Rhenman & Partners Fund Rhenman Healthcare Equity L/S

Rhenman & Partners Fund Rhenman Healthcare Equity L/S

Rhenman Healthcare Equity L/S Rhenman & Partners / Historik / Fonden 2

Förvaltarteam Henrik Rhenman, Chief Investment Officer / Founding Partner (born 1957) Over 20 years of portfolio management experience 1999 2008 Founder and Chief Investment Officer, Carnegie Healthcare Funds, Carnegie Investment Bank 1997 1999 Managing Director, Portfolio Manager, SG Cowen, Boston 1991 1997 Portfolio Manager, SEB Pharmaceutical Fund 1988 1991 Head of Research, Head of Asset Management, Hagströmer & Qviberg 1978 1988 Pharmacia, Alfa-Laval Ellinor Hult, Analyst / Assistant Portfolio Manager (born 1981) 6 years experience of Equity Sales 2011 2012 Vice President, Non-Japan Asian Equity Sales, Samsung Securities, London 2006 2011 Vice President, Non-Japan Asian Equity Sales, Credit Suisse, London 2001 2006 Masters in Finance, Stockholm School of Economics 3

Enastående avkastningshistorik - #1 i världen, +25.3%/år Utveckling aug 1998 apr 2008 (USD, netto efter avgifter) Carnegie Global Healthcare Fund + 799 % Carnegie Medical¹ + 163 % Berkshire Hathaway (Warren Buffet) + 93 % MSCI Global Index + 40 % MSCI Healthcare Index + 20 % Ovanstående period hänvisar till fondens utveckling från start t.o.m. Henrik slutar på Carnegie i början av maj 2008. 1) January 1999 (inception) - Apr 2008 Source: Bloomberg 4

Rhenman Healthcare Equity L/S IC1 EUR (efter avgifter) 2013 + 55 % 2012 + 18 % 2011 + 10 % 2010 + 8 % 2009 + 13 % Sedan start (juni 22, 2009) + 147 % 5

Rhenman Healthcare Equity Long/Short Fund Fundamental inställning som stöds av ett Vetenskapligt Råd Global hedgefond med positiv grundsyn (nettoexponering normalt 70-150%) Fokuserad strategi: endast hälso- och sjukvårdssektorn, allokering oberoende av index Enastående avkastningshistorik Årligt mål på nettoavkastningen >12% 6

Vetenskapligt Råd An established portfolio management tool used over 10 years to highlight potentials and risks in clinical development. Quarterly official meetings. Frequent informal contacts. Professor Bertil Hållsten, Chairman Ph.D. from Stockholm School of Economics. Professor at the Royal Collage of Forestry. Various positions at SEB in asset management and from inception until 1992 responsible for SEB Pharmaceutical Fund. Previous board member of Conpharm, Karo Bio, Meda och Skandigen. Håkan Åström Med.Dr. (h.c.), M.Sc.(Econ), Chairman of the Board for Affibody Holding AB, PledPharma AB and Tubulus AB, board member of Ferrosan Medical Devices AS. Former Chairman of the board Swedish Orphan Biovitrum AB (SOBI ), Orexo AB and Ferrosan AS. CEO of Kabi Pharmacia AB, Pharmacia AB and Astra Pharmaceutical Ltd. Numerous previous senior positions in the pharmaceutical industry. Professor Peter Arner Professor of Medicine, Karolinska Institutet. Expert in metabolism, endocrinology and internal medicine. Professor Tomas Olsson Professor of Neurology, Karolinska Institutet. Expert in autoimmunity and diseases in the nervous system. Member of the Nobel Assembly. Head of neuroimmunology research at the Centre for Molecular Medicine, Karolinska Hospital. President of the International society of Neuroimmunology. Author of more than 400 scientific articles. Professor Sten Nilsson Professor of Oncology - Pathology, Radiumhemmet, Karolinska Institutet. Previously Managing Director of Radiumhemmet. 7

