Financial Performance & Scoring -- © 2005 Gaskins IPO Desktop/IPOdesktop
	Analysis of 15 Biotech, Biopharma, Medical Device, Medical-related pre-IPO companies
	. Opening Premium Star Ratings:		1-Star--Flat to up $0.38; 2-Stars--Up $0.50 to $1;
		3-Stars-UP $1 to $3; 4-Stars--$4 and higher; 5-Stars--Moonshot, 100% plus
	. Business Model Rating Criteria
	A = high growth market, potential leader; B = more competitive market; C='public venture capital'
	. Calculations
	. IPO Price to annualized Sales Ratio -- (Price / Sales)
	Numerator		Denominator
	IPO market capitalization…		Annualized Sales (last quarter's revenues times 4)
	(post-IPO # of shares times mid-point of IPO price range)
	. IPO Price to annualized Earnings (loss) -- (Price / Earnings)
	Numerator		Denominator
	IPO market cap		Annualized Earnings (loss) from the last quarter
	=========================================================================
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	===================================
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
March 8	CombinatoRx (CRXX	223	n/a	-10.0	2.4	2.4	30%
	new medicines from synergistic combinations of approved drugs					Post-IPO shrs:20.3mm
March 4	AsprevaPharma ASPV	461	124.7	-19.2	3.7	3.7	22%
	commercializes approved drugs					Post-IPO shrs:32.95mm
Feb 25	Targacept (TRGT)	244	66.1	-10.2	2.1	2.1	31%
	biopharmaceutical					Post-IPO shrs:20.37mm
Jan 21	ViaCell (VIAC)	289	3.2	26.7	4.0	4.4	21%
	biotechnology company enabling the use of human cells as medicine					Post-IPO shrs:36.1mm
Dec 14	Conor Med (CONR)	368	n/a	-17	3.5	3.5	16%
	stents for vascular drug delivery					Post-IPO:30.7mm shrs
Dec 10	Adeza Biomd (ADZA)	239	7.3	39	3.5	3.5	24%
	patented diagnostic test, the Fetal Fibronectin Test					Post-IPO:15.9 mm shrs
Dec6midwk	CABG Med (CABG)	87	n/a	-30	3.0	3.0	35%
	artificial coronary graft system					Post-IPO: 15.8 mm shrs
Dec 8	OccuLogix (RHEO)	376	622.3	63	1.7	8.0	20%
	innovative treatments for eye diseases					Post-IPO:41.76mm shrs
Dec 9	SYMMETRY Md SMA	459	2.2	31	2.5	11.0	24%
	implants, elated instruments & cases for orthopedic device manufacturers.					Post-IPO: 32.8mm shrs
Oct 20	VNUS Medical (VNUS)	192	5.6	112	3.4	3.4	35%
	medical devices for minimally invasive treatment of venous reflux disease
Oct 14	CoTherix (CTRX)	176	n/a	-5	2.4	2.4	26%
	biopharmaceutical: therapeutics for life threatening diseases.
Oct 7	IntraLase (ILSE)	305	6.0	-38	3.5	3.5	26%
	laser technology for the first step of LASIK surgery
Sept 28	Theravance (THRX)	583	81.0	-6	2.9	3.6	12%
	biopharmaceutical company
Sept 23	Cogent Sys (COGT)	741	10.8	49	5.9	5.9	23%
	provider of Automated Fingerprint Identification Systems, or AFIS
Sept 22	Nephros (NEP)	78	n/a	-11	5.8	5.8	32%
	development stage medical device and technology company
	=========================================================================
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	===================================
pre-IPO scheduled date
March 8	CombinatoRx	CRXX, 2-Stars, C
	new medicines from synergistic combinations of approved drugs					Post-IPO shrs:20.3mm
	Boston, MA	2001	2002	2003	2004	IPO Mkt
	Revenue ($mm)	none	none	none	none	Cap (mm)
	R&D	3.8	9.9	12.1	15.9	$223
	Income (loss) ($mm)	-$5.6	-$13.6	-$16.3	-$22.3	@$11
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
March 8	CombinatoRx (CRXX), CRXX, 2-Stars	223	n/a	-10.0	2.4	2.4	30%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	0	2	6
	Business
	Developing new medicines built from synergistic combinations of approved drugs.
	cHTS approach
	. CRXX. Uses its combination high throughput screening, or cHTS, technology, to systematically
	screen pair-wise combinations from its library of approximately 2,000 United States, European
	and Japanese approved drugs
	. In cell-based assays corresponding to major diseases such as cancer, rheumatoid arthritis,
	asthma, psoriasis and diabetes.
	. Using these cell-based assays, cHTS technology screens the effects of millions of possible
	dose-specific combinations of existing drugs in each of our selected disease models.
	Discoveries
	. Has discovered pairs of approved drugs which in preclinical studies exhibit a therapeutic effect
	against a model for a target disease when applied in combination,
	. Even though neither drug is indicated for such disease on its own.
	. Also discovered pairs of drugs where CRXX's preclinical studies suggest the effectiveness or
	safety of one drug in its primary disease indication may be improved by combining it with another
	drug that, on its own, is not indicated for that disease.
	Advantages of CRXX's Approach
	. Early stage drug candidates often fail.
	. CRXX'ss approach seeks to address this high failure rate by pursuing a portfolio strategy for drug
	discovery and development.
	. By applying cHTS technology to screen for the biological effects of combinations of approved
	drugs in disease models
	. CRXX has identified multiple product candidates for selected major diseases and advanced them
	into proof-of-concept clinical trials.
	Active ingredients are approved drugs
	. Because the active pharmaceutical ingredients in CRXX"s product candidates are themselves
	approved drugs
	. CRXX has been able to move seven of product candidates into human clinical studies without the
	need to first complete many of the extensive preclinical toxicology and pharmacology studies
	generally required before initiating clinical trials for a new chemical entity.
	. This approach allows CRXX to make early development decisions based studies in patients,
	rather than only on studies in animals.
	Product candidates
	Immuno-Inflammatory Disease Program
	. CRXX currently has six clinical stage product candidates targeting immuno-inflammatory
	diseases and multiple additional preclinical product candidates.
	Oncology (cancer) Program
	. CRXX's oncology product pipeline includes dual-action agents in clinical and preclinical
	development.
	Metabolic Diseases and Other Preclinical Programs
	. CRXX's preclinical pipeline includes multiple product candidates targeted for potential
	development in Type II diabetes, other metabolic diseases, oncology and multiple immuno
	inflammatory diseases.
	Clinical Status
	. Five product candidates are in proof-of-concept studies in patients, or phase IIa trials, and a sixth
	product candidate is planned to enter phase IIa clinical trials in 2005.
	. In addition, CRXX is testing our oncology product candidate in patients with advanced cancers
	who have failed one or more prior therapies. These oncology trials, referred to here as phase I/II
	trials, are designed to evaluate safety, response rate, dosage levels and other factors.
	Competition
	. Will be competing against a wide range of pharmaceutical and life science companies that have
	greater resources
	Discovery technology
	. Seeks to create barriers to entry for other pharmaceutical companies by filing patent applications
	for technology and by protecting trade secrets
	. Many companies have already developed and employ high throughput screening technologies. .
	Should these companies seek to apply these technologies to the discovery of combination drugs,
	CRXX drug discovery technology may be rendered obsolete or noncompetitive.
	Use of $59.8mm in IPO proceeds
	• Development of our current portfolio of seven clinical stage product candidates;
	• Development of our preclinical stage product candidates.
	• Discovery and development of additional product candidates;
	• Further development of drug discovery technology; and
	• Working capital, capital expenditures and other general corporate purposes.
	===================================
March 4	Aspreva Pharma	ASPV, 1-Star, C
	commercializes approved drugs					Post-IPO shrs:32.95mm
	Victoria, British Columbia, Canada		2002	2003	2004	IPO Mkt
	Revenue ($mm)		none	none	none	Cap (mm)
	R&D		0.07	1.20	10.10	$461
	Income (loss) ($mm)		-$0.2	-$2.5	-$22.5	@$14
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
March 4	AsprevaPharma ASPV	461	124.7	-19.2	3.7	3.7	22%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	1	1	6
	Business
	Commercializes new indications for approved drugs and drug candidates for underserved
	patient populations.
	Strategy
	. Collaborate with pharmaceutical and biopharmaceutical companies to pursue new
	indication approvals which lie beyond their strategic focus.
	. Intends to assume the clinical, regulatory and commercial activities for these non-core
	indications of collaborators’ existing drugs.
	. Seeks collaborations with companies that have approved drugs and drug candidates
	that ASPV believes have compelling scientific, clinical and commercial potential.
	Example
	. CellCept is a drug currently approved in the United States, European Union, Canada
	and other countries for the prevention of organ transplant rejection.
	ASPV believes that CellCept also has the potential to be effective in treating a variety of
	autoimmune diseases.
	Collaboration with Roche
	. In July 2003, entered into first collaboration with Roche for the drug CellCept.
	. ASPV is responsible for clinical development, preparing regulatory filings and, following
	regulatory approval, commercialization, marketing and promotion of CellCept for use in
	autoimmune indications.
	. Roche will manufacture, distribute and record sales of CellCept.
	. Starting April 1, 2005 and during the term of the agreement, Roche is obligated to pay,
	on a quarterly basis, an amount equal to half of any incremental net sales of CellCept
	attributed to the use of CellCept for non-transplant indications above a negotiated
	baseline of 134 million Swiss Francs, or CHF, per year.
	Competition
	CellCept
	. In the transplant market, CellCept currently competes with Myfortic, which is marketed
	by Novartis. Myfortic is approved only for the prevention of kidney rejection. If additional
	indications are approved for CellCept, Novartis may choose to compete in these markets
	by also pursuing clinical trials in autoimmune indications.
	. If approved, CellCept will compete with immunosuppressants, the current standard of
	care for the treatment of autoimmune diseases, such as steroids and cytotoxic agents,
	including cyclophosophamide, cyclosporine and azathioprine.
	. In addition, ASPV is aware that the following companies have products in development
	or on the market that may be competitive with CellCept in lupus nephritis: La Jolla
	Pharmaceuticals Co., Prometheus Laboratories, Inc., Human Genome Sciences Inc.,
	Genelabs Technologies Inc., Genentech Inc., Teva Pharmaceuticals Ltd., Novartis AG
	and Bristol Myers Squibb Co.
	. ASPV is also aware that the following companies have products in development that
	may be competitive with CellCept in myasthenia gravis: Novo Nordisk A/ S, Corixa
	Corporation and Cambridge Neuroscience, Inc.
	. Ttwo companies are developing potential therapies for pemphigus vulgaris: Alexion
	Antibody Technologies, Inc. and Peptimmune, Inc.
