Big 3 Breakfast Presentation

PRODUCED BY

PRODUCED BY

ERIC GOLDSTEIN King of Prussia District Executive Director

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APPI energy

DENNIS LAVASSEUR Bryn Mawr Insurance Advisors SVP & Sales Manager

TOM MCGRATH Philadelphia magazine Editor

ELIZABETH SMITH SEPTA Director of Strategic Planning & Analysis

KOP Rail

KOP BID Big 3 Breakfast September 19, 2019

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Project Background King of Prussia not currently served by rail

Off the grid!

•  Served by 6 bus routes with high ridership, but low on-time performance and long trip times

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Locally Preferred Alternative (LPA)

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Locally Preferred Alternative (LPA)

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Promotes and Strengthens Regional Growth 60,000 jobs

75,000 jobs

292,000 jobs

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Promotes and Strengthens Regional Growth

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Convenient and Reliable Way to Connect People to Opportunities • Alternative to Schuylkill Expressway and congested local roads • Quick and convenient reverse commute • Reduces current commute times by 30 minutes each way

Six bus routes

Lower rate of licensed drivers

5,600 riders 65% on-time

NHSL

99% on-time No Schuylkill traffic

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Essential to Support Evolving Needs • Responds to growing mobility needs of millennials, seniors, and persons with disabilities • Strategically directs existing and future growth

TOD Potential KOP Rail

KOP Mall

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Project Schedule We are Here

2013

2018

Alternatives Analysis/DEIS

October 2017 September 2019

2020

FEIS/ROD & Preliminary Design

Final Design & Construction

Operation

COMPLETE Alternatives Analysis/DEIS In-Progress 15% Engineering

2020

In-Progress Final Environmental Impact Statement

2020

In-Progress Draft 20-Year Financial Plan Pending

Final Design & Construction 17

Design Progress – Mall Blvd. Station Locally Preferred Alternative (LPA)

Hyatt House

Atrium

Mall Blvd. Station

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Design Progress – Mall Blvd. Station Locally Preferred Alternative (LPA) 15% Design Progress

Hyatt House

Mall Blvd. Station

Atrium

Mall Blvd. Station

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Design Progress – Mall Blvd. Station 15% Design Refinements

Mall Blvd. Station

Mall Blvd. Station • Streamlined track alignment • Station better serves surrounding properties and provides more opportunity for redevelopment

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20-Year Financial Plan 20-year Financial Plan & Cash Flow Statement Operating Budget (Five-Year)

Capital Budget

Draft Complete Base Model (20-Year)

(12-Year)

Evaluate Potential Funding Sources

• Following FTA’s Guidance for Transit Financial Plans • Draft to be complete in 2020 21

Return on Investment – KOP Rail Commercial Property Value Anticipated development in King of Prussia generates $260 million in additional commercial property value

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Return on Investment – KOP Rail

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Return on Investment – KOP Rail

$2.5 billion total property value premium 24

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ADRIAN PONSEN CoStar Director of Market Analytics for Philadelphia

King of Prussia Apartment Market Adrian Ponsen, Director of Market Analytics - Philadelphia

CoStar Group Top Public Platforms For Searching & Advertising CRE

700 Million+ Visitors Per Year

Massive Investment In Research & Technology

1,850 Researchers 240 Field Research Vehicles 200 Certified Drone Pilots 1 Airplane

World’s Most Granular CRE Database

5 Million+ Properties 3.9 Million+ Sales Comps 6 Million+ Tenants 560,000+ Available Spaces

Trends in KOP Apartment Development: • Long Under Supplied In High End Apartments • Developers Have Taken A Unique Approach With Focus On Mixed Use/Pedestrian Friendly Amenities • Newly Delivered Apartment Projects Outperforming Broader Philadelphia Market

