HBM Healthcare Investments Ltd - Unique Access to a Global and Diversified Healthcare Portfolio of Private and Public Companies February 2021

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HBM Healthcare Investments Ltd - Unique Access to a Global and Diversified Healthcare Portfolio of Private and Public Companies February 2021
HBM Healthcare Investments Ltd

Unique Access to a Global and Diversified Healthcare
Portfolio of Private and Public Companies

February 2021
HBM Healthcare Investments Ltd - Unique Access to a Global and Diversified Healthcare Portfolio of Private and Public Companies February 2021
HBM Healthcare Investments Ltd

About HBM Healthcare Investments Ltd
Investment Strategy / Investment Process
Healthcare Sector
Portfolio Structure
Investment Positions
Outlook & Concluding Remarks
Appendix: Organisation, Team
HBM Healthcare Investments Ltd - Unique Access to a Global and Diversified Healthcare Portfolio of Private and Public Companies February 2021
A Leading Investment Company in Healthcare                                                           3

►   With $2.8bn assets under management, established 2001
►   Dedicated private and public equity investment teams with              SIX-listed healthcare-
    a global industry network and external business advisors               focused company
                                                                           holding private and
►   Proven track record of exits validated by about 60 trade               public equity
    sales and IPOs over past 10 years

                                                     Bellwethers
                                                                           Mid to high teens
                         Emerging Leaders
                                                                           percentage increase in
                                    Investments
                                                                           net asset value and
                                      in Listed
                     Potential Gems Companies                              share price over the
                                                                           last five years (p.a.)
                                                                   Break
                       Investments                                 even
                         in Private
                        Companies
                                                                           Attractive distribution
                                                                           policy (3-5% p.a.)
             Early      Later / Growth     IPO
             stage          stage        SMid caps
Data as of 31 January 2021
HBM Healthcare Investments Ltd - Unique Access to a Global and Diversified Healthcare Portfolio of Private and Public Companies February 2021
Facts & Figures                                                                                                 4

Registered Shares (CHF)                             Performance (CHF)

                                                                                                   5Y     10Y
Total assets                        2’440 million   Net return
                                                                                                  Return Return
                                                    (including
Net assets (NAV)                    2’032 million   distributions)   2021   2020    2019     2018  p.a.   p.a.

Market capitalisation               2’112 million   Share price      -0.5% 40.5% 48.0% 21.8% 27.5% 23.1%
Share price                         303.50
                                                    NAV              -0.4% 36.7% 33.0% 9.9% 17.8% 18.3%
NAV per share                       292.14
                                                    Dividend CHF            7.70    7.50     7.00
Premium                             3.9%
                                                    Dividend yield          4.1%    4.4%     4.9%

Average daily liquidity (1 year)   11’630 shares
                                    ~ 3.5 million
                                                                        5Y Volatility p.a.     1Y Volatility p.a.
Number of issued shares             6.96 million    Share price                    19.7%                 31.8%
Number of shareholders              ~ 3’100

Data as of 31 January 2021
HBM Healthcare Investments Ltd - Unique Access to a Global and Diversified Healthcare Portfolio of Private and Public Companies February 2021
Value Creation over 5 Years                                                                                          5

                      CHF Performance                                           USD Performance
 350                                                             700

 300                                                             600

 250                                                             500

 200                                                             400

 150                                                             300

 100                                                             200

  50                                                             100

   0                                                               0
   Jan-16    Jan-17     Jan-18   Jan-19     Jan-20      Jan-21     Jan-16   Jan-17   Jan-18    Jan-19      Jan-20   Jan-21

                        NAV HBM               Share price HBM               MSCI World Health Care Index

Data as of 31 January 2021, indexed (12.7.2001 = 100)
Portfolio Highlights in 2020   6

      20 new
private investments

     10 IPOs

  6 Trade sales

     Positive
   clinical data

7 market approvals

Upcoming catalysts

Data as of 31 January 2021
Over 30 Trade Sales and IPOs during the Last 5 Years                                                                      7

                                                                                                            BioAtla
                                                                                                             (US)

     Trade                                                                                                   Seer
                          IPOs
     sales                                                                                                   (US)

                                                                                                         Everest Med.
                                                                                                             (US)

                                                                                                            Galecto
                                                                                                             (US)

                                                                                                        C4 Therapeutics
                                                    Y-mAbs (US)                                              (US)

                                                                                        Westmed
                                 ARMO Bio (US)      Principia (US)                                       Harmony (US)
                                                                                         (USA)

                                  TandemLife                                          Shriji Polymers
                                                    Aptinyx (US)      Galera (US)                        Cathay (CN)
                                 (Cardiac) (US)                                              (IN)

                                  Interventional
  Kolltan (US)     Eiger (US)                      Homology (US)     Viela Bio (US)    Forbius (CA)       iTeos (US)
                                    Spine (US)

  Skyepharma                                                         SpringWorks                         ALX Oncology
                  Curetis (DE)   True North (US)    Obseva (CH)                       Vitaeris (US)
     (UK)                                                                (US)                                (US)

                                                                     Turning Point
   Ellipse (US)   Nabriva (US)     AAAP (US)       AnaptysBio (US)                    Corvidia (US)       Arcutis (US)
                                                                         (US)

         2015-16                         2017-18                      2019                       2020
Data as of 31 January 2021
Close to CHF 550 million invested in Private Co’s Since 2014         8

45
                                                        Revenue /
                                    Clinical
40
                                                        Profitable

35
      Average investment size overall: CHF 10 million
30

25

20

15

10

5

0

     Data as of 30 September 2020
Latest IPOs from Private Equity Portfolio                                                    9
                                          Invested US$m           Post - IPO Performance
  Company                    IPO Year
                                        (private + at IPO)     Until End of Period or Exit
  BioAtla                     2020                    29.1                       147.3%
  Galecto                     2020                    16.8                        -16.7%
  C4 Therapeutics             2020                      9.7                      100.3%
  Harmony                     2020                    40.3                         89.7%
  Cathay                      2020                    37.0                        -40.7%
  iTeos Therapeutics          2020                    17.9                         69.6%
  ALX Oncology                2020                    12.6                       326.4%
  Arcutis                     2020                    22.6                       109.3%
  Viela Bio                   2019                    29.5                       177.9%
  SpringWorks                 2019                    15.2                       365.2%
  Turning Point               2019                    14.5                       591.4%
  Y-mAbs                      2018                    32.7                       165.8%
  Principia                   2018             Acquired by Sanofi for USD 3.7bn
  Aptinyx                     2018                      8.5                       -78.3%
  Homology                    2018                    10.0                         53.6%
  ARMO *                      2018             Acquired by Eli Lilly for USD 1.6bn
  ObsEva                      2017                    18.5                        -84.7%
  AnaptysBio                  2017                      9.3                      260.3%
  AAA **                      2016            Acquired by Novartis for USD 3.9bn
                                                     324.2

Data as of 31 January 2021
HBM Healthcare Investments Ltd

About HBM Healthcare Investments Ltd
Investment Strategy / Investment Process
Healthcare Sector
Portfolio Structure
Investment Positions
Outlook & Concluding Remarks
Appendix: Organisation, Team
HBM Investment Focus along the Healthcare Value Chain                                             11

Suppliers           Manufacturers            Service Providers                       Payers

 Life Sciences
                    Pharmaceuticals
 Tools & Services
                                                 Distributors /
                                                                                      Patients
                                                 wholesalers
 Contract
                                                                  Insurers
 research           Biotechnology
                                                                  (managed health)
 Organizations
                                                 Services
                                                                                      Employers
                                                 (pharmacies)
                                                                  Pharmacy
 Chemicals          Medical devices
                                                                  benefit managers
                                                 Facilities
                                                 (hospitals /                         Government
                                                 clinics)
Diagnostics &       Generics /
Genomics            specialty pharma
                                                                                         Core

                                                                                         Opportunistic

                                    Digital health                                       Out of focus
Investment Strategy                                                                           12

►   Investment focus continues to lie on companies with innovative platforms and drug
    candidates (i.e. bispecific antibodies, novel immunotherapy/combinations, targeted and
    gene therapies, neurological and orphan diseases)

►   Portfolio of both private and small-cap public companies (generally companies with a
    market capitalization below USD 2 bn)

►   Investments typically first made in a venture round when target company has product(s) in
    clinical development and has achieved “proof of concept”

►   Subsequently, investment may be increased substantially in follow-on financings, provided
    the value-creation potential is intact

►   Active participation with companies to develop towards trade sale or IPO

►   At or post IPO: the flexibility of HBM Healthcare Investments allows for further increasing
    its investments in the most attractive investment cases
Private Equity Investment Process                                                                       13

              Personal contacts,     Investment        Other VCs   Direct
               industry network         banks

                                    Deal Sourcing
          (>700 deals p.a., 45% USA/Canada, 40% Western Europe, 15% RoW)*

                                       Initial Due Diligence
                                         (~200 deals p.a.)

