Confidential Draft

Project Jaguar

Presentation to the Board of Directors

May 10, 2014

Goldman Stanley
Table of Contents

Executive Summary 3
Jaguar Valuation 5
Potential Strategic Partners 25
Process Recommendations 38
Appendix 43

Goldman Stanley 2
Executive Summary

Goldman Stanley 3
Executive Summary

As of May 9, 2014, Jaguars share price and valuation multiples have more than doubled over the last twelve months

Even at its current levels, however, Jaguar is still undervalued relative to peer specialty pharmaceutical companies,
and on an intrinsic, cash-flow basis

Given its prominence in the market, the record healthcare M&A activity in the first half of this year, and the soaring
interest in tax inversion deals, Jaguar could make for an attractive acquisition candidate

Such a strategy would allow Jaguar to maximize shareholder value, expand its geographic reach and distribution
channels, and acquire more resources for future research & development efforts and/or M&A activity

Given Jaguars unique attributes, we believe a purchase premium above 50%, implying a share price of ~$200+, is
possible with the proper positioning and process

We recommend a highly targeted process focused on the most likely (Tier 1) potential partners, along with an
outreach to Tier 2 potential partners while discussions with Tier 1 partners are ongoing

Goldman Stanley 4
Jaguar Valuation

Goldman Stanley 5
Valuation Summary Operating Scenarios

Base Case Management Case

Peak Xyrem Revenue $2.0 billion in FY 20 $4.2 billion in FY 21

Xyrem Revenue After Peak $300 million / year $377 million / year

Xyrem Generics Entrance Year FY 20 FY 21

Annual Price Increases CAGR of 6%; max of ~$79,000 CAGR of 11%; max of
Through Peak Revenue in FY 21 ~$122,000 in FY 21

Increases from 7% in FY 13 to Increases from 7% in FY 13 to

Xyrem Market Penetration
19% in FY 23 24% in FY 23

Steady between 54-56% until Steady between 55-57% until

EBITDA Margins
generics enter generics enter

Goldman Stanley 6
Summary of Valuation Implications

Jaguar appears to be undervalued by 50%+ in the Management Case and 10-

#1 Implied Valuation
20% in the Base Case

Comparable Also point to the same result Jaguar trades below the median EV / EBITDA
#2
Companies multiple of peer companies

Discounted Cash Flow Produces the highest implied valuation, primarily because Jaguars value is
#3
(DCF) Analysis heavily dependent on Xyrem pricing 5-10 years into the future

Precedent Similar M&A deals imply a much lower valuation, but we believe these
#4
Transactions multiples are less relevant due to the lack of comparable deals

Goldman Stanley 7
Base Case Financial Projections
($ USD in Millions except for $ per Share Figures)

Goldman Stanley 8
Management Case Financial Projections
($ USD in Millions except for $ per Share Figures)

Goldman Stanley 9
Revenue and EBITDA: Management Case vs. Base Case
($ USD in Billions)

Revenue Projections
$6.0 B $5.4 B
$5.0 B $4.6 B
$3.9 B
$4.0 B Management
$3.2 B
$3.0 B $2.6 B Base
$2.0 B $1.8 B
$2.0 B $1.6 B $1.7 B
$1.2 B
$1.0 B

$0.0 B
42004 42369 42735 43100 43465 43830 44196 44561 44926 45291

EBITDA Projections
$3.5 B
$3.0 B
$3.0 B
$2.6 B
$2.5 B $2.2 B
Management
$2.0 B $1.8 B
Base
$1.5 B
$1.5 B $1.1 B
$0.9 B $0.9 B $0.9 B
$1.0 B $0.6 B
$0.5 B
$0.0 B
42004 42369 42735 43100 43465 43830 44196 44561 44926 45291

Goldman Stanley 10
Projected Xyrem Sales Pricing vs. Patient Growth
($ USD in Millions)

Goldman Stanley 11
Valuation Summary Base Case
($ USD in Dollars as Stated)
Jaguar Current Share Price(1):

Public Company Comparables:

LTM EV / Revenue:
2014-12-31 E EV / Revenue:
2015-12-31 E EV / Revenue:
LTM EV / EBITDA:
2014-12-31 E EV / EBITDA:
2015-12-31 E EV / EBITDA:
LTM Reported P / E:
2014-12-31 E Reported P / E:
25th to Median
2015-12-31 E Reported P / E:
Median to 75th
Precedent Transactions:
LTM EV / Revenue:
LTM EV / EBITDA:
Discounted Cash Flow Analysis:
7.0% - 9.0% Discount Rate, (1.0%)
1.0% Terminal FCF Growth Rate:
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00
Implied Share Price

All market data as of May 9, 2014

Given that Jaguars revenue growth, EBITDA growth, and EBITDA margins exceed those of its peer
companies, we believe a valuation in the 75 th percentile to maximum of the set is justified

