GENE SIMMONS: KISS ACUMEN BioFin Rodman&Renshaw A BUSINESSMAN UNMASKED 4th Annual Global Healthcare Conference Monte Carlo, Monaco May 14-15

APRIL 2OO7 • £3.OO €4.OO Rodman &Renshaw The Acumen for Biotech Success

Stem Cell Companies: The Promise and the Problems

From Discovery to Drug Store: The Road to Commercialization The Israeli Insider Conquering Cancer: Pluristem Expands View from the Stem Cell Opportunities Investing in India Front Lines From Generic to Unique: The Rise of India’s NASDAQ Sleepers: Drug Companies Frankfurt in Focus Snoozy Companies Opportunity Knocks for Ready to Rise Frankfurt Biotech Rodman The Acumen for &Renshaw Biotech Success

Over 175 companies will attend the Acumen BioFin Rodman & Renshaw 4th Annual Global Healthcare Conference in Monte Carlo. Pack your tux, but don’t forget your investment acumen.This show is all business.

BY ARNALDO ARROYO

f you’veeverbeentoasmall Europeans Bullish on U.S. Biotech On The Conference Tour... cap conference, you know how For a while now, the European invest- it goes: there are some nice ment community has been looking to the snacks, some guys in suits, some U.S. biotech sector. As the world’s leader, Small Companies Fighting Big coffee and juice, and, if you’re the U.S. consumes and produces the Problems in Oncology Ilucky, a couple good leads on some most biotechnology products. This lead- BY REN BENJAMIN,PH.D. promising companies. Now, while that’s ership is in part due to a well established not bad, it pales in comparison to a and clearly defined regulatory environ- Attacking Alzheimer’s Disease Rodman & Renshaw conference. ment, something Europe lacks. This BY ELEMER PIROS,PH.D. Subsidiary Acumen BioFin is having its makes it difficult for European small cap next conference from May 14 to 15 in biotechs to attract funding and makes It Pays Not to Have Profits Monte Carlo. Yes, Monte Carlo. them an overall riskier investment. Interview with John W. Chambers The premier event in the life sci- Another reason European investors BY GREGORY BERGMAN ences sector, the conference will show- have their eye on America is the current case hundreds of emerging growth strength of the Euro versus the dollar, biotech companies. “It’s become one of which allows them to buy U.S. biotech Company Spotlights: the larger life sciences conferences in companies at a discount. “This year, the Europe and is widely considered a sector has come alive in terms of supply EntreMed, Inc. must-attend-event for both investors and demand,” says Chambers. “That’s and companies,” says John Chambers, why there’s going to be a lot of enthusi- BioSante Pharmaceuticals, Inc. president of Acumen BioFin. asm for the conference. It’s very exciting.” Alongside presentations of groups Neoprobe Corporation of exciting companies, Rodman & Rodman: Ahead of the Pack Avicena Group, Inc. Renshaw equity analysts and key indus- Offering expert research, institutional try leaders will share their expertise on sales and trading, strategic advice and the various markets represented. financing, Rodman provides emerging

2 EQUITIES / APRIL 2007 EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 Rodman & Renshaw Conference Tour growth companies the services they To date, more than 100 biotechnolo- Alzheimer’s disease, autoimmune dis- need to succeed. What’s more, it also gy drugs have already been commercial- eases, and many, many more. provides investors with winning ideas ized. There are currently more than 370 Join us, on a back stage tour spot- and opportunities. biotechnology medicines in clinical lighting some exciting presenting com- And opportunities there certainly development, including multiple medi- panies complimented by market analysis are. Right now, there area about 350 cines for cancer, infectious diseases, of two all-star Rodman analysts. biotech companies under Wall Street’s radar, many of which could be big win- ners. “Much of the value has already “In January, the biotech sector was the next been factored into large biotech compa- largest sector after energy with respect to ny valuations,” says Chambers. “But if private capital financing.”— John J. Borer, III, one invests in the emerging growth sec- tor, the potential return could be very CEO of Rodman & Renshaw. significant.”

Small Companies Targeting Big Problems In Oncology

BY REN J. BENJAMIN,PH.D. SENIOR BIOTECHNOLOGY ANALYST AT ACUMEN BIOFIN

HIS EXPERTISE CONSISTS OF SMALL-CAP COMPANIES IN THE ONCOLOGY AND STEM CELL SECTORS. DR.BENJAMIN RECEIVED HIS PH.D. FROM THE UNIVERSITY OF ALABAMA AT BIRMINGHAM AND HIS BACHELORS OF SCIENCE DEGREE IN BIOLOGY FROM ALLEGHENY COLLEGE.