                                   Comprehensive Due Diligence
                                        (~25 deals p.a.)

                                           Investments
                                         (8-12 deals p.a.)                  *
                                                                            60% Biotech
                                                                            30% Medtech & Diagnostics
                                                                            10% Other
Investment Approach                                                                         14

►   Fundamental long with private and public healthcare investments

►   Bottom-up selection of investments with solid long-term growth potential

►   Diversified portfolio approach

►   Sourcing of proprietary private deal flow

►   Active lead/co-lead investor in private companies with board representation

►   HBM takes an active role and assumes entrepreneurial responsibility together with the
    management team

►   Maximum single position limit at time of investment up to 10% of NAV
Public Equity Investment Process                                                         15

                    Portfolio & Risk                 Idea Generation
                    Management                          Universe of 750+ companies
                       Evaluation of global            Tracking of healthcare trends
                        markets and macro                incl conference attendances
                        themes                           and close relationship to
                       Continuous Portfolio             experts and executives
                        review and adjustment           Company pre-selection
                       Comprehensive risk
                        management process

                    Stock Selection &                Due Diligence
                    Portfolio Construction              Fundamental qualitative
                       Determination of exposure        and quantitative analysis
                        and position size               Stakeholder assessment
                       Individual stock selection       and intellectual property
                                                         review
                       Initiating new positions
                                                        Investment write-up and
                                                         conclusion
Investment Case Advanced Accelerator Applications                                                                      16

Investment rationale
►   Combination of unique business proposition with strong growing medical
    imaging business (profitable) and promising late-stage therapeutic (phase III)
                                                                                     First institutional investor in
Investment process (2014)
                                                                                     2014
►   Growth capital and partial buyout of existing founders
►   Founders wanted specialist (non-US) investor with know-how and good              Sold in 2017 to Novartis for
    industry network
                                                                                     approx USD 3.9 billion
Investment period (2014-2017)
►   Board representation
►   Strategy executed on three pillars:                                              → Gain of over CHF 200
      ►   Expanding its diagnostic business for PET/CT and SPECT organically         million (IRR > 60%)
          and through acquisitions
      ►   Bringing first therapeutic to the market
      ►   Broadening of pipeline through in-house development and in-licensing
►   HBM backed pre-IPO financing round to strengthen investor syndicate

Exit (2016-2017)
►   IPO and take over by Novartis
Cathay Biotech (ex private)                                                                                                          17

                                                             Main attractions
Company uses biological manufacturing
                                                             ▪   Cathay’s main products include long-chain dicarboxylic acids
methods as an alternative to chemical                            (“LCDA”), fine chemical intermediates, which are used for nylon,
production on an industrial scale. The                           polyester, adhesives and organic solvents. The company is
                                                                 world market leader with market share of 90%.
objective is to reduce costs through lower
energy and raw materials inputs, as well as                  ▪   The biosynthesis method mainly uses petroleum by-product light
                                                                 wax oil (normal paraffin) as raw material, and converts it into
to improve the quality and properties of the                     long-chain dibasic acid through the catalysis of intracellular
final products.                                                  enzymes. Compared with chemical synthesis, the production
                                                                 process of biosynthesis is simpler and the production conditions
                                                                 are less demanding
 Invested since                                              ▪   Potentially, Cathay will be the first company worldwide with a
 ▪   May 2006                                                    commercial scale production of bio-based Diamine 5. Diamine is
                                                                 used in combination with dicarboxylic acids to manufacture nylon

 Financing and Valuation                                     ▪   Analysts expect revenues for 2020 at previous year level ($287
                                                                 million) according to Bloomberg consensus and for 2022 sales of
 ▪   Invested: USD 38.0m for 7.1% ownership                      $600 million – this would translate in a EPS of $0.362 or CNY
 ▪   IPO in August 2020 on Shanghai’s Star Market                2.445 respectively

 ▪   Current book value: USD 308m*                                            High profit margin

 ▪   Market cap: USD 5.1bn                                       $m                                        Revenue CAGR 2016-19: 28%
                                                                 300                         254   271     Net profit margin 2016-19 (on
                                                                                195
                                                                                                           average): 23%
                                                                 200
 Position HBM                                                          131                                 Revenue and net profit
                                                                 100                                       declined by 28% and 18% (in
 ▪   HBM with Board representative                                0
                                                                                                           CNY) respectively in H1 2020
                                                                                                           caused by COVID-19
                                                                       2016     2017        2018   2019    disruption.

Data as of 31 January 2021, * Net of lock-up discount (15.3%); 3 years until August 2023
Leader in Synthetic Biology (example of applications)                              18

LCDA market / bio-based DN5
▪   High performance polyamide e.g. engineering
    plastic with many automotive applications; widely
    used in toothbrush filaments
▪   Polyester, e.g. widely used in furniture and soft
    drink container coatings
▪   Hot melt adhesive, e.g. use in high end clothing
▪   Synthetic lubricants (dibasic esters)
▪   Powder coating, e.g. car surface, wheels               Major customers worldwide
▪   Perfume synthesis, e.g. biodegradable musks
▪   Rust protection, e.g. anti-metal corrosion function,
    metal working fluids / industrial cooling system
▪   Pharmaceutical Intermediates

Bio-based Polyamide / Polyesteramide
▪   When corn is turned into clothing Polyamide is
    essential for many objects, from garments and
    shoes to car parts. In its digital factory, Cathay
    produces the popular material from renewable
    biomass and it uses solutions from Siemens.

Source: Shanghai Cathay Biotech
Harmony Biosciences (ex private)                                                                                                         19

                                                      Status company at the time of investment
                                                      ▪        Wakix approved in the EU for narcolepsy (with or without
Focus on the central nervous system,                           cataplexy); small commercial success
including disorders of sleep and
                                                      ▪        Drug licensed from French company Bioprojet for the US
wakefulness. Harmony's lead asset Wakix                        launch; low clinical and regulatory risk expected
is safe, tolerable, and non-scheduled (no             ▪        Seasoned management with prior commercial experience in
abuse liability)                                               the narcolepsy space
                                                      Status company now
Invested since                                        ▪        Wakix (Pitolisant) available on the US market since end of
                                                               2019; promising launch so far – current run rate translates
▪   September 2017
                                                               into annual product sales of $150m for 2020 (Bloomberg
                                                               consensus estimates: $325m for 2021, $662m for 2023)
Financing and Valuation
                                                      ▪        FDA decides on label expansion for cataplexy in autumn
▪   Invested: USD 40.3m private and at IPO (Aug 20)
                                                      Share price (USD)                                              # of shares held (milion)
▪   Ownership: 8.2%                                    60                                                                                    5.0
▪   Current book value: USD 166m (excluding                                                                                                   4.5
                                                          50
    realized proceeds)                                                                                                                        4.0
                                                                                                                                              3.5
                                                          40
▪   Market cap: USD 2.0bn                                                                                                                     3.0
                                                          30                                                Share price as of 31 Jan 2021:    2.5
                                                                                                                                USD 35.86
Position HBM                                                       IPO price: USD 24.00                                                       2.0
                                                          20
                                                                                                                                              1.5
▪   HBM acted as co-investor among renowned                                                                                                   1.0
                                                          10       Cost per share (private round): USD 8.12 -
    investor syndicate with Vivo, Novo, Venbio and                 first investment: September 2017                                           0.5
    Valor                                                 0                                                                                   0.0
                                                          Aug-20
▪   HBM with Board seat                                                                            Data as of 31 January 2021
Y-mAbs Therapeutics (ex private)                                                                                                     20

