Vision, Planning, Action

Products and Deliverables

Dillon Capital Strategies (DCS) offers a variety of ways to acquire our products: 1. Custom Deliverables - Custom designed engagements often include products or deliverables. Some examples include: o Professional Reports. These are used to memorialize project findings and/or to share with  your Board, bankers, investors or other parties. o Presentations. Presentations include project reports, presentations to give to internal or external parties or promotional material. Clients often use DCS crafted presentation material in their presentations to potential partners. o Models. Most any quantitative work done by DCS includes the use of Excel models. Purely custom models built for clients are often provided to the client for their use after the project is over. If needed, DCS will provide training on how to use and update models provided. 2. Term Sheets and Other Deal Documents - DCS maintains a library of term sheet and deal document templates. We use these templates as a basis for crafting customized term sheets and other deal documents tailor-made to your specific transaction. DCS can also work with your legal counsel to guide and advise on the crafting of binding and definitive agreements. 3. Corporate Training - Joe Dillon personally develops and delivers customized training in the areas of Business Development, Product valuations, Deal structuring, Negotiation, Term sheet terms and structuring for non- attorneys. The courses can be delivered virtually (live or recorded) or in person. Duration and scheduling of the course can be customised from one day to multiple days. There is no upper or lower limit on number of participants, although courses with a mock negotiation are best with 8 to 60 participants. 4. DCS Opportunity Valuation and Gaming Model^© -  This is the flag ship of the DCS product line. This model was designed by DCS to value biopharma and medical assets and to structure deals, such as in or out licensing. This model is available for license. We provide various time spans for the license and offer it for single users, sites or full company use. See below for more information on this model.

DCS Opportunity Valuation and Gaming

Model©

The DCS Opportunity Valuation and Gaming Model is a Microsoft Excel workbook that provides a powerful, yet easy to use tool to forecast product cash flow and to value products and deals. The model’s color-coded entry cells and “unbreakable” model structure and formulas make it easy to do valuations even with basic Excel skills. The base model does not contain any macros, file references or other functions that can cause issues with file sharing or your company’s IT policies. Below are some of the features and functions of the model: Product Valuation – Risk-adjusted valuation using the Income Method (aka: NPV or DCF) • Regions – Four separate regions/counties (US, Europe, Japan and user-defined region) • Indications – Three indications per product, each with a 20 year forecast horizon Deal Valuation – Inputs for both partners in a deal (buyer/seller) with separate valuations and deal share calculations Deal Structuring and Terms – Input the following deal terms for each region/country: • Royalty – single rate, 2-3 tiers and/or step-down options, as well as manual override • Milestones – up to 200 milestones, including commercial milestones based on revenue goals • License Fees – up to 200 capitalized fees/milestones • Revenue Sharing – allocate regional revenue between the partners by any percentage • Expense and R&D Cost Sharing and Subsidies – assign costs by partner • Transfer Price Profit – recognizes that one partner may be taking a margin on sale of materials to the other • Third Party Cash Flows - allows inclusion of a third party, whether associated with the sell side or the buy side, which may receive royalties or other payments as a result of the deal Customization – Multiple places in the model to input custom formulas to simulate special deal terms Risk Adjusting – Determine probability of success and risk- adjusted deal share based on development risk by year and by region Revenue and Cost of Goods Forecast – Inputs for annual unit sales, price and cost, by indication and region/country Expenses and Capital Investment Forecast – Inputs for sales & marketing, capital, and other expenses by year and by partner R&D Spend Forecast – Inputs for R&D spending by year and by partner Sensitivity and Scenario Analysis – Run “one-click” scenarios using the Scenario Multiples factors for revenue, cost of goods, sales & marketing expenses, research and development costs, and other expenses Help Features – Click on critical variables to get hints on how to handle certain inputs. Corporate Network Friendly – No external references or macros to cause loading , sharing or security issues