Internet:

www.suregene.net

Address:

Contact:

Tim Ramsey

Phone:

Fax:

502/584-2198

e-Mail:

tim.ramsey@suregene.net

MARKET: Millions of mental health patients each year are misdiagnosed, undiagnosed or prescribed an ineffective medicine. The lack of biological diagnostics for mental illnesses lies at the heart of this problem. This diagnostic gap creates tremendous unmet medical need. Indeed, the economic burden of schizophrenia alone is over $60 B in the US each year. SureGene’s genetic tests will bring biology to psychiatry. SureGene’s tests will address both diagnosis and drug response. SureGene will be the first company to offer a diagnostic test that will distinguish between schizophrenia, bipolar, and other mental disorders. Additionally, SureGene will offer the most comprehensive pharmacogenomic panel (drug response) on the market. Potentially, 100 million people in the developed world could benefit from SureGene’s tests. SureGene plans to submit its first product to the FDA’s Medical Device division in 2009. SureGene believes that test revenues could exceed $500 million by 2015.

HISTORY: After 10 years of research and $5 million of NIH funding, SureGene began operations in 2004. To date, SureGene has received over $1.45 million from federal and state sources. SureGene is also on track to earn a $1,350,000 Phase II SBIR award in 2008, which should be matched by Kentucky for up to an additional $1,000,000.

COMPETITION: There are several companies in the diagnostic space for mental illness. In particular, Theragenics, Clinical Data, and Psynomics are active in the field. SureGene however has a very significant competitive advantage over its competitors. SureGene’s IP estate dwarfs its’ competitor’s. SureGene has placed a tremendous barrier to entry in the space by virtue of have over 200 patent-pending genes compared to IP estates of its competitors, which are all believed to be below 5 genes.

BUSINESS MODEL: SureGene’s anticipates that its test will be doctored ordered. To drive demand, SureGene anticipates partnering with an established sales and marketing partner that has the scope to reach large numbers of physicians. Therefore, SureGene will derive to bulk of its revenue from licensing income. This model offers the advantage of substantial revenue with minimal cost. For every $100 million of test revenue SureGene can return $25-$30 million of net income to its investors. Potential partners include the large diagnostic players (e.g. Roche and Abbott), the laboratory service companies (Quest and LabCorp), and midsized biotech companies (Myriad and decode).

MANAGEMENT: CEO/CFO - Timothy L. Ramsey, M.S. and M.B.A., has an extensive background in both entrepreneurship and biotechnology. Most recently, he was one of three individuals devoted full-time to strategy at Lilly Research Labs, a $2.7 billion/yr R&D organization. Previously, he co-founded Iterative Therapeutics, a Chicago-based biotech start-up. Ramsey earned his M.B.A. from the University of Chicago and his M.S. in Biochemistry from the University of Louisville School of Medicine. CSO - Mark D. Brennan, Ph.D. is Cofounder of SureGene LLC and lead inventor of the AssureGene^TM test. He is a full Professor in the Department of Biochemistry and Molecular Biology at the University of Louisville. Brennan is a cofounder of the University of Louisville’s Center for Genetics and Molecular Medicine. His research has been supported by grants totaling $7.8 million since 1985.