                                                        Status company at the time of investment
Immunotherapy for difficult-to-treat cancers
in childhood as well as certain tumours in              ▪    Four antibody programs in clinical development, licensed
                                                             from Memorial Sloan Kettering (ww license) – clinical data
adults; no approved treatment available for                  from more than 100 patients
aggressive forms of cancer in nerve tissue
                                                        ▪    Strong and experienced management team – ex-Genmab
(ie CNS/Leptomeningeal metastasis from
                                                        ▪    No institutional shareholders
Neuroblastoma)
                                                        Status company now
Invested since                                          ▪    Applications for market approval filed with the FDA, first
                                                             approval expected by YE2020, further pos. results achieved
▪   September 2017
                                                        ▪    Broad early-to-mid-stage drug pipeline
Financing and Valuation
                                                        ▪    Drug candidates have received Rare Pediatric Disease
▪   Invested USD 53.9 million in two private rounds          designations as well as Breakthrough Therapy designations
    (Series A) and at/after the IPO
▪   IPO in September 2018                               Share price (USD)                                         # of shares held (milion)
                                                        60                                                                              3.5
▪   Current book value: USD 82m (excluding realized                                              Share price as of 31 Jan 2021:
    proceeds)                                                                                                        USD 42.01          3.0
                                                        50

▪   Market cap: USD 1.7bn                               40
                                                                                                                                        2.5

Position HBM                                                                                                                            2.0
                                                        30
▪   HBM acted as lead investor; formed renowned                                                                                         1.5
                                                        20
    investor syndicate with Sofinnova, Scopia, others        IPO price: USD 16.00                                                       1.0

▪   HBM stepped down from the board after the IPO       10                                                                              0.5
                                                              Cost per share (private
                                                              round): USD 9.35
                                                        0                                                                               0.0
Data as of 31 January 2021                              Sep-17              Jun-18      Mar-19          Dec-19            Sep-20
Viela Bio (ex private)                                                                                                              21

A company spin-off from AstraZeneca                  Status company at the time of investment
focusing on severe autoimmune disorders              ▪    Pre-registration of lead drug candidate Inebilizumab, pivotal
(such as Neuromyelitis Optica -NMOSD-,                    (phase III) trials successfully completed
Primary Sjogren’s Syndrome, Myositis,                ▪    Experienced team with strong track record and investor
                                                          syndicate
ANCA vasculitis); diseases with limited
treatment options                                    ▪    Well understood mechanism of action, peak sales potential
                                                          for first indication (NMOSD) of $400m alone, plus pipeline
                                                          optionality
Invested since                                       Status company now
▪   June 2019                                        ▪    First drug approved (Uplizna) for the treatment of NMOSD
                                                     ▪    Drug ready to market launch (sales force in place)
Financing and Valuation
▪   Invested USD 29.5 million in private round
                                                     Share price (USD)                                         # of shares held (milion)
    (Series B/crossover) and at IPO (October 19)     70                                                                              2.0

▪   Current book value: USD 61m (excluding           60
                                                                                                                                     1.8

    realized proceeds)                                                                                   Share price as of 31 Jan    1.6
                                                     50                                                  2021: USD 34.68             1.4
▪   Market cap: USD 1.9bn                                                                                                            1.2
                                                     40   IPO price: USD 19.00
                                                          (lock up)                                                                  1.0
Position HBM                                         30                                                                              0.8

▪   HBM acted as lead investor in June 2019 round,   20                                                                              0.6

    HBM represented on the board                                                                                                     0.4
                                                     10   Cost per share (private
                                                          round): USD 16.00                                                          0.2
▪   HBM is part of a renowned investor syndicate      0                                                                              0.0
    (AstraZeneca, Boyu, Hillhouse Capital,            Jun-19      Sep-19      Dec-19   Mar-20   Jun-20       Sep-20      Dec-20
    6Dimension, Temasek)                                                                    Data as of 31 January 2021
HBM Healthcare Investments Ltd

About HBM Healthcare Investments Ltd
Investment Strategy / Investment Process
Healthcare Sector
Portfolio Structure
Investment Positions
Outlook & Concluding Remarks
Appendix: Organisation, Team
Investment Opportunities in Healthcare                                                                   23

                                  Large and Growing Industry
                                  ▪   Revenues > $1.3 trillion p.a.*
                                  ▪   Resilient to economic cycles
                                  ▪   High profit margins, strong cash-flows
                                  ▪   Many small & innovative firms and
                                      spin-offs

    Investment Approach                                             Compelling Exit Markets
    ▪   Proprietary global deal sourcing                            ▪   Attractive M&A environment
    ▪   Long-term investment expertise                              ▪   Cash-rich corporate buyers
    ▪   Active lead/co-lead investor                                ▪   Strategic premiums paid
    ▪   Exit-driven investments                                     ▪   IPO as option for mature firms

* Worldwide sales (2015) for pharma, medtech and diagnostics only
Public Healthcare Generated Strong Returns                                                  24

         1600

                 MSCI World Health Care Index: +900% (9.2% p.a.)
                 MSCI World Index:             +330% (5.8% p.a.)
          800
                                                                                     570%

          400
 % log

          200

          100

           50
             1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021

Data as of 31 January 2021, in USD
Still Significant Industry Growth                                                                                                 25

 Global Pharma Drug Sales                                               Global Biotech Drug Sales

$ bn                 CAGR (2018-2024): 5.1%                             $ bn                 CAGR (2018-2024): 8.1%
900                                                                     450
                                                                  835
                                                               784
800                                                                     400                                                          388
                                                         738
                                                   693                                                                            356
                                                652                                                                            327
700                                                                     350
                                          621                                                                            300
                                       620
                                                                                                                       277
600                                                                     300
                                                                                                                 258
                                                                                                              243
500                                                                     250

400                                                                     200

300                                                                     150

200                                                                     100

100                                                                      50

  0                                                                       0
       2009   2011    2013   2015   2017   2019   2021     2023                2009   2011   2013   2015   2017   2019   2021    2023

 Source: Evaluate Pharma World Preview 2017, June 2017
Moderate Impact of Covid-19 on Clinical Trials                                                                     26

Clinical trial halts per month

1000

750

500

250

   0
   Jan 19   Mar 19   May 19   Jul 19     Sep 19     Nov 19   Jan 20   Mar 20   May 20   Jul 20   Sep 20   Nov 20
                                        Suspended        Terminated       Withdrawn

Source: Evaluate Pharma, January 2021
Healthcare Trades at Significant Discount Relative
to Broad Market                                                                                                     27

                                                                                                    P/E MSCI Health
P/E
                                                                                                    relative to World
45                                                                               Average: 1.1                    1.6
                                                                                 Current: 0.9
40                                                                                                             1.4
                                                                                 -> Historically high 20%
                                                                                 discount
35
                                                                                                               1.2
30
                                                                                                               1
25
                                                                                                               0.8
20
                                                                                                               0.6
15

               Average: 17.0                                                                                   0.4
10
               Current: 17.8
 5                                                                                                             0.2

 0                                                                                                              0
  2001       2003      2005       2007        2009   2011      2013       2015       2017       2019        2021
                P/E MSCI World Health Care Index            Relative Valuation Health Care vs. Market

Data as of 31 January 2021, 12M forward P/E
Significant Revenue Contribution from Biotech                                                                                                                                               28

 Global Branded Pharmaceutical Revenues: 1997 – 2020 (in $ bn)

800                                                                                                                                                                                         45%
             Growth from 1997 to 2022E
700                                                                                                                                                                                         40%
             Pharmaceuticals:  4.5% p.a.
             Biotech:         12.5% p.a.
                                                                                                                                                                                            35%
600
                                                                                                                                                                                     $268
                                                                                                                                                                                            30%
500
                                                                                                                                                                                            25%
400
                                                                                                                                                                                            20%
300
                                                                                                                                                                                            15%
                                                                                                                                                                                     $415
200
                                                                                                                                                                                            10%

100                                                                                                                                                                                         5%

 0                                                                                                                                                                                          0%
      1997

              1998

                     1999

                            2000

                                   2001

                                          2002

                                                 2003

                                                        2004

                                                                 2005

                                                                        2006

                                                                               2007

                                                                                      2008

                                                                                             2009

                                                                                                    2010

                                                                                                           2011

                                                                                                                  2012

                                                                                                                           2013

                                                                                                                                  2014

                                                                                                                                         2015

                                                                                                                                                2016

                                                                                                                                                       2017

                                                                                                                                                              2018

                                                                                                                                                                     2019E

                                                                                                                                                                             2020E
                                                               Small molecules                 Biologics                 % from Biotech

Source: Evercore Gene Therapy Outlook 2019
Biotech as the Innovation Powerhouse                                                                                                    29

 R&D Spend (USDbn, 2017)                                                      Pipeline     (number of clinical programs, 2017)

 120                                                                             5000
 100            x 2.6                                                            4000                                x 0.4
   80
                                                                                 3000
   60
                                                                                 2000
   40
   20                                                                            1000

    0                                                                                0
             Biotech             Pharma                                                        Biotech             Pharma
Source: EY Biotechnology Report 2017, Evaluate Pharma World Preview 2018   Source: Biotechnology Innovation Organization Report, 2018

