Contract Research Organizations State of the CRO Industry: Trial Enrollment Delays but Normal Cancellation Rates; CT.Gov Analysis & Biotech Funding Update

22 April 2020 Equity Research Americas | United States

Contract Research Organizations State of the CRO Industry: Trial Enrollment Delays but Normal Cancellation Rates; CT.gov Analysis & Biotech Funding Update

Life Science Tools and Diagnostics | Industry Primer

Biotech Funding: +2% 2020 YTD (-28% in March): We track multiple data points to Research Analysts measure the health of the biotech funding environment, and according to BioWorld, a comprehensive data source, biotech funding, including public and private sources, has Erin Wilson Wright increased modestly (+2%) YTD as of April 17th (to $17.6 billion), attributable to positive 212 538 4080 trends in IPOs (+8%) and private financing (+1%), partially offset by public/other (-11%). [email protected] In 1Q20, total biotech funding increased 5% (to $15.4 billion), including a meaningful Katie Tryhane deterioration in March (-28%), coinciding with COVID-19. Thus far in April, biotech funding 212 325 2713 has also dropped (-14% yoy as of April 17th). Importantly, we acknowledge y/y growth [email protected] rates reflect tough comps, and we continue to view the absolute level of funding as healthy following years of strength. Note, we emphasize that funding can stem from many sources Haley Christofides and may not be fully represented in this data. For instance, large pharmaceutical 212 325 3720 companies can represent a key source of funding for biotech companies, inherently more [email protected] insulated from broader capital markets activity than VC and public market funding. All in, Matthew Urbik the recent volatility is expected, and while this could contribute to delays in biotech pipeline 212 325 2152 decision-making and clinical trials, we have yet to see a meaningful step up cancellations. [email protected] COVID-19 Update; Delays, but no abnormal cancellation trends: While there have been no signs of an irregular level of cancellations coinciding with the pandemic, sponsors are increasingly delaying patient enrollment and new study starts, consistent with the data we have been tracking from industry constituents and our clinicaltrials.gov analysis. As of April 21st, we have identified 185 named trial delays (178)/cancellations (7) across 106 unique companies, representing 40,698 total patients. That said, it is clear that large pharma/biopharma customers want to continue to move clinical trial work forward, an encouraging dynamic that we view as underappreciated, and CROs are proactively converting site activity to remote monitoring / virtual trials, where possible, to maintain the integrity and regulatory compliance of ongoing studies. Still, COVID disruption will inevitably, albeit temporarily, slow backlog conversion, primarily in 2Q and likely into 3Q (depending on duration), in our view, with likely a gradual catch-up thereon. Net/net, we emphasize sustained R&D priorities from customers with COVID-19 disruption more of a timing issue, in our view, and we remain positively biased on the CRO sector. Of note, we recently caught up with IQVIA (IQV, Outperform) and Syneos Health (SYNH, Outperform) (see notes: SYNH: Catching up with SYNH; COVID-19 Update, IQV: Catching up with IQV), to discuss COVID-19 dynamics and implications for the CRO industry. 1Q Data Points from CT.gov: We track all active and closed studies registered on the clinicaltrials.gov database by location, sponsor, and lead investigator for leading CROs. According to our analysis, PRXL was the most active in 1Q, adding 12 trials, followed by LH (CVD) (11), PPD (9), PRAH (8), IQV (7), SYNH (3), and MEDP (2). Furthermore, our analysis showed two terminations: PPD (1) and PRXL (1); two withdrawals: PRXL (1) and PRAH (1); and two suspensions: PRAH (1) and IQV (1) across the CROs that we track. We have provided additional detail on respective cancellations herein. In 1Q20, PRXL led the way with 110 enrollees per newly registered trial across its 61 trials.

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURE AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

22 April 2020

COVID-19 Impact on CROs Credit Suisse Clinical Trial Tracker—Pinpointing Study Delays: To monitor the clinical trial landscape, we track clinical trial delays and relevant commentary from industry constituents to identify the scope and severity of potential disruption from COVID-19. As of April 21st, we have identified 185 named trial delays (178)/cancellations (7) across 106 unique companies, representing 40,698 total patients. Note: the number of trials and patients quoted understates the actual totals as certain companies (i.e. Pfizer) have not disclosed specific studies impacted. Sponsor decisions to delay enrollment/study starts is primarily driven by: (1) the ability to recruit patients, (2) mitigating the potential of a compromised patient cohort (i.e. having to replace patients participating in an ongoing study), and (3) shoring up resources and capacity to alleviate stress on the broader healthcare system. While the bulk of study start-ups will inevitably be delayed, importantly, CROs can also adapt and pull forward work for CRAs (i.e. regulatory work), and potential change orders from extended trials could be a mitigating factor. See our most recent CRO note (CRO Download: COVID-19 in Focus) for further discussion on COVID-19 implications for the CRO industry. Notable delays includes: Pfizer Delaying Clinical Trial Recruitment: According to Reuters, Pfizer is delaying recruitment for all new and ongoing clinical trials for three weeks (as of March 25th) due to COVID-19. Despite the significant presence of Pfizer in the pharmaceutical industry, its reported delays have been among the least well documented across the industry, making it challenging to quantify their magnitude and potential impact on CROs. That said, we would highlight ICLR, PPD, Parexel and SYNH as four CROs that have preferred partnerships with Pfizer. Bristol-Myers Squibb Letter to Clinical Trial Investigators: In response to the FDA’s guidance on conducting clinical trials, Bristol-Myers Squibb published a letter to clinical trial investigators (see link) detailing its plan for managing the disruption of COVID-19 and how it intends to conduct clinical trials. Focal points of its letter include protocol for ongoing studies and new studies. For ongoing studies, it is permitting existing sites to continue recruiting new patients if certain condition are fulfilled. That said, it will not activate any new locations until April 13th at the earliest. For new studies, it is temporarily halting initiating any new studies until April 13th at the earliest. Lexicon Terminating Two Studies: On 3/19, Lexicon closed out two phase III studies of sotagliflozin (SCORED and SOLOIST). In a press release, Lexicon noted the decision to close out the studies was based on its assessment that sufficient near-term funding from its partnership with Sanofi was unlikely. Moreover, it sited uncertainties relating to the effects of COVID-19 on the trials. Importantly, the study sizes were significant, with SCORED recruiting 10,558 patients across 754 sites and SOLOIST recruiting 4,000 patients across 466 sites. Note, the CROs involve were not disclosed. COVID-19’s Impact on Clinical Trials: STAT Reports conducted a survey from March 12th through13th where it asked clinical trials sites the degree to which they expect to be impacted by COVID-19. Key takeaways include: o 1/3rd of clinical trial sites expect COVID-19 will have a “big or extremely big” impact on their ability to recruit patients or maintain existing enrollment levels o 39% of 170 clinical trial sites surveyed in the US believe patients will be less likely to enroll in new trials o 25% of current sites expect patients to be much less or somewhat less willing to continue their participation in trials o Academic sites reported retaining patient enrollment as their biggest challenge o While there are preventative measures to maintain clinical trials, there seems to be a disconnect between CROs and pharma companies in actually implementing these preventative tools

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Clinical Trial Enrollment Trends: Since February 2020, Medidata Solutions has been tracking clinical trial patient enrollment across 4,599 studies representing a combined patient population of 182,321. Through its tracker, it is able to quantify COVID-19’s impact on recruitment by country and therapeutic area. Figure 1 illustrates the y/y enrollment differences for the months of February and March. In the month of February, the most dramatic decelerations in recruitment were China (-83%), South Korea (-64%), and Japan (-62%). In March, India (-84%), United Kingdom (-80%), and France (-68%) experienced the sharpest declines. By therapeutic area in March, Endocrine (-81%), CNS (-69%), and Cardiovascular (- 69%) were most acutely affected. While enrollment trends are down significantly, it’s encouraging to see the rebound in the countries that were first impacted by the pandemic. Importantly, China, Japan, South Korea, and Italy have all experienced notable improvements in March, leaving us more optimistic in a broader global recovery.

Figure 1: Clinical Trial Patient Enrollment by Country and Therapeutic Area Y/Y Difference Feb-20 Mar-20 % change All Countries & TAs All - -65.1% - China -83.0% -67.5% 23% United States -62.0% -66.7% -7% Japan -62.0% -43.5% 43% India - -83.9% - South Korea -64.0% -62.1% 3% Country Breakdown France -61.0% -68.2% -11% Italy -60.0% -52.3% 15% Germany - -32.5% - Spain - -68.1% - United Kingdom - -80.1% - Respiratory - -33.7% - ID - -46.7% - Oncology - -48.4% - TA Breakdown Dermatology - -64.0% - CNS - -68.5% - Cardiovascular - -68.7% - Endocrine - -80.5% -

Source: Company data, Credit Suisse estimates, Medidata Solutions

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Figure 2: COVID-19 Related Clinical Trial Delays and Cancellations (1 of 4)

# of Delayed / Date Sponsor Drug Phase Age Range NCT Code Indication Details / Commentary Patients Terminated Announced Due to the reprioritization of emergency room resources due to COVID-19, the phase II Sensorion SENS-401 II 458 Adults NCT03603314 SSHL Delayed Audible-S trial is recruiting patients at a slower pace than expected; company has revised its 3/13/2020 estimate for top-line data readout to mid-year 2021 Pausing the randomization of patients into its global phase III Protech study; those undergoing Provention Bio Inc. PRV-031 II 30 Adults NCT04270942 Type 1 diabetes Delayed 3/16/2020 study therapy will be allowed to complete their course. Modifying its pivotal phase III trial to protect patients from COVID-19 by reducing the number Adial Pharmaceuticals Inc. AD-04 III 290 >18 yrs NCT04101227 Alcohol use disorder Delayed 3/17/2020 of in-person visits to clinical sites and using tele-medicine Pausing new patient screening for at least a four-week period in the Sequoia and Arrowhead Pharmaceuticals Inc. ARO-AAT II 120 18-75 yrs NCT03945292 Alpha-1 liver disease Delayed AROAAT2002 studies as many patients have compromised lung function and/or impaired liver 3/17/2020 function and are at increased risk for COVID-19. Delaying the initiation of enrollment of patients in the second pivotal clinical trial, ISEE2008, for Iveric Bio Inc. Zimura II 200 >50 yrs NCT02686658 Macular degeneration Delayed 3/18/2020 the novel complement C5 inhibitor; it was on track to begin in March 2020 With 109 out of a target 120 participants already dosed in a phase II study, the trial has been Synairgen plc SNG-001 II 130 40-85 years NCT03570359 COPD Delayed 3/18/2020 paused to minimize infection risk Postponing the start of the registration efficacy and safety trial, Study 301, as the intended Addex Therapeutics Dipraglurant II 83 30-75 yrs NCT01336088 Parkinson's disease Delayed patient population is among the highest risk category for severe illness and death associated 3/18/2020 with COVID-19 Postponing its planned phase II trial at the Karolinska Institute's Academic Specialist Center in Geneuro SA Temlimab II Unknown Unknown Unknown Multiple sclerosis Delayed Stockholm to prioritize healthcare resources behind the fight of COVID-19 and to reduce the 3/19/2020 risk for MS patients III 1,000 >18 yrs NCT04124926 Erosive esophagitis Delayed Pausing new patient randomization in its Phalcon-EE and Phalcon-HP clinical trials due to Phathom Pharmaceuticals Inc. Vonoprazan 3/19/2020 III 975 >18 yrs NCT04167670 H. pylori infection Delayed global efforts to combat COVID-19