Goldman Stanley (1) Financial data as of May 9, 2014. 12

Valuation Summary Management Case
($ USD in Dollars as Stated)
Jaguar Current Share Price(1):

Public Company Comparables:

LTM EV / Revenue:
2014-12-31 E EV / Revenue:
2015-12-31 E EV / Revenue:
LTM EV / EBITDA:
2014-12-31 E EV / EBITDA:
2015-12-31 E EV / EBITDA:
LTM Reported P / E:
2014-12-31 E Reported P / E:
25th to Median
2015-12-31 E Reported P / E:
Median to 75th
Precedent Transactions:
LTM EV / Revenue:
LTM EV / EBITDA:
Discounted Cash Flow Analysis:
7.0% - 9.0% Discount Rate, (1.0%)
1.0% Terminal FCF Growth Rate:
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00
Implied Share Price

All market data as of May 9, 2014

The rest of this discussion will utilize the Management Case projections; these figures imply a
valuation closer to $200 per share

Goldman Stanley (1) Financial data as of May 9, 2014. 13

Jaguar Comparable Public Companies
Specialty Pharmaceutical Companies That Sell Primarily Branded Drugs, with LTM Revenue Between $500 Million and $2 Billion

($ USD in Billions)

Comparable Public Companies Revenue and EBITDA, CY 2014E CY 2015E (1)

$3.0 B

$2.5 B

$2.0 B
CY 2014E
$1.5 B
CY 2015E
$1.0 B

$0.5 B

$0.0 B

$1.5 B

$1.0 B

$0.5 B
CY 2014E
CY 2015E
$0.0 B

($0.5 B)

($1.0 B)

Goldman Stanley (1) Financial data as of May 9, 2014. 14

Jaguar Comparable Public Companies
Specialty Pharmaceutical Companies That Sell Primarily Branded Drugs, with LTM Revenue Between $500 Million and $2 Billion

Comparable Public Companies Growth and Valuation Multiples, CY 2014E CY 2015E (1)

Revenue Growth, CY 2014E - CY 2015E EBITDA Growth, CY 2014E - CY 2015E

120% 111% 160%
137%
140%
100%
120%
80% 100%
60% 80%
38% 60%
40% 32% 38% 41%
23% 40%
21% 18% 22%
20% 11% 20% 14% 10%
6%
0% 0%
0% 0%

CY 2015E Revenue Multiples CY 2015E EBITDA Multiples

14.0 x 100.0 x
90.0 x 85.8 x
12.0 x 11.6 x 11.6 x
80.0 x
10.0 x
9.7 x
70.0 x
60.0 x
8.0 x
50.0 x
5.9 x
6.0 x 4.8 x 40.0 x
4.1 x 30.0 x
4.0 x 3.4 x 20.5 x 22.7 x
1.9 x 20.0 x
2.0 x 9.2 x 10.2 x 6.8 x 10.0 x
10.0 x
0.0 x 0.0 x
0.0 x

Goldman Stanley (1) Financial data as of May 9, 2014. 15

Jaguar Precedent Transactions
North American Pharmaceutical Sellers with Between $200 Million and $2 Billion In LTM Revenue, Jan. 1, 2009 May 9, 2014

($ USD in Millions)

Goldman Stanley 16
Jaguar DCF Analysis Free Cash Flow Projections
($ USD in Millions)

Goldman Stanley 17
Jaguar DCF Analysis Implied Share Price Calculations
($ USD in Millions except for $ per Share Figures)

Goldman Stanley (1) Financial data as of May 9, 2014. 18

Jaguar DCF Analysis Sensitivities
($ USD in Dollars as Stated)

Goldman Stanley 19
Other Valuation Considerations
Corporate Headquarters in
Ireland and Lower Effective
Tax Rate
Alternative Valuation
Methodologies May Provide
Additional Insight Into
Jaguars Intrinsic Value
Goldman Stanley
Results
Jaguars corporate status in Ireland
makes it an attractive candidate for a
tax inversion deal
Effective tax rate of 18% vs. statutory
US rate of 35-40% could effectively
add billions in value for the right
acquirer
Premiums Paid analysis for
comparable transactions indicates
per-share premium of 30-40% in
recent deals
Implied valuation is significantly
higher than multiples analysis from
comparable public companies and
precedent transactions
Implications and Examples
Salix Pharmaceuticals: Reduced tax
rate would increase CY2015E Net
Income from ~$450 million to ~$567
million, and would add $2 billion to
companys Equity Value and
Enterprise Value
$2 billion represents $31.52 per share
for Jaguar
Actavis / Forest Labs: 31% premium
paid over average 10-day price prior
to deal
Mallinckrodt / Cadence: 32%
premium paid over average 30-day
price
Salix / Santarus: 39% premium paid
over average 30-day price
20
Jaguars Corporate Structure Provides Advantages to Partners
Ireland
Italy

Jaguar Public Limited U.S.A.