 Market Cap (USDm, 2018)                                                      Approvals by origin (count, over last 10yrs)
 2’500                                                                            250

 2’000          x 3.1                                                             200                                x 0.5
 1’500                                                                            150

 1’000                                                                            100

   500                                                                             50

        0                                                                            0
               Biotech            Pharma                                                       Biotech             Pharma
Source: MSCI World Healthcare Index, Bloomberg 2018                        Source: HBM Biopharma Drug Approval Report, 2018
It’s all about Innovation                                                                                   30

                                                                                Past and current holdings
                    ▪ In last 1-2 years, multiple "targeted cancer"
   Immuno- and        companies (drugs for mutations or sub-groups of
targeted oncology     broader population) have been acquired

                    ▪ Administered via the bloodstream, in principle RNAi
                      therapeutics permit any gene that is responsible for
 Gene Silencing       causing illness to be silenced

                    ▪ Gene editing is the process of changing, replacing,
                      or removing genes with precision of a single base
 Gene editing /       pair change if desired
   therapy

                    ▪ Antibodies have had a terrific run, but small molecules
Immunology and        are making a comeback for I&I, promising oral dosing,
  Inflammation        ease of travel, transport and safety of dose withdrawal

                    ▪ Dementia psychosis, agitation, behavioral market have
                      blockbuster potential
   Neurology

                    ▪ The complement system helps prevent infection and
  Complement          fight off invading pathogens like bacteria. But
   disorders          hyperactivation of the complement system can lead to
                      autoimmunity and inflammatory diseases
Supportive Regulatory Climate                                                                                                                      31

 Number of New Drug Approvals and Applications at the US FDA

60                                                                                                                                  57

               50
50
                         45
                               43                                                                                              43         43
                          41                                                                          41   41        41
40                                                                  38
                                    36                                          35        36                    36        35
                                                                                     34
                                                          32
                                               30
30   28
          26                             26              26              26
                                                                                                                                         55
                                                                                                                                               Average: 31
                    53                                                                         23
                                                    22
                                                                                                                          45        46
20                        39                                                                               39        41
                                    35                         36
               29              30                                                                     30
     25                                  27                                               26                    27
                                               24                        22          24                                        22
10        21                                             21         20                         21
                                                    17                          18

 0
     1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

                                              New Drug Approvals              New Drug Applications

 Source: FDA, CDER (2017)
Steady Flow of New Investment Opportunities                                                                              32

Global venture investments into biotech                    Biotech IPOs on western exchanges

20                                                   600   8                                                         120
            533
     512                    518
                    484                                    7   97
                                      467            500                                                             100
15                                                         6
                                              396                         78
                                                     400                                                             80
                                                           5                                      68

10                                                   300   4                               50                55      60
                                      17.9                                         45             7.2
                                                               6.5
                                                           3
                            13.2              13.9   200                                                             40
                                                                         5.1                                 4.9
            11.5
 5                  10.5                                   2                               3.9
     7.2                                             100                                                             20
                                                           1                      2.3

 0                                                   0     0                                                         0
     2014   2015   2016     2017      2018   2019              2014      2015     2016     2017   2018      2019

     VC investments ($bn)          Number of investments              Total amount raised ($bn)          IPO count

Source: Evaluate Pharma, January 2020
Ongoing Pharma and Biotech M&A Activity                                                                                                                                              33

50% premium over stock price before acquisition

Deal-Volume in $ bn                                                 ▪   Allergan / Actavis
                                                                    ▪   Forest / Actavis
                                                                    ▪   Cubist / Merck & Co                                                                    ▪   Celgene / Bristol Myers
                                                                    ▪   Intermune / Roche                                                                      ▪   Allergan / AbbVie
250                                                                 ▪   Idenix / Merck & Co                                                                    ▪   Array / Pfizer
                                                                                              ▪   Pharmacyclics /                                              ▪   Loxo / Eli Lilly
                                                                    ▪   Viropharma / Shire        AbbVie                                                       ▪   Spark / Roche
                                                                                              ▪   Hospira / Pfizer
                                                                                              ▪   Synageva / Alexion
                                                                                              ▪   Receptos / Celgene
200                                                                                           ▪   ZS Pharma / Astra                             ▪   Shire / Takeda
                                                                                                                                                ▪   Bioverativ / Sanofi
                                                                                                                                                ▪   Juno / Celgene
                                                                                                                                                ▪   Avexis / Novartis
                                                                                                                                                ▪   Impact Biomedicines
                                                                                                           ▪   Baxalta / Shire                      / Celgene
150                                                                                                        ▪   Medivation / Pfizer
                                                      ▪     Onyx / Amgen
                                                                                                           ▪   Meda / Mylan
                                                      ▪     ViroPharma / Shire                                                     ▪   Actelion / J&J
                                                                                                           ▪   Stemcentrx / AbbVie
                                                      ▪     Algeta / Bayer                                                         ▪   Kite / Gilead
                                                                                                           ▪   Anacor / Pfizer
                                                      ▪     Santarus / Salix                                                       ▪   Ariad / Takeda
                                                      ▪     Map / Allergan        219                                              ▪   Akorn / Fresenius                  217
100              ▪    Pharmasset /                                                                                                 ▪   Ignyta / Roche
                      Gilead
                                     ▪   Actavis / Watson
                                                                                                    185
                                     ▪   Amylin / BMS
                                     ▪   Inhibitex / BMS                                                                                                   144
                                     ▪   Ardea / Astra
 50       109                                                                                                          107
                                                                 79                                                                     79
                            57               48
  0
          2010             2011            2012                2013              2014               2015               2016            2017                2018           2019

Source: Evaluate Pharma (2020)
HBM Healthcare Investments Ltd

About HBM Healthcare Investments Ltd
Investment Strategy / Investment Process
Healthcare Sector
Portfolio Structure
Investment Positions
Outlook & Concluding Remarks
Appendix: Organisation, Team
Balance Sheet and Currency Allocation                                                                                                                        35
        2’400

        2’200                        10%; 211                             Cash
        2’000                          4%; 88
                                                                                                                       Others
                                                                                                                INR     6%
        1’800                                                             Other Assets
                                                                                                                4%
                                                                                                       CHF**
        1’600                                                                                           5%

                                                                          Public Equity*            EUR
        1’400                                                             thereof ex private:        6%
                                    68%; 1386                             CHFm 946/ 68%
        1’200
CHF m

                                                                          Private Equity Funds
        1’000                                                                                      CNY 12%

         800                                                                                                                                  USD* 67%
                                                                          Private Equity
         600
                                      9%; 192
         400                                                              Long-term liabilities
                                                                          2023
         200                         19%; 389

           0                                                              Short-term liabilities       * About 20% net of currency hedge (USD/CHF forward)
                                      -2%; -76                            (next 12 months)
                                                                                                       ** About 52% net of currency hedge (USD/CHF forward)
        -200                        -8%; -158
                * Currently around 18% of exposure to public markets (ex Cathay) is hedged
                                                                                                                      in % of assets
 HBM Research, data as of 31 January 2021, in % of net assets
Portfolio Breakdown by Market Cap and Geography                                                36

                  Market Capitalisation                                     Geography

       > CHF 10 billion 4%

                                                                                  Europe 13%

                                                                 Asia 28%

     CHF 2-10 billion 31%

                                 < CHF 2 billion 65%

                                                                                  North and
                                                                                   South
                                                                                 America 59%

HBM Research, data as of 31 December 2020, in % of investments
Portfolio Breakdown by Sector, Therapy and Stage                                                                        37

       Sector Breakdown                                  Therapeutic Area                Development Stage

                 Medical Devices
                 & Diagnostics 4%                                                                     Pre-Clinical 2%
   Spec.
 Pharma 6%

                                                                                            Phase I
                                                                                             12%           Profitable
                                                       Others 27%                                            21%
    Health IT,                                                             Oncology
    Services &                                                               31%
     Supplies                          Infectious                                     Phase II
      25%                            diseases 1%                                       19%

                           Biotech     Metabolic
                                                                          Central
                            65%      diseases 2%
                                                                          nervous                            Market
                                      Digital health                      system         Phase III            33%
                                           4%                            disorders         13%
                                                                            15%
                                     Medtech / Diagnostics
                                             4%
                                            Orphan diseases 7%
                                                               Immunology /
                                                             Inflammation 9%

