CCMAN A

SULILk kLCk1
uLCLM8L8 7, 2010
1nIS IS A SAMLL kLCk1

2
Company Cverv|ew
8us|ness n|story
Company A was lncorporaLed ln CCun18? ln 2006 by nAML who Look Lwo subsldlarles of CCMAn? 8
(CCMAn? C and CCMAn? u) and creaLed Company A ln order Lo provlde developmenL and
manufacLurlng servlces for anLlcancer drugs wlLh 8CuuC1 characLerlsLlcs.

Company A exlsLs Lo be a SpeclalLy CuMC dedlcaLed Lo Lhe formulaLlon, developmenL and manufacLurlng
of anLlcancer drugs wlLh hlgh poLency characLerlsLlcs."

Ma|n Iocus:
Servlng Lhe lnnovaLors such as global pharma and bloLechnology orlenLed companles as a one sLop shop"
for any company LhaL operaLes Lhe hlgh poLency 1PL8ALu1lC drugs markeL, wlLh boLh bloLech and small
molecules based producLs.

Serv|ce Cr|entat|on:
rovldlng servlces on flnlshed dosages from Lhe early developmenL phases up Lo Lhe commerclal
manufacLurlng.

Inte||ectua| roperty:
lnLellecLual roperLy comlng from rocess uevelopmenL wlll noL be reLalned by CCMAn? A. 1he value
added Lo Lhe producL wlll be compensaLed by engaglng CCMAn? A for boLh Cllnlcal and Commerclal
supply.




3
Length of 1|me |n 8us|ness
CCMAn? A has been ln buslness for 4.3 years (lncorporaLed ln !uly 2006)

S|ze and Corporate Structure
CCMAn? A currenLly has 178 emp|oyees.
1helr corporaLe leadershlp ls reflecLed ln Lhe followlng organlzaLlonal charL:



8us|ness Structure
lormer CCMAn? x planL acqulslLlon
lormed by comblnlng Lwo former CCMAn? 8 subsldlarles, CCMAn? C and CCMAn? u
lully flnanced by Lhe Shareholders and C8Lul1 Croup
arLlally Subsldlzed by Lu due Lo Lhe lnnovaLlon on boLh cCM compllance and envlronmenLal
proLecLlon
CCMAn? A & CCMAn? 8 operaLe under a non-confllcL, non-compeLe" agreemenL



4
n|story of Lmp|oyee Count
1he followlng lnformaLlon ls a hlsLory of employee counL for CCMAn? A for each of Lhe lasL flve years.
All growLh can be aLLrlbuLed Lo Lhe organlzaLlon's sLrong raLe of growLh overall. 1here were no
acqulslLlons, dlvesLlLures, or layoffs Lo reporL of ln Lhe shorL hlsLory of Lhe LargeL company.

Source: nAML, 8uslness uevelopmenL & MarkeLlng ulrecLor, CCMAn? A



3
Number of Lmp|oyees
1he followlng graphlc lllusLraLes Lhe overall number of employees broken down by buslness area. ln
addlLlon, Lhe numbers of employees for each buslness area ls broken down as a percenLage of Lhe overall
workforce.




6
Locat|on
CCMAn? A ls locaLed ln LACL. 1hls locaLlon ls Lhe only locaLlon Lhey have occupled ln Lhe hlsLory of Lhe
company.





7
8us|ness Mode| Summary
Solely focused on conLracL manufacLurlng of 8CuuC1 for cancer LreaLmenL
Servlce offerlng:
uevelopmenL
Cllnlcal Supply
Commerclal Supply
CapablllLles:





8
kegu|atory Status
LMA Inspect|on: Ian 4-10, 2008
SlLe approval as a manufacLurer for anLlcancer drugs for Cllnlcal and Commerclal supply for Lhe
followlng capablllLles:
o SLerlle llqulds asepLlcally fllled
o SLerlle llqulds asepLlcally fllled and Lermlnally sLerlllzed
o Lyophlllsed vlals
o Capsules
o CoaLed and uncoaLed 1ableLs
LMA Inspect|on: Iune 3-10, 2008
SLerlle 1 area auLhorlzaLlon
ManufacLurlng
IDA Inspect|on: Iebruary 1S-21, 2010
Ceneral CM lnspecLlon
Al for 3 producLs (llquld on SLerlle 2, lyophlllsed on SLerlle 2, lyophlllsed on SLerlle 1)
no 483 on any producLs


