investors to grasp the complexities and opportunities of the small biotech companies before the formal filing of their IPO registration statements, and the start of the traditional IPO road show. The Fund Managers believe the JOBS Act and the use of “testing the waters meetings” has been one of the factors that helped open the current biotech IPO window, expanded the base of investors (public market specialist and generalist investors) participating in the recent offerings, and helped drive the after-market performance of many of these offerings. ($ in millions) $3,000 AO ll $2,500 . ae 5 $2,000 = _ % $1,500 20 + : $ a es | | * = $1,000 § \ — ~~ 10 $500 f Sisisi=- awe 4 | | | | so — 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Q1 M@@mliPre-Phase3 MMMiPhase3 MMMMarketed e—=#of IPOs The combination of all of these positive factors has significantly strengthened the position of smaller development and early commercial stage healthcare technology companies, and creates a unique period of opportunity for investors in the sector. 30 CONTROL NUMBER 257 - CONFIDENTIAL HOUSE_OVERSIGHT_024041