DIACEUTICS PHARMA READINESS FOR PERSONALIZED MEDICINE SUMMARY REPORT Prepared using the Diaceutics Method

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DIACEUTICS PHARMA READINESS FOR PERSONALIZED MEDICINE SUMMARY REPORT 2016

KEY TAKEAWAYS FROM THIS YEAR S REPORT Diaceutics Pharma Readiness for Personalized Medicine (PM) Benchmark Report is a quantitative and qualitative assessment of Pharma Readiness to operate in a personalized medicine marketplace. The report relies on data and PM IS NOW THE PREDOMINANT R&D BUSINESS MODEL information in the public domain. PM LEADERSHIP BECOMES INCREASINGLY HARDER WITH ONLY A SMALL NUMBER OF COMPANIES IN CONTENTION EXTERNAL COMMUNICATION ON PM CONTINUES TO RISE BUT IT IS CLEAR SOME COMPETITORS ARE NOT IN THE GAME REVENUES FROM PM ENABLED DRUGS CONTINUE TO RISE DRAMATICALLY DISPROVING THE PERCEPTION THAT PM IS SMALL BUSINESS GREATEST PM COMPETITION IS IN ONCOLOGY BUT COMPETITORS ARE DEPLOYING PM IN OTHER INDICATIONS PM PARTNERING IS STILL THE PREFERRED TECHNOLOGY APPROACH BUT ONLY ROCHE HAS CRITICAL MASS IN SOME KEY AREAS 2

Pharma pipeline analysis suggests PM is now the predominant business model Almost ¾ of the late stage pipeline is either associated with a known biomarker, a biomarker/dx strategy is already in place or the therapy could benefit from a Dx strategy. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ratio of PM therapies in the pipeline 2011 2014 2015 Average 2011 Average 2014 Average 2015

A focus on oncology by some competitors makes them obvious PM players but others are diversifying their PM approach 100% 75% 50% 25% 0% Ph III pipeline by therapy area Oncology Autoimmune diseases Diabetes Neuroscience and pain Other

Oncology still dominates marketed PM therapies but other areas are growing quickly Broader PM = Therapies which are enabled by a PM strategy 160 140 120 100 80 60 40 20 0 Number of PM therapies on the market 2011 2015 On FDA PGx list Broader PM 2015 list of therapy areas for PM therapies on the market oncology CNS infectious diseases cardiology and haematology gastroenterology endocrinology rheumatology others

External Pharma communication about PM continues to rise although some competitors are still less vocal PM-related press releases (%) 1/3 of all press releases in 2015 are related to specific PM therapies or PM in general 60% 40% 20% Ratio of PM-related press releases: 2010 and 2015 Q2 only 34% 11% 0% 2010 2015 Average 2010 Average 2015

Number of deals Roche far outstrips other competitors with its recent partnering strategy 30 25 20 15 Number of PM/Dx deals 10 5 6.8 4.8 0 2010-2012 2013-2015 H1 2010-2012 average 2013-2015 H1 average

Organizational Readiness >>>> When we analyze all the key factors in our relative competitive index only a small number of companies are building the capability to lead Roche Organizational Readiness Factors PM Ph3 Pipeline Internal PM/Dx Division Rx/Dx Partnerships Commercial Readiness Factors PM Revenues Channel Control # PM Integrated Brands Diaceutics Pharma Readiness Report integrates six key externally observed factors which are weighted. The Report illustrates the competitive position relative to peers. GSK Sanofi Aventis Lilly BMS Pfizer Merck Amgen BI Janssen AZ Novartis Followers Breakaways Disruptors Commercial Readiness >>>>>

INCLUSIVE IN THE FULL PM READINESS REPORT TABLES CHARTS 1. Post-2010 therapy launches with pharmacogenomic biomarkers and with companion diagnostics from the 14 Companies in Focus 2. Therapies on the FDA PGx list in 2015 by therapy area 3. Therapies retrofitted with biomarkers post-2010 by biomarker type 4. Size and composition of late stage pharmaceutical pipeline from the 14 Companies in Focus 5. Ratio and number of PM therapies in the late stage pipeline by company 6. Late stage pipeline of the 14 Companies in focus by therapy area 7. Ratio of oncology in the late stage pipeline by company 8. Ratio and number of therapies on the FDA PGx list in the portfolio by company 9. Ratio and number of broader PM therapies in the portfolio by company 10. Total sales of PM therapies from the 14 Companies in Focus 11. Ratio and volume of PM sales by company 12. Ratio and volume of oncology sales within PM sales by company 13. Ratio of PM-related press releases 2005-2015 14. Ratio of PM-related press releases by company 15. Total number of PM/Dx-related deals 2010-2015 16. Number of PM/Dx-related deals by company 17. Ratio of deals including commercialization by company 18. Number of deals related to complementary Dx 19. Ratio of deals related to complementary Dx by company 20. Analysis of deals related to complementary Dx by therapy area 21. Pharma readiness for personalized medicine 2015 ranking 9

DIACEUTICS FULL PM READINESS REPORT INCLUDES A COMPREHENSIVE QUANTITATIVE BENCHMARKING OF PHARMA PIPELINES, DEAL FLOW & CORPORATE PM ACTIVITIES. FOR A CUSTOMIZED PHARMA READINESS REPORT EMAIL SANNA.JOUSI@DIACEUTICS.COM OR MARK.REIS@DIACEUTICS.COM 10

DIACEUTICS RESEARCH LAUNCHED CLINICAL METABOLIC ONCOLOGY INF ID CNS 100+ PM Client Programs 4 Strategic Services 1 Integrated Vision