HBL Presentation

8/13/2019 HBL Presentation

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Hadasit Bio-Holdings Ltd.HBL

((Tel Aviv Stock Exchange: HDST

July 2008


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Forward Looking Statements

This document/presentation contains forward looking statements. Words such as estimates,expects, intends, plans, believes and terms of similar substance used in connectionwith any discussion of future operational performance or financial results, identify forwardlooking statements.

Such statements are subject to risks and uncertainties that could cause the actual results todiffer materially from these statements. The forward-looking statements contained hereinspeak only as of the date of this document.

The Company expressly disclaims any obligation or undertaking to release publicly anyupdates or revisions to any forward-looking statements contained herein to reflect anychange in the Company's expectations with regard thereto or to reflect any change in events,

conditions or circumstances on which any such forward-looking statement is based, in wholeor in part.

This document does not constitute or form any part of any offer or invitation to sell, or anysolicitation of any offer to purchase or subscribe for any shares in Hadasit Bio-Holdings Ltd.or any of its affiliated entities nor shall it form the basis of, or be relied on in connection with,any contract therefore.


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The Value Chain in Israeli Biotech

Academy

& TTOsIncubation

Govt.

SupportClustering

SpecializedAngels

& VCs

PublicInvestment

Co.

Strategic

Partnering

YedaYissum

Ramot

BG Negev

Hadasit

MeytavRad-BIO

Naiot

Capital-

Point

OCS

Magnet

BIRD

Bio-Disc

BriTech

BiolineBiomedix

HMO

Bio-Park

Ofer HTGlenrock

Coronis

Pontifax

BioLightClal Bio

Maayan

HBL

July 2008

Support: GMP, Regul., CRC, Underwri t ing,

IPOs, PR/IR, Analysis, Market-making,


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HBL - Company Profile

Holdings in early-stage biotech companies (until completion of Phase I) 10 companiesAll IP developed at Hadassah

3 areas (Oncology, Auto-immune diseases, Tissue engineering / Stem

cells)

CriteriaDemonstration of Proof of Concept, Blockbuster Market

Exit strategy - at end of Phase I

Leveraging Hadassah Hospital Source of Intellectual Property and future investment opportunities

Skilled personnel, infrastructure, GMP facilities and clinical trials

Established: September 2005

Traded: Tel Aviv Stock Exchange (HDST)since January 2006

Investment rounds: IPO(January 2006)$ 8 m

ConvertibleBonds(August 2006)$ 10 m , $ 5 m converted (Feb.

2007)

Strategic Investment(May 2007) - $ 2 m (Consensus Business Group)

Stockholders: Hadasit (owned by Hadassah) (52%), public (43%), CBG - (5%)
http://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.alcedo-biotech.com/assets/images/WebsiteNeu.png&imgrefurl=http://www.alcedo-biotech.com/&h=393&w=400&sz=48&hl=en&start=2&tbnid=36XD03Og-1OXhM:&tbnh=122&tbnw=124&prev=/images%3Fq%3Dbiotech%26svnum%3D10%26hl%3Den%26lr%3D


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VertoCell Cure ProtAb KAHR

100%

52%

H.B .L Ltd .

H.B .L Ltd .

H.B .L Ltd .

H.B .L Ltd .

Public 43%

Tolarex

75%34% 100% 80% 92%

Auto-immune Disease

Fort icel l

Bio.

(Nasdaq)

4.5%

Tissue Engineering

and Stem-cell Medicine

Incure TK Signal(UK)

66% 25%

Oncology

22%

Thrombo

tech

C.B.G 5%ConjuGate 30%

Drug Engineering

HBL Structure (7/08)


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4 Key Building BlocksF.I.M.S

Finance I.P. Mgt. Space

IPO

Bond

PIPE - CBG

OCS

Venture

PhilanthropyFP7

NIH

Hadassah

50 newPatents per

year

Partnering

Heb.U.

U.PENN

ExperiencedManagers

All HMOExperts

SeasonedPharma +

VC Execs.Ph.Ds /

M.Ds

Bio-Park:

6 floors of1,500 m2 o

Fullycustomized for

Biotech

companiesGMP, GLP,

Animalfacilities,

Phase I center


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2008Value Adding Milestones

KAHRHBL Investment, 5 New Compounds from UPENN,OCS approval for $ 400 K, new VP, external investment

TolarexHBL Investment, IND approval from FDA, Phase I

start, external investment ProtAbCompletion of humanizationexternal investment

TK SignalPreparation for Phase I, Phase I start

VertoCompletion of Phase Itrial, strategic partnership

IncureExpansion of trial data, Exitvia strategic partnership ConjuGateExternal Investment, Manuf., Phase I start

BiolineRx2 X Phase II completions (BL1020, BL1040)

HBLInvestment ($ 5-7 M)


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Hadassah Bio-Park - 2008

First medical center on-site bio park custom built for lifescience companies (including labs,Phase I center)

Building upon infrastructure of Hebrew U. Med. School andHadassah University Hospital (conducting more than 50% ofall translational medicine research in Israel)

