2. Stern Investor Relations
Introduction
► Our sweet spot: Full service IR specializing in
biotechnology and entrepreneurial health care
companies
► Our goal: the “professional” shop
► Data-driven
► Strong network and reputation throughout Wall Street
► Experience with a wide range of companies:
► Private and public
► U.S. and global
► Wide range of market caps
► Extensive experience with small public companies
► Founded 1998
► New York City based
2
3. Stern Investor Relations
Lilian Stern, Principal
► Senior financial and investor relations adviser in
biotechnology and healthcare for over 15 years
► Has represented more than 200 companies
► Previous experience:
► Founder, Executive Vice President and Director of Investor
Relations group, Burns McClellan
► Biotechnology analyst, Donaldson, Lufkin & Jenrette
► Vice President, Biotechnology, AgriCapital Corporation
► Education:
► J.D., Harvard Law School
► B.A. (Molecular Biology), Cornell University
► Memberships:
► National Investor Relations Institute (NIRI)
► New York Biotechnology Association (NYBA)
3
5. Stern Investor Relations
Why do IR?
► Key IR initiatives:
► Improve content and regularity of discussions
with shareholders
► Engage in strategic targeting to identify new
investors and potential shareholders
► Improve analyst opinion through more positive
interactions with coverage analysts and
additional, non-banking-driven sell-side support
► Strategic outreach to financial community
► Buttoned-up disclosure policies
► Maximize upcoming corporate milestones and
news
► Strategic media outreach and placement
► Crisis communications
► Increase valuation! 5
7. Sell-side Overview
► Cultivate relationships with analysts and investment
bankers at firms with strong healthcare practices;
identify analysts who could initiate coverage and
increase visibility among investors
► Determine appropriate analyst targets based on
enthusiasm, reputation, market cap and therapeutic
area coverage
► Different tiers of banks:
► Bulge bracket (e.g., Morgan Stanley, Goldman)
► Specialized (e.g., Cowen, Deutsche Bank)
► Boutique (e.g., Leerink Swann, RW Baird)
► Conference invitations are key for visibility program
► Long-term strategy: obtain a mix of different tiers of
coverage, thereby reaching a broader audience and
increasing credibility
7
8. Major U.S. Sell-side Players
Firm Analyst(s) Location(s) Firm Analyst(s) Location(s)
Top National Firms Top National Firms
Barclays Capital Jim Birchenough San Francisco Oppenheimer Bret Holley New York
Brian Abrahams New York
Citigroup Yaron Werber New York John Newman (spec. pharma) New York
Lucy Lu New York
Piper Jaffray Ted Tenthoff New York
Amit Bhalla (spec. pharma) New York
Thomas Wei New York
John Boris (spec. pharma) New York
David Amsellem (spec. pharma) New York
Cowen & Co. Eric Schmidt New York
Phil Nadeau New York
UBS Securities Maged Shenouda New York
Ken Cacciatore New York
Jeff Elliott New York
Ian Sanderson (spec. pharma) Boston Derik de Bruin New York
Credit Suisse Securities Mike Aberman New York
Marc Goodman New York
Catherine Arnold (spec. pharma) New York
Ricky Goldwasser New York
Deutsche Bank Mark Schoenebaum New York
Robyn Karnauskas New York
David Steinberg San Francisco
Goldman Sachs May-Kin Ho New York
Jami Rubin New York
Kim Seth New York
Shibani Malhotra (spec. pharma) New York
JPMorgan Geoff Meacham New York
Chris Schott New York
Cory Kasimov New York
Matthew Roden New York
Lazard Joel Sendek New York
Terence Flynn New York
Bill Tanner (spec. pharma) New York
Merrill Lynch (Banc of America) Gregg Gilbert New York
Eric Lo New York
Rachel McMinn San Francisco
Morgan Stanley Steve Harr New York
Marshall Urist New York
Sapna Srivastava New York
8
9. Additional Active Sell-side Players
Firm Analyst(s) Location(s) Firm Analyst(s) Location(s)
Regional/Boutique Firms with Established Biotech Practices Other Firms
BMO Capital Markets Bert Hazlett New York Boenning & Scattergood Debjit Chattopadhyay West Conshohocken
Jason Zhang New York Derek Jellinek West Conshohocken
Canaccord Adams Adam Cutler New York Brean Murray Jonathan Aschoff New York
George Farmer New York Burrill & Co.