1954: PA Turnpike & I-80 South

KOP Commercial Real Estate: A Visual History 1960s

1970s

1980s & 90s Source: CoStar

Commercial Inventory (Million Square Feet) King of Prussia

30

Philadelphia County 200

25 160

20

120

15

80

10 5

40

0

0

Source: CoStar

Office

Retail

Industrial/Flex

Multifamily

Source: CoStar

Source: CoStar

Source: CoStar

You Are Here

Source: CoStar

Office Space Per Apartment Unit in 2014 3,500

Square Feet Of Occupied Office Space Per Apartment Unit Within 2-Mile Radius

3,000 2,500 2,000 1,500

1,000 500 0

Montgomery Mall

Source: CoStar

Concord Mall

Bala Cynwyd Shopping Center

Cherry Hill Exton Neshaminy Willow Mall Square Mall Mall Grove Mall

King of Prussia Mall

Plymouth Meeting Mall

Almost 2,000 Units Delivered in KOP Since 2014

Almost 2,000 Units Delivered in KOP Since 2014

The Village At Valley Forge: Before

The Village At Valley Forge: After

KOP Outpacing Center City In Lease-up 25 20

Average Move-Ins Per Month During Leaseup For Multifamily Projects Delivered 2017-18

19.4 16.7

16.4

15.9

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14.1 11.2

10 5 0 King of Prussia Source: CoStar

Market East

Logan Square/ Art Museum

North Broad

Old City

Main Line

Free Rent Discounts Also Less Common in KOP 30%

% Of Available Units Offering At Least 1 Month Free Rent (Past 24 Months)

20%

10%

0% North Broad

Art Museum/ Fairmount

Analysis only includes properties built after 2010 Source: CoStar

Main Line

Center City

King Of Prussia

Rents Rising Among Most New Projects 2,000

Average Asking Rent (1 Bedroom Units)

1,900 1,800 1,700 1,600 1,500 1,400 AVE King of Prussia

Hanover King of Prussia

Time of Project Completion Source: CoStar

Indigo 301

August 2019

Park Square

The Smith at Valley Forge

Office Space Per Apartment Unit in 2019 3,500

Square Feet Of Occupied Office Space Per Apartment Unit Within 2-Mile Radius

3,000 2,500 2,000 1,500

1,000 500 0

Montgomery Mall

Concord Mall

Exton Square Mall

Includes apartment properties under construction Source: CoStar

Bala Cynwyd Shopping Center

Neshaminy Cherry Hill Mall Mall

Willow King of Plymouth Grove Mall Prussia Mall Meeting Mall

Adrian Ponsen Director of Market Analytics - Philadelphia aponsen@costar.com 215-309-8971

These CoStar Market Analytics materials contain financial and other information from a variety of public and proprietary sources. CoStar Group, Inc. and its affiliates (collectively, “CoStar”) have assumed and relied upon, without independent verification, the accuracy and completeness of such third party information in preparing these materials.

The modeling, calculations, forecasts, projections, evaluations, analyses, simulations, or other forward-looking information prepared by CoStar and presented herein (the “Materials”) are based on various assumptions concerning future events and circumstances, which are speculative, uncertain and subject to change without notice. You should not rely upon the Materials as predictions of future results or events, as actual results and events may differ materially. All Materials speak only as of the date referenced with respect to such data and may have materially changed since such date. CoStar has no obligation to update any of the Materials included in this document. You should not construe any of the data provided herein as investment, tax, accounting or legal advice.

CoStar does not represent, warrant or guaranty the accuracy or completeness of the information provided herein and shall not be held responsible for any errors in such information. Any user of the information provided herein accepts the information “AS IS” without any warranties whatsoever. To the maximum extent permitted by law, CoStar disclaims any and all liability in the event any information provided herein proves to be inaccurate, incomplete or unreliable. © 2019 CoStar Realty Information, Inc. No reproduction or distribution without permission.

BRIAN O’NEILL MLP Ventures Founder, Chairman & CEO

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Our Mission Eliminate the barriers between patients and the cures they so desperately need through seamless access to cell and gene therapies

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What people think of as the moment of discovery is really the discovery of the question.

– Jonas Salk 50

Gene and Cell Therapy Manufacturing Industry Observations

• The average life of a terminally ill patient is 6 months and the average wait for viral vectors is over a year

• The market is substantially supply constrained

• Most current players are generally small scale and fail to center on the customer • There is a lack of integration, organized expertise and capabilities in the fastest growing area of healthcare

• Must be a focus for any company interested in being a leader in biologics • Essential to offer a full end to end offering • Essential to drug developers as they scale and make either the build, buy or rent decision

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We Are Entering a Therapeutic Revolution

By 2020, US Food and Drug Administration (FDA) officials have said they expect to receive upwards of 200 INDs for cell and gene therapies each year, adding to the 800 active INDs for such products already filed with the agency. By 2025, they predict the agency will be approving between 10 and 20 cell and gene therapy products annually.