HBM Research, data as of 31 December 2020, in % of investments
Investment Portfolio                                                                                                                            38
                                                                 Neurelis 1.6%    1mg 0.9%
                                                                                              InstilBio 0.7%
                                                     Swixx (Amicus)                                       Ambrx 0.7%
                                                         1.8%
                                                                                                               Jianke 0.7%
                                                                                                                 Nuance Pharma 0.7%
                                                                                                                  SAI Life Sciences 0.7%
                                                   Other Positions                                                 Farmalatam 0.6%
          ChemoCentryx 1.0%
                                                    < 1% 13.9%
                                                                                                                  Valo Health 0.5%
       Zymeworks 1.1%
                                                                                        Other Positions
                                                                                          < 1% 7.1%
      iTeos Therapeutics*
             1.2%
   Turning Point Therapeutics*
              1.3%

       Arcutis* 1.5%                                                                          Private Equity
                                                                                               Funds 8.0%
       Biohaven 1.5%

          Pacira* 1.7%

        SpringWorks* 2.0%

                                                                                        Cathay
                Argenx 2.2%                                                             Biotech*
                                                                                         11.3%
                       Viela Bio* 2.2%
                                                                         Harmony
                                                               BioAtla Biosciences*                                    Private equity positions
                         ALX Oncology* 2.6%
                                                               * 3.4%      6.1%                                        Public equity positions
                                 Y-mAbs Therapeutics* 3.0%
                                                                                                                       * ex private positions

HBM Research, data as of 31 January 2021, in % of assets, Top 10 positions (direct investments): 36.7%
Asset Allocation over Time                                                                                                                  39

        1’600

                                                                                                                                             14%
        1’400
                                                                                                                                              1%
                                                                                                                                             10%
        1’200

        1’000
                                                                                                                                             35%
         800
CHF m

         600

         400
                                                                                                                                             40%
         200

           0
                2003   2004   2005   2006    2007   2008   2009   2010    2011   2012    2013   2014   2015     2016   2017   2018   2019    2020
                                                                                                                                              -9%
         -200

                Public companies            Private companies            Private Funds           Other assets             Cash              Liabilities

        HBM Research, data as of the end of each financial year (31 March), in % of assets
Development Stage of Lead Product of Portfolio Companies                                                                                     40

100%
                                                                                       4%
                                                                                                11%     10%
                                                                              11%
                                                                     17%                                         15%                        17%
                        16%                                21%                                                                        26%
80%            11%               12%      19%      27%
                                                                                                                         21%

                                                                                       46%      30%     30%
                                                                     20%
                                 17%                                                                                                        28%
       23%              25%               11%                                                                    35%
                                                   10%     26%
60%            30%                                                            50%
                                                                                                                         23%
                                                                                                                                      34%

40%
       36%
                                 58%      59%      57%               59%                        57%     57%
                        51%                                49%                         48%                                                  51%
               45%                                                                                               46%     45%
20%
                                                                              35%                                                     37%

       16%

 0%
       2005    2006     2007     2008     2009     2010    2011      2012     2013    2014      2015    2016     2017    2018     2019      2020

              Product(s) on the market and/or profitable          Phase III          Phase II          Phase I          Preclinical

HBM Research, data as of the end of each financial year (31 March), in % of investments
HBM Portfolio by Development Stage of Lead Asset                                                         41

Well balanced portfolio from a risk perspective
HBM book value
in CHF m
150
290
140
280
                                  About half of total assets is exposed to companies
130
270                                     with lead phase II and phase III drugs
120
150
110
140
100
 90
 80
 70
 60
 50     Blue: Public
 40     Green: Private
 30
 20
 10
  0
          Phase I / Preclinical            Phase II               Phase III            Market   Profitable

HBM Research, data as of 31 December 2020
Contribution to NAV                                                                                                                                     42

 Private and Ex Private Equity Positions Account for 65 Percent of Contribution

NAV impact per share (in CHF)

                                                                                                                            1.37
      10.04
                                                                                                                                               4.47
                                                                            2.84
      0.25                                                                                                                  12.25              1.33
                                                                                                      0.46
                             12.52
                                                                                                                            0.54
                                                 1.63
                             5.54
                                                                            17.45
      29.99                                                                                          32.20                                     30.69
                                                                                                                            24.11
                                                 9.82
                             18.75

                                                                            5.12

      -1.97                                                                 -0.99                                                              -3.11
                             -7.40                                                                   -5.40
                                                                                                                            -7.41
                                                -4.88                       -5.48
                                                                                                     -5.78                                     -7.18

                                                -1.11
                                                                                                     -5.20
                                                -2.43

     2013/14               2014/15             2015/16                 2016/17                      2017/18                2018/19            2019/20

          Private and ex private positions   Funds       Public positions           Other gains/losses (e.g. milestones)    Fees     Share buy-back

Note: IPO allocations in previously private companies are attributed to P&L from private positions
HBM Healthcare Investments Ltd

About HBM Healthcare Investments Ltd
Investment Strategy / Investment Process
Healthcare Sector
Portfolio Structure
Investment Positions
Outlook & Concluding Remarks
Appendix: Organisation, Team
Global Portfolio                                                                                                        44

                                                Sphingotec Adrenomed
                        Biohaven  Y-mabs                    Swixx Biopharma
                 Cardialen                        Argenx
        Dren Bio                 Viela Bio     Monte Rosa  Polyneuron
 ALX Oncology                  SpringWorks                                        Everest Medicines
Turning Point    Karius       Harmony   Biosciences
       AMBRX      Arcutis                                              Valcare                      Connect Biopharma
        Neurelis                                  Novellus Biopharma                      Bioshin
                  BioAtla                                                              1mg              Cathay
          Pacira  Longboard Pharma                                                                    Jianke
                                                                     Shriji Polymers
                                                                                                   Nuance
                                                                                      SAI Life Sciences

     Private companies
     Public companies

HBM Research, data as of 31 Janaury 2021 (Selection)
Largest Investments (1/2)                                                                                                                                         45

                                                                         Phase of                          Market      Owner-                Book            % of
                                                                          Lead                          Capitalisation  ship                 Value           Total
      Company                Core Business                               Product          Ticker          (CHF m)       (%)                 (CHF m)         Assets
                             Synthetic biology (long chain                Market       688065 CH              4’557              7.1         274.6 1)         11.3
                             diacids, carbohydrates,                                     (ex private)
                             special enzymes, green nylon)
                             Drug for the treatment of                    Market          HRMY                1’816              8.2          148.2           6.1
                             narcolepsy (with and without                                (ex private)
                             cataplexy)
                             Developing antibody-based                    Phase II         BCAB               1’260              6.7           83.9           3.4
                             therapeutics for the treatment                              (ex private)
                             of solid tumor cancers
                             Developing novel antibody                    Market           YMAB               1’516              4.8           72.6           3.0
                             therapeutics for oncology                                   (ex private)
                             targets
                             Develops immuno-oncology                     Phase I          ALXO               2’810              2.2           62.7           2.6
                             therapies                                                   (ex private)

                             Drug for treatment of severe                 Market            VIE               1’694              3.2           54.0           2.2
                             inflammation and                                            (ex private)
                             autoimmune diseases
1) Deferred tax on capital gain and VAT based on difference between potential selling and IPO price not included; lock up discount for 3 years starting August, 2020
reflected

Data as of 31 January 2021, * Implied company valuation
Largest Investments (2/2)                                                                                         46

                                                      Phase of                      Market      Owner- Book     % of
                                                       Lead                      Capitalisation  ship   Value   Total
    Company           Core Business                   Product      Ticker          (CHF m)       (%)   (CHF m) Assets
                      Drugs for autoimmune and        Phase III    ARGX             12’410      0.4    52.1     2.2
                      cancer diseases

                      Pipeline of targeted oncology   Phase III    SWTX             3’604       1.4    48.7     2.0
                      programs                                    (ex private)

                      Full representation of           Market      Private           149*      28.8    44.1     1.8
                      biopharma companies in
                      central and eastern Europe
                      Injectable medicines with        Market      PCRX             2’564       1.6    40.8     1.7
                      (patented) controlled release               (ex private)
                      of active drug
                      Nasal spray for the treatment    Market      Private           234*      16.8    39.4     1.6
                      of epileptic seizures

                      Drugs for treatment of           Market      BHVN             4’555       0.8    36.4     1.5
                      neurological and
                      neuropsychiatric diseases
                      (including rare diseases)

Data as of 31 January 2021, * Implied company valuation
Development of Share Prices (1/2)                                                                                       47

Market Cap: USD 4.3bn – (ex private)               USD 2.0bn – (ex private)            USD 1.4bn – (ex private)
160                                               55                                   55

