From Research to Revenue IV: Capturing Business Opportunities in Asia

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Information about From Research to Revenue IV: Capturing Business Opportunities in Asia
Business & Mgmt

Published on December 5, 2008

Author: GHBN

Source: slideshare.net

Description

A full collection of the presentations made Wednesday, December 3, 2008 at Mississauga Living Arts Centre for From Research to Revenue IV: Capturing Business Opportunities in Asia.

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

THANKS TO OUR SUPPORTERS

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia Outsourcing in Asia Madhav Murti, PricewaterhouseCoopers LLP

The changing dynamics of pharma outsourcing in Asia: Are you readjusting your sights?

Introduction PwC Global Sourcing Advisory

Agenda 1. Introduction 2. Strategic context of outsourcing and location decisions in Asia 3. Moving up the value chain: the changing nature of pharma outsourcing in Asia 4. Evaluating the landscape: the location context for outsourcing decisions 5. Looking ahead

Strategic context of outsourcing and location decisions in Asia

Cluster One – Pharma Revenue Constraints Patent expiry In 2006 > 90% of Big Pharma’s total revenues were from medicines that had been on the market > 5 years. Expiry of patents related to many of these products could result in significant erosion of revenues (estimated around $157 billion) Need for R&D productivity The industry has invested twice as much in R&D in 2006 as it was a decade earlier but only producing two – fifths of the medicines it then produced Pricing Pressures in healthcare markets Quest for improved margins and growth 1

Patent expiry

In 2006 > 90% of Big Pharma’s total revenues were from medicines that had been on the market > 5 years. Expiry of patents related to many of these products could result in significant erosion of revenues (estimated around $157 billion)

Need for R&D productivity

The industry has invested twice as much in R&D in 2006 as it was a decade earlier but only producing two – fifths of the medicines it then produced

Pricing Pressures in healthcare markets

Quest for improved margins and growth

Cluster Two – Asia growth focus Growth in Asian pharma markets China and India pharma markets are experiencing annual growth of 10 -15% and are expected to grow to about 150% and 90% respectively of US market Growth in Asian pharma manufacturing capability Asian Contract Manufacturing Organizations (CMO) are expected to account for about 15% of the total CMO market by 2010. Rapid maturity with increase in FDA approvals and GMP certification Attractive cost arbitrage on manufacturing operations Growth in Asian Scientific Resource Base and Capabilities Growth in Patient Pool Asia accounts for > 60% of the world’s population Vast clinical trial pool offers significant cost savings as well as reduction in patient enrolment time 2

Growth in Asian pharma markets

China and India pharma markets are experiencing annual growth of 10 -15% and are expected to grow to about 150% and 90% respectively of US market

Growth in Asian pharma manufacturing capability

Asian Contract Manufacturing Organizations (CMO) are expected to account for about 15% of the total CMO market by 2010.

Rapid maturity with increase in FDA approvals and GMP certification

Attractive cost arbitrage on manufacturing operations

Growth in Asian Scientific Resource Base and Capabilities

Growth in Patient Pool

Asia accounts for > 60% of the world’s population

Vast clinical trial pool offers significant cost savings as well as reduction in patient enrolment time

Cluster Three – East/West convergence/ divergence trends Intellectual Property & Legal Landscape Though much needs to be done, IP protection and rights are increasingly improving in certain Asian countries Clinical Trials and pharma regulation Regulatory delays and complexities can hinder the development of clinical trials East/West disease profiles On the one hand, variations in disease profiles due to differences in ethnic origin, diet and environmental factors, yet On the other, reduction in divergence due to urbanization and convergence of tastes and lifestyles between the East & West Escalation in Labour and other overhead costs 3

Intellectual Property & Legal Landscape

Though much needs to be done, IP protection and rights are increasingly improving in certain Asian countries

Clinical Trials and pharma regulation

Regulatory delays and complexities can hinder the development of clinical trials

East/West disease profiles

On the one hand, variations in disease profiles due to differences in ethnic origin, diet and environmental factors, yet

On the other, reduction in divergence due to urbanization and convergence of tastes and lifestyles between the East & West

Escalation in Labour and other overhead costs

Cluster Four – Technological/business model forces Need for more advanced/flexible manufacturing Development and evolution of new products will drive demands for newer technology and a more sophisticated manufacturing environment Closing the gap between R&D, manufacturing and patients Need and desire to close the gaps within the pharma value chain will impact the decisions on location and sourcing model options Blurring of assessment of Core vs Non Core activities Opportunity to tap into external skills to accelerate own capabilities will expand the scale and scope of what can be outsourced Third party models evolve rapidly to more collaborative ‘partnership’ focus Networked Business Models Pharma business model moving away from fully integrated operations to a networks of collaboration and discovery (Eli Lilly – FIPCO to FIPNET) 4

Need for more advanced/flexible manufacturing

Development and evolution of new products will drive demands for newer technology and a more sophisticated manufacturing environment

Closing the gap between R&D, manufacturing and patients

Need and desire to close the gaps within the pharma value chain will impact the decisions on location and sourcing model options

Blurring of assessment of Core vs Non Core activities

Opportunity to tap into external skills to accelerate own capabilities will expand the scale and scope of what can be outsourced

Third party models evolve rapidly to more collaborative ‘partnership’ focus

Networked Business Models

Pharma business model moving away from fully integrated operations to a networks of collaboration and discovery (Eli Lilly – FIPCO to FIPNET)

Moving up the value chain: the changing nature of pharma outsourcing in Asia The trend towards high end innovation: from late stage clinical trials and low cost manufacturing moving up the value chain: facilitated by the evolution in IP protection Risk based deals :Eli Lilly with Nicolas Piramal, Suven Pharma, Hutchinson MediPharma “ in-sourcing” (Eli Lilly, GSK, Astra Zeneca) researched-based partnerships between pharma companies (Merck- Advinus Therapeutics, Ranbaxy, Dr.Reddy’s)

Moving up the value chain: the changing nature of pharma outsourcing in Asia

The trend towards high end innovation:

from late stage clinical trials and low cost manufacturing

moving up the value chain: facilitated by the evolution in IP protection

Risk based deals :Eli Lilly with Nicolas Piramal, Suven Pharma, Hutchinson MediPharma