III 10,558 >18 yrs NCT03315143 Type 2 Diabetes Mellitus Terminated The decision to close out the studies early is based on the company’s assessment that a near- Zynquista Lexicon Pharmaceuticals, Inc. term partnership sufficient to fund the studies to completion is now unlikely, together with 3/19/2020 (sotagliflozin) III 4,000 18-85 yrs NCT03521934 Heart Failure Terminated uncertainties relating to the effects of the COVID-19 pandemic on the trials. Accelerating completion of the Advance-1 phase II/III trialt; randomization have concluded and Alzheimer's disease Axsome Therapeutics Inc. AXS-05 II / III 435 65-90 yrs NCT03226522 Delayed trial participation is ending to ensure patient safety during COVID-19; topline results are 3/20/2020 agitation expected early in the second quarter, instead of 3Q20 Company posted a letter to clinical investigators suspending new site activations for ongoing Bristol Myers Squibb Co. Various II / III Various Various Various Various Delayed trials, as of March 20 through April 13 and possibly later; sites for new studies will not be 3/20/2020 activated globally, and studies involving healthy volunteers should not initiate The clinical study sites have elected to temporarily halt enrollment and first treatment of TheralaseTechnologies Inc. TLD-1433 II 125 >18 yrs NCT03945162 NMIBC Delayed 3/20/2020 patients inStudy II, pending resolution of COVID-19. Start of the phase I trial of the cKIT tyrosine kinase inhibitor in healthy volunteers id delayed Forty Seven Inc. FSI-174 I Unknown Unknown Unknown Hematologic cancer Delayed 3/20/2020 due to COVID-19 II 75 18-75 yrs NCT03077412 Crohn's Disease Delayed II 110 18-75 yrs NCT03207815 Noninfectious Uveitis Delayed It was decided to pause enrollment into the filgotinib trials in order to help protect patient III 1,320 18-75 yrs NCT02914561 Crohn's Disease Delayed safety. This includes the Phase 2 and Phase 3 trials of filgotinib in Crohn’s disease Galapagos NV Filgotinib III 390 18-75 yrs NCT04115839 Psoriatic Arthritis Delayed 3/22/2020 (DIVERSITY), the Phase 3 in psoriatic arthritis (PENGUIN), the Phase 2 trial in uveitis, and the III 1,001 18-75 yrs NCT04115748 Psoriatic Arthritis Delayed MANTA and MANTA-RAy trials. II 250 18-75 yrs NCT03926195 Rheumatoid Arthritis Delayed II 250 21-65 yrs NCT03201445 IBD Delayed Serenity and Reborn activities are being slowed by COVID-19; the phase III Serenity study is Caumz (REBORN) II 60 18+ yrs NCT03564548 Cancer pain Delayed testing the cannabinoid drug in advanced cancer pain, while Reborn is a phase II program 3/23/2020 testing Caumz vs. fentanyl in breakthrough pain in cancer patients Tetra Bio-Pharma Inc. Serenity and Reborn activities are being slowed by COVID-19; the phase III Serenity study is Caumz III 334 18+ yrs NCT04001010 Cancer pain Delayed testing the cannabinoid drug in advanced cancer pain, while Reborn is a phase II program 3/23/2020 (SERENITY) testing Caumz vs. fentanyl in breakthrough pain in cancer patients AUTO4 II / III 55 18-75 yrs NCT03590574 Lymphoma Delayed Autolus Limited AUTO1 I / II 15 18-75 yrs NCT03455972 Safety and Efficacy Delayed AUTO3 I / II 146 18+ yrs NCT03287817 Lymphoma Delayed All the pipeline assets of the listed biotech companies are owned by Syncona, a healthcare FLT180a II / III 50 18+ yrs NCT03641703 Hemophilia B Delayed investment firm. In a March 23 press release, it noted it anticipates at least three months delay 3/23/2020 Freeline Therapeutics FTL190 I / II 15 18+ yrs NCT04040049 Fabry Disease Delayed to trials across a number of clinical programs in its portfolio due to COVID-19. FLT 200/201 Preclinical 200 18+ yrs NCT04272554 Gaucher Disease Delayed Achilles Therapeutics ATL001 I / II 20 18+ yrs NCT03997474 Melanoma Delayed COVID-19 is resulting in meaningful delays for its pediatric trial of the intravenous recombinant Medexus Pharmaceuticals Inc. Ixinity III 22 <12 yrs NCT03855280 Hemophilia B Delayed 3/23/2020 factor IX therapeutic Lizagolix III 450 Screening and randomization in ongoing Edelweiss 2 and 3 trials is placed on voluntary hold Obseva SA 18-49 yrs NCT03986944 Endometriosis Delayed 3/23/2020 OBE2109 II 328 due to COVID-19; Linzagolix is a GNRH receptor antagonist Initiated an open-label extension of its phase II, but sites may slow pace of enrollment to Cassava Sciences Inc. PTI-125 II 60 80-85 yrs NCT04079803 Alzheimer's disease Delayed 3/25/2020 minimize risk of exposure to coronavirus Enrollment delay expected in ambulance-based PHAST-TSC trial of the Vitamin A analogue Diffusion Pharmaceuticals Inc. TSC II 160 70-85 yrs NCT03763929 Acute stroke Delayed 3/25/2020 due to COVID-19 Enrollment in phase II program temporarily paused due to COVID-19 pandemic; ELX-02 is a Eloxx Pharmaceuticals Inc. ELX-02 II 8 18+ yrs NCT04135495 Cystic fibrosis Delayed 3/25/2020 CFTR gene modulator COVID-19 has affected the opening of new trial sites and new patient enrollment in the PCI Biotech AS Fimachem II 186 18+ yrs NCT04099888 Bile duct cancer Delayed 3/25/2020 Release study Initiation of the pivotal phase III trial is delayed by one quarter to the third quarter of this year Redhill Biopharma Ltd RHB-204 III Unknown Unknown Unknown NTM Delayed 3/25/2020 due to the COVID-19 virus outbreak Company is preparing for phase III initiation as soon as the COVID-19 situation permits and Valneva SE VLA1553 I 120 18-45 yrs NCT03382964 Chikungunya Delayed 3/25/2020 potentially in the fourth quarter of 2020 Postponing procedures of the first two enrolled patients in the Phase I/II trial due to the impact Uniqure NV AMT-130 I / II 26 25-65 yrs NCT04120493 Huntington's disease Delayed 3/26/2020 of COVID-19 Due to COVID-19, pausing for three weeks the recruitment portion of new and ongoing clinical Pfizer Inc. Various Various Various Various Various Various Delayed studies, including those for oncology and for its Duchenne muscular dystrophy gene therapy 3/26/2020 program Source: Company data, Bioworld, clinicaltrials.gov, EvaluatePharma, Credit Suisse estimates, OutsourcingPharma

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Figure 3: COVID-19 Related Clinical Trial Delays and Cancellations (2 of 4)

# of Delayed / Date Sponsor Drug Phase Age Range NCT Code Indication Details / Commentary Patients Terminated Announced OSE-127 I / II 63 18-65 yrs NCT03980080 Sjögren’s syndrome Delayed Initiation of both phase II trials in 2020 is subject to the evolution of the COVID-19 situation 3/26/2020 Patient screening and accrual in the Tedopam study are expected to be impacted by the Tedopi III 363 >18 yrs NCT02654587 Pancreatic Cancer 3/26/2020 OSE Immunotherapeutics COVID-19 situation in the coming months Phase I trial is expected to be impacted by COVID-19 with regard to the screening and BI-765063 I 116 >18 yrs NCT03990233 Solid Tumors Delayed 3/26/2020 accrual of new patients in the second quarter of 2020 Danicamtiv I / II 64 18-80 yrs NCT03447990 Cardiomyopathy Delayed Studies that were planned to initiate in 2H20 will be delayed until conditions change, including Mavacamten II 60 >18 yrs NCT03442764 Heart Conditions Delayed the VALOR-HCM Phase 3 clinical study of mavacamten, the Phase 2 study for mavacamten, Myokardia Inc. 3/26/2020 Mavacamten II / III 310 >18 yrs NCT03723655 Heart Conditions Delayed and the Phase 2 study of Danicamtiv. The company has paused the enrollment of healthy Mavacamten I Unknown Unknown Unknown Heart Conditions Delayed volunteers in the Phase 1 clinical trial evaluating MYK-224. COVID-19 is impacting enrollment of new patients in the phase III trial due primarily to certain Ironwood Pharmaceuticals Inc. IW-3718 III 660 >18 yrs NCT03561883 GERD Delayed 3/26/2020 sites suspending enrollment and lower patient participation. LentiGlobin for β- III 23 <50 yrs NCT02906202 Beta-Thal Delayed Based on the status of these ongoing discussions with the FDA and the expected COVID-19 thalassemia related shifts, Bluebird Bio does not anticipate completing the rolling BLA submission for Lenti-D for CALD III 35 <17 yrs NCT03852498 CALD Delayed LentiGlobin for β-thalassemia until mid-2021 (Q2/Q3 Bluebird Bio Ongoing clinical studies of LentiGlobin for β-thalassemia, LentiGlobin for SCD, Lenti-D for 3/26/2020 BB305 I / II 50 12-50 yrs NCT02140554 SCD Delayed CALD as well as the study of bb21217 for multiple myeloma all currently remain active, but the effects of the COVID-19 pandemic is resulting in disruptions to study conduct across these bb21217 I 74 >18 yrs NCT03274219 Multiple myeloma Delayed programs. KarMMa-2 II 181 >18 yrs NCT03601078 Multiple Myeloma Delayed BMS disclosed, it has temporarily suspended screening, enrollment and apheresis in their BMY / CELG KarMMa-3 III 381 >18 yrs NCT03651128 Multiple Myeloma Delayed 3/26/2020 cellular therapy clinical studies. Includes the KarMMa-2, KarMMa-3 and KarMMa-4 studies. KarMMa-4 I 60 >18 yrs NCT04196491 Multiple Myeloma Delayed Company has observed a decrease in patient screening and enrollment in the phase III trial as Aprea Therapeutics Inc. APR-246 III 156 >18 yrs NCT03745716 MDS Delayed 3/26/2020 a result of COVID-19 Given the potential for increased respiratory risk from COVID-19 for future participants in this DCR-A1AT I / II 60 18-70 yrs NCT04174118 Liver disease Delayed 3/26/2020 trial, the company expects a pause in enrollment at higher doses is likely. Dicerna Pharmaceuticals, Inc. Based on current enrollment and temporary suspension of further clinical trial activities at PHYOX2 II 36 >6 yrs NCT03847909 Primary Hyperoxaluria Delayed 3/26/2020 multiple sites, it no longer expects to complete enrollment in PHYOX2 in 2Q20 Due to the COVID-19 pandemic, the the company anticipates related interruptions in Translate Bio Inc. MRT-5005 I / II 40 >18 yrs NCT03375047 Cystic Fibrosis Delayed 3/27/2020 enrollment, dosing and follow-up in the ongoing Phase 1/2 clinical trial in patients with CF. In order to ensure patient safety and the appropriate use of healthcare resources and to Vertex Pharmaceuticals Various Various Various Various Various Various Delayed maintain study integrity, we have made proactive changes to some of our ongoing and planned 3/27/2020 clinical trials. Due to the exceptional circumstances related to the COVID-19 global pandemic, Les UCART19 (PALL) I 18 <17 yrs NCT02808442 Leukemia Delayed Laboratoires Servier SAS and Institut de Recherches Internationales Servier SAS (collectively, 3/27/2020 UCART19 (CALM) I 30 16-69 yrs NCT02746952 Leukemia Delayed Allogene Therapeutics, Inc. “Servier”) has informed Allogene Therapeutics, Inc. (“Allogene”) of its decision to halt ALLO-501 I 54 >18 yrs NCT03939026 Relapsed/Refractory FL Delayed Enrollment of new patients in both the ALPHA trial and UNIVERSAL trial and the ability to 3/27/2020 ALLO-715 I 90 >18 yrs NCT04093596 Multiple myeloma Delayed conduct patient follow-up will likely be impacted by the COVID-19 pandemic. AK-3280 I 36 18-45 yrs NCT03990688 IPF Delayed Ark CEO said the company had to pause some of its clinical studies because research Ark Biosciences Inc. Ziresovir III 249 1-24 months NCT04231968 Respiratory syncytial virus Delayed 3/27/2020 associates could not get to the hospitals due to the COVID-19 pandemic AK0529 II 160 18-75 yrs NCT03699202 Respiratory syncytial virus Delayed Aveo Oncology Inc. Ficlatuzumab II 0 18-75 yrs NCT04100330 MS / leukemia Terminated CyFi-2 phase II study discontinued due to COVID-19 pandemic 3/27/1930 Bemcentinib II 43 >18 yrs NCT03824080 Lung cancer / leukemia Delayed Measures taken to reduce the spread of COVID-19 are expected to impact patient recruitment Bergenbio ASA 3/27/2020 Bemcentinib II 77 >18 yrs NCT03184571 Lung cancer / leukemia Delayed in clinical studies, including the phase II trial, and will extend previously anticipated timelines As a result of COVID-19, it decided to pause enrollment of Phase 1b clinical trial of itolizumab Equillium Inc. EQ-001 I / II 84 >12 yrs NCT03763318 EQUATE Delayed 3/28/1930 (EQ001) in uncontrolled asthma and the Phase 1b trial of itolizumab EDP-305 II 134 18-75 yrs NCT03421431 NASH Delayed Pausing further recruitment in Part 2 of our Phase 1a/1b study of EDP-514 in nuc-suppressed Enanta Pharmaceuticals Inc. 3/28/2020 EDP-514 I 98 18-70 yrs NCT04008004 Chronic HBV Infection Delayed hepatitis B (HBV) patients, which initiated earlier this quarter. Enrollment in the JUNIPER Phase 2 adult upper limb spasticity trial is paused due to Revance Therapeutics Inc DAXI (JUNIPER) II 128 18-75 yrs NCT03821402 Upper Limb Spasticity Delayed 3/28/2020 challenges in subject assessments during time of required social distancing. mRNA-1944 I 62 18-80 yrs NCT03829384 Chikungunya Delayed mRNA-3704 I / II 34 >1 yr NCT03810690 Methylmalonic Acidemia Delayed Delaying new enrollment for its phase I rare disease clinical trials due to COVID-19. mRNA-3927 I / II 46 >1 yr NCT04159103 Propionic Acidemia Delayed Moderna, Inc. mRNA-1653 I 114 12-49 yrs NCT04144348 hMPV /PIV3 Delayed 3/29/2020 mRNA-1647 II 252 18-40 yrs NCT04232280 Cytomegalovirus Delayed Moderna noted that two rare disease trials (mRNA-1647, ph2) and (mRNA-1893, ph1) are fully enrolled, but they will experience delays in dosing patients involved in the trials. mRNA-1893 I 120 12-49 yrs NCT04064905 Zika Delayed