140                                               45                                   45

120                                               35                                   35

100                                               25                                   25

80                                                15                                   15

60                                                 5                                    5
      2020                          2021               2020                   2021          2020                  2021

USD 1.7bn – (ex private)                           USD 3.2bn – (ex private)                5.2bn – (ex private)
                                                                                       USD 1.9bn
60                                                120                                  70

50                                                100                                  60

40                                                 80                                  50

30                                                 60                                  40

20                                                 40                                  30

10                                                 20                                  20

 0                                                     0                               10
  2018       2019   2019     2020          2021            2020                 2021     2019              2020          2021

 HBM Research, data as of 31 January 2021
Development of Share Prices (2/2)                                                                                                     48

 EUR 11.5bn                                            USD 4.0bn – (ex private)           USD 2.9bn – (ex private)
300                                                    100                                140

250                                                                                       120
                                                       80
                                                                                          100
200
                                                       60                                 80
150
                                                       40                                 60
100
                                                                                          40
 50                                                    20
                                                                                          20

  0                                                     0                                  0
   2016   2017   2018     2019      2020                 2019              2020    2021     2014    2015   2016   2017   2018   2019    2021

 USD 5.1bn                                        USD 1.2bn                               USD 6.1bn
100                                               40                                      140

                                                                                          120
80
                                                  30                                      100
60                                                                                         80
                                                  20
                                                                                           60
40
                                                                                           40
                                                  10
20
                                                                                           20

 0                                                 0                                        0
  2017    2018     2019      2020          2021     2020                          2021       2019                 2020                 2021

  HBM Research, data as of 31 January 2021
Largest Private Investments over the last 5 Years                                                        49

                                      IPO or
                                    trade sale

2016 / 2017                  2018     2019             2020                                   2021
                                                 Year of initial investment, only investments > CHF 5 million
Data as of 31 January 2021
Strategic Fund Investments                                                                                                                 50

                        BioVeda                WuXi              6- Dimensions        Tata Capital           Medfocus               HBM
                       China (I / IV)        Healthcare              Capital             (I / II)                                 Genomics

Invested:              2005 / 2018                2015                 2018              2015 / 2019              2005                 2015
Investment:            8.5 m / 5 m                20 m                 25 m              10 m / 20 m              16 m                 22 m
Investment multiple:   3.6x / n.a.                2.1x                 1.5x               1.4x / n.a.              2.5x                 1.1x
Ownership:             34% / n.a.                  7%                   5%                67% / n.a.              100%                 100%

                       Healthcare           Healthcare           Healthcare           Healthcare            Medical devices      Genomics

                       Fund strategy:       Access to early      Invest and build     Growth and            Incubator and        Early and
                       Later and growth     stage investment     quality platform     expansion             accelerator          development
                       stage                opportunities with   companies            investments           concept, selective   stage
                       opportunities        a focus on China     currently missing                          later stage          opportunities
                                                                 in China                                   investments

                       Investment thesis:   Seasoned             VC with              Partnering with       Access to            Access to early
                       One of the first     investment team,     capabilities in      one of the leading    promising early      stage investments
                       local investors      former               China and U.S. to    on-shore private      stage investments    in later rounds;
                       specialised in the   WuXiAppTec, with     access innovation    equity investors in   in later rounds;     Network of top
                       Chinese              vast network         and build category   Indian life           “raised” by          Silicon Valley
                       healthcare market    facilitating /       leaders in           sciences              successful           investors and
                                            offering deal flow   healthcare sectors                         entrepreneurs        companies with a
                                            possibilities                                                                        focus on
                                                                                                                                 genomics

                                            Currently no co-
                                            investment

      Data as of 31 January 2021, in CHF
Private Companies with significant Value-Increasing Potential                                                                              51

              ▪ Full representation service in CEE markets                    18        ▪ Cell therapy company developing tumor
    44        ▪ Profitable company with net sales exceeding EUR                           infiltrating lymphocytes (TIL) for the treatment of
                130 million in 2019; high double-digit sales growth                       solid tumor cancers
              ▪ Signed agreements with 17 multinationals across 17                      ▪ The company is advancing its technology into
                countries                                                                 clinical trials

              ▪ Diazepam (Valtoco) nasal spray for use in                     18        ▪ Proprietary platform technology with own clinical
                breakthrough epilepsy seizures                                            programs in oncology (HER2-ADC in phase II in US,
    39        ▪ US market approval with orphan status                                     phase III in China)
              ▪ Major unmet need in epilepsy patients, where no                         ▪ BLA is expected in China in H1 2022 and in the US
                drug is approved for controlling break through                            in 2023
                seizures

                                                                                        ▪ Focus on NGS-based diagnostics of infectious
                                                                                          diseases from blood samples
                                                                               4        ▪ Among the top players in microbial cell-free DNA
              ▪ India’s leading online pharmacy, medicines app                            (mcfDNA)
    21          and health platform                                                     ▪ mcfDNA-based testing is initially expected to
              ▪ Strong sales growth                                                       complement (not fully replace) existing microbial
              ▪ Highest ranked medical app on the Indian                                  diagnostics
                Google play-store

                                                                      Size corresponds to
                                                                      HBM’s book value (in
Data as of 31 January 2021                                            Mio. CHF)
Promising Public Company Holdings                                                                                                              52

                                                                                 ▪ Severe autoimmune diseases (MG, ITP, PV)
              ▪ Long-chain dicarboxylic acids / bio-based diamine 5              ▪ Novel antibody-based therapies, combining the
              ▪ Profitable with expected revenues of US$270 million
   275          for 2020                                                    52     diversity of the llama immune system with antibody
                                                                                   engineering
              ▪ Potentially first company with a commercial scale                ▪ Strong phase III in MG, submission for market
                production of bio-based diamine 5                                  approval expected by YE2020; ongoing phase III in
                                                                                   ITP; start phase III in PV in H2 2020

              ▪ Narcolepsy (with and without cataplexy)                          ▪ Focus on rare and difficult-to-treat cancer diseases; lead
    148       ▪ Wakix (Pitolisant) now market approved in the US            49     assets: nirogacestat and mirdametinib
                and in the EU for narcolepsy (with or without                    ▪ Several partnerships with Janssen, GSK, Pfizer with a
                cataplexy); unlike other wake-promoting agents,                    primary focus on BCMA
                Wakix is not scheduled as a DEA controlled                       ▪ 2Q/3Q21: Phase III top-line data for nirogacestat
                substance                                                          monotherapy in desmoid tumors

    73        ▪ Pediatric oncology (neuroblastoma), radio-                       ▪ Migraine treatment (acute / prevention)
                immunotherapy                                               36   ▪ Lead asset Rimegepant is an oral and CGRP
              ▪ Market approval received for Danyelza (Naxitamab)                  antagonist
                for the treatment of r/r high-risk neuroblastoma                 ▪ Approved for acute migraine treatment
                                                                                 ▪ Positive phase III in migraine prevention

              ▪ Market approved lead asset is an anti-CD19 antibody
    54          (Inebilizumab monotherapy) – potentially first-in-class –   36   ▪ Topical formulation of PDE4 inhibitor, Roflumilast
                in an orphan CNS autoimmune indication known as                    studied in mid-stage clinical trials for the treatment of
                Neuromyelitis optica spectrum disorder (NMOSD)                     plaque psoriasis and atopic dermatitis
              ▪ Limited competition, patients often receive off-label            ▪ Roflumilast potentially used as an alternative to
                immunosuppressants or steroids                                     steroids

Data as of 31 January 2021
Pipeline of Catalysts in 2021                                                                                                                                 53