Markets Served
CCMAn? A serves cusLomers ln Lhe followlng markeL areas:
!apan
uS
Lu

Customer 8ase
CCMAn? A serves 12 of Lhe Lop 20 pharmaceuLlcal companles.
8oLh bloLech and ma[or pharma companles are cllenLs.
uS ls largesL cusLomer base, wlLh !apan comlng ln second, and only a few cusLomers ln Lu.



9
key 8us|ness artnersh|ps and ke|at|onsh|ps
arLnered wlLh CCMAn? 8

As of !uly 31, 2010 and 2009, Lhe Company had an lnvesLmenL of $3.0 mllllon and $1.3 mllllon,
respecLlvely, represenLlng an 18 lnLeresL ln Lwo companles (collecLlvely referred Lo as Company A")
whose largesL lnvesLor was an offlcer of Lhe Company unLll uecember 31, 2009. 1hese companles
speclallze ln Lhe manufacLurlng of 8CuuC1 pharmaceuLlcal producLs. Cn !uly 2, 2008, Lhe Company
slgned a shareholders' agreemenL wlLh Lhe oLher lnvesLors ln Company A, Lhe Lerms of whlch provlde
Lhe Company wlLh slgnlflcanL lnfluence over Lhe sLraLeglc operaLlng, lnvesLlng and flnanclng pollcles
of Company A. As a resulL, Lhe Company ls now accounLlng for lLs lnvesLmenL ln Company A uslng Lhe
equlLy meLhod. Accordlngly, for Lhe nlne monLhs ended !uly 31, 2010, and 2009, Lhe Company
recorded lnvesLmenL lncome of $0.6 mllllon and a loss of $0.7 mllllon, respecLlvely." (Source:
8LMCvLu)


As noLed ln Lhe above menLloned quoLe, CCMAn? 8 has an 18 mlnorlLy share ln Lhe company and
ls lnvolved ln Lhe governance of CCMAn? A.
CCMAn? A ls noL a subsldlary of CCMAn? 8.


10
|ant fac|||t|es and capab|||t|es:
230,000 sq. fL.
8ullL on a 30 acre campus
Crganlc solvenLs usage allowed on boLh developmenL and CM ManufacLurlng
CompllanL wlLh luA and LMA regulaLlons
ln Lhls nlche envlronmenL CCMAn? A offers a compleLe developmenL and producLlon package Lo
provlde a framework for success."
CCMAn? A's hlgh conLalnmenL manufacLurlng faclllLy allows for safe producLlon and provldes
lncreased governmenL supporL.
ConLalnmenL ls malnLalned by lnsulaLlng sysLems (lsolaLors and Closed 8A8s) focuslng on quallLy
of Lhe alr. 1he personal proLecLlon ls a plus.
1he plan has been deslgned Lo achleve Lhe followlng CccupaLlonal Lxposure LlmlL as per prlmary
conLalnmenL:
o uL1AlL 8LMCvLu



11
Management 1eam
Lxecut|ve prof||es for current management team member:
1hls secLlon removed for sample.
Stab|||ty of management team
1he managemenL Leam ls secure wlLh no recenL changes.
lL should be noLed LhaL several of Lhe 178 currenL employees are relaLed, lncludlng Lhe CLC and
8uslness uevelopmenL and MarkeLlng ulrecLor.



