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Presentation purpose; use. This document has solely the purposes
of (i) providing summary information regarding Lyfebulb. (together
with its investment management and other affiliates) (the “Firm”);
(ii) determining your level of
interest in investing or co-investing with Lyfebulb. (the
“Fund”); and (iii) providing general background information on the
anticipated operations of the Firm and the Fund. This document may
not be used for any other purpose
without the Firm’s prior written consent. Fund Characteristics;
No Diversification. This presentation outlines, for illustrative
purposes only, certain expected Fund characteristics. The Fund is
in a structuring phase and the structure,
term, and general parameters described herein may be materially
changed before any interests in the Fund are offered. The Fund’s
actual structure, including its portfolio composition, will be
determined over the course of the
investment period. Consequently, the Fund’s actual portfolio
composition may differ materially from the parameters presented in
this presentation, and may change over time.
KARIN HEHENBERGER, MD, PHD
CEO AND FOUNDER
VENTURES
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2LYFEBULB OVERVIEW
• Chronic disease affects 50% of the population, is a rapidly
growing global market with huge unmet patient needs – but the
customer, ie the patient is disconnected from the providers and
manufacturers
• Founded by Dr Karin Hehenberger, Dr Steve Squinto, Venture
partner Orbimed and Riccardo Braglia, CEO Helsinn
• Lyfebulb connects industry with patients, enabling access to
data, innovation and consumers
• Patient entrepreneur challenges in chronic disease areas:
drive innovation, bridge gaps and engage the customer
• Patient ambassadors are passionate leaders in the community
who create marketing opportunities for companies
• Captive and empowered network through online and live
activities: social media, live events, books, ecommerce site and
speaking engagements
• Lyfebulb Ventures: an innovation fund focused on diabetes and
associated diseases
Lyfebulb functions as a bridge between industry and patient
communities
LYFEBULB
LYFEBULB OVERVIEW
-
AGENDA
• Overview • Diabetes and Autoimmune
Disease • Team• Lyfebulb Ventures • Conclusions
LYFEBULB
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4VISION
LYFEBULB
Lyfebulb Ventures is an early-stage Diabetes Innovation Venture
Fund focused on breakthrough opportunities in diabetes with the
goals to deliver a superior return on investment and to remove the
burden of diabetes and other autoimmune diseases
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5LYFEBULB VENTURES OVERVIEW
• Diabetes represents a large and rapidly growing global market
with huge unmet medical needs
• There is an immense and untapped opportunity in type 1
diabetes (T1D), an autoimmune disease with a more aggressive and
predictable disease progression, which can be extended to other
autoimmune disease and insulin-dependent type 2 diabetes (T2D)
• Strong team, with a track record of building valuable
companies, including diabetes experts, life sciences entrepreneurs
and former executives, driven by a desire to remove the burden of
diabetes while returning a profit to investors
• Second to none global network in medical science, the
corporate world and the investment community allowing for superior
deal flow and favorable exit scenarios
LYFEBULB
LYFEBULB VENTURES OVERVIEW
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DIABETES AND AUTOIMMUNITY ARE
PANDEMICS THAT KILL AND CRIPPLE
LYFEBULB
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7
MOST COMMON CAUSE OF:• Kidney failure• Blindness•
Amputations
5% OF ALL PEOPLE WITH DIABETES DIE FROM LOW BLOOD SUGAR EACH
YEAR
4 TIMES HIGHER RISK OF:Stroke and heart attacks
INCREASED RISK OF:Alzheimer’s disease and depression
3rd MOST COMMON CAUSE OF DEATH IN THE US
DIABETES – GLOBAL PANDEMIC THAT KILLS AND CRIPPLES
415+ million
People worldwide have diabetes
$245 billion
$13,700
Total cost of diabetes in the US
Annual cost of living with
diabetes
29 million
People in the US have diabetes
86 million
People in the US with pre-diabetes
80%People with diabetes live
outside the US and Europe
5-10%
Type 1 diabetes of the total number
of people with diabetes
1.6 millionPeople are
diagnosed with diabetes each year
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8
COMMON ETIOLOGY:• Similar genetic background • Both genes and
environment play a role
WOMEN ARE MORE AFFECTED BY AUTOIMMUNE DISEASE THAN MEN
SYMPTOMS CROSS MULTIPLE ORGANS AND ACROSS MEDICAL
SPECIALTIES
PEOPLE OFTEN HAVE MORE THAN ONE AUTOIMMUNE DISEASE
2/3 TOP-SELLING DRUGS 2016 WERE FOR AUTOIMMUNE DISEASES: HUMIRA
AND REMICADE
AUTOIMMUNE DISEASES – MORE THAN 100 DIFFERENT KINDS
>100 billion
Lowball estimate for total cost
annually
1.3%
50 million