“ in-sourcing” (Eli Lilly, GSK, Astra Zeneca)

researched-based partnerships between pharma companies (Merck- Advinus Therapeutics, Ranbaxy, Dr.Reddy’s)

Moving up the value chain Rapid expansion of clinical trials in Asia India 2003: 40 – 50 clinical trials 2007: 270 clinical trials 2008: completed 737 clinical trials China 2008: completed 870 clinical trials Drivers: - cost - IPP improvement - “treatment naïve” patients - recruit more quickly from a smaller number of sites

Moving up the value chain

Rapid expansion of clinical trials in Asia

India 2003: 40 – 50 clinical trials

2007: 270 clinical trials

2008: completed 737 clinical trials

China 2008: completed 870 clinical trials

Drivers:

- cost

- IPP improvement

- “treatment naïve” patients

- recruit more quickly from a smaller number of sites

Moving up the value chain Manufacturing scales up • cost: India 50% cheaper than west • large pool of qualified talent to run manufacturing plants - India: > 100 FDA approved facilities - China: > source of APIs shipped globally > first FDA approved site for finished drug > increased effort of SFDA

Moving up the value chain Manufacturing scales up David Brennan, CEO AstraZeneca: “ all active pharmaceutical ingredients will be produced externally within a decade as part of the strategy of maximizing the efficiency of our supply chain while maintaining the highest possible standards of quality and security of supply.”* AstraZeneca plans to increase its outsourcing drastically from China and India. The firm has set up a dedicated sourcing centre in Shanghai. *Financial Times, 16 April 2008

Evaluating the landscape: the location context for outsourcing decisions

Evaluating the landscape: the location context for outsourcing decisions Outsourcing index – ranking of Asian territories across all factors

Evaluating the landscape: the location context for outsourcing decisions Cost ranking of Asian territories

Evaluating the landscape: the location context for outsourcing decisions Risk ranking of Asian territories

Evaluating the landscape: the location context for outsourcing decisions Market Opportunity ranking of Asian territories

Looking ahead China & India spearhead growth in Asian pharma Singapore will maintain position as centre for research and innovation China, India and Singapore remain hotspots with Korea and Taiwan becoming increasingly significant Outsourcing will continue to move up the value chain As pharma investments in Asia grow: high end drug discovery in Asia plays a more important role Insourcing preferred model for higher end activities, complemented by strategic partnerships No “one size fits all” => mixed approach

Looking ahead

China & India spearhead growth in Asian pharma

Singapore will maintain position as centre for research and innovation

China, India and Singapore remain hotspots with Korea and Taiwan becoming increasingly significant

Outsourcing will continue to move up the value chain

As pharma investments in Asia grow: high end drug discovery in Asia plays a more important role

Insourcing preferred model for higher end activities, complemented by strategic partnerships

No “one size fits all” => mixed approach

Looking ahead “ For us, China is not about outsourcing and cheap labour…It’s about different science…Within 5 to 10 years we will be moving from 'made in China’ to ‘discovered in China’” Moncef Slaoui Chairman of Research and Development, GlaxoSmithKline

Sourcing Decisions in times of uncertainty and turmoil Even in the best of times outsourcing solutions require careful planning and structuring to deliver full value. The temptation now is to move quickly to extract additional value. But, in the face of growing economic uncertainty and increasing market complexity, programmes demand a higher level of scrutiny and focus

Even in the best of times outsourcing solutions require careful planning and structuring to deliver full value. The temptation now is to move quickly to extract additional value.

But, in the face of growing economic uncertainty and increasing market complexity, programmes demand a higher level of scrutiny and focus

Source: Sourcing decisions during economic downturns, PwC Point of View Dec 2008 Key areas for consideration Buy Side Organizations look to downscale/ cancel current outsourcing commitments Buy Side Organizations look to rapidly reduce scale/cost of insourced commitments Market volatility continues (Currency fluctuations, Stock Price movements) Economic slowdown inhibits organizational ability to sustain growth & improvement initiatives Issue Service Providers faced with weak financial leverage due to excess capacity and high fixed cost levels Service Provider business model/ operational plans/ability at risk Captive Operations become attractive options for acquisitions Business Case strengthens for variabilizing fixed costs Currency hedging becomes a prominent part of deal structuring and economics Emergence of new attractive supply side locations due to weakening of local currencies and increased availability of resources Higher risk profile of Alternate Sourcing arrangements Potential Impact Opportunities/Challenges Buy Side Negotiation/Renegotiation of additional benefits ( incremental cost impact, leverage capacity etc.) Need for additional rigor in service provider evaluation/selection Potential to accelerate time to benefit Higher level of risk assessment on service provider business viability Sell Side Retention of resource bench in face of uncertain demand Negotiation/Renegotiation of deals to offset capacity and leverage issues Expansion of footprint into emerging supply side locations Consolidation of Service Providers Fig 1 – PwC Analysis

Service Providers faced with weak financial leverage due to excess capacity and high fixed cost levels

Service Provider business model/ operational plans/ability at risk

Captive Operations become attractive options for acquisitions

Business Case strengthens for variabilizing fixed costs

Currency hedging becomes a prominent part of deal structuring and economics

Emergence of new attractive supply side locations due to weakening of local currencies and increased availability of resources

Higher risk profile of Alternate Sourcing arrangements

Buy Side

Negotiation/Renegotiation of additional benefits ( incremental cost impact, leverage capacity etc.)