	Use of $90.7mm in IPO proceeds
	• $14.0 million to commence planned Phase III clinical trial for the use of CellCept in the
	induction and maintenance treatment of lupus nephritis;
	• $6.0 million to continue Phase III clinical trial for the use of CellCept to treat myasthenia
	gravis;
	• $5.0 million to continue Phase III clinical trial for the use of CellCept to treat pemphigus
	vulgaris;
	• $15.0 million to fund market research, continuing medical education, medical liaisons
	and product launch preparation for CellCept.
	===================================
	note: TRGT was postponed
Feb 25	Targacept (TRGT)	TRGT, 1-Star, C
	biopharmaceutical					Post-IPO shrs:20.37mm
	Winston-Salem, North Carolina		2002	2003	2004	IPO Mkt
	Revenue ($mm)		$2.3	$2.5	$3.7	Cap (mm)
	R&D		$16	$18	$23	$244
	Income (loss) ($)		-$21	-$19	-$24	@$12
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Feb 25	Targacept (TRGT)	244	66.1	-10.2	2.1	2.1	31%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	1	1	6
	Business
	. Biopharmaceutical targeting a new class of drugs to treat multiple diseases and disorders
	. By selectively targeting a class of receptors known as neuronal nicotinic acetylcholine receptors,
	or NNRs.
	. Has worldwide commercialization rights for all of product candidates
	Focus and product candidates
	. Three therapeutic areas: cognitive impairment, pain and depression.
	. Within these areas, has three product candidates in clinical development and three preclinical
	product candidates
	. Expects to advance one of the preclinical product candidates into clinical development in the first
	half of 2005.
	. Also has multiple preclinical programs for target indications outside these areas, which TRGT
	believes NNRs can be exploited for medical benefit.
	Inversein
	Product candidate currently in a Phase II clinical trial as an add-on therapy in patients with major
	depressive disorder, is approved in the United States for moderately severe to severe essential
	hypertension.
	TRGT believes that Inversine is the only FDA-approved product designed to target an NNR.
	Sources of revenue
	. Since August 2000, funded operations primarily through private placement of equity securities
	and, to a much lesser extent, through payments received from our collaborators, equipment and
	building lease incentive financing, sales of our product Inversine and government grants.
	History
	. Traces scientific lineage to a research program initiated by R.J. Reynolds Tobacco Company in
	1982 to study the activity and effects of nicotine in the body and the function of nicotinic
	acetylcholine receptors.
	. Incorporated in Delaware in 1997 as a wholly owned subsidiary of RJR.
	. In August 2000, we became an independent company when we issued shares of our series B
	convertible preferred stock to outside investors.
	Competition
	Substantial competition from therapies designed to target NNRs (neuronal nicotinic acetylcholine
	receptors)
	. Pfizer, with an NNR-targeted compound in Phase III for smoking cessation, and Abbott
	Laboratories, with an NNR-targeted compound in Phase II for Alzheimer’s disease, ADHD and
	schizophrenia and a second NNR-targeted compound in Phase I for pain.
	. In addition, companies with active NNR-based research programs include Merck & Co.,
	AstraZeneca, Eli Lilly, Sanofi-Synthélabo, Memory Pharmaceuticals, Critical Therapeutics and
	NeuroSearch A/S.
	While there is currently no approved product either for AAMI or for cognitive impairment
	associated with schizophrenia, primary competitive products include
	• for mild to moderate Alzheimer’s disease, acetylcholinesterase inhibitors such as Aricept from
	Pfizer, Reminyl from Johnson & Johnson and Exelon from Novartis and for moderate to severe
	Alzheimer’s disease, Namenda from Forest Laboratories, which acts by regulating the
	neurotransmitter glutamate;
	• for pain, non-steroidal anti-inflammatory drugs such as Celebrex from Pfizer and opioids such as
	OxyContin from Purdue Pharma;
	• for depression, selective serotonin reuptake inhibitors such as Prozac from Eli Lilly,
	Paxil/Seroxar from GlaxoSmithKline, Zoloft from Pfizer, Celexa from Forest Laboratories and
	Lexapro from Forest Laboratories and the dual uptake inhibitor Effexor from Wyeth;
	• for schizophrenia, anti-psychotics such as Zyprexa from Eli Lilly, Risperdal from Johnson &
	Johnson and Abilify from Bristol-Myers Squibb; and
	• for smoking cessation, Zyban from GlaxoSmithKline.
	Use of $67.8mm in IPO proceeds
	Fund clinical trials, preclinical testing and other research and development activities
	• $25 million to fund further development of ispronicline, product candidate for conditions marked
	by cognitive impairment that afflict the elderly, including Alzheimer’s disease and AAMI;
	• $2 million to fund further development of TC-1827, product candidate for cognitive impairment
	associated with schizophrenia;
	• $12 million to fund further development of TC-2696, product candidate for acute post-operative
	pain;
	• $3 million to complete ongoing Phase II clinical trial of Inversine as an add-on therapy in
	patients with major depressive disorder;
	• $2 million to conduct the additional preclinical toxicology studies necessary to support an IND
	for clinical trials of TC-2216; and
	• $24 million to fund general and administrative expenses, other research and development
	expenses, working capital needs and other general corporate purposes.
	====================================
Jan 21	ViaCell	VIAC, 2-Stars, B-
	biotechnology company enabling the use of human cells as medicine					Post-IPO shrs:36.1mm
	Boston, MA	2001	2002	2003	Sept 9 mos	IPO Mkt
	Revenue (mm) ($)	$7.3	$20.4	$31.9	$28.6	Cap (mm)
	Gross margin %	57.5%	71.1%	77.6%	80.7%	$289
	R&D	$7.0	$11.4	$13.2	$11.7	@$8
	Inprocess tech*	$0.6	$5.9	$23.9
	*cost of acquiring technology
	Income (loss) ($)	-22.1	-36.0	-55.5	-15.9
	Income (loss) (%)	-302.7%	-176.5%	-174.0%	-55.6%
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Jan 21	ViaCell (VIAC)	289	3.2	-14.4	4.0	4.4	21%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	3	1	2	8
	Business
	enabling the use of human cells as medicine
	. An early stage of development for cellular therapeutic candidates and has recently initiated the
	first clinical trial for the lead product candidate, CB001.
	. Developing a pipeline of other proprietary product candidates intended to address cancer, cardiac
	diseases, and infertility.
	. Also has a commercial business dedicated to the preservation of umbilical cord blood, an
	abundant source of stem cells for potential therapeutic use.
	. Currently generates revenue from cord blood preservation activities, which VIAC markets as its
	Viacord product.
	Collaborations
	. In December 2003, VIAC entered into a license and collaboration agreement with Amgen under
	which VIAC received a non-exclusive license to certain Amgen stem cell growth factors for use in
	developing and manufacturing cell therapy products
	. Amgen received an option to collaborate with VIAC on development and commercialization of
	any product, including CB001, that incorporates an Amgen growth factor or technology.
	. Amgen made a $20 million equity investment in VIAC.
	. In addition, VIAC has an agreement with Genzyme, an equity investor in ViaCell, under which
	Genzyme provides scientific support in the area of islet stem cell research.
	. VIAC also has entered into relationships with academic institutions and other companies.
	Product and Product Candidates
	CB001
	. Lead cellular therapy product candidate, CB001, is initially being developed by us for use as a
	substitute for bone marrow and other hematopoietic stem cell transplants. CB001 is a proprietary,
	highly concentrated and purified population of stem cells
	. Currently enrolling patients in a Phase I clinical trial
	Viacord
	. Viacord customers are expectant parents who have entrusted us with their child’s umbilical cord
	blood, which VIAC processes into a cellular therapeutic and cryopreserve, or preserve by freezing,
	for potential future use by that child or a sibling
	. VIAC believes it is one of the leaders in the emerging private, or family, cord blood preservation
	industry.
	Oocytes
	. Preservation and storage of human oocytes: VIAC has an exclusive license to a proprietary
	cryopreserving media that allows VIAC to preserve oocytes. A study of the application of this
	media published in Human Reproduction, a peer-reviewed journal, documented four pregnancies
	and five live births following 11 embryo transfers. VIAC is working with in vitro fertilization
	centers to demonstrate additional births using this technology.
	Intellectual Property
	. Currently owns or has exclusively in-licensed the five US patents
	. Three of the owned and issued US patents are directed to methods of manufacturing target
	populations of primary cells for use as cellular medicines. These patents broadly cover the use of
	selection elements to select a target population of cells continuously, intermittently during, or after
	a culture phase.
	. The Selective Amplification technology covered by these patents is core to the manufacture of
	VIAC's lead stem cell product candidate, CB001. These patents expire in 2014 if not extended.
	Corresponding international applications are pending.
	. One of VIAC's owned and issued US patents is directed to the method of making hemangioblast
	cells from a neonatal source. This patent broadly covers the derivation and growth of human
	hemangioblasts from a non-fetal source. This patent expires in 2017 if not extended.
	Corresponding international applications are pending.
	. One of VIAC's exclusively in-licensed and issued US patents is directed to a method of
	cryopreserving human oocytes. This patent is broadly directed at cryopreservation of a human
	oocyte, using proprietary media so that the oocyte enters into a dormant state and is then stored for
	future use. This patent expires in 2017 if not extended.
	. VIAC owns two pending US patent applications directed to compositions and methods of using
	USSCs to treat a broad class of diseases.
	. Furthermore, VIAC owns outright or has exclusively in-licensed 52 international patent
	applications.
	. In addition, VIAC has non-exclusive licenses to 30 US patents and patent applications and 86
	foreign patents and patent applications, including patents covering growth factors used in VIAC's
	Selective Amplification process.
	Competition
	Stem cell therapy competitors
	. Stem cell therapy competitors with products that could potentially compete with CB001 include
	commercial and development-stage companies offering or intending to offer stem cell products
	derived from bone marrow, cord blood or mobilized peripheral blood, or devices or services for
	processing and producing cells derived from these tissues, for use in stem cell transplants. Specific
	competitors include Aastrom Biosciences, Celgene, Cellerant, Gamida-Cell and Osiris
	Therapeutics. Companies with the most advanced products potentially competitive with CB001
	include Gamida-Cell and Osiris Therapeutics.
	. Gamida-Cell, a private company based in Israel, has a hematopoetic stem cell product candidate
	made from umbilical cord blood that is intended for use in hematopoietic stem cell transplants,
	similar to CB001. Gamida-Cell’s product candidate is currently being evaluated in a Phase I
	clinical trial. Osiris Therapeutics, a private company based in the US, has a mesenchymal stem
	cell product candidate isolated from bone marrow that is intended for use in conjunction with
	transplantation of conventional bone marrow or cord blood cells. Osiris’ product candidate has
	already completed Phase I testing.
	. In addition to these cell therapy products, competition for CB001 may be in the form of new and
	better drugs to treat leukemias, lymphomas, myelomas and certain genetic diseases.
	Stem cell therapies
	. VIAC is aware of several competitors developing stem cell therapies for the treatment of cardiac
	disease, including GenVec, Genzyme, Bioheart, Osiris Therapeutics, and potentially others.