Externa medlemmar i styrelsen Professor Hans Wigzell, Chairman Professor of Immunology, Karolinska Institutet. President of the Karolinska Institute between 1995 2003. Professor in the Department of Immunology at Uppsala University and Department of Immunology at Karolinska Institutet. In 1988, he became Director General of the National Bacteriological Laboratory in Stockholm. In 1990, he was elected Chairman of the EU Concerted Research Programme into AIDS vaccination and from 1990 1992 he was Chairman of the Nobel Committee for Medicine and Physiology. In 1993, he was appointed Secretary-General of the Swedish Institute for Infectious Disease Control. Between 1999 and 2007, he was Chief Scientific Advisor to the Swedish Government. Prof. Wigzell was Chairman of the Nobel Assembly at Karolinska Institutet in 2000. He has published more than 600 articles and is a member of the editorial boards of several international journals. Birgitta Stymne Göransson M.Sc. Chemical Engineering/Biotechnology Royal Institute of Technology, MBA Harvard Business School. CEO of Memira Holding AB. Management consultant with McKinsey & Co. Several senior management and CFO positions in Swedish industry including: Gambro, Excorim, Telefos, Swedish Technical Attaches in Washington D.C. and Åhléns. Board member of Elekta AB. Håkan Åström Med.Dr. (h.c.), M.Sc.(Econ), Chairman of the Board for Affibody Holding AB, PledPharma AB and Tubulus AB, board member of Ferrosan Medical Devices AS. Former Chairman of the board Swedish Orphan Biovitrum AB (SOBI ), Orexo AB and Ferrosan AS. CEO of Kabi Pharmacia AB, Pharmacia AB and Astra Pharmaceutical Ltd. Numerous previous senior positions in the pharmaceutical industry. 8

Fondens egenskaper Generellt 60-80 kärninnehav i bara noterade bolag Typisk allokering: 2/3 i USA och 1/3 i övriga världen 1/4 vardera i läkemedel, bioteknik, medicinsk teknik och vård 1/3 vardera i små, medelstora och stora bolag Portföljbolags börsvärde > 200 miljoner USD (med sällsynta undantag) Kassaflödespositiva bolag är dominerande (vanligtvis 80%) Långsiktig placeringhorisont, men med aktiv handel 9

Nordic Hedge Award Det ursprungliga urvalet för Nordic Hedge Award bestod av cirka 130 fonder, vars förvaltare, förvaltarbolag eller fond har sin hemvist i Norden. Fem fonder nominerades inom vardera sju olika kategorier av förvaltarstilar, där sedan en jury bestående av sex branschexperter röstade individuellt för att avgöra den slutliga rangordningen inom respektive förvaltarstil. Arrangör: Nordic Business Media, ägare av HegdeFonder.nu och HedgeNordic.com 10

Ranked #1 in EuroHedge, +21.61% annualiserad avk (sep 2013) Ranked #1 among all 108 global hedge funds in the category Global Equity based on the fund s annualised compound return since inception, +20.85% Source: EuroHedge, Sep 2013 11

Rhenman Healthcare Equity L/S Hälso- och Sjukvårdssektorn 12

Hälso- och sjukvårdssektorn och emerging markets Oberoende prognoser ser en årlig stadig tillväxt på 5% på hälso- och sjukvårdssektorn (ca 11% vikt i ett globalt index) Hög innovationstakt och färre patentutgångar ger branschen medvind Makroekonomiskt en gynnsam miljö för sektorn som investering: blygsam global tillväxt ger låga räntor och investorer söker growth (ej cykliskt) Sektorn erbjuder många delsektorer som inte alltid behöver samvariera vilket ökar möjligheterna att diversifiera (läkemedel, bioteknik, medicinsk teknik och service) Emerging markets blir en allt viktigare drivkraft för den globala hälso- och sjukvårdsmarknaden 13

1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 Hälso- och sjukvårdskostnader som andel av BNP, 1960-2009 % 20 18 16 Canada 14 Japan 12 United Kingdom United States 10 OECD 8 6 4 2 0 Source: OECD Health Data 2011 14