AVR-RD-01 I / II 12 16-50 yrs NCT03454893 Fabry disease Delayed Cryopreserved drug product for patients have been manufactured and dosing is currently AVROBIO, Inc. anticipated for 2Q20 but is dependent on when the clinical site allows. New patient dosing is 3/30/2020 AVR-RD-02 I / II 16 16-35 yrs NCT04145037 Gaucher Disease Delayed anticipated in the 2H20 , as hospitals allow.

SYNB1618 I / II 70 18-64 yrs NCT03516487 PKU Delayed Expects that enrollment of subjects into its planned Phase 2 clinical study of SYNB1618 will be Synlogic Inc. delayed and expects slower enrollment of new subjects into its ongoing Phase 1 clinical trial of 3/30/2020 SYNB1891 I 70 >18 yrs NCT04167137 Lymphoma Delayed SYNB1891. Due to COVID-19 it has experienced an impact to select clinical trial sites during the month of Oyster Point Pharma Inc. OC-1 (ONSET-1) II 182 >22 yrs NCT03636061 Dry eye disease Delayed March where ophthalmology practices were closed, or subjects were unable to attend protocol 3/30/2020 specified visits. This impact was limited primarily to Day 28 study visits Temporarily suspended the initiation of additional clinical sites and new patient enrollment in Mediwound Ltd. EscharEx II 175 18-90 yrs NCT03588130 Venous leg ulcer Delayed 3/30/2020 our U.S. EscharEx phase 2 study Mucosal pemphigus Anticipates a delay in reporting the acute safety data from the first cohort in DesCAARTes trial Cabaletta Bio Inc. DSG3-CAART I Unknown Unknown Unknown Delayed 3/30/2020 vulgaris due to COVID-19 pandemic Anticipating delays in the completion of the CB4-211 phase Ib study as a result of a pause by Cohbar Inc. CB4211 I 86 18-60 yrs NCT03998514 Liver Disease Delayed 3/30/2020 some CRO partners in response to the COVID-19 pandemic

Various inflammatory While current clinical trial sites remain active, it is possible that sites have paused or will pause Inflarx NV IFX-1 N/A N/A N/A N/A N/A 3/31/2020 indications screening of new patients; there may be other delays or as the pandemic evolves

Expects a delay in the start of its planned studies, due to the prioritiation of hospital staff to Newron Pharmaceuticals SpA Evenamide I 6 30-65 yrs NCT03446274 Schizophrenia Delayed 3/31/2020 care for COVID-19 patients over research studies Source: Company data, Bioworld, clinicaltrials.gov, EvaluatePharma, Credit Suisse estimates, OutsourcingPharma

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Figure 4: COVID-19 Related Clinical Trial Delays and Cancellations (3 of 4)

# of Delayed / Date Sponsor Drug Phase Age Range NCT Code Indication Details / Commentary Patients Terminated Announced OTL-201 Unknown Unknown Unknown Unknown Type 1 diabetes Delayed OTL-103 II 6 <65 yrs NCT03837483 Wiskott-Aldrich Syndrome Delayed Orchard Therapeutics plc Delaying its exploratory clinical study due to the COVID-19 outbreak 3/31/2020 OTL-200 II 6 Any NCT04283227 MLD Delayed OTL-101 I / II 10 <17 yrs NCT03765632 Ada-Scid Delayed Verona Pharma RPL554 II 40 40-80 yrs NCT04091360 COPD Delayed Enrollment in part B of its phase II trial delayed due to COVID-19 pandemic 3/31/2020 Aim to initiate the Phase 3 confirmatory trial in ALS as soon as conditions at U.S. clinical sites AB Science SA Masitinib III 495 18-81 yrs NCT03127267 ALS Delayed 3/31/2020 stabilize post-the coronavirus pandemic MAT9001 II 100 >18 yrs NCT04177680 Hypertriglyceridemia Delayed Temporarily paused enrollment in the ENHANCE-IT trial Matinas Biopharma Clinical investigators informed it that recruitment of new clinical trial participants in Uganda 3/31/2020 EnACT I / II 176 >18 yrs NCT04031833 Cryptococcal Meningitis Delayed was to be immediately suspended as a result of the global COVID-19 Pandemic. Paused new patient recruitment for its Phase 2 trial of ORP-101 for treatment of irritable bowel Orphomed Inc. ORP-101 II 320 18-75 yrs NCT04129619 IBS-D Delayed 3/31/2020 syndrome with diarrhea (IBS-D) in response to the COVID-19 pandemic. Seeing a significant reduction in new patient enrollment for numerous reasons related to the Xenon Pharmaceuticals Inc. XEN1101 II 300 18-75 yrs NCT03796962 Epilepsy Delayed 3/31/2020 COVID-19 pandemic SER-109 III >18 yrs NCT03183128 AK-3280 Delayed The Company has decided to halt enrollment as a result of the COVID-19 pandemic 3/31/2020 SER-287 development activity has been adversely impacted by multiple clinical sites halting Seres Therapeutics Inc. SER-287 II 201 18-80 yrs NCT03759041 Ulcerative Colitis Slowed non-essential procedures, including endoscopies, which may make it difficult to achieve the 3/31/2020 SER-401 I 30 >18 yrs NCT03817125 Metastatic Melanoma Slowed original enrollment target in H2 2020 as planned. bardoxolone Pulmonary Arterial In consideration of the risk of severe, adverse outcomes associated with COVID-19 among III 202 18-75 yrs NCT02657356 Terminated (CATALYST) Hypertension patients with respiratory and autoimmune diseases, the has decided to stop the Phase 3 CATALYST study of bardoxolone methyl (bardoxolone) in patients with (CTD-PAH. 3/31/2020 bardoxolone Reata Pharmaceuticals Inc. III 414 18-85 yrs NCT03068130 Pulmonary Hypertension Terminated Concomitant with the close of CATALYST, the Company is also closing RANGER, the open- (RANGER) label extension study of bardoxolone in patients with PAH. bardoxolone III 300 18-750 yrs NCT03918447 ADPKD Delayed The company temporarily paused enrollment of new patients in the Phase 3 FALCON trial 3/31/2020 (FALCON)) The company has temporarily paused enrollment of new patients in its Phase 2b study of Pulmonary Arterial Phasebio Pharmaceuticals Inc. PB1046 II 63 18-79 yrs NCT03795428 Delayed PB1046 as a precaution to minimize potential exposure of this patient population at high risk of 3/31/2020 Hypertension serious illness from COVID-19.

The extent to which the COVID-19 pandemic will interfere with collection of the remaining Akero Therapeutics AKR-001 II 110 18-80 yrs NCT03976401 NASH Delayed biopsies and data from other scheduled clinical visits, including the safety follow-up visit at 3/31/2020 week 20, is unclear. Delaying the planned initiation of the BALANCED study cohort

Elafibranor I 24 18-75y rs NCT03844555 Renal Impaired Delayed All phase 1 trials have been put on hold. Enrollment of patients in the PK/PD trial in pediatric Elafibranor I 30 >18 yrrs NCT04171752 Geriatrics Delayed patients with NASH as well as the Phase 2 study addressing liver fat have also been paused.It Genfit Elafibranor I 28 18-50 yrs NCT03985969 Drug-drug Interaction Delayed 3/31/2020 has also put on hold the initiation of the Phase 2 combination study, as well as that of the Elafibranor II 16 40-75 yrs NCT03953456 NAFL Delayed Phase 3 study in patients with PBC. Elafibranor II 20 8-17 yrs NCT03883607 NASH Delayed QR-421a I / II 18 >18 yrs NCT03780257 Retinitis Pigmentosa Delayed In consultation with the trial sites, due to the COVID-19 pandemic the Company also expects a ProQR Therapeutics QR-1123 I / II 35 >18 yrs NCT04123626 Retinitis Pigmentosa Delayed delay in all of its ongoing and scheduled trials, including the pivotal trial of sepofarsen for 3/31/2020 QR-110 II / III 30 >8 yrs NCT03913143 LCA Delayed Leber congenital amaurosis 10. Pausing new patient enrollment and new site activation in the Proclaim-CX-2009-001 study CX-2009 I / II 150 >18 yrs NCT03149549 Cancer Delayed 3/31/2020 evaluating the CD166-targeting probody drug conjugate Cytomx Therapeutics Inc. Terminating the Proclaim-CX-072-002 study evaluating the PD-L1 probody CX-072 in combination with Yervoy, following a re-evaluation of the clinical, competitive and commercial CX-072 II 160 >18 yrs NCT03993379 Melanoma Terminated 3/31/2020 landscapes, as well as the impact of COVID-19; the decision frees up resources for other projects ATOR-1015 I 53 >18 yrs NCT03782467 Metastatic cancer Delayed Alligator Bioscience AB Temporarily halted recruitment of new patients due to COVID-19 4/1/2020 ATOR-1017 I 50 >18 yrs NCT04144842 Metastatic cancer Delayed Zilretta II 250 35-80 yrs NCT04160091 Osteoarthritis Delayed Suspending the phase II trial temporarily to ensure patient safety during the COVID-19 Flexion Therapeutics Inc. 4/1/2020 FX-201 I 24 35-80 yrs NCT04119687 Osteoarthritis Delayed pandemic

As a result of the suspension of clinical-trial activity by a number of sites stemming from the Fulcrum Therapeutics Inc. Losmapimod II 76 18-65 yrs NCT04264442 FSHD Delayed COVID-19 pandemic, the company is sessing the impact to the Redux4 phase IIb clinical trial, 4/2/2020 including whether it will have topline data for the primary endpoint by the end of 3Q20

Myelodysplastic Due to COVID-19, the company does not expect to complete enrollment in the Imerge phase Geron Corp. GRN163L III 225 >18 yrs NCT02598661 Delayed 4/2/2020 Syndromes III trial or to begin the proof-of-concept study in high-risk MDS and AML by the end of 2020

Monitoring of enrolled participants and retreatment in open-label extension of phase Ia Atara Biotherapeutics Inc. ATA-188 I 97 18-65 yrs NCT03283826 MS Delayed 4/2/2020 continue; screening and enrollment of phase Ib participants paused due to COVID-19