Need for additional rigor in service provider evaluation/selection

Potential to accelerate time to benefit

Higher level of risk assessment on service provider business viability

Sell Side

Retention of resource bench in face of uncertain demand

Negotiation/Renegotiation of deals to offset capacity and leverage issues

Expansion of footprint into emerging supply side locations

Consolidation of Service Providers

Current market conditions expose new opportunities to reap significant financial and non financial benefits from alternate sourcing arrangements even in the face of market turmoil. Organizations would be well served to explore these opportunities in their strategic context and develop appropriate sourcing strategies that consider both short and long-term implications. Increased market complexity and risk are clear concerns requiring careful consideration and sharp focus, but they should not stop organizations from taking action that could build business flexibility and accelerate competitive advantage on the up-side of an economic recovery. CONCLUSION Source: Sourcing decisions during economic downturns, PwC Point of View Dec 2008

Thank you The changing dynamics of pharma outsourcing in Asia: Are you readjusting your sights? Madhav Murti Vice President - Global Sourcing Advisory [email_address]

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia Analysis of Asian Markets Moderator: Gail Garland, Axela Inc. Sarah Frew, McLaughlin - Rotman Centre for Global Health Paul Stinson, CAPRA International Ron Choudhury, Aird & Berlis LLP Hadi Salah, Frost & Sullivan

Analysis of Asian Markets: Focus on India and China December 3, 2008 Hadi Salah [email_address]

APAC? Why should I care? Customer Base: 54% of the world’s population Unprecedented population growth Growing aging population Revenue Potential: 33% of the world’s GDP Increasing affluence Estimated $889.1 billion total healthcare market (2008)

Customer Base:

54% of the world’s population

Unprecedented population growth

Growing aging population

Revenue Potential:

33% of the world’s GDP

Increasing affluence

Estimated $889.1 billion total healthcare market (2008)

Key Healthcare Market Segments Healthcare Pharmaceuticals Biotechnology Medical devices Diagnostics Healthcare IT Patient care Clinical research Contract research/outsourcing

India: Economic Trends One of the fastest growing economies in the world Third largest economy in Asia, after Japan and China Growing at 7-10% per year (2004-2007), GDP expected to reach $1.45 billion by 2010 (CAGR of 13.1% from 2000-2010) Per capita income increasing (currently at $5) Inflation is stable at 3.8-4.6%

One of the fastest growing economies in the world

Third largest economy in Asia, after Japan and China

Growing at 7-10% per year (2004-2007), GDP expected to reach $1.45 billion by 2010 (CAGR of 13.1% from 2000-2010)

Per capita income increasing (currently at $5)

Inflation is stable at 3.8-4.6%

India: Pharmaceuticals Market Segment

India: Biotechnology Market Segment

Investment in India: Drivers and Restraints Restraints Drivers High Med Low Low Med High Low cost of production * Length of arrow indicates relative impact Low cost man power, strong scientific base and talent Low healthcare per capita spending Highly fragmented market Government incentives Entry of large global pharma firms Rural penetration potential Emerging APAC healthcare hubs

China: Economic Trends Fourth largest economy in the world, after the US, Japan, and Germany Annual growth rate estimated at 8% (2006-2010) Healthcare industry is seventh largest in the world High per capita healthcare spending relative to India ($20 vs $5), low relative to developed nations ($700 for US)

Fourth largest economy in the world, after the US, Japan, and Germany

Annual growth rate estimated at 8% (2006-2010)

Healthcare industry is seventh largest in the world

High per capita healthcare spending relative to India ($20 vs $5), low relative to developed nations ($700 for US)

China: Pharmaceuticals Market Segment

China: Biotechnology Market Segment

Investment in China: Drivers and Restraints Restraints Drivers High Med Low Low Med High Rapid economic growth, increased purchasing power * Length of arrow indicates relative impact Increasing private investment is driving innovation Lack of clarity and policies Inadequate legal enforcement Government incentives and increased investment Insufficient IP protection Rural penetration potential Weaker management training

Thank you Hadi Salah Industry Analyst Technical Insights Frost & Sullivan “ We accelerate growth”

Hadi Salah

Industry Analyst

Technical Insights

Frost & Sullivan

“ We accelerate growth”

The Indian and Chinese Health Biotech Industries: Competitors or Collaborators of Canadian Firms? December 3, 2008 Sarah E. Frew, Ph.D Sarah.frew@mrcglobal.org McLaughlin-Rotman Centre for Global Health Program on Ethics and Commercialization

McLaughlin-Rotman Centre For Global Health Based in MaRS 50 people International talent Over $50 Million raised for research Spin off company: FIO Corporation

Based in MaRS

50 people

International talent

Over $50 Million raised for research

Spin off company: FIO Corporation

Purpose : To explore how the domestic private sector in Developing Countries (DCs) can contribute to the development of health technologies that address local health needs. Cases include: India , China , Brazil, South Africa, Ghana, Tanzania, Rwanda Qualitative Research Methods : Semi-structured interviews with key informants Background documents Private Sector Development in Developing Countries: Innovative Firms

Purpose :

To explore how the domestic private sector in Developing Countries (DCs) can contribute to the development of health technologies that address local health needs.

Cases include: India , China , Brazil, South Africa, Ghana, Tanzania, Rwanda

Qualitative Research Methods :

Semi-structured interviews with key informants

Background documents

Purpose : To explore how the domestic private sector in Developing Countries (DCs) can contribute to the development of health technologies that address local health needs. Cases include: India , China , Brazil, South Africa, Ghana, Tanzania, Rwanda Qualitative Research Methods : Semi-structured interviews with key informants Background documents Private Sector Development in Developing Countries: Innovative Firms Objectives: 1. Survey core competencies 2. Explore how, when and why IDC SMEs form linkages 3. Assess capabilities in: human and financial R&D resources, manufacturing, intellectual property and regulatory affairs 4. Identify incentives for and barriers to addressing local health needs 5. Explore financial issues

Purpose :

To explore how the domestic private sector in Developing Countries (DCs) can contribute to the development of health technologies that address local health needs.

Cases include: India , China , Brazil, South Africa, Ghana, Tanzania, Rwanda

Qualitative Research Methods :

Semi-structured interviews with key informants

Background documents

Private Sector Development in Developing Countries Nat. Biotechnol. 25 (4), 403-417 (2007). Nat. Biotechnol. 26 (1), 37-53 (2008). Brazil: Nature Biotechnology 26 (6), 627-644 (2008).

