1. Merlin Biosciences is regulated by FSA Transnational Venture Financing Jason Rushton Athens 14 th June 2005 Merlin Biosciences Limited 33 King Street St. James London, SW1Y 6RJ Tel: +44 (0)20 7811 4000

2. 2 Raising Finance-The Local View Organic growth supported by profits and local finance is possible Some local markets have many high quality VC providers e.g. UK, Germany, Nordic Soft loans and grants can be accessed Local success stories exist Indianapolis 1876

3. 3 Why Transnational Finance is Important ? Board diversification Capital magnitude Building financial and operational skill set Internationalise the company Enhanced investor profile-quality follows quality Funds cautious in certain countries Active investors better than passive followers

4. 4 Transnational Investing-UK Example Excellent quality, world class science base Multi billion investment by government Rapid technology transfer and start-up process Established science park infrastructure Sophisticated International VC investor base Well developed stock market

5. 5 Cambridge Science Park 5,000 people 152 acres (61.5 Hectares) 145,540 sq m (1,566,000sq ft) of Research and Development Facilities

6. 6 Oxford Science Park UK science parks have fostered small and large company collaborations

7. 7 Singapore-Making Transnational Finance Happen Knowledge based economy Technopreneurship 21 Life Sciences Manpower Development Programme Recent establishment: centres of excellence & science parks Houses 90+ fund management groups employing 370+ investment professionals In 2000, Singapore-based VCs committed $1.35bn + in 423 projects worldwide Regional VC hub now manages $10bn + Singapore has proven a successful case study for others to follow

8. 8 Transnational M+A-Cement Capital Too many EU companies-not enough capital Go it alone is not always the best route Funding gap-alive and well Merged entity may be more fundable Merger accesses new investor base Merger often cemented with capital Acquisition can also give cash exit

9. 9 Mergers and Acquisitions 2004-2005 DateAcquirerTargetPrice (£m) Mar 05 Jan 05 Biovitrum Paradigm CBT # Amedis # n/a Dec 04Aphton CorpIgeneon Ag44.0 Oct 04ArpidaCombion/a Oct 04InvitrogenDNA Res Innov36.1 Sep 04QSVXenova3.1 Sep 04Lynx TherapeuticsSolexa Ltd41.1 Sep 04MedigeneMunich Biotech8.5 Sep 04QiagenMolecular Staging19.6 Aug 04Graffinity AG # Myocontractn/a Jun 04StrakanProskelian/a Jun 04ProteomeInntron2.4 May 04CerepMolecular Engines2.4 May 04RepironicsProfile Therap25.3 Apr 04Alan McClayGalen (S+M)40.0 Mar 04Arakis # Sirus Pharman/a Jan 04CerepHesperion7.1 # Denotes Merlin company

10. 10 Transnational Investment Challenges Local legal frameworks Board representation Investment syndication Follow on financing Getting the deal done Exits

11. 11 Transnational Investors-Realising Value Access to International markets Mezzanine finance Broker selection and interaction Market making/support IPO window (open/shut?) Post float management/PR Management input News flow

12. 12 Transnational Investors-Business Development Active investors assist in deal making Deals worth over 500m signed with Merlin companies Novartis, Serono, Pfizer, GSK, AZ, Esteve, Eli Lilly, MSD, Teva, Adolor, Endo, Biovitrum, Genzyme, Genentech, Cubist Largest deal reported in Europe involved two Merlin Companies: Vectura/Arakis on AD237 for COPD- $380m Actively pursuing deals worth in excess of 100m

13. 13 Attracting Transnational Finance Strong management: experienced; committed; driven to succeed; ability to listen Globally competitive products or services addressing areas of major unmet needs Strong relevance to markets of choice Effective barriers to entry: IPR/know how Strong interest to retail and institutional investors Limited cash burn to exit/IPO Reasonable pre money valuations Existing investors willing to engage

14. 14 Transnational Syndicate Members-Merlin

15. 15 Greece-An Transnational Investment Opportunity Biotechnology Pharmaceuticals Medical devices Specialty Pharma Generics Services Intellectual property Local investors Stock market International view International interest

16. Merlin Biosciences is regulated by FSA Transnational Venture Financing Jason Rushton Athens 14 th June 2005 Merlin Biosciences Limited 33 King Street St. James London, SW1Y 6RJ Tel: +44 (0)20 7811 4000