Annual average growth rate in real health expenditure per capita (%) Hälso- och sjukvårdskostnaderna ökar uppskattningsvis dubbelt så snabbt som den årliga tillväxten i BNP, 2000-2009 12 10 SVK ITA DNK MEX FRA DUE CHE PRT IRL NZL GBR BEL ESP FIN CAN NOR SWE USA JPN AUT ISR ISL NLD OECD LUX AUS HUN 0-1 0 1 2 3 4 5 6 Annual average growth rate in real GDP per capita (%) Source: OECD Health Data 2011 8 6 4 2 CHL SVN CZE KOR TUR POL GRC EST 15

Hälso- och sjukvårdssektorn överavkastning 1995-2013 16

Bioteknik överavkastar långsiktigt 17

Delsektorer sedan fondstart Source: Bloomberg Service. 18

Bioteknik fortsätter att vara mest viktig för tillväxten Source: IMS Market Prognosis, May 2012 19

Global försäljning på mediciner Bioteknik-läkemedel Source: IMS Market Prognosis, May 2012 20

Cancer dominerar forskningsportföljerna Source: IMS Market Prognosis, May 2012 21

Globalt topp-20 behandlingsområden Source: IMS Market Prognosis, May 2012 22

ASCO - Immunterapi kronisk cancerbehandling? Dagens cancerbehandling är framförallt: kirurgiska ingrepp, kemoterapi och strålterapi. Immunterapi hjälper immunförsvaret att se tumören. Tumören gömmer sig från immunförsvaret genom att producera antigener. Immunterapi tar bort tumörens slöja immunförsvaret kan se den. Först fokus på cancerformerna malignt melanom, njurcancer och lungcancer. ~60% av all cancerterapi om 10 år ->10-35 bn USD (Citi est). 23

ASCO - Immunterapi kronisk cancer? T-celler är normalt programmerade att leta upp och döda cancer. T-cellerna har en av- och på knapp som kallas PD-1. Source: Genentech 24

ASCO - Immunterapi kronisk cancer? Tumörer producerar PD-L1 som binder PD-1 och släcker T- cellsaktiviteten. Immunterapins mål är alltså att tända T-cellerna så de blir aktiva igen. Source: Genentech 25

Hur investera i cancerimmunterapi? Bristol-Myers Squibb: PD-1: NIVO (nivolumab) Ph 3: lungcancer, njurcancer, malignt melanom Har börjat studier i fler andra cancerformer (blod och andra organ). Yervoy (CTLA4) redan godkänt, bra i kombination? 41% av patienterna >80% tumörreduktion Merck: PD-1: LAMBRO (lambrolizumab) Bästa Respons Rate: 52% (CR: 10%) mot Malignt Melanom. Roche: PD-L1-2 år efter, men kan ha färre bieffekter, särskilt lungrelaterade. Ph2 data från ASCO: ORR = 29% 26

Delsektorer: Biotech - ALEXION Särskilda sjukdomar 23 mdr USD marknadsvärde Soliris pris: 400 000 USD / patient / år PNH (2007) - prevalens:15 / million röda blodkroppar förstörs -> anemi, utmattning, blodproppsbildning ahus (2011) - prevalens: 5-10 / million njurar och blodkroppar angrips. 60% är barn Asfotase Alfa (2014E) -> HPP 50% dör innan 1års ålder Förlust: 1996-2007. 2008: liten vinst: 33 mn USD. 2013E: 617 mn USD P/E 2012: 65x, P/E 2013E: 40x, P/E 2017E: 18x 27

Emerging Markets det stora bidraget till tillväxt i sektorn Source: Citi 28

Emerging markets Bidraget betydelsefullt till den globala hälso- och sjukvårdsmarknaden Expansion av statliga sjukförsäkringar är ett viktigt tema. Kina, Ryssland och Brasilien är särskilt viktiga Ökad BNP, kroniska sjukdomar, tillgång till sjukvård, demografi, är viktiga makrotrender som stödjer efterfrågan Kina ställer om från infrastrukturinvesteringar till konsumtion. Prioriterade områden: Hälsovård, miljö och utbildning 29