12
Lconom|c Assessment of keg|on of Cperat|ons
uarter|y GD for the |ast 3 years and econom|c out|ook for the reg|on:

CCUN1k GD Growth kate and 1ota| ear GD
LAk 1 2 3 4 1C1AL GD (USD)
2010 0.40 0.30 0.20 -- n/A
2009 (2.9) (0.30) 0.40 (0.10) 2.113 1rllllon
2008 0.40 (0.70) (1.10) (2.00) 2.297 1rllllon
2007 0.30 0.10 0.20 (0.30) 2.116 1rllllon

Luropean Area GD Growth kate and 1ota| ear GD
LAk 1 2 3 4 1C1AL GD (USD)
2010 0.20 1.00 0.40 -- n/A
2009 (2.30) (0.10) 0.40 0.10 12.436 1rllllon
2008 0.70 (0.40) (0.30) (1.90) 13.382 1rllllon
2007 0.80 0.40 0.60 0.40 12.319 1rllllon

Month|y emp|oyment data for the |ast 3 years and emp|oyment out|ook
for the reg|on

CCUN1k (In percentages)
LAk !an leb Mar Apr May !un !ul Aug Sep CcL nov uec
2010 8.3 8.4 8.6 8.6 8.6 8.3 -- 8.2 8.2 -- -- --
2009 7.1 7.2 7.8 7.4 7.3 7.7 7.8 7.8 8.1 8.3 8.3 8.4
2008 6.7 6.6 6.4 6.9 6.8 6.9 6.7 6.9 6.7 6.8 7.0 6.8
2007 6.1 3.9 3.9 3.7 6.1 6.0 6.4 6.2 6.0 6.1 6.1 6.7

Luropean Area (In percentages)
LAk !an leb Mar Apr May !un !ul Aug Sep CcL nov uec
2010 9.9 9.9 10.0 10.0 10.0 10.0 10.1 10.1 10.0 10.1 -- --
2009 8.3 8.8 9.1 9.2 9.4 9.3 9.6 9.7 9.8 9.8 9.8 9.8
2008 7.3 7.2 7.2 7.3 7.4 7.3 7.3 7.6 7.7 7.8 8.0 8.2
2007 7.8 7.7 7.6 7.3 7.3 7.3 7.3 7.4 7.4 7.3 7.3 7.4




13
1ax po||cy (current, recent changes, and ant|c|pated changes)

CCUN1k Corporate 1ax:
1he corporaLe Lax (l8LS) raLe ln CCun18? ls 27.S, plus l8A of 3.9 (or 4.9) or an addlLlonal
S.S corporaLe lncome Lax charge.

As a rule, corporaLe lncome Lax (named l8LS from 2004) ls payable by all resldenL companles on
lncome from any source, wheLher earned ln CCun18? or abroad. non-resldenL companles are
sub[ecL Lo l8LS only on lncome earned ln CCun18?. 8oLh resldenL and non-resldenL companles
are sub[ecL Lo reglonal lncome Lax (l8A), buL only on lncome arlslng ln CCun18?. 1he corporaLe
lncome Lax raLe (l8LS) ls 27.30. Companles lnvolved ln Lrade and manufacLurlng are also
sub[ecL Lo a reglonal Lax on producLlve acLlvlLles (l8A) aL Lhe raLe of 3.90 alLhough reglonal
auLhorlLles may lncrease or decrease Lhe sLandard raLe by up Lo one percenLage polnL. lL ls
envlsaged LhaL l8A wlll be gradually ellmlnaLed ln Lhe near fuLure.

An addlLlonal S.S corporaLe lncome Lax charge (l8LS - l.e. l8LS 27.3 + 3.3) ls levled on
companles (l) havlng revenues hlgher Lhan Lu8 23 mllllon ln Lhe relevanL flscal perlod, and (ll)
carrylng on Lhelr acLlvlLles ln one of Lhe followlng flelds:
8esearch and explolLaLlon of hydrocarbon
Cll reflnlng, producLlon and sale of peLrol, gasollne, gas, lubrlcaLlng oll, llquefled gas of peLrol and
naLural gas
roducLlon and sale of elecLrlclLy.