ancer remains one of the diseases (cancers that spread), a $150 and equivalents, which should be most devastating diseases million potential market; ProstaScint, an enough to fund operations into 2008. in the U.S. From 1950 to imaging agent to detect the spread and 2004, the death rate has extent of disease in metastatic prostate only decreased from cancer, an $80 million potential market; (NASDAQ: SPPI) develops therapeutics C194/100,000 to 186/100,000. In the Soltamox, an oral form of tamoxifen to to fulfill large unmet clinical needs. Its U.S., there are an estimated 10.5 million treat breast cancer, a $5 million in peak flagship product, Satraplatin, is a third- people with the disease. The American sales potential; and Caphosol, an generation, oral, platinum-based Cancer Society expects 1.4 million new approved drug for oral mucositis, a chemotherapeutic. (Platinum-based cases and 560,000 deaths in 2007. This $100 million potential market. chemotherapies are a core component in year, the worldwide market for thera- The company is currently evaluating many anti-tumor regimens.) Recently, in a peutics targeting oncology (cancer) may Quadramet in combination with other pivotal Phase III trial, Satraplatin demon- reach $40 to 50 billion. Fueled by a therapies for multiple indications, strated a significant improvement in pro- newer generation of chemotherapeutics, including prostate cancer and multiple gression-free survival as a second-line targeted therapeutics, and supportive myeloma. In addition, the market for treatment in hormone refractory prostate care products, this market is growing at ProstaScint continues to grow as physi- cancer. Based on this data, it’s being eval- a rapid rate of 13% year over year. cians recognize its superior image quali- uated for approval in affected patients. Highlighted below are four core small- ty. Finally, since there are no cost-effec- Spectrum has four other compounds cap holdings that stand to benefit. tive treatments available for oral mucosi- in Phase II or Phase III trials: EOquin, Cytogen (NASDAQ: CYTO) cur- tis, the recently launched Caphosol Ozarelix, Elsamitrucin, and Lucanthone. rently markets four products targeting should become a very competitive prod- In addition, its two pre-clinical com- cancer: Quadramet, a treatment for uct and generate substantial revenue. pounds could enter clinical development relieving bone pain caused by metastatic Cytogen has about $40 million in cash within the next 12 to 18 months. The >> EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 EQUITIES / APRIL 2007 3 Rodman & Renshaw Conference Tour company has about $51 million in cash BPH and Hormone-Dependent in-licensed AVN944, an oral inhibitor and equivalents, which may be enough Prostate Cancer (HDPC); and AN-152, of inosine 5'-monophosphate dehydro- to fund operations through 2008. a cytotoxic conjugate targeting cancer genase, to treat hematological cancers. cells that over-express LHRH receptors, Based on the anti-tumor activities and a Æterna Zentaris (NASDAQ: AEZS), which is entering Phase II trials. good safety profile, the compound is a Canadian company, focuses on treat- In January 2007, the company divest- being evaluated in a Phase I trial in ments in oncology and endocrinology. ed its interest in Atrium Biotechnologies, patients with acute leukemia, multiple Æterna Zentaris possesses an extensive a chemical and nutritional-focused sub- myeloma, and lymphomas. To date, the portfolio of compounds, including sidiary. The company has around $61 compound has shown to be tolerable Cetrorelix, a marketed Luteinizing million in cash and equivalents, which with signs of biological activity in half Hormone-Releasing Hormone (LHRH) should be enough to fund the pivotal of evaluated patients. In addition, the antagonist for in vitro fertilization. The Phase III trials of Cetrorelix in BPH. company plans to use AvalonRx to drug is also in advanced stage clinical guide the clinical development of developments to treat endometriosis Avalon Pharmaceuticals (NASDAQ: AVRX) AVN944. AvalonRx will allow the iden- and benign prostatic hyperplasia (BPH). focuses on small molecule therapeutics. tification of gene expression patterns Additional drugs in development Though yet to be validated in practice, that will show which patients are more include Perifosine, an orally-active AKT AvalonRx, its technology platform, has likely to respond to drug treatment. inhibitor, in Phase II trials for multiple the potential to improve every step The company has about $28 million cancers; Ozarelix, a fourth-generation along the drug development path. in cash and equivalents, which should be LHRH antagonist in Phase II trials for The company is also developing an enough to fund operations into 2008.

EntreMed, Inc.

EntreMed, Inc. is a clinical-stage tested as a cancer therapeutic in five companies to develop compounds for pharmaceutical company that is devel- Phase II clinical trials, and has been both oncology and non-oncology ther- oping next generation multi-mechanism granted Orphan Drug designation by apeutic areas. oncology drugs that target disease cells the FDA in three cancer indications, Oncology is EntreMed’s principal and the blood vessels that nourish including glioblastoma multiforme, clinical and commercial focus, although them. The company is focused on multiple myeloma, and ovarian cancer. recent data support further develop- developing drugs that are safe, conven- MKC-1 is an orally-active, small ment of its compounds in certain non- ient, and provide the potential for molecule, cell cycle inhibitor with a oncology applications, such as rheuma- improved patient outcomes. unique mechanism of action. toid arthritis. As a result, EntreMed’s EntreMed’s goal is to develop and Specifically, MKC-1 arrests cellular strategy is to continue developing com- commercialize therapeutics based on the mitosis by inhibiting a novel intracellu- pounds for oncology and inflammatory company’s scientific expertise in angio- lar target important in cellular traffick- diseases, while selectively exploring genesis, cell cycle regulation, and inflam- ing that has been shown to be involved strategic alliances for its compounds in mation — processes vital to the progres- in cell division. MKC-1 is currently in other therapeutic areas. The company sion of cancer and other diseases. The Phase I and II clinical studies. may pursue co-development partners company’s three clinical product candi- In May 2006, EntreMed began clini- for its core pipeline product candidates dates are based on these mechanisms. cal studies with its third clinical-stage to help accelerate their development The company’s expertise has also led to compound, ENMD-1198, in patients and strengthen the development pro- the identification of new molecules, with advanced cancer. gram with complementary expertise. including new chemical entities derived EntreMed is developing compounds Likewise, EntreMed can provide its co- from2ME2,aswellasnewchemical that have broad therapeutic and com- development partners with substantial entities associated with aurora kinase mercial potential in oncology. In order know-how relating to small molecules, inhibition and HDAC inhibition, impor- to further advance its commercial and peptides that inhibit angiogenesis tant targets in the treatment of oncology. objectives, EntreMed may seek strategic and inflammation, as well as regulate Panzem®, one of the company’s alliances, licensing relationships and co- cell cycle pathways. lead drug candidates, is currently being development partnerships with other

4 EQUITIES / APRIL 2007 EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 Rodman & Renshaw Conference Tour

Attacking Alzheimer’s Disease

BY ELEMER PIROS,PH.D. SENIOR BIOTECHNOLOGY ANALYST AT ACUMEN BIOFIN

CURRENTLY,DR.PIROS RESEARCH UNIVERSE INCLUDES EMERGING BIOTECHNOLOGY COMPANIES THAT DEVELOP PRODUCTS ADDRESSING THE NERVOUS SYSTEM AND CANCER.HE EARNED DEGREES IN MATHEMATICS AND IN BIOLOGY AND A PH.D. IN NEUROSCIENCE AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES.HE THEN COMPLETED POST-DOCTORAL TRAINING AT CORNELL UNIVERSITY MEDICAL COLLEGE IN NEW YORK.