Global försäljningstillväxt accelererar tom 2016 Source: IMS Market Prognosis, May 2012 30

UBS prognos för den globala läkemedelsmarknaden Health, WHO, IMF, US Census Bureau, Bureau of Labor Statistics, US Patent and Trademark Office, UBS (with permission) 31

E7 ökning av försäljning 2008-2020, Kina största bidragsgivare 32

Branded Generika är halva marknaden i emerging markets 33

Delsektorer: Pharma tillväxtmarknader allt viktigare Source: Redburn Research. 34

Stark ökning av diabetes förekomst i Asien 35

Diabetes kraftig ökning Emerging markets 36

Näst bästa sektor globalt 2013 Per 131231, the ishares S&P Global Healthcare Sector Index Fund is a subset of the Standard & Poor's Global 1200 Index. 37

Är det roliga över nu? Antagligen inte Läkemedelsaktier är fortfarande ca 25% undervärderade relativt sitt historiska snitt Obamacare gör att USA-marknaden kan överraska positivt Emerging markets ger hög kvalitet på tillväxten Demografiska utvecklingen gynnar sektorn Intresset för bioteknik avspeglar stora kliv framåt inom FoU Största patentutgångarna är bakom oss 2014-2020 kan bli bra år för industrin 38

Peaken på patentutgångar är passerad Source: Citi 39

Flera nya läkemedel per år Source: IMS Market Prognosis, May 2012 40

P/E tal för healthcare-index 1995-2013 41

Delsektorer: Pharma - nyckeltal Source: Bernstein 42

Johnson & Johnson: P/E tal över tiden 1979-2013 43

Roche: Multipelexpansion 44

Månadsbrev -Månadsmöte Vill du ha vårt månadsbrev? Kontakta: camilla.hermansson@rhepa.com Var månad håller vi vår First Thursday presentation där Henrik Rhenman berättar om fondens utveckling. Henrik Mitelman inleder med makroanalys. Inbjudan sker via månadsbrevet - hjärtligt välkommen! Har du frågor om fonden? Kontakta: Mail: anders.grelsson@rhepa.com Mobil: 0703-744 320 45

Rhenman Healthcare Equity L/S IC1 EUR (efter avgifter) 2013 + 55 % 2012 + 18 % 2011 + 10 % 2010 + 8 % 2009 + 13 % Sedan start (juni 22, 2009) + 147 % 46

Rhenman Healthcare Equity L/S Appendix 47

Kapital under förvaltning 48

Fond fakta Basvaluta: Köp och försäljning: EUR, ingen säkring av valutor Månadsvis (T-3) Stängt för nya investerare MEUR 500 Stängd Rapportering och månadsbrev: Avgiftsstruktur: Jämförelse index: High Water Mark, resultat baserad: Struktur fonden: Fondförmögenhet per 2013-12-31: EUR 1 bn Månadsvis Fast och resultat baserad Euribor 90D Efter nedgång måste fonden överskridit sin föregående högsta nivå Vi förvaltar fonden diskretionärt åt SEB drygt 1,6 mdr SEK 49

Struktur Legal Structure: Fund Management Company: Fund Promoter (Sponsor): Investment Manager: Placement and Distribution Agent: Custodian Bank and Paying Agent: Prime Broker: External Auditor: Open-ended FCP (Fonds Commun de Placement) under Part II of the Luxembourg Law on Investment Funds (20 Dec, 2002) SEB Fund Services S.A. SEB Fund Services S.A. Rhenman & Partners Asset Management AB (supervised by the Swedish Financial Supervisory Authority. FI ID nr: 035221) Rhenman & Partners Asset Management AB Skandinaviska Enskilda Banken S.A. Skandinaviska Enskilda Banken AB (publ) PricewaterhouseCoopers (PwC) 50