India in Brief Population: 1.1 Billion (1.6B/2050) Leading causes of death Heart Disease Cerebraovascular Disease Infectious and parasitic Diseases (Diarrhoeal, TB, HIV/AIDS) Lower respiratory Diseases Biosciences and Engineering 700,000 Post-graduates 15,000 PhDs 15,000 scientists in Nat’l Res Labs 17,000 Medical Practitioners / yr. Total Biotech Market: US$2.2B (growing at 37%) Targets: $5B by 2010 10% global market by 2010 Total No. of biotech cos: >280 >75% less than 10yrs old. Growing 35-40% per year BioPharmaceutical market: US$1.04B Vaccines, therapeutics, diagnostics 53% Export 47% Domestic ~= $500M Domestic vaccine growing 38% Increasing Share of Global Contract Service Industry by 45 CROs 2005: $100-120 million, growing 20-25% / yr. Projected to reach $2 billion by 2010 by Frost & Sullivan. 35% of their business in drug discovery (synthetic chemistry) 65% in clinical trials arena

Population: 1.1 Billion (1.6B/2050)

Leading causes of death

Heart Disease

Cerebraovascular Disease

Infectious and parasitic Diseases (Diarrhoeal, TB, HIV/AIDS)

Lower respiratory Diseases

Biosciences and Engineering

700,000 Post-graduates

15,000 PhDs

15,000 scientists in Nat’l Res Labs

17,000 Medical Practitioners / yr.

Total Biotech Market: US$2.2B (growing at 37%)

Targets: $5B by 2010

10% global market by 2010

Total No. of biotech cos: >280

>75% less than 10yrs old.

Growing 35-40% per year

BioPharmaceutical market: US$1.04B

Vaccines, therapeutics, diagnostics

53% Export

47% Domestic ~= $500M

Domestic vaccine growing 38%

Increasing Share of Global Contract Service Industry by 45 CROs

2005: $100-120 million, growing 20-25% / yr.

Projected to reach $2 billion by 2010 by Frost & Sullivan.

35% of their business in drug discovery (synthetic chemistry)

65% in clinical trials arena

New Delhi Panacea Biotec Lifecare Innovations Mumbai / Pune Wockhardt Serum Institute of India Bharat Serums and Vaccines Reliance Life Sciences SIRO Clinpharm Nicholas Piramal Hyderabad Shantha Biotechnics Bharat Biotech International Indian Immunologicals Dr. Reddy’s Laboratories Transgene Biotech Biological E Bangalore Biocon Syngene Clinigene International Bhat Bio-Tech India Strand Genomics Avestha Gengraine Gangagen Case Studies of 21 Indian Firms Including 10 of Top 20 Indian Biotech Firms

Biocon Limited, Bangalore Financing North American SMEs Proprietary Fermentation Technologies PlaFractor Technology (2001 US Patent) Cost-effective process for statins, etc. Affordable products for domestic market Insugen™ (human recombinant insulin) for India’s 30 Million diabetics (6% adults) priced ~50% lower than imported product Expanding development capabilities and marketed products through subsidiaries and strategic alliances Syngene (w/ BMS, e.g.), Clinigene Biocon Biopharmaceuticals: JV w/CIMAB, Cuba for EGFR mAb in India Abraxis BioScience: GCSF and Abraxane JV w/ NeoPharma for Gulf countries Co-development partnerships Vaccinex, therapeutic antibodies Nobex (acquired in ‘05), filed PCT patent for oral insulin manufacturing process 2006 “ W e’ve actually not only helped (Nobex) to stay alive, but we’ve retained their jobs for their employees, we are funding their whole survival. … And here there is an Indian company helping to keep jobs in the US .” --Kiran Mazumdar-Shaw, CEO

Proprietary Fermentation Technologies

PlaFractor Technology (2001 US Patent)

Cost-effective process for statins, etc.

Affordable products for domestic market

Insugen™ (human recombinant insulin) for India’s 30 Million diabetics (6% adults) priced ~50% lower than imported product

Expanding development capabilities and marketed products through subsidiaries and strategic alliances

Syngene (w/ BMS, e.g.), Clinigene

Biocon Biopharmaceuticals: JV w/CIMAB, Cuba for EGFR mAb in India

Abraxis BioScience: GCSF and Abraxane

JV w/ NeoPharma for Gulf countries

Co-development partnerships

Vaccinex, therapeutic antibodies

Nobex (acquired in ‘05), filed PCT patent for oral insulin manufacturing process 2006

“ W e’ve actually not only helped (Nobex) to stay alive, but we’ve retained their jobs for their employees, we are funding their whole survival. … And here there is an Indian company helping to keep jobs in the US .” --Kiran Mazumdar-Shaw, CEO

China in Brief Population: 1.3 Billion (1.5B/2050) Leading causes of death Malignant neoplasms Cerebraovascular Disease Heart disease Respiratory Disease Human Resources & Infrastructure 400 Biotechnology-related colleges and research institutes 30,000 annual life sciences grads 64 specialized biotech parks Recruit international scientists Recruit R&D and biopharma centres Government support for Biotech Investment of $1.7B 2001-2005 Biotech market generated total revenue of $5.6 Billion in 2007 25% Annual Growth 92% market in Medical/healthcare Represents 15% of Asia-Pacific market Represents < 7% of global market Total No. of bio-pharmaceutical cos: ~ 250 - 350 companies 40% growth in last 5 years Approved BioPharmaceuticals 15 products approved 60 biologics in pipeline, including ~20 antibodies and ~10 vaccines

Population: 1.3 Billion (1.5B/2050)

Leading causes of death

Malignant neoplasms

Cerebraovascular Disease

Heart disease

Respiratory Disease

Human Resources & Infrastructure

400 Biotechnology-related colleges and research institutes

30,000 annual life sciences grads

64 specialized biotech parks

Recruit international scientists

Recruit R&D and biopharma centres

Government support for Biotech

Investment of $1.7B 2001-2005

Biotech market generated total revenue of $5.6 Billion in 2007

25% Annual Growth

92% market in Medical/healthcare

Represents 15% of Asia-Pacific market

Represents < 7% of global market

Total No. of bio-pharmaceutical cos:

~ 250 - 350 companies

40% growth in last 5 years

Approved BioPharmaceuticals

15 products approved

60 biologics in pipeline, including ~20 antibodies and ~10 vaccines

Case Studies of 22 Chinese Health Biotechnology Firms Changchun GeneScience Beijing Beijing Wantai Biol. Bio-Bridge Science CapitalBio China PKU Bioway Fusogen Pharma Sinocells Biotech. SinoGenoMax Sinovac Biotech Starvax Internat’l. Shenzhen Beike Biotech Shenzhen Chipscreen Biosciences Shenzhen SiBiono GeneTech Shanghai HD Biosciences Fudan-Yueda Bio-tech Shanghai Genomics Genon Bio-engineering Huaguan Biochip Sunway Biotech United Cell Biotech WuXi PharmaTech Xiamen Amoytop

WuXi PharmaTech, Shanghai Aiming to be a fully integrated service provider Contract Service Company Founded in 2001 by 4 “returnees” IPO on NYSE in Aug 2007 Capabilities include: lead generation and optimization, process research, GMP pilot manufacturing, bioanalytical services Aiming to move into: biology and bioanalytical services, preclinical toxicology, animal studies, formulations In 2008, Acquired AppTec Laboratory Services (US) for $151 Million Clients include: 19/20 top global pharmaceutical companies & 8/10 top global biopharmaceutical companies. Compete on cost, operations, and IP protection Dr. Ge Li, Chairman and CEO, a returning “Sea Turtle”, says: “ IP is the lifeblood for a company like ours .”