lzheimer’s Disease is a patients is $100 billion in the U.S. Alzheimer’s therapy involves strate- devastating neurological The clinical manifestations of gies that are symptomatic (attempt to disorder that affects 4.5 Alzheimer’s include the progression of alleviate symptoms) or neuroprotective million people in the U.S. cognitive impairment. (attempt to protect neurons from dam- and over 30 million Difficulty learning new information age). Although both treatments may worldwide.A The elderly are particularly at is the clinical hallmark of the disease. have similar outcomes in a clinical trial, risk for Alzheimer’s and other forms of Other signs include problems with lan- many believe that neuroprotective dementia. With a growing baby boomer guage, visual-spatial processes, and exec- strategies continue to be beneficial after population, the number of people with utive control functions such as judg- patients stop treatment. Alzheimer’s is projected to double over ment. Alterations in behavior, mood, the next 20 years. By 2050, over 16 mil- and personality also occur. Clinicians Neurochem (NASDAQ: NRMX) is a lion Americans will have it. Currently, believe that β-amyloid, a toxic protein, is Canadian company headed by Dr. the annual cost of caring for Alzheimer’s responsible for this cognitive decline. Francesco Bellini, formerly CEO of >>

BioSante Pharmaceuticals, Inc.

BioSante focuses on developing a manner without a trace of residue. (NYSE: BDY). BioSante received an product pipeline of human hormone BioSante’s testosterone and estradiol upfront payment of around $2.6 million therapy products. Symptoms treated with products deliver bioidentical hormones with approximately $7.9 million in mile- hormone therapy in men include impo- similar to men’s and women’s natural stone payments being triggered by FDA tence, lack of sex drive, muscle weakness hormones. The company’s lead hor- approval and the right to receive further and osteoporosis. The symptoms treated mone therapy product, Elestrin is FDA milestones of up to $30.0 million, plus in women include hot flashes and female approved to reduce the frequency and royalties, on the sales of Elestrin. sexual dysfunction. The current market severity of hot flashes in menopausal Its next product in development is for hormone therapy products is about women. The company received FDA LibiGel, a treatment for female sexual $2.5 billion dollars in the U.S. alone, with approval for both the 0.87g and the dysfunction (FSD). LibiGel is bioiden- estimates for female sexual dysfunction 1.7g per day doses of Elestrin in tical testosterone in a transdermal gel of over $2.0 billion. December of 2006 and plans for the formulation. A Phase II clinical trial The company’s hormone therapy commercial launch in 2007. The Phase has shown excellent results with a sig- products are gel formulations of some III clinical trial comprised 484 post- nificant 238% increase in the total combination of testosterone, estradiol, menopausal women. Both doses of number of satisfying sexual events. The and progesterone. The gels are Elestrin approved were shown to be company initiated a LibiGel Phase III designed to be applied once per day effective, with the lowest effective dose clinical trial in December 2006. There and are quickly absorbed through the of Elestrin identified. BioSante has are currently no pharmaceutical prod- skin, delivering the required hormone signed an exclusive marketing agree- ucts approved for the treatment of to the bloodstream evenly and in a ment for Elestrin in the U.S. with FSDintheU.S.ThemarketforFSDis quick drying, non-invasive, painless Bradley Pharmaceuticals, Inc. estimated to be over $2.0 billion.

EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 EQUITIES / APRIL 2007 5 Rodman & Renshaw Conference Tour

BioChem Pharma, which was sold to tive trial outcome for Alzhemed would trial of Dimebon. The results were Shire for $4 billion in 2001. Neurochem go a long way towards validating amyloid unprecedented, patients taking is developing a novel inhibitor of amy- as a major culprit in Alzheimer’s. Such a Dimebon actually improved after six loid protein aggregation called validation could position Neurochem as months of therapy. Medivation could Alzhemed. Data from a Phase III trial the leader in this sector. begin a Phase III testing of Dimebon is expected to be released any time. by early 2008, and potentially launch the Alzhemed is also in a Phase III trial in Medivation (AMEX: MDV) is devel- drug in 2011. Sales could reach $1.8 bil- Europe, results from which should be oping Dimebon to treat Alzheimer’s and lion by 2015. The main challenge is released in mid-2008. The drug could Huntington’s disease. Originally devel- ensuring that efficacy shown in Phase II be launched in 2010 and achieve sales in oped in Russia as an antihistamine, can be replicated in larger trials. Also, excess of $2 billion by 2018. Dimebon is an exciting new drug com- Dimebon is taken three times per day, Particularly encouraging is the blind- bining four different mechanisms block- which could cause patient compliance ed data released from the trial of ing neurodegeneration. Like approved issues for Alzheimer’s patients, who suf- Alzhemed, which indicated that nearly therapies for Alzheimer’s, the drug is a fer impaired memory. The current best- 40% of patients who completed the cholinesterase inhibitor, but should be selling drug, ’s Aricept, is taken study had either stable or improved cog- safer.ItalsoblocksNMDAreceptors once per day. nitive function. This should be com- like Namenda and prevents damage to Alzhemed and Dimebon could be pared to the success rate of symptomatic the mitochondria — the energy facto- the first new anti-Alzheimer’s drugs to therapies, in which 95% of patients ries of neurons —to block neurodegen- be approved. would show significant cognitive decline eration. Finally, Dimebon also inhibits When patent expirations take off in over the same time period. What’s more, an enzyme called monoamine oxidase B 2010, next generation drugs that focus Phase II data showed that Alzhemed (MAO-B), similar to drugs treating on underlying pathologies, rather than reduced amyloid protein in the spinal Parkinson’s Disease. symptoms, should take the lead. fluid of Alzheimer’s patients significant- In September 2006, Medivation Companies that make them, as well as ly. While some remain skeptical, a posi- reported Phase II data from a Russian the patients that take them, will benefit.