	GenVec, Genzyme, and Bioheart are all developing products consisting of skeletal myoblasts
	isolated from muscle, expanded in culture, and injected into a patient’s heart to repair dead tissue.
	All three companies’ products are currently in clinical studies: Bioheart completed a Phase I study
	in 2002; GenVec is currently conducting its Phase I study; and Genzyme is currently recruiting
	patients for its Phase II study. Osiris’s product candidate consists of mesenchymal stem cells
	isolated from donor bone marrow, expanded in culture, and is intended to be injected into a
	patient’s heart to prevent scar tissue. Osiris has publicly stated that it intends to file an IND to
	begin clinical studies in 2004. Other companies, including Hydra Biosciences, have pre-clinical
	development efforts using growth factors to stimulate repair of endogenous heart tissue.
	Cord blood preservation
	. Competitors in the cord blood preservation industry include the approximately 20 other national
	private family cord blood banks in the United States, including California Cryobank, Cbr Systems
	(Cord Blood Registry), Cryo-Cell International, CorCell, LifeBankUSA, and New England Cord
	Blood Bank.
	. Some of the competitors, including Cryo-Cell, CorCell, and LifeBankUSA, charge a lower price
	for their products than we do.
	. Other competitors such as LifeBankUSA, a division of Celgene, a publicly traded corporation,
	may have greater financial resources.
	. There are also more than fifty public cord blood banks throughout the world, including the New
	York Blood Center (National Cord Blood Program), University of Colorado Cord Blood Bank,
	Milan Cord Blood Bank, Düsseldorf Cord Blood Bank, and others.
	Oocyte preservation
	. Compeitors are expected to include IVF centers and individual companies that offer oocyte
	preservation.
	. VIAC is are aware of 20 IVF centers already offering oocyte preservation, which may make it
	more difficult for to establish a product or achieve a significant market share.
	. IVF centers currently offering this service include Florida Institute for Reproductive Medicine,
	Stanford University, The Jones Institute for Reproductive Medicine, and Egg Bank USA (through
	Advanced Fertility Clinic).
	. Companies offering oocyte preservation include Extend Fertility.
	Cord Blood Stem Cell Act.
	. The Cord Blood Stem Cell Act of 2003, or the CBSCA, is currently being considered by the U.S.
	Congress.
	. If enacted, it would provide federal funding for a national system of public cord blood banks in
	order to increase the number of available cord blood units to at least 150,000 units.
	. It also contains provisions designed to encourage cord blood donations from an ethnically diverse
	population.
	. Under the CBSCA, a public cord blood bank could obtain federal funding from this program if
	the bank meets eligibility requirements established by the CBSCA.
	. The CBSCA is not applicable to family cord blood banks such as Viacord, and Viacord would
	not be eligible for federal funding under the CBSCA.
	Other
	. ViaCell plans to obtain cord blood units to manufacture CB001 from public cord blood banks.
	An increase in the number and availability of public cord blood units could increase the available
	units for use in manufacturing CB001. Alternatively, an increase in the number of available cord
	blood units in public banks could have an adverse effect on the market for CB001 or other of our
	potential cell therapy products.
	. If public cord blood banks are able to increase their inventories and obtain more units with a
	higher volume of stem cells, then public cord blood banks may be able to better compete with
	VIAC's potential cell therapy products.
	Use of $53mm in IPO proceeds
	• $15.0 million for conducting a Phase II clinical trial for CB001, assuming successful completion
	of the Phase I clinical trial for CB001 currently underway;
	• $5.0 million for preclinical research and development activities relating to product candidates;
	• $15.1 million for repayment of principal and interest on a $14.0 million note issued as partial
	consideration in the acquisition of Kourion Therapeutics in 2003; and
	• $18.2 million for general corporate purposes, including working capital needs, and potential
	acquisitions of technologies or businesses or the establishment of partnerships and collaborations
	=================================
Dec 14	Conor Medsystems	CONR, 2-Stars, C
	stents for vascular drug delivery					Post-IPO:30.7mm shrs
	Menlo Park, CA	2001	2002	2003	Sept 9 mos	IPO Mkt
	Revenue (mm) ($)	none	$0.1	none	none	Cap (mm)
	R&D ($mm)	$1.4	$3.6	$9.2	$11.9	$368
	Income (loss) ($)	-$2.0	-$5.0	-$11.0	-$15.8	@$12
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Dec 14	Conor Med (CONR)	368	n/a	-17	3.5	3.5	16%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		1	2	1	2	6
	Business
	. Controlled vascular drug delivery technologies
	. Initially focused on the development of drug eluting stents to treat coronary artery disease,
	a market that CONR believes will grow to over $6 billion by 2008.
	. Stents are tubular mesh devices consisting of interconnected metal struts that are inserted inside
	an artery to act as scaffolding, propping open a narrowed blood vessel.
	Products
	. CONR stents have been specifically designed for vascular drug delivery, in contrast to currently
	available drug eluting stents, which are conventional bare metal stents coated with a drug and
	polymer.
	. A polymer is a substance used to adhere a drug to the surface of a stent and to modulate its
	release.
	. CONR stents incorporate hundreds of small holes, each acting as a reservoir into which CONR
	can load a drug-polymer composition.
	Competition
	Marketing treatments for restenosis
	. In particular, Boston Scientific Corporation has developed a paclitaxel eluting stent, the
	TAXUS™ Express 2™ stent, which is marketed in the United States, Europe and other
	international markets.
	. Johnson & Johnson has developed a stent coated with rapamycin, the CYPHER™ stent, which is
	marketed in the United States and Europe. The TAXUS™ Express 2™ stent and the CYPHER™
	stent are currently the only FDA approved drug eluting stents in the United States.
	. In addition, Guidant Corporation, Abbott Laboratories, Biocompatibles International plc and
	Medtronic, Inc. are all developing drug eluting stents.
	. All of the drug eluting stents that have been publicly disclosed as being under development by
	other companies are surface-coated stents.
	. Many of these companies claim that their drug eluting stents provide the ability to control release
	kinetics.
	Boston Scientific
	. In August 2004, Boston Scientific announced that it had begun patient enrollment in a pivotal
	study to collect data to support regulatory filings required to commercialize its new TAXUS™
	Liberte™ paclitaxel-coated coronary stent as a platform for its next-generation drug eluting
	coronary stent system.
	. Boston Scientific has stated that the trial is designed to assess the safety and efficacy of a slow
	release dose formulation for the treatment of coronary disease and that the TAXUS™ Liberte™
	stent system is designed to further enhance the stent's deliverability and conformability,
	particularly in challenging lesions.
	Use of $54mm in IPO proceeds from sale of 5mm shares
	. $41mm for product development
	. $7mm for sales & marketing
	. Balance for working capital and general corporate purposes
	=====================================
Dec 10	Adeza Biomedical	ADZA, 2-Stars, C+
	patented diagnostic test, the Fetal Fibronectin Test					Post-IPO:15.9 mm shrs
	Sunnyvale, CA	2001	2002	2003	Sept 9 mos	IPO Mkt
	Revenue (mm) ($)	$6.7	$14.3	$26.5	$24.5	Cap (mm)
	Gross margin %	62.7%	74.1%	77.0%	85.3%	$239
	Income (loss) ($)	$5.0	$5.0	$5.0	$4.6	@$15
	Income (loss) (%)	74.6%	35.0%	18.9%	18.8%
	Not included: accrued royalties, should have been amortized				$2.7
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Dec 10	Adeza Biomd (ADZA)	239	7.3	39	3.5	3.5	24%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	2	2	8
	Business
	. Innovative products for women’s health
	. Initial focus is on reproductive healthcare, using proprietary technologies to predict preterm birth
	and assess infertility
	Product
	. Patented diagnostic test, the Fetal Fibronectin Test, that utilizes a single-use, disposable cassette
	and is analyzed on ADZA's patented instrument, the TLiIQ System.
	. Product is approved by the Food and Drug Administration, or FDA, for broad use in assessing
	the risk of preterm birth.
	. Designed to objectively determine a woman’s risk of preterm birth by detecting the presence of a
	specific protein, fetal fibronectin, in vaginal secretions during pregnancy.
	. Testing for fetal fibronectin during pregnancy provides a more accurate assessment of the
	likelihood of a preterm birth than traditional methods.
	Preterm births
	. According to the New England Journal of Medicine, preterm births have historically accounted
	for up to 85% of all pregnancy-related complications and deaths in the United States.
	. The March of Dimes estimated that over $13 billion in costs were associated with the care of
	preterm or low birth weight infants in 2001.
	Three patient categories
	. Women who present with signs and symptoms of preterm labor and are typically directed to the
	hospital.
	. Second and third categories include women designated as either "high-risk" or "low-risk" for
	preterm birth by their healthcare providers, and who currently exhibit no signs and symptoms of
	preterm labor.
	. ADZA believes that by using the Fetal Fibronectin Test periodically during a pregnancy,
	healthcare providers can more accurately assess the likelihood that women in all three categories
	will not deliver preterm.
	Market size
	. ADZA estimates that its product has a potential market size in the first two patient categories is
	of over $400 million annually.
	. If ADZA is able to expand the use of the Fetal Fibronectin Test for women designated as "low
	risk" and for other uses, ADZA estimates the potential annual market size can be greater than $1 billion.
	Competition
	. ADZA is currently the only provider of a fetal fibronectin test for predicting preterm birth.
	. Competitors could use other biomarkers, including cytokines and other proteins indicative of
	infection, and proteomics are the subject of research that may yield new products or technologies.
	. Healthcare providers use diagnostic techniques such as clinical examination and ultrasound to
	diagnose the likelihood of preterm birth. Healthcare providers may choose to continue using these
	techniques to assess their patients, rather than use ADZA's Fetal Fibronectin Test
	Use of $50.5mm in IPO proceeds
	. $15.0 million to expand our sales and marketing efforts in the United States and internationally;
	. $8.0 million for research and development activities related to product development, clinical
	trials and regulatory approvals for additional indications for the Fetal Fibronectin Test in the
	United States and internationally. Potential additional indications include induction of labor,
	prediction of delivery date and bladder cancer monitoring.
	. $7.0 million for research & development activities for oncology-related products & other
	areas;
	. Balance for working capital and other general corporate purposes, including $5.0 million for
	investment in working capital related to expected increases in accounts receivable and inventory
	and $2.5 million for increases in general and administrative costs
	====================================
Dec6midwk	CABG Medical (CABG)	CABG, 1-Star, C
	artificial coronary graft system					Post-IPO: 15.8 mm shrs
	Minneapolis, MN	2001	2002	2003	Sept 9 mos	IPO Mkt
	Revenue (mm) ($)	none	none	none	none	Cap (mm)
	R&D	$0.7	$0.6	$1.2	$1.6	$87
	Income (loss) ($)	-$0.7	-$0.7	-$1.5	-$2.2	@$11
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Dec6midwk	CABG Med (CABG)	87	n/a	-30	3.0	3.0	35%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	0	2	6
	Business
	. Developmental stage medical technology company seeking to improve the treatment of coronary
	heart disease, or CHD, by advancing conventional bypass surgery.