Company Bermuda
Switzerland

Jaguar Investments I
Jaguar Italy S.p.A. Jaguar, Inc. Jaguar Financing I, Ltd.
Limited

Jaguar (EUSA Pharma Jaguar International III

Gentium S.p.A. JPI Commercial, LLC
USA) Inc. Limited

Gentium Gmbh Pharmelle LLC

AxCell Biosciences
Prostagen, Inc.
Corporation

Goldman Stanley 21
Other Valuation Considerations
Jaguar is also trading at a discount to recent stock price highs:

9
-0
05
-
14
20
Given the stock price run-up over the past year, it may or may not be realistic to aim for the all-time high; however, the
valuation methodologies imply that a per-share price in that range is plausible

Goldman Stanley 22
Summary Profile of Equity Shareholders

Commentary:
Banks / Investment
Gross Common Share Count: 55,751,243 (1) Banks: Other:
Individuals / 4% 2%
Major institutional investors represent Insiders:
approximately 40% of share ownership 4%

Largest institutional shareholders include:

Putnam: 6,102,213 (10.5%) Hedge Funds:
Fidelity: 5,333,862 (9.2%) 9%
Vanguard: 3,162,658 (5.5%)
Janus Capital: 2,709,782 (4.7%)

Insider ownership represents approximately 4%

of shares outstanding:
Seamus Mulligan (Director): 1,453,305
(2.5%)
Bruce Cozadd (CEO): 471,310 (0.8%)
Kathryn Falberg (ex-CFO): 95,137 (0.2%) Investment
Managers:
Given the lack of activist investors and the high 81%
percentage of shares held by traditional
investment managers, the chances of a
challenge to a potential deal are low

Source: Company proxy statements, investor filings, and Capital IQ.

Goldman Stanley (1) As of March 31, 2014 10-Q filing. 23
Valuation Conclusions

The companys margins and growth rates exceed those of its peer companies,
75th Percentile
#1 indicating that it should be valued in-line with the 75th percentile of the
Valuation is Justified
comparable company set

This price represents a 50%+ premium to Jaguars current share price; greater
#2 Goal: $200 / Share
upside might be possible with a highly complementary partner

Discounted Cash Flow Implied value is between $170 and $240 / share, based on a conservative
#3
(DCF) Analysis Discount Rate and Terminal Value and Managements financial projections

Premiums Paid Premiums Paid indicate a median 30-day average price premium of ~40%,
#4
Analysis implying a per-share value of $190 for Jaguar

Goldman Stanley 24
Potential Strategic Partners

Goldman Stanley 25
Potential Strategic Partners

Size, ability to pay, tax/corporate headquarters status, product/pipeline, and strategic fit should all be considered

US-headquartered partners are ideal since tax rates are highest there; several Canadian and Israeli companies could
also qualify since tax rates are also higher than those in the UK and Ireland

Both branded and generics companies should be considered, in light of recent M&A activity

Tier 1 Potential Partners Tier 2 Potential Partners

Market Cap: Significantly larger than Jaguar Closer to Jaguars size

Headquarters and Tax US-based with US corporate tax US-based with US corporate tax
Status: rates rates

Strategic Fit: Solid product and pipeline fit Solid product and pipeline fit

Goldman Stanley 26
Potential Strategic Partners

Tier 1 Potential Partners

Tier 2 Potential Partners

Goldman Stanley 27
Overview of Tier 1 Potential Partners
($ USD in Billions)
Potential Market Debt & Enterprise Leverage Strategic Ability to
Partner: Cap(1): NCI(1): Cash(1): Value(1): Ratio(1): Fit: Pay: Comments:
Primarily < $1B acquisitions
$36.3 $8.7 $0.3 $44.7 3.6 x in the past; rumors of Actavis
and Forest Labs
Primarily < $100 million
$84.6 $32.0 $19.8 $96.8 4.3 x acquisitions, except for $10
billion Onyx deal
Last deals over $1 billion
$81.7 $7.7 $7.1 $82.4 1.7 x took place 2-3 years ago;
smaller recent acquisitions
Last major deal was
$121.0 $10.1 $6.5 $124.6 1.4 x Pharmasset ($11 billion) two
years ago
Typically does only very
$281.0 $17.3 $29.4 $268.9 0.7 x small tuck-in deals

Has completed primarily

$62.9 $5.3 $5.2 $63.0 0.8 x smaller, tuck-in M&A deals
over the past 2-3 years
Last major deals were 5
$160.2 $30.8 $20.5 $170.5 1.9 x years ago; rumors of interest
in Cubist Pharmaceuticals
Mostly minor deals except
$44.0 $17.5 $0.6 $60.9 5.6 x for $8.7 billion acquisition of
Bausch & Lomb last year
No major recent deals;
$186.1 $37.5 $33.9 $189.6 1.7 x announced $10 billion buy-
back plan last year