Neoprobe Corporation

Neoprobe is a biomedical company The company is actively marketing if approved, would be a first in class focused on developing and commercial- two medical device product lines while drug specifically labeled for the target- izing biomedical products that enhance it pursues development initiatives for ing of lymphatic tissue. patient care and improve patient out- three potentially significant products. RIGScan CR is a tumor-specific tar- come. The company currently markets Neoprobe' device offerings include geting agent, initially intended for use in the neo2000 line of gamma detection neo2000 line of gamma detection sys- treatment of colorectal cancer. RIGScan systems, which are widely used by cancer tems and the Quantix line of blood CR has shown promising results in earli- surgeons, and is commercializing the flow measurement products. The er clinical trials and Neoprobe is focus- Quantix line of blood flow measure- Quantix products employ a unique ing its current efforts surrounding ment products. In addition, the company and proprietary dual beam Doppler RIGScan on identifying and securing a is developing related biomedical systems technology that permits real-time development partner and on preparing a and radiopharmaceutical agents, includ- accurate measurement of volume request for a special protocol assessment ing Lymphoseek and RIGScan CR. Its blood flow and other hemodynamic to prepare for future clinical evaluations. subsidiary, CIRA Biosciences, Inc., is parameters. The commercial manufacturing also advancing a patient-specific cellular The company’s therapeutic development assessment completed by the Battelle therapy technology platform called ACT. efforts are centered on radiopharmaceutical Memorial Institute related to CIRA Neoprobe's strategy is to deliver superi- agents Lymphoseek and RIGScan CR, and Bio’s ACT technology, coupled with or growth and shareholder return by on the activated cellular therapy (ACT) the clinical strategy recommendations maximizing its strong position in gamma technology platform of Neoprobe’s sub- recently made by CIRA Bio’s scientific detection technologies and diversifying sidiary, CIRA Biosciences, Inc. advisors, have also set the stage for into new, synergistic biomedical markets Lymphoseek is being developed CIRA Bio to embark on capital-raising through continued investment and selec- using technology licensed from the efforts necessary to move this plat- tive acquisitions. University of California San Diego, and form forward.

6 EQUITIES / APRIL 2007 EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 Rodman & Renshaw Conference Tour

It Pays Not to Have Profits During unsafe times, investors can find shelter in the most unlikely places. John W. Chambers, president of Acumen BioFin, on why betting on small cap biotechs is a lot less risky than you might think.

BY GREGORY BERGMAN

Bergman: Is now a good time for these, high beta stocks like biotech com- investors to look to biotech? panies have outperformed the market. Chambers: Yes.Nowisaverygood Bergman: Are you saying that it’s actu- time to look to biotech. With so much ally a good thing for investors that geo-political risk, domestic economic small cap biotechs don’t have revenues? uncertainty, and politcal change, biotech is Chambers: Yes. Ironically, cash con- a good bet because it’s insulated from suming biotech companies which show these external factors. These companies, a net loss quarter over quarter are actu- especially the small caps, are evaluated ally a safe haven during unsafe times; based on milestones, not revenues. So investing in them is a defensive play in a financial market or economic woes, which market plagued with external risks. I can slow corporate earnings growth, really guess, in some sense, you could say it John W. Chambers don’t affect them. In fact, in times like pays not to have profits. >>

Avicena Group, Inc.

Avicena Group, Inc. (OTC BB: tional data points. Upon completion of drug designation from the FDA. HD-02 AVGO) is a late stage biotechnology this analysis, Avicena intends to discuss has completed a Phase I/II trial led by company focused on developing prod- findings with FDA to determine appro- Dr. Steven Hersch of Massachusetts ucts based on its proprietary understand- priate next steps. General Hospital. Results, published in ing of the regulation of cellular energy Avicena Group’s proprietary Neurology, showed HD-02 to significant- processes. The company's core technolo- Parkinson’s disease drug candidate, PD- ly reduce oxidative damage and also gies, supported by a robust IP portfolio, 02, is beginning Phase III trials as part of reduce the rate of disease progression. have broad applications in both pharma- the company’s signed agreement to sup- Avicena intends to initiate a Phase III ceuticals and dermaceuticals. ply PD-02 for a trial that is being trial of HD-02 in Huntington’s disease Avicena Group’s pharmaceutical pro- planned by the National Institutes of in early 2008. gram centers on rare neurological disor- Health (NIH). The Phase III trial, initiat- Avicena Group’s expertise in modulat- ders (orphan diseases). The company’s ed in March 2007, is led by Karl ing the body’s energy systems has addi- most advanced pharmaceutical product Kieburtz, M.D., M.P.H., of the tional applications outside of drug devel- candidate, ALS-02, is being developed in University of Rochester in New York, opment. The company is leveraging its collaboration with Dr. Jeffrey Rosenfeld and Barbara C. Tilley, Ph.D., of the cellular energy technology into dermatol- of the Carolinas ALS Center for the Medical University of South Carolina in ogy applications. Avicena's skin care treatment of amyotrophic lateral sclero- Charleston. The trial is designed to eval- ingredients and formulations are designed sis (ALS or Lou Gehrig’s disease). ALS- uate PD-02’s potential to slow the pro- to enhance the regeneration of healthy 02, granted orphan drug designation by gression of Parkinson’s disease. Positive skin and to protect against the effects of the US Food and Drug Administration results from an earlier multi-center Phase aging as well as oxidative and photo dam- (FDA), recently completed its first II futility trial demonstrated significant age. The company has developed, and is Phase III clinical trial. Data from this improvements in the Unified Parkinson’s in the process of launching, a line of con- trial, when combined with a second trial Disease Rating Scale (UPDRS). sumer dermaceutical products; in addi- of ALS-02, demonstrated a positive Avicena Group’s product candidate tion, Avicena derives revenue from the trend toward decreased mortality. Dr. for the treatment of Huntington’s dis- sales of its proprietary skin care ingredi- Rosenfeld is presently analyzing addi- ease, HD-02, has also received orphan ents to cosmeceutical manufacturers.

EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 EQUITIES / APRIL 2007 7 Rodman & Renshaw Conference Tour

Bergman: Interesting. Is this true for Chambers: If the public market impact metrics, how do investors pick a biotech biotechnology across the board? is broad enough, once revenues are deliv- company? Chambers: Not so much anymore. ered, the price of a company’s products, Chambers: By biotech fundamentals. Investors looking at investing in the life as well as its ability to sell them, will no Key items for the investor to focus on sciences sector should fine-tune their doubt face scrutiny. However, the focus are the quality and depth of the compa- strategy to create an even more defen- of many biotechnology companies is to ny’s product pipeline; the ability for it to sive portfolio. Pharmaceutical compa- deliver therapeutics that target unmet replenish this pipeline either internally nies, for instance, aren’t the safe bet they medical needs in highly visible areas, or externally; the quality, history, and once were, because of the breadth of including oncology, CNS, antivirals resiliency of management; and, of patent expiries in the next several years. (including HIV), and others. Given the course, the news flow — when and how Also, the largest names in the biotech need for new therapeutics in those sec- often key milestones will be delivered. sector now trade on earnings, revenues, tors, there’s a low probability that those Also, investors need to evaluate the and growth based metrics. The federal companies will be the target of cost con- path to approval of a company’s lead government’s continued focus on con- tainment. In addition, the biotechnology programs, the therapeutic focus of their taining rising drug and healthcare costs universe is fortified by large patent products, and the size of addressable might further increase volatility in phar- estates, which provide a minimum value markets. Most importantly, you must do maceutical companies as well. to these companies, particularly as large your homework prior to investing. You Bergman: What happens if and when pharmaceutical companies seek to don’t want to build a position right a biotech company starts generating enhance their drug development pipeline. before a pivotal event like the release of revenues? Bergman: If not through financial data on a clinical trial.

Presenting Companies at the Acumen BioFin Rodman & Renshaw 4th Annual Global Healthcare Conference *Updated as of March 16, 2007 Company Exchange Symbol Price 52-Week Price Range Sub-Sector Acadia Pharmaceuticals, Inc. NASDAQ ACAD 6.99 5.07 – 17.94 CNS Accera, Inc. (Private Company) NA NA NA NA CNS Active Biotech AB OME ACTI SS 78.50 NA Oncology Acusphere, Inc. NASDAQ ACUS 2.74 7.29 – 2.10 Cardiology Advanced Cell Technology, Inc. OTC BB ACTC 0.80 0.26 – 2.32 Stem Cell Advancis Pharmaceutical Corporation NASDAQ AVNC 2.25 2.02 – 6.70 Infectious Diseases ADVENTRX Pharmaceuticals, Inc. AMEX ANX 1.98 1.95 – 5.38 Oncology AEterna Zentaris, Inc. NASDAQ AEZS 3.15 2.90 – 7.55 Oncology Affymax, Inc. NASDAQ AFFY 31.45 29.30 – 41.00 Peptide-Based Drugs Alnylam Pharmaceuticals, Inc. NASDAQ ALNY 17.40 11.29 – 24.46 RNAi Therapeutics Altegen, Inc. (Private Company) NA NA NA NA Diagnostic Tests Alteon, Inc. AMEX ALT 0.12 0.11 – 0.29 Cardiovascular Diseases Amarin Corporation plc NASDAQ AMRN 2.57 1.72 – 2.87 Autoimmune Diseases Antisoma plc LONDON ASM 46.50 11.72 – 49.75 Small Molecule Technology Arena Pharmaceuticals, Inc. NASDAQ ARNA 11.44 9.18 – 20.68 CNS Avalon Pharmaceuticals, Inc. NASDAQ AVRX 3.77 2.20 – 5.85 Drug Delivery Avant Immunotherapeutics, Inc. NASDAQ AVAN 1.31 1.25 – 2.82 Therapeutic Vaccines , Inc. OTC BB AVXT 0.19 0.09 – 0.33 Therapeutic Vaccines AVI BioPharma, Inc. NASDAQ AVII 2.53 2.38 – 7.82 Cardiovascular Diseases Avicena Group, Inc. OTC BB AVGO 5.99 5.78 – 5.98 CNS Axcan Pharma, Inc. NASDAQ AXCA 16.02 11.75 – 16.50 Specialty Pharmaceuticals BioMarin Pharmaceutical, Inc. NASDAQ BMRN 16.14 11.55 – 20.53 Gene Therapy Biomira, Inc. NASDAQ BIOM 1.06 0.85 – 1.70 Oncology BioMS Medical Corp. TSX MS CN 3.64 3.00 – 4.29 Autoimmune Diseases Bioniche Life Sciences, Inc. TSX BNC CN 1.16 0.60 – 2.38 Specialty Pharmaceuticals Biosante Pharmaceuticals, Inc. AMEX BPA 4.44 1.48 – 4.73 Specialty Pharmaceuticals Biotie Therapies Corp. FINLAND BTH1V 0.93 0.53 – 2.39 Specialty Pharmaceuticals BioVex, Inc. (Private Company) NA NA NA NA Oncology BioXell, Spa SWX BXLN 50.00 41.05 – 63.50 Specialty Pharmaceuticals Boston Life Sciences, Inc. NASDAQ BLSI 2.28 2.07 – 4.24 CNS Bradmer Pharmaceuticals, Inc. TSX BMR CN 3.75 1.65 – 7.00 Oncology C & O Pharmaceutical Technology Ltd SGX COPT SP 0.34 0.23 – 0.53 Branded Pharmaceuticals