Company Lax reLurns, whlch cover boLh l8LS and l8A, musL be flled wlLhln nlne monLhs of Lhe
sLaLuLory year end by elecLronlc Lransmlsslon. An advance Lax paymenL ls payable by Lhe 16Lh
day of Lhe slxLh monLh of Lhe accounLlng perlod equal Lo approxlmaLely 40 of Lhe prevlous
year's lncome Lax llablllLy. A second advance paymenL of abouL 60 ls due by Lhe end of Lhe
11Lh monLh of Lhe company's flnanclal year, l.e. 30 november. Any remalnlng amounL would be
due by Lhe 16Lh day of Lhe slxLh monLh afLer Lhe end of Lhe perlod (Source: 8LMCvLu)


Source: LconomlsL lnLelllgence unlL 2010

Ant|c|pated changes:
8uslnesses [ln CCun18?] should expecL ma[or changes Lo Lhe Lax sysLem ln Lhe nexL Lwo or
Lhree years, lncludlng Lhe lnLroducLlon of a federal sysLem of LaxaLlon. 1he lmpacL of Lhe
changes ls dlfflculL Lo predlcL and compllance may noL lmprove." (Source: www.elu.com)
1Ak CLIC kISk kA1INGS for
CCUN1k CurrenL CurrenL revlous revlous
8aLlng Score 8aLlng Score
Cverall assessmenL 8 31 8 30
1ax pollcy rlsk 8 38 8 38

14
Cverv|ew of cap|ta| markets and company's ab|||ty to access these
markets:
Llke many Luropean counLrles CCun18?'s caplLal markeLs have experlenced slgnlflcanL
Lurbulence over Lhe pasL several years. lnvesLmenL ln shorL Lerm caplLal producLs has decllned
sharply, whlle lncreases ln long Lerm caplLal producLs have been mlnlmal.

Company A ls a prlvaLely held company wlLh sLrong flnanclng and a low debL raLlo, company
sources lndlcaLe LhaL Lhere ls currenLly no need, and no plans, for accesslng caplLal markeL
fundlng.

Cverv|ew of econom|c |ncent|ves offered to |ndustry of |nterest:
LnLerprlses operaLlng ln CCun18? can Lake advanLage of a greaL many opporLunlLles and
lncenLlves: from Lhe flnanclng of Lhe purchase of machlnery and planLs all Lhe way Lo Lhe
leglslaLlon regulaLlng Lhe launch of new buslness acLlvlLles, and ln Lhls conLexL Lhere are also
speclflc provlslons for women's enLerprlses.
1he law governlng lncenLlves ls currenLly based on communlLy provlslons on SLaLe Ald Lo
enLerprlses. Avallable lncenLlves are sLlpulaLed ln reglonal laws, naLlonal laws or CommunlLy
programmes.

8uslnesses are dlfferenLlaLed beLween large-scale, small and medlum-slzed (SMLs) and mlcro-
enLerprlses. As of !anuary 1sL 2003 Lhe deflnlLlon of small and medlum-slzed enLerprlses-whlch
are Lhe maln reclplenLs of lncenLlves-follow Lhe crlLerla conLalned ln new recommendaLlon
361/2003/LC adopLed by Lhe Luropean Commlsslon, whlch also lnLroduced Lhe new caLegory of
mlcro-enLerprlses.
lnLervenLlons and lncenLlves for Lhe beneflL of buslnesses can be grouped lnLo Lwo maln
caLegorles: flnanclal lncenLlves and Lax rellef.

llnanclal lncenLlves conslsL malnly of: conLrlbuLlons Lo caplLal accounLs, whlch are deLermlned
as a percenLage of Lhe allowable expenses, granLs LhaL do noL foresee repaymenL of caplLal or of
lnLeresL, conLrlbuLlon Lo lnLeresL accounLs almed aL lowerlng Lhe lnLeresL raLe applled for
flnanclng Lhe buslness, 1ax rellef ls consldered an lndlrecL Lype of lncenLlve as lL does noL conslsL
of dlrecL conLrlbuLlons buL works by means of exempLlons or reducLlons of Lhe flscal burden."
(Source: CCun18? MlnlsLry of lorelgn Affalrs)