Goldman Stanley (1) Financial data as of May 9, 2014. 28

Company Profile: Allergan
($ USD in Billions) Business Description Management Team
Allergan plc develops, manufactures, and distributes generic, Paul Bisaro Executive Chairman
branded, biosimilar, and over-the-counter (OTC) pharmaceutical Brenton Saunders CEO
products. It operates in three segments: North American Brands, Maria Hilado CFO
North American Generics and International, and Anda Distribution. James DArecca CAO
A. Robert BaileyCLO
The company also develops and out-licenses generic Jonathon Kellerman EVP
Allergan pharmaceutical products primarily in Europe through its third-party John Kelly EVP
Headquarters: Parsippany, NJ business, and it sells its generic and brand pharmaceutical products Sigurd Kirk EVP, Bus. Dev.
Employees: 21,600 primarily to drug wholesalers, retailers, and distributors.
Founded: 1983

Financial Information(1) Business Segments and Product Lines Key Partners

Market Cap: $36.3 North American Brands Provides patented and off-patent Amgen Biosimilar versions of
Cash: $0.3 trademarked pharmaceutical products primarily under the Herceptin, Avastin, Rituxan/Mab
Debt, Preferred & NCI: $8.7 Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Thera, and Erbitux
LTM Revenue: $9.4 Linzess, Namenda, Namenda XR, Saphris, Teflaro, Viibryd,
LTM EBITDA: $2.4 Actonel, Asacol HD, Atelvia, Delzicol, Doryx, Estrace Cream, Ironwood Pharmaceuticals
CY 2014E Revenue: $12.9 Enablex, Lo Loestrin Fe, and Minastrin 24 Fe brands. Commercial development of
CY 2014E EBITDA: $3.8 Linzessfor
CY 2015E Revenue: $13.5 North American Generics and International Develops,
CY 2015E EBITDA: $4.2 manufactures, and sells generic, branded generic, and OTC Sanofi-Aventis
pharmaceutical products.
One-Year Price History(1) Trevena Development of
Anda Distribution Distributes generic and brand TRV027
pharmaceutical products primarily to independent pharmacies,
pharmacy chains and buying groups, and physicians offices.

Goldman Stanley (1) Financial data as of May 9, 2014. 29

Company Profile: Amgen
($ USD in Billions) Business Description Management Team
Amgen Inc., a biotechnology company, discovers, develops, Robert BradwayChairman & CEO
manufactures, and delivers human therapeutics worldwide. It David Meline CFO
focuses on the treatment of illness in the areas of oncology, M. Balachandran EVP,
hematology, inflammation, bone health, nephrology, cardiovascular, Operations
and general medicine. Anetta L. Such CAO
Diana McKenzie CIO
Amgen The company serves pharmaceutical wholesale distributors; and Cynthia Patton CCO
Headquarters: California physicians or their clinics, dialysis centers, hospitals, and
Employees: 17,900 pharmacies, as well as consumers. It also develops various
Founded: 1980 products that are in various stages of clinical trials.

Financial Information(1) Business Segments and Product Lines Key Partners

Market Cap: $84.6 Neulasta A pegylated protein to decrease the incidence of Xencor Strategic collaboration
Cash: $19.8 infection associated with chemotherapy-induced febrile
Debt, Preferred & NCI: $32.0 neutropenia in cancer patients AstraZeneca, Takeda
LTM Revenue: $19.0 Pharmaceutical, UCB, Novartis,
LTM EBITDA: $7.6 NEUPOGEN A recombinant-methionyl human granulocyte Bayer Healthcare
CY 2014E Revenue: $20.2 colony-stimulating factor for reducing the incidence of infection Pharmaceuticals Collaborative
CY 2014E EBITDA: $9.1 as manifested by febrile neutropenia for patients with non- agreements
CY 2015E Revenue: $21.4 myeloid malignancies
CY 2015E EBITDA: $11.2
Enbrel Treatment for rheumatoid arthritis, plaque psoriasis,
One-Year Price History(1) and psoriatic arthritis in adult patients

Other Products EPOGEN (Dialysis), Aranesp (anemia),

XGEVA (prevention of skeletal problems), Prolia (osteoporosis),
Sensipar/Mimpara (chronic kidney disease), Kyprolis (lung
cancer), Nplate (thrombopoietic compound),Vectibix (human
monoclonal antibody), and BLINCYTO (leukemia)

Goldman Stanley (1) Financial data as of May 9, 2014. 30

Company Profile: Bristol-Myers Squibb
($ USD in Billions) Business Description Management Team
Bristol-Myers Squibb Company discovers, develops, licenses, Giovanni Caforio CEO
manufactures, markets, distributes, and sells biopharmaceutical Charles Bancroft CFO
products worldwide. Francis Cuss CSO
Paul Von Autenried CIO
It provides chemically-synthesized drugs or small molecules, and Anne Nielsen CCO
biologics in various therapeutic areas, including virology comprising Emmanuel Blin SVP
Bristol-Myers-Squibb human immunodeficiency virus infection (HIV); oncology; Joseph Caldarella
Headquarters: New York neuroscience; immunoscience; and cardiovascular. SVP/Controller
Employees: 25,000
Founded: 1887

