rhenman-healthcare-equity-ls-presentation-eng-20151110

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GLOBAL HEALTHCARE EQUITY LONG/SHORT.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

S U P E R V I S E D

B Y

T H E

S W E D I S H

F I N A N C I A L

S U P E R V I S O R Y

A U T H O R I T Y .

N O :

0 3 5 2 2 1

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ESSENTIAL INFORMATION

CONTENTS

Diversified long short in global healthcare AUM:

EUR491m, USD542m

Launch:

Jun 2009

Total Return:

+302%

Ann. Return:

+25% net since inception

Instruments:

Equity, equity derivatives and indices.

50-80 in a universe of 500 58 on average for Q3 2015

No of core positions: Historical

Av.

Min

Max

Gross

156%

52%

218%

Net

120%

37%

153%

Long

138%

44%

176%

Short

-18%

-5%

-43%

All information based on data from the Administrator, SEB as of end Oct 2015 unless otherwise stated

Scientific advisory ……………………………………………

4

Investment process ………………………………………….

5

Portfolio construction ………………………………………..

6

Risk management ……………………………………………

7

Performance ………………………………………………….

8

Fund facts …………………………………………………….

9

Appendices …………………………………………………...

10

Healthcare in context ………………………………………..

16

Data bank………………………………………………………

22

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SUMMARY • Over 20 years managing successful healthcare funds.

• World renowned industry professionals each with over 30 years experience, actively involved through the Scientific Advisory Board.

• Unquestionable alpha generation, outperforming all relevant indices and top quartile in all relevant rankings.

• Long term investment horizon: • Diversified across subsectors, company size and geographies to lower volatility.

• Active trading around holdings.

• Predominantly cash flow positive companies.

• Typically investing post approval, mitigating event risk.

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OUTSTANDING SPECIALIST KNOWLEDGE Both Scientific Advisory Board (SAB) and Rhenman & Partners Asset Management (RPAM) members meet quarterly to review products, projects and companies and provide valuable feedback

HENRIK RHENMAN • CIO • 20+ years in portfolio management investing in healthcare • Founded and acted as CIO at Carnegie Healthcare Funds

• Quarterly meetings and continuous dialogue • Enhanced knowledge of scientific rationale, clinical trials, clinical usage, products, companies and market trends

ELLINOR HULT

• Properly weighing the investments with informed feedback

FREDRIK SWAHN • 30+ years in healthcare • MD Karolinska Institutet • Expertise in surgery, clinical services, intervention and technology.

• Diverse expertise covering all subsectors of healthcare • Access to the latest academic and institutional research projects

Scientific Advisory board members

• Chairman • 30+ years in healthcare • Professor of Oncology – Pathology • Was MD of Radiumhemmet

PROF. BERTIL HÅLLSTEN • • • •

Honorary Chairman 40+ years in healthcare Royal College of Forestry Managed SEB Pharmaceutical Fund

4

Chairman 40+ years in healthcare Professor of Immunology Was Chairman of Nobel Committee for Medicine and Physiology • Expertise in infectious disease control

BIRGITTA STYMNE GÖRANSSON

PROF. TOMAS OLSSON

• 25+ years in healthcare • Expertise in Biotechnology and Chemical Engineering

• 30+ years in healthcare • Professor of Neurology • Expert in autoimmunity and diseases in the nervous system • Member of the Nobel Assembly

HÅKAN ÅSTRÖM

PROF. PETER ARNER • 30+ years in healthcare • Professor of Medicine • Expert in metabolism, endocrinology and internal medicine

Rhenman & Partners Asset Management external board members

PROF. HANS WIGZELL • • • •

• Assistant portfolio manager • Research analyst • 8+ years Equity experience

• Key to assessing research and developments in the healthcare sector

Rhenman & Partners Asset Management investment team

PROF. STEN NILSSON

• 30+ years in healthcare • Expertise in the pharmaceutical industry

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INVESTMENT PROCESS • Assessment by the Scientific Advisory Board (SAB) with diverse and established expertise in the sector • Clear understanding of the sub-sectors and their dynamics • Focus on innovative and fast growing companies

06

• Typically invest after approval or participate and sell before event

•

04

• •

02

• • •

Narrowed down to around 30 companies.

CIO review with an excellent understanding of the sector and its dynamics.

Select c.15 companies to present quarterly to SAB.

01

SCIENTIFIC ADVISORY BOARD MEETING

PACK FOR COMMITTEE

SCREENING

Key to assess and properly weight proposed investments.

Approx.80 companies/200 projects discussed a year.

04

03

02

03

•

05

• • •

•

01

• • • •

Detailed pack with c.20 companies sent to SAB two weeks in advance.

Both already invested and new companies.

Sourcing companies from research articles, SAB and investment banks.

Screening around 10% of the total market.

Most companies are followed and visited for more than 10 years.

400-500 meetings annually.

5

Current investment: increase/decrease/exit.

New investment: typically 0.4% of portfolio.

06 05

DECISION MAKING

INVESTMENT RECOMMENDATIONS

•

RESEARCH

•

Feedback from SAB on companies discussed, invested or new.

Yes/no/review at a later date.

1-3 companies with strong scientific conviction.

Final selection by CIO. • •

Incremental decisions based on risk management and position sizing.

Typically 12-36 month investment horizon.

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PORTFOLIO CONSTRUCTION

• The entire portfolio is made up of roughly 120-160 positions, however the majority of positions are under 1% of NAV • October 2015:

Size

No of positions

% of Fund

High conviction

3.0% - 10.0%

4

15%

Core holdings Fractional positions

1.0% - 3.0% 0.5% - 1.0%

52 42

93% 31%

Candidate holdings

0.0% - 0.5%

37

12%

Between 3% - 10% of NAV per position Typically 5% - 25% of the fund Roughly 2-10 positions

HIGH CONVICTION

Between 1% - 3% of NAV per position Typically 30% - 60% of the fund Roughly 40-60 positions

CORE HOLDINGS

There were a total of 135 equity positions with 79 positions under 1% of NAV (2 ETFs not included) • Companies can move up and down the pyramid and may never reach the summit

FRACTIONAL POSITIONS Core and high conviction positions on their way in and out of the portfolio

High risk/high reward positions, often with binary outcomes

To become a fractional, core or high conviction position the company is typically reviewed by the Scientific Advisory Board

CANDIDATE HOLDINGS

Between 0.5% - 1% of NAV per position Typically 20% - 40% of the fund Roughly 50-70 positions

Safe harbour during times of volatility and unsure outcomes

Less than 0.5% of NAV per position Typically no more than 15% of the fund Roughly 50 positions

Small positions that help the PM focus on the stocks’ developments

All information based on data from the Administrator, SEB as of end October 2015 unless otherwise stated

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RISK MANAGEMENT • Portfolio reviewed daily by three parties: The Portfolio Management Team looking at total exposure and at company specific news, and by SEB Fund Services S.A as AIFM and Skandinaviska Enskilda Banken AB (publ) as creditor.