	. Created an artificial coronary graft system "Holly Graft System
	. The Holly Graft System has not yet received regulatory approval for sale anywhere in the world
	and will not be commercially available for several years, if ever.
	Trials
	. CABG has conducted a limited number of preclinical animal tests of the Holly Graft System and
	expects to complete the first human implant of the Holly Graft System in the fourth quarter of '04
	. CABG expects to continue implant efforts in Australia and to commence human clinical trials in
	Europe in 2005.
	Employees
	. CABG has eight full-time employees and is led by a team of experienced medical technology
	industry executives and recognized experts in cardiac surgery and cardiovascular research.
	. CABG intends to add employees following this offering.
	. Manny Villafaña, Chairman and Chief Executive Officer, has previously introduced innovative
	cardiac surgery products such as pacemakers and heart valves throughout the world and founded
	companies such as Cardiac Pacemakers, Inc. (now Guidant Corporation), St. Jude Medical, Inc.
	and ATS Medical, Inc.
	The need
	. Today’s coronary bypass procedure typically requires two surgeries: one to harvest either or both
	of the principal superficial veins in the leg, or saphenous veins, or radial arteries from the arms,
	and a second to implant the harvested vessels as grafts.
	. The harvesting of vessels increases the risk of infection, pain, swelling caused by a buildup of
	watery fluid in the cellular tissue, or edema, and other adverse complications, while adding time,
	cost and complexity to the bypass procedure. Unsightly scarring of legs or arms remains a lifelong
	legacy of vessel harvesting.
	. According to the study: "Endoscopic Versus Open Saphenous Vein Harvest: A Comparison of
	Postoperative Wound Complications" published in 2002 by the Annals of Thoracic Surgery,
	approximately twenty percent of such patients experience some type of complication as a result of
	a traditional saphenous vein harvesting. Patients who are obese, diabetic or both are particularly at
	risk for such complications.
	. While surgical techniques such as endoscopic vein harvesting can reduce the number of
	complications to approximately four percent, these techniques do not eliminate the need for
	harvesting vessels, nor do they eliminate resulting complications. A significant portion of patients
	suffering such complications require rehospitalization, the costs of which typically must be
	absorbed by the hospitals and payors.
	. In addition, the saphenous vein harvesting approach assumes the availability of suitable vessels
	from the patient, which is often not the case, particularly in the elderly or in patients suffering
	from diabetes, obesity or other forms of cardiovascular disease.
	Market
	. CABG's technology is intended to obviate the need for vessel harvesting surgery.
	. The American Heart Association, or AHA, reports that in the United States alone during 2001,
	over 300,000 patients had bypass surgery largely requiring saphenous vein grafts, or SVGs.
	. CABG estimates the market for the rest of the world to be roughly equal in size to that of the
	United States.
	. Over the last several years, the total number of patients undergoing bypass surgery has decreased
	as a result of new, less invasive therapies such as pharmacotherapy, angioplasty and stenting.
	. Any future decline in the total number of patients undergoing bypass surgery could decrease
	CABG's potential market both prior to and after commercialization.
	CABG's solution
	. Numerous efforts to develop an artificial coronary graft using materials that mimic the natural
	structure of the coronary artery have been attempted, including porcine conduit, tissue engineered
	grafts and grafts made from synthetic materials.
	. Thus far, none have been approved by the United States Food and Drug Administration, or FDA.
	CABG believes previous artificial grafts were primarily focused on ascertaining the appropriate
	tissue or materials on which to base the graft, rather than the mechanics of blood flow and the
	corresponding influence on graft patency (openness).
	. CABG believes artificial graft work and continuous high blood flow and pressure, coupled with
	drug combinations, are the critical elements necessary to adequately limit or obviate clotting and
	tissue formation in an artificial graft system, each of which can adversely impact vessel patency.
	. CABG expects that its Holly Graft System will provide cardiac surgeons with a new technology
	that will be differentiated and innovative in the worldwide market for coronary artery bypass
	grafting, or CABG, procedures.
	Animal tests
	. Based on the animal tests CABG has performed to date, CABG believes the Holly Graft System
	should be at least as effective as the traditional SVG procedure in restoring blood circulation in
	coronary arteries without the negative side effects of saphenous vein harvesting.
	. In terms of maintaining graft patency, CABG's system delivers critical continuous high blood
	flow from the aorta to the target vessel, thereby diminishing the greater susceptibility of clotting
	and tissue formation associated with low flow situations.
	. Typically, harvested vessels are low flow due to the termination of flow at the target vessel.
	. The Holly Graft System is able to maintain continuous high flow and pressure because of the
	following characteristics:
	• Larger Diameter: Our graft consists of a 6 mm diameter conduit compared to the typical 2-3 mm
	harvested conduit. The increase in size allows for increased flow.
	• Healthier Conduits: The Holly Graft System provides surgeons with a plaque free, consistent
	and reliable source of conduit for grafts, which are free from disease. Patients suffering from CHD
	commonly have a build up of fatty deposits inside the arterial walls, or atherosclerosis, or other
	conditions causing marginal quality vessels (particularly those individuals with obese and diabetic
	conditions) that immediately threaten the patency of harvested SVGs and other vessels.
	Note: saphenous vein grafts (SVGs)
	• Flow Limiter: The Holly Graft System utilizes a flow limiter which maintains pressure within
	the graft and creates pressure to feed the target coronary artery through the system’s vessel
	connectors.
	• Drug Combinations: The vessel connectors used in the Holly Graft System are coated with the
	same drug combination that is used on certain prominent drug-eluting stents. In our animal trials,
	these drug combinations prevented the buildup of tissue proximate to the grafting site, which can
	result in post-operative obstructions or closures of vessels, or occlusions, in the same manner in
	which the combination prevents the recurrence of a blockage, or restenosis, in stenting procedures.
	Accordingly, we believe that these drug combinations will limit the risk of an interruption of the
	Holly Graft System. Obtaining a license to such a drug combination is critical to the
	commercialization of the Holly Graft System.
	Physician Preference
	. Assuming CABG's clinical studies prove that the Holly Graft System is as effective as SVGs,
	CABG believes many cardiac surgeons will readily accept and utilize the Holly Graft System in
	order to reduce operating time and avoid the patient discomfort, scarring and frequent
	complications associated with the surgery to remove the saphenous vein.
	. Although endoscopic harvesting procedures can reduce the complication rate associated with
	saphenous vein harvesting, the training required to learn the technique is significant and
	proficiency is generally not obtained until a physician performs the procedure on numerous
	patients.
	. To the best of CABG's knowledge, no statistics on the usage of endoscopic procedures are
	available, but due to above-mentioned factors, CABG believes that the preponderance of
	saphenous vein harvesting is performed by the traditional "open procedure" and that the majority
	of endoscopic procedures are performed at large heart centers that perform a significant number of
	bypass procedures each year. Additionally, endoscopic procedures still (i) require a second
	surgery; (ii) result in scarring; and (iii) only reduce the incidence of, but do not eliminate
	complications associated with saphenous vein harvesting.
	Patents
	. CABG has obtained two United States patents, applied for four additional United States patents
	on various aspects of the Holly Graft System, and is seeking licenses for other aspects
	. Has filed foreign applications in the European Union, Japan, China, Australia, Brazil, Canada,
	Argentina and Hong Kong.
	Competition
	. Medtronic, Inc., Guidant Corporation, St. Jude Medical, Inc., Thoratec Corporation and Edwards
	Lifesciences Corporation, are working on products similar to CABG's artificial coronary graft as
	well as other competing products or therapies, including stenting, angioplasty and
	pharmacological therapies.
	. CAGB currently faces direct competition from CardioTech International, Inc., a company that is
	in human clinical trials evaluating an artificial coronary bypass graft
	Use of $26.7mm in IPO proceeds from sale of 5.5mm shares
	• 20% to fund our clinical trials;
	• 15% to fund our investigation of drug combination and coating technologies;
	• 35% to develop our sales and marketing capabilities, promote pre- and post-commercialization
	physician education and awareness, and create product marketing programs, an international
	distribution network and a domestic sales team; and
	• 30% for general corporate purposes, including working capital needs, facilities expansion and
	potential acquisitions.
	=====================================
Dec 8	OccuLogix (RHEO)	RHEO, 2-Stars, C
	innovative treatments for eye diseases					Post-IPO:41.76mm shrs
	Mississauga, Ontario CA		2002	2003	Sept 9 mos	IPO Mkt
	Revenue (mm) ($)		$0.1	$0.5	$0.5	Cap (mm)
	Gross margin %		72.2%	26.5%	31.6%	$376
	Operating Income %		6.4%	6.4%	11.7%	@$9
	Income (loss) ($)	-$4.0	-$2.9	-$19.7	-$4.5
	Income (loss) (%)		-4833.3%	-4053.5%	-993.4%
	2003 results includes $15.9mm of stock option expense
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Dec 8	OccuLogix (RHEO)	376	622.3	63	1.7	8.0	20%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	0	2	6
	Business
	. Ophthalmic therapeutic company founded to commercialize innovative treatments for eye
	diseases, including age-related macular degeneration, or AMD.
	. AMD is the leading cause of late onset visual impairment and legal blindness in people over the
	age of 50 in the United States and other Western industrialized societies.
	Market potential
	. RHEO believes that 15 million people in the United States suffer from AMD.
	. According to a ten-year study published in Ophthalmology in October 2002, the prevalence of
	AMD among a select sample of U.S. residents increased sharply with age, from 28.2% among
	people 65 to 74 years of age to 46.2% among people 75 years and older.
	. A study by Duke University published in 2003 reported that the prevalence of AMD among a
	selected sample of U.S. residents aged 65 and older was 27% in 1999.
	. According to the U.S. Census Bureau, the number of people in the United States aged 50 or older
	is 80 million and is expected to increase by 40% over the next two decades.
	. RHEO expects that this increase in the number of elderly people will result in a significant
	increase in the number of cases of AMD in the United States.
	Market Opportunity
	. RHEO believes that Dry AMD, the most common form of the disease, afflicts 13.0 to 13.5
	million people in the United States, representing 85% to 90% of all AMD cases.
	. Although the exact cause of AMD is not known, researchers have identified several factors that
	are associated with AMD, including poor microcirculation and the gradual build-up of cellular
	waste material in the retina.
	. RHEO believes that a treatment that improves microcirculation in the retina can help to enhance
	the metabolic efficiency of the retina and the removal of waste material and thereby aid in the
	treatment of Dry AMD.
	. RHEO believes there is a significant market opportunity for such a treatment.