Financial Information(1) Business Segments and Product Lines Key Partners

Market Cap: $81.7 Currently Available Products Baraclude (Chronic hepatitis Gilead Licensing agreements
Cash: $7.1 B); Daklinza (hepatitis C); Reyataz and Sustiva (HIV); Erbitux and co-development/co-promotion
Debt, Preferred & NCI: $7.7 (IgG1 monoclonal antibody); Sprycel (multi-targeted tyrosine agreements
LTM Revenue: $16.4 kinase inhibitor); Yervoy (metastatic melanoma); Abilify
LTM EBITDA: $4.3 (schizophrenia, bipolar mania disorder, and depressive disorder); Allergan Development and
CY 2014E Revenue: $15.9 Orencia (rheumatoid arthritis); Eliquis (stroke prevention in atrial commercialization
CY 2014E EBITDA: $4.0 fibrillation)
CY 2015E Revenue: $16.0 AstraZeneca, Pfizer Co-
CY 2015E EBITDA: $3.8 Development-Stage Products Opdivo (human monoclonal development and co-promotion
antibody for lung cancer, renal cell cancer, and melanoma agreement
One-Year Price History(1) Phase III trials); Beclabuvir (HCV Phase III trials); Elotuzumab
(multiple myeloma Phase III trials); BMS-663068 (HIV-1) FivePrime, Ambrx, Adaptive, The
Medicines Company, Tibotec
Co-development agreements

Goldman Stanley (1) Financial data as of May 9, 2014. 31

Company Profile: Gilead Sciences
($ USD in Billions) Business Description Management Team
Gilead Sciences, Inc., a biopharmaceutical company, discovers, John Martin Chairman & CEO
develops, and commercializes medicines in areas of unmet medical John Milligan President & COO
need in North America, South America, Europe, and the Asia- Robin Washington CFO
Pacific. It focuses on HIV treatment, liver disease, certain cancers, Norbert Bischofberger CSO
and other conditions such as cystic fibrosis. Brett Pletcher EVP
Muzammmil Mansuri EVP
Gilead Sciences The company markets its products through its commercial teams
Headquarters: California and/or in conjunction with third-party distributors and corporate
Employees: 7,000 partners.
Founded: 1987

Financial Information(1) Business Segments and Product Lines Key Partners

Market Cap: $121.0 HIV-Related Stribild, Complera/Eviplera, Atripla, Truvada, Bristol-Myers Squibb Company,
Cash: $6.5 Viread, Emtriva, Tybost, and Vitekta for treatment in adults Janssen R&D Ireland, and Japan
Debt, Preferred & NCI: $10.1 Tobacco Inc. Agreements to
LTM Revenue: $13.7 Liver Disease Harvoni, Sovaldi, Viread, and Hepsera develop and commercialize
LTM EBITDA: $7.1 various products
CY 2014E Revenue: $24.7 Other Products Zydelig (certain blood cancers); Letairis
CY 2014E EBITDA: $16.5 (pulmonary arterial hypertension); Ranexa (chronic angina);
CY 2015E Revenue: $31.2 Lexiscan/Rapiscan (pharmacologic stress agent); Cayston
CY 2015E EBITDA: $23.3 (cystic fibrosis); Tamiflu (influenza A and B); AmBisome (fungal
infections); Macugen (neovascular age-related macular
One-Year Price History(1) degeneration)

Development-Stage Products Pipeline drugs include ones

targeted at HIV/AIDS, hepatitis B and hepatitis C,
inflammation/oncology, and serious cardiovascular and
respiratory conditions

Goldman Stanley (1) Financial data as of May 9, 2014. 32

Company Profile: Johnson & Johnson
($ USD in Billions) Business Description Management Team
Johnson & Johnson, together with its subsidiaries, researches and Alex Gorsky Chairman & CEO
develops, manufactures, and sells various products in the health Dominic CarusoCFO
care field worldwide. It operates in three segments: Consumer, Stephen Cosgrove CAO
Pharmaceutical, and Medical Devices. Paulus Stoffels CSO
Joaquin Duato Pharma. Chair
The company distributes its products to general public, retail outlets
Johnson & Johnson and distributors, wholesalers, hospitals, and health care
Headquarters: New Jersey professionals for prescription use in the professional fields by
Employees: 126,500 physicians, nurses, hospitals, and clinics.
Founded: 1885