"1he econom|c cr|s|s and structura| d|ff|cu|t|es don't d|scourage the CCUN1k b|otech
ln CCun18?, as ln Lhe resL of Lurope, Lhe lnvesLmenLs wlLhln Lhe bloLech fleld have decreased
due Lo Lhe global economlc crlsls. ln parallel, Lhere has been a decrease ln Lhe flnanclng, wlLh a
cascade process whlch broughL Lo almosL zero lC, by venLure CaplLallsLs who prefer Lo
concenLraLe on lnvesLmenL porLfollos already exlsLlng and by hedge funds, whlch reduced Lhe
caplLal lnvesLmenLs ln Lhe bloLech buslness. Lven Lhough Lhey have recelved less flnanclng wlLh

13
respecL Lo Lhe oLher counLrles, Lhe CCun18? bloLech companles are ln llne wlLh Lhe average
decrease of Lhe uL flnanclal avallablllLles. lrom a Lrend polnL of vlew, Lhe CCun18? bloLech
companles are orlenLed Lowards Lhe research of flnanclng Lhrough speclallzed venLure CaplLallsL
and granLs, and are less lncllned Lowards deblLs as ln Lhe pasL. ln splLe of Lhe dlfflculLles ln
ralslng funds worsened by Lhe economlc crlsls, and Lhe economlc lnsLablllLy Lyplcal of Lhls
buslness model - [usL Lhlnk abouL Lhe facL LhaL ln 30 of Lhe cases Lhe avallable cash ls noL
sufflclenL for Lhe whole year - Lhe pure bloLech companles are opLlmlsLlc, forecasLlng Lo be
proflLable for Lhe end of 2009 ln more Lhan 30 of Lhe cases.

1he ma|n cha||enge for the future: the f|nanc|ng and the |ncent|ves for th|s f|e|d
1he CCun18? bloLech lndusLry has grown rapldly wlLhln Lhe lasL Len years and represenLs
nowadays a growlng reallLy. ln facL, even Lhough Lhe counLry sLarLed Lhe bloLech compeLlLlon
laLe, lL has managed Lo make up for Lhe losL ground, becomlng an lmporLanL player on an
lnLernaLlonal level. 1o consolldaLe Lhls poslLlon and almlng aL achlevlng greaLer resulLs, we need
Lo lmprove Lhe research flnanclng sysLem and have adequaLe supporL measures. Cverall, Lhe
publlc and prlvaLe research ln CCun18? has lnefflclenL flnanclng, boLh on a quanLlLy and quallLy
polnL of vlew, wlLh a slow admlnlsLraLlve managemenL whlch does noL keep up wlLh Llme and
Lhe pro[ecL's compeLlLlve requlremenLs.

Malnly, funds are allocaLed accordlng Lo slow and very compllcaLed procedures whlch mosL of
Lhe Llme are noL correlaLed Lo Lhe pro[ecLs' sclenLlflc conLenLs, are lnadequaLe Lo reach Lhe
ob[ecLlves and, mosL of all, mlsslng Lhe valuaLlon crlLerla ex-anLe and ex-posL whlch are rellable
and ln llne wlLh Lhe sLrlcL lnLernaLlonal sLandards.

ln order Lo make furLher sLeps ahead, Lhe CCun18? bloLech needs Lo sLrengLhen Lhe capaclLy of
Lhe varlous small flrms ln pursulng growLh and consolldaLlon and Lo launch Lhe producLs and
Lechnologles belng developed on Lhe markeL. 1hls wlll requlre Lhe avallablllLy of lmporLanL
flnanclal resources, whlch wlll necessary have Lo come from lnsLlLuLlons (8eglons & MlnlsLers),
buL also from Lhe varlous flnanclal and economlc players. unforLunaLely, Lhe venLure CaplLallsLs
speclallzed ln Lhe bloLech fleld ln CCun18?, do noL exlsL. 1he resL of Lhe CCun18? flnanclal
world does noL appreclaLe Lhe rlsk level whlch ls Lyplcal of Lhe bloLech fleld, sLruggllng Lo
undersLand Lhe loglcs and mechanlsms. Moreover, Lhe flscal law whlch susLalns research ls
lnadequaLe wlLh respecL Lo Lhe oLher Luropean counLrles.