Alliance for Regenerative Medicine Q2 2019 Report. http://alliancerm.org/wp-content/uploads/2019/07/ARM_Q2_2019_Web_FINAL.pdf

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Capital is Pouring into Life Sciences and Advanced Therapeutics •

Last year in the United States, $23 billion in capital was invested in 1,300 life sciences companies

•

$173 billion in biopharma M&A occurred during the first half 2019

•

There has been nearly a 50% increase in VC and NIH Funding over the past 5 years

•

Outsized manufacturing demand is being driven by the exponential growth in VC for advanced therapies which grew from $1.4 billion in 2017 to $3.6 billion in 2019 (annualized).

Advanced Therapies Venture Capital Volume

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However, a Major Backlog in CDMO Capacity • The wait times for CDMOs to start projects now average ≥1.5 years, and are only increasing, with insufficient

CDMOs with technical competence entering the field. Further, new dedicated facilities have yet to be constructed.

• The current shortfall in worldwide cell/gene therapy manufacturing capacity may be greater than 5× current

capacity (based on cumulative bioreactor volumetric capacity).

• Within five years, when current pipeline products reach clinical scale, unless significant changes occur, the

required platforms and capacity will not be there.

• The Discovery Labs is planning over 600,000 square feet of multi-suite plasmid, lentiviral vector, adeno-

associated vector, and CGMP manufacturing capacity to custom produce for clients in its King of Prussia facility.

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Subscale and Incomplete Competitor Set

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An Advantage Creating Partnership to Take The Market

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Extensive expertise in building real estate based healthcare organizations and in real estate acquisitions and development

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Network and history with the brightest architects and engineers

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1.6 million square feet of life sciences space occupied by the world’s leading companies

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World class management team

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3 million square feet of identified CDMO pipeline

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600,000 square feet of CDMO space under development with 600,000 square feet for expansion

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Leader in healthcare investment with almost $10bn under management

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Network of 12 academic partnerships with $2bn of committed capital to seed the gene and cell therapy companies of tomorrow

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130-person team of field and subject matter experts providing an unmatched perspective on the probabilistic potential of biological innovations

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Deep pockets to enable The Discovery Labs to disrupt the space

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Commitment to manufacturing space for its portfolio companies

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Introducing the Discovery Labs

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The Discovery Labs The Discovery Labs is a global company bringing together and serving healthcare, life sciences and tech-enabled companies who change the world we live in by discovering and creating lifesaving, life changing and life enhancing products.

We have reimagined the workspace and deliver collaborative, innovative, infrastructure-supported, turnkey lab, CGMP manufacturing and oďŹƒce workspaces for healthcare, life sciences and techenabled companies.

We are building the largest cell and gene CDMO in the world in King of Prussia We manufacture and supply critical products including plasmids, adeno-associated viral 4s and lentiviral vectors.

We provide CDMO services for the cell and gene world.

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A place where change for the better happens every day

The Discovery Labs is Rolling Out a Global Platform The Discovery Labs initial portfolio includes 1.6 million square feet on 260 acres housed in 27 buildings.

" "

Innovation at Renaissance is 640,000 square feet on 60 acres in 14 buildings on Renaissance Boulevard and Horizon Drive, King of Prussia, PA. The Discovery Labs King of Prussia is 1,000,000 square feet on 200 acres in 12 inner-connected buildings that are supported by a central utility plant on 411 Swedeland Road, King of Prussia, PA.

The Discovery Labs Custom Build Offering includes over 3 million square feet of fully-zoned, infrastructure-in-place build-to-suits in King of Prussia, PA. Our Robust Property Pipeline includes 6 centers for therapeutic break-thru and over a dozen identified targets in the US, Ireland and England in high-demand life sciences clusters.

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Our 600,000 Square Foot GMP Cell and Gene Therapy Manufacturing operation is the largest in the world and is being constructed that includes multiple suites for advanced therapeutics manufacturing including adeno-associated viral vectors, lentiviral vectors, plasmids and products in King of Prussia, PA. We are identifying sites globally to expand that capability.