8 EQUITIES / APRIL 2007 EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 Rodman & Renshaw Conference Tour

Company Exchange Symbol Price 52-Week Price Range Sub-Sector Callisto Pharmaceuticals, Inc. AMEX KAL 0.79 0.69 – 1.68 Oncology Celgene Corporation NASDAQ CELG 50.19 36.02 – 60.12 Oncology Cell Genesys, Inc. NASDAQ CEGE 2.94 3.03 – 8.10 Oncology Cell Therapeutics, Inc. NASDAQ CTIC 1.62 1.12 – 2.53 Oncology CEL-SCI Corporation AMEX CVM 0.67 0.53 – 1.78 Oncology Ceragenix Pharmaceuticals, Inc. OTC BB CGXP 2.18 1.20 – 4.29 Oncology Cerimon Pharmaceuticals (Private Company) NA NA NA NA Autoimmune Diseases Ciphergen Biosystems, Inc. NASDAQ CIPH 1.25 0.82 – 2.25 Medical Devices CombinatoRx, Inc. NASDAQ CRXX 7.35 5.50 – 12.55 Oncology Cougar Biotechnology, Inc. OTC BB CGRB 17.25 9.75 – 20.00 Oncology Crucell N.V. NASDAQ CRXL 24.23 17.24 – 29.14 Therapeutic Vaccines Curis, Inc. NASDAQ CRIS 1.41 0.91 – 2.50 Gene Therapy Cyclacel Pharmaceuticals, Inc. NASDAQ CYCC 8.20 4.31 – 8.64 Oncology Cytogen Corporation NASDAQ CYTO 2.04 1.93 – 3.75 Small Molecule Technology CytRx Corporation NASDAQ CYTR 4.09 0.87 – 5.49 Gene Therapy Depomed, Inc. NASDAQ DEPO 3.26 2.74 – 6.99 Drug Delivery DOR BioPharma, Inc. OTC BB DORB 0.61 0.20 – 0.71 Oncology DOV Pharmaceutical, Inc. NASDAQ DOVP 0.37 0.21 – 17.79 CNS DURECT Corporation NASDAQ DRRX 3.92 2.56 – 6.40 Specialty Pharmaceuticals Dyadic International, Inc. AMEX DIL 6.03 2.86 – 9.06 Gene Therapy Dyax Corp. NASDAQ DYAX 3.82 2.63 – 5.94 Cardiovascular Diseases Elite Pharmaceuticals, Inc. AMEX ELI 2.15 1.75 – 2.75 Drug Delivery Emergent BioSolutions, Inc. NYSE EBS 11.88 9.75 – 17.75 Therapeutic Vaccines Encysive Pharmaceuticals, Inc. NASDAQ ENCY 2.99 2.81 – 9.75 Small Molecule Technology Entremed, Inc. NASDAQ ENMD 1.60 1.40 – 2.99 Oncology EpiCept Corporation NASDAQ EPCT 1.60 1.37 – 4.75 Oncology Esbatech AG (Private Company) NA NA NA NA Gene Therapy Evotec AG XETRA EVT GR 3.60 2.28 – 4.46 Small Molecule Technology Faust Pharmaceuticals SA (Private Company) NA NA NA NA CNS Fermavir Pharmaceuticals, Inc. OTC BB FMVR 1.70 NA Infectious Diseases Fovea Pharmaceuticals, SA (Private Company) NA NA NA NA Ophthalmology Galapagos N.V. EURONEXT GLPG 8.70 8.17 – 10.70 Autoimmune Diseases GammaCan International, Inc. OTC BB GCAN 0.48 0.35 – 1.69 Oncology Genelabs Technologies, Inc. NASDAQ GNLB 1.61 0.70 – 2.55 Infectious Diseases Generex Biotechnology Corporation NASDAQ GNBT 1.71 1.25 – 5.02 Drug Delivery Genfit Corporation EURONEXT ALGFT 13.10 12.60 – 16.80 Gene Technology Incorporated NASDAQ GNTA 0.37 0.35 – 2.25 Oncology Geron Corporation NASDAQ GERN 6.94 5.66 – 10.00 Oncology Glycadia Pharmaceuticals (Private Company) NA NA NA NA Infectious Diseases GTC Biotherapeutics, Inc. NASDAQ GTCB 1.02 0.87 – 2.00 Therapeutic Proteins Hana Biosciences, Inc. NASDAQ HNAB 3.85 3.73 – 12.94 Oncology Hemispherx Biopharma, Inc AMEX HEB 1.75 1.69 – 4.23 Infectious Diseases Hollis-Eden Pharmaceuticals, Inc. NASDAQ HEPH 2.77 2.63 – 7.49 Small Molecule Technology Icagen, Inc. NASDAQ ICGN 1.69 0.66 – 9.25 Drug Delivery Idera Pharmaceuticals, Inc. AMEX IDP 7.15 1.60 – 9.50 DNA Technology Immunomedics, Inc. NASDAQ IMMU 4.59 1.52 – 5.17 Monoclonal Antibody Technology Indevus Pharmaceuticals, Inc. NASDAQ IDEV 6.57 4.25 – 8.06 Specialty Pharmaceuticals Inovio Biomedical Corporation AMEX INO 3.13 1.91 – 3.81 Oncology Intellect Neurosciences, Inc.* NA NA NA NA Autoimmune Diseases Iomai Corporation NASDAQ IOMI 4.92 2.61 – 6.90 Therapeutic Vaccines Javelin Pharmaceuticals, Inc. AMEX JAV 6.03 2.65 – 6.21 Specialty Pharmaceuticals Jerini AG FRANKFURT JI4 GR 4.20 3.40 – 5.14 Specialty Pharmaceuticals Kemia, Inc. (Private Company) NA NA NA NA Autoimmune Diseases Lev Pharmaceuticals, Inc. OTC BB LEVP 1.63 0.95 – 1.99 Inflammatory Diseases Locus Pharmaceuticals, Inc. (Private Company) NA NA NA NA Small Molecule Technology Lorus Therapeutics Inc. AMEX LRP 0.24 0.14 – 0.36 Oncology >> EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 EQUITIES / APRIL 2007 9 Rodman & Renshaw Conference Tour