• Diversified portfolio (c.150 holdings).

• Invests to be equally invested over time across the four subsectors (Pharma, Biotech, Medtech and Services) as well as in small, medium and large market cap.

• Position size will rarely exceed 10% of portfolio and is often 2-5% for large cap and 1-3% for small to medium cap.

• Sizing of individual positions is designed to protect the downside and not affect the total NAV (on fund level) more than -1% due to company specific events.

• VaR target max 3% per day (95% confidence level).

• Formal risk review triggered after -6% NAV in a single month.

• 95% of positions can be liquidated within 7 days assuming a maximum 20-25% participation in average daily trading volumes.

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PERFORMANCE

Since inception 2015 YTD 2014 2013 2012 2011 2010 2009

450

400

Oct-15

Aug-15

Apr-15

Jun-15

Feb-15

Oct-14

Dec-14

Aug-14

Apr-14

Jun-14

Feb-14

Oct-13

Dec-13

Aug-13

Apr-13

Jun-13

Feb-13

Oct-12

Dec-12

Aug-12

Apr-12

Jun-12

Feb-12

Oct-11

Dec-11

Aug-11

Apr-11

Jun-11

Feb-11

Oct-10

+88% 150

Performance is for the 1CI (EUR) share class – an institutional class with 1.5% management fee and 20% management fee.

All data from the Administrator, SEB as of end October 2015 Indices correct as of November 09, 2015.

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Aug-15

Jun-15

Apr-15

Feb-15

Dec-14

Oct-14

Aug-14

Jun-14

Apr-14

Feb-14

Dec-13

Oct-13

Aug-13

Jun-13

Apr-13

Feb-13

Dec-12

Oct-12

Aug-12

Jun-12

Apr-12

Feb-12

Dec-11

Oct-11

Aug-11

Jun-11

100

Oct-15

+28% +4%

Apr-11

1st out of 165 for 1 year

200

Feb-11

•

Net Asset Value

250

Oct-09

1st out of 121 for 3 years

300

Dec-09

•

Euribor 3 month

350

Jun-09

1st out of 75 for 5 years

+302%

EUROHEDGE: Global Equity Hedge EUR

Aug-09

•

HFRX EH: Technology/Healthcare Index 400

According to Citywire Global, the Fund’s ranking Globally among Alternative UCITS - L/S Equity Funds:

Dec-10

0.21

Rhenman Healthcare L/S IC1 EUR

450

Dec-10

Treynor ratio (annualised)

Aug-10

1.08

Oct-10

Sortino ratio (annualised)

Aug-10

1.18

-15

Apr-10

Sharpe ratio (1 Year)

100

Jun-10

1.27

-10

150

Jun-10

Sharpe ratio (since inception)

200

Feb-10

20.67%

5

-5

Apr-10

Standard deviation 36m (% annualised)

10

250

Feb-10

27.18%

15

0

Oct-09

Standard deviation 12m (% annualised)

Rhenman Healthcare L/S IC1 EUR

300

Dec-09

18.91%

Jun-09

Standard deviation (% annualised)

Aug-09

32.13% Net Asset Value

350

Total return 12m (%)

IC1

+302% +14% +43% +55% +18% +10% +8% +13%

Monthly performance

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FUND FACTS Vehicle / Domicile

Open-ended FCP (Fonds Commun de Placement) / AIF Luxembourg

Management Company & Alternative Investment Fund Manager

SEB Fund Services S.A. Luxembourg

Subscription/ redemption

Monthly

Portfolio Manager

Rhenman & Partners Asset Management AB Sweden

Notice period

3 business days

Placement and Distribution Agent

SEB Fund Services S.A. Luxembourg

Minimum investment

EUR 2,500 – EUR 5,000,000 SEK 500 – SEK 50,000,000 USD 300,000 – USD 6,000,000

Depositary & Paying Agent

Skandinaviska Enskilda Banken S.A. Luxembourg

Management fee

1.00% - 2.00% (dependant on share class)

Prime Broker

Skandinaviska Enskilda Banken AB (publ) Sweden

Performance fee

10% - 20% (dependant on share class)

Auditors of the Fund & Independent Authorised Auditor of SEB Fund Services S.A.

PricewaterhouseCoopers (PwC) Luxembourg

Hurdle rate

Euribor 90D

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R APPENDICES.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

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R Subsector: Biotech Country: Norway Ave. Position size: c.3% of NAV Return: c.3% of NAV Holding period: c.3 years

DISCOVERED THROUGH SCIENTIFIC ADVISORY BOARD, CAUTIOUS BUT EARLY INVOLVEMENT • • • •

Reducing risk prior to minor events to protect against negative outcomes Trading around the position to maximise returns Using unsubstantiated rumours reflected in the price to add and reduce position size Early understanding of relationship with Bayer to hold the position to buyout Shares (000) 350

NOK

Product: Alpharadin (Xofigo™) – for treatment of metastatic cancers in bone. A palliative treatment to prolong life and improve quality.

No of Shares 350

Share Price

300

250

200

150

Nov 13 Bayer offers NOK 362 per share (in cash)

Jun 11 Positive Outcome of Interim Analysis of pivotal Alpharadin study: Primary endpoint met in Phase III ALSYMPCA study

300

Nov 13 Bayer offers NOK 336 per share (in cash)

250

Feb 10 First patient treated in Phase II trail of Alpharadin to treat bone metastases in breast cancer patients

200

150

May 13 Xofigo approved by FDA Sep 11 FDA grants Fast Track Designation to Alphadrin.

