EFTA Document EFTA01461474

Nasdaq Biotech Index (NBI) dropped 4.4% Friday Sharpest decline since Oct-11 • Triggered by a letter from congressional representatives to a biotech company Gilead Sciences, questioning its plans to sell a hepatitis C drug (named Sovaldi) for 584,000 per dose Gilead required to give briefing by 03-Apr • Sovaldi expected to generate >S4bn in sales this year The drug's expense might saddle state Medicaid programs with steep Costs The whole sector is as risk us is the only major health-care market remaining without any meaningful drug price controls Risk for the whole sector once the Congress gets involved, especially if focused primarily on pricing The biggest NBI firms sold-off significantly (Embedded image moved to file: pic24269.gif) ways to hedge exposure to the US biotech sector Proshares ultrashort Nasdaq Biotech Fund (8I5 us Equity): designed to be 2x short the N81 Options on isharesNasdaq Biotech ETF (IBS US Equity) NBI - last 5 years (Embedded image moved to file: pic27759.gif) NBI vs S&P500 - last 1 year (Embedded image moved to file: pic32626.gif) NBI - last 1 year (Embedded image moved to file: pic31712.gif) KCP Capital Markets This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and destroy this e-mail. Any unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. (Embedded image moved to file: pic27299.gif) Tazia smith Director I Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset & wealth Management 345 Park Avenue, 26th Floor New York. NY 10154 Tel. Fax mobi Email (Embedded image moved to file: pic09443.gif) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0123546 CONFIDENTIAL SDNY_GM_00269730 EFTA01461474