Contract Service Company

Founded in 2001 by 4 “returnees”

IPO on NYSE in Aug 2007

Capabilities include: lead generation and optimization, process research, GMP pilot manufacturing, bioanalytical services

Aiming to move into: biology and bioanalytical services, preclinical toxicology, animal studies, formulations

In 2008, Acquired AppTec Laboratory Services (US) for $151 Million

Clients include: 19/20 top global pharmaceutical companies & 8/10 top global biopharmaceutical companies.

Compete on cost, operations, and IP protection

Lack of Advanced Training Programs Dearth of Risk Capital and Investment Exits Culture for Public-Private Collaboration Regulatory Bureaucracy Few Incentives to Address Needs of the Poor Barriers to India and China’s Health Biotech Development International Credibility Cultural Differences, Language, Travel IP Protection Enforcement Innovative Culture vs Me-Too Culture Lack of Knowledge about International Markets & Regulations

Lack of Advanced Training Programs

Dearth of Risk Capital and Investment Exits

Culture for Public-Private Collaboration

Regulatory Bureaucracy

Few Incentives to Address Needs of the Poor

International Credibility

Cultural Differences, Language, Travel

IP Protection Enforcement

Innovative Culture vs Me-Too Culture

Lack of Knowledge about International Markets & Regulations

Focus on locally-relevant products with large domestic markets Generate revenues early w/ niche products, & leverage for later growth. Explore funding opportunities on a project-specific basis from domestic & international sources (India) and from initiatives at Municipal, Provincial, & State levels (China) Be proactive in establishing collaborations with domestic and international public and private organizations Protect intellectual property with an eye on global competitiveness Take advantage of “ Brain Gain ” - senior managers trained/worked abroad are instrumental in forging initial partnering relationships Lessons Learned from India and China’s Health Biotech Sectors

Focus on locally-relevant products with large domestic markets

Generate revenues early w/ niche products, & leverage for later growth.

Explore funding opportunities on a project-specific basis from domestic & international sources (India) and from initiatives at Municipal, Provincial, & State levels (China)

Be proactive in establishing collaborations with domestic and international public and private organizations

Protect intellectual property with an eye on global competitiveness

Take advantage of “ Brain Gain ” - senior managers trained/worked abroad are instrumental in forging initial partnering relationships

Canada Lacks Global Competitiveness Presentation Title / Date

A Problem With Canada’s Innovation Agenda Canada’s Public R&D investment: > $13 billion Canada’s commercialization output: ? Presentation Title / Date

Canada’s Public R&D

investment: > $13 billion

Canada’s commercialization output: ?

What Impedes Canadian Commercialization? Almost exclusive focus on technology push , rather than market demand . Where market demand is considered, the exclusive markets of focus are industrialized markets such as the United States, Europe and Japan, with little attention paid to the ”Rest of World” markets . Presentation Title / Date

Almost exclusive focus on technology push , rather than market demand .

Where market demand is considered, the exclusive markets of focus are industrialized markets such as the United States, Europe and Japan, with little attention paid to the ”Rest of World” markets .

Enabling Canadian Firms to Reach International Markets Presentation Title / Date

International Biotech Partnering Conference Results : Over 200 participants and 70 presenters from companies in India, China, Brazil, South Africa, Ghana, Nigeria, US and Canada. Arranged over 50 private one-on-one partnering meetings. We are tracking a number of deals, including 4 with Canadian firms, that are currently under negotiation.

Results :

Over 200 participants and 70 presenters from companies in India, China, Brazil, South Africa, Ghana, Nigeria, US and Canada.

Arranged over 50 private one-on-one partnering meetings.

We are tracking a number of deals, including 4 with Canadian firms, that are currently under negotiation.

Thank You! Presentation Title / Date Additional funding partners for the McLaughlin-Rotman Centre for Global Health can be found at www.mrcglobal.org

China Biopharma – Open for Business! Paul Stinson CAPRA International December 3, 2008

Here’s What I Will Cover Today Why China is Important What’s Your China Strategy? Some Lessons from the Trenches

Why China is Important

What’s Your China Strategy?

Some Lessons from the Trenches

Ignore China at Your Peril Venture Money Available for Knowledge Economy Science & Tech Parks and Incentives in Every Province Five Year Plan 2006-2010 Goals Will Be Achieved! Every Major Pharma Company is There

Venture Money Available for Knowledge Economy

Science & Tech Parks and Incentives in Every Province

Five Year Plan 2006-2010 Goals Will Be Achieved!

Every Major Pharma Company is There

Why is Canada so Far Behind in China? Government to Government Relations since 2005 Canada’s Reliance on US Trade CCBC Caters to Large Canadian Enterprises SME’s Generally Not There in Life Sciences We are Risk-Averse. We Fear the Unknown. Result: Canada’s Engagement is Miles Behind Australia

Government to Government Relations since 2005

Canada’s Reliance on US Trade

CCBC Caters to Large Canadian Enterprises

SME’s Generally Not There in Life Sciences

We are Risk-Averse. We Fear the Unknown.

Result: Canada’s Engagement is Miles Behind Australia

What’s YOUR China Strategy? CME survey – 80% recognize need for China Strategy but only 30% have one Be Entrepreneurial! Plan, then Implement … before someone beats you to it! Follow-up is Critical Canadian Companies Can Help You CAPRA, Sinam, Engage China, Bell Alliances

CME survey – 80% recognize need for China Strategy but only 30% have one

Be Entrepreneurial! Plan, then Implement

… before someone beats you to it!