Omadacycline I 16 >18 yrs NCT04144374 Wound Infection Delayed Completed enrollment of 758 patients in the Onset-2 phase III study; data expected by the end Paratek Pharmaceuticals of the second quarter of 2020; day 28 data impacted by COVID-19, which is predicted to 4/2/2020 Omadacycline I 30 >18 yrs NCT04160260 Pneumonia Delayed reduce power for primary endpoint to 99% Eiger Biopharmaceuticals Inc. D-LIVR III 400 >18 yrs NCT03719313 Hepatitis Delayed Completion of D-LIVR study enrollment shifted into 2021 due to COVID-19 4/2/2020 Helix Biopharma Corp. L-DOS47 I / II 20 >18 yrs NCT04203641 Pancreatic cancer Delayed Given the COVID-19 pandemic, the company expects patient enrollment will be impacted 4/2/2020 Misonix Inc. Wound products Various Various Various Various Damaged tissue Delayed Pausing a number of wound studies 4/2/2020 M-254 I/ II 70 18-64 yrs NCT03866577 ITP Delayed Most sites suspended enrollment in ongoing phase I/II trial due COVID-19; interim data for part Momenta Pharmaceuticals Inc. 4/2/2020 M-281 II 15 >18 yrs NCT03842189 Hemolytic disease Delayed B may not report as planned in 2Q20 which would delay initiation of parts C and D Recruitment being delayed due to COVID-19; company expects existing financing will cover Rhovac AB RV-001 II 180 >18 yrs NCT04114825 Prostate Cancer Delayed 4/2/2020 the expected delay; Antigen-based cancer therapy Xplore study remains open with 355 of 580 patients enrolled, but COVID-19 makes forecasting Xbrane Biopharma AB Xlucane III 580 >50 yrs NCT03805100 Macular degeneration Delayed 4/2/2020 future recruitment rate challenging Enrollment in phase I and phase Ib studies paused due to COVID-19; analyzing data from DNL-151 I 34 30-75 yrs NCT04056689 Parkinson’s Delayed 4/3/2020 studies; plans to select DNL-151 or DNL-201 for phase II/III development by mid-2020 Denali Therapeutics Inc. Phase I study remains on track to start in the second quarter; enrollment in observational DNL-310 I / II 16 2-18 yrs NCT04251026 Hunter syndrome Delayed 4/3/2020 biomarker study paused due to COVID-19 DNL-343 I 88 18-50 yrs NCT04268784 Safety and Efficacy Delayed Phase I enrollment paused due to COVID-19 4/3/2020 Source: Company data, Bioworld, clinicaltrials.gov, EvaluatePharma, Credit Suisse estimates, OutsourcingPharma

Contract Research Organizations 6

22 April 2020

Figure 5: COVID-19 Related Clinical Trial Delays and Cancellations (4 of 4)

# of Delayed / Date Sponsor Drug Phase Age Range NCT Code Indication Details / Commentary Patients Terminated Announced Crinecerfont II 42 40-75 yrs NCT03562494 Parkinson Delayed Phase II enrollment paused due to COVID-19 4/3/2020 Neurocrine Biosciences Inc. Ingrezza III 120 18-75 yrs NCT04102579 Chorea, Huntington Delayed Phase III enrollment paused due to COVID-19 4/3/2020 Restorbio Inc. RTB-101 III 0 >65 yrs NCT04139915 Parkinson's disease Delayed Postponing enrollment of fifth cohort in the phase I due to COVID-19 4/3/2020 C-Scan Preclinical 60 20-75 yrs NCT03989180 Cancer Delayed C-Scan Preclinical 45 40-80 yrs NCT03735407 Cancer Delayed Expects clinical trials will be suspended until at least June 2020; commencement of the pivotal Check-Cap Ltd. 4/6/2020 C-Scan Preclinical 300 40-80 yrs NCT04038736 Cancer Delayed trial is expected to be pushed into 2021 Preclinical 100 40-80 yrs NCT03785665 Cancer Delayed Many of its participating clinical trial hospital sites in the U.S. have suspended enrollment and INTERCEPT III 600 >18 yrs NCT03037164 Blood disorders Delayed 3 of the 4 blood center partners that produce pathogen-reduced RBCs for these studies have Cerus Corp. 4/6/2020 suspended production; plans to continue the study enrollment at the sites still open and will INTERCEPT Preclinical 12 >18 yrs NCT03384407 Blood disorders Delayed look to reinitiate enrollment at all study sites as quickly as possible Enrollment in Travers phase II trial halted in March 2020 after sites reduced or suspended Auris Medical AG NCT03908567 II 138 18-65 yrs NCT03908567 Vestibular Vertigo Delayed research activities due to COVID-19 pandemic; interim analysis following part A of trial now 4/6/2020 expected no sooner than third quarter of 2020 Enrollment paused in the phase I trial of the caspase-3 stimulator due to COVID-19 pandemic Sun Biopharma Inc SBP-101 I 24 >18 yrs NCT03412799 Pancreatic cancer Delayed in ongoing dose-escalation and expansion combination study with nab-paclitaxel and 4/6/2020 gemcitabine; currently enrolled participants will remain on treatment A total of 68 patients with refractory chronic cough were enrolled into the trial, with 52 completing treatment. Sixteen patients dropped out in total, including 13 as a result of Bellus Health Inc. BLU-5937 II 68 18-80 yrs NCT03979638 Refractory chronic cough Terminated 4/7/2020 difficulties with conducting follow-up visits related to the COVID-19 pandemic or early termination of the trial. Plans to start a phase I clinical trial of the peptide-toxin conjugate targeting Nectin-4 this year, Bicycle Therapeutics plc. BT-8009 I Unknown Unknown Unknown Solid tumors Delayed 4/7/2020 subject to impact of COVID-19 pandemic IPI-549 I 214 >18 yrs NCT03719326 Cancer Delayed Working with clinical trial investigators and sites to continue patient treatment, but new IPI-549 II 90 >18 yrs NCT03961698 Cancer Delayed enrollment is being assessed for each individual patients and the company expects some Infinity Pharmaceuticls Inc. 4/7/2020 IPI-549 I 220 >18 yrs NCT02637531 Cancer Delayed delays due to COVID-19; several studies are underway for the oral immuno-oncology IPI-549 II 160 >18 yrs NCT03980041 Cancer Delayed candidate that selectively inhibits P13K-gamma Recruitment and screening of new patients in the phase II trial of lanifibranor, which targets Inventiva SAS Lanifibranor II 84 21-75 yrs NCT03459079 Liver disease Delayed PPAR, suspended due to COVID-19; patients already included to continue receiving treatment 4/7/2020 as per protocol Data from phase II study of the plasma kallikrein inhibitor delayed due to COVID-19; expects Kalvista Pharmaceuticals Inc KVD-900 II 50 >18 yrs NCT04208412 Hereditary angioedema Delayed data in second half of 2020 if participants are able to resume their activity during the second 4/7/2020 quarter of 2020

All patients with renal failure enrolled and treated in the phase I trial of the aminopeptidase A QGC-001 I Unknown Unknown Unknown Renlal failure Delayed Quantum Genomics SA inhibitor; half of healthy volunteers completed the trial but enrollment temporarily halted due to 4/7/2020 COVID-19; in order to limit impact to trial, company will conduct interim analysis QGC001/2QG4 II 294 >18 yrs NCT03715998 Myocardial Infarction Delayed ReN-001 II 130 35-75 yrs NCT03629275 Stroke Delayed COVID-19 pandemic is affecting most studies, including in the U.S., where it is running trials Reneuron Group plc 4/7/2020 ReN-003 I / II 21 >18 yrs NCT02464436 Retinitis Pigmentosa Delayed with its stem cell therapy candidates; company expects delays in additional recruitment Proof-of-concept trial fully recruited and screened but not permitted to start due to Serbian Spinal muscular Catalyst Pharmaceuticals Inc Firdapse II 12 6-50 y rs NCT03781479 Delayed government regulations related to COVID-19 pandemic; top-line data will not be reported by 4/8/2020 atrophy end of second quarter; Firdapse is a potassium channel inhibitor Ready to begin pivotal phase IIb/III study as soon as the COVID-19 pandemic is over; dosing Addex Therapeutics Ltd Dirpaglurant II / III Unknown Unknown Unknown Parkinson's disease Dealyed 4/8/2020 first patient in 2H20 will result in data in the 2Q22 adagloxad Triple-negative breast Pausing the Gloria study of the antibody-drug conjugate targeting Clobo H for 3 months due to Obi Pharma Inc. III 668 >18 yrs NCT03562637 Delayed 4/8/2020 simolenin cancer COVID-19 First participant in 8-mg/kg cohort dosed and on therapy; slowdown or pause in enrollment TTI-622 I 156 >18 yrs NCT03530683 Hematologic cancer Delayed expected due to COVID-19 pandemic; TTI-622 is a CD47 antagonist Trillium Therapeutics Inc. 4/8/2020 TTI-621 I 240 >18 yrs NCT02890368 Solid tumors Delayed First participant in 1.4-mg/kg cohort dosed and on therapy; slowdown or pause in enrollment TTI-621 I 260 >18 yrs NCT02663518 Solid tumors Delayed expected due to COVID-19 pandemic; TTI-621 is a CD47 antagonist Enrollment and site activation affected by COVID-19 pandemic; interim data of the human Ventilator-associated Aridis Pharmaceuticals Inc AR-301 III 240 >18 yrs NCT03816956 Delayed IgG1 monoclonal antibody provisionally expected in second half of 2020 and top-line data in 4/9/2020 pneumonia second half of 2021 Polymyositis KZR-616 II 40 >18 yrs NCT04039477 Delayed Clinical development and data release of the immunoproteasome inhibitor expected to be Dermatomyositis Kezar Life Sciences Inc delayed due to COVID-19, but the open-label portion of the Mission study continues to 4/9/2020 Polymyositis KZR-616 II 24 >18 yrs NCT04033926 Delayed generate data; next data update expected by the end of the second quarter of 2020 Dermatomyositis Study, which has completed several dose cohorts of the brain-derived neurotrophic factor, is Otonomy Inc. OTO-413 I / II 30 21-64 yrs NCT04129775 Hearing difficulty Delayed 4/9/2020 paused due to COVID-19 Company continuing to support those enrolled in phase II portion of phase I/II monotherapy trial of the sialic acid-binding lg-like lectin 15 inhibitor and working with sites to enroll additional NC-318 I / II 143 >18 yrs NCT03665285 Solid tumors Delayed participants as appropriate in light of COVID-19 pandemic; initial biomarker data from phase I portion expected in midyear 2020 but top-line data from phase II portion expected to be Nextcure Inc. delayed 4/13/2020 Initiation of phase I portion of phase I/II trial of the leukocyte associated Ig like receptor 1 NC-410 I Unknown Unknown Unknown Cancer Delayed antagonist, originally expected to begin in March, delayed due to COVID-19 pandemic Initiation of combination trial of the sialic acid-binding Ig-like lectin 15 inhibitor with standard-of- NC-318 Unknown Unknown Unknown Solid tumors Delayed care chemotherapies delayed due to COVID-19 pandemic Nonalcoholic Initiation of phase IIb trial of the FGF receptor agonist now expected in first half of 2021, 89bio Inc BIO89-100 I / II 83 21-75 yrs NCT04048135 Delayed 4/13/2020 steatohepatitis delayed from first half of 2020, due to COVID-19 pandemic

Recruitment of the IL-13/IL-4 receptor antagonist in multiple ascending-dose study enrolling Atopic Aslan Pharmaceuticals Ltd ASLAN-004 I 50 >18 yrs NCT04090229 Delayed adults with moderate to severe disease paused due to COVID-19 pandemic; screening 4/13/2020 dermatitis expected to resume in May 2020, with interim unblinded data still expected to report in 2020

Due to COVID-19, some sites have temporarily shut down and patient enrollment has slowed. Wet Macular Outlook estimates that final enrollment could be delayed by one to three months, depending Outlook Therapeutics ONS-5010 III 220 >50 yrs NCT03834753 Delayed 4/14/2020 Degeneration on local conditions, which have varying degrees of “shelter-in-place” and other type of executive orders mandating various restrictions Atopic Telaglenastat II 445 >18 yrs NCT03428217 Delayed In light of COVID-19, Calithera now expects top-line data in the fourth quarter of 2020 4/14/2020 dermatitis