Collins Stewart Salveen Kochnover New York Cantor Fitzgerald Pamela Bassett New York
Louise Chen (spec. pharma) New York Caris & Co. David Moskow itz New York
Glen Mill (spec. pharma) New York Jim Molloy Boston
Jefferies & Co. Eun Yang New York CRT Capital Group Leah Hartman Stamford, CT
Peter Bye (spec. pharma) New York Dawson James Securities
Marko Kozul San Francisco First Global Devina Mehra New York
David Windley Nashville Fortis Securities
JMP Securities Charles Duncan New York
Jason Butler New York FTN Equity Capital Markets Arlinda Lee New York
Liisa Bayko Chicago Tim Chiang (spec. pharma) New York
Leerink Swann & Co. Josh Schimmer New York GMP Securities Cosme Ordoñez Montreal
Gary Nachman (spec. pharma) New York Hapoalim Securities Raghuram Selvaraju New York
Joseph Schwartz Boston Jesup & Lamont Securities Stephen Dunn Fort Lauderdale
Howard Liang Boston Corporation William Dawson Fort Lauderdale
David Larsen Boston Ladenburg Thalmann (Punk Matt Kaplan New York
John Sullivan (spec. pharma) Boston Ziegel) Juan Sanchez New York
Needham & Co. Mark Monane New York LFS NY, Inc. Will Ho New York
Alan Carr New York Dave Ferreiro New York
Elliot Wilbur (spec. pharma) New York Maxim Group Yale Jen New York
RBC Capital Markets Jason Kantor San Francisco
MDB Capital Group Rahul Jasuja Santa Monica
Michael Yee San Francisco Merriman Curhan Ford & Co. Joseph Pantginis New York
Adnan Butt New York Ed Nash New York
Philippa Flint Toronto
Mike King New York
Doug Miehm (spec. pharma) Toronto Montgomery & Co.
Robert W. Baird & Co. Chris Raymond Chicago
Morgan Joseph Shiv Kapoor San Francisco
Thomas Russo Chicago
Natixis Bleichroeder Jon Lecroy New York
Rodman & Renshaw Elemer Piros New York
Corey Davis New York
Reni Benjamin New York
Noble International Brian McCarthy New York
Simos Simeonidis New York
Laurence Bleicher New York
ThinkEquity Jason Kolbert New York
Roth Capital Partners Scott Henry New port Beach
Brian Skorney New York
Andrew Vaino New port Beach
Thomas Weisel Partners Ian Somaiya New York
Sanford C. Bernstein & Co. Geoffrey Porges New York
Annabel Samimy New York
Stephen Willey New York Soleil Securities Manoj Garg (spec. pharma) New York
Wachovia Securities Aaron Reames Boston Stifel, Nicolaus & Company
Michael Colon St. Louis Stonegate Securities Laura Engel Dallas
Michael Tong (spec. pharma) New York Summer Street Research Lei Huang Boston
Wedbush Pacific Growth Life Greg Wade San Francisco Partners Carol Werther Boston
Sciences Liana Moussatos San Francisco Jon Stephenson Boston 9
Patricia Bank San Francisco SunTrust Robinson Humphrey Frank Pinkerton Atlanta
Kimberly Lee San Francisco WBB Securities Steve Brozak Westfield, NJ
William Blair & Co. John Sonnier Chicago
10. Upcoming IR Conferences
September
29 Maxim Group Growth Conference (New York)
October
5-6 JMP Securities Healthcare Focus Conference (New York)
6 William Blair Emerging Growth Stock Conference (New York)
12-13 Natixis Bleichroeder “The Hidden Gems Conference” (New York)
28-29 The 8th Annual BIO Investor Forum (San Francisco)
November
3-4 Oppenheimer & Co. 20th Annual Healthcare Conference (New York)
10 Merriman Curhan Ford Investor Summit (New York)
11-13 Credit Suisse 2009 Healthcare Conference (Phoenix)
17-18 Lazard 6th Annual Life Sciences Conference (New York)
December
1-2 Piper Jaffray 21st Annual Health Care Conference (New York)
2-3 JPMorgan SMid Cap Conference (New York)
3 Raymond James Fall Investor Conference (Boston)
15 Deutsche Bank Biotech Boston Confab (Boston)
10
11. Targeting the Buyside
► Early adopters
► Target institutions to create base of knowledge
about company in the investing community
► Quantitative analysis
► Target institutions who are likely to buy based on
their positions in our peers (ex: late-stage cancer
companies, micro-cap, etc.)
