Deutsche Bank Markets Research Rating Buy Company Aegerion Alert North America United States (:( I' Health Care AEGR.0O AEGR UO NMS AEGR Biotechnology Update post speaking with Management We spoke to AEGR management regarding their plans for 2014 and are updating our model to reflect the information. In particular we are raising our SG&A expenses in 2014 in-line with the company's plans to invest in sales and marketing. Our model also reflects the company guidance of becoming profitable in 2H'14. Notably, the co would provide 2014 guidance at JPM conference early next year. Incremental color on SG&A increase. Invest upfront with 3 year outlook. Acc to management, they believe it is more prudent to invest in SG&A keeping a 3 year outlook and invest upfront for those years. The co would be increasing sales force substantially in 2014 instead of increasing sales force every year. Before the launch of Juxtapid, the co guided for 15 sales reps in the US. We believe the number is higher now and is expected to increase. Focus on customer care to help with prescriptionstreimbursement The co will be making investments in all three buckets of SG&A 1) sales, 2) marketing and 3) medical affairs. The co expects to make substantial investments in customer care reps who take care of reimbursement and prescription generation. The co. launched with 4 customer care reps and now have 8 such reps. The co expects to increase this to 20 by YE 2013 and to 40 by YE 2014.We are now modeling 2014 SG&A expenses at S1 25M vs. S95M prey. This is -671450M) higher vs. current SG&A run rate of $75M (Or 13). Guidance faiso in Cis' I s r: as a refkii;tion of inanagernent saile ,Noill f likely come in line with die guidance Management style is conservative at the beginning of the year but likely will be in-line toward end of year. The company seems confident of achieving 2013 guidance as the company has good visibility about scripts which would lead to new