HU conducts over 40% of all Biotechnology research in Israel. Hadassah Ein-Kerem campus includes Med. and Dentistry

schools, Nursing, Pharmacy &Public Health schools

First building to include 6 floors:

total available space10,000 m

2

Jerusalem municipality and JDAprovide significant financial incentives:tax breaks and grants

5 HBL companies (+ HQ) to relocate

HBL


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Investment Strategy

High return on investment through investments before the

first clinical phase (Phase I)

After proof of concept in animals and before completion of Phase I

Value multipliers: X 10 to X 50

Midway Exit planned after Phase I, clear dividend policy

1

Product target markets measured in the billions of dollars

(Blockbuster)

Oncology, tissue engineering, stem-cell medicine, auto-immune diseases

Answer to Unmet Clinical Needs (not improvement of existing drugs)

2

Risk Management Dispersing risk through a portfolio of 9 companies in different fields Professional identification of investments and guidance of the companies by a team of technology and business

experts Reducing company burn-rate by utilizing the infrastructure of Hadassah Hospital for development and clinical

research Huge pool of future investment options (IP)getting in at ground level with rapid increase in value

3


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1

At Phase IInc rease in value of

10x to 30x

HBLs Sweet Spot

Highest rate of su ccess

vi s--vis requi red

investment

Focus - Return on Investment

% required

investment

Percentof total investment

Odds that company will

advance from this phase to the next

Required investment $mYears

Approval


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The Biggest Growth in Value Has Been atClinical Proof of Concept

Phase I/II Deals

$0

$100

$200

$300

$400

$500

$600

$700

2001 2002 2003 2004 2005 2006

$Millions

0

2

4

6

8

10

12

14

16

18

20

No

.ofTransactions

$ Upfront Total

No. of Deals

SOURCE: Windhovers Strategic Transactio ns Database, June 2007

Upfront only (No milestones

or royalties)Ave. of 35 M


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Market SizeField/TreatingCompany

StrokeUS$ 500 mm;

Cardiac ArrestUS$ 1 billion

Thrombosis, MyocardialInfarction

Thrombotech

Systemic infectionsUS$ 6 billionDrug ReformulationSystemicinfections

ConjuGate

Cancer + Autoimmune diseasesUS$ 5 billion;Cancer, Inflammatory DiseasesKAHR Medical

RAUS$ 5 billion;

DiabetesUS$ 3 billion

Inflammatory and AutoimmuneDisease

Protab

DiagnosticsUS$ 1 billion;

Treatment related drugsUS$ 6 billion

Cancer Monitoringand CureTK-Signal

ParkinsonUS$ 1 billion

MS - US$ 1 billion

Cell TherapyParkinsonDisease and MS

Cell Cure

NeuroSciences

DiagnosticsUS$ 500 mm;

Treatment related drugsUS$ 2 billion

Cancer Diagnostics and cureprocesses

Incure

US $300 mm; Autoimmune diseaseUS$ 20billion

Graft Vs. Host DiseaseTolarex

US$ 2 billionLupusTherapyVerto

2 Market SizeMarket size in

billions

Unmet clinical

needs


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Management

Dr. Rafi Hofstein - Chairman of the Board. President and CEO ofHadasit Ltd., the Technology Holdings Company of HadassahMedical Organization. Ex-President of Mindsense Biosystems Ltd.Business Unit Director of Ecogen Inc., Langhorne PA after servingas the Scientific Director of its Israel office. Ph.D. and M.Sc. in life-sciences and chemistry from the Weizmann Institute of Science,

B.Sc. in chemistry and physics from the Hebrew University inJerusalem. Dr. Hofstein completed postdoctoral training at theHarvard Medical School in Boston, MA, in the departments ofbiological chemistry and neurobiology. Founder of ILSI, advisor toIsraeli Govt., BoDs: Breath ID, Evogene, Bioline, ConjuGate,KAHR, ProtAb, Tolarex.

Adv. Ophir Shahaf - CEO.Appointed March 2007 after serving asVP of the Company since Jan. 2006. Ex-VP business developmentat Protalix Biotherapeutics Ltd. Part of the founding andmanagement team of Clal Biotechnology Industries Ltd. as VP andgeneral counsel. LL.B. from Tel Aviv University, MBA from theStern School of Business at New York University. Teachesbiotechnology entrepreneurship and management, fellow of theMerage Foundation at Irvine, CA. BoDs: Tolarex, ProtAb, Biokine,Thrombotech, ConjuGate.


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Board of Directors /Advisory Board

Prof. Shlomo Mor-Yosef, HMO Director General

Yuval Cohen, Fortissimo Private Equity

Doron Debbie (Consensus Business Group)

Tsipi Gal-Yam (External) Yaron Kulas (External)

Prof. Ruth Arnon (Weizmann)

Steven G. BurrillBurrill & Co.

