sofinnova partners picks up €260m for sixth fund
DESCRIPTION
European venture capital firm Sofinnova Partners has closed its sixth fund, Sofinnova Capital VI, on €260m, following what the firm describes as its most successful year. Investors in the fund include CDC Enterprises, Industrial & Financial Investments, JP Morgan Asset Management, funds advised by Partners Group and Skandia Life Insurance Company. Eight start-ups and spinoffs have already been invested in by Sofinnova Capital VI. These deals include Celsius, CoAxia Inc, Crescendo Biologics, DNP Green Technology Inc, Flexion Therapeutics, MD Start, Mydeco and Sagem Wireless.TRANSCRIPT
Sofinnova Capital VI – 2010 TrendsJanuary 26, 2010
Agenda
� Welcome
� Where we are today:
2009 activity and Sofinnova Capital VI
Breakfast Presentation: January 26, 2010
Confidential
2
� Where we’ve been:
a review of investment activity since 1989
� Where we are going:
2010 trends
� Q&A
WELCOMEWELCOME
Sofinnova Partners
� Denis Lucquin, Managing Partner (LS)
� Antoine Papiernik, Managing Partner (LS)
� Monique Saulnier, Managing Partner & CFO
Breakfast Presentation: January 26, 2010
Confidential
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� Jean Schmitt, Managing Partner (IT)
� Jean-Bernard Schmidt, Managing Partner
� Graziano Seghezzi, Partner (LS)
� Olivier Sichel, Partner (IT)
� Rafaèle Tordjman, Partner (LS)
WHERE WE ARE TODAY
2009 AND SOFINNOVA CAPITAL VI
“We foresee strong M&A activity in 2009for our portfolio companies:technologies making a real differencefor patients or for customers will alwaysbe valuable — such is the beauty of
Breakfast Presentation: January 26, 2010
Confidential
be valuable — such is the beauty ofventure. This proves the non-correlationof venture to the rest of the economy.”
Denis Lucquin, Managing Partner and ChairmanMarch 24, 2009
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Page 7Sofinnova Portfolio DevelopmentsDeal Activity and Exits of 2009
Feb 09 (SK IV): Sofinnova of Corevalve (EV 700m$ + milestone
payments)
Feb 09 (SK V): Esmertec merges with Purple Labs forming Myriad,
Europe’s largest mobile phone software company .
Dec 09 (SK V): Movetis to IPO – 3 years after investment. Sofinnova is
largest shareholder and founding investor.
Sept 09 (SK IV): Sofinnova Exit of Fovea (EV 370m€ incl. milestone
payments)
Q1 10: IT Company sold
Value Creation
MERGER
Dec 09 (SK IV): Sofinnova Exit of Novexel (total cash consideration of $505 million, including earn out
payments of $75 million)
Company X
Jan Aug SepFeb Mar Apr JulMay Oct Nov Dec
Capital Deployed
Jun
June 09 (SK VI): Sofinnova VI invests €2.88m in DNP Green Technology
June 09 (SK VI): Sofinnova VI invests €6.16m in CoAxia
June 09 (SK VI): Sofinnova VI invests €4.70m in Flexion Therapeutics
Q12010
Aug 09 (SK VI): Sofinnova VI invests €2.8m in MD Start
Aug 09 (SK VI): Sofinnova invests €3.6 m in Crescendo Nov 09 (SK VI): Sofinnova
VI invests €1.50m in Celsius
OmtheraPharmaceuticals
Dec 09 (SK VI): Sofinnova VI invests €1.4m in Omthera
Sofinnova Capital VI� Closed December 31, 2009
� €260 million ($370 million)
� Target was €300 million
� Already committed to date: 40% to 50% in ten companies
Breakfast Presentation: January 26, 2010
Confidential
� LPs include: CDC Entreprises within the France Investment
program, Industrial & Financial Investments Co., JP Morgan
Asset Management, funds advised by Partners Group and
Skandia Life Insurance Company
� Sofinnova Partners continues to be recognized by its investors
for its solid investment style and capacity to generate strong
returns, even during turbulent economic times.