	Overview of AMD
	. AMD is a chronic, progressive disease of the macula, or the central part of the retina, that results
	in the loss of central vision, and cannot be corrected by refractive means, such as glasses, contact
	lenses or laser eye surgery.
	. Dry AMD is characterized by a gradual decrease of visual acuity, pigment abnormalities on the
	macula and the build-up of protein and lipid deposits, called drusen.
	. This build-up of drusen affects the microcirculation in the eye. Research suggests that the retinal
	cells, overwhelmed by the lack of oxygen and nutrients and the build-up of debris, enter into a
	dysfunctional state.
	. Without treatment, the retinal cells ultimately die and do not regenerate, leading to irreversible
	vision loss either through the progression of Dry AMD or conversion into Wet AMD, the other
	form of the disease.
	No current cure for Wet AMD
	. Retinal specialists may treat the symptoms of Wet AMD using one of a very few FDA-approved
	therapies currently available, including thermal laser treatment and photodynamic therapy.
	. There are currently more than 30 therapies being evaluated in U.S. clinical studies for the
	treatment of Wet AMD.
	. These treatments may slow the progression of the disease, but do not prevent the reoccurrence of
	abnormal blood vessel growth and do not restore lost vision.
	. The only currently accepted treatment option for persons with advanced cases of Dry AMD is to
	take over-the-counter vitamins, antioxidants and zinc supplements which can reduce, but do not
	eliminate, the risk of conversion to Wet AMD.
	. According to the Age Related Eye Disease Report, or AREDS Report, No. 11, vitamins,
	antioxidants and zinc supplements only reduce the five-year risk of conversion into Wet AMD by
	up to 25% for Category 3 and Category 4, intermediate-to-late stage, Dry AMD cases. Regardless
	of the supplement treatments, Dry AMD may ultimately lead to irreversible vision loss, whether or
	not it converts into Wet AMD.
	Product
	. RHEO's product, the RHEO System, is designed to improve microcirculation in the eye by
	filtering high molecular weight proteins and other macromolecules from the patient’s plasma.
	. The RHEO System is used to perform Rheopheresis, which we refer to under our trade name
	RHEO Therapy. Rheopheresis is a blood filtration process that selectively removes molecules
	from plasma.
	. The RHEO System consists of the OctoNova pump and a disposable treatment set, containing
	two filters, through which the patient’s blood circulates. We believe that the RHEO System is the
	only Dry AMD treatment to target what we believe to be the underlying cause of AMD rather than
	its symptoms and that, based on preliminary data, appears to demonstrate improved vision in some
	patients.
	RHEO Solution
	. The RHEO System, which consists of a pump and a disposable treatment set, containing two
	filters, is designed to filter high molecular weight proteins and other macromolecules from the
	patient’s plasma and improve microcirculatory function.
	. The RHEO System pumps blood from a large vein in one arm and circulates the blood through a
	filtration system that separates the whole blood from the plasma.
	. The patient’s plasma is filtered to remove high molecular weight proteins and other
	macromolecules.
	. The filtered plasma is then remixed with the whole blood and returned to the patient
	intravenously through the other arm. RHEO's believes that blood filtered with the RHEO System
	is able to flow more easily through the tiny capillaries of the eye and that the resulting improved
	microcirculation more effectively supplies the macular cells with oxygen and nutrients, facilitating
	removal of cellular waste materials
	North American & Caribbean rights
	. RHEO has exclusive rights to commercialize the RHEO System for ophthalmic uses in North
	America and the Caribbean.
	RHEO does not have rights to commercialize the RHEO System in Europe
	Related party
	. RHEO's primary customer is RHEO Clinic Inc., a subsidiary of TLC Vision
	Relationship with TLC Vision
	. TLC Vision, after this offering, will beneficially own 52.2% of RHEO outstanding common
	stock, or 48.9% on a fully diluted basis.
	. Elias Vamvakas, the Chairman and former CEO of TLC Vision, became RHEO's Chairman in
	2003 and is now also RHEO's CEO
	Commercialization
	. In 2003, began limited commercialization of the RHEO System in three clinics in Canada.
	. In September 2004, signed an agreement with Rheo Therapeutics Inc., a private Canadian
	company, which has agreed to purchase 8,000 treatment sets, and an estimated 20 OctoNova
	pumps by the end of 2005, with an option to purchase up to an additional 2,000 treatment sets,
	subject to availability.
	. RHEO believes that Rheo Therapeutics plans to open a number of commercial treatment centers
	in various Canadian cities where RHEO Therapy will be performed
	FDA
	. The RHEO System is a class III device and will require approval of a PMA, which has not yet
	been submitted to the FDA
	Clinical trial
	. RHEO is currently conducting a pivotal clinical trial, called MIRA-1, which, if successful, is
	expected to support RHEO's application with the U.S. Food and Drug Administration, or FDA,
	to obtain approval to market the RHEO System in the United States
	Patents and Proprietary Rights
	. There is currently no FDA-approved therapy for Dry AMD and, to date, RHEO is not aware of
	any other treatment in clinical development in North America.
	. One aspect of the RHEO System is a treatment method described in an issued U.S. patent which
	expires in 2017. This patent, issued under U.S. patent number 6,245,038 and entitled "Method of
	Treatment of Ophthalmological Diseases," is directed to a process for treating ocular diseases
	using apheresis. RHEO licenses this patent from the two co-owners of the patent under a separate
	license agreement with each owner. Under the license agreements, RHEO has the exclusive right
	to use the claimed treatment method in the U.S. during the term of the patent. As part of those
	agreements RHEO is required to make royalty payments in the aggregate of 2% of the sales for the
	OctoNova pumps and filters, subject to minimum required payments in the aggregate amount of
	$25,000 during each calendar quarter.
	. In addition, RHEO owns one issued patent in the United States, which expires in 2019. This
	patent, issued under U.S. patent number 6,551,266 and entitled "Rheological Treatment Methods,"
	is directed to methods of screening and identifying patient candidates for RHEO Therapy.
	. RHEO also has three additional pending patent applications in the United States, Europe and
	Japan relating to the 6,551,266 patent.
	Competition
	. RHEO specifically targets those afflicted with Dry AMD.
	. While RHEO is aware that a number of companies have developed or are in the process of
	developing treatments for Wet AMD, including Eyetech Pharmaceuticals, Inc./ Pfizer Inc.,
	Genentech, Inc./ Novartis Ophthalmics, Alcon Laboratories, Inc., Iridex Corporation, QLT Inc.
	and Gen Vec, Inc.,
	. RHEO is not aware of any companies developing treatments specifically for Dry AMD
	. However, some of these companies may develop new treatments for Dry AMD or may develop
	modifications to their treatments for Wet AMD that may be effective for Dry AMD as well
	. While there are other suppliers who manufacture a pump that could be used in the RHEO
	System, there are no other suppliers of Asahi’s Rheofilter and consequently RHEO believes that a
	third party could not readily make a system similar to the RHEO System.
	. Furthermore, if a third party were to be successful in making a system similar to the RHEO
	System, it would be required to have that system approved for marketing in the United States by
	the FDA.
	Use of $44.8mm in IPO proceeds from sale of 5.6mm shares
	(selling shareholders intend to offer 2.8mm shares)
	. $5.3 to $6.6mm to complete our MIRA-1 trial, a related crossover trial and additional anticipated
	clinical trials and complete the FDA approval process.
	. $17.5mm to $18.8mm to build our infrastructure, including distribution, sales and marketing, and
	to facilitate the commercialization of the RHEO System if and when FDA approval is received
	. RHEO estimates that infrastructure growth will result in increased employee related costs of
	$11.0 million to $11.5 million, with related travel and administrative costs of $4.7 million to $5.0
	million
	. $9.5mm to $10.5mm to purchase and accumulate inventory of components of the RHEO System
	to facilitate rapid commercialization in the United States if and when FDA approval is received
	===================================
Dec 9	SYMMETRY Medical	SMA, 2-Stars, C+
	implants, elated instruments & cases for orthopedic device manufacturers.					Post-IPO: 32.8mm shrs
	Warsaw, Indiana	2001	2002	2003	Sept 9 mos	IPO Mkt
	Revenue (mm) ($)	$66.5	$65.4	$158.4	$153.1	Cap (mm)
	Gross margin %	27.5%	26.8%	29.0%	29.2%	$459
	Operating Income %	11.7%	12.4%	14.2%	18.1%	@$14
	Income (loss) ($)	$5.0	$5.0	$5.0	$11.0
	Income (loss) (%)	7.5%	7.6%	3.2%	7.2%
	2003 and Sept 9 months are proforma and include the Mettis acquisition (see below)
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Dec 9	SYMMETRY Md SMA	459	2.2	31	2.5	11.0	24%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	2	2	8
	Business
	. The world’s largest independent provider of implants and related instruments and cases
	to orthopedic device manufacturers
	. Orthopedic devices principally consist of reconstructive implants used to replace or repair knees,
	hips, shoulders and other joints, as well as other orthopedic devices to repair bone fractures and
	the spine.
	Market Opportunity
	. The global medical device market was estimated to be approximately $207 billion in 2003.
	. The orthopedic device segment of the medical device market was estimated to be approximately
	$16 billion in 2003, and is expected to grow approximately 12% annually to greater than $25
	billion by 2007.
	. There were approximately 1.5 million reconstructive orthopedic implant procedures performed
	globally in 2003, an increase of 13% over the previous year.
	Market growth drivers
	. Growing elderly population; aging,
	. Affluent and active "baby boomers";
	. Improving technologies that expand the market, including minimally invasive surgery;
	. Developing international markets.
	Mettis acquisition
	. SMA acquired Mettis on June 11, 2003 for $164mm
	. Mettis is a leading manufacturer of forged, cast and machined implants for global orthopedic
	device manufacturers. This acquisition added implants to our product offerings and increased
	SMA's European presence.
	. SMA now offers a comprehensive line of implants, surgical instruments and cases for orthopedic
	device manufacturers on a global basis
	Customers
	. During fiscal 2003, SMA sold to 500 customers, including 72 new customers.
	. Four largest customers accounted for 22.6%, 15.2%, 14.7% and 10.3% of revenue in the nine
	months ended October 2, 2004
	. Three largest customers accounted for 19.5%, 14.7% and 10.5% of revenue in fiscal 2003.
	. Ten largest customers collectively accounted for 77.7% and 68.3% of revenue in the nine months
	ended October 2, 2004 and fiscal 2003, respectively.
	. 67.6%, 12.5% and 19.9% of revenue in the nine months ended October 2, 2004 was from sales to
	customers in the United States, United Kingdom and other foreign countries, respectively.
	. Customer base includes Biomet Inc., DePuy Inc., Kyocera Corporation, Medtronic Sofamor
	Danek, Smith & Nephew plc, Stryker Corporation, Synthes, Inc. and Zimmer Holdings, Inc.