 Important Clinical Results

Phase I / II                                                                        Phase III
ALX Oncology*                 ALX148, MDS Data Update                               Arcutis*                    ARQ-151, Psoriasis
Argenx                        Cusatuzumab, AML (unfit for intensive chemotherapy)   Arcutis*                    ARQ-151, Atopic dermatitis
BioAtla*                      BA3011 (AXL-ADC), Indication: AXL Positive            Beigene                     Brukinsa, treatment naïve CLL patients
BioAtla*                      BA3021 (ROR2-ADC), Indication: ROR2 Positive          Beigene                     Tislelizumab, 2L/3L NSCLC and 2L esophageal cancer
Biohaven                      Troriluzole (BHV-4157), Alzheimer's Disease           Biohaven                    Verdiperstat, Multiple system atrophy (MSA)
iTeos Therapeutics*           EOS-850, monotherapy solid tumors                     Biohaven                    Troriluzole, Spinocerebellar ataxia (SCA)
iTeos Therapeutics*           EOS-448, Dose Finding PK/PD, solid tumors             Pacira*                     Exparel, lower extremity nerve block (STRIDE trial)
Rocket Pharmaceuticals        RP-L201 for LAD-I                                     SpringWorks Therapeutics*   Nirogacestat, DeFi (desmoid tumors)
SpringWorks Therapeutics*     Lifirafenib + Mirdametinib combination study          Y-mAbs*                     Omburtamab (B7H3), CNS/LM neuroblastoma
SpringWorks Therapeutics*     BGB-3245, RAFm solid tumors
Turning Point Therapeutics*   Repotrectinib, ROS1+ NSCLC/TRK+ malignancies
Turning Point Therapeutics*   TPX-0046, RET+ Malignancies
Y-mAbs*                       Naxitamab, 2L osteosarcoma
Zymeworks                     ZW49, HER2-expressing cancers
Zymeworks                     Zanidatamab (ZW25), 1L HER2+ GEA

 US Approvals                                                                           Further IPOs expected
Albireo                       Odevixibat, PFIC
Argenx                        Efgartigimod, Generalized Myasthenia Gravis (US, Japan)
Biohaven                      Nurtec ODT, Migraine Prevention
ChemoCentryx                  Avacopan, ANCA-Associated Vasculitis
Pacira*                       Exparel, pediatric indication
Y-mAbs*                       Omburtamab (B7H3), CNS/LM from neuroblastoma

Note: expected catalysts, * private / ex private company
HBM Healthcare Investments Ltd – Attractions for Investors                      54

  Growing Industry                       Value Creation
    Equity investment into promising      Portfolio with significant value-
    private and public companies          increasing potential

  Expertise                              Commitment
    Expertise of the HBM Partners         Transparent valuation and
    team in selecting investments with    reporting, annual cash distribution
    attractive risk and reward            and share buy-back program
Reasons to Invest in HBM                                                                            55

►   Access to a well-diversified portfolio of private and listed companies – with daily liquidity
►   Portfolio with attractive value-increasing potential, companies with significant growth or IPO
    plans, plus potential M&A candidates
►   Closed-end structure allows optimum exploitation of the value-increasing potential of
    healthcare companies
►   Competitive edge over other investment companies and investment funds with exclusively
    listed investments
►   Stable team: Majority of investment professionals have been with HBM for more than 12
    years
►   HBM is a preferred investment partner, even for larger transactions
►   Overall, lower correlation to a “pure” stock market investment thanks to the substantial
    allocation in the private market
►   Quarterly reporting with high level of transparency and direct access to the HBM portfolio
    management team
HBM Healthcare Investments Ltd

About HBM Healthcare Investments Ltd
Investment Strategy
Healthcare Sector
Portfolio Structure
Investment Positions
Outlook & Concluding Remarks
Appendix: Organisation, Team
Timely & Transparent Investment Valuations                                                                 57

► Positions in listed companies are valued at market prices
► Positions in private companies are valued at acquisition cost in the investment currency,
  except when:
−   Portfolio company is valued higher or lower in connection with a new round of financing with a third
    party lead investor (not strategic investors)
−   Portfolio company is performing below expectations, leading to a write down in steps
    of 25, 50, 75 or 100%
−   Portfolio company has significant revenues and profits, in which case an appropriate price/sales or
    price/earnings multiple is applied (“sales and earnings multiple method”)

Negative events are reflected in the valuations as they occur. Positive developments (i.e.
good clinical data, partnering deals, etc.) will only be reflected in the valuations if there is a
„liquidity event“ (financing round with third party investor, IPO or trade sale).
Investor Information                                                                                              58

Share Information                                        Largest shareholders
                                                                                                              Latest
                                                         %       Shareholder                            Notification
Swiss security number                   1.262.725        15-20   Nogra SA, Luxemburg                     9.11.2016

German security number                    984345

ISIN                              CH 0012627250          Distribution policy
CUSIP                                H 3553X112
                                                         Withholding tax-exempt distribution yield of 3-5% p.a.
Telekurs                              126,126272         from par value repayment

SIX Swiss Exchange Ticker                  HBMN

Fees

                                                         0.75% of company assets plus
Annual Management fees (paid quarterly)
                                                         0.75% of the company's market capitalisation
Performance fee (paid annually)                          15% on increase in value above the high water mark
High water mark (per share for all outstanding shares)   NAV of CHF 204.33
Board of Directors                                                                                                                59

       Hans Peter Hasler                           Prof Dr Dr h.c. mult. Heinz               Mario G. Giuliani
                                                   Riesenhuber
                                                                                             Member of the Compensation
       Chairman and Member of the                                                            Committee
       Compensation Committee                      Vice Chairman and Member of the
                                                   Audit Committee                           Member of the Board of Directors Jukka
       Chairman of the Board of Directors MIAC     Chairman of the Advisory Board Rock       LLC since 2015, NGR (MONACO) SAM
       AG since 2012. Member of the Board of       Tech Lithium Inc. since 2018; Member of   since 2015, Giuliani Group SpA since
       Directors Minerva Neurosciences since       the Investors’ Committee Heidelberg       2010, and Giuliani SpA since 1999;
       2017, member of the Board of Directors      Innovation BioScience Venture II GmbH     Member of the Investment Committee
       Shield Therapeutics plc since 2018          since 2001                                Royalty Pharma since 2001, and Mosaix
                                                   Member of the German Parliament 1976      Ventures LLP since 2000 as well as
       Since 2017 CEO of Vicarius Pharma.                                                    various other directorships within the
       Prior to this, international management     to 2017; German Federal Minister of
                                                   Research 1982 to 1993; Chairman of        Nogra Group
       positions at Wyeth Pharmaceuticals,         German Parliamentary Society 2006 to      Previously executive positions and
       Biogen and Biogen Idec, as well as Elan     2018; numerous directorships              directorships at Giuliani SpA, Recordati
       Corporation                                                                           SpA, and Nogra Group SA

       Dr Eduard Holdener                          Robert A. Ingram                          Dr Rudolf Lanz

       Board Member                                Member of the Compensation and            Member of the Audit and
                                                   Nominating Committee                      Nominating Committee
       Chairman of the Board of Directors
       NovImmune S.A. since 2008, CEO              Chairman of the Board of Directors        Chairman of the Board of Directors Dr.
       since 2016                                  Viamet Pharmaceuticals Inc. since         Rudolf Lanz AG since 2009; Member of
                                                   2015, BioCryst Pharmaceuticals Inc.       the Board of Directors MIAC AG since
       Medical doctor. Prior to this, specialist                                             2015, and Pearls Fashion Holding AG
                                                   since 2015, Novan Inc. since 2011, and
       in internal medicine and oncology;          Cree Inc. since 2008                      since 2009
       various international executive                                                       Previously Partner of The Corporate
                                                   Various executive positions at Glaxo
       positions at F. Hoffmann-La Roche Ltd                                                 Finance Group and head of M&A &
                                                   Wellcome and GlaxoSmithKline (1990        Corporate Finance of Ernst & Young
                                                   to 2010)                                  Switzerland

       Dr Stella Xu

       Board Member
       Member of the Board of NextCure
       (Nasdaq: NXTC) since 2018 and a few
       other private biotech companies
       Ph.D. in Immunology from
       Northwestern University, and B.S. in
       Biophysics from Peking University
Management & Heads                                                                                                              60

      Dr Andreas Wicki (2001)                    Erwin Troxler (2005)                        Jean Marc Lesieur (2001)

      Chief Executive Officer                    Chief Financial Officer                     Managing Director and Member of
      Doctorate in chemistry and                 Economist and Swiss Certified Public        the Board of Directors (Cayman)
      biochemistry; since 2001 Chief                                                         More than 20 years of experience in
                                                 Accountant; since 2005 HBM
      Executive Officer HBM Healthcare
                                                 Healthcare Investments Ltd and HBM          trust and corporate management and
      Investments Ltd and HBM Partners
      Ltd. Prior to this, chief executive of     Partners Ltd, since 2011 Chief              administration. Former executive
      several pharmaceutical companies           Financial Officer. Prior to this, auditor   director for Vontobel Private Equity
      (1988 to 2001), investment and             PricewaterhouseCoopers Ltd (1996            Management Ltd.
      venture capital advisor (1993 to 2001)     to 2002) and Julius Baer Family             Associate of the Chartered Institute of
      Member of the Board of Directors           Office (2002 to 2005)                       Bankers, ACIB (Trustee), a member
      Harmony Biosciences since 2017,            Chairman of the Swiss Association of        of the Society of Trust and Estate
      Vitaeris Inc. since 2016, Pacira           Investment Companies (SAIC) since           Practitioners (STEP) and a Notary
      Pharmaceuticals Inc. since 2007,                                                       Public in the Cayman Islands. He
                                                 2014
      HBM Healthcare Investments
                                                                                             was educated in the Cayman Islands
      (Cayman) Ltd since 2001, and
      Buchler GmbH since 2000                                                                and England