Phase III ‘significantly improves survival by 44%’

100

100

50

0 Sep-09

50

0 Dec-09

Dec 08 Algeta presented to the SAB committee

Mar-10

Jun-10

Sep-10

Dec-10

Feb 10 First investment of 10,000 shares, as a Candidate Holding.

Waited for results of Phase II before acting Dec 10 – Jun 11 Reducing position to crystallise returns and reduce event risk

Mar-11

Jun-11

Sep-11

Sep 11 SAB continues to be supportive

11

Mar-12

Jun-12

Feb 12 SAB continues to be supportive

Jun 11 Increase position threefold after Phase III announcement. A High Conviction position at c5.8%

Company milestones

Dec-11

Sep-12

Dec-12

Jun-13

Sep-13

Dec-13

Sep 12 – Sep 13 Increasing position size as Fund increases in size

Sep 11 – Sep 12 Monitoring and adding/reducing to maximise returns. From a high of 6.8%, position decreases in importance as fund grows reducing to 3.44% by the end of Sep 12

Scientific milestones

Mar-13

Dec 12 sold the entire position in Algeta at 358.5 NOK/share

Rhenman actions

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TEAM

ELLINOR HULT. Assistant Portfolio Manager Over 8 years of equity experience

HENRIK RHENMAN. Chief Investment Officer / Founding Partner

2011 – 2012

Over 20 years of Healthcare portfolio management experience 1999 – 2008 1997 – 1999 1991 – 1997 1988 – 1991 1978 – 1988

2006 – 2011

Founder and Chief Investment Officer, Carnegie Healthcare Funds, Carnegie Investment Bank Managing Director, Portfolio Manager, SG Cowen, Boston Portfolio Manager, SEB Pharmaceutical Fund Head of Research, Head of Asset Management, Hagströmer & Qviberg Pharmacia, Alfa-Laval

2001 – 2006

STAFFAN KNAFVE. Investment & Derivatives Strategy Analyst Over 25 years of equity markets experience 2008 – 2015

CARL GREVELIUS. Head of Sales & Marketing / Founding Partner

2007 2005 1998 1991 1987

Over 18 years of international fund/equity experience 2006 – 2008 2003 – 2006 2000 – 2003 1997 – 2000

Vice President, Non-Japan Asian Equity Sales, Samsung Securities, London Vice President, Non-Japan Asian Equity Sales, Credit Suisse, London Masters in Finance, Stockholm School of Economics

Portfolio Manager, Carnegie Investment Bank, Stockholm Founding Partner and Portfolio Manager, Absolute Plus / Vision Microfinance Fund, Zurich Equity Analyst / Sales, ABG Sundal Collier, London / Zurich Portfolio Strategist, Fidelity Investments, Luxembourg / London

– 2008 – 2007 – 2005 – 1998 – 1991

Private investor and various capital market assignments, including several Investment Committees and Chairman of Tethys Oil AB Head of Equities, Swedbank Robur Head of Swedish and Nordic Equities, Nordea Investment Mgmt Head of Strategy, Portfolio Manager, Carnegie Asset Management Equity Research, Carnegie Securities Trust Department, Equity Research, Nordbanken

ANDERS GRELSSON. Institutional Sales, Sweden Over 20 years of equity experience 2006 1999 1993 1988

GÖRAN NORDSTRÖM. CEO / Founding Partner Over 25 years of senior management experience 2004 1993 1994 1987 1984 1981 1978

– 2008 – 2004 – 1995 – 1993 – 1987 – 1984 – 1981

Head of Private Banking, Kaupthing Bank, Sweden Managing Director, Carnegie Asset Management AB Managing Director, Carnegie Pension Consulting Deputy Managing Director, Midland Montague Bank/HSBC Portfolio Manager, Handelsbanken Asset Management Tax Specialist, Stockholm County Administrative Board General banking duties, Handelsbanken

– 2011 – 2006 – 1999 – 1993

Institutional Equity Sales, Kaupthing/Ålandsbanken Institutional Equity Sales, Handelsbanken Markets Institutional Equity Sales, Myrberg & Wiklund Institutional Equity Sales, Midland Montague Bank/HSBC/James Capel

CAMILLA HERMANSSON. Assistant Over 8 years of experience 2008 – 2012

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Assistant, Contender Kapital AB

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SCIENTIFIC ADVISORY An established portfolio management tool used over 15 years to highlight potentials and risks in clinical development. Quarterly official meetings.

Frequent informal contacts.

STEN NILSSON Chairman of the Scientific Advisory Board

HANS WIGZELL Chairman of Rhenman & Partners Asset Management Board

Professor of Oncology - Pathology, Radiumhemmet, Karolinska Institutet.

• Previously Managing Director of Radiumhemmet

M D. Professor of Immunology, Karolinska Institutet. Member of the Royal Swedish Academy of Sciences and the Royal Swedish Academy of Engineering Sciences. Member of editorial committees of numerous international magazines. Published over 700 scientific articles in international magazines • Director General of the National Bacteriological Laboratory, Stockholm (since 1988) • Chairman of the EU Concerted Research Programme into AIDS vaccination (since 1990) • Chairman of the Nobel committee for Medicine and Physiology (1990-1992) • Secretary General of Swedish Institute for Infectious Disease Control (since 1993) • President of Karolinska Institutet (1995-2003) • Chairman of the Nobel Assembly at Karolinska Intitutet (2000) • Chief Scientific Advisor to the Swedish Government (1999-2007)

BERTIL HÅLLSTEN Honorary Chairman of the Scientific Advisory Board Professor of Business Economics at the University College of Forestry. Ph.D. in Economics from Stockholm School of Economics. Former Chairman of Sweden's Financial Analysts' Association • Founder and Portfolio Manager of SEB Pharmaceutical Fund (1988-1992) • Various positions at SEB in portfolio management • Previous board member of Meda, Conpharm, Skandigen, and KaroBio

PETER ARNER Member of the Scientific Advisory Board Professor of Medicine, Karolinska Institutet.

• Expertise in metabolism • Endocrinology and internal medicine

TOMAS OLSSON Member of the Scientific Advisory Board 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

FREDRIK SWAHN Member of the Scientific Advisory Board MD, PhD, Senior Consultant Surgeon at Gastrocentrum, Division of Upper Abdominal Surgery at Karolinska University Hospital.

• Member of the scientific board of the Scandinavian Association for Digestive Endoscopy and the ANDRE-group.