Company Exchange Symbol Price 52-Week Price Range Sub-Sector MacroChem Corporation OTC BB MACM 0.64 0.24 – 1.85 Drug Delivery Manhattan Pharmaceuticals, Inc. AMEX MHA 0.86 0.60 – 1.45 Drug Delivery MaxCyte, Inc. (Private Company) NA NA NA NA Cell Therapy Maxygen, Inc. NASDAQ MAXY 10.50 6.78 – 12.41 Specialty Pharmaceuticals Medgenics, Inc. (Private Company) NA NA NA NA Protein Therapy Medical Marketing International Group plc LONDON MMG LN 134.50 126.50 – 200.00 Oncology MediGene AG FRANKFURT MDG GR 5.61 5.32 – 8.49 Oncology Medivation, Inc. AMEX MDV 19.90 3.80 – 20.50 Small Molecule Technology Metabasis Therapeutics, Inc. NASDAQ MBRX 7.64 5.05 – 9.79 Chronic Diseases MIGENIX Inc. TSX MGI CN 0.58 0.38 – 0.81 Infectious Diseases Momenta Pharmaceuticals, Inc. NASDAQ MNTA 12.39 10.40 – 22.47 Specialty Pharmaceuticals MorphoSys AG FRANKFURT MOR GR 51.00 32.20 –59.25 Therapeutic Antibodies NeoMend, Inc. (Private Company) NA NA NA NA Medical Devices Neoprobe Corporation OTC BB NEOP 0.21 0.20 – 0.34 Medical Devices Neurobiological Technologies Inc. NASDAQ NTII 2.62 1.99 – 3.95 CNS Neurochem, Inc. NASDAQ NRMX 13.93 9.23 – 26.51 CNS Neuro-Hitech, Inc. OTC BB NHPI 5.20 4.75 – 10.73 CNS Newron Pharmaceuticals Spa SWX NWRN 53.50 49.25 – 61.50 CNS Nicox SA EURONEXT NICOX 16.59 16.10 – 21.97 Nitrated Compounds Novadel Pharma, Inc. AMEX NVD 1.33 1.06 – 2.00 Drug Delivery Novavax, Inc. NASDAQ NVAX 2.93 2.69 – 8.39 Infectious Diseases Novelos Therapeutics, Inc. OTC BB NVLT 1.04 0.60 – 2.00 Oncology Obecure Ltd. (Private Company) NA NA NA NA Obesity OctoPlus N.V. EURONEXT OCTO 4.90 4.44 – 6.20 Drug Delivery Oculus Innovative Sciences, Inc. NASDAQ OCLS 6.76 6.41 – 8.40 Specialty Pharmaceuticals Omrix Biopharmaceuticals, Inc. NASDAQ OMRI 38.70 10.10 – 40.90 Therapeutic Vaccines Opexa Therapeutics, Inc. NASDAQ OPXA 4.25 3.50 – 10.50 Cell Technology Optimer Pharmaceuticals, Inc. NASDAQ OPTR 9.86 7.24 – 10.65 Anti-Infective Technology Orexo AB SSE ORX 120.00 100.00 – 160.00 Drug Delivery Osteologix, Inc. OTC BB OLGX 1.03 NA Specialty Pharmaceuticals OXIS International, Inc. OTC BB OXIS 0.21 0.18 – 0.46 Diagnostic Technology PAION AG FRANKFURT PA8 GR 7.94 6.00 – 11.80 Thrombotic Diseases Palatin Technolgies, Inc. AMEX PTN 1.99 1.71 – 4.00 Drug Delivery Paratek Pharmaceuticals (Private Company)NA NA NA NA Infectious Diseases Peptech Limited ASX PTD AU 1.92 NA Peptides Pharmos Corporation NASDAQ PARS 1.44 1.36 – 2.93 Specialty Pharmaceuticals Pipex Pharmaceuticals, Inc. OTC BB PPXP 1.36 1.02 – 10.00 CNS PolyMedix, Inc. OTC BB PYMX 2.75 2.50 – 5.00 Infectious Diseases Prana Biotechnology Ltd. NASDAQ PRAN 2.55 1.30 – 4.35 Autoimmune Diseases Progenics Pharmaceuticals, Inc. NASDAQ PGNX 23.23 19.80 – 30.31 Infectious Diseases ProMetic Life Sciences, Inc. TSX PLI CN 0.42 NA Oncology Pro-Pharmaceuticals, Inc. AMEX PRW 0.88 0.24 – 4.16 Oncology Proteome Systems Ltd ASX PXL AU 0.26 NA Medical Devices Protherics PLC LONDON PTI LN 65.75 NA Oncology ReNeuron Group plc LONDON RENE LN 28.25 NA Cell Therapy Replidyne, Inc. NASDAQ RDYN 5.72 4.28 – 10.74 Anti-Infective Technology Repligen Corporation NASDAQ RGEN 3.13 2.14 – 4.17 CNS Santaris Pharma A/S (Private Company) NA NA NA NA Oncology SGX Pharmaceuticals, Inc. NASDAQ SGXP 5.71 1.74 – 11.38 Oncology Sinclair Pharma plc LONDON SPH LN 103.00 NA Specialty Pharmaceuticals Spectrum Pharmaceuticals, Inc. NASDAQ SPPI 5.74 3.36 – 7.11 Specialty Pharmaceuticals SR Pharma plc/Atugen AG LONDON SPA LN 70.75 NA Drug Delivery Starpharma ASX SPL AU 0.43 0.35 – 0.64 Nanotechnology SuperGen, Inc. NASDAQ SUPG 5.38 3.01 – 5.97 Gene Therapy Tapestry Pharmaceuticals, Inc. NASDAQ TPPH 1.75 1.42 – 4.50 Oncology The Immune Response Corporation OTC BB IMNR 1.32 0.74 – 2.10 Autoimmune Diseases