Follow-up is Critical

Canadian Companies Can Help You

CAPRA, Sinam, Engage China, Bell Alliances

CAPRA Will Help You Source Funding & Partnerships StrategicAlliance with ChinaBio LLC, Shanghai Investors Forums – Beijing Dec 11-12 ChinaBio Partnering Forum – Shanghai Jun3-4 “ Helping China Biotech Become Global Biotech” www.chinabiollc.com The Balloch Group will finance in China – see www.ballochgroup.com

StrategicAlliance with ChinaBio LLC, Shanghai

Investors Forums – Beijing Dec 11-12

ChinaBio Partnering Forum – Shanghai Jun3-4

“ Helping China Biotech Become Global Biotech”

www.chinabiollc.com

The Balloch Group will finance in China – see www.ballochgroup.com

Some Lessons from the Trenches Do not go in alone – China is not for the faint of heart Use our Embassies & Trade Commissioners China’s Embassy in Ottawa is there to help Science & Tech Counsellor Do your Research in Advance – and then be Ready for Surprises!

Do not go in alone – China is not for the faint of heart

Use our Embassies & Trade Commissioners

China’s Embassy in Ottawa is there to help

Science & Tech Counsellor

Do your Research in Advance – and then be Ready for Surprises!

Recognise Cultural Differences Guangxi - Relationships Importance of Face No Overnight Success Connections Take Time Listen More than Your Speak Be Opportunistic

Guangxi - Relationships

Importance of Face

No Overnight Success

Connections Take Time

Listen More than Your Speak

Be Opportunistic

Canadians and Chinese Do Business Differently Recognise difference in time-lines Canada: Paralysis by Analysis China: Relationships, then Action Contracts – word vs. written Intellectual Property – perception meets reality

Recognise difference in time-lines

Canada: Paralysis by Analysis

China: Relationships, then Action

Contracts – word vs. written

Intellectual Property – perception meets reality

China is Open for Biopharma Business! www.caprainc.com [email_address]

ANALYSIS OF ASIAN MARKETS – THE LEGAL PERSPECTIVE Ron Choudhury Aird & Berlis LLP 416.865.3071 [email_address]

Overview Asian Legal Systems – Focus on India Investment Vehicles Intellectual Property Regulation Intellectual Property Protection Dispute Resolution Best practices

Asian Legal Systems – Focus on India

Investment Vehicles

Intellectual Property Regulation

Intellectual Property Protection

Dispute Resolution

Best practices

Legal Systems in Asia Common law in South Asia Based on British traditions of common law India main proponent Sharia Practised in Islamic nations Code of living Sharia finance Civil law Japan Many South east Asian countries China One of the oldest legal traditions in the world Impact of communism Rule of law versus rule by law

Common law in South Asia

Based on British traditions of common law

India main proponent

Sharia

Practised in Islamic nations

Code of living

Sharia finance

Civil law

Japan

Many South east Asian countries

China

One of the oldest legal traditions in the world

Impact of communism

Rule of law versus rule by law

Investment Vehicles Tax holidays relevant in determining investment structure Joint venture Generic term encompassing different kinds of partnership arrangements Aims to bring together 2 or more parties with common goal but different organizational strengths to commence or continue venture Significant in India due to regulatory restrictions, social or geographic needs Wholly-owned vehicles Subsidiary Project office Branch

Tax holidays relevant in determining investment structure

Joint venture

Generic term encompassing different kinds of partnership arrangements

Aims to bring together 2 or more parties with common goal but different organizational strengths to commence or continue venture

Significant in India due to regulatory restrictions, social or geographic needs

Wholly-owned vehicles

Subsidiary

Project office

Branch

IP Regulation in India India member of WTO and signatory to TRIPS agreement Copyright, patent and trademark protection Copyright Act reflects Berne Convention on Copyrights Indian Patents Act compliant with TRIPS Trademarks registered under Trademark Act Licenses have been granted to drugs with similar trademarks No specific trade secrecy laws

India member of WTO and signatory to TRIPS agreement

Copyright, patent and trademark protection

Copyright Act reflects Berne Convention on Copyrights

Indian Patents Act compliant with TRIPS

Trademarks registered under Trademark Act

Licenses have been granted to drugs with similar trademarks

No specific trade secrecy laws

IP Protection in India Pharmaceutical patents Both product and process patent Pharma companies need to obtain licenses from original drug manufacturers May change R&D focus Compulsory licensing if the patent does not meet the reasonable requirements of the public at a reasonable price Data protection clauses to comply with TRIPS on protection of undisclosed information Useful for protecting undisclosed test data submitted to regulatory bodies Data exclusivity is important element of IP protection

Pharmaceutical patents

Both product and process patent

Pharma companies need to obtain licenses from original drug manufacturers

May change R&D focus

Compulsory licensing if the patent does not meet the reasonable requirements of the public at a reasonable price

Data protection clauses to comply with TRIPS on protection of undisclosed information

Useful for protecting undisclosed test data submitted to regulatory bodies

Data exclusivity is important element of IP protection

Dispute Resolution Robust judicial system Delays due to backlog Various trade agreements with US, UK, Japan, China to protect investments Agreement provide protection against acts like expropriation and provide dispute resolution procedures between investors and host state Arbitration and Conciliation Act based on Model Law on International Commercial Arbitration No specific bilateral arbitration treaty or agreement

Robust judicial system

Delays due to backlog

Various trade agreements with US, UK, Japan, China to protect investments

Agreement provide protection against acts like expropriation and provide dispute resolution procedures between investors and host state

Arbitration and Conciliation Act based on Model Law on International Commercial Arbitration

No specific bilateral arbitration treaty or agreement

Best Practices Calculated risks Understand nature of IP rights and protection available Ensure adequate registration of IP Strong IP violation and dispute resolution clauses in contracts IP audit Employment contracts