1he malnLenance and Lhe hlgher lmporLance of Lhe flscal rellef, as for Lhe Lax credlL for Lhe
research companles, on a perlod of Llme adequaLe and ln llne wlLh Lhe lndusLrlal demands, are a
fundamenLal sLep whlch wlll allow Lhe counLry Lo make up for Lhe losL ground on Lhe lndusLrlal
compeLlLlveness." (Source: 8LMCvLu)



16
kecent News ] Lvents (ast 3 years)
artnersh|ps, re|at|onsh|ps, acqu|s|t|ons, mergers, agreements, etc.
none
I|nanc|ng
none
kestructur|ng
none
New s|tes or c|osures
none
Management team changes
none
roduct ] serv|ce offer|ng |aunches and d|scont|nuat|ons
none, excepL Lhe luA quallflcaLlons menLloned ln 8egulaLory SLaLus lnformaLlon ln Lhe Company
Cvervlew SecLlon.
Lntry |nto and ex|t from markets
none
kumors
none


17
8us|ness Assessment
erce|ved strategy (proposed bus|ness changes, d|rect|on)
CCMAn? A wlll conLlnue Lo focus on 8CuuC1 conLracL manufacLurlng producLlon.
CCMAn? A's aggresslve growLh pro[ecLlons reflecL Lhe company's conLlnued focus on expandlng
Lhelr share of Lhe 8CuuC1 markeL.
CCMAn? A execuLlves lndlcaLed Lhere ls no plan for slgnlflcanL changes ln Lhe company's buslness
sLraLegy.

Market Cverv|ew:

lncldence of cancer ls expecLed Lo rlse wlLh Lhe agelng populaLlon. need for effecLlve 8CuuC1
Lheraples are llkely Lo remaln.

1he 8CuuC1 Lheraples markeL ls seL Lo experlence negaLlve growLh Lo 2019 wlLh a large
number of producLs loslng Lhelr paLenLs over Lhe nexL 3 years. lL ls expecLed LhaL even wlLh loss
of Lhese paLenLs, lnLroducLlon of new 8CuuC1 drugs Lo Lhe markeL wlll off-seL Lhls decllne.

A ma[or LhreaL Lo Lhe 8CuuC1 markeL ls Lhe paLenL explraLlon of Lwo leadlng 8CuuC1
producLs. 1hese producLs are 8CuuC1 and 8CuuC1. 1he 8CuuC1 paLenL already explred ln
Lurope ln 2007 and 8CuuC1 explred ln uS and Lurope Lhls year. 8oLh of Lhese producLs are
made by CCML1l1C8.

8CuuC1 ls Lhe besL-selllng 8CuuC1 Lherapy drug. ln 2007, lL generaLed $2 bllllon. 8CuuC1
generaLed $1.8 bllllon whlle CCML1l1C8's 8CuuC1 generaLed $1.2 bllllon.

1he 8CuuC1 paLenL wlll explre ln !apan ln May 2013 and lL wlll explre ln Lhe uS ln AugusL 2016.
Cenerlcs are Lhe blggesL LhreaL Lo 8CuuC1 sales. Powever, lL ls expecLed LhaL sales of
8CuuC1 wlll sLlll remaln sLrong and LhaL sales would reach $2.7 bllllon ln 2017.

new 8CuuC1 drugs are llkely Lo off-seL Lhe decllne of Lhe 8CuuC1 markeL caused by Lhe
explraLlon of 8CuuC1 and 8CuuC1 paLenLs. 1hese new drugs are 8CuuC1 by CCML1l1C8
and 8CuuC1 by CCML1l1C8.

lollowlng lLs launch ln 2006, 8CuuC1 became a ma[or compeLlLlve LhreaL Lo 8CuuC1 whlch
was launched ln 2004. lL ls expecLed LhaL sales of 8CuuC1 and 8CuuC1 wlll grow ln llne over
Lhe forecasL perlod of 2007 Lo 2017. 1hls wlll boosL Lhe LoLal 8CuuC1 Lherapy cancer brand
markeL over Lhe nexL 10 years.

8CuuC1 ls anoLher drug LhaL ls expecLed Lo compeLe wlLh 8CuuC1 ln Lhe nexL 10 years.