	Competition
	. SMA believes one or more of its customers may seek to expand their development and
	manufacturing operations which may reduce their reliance on independent suppliers such
	as SMA
	. SMA is not aware of any medical device manufacturers who currently sell products
	similar to the ones SMA produces to third parties
	. SMA believes that it is the only independent supplier to offer a complete implant,
	instrument and case solution to orthopedic device manufacturers.
	. The majority of the competition are privately owned and produce some, but not all, of the
	products required in orthopedic implant systems.
	Olympus Partners -- controlling shareholder
	. Olympus Partners, a private asset management firm headquartered in Stamford, CT Connecticut,
	with assets under management of approximately $1.7 billion. Through its . Prior to the offering,
	the Olympus funds beneficially owned an aggregate of 82.1% of SMA's our common stock
	Use of $97.7mm in IPO proceeds
	. $36.4 to repay all of existing subordinated indebtedness, of which $8.0 million is held by
	the Olympus funds (the majority owner)
	. $45 million to repay a portion of existing senior indebtedness.
	. $16.2 million to repurchase a portion of outstanding preferred stock and preferred stock
	warrants, 92% of which are held by SMA's affiliates
	===================================
	VNUS Medical	VNUS, 2-Stars, C+
	medical devices for minimally invasive treatment of venous reflux disease
	San Jose, CA	2001	2002	2003	June 6mos	IPO Mkt	Price /
	Revenue (mm) ($)	$5.6	$10.0	$21.8	$16.9	Cap (mm)	Sales
	Gross Margin %	41%	64%	72%	76%	$192
	Sales & Marketing %	101%	77%	55%	44%	@$14
	Income (loss) ($)	-$8.5	-$6.0	-$2.6	$0.9
	Income (loss) %	-152%	-60%	-12%	5%
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Oct 20	VNUS Medical (VNUS)	192	5.6	112	3.4	3.4	35%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	2	1	7
	Business
	. Medical devices for the minimally invasive treatment of venous reflux disease.
	. Venous reflux disease, a progressive condition caused by incompetent vein valves, is
	characterized by the poor return of blood from the legs to the heart.
	. This results in symptoms that significantly impact quality of life such as leg pain, swelling,
	Recently profitable
	. In the last quarter of 2003 and each of the first two quarters of 2004 VNUS was profitable.
	. In the first six months of 2004, VNUS shipped products to 549 customers in the United States
	compared to 328 customers during the same period in 2003
	Products
	. The Closure system, which consists of a proprietary radio-frequency, or RF, generator and
	proprietary disposable endovenous catheters
	. Which close diseased veins through the application of temperature-controlled RF energy.
	. Product line: disposable catheters, RF generators and accessories
	. % of 2004 six month sales: disposable catheters 75%; RF generators 21%; accessories 4%
	Note: notice the high percentage of recurring revenue from disposables.
	Benefits
	. VNUS's Closure system provides the benefits of a minimally invasive procedure, with short
	recovery time and minimal post-operative pain
	. In a randomized clinical trial was established to be as effective as vein stripping, with fewer side
	effects and faster recovery.
	. Vein stripping is an open surgical procedure that has historically been the standard of care for
	venous reflux disease.
	Marketing & patients
	. The Closure system is marketed in the United States through VNUS's direct sales organization of
	44 people
	. The Closure procedure is accepted by the policies of 95 health insurers, representing over 200
	million covered lives in the United States.
	. VNUS estimates that in excess of 60,000 patients have been treated using the Closure system
	since 1999
	. With 18,000 of those patients treated in the first half of 2004.
	Market and Current Treatments
	. Published population studies indicate that 25 million people in the United States and 40 million
	people in Western Europe suffer from symptomatic venous reflux disease and experience painful
	symptoms.
	. Due to the pain and discomfort of the condition, venous reflux disease can be disabling and have
	a significant impact on quality of life by disrupting physical, social and professional activities.
	. VNUS commissioned a study that estimated that 1.2 million people in the United States with
	symptomatic venous reflux disease seek treatment each year, of which over 800,000 exhibit
	saphenous vein reflux and the attendant symptoms.
	. VNUS believes these 800,000 patients are eligible for treatment with the Closure system
	. As more people become aware of minimally invasive alternatives to vein stripping, VNUS
	believes a larger percentage of the 25 million symptomatic patients in the United States will seek
	therapy.
	Alternatives to vein stripping
	. Closure procedure and endovenous laser ablation, or EVL, have been developed as alternatives to
	vein stripping.
	. EVL is a medical procedure in which an optical fiber is inserted into the treated vein to deliver
	laser energy to boil blood, damage the vein and create a clot that occludes the length of the treated
	vein.
	. Currently marketed EVL technologies do not provide physicians feedback on the heat energy
	delivered during the procedure and, as a result, therapy is difficult to control and can cause vein
	perforation, bruising and pain.
	. VNUS believes that its Closure system results in less bruising and skin discoloration than vein
	stripping or EVL. Also, because the Closure procedure is catheter-based, it results in little or no
	scarring compared to vein stripping.
	Customers
	. Diverse customer base of hospitals, physicians and physician groups, with no customers
	accounting for 10% or more of net revenues in the years ended December 31, 2001, 2002 and
	'2003 or the first six months of 2004.
	. VNUS customers are reimbursed by governmental and third-party payors, and that
	reimbursement is subject to periodic review and adjustment.
	Patents and Proprietary Technology
	In the United States, as of September 15, 2004, VNUS had 29 issued patents and 15 pending
	patent applications
	. Many of which relate to the Closure system and procedure, including, among other things, vein
	shrinkage and occlusion using various forms of energy, including RF; self expanding and
	collapsing electrodes; and use of single and double electrode array devices.
	. Fourteen of the issued patents relate to devices or devices with methods and 15 relate to methods.
	. Issued patents related to the Closure system and procedure will expire between 2016 and 2018
	. Internationally, as of September 15, 2004, VNUS has 8 foreign patents providing protection in
	Australia, New Zealand, Singapore, Russia, China and Europe.
	. In addition, VNUS has 29 pending foreign patent applications, many of which relate to the
	Closure technology. There are applications pending in Europe, Japan, Australia, Canada, New
	Zealand, Singapore, Russia and other countries.
	Competition
	. Principally competes against vein stripping procedures, as well as companies that have
	commercialized and sell EVL (endovenous laser ablation) systems.
	. Sclerotherapy and phlebectomy procedures that treat varicose veins at the surface of the skin are
	complementary to the Closure procedure because they do not treat saphenous vein reflux and may
	be used in conjunction with the Closure system.
	. Vein stripping and ligation surgery has historically been the standard of care to address venous
	reflux disease. This procedure is well established among physicians who treat venous reflux
	disease, has extensive long-term data, is routinely taught to new surgeons and has remained
	relatively unchanged for the past 50 years.
	EVL (endovenous laser ablation) competitors
	. Competitors that have developed and market EVL systems include AngioDynamics, Inc., biolitec
	AG, Diomed Holdings, Inc., Dornier MedTech GmbH and Vascular Solutions, Inc.
	. These competitors’ EVL systems use laser energy to occlude diseased veins by clotting the blood
	in the vein.
	Use of $41.4mm in IPO proceeds from sale of 3.3mm shares
	(shareholders plan to sell 1.4mm shares)
	• $10.0 million for sales and marketing activities;
	• $6.0 million for clinical research and product development; and
	• Remainder for working capital and other general corporate purposes
	===================================
	CoTherix (CTRX)	CTRX, 1-star, C
	biopharmaceutical: therapeutics for life threatening diseases.
	So San Francisco, CA	2001	2002	2003	June 6 mos	IPO Mkt	Price /
	Grant Revenue	0.0	0.0	0.2	none	Cap (mm)	Sales
	R&D	2.3	3.4	2.8	8.5	$176
	Income (loss)	-2.9	-4.7	-12.6	-17.7	@$9	n/a
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Oct 14	CoTherix (CTRX)	176	n/a	-5	2.4	2.4	26%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	0	2	6
	Business
	. CTRX are a biopharmaceutical company focused on licensing, developing and commercializing
	therapeutic products
	. For the treatment of cardiopulmonary and other chronic diseases.
	Lead product
	. Ventavis, CTRX lead product candidate, is an inhaled formulation of iloprost. Iloprost is a
	synthetic compound that is structurally similar to prostacyclins, which are naturally-occurring
	molecules that cause blood vessels to dilate.
	. CTRX is developing Ventavis for the treatment of pulmonary arterial hypertension, or PAH, a
	highly debilitating disease characterized by severe constriction of the blood vessels of the lungs
	which leads to very high pulmonary arterial pressure.
	Schering AG License and Manufacturing Agreements
	. On October 2, 2003, CTRX entered into a development and license agreement with Schering
	AG.
	. This agreement grants us the exclusive right to develop and commercialize Ventavis in the U.S.
	for inhaled use for the treatment of pulmonary hypertension.
	. CTRX is obligated to use its best efforts to develop Ventavis in accordance with a mutually
	agreed upon development plan and to commercialize Ventavis in the U.S.
	Sales and Marketing
	. CTRX is currently building CTRX sales and marketing organization.
	. CTRX's plan is to develop CTRX own U.S. sales force and marketing infrastructure to
	commercialize Ventavis and other products that CTRX develop in the future.
	Competition
	CTRX face significant competition from pharmaceutical and biotechnology companies that are
	researching and developing products designed to treat cardiopulmonary and other chronic
	diseases.
	Use of $39mm in IPO proceeds
	. Up to $15.0 million to fund the commercialization of Ventavis, including establishing field-based
	clinical, physician education, and commercial capabilities and distribution arrangements to launch
	Ventavis;
	. Up to $8.0 million to fund clinical trials for Ventavis; and
	. $9.0 million milestone payment due to Schering AG under CTRX current licensing agreement
	upon NDA approval for Ventavis.
	===================================
	IntraLase	ILSE, 2-Stars, B-
	laser technology for the first step of LASIK surgery
	Irvine, CA	2001	2002	2003	June 6mos	IPO Mkt	Price /
	Revenue (mm) ($)	$1.8	$18.1	$25.4	$25.3	Cap (mm)	Sales
	Gross Margin %	3%	27%	33%	40%	$305
	Income (loss) ($)	-$15.7	-$11.9	-$11.9	-$4.0	@$12	6.0
	Income (loss) %	-872%	-66%	-47%	-16%
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Oct 7	IntraLase (ILSE)	305	6.0	-38	3.5	3.5	26%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	2	2	8
	Classic razor-razor blade (per procedure disposable) business model
	Business
	. Leading laser technology for the first step of LASIK surgery, the most common means of
	surgical vision correction.
	. Designs, developes and markets a laser, related software and disposable devices used
	to create a cut of tissue across the cornea of a patient's eye, or a corneal flap
	. The first step in LASIK surgery.
	Company vision
	. To replace the mechanical, metal-bladed microkeratome with the INTRALASE® FS
	laser in LASIK surgery practices.