Given the challenges associated with opening new clinical studies during the current stage of Atopic Telaglenastat II 120 >18 yrs NCT04265534 Delayed the COVID-19 pandemic, Calithera expects to delay enrollment of the first patient until the third 4/14/2020 dermatitis quarter of 2020, pending further developments in the COVID-19 situation. Calithera Biosciences Inc Enrollment of first participant in the phase II Keapsake trial assessing the glutaminase inhibitor Telaglenastat I / II 92 >18 yrs NCT03875313 Solid Tumor Delayed in those with NRF2/KEAP1 mutation delayed until third quarter of 2020 due to COVID-19 4/14/2020 pandemic; interim data expected in 2021 Enrollment of the arginase inhibitor delayed until third quarter of 2020 due to COVID-19 CB-280 I 32 >18 yrs NCT04279769 Cystic fibrosis Delayed 4/14/2020 pandemic Enrollment in the phase II Redwood-HCM study of the myosin inhibitor paused due to COVID- Hypertrophic CK-274 II 60 18-75 yrs NCT04219826 Delayed 19 pandemic; data from first cohort may be available in 2H20 if cohort's enrollment is cardiomyopathy completed by midyear 2020 Cytokinetics Inc 4/14/2020 AMG-594 I Unkown Unkown Unkown Heart Failure Delayed Enrollment in a phase I trial of the cardiac troponin activator is suspended due to COVID-19 Omecamtiv III 270 18-75 yrs NCT03759392 Heart Failure Delayed pandemic Mecarbil Source: Company data, Bioworld, clinicaltrials.gov, EvaluatePharma, Credit Suisse estimates, OutsourcingPharma Clinical Trial Delays in 2019: CenterWatch published a survey comparing financial and operational aspects of clinical trial sites. Figure 2 illustrates the most common sources of trial delays in 2019, as reported in its survey work. Note, there were two groups polled (small and large sites). For the purpose of the survey, it defines “small sites” (n=71) as those conducting <10 trials/year and “large sites” (n=86) as those conducting >10 trials/year. Interestingly, Contract Research Organizations 7

22 April 2020 regardless of trial size, there is a high degree of overlap between operational sticking points across the spectrum, with budget and contract negotiations being cited as the most prevalent source of trial delays.

Figure 6: Greatest Source of Clinical Trial Delays in 2019

7% Review of ICD with patient 8% 8% Retaining study volunteers 8% Small Site (n=71) Large Site (n=86) 8% Clinical trial drug availability 17% 28% Screening study volunteers 23% 10% Responding to queries in CRF 24% 17% Regulatory compliance process 24% 15% IRB committee review & approval 29% 21% Enrolling study volunteers 29% 27% Protocol amendments from sponsor 42% 45% Delayed payments from sponsors 45% 25% Sponsor/CRO responsiveness to inquires 47% 42% Contract negotiation & approval 59% 46% Budget negotiation & approval 64% 0% 10% 20% 30% 40% 50% 60% 70%

Source: Company data, Credit Suisse estimates

Figure 7: TTM CRO Clinical Operating Margins

Average TTM Clinical Operating Margin (excl-PPD):16.2% 19.7% 20.2% 20.0%

16.3% 16.7% 15.4% 15.5% 15.0% 13.9%

10.0%

5.0%

0.0% CVD (LH) ICLR SYNH PRAH MEDP IQV (RDS) PPD (Clinical)

Source: Company data, Credit Suisse estimates; Only includes clinical research op. income; TTM as of 4Q19; Note: Comparability impacted by IQV: Technology Offerings (40% of revs) and Post-Approval Services (7%); PPD: lab services (15% of revenue); MEDP: 100% Full Service; SMID Biotech Focused; PRAH: Symphony data offering (8% of rev), Meaningful FSP exposure; ICLR: Central lab exposure, capital intensive site network strategy; CVD (Covance, subsidiary of LH) Central lab exposure; and SYNH: Commercial exposure (27% of revenue)

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22 April 2020

Figure 8: CRO Comparable Company Analysis

CS Price Upside / 4/21/20 Market Avg Vol Revenue (CY) Avg (5yr) EPS (CY) Avg (5yr) EBITDA (CY) Avg (5yr) P/Sales (CY) P/E (CY) EV/EBITDA (CY) Dividend Ticker Rating Target Downside Price Cap (000's) 2020 2021 Growth 2020 2021 Growth 2020 2021 Growth 2020 2021 2020 2021 2020 2021 Yield Contract Research Organizations IQVIA Holdings IQV Outperform $157 29% $122.00 $23,636 2,479 $9,821 $11,025 7% $6.44 $7.71 15% $2,382 $2,647 8% 2.4x 2.1x 18.9x 15.8x 14.5x 13.0x - ICON PLC ICLR Outperform $187 23% $151.86 $8,036 435 $3,034 $3,246 14% $7.69 $8.44 19% $541 $589 14% 2.6x 2.5x 19.8x 18.0x 14.4x 13.3x - PRA Health Sciences PRAH Outperform $122 39% $88.07 $5,673 563 $3,290 $3,531 20% $5.87 $6.58 33% $595 $659 24% 1.7x 1.6x 15.0x 13.4x 11.3x 10.2x - PPD, Inc. PPD Outperform $32 45% $22.02 $7,487 2,293 $4,442 $4,894 - $1.22 $1.41 - $860 $947 - 1.7x 1.5x 18.1x 15.6x 13.2x 12.0x - Syneos Health SYNH Outperform $62 27% $48.90 $5,192 973 $3,189 $3,626 64% $3.02 $3.68 32% $603 $706 54% 1.6x 1.4x 16.2x 13.3x 12.3x 10.5x - Medpace MEDP Outperform $105 33% $78.81 $2,999 440 $987 $1,088 27% $3.48 $3.87 23% $174 $193 11% 3.0x 2.8x 22.7x 20.4x 16.4x 14.9x - Charles River Laboratories CRL Neutral $162 20% $135.06 $6,601 566 $2,974 $3,187 15% $7.53 $8.41 14% $697 $767 15% 2.2x 2.1x 17.9x 16.1x 11.8x 10.8x - Average 24% 23% 21% 2.2x 2.0x 18.4x 16.1x 13.4x 12.1x Contract Manufacturing Organizations West Pharmaceutical Services WST-US $165.20 $12,199 588 $1,934 $2,086 4% $3.38 $3.92 16% $439 $500 8% 6.3x 5.8x 48.9x 42.1x 27.5x 24.2x 0% Catalent CTLT-US $57.14 $8,921 1,301 $2,965 $3,222 6% $1.96 $2.29 72% $716 $803 8% 3.0x 2.8x 29.2x 24.9x 16.1x 14.4x - Lonza Group AG (in CHF) LONN-CH $418.00 $31,128 632 $6,186 $6,658 9% $13.17 $15.01 35% $1,681 $1,887 17% 5.0x 4.7x 31.7x 27.9x 20.5x 18.2x - Average 6% 41% 11% 4.8x 4.4x 36.6x 31.6x 21.4x 18.9x Clinical Laboratories Laboratory Corp of America LH Outperform $182 23% $148.18 $14,326 1,313 $12,117 $12,435 -6% $12.05 $13.01 -10% $2,192 $2,307 -7% 1.2x 1.2x 12.3x 11.4x 9.6x 9.1x - Quest Diagnostics DGX Neutral $100 6% $94.46 $12,582 2,401 $7,903 $8,047 1% $6.65 $7.05 8% $1,569 $1,617 0% 1.6x 1.6x 14.2x 13.4x 10.7x 10.3x 2% Average -2% -1% -4% 1.4x 1.4x 13.2x 12.4x 10.1x 9.7x Total Average 15% 23% 14% 2.7x 2.5x 22.1x 19.4x 14.9x 13.4x ($ in millions except/share)

Source: Company data, Credit Suisse estimates, FactSet, Prices as of 4/21/20 Biotech Funding Unsurprisingly Volatile Amidst COVID-19 Biotech companies remain a core pillar of growth for CROs. Emerging biotech companies generally lack the financial resources, production infrastructure, and sales and marketing capabilities to conduct clinical trials autonomously. More importantly, the regulatory environment continues to get increasingly more challenging to comply with, making the process incrementally more onerous for smaller companies to successfully develop drugs. Despite early stage biotech businesses struggle to bring drugs to market independently, biotech represents a disproportionate share of the therapeutics currently being developed. This metric serves as a strong indicator of R&D/outsourcing demand, particularly for those CROs with above-average exposure to faster-growing small and mid-sized biotech companies (e.g. Medpace). Note, investors have increasingly focused on a potential inflection point in biotech funding, or when robust biotech funding growth will subside, following sustained strength in funding during 2017 and 2018. With the strong funding levels over the past several years, alongside potential political scrutiny as we draw closer to election season, we are encouraged by the latest biotech funding metrics offering a more relevant read-through to CRO demand. We track multiple data points to measure the health of the biotech funding environment, and according to BioWorld, a comprehensive data source, biotech funding, including public and private sources, increased 2% YTD as of April 17th (to $17.6 billion), attributable to strength in IPOs (+8%) and private (+1%), partially offset by public/other (-11%). In 1Q20, biotech total funding increased 5% (to $15.4 billion), attributable to strength in IPOs (+23%), partially offset by private financing (-18%) and public/other (-5%). In the month of March, total biotech funding decreased 28% (to $4.2 billion), attributable to weakness in public/other (-52%) and IPOs (-45%), partially offset by strength in private financing (+57%). Total 2019 biotech funding decreased 14% ($57.6 billion), reflecting strength in public/other financings (+13%), offset by weakness in IPOs (-25%) and private funding (-5%). Importantly, y/y growth rates reflect tough comps, and we continue to view the absolute level of funding as healthy. Note, we emphasize that funding can stem from many sources and may not be fully represented in this data. For instance, large pharmaceutical companies can represent a key source of funding for biotech companies, inherently more insulated from broader capital markets activity than VC and public market funding.

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Figure 9: Annual Biotech Funding Levels

$70bn 10-Year Avg. Funding Compared to 2019 Funding Levels: Total:2019 +44% from 10-year average of $40 billion $10 $60bn IPOs: 2019 +77% from 10-year average of $4.9 billion $17 Follow Ons: 2019 +16% from 10-year average of $18.2 billion $50bn Public/Other: 2019 +37% from 10-year average of $8.3 billion $16 Private:2019 +91% from 10-year average of $8.6 billion $11 $40bn $44 $29 $6 $9 $30bn $21 $27 $17 $20bn $5 $4 $15 $4 $4 $11 $9 $8 $9 $4 $8 $7 $6 $5 $10bn $1 $6 $1 $3 $1 $10 $11 $8 $9 $6 $6 $8 $8 $8 $9 $0bn 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Public/Other IPOs Follow ons Private

Source: Company data, Credit Suisse estimates, Bioworld

Figure 10: Quarterly Biotech Funding (Including Public and Private Financing)

$40bn Private biotechs YTD 2020: +2% ($17.6bn)

$35bn Public/other $34.2 1Q20: +5% ($15.4bn) 1Q19: $14.7bn Public offerings $30bn

$25bn $23.2

$20bn

$17.2 $17.2

$15.9 $15.9

$15.8 $15.8

$15.4 $15.4

$15.0 $15.0

$14.7 $14.7

$14.6 $14.6

$14.3 $14.3 $13.2 $13.2

$15bn $13.1

$12.7 $12.7

$12.6 $12.6

$12.0 $12.0

$11.0 $11.0 $9.9 $9.9

$10bn $8.7

$7.7 $7.7

$7.2 $7.2

$6.3 $6.3

$6.2 $6.2

$5.9 $5.9

$5.0 $5.0 $4.9 $4.9

$5bn $2.2 $2.2

$0bn

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19 1Q20 2Q20 Source: Company data, Credit Suisse estimates, Bioworld

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Figure 11: Monthly Biotech Funding (Includes Public and Private Financing)

$12bn Private biotechs March 2020: -28% Y/Y to $4.2bn Public/other March 2019: $5.8bn