• Since 2006 an active teacher and researcher at Karolinska Institutet regarding advanced endoluminal surgery and tele-medicine.

• Published 16 scientific articles in international journals concerning endoscopy.

BIRGITTA STYMNE GÖRANSSON Member of Rhenman & Partners Asset Management Board Senior management consultant with McKinsey & Co and with Swedish Technical Attaches in Washington D.C. Board member of Elekta AB and Medivir AB. • M.Sc. Chemical Engineering and Biotechnology from Royal Institute of Technology, Stockholm • MBA Harvard Business School, MA, USA. CEO of Memira Holding AB • Several senior management positions in Swedish industry including: Semantix, Telefos, Åhléns, Gambro and Excorim

HÅKAN ÅSTRÖM Member of Rhenman & Partners Asset Management Board Med.Dr. (h.c.), M.Sc.(Econ), Chairman of the Board for Affibody Holding AB, PledPharma AB and Tubulus AB, and 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 Scientific Advisory Board members

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Rhenman & Partners Asset Management external board members

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INVESTMENT MANAGER’S SERVICE PROVIDERS Local expertise and resources

Investment and Derivative Strategy

Staffan Knafve Rådgivning AB Sweden

Organisation number: 556765-8215 sk@staffanknafve.se

Compliance

Kjellander & Ramel AB Sweden

Organisation number: 556711-9978 anna@kjellanderramel.se

IT

LC24 Sweden AB Sweden

Organisation number: 556598-2559 lw@lc24.net

Accounting

Viveka Luiga Ekonomibyrå AB Sweden

Organisation number: 556828-4656 luiga@swipnet.se

Legal

Hoflund Juridik AB Sweden

Organisation number: 556741-8388 dan@hoflundlaw.se

Auditor

BDO Sverige AB Sweden

Organisation number: 556585-8007 johan.pharmanson@bdo.se

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R OFFICE Phone Fax E-mail Website Address

FOUNDING PARTNERS +46 8 459 88 80 +46 8 528 008 80 info@rhepa.com www.rhepa.com Strandvägen 5A 114 51 Stockholm Sweden

Chief Investment Officer Managing Director Head of Sales & Marketing Phone Mobile E-mail

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Henrik Rhenman Göran Nordström Carl Grevelius +46 8 459 88 83 +46 768 438 803 carl@rhepa.com

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HEALTHCARE IN CONTEXT.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

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HEALTHCARE IN CONTEXT – OVERVIEW • Global spending on medicines was expected to exceed USD1,000bn in 2014 and almost reach USD1,200bn in 2017 • Developed countries are expected to spend an average of USD609 per capita in 2016 (2012 estimate) • Emerging markets continue to spend at an average of 12-17% CAGR (2013 est) • China’s spend on healthcare is expected to reach 45% of that spent in the US by 2017 (up from 9% in 2006) making it the second largest spender in the world (outranking Japan) • Biotech firms are expected to be undervalued v S&P500 on 2016 and 2017 P/E projections • The growth in Biologics and their complex manufacturing processes are increasing the lifespan of a therapy before a biosimilar can be produced

• There is an expectation of major growth in speciality medicines, often with novel mechanisms and small patient populations

• The patent cliff is largely over having a marked peak in 2012 and a significant drop off since

Source:

Credit Suisse, Sep 014; IMS Institute, The Trillion Dollar Market for Medicines: Characteristics, Dynamics and Outlook, Feb 14; The World bank, 2013; IMS Market Prognosis, May 2012; Economist Intelligence Unit, Jan 2012; WHO, IMF, US Census Bureau, Bureau of Labor Statistics, US Patent and Trademark Office, UBS estimates

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HEALTHCARE IN CONTEXT – SPENDING OUTSTRIPPING GDP IN DEVELOPED COUNTRIES

• • •

Global spending on medicines is expected to be USD1,000bn in 2014 and USD1,200bn in 2017 The base case forecast for the US is 1-4% CAGR - having bottomed out in 2013 Developed countries are expected to spend an average of USD609 per capita in 2016

Annual average growth in real per capita expenditure on health and GDP, 2000-09

Health expenditure as a share of GDP in OECD, 1960-2012

Annual Average growth rate in real health expenditure per capita (%)

12

20 % Canada Japan United Kingdom United States average OECD AVERAGE

Slovakia

10 15 %

South Korea

8 Poland

Estonia

Greece Turkey

Ireland

6

10 %

Czech Republic Chile

United Kingdom New Zealand Belgium

4

Spain

Finland

Netherlands OECD

Slovenia

Canada

Denmark

Sweden

5%

United States Mexico

Norway

Japan

France

2

Germany Italy

Portugal

Austria

Hungary

Australia Switzerland Israel

Iceland Luxembourg

0% 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

0 -1

0

1 2 3 Annual Average growth rate in real GDP per capita (%) Graph source: OECD Health Data 2011

4

5

Graph source: OECD Health Statistics 2013, WHO Global Health Expenditure Database.

Source: OECD Health Data 2011, IMS Institute, The Trillion Dollar Market for Medicines: Characteristics, Dynamics and Outlook, Feb 14; OECD Health Statistics 2013, WHO Global Health Expenditure Database.

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HEALTHCARE IN CONTEXT – EMERGING MARKETS ARE INCREASINGLY IMPORTANT

• • • •

India and China’s per capita spends are far from the OECD average, a small increase would result in a huge increase in global sales Healthcare sales in the E7 countries has increased year on year from 2003 (E7= China, India, Brazil, Mexico, Russia, Indonesia and Turkey) IMS expects emerging markets share of global spending to increase to 30% by 2016/17 China’s spend on healthcare is expected to reach 45% of that spent in the US by 2017 (up from 9% in 2006) and will outstrip Japan (traditionally ranked no.2 by spending) Health expenditure as a percentage of GDP

2016 Pharmaceutical Spend per Capita

Annual Per Capita Drug Spend USD

20 %

15 %

10 %

5%

Source:

Indonesia

India

China

Mexico

Turkey

Russian Federation

Graph source: The World Bank, 2013

Korea, Rep.