	. Target the most active LASIK surgery practices in the United States and in key
	international markets to buy or lease the INTRALASE® FS laser
	. Generate repeat revenues from the sale of per procedure disposable patient interface.
	Benefits
	. ISLE's advanced laser technology improves the safety, precision and visual acuity of
	LASIK surgery by providing a computer-controlled laser solution as an alternative
	. To the traditional method of creating the corneal flap using a hand-held mechanical,
	metal-bladed device called a microkeratome.
	. ISLE believes its product offering will become the new standard of care for corneal flap
	creation.
	Market Opportunity
	. Vision correction represents one of the largest medical markets in the United States
	. According to Market Scope, LLC, an independent source of market information on the
	surgical vision correction market, of the 156.5 million people in the United States who
	require vision correction, approximately 55.5 million people, or 111 million eyes, are
	eligible for surgical vision correction and have not yet been treated.
	. According to Market Scope, LASIK surgery represents 88% of all U.S. surgical vision
	corrections, with a total U.S. annual market size of approximately $2.4 billion in 2004
	. This market is currently under-penetrated, with less than 7% of all eligible patients
	opting for LASIK surgery instead of conventional solutions such as eyeglasses or contact
	lenses.
	. Industry analysts expect the growth rate in LASIK procedures in 2004 to be
	approximately 12% in the United States and 10% internationally, with volume outside the
	United States concentrated in Europe and the Asia-Pacific region.
	Target markets
	According to Market Scope, there are approximately 4,100 LASIK surgery practices
	worldwide.
	. Of these surgery practices, ISLE's target customers are the 1,400 most active LASIK
	surgery practices in the United States and in key international markets, which perform
	over 50 LASIK procedures per month.
	. As of June 30, 2004, approximately 150 of these 1,400 LASIK surgery practices were
	IntraLase customers
	. Of the total number of U.S. LASIK procedures performed in the three months ended
	June 30, 2004, 14% were performed using ISLE's product offering to create the corneal
	flap.
	. ISLE believes the other approximately 86% of total procedures performed in this time
	period were performed using the traditional microkeratome (see competition, below)
	Products
	Introduced into the U.S. market in late 2001
	INTRALASE® FS laser
	Patent-protected laser is an ultra-fast laser, generating ten thousand pulses per second
	to create a precise surgical incision below the surface of the cornea to create the corneal
	flap.
	IntraLASIK® software.
	Proprietary software directs the laser to create the corneal flap based on each patient's
	surgical parameters.
	Disposable patient interface
	Patent-protected disposable patient interface is required for each eye treated and serves
	as an interface between ISLE's laser and the patient's eye.
	Revenue sources
	. Primarily from the sale or lease of INTRALASE® FS laser and
	. The sale of per procedure disposable patient interface
	. 98% of equipment is sold
	Installed base
	. As of June 30, 2004, ISLE had sold or leased 123 lasers in the United States
	. 30 outside the United States, primarily in the Asia-Pacific region, Europe and the Middle
	East.
	Seasonality
	. Lasers. Sales and leases of our lasers seasonal.
	. The second and fourth calendar quarters are typically stronger than the first and third
	calendar quarters.
	Six month revenue increase
	. Revenue increase attributable to continued market acceptance of product offerings and
	expansion into international markets, primarily in the Asia-Pacific region, Europe and the
	Middle East, which ISLE began in the second half of 2003.
	Laser equipment increase
	. During the six months ended June 30, 2004, ISLE sold or leased 47 lasers and
	generated $13.1 million in revenues
	During the six months ended June 30, 2003, ISLE sold or leased 27 lasers and
	generated $4.5 million in revenues.
	Per procedure disposable sales increase
	. During the six months ended June 30, 2004, ISLE sold 89,516 per procedure
	disposable patient interfaces and generated $10.3 million in revenues
	. Up from 34,694 per procedure disposable patient interfaces for the six months ended
	June 30, 2003, which generated $3.7mm in revenue
	. Increase is attributable to an increased installed base of lasers
	. ISLE entered the six month period ended June 30, 2004 with approximately 2.5 times
	the installed base of lasers as compared to the same period in 2003.
	. ISLE expects sales of per procedure disposable patient interfaces to continue to
	increase as the installed base of lasers increases.
	Competition Creating the Corneal Flap
	Microkeratome companies
	. Bausch & Lomb, with approximately half of the U.S. microkeratome and blade market
	. Moria/Microtech, the second largest supplier of microkeratomes and blades in the U.S.
	market, Advanced Medical Optics and Nidek.
	. ILSE believes that these microkeratome manufacturers will continue to enhance and
	further develop microkeratomes to improve performance and accuracy to compete with
	ISLE's laser.
	. Microkeratomes are less expensive than ISLE's laser, although surgeons typically need
	to purchase more than one microkeratome machine because the machine must be
	serviced at the manufacturer's location.
	. In addition, competitors may offer microkeratome systems at a lower price, may in the
	future price their microkeratome systems as part of a bundle of products or services,
	including the excimer laser used in the second step of LASIK surgery, or may enhance or
	further develop products to improve performance and accuracy of their existing product to
	compete against ISLE
	Competition Against LASIK
	. Because ILSE's technology is used in the first step of the LASIK surgery, ISLE also
	competes against other vision correction technologies that bypass the need for the
	creation of the corneal flap.
	. LASIK competes with other treatments such as eyeglasses, contact lenses and other
	surgical techniques.
	. Such techniques include corneal inlays and epithelial flaps, which are currently in the
	early stages of development and do not have a significant presence in the market.
	Use of $68mm in IPO proceeds
	. $1.5 million repay amounts owed under ISLE's equipment advance facility.
	. $765,000 for the second installment of the purchase price to be paid to the University of
	Michigan for the purchase of a fully paid, royalty free, irrevocable and worldwide license
	from the University of Michigan
	. Balance of the net proceeds to support continued growth
	====================================
	Theravance (THRX)	THRX, 2-Stars, C
	biopharmaceutical company
	S. San Francisco, CA	2001	2002	2003	June 6mos	IPO Mkt	Price /
	3rd party rev ($mm)	none	$0.2	$3.6	$3.6	Cap (mm)	Sales
	R&D ($mm)	54	67	62	39	$583
	Income (loss) ($)	-$64.9	-$79.2	-$70.6	-$51.2	@$14	81.0
	Income (loss) %	#VALUE!	-50769%	-1961%	-1438%
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Sept 28	Theravance (THRX)	583	81.0	-6	2.9	3.6	12%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	0	2	6
	Business
	. Biopharmaceutical company with a pipeline of product candidates that THRX
	discovered and expect to develop in collaboration with partners or on THRX's own.
	. In seven years of operation, four product candidates discovered by THRX have
	advanced into clinical trials, two of which are currently in Phase 2.
	. THRX has seven additional product candidates discovered by THRX in preclinical
	studies.
	Relationship with GlaxoSmithKline
	2002 Collaboration
	. In November 2002, THRX entered into a long-acting beta2 agonist (LABA) collaboration
	agreement with GlaxoSmithKline (GSK) to develop and commercialize product
	candidates for the treatment of asthma and chronic obstructive pulmonary disease
	(COPD).
	. LABAs are medicines that work by relaxing the muscles that line the airways, allowing
	the airways to expand and leading to relief and/or prevention of many of the symptoms of
	asthma and COPD.
	. These LABA product candidates are intended to be administered via inhalation once
	daily both as a single new medicine and as part of a new combination medicine with an
	inhaled corticosteroid.
	. Under the terms of the collaboration with GSK, each company contributed four LABA
	product candidates to the collaboration.
	. GSK is responsible for all development and commercialization costs associated with
	these eight product candidates and will pay THRX based upon its product candidates
	reaching clinical, regulatory and commercial milestones.
	2004 Strategic Alliance.
	. In March 2004, THRX entered into a strategic alliance with GSK whereby GSK received
	an option to license product candidates from all of our other current and future drug
	discovery and development programs initiated prior to September 1, 2007, on pre
	determined terms and on an exclusive, worldwide basis.
	. If GSK exercises its option to license any of THRX programs, THRX will receive an
	upfront payment, additional payments if future milestones are achieved and royalties on
	any future sale of medicines developed from these programs.
	. In addition, GSK would fund all of the development and commercialization costs for
	product candidates in such programs.
	GSK ownership
	. GSK currently owns all of THRX's Class A common stock, which represents
	approximately 19.7% of outstanding stock before the offering.
	. GSK's ownership of THRX's stock could increase to approximately 60% through the
	issuance by THRX to GSK of the number of shares of our common stock that THRX may
	be required to redeem from its stockholders
	THRX Programs
	. Seven programs focused on discovering and developing new medicines. Three of these
	programs have product candidates in Phase 1 or Phase 2 clinical trials:
	. Asthma and COPD: Long-Acting Beta2 Agonists (LABA).
	. Bacterial Infections. THRX's lead antibiotic product candidate, telavancin, is a rapidly
	bactericidal, injectable antibiotic. In January 2004, we completed a Phase 2 clinical trial in
	complicated skin and soft tissue infections comparing the clinical results of telavancin
	with current standard antibiotic therapy
	. Overactive Bladder (OAB). THRX's lead product candidate for OAB is TD-6301. We
	initiated the first Phase 1 clinical trial of TD-6301 in December 2003. THRX plans to
	initiate additional Phase 1 clinical trials in 2004. According to IMS Health, the market for
	medicines to treat OAB in the United States, Japan and Europe was approximately $1.5
	billion in 2003.
	Competition
	. Telavancin. THRX anticipates that, if approved, telavancin will compete with
	vancomycin, a generic drug that is manufactured by a variety of companies, as well as
	other drugs targeted at Gram-positive bacterial infections. These include daptomycin
	(marketed by Cubist Pharmaceuticals), linezolid (marketed by Pfizer Inc) and
	quinupristin/dalfopristin (marketed by Sanofi-Aventis and King Pharmaceutical). In
	addition, dalbavancin (being developed by Vicuron Pharmaceuticals) and oritavancin
	(being developed by Intermune, Inc.) are in late-stage clinical trials and represent
	potential competition for telavancin.
	. GSK LABA Collaboration. THRX anticipates that, if approved, any product from THRX
	LABA collaboration with GSK will compete with a number of approved bronchodilator
	drugs and drug candidates under development that are designed to treat asthma and
	COPD. These include salmeterol and fluticisone (marketed by GSK), formoterol
	(marketed by Novartis and AstraZeneca), and tiotropium (marketed by Boehringer
	Ingelheim and Pfizer Inc). In addition, QAB 149 (being developed by Novartis) is in late
	stage clinical trials and represents potential competition for any product from our LABA
	collaboration.
	. Overactive Bladder. THRX anticipates that, if approved, TD-6301 would compete with
	tolterodine (marketed by Pfizer Inc), oxybutinin (marketed by Ortho-McNeil
	Pharmaceutical, Inc. and Watson Pharmaceuticals) and trospium (marketed by Indevus
	Pharmaceuticals, Inc.). In addition, darifenacin (being developed by Novartis) and
	solifenacin (being developed by Yamanouchi Pharmaceutical Co., Ltd.) are in late-stage
	clinical trials and represent potential competition for TD-6301.