$10bn Public offerings $7.8

$4.8 $4.8

$4.6 $4.6 $2.1 $2.1

$8bn $4.4

$3.2 $3.2

$5.8 $5.8

$4.6 $4.6

$9.5 $9.5

$5.2 $5.2

$5.0 $5.0

$5.4 $5.4 $2.7 $2.7

$6bn $6.5

$5.9 $5.9

$4.9 $4.9

$3.0 $3.0

$4.8 $4.8

$5.2 $5.2

$3.9 $3.9

$3.2 $3.2

$5.7 $5.7

$2.6 $2.6

$5.8 $5.8

$8.5 $8.5

$3.8 $3.8

$8.1 $8.1

$6.7 $6.7

$5.8 $5.8

$5.2 $5.2

$5.9 $5.9

$3.3 $3.3

$3.5 $3.5 $6.0 $6.0

$4bn $3.8

$1.9 $1.9

$8.0 $8.0

$4.4 $4.4

$5.0 $5.0

$4.7 $4.7

$3.7 $3.7

$2.0 $2.0

$3.5 $3.5

$2.5 $2.5

$4.2 $4.2

$2.5 $2.5

$3.3 $3.3

$1.7 $1.7

$2.5 $2.5

$2.1 $2.1 $3.2 $3.2

$2bn $1.3 $1.7 $1.7

$0bn

Jul-16

Jul-17

Jul-18

Jul-19

Apr-16

Oct-16

Apr-17

Oct-17

Apr-18

Oct-18

Apr-19

Oct-19

Apr-20

Jan-16

Jun-16

Jan-17

Jun-17

Jan-18

Jun-18

Jan-19

Jun-19

Jan-20

Feb-16

Mar-16

Feb-17

Mar-17

Feb-18

Mar-18

Feb-19

Mar-19

Feb-20

Mar-20

Nov-15

Dec-15

Aug-16

Sep-16

Nov-16

Dec-16

Aug-17

Sep-17

Nov-17

Dec-17

Aug-18

Sep-18

Nov-18

Dec-18

Aug-19

Sep-19

Nov-19

Dec-19

May-16

May-17 May-18 May-19 Source: Company data, Credit Suisse estimates, BioWorld *Public offerings include IPOs and follow-ons; Public/other includes other financings of public companies, including loans, bridge financings, exercises of warrants, debt offerings, rights offerings, standard private placements, PIPE financings, and institutional offerings of registered stock; Private biotech include financings of private firms.

Figure 12: Other Financings of Public Biotech Companies

$32bn

$29.9 $29.9 1Q20: +23% yoy growth ($8.5 bn)

$27bn

$22bn

$17bn $15.9 $11.1 $11.1

$12bn $10.9

$10.0 $10.0

$9.5 $9.5

$8.9 $8.9

$8.8 $8.8

$8.5 $8.5

$8.2 $8.2

$8.0 $8.0

$7.8 $7.8

$7.7 $7.7

$7.2 $7.2

$7.0 $7.0

$6.9 $6.9

$6.8 $6.8

$6.6 $6.6 $6.2 $6.2

$7bn $5.7

$4.0 $4.0

$3.7 $3.7

$3.3 $3.3

$3.1 $3.1

$2.5 $2.5

$2.4 $2.4

$2.2 $2.2

$2.2 $2.2 $2.1 $2.1

$2bn $0.5

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19 1Q20 -$3bn 2Q20

Source: Company data, Credit Suisse estimates, Bioworld

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22 April 2020

Figure 13: Funding of Private Biotech Companies

$4.5bn 1Q20: -18%yoy growth ($2.8 bn)

$4.0bn

$3.5bn $3.4

$3.2 $3.2

$3.2 $3.2 $3.0 $3.0

$3.0bn $2.8

$2.8 $2.8

$2.7 $2.7

$2.6 $2.6

$2.4 $2.4

$2.3 $2.3 $2.3 $2.3

$2.5bn $2.3

$2.3 $2.3

$2.0 $2.0 $1.9 $1.9

$2.0bn $1.9

$1.8 $1.8

$1.6 $1.6

$1.5 $1.5 $1.4 $1.4

$1.5bn $1.3

$1.2 $1.2 $0.9 $0.9

$1.0bn $0.8 $0.5 $0.5 $0.5bn

$0.0bn

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19 1Q20 2Q20 Source: Company data, Credit Suisse estimates, Bioworld

Figure 14: Public Offerings of Biotech Companies, Including IPOs and Follow-Ons

$6.0bn 1Q20: -5% yoy growth ($4.1 bn)

$5.0bn

$4.7 $4.7

$4.5 $4.5

$4.4 $4.4

$4.1 $4.1

$4.0 $4.0 $3.8 $3.8

$4.0bn $3.8

$3.5 $3.5

$3.2 $3.2 $3.2 $3.2

$3.0bn

$2.5 $2.5

$2.4 $2.4

$2.3 $2.3

$2.1 $2.1

$2.0 $2.0 $1.8 $1.8

$2.0bn $1.7

$1.6 $1.6

$1.5 $1.5

$1.2 $1.2

$1.1 $1.1 $1.0 $1.0

$1.0bn $0.4 $0.4

$0.0bn

2Q13 3Q13 2Q14 3Q14 3Q15 4Q15 3Q16 4Q16 4Q17 4Q18 1Q19 4Q19 1Q20 4Q13 1Q14 4Q14 1Q15 2Q15 1Q16 2Q16 1Q17 2Q17 3Q17 1Q18 2Q18 3Q18 2Q19 3Q19 2Q20 1Q13 Source: Company data, Credit Suisse estimates, Bioworld

Multiple relevant sources of R&D funding for virtual, small, and mid-sized biotechnology companies are summarized below: Venture Capital Funding: According to data from EvaluatePharma, venture capital funding decreased 17% in 1Q20 (vs. +5% in 4Q19). Importantly, each source of funding data captures only a limited scope of transactions, and thus, multiple sources likely provide a more

Contract Research Organizations 12

22 April 2020 comprehensive view of broader industry trends. For 2019, venture capital raised $19.6 billion (- 27% y/y) across 598 (-24%y/y) rounds of financing.

Figure 15: Biotech/Biopharma Company VC Funding

$30bn 1Q20 VC Funding: -17% y/y grow th (to $4.9 bn) 1,200 1,072 1,102 1Q19 VC Deal Count: -7% y/y (159) $25bn 992 1,001 1,005 938 919 894 1,000 856 $20bn 736 800 690 782 $15bn 564 598 600

451 $26.8 $10bn 374 $21.7 400

287 $19.6 $18.3

195 198 217 $16.5 23

$5bn $13.9 200

$11.0

$10.5

$10.3

$9.5

$10.1

$9.1

$8.4

$6.1

$5.7

$5.2

$3.2

$2.9 $4.3 $0bn $3.1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD '20

Source: Company data, Credit Suisse estimates, Bioworld, EvaluatePharma

Figure 16: Annual Biotech IPOs (1980-2020) 140 Annual Biotech IPO Count 120 2019 -13.7%to 63 from 73 116 2018: +9.0% to 73 from 67

100

73 73

80 72

58 57

60 52

42 33

40 33

15 15

20 13

1 0

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018 2019

YTD '20 YTD

Source: Company data, Credit Suisse estimates, EvaluatePharma. Note: IPO count only includes companies classified by EvaluatePharma as “biotechnology” Note, we emphasize that funding can stem from many sources and may not be fully represented in this data. For instance, large pharmaceutical companies can represent a key source of funding for biotech companies, inherently more insulated from broader capital markets activity than VC and public market funding. Biotech M&A and Deal Activity: According to BioWorld, biotech M&A increased 147% in 2019 (to $224 billion vs, $91 billion in 2018), consisting of 173 total transactions (+25% y/y). Total biotech deal activity, which includes licensing agreement, JVs, and collaborations of therapeutic companies, increased 34% in 2019 (to $160 billion vs. $120 billion in 2018), consisting of 1,608 total deals (+18% y/y).

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22 April 2020

Figure 17: 8-Year History of Biotech M&A Activity Figure 18: 8- Year History of Biotech Deals

$300bn $180bn 1,800 1,608 190 173 $160bn 1,600 $250bn 170 1,364 152 $140bn 1,400 138 150 $200bn 146 $120bn 1,200 123 125 1,015 130 $100bn 1,000 821 $150bn 873 110

$80bn 903 800

$160 $256 83 551 $151 90 486

$100bn 71 $224 $60bn 600 $120

70 $103

$157 $40bn 400

$83 $81 $50bn $143

$91 50 $20bn 200

$73

$37

$33

$55 $44 $0bn 30 $0bn 0 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019

$ Value of M&A Volume of M&A (# of Deals) $ Value Volume (# of Deals)

Source: Company data, Credit Suisse estimates, BioWorld Source: Company data, Credit Suisse estimates; BioWorld; Biotech Deals include: Includes: licensing’s, JVs, and collaboration of therapeutics companies

Figure 19: Estimated Biotech Exposure by CRO (as a % of 2019 Revenue)

CRO Pharma Biotech/other Commentary

Pharma: 10% Large Pharma, 19% Mid-Sized Pharma; Biopharma: 71%, which is primarily smaller Biotech companies based MEDP 29% 71% on 3Q19 revenue. Note: In 4Q19, a a large pharama customer acquired a small biopharma customer. Excluding this acquisition, full year 2019 was 75% small biopharma, 19% mid-sized biopharma, and 6% large pharma

CRL 39% 61% 43% biotech, 26% global Pharma, 18% other, 12% academic/government as of 3Q19.

80% of Biotech business in post proof-of-concept phase. Customer Type based on backlog mix as of 9/30/2019 on an ASC PPD 59% 41% 605 basis

SYNH 61% 39% 39% Top 20 biopharma, 20% top 21-50 biopharma, 39% SMID biopharma as of 4Q19.

PRAH 70% 30% ~70% of new awards are from the pharmaceutical sector and ~30% coming from the biotech sector as of 1Q19.

No breakdown, has stated historically that their traditional clinical business is roughly 70% large pharma and 30% spec ICLR 70% 30% pharma/biotech.

No disclosure, but its Novella unit (focused on small biotech) is estimated L-MSD% of revenue. New CORE awards: Large IQV Not disclosed Not disclosed Pharma (33%), Emerging Biopharma (67%) Note: Emerging Biopharma new awards have been outgrowing Large Pharma awards since the IMS/Quintiles merger. Every top 20 Pharma uses RWE.

No disclosure, but its BioPharma unit is said to be growing rapidly and focused exclusively on emerging biotech. Though, likely PRXL Not disclosed Not disclosed less exposure to biotech than others

No disclosure, previously 85% large pharma, and 15% biotech when last disclosed. Note: At the time of Chiltern acquisition, CVD Not disclosed Not disclosed Chiltern's backlog was ~75% SMID Biotech. Note: CVD acquired Chiltern July 2017. Chiltern's exposure: 28% Top 25 biopharma, 16% top 26-50 biopharma, 56% SMID biopharma when last disclosed Source: Company data, Credit Suisse estimates

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22 April 2020

Figure 20: Customer Breakdown: FSP Mix (as a % of Total Revenue), $s in millions

FSP Other Total FSP Full-Service CRO Commentary Revenue Revenue Revenue Revenue Revenue

PRAH 33% 67% $2,813 $928 $1,885 FSP represents about 1/3rd of revenue

As of 2Q19, its FSP business remains at around about 15 or so percent of its ICLR 15% 85% $2,806 $421 $2,385 business and it hasn't increased dramatically.