Brazil

Japan

United Kingdom

France

Germany

OECD members

United States

0%

Population

Graph source: IMS Market Prognosis, May 2012; Economist Intelligence Unit, Jan 2012

IMS Institute, The Trillion Dollar Market for Medicines: Characteristics, Dynamics and Outlook, Feb 14; The World bank, 2013; IMS Market Prognosis, May 2012; Economist Intelligence Unit, Jan 2012; WHO, IMF, US Census Bureau, Bureau of Labor Statistics, US Patent and Trademark Office, UBS estimates

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HEALTHCARE IN CONTEXT – SPECIALITY MEDICINE AND BIOLOGICS WILL CONTINUE TO DOMINATE

• Biologics look to take a 19-20% share of the total pharmaceutical market by 2017 • Seven of the top 20 highest spending classes are specialty medicines, often with novel mechanisms, improved efficacy, and relatively large patient populations leading to increased uptake Source: Credit Suisse, Sep 14 No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Company name

Price (USD)

Johnson & Johnson Novartis Roche Pfizer Merck Gilead Sanofi Glaxo-smithkline Bayer Amgen Novo Nordisk Astrazeneca Abbvie Bristol-Mayer Sqib Biogen Idec Celgene Eli Lily Abbott Actavis Teva Allergan Shire Merck Kgaa Valeant Takeda Biotech Average Pharma Average S&P 500

104 93 293 29 60 108 110 24 135 139 46 76 55 51 343 95 64 42 227 53 164 81 87 117 46

2,003

Market Cap (USDbn) 293 253 249 186 173 163 145 117 111 106 97 96 88 84 81 76 71 65 60 50 49 48 44 39 36

2014 PE 18x 18x 19x 13x 17x 14x 16x 19x 17x 17x 26x 18x 18x 28x 26x 26x 23x 19x 17x 11x 28x 25x 14x 15x 35x 21x 20x 17x

2015 PE 17x 15x 18x 13x 17x 14x 14x 16x 15x 16x 23x 21x 13x 31x 22x 19x 21x 17x 14x 11x 20x 23x 14x 12x 43x 18x 18x 16x

2016 PE 16x 14x 16x 12x 15x 13x 13x 14x 13x 15x 20x 20x 1x 25x 19x 15x 17x 15x 12x 11x 17x 20x 13x 10x 40x 15x 16x 15x

2017 PE 15x 12x 15x 12x 15x 12x 13x 13x 11x 14x 20x 24x 11x 19x 17x 12x 15x 18x 11x 11x 15x 18x 13x 10x 37x 14x 16x 15x

14-17 14-17 Sales EPS CAGR CAGR 2% 5% 2% 15% 5% 9% 1% 3% 0% 6% 4% 4% 4% 8% 5% 13% 7% 14% 1% 7% 9% 9% -3% 9% 8% 18% 4% 13% 9% 16% 20% 30% 5% 17% 4% 1% 11% 15% -1% 1% 10% 24% 8% 11% 2% 4% 7% 15% 3% -1% 9% 14% 5% 9% 5% 6%

14 PE/ (14-17 Growth) 3.7 1.3 2.1 3.8 3 3.8 2.1 1.5 1.2 2.4 2.8 na 1 2.1 1.7 0.9 1.4 13.5 1.1 na 1.2 2.3 3.9 1 na 2.2 2.7 3.1

17 PE/ (14-17 Growth) 3.2 0.8 1.6 3.4 2.5 3.4 1.7 1 0.8 2 2.2 na 0.6 1.5 1.1 0.4 0.9 13 0.7 na 0.6 1.7 3.5 0.6 na 1.7 2.2 2.6

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Spending and growth in leading therapy areas 20%

Global market CAGR 2007-2011

• Biotech stocks continue to outperform the S&P500 but have P/E valuations well below for 2017 while EPS growth is nearly three times (2.33x)

15%

10%

5% Global market CAGR 2007-2011: 6% 0%

-5% -10%

Global market CAGR 2012-2016: 3-6% -5%

0% 5% Global market CAGR 2012-2016

10%

Top 20 global therapy areas, spending 2016 Oncologics Antidiabetics Ashma/COPD Autoimmune Lipid Regulators Angiotensin II HIV Antivirals Antipsychotics Vaccines Immunostimulants Anti-Ulcerants Anti-Epileptics Multiple Sclerosis Platelet Aggregation Inhibitors Narcotic Analgesics Immunosuppressants Contraceptives Cephalosporins Antivirals (excl HIV) ADHD

83-88bn 48-53bn 44-48bn 33-36bn 31-34bn 22-25bn 22-25bn 22-25bn 19-22bn 16-18bn 15-17bn 14-16bn 14-16bn 14-16bn 14-16bn 13-15bn 13-15bn 13-15bn 12-14bn 12-14bn USD

Top 20 classes, 42% Others, 58%

Source: IMS Institute for Healthcare Informatics, May 2012

20

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HEALTHCARE IN CONTEXT – PATENT CLIFF LARGELY OVER • The expiry of patents peaked in 2012 • There are approximately 640 products in the late stage pipeline, a third of which are biologics and more than half are specialty drugs – which are hard to replicate and in the case of biologics may need independent approval • Among the medicines expected to launch by 2017 are several for the treatment of hepatitis C, multiple sclerosis and breast cancer all of which have large patient populations

Global annual brand sales value for products losing exclusivity (USDbn)

44

19 16

14

19 16

22

20

19 15

17

11 8

7

5

6

4

2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E

21

R DATA BANK.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

22

450

100 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15

Net Asset Value

R

PERFORMANCE FOR RHENMAN HEALTHCARE EQUITY L/S SINCE INCEPTION (JUNE 22, 2009) Annualised compound return: +25%

400

350

+302%

300

250

200 Rhenman Healthcare L/S IC1 EUR

150 Linear (Rhenman Healthcare L/S IC1 EUR)

Performance is for the 1CI (EUR) share class – an institutional class with 1.5% management fee and 20% management fee.

All data from the Administrator, SEB as of end October 2015

23

R

Three years trading Soft close: EUR 500m 500m

Soft close is planned for December 2015, given AUM >EUR 500m

400m

The fund’s AUM has increased significantly since it hit its three year track record

300m

In October 2014 the fund’s AUM topped EUR 300m, the final hurdle to institutional investment

200m

EUR 300m

100m

Trendline, post three years Trendline, whole period Trendline, first three years

All data from the Administrator, SEB as of end October 2015 AUM data includes inflows on the first of the next month from Jan 31st 2015.

