EFTA01453443.pdf

SGMO US ;-.19.85 21.40 2>2 Pre,: 19.80 ',1.2)1 2,907,036 SG,IC US ui „ 99 Save As 99 Actions - 97) Edit - 9?) Table Line Chart 03/25/2014 Last Price Lira . '• • Vetore "On" 10 3D y'r) lY Sr Max Daily • e securiryisb:ty Event fit + Track e Annotate " News Zoom -24.00 • Last Price 19.80 ►22.00 i T High on 03/19/14.23.86 -0- Average / Low on 06/26/13 7.31 12.1209 N-18.00 A-16.00 0.12.00 .10.00 .8.00 TIM Volume 0.10M 1 2.9071I • SMAVG (15) 2.7 2.907N abernaphalkikriolat4 Wilialikr.44 ...441S4444.444Ararittni...wilelmallini• 4 404144444.4111 LI U Jun Sep Dec Mar 2013 2014 Healthcare sector has outperformed S&P500 last 4 years and has been the best-performing sector YTD Improving R&D returns Ongoing efficiency gains due to various 'self-help' measures More supportive regulatory and payor environment Increasing number of financings and IPOs in Q1 Frequent upward revisions lately to sales estimates at the largest biotechnology companies Nasdaq Biotech Index (NBI) dropped 4.4% Friday Sharpest decline since Oct-11 • Triggered by a letter from congressional representatives to a biotech company Gilead Sciences, questioning its plans to sell a hepatitis C drug (named Sovaldi) for $84,000 per dose Gilead required to give briefing by 03-Apr Sovaldi expected to generate >$4bn in sales this year The drug's expense might saddle state Medicaid programs with steep costs The whole sector is as risk US is the only major health-care market remaining without any meaningful drug price controls • Risk for the whole sector once the Congress gets involved, especially if focused primarily on pricing The biggest NBI firms sold-off significantly CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 111025 CONFIDENTIAL SDNY_GM_00257209 EFTA01453443