The Discovery Labs Offers a Full Range of Products We are solving for the pain points in the path to commercialization so that start-up to enterprise level companies can focus on creating lifesaving products. We provide the following full range of products:

•

Turnkey office and lab space with capacity to grow in place - Chemistry Labs - Biology Labs - Infrastructure-supported, second-generation, pharma-quality labs - CGMP labs - Brand new flex labs

•

High-tech, millennial-centric Coworking and Incubator Space

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Specialty, client-specific build-to-suits in global locations - Acquisition and retrofit of existing buildings - Ground-up development - Acquisitions of life science and pharma sites to be repositioned to offer services and products to clients

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Mission critical products including lentiviral vectors, adeno-associated viral vectors and plasmids

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CGMP production suites manufacturing adeno-associated viruses, lentiviruses and plasmids

•

Customized, made-to-order viral vector manufacturing facilities ranging from a shell to a production-ready facility offering speed to market

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The Discovery Labs Offers Life Science Coworking and Incubator Space ● Discovery Labs is the first company to offer large scale co-working space to the life science industry

● Our average facility size is nearly 10x the size of our competitor set ● Our space stimulates connection to enhance collaboration ● Our space offering ranges from a bench to a building and everything in-between

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The Discovery Labs Incubator – Unite IQ ● 23% of life science startups that raised at least $4 million in 2017 and 2018 worked with an accelerator or incubator

● 33% of all startups with Series A funding go through an accelerator or incubator ● Unite IQ, The Discovery Labs incubator, provides the setting and ecosystem to accelerate the translation of technologies from idea to commercialization

● Unite IQ provides lab space, infrastructure, equipment, supplies and support services so that startups can more efficiently deploy capital and resources

● To enhance our ecosystem, Unite IQ and The Discovery Labs partner with companies that have deep expertise in the support, translation and commercialization of life sciences technologies - PA Biotech and the Blumberg Institute - Vivarium Operators - Architect, Consulting and Engineering Firms - On-site helipad for transportation of specimens and samples 20

The Discovery Labs • Optimized to remove the bottlenecks in the path to commercialization by providing key services through all stages in a product’s life cycle

• Our planned 600,000 square foot CGMP cell and gene therapy manufacturing facility is being

constructed with multiple suites for advanced therapeutics manufacturing of all vectors, plasmids and cellular therapy products

• We will directly supply plasmids, viral vectors and cell and gene therapy products as well as operate and lease to third-parties

• Our location pipeline includes over a dozen identified targets in the US, Europe and Asia, specifically in high-demand life sciences clusters

• We are assembling a world-class, high-brand management team with extensive cell and gene therapy manufacturing experience capable of executing perfection at scale

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Advanced Therapeutics Manufacturing Development Our 600,000 square foot facility for advanced therapeutics manufacturing for gene and cell

therapies includes:

• 36 suites for advanced cell therapy manufacturing such as CAR T, CAR NK, TCRs, TILs, iPSCs, etc.

• 19 Viral Vector suites • 3 Plasmid suites • 20 testing, process development and cell banking suites

Suites will have a Universal, Modular, and Flexible Design in order to be adaptable for demand variations, platform differences and technology disruptors including mRNA, electroporation, cell squeezing, piggyBac, allogenic and non-viral vectors.

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The Discovery Labs Gene and Cell Therapy Manufacturing Plan Campus Map

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B21 Viral Vector Facility – Typical Floorplan

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B21 Viral Vector Facility – Typical Floorplan

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B30 CAR-T Facility – Typical Floorplan Analytics & Kitting Space (1 of 2 per Floor) 2 Patient Suite

Grade B (1 of 8 per floor)

•

•

2 T-Cell Processing Units per Suite + Harvest + Filling Adjacent CRF’s

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B30 CAR-T Facility – Typical Floorplan People/Material Out Unidirectional Flows

People/Material In

Optional Bidirectional or Unidirectional Flows

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The Central Utility Plant

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Products and Services • • • • • • • • • • •

production Plasmid Lentiviral and AAV vector production

Cell and gene therapy product manufacturing Custom media optimization, production, sourcing, and testing Process and analytical method development and qualification Large-scale and small-scale closed-system manufacturing and process development and validation Technology transfer of client’s mammalian and insect cell production platforms Downstream process development with chromatographic and filtration-based separation methods Full-range of production platforms including flat stock, iCELLis, 50L-2000L single-use bioreactors, etc.

