© 2005 boston millennia partners boston millennia partners - 1 - © 1999 boston millennia partners...

© 2005 Boston Millennia Partnerswww.bmpvc.com

Boston Millennia Partners - 1 -

- 1 -© 1999 Boston Millennia Partners

Boston Millennia Partners

30 Rowes WharfBoston, MA 02110Tel. 617 428.5150Fax. 617 428.5160

www.bmpvc.com

A. Dana Callow, Jr.Managing General PartnerBoston Millennia Partners

Harvard Medical SchoolJune 2, 2005

Invention to Venture Life Sciences Forum

State of the Industry: New Opportunities in the Life Sciences

MillenniaPartners Boston



• Boston Millennia Partners was founded by 7 former Boston Capital Ventures investment professionals in 1997

• $700M+ in assets under management

• 16 investment professionals

• BMP team has completed over 125 direct investments and 150 acquisitions

• Invest in early stage companies in Healthcare, Life Sciences, and Information Technology industries

• Active with early stage companies and “ideas” at various medical/technology centers in the US– Tufts– MIT– Harvard– MD Anderson– Cleveland Clinic– Johns Hopkins– UCLA– Arizona University

• Review 2,000 to 3,000 opportunities annually

• Highly active investment process, return potential of 10-20x on investments selected

• Expect 5 to 7 year holding period for investments

• Located at Rowes Wharf, downtown Boston

Boston Millennia Partners (BMP)



(Sold to Incyte Genomics, 12/00)

(IPO: 1/97)

(Sold to Oxford Health Plans, 3/02)

(Sold to Cedara Software, 10/04)

MillenniaPartners’ Healthcare Portfolio



• Identify sectors with the following characteristics– Large, high-growth market opportunity– Competition is made up of many small companies with no dominant market-share leader– Undergoing a fundamental shift in the business as a result of economic or technological

change– Capital efficient business models

• Identify initial company upon which to grow the business– Focus on companies that have meaningful revenues– Identify the company best positioned to exploit the market opportunity– Select a management team capable of carrying out an aggressive growth plan

• Accelerate the company’s internal growth through acquisition and consolidation of smaller-sized companies in similar or related market segments

Boston Millennia Partners’ Proprietary, Research-Driven Model

With the goal of building a $500-750 million market capitalization company

Core Company Investment Strategy



Electronic Data Capture (EDC) / Patient Diary Sector (EPD)

Relative Market Share

Re

ve

nu

e G

row

th R

ate

= $10 million in 2004 revenues

Relative Market Share, 2003-2004

CRF Box

Oracle Clinical

Versal

Sector Growth = 21%

NuModa

ViPS

DATATRAK

eTrials

PHT

invivodataeResearch Technologies

PhaseForward

Datalabs

EDC

EPD+EDC

EPD

Acquired CB Technologies

Teamworks

0%

10%

20%

30%

40%

50%

60%

70%

.01x.1x1x10x

ClinitracAcquired by Clinical Care Data

DRAFT

BOLD = BMP Portfolio Company



Anti-Inflammatory DrugsRepresentative Market Share, 2003-2004

Relative Market Share

Re

ve

nu

e G

row

th R

ate

= $640 million in 2004 revenues*Due to safety concerns Vioxx was removed from production in September 2004 and Bextra sales were suspended in the U.S. in April 2005

-40%

-20%

0%

20%

40%

60%

80%

100%

0.01x0.1x1x10x

NSAID

COX-2 inhibitor

TNF blocker

Bextra (Pfizer)*

Celebrex (Pfizer)

Vioxx (Merck)*

Voltaren (Novartis)

OTC Motrin/Advil

Naprosyn (Roche)/Aleve

Relafen (GSK)

Remicade (J&J/Schering Plough)

Mobic (Abbott/Boehringer Ingelheim)

Sector Growth = 24%

DRAFT



BMP Industry Diversification

Information Technology25%

BMP Healthcare Focus

Healthcare 50%

Business Services25%

Characteristics of a BMP Healthcare Investment• Established safety profile• Demonstrated efficacy in man• Articulated mechanism of action or therapeutic pathway• Articulated pathway to regulatory approval• Articulated market and value proposition• Established reimbursement• Multiple shots on goals (no binary bets on single drugs)• Partnerships or M&A appear to be targeted exit strategy• Generally do not do make investments in pure “discovery” companies

Areas of Interest• Therapeutics and Medical Devices

– Antibiotic resistance– Metabolic disorders– Cardiovascular disorders– Orthopedics– CNS disorders (including pain)– New uses of (old) drugs with established safety

Healthcare Services– Pharmacogenomics– Biomarkers (useful in establishing efficacy and/or proof of concept)– Technologies that reduce the cost of healthcare delivery– Personalized medicine

Opportunities at the Intersection of Drugs and Devices– Orthopedics– Cardiovascular– Ophthalmics– MEMS-based closed loop medication control

Healthcare

Pharmaceuticals30%Healthcare

Services 50%

Medical Devices20%



Growth of Angel Investors

0

2

4

6

8

10

12

14

16

18

1995 1997 1999 2001 200302040

6080

100120

140160180

200

1996 1997 1998 1999 2000 2001 2002 2003

Source: NVCA, UNH Center for Venture Research, NASVF, and PWC-MoneyTree

% ofVC DollarsInvested

In Start-Ups

# of US Angel

Investors(Thousands)