10 EQUITIES / APRIL 2007 EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 Rodman & Renshaw Conference Tour

Company Exchange Symbol Price 52-Week Price Range Sub-Sector Threshold Pharmaceuticals, Inc. NASDAQ THLD 1.57 1.42 – 16.98 Small Molecule technology , Inc. AMEX TTP 2.31 1.65 – 4.37 CNS TransOral Pharmaceuticals (Private Company) NA NA NA NA Specialty Pharmaceuticals Trinity Biotech plc NASDAQ TRIB 8.88 7.01 – 10.45 Diagnostic Technology Urigen N.A., Inc. (Private Company) NA NA NA NA Specialty Pharmaceuticals UTEK Corporation AMEX UTK 13.01 10.44 – 24.70 Technology Transfer Vasogen Inc. NASDAQ VSGN 0.40 0.27 – 2.48 Cardiovascular Diseases Ventaira Pharmaceuticals (Private Company) NA NA NA NA Specialty Pharmaceuticals VioQuest Pharmaceuticals Inc. OTC BB VQPH 0.51 0.40 – 1.15 Oncology Virexx Medical Corp. AMEX REX 0.65 0.59 – 1.47 Oncology Viventia Biotech, Inc. (Private Company) NA NA NA NA Oncology VIVUS, Inc. NASDAQ VVUS 3.93 3.18 – 4.66 Specialty Pharmaceuticals Wilex AG FRANKFURT WL6 GR 15.70 NA Oncology XOMA Ltd. NASDAQ XOMA 2.75 1.59 – 3.50 Therapeutic Antibody Technology YM BioSciences, Inc. AMEX YMI 1.69 1.25 – 6.50 Oncology York Pharma, PLC LONDON YRK LN 117.00 NA Specialty Pharmaceuticals Ziopharm Oncology, Inc. NASDAQ ZIOP 4.96 3.25 – 16.00 Oncology

* On February 1, 2007, Intellect Neurosciences, Inc. converted into a public company through merger transaction with Globepan Resources, Inc. As of yet, no share information has been made public.

Summit Global Logistics, Inc. FP Technology Holdings, Inc. Global Employment Holdings, Inc. $163,000,000 $67,000,000 $57,000,000

$65,000,000 $20,000,000 $50,000,000 Senior Credit Facility Senior Credit Facility Collateralized Acquisition Pool™ (CAP™)Notes $30,000,000 $65,000,000 Secured Convertible Notes & Warrants $7,000,000 $12,750,000 Common Stock & Warrants Secured Convertible Notes & Warrants Convertible Preferred Notes & Warrants $33,000,000 $4,250,000 Undersigned acted as placement agent Common Stock & Warrants Common Stock & Warrants for FP Technology Holdings, Inc. Undersigned acted as placement agent for Undersigned acted as placement agent Global Employment Holdings, Inc. for Summit Global Logistics, Inc.

March 30, 2006 March 31, 2006 August 15, 2006 November 8, 2006 CAP ™ ital Idea

Collateralized Acquisition Pool® (CAPTM)—is a proprietary “go-public” financing vehicle developed by Rodman & Renshaw for M&A, LBO, MBO and other recapitalization transactions. The CAPTM structure is an innovative, flexible, and cost-efficient financing method. The management teams of private companies and portfolio companies of private equity firms can use the CAPTM structure to recapitalize, acquire other businesses or implement growth strategies.

• The CAP™ structure is in the form of a private placement • Allows for preconceived deals, multiple acquisitions • Flexibility to customize your own transaction and “roll-up” strategies • Eliminates many pre-acquisition costs • Streamlines and reduces time to market

For more information on the CAPTM please contact: Craig M. Schwabe at 212.356.0524 or [email protected]

Collateralized Acquisition Pool®, CAP, 3PO and Privately Placed Public Offering are either registered trademarks or trademarks of Rodman & Renshaw, LLC. The CAP™ method is Patent Pending. Certain services described may not be available in all countries or in all states of the United States. The securities, services, products and information are for informational purposes and do not constitute an offer to buy or solicitation to sell any security or product.

EQUITIES MAGAZINE - WWW.EQUITIESMAGAZINE.COM - 1.800.709.7005 EQUITIES / APRIL 2007 11 ADVERTISING

Discover a Breakthrough in Life Sciences Investment Banking

4-

AcumenBioFinTM is focused on identifying Top 20 Agents by # of Deals 2003–2007* high-potential opportunities within the Life Rank Agent Deals Amount Raised 1. Rodman & Renshaw, LLC 126 $2,222,656,397 Sciences sector. We define ourselves by the results achieved for clients and the enduring 2. Cowen and Company, LLC 60 $1,393,660,425 3. Roth Capital Partners, LLC 41 $ 629,271,026 relationships that develop. 4. C.E. Unterberg, Towbin 29 $ 370,127,477 5. Banc of America Securities LLC 25 $ 692,437,679 Inquisitive thinking, tenacious financial 6. Leerink Swann & Co. 24 $ 928,343,658 7. Lazard 23 $ 783,859,632 innovation and a passionate work ethic are 8. Piper Jaffray & Co. 22 $ 602,053,736 intrinsic to our nature. Formulated to stand 9. Oppenheimer & Co. Inc. 20 $ 331,849,214 10. Paramount BioCapital, Inc. 20 $ 248,764,074 out as a high-performance investment bank 11. SCO Financial Group, LLC 19 $ 214,388,365 with keen insight, distinct capabilities and a 12. HPC Capital Management Corporation 17 $ 84,866,075 pure focus on Life Sciences…that’s Acumen. 13. Punk, Ziegel & Company 16 $ 399,045,590 14. ThinkEquity Partners, LLC 16 $ 337,571,244 15. First Albany Capital 16 $ 228,350,755 Creative Financial Strategies 16. UBS Investment Bank 15 $ 494,681,443 That Bring Science to Life. 17. CIBC World Markets 15 $ 477,303,210 18. Jefferies & Company, Inc. 15 $ 423,362,859 19. Canaccord Adams, Inc. 15 $ 215,955,027 20. Thomas Weisel Partners, LLC 13 $ 335,556,530 Transactions Only Represent Those Completed in Biotechnology/Life Science Sectors. (All PIPEs Excluding Structured Equity Lines and Canadian Companies) Source: Sagient Research Systems, Inc. *Totals from 01/01/03 through 03/31/07

4-

Member NASD, SIPC A division of Rodman & Renshaw, LLC 1270 Avenue of the Americas New York, NY 10020 212.430.1700 www.acumenbiofin.com

Certain services described may not be available in all countries or in all states of the United States. The securities, services, products and information are for informational purposes only and do not constitute an offer to buy or sell any security or product.