24

Oct-15

Aug-15

Apr-15

Jun-15

Feb-15

Oct-14

Dec-14

Aug-14

Apr-14

Jun-14

Feb-14

Oct-13

Dec-13

Aug-13

Apr-13

Jun-13

Feb-13

Oct-12

Dec-12

Aug-12

Apr-12

Jun-12

Feb-12

Oct-11

Dec-11

Aug-11

Apr-11

Jun-11

Feb-11

Dec-10

Oct-10

Jun-10

Aug-10

Apr-10

Feb-10

Dec-09

Jun-09

0m

Oct-09

Current AUM: EUR 491m Hard Close AUM: EUR 1bn

600m

Aug-09

ASSETS UNDER MANAGEMENT

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AUM, NAV AND MONTHLY PERFORMANCE Fund AUM Month end Oct-15 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 Feb-15 Jan-15 Dec-14 Nov-14 Oct-14 Sep-14 Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13 Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 Mar-11 Feb-11 Jan-11 Dec-10 Nov-10 Oct-10 Sep-10 Aug-10 Jul-10 Jun-10 May-10 Apr-10 Mar-10 Feb-10 Jan-10 Dec-09 Nov-09 Oct-09 Sep-09 Aug-09 Jul-09 Jun-09 Inception

IC1 (EUR) - ISIN LU0417598108

AUM (MEUR)

AUM (MUSD)

491 473 539 588 555 549 500 530 475 427 342 321 300 274 269 245 242 230 214 216 218 204 186 182 167 163 154 155 133 130 121 109 98 91 75 74 70 73 51 50 42 42 40 38 35 35 32 31 30 29 29 31 26 27 25 25 25 25 28 27 26 27 25 25 26 26 27 25 21 21 19 17 14 14 10 8 5

542 528 604 646 633 602 530 563 541 488 416 399 376 346 354 328 331 313 296 298 302 276 256 248 226 221 204 205 173 169 159 140 128 123 99 97 91 94 64 61 52 52 53 51 47 45 42 41 42 39 42 45 38 39 38 36 34 34 37 35 36 37 32 33 32 32 36 34 29 29 27 25 20 20 15 12 7

NAV 401.72 370.76 424.39 476.60 456.29 463.44 421.01 448.65 419.34 391.34 352.48 338.66 326.16 304.03 296.82 276.25 274.87 260.99 247.8 262.34 277.13 263.91 246.79 246.67 225.66 233.45 223.66 225.87 202.53 209.1 198.41 191.91 178.11 168.92 158.92 161.34 156.93 165.47 160.74 160.74 159.07 150.07 150.29 149.51 143.99 142.42 134.59 127.48 125.67 118.28 119.36 128.19 129.26 134.24 127.79 123.35 124.28 121.53 122.73 116.17 112.16 109.95 102.63 102.84 106.4 108.73 122.31 127.53 119.94 117.91 113.28 105.7 100.99 107.83 107.47 105.19 100.75 100.00

Monthly Perf 8.35% -12.64% -10.95% 4.45% -1.54% 10.08% -6.16% 6.99% 7.15% 11.02% 4.08% 3.83% 7.28% 2.43% 7.45% 0.50% 5.32% 5.32% -5.54% -5.34% 5.01% 6.94% 0.05% 9.31% -3.34% 4.38% -0.98% 11.52% -3.14% 5.39% 3.39% 7.75% 5.44% 6.29% -1.50% 2.81% -5.16% 2.94% 0.00% 1.05% 6.00% -0.15% 0.52% 3.83% 1.10% 5.82% 5.58% 1.44% 6.25% -0.90% -6.89% -0.83% -3.71% 5.05% 3.60% -0.75% 2.26% -0.98% 5.65% 3.58% 2.01% 7.13% -0.20% -3.35% -2.14% -11.10% -4.09% 6.33% 1.72% 4.09% 7.17% 4.66% -6.34% 0.33% 2.17% 4.41% 0.75%

RC1 (EUR) - ISIN LU0417597555

Acc. perf 301.72 270.76 324.39 376.60 356.29 363.44 321.01 348.65 319.34 291.34 252.48 238.66 226.16 204.03 196.82 176.25 174.87 160.99 147.8 162.34 177.13 163.91 146.79 146.67 125.66 133.45 123.66 125.87 102.53 109.1 98.41 91.91 78.11 68.92 58.92 61.34 56.93 65.47 60.74 60.74 59.07 50.07 50.29 49.51 43.99 42.42 34.59 27.48 25.67 18.28 19.36 28.19 29.26 34.24 27.79 23.35 24.28 21.53 22.73 16.17 12.16 9.95 2.63 2.84 6.4 8.73 22.31 27.53 19.94 17.91 13.28 5.7 0.99 7.83 7.47 5.19 0.75

NAV 355.37 328.76 375.75 422.31 404.45 411.03 373.48 398.19 373.47 349.47 315.14 304.24 293.13 273.34 266.95 248.60 247.45 235.00 223.21 236.42 251.66 240.30 224.79 224.58 205.49 212.69 204.86 206.96 185.65 192.89 183.22 177.28 164.59 156.14 146.92 149.21 145.20 153.16 148.83 148.89 147.39 139.09 139.34 138.66 133.59 132.14 124.92 118.31 116.68 109.86 110.91 119.15 120.47 125.10 119.40 115.79 116.50 114.18 115.32 110.36 104.75 104.35 100.00

Monthly Perf

RC1 (SEK) - ISIN LU0417597712

Acc. perf

8.30% -12.67% -11.03% 4.42% -1.60% 10.05% -6.21% 6.62% 6.87% 10.89% 3.58% 3.80% 7.24% 2.39% 7.38% 0.46% 5.30% 5.28% -5.59% -6.06% 4.73% 6.90% 0.09% 9.29% -3.39% 3.82% -1.01% 11.48% -3.75% 5.28% 3.35% 7.71% 5.41% 6.28% -1.53% 2.76% -5.20% 2.91% -0.04% 1.02% 5.97% -0.18% 0.49% 3.80% 1.10% 5.78% 5.59% 1.40% 6.21% -0.95% -6.92% -1.10% -3.70% 4.77% 3.12% -0.61% 2.03% -0.99% 4.49% 5.36% 0.38% 4.35%

255.37 228.76 275.75 322.31 304.45 311.03 273.48 298.19 273.47 249.47 215.14 204.24 193.13 173.34 166.95 148.60 147.45 135.00 123.21 136.42 151.66 140.30 124.79 124.58 105.49 112.69 104.86 106.96 85.65 92.89 83.22 77.28 64.59 56.14 46.92 49.21 45.20 53.16 48.83 48.89 47.39 39.09 39.34 38.66 33.59 32.14 24.92 18.31 16.68 9.86 10.91 19.15 20.47 25.10 19.40 15.79 16.50 14.18 15.32 10.36 4.75 4.35

All data from the Administrator, SEB as of end October 2015. AUM data includes inflows on the first of the next month from Jan 31st 2015.

