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HOUSE_OVERSIGHT_024046

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Therapeutics (Sprout IX, formerly NASDAQ: RNAI, exited through sale to Merck, 8.1x multiple). e Structured Investments in Public Companies: The Fund Managers have led and participated in a number of structured investments into small cap public companies. These have included Array Pharmaceuticals (NLV-II, NASDAQ: ARRY; led a structured follow-on investment, NLV team member joined the board, exited at 2.25x), Acadia Pharmaceuticals (NLV-II, NASDAQ: ACAD, exited at 2.5x) and _ Intercept Pharmaceuticals (NLV-II, NASDAQ: ICPT; anchored company’s IPO, NLV team member initially joined the company’s board, exited at 3.2x). For a complete list of investments made by the Fund Managers in healthcare technology companies see Appendix 1. Favorable conditions for biopharmaceutical investments for NLV-III The Fund Managers believe that NLV-III will be invested in a market with attractive conditions for investment in the biopharmaceutical sector. As a result, the Fund should have the opportunity to invest in compelling biopharmaceutical opportunities that have attractive risk- return profiles. A number of factors support this positive view of the investment thesis in the biopharmaceuticals sector. First, the Fund will invest in a portfolio of biopharmaceutical companies with an emphasis on those that are developing targeted therapeutic opportunities that address mechanisms of disease at the molecular level with high specificity and offer meaningful efficacy and safety benefits to specific sub-groups of patients. Where possible, the Fund will look to invest in companies with product programs that are guided by validated biomarkers that can enable highly specific patient selection and provide an objective measurement of drug effect. The Fund Managers believe that opportunities with these characteristics offer important benefits to all market participants in the biopharmaceuticals sector, and that these substantially de-risk the R&D and commercial sides of the biopharmaceutical busine

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