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Healthcare 2020: Intelligent Medicine
                March, 2010
Issues and Opportunities in the Pharmaceutical Industry


                                    Issues                                Opportunities


                   •   Do I get a benefit?                 •   I see my therapy helping
    Patient        •   I know I get side effects           •   I am more in control
                   •   Is it worth it?                     •   I am rewarded for success



                   • What are the right drugs and doses?   •   Patient-specific therapy
    Physician      • Little time, too much to diagnose     •   Efficient, positive office visits
                   • Is it worth it?                       •   Focus on the right patients and issues



                   •   Is the branded drug necessary?      •   Objective measurement of benefit
    Payer          •   Most drugs don’t work over time     •   Post-market risk assessment
                   •   Is it worth it?                     •   Empowered members are happy/quiet



    Overall        • Dubious value, lack of trust, no      • Measured value, aligned goals, enduring
                     sustainable product loyalty             connection to product system

2
Proteus Snapshot

                                            Company Overview
     Founded in 2001
     Total of $115 million in financing (Carlyle, EWHV, Kaiser Permanente, Medtronic, St. Jude,
     Itochu, Novartis, ON Semiconductor, others)
     Unique organization
     Novel integrated circuit, MEMS and sensor design for custom medical applications
     Signal processing and software development for intra-body communication
     Product design, development and manufacturing from bench to clinical investigation
                                                                       Physician and
                                                                           Nurse
                                                                           Remote
     Strategic partnerships with global pharmaceutical and medical devices companies
                                                                         Connectivity


     300+ patent filings
                                                                        Patient
     3 programs in clinical trials
                                Personal
                                                                        Support
                                                                         Group
                                  Medical
                                                                      Connectivity
     Named a Technology Pioneer by the World Economic Forum and a Top 10 Technology
                                  Records

     Breakthrough in 2008 by Wired Magazine
     First product launch 2012




3
Proteus Approach: The “Networked Pill”


     Incorporate sensors into existing drugs; measure therapy delivery and its effect on
     individual patients

     Use this information, wellness tools and communication technologies to improve
     patient care and outcomes
          Increase productivity of clinical caregivers
          Include and acknowledge the family caregiver
          Empower patients and treat them like consumers

     Build on existing reimbursement driven revenue models
         Deliver greater medico-economic value to support reimbursement model
         Build direct connection to family and consumer to support subscription model
         Leverage network effects to maximize overall franchise revenue potential




4
Raisin Intelligent Pharmaceutical System




5
Networking the Daily Pills You Already Take


         Proteus Ingestible Event Marker (IEM)
                                                     •   Single < 1mm chip
                                                     •   Senses and signals unique
                                                         identifier when swallowed
                                                     •   Accurate: >97% detection in
                                                         human clinical trials
                                                     •   Safe: made from ingredients
                                                         in food
                                                     •   Cheap: 250,000 produced on
                                                         $1,000 wafer
                                                     •   Private: EKG-like signal
                                                         conducted only in body



          Enables Device-Based Sensing and Monitoring of Pharmaceuticals


6
Monitoring via a Band-Aid Familiar to Consumers




                                              •   Wearable sensing device
                                                  − Sensors for intelligent
                                                    pharmaceuticals
                                                  − Sensors for physiological
                                                    response

                                              •   Sensing of drug ingestion,
                                                  HR, respiration, physical
                                                  activity and body angle




          Enables Continuous Correlation of Therapeutic Event and Response


7
Information Delivered to the Cell Phone In Your Pocket




8
Summary: Raisin Enables Truly Personal Personalized Medicine


    • Combines behavioral and physiologic data at individual patient level

    • Customizable and collaborative care tool to affect behavior change

    • Compatible with other disease management devices

    • Consistent with global business and social trends
       • Anywhere, anytime mobile connectivity
       • Personal healthcare responsibility
       • Social networking and online health communities




9

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Proteus Overview

  • 1. Healthcare 2020: Intelligent Medicine March, 2010
  • 2. Issues and Opportunities in the Pharmaceutical Industry Issues Opportunities • Do I get a benefit? • I see my therapy helping Patient • I know I get side effects • I am more in control • Is it worth it? • I am rewarded for success • What are the right drugs and doses? • Patient-specific therapy Physician • Little time, too much to diagnose • Efficient, positive office visits • Is it worth it? • Focus on the right patients and issues • Is the branded drug necessary? • Objective measurement of benefit Payer • Most drugs don’t work over time • Post-market risk assessment • Is it worth it? • Empowered members are happy/quiet Overall • Dubious value, lack of trust, no • Measured value, aligned goals, enduring sustainable product loyalty connection to product system 2
  • 3. Proteus Snapshot Company Overview Founded in 2001 Total of $115 million in financing (Carlyle, EWHV, Kaiser Permanente, Medtronic, St. Jude, Itochu, Novartis, ON Semiconductor, others) Unique organization Novel integrated circuit, MEMS and sensor design for custom medical applications Signal processing and software development for intra-body communication Product design, development and manufacturing from bench to clinical investigation Physician and Nurse Remote Strategic partnerships with global pharmaceutical and medical devices companies Connectivity 300+ patent filings Patient 3 programs in clinical trials Personal Support Group Medical Connectivity Named a Technology Pioneer by the World Economic Forum and a Top 10 Technology Records Breakthrough in 2008 by Wired Magazine First product launch 2012 3
  • 4. Proteus Approach: The “Networked Pill” Incorporate sensors into existing drugs; measure therapy delivery and its effect on individual patients Use this information, wellness tools and communication technologies to improve patient care and outcomes Increase productivity of clinical caregivers Include and acknowledge the family caregiver Empower patients and treat them like consumers Build on existing reimbursement driven revenue models Deliver greater medico-economic value to support reimbursement model Build direct connection to family and consumer to support subscription model Leverage network effects to maximize overall franchise revenue potential 4
  • 6. Networking the Daily Pills You Already Take Proteus Ingestible Event Marker (IEM) • Single < 1mm chip • Senses and signals unique identifier when swallowed • Accurate: >97% detection in human clinical trials • Safe: made from ingredients in food • Cheap: 250,000 produced on $1,000 wafer • Private: EKG-like signal conducted only in body Enables Device-Based Sensing and Monitoring of Pharmaceuticals 6
  • 7. Monitoring via a Band-Aid Familiar to Consumers • Wearable sensing device − Sensors for intelligent pharmaceuticals − Sensors for physiological response • Sensing of drug ingestion, HR, respiration, physical activity and body angle Enables Continuous Correlation of Therapeutic Event and Response 7
  • 8. Information Delivered to the Cell Phone In Your Pocket 8
  • 9. Summary: Raisin Enables Truly Personal Personalized Medicine • Combines behavioral and physiologic data at individual patient level • Customizable and collaborative care tool to affect behavior change • Compatible with other disease management devices • Consistent with global business and social trends • Anywhere, anytime mobile connectivity • Personal healthcare responsibility • Social networking and online health communities 9