Tamar Howson (Bristol Myers Squibb, LexPharma)

Mary Tanner (Biogen, NY Hedge Funds)

Jonathan Silverstein (Orbimed VC)

Jonathan Fleming (Oxford Biopartners VC)

Cheryl Reicin (Torys LLP)

All department heads and leading physicians of HMO


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2 Major Strategic Investors / Partners have Invested in HBLPortfolio Companies, :

TEVA Pharmaceutical Industries - $ 1 M in Cell CureNeuroSciences(Aug. 2007)

Recognition of leadership in HESC field Attractive terms for company (value, rights)

Significant role in R&D, production and regulation

Clal Biotechnology (CBI)Option Exercise + additional inThrombotech(Sept. 2007)

$ 750 K exercise fee + $ 500 K in follow on round

Major shareholder participation (Total $ 1.75 M)

Sufficient to complete Phase I trials (Stroke / MI)

Experienced CEO and Chairman recruited

External Investments in Companies


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CompanyProductIndicat ionDiscoveryLeadSelectionEfficacy inAnimal

ModelsIND

Prep.PhaseIPhaseI / IIPha.IIPhaseIIIPMA

VertoLuposorbLupusDoneTolarexApoCellGraft Vs. Host

DiseaseTK SignalFenol

DopamMultipleMyeloma

ProtAbAP6Reum. Arth.Inf. B. Disease

ForticellOrCell /FMB'sHard-to-healWounds

IncurePRMarker

Early StageCancer detect

CellCureNeuralProgen.Multiple Scel.ParkinsonKAHRTSCP'sAuto Immune

DiseaseThromb.TBT218Myocardial.

Infar. StrokeBiolineRxBL1040

BL2030Acute MIProstate CConjuGateAmpho.

BSystemicInfections

HBL Product Pipeline (7/08)


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Progress in Portfolio Companies (I)

Cell Cure NeuroSciences Investment agreement with TEVA ($ 1 M at $ 13 pre-$) HBL holdings increased to 34.5% All IP related to Neurological Disorders (Parkinson, MS,

Alzheimers) permanently released and owned by the company Receipt of $ 2 M in "soft funding"Michael J. Fox, ALS,Beresheet, OCS

New VP of R&D, 4 additional researchers (>20 employees overall)

Verto

Completion of Phase I/II trial10 patients w. no side effects,measurable therapeutic benefits. Trial completeanalysis andpreparation of final report - ongoing.

Discussions with potential strategic partners awaiting additionalclinical data


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Progress in Portfolio Companies (II)

ProtAb (PTK) Humanization and production of the lead antibody underway

(AntitopeCambridge, UK). First samples arrived and tested.

OCS approved 60% of R&D budget ($ 500 K).

Discussions with private and VC investors. Significant interest from strategic partners.

Thrombotech Closed investment following option agreement with CBI ($ 1.75

M), including 300 K from HBL. Recruited experienced CEO and Chairman.

Full set of pre-clinical and toxicology trialsrepeated in "external"lab with excellent results


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Progress in Portfolio Companies (III)

Tolarex (PTK) Advanced preparations for clinical trialQ1/08, Passed IRB,

awaiting MOH approval and pre-IND at the FDA

Additions of personnel (7) and equipment. OCS approved R&D

budget of $ 1.1 M (60% support) CEOexperience in drug development (Alon MoranBioMass)

KAHR Medical (PTK) Negotiations with U. Penn for significant expansion of IP basis (5

new Compounds, based on TSCPs - immune-related proteins) Additional investment by HBL, Application for OCS support

Manufacturing contracts signed with Cobra and Invitrogen

CEOEx-VP of Compugen (Dr. Noam Shani)


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Progress in Portfolio Companies (IV)

Incure Expansion of ELISA study40 patients. Groups added: elders,

smokers, pregnant. Data showing detection of cancer metastases via blood sample.

Negotiation with US strategic partnerlicensing & financing deal. Next stepcommercialization via design of diagnostic kit

ConjuGate Ltd. Platform targeted at unmet needhighly toxic drugs with

adverse side effects

Products to improve efficacy while eliminating toxicity, close tophase I with lead product Leading scientists, strong IP, 3 batches already produced. Significant equity (33%), BOD representation (2 of 5) and

leading position in BD effort.


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Financial Data

$ 3.0 in cash, as of 1/6/08

3 Leading companies (PTK) raising between $ 3-5 M each

All companies show major progress since HBL Investment

Timeline: 3 companiesin Phase I within 12-18 months

Pipeline Potential: exclusive mandate (first look) for IP

from 1,200 MDs/PhDs at Hadassah, 250 patents yearly

Top-notch science, IP protection, management

HMO infrastructure allows for efficient financing, low BRCurrent PIPE

$ 5-7 M at par + warrants. Commitment from Hadassah,CBG and other key shareholders to participate.


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Summary

All companies are funded by HBL, partners

Leverage of soft funds: OCS, research foundations

Science, IP and InfrastructureHMO

Key milestone events expected (Phase I, analystcoverage and external investment)

Validation of strategic model via external strategicinvestors (CBG, Teva, CBI)

Clear Exit strategy at end of Phase I NAV = 65% discount. Target of 7.5 NIS.

Share price allows major appreciation linked tomilestones


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Thank You

Ophir Shahaf, CEO

Hadasit Bio-Holdings Ltd.

Tel.: +972-54-520-1177

HBL Presentation

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