Drug product fill and finish Global quality compliance and regulatory support

• • • • • • • • • • • • • • • • • • • • • • • •

Process Development Cell Line Development GMP Cell Bank Manufacture / Characterization Assay Development, Qualification, and Validation Cell Culture Process Development Purification Process Development Formulation Development Protein Characterization Drug Substance Manufacture Drug Product Formulation and Fill Biosafety Testing (e.g., Viral Clearance) GMP Lot Release Testing Stability Studies Regulatory Support In-Life and Toxicology Studies Discovery Biology Bioanalytical Testing Companion Diagnostic Development Genomics / Genome Sequencing ADME / DMPK Pharmacology / Safety Pharmacology Biosafety Assessment of Raw Materials Extractables & Leachables Testing Sterility Assurance Programs for Products & Facilities 73

One Stop Shop for Ease of FDA Interface • End-to-end view of drug master file and chain of custody under one roof

• Unified quality systems and training in place to ensure FDA readiness from pre-clinical R&D through commercialization

• Unbiased internal SOP examination

• Plans to identify, evaluate, and mitigate compliance risks

• Maintain communication, roles and responsibilities with customers and partners throughout queries and inspections

• Maintain training and documentation to demonstrate competency and readiness

• Maintain a secure and efficient filing system • Post inspection review, consultation, and response 74

Unique and Compelling Sales Process with Sticky Customers Business Development Team • 10 representatives supported by a team of technical experts and strategic integrators who can both MAKE and DELIVER to customer specifications • SEO and SEM activated website and marketing platform

Sales Process • Routine and systematic identification of business partnerships and market trends leading to initial contacts • Qualifying a potential business partner by comparing a high level needs assessment against our core competences and acceptable benchmarks • Generate consideration for our service offerings via on-site meetings to show off the technical capabilities and work environment • Thorough technical and financial review of RFP and timely submission to clients • Execution of agreement

Drivers of Repeat Business • Meeting client timelines • Meeting client needs • Clear demonstration of technical capabilities • Process development for successful scale up and scale out 75

The Discovery Labs Value Proposition • Integrated preclinical to commercial production • Flexible partnerships • Process development for scale up and scale out • Plasmid and viral vector production • State-of-the-art facilities with dedicated GMP suites for drug production and fill finish • Industry experienced personnel and dedicated project management team • Comprehensive quality system • CMC and DMF documentation support as well as regulatory assistance and support • Necessary space capacity (Suites/Labs/Equipment/Personnel) • Integrated IT and project management systems

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SITE PLAN

200 ACRE WORLD-CLASS CORPORATE CAMPUS

PENTHOUSES & ROOFTOPS

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201 KING OF PRUSSIA RD | SUITE 501 RADNOR, PENNSYLVANIA 19087 TEL: 610-239-6100 | FAX: 610-337-5599

BRIAN O’NEILL | 610-992-5860 BONEILL@MLPVENTURES.COM

AUDREY GREENBERG| 484-240-5999 AGREENBERG@THEDISCOVERYLABS.COM

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THIS DOCUMENT IS THE PROPERTY OF THE DISCOVERY LABS, LLC AND/OR ITS AFFILIATES (COLLECTIVELY, “DISCOVERY LABS”) AND IT AND THE INFORMATION IN IT ARE PROVIDED TO CHARLES RIVER LABORATORIES, INC. (“COMPANY”) IN CONFIDENCE PURSUANT TO AND SUBJECT TO THE TERMS OF THE MUTUAL CONFIDENTIALITY AGREEMENT DATED AUGUST 13, 2019 (THE “AGREEMENT”) BETWEEN DISCOVERY LABS AND COMPANY, AND MAY NOT BE DISCLOSED TO ANY THIRD PARTY OR USED FOR ANY PURPOSE OTHER THAN AS SET FORTH IN THE AGREEMENT WITHOUT THE EXPRESS WRITTEN CONSENT OF DISCOVERY LABS.

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