Risk management Liquidity constraints Individual equity positions maximum 25% of ADV (average daily volume) for 75% of portfolio Stop-loss After -6% NAV in a single month => reduce risk VAR (Value at Risk) Target max 3%/day (95% confidence interval) 51

En fond- flera fondklass alternativ Institutional, EUR Currency Minimum initial investment Minimum top-up investment Management fee Performance fee Hurdle rate Performance fee method Class IC4 (EUR) EUR 20 000 000 No minimum 0.75% 10% 5%/year Annual, individual Class IC3 (EUR) EUR 5 000 000 No minimum 1.50% 10% Euribor 90D Quarterly, collective Class IC2 (EUR) EUR 5 000 000 No minimum 1.00% 20% Euribor 90D Quarterly, individual Class IC1 (EUR) EUR 250 000 No minimum 1.50% 20% Euribor 90D Quarterly, collective Retail, EUR Class RC1 (EUR) EUR 2 500 No minimum 2.00% 20% Euribor 90D Quarterly, collective Institutional, SEK Class IC2 (SEK) SEK 50 000 000 No minimum 1.00% 20% Euribor 90D Quarterly, individual Class ID1 (SEK) utd SEK 2 500 000 No minimum 1.50% 20% Euribor 90D Quarterly, collective Retail, SEK Class RC2 (SEK) SEK 2 500 000 No minimum 1.50% 20% Euribor 90D Quarterly, collective Class RC1 (SEK) SEK 500 No minimum 2.00% 20% Euribor 90D Quarterly, collective 52

Disclaimer Rhenman Healthcare Equity L/S Fund, the Fund is not an investment fund as defined in the European By accessing and using the http://rhepa.com/ website and any pages thereof, you acknowledge that you Union directives relating to undertakings for collective investment in transferable securities (UCITS). Legal have reviewed the following important legal information and understand and agree to the terms and information regarding Fund is contained in the Prospectus and the KIID, available at Rhenman & Partners conditions set therein. If you do not agree to the terms and conditions in this disclaimer, do not access or Asset Management AB (Rhenman & Partners) webpage: http://rhepa.com/the-fund/prospectus/. use http://rhepa.com/website in any way. This material has been prepared by Rhenman & Partners for professional and non-professional investors. Products and services described herein are not available to all persons in all geographical locations. 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The value of investments may fall as well as rise and investors may not get back the amount invested. Changes in rates of foreign exchange may cause the value of investments to go up or down. Before making an investment decision, an investor and/or its adviser should (i) consider the suitability of investments in the Fund with respect to its investment objectives and personal situation and (ii) consider factors such as its personal net worth, income, age, risk tolerance, and liquidity needs. Short-term investors and investors who cannot bear the loss of some or all of their investment or the risks associated with the limited liquidity of an investment should not invest. Due care and attention has been used in the preparation of this information. However, actual results may vary from their forecasts, and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of Rhenman & Partners. Rhenman & Partners cannot guarantee that the information contained herein is without fault or entirely accurate. There may be delays, omissions or inaccuracies in the information. Any dated information is published as of its date only and no obligation or responsibility is undertaken to update or amend any such information. The information in this material is based on sources that Rhenman & Partners believes to be reliable. Rhenman & Partners can however not guarantee that all information is correct. Furthermore, information and opinions may change without notice. Rhenman & Partners is under no obligation to make amendments or changes to this publication if errors are found or opinions or information change. Rhenman & Partners accepts no responsibility for the accuracy of its sources. Rhenman & Partners is the owner of all works of authorship including, but not limited to, all design, text, images and trademarks in this material unless otherwise explicitly stated. The use of Rhenman & Partners material, works or trademarks is forbidden without written consent except where otherwise expressly stated. Furthermore, it is prohibited to publish material made or gathered by Rhenman & Partners without written consent. latest valid sales prospectus with its terms of contract. Subscriptions cannot be received on the basis of financial reports. 53