Arctic Aurora LifeScience

Capturing the value in healthcare innovation

FUND MANAGEMENTA R C T I C

Arctic Why in Growth certain idramatidriving tGDP an Diseasepopulatitransforresultingprovidinwith! In years. Tare ente Arctic Arctic Alife sciecare spewith higinvestorstrategycomplemcompan An inv

A A

Why st

St

T S

d

sf

c Auror

nvest in he

in healthcais that we aically. Agingthe underlyind future gro

es are primaion, new mermation basg in novel th

ng new solu2014 and 2

The likelihooering the ma

Aurora Li

Aurora LifeSnce compaecialists with scientific rs unique exy is focusedmented by nies.

estment in

Exposure toPotential toA proven inHealthcare A transpare

tart invest

Strong fundtransforminin the last 3The biotechSector rotatdown to verLarge Biotesmall biotecfor free

ra LifeS

ealthcare?

are is one ofas humans lg populationying growth iowth is exp

arily age reledicines are

sed on profoherapeutics

utions that c2015 there wod of continarket backe

feScience

Science is a nies with foth excellentand industrxposure to t

d on reachininvestments

n Arctic A

o the uniqueo extract excnvestment s

is a diversient, establis

ting now?

damentals wg the treatm

3 years h sector is wtion and pory attractiveech index hach with goo

Science

?

f the dominalive longer an, innovationin healthcarected to ex

lated, e.g cae needed. Tound new kns for previoucould transfowere more d

nued succesed with stron

e

specializedocus on Eur

track recorrial competethe growth

ng excess res also in the

Aurora Life

e growth in cess return strategy withfying asset

shed fund st

?

with beginniment of dise

well funded litical camp

e levels as currentlyd pipeline p

e

ating themeand that then and globare. Healthca

xceed globa

ancer and tThe biotechnowledge inusly unmet morm the treadrugs appross for the seng balance

d global hearope and therd from inveence. By ain the bioteeturn from ie larger com

eScience p

the life sciefrom the bi

h thorough din a genera

tructure with

ing of new eeases. This

thanks to repaigns ahea

y (April 2016priced below

es for the fue number ofal economicare already

al GDP grow

to meet the h industry isn biology anmedical neeatment into oved in the ector is highsheets in th

althcare fune US. The testing in thective portfoch and phanvestments

mpanies suc

provides

ence sectorotech sectodue diligencal portfolioh no long lo

era with innhas attract

ecord numbad of US ele

6) lower valw cash and

Arctic Aur

uture. What f elderly incrc growth are

accounts fowth.

demand froright now u

nd related deds. In canca chronic dUS than in

h, new disruhe compani

d investing eam are ex

e public life slio manage

armaceuticas in the biotech as globa

r through a dor ce of invest

ocked in per

ovative proed high inte

ber of IPOs ection have

uation thanBig Pharma

rora LifeSci

we know focreases e the main ffor 10% of g

om a growinundergoing drug developcer, scientis

disease youany of the

uptive technies.

in primarilyxperienced science secment, it offe

al industriesech sector

al pharmace

diversified p

tment oppor

riods

oduct develoerest from in

and capitataken valua

n S&P 500, a pipelines

ience 1

or

forces global

ng a pment, sts are can live

past 15 nologies

y public health ctor and ers . The

eutical

portfolio

rtunities

opment nvestors

l raises ations

many almost

Arctic Aurora LifeScience 2

Arctic Aurora LifeScience Investment strategy – Active Portfolio Management Investing in biotech and drug development in general requires deep understanding of biology as well as the function of the regulatory and commercial part of drug development, i.e clinical studies and the dynamics between smaller biotech companies and the larger pharmaceutical companies funding the later stages of development and thereby contributing to value creation.

Arctic Aurora LifeScience conducts active portfolio management with focus on listed biotech companies supplemented by larger global pharmaceutical companies in both US and EU.

Investment philosophy is to build a portfolio of successful companies in the life science sector, based on a thorough due diligence process. Due diligence is a combination of top down where the therapeutic areas of medical and commercial interest are selected. Bottom up the universe is screened for companies owning leading science within the selected therapeutic areas and a deep analysis of those companies are undertaken with the aim of finding the best investment opportunities.

To maximize risk/reward we only invest in companies with good clinical data. We do not invest in early stage biotech prior to clinical development in patients.

Close contact with management teams is essential The portfolio is constructed in relation to risk and expected return, building a

diversified portfolio of approximately 40-60 holdings. Risks include company specific risks, most importantly drug development risk, liquidity risks and general risks such as currency and political risks. The risk in Arctic Aurora LifeScience will be mitigated by portfolio construction, where company risk and portfolio weight is considered, giving a differentiated exposure. Structure Arctic Aurora LifeScience

UCITS fund targeting USD 500 million Domicile Ireland Investor profile: Family Offices, Institutions and retail Fee structure for founding investors:

Management fee of 1% and performance fee of 10% measured against the MSCI World/Pharma & Life Science Index Total return Net Index

Custodian is BNY Mellon Trust Company (Ireland) Limited Administrator is BNY Mellon Investment Servicing (International) Limited Auditors is Deloitte

A senior founding team with broad experience and excellent track record

Founder and Chief Investment Officer Ulrica Slåne Bjerke has more than 25 years experience from analyzing and investing in the life science sector. Ulrica has an excellent track record in obtaining significant and repeatable high return of investments

Founder Dr Torbjørn Bjerke has had leading positions in the whole chain within drug development, from scientist in international big companies to positions as CSO and CEO for private and public biotech companies taking products to the market

Analyst Daniel Bolanowski is an experienced analyst within the life science and healthcare field

Ac

Ot

T

The

Ulrica’s

A team fromclient suppoOutstandingthe pharmaThe team hindustry as

e Team:

s ROI at AP

m Arctic Funort, compliag Advisory

a and investhas an exten

well as a p

P3:

nd Managemance and risBoard inclutment indusnsive globarofound rela

ment providsk managemuding 6 senistry l network ination to aca

des full fundment or and very

ncluding exeademia

Arctic Aur

d administra

y successfu

ecutives in t

rora LifeSci

ation includi

l individuals

the life scie

ience 3

ing

s from

nce

Arctic Aurrora LifeSciience 4

A R C T I CF U N D M A N A G E M E N T

Arctic Fund Management ASHaakon VII’s gate 5P.O. Box 1833 VikaNO 0123 OSLO, Norway

Tel +47 2101 3100 Fax +47 2101 3036 E-mail: fundinvestor.afm@arctic.com www.arctic.com