Financial Information(1) Business Segments and Product Lines Key Partners

Market Cap: $281.0 Consumer Baby care and oral care products; skin care AstraZeneca, Bristol-Myers
Cash: $29.4 products such as Aveeno, Clean & Clear, Dabao, Le Petite Squibb, and GalaxoSmithKline
Debt, Preferred & NCI: $17.3 Marseillais, Lubriderm, Neutrogena; womens health products Various development and
LTM Revenue: $71.9 such as Stayfree and Carefree; Tylenol, Sudafed, Benadryl, and distribution agreements for
LTM EBITDA: $23.7 Zyrtec pipeline drugs
CY 2014E Revenue: $74.2
CY 2014E EBITDA: $24.8 Pharmaceutical Various products in immunology, infectious Takeda Pharmaceutical
CY 2015E Revenue: $70.2 diseases, neuroscience, oncology, and cardiovascular and Development partnership for
CY 2015E EBITDA: $23.2 metabolic diseases small-molecule drugs

One-Year Price History(1) Medical Devices Orthopaedic, trauma, and neurological

products; general surgery, and biosurgical and energy products;
products to treat cardiovascular disease; infection prevention
products; diagnostics products; blood glucose monitoring and
insulin delivery products; and disposable contact lenses

Goldman Stanley (1) Financial data as of May 9, 2014. 33

Company Profile: Eli Lilly
($ USD in Billions) Business Description Management Team
Eli Lilly and Company discovers, develops, manufactures, and sells John Lechleiter Chairman & CEO
pharmaceutical products worldwide. It operates through two Derica Rice CFO
segments, Human Pharmaceutical Products and Animal Health Donald Zakrowski CAO
Products. Jan Lundberg EVP
Stephen Fry SVP
Within the Pharmaceutical segment, it provides products for Melissa Barnes SVP
Eli Lilly endocrinology, neuroscience, cancer, and other conditions. Within Darren Carroll SVP
Headquarters: Indiana the Animal Health segment, it provides protein supplements, feed
Employees: 39,135 additives, and antibiotics for the treatment of various animal
Founded: 1876 infections.

Financial Information(1) Business Segments and Product Lines Key Partners

Market Cap: $62.9 Pharmaceutical Endocrinology products to treat diabetes; Zymeworks Licensing and
Cash: $5.2 osteoporosis; human growth hormone deficiency and pediatric collaboration agreement for bi-
Debt, Preferred & NCI: $5.3 growth conditions; testosterone deficiency; neuroscience specific cancer immunotherapies
LTM Revenue: $22.2 products; and positron emission tomography imaging of beta-
LTM EBITDA: $6.4 amyloid neurotic plaques in adult brains; products for the AstraZeneca Co-development
CY 2014E Revenue: $19.4 treatment of non-small cell lung, colorectal, head and neck, and co-commercialization
CY 2014E EBITDA: $4.6 pancreatic, metastatic breast, ovarian, bladder, and metastatic agreement for Alzheimers disease
CY 2015E Revenue: $19.9 gastric cancers, as well as malignant pleural mesothelioma; and treatment
CY 2015E EBITDA: $5.3 cardiovascular products for the treatment of erectile dysfunction
and benign prostatic hyperplasia, thrombotic cardiovascular Hanmi Pharmaceutical
One-Year Price History(1) events, and cardiac ischemic complications Licensing and collaboration
agreement for autoimmune
Animal Health Cattle feed additives; protein supplements for diseases
cows; leanness and performance enhancers for swine, cattle,
and poultry; antibiotics to treat respiratory and other diseases in
cattle, swine, and poultry; anticoccidial agents for poultry; and
chewable tablets that kill fleas and prevent diseases; products to
treat chronic manifestations of atopic dermatitis and congestive
heart failure in dogs, and chronic allergic dermatitis and kidney
diseases in cats

Goldman Stanley (1) Financial data as of May 9, 2014. 34

Company Profile: Merck & Co.
($ USD in Billions) Business Description Management Team
Merck & Co., Inc. provides health care solutions worldwide. The Kenneth Frazier Chairman & CEO
company offer therapeutic and preventive agents, neuromuscular Robert Davis CFO
blocking agents for use in surgery, anti-bacterial products for skin Rita Karachun SVP
and skin structure infections, and a variety of cancer drugs and Clark Golestani EVP & CIO
vaccines. Michael Holston EVP
Willie Deese EVP
Merck & Co. It also offers animal health products and vaccines, antibiotics, Richard DeLucaEVP
Headquarters: New Jersey ointments, and other drugs to prevent disease. The company Roger Perlmutter EVP
Employees: 68,805 serves drug wholesalers and retailers, hospitals, government
Founded: 1891 entities and agencies, physicians, physician distributors,
veterinarians, distributors, and animal producers.
Financial Information(1) Business Segments and Product Lines Key Partners
Market Cap: $160.2 Pharmaceutical Therapeutic and preventive agents to treat AstraZeneca Partnership to
Cash: $20.5 cardiovascular, type 2 diabetes, asthma, nasal allergy conduct joint phase 1 clinical trials
Debt, Preferred & NCI: $30.8 symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 for treating solid cancer tumors
LTM Revenue: $43.6 infection, fungal infections, intra-abdominal infections,
LTM EBITDA: $15.8 hypertension, arthritis and pain, inflammatory, osteoporosis, Celera Co-development
CY 2014E Revenue: $41.8 male pattern hair loss, and fertility diseases; neuromuscular partnership for new osteoporosis
CY 2014E EBITDA: $14.7 blocking agents for use in surgery; anti-bacterial products for treatment
CY 2015E Revenue: $39.8 skin and skin structure infections; antidepressants; drugs for
CY 2015E EBITDA: $20.9 cancer patients and vaccines for various diseases Zymeworks Co-development
partnership for novel bi-specific
One-Year Price History(1) Animal Health Drugs for pneumonia in cattle, horses, and therapeutic antibodies
swine; vaccines for poultry; parasiticide for sea lice in salmon;
and antibiotics for, and vaccines against bacterial and viral
disease in fish; companion animal products, such as diabetes
mellitus treatment drugs and vaccines for dogs and cats;
ointments for acute and chronic otitis; anthelmintic products;
chewable tablets to kill fleas and ticks in dogs; and products for
protection against bites from fleas, ticks, mosquitoes, and
sandflies

