Biopharmaceutical Industry has Bright Future, Industry Leaders Assert; Mayfield Fund and Wilson Sonsini Goodrich & Rosati Annual Conference Explores Issues Facing Industry Today.

REDWOOD SHORES, Calif.--(BUSINESS WIRE)--Feb. 8, 1999--While acknowledging that this is a difficult time for the biopharmaceutical sector, industry executives attending a conference on the state of the biopharmaceutical industry agreed that the long-term prospects for the industry remain strong.

"I believe that the struggles being experienced by some in the industry are the natural result of the creative process. The industry will come out of this period stronger and better positioned to develop and commercialize the health care breakthroughs of tomorrow," said A. Grant Heidrich, a general partner of Mayfield Fund.

J. Casey McGlynn, Chairman of the Life Sciences Group of Wilson Sonsini Goodrich & Rosati (WSGR), added, "The need for health care innovation is alive and well. It is obvious that small biopharmaceutical companies generate many of the exciting ideas that will define the future of health care. I remain very optimistic about the long-term prospects for the industry."

The conference, "Financing the Biopharmaceutical Company," sponsored by Mayfield Fund and WSGR, drew 300 participants, including senior executives of biopharmaceutical companies, as well as venture capitalists, attorneys and consultants to the industry. The conference was held at the Hotel Sofitel on February 4, 1999 at the Hotel Sofitel in Redwood City, California.

Edward E. Penhoet, Ph.D., director and co-founder of Chiron Corporation, opened the conference as keynote speaker. Penhoet told the audience that the industry has largely delivered on its initial promise, which was to identify prime targets for genetic engineering and prove that they could be commercialized. Looking ahead, Penhoet added, "The future for biopharmaceuticals is very positive. Consumers are going to be more of a factor in driving their health care, because of the information they download from the Internet."

During the day-long conference, attendees took part in lively sessions on a variety of topics related to financing biopharmaceutical companies. Trends in mergers and acquisitions were discussed, and participants explored the pros and cons of industry consolidation.

Participants also debated such subjects as private financing, cross-border dealmaking, joint ventures and collaborations, and spinoffs.

Other well-known conference speakers included Dr. Stelios Papadopoulos of PaineWebber; Frederick Frank of Lehman Brothers; Steve Holtzman of Millennium Pharmaceuticals; Jon Duane of McKinsey & Co.; and G. Steven Burrill of Burrill & Co.

About Mayfield Fund

Mayfield Fund is a private venture capital partnership based in Menlo Park, California. Since Mayfield's founding in 1969, the firm has invested in more than 300 companies and has taken approximately 80 companies public. Today, these Mayfield-backed companies represent an aggregate market value of more than $100 billion. Mayfield's portfolio includes biopharmaceutical and healthcare companies such as Genentech, Inc.; Megabios Corporation; Millennium Pharmaceuticals, Inc.; Mitotix, Inc.; Sunesis Pharmaceutical, Inc.; and Tularik, Inc., as well as information technology companies such as Aspect Telecommunications; Citrix Systems; Concur; LSI Logic; Legato Systems, Inc.; NuvoMedia, Quantum Corp.; 3COM Corp; and The Vantive Corp.

About WSGR

Based in Palo Alto, Wilson Sonsini Goodrich & Rosati (WSGR) specializes in representing high technology companies in all stages of growth. The Life Sciences Group includes medical devices and equipment, instrumentation, pharmaceuticals, biotechnology and health care services. The firm's more than 525 lawyers regularly advise more than 300 public companies and 3,000 emerging growth companies, as well as the venture capital firms and investment banks that support them.