Calculated risks

Understand nature of IP rights and protection available

Ensure adequate registration of IP

Strong IP violation and dispute resolution clauses in contracts

IP audit

Employment contracts

Questions

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia International Commercial Collaborations: Moves for Success Moderator: David Shindler, BioDiscovery Toronto Stuart Wilson, ISTPCanada Adi Treasurywala, Arrowcan Partners Yu Zhang, CAPRA International Christopher Paige, Shanghai-Toronto Institute for Health Research

Biomedical Industry in China Yu Zhang CAPRA International December 3, 2008

Here’s What I Will Cover Today Current scenario of China’s biopharma industry and underlying reasons Industry trends and what are shaping them Examples of international collaborations

Current scenario of China’s biopharma industry and underlying reasons

Industry trends and what are shaping them

Examples of international collaborations

China is a Rapidly Growing Biopharma Producer and Market … >20% growth during 2001-05 to >$3bio; World 4 th largest vaccine market Home to >400 biopharmaceutical manufacturers incl. 114 for genetically engineered drugs and 28 for vaccines Driven by government policies: Huge increase in government investment: $100mio in 2001 -> $1.2bio in 2005 Strong promotion of product development in China by foreign companies Sources: Biopharm International, Mar07; BioSpectrum Asia, Nov08; Sarah E Frew et al, Nature Biotechnology, Jan08

>20% growth during 2001-05 to >$3bio; World 4 th largest vaccine market

Home to >400 biopharmaceutical manufacturers incl. 114 for genetically engineered drugs and 28 for vaccines

Driven by government policies:

Huge increase in government investment: $100mio in 2001 -> $1.2bio in 2005

Strong promotion of product development in China by foreign companies

… Even Though It Represents Only 7% of Global Market In the past, limited innovative capabilities and funding support for R&D Result: 90% of market is biogenerics However, CAGR is projected 22% during 2005-2010 to reach $10.3bio Sources: Biopharm International, Mar07; Sarah E Frew et al, Nature Biotechnology, Jan08

In the past, limited innovative capabilities and funding support for R&D

Result: 90% of market is biogenerics

However, CAGR is projected 22% during 2005-2010 to reach $10.3bio

Government Has Been Strongly Driving Innovation R&D policies and support have resulted in: Having commercialized world’s 1 st licensed gene therapy drugs: Collaboration between Sunway and Genzyme Developing leading-edge stem cell therapies Shanghai Genon Bio-Engineering Developing novel therapies to treat both locally and globally relevant diseases: Tianjin FusoGene’s HIV inhibitor granted US patent Sources: Websites; Sarah E Frew et al, Nature Biotechnology, Jan08

R&D policies and support have resulted in:

Having commercialized world’s 1 st licensed gene therapy drugs:

Collaboration between Sunway and Genzyme

Developing leading-edge stem cell therapies

Shanghai Genon Bio-Engineering

Developing novel therapies to treat both locally and globally relevant diseases:

Tianjin FusoGene’s HIV inhibitor granted US patent

Continuous Government Commitment to Biotech Leap Forward Biomedicine emphasized in the 11 th Five-Year Plan of government (2006-2010) Government investment will be $8.8bio by 2010 Principal Objectives: To develop and commercialize 10-15 innovative drugs and vaccines with Chinese owned IP rights To market 5 chemical synthetic finished drugs to western countries by 2010 To foster 5 large-scale pharma groups, to promote 10 large distributors , and to help 5 domestic pharma evolve into international enterprises Source: Biopharm International, Mar07; BioSpectrum Asia, Nov08

Biomedicine emphasized in the 11 th Five-Year Plan of government (2006-2010)

Government investment will be $8.8bio by 2010

Principal Objectives:

To develop and commercialize 10-15 innovative drugs and vaccines with Chinese owned IP rights

To market 5 chemical synthetic finished drugs to western countries by 2010

To foster 5 large-scale pharma groups, to promote 10 large distributors , and to help 5 domestic pharma evolve into international enterprises

Companies Have Benefited From Government-Supported Labs Genetically engineered vaccines: Sinovac Immunologic diagnostic reagents: Shanghai Medicilon Pharmacogenomic and proteomic screening: Shanghai Genomics QC technology in TCM industry: Shenzhen Tongjitang Pharmaceutical Antibody drugs: Suzhou YES Biotech Laboratories Medical implant devices Source: Notification from China’s National Development and Reform Commission (NDRC), Oct07; Company websites

Genetically engineered vaccines: Sinovac

Immunologic diagnostic reagents: Shanghai Medicilon

Pharmacogenomic and proteomic screening: Shanghai Genomics

QC technology in TCM industry: Shenzhen Tongjitang Pharmaceutical

Antibody drugs: Suzhou YES Biotech Laboratories

Medical implant devices

Significant Government Support in Other Biotech Research Areas Breeding for endangered herbs Molecular crop breeding Cellular crop breeding Forest tree breeding Animal breeding Chemical applications on biomass Veterinary biological products Crop transgenic breeding Development and safety of biologic feed

Breeding for endangered herbs

Molecular crop breeding

Cellular crop breeding

Forest tree breeding

Animal breeding

Chemical applications on biomass

Veterinary biological products

Crop transgenic breeding

Development and safety of biologic feed

Increasing Numbers of ‘Sea-Turtles’ Mean More International Collaborations Shanghai Genomics and Gene Networks International Shenzhen Chipscreen Biosciences and HUYA Bioscience International in San Diego Mindray Bio-Medical’s acquisition of DataScope business June 3-4 th : ChinaBio Partnering Forum in Shanghai: www.chinabiollc.com

Shanghai Genomics and Gene Networks International

Shenzhen Chipscreen Biosciences and HUYA Bioscience International in San Diego

Mindray Bio-Medical’s acquisition of DataScope business

June 3-4 th : ChinaBio Partnering Forum in Shanghai: www.chinabiollc.com

China is Open for Biopharma Business! “ Chinese biopharma enterprises are looking forward to more collaboration with the world’s leading biopharma institutions and companies. We expect to achieve a win-win situation with our global partners. The Chinese biopharmaceutical industry is ready to make significant contributions to global disease prevention and healthcare.” - Ms. Lifeng Wang, CEO of China National Biotech Group (CNBG), at the 1 st International China Biopharmaceutical Symposium (ICBPS), Beijing, Dec06

“ Chinese biopharma enterprises are looking forward to more collaboration with the world’s leading biopharma institutions and companies. We expect to achieve a win-win situation with our global partners. The Chinese biopharmaceutical industry is ready to make significant contributions to global disease prevention and healthcare.”