Goldman Stanley (1) Financial data as of May 9, 2014. 35

Company Profile: Valeant
($ USD in Billions) Business Description Management Team
Valeant Pharmaceuticals International, Inc. develops, manufactures, Michael Pearson Chairman &
and markets pharmaceuticals, over-the-counter products, and CEO
medical devices worldwide. Robert Rosiello CFO
Robert Butz VP, Medical Affairs
The Company focuses on eye health, dermatology and neurology Robert Chai-Onn EVP
therapeutic classes, primarily on branded generics, OTC products Deborah Jorn EVP
Valeant and medical devices. The Company operates through two Ari Kellen EVP
Headquarters: Quebec segments: developed markets and emerging markets. Anne Whitaker EVP
Employees: 16,800 Pavel Mirovsky President (Europe)
Founded: 1983 It has a direct or indirect sales and marketing presence in over 100 Calvin Roberts CMO
countries.
Financial Information(1) Business Segments and Product Lines Key Partners
Market Cap: $44.0 Pharmaceuticals Solodyn (oral antibiotic), Wellbutrin XL, GlaxoSmithKline Worldwide
Cash: $0.6 Jublia, Xenazine (Huntingtons disease), Arestin, Zovirax, collaboration agreement for
Debt, Preferred & NCI: $17.5 Syprine, Elidel, Prolensa, and Duromine ezogabine / retigabine (epilepsy)
LTM Revenue: $6.6
LTM EBITDA: $3.2 Over the Counter PreserVision (supplement), CeraVe (skin Biovail Supplier for Xenazine
CY 2014E Revenue: $8.4 conditions), ReNu Multiplus (contact lenses), Biotrue, Ocuvite, tablets (Huntingtons disease)
CY 2014E EBITDA: $4.0 Boston solution, and Artelac (eye drops)
CY 2015E Revenue: $10.6 Kadmon Pharmaceuticals
CY 2015E EBITDA: $5.4 Medical Devices SofLens (disposable contact lenses), Development and
PureVision, Akreos and Crystalens, and surgical equipment commercialization agreement for
One-Year Price History(1) products, such as the VICTUS femtosecond laser and the taribavirin and ribavirin
Stellaris PC, a vitreoretinal and cataract surgery system

Generics Tobramycin, Cardizem CD (hypertension and

angina), Retin-A Micro (acne), and Latanoprost (glaucoma and
ocular hypertension)

Goldman Stanley (1) Financial data as of May 9, 2014. 36

Company Profile: Pfizer
($ USD in Billions) Business Description Management Team
Pfizer Inc. discovers, develops, manufactures, and sells healthcare Ian Read Chairman & CEO
products worldwide. The company operates through the Global Frank DAmelio CFO & EVP
Innovative Pharmaceutical (GIP); Global Vaccines, Oncology and Michael Ehlers CSO
Consumer Healthcare (VOC); and Global Established Rady Johnson EVP
Pharmaceutical (GEP) segments. Robert Abraham Group SVP
Morris Birnbaum CSO
Pfizer Its key biopharmaceuticals include Lyrica, Prevnar, Enbrel,
Headquarters: New York Celebrex, Lipitor, Viagra, Zyvox, Sutent, EpiPen, Toviaz, Tygacil,
Employees: 78,300 Rapamune, Xalkori, Inlyta, Norvasc, the Premarin family of
Founded: 1849 products, Eliquis, and Xeljanz. Its biotechnology products include
BeneFIX, Genotropin, ReFacto, Xyntha, and Enbrel.
Financial Information(1) Business Segments and Product Lines Key Partners
Market Cap: $186.1 Global Innovative Pharmaceutical Develops, registers, and Bristol-Myers Squibb
Cash: $33.9 commercializes medicines for therapeutic areas, including Development and
Debt, Preferred & NCI: $37.5 inflammation, cardiovascular/metabolic, neuroscience and pain, commercialization agreement for
LTM Revenue: $50.5 rare diseases, and womens/mens health Eliquis (thromboembolic events)
LTM EBITDA: $22.4
CY 2014E Revenue: $49.4 Global Vaccines, Oncology, and Consumer Healthcare Merck Collaboration agreement
CY 2014E EBITDA: $20.7 Develops and commercializes vaccines, oncology products, for novel anti-cancer combination
CY 2015E Revenue: $48.3 over-the-counter dietary supplements, pain management regimen
CY 2015E EBITDA: $20.4 products, gastrointestinal products, respiratory products, and
personal care products Saniona Drug discovery
One-Year Price History(1) development and collaboration
Global Established Pharmaceutical Offers patent-protected agreement for neurological
products that have lost marketing exclusivity in various markets, disorders
generic pharmaceuticals, and sterile injectable and biosimilar
development products Philogen Development and
commercialization agreement for
antibody and small molecule
targeted therapies