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WHERE WE’VE BEEN
INVESTMENT ACTIVITY SINCE 1989
Sofinnova Partners:Solid Investment Style
� Early-stage, spin offs and restarts are the area of investment
focus
� IP rich technologies
Breakfast Presentation: January 26, 2010
Confidential
� Biopharmaceuticals, medical devices, green chemicals,
wireless, mobile internet
� Europe & USA
� Repeat entrepreneurs and experienced management
� No « me too » investments
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WHERE WE ARE GOING
2010 TRENDS
What Does Sofinnova Partners’ Success Mean for The VC Industry in Europe?� Alive and kicking!
� M&A will continue to feed corporate growth
Breakfast Presentation: January 26, 2010
Confidential
� IPO window is reopening
� Early-stage investment strategy works
� Consistent investment in innovation transcends economic
fluctuations
� « Back to basics»: invest only in exceptional companies
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2010 Trends: Mobile InternetTHE NEXT GENERATION OF INTERNET, MAY BE EVEN MORE POWERFUL THAN FIXED INTERNET
� With new ways to search:
Breakfast Presentation: January 26, 2010
Confidential
� New advertising model:
� And key software browsers/multimedia:13
Blyk
2010 Trends: The Mobile Backhaul Issue
MOBILE NETWORKS ARE ABOUT TO MOVE TO FULL IP
Breakfast Presentation: January 26, 2010
Confidential
� Needs network intelligence:
� And policy management:14
2010 Trends: The New Digital Frontier
DIGITALIZATION WILL BRING NEW INNOVATIONS
� Choosing your home in 3D:
Breakfast Presentation: January 26, 2010
Confidential
� Working together:
� Listening to music:
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2010 Trends: The New User Interface
� Everything becoming more tactile:
Breakfast Presentation: January 26, 2010
Confidential
� Bringing Convenience and Security:
� Bringing security:
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2010 Trends: Convergence of Brandsand Technology
PIONEERED BY EUROPEAN INNOVATION
� New brands with radical innovations and vision:
Breakfast Presentation: January 26, 2010
Confidential
� And a place where design counts:
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05
101520253035
2002 2003 2004 2005 2006 2007 2008 2012
2010 Trends: VaccinesGrowthGrowth Old technologyOld technology
2002 2003 2004 2005 2006 2007 2008 2012 [E]
Copyright © 2006 Sofinnova Partners
Future InnovationFuture Innovation
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Bir
ths
per
year
(m
)2008 2018
Seven major markets BRIC countries
BRIC: Brazil, Russia, India, China
$BINFECTIOUS DISEASE
BacterialViral
PROPHYLACTIC VACCINES
SHIFT
CHRONIC DISEASE
CancerDiabetes
Alzheimer’s Disease
THERAPEUTIC VACCINES
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GrowthGrowth
$B
0
10
20
30
40
50
60
70
0
50
100
150
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2002 2003 2004 2005 2006 2007 2008 2009 2012 2014
2010 Trends: Antibodies
Murine Chimeric Fully HumanHumanizedMurine Chimeric Fully HumanHumanized
30-35
60-65
5-10
90-95 100
100Murine %
Human %
Murine Chimeric Fully HumanHumanizedMurine Chimeric Fully HumanHumanized
30-35
60-65
5-10
90-95 100
100Murine %
Human %
Past InnovationPast Innovation
2002 2003 2004 2005 2006 2007 2008 2009 2012 [E]
2014 [E]
NCE MAB
Copyright © 2006 Sofinnova Partners
Full-size antibody
Single-chain antibody (SCA)
Variable region ofLight chain (Vl)
Constant region ofLight chain (Cl) Antigen-binding
Fragment (Fab)
Variable region ofHeavy chain (Vh)
Constant region 1 ofHeavy chain (Ch1)
Future InnovationFuture Innovation
Mouse HumanMouse HumanMouse HumanMouse HumanMouse HumanMouse Human
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2010 Trends: Disruptive Technologies in Medical Devices - Who Could be the next CoreValve?
� Perfusion augmentation therapies
Breakfast Presentation: January 26, 2010
Confidential
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� Patented product to treat specific cardiac artery diseases and avoid open-chest surgery for hundreds of thousands of patients
�Nurturing companies at the seed stage: MD Start
2010 Trends: Green Chemistry Alternatives
�Biotech alternative to petrochemical routes
Breakfast Presentation: January 26, 2010
Confidential
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routes
2010 Trends: Pharma Spin-offs
Evolution of the Pharma industry (rationalisation – concentration) will lead to spin-off opportunities
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Q&AQ&A