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www.kineticos.com

Kineticos – Market Research Study27 September 2018

2Property of Kineticos © Copyright 2018

Kineticos is a specialized management consulting firm serving the life science

industry. The firm is focused on identifying opportunities to drive strategic

growth and achieve operational excellence for its clients around the globe.

About Kineticos

A Differentiated Approach…

§ Specialized focus in life sciences

§ Real world expertise from decades in industry

§ Strategic thinking

§ Tactical execution capabilities

§ Systematic methods and processes


As a life sciences consultancy, Kineticos has the opportunity to engage with some of the

brightest minds in the industry. We are privileged to have partnered with over 75 sponsors and

are forever grateful for those relationships.

However, helping our sponsors with their most challenging issues is only one way Kineticos can

contribute to improving patient outcomes. An additional way of doing so is to provide life

science executives with insight regarding industry trends and future outlook. This insight can be

utilized to make informed decisions and expedite the process of bringing life changing therapies

to market.

Thus, Kineticos has recently conducted a primary research study intended to gain insight into

current and future state of the biopharmaceutical industry. The subsequent slides highlight the

findings of our research. We encourage you to provide any feedback and if there are topics that

you would be interested in learning more about, please contacts us as [email protected]

Thank you!

Kineticos Market Research Initiative


Fall 2018 Market Research StudyConfidence Across the Biopharmaceutical Industry


Research Specifications

§ 5 minute online survey

§ n=79 Biopharmaceutical Executives

§ Fielding was conducted between August 21, 2018 –September 9, 2018

Methodology

Sample

Timing


Demographics


Individuals in C-Suite and VP roles accounted for 72% of

respondents

N=79

47%

25%

24%

3% 1%

Please indicate your role in the organization.

C-Suite

Executive VP / Senior VP / VP /Division Head

Senior Director / Director /Associate Director

Senior Manager / Manager /Associate Manager

Analyst / Associate


64% of respondents represented companies with a market cap

of less than $1B

25%

11%

18%

22%

24%

How would you categorize your biopharmaceutical company?

Large biopharma ($5B or more market

cap)

Mid-sized biopharma ($1B to less than

$5B market cap)

Emerging biopharma ($250M to less

than $1B market cap)

Start-up biopharma (Less than $250M

market cap)

Privately held company

N=79


71% of the companies represented have a presence in the US

11%

16%

71%

3%

Please indicate which geographic region(s) your company is located.

Asia Pacific

Europe

North America

Other

Other includes: South America (2x) and Latin AmericaN=79


Companies working in Oncology (21%), Rare Diseases (17%) and

Immunology (13%) were well represented

7%

13%

11%

8%

11%

21%

17%

13%

Please indicate your company's therapeutic focus. Select all that apply.

Cardiovascular

Immunology

Infectious Diseases

Metabolic Diseases

Neurosciences

Oncology

Rare Diseases

Other - Write In (Required)

N=79


Confidence Levels


Respondents are equally as confident in the biopharmaceutical

industry today than they are in the next 18 months

3

2

7.03 6.97

10 10

0

1

2

3

4

5

6

7

8

9

10

Overall level of confidence in the

biopharmaceutical industry now

Overall level of confidence in the

biopharmaceutical industry in 18 months

Min Average Max

N=75

Strongly

disagree

Strongly

agree


Confidence in biopharmaceutical industry is driven by a growing

life sciences market and a favorable regulatory landscape

16%

20%

11%

15%

24%

5%

3%

7%

What is the driving your overall confidence in the biopharmaceutical industry in the next 18 months?

Ability to raise capital

Favorable regulatory landscape

Availability of assets

Strong global economic growth

Growing life sciences market

Healthy competition

Increasing operational efficiency

Other

Other include: new cellular products, company data, cutting edge science, lack of efficiency

N=75


Top risks include unfavorable regulatory landscape (27%) and

inability to raise capital (24%)

24%

27%

7%

7%

3%

8%

9%

16%

What is the largest risk to the biopharmaceutical industry in the next 18 months?

Inability to raise capital

Unfavorable regulatory landscape

Unavailability of assets

Poor global economic growth

Diminishing life sciences market

Strong competition

Decreasing operational efficiency

Other

Other include: pricing (3x), regulatory, payor landscape.

N=75


Majority of respondents indicate the Immuno-Oncology is good

for the biopharmaceutical industry

53%

20%

27%

Do you think that attention to Immuno-Oncology is good or bad for the

biopharmaceutical industry?

Good - why?

Bad - why?

No Opinion

N=75

Top cited reasons why attention on I/O is good for the

industry

“Innovation”

“Large unmet need”

“Improvement of patient outcomes”

Top cited reason why attention on I/O is bad for the industry

“Over emphasis on one therapeutic area at the

expense of other needs“


Confidence levels related to Capital Markets are moderate

N=59

1 1

2

1

6.71

5.69 5.86

3.77

10 10 10

9

0

1

2

3

4

5

6

7

8

9

10

I am very confident in my

company’s ability to raise

capital in the next 18

months.

I am very confident in my

company’s ability to raise

capital through public

markets in the next 18

months

I am very confident my

company will raise capital

through non-public

sources in the next 18

months

I am confident my

company will file for an

IPO in the next 18 months.

Min Average Max

N=51

N=63

N=13Strongly

disagree

Strongly

agree


Confidence in the deal landscape is slightly stronger than

confidence in capital markets

N=68

N=57 N=61Strongly

disagree

Strongly

agree

3

1 1 1

5.846.23

5.67

6.56

10 10 10 10

0

1

2

3

4

5

6

7

8

9

10

I am confident that the

current deal making

landscape is strong.

I am confident my company

will out-license one or more

assets in the next 18 months


will in-license one or more

assets in the next 18 months


will successfully sign an

agreement to co-develop

one or more assets in the

next 18 months

Min Average Max

N=46


Valuations are on the rise and competitive intensity is relatively

high

N=68

3

4

6.597.08

10 10

0

1

2

3

4

5

6

7

8

9

10

M&A and licensing transaction valuations

are increasing.

Competition for licensing transactions is

high

Min Average Max

N=68

Strongly

disagree

Strongly

agree


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Thank [email protected]

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