18

1he 8CuuC1 markeL wlll experlence conLracLs from $14 bllllon ln 2009 Lo $13.9 bllllon ln 2019
across Lhe seven ma[or pharmaceuLlcal markeLs. 1hls ls equlvalenL Lo -0.1 CAC8 decllne.

Sources:
1. 8LMCvLu



19
Compet|t|ve |andscape
Whlle Lhere are a number of 8CuuC1 manufacLurers ln Lhe markeL, Lhe ma[orlLy of Lhese companles
produce a wlde varleLy of producLs oLher Lhan 8CuuC1. CCMAn? A belleves LhaL Lhelr excluslve
focus on 8CuuC1 producLlon ls a slgnlflcanL dlfferenLlaLor.
CCMAn? A percelves Lhelr Lop 4 compeLlLors as:
CCMAn? L
o 9800 employees
o 2009 Lurnover was 1.8 8llllon Lu8
o 30 of buslness ls lnLernaLlonal
o 1hree prlmary dlvlslons: harmaceuLlcal, uermo and CosmeLlcs, lamlly Medlclne.
CCMAn? l
o lounded ln 1938
o LocaLed ouLslde of Cleveland, CP
o 8ecame a Subsldlary of 8oehrlnger lngelhelm CorporaLlon ln 2007
o 30 year relaLlonshlp and conLracL wlLh Lhe naLlonal Cancer lnsLlLuLe
CCMAn? C
o 1300 employees
o Cver 200 cusLomers served
o rlmary 8uslness: roducL developmenL, Cllnlcal Lrlals servlces, conLracL manufacLurlng and
cold chaln and loglsLlcs servlces.
CCMAn? P
o 1100 employees
o LsLlmaLed $43.23 Mllllon ln sales
o lncorporaLed ln May 2004
CCMAn? A sees Lhelr key company dlfferenLlaLors as:
1echnology
ConLalnmenL capablllLles
Strengths
1he focused producLlon and speclallzaLlon ln Lhe 8CuuC1 pharmaceuLlcal markeL allows CCMAn?
A Lo lncrease effecLlveness of Lhelr producLs, as well as malnLaln excellenL quallLy conLrol, and meeL
markeL demands and sLandards.

20
CCMAn? A ls heavlly slloed ln order Lo keep a hlgh level of confldenLlallLy for Lhelr cusLomers. ln
facL, lL ls noL uncommon for Lechnlclans lnvolved ln Lhe producLlon of varlous producLs Lo noL know
who Lhe cllenL/cusLomer ls.
CCMAn? A's hlgh conLalnmenL manufacLurlng faclllLy allows for safe producLlon and lncreased
governmenL supporL.
Weaknesses
CCMAn? A's excluslve focus on 8CuuC1 can also be a weakness due Lo dependency on Lhe
8CuuC1 markeL and hlgh compeLlLlve pressure.
CCMAn? A ls a small company and may noL have Lhe recourses Lo maLch value-add servlces offered
by compeLlLors.
non-compeLe agreemenL wlLh CCMAn? may llmlL CCMAn? A's markeL opporLunlLles.
k|sks (|awsu|ts, market |ssues, etc.)
none
erce|ved rat|ona|e]benef|t |n do|ng bus|ness w|th company
CCMAn? A appears Lo offer a hlgh quallLy producL wlLh hlgh quallLy conLrol and overall producLlon
capablllLles.
erce|ved r|sk |n dea||ng w|th company
As seen ln Lhe daLa presenLed Lhus far, Lhere are noL many percelved rlsks ln deallng wlLh CCMAn?
A. 1he only mlnor rlsk LhaL should be noLed ls Lhe facL LhaL CCMAn? A ls sLlll a young company. lL ls
yeL Lo be seen how Lhey wlll be funcLlon as a long-Lerm player ln Lhe global pharmaceuLlcal and
bloLech markeL. 1helr Lrack record Lo daLe ls sLrong, buL only Llme wlll Lell lf Lhelr performance over
Lhe lasL 4.3 years ls lndlcaLlve of Lhelr overall long-Lerm performance.