Hashimoto’s disease in the US
population
People in the US with autoimmune
disease
400,000
People in the US with MS
1.3 million
People in the US with Rheumatoid
Arthritis
1%
Celiac disease in the US population
2-3%
Psoriasis in the US population
1.6 million
People in the US with IBD
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9DIABETES
LYFEBULB
• Insulin replacement, the only option in T1D and for many T2D,
saves lives, but does not render people without risk of
complications
• Both T1D and Insulin Dependent T2D are addressed by many of
the same regenerative targets, growing the market by 4-5 times
• T1D is characterized by an inability to control blood sugar
due to the loss of insulin secreting cells (beta-cells) driven by
an autoimmune process: genes and environment are involved•
Autoimmune diseases such as Celiac Disease, Inflammatory Bowel
Disease (IBD), Multiple Sclerosis (MS),
Rheumatoid arthritis (RA) etc have similar pathology and
increase the size of the target market
• Improved understanding of the pathology of T1D enables earlier
diagnosis, identification of at-risk scenarios and provides the
potential for prevention and treatment to preserve, regenerate or
replace beta-cells
• The importance of incentive models and data-driven approaches
are showing promise in improving outcomes, and reimbursed, for both
T1D and T2D
WHY WE FOCUS ON DIABETES – THE TIMING IS RIGHT
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10
DIABETES – $60 BILLION+ MARKET FOR DRUGS & DEVICES
Source:
http://www.strategyr.com/MarketResearch/Blood_Glucose_Blood_Sugar_Monitoring_Devices_Market_Trends.asp,
https://globenewswire.com/news-release/2016/08/25/866781/0/en/Human-Insulin-Market-Poised-to-Surge-from-USD-27-0-Billion-in-2015-
to-USD-43-6-Billion-Globally-by-2021-ZionMarketResearch-Com.htm,l,
http://seekingalpha.com/article/3971708-medtronics-insulin-pump-deal-shows-size-mattershttps://globenewswire.com/news-release/2015/09/24/770740/10150477/en/US-445-8-Million-Worth-
of-Continuous-Glucose-Monitoring-Systems-to-be-Sold-by-End-of-2015-Future-Market-Insights.htmlhttps://globenewswire.com/news-release/2016/07/05/853712/0/en/Antidiabetics-Market-size-worth-USD-116-Billion-by-2023-Global-Market-Insights-Inc.html
$10 billion
US glucose monitoring
market
$700 million
$30 billion
US insulin pump market
US insulin market
$450 million
US CGM market
$20 billion
US antidiabetesmarket
http://www.strategyr.com/MarketResearch/Blood_Glucose_Blood_Sugar_Monitoring_Devices_Market_Trends.asphttps://globenewswire.com/news-release/2016/08/25/866781/0/en/Human-Insulin-Market-Poised-to-Surge-from-USD-27-0-Billion-in-2015-to-USD-43-6-Billion-Globally-by-2021-ZionMarketResearch-Com.htm,lhttp://www.directory.ac/files/dumblists/logos/novartis.jpg
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11DIABETES
LYFEBULB
• 5.7% of venture financings in diabetes between 2005-2014,
while 24.2% in oncology
• 5.3% of IPO capital into diabetes companies, with 22.8% in
oncology
• 3% of M&A and licensing deals were in diabetes drugs,
diagnostics or devices, while 26% and 28% were in oncology and
infectious disease respectively
• Perception of a lifestyle disease with untapped potential for
smart investors
LESS CAPITAL TO THE DIABETES SECTOR AS COMPARED TO
COMPARABLES
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12DIABETES
LYFEBULB
2 Partnerships incl $5M
investments by Novo Nordisk
and Lilly toward an automated
insulin delivery system
2016 and 2017
Series A financing for its
automated insulin delivery
system; Collaboration with Abbott
$35.5M
2016. 2017
Acquisition of Animas by Johnson
& Johnson, for its consumer-
friendly insulin pump
$518M
2006
Series C financing for its
diabetes management system
$44.5M
2016
• Animas and Dexcom investors yielded high ROI through sale to
JNJ and an IPO • Patients benefited from insulin pumps and
continuous glucose monitoring systems, showing improved
glucose control and better outcomes • In recent years, investors
have focused on fully automated systems, Bigfoot and BetaBionics,
and overall
diabetes management tools, Livongo• Improves compliance and
glucose control but do not CURE the patients
• Breakthrough technologies such as cell therapy and vaccines
have even bigger potential
Initial Public Offering 2005
Current Stock px: $81
Market cap: $6.9B
EVIDENCE THAT PLACING THE RIGHT BETS YIELDS FINANCIAL AND
PATIENT GAINS
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THE TEAM
LYFEBULB
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14THE TEAM
KARIN HEHENBERGER
MD, PhD
CEO and Founder, Lyfebulb
Fund Manager, Lyfebulb Ventures
LYFEBULB
STEPHEN SQUINTO,
PhD
Chairman, Lyfebulb
Director, Lyfebulb Ventures
Venture Partner, Orbimed
(Co-founder and former COO Alexion)
ANNA HEHENBERGER,
JD
General Counsel, Lyfebulb
Operations, Lyfebulb Ventures
ANTHONY SUN
MD
Investment Advisor,
Lyfebulb Ventures
CEO Zeno Pharmaceuticals, Inc.
Former Partner, Aisling capital
THE TEAM
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15THE TEAM
MICHAEL BEALMEAR
Software Executive and
Entrepreneur
LYFEBULB
RICCARDO BRAGLIA
Co-founder Lyfebulb
CEO and Vice Chairman,
Helsinn Holdings
ALAN LEWIS, PhD
CEO, Diavacs
(Former CEO JDRF, Viacyte)
LISA RICCIARDI
Former SVP Pfizer, Medco,
Venture partner Essex
Woodlands
THE EXECUTIVE BOARD
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16THE TEAM
Robert Langer, PhD, Chair
David H. Koch Institute Professor, Massachusetts Institute of
Technology: Innovation, Biomedical engineering
1,380 articles, over 1,130 issued and pending patents worldwide,
licensed or sublicensed to over 300 pharmaceutical, chemical,
biotechnology and medical device companies
Mark Atkinson, PhD
Professor, University of Florida, Gainesville, Immunology and
Diabetes
More than 350 articles, recipient of numerous awards in the
space of diabetes, second most cited investigator in diabetes
Richard Insel, MD
Former Chief Scientific Officer, JDRF
Oversaw JDRF’s scientific portfolio for over 10 years, 26 year
tenure at Univ Rochester, Scool of Medicine, scientific
co-founder
Praxis which developed a vaccine for childhood meningitis
Åke Lernmark, MD, PhD
Professor, Lund University, Immunology and Diabetes
More than 500 articles,, discoverer of GAD65 antibodies,
genomics and pathogenesis of T1D
LYFEBULB
SCIENTIFIC ADVISORY BOARD
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17THE TEAM
• Global approach, including North America, Europe, China,
Australia, India and Israel• Representatives from clinical
diabetes, deep science and digital health, chaired by Bob Langer,
one of the most
successful scientists to date
Jianping Weng, MD, PhD
Professor, SunYat-sen University, China; Endocrinology and
Diabetes
Chang Jiang Scholar, Ministry of Education, IDF Head China
Leonard Harrison, MD, PhD
Professor, Walter and Eliza Hall; Australia; Population health
and Immunity
Yuval Dor, PhD
Professor, Hebrew University, Israel;
Head of developmental biology and cancer research
Brij Mohan Makkar, MD
Professor, Delhi Diabetes Center, India; Endocrinology and
Diabetes
LYFEBULB
GLOBAL SCIENTIFIC ADVISORY TEAM
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18THE TEAM
LYFEBULB
Anthony Sun, MD
CEO, Zeno, Former Partner, Aisling Capital
IPOs: Versartis (VSAR), Paratek (PRTK), Quintiles (Q), Vivus
(VVUS), Trade sales: Cynapsus (Sold to Sunovion),
RetroSense (Sold to Allergan), MAP Pharma (MAP; Sold to
Allergan)
Donald A. Lucas
Chairman, Lucas Venture Group
Led investments in: DexCom (NASDAQ: DXCM),),
Avinger(NASDAQ:AVGR), Obalon (OBLN:Nasdaq). Coulter
Pharmaceutical (acquired by GlaxoSmithKline - GSK:NYSE). Early
investor in: Intuitive Surgical
(ISRG:Nasdaq), Palantir, Oracle (ORCL: Nasdaq),
Adobe/Macromedia(NASDAQ:ADBE) and Berkeley lights, Inc
INVESTMENT COMMITEE TRACK RECORD
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LYFEBULB
VENTURES
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20LYFEBULB VENTURES
• Driven by a strong scientific compass, while also placing
importance on regulatory pathways, business plans and marketability
of any approach
• Strong Team with extensive medical science, operational and
investment experience
• Global network in the diabetes, life sciences and investment
communities
• Unique Pipeline through our Team, network, and our Patient
Entrepreneurs
• Leverage through the Lyfebulb Network and Market place to
enhance visibility for Lyfebulb Ventures and its portfolio
companies
DIFFERENTIATION
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21LYFEBULB VENTURES
CURE
TREAT
PREVENT
REGENERATIVE MEDICINE
IMMUNOLOGY
BEHAVIOR MODIFICATION
Mobile Apps
Hepatic & Glucose-Sensitive Insulin
T2D
T1DVaccines
Microbiome
Cell Replacement
Cell Regeneration
Closed Loop
Incentive Models
GLUCOSE CONTROL
SCOPE: DIABETES AND AUTOIMMUNE DISEASE
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22LYFEBULB VENTURES
• The time is right for new therapies and cures in diabetes:•
Multiple blockbuster drugs have been launched in the past ten years
for other
autoimmune diseases• Improving outcomes is being reimbursed,
including adherence methods, incentive
models, opening up for platform technologies
• Focus on immunology, regenerative medicine, disruptive medical