SYNH 11% 89% $3,422 $376 $3,045 11% disclosed in 4Q19

Estimated HSD-LDD% of revenue - Execupharm that it acquired last year is ~5% of PRXL 10% 90% $2,328 $233 $2,095 total revenues now, and it already had some capabilities

IQV (RDS) 5% 95% $5,788 $289 $5,499 Not disclosed

MEDP 0% 100% $861 $0 $861 None (all full-service)

PPD $100's million range $3,749 At sell-side day, noted FSP was "in the hundreds of millions of dollars" - - -

CVD Not disclosed Not disclosed $4,587 - - Not disclosed

CRL 0% 100% $1,317 $0 $1,316.85 None (all full-service)

Source: Company data, Credit Suisse estimates

Figure 21: Customer Mix: CRO Biotech Exposure (as a % of Figure 22: SMID Biopharma Outsourcing Growing Faster than Total Revenue) Market

80% 35% 33% 71% 70% 30% 61% 60% 25%

50% 41% 20% 39% 40% 15% 30% 30% 15% 30% 11% 10% 10% 20% 5% 10% 5% 0% 0% 0% ICLR PRAH SYNH PPD CRL MEDP MEDP IQV (RDS) PRXL SYNH ICLR PRAH

Source: Company data, Credit Suisse estimates Source: Company data, Credit Suisse estimates

Figure 23: CRO Customer Concentration

As of 2019 ICLR PRXL PRAH SYNH MEDP PPD IQV CRL

Top 1 customer 11% 12% 10% <10% <10% <10% 5% <5%

Top 5 customers 38% 38% 38% 23% 19% - - -

Top 10 customers 52% 51% 54% 35% 29% 48% - -

Top 20 customers - 66% ------

Top 25 customers 71% ------

Source: Company data, Credit Suisse estimates

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22 April 2020

Analysis of Clinicaltrials.gov by Company We track all active and closed studies registered in the clinicaltrials.gov database by location, sponsor, and lead investigator for ICON PLC, Syneos Health (formerly INC Research and inVentiv), Medpace, PAREXEL, PPD, Inc, PRA Health Sciences, IQVIA (formerly QuintilesIMS), Covance, and Chiltern (recently acquired by LabCorp/Covance). In the following analysis, we track Covance and Chiltern (subsidiaries of LH), as well as INC Research and inVentiv (now Syneos Health) independently, to better analyze CRO-specific dynamics. According to our analysis, PRXL was the most active in 1Q, adding 12 trials, followed by LH (CVD) (11), PPD (9), PRAH (8), IQV (7), SYNH (3), and MEDP (2). Furthermore, our analysis showed two terminations: PPD (1) and PRXL (1); two withdrawals: PRXL (1) and PRAH (1); and two suspensions: PRAH (1) and IQV (1) across the CROs that we track. We have provided additional detail on respective cancellations on page 23. In 1Q20, PRXL led the way with 110 enrollees per newly registered trial across its 61 trials.

Figure 24: Total Current Active Studies by CRO (1Q20) Figure 25: Studies Terminated, Withdrawn, or Suspended vs. New Studies Registered and Started (1Q20)

90 14

80 12 9 12 11 11 70

10 9 9 60 4 5 26 8 8 12 50 1 8 20 7 40 1 21 6 0 5 4 30 5 14 20 14 46 46 4 3 3 3 20 8 37 2 2 2 28 21 2 10 16 16 20 1 1 1 0 0 0 0 0 0 0 0 MEDP PPD ICLR PRAH SYNH PRXL CVD(LH) IQV ICLR MEDP SYNH IQV PRAH PPD LH (CVD) PRXL Terminated/Withdrawn/Suspended Started New Actively Recruiting Active, Not Recruiting Not Yet Recruiting

Source: clinicaltrials.gov; Credit Suisse estimates; Note: Due to a material lag in Source: clinicaltrials.gov; Credit Suisse estimates; Note: Due to a material lag in quarterly new clinical trial registration postings, recent data may not capture the full quarterly new clinical trial registration postings, recent data may not capture the full dataset for the current quarter dataset for the current quarter

Figure 26: Total Trial Registration and Starts Across Tracked CROs on CT.gov

80 76 66

70 66

57 57 57 56

60 56

52 52

48 48 48 47

50 46

41 40 40

0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Started Registered

Source: Company data, Credit Suisse estimates, clinicaltrials.gov

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22 April 2020

Figure 27: Average Enrollment for Newly Registered Trials by CRO (1Q20)

120 110 104 100 88

78 80

63 60 56 50

0 - ICLR CVD (LH) PPD PRAH IQV SYNH MEDP PRXL

Source: Company data, Credit Suisse estimates

Figure 28: Total Clinical Trials by CRO Listed on Clinicaltrials.gov (as of 1Q20)

70 64

50 46 46 43 37 40 35 33 34 28 30 25 26 22 21 20 20 21 20 20 16 14 14 12 10 8 9 9 10 5 4 4 5 0 1 1 0 MEDP ICLR PRAH PPD SYNH PRXL CVD(LH) IQV Not Yet Recruiting Active, Not Recruiting Actively Recruiting Terminated/Withdrawn/Suspended

Source: Company data, Credit Suisse estimates, Clinicaltrial.gov Details on 1Q20 Terminations, Suspensions, and Withdrawals Parexel:

Withdrawn February 2020: A Study to Assess the Safety and Efficacy of 5-aminolevulinic Acid Hydrochloride (5-ALA HCl) and Sodium Ferrous Citrate (SFC) Added on Artemisinin- based Combination Therapy (ACT) in Adult Patients with Uncomplicated Malaria. Phase 2, with enrollment of zero patients. PRA Health Sciences

Terminated March 2020: A Randomized, Double-Blinded, Placebo-Controlled, Single and Multiple Ascending Dose Study to Evaluate the Safety, Tolerability, Pharmacokinetics and

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22 April 2020

Pharmacodynamics of BMS-986224 in Healthy Subjects and Chronic Heart Failure Patients With Reduced Ejection Fraction. Phase 1, with enrollment of 199 patients. Withdrawn January 2020: A Single and Multiple Ascending Dose Study of BMS-986318 in Healthy Participants. Phase 1, with enrollment of zero patients. Suspended February 2020: Study in Women on the Effect of JNJ-64530440 on Oral Contraceptive and Midazolam, and the Effect of a High-fat Meal on JNJ-64530440. Phase 1, with enrollment of 16 patients. IQVIA

Suspended March 2020: A Randomized, Double-blind, Multicenter, Placebo Controlled Study to Evaluate the Safety and Efficacy of Methoxyflurane (PENTHROX®) for the Treatment of Acute Pain in Children and Adolescents from 6 to Less Than 18 Years of Age (Presenting to an Emergency Department with Minor Trauma). Phase 3, with enrollment of 222 patients. PPD, Inc.

Terminated February 2020: A Phase 2a, Double-Blind, Placebo-Controlled Multicenter Study to Assess the Safety, Tolerability, Pharmacokinetics and Pharmacodynamics Effects of RVT-1201 in Patients With Pulmonary Arterial Hypertension. Phase 2, with enrollment of three patients. Conventional vs. Biologics Drug Update New study starts for conventional drugs (2,449) grew +6.3% yoy in 1Q, while study registrations for conventional drugs (2,524) grew 2.8% yoy. New study starts for biologics drugs (394) grew +16.9% yoy, while study registrations for biologics drugs (367) declined 3.4% yoy. Of note, we highlight that due to a material lag in quarterly clinical trial registration postings (related to processing times) to the ct.gov website, recent quarterly trends may be a less relevant barometer for current CRO industry trends across the entire database.

Figure 29: Historical Biologics Clinical Trial Registrations Figure 30: Historical Biologics Clinical Trial Starts (2009-2020, (2009-2020, Quarterly) Quarterly)

500 50% 450 1Q20 50% Biologics Study Start: 394 450 1Q20 400 Biologics Registrations: 367 40% (+16.9% yoy) 40% 400 (-3.4% yoy) 350 30% 350 30% 300 300 20% 250 20% 250 10% 200 10% 200 0% 150 150 0% -10% 100 100 -10% 50 -20% 50

0 -30% 0 -20%

1Q09 1Q09

3Q09 3Q09

1Q10 1Q10

3Q10 3Q10

1Q11 1Q11

3Q11 3Q11

1Q12 1Q12

3Q12 3Q12

1Q13 1Q13

3Q13 3Q13

1Q14 1Q14

3Q14 3Q14

1Q15 1Q15

3Q15 3Q15

1Q16 1Q16

3Q16 3Q16

1Q17 1Q17

3Q17 3Q17

1Q18 1Q18

3Q18 3Q18

1Q19 1Q19

3Q19 3Q19

1Q20 1Q20

Registration YOY Study start YOY

Source: clinicaltrials.gov, Credit Suisse estimates, Evaluate Pharma; Note: Due to a Source: clinicaltrials.gov, Credit Suisse estimates, Evaluate Pharma; Note: Due to a material lag in quarterly new clinical trial registration postings, recent data may not material lag in quarterly new clinical trial registration postings, recent data may not capture the full dataset for the current quarter capture the full dataset for the current quarter

Contract Research Organizations 18

22 April 2020

Figure 31: Historical Conventional Clinical Trial Registrations Figure 32: Historical Conventional Clinical Trial Starts (2009- (2009-2020, Quarterly) 2020, Quarterly)

3,000 1Q20 40% 3,000 15% 1Q20 Conventional Registrations: 2,524 Conventional Study Start: 2,449 (+2.8% yoy) 2,500 30% 2,500 (+6.3%y oy) 10%

2,000 20% 2,000 5%

1,500 10% 1,500 0%

1,000 0% 1,000 -5%

500 -10% 500 -10%

0 -20% 0 -15%

1Q09

3Q09

1Q10

3Q10

1Q11

3Q11

1Q12

3Q12

1Q13

3Q13

1Q14

3Q14

1Q15

3Q15

1Q16

3Q16

1Q17

3Q17

1Q18

3Q18

1Q19

3Q19

1Q20

1Q09

3Q09

1Q10

3Q10

1Q11

3Q11

1Q12

3Q12

1Q13

3Q13

1Q14

3Q14

1Q15

3Q15

1Q16

3Q16

1Q17

3Q17

1Q18

3Q18

1Q19

3Q19 1Q20

Registration YOY Study start YOY

Figure 33: Source of Pipeline Innovation Shifting Figure 34: Companies with active BioPharma R&D pipelines

100% 6,500

90% +9% CAGR (2018-2019) Biotech 5,500 5,200 80% 45% 47% 70% 57% 59% 65% 4,500 70% 60% +160% 3,500 50% 55% 53% 40% 2,500 2,000 30% 43% 41% 35% 1,500 20% 30% BioPharma 10% 500 0% 2014 2015 2016 2017 2018 2019 2008 2019 -500 Source: Company data, Credit Suisse estimates, CRL Investor Day Source: Company data, Credit Suisse estimates, CRL Investor Day

Contract Research Organizations 19

22 April 2020

Figure 35: Annual FDA Novel Drug Approvals

60 59

50 48

45 41

40 39 30

30 27

22 21

20 11 10

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014 2017

YTD '20 YTD

Source: Company data, Credit Suisse estimates, FDA.gov

Figure 36: Total Rx and OTC Sales Worldwide (2018) Figure 37: Total Rx and OTC Sales Worldwide (2024E) Anti-fibrinolytics Seera & Seera & Anti-hyperlipidaemics Anti-fibrinolytics Anti-hyperlipidaemics 1.5% 1.4% Gammaglobulins 1.1% Gammaglobulins Anti-coagulants 1.6% 1.2% 1.2% 2.0% Anti-coagulants MS therapies 2.2% Oncology 1.7% 14.3% Anti- MS therapies hypertensives Oncology 2.6% 2.0% 19.4% Anti- Sensory organs hypertensives 2.5% 2.7% Sensory organs Dermatologicals 2.6% 2.6% Dermatologicals Immunosuppress 1.8% Immunosuppress ants ants Anti-diabetics 3.0% 1.6% 5.6% Bronchodilators Bronchodilators 2.5% 3.2%

Anti-virals Anti-diabetics 3.5% 4.7% Anti-virals Anti-rheumatics 4.5% Vaccines Anti-rheumatics Vaccines 6.7% 3.7% 4.5% 3.5%

Source: Company data, Credit Suisse estimates, EvaluatePharma Source: Company data, Credit Suisse estimates, EvaluatePharma

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22 April 2020

Figure 38: Global R&D Spend: Specialty Therapeutics (2018) Figure 39: Global R&D Spend: Specialty Therapeutics (2023E) ESA Osteoporosis ESA Osteoporosis Respiratory Blood Respiratory 2.0% 2.0% 1.0% 2.0% Blood 2.0% Coagulation 2.0% Coagulation Oncology 3.0% Oncology 3.0% 28.0% Viral Hepatitis 29.0% Viral Hepatitis 4.0% 5.0% MS MS 8.0% 7.0%