21
I|nanc|a| Assessment: Important f|nanc|a| |nd|cators

Source: nAML, 8uslness uevelopmenL & MarkeLlng ulrecLor, CCMAn? A)



22
Iu|| 8a|ance Sheet, Income Statement and Statement of Cash I|ows

23




24

kat|os of CCMAN A


Deta||s of Debt
CCMAn? A was awarded Lhe Lu Crade of lnnovaLlon for lLs lnvesLmenL, Lherefore 80 of lLs L1 debL
has been co-granLed by Lhe Lu. AddlLlonally, Lhe lnLeresL raLe CCMAn? A ls paylng on 30 of lLs L1
uebL ls 0.3.
8elng LhaL CCMAn? A ls a sLarL-up Company, seL up wlLh [governmenL] ro[ecL llnanclng Lools, all
of Lhe raLlos you can calculaLe wlll look very dlfferenL from whaL you would expecL from a long-Lerm,
esLabllshed company.
CCMAn? A ls noL obllgaLed Lo begln debL prlnclpal repaymenL unLll !une 2012, before LhaL daLe only
Lhe lnLeresL on debL ls due.

rof|tab|||ty kat|os
Cross Margln (Cross proflL margln, Cross proflL
raLe) = 0.0869S
CperaLlng Margln (CperaLlng lncome Margln,
CperaLlng roflL Margln, 8eLurn on Sales) =
0.1304
roflL Margln (neL Margln, neL roflL Margln) =
0.1304
8eLurn on LqulLy (8CL) = 0.02
AsseL 1urnover = 0.0S38
8eLurn on AsseLs (8CA) = 0.0070
L|qu|d|ty kat|os CurrenL 8aLlo = 36.9047
Acld-1esL raLlo (Culck raLlo) = 3.0476
CperaLlng Cash llow 8aLlo (CCl) = 2.0
Worklng CaplLal 1urnover = 0.0610
Act|v|ty kat|os 8ecelvables 1urnover 8aLlo = 0.S197
Average CollecLlon erlod
lnvenLory 1urnover 8aLlo = 2.87S
Average uays Lo Sell Lhe lnvenLory
Debt kat|os uebL 8aLlo (uebL Lo 1oLal AsseLs) = 0.S122
Long-1erm uebL/1oLal AsseL (Lu/1A) 8aLlo =
0.S122
uebL Lo LqulLy 8aLlo (lnLeresL Coverage 8aLlo,
llxed-charged Coverage) = 1.7833



23
Ana|ys|s of I|nanc|a| Ind|cators and Company V|ab|||ty
CCMAn? A ls a well funded company LhaL has demonsLraLed encouraglng growLh. 1he company has a
relaLlvely low debL-Lo-lncome raLlo for a sLarL-up, and, ln Lerms of growLh, has ouLperformed lLs markeL
secLor for Lhe lasL Lhree years.

erce|ved Need for I|nanc|ng
8ased on analysls of Lhe company flnanclals and on dlrecL lnLervlews wlLh company sLakeholders,
CCMAn? A currenLly does noL have a need for exLernal flnanclng.

kecommendat|on for qua||fy|ng supp||er
8ased on CCMAn? A's flnanclal sLandlng, buslness model and compeLlLlve dlfferenLlaLors, Sedulo glves
CCMAn? A pos|t|ve recommendaLlon.


26
Cverv|ew ] kecommendat|on
8us|ness assessment summary
CCMAn? A has a sLrong buslness model focused on all phases of 8CuuC1 conLracL manufacLurlng.
1helr excluslve focus on 8CuuC1 and Lhelr leverage of leadlng manufacLurlng Lechnology are clear and
relevanL dlfferenLlaLors ln Lhe markeL.

I|nanc|a| assessment summary
AlLhough CCMAn? A ls a relaLlvely young company (4.3 years), Lhey have demonsLraLed encouraglng
growLh, ouLperformlng Lhelr peers for Lhe lasL Lhree years. 8ased on Lhe company's currenL growLh raLe,
relaLlvely low debL, governmenL Lax and debL repaymenL lncenLlves, sLrong cusLomer base and 8CuuC1
markeL growLh, Sedulo's overall assessmenL of CCMAn? A's flnanclal sLandlng ls poslLlve.