Weekly Barometer 25 janvier 2012

Bionics Certificate – Future Is Becoming Reality

April 2017

ATONRÂ PARTNERS SA 12, Rue Pierre Fatio – 1204 GENEVA – SWITZERLAND - Tel: + 41 22 310 15 01 http://www.atonra.ch

Bionics Certificate 2

Investment Case

➢ Innovations in the fields of medicine, artificial intelligence, robotics and sensors are finally giving a

new life to medical technologies and are making human enhancement a reality

➢ Bionics, which is taking on human body dysfunctions and disabilities and, more globally, helping

improve the wellness and lifespan of the world population, benefits from long-term drivers:

✓ an ageing world population and a shortage of donated organs

✓ major technology breakthroughs leading to an impressive product pipeline

✓ an improving outlook for the reimbursement of bionic devices by insurers or health agencies

➢ Bionics is not only about next-gen prosthetics, it also covers artificial organs, wearable devices,

surgical and medical robots, synthetic biology, biotechnology and artificial intelligence

Bionics Certificate details

✓ Issuing bank: Natixis, Calculation agent: Natixis SA

✓ ISIN: XS1317063912

✓ Currency: USD

✓ Fees: 1.65% management fee + 15% performance fee, high water mark

✓ Bloomberg ticker: NXSRBION

Bionics Certificate 3

Bionics

limbs

Artificial organs

Medical wearables

Surgery robots

3D printing

Exoskeletons

Artificial intelligence

Synthetic

biology

Bionics Certificate

➢ Fixing our body dysfunctions

✓ Replacing limbs and organs

➢ Improving health

✓ Monitoring metabolism

➢ Leveraging on life mechanisms

✓ Using them for specific purposes

➢ Seconding humans

✓ In particular for surgery

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Bionics Is The Merger Between Biology And Electronics (I)

Bionics Certificate

➢ The first artificial organ was designed in 1943 to

replace a deficient kidney: a dialyzer

➢ Now a Microchip filter (1) used in an artificial

kidney (2) is to be tested in humans by the end of

2017 and might keep a patient off dialysis

➢ Today, 60-70% of human body functionalities

can be artificially performed as demonstrated by

Frank, the bionic man Bertolt Meyer designed in

2013

➢ Still missing: digestive system, liver, skin and brain

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Artificial Organs Turning Into Everyday Wearable Devices

Bionics Certificate

➢ Medical technology innovations are made possible thanks to advances in:

➢ Research is performed on extending Moore’s Law by optimizing chip technology

➢ Quantum computing will further extend Moore’s law exponentially

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Chips

Artificial intelligence

Nanotechnology

Genetic Modification

Precision Sugery

Synthetic Biology

4D Printing

CrowdsourcingRobot Assistants

GenomicsVirtual Reality

When Moore’s Law Comes To The Labs

Bionics Certificate

Bionics And Artificial Organs Address A Huge Market

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About 15% of the global population

have a disability

285 million people are

visually impaired

360 million people have

disabling hearing loss

>120k people in the US are

waiting for lifesaving

organ transplants

Source: AtonRa Partners, WHO

Bionics Certificate

➢ According to the UN, the population aged 60 years or over will grow from 900M in 2015 to 1.4Bn in

2030, while the population >80 years old will grow from 125M to 201M

➢ The bulk of the growth comes from Asia: 66% growth of people >60 years old

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Population aged 60 years or over and aged 80 years or over, by region, 1980-2050

Elderly Population Increasing Exponentially

Bionics Certificate

➢ The price of bionic devices has been unsurprisingly high until now (between $50,000 and $150,000

for an eye or limb device and surgery)

➢ Encouragingly, coverage by Medicare in the US seems to be heading in the right direction

✓ the health agency recently paid for a $144,000 bionic eye

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…But Likely To Gradually Expand As Benefits Outweigh Declining Costs

➢ Declining costs and social welfare: a major catalyst for expanded health coverage

✓ some of the technologies used will mature over the years and become less costly

✓ a bionic device can allow people to keep working and return to work more quickly

Health Coverage Of Bionic Devices Has Been An issue…

Bionics Certificate 10

Bionics Expected To Grow At A Fast pace

CAGR

Artificial Organs & Bionics ($38.7B)

Medical Robots ($20.5B)

Exoskeletons ($1.8B)

Wearable Medical Devices ($28B)

Synthetic Biology ($38.7B)

Healthcare 3D printing ($1.1B)

53%

44%

33%

22%

16%

9%

MedTech

Healthcare

5%

3%

AtonRâ

Bionics

Source: various market research firms

Bionics Certificate 11

Bionic Limbs

Bionic Hearts

Exoskeletons

Bionic Ears

Bionic Brains

Bionic Eyes

Segmenting The Bionics Market

Bionics Certificate

➢ Prosthetics are now on their way to offering real limb replacement…

➢ A cochlear implant does the work of damaged parts of the inner ear…

➢ A bionic eye complements impaired retinas…

➢ Sensors deliver electrical signals to the nervous system, enabling the brain to feel / hear / see

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The Advent Of Brain-Connected Prosthetics

Bionics Certificate

➢ Surgical robots: console, surgical arms, monitoring systems

➢ Telemedicine Robots

➢ Artificial Intelligence applications for diagnosis, monitoring or learning new surgical procedures

➢ Rehabilitation robots, exoskeletons

➢ Robots working in sterile IV (intravenous) preparation rooms.

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Medical Robots – New Means For Better Medicine

Bionics Certificate 14

Therapeutic Wearables

Pain management device,

insulin/glucose monitoring devices,

rehabilitation devices (…)

Diagnostic Devices

Vital sign monitoring devices, electrocardiograph, obstetric devices, neuromonitoring devices (…)

Home Healthcare

Remote patient monitoring -

technological advancements in medical devices provide higher

accuracy and ease of use

Telehealth

Gaining traction as a way to engage patients and also

address care outside of hospitals

MiniMed530G

(Medtronic) monitors glucose

levels and dispenses insulin

FreeStyle Libre Flash Glucose

Monitoring System from Abbott

The Zensor: detection and

capture of five common arrhythmias

Wearable Medical Devices: An Important Link In The Chain

Bionics Certificate

➢ Synthetic biology is the engineering of biology: the synthesis of complex, biologically based

systems which display functions that do not exist in nature

➢ While products that utilize synthetic biology are yet to be commercialized, this market is set to

literally explode in the next few years driven by demand for improved drugs and vaccines

➢ Key constraints are mostly ethics and bio-security/safety, as synthetic biology can be misused

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Synthetic Biology: Making The Impossible Possible

Bionics Certificate 16

Increased accuracy

Safety checks

Benefits vs. Costs

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