HIV HIV 9.0% 9.0%

Immunology 10.0% Immunology Other Other 9.0% 16.0% 16.0% Autoimmune Autoimmune 16.0% 17.0%

Source: EvaluatePharma Source: EvaluatePharma Key Caveats

Total database figures may give us relevant insights into underlying demand trends, given FDA laws mandate that any clinical trial meeting one of the following criteria must be registered in its database: (1) requires an investigational new drug application (IND), (2) is held at least one domestic clinical trial site, or (3) is a drug, biologic, or device manufactured in the US and exported for further research (see Key Definitions for details). As a caveat, we acknowledge there are inherent limitations of a general search through an extensive database and simply the number of trials is not necessarily indicative of quarterly reporting metrics. However, the data can allow us to compare business wins across competitors, as well as track the lifecycle of clinical trials as they move to completion or are withdrawn, suspended, or terminated. IQVIA Specific Caveats in Data Collection: We expect IQVIA (formerly QuintilesIMS) figures to be a partial snapshot of their total studies as a result of search limitations associated with the frequency of use of the word “quintile” in trials unrelated to either companies. To curb the possibility of inflated figures, we limited our search to clinical trials that explicitly name “IQVIA,” “Quintiles,” and “IMS Health” as sponsors, and by tracking mentions of either companies in location and lead investigators only within the categories of “Actively recruiting” and “Not yet recruiting” (open studies). Key Definitions

Required by FDAAA 801, all clinical trials that meet the FDA’s definition of an “Applicable Clinical Trial,” initiated after September 27, 2007 or ongoing at the time, must register and submit results information on clinicaltrials.gov, a database run by the National Library of Medicine (NLM) at the National Institute of Health. As defined by the act, Applicable Clinical Trials include: Trials of drugs and biologics: Clinical investigations (excluding phase 1 clinical investigations) of drugs or biologics subject to Food and Drug Administration (FDA) regulation Trials of devices: Controlled trials with health outcomes of devices subject to FDA regulation (excluding small feasibility studies and pediatric post-market surveillance required by FDA)

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According to clinicaltrialts.gov, Applicable Clinical Trials generally include interventional studies of FDA-regulated drugs, biologics, or devices that meet one of the following criteria: 1) the trial is held at one or more sites in the US; 2) the trial submitted an FDA investigational new drug application (IND) or investigational device exemption; or 3) the trial involves a drug, biologic, or device that is manufactured in the US and is exported for research. Below we highlight key definitions and rational behind segment labeling or classification. Open Studies: Clinicaltrials.gov defines “open studies” as trials that are currently recruiting participants, will recruit participants in the future, or are classified as Expanded Access by the FDA. We also include all studies classified as “Enrolling by invitation,” but exclude open studies whose statuses are unknown (trial has not been updated in over two years) Actively recruiting: Trial is currently recruiting participants. o Expanded Access: Instances in which investigational new drugs are made available to patients who otherwise would not qualify to participate in the ongoing clinical trial due to various health reasons. Under Expanded Access, the FDA allows manufacturers to provide patients with serious diseases or conditions access to the investigational drug under certain situations if it is proven that they may benefit from treatment. o Enrolling by invitation: Participants are selected from a specific demographic decided on by the researchers of the trial. Participants must meet specific criteria, and participation is by invitation. Not yet recruiting: Trial has not yet started recruiting. Closed Studies: Clinicaltrials.gov defines “closed studies” as trials that are no longer recruiting participants, have ended in completion, or have been stopped prior to completion for various reasons. Active, not recruiting: Ongoing trials that are no longer recruiting patients. Completed: Trials that have ended in completion and are no longer examining or treating patients. Terminated: Trials that have stopped recruiting, are no longer examining or treating patients, did not end in completion, and will not start again. Unknown: Trials with status of recruiting, not yet recruiting, or active, not recruiting, whose statuses have not been confirmed or updated within the past two years. Suspended: Trials that have stopped recruiting, are no longer examining or treating patients, did not end in completion, and but may start again. Withdrawn: Trials that ended prior to recruiting its first participant. Active Studies: We define “active studies” as clinical trials that are revenue generating or will be revenue generating in the future. These include the aforementioned studies categorized as “Actively recruiting,” “Not yet recruiting,” and “Active, not recruiting.” New Registered Trials: “New registered trials” are defined as studies first submitted to Clinicaltrials.gov for registration during our given time period. Once submitted to the database for registration, study information is officially available to the public.

Clinical Trial Starts: “Clinical trial starts” are defined as studies with enrollment periods that began during our given time period.

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Companies Mentioned (Price as of 21-Apr-2020) 89bio (ETNB.OQ, $23.75) AB Science (ABS.PA, €8.32) AVROBIO (AVRO.OQ, $13.83) Addex Therape (ADXN.S, SFr1.3) Akero (AKRO.OQ, $20.83) Alligator (ATORX.ST, Skr6.75) Allogene (ALLO.OQ, $26.05) Aridis Pharma (ARDS.OQ, $6.0) Atara (ATRA.OQ, $8.0) Auris Medical (EARS.OQ, $0.7997) Autolus (AUTL.OQ, $9.46) BELLUS Health (BLU.O, $0.864) Bergenbio (BGBIO.OL, Nkr17.76) Bicycle (BCYC.OQ, $15.35) Bristol-Myers Squibb Co. (BMY.N, $60.59) Cabaletta Bio (CABA.OQ, $6.46) Calithera (CALA.OQ, $6.11) Cassava Sciences (SAVA.OQ, $5.38) Catalent (CTLT.N, $57.14) Catalyst Bio (CBIO.OQ, $4.98) Celladon (EIGR.OQ, $7.83) Cerus Corp (CERS.OQ, $5.15) Charles River Laboratories International Inc. (CRL.N, $135.06) CytomX (CTMX.OQ, $10.07) Denali (DNLI.OQ, $21.24) Dicerna (DRNA.OQ, $21.15) Enanta Pharmaceuticals, Inc. (ENTA.OQ, $53.16) Equillium (EQ.OQ, $2.53) Flexion (FLXN.OQ, $9.36) Fulcrum Pharma (FULB.L^G10) Fulcrum Pharma (FULB.L^G10) Galapagos NV (GLPG.AS, €192.0) Geneuro (GNRO.PA, €2.98) Genfit (GNFT.OQ, $20.69) Geron (002722.SZ, Rmb12.3) Helix Biopharma (HBP.TO, C$1.56) ICON PLC (ICLR.OQ, $151.86) IQVIA Holdings, Inc. (IQV.N, $122.0) Infinity Pharmaceuticals, Inc. (INFI.OQ, $1.0) InflaRx N.V. (IFRX.OQ, $5.09) Inventiva (IVAA.PA, €4.0) Ironwood Pharmaceuticals, Inc. (IRWD.OQ, $10.1) Iveric Bio (ISEE.OQ, $3.71) Kalvista (KALV.OQ, $10.91) Kezar (KZR.OQ, $4.47) LabCorp of America (LH.N, $148.18) Lexicon PHARM (LXRX.OQ, $1.96) Lonza (LONN.S, SFr418.0) Matinas (MTNB.K, $0.52) MediWound ltd. (MDWD.OQ, $1.8) Medpace Holdings, Inc. (MEDP.OQ, $78.81) Misonix (MSON.OQ, $11.24) Moderna (MRNA.OQ, $49.26) MyoKardia, Inc. (MYOK.OQ, $62.07) Neurocrine Biosciences, Inc. (NBIX.OQ, $97.0) Newron (NWRN.S, SFr6.2) NextCure (NXTC.OQ, $36.16) ObsEva SA (OBSV.OQ, $2.14) Otonomy (OTIC.OQ, $2.0) Outlook (OTLK.OQ, $0.6796) Oyster Point (OYST.OQ, $29.47) PCI Biotech (PCIB.OL, Nkr47.35) PPD, Inc. (PPD.OQ, $22.02) PRA Health Sciences, Inc. (PRAH.OQ, $88.07) Paratek Pharms (PRTK.OQ, $4.365)

Pfizer (PFE.N, $35.62) PhaseBio (PHAS.OQ, $3.85) ProQR (PRQR.OQ, $5.19) Quantum Genomics (ALQGC.PA, €2.47) Quest Diagnostics (DGX.N, $94.46) ReNeuron Group (RQE.L, 131.5p) Reata Pharms (RETA.OQ, $148.07) Redhill Biopharm (RDHL.OQ, $6.83) Revance (RVNC.OQ, $15.56) RhoVac (RHOVAC.TE, Skr9.94) Sanofi (SASY.PA, €88.09) Sensorion (ALSEN.PA, €0.838) Seres (MCRB.OQ, $3.68) Sun Pharmaceuticals Industries Limited (SUN.BO, Rs471.95) Synairgen (SYNG.L, 52.5p) Syneos Health (SYNH.OQ, $48.9) Synlogic (SYBX.OQ, $2.02) Translate Bio (TBIO.OQ, $9.75) Valneva (VLS.PA, €2.71) Verona Pharma (VRP.L, 46.0p) Vertex Pharmaceuticals, Inc (VRTX.OQ, $262.8) Xbrane Biopharma (XBRANE.ST, Skr31.9) Contract Research Organizations 23

22 April 2020 22April 2020

Xenon Pharms (XENE.OQ, $12.92) bluebird bio (BLUE.OQ, $54.8) uniQure (QURE.OQ, $56.69)

Disclosure Appendix Analyst Certification I, Erin Wilson Wright, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. As of December 10, 2012 Analysts’ stock rating are defined as follows: Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark* over the next 12 months. Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months. Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months. *Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most att ractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European (excl uding Turkey) ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin America, Turkey and Asia (excluding Japan and Australia), stock ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark (India - S&P BSE Sensex Index); prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analys t’s coverage universe. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 12-month rolling dividend yield. An Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform where an ETR less than or equal to 5%. A Neutral may be assigned where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks. Prior to 18 May 2015, ETR range s for Outperform and Underperform ratings did not overlap with Neutral thresholds between 15% and 7.5%, which was in operation from 7 July 2011. Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances. Not Rated (NR) : Credit Suisse Equity Research does not have an investment rating or view on the stock or any other securities related to the company at this time. Not Covered (NC) : Credit Suisse Equity Research does not provide ongoing coverage of the company or offer an investment rating or investment view on the equity security of the company or related products. Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward. Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation: Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months. Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months. Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months. *An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple se ctors. Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution Rating Versus universe (%) Of which banking clients (%) Outperform/Buy* 49% (33% banking clients) Neutral/Hold* 38% (26% banking clients) Underperform/Sell* 12% (22% banking clients)

Restricted 1% *For purposes of the NYSE and FINRA ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors. Important Global Disclosures Credit Suisse’s research reports are made available to clients through our proprietary research portal on CS PLUS. Credit Suisse research products may also be made available through third-party vendors or alternate electronic means as a convenience. Certain research products are only made available through CS PLUS. The services provided by Credit Suisse’s analysts to clients may depend on a specific client’s preferences regarding the frequency and manner of receiving communications, the client’s risk profile and investment, the size and scope of the overall client relationship with the Firm, as well as legal and regulatory constraints. To access all of Credit Suisse’s research that you are entitled to receive in the most timely manner, please contact your sales representative or go to https://plus.credit-suisse.com . Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein.

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22 April 2020 22April 2020 Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: https://www.credit- suisse.com/sites/disclaimers-ib/en/managing-conflicts.html .

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Exchange Board of India (Research Analysts) Regulations, 2014 This research report is authored by: Credit Suisse Securities (USA) LLC ...... Erin Wilson Wright ; Katie Tryhane ; Haley Christofides ; Matthew Urbik Important disclosures regarding companies that are the subject of this report are available by calling +1 (877) 291-2683. The same important disclosures, with the exception of valuation methodology and risk discussions, are also available on Credit Suisse’s disclosure website at https://rave.credit-suisse.com/disclosures . For valuation methodology and risks associated with any recommendation, price target, or rating referenced in this report, please refer to the disclosures section of the most recent report regarding the subject company.

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When you purchase non-listed Japanese fixed income securities (Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, Japanese corporate bonds) from CS as a seller, you will be requested to pay the purchase price only.

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