      Dr Matthias Fehr, CFA (2002)               Dr Ivo Staijen, CFA (2003)

      Head Private Equity                        Head Public Equity
      Over 20 years of experience in             Over 20 years experience in the
      private and public equity investment       pharma industry and in investment
      management and research                    analysis and portfolio management
      MSc and PhD in chemistry from ETH          PhD in biotechnology from ETH
      Zurich                                     Zurich and MSc in chemistry from the
      Former senior sell-side analyst at         University of Groningen
      Lombard Odier for biotech and              Previously senior biotechnology
      medical technology industries; former      analyst at Bank Sarasin and
      scientist at the Swiss Federal Institute   department head at MDS Pharma
      of Technology                              Services
Private Equity Team                                                                                                                   61

       Dr Alexander Asam, MBA (2007)                Dr Priyanka Belawat (2007)                   Dr Emil Bujak, CFA (2015)

       Investment Advisor                           Investment Advisor                           Investment Advisor
       More than 20 years of experience in the      Over 18 years of experience in venture       Over 10 years of experience in venture
       life sciences and private equity                                                          capital and medicinal research
                                                    and private equity investing in
       businesses                                   healthcare space and life sciences           Holds a PhD and an MSc in Medicinal
                                                                                                 and Industrial Pharmaceutical Sciences
       MBA degree from ASTON Business               research
                                                                                                 from ETH Zurich and is a Chartered
       School, Birmingham and a MSc and PhD         Holds a doctorate in molecular biology       Financial Analyst (CFA) since 2019
       in chemistry from University of Heidelberg   and genetics from the University of          Prior experience as a registered
       Former managing director and partner of      Zurich and a post-doc at HKUST               pharmacist and in antibody technology
       Deutsche Venture Capital / Deutsche                                                       research at Philogen
       Bank. Various positions at Hoechst,
       Aventis and LION Bioscience

       Dr Michael Buschle (2017)                    Dr Ulrich Geilinger (2001)                   Dr Romain Kooger (2020)

       Investment Advisor                           Investment Advisor                           Investment Advisor
       More than 25 years of experience in          More than 25 years of experience in          Over 6 years life science research
       biotech and pharma                                                                        experience
                                                    the Venture Capital Industry
       PhD from the University of London.
                                                    PhD ETH Zurich in Natural Sciences           PhD and postdoc in biophysics and
       Research at St. Jude’s Children’s
       Research Hospital, Boehringer                and Industrial Engineering                   microbiology at ETH Zurich
       Ingelheim-owned Institute of Molecular       Previously in management functions at        BSc and MSc in biochemistry from the
       Pathology, Vienna                            Innoventure, Credit Suisse, Apax and         university of Geneva with an emphasis
       Co-founder of Intercell with successful      Vontobel                                     on chemistry and neurosciences. Year-
       IPO, CSO of Glenmark Pharma                                                               long research internships at Leiden
                                                                                                 University and Nanjing University

       Dr Chandra P. Leo, MBA (2007)                Dr Asun Monfort (2020)

       Investment Advisor                           Investment Advisor
                                                    More than 14 years of experience in life
       Over 20 years of experience in private
                                                    science research and development of
       equity, clinical practice and biomedical     advanced therapies
       research.
                                                    PhD in pharmaceutical development of
       Doctor of Medicine from Freie Universität    innovative medicines from University of
       Berlin (Charité), MAS in Medicines           Navarra. Postdoc at the Stem Cell
       Development from University of Basel,        Institute in the University of Cambridge
       MBA with distinction from INSEAD             and postdoc at the Institute for Molecular
                                                    Health Sciences at ETH
       Former postdoc at Stanford University,
                                                    Previously senior scientist at ETH
       physician at University Hospital Leipzig
       and principal at Wellington Partners
Public Equity Team                                                                                                                   62

       Steve Chen, CFA (2020)                      Miranda Guo (2020)                        Mirjam Heeb (2019)

       Investment Advisor (Hong Kong)              Investment Advisor (Hong Kong)            Investment Advisor
                                                   Over 5 years experience in Chinese        Over 15 years experience in the pharma
       Over 15 years of investing experience
                                                   healthcare industry with experience in
       with focus on China and global healthcare   investment analysis, business             industry and global healthcare investment
       MBA from Wharton Business School, MSc       development and post investment           analysis and portfolio management
       in Biochemistry and Molecular Biology       management                                MSc in Molecular Biology from the
       from Georgetown and BSc from Nankai         MSc in Biomedical Engineering from the    University of Basel and McGill University,
       University                                  Chinese University of HongKong            Montreal
       Previously managed trading portfolio for    Previously PE investment manager at       Previously senior portfolio manager of
       Barclays (NY) and Huatais’ HK subsidiary    LEPU Medical Technology and               GAM Health Innovation Fund, senior
                                                   investment analyst at BGI Genomics        manager with Vifor Pharma, analyst and
       and was PM for a large closed-end listed
       fund in China                                                                         portfolio manager at Bellevue Group

       Thomas Heimann (2010)                       Michael Jasulavic (2012)                  Ny Ken (2004)

       Risk Manager and Analyst                    Investment Advisor to HBM Partners        Investment Control
       Over 8 years of experience in               Over 10 years of experience in            More than 10 years experience in
       Investment Research, Analysis, FINMA        healthcare investment research,           trading & execution and administration
       Risk Management and client services         strategy and trade execution
       MSc and BSc in Banking & Finance                                                      Bachelor in business administration
                                                   MSc in Medical Science from
       from the Lucerne University of Applied                                                from Zurich University of Applied
                                                   MCP/Hahnemann University
       Sciences                                                                              Sciences
                                                   Previously biotechnology analyst at
       Previously in investment analysis and       Traxis Partners, Sivik Global             Previously in administrative functions at
       valuation and in client advisory at a       Healthcare and Jefferies Asset            HBM Partners AG
       Swiss bank                                  Management

       Gavin MacGregor (2017)                      Miles Schofield (2007)                    Dr Thomas Thaler (2006)

       Investment Advisor                          Trading & Execution                       Investment Advisor
       Over 13 years experience in the pharma      Over 15 years experience in trading &     Over 25 years of experience in the
       industry and in global healthcare           execution                                 investment management, financial
       investment analysis                                                                   research and in the biotechnology and
                                                   Bachelors of Science (Hons) degree
       1st Class BSc in Biomedical Sciences,                                                 medical technology industry
                                                   from the Open University UK
       University of Manchester and a Chartered                                              PhD in life sciences and MSc in
       Management Accountant (CIMA)                Previously in US Equities Middle Office   biochemistry and a MBA from ETH Zurich
                                                   activities at Salomon Smith Barney and
       Previously senior global healthcare                                                   Previously senior equity analyst at Bank
                                                   Citigroup
       analyst at Martin Currie Investment                                                   Julius Baer and in senior management
       Management, European pharma analyst                                                   positions with Sulzer Medica, Schneider
       at Credit Suisse and Lehman Brothers                                                  and Boston Scientific
Disclaimer                                                                                                                   63

This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the
purchase or sale of any financial instrument and should therefore not be relied on for accounting, legal or tax advice, or
investment recommendations.
Information herein is believed to be reliable but HBM does not warrant its completeness or accuracy. No responsibility can
be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when
taking individual investment and/or strategic decisions. HBM has expressed its own views in this document and these may
change.
Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as
rise and investors may not get back the amount originally invested. An investment entails risks, which are fully described in
the prospectus.
Some information quoted was obtained from external sources HBM considers to be reliable. No responsibility can be
accepted for errors of fact obtained from third parties, and this data may change with market conditions. Third party data is
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access to this webpage.
Issued by HBM Healthcare Investments AG, Bundesplatz 1, 6300 Zug, Switzerland.
Your Contact                           64

HBM Healthcare Investments Ltd
Bundesplatz 1
6301 Zug
Switzerland

Phone      +41 41 710 75 77
Fax        +41 41 710 75 78

investor.relations@hbmhealthcare.com
www.hbmhealthcare.com
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