep Due
Maximize Returns
Deal Structuring Diligence
Diligence & Minimize Risk
Build Team &
1. Build Company Value Construct Optimal
Drive Execution & Structure Exit
and Maximize Exits Manage Risk to Maximize Value
Biz Model
Proteus Value
Add
…greater value for our portfolio companies and
higher returns for our LPs
CONFIDENTIAL 28

29. Proteus Investment Approach:
Deal Flow Due Diligence Build
Value
Competitive
Size of
Land-
Market
scape
Top Down EXTERNAL ECOSYSTEM OPTIONS TO ENHANCE
ANALYSIS VALUE
Strategy
BUILD
Company Proprietary
COMPAN
Selection Data Bases
Y
VALUE!
Bottom
Up
INTERNAL COMPANY DRIVERS OF VALUE
Strategy
ANALYSIS
CONFIDENTIAL 29

30. Optimal Exit At Phase II On Risk Adjusted
NPV
PHASE II EXIT STRATEGY
7
FMV / Cost of Total Compounds in Phase
22,000 31 months
FMV of Compounds
($M) 18,700
Total Cost of Development
11
18,000
26 months
14,000
12,214
10,000 No. of 22 months 31
Compounds:
100 57
6,000 18 months 4,453
2,458
2,000 1,399 865 988
520 738
-2,000 Entering Late-Stage Entering Phase I Entering Phase II Entering Phase III Entering Launch
Pre-Clinical
Ind. Period ROI*: 19% 23% 112% 25%
Cumulative ROI**: 19% 39% 180% 208%
Phase of Development
FMV = ~5x peak year revenues of
$500M discounted by probability of Source: ADIS, Pharma Projects, Fortis Bank, Paraexel, Jagle, Lehman Brothers,
launching Journal of Health Economics 22:151-185 (2003), TFG Estimates
CONFIDENTIAL 30

31. Summary of Proteus Value Proposition
 RM Technologies Are Transforming Healthcare
− Science moving at an extraordinarily rapid pace
− Technologies at a key inflection point
− Large and growing markets driven by demographics
 Only VC Firm Built From Ground Up To Focus Exclusively On RM
− Complementary skills address all the major challenges to commercialization
− Unparalleled domain expertise
− Proven records of success
− Established RM industry leadership
− Fund already has a robust pipeline
− 1st mover advantage (critical for IP, Freedom to Operate, knowledge base, best teams & deals)
 Superior Investment Strategy
− Substantial Proprietary Deal Flow
− Rigorous, Comprehensive Due Diligence Process
− Build Value thru Active Management
− Develop Big Pharma Relationships from the Earliest Stages
− Timely Exits
CONFIDENTIAL 31

32. Proteus Team & Friends