2003 2004

Dollars Deals Dollars Deals

Venture Capital Firms $18.9B 2,834 $20.9B 2,876

Angel Investors $18.1B 39,000 $22.5B 48,000

• Angel Organizations grow as VCs invest less in Start-Ups:

• Cumulatively, Angel Organizations invest large amounts of capital:



Niche of Angel Investors

Source: Kauffman Foundation, UNH Center for Venture Research

Stage Pre-Seed Seed/Start-Up

Funding Gap between $500,000 and

$2,000,000/$5,000,000(depending on region)

Early Later

Source Founders, Friends and

Family

Individual

Angels

Venture Funds

Investment

$25,000 to $100,000

$100,000 to $500,000

$2,000,000/$5,000,000 and up

Sector Deals (2003)• Software 39.8%• Life Sciences 14.0%• Manufacturing 8.1%• Biotechnology 5.5%• Retail 5.4%• Electronics/Hardware 4.8%• Telecommunications 2.6%• Other High-Tech 15.8%• Other 3.9%

• Angel Organizations find investment niche pre-venture market:

• Angel Organizations prefer industries similar to those generating VC interest:



Portfolio Company

DirectorsDirectors

CustomersCustomersInvestorsInvestors

Search FirmsSearch FirmsEmployeesEmployees

AuditorsAuditors AttorneysAttorneys

The Portfolio Company NetworkMultiple Points of Contact



Appendix



Millennia Team Experience

• Founding Partner, Boston Millennia Partners• Founding Partner, Boston Capital Ventures• Consultant, Braxton Associates (Bain/BCG heritage)• Software Engineer, Tymshare/McDonnell Douglas• Dartmouth College (Tuck School), MBA• Tufts University, AB in Economics• Board of Trustees and Investment Committee, Tufts University • Advisory Board, Private Equity Center at Dartmouth College• Board of Overseers, Tufts University Medical School

• Founding Partner, Boston Millennia Partners• Principal, Boston Capital Ventures• Assistant General Counsel, Lifetime Corporation• Attorney, Warner & Stackpole/Kirkpatrick & Lockhart • Georgetown University, JD• University of Maryland, MA in Economics• Boston College, BA in Economics

Robert S. Sherman, PartnerA. Dana Callow, Jr., Managing Partner

Martin J. Hernon, Partner Patrick J. Fortune, Ph.D., Partner

• President & COO, New Era for Networks (Nasdaq: NEON)• CIO, Monsanto Corporation• CIO, Bristol-Myers Squibb• President & COO, Coram Healthcare• Northwestern University, MBA• University of Wisconsin, Ph.D. in Physical Chemistry• University of Wisconsin, BA in Chemistry

• Founding Partner, Boston Millennia Partners• Partner, Boston Capital Ventures• General Partner, Hambro International Venture Fund• Assistant Vice President, Bank of Boston• Harvard Business School, MBA• Amherst College, AB in Economics



• Regional Market Manager, Corning, Inc.• Senior Analyst, Corning Communications• Project Leader, TotalElfFina• Engineer, Saint Gobain• Dartmouth College (Tuck School), MBA• Institut National Polytechnique, MS in Engineering• Lycée Pierre de Fermat, BS in Math & Physics

• Principal, Boston Capital Ventures• Managing Director, Watch Hill Corporation• Finance Director, BBN Communications As (Copenhagen)• Controller, Bolt Beranek & Newman, Inc.• Financial Analyst, General Electric Corporation• Dartmouth College (Tuck School), MBA• Haverford College, AB in Economics

Robert W. Jevon, Jr., PartnerJean-Yves Lagarde, Partner

Millennia Team Experience

• President, Tiedemann & Company• CFO positions at early stage companies (e.g. PAREXEL, HPR)• Certified Public Accountant• Bentley College, BS in Accountancy

Bruce R. Tiedemann, CFO Paul McManus• President, The McManus Group• Vice President, Aubin International• Managing Director and Co-Founder, The Bell Mason Group• Manager, Digital Equipment Corporation• Boston University, MBA• Wentworth Institute of Technology, BS in Mechanical Engineering



www.bmpvc.com

Boston Millennia Partners Healthcare Portfolio, Additional Information Available on the Internet:

Portfolio Company Web Site Address

Arthrosurface www.arthrosurface.comAthenix Corp. www.athenixcorp.comCardioMEMS www.cardiomems.comCoapt Systems, Inc. www.coaptsystems.comCollegium Pharmaceuticals www.collegiumpharma.comCombinatoRx, Inc. www.combinatorx.comeMed Technologies www.emed.comEpigenesis Pharmaceuticals www.epigene.comEntigo, Inc. www.entigo.comGalt Associates, Inc. www.galt-assoc.comGlycofi, Inc. www.glycofi.comMedAptus, Inc. www.medaptus.comNovalar Pharmaceuticals, Inc. www.novalarpharm.comPHT Corp. www.phtcorp.comPredix Pharmaceuticals, Inc. www.predixpharm.comProtein Forest, Inc. www.proteinforest.comRejuvenon Corp. www.rejuvenon.com

Other resources on Angel Investors and Venture Capital:Association Web Site Address

National Venture Capital Association www.nvca.comAngel Capital Association www.angelcapitalassociation.orgUniversity of New Hampshire - Center for Venture Research www.unh.edu/cvr

© 2005 boston millennia partners boston millennia partners - 1 - © 1999 boston millennia partners...

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