- Ms. Lifeng Wang, CEO of China National Biotech Group (CNBG), at the 1 st International China Biopharmaceutical Symposium (ICBPS), Beijing, Dec06

UHN China Strategy Christopher Paige, PhD Vice President, Research University Health Network Research to Revenue December 3, 2008

UHN Global Ventures “ to seek preferred academic and commercial partnerships” Research Planning

Enhance Drug Development Capacity Build Clinical Research/Trial Capacity Extend Global Reach WHY?

Enhance Drug Development Capacity

Build Clinical Research/Trial Capacity

Extend Global Reach

STRUCTURE UHN Shanghai Incorporated in China as a WFOE UHN Shanghai CRO (Zhangjiang HT Park)

Profit expectations A culture of “work - arounds” Fast changing regulatory environment Challenges

Service/development model Get to know the Regulators Hire good advisors Solutions 关系

Thank You 谢 谢

AN OVERVIEW OF ISTPCANADA December 3, 2008 Stuart Wilson, ISTPCanada

Background International S&T Partnership Program $20 Million Program of Department of Foreign Affairs and International Trade to foster international S&T partnerships Target Countries: India, China, Brazil and Israel Israel component delivered by existing Canada-Israel Industrial R&D Foundation (CIIRDF) India, China and Brazil components to be delivered through non-governmental organizations

International S&T Partnership Program

$20 Million Program of Department of Foreign Affairs and International Trade to foster international S&T partnerships

Target Countries: India, China, Brazil and Israel

Israel component delivered by existing Canada-Israel Industrial R&D Foundation (CIIRDF)

India, China and Brazil components to be delivered through non-governmental organizations

ISTPCanada Overview Established - January, 2007 Mandate – to promote and facilitate international R&D partnerships involving Canadian companies and research organizations Primary Activity - Implementing the funded program components of bilateral S&T agreements through counterpart organizations in partner countries Clients – companies, academic institutes, research institutes and other institutes (Crown agencies may participate but cannot be recipient of funding) Supported activities - Collaborative R&D Projects and Partnership Development Activities Principles – S&T excellence, shared benefits, economic returns to both countries, symmetry, protection of IP, respect of local laws

Established - January, 2007

Mandate – to promote and facilitate international R&D partnerships involving Canadian companies and research organizations

Primary Activity - Implementing the funded program components of bilateral S&T agreements through counterpart organizations in partner countries

Clients – companies, academic institutes, research institutes and other institutes (Crown agencies may participate but cannot be recipient of funding)

Supported activities - Collaborative R&D Projects and Partnership Development Activities

Principles – S&T excellence, shared benefits, economic returns to both countries, symmetry, protection of IP, respect of local laws

Internal Partnerships Provinces: Alberta & British Columbia in place Ontario & Quebec in development Industrial Research Assistance Program (active) Ontario Centres of Excellence (active) Western Economic Diversification (active) Sustainable Development Technology Canada The Canadian Institutes of Health Research The Atlantic Canada Opportunities Agency Federal Science-based Departments and agencies

Provinces:

Alberta & British Columbia in place

Ontario & Quebec in development

Industrial Research Assistance Program (active)

Ontario Centres of Excellence (active)

Western Economic Diversification (active)

Sustainable Development Technology Canada

The Canadian Institutes of Health Research

The Atlantic Canada Opportunities Agency

Federal Science-based Departments and agencies

The Basic Approach Synchronize application process with the implementing organization in the partner country, to the greatest extent possible Common calls for proposals will be issued and syncronization of approval processes maximized; and Final authority for funding rests with national implementing organizations but a Yes/Yes decision is required before proceeding.

Synchronize application process with the implementing organization in the partner country, to the greatest extent possible

Common calls for proposals will be issued and syncronization of approval processes maximized; and

Final authority for funding rests with national implementing organizations but a Yes/Yes decision is required before proceeding.

Collaborative R&D Projects ~80% of ISTP program funds Industry participation essential Commercialization plan important element of proposals Academia and R&D Institutes participation encouraged and may lead project Exchange of young researchers also encouraged Maximum contribution by ISTPCanada is $600,000 Contribution up to 50% Canadian share of eligible costs Average project duration 1-3 years Number of projects funded each call-for-proposals is subject to available funding

~80% of ISTP program funds

Industry participation essential

Commercialization plan important element of proposals

Academia and R&D Institutes participation encouraged and may lead project

Exchange of young researchers also encouraged

Maximum contribution by ISTPCanada is $600,000

Contribution up to 50% Canadian share of eligible costs

Average project duration 1-3 years

Number of projects funded each call-for-proposals is subject to available funding

Collaborative R&D Projects Key Criteria: Scientific merits and degree of innovation inherent in the product/service developed Business opportunity and capacity for commercial success Capacity of participants to manage and conduct the project, including commercialization thus leading to clear benefits to both countries Non-government funding minimum of 25%

Key Criteria:

Scientific merits and degree of innovation inherent in the product/service developed

Business opportunity and capacity for commercial success

Capacity of participants to manage and conduct the project, including commercialization thus leading to clear benefits to both countries

Non-government funding minimum of 25%

Application and Review Process Competitive Process Expression of Interest (EOI in India but not in China) Invitation for full proposal submission Parallel proposal evaluations in each country: yes/yes required At ISTPCanada - Expert assessment - Advisory Committee recommendation - Joint project approval - ISTPCanada Board approval

Competitive Process

Expression of Interest (EOI in India but not in China)

Invitation for full proposal submission

Parallel proposal evaluations in each country: yes/yes required

At ISTPCanada

- Expert assessment

- Advisory Committee recommendation

- Joint project approval

- ISTPCanada Board approval

Partnership Development Activities ~20% of program funds Joint cost-shared activities such as workshops, partnering missions, seminars, conferences, symposia, exchanges, and other technology partnership events Industry participation encouraged Objective to form extended R&D collaborations competitive calls and internally generated Up to $25,000 or 50% of eligible Canadian costs

~20% of program funds

Joint cost-shared activities such as workshops, partnering missions, seminars, conferences, symposia, exchanges, