Biocon Consulting Biocon Consulting CorporationBUSINESS PLAN PRESENTATION

Excellence in Life SciencesWORLDWIDE COMMERCIALIZATION OF NEW AND INNOVATIVE TECHNOLOGIES IN BIOTECHNOLOGY, MEDICAL DEVICES AND PHARMACEUTICAL DRUG DEVELOPMENT.

THE MISSION OF BIOCON CONSULTING CORPORATION IS TO BECOME THE LEADINGNETWORK FOR BRINGING THE MOST INNOVATIVE PRODUCTS INTO MEDICAL MARKETS

Positioning• Product development within Life Sciences is traditionally done

entirely in-house, however the growing trend is to outsource services from expert organizations in order to decrease time to market and increase quality.

• The NPD companies do apply new technologies in order to increase quality and efficiency of their processes.

• The emergence of service organizations has increased efficiency • The emergence of service organizations has increased efficiency of firms to allocate their financial and human resources according to their corporate strategy and core competences due to outsourcing of data intensive clinical trials for example.

• Biocon Consulting is a unique network of suppliers due to its critical presence in the high tech clusters worldwide

• Thus Biocon Consulting is proposing a portfolio of product and services for commercialization of innovations and new technologies for the R&D of MNEs and SMEs within the industry

• Biocon Consulting works only in the high end niche.

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Competition• Biocon Consulting is not competing with traditional

consulting companies, because we commercializeexisting innovative products and servcies

• Biocon is offering a portfolio of service related to commercialization of new - innovative –hightechnologies within Life Sciences (niche)technologies within Life Sciences (niche)

• Compared to traditional (usually local) distrubutors, Biocon Consulting offers know how and skills in the entire commercialization chain from innovations to ready products of latest technology

• Biocon Consulting is operating worldwide, and itspresent in the most innovatove regions of the world in Life Sciences is critical for knowledge transfer.

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The Team• CEO Margita Engstrom• CEO Herve JACQUIAU (under discussion)• CTO Fred Thiel (under discussion)• CFO to be recruited• Managing Director USA and Americas Chris

Behrenbruch (under negotiation) Behrenbruch (under negotiation) • Managing Director India to be recruited• JV in Japan • Managing Director France Fabrice Plasson (under

discussion)• Managing Director UK: Peter Benson under negotiation• Managing Director Finland Margita Engstrom

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Biocon Consulting Corporation

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Market Summary• The new product development (NPD) cycle pressure to

decreased the time to market and costs The companies are facing more global competition, in addition to increase in effort to achieve global regulatory compliance, putting even more pressure on NPD.

• By offering a global network of the best products and services in the world, Biocon Consulting is able to compete services in the world, Biocon Consulting is able to compete inquality and time to market with technology leadership.

• Biocon Consulting is networked with financial, technology and research centers, service and product providers the global market place aiming at providing technology leadership.

• We are in the business commercialization of unique and carefully selected products, services, innovations and technologies to the R&D processes of our clients.

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Threats and Opportunities• Increased regulations• Increased product recalls•No uniform global regulations

Quality

•Due to quality concerns and complex regulatory compliance the cost of NPD tend to increaseCost

• Able to offer global compliance due to global network

• Knowledge of global compliance due to global presence

Global organization

• Able to produce high quality services at low cost since access to global production centers

• Virtual hierarchy erases troublesome hierarchy and inefficient administration

Networked

organizationCost

•The time to market has decreased for some market areas, however the pressure to improve is continuously present

•There is no room to be late-somewhat late in market launch can decrease the profits by 2/3.

Time to market

troublesome hierarchy and inefficient administration

organization

• By being present in all the global « Silicon valleys« Biocon Consulting has access to technology leadership

• The strategy is to use new technologies in order to decrease cost, improve quality and decrease time to market.

Technologyleadership

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Business Concept

• Biocon Consulting commercializes new and innovative products and services into the global market place that improves quality, decreases cost and time to market of compared to traditional NPD methods (depend on the product/service).

• Biocon Consulting enhances the development of new technologies by working with institutions, research centers, and business by working with institutions, research centers, and business incubators by helping them commercializing innovation- by taking them rapidly through the NPD pipeline with fundraising services, search of qualified personnel and integrating them to our network (resulting in network effects and learning).

• The strategy is to secure cash inflows from the beginning through commercialization of innovative products and services, plus ensuring long-term income by involving already at the basic research and innovation phase of new technologies-that becomes products on the market one day.

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Goals and Objectives• Biocon Consulting Corporation is born global. The goal is to

during the first year have running operations in all six market areas.

• The net income for 2008 is estimated to be 400 k EUR.• The net income for 2009-2013 (after fundraising and

expansion) is increasing from 950 k$ to 18M$ in 5 years.• The lean organization and being a service house • The lean organization and being a service house

commercializing products and innovations, enable a high profit margin

• The goal is to double the sales revenue each year, an acquiring more personnel to ensure growth.

• The 5th year exit strategy for the investors is a buyout: MBO or M&A with a return multiple of 10.

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Financial Plan• The sales forecast is based on 6 offices/JV and 4

product lines

– CROs and Contract Manufacturing Organizations

– Financial services (fundraising and IP sales/licensing)

– Medical technology– Medical technology

– Biotechnology

• Each office is estimated to do 2 deals in each product line the first year (modest estimation)

• The sales forecast is estimated to grow significantly each year due to network effects and learning

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Financial plan• The fundraising need for the beginning of the first

year is 1 200 000$ in stocks and 300 000 by other method in order to– Set up the corporation in The USA and the subsidiaries

– Recruitment– Recruitment

– Acquisition of material (PC, office, licenses)

– Cars, offices are leased, not purchased.

• The first year is profitable and net income is increasing from year to year without substantial reinvestment (with the exception of some more employees)

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Resource Requirements• The successful implementation of the business plan requires for the following resources:

– Personnel: • Access to highly educated personnel with knowledge of the latest technologies• Access to senior level personnel with excellent network and capable to leading a team of multicultural and

ambitious members • Motivation is enhanced by option program to the managers

– Technology• Biocon Consulting will continue to identify high potential technologies and to network (collaborate to

compete)

– Finances• Access to Business Angel investments and venture capitalists with experience of this business model and the • Access to Business Angel investments and venture capitalists with experience of this business model and the

latest technologies

– Distribution• Distribution is outsourced to global distributors if possible, local when necessary.

– Promotion• Strong virtual presence. Excellent internet site in multilanguage with client and partner login. Access to

confidential information strictly controlled

– Products and Innovation to be commercialized• New and innovative products. More information upon signature of NDA

– Services to be commercialized• Contracts with: CRO services, financial services, business development services, consulting services,

industrial design services, partnering services, networking services, M&A advisory, IP services, marketing services and research, technology and financial evaluation, private equity services entrepreneurial education services, legal services, manufacturing organizations: working on a commission base on global sales

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Risks and Rewards

• . • Huge growth potential with high margins• Risk is managed by selecting only the best into the network. Fewer, but with high quality, high integrity and exclusive agreements.

• Royalty income from early involvement at the NPD phase (innovation)

Financial reward

• Only strong IP technologies incorporated into

•Access to sufficient capital to start globally

•Access to financial partners and mentors willing to work globally

Financial risk

• Only strong IP technologies incorporated into the Biocon Consulting network

• High NDA policy• Partnering with competitors if collaboration enhances market acceptance and increase knowledge

Technologicalreward

• Biocon Consulting emphasizes on value added services and products with low cost thanks to technologies that enable this

• Client needs taken into account early in the NPD process (design, marketing, look, feel)

Marketreward

•Being able to sign collaborative agreements with the high technology partners prospected

• Is the new technology successful?• IP regulations not uniform globally

Technologicalrisk

•Shifts in economical trends might affect the market potential

•The market may not absorb the best technology but the most ergonomic or convenient or most good looking product.

Market risk

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Key Issues• Short term

– Contracting with the suppliers of the newest services and products companies, offering solutions that the industry is ready to adapt immediately

– Partnering globally with top tier product and services providers in order to be able to shorten the NPD time at a high quality, low cost and excellent user adaptability.

– The consequences of postponing this decision has an impact on short-term cash flow.

• Long term– Partnering with incubators and research centers in order to involve them early in the

commercialization process. The issue is to be able to evaluate innovations that have a commercial success. commercial success.

– Partnering with universities to follow up basic research trends, and identifying those willing to becoming entrepreneurs or willing to commercialize or sell their innovation..

– The consequences of postponing this decision has an impact on long-term cash flow.– .

• The financial critical issues are being able to operate in the 6 areas, hire the Directors and find technology consultants and sales personnel shortly (by the end of 2008). Due to the global network organization the need for facilities is limited and does not need huge financial investments, however high performance computing technologies are needed.

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