25

NAV 340.74 313.86 365.09 406.89 381.98 392.32 357.02 376.45 356.11 332.20 302.97 286.74 276.09 253.98 249.55 233.43 230.73 218.55 206.33 216.26 226.61 215.63 202.38 203.02 184.41 188.61 181.89 182.72 165.25 168.47 158.78 150.89 141.24 136.76 128.55 131.60 127.25 131.65 125.85 126.17 130.61 125.79 125.05 123.79 118.87 118.78 111.05 106.42 104.24 100.29 100.09 107.03 109.04 111.04 105.28 101.80 100.22 98.91 102.16 98.29 96.59 93.37 88.93 89.69 93.87 96.69 109.18 115.09 108.05 110.70 106.75 101.85 96.72 101.51 101.00 99.92 99.74 100.00

Monthly Perf 8.56% -14.03% -10.27% 6.52% -2.64% 9.89% -5.16% 5.71% 7.20% 9.65% 5.66% 3.86% 8.71% 1.78% 6.91% 1.17% 5.57% 5.92% -4.59% -4.57% 5.09% 6.55% -0.32% 10.09% -2.23% 3.69% -0.45% 10.57% -1.91% 6.10% 5.23% 6.83% 3.28% 6.39% -2.32% 3.42% -3.34% 4.61% -0.25% -3.40% 3.83% 0.59% 1.02% 4.14% 0.08% 6.96% 4.35% 2.09% 3.94% 0.20% -6.48% -1.84% -1.80% 5.47% 3.42% 1.58% 1.32% -3.18% 3.94% 1.76% 3.45% 4.99% -0.85% -4.45% -2.92% -11.44% -5.14% 6.52% -2.39% 3.70% 4.81% 5.30% -4.72% 0.50% 1.08% 0.18% -0.26%

RC2 (SEK) - ISIN LU0417598017

Acc. perf 240.74 213.86 265.09 306.89 281.98 292.32 257.02 276.45 256.11 232.20 202.97 186.74 176.09 153.98 149.55 133.43 130.73 118.55 106.33 116.26 126.61 115.63 102.38 103.02 84.41 88.61 81.89 82.72 65.25 68.47 58.78 50.89 41.24 36.76 28.55 31.60 27.25 31.65 25.85 26.17 30.61 25.79 25.05 23.79 18.87 18.78 11.05 6.42 4.24 0.29 0.09 7.03 9.04 11.04 5.28 1.80 0.22 -1.09 2.16 -1.71 -3.41 -6.63 -11.07 -10.31 -6.13 -3.31 9.18 15.09 8.05 10.70 6.75 1.85 -3.28 1.51 1.00 -0.08 -0.26

NAV 351.09 323.26 375.87 418.61 392.85 403.34 366.96 386.77 365.80 341.02 310.92 293.97 283.00 260.24 255.47 238.90 236.05 223.54 210.98 221.05 231.28 219.98 206.39 206.87 187.86 192.06 185.04 185.74 167.92 171.53 161.57 153.48 143.74 139.17 130.80 133.84 129.36 133.77 127.86 128.13 132.58 127.66 126.83 125.51 120.44 120.30 112.63 107.89 105.64 101.58 101.33 108.32 110.30 112.28 106.40 102.84 101.20 99.84 103.08 99.14 97.38 94.10 89.58 90.31 94.47 97.28 109.78 115.69 108.57 111.07 107.07 102.10 96.94 101.68 101.12 99.98 99.74 100.00

Monthly Perf 8.61% -14.00% -10.21% 6.56% -2.60% 9.91% -5.12% 5.73% 7.27% 9.68% 5.77% 3.88% 8.75% 1.87% 6.94% 1.21% 5.60% 5.95% -4.56% -4.42% 5.14% 6.58% -0.23% 10.12% -2.19% 3.79% -0.38% 10.61% -2.10% 6.16% 5.27% 6.78% 3.28% 6.40% -2.27% 3.46% -3.30% 4.62% -0.21% -3.36% 3.85% 0.65% 1.05% 4.21% 0.12% 6.81% 4.39% 2.13% 4.00% 0.25% -6.45% -1.80% -1.76% 5.53% 3.46% 1.62% 1.36% -3.14% 3.97% 1.81% 3.49% 5.05% -0.81% -4.40% -2.89% -11.39% -5.11% 6.56% -2.25% 3.74% 4.87% 5.32% -4.66% 0.55% 1.14% 0.24% -0.26%

Acc. perf 251.09 223.26 275.87 318.61 292.85 303.34 266.96 286.77 265.80 241.02 210.92 193.97 183.00 160.24 155.47 138.90 136.05 123.54 110.98 121.05 131.28 119.98 106.39 106.87 87.86 92.06 85.04 85.74 67.92 71.53 61.57 53.48 43.74 39.17 30.80 33.84 29.36 33.77 27.86 28.13 32.58 27.66 26.83 25.51 20.44 20.30 12.63 7.89 5.64 1.58 1.33 8.32 10.30 12.28 6.40 2.84 1.20 -0.16 3.08 -0.86 -2.62 -5.90 -10.42 -9.69 -5.53 -2.72 9.78 15.69 8.57 11.07 7.07 2.10 -3.06 1.68 1.12 -0.02 -0.26

Month end Oct-15 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 Feb-15 Jan-15 Dec-14 Nov-14 Oct-14 Sep-14 Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13 Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 Mar-11 Feb-11 Jan-11 Dec-10 Nov-10 Oct-10 Sep-10 Aug-10 Jul-10 Jun-10 May-10 Apr-10 Mar-10 Feb-10 Jan-10 Dec-09 Nov-09 Oct-09 Sep-09 Aug-09 Jul-09 Jun-09 Inception

R

LONG, SHORT, GROSS & NET 220

100%

200

90%

180

80%

160 70% 140

120 50% 100 40% 80

Historical

60

Av.

