venBio Select

Fund Ltd.

Fund Investment Objectives

The Fund's objective is to achieve attractive returns with moderate risk by investing primarily in the equity, debt and associated derivatives of corporations operating in the life sciences sector and related industries. The Investment Manager anticipates that the primary emphasis will be on companies engaged in biotechnology and pharmaceuticals and to lesser extent medical devices and instruments, healthcare services and healthcare information technology, although the Fund will also seek to identify opportunities in industries related to the foregoing activities, such as organizations and institutions that devote the majority of their efforts in the various stages of research, development, technology transfer and commercialization. The Fund generally expects to employ a hedged strategy by taking both long and short positions, and will normally retain net exposures between -20% and +90%. Gross exposures will range from 60% to 175%. The number of positions within the portfolio will normally be between 25 and 50, with the majority being long positions. It is expected that over 80% of the positions will be U.S. domiciled companies. The majority of the Fund is expected to be invested in small cap (<$1B in market cap) stocks with sufficient liquidity to trade in and out of the position with minimal impact to price performance. The Fund is not expected to be highly correlated with the broader market due to its sector specific mandate.