RBC Royal Bank - Steven Clarke - Life Sciences

Capital Markets PerspectiveSteve ClarkeVice President, Global Investment BankingRBC Capital Markets, VancouverSeptember 24, 2009

RBC Healthcare Group PresenceOver 30 Banking and Research Professionals With Healthcare ExpertiseSectorsLocationsProductsPharmaBiotechnologyNew YorkTorontoFollow-ons /IPORegisteredDirects/ PIPEs/PrivatePlacementsMedicalDevicesDiagnosticsSan FranciscoMontrealConvertiblesM&ATransactionsHealthcareServicesHealthcare ITDenverVancouverCorporateBankingCorporateServices /ShareRepurchasesRBC has the Full Breadth of Healthcare Sector Expertise1

Canadian Indices since January 2008125%100%TSX-17%75%TSXHealthcare-20%50%25%TSX IndexSTHLTH IndexJan-08 Apr-08 Jul-08 Nov-08 Feb-09 May-09 Sep-092

U.S. Indices since January 2008125%100%S&PHealthcare-19%75%S&P-28%50%25%S&P IndexS&P Healthcare IndexJan-08 Apr-08 Jul-08 Nov-08 Feb-09 May-09 Sep-093

Life Sciences Stock Performance by Market CapSince January 2008> $2B15%$1B - $2B(10%)$500M - $999M16%$200M - $499M1%< $200M(45%)(90%) (80%) (70%) (60%) (50%) (40%) (30%) (20%) (10%) 0% 10% 20% 30%4 4

IPO Market• Very ‘thin’ IPO window since 2005 particularly through 2008 / 2009• IPO valuation on average 1.5x last private round2,000$1,923401,60032Transaction Value (US$mm)1,200800$950$1,126$1,2602416Number of Transactions4008-$0$852004 2005 2006 2007 2008 2009 YTD-5

Attracting a Partner• ‘Story’ must be complimentary with the target organization• Relationships and trust go a long way• The more people that know your ‘story’ the better chance of making amatch• Begin ‘getting the word out’ today, regardless of when you need the cashA track record of executing establishes credibility• Ultimately, demand and options drive price attainableA one party negotiation will be really tough – it just willTry to be flexible and accommodative• Process is likely to be long & hard with many disappointments, so setexpectations for a marathon not a sprint8 8

Conclusions on Pharma / Biotech in the Capital Markets• “Challenging” and rational markets are here to stay• No magic bullets in drug development, none also in the capital markets• Capital access becoming increasingly concentrated in larger entities Attracting partnership funding is key• Industry fundamentals and prospects are strong, recognizing the risks• Companies can take steps to shape their own future10