► Tactics
► Conference presentations
► Roadshows
► Group events
► Bank-sponsored roadshows and events
11
12. Sample Buyside Targeting
Targeting Rationale
Investor Investor
Under Under
weighted in weighted in
CRIS CRIS Top Holders in Top Buyers in
Biotech Compared to Compared to Companies Companies
Equity Biotech Assets as a Mid-Stage Additional with Under with Under
Assets Assets % of Total Oncology Oncology $100MM $100MM
Institution Location Contact $MM $MM Assets Peers Peers Market Cap Market Cap
New York Regio n
AllianceBernstein L.P New York Pamela Tublin 187,093 .4 6,549.5 3.5% x x
ClearBridge Advisors New York Nick Wu 54,357 .3 4,559.7 8.4% x x
TIAA CREF New York Joel Emery 116,573 .9 2,890.1 2.5% x x
Goldman Sach s Asset Management US New York Craig Glassner 81,956 .9 2,049.3 2.5% x x
Columbia Management Advisors, In c. New York Bryan Knepper 106,651 .8 1,852.7 1.7% x x x
J.P. Morgan Investment Management Inc. New York Brian Kim 80,647 .2 1,634.9 2.0% x
OppenheimerFunds, Inc. New York Heidi Heiken feld 68,068 .3 1,590.0 2.3% x
Lord, Abbett & Co. LLC Jersey City Lavina Talu kdar 42,248 .0 1,382.3 3.3% x x
Federated Investors, Inc. New York Tom Brakel 23,473 .0 1,190.1 5.1% x x
Boston
Fidelity Management & Research Boston Rajiv Kaul 413,373 .0 19,728.5 4.8% x x x
Wellington Managemen t Company, LLP Boston Ed Owens 205,917 .2 6,784.0 3.3% x x x
Jean Hynes
Putnam Investmen t Managemen t, L.L.C. Boston Kelsey Chen 42,503 .3 1,298.7 3.1% x
BlackRock Investment Management, LLC* Boston Eric Trepanier 56,828 .1 921.6 1.6% x x
Adage Capital Management, L.P. Boston Frank Zavrl 13,091 .0 796.0 6.1% x
MFS Investment Management Boston Dennis Allaire 74,013 .5 771.2 1.0% x
E vergreen Investment Management Company Boston Rob Junkin 35,237 .0 732.7 2.1% x
12
13. Investor Relations Strategy – The IR Game Plan
► Messaging
► Revise as appropriate to ensure communications continue to resonate with
financial community
► Leveraging newsflow and upcoming milestones
► IR-driven media outreach
► IR plan and calendar
► Strategic IR planning
► Building visibility and maintaining current relationships
► Global buyside and sell-side targeting
► One-on-one program with analysts/portfolio managers (roadshows)
► Conference targeting and coordination
► Conference calls for earnings announcements and key news events
► Announcement planning
► Collateral materials
► Evaluate effectiveness of key IR resources and assist with
development and revisions
► Investor presentation
► Website
► Fact sheets 13
15. Stern Investor Relations
Previous Success Stories
► Helped Millennium Pharmaceuticals strategically court
specific analysts to improve their coverage of the
company, helping to raise the stock price and eventually
the company’s value when it was acquired by Takeda.
► Introduced Alnylam, the first preclinical IPO “platform”, to
Wall Street, helping to leverage the value of this
breakthrough technology platform, IP and the promise of
a groundbreaking new approach to therapeutics. The
company is one of the few recent IPOs to be trading up
from the offering.
► Helped SciClone overcome previous clinical setbacks by
repositioning the portfolio story and introducing them to
the appropriate contacts in the industry. Several months
later, two analysts initiated positive coverage of the
company, and the stock continues to trend upward.
15
16. Stern Investor Relations
Stern IR
► Proven track record; experienced but not jaded
► Specialized industry knowledge and expertise
► Within healthcare IR, we do everything, and we
have extensive experience working with a wide
range of companies in almost every conceivable
situation, cultivated over the years
► Senior-level attention and rigorous support
from account teams
► Strong relationships with the investment
community
► Focus on best industry practice
► Commitment to superior client service
16