	Use of $65mm in IPO proceeds
	. THRX expects to use the net IPO proceeds, and $20 million to $30 million of existing
	cash and cash equivalents, to fund Phase 3 clinical trials of telavancin.
	. THRX current plans to begin these trials by the end of 2004.
	==========================
	Cogent Systems	COGT, 3-Stars, B-
	provider of Automated Fingerprint Identification Systems, or AFIS
	South Pasadena, CA	2001	2002	2003	June 6mos	IPO Mkt	Price /
	Revenue (mm)	$13.1	$16.4	$32.2	$32.5	Cap (mm)	Sales
	Gross Margin %	65%	70%	68%	77%	$741
	Operating Inc %	31%	46%	64%	62%	@$9.5	10.8
	Income (loss) ($)*	$0.1	$1.7	$5.6	$7.3
	Income (loss) %	1%	10%	17%	22%
	*proforma with taxes, rather than subchapter S
	----------------------------------------------------
	Quarterly results	Sept 03	Dec 03	March 04	June 04
	Revenue (mm)	$3.0	$20.0	$15.4	$17.1
	Gross Margin %	60%	71%	79%	75%
	Operating Inc %	93%	17%	43%	34%
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Sept 23	Cogent Sys (COGT)	741	10.8	49	5.9	5.9	23%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		2	2	2	2	8
	Business
	. Provides Automated Fingerprint Identification Systems, or AFIS (biometric) solutions to
	governments, law enforcement agencies and other organizations worldwide
	. Utilizes advanced search algorithms together with optimized hardware, to achieve high
	performance levels that enable customers to deploy systems in high traffic areas where real-time
	authentication or identification is critical, while still maintaining high accuracy rates.
	. In business since 1990
	Growth drivers
	. Recent legislation passed in the United States and in many foreign jurisdictions mandating the
	implementation of fingerprint systems at points of entry and exit such as the US-VISIT program
	. Increased government spending on the infrastructure for fingerprint biometrics as well as recent
	terrorist attacks
	Recent increase based on Department of Homeland Security orders
	. COGT experienced a significant increase in revenues and net income in the fourth quarter of
	2003 and the first six months of 2004 as the market for our AFIS and other fingerprint biometric
	solutions expanded primarily due to increased demand by the Department of Homeland Security
	(DHS) for COGT AFIS solutions
	. Especially for COGT's Live-ID AFIS solutions in connection with the implementation of the
	United States Visitor and Immigrant Status Indicator Technology, or US-VISIT, program.
	COGT Objective
	To become the leading provider of biometric solutions for governments, law enforcement agencies
	and other organizations worldwide. Key elements of our strategy to achieve this objective include:
	Biometrics defined
	. Biometrics is the automated use of unique physiological characteristics of individuals, such as
	fingerprints, palm prints, faces or irises, to authenticate or verify an individual’s identity. .
	Biometrics can be more accurate, convenient and cost-effective than traditional methodologies due
	to its reliance on unchanging, unique characteristics that cannot be lost, stolen, forged, shared or
	forgotten.
	. Of the various types of biometrics, fingerprints have been, and COGT believes will continue to
	be, the most widely used biometric because they are relatively simple to capture, are oftentimes
	left at crime scenes, are relatively non-intrusive and are supported by a standardized classification
	format.
	. In addition, databases of hundreds of millions of fingerprints are already in use by law
	enforcement agencies, government agencies and other organizations worldwide.
	From the Cogent website, http://www.cogentsystems.com/cogent/cogenthome.html
	. Cogent is the world's leading supplier of integrated systems solutions using biometrics for both
	government and commercial users. Cogent is the only provider of biometric information systems
	. That can accurately perform biometric comparisons
	. Using its Image Flow (patent pending) and its massively parallel processing Data Flow (patent
	pending) supercomputer technology
	. To provide high performance real-time identification and authentication for information systems.
	Marketing & customers
	. Markets solutions directly to end customers and indirectly as a subcontractor with other vendors
	to U.S. and international government organizations such as the U.S. Department of Homeland
	Security, or DHS, the U.S. Department of Justice, Federal Bureau of Investigations, or FBI, the
	Federal Bureau of Prisons, the European Commission, National Electoral Council in the Republic
	of Venezuela, the Chilean National Police, the Italian National Police, the U.K. police, and the
	Singapore National Police, state and local law enforcement and government agencies, such as the
	Los Angeles County Sheriff’s Department and the Los Angeles Police Department, the State of
	Connecticut and the Ohio Bureau of Criminal Investigation and Identification, and other
	organizations such as the National Association of Securities Dealers and Hewlett-Packard.
	. To date, COGT has served as the primary supplier of AFIS solutions for the United States Visitor
	and Immigrant Status Indicator Technology, or US-VISIT, program, an extensive effort by the
	DHS requiring the fingerprinting of visitors that enter and exit the United States through air, sea
	and land ports.
	Dependence on Department of Homeland Security
	. COGT anticipates that the DHS will continue to require more of PMA servers, live-scans and
	related equipment, services and software to satisfy the mandated rollout plan for US-VISIT
	. And that the DHS will continue to account for a substantial portion of revenues for the
	foreseeable future.
	Future demand
	. COGT does not have any long-term contracts with the DHS for the sale of products
	. Any delay or other change in the rollout of US-VISIT would cause revenues to fall short of
	expectations
	. Future sales to the DHS will depend upon the receipt of additional purchase orders from the
	DHS.
	. COGT also expects to experience increased demand from a number of other governments as they
	deploy AFIS solutions at points of entry and exit, including borders, seaports and airports.
	Sources of Revenue
	. Programmable Matching Accelerator, or PMA, servers and other AFIS equipment, including
	work stations and live-scans, bundled with proprietary software.
	. Also included in product revenues are fees generated from design and deployment of AFIS
	solutions.
	. Also generates maintenance revenues from maintenance contracts that are typically included with
	the sale of AFIS solutions.
	Customer concentration
	. In 2003 and for the six months ended June 30, 2004, COGT derived 64% and 79%, respectively,
	of revenues from a limited number of customers, including 59% and 64%, respectively, directly or
	indirectly from various agencies of the DHS.
	. In 2003 and for the six months ended June 30, 2004, COGT derived 75% and 74%, respectively,
	of revenues from the sale of our solutions either directly or indirectly to U.S. government entities
	pursuant to government contracts,
	. In 2003, COGT had four customers that individually accounted for more than 5% of revenues.
	Those four customers collectively accounted for 64% of revenues in 2003, of which 59% of our
	revenues was derived from sales directly or indirectly to various agencies of the DHS.
	. For the six months ended June 30, 2004, COGT had five customers that collectively accounted
	for 79% of revenues for that period, of which 64% was derived from sales directly or indirectly to
	various agencies of the DHS.
	. COGT's most significant customer since 1995 has been, and for the foreseeable future is
	expected to continue to be, the DHS and its predecessor entities.
	. COGT expects that sales under its contract with the DHS for the United States Visitor and
	Immigrant Status Indicator Technology, or US-VISIT, program will account for a majority of
	revenues in 2004.
	Backlog
	As of December 31, 2003 and 2002, COGT's total backlog was $47 million and $19.1 million,
	respectively.
	International
	. For the year ended December 31, 2003 and for the six months ended June 30, 2004, revenues
	outside of the Americas accounted for approximately 15.0% and 20.4%, respectively, of total
	revenues.
	. COGT currently have international operations, including offices in the United Kingdom, Austria,
	China and Taiwan. Our international revenues and operations are subject to a number of material
	risks, including, but not limited to:
	Accounting weakness
	. COGT's independent auditors have reported several material weaknesses in internal controls
	Quarterly fluctuations
	. COGT's financial results often vary significantly from quarter to quarter
	Gross margins
	. For the remainder of 2004 COGT believes gross margins are likely to decrease due to anticipated
	changes in product mix, which COGT expects to reflect a smaller proportion of PMA server
	shipments
	Intellectual Property
	. Core technology used in COGT's products and solutions is not the subject of any patent or
	copyright protection.
	. COGT relies on a portfolio of intellectual property rights, both foreign and domestic, including
	trade secrets, trademarks, contractual provisions, patent applications and licenses to protect its
	intellectual property.
	. Two pending patent applications relate to our Data Flow and Information Fusion technology.
	Competition
	Includes
	• Diversified technology providers, such as NEC, Sagem Morpho, Inc. (a wholly owned subsidiary
	of Sagem) and Motorola, Inc. (through its Printrak International division) that offer integrated
	AFIS solutions to government and law enforcement agencies;
	• Companies that are AFIS component providers, such as Identix;
	• Prime government contractors such as Northrop Grumman, that develop integrated information
	technology products and services that include biometrics-related solutions that are frequently
	delivered in partnership with diversified technology providers and biometrics-focused companies;
	• Companies focused on other fingerprint biometrics solutions, such as BioScrypt and Dermalog.
	• COGT offerings also compete with non-biometric technologies such as public key infrastructure
	solutions, smart card security solutions and traditional key, card surveillance and password
	systems.
	Use of $157mm in IPO proceeds
	. $67mm stockholder dividend (conversion from subchapter S)
	. Balance for working capital and general corporate purposes
	====================================
	Nephros (NEP)	NEP, 1 star, C
	development stage medical device and technology company
	New York, New York	2001	2002	2003	June6mos	IPO Mkt	Price /
	Revenue	$0.3	none	none	none	Cap (mm)	Sales
	Income (loss) ($)	-1.0	-2.4	-5.6	-3.7	$78
						@$6.50	n/a
	VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
		Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Sept 14	Nephros (NEP)	78	n/a	-11	5.8	5.8	32%
	SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
	1-5, 5 is high			Growth	mination	tary	rating
	20 is perfect		1	2	0	2	5
	Business
	. NEP is a development stage medical device and technology company that was founded in 1997
	by health professionals, scientists and engineers affiliated with Columbia University
	. To develop cost-effective, improved products and therapies for End Stage Renal Disease, or
	ESRD, therapy
	Competition
	. The dialyzer and renal replacement therapy market is subject to intense competition
	. NEPH expects to compete with other suppliers of ESRD therapies, supplies and services.
	. Suppliers include Fresenius Medical Care AG, The Gambro Company and Baxter International
	Inc., currently three of the primary machine manufacturers in hemodialysis.
	. At present, Fresenius, Gambro and Baxter also manufacture HDF machines.
	. Some of the competitors, including Fresenius and Gambro, manufacture their own products and
	own dialysis clinics in the United States, the Target European Market and other regions of the
	world
	Use of Proceeds
	Marketing & sales, clinical studies, capital expenditures, supplier settlement, preferred stock
	dividends, working capital
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