Goldman Stanley (1) Financial data as of May 9, 2014. 37

Process Recommendations

Goldman Stanley 38
Key Recommendations

We recommend engaging in targeted discussions with the Tier 1 candidates and assessing their receptiveness to M&A
discussions

At the same time, Goldman Stanley will reach out to Tier 2 candidates and introduce Jaguar as a potential partner
M&A process with Tier 1 candidates will take significantly longer due to the scale of the companies, so we recommend
conducting both processes simultaneously

Depending on responses from Tier 1 and Tier 2 candidates, Goldman Stanley and Jaguar may do additional research
to determine other potential partners and then approach them

Targeted Sell-Side M&A Broad Sell-Side M&A

< 5 potential partners 10 100 potential partners

6 12 months Time required is highly variable

Close-ended Iterative process

Higher success probability Lower success probability

Goldman Stanley 39
Process Recommendations

Specialized Targeted
Highly Targeted Broad M&A
Negotiations With Discussions +
Process Process Broad
One Party Broader Search
Marketing

RECOMMENDED

Combination of targeted discussions plus

broader search conducted in background
maximizes success probability and
minimizes disruption to Jaguar

Additional parties contacted depend on

responsiveness of Tier 1 and Tier 2
partners

Interested parties would sign NDAs and

then proceed into due diligence and
valuation discussions with Jaguar

Goldman Stanley 40
Targeted Discussions Roles and Responsibilities

Goldman Stanley Legal Management Board

Determine potential Review draft DA Determine potential Determine process and

partners partners objectives
Phase I: Identify legal
Organization Finalize projections, CIM, issues/concerns Finalize projections, CIM, Approve Tier 1 and Tier 2
and mgmt presentation and mgmt presentation partners to approach

Contact partners and Assist in NDA Prepare for management Receive process updates
negotiate NDAs negotiations meetings
Phase II: Provide input/direction if
Contact and Schedule management Assist in compiling legal Contact potential required
Marketing
meetings diligence items partners (if appropriate)

Conduct management Assist in reviewing initial Formulate synergies Receive process updates
Phase III:
meetings and solicit bids bids and follow-up
Business Due
diligence lists for legal Attend management Provide input/direction if
Diligence, Synergy Discuss synergies and items meetings required
Discussions, and
facilitate diligence
Initial Bids Answer diligence
requests
Review bids from Review bids, negotiate Review bids and assist Review bids and approve
Phase IV:
potential partners terms of DA, and assist with diligence agreement, if appropriate
Final Negotiations,
with confirmatory
Confirmatory Negotiate terms of DA diligence Discuss contracts
Diligence, and
with top partners
Signings

Goldman Stanley 41
Process Timeline
Depending on the responsiveness of Tier 1 and Tier 2 partners, the process may take between 6 and 9 months to
complete:

Six-Month Timeline: JUN JUL AUG SEP OCT NOV

Phase I:
Phase I
Organization

Phase II:
Phase II
Contact and Marketing

Phase III:
Business Due Diligence, Synergy Phase III
Discussions, and Initial Bids

Phase IV:
Final Negotiations, Confirmatory Phase IV
Diligence, and Signings

Goldman Stanley 42
Appendix

Goldman Stanley 43
Xyrem and Erwinaze Projections Management
($ USD in Millions except for $ per Patient Figures)

Goldman Stanley 44
Jaguar Income Statement Management Case
($ USD in Millions except for $ per Share Figures)

Goldman Stanley (1) Financial data as of May 9, 2014. 45

Jaguar Comparable Public Companies
Specialty Pharmaceutical Companies That Sell Primarily Branded Drugs, with LTM Revenue Between $500 Million and $2 Billion

($ USD in Millions)

Goldman Stanley (1) Financial data as of May 9, 2014. 46

Jaguar DCF Analysis WACC Calculation
($ USD in Millions)

Goldman Stanley (1) Financial data as of May 9, 2014. 47