Min

30%

Max

Gross

156%

52% 218%

Net

120%

37% 153%

Long

138%

44% 176%

Short

-18%

-5%

20%

40

20

10%

-43%

Short %

Long %

Based on data from the Administrator, SEB as of end October 2015.

26

Net %

Oct-15

Aug-15

Apr-15

Jun-15

Feb-15

Oct-14

Dec-14

Jun-14

Aug-14

Apr-14

Feb-14

Dec-13

Oct-13

Jun-13

Gross %

Aug-13

Apr-13

Feb-13

Dec-12

Oct-12

Jun-12

Aug-12

Apr-12

Feb-12

Dec-11

Oct-11

Jun-11

Aug-11

Apr-11

Feb-11

Dec-10

Oct-10

Jun-10

Aug-10

0%

Apr-10

0

Long and Short

60%

Feb-10

Net % 132 142 120 133 115 127 153 123 121 119 108 125 148 127 124 149 130 137 150 137 139 135 122 133 128 96 127 121 138 134 125 136 130 116 121 130 140 135 105 118 131 108 124 121 106 115 131 129 136 102 123 121 124 123 128 125 122 126 116 129 100 100 96 91 81 39 104 111 101 110 106 37 104 109 117 122 N/A N/A

Dec-09

Short % Gross % 26 184 23 188 40 201 43 218 37 189 26 180 16 185 11 145 12 145 11 141 23 154 11 147 16 181 14 155 12 148 10 170 13 156 12 161 9 169 8 153 11 160 12 160 16 154 14 161 15 157 19 134 19 168 30 181 34 205 17 167 18 160 12 160 14 159 17 149 8 138 14 158 18 177 9 152 11 126 15 147 12 156 19 147 14 153 14 148 28 161 22 158 15 161 16 160 14 164 15 133 14 151 14 148 17 158 23 170 19 166 22 169 22 166 22 170 20 156 20 170 20 139 21 141 24 144 26 142 27 135 33 105 33 171 24 160 24 150 32 173 11 127 8 52 8 121 6 122 8 133 5 131 N/A N/A N/A N/A

Oct-09

Long % 158 165 161 176 152 154 169 134 133 130 131 136 164 141 136 160 143 149 159 145 149 147 138 147 143 115 149 151 171 150 142 148 144 132 130 144 158 144 115 132 144 127 139 135 133 136 146 145 150 117 137 134 141 147 147 147 144 148 136 149 119 121 120 116 108 72 138 135 126 141 117 44 113 115 125 126 N/A N/A

Aug-09

31-Oct-15 30-Sep-15 31-Aug-15 31-Jul-15 30-Jun-15 31-May-15 30-Apr-15 31-Mar-15 28-Feb-15 31-Jan-15 31-Dec-14 30-Nov-14 31-Oct-14 30-Sep-14 31-Aug-14 31-Jul-14 30-Jun-14 30-May-14 30-Apr-14 31-Mar-14 28-Feb-14 31-Jan-14 31-Dec-13 29-Nov-13 31-Oct-13 30-Sep-13 30-Aug-13 31-Jul-13 28-Jun-13 31-May-13 30-Apr-13 28-Mar-13 28-Feb-13 31-Jan-13 31-Dec-12 30-Nov-12 31-Oct-12 28-Sep-12 31-Aug-12 31-Jul-12 29-Jun-12 31-May-12 30-Apr-12 30-Mar-12 29-Feb-12 31-Jan-12 30-Dec-11 30-Nov-11 31-Oct-11 30-Sep-11 31-Aug-11 29-Jul-11 30-Jun-11 31-May-11 29-Apr-11 31-Mar-11 28-Feb-11 31-Jan-11 31-Dec-10 30-Nov-10 29-Oct-10 30-Sep-10 31-Aug-10 30-Jul-10 30-Jun-10 31-May-10 30-Apr-10 31-Mar-10 26-Feb-10 29-Jan-10 31-Dec-09 30-Nov-09 30-Oct-09 30-Sep-09 31-Aug-09 31-Jul-09 30-Jun-09 22-Jun-09

R

LEGAL DISCLAIMER Rhenman Healthcare Equity L/S Fund, “the Fund” is not an investment fund as defined in the European Union directives relating to undertakings for collective investment in transferable securities (UCITS). Legal information regarding Fund is contained in the Prospectus and the KIID, available at Rhenman & Partners Asset Management AB (Rhenman & Partners) webpage: http://rhepa.com/the-fund/prospectus/.

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.

This material has been prepared by Rhenman & Partners for professional and nonprofessional investors. Rhenman & Partners when preparing this information has not taken into account any one customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are not intended to represent recommendations of particular investments to particular customers. This material is for informational purposes only and should not be construed as an offer or solicitation to sell or buy units the Fund.

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.

All securities' transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. There can be no assurance that an investment in the Fund will achieve profits or avoid incurring substantial losses. There is a high degree of risk inherent in investments and they may not be suitable for all eligible investors. It is possible that an investor may lose some or all of its investment. The past is not necessarily a guide to the future performance of an investment. 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.

By accessing and using the http://rhepa.com/ website and any pages thereof, you acknowledge that you have reviewed the following important legal information and understand and agree to the terms and conditions set therein. If you do not agree to the terms and conditions in this disclaimer, do not access or use http://rhepa.com/website in any way.

Products and services described herein are not available to all persons in all geographical locations. Rhenman & Partner will not provide any such products or services to any person if the provision of such services could be in violation of law or regulation in such person's home country jurisdiction or any other related jurisdiction. The units of the Fund may not be offered or sold to or within the United States or in any other country where such offer or sale would conflict with applicable laws or regulations.

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.

In no event, including (but not limited to) negligence, will Rhenman & Partner be liable to you or anyone else for any consequential, incidental, special or indirect damages (including but not limited to lost profits, trading losses and damages).

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

The sole legally binding basis for the purchase of shares of the Fund described in this information is the latest valid sales prospectus with its terms of contract. Subscriptions cannot be received on the basis of financial reports.

27