Brocair Participates in Life Sciences Panel at the German Consulate

Innovative Solutions to Challenges in Life Sciences Panel, October 7, 2009

Brocair Partners LLC, an investment banking firm serving the healthcare industry, yesterday participated in a panel at the networking event "Innovative Solutions to Challenges in Life Sciences", hosted by the German Consulate General and the State of Hessen U.S. Office for Economic Development in New York.

Members of the panel also included Dr. Christian Garbe, Managing Director of FIZ Frankfurt Biotechnology Innovation Center GmbH (FIZ); Dr. Scott Lauder, Global Head of Protein & Cell Sciences at EMD Serono, Inc. (a subsidiary of Merck KGaA); and Christian Scheiner, who represents the German Society for Regenerative Medicine e.V. in New York.

The event included the signing of "Memorandum of Understanding" between Dr. Nathan Tinker, Executive Director of New York Biotechnology Association, Inc. (NYBA), and Dr. Christian Garbe of FIZ to promote international business in biotechnology and to encourage companies to collaborate on joint projects.

Gregg Blake, Managing Director at Brocair Partners explained, "I think the panel was able to offer the audience an insight on new developments in the area of life science research as well as innovative ways to exchange ideas. An example of the successful business model of FIZ to cluster businesses under "one roof" and to provide them with ideal conditions for research and development was greatly admired by the audience. The discussions on global approaches to business development and corporate finance were very well received as well; the points addressed included advantages to cross-border acquisition and strategic sale opportunities, licensing and distribution opportunities, as well as opportunities to look for capital from overseas investors."

"It was a great opportunity to learn about the challenges companies face in biotechnology sector internationally and to encourage cross-border M&A transactions for strategic business development and greater synergies. It was a terrific venue to share those ideas with people representing various sectors."

Overview of the Hospice Care Market, October 2009

Hospice is a special concept of care designed to provide comfort and support to patients in the final phase of a terminal illness and to focus on comfort and quality of life, rather than cure. In 2007, an estimated 1.4 million patients received services in approximately 4,700 hospice care facilities across the U.S.

The U.S. market for hospice care totaled more than $13.7 billion in 2007 and is still growing due to rising patient utilization as well as annual price increases. It is projected that by 2012, total U.S. hospice revenues will exceed $23.3 billion. Currently, the U.S. hospice market is extremely fragmented, where some of the agencies focus exclusively on hospice care, while other nursing and home-care companies include hospice programs as part of their diverse operations.

In 2007, the average length of hospice service was 59.8 days and the average cost per patient totaled about $9,200. The sources of payments for hospice care include Medicare and Medicaid benefits, private insurance and self-pay. In 2007, the percentage of patients covered by Medicare and Medicaid was 83.6% and 5.0% respectively, indicating that the market is highly dependent upon government regulations and the level of participation in these programs.