device and healthcare IT, areas where platform technologies could
be expanded into other autoimmune and chronic diseases
• All-star scientific and investment teams• Global
representatives from the diabetes research and technology space
• Multiple examples of higher than above ROI in the life
sciences space (diabetes)• Novo Nordisk, Lilly, Minimed, Animas,
Dexcom, Insulet, etc etc
OPPORTUNITY
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23LYFEBULB VENTURES
• Preventing/arresting cell destruction:• Earlier diagnosis
using autoantibody biomarkers• Immune modulation using targeted
immune therapies, potentially used as combination therapies
• Regenerating existing beta-cells using drug therapy that
stimulates growth and prevents destruction
• Replacing beta-cells using cell therapy, immunology and/or a
protective device• Xeno, embryonic and adult stem cells•
Transdifferentiation
• Disruptive devices including approaches to “close the
loop”
• Leveraging big-data to understand patterns and modify
behavior
• Out-of-the box solutions including glucose-sensitive
insulin
TYPES OF INVESTMENTS
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24LYFEBULB VENTURES
• COMPANY 1: Raising $300,000 toward completing animal studies
for a nanotechnology device aimed to protect cells replacing the
missing beta-cells in type 1 or late-stage type 2 diabetes
• COMPANY 2: Raising $250,000 toward completing clinical proof
of concept for a peptide mix that intends to reduce hypoglycemia in
pump-treated T1D (and T2D) patients
• COMPANY 3: Raising $500,000 toward IND in T1D for a novel
nanotechnology that upregulates natural autoregulatory T cells in
the pancreas – applications for other autoimmune disease
• COMPANY 4: Raising $12M as convertible debt or equity toward a
technology modification in a pivotal trial for the first cell
therapy company in T1D (T2D)
• COMPANY 5-10: leverage our global reach and finding young,
upcoming scientists who can solve key questions!
LYFEBULB
EXAMPLES OF TYPES OF COMPANIES LYFEBULB VENTURES IS
TARGETING
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25LYFEBULB VENTURES
LYFEBULB
• The Fund: organized as a Delaware limited partnership, with
Lyfebulb LLC as a member of the General Partner• Robust management
and leading expert advisors • Size: $20 million anticipated
• Expected investments up to twenty companies, focused on
autoimmune diabetes: preventing, halting the progression, curing
the disease and improving outcomes and quality of life
• Each target receiving between $500K to $1M; allowing for
follow-ons for a total of $1-3M each • Board seats will be
important to each investment • Investment period 1-3 years,
followed by a 1-2 year exit period
• Minimum investment $100,000; co-investments may be permitted
on individual negotiated terms • Investment Committee seats
accompany $5 million+ investments • Limited partners include
existing Lyfebulb investors
• Fund fees: 2% management fee and 20% performance fee • Simple
waterfall, no clawback
• Second Fund expected to be raised after 3 years
LYFEBULB VENTURES TERMS
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26LYFEBULB VENTURES
LYFEBULB
• Innovative technology
• Addressing an unmet medical need
• Large potential market opportunity
• Established legal entity
• IP at least filed
• Strong team
• Solid business plan
INVESTMENT CRITERIA
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27
CONCLUSIONS
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28CONCLUSIONS
• Diabetes and autoimmune disease are global pandemics with
severe medical and financial consequences – the unmet patient need
remains large
• We are creating Lyfebulb Ventures, with the goals to deliver
superior return on investment and to remove the burden of diabetes
and autoimmune diseases
• The focus of the fund is in transformative therapies and cures
of diabetes, including immunology, regenerative medicine, devices
and big data – areas primed for success, because of their platform
potential and recent scientific development in immunology and the
improved understanding of diabetes pathology and disease
progression
• Our strong team, global reach, tremendous network, operational
experience, as well as Lyfebulb’s presence as a force in the
diabetes community differentiate us from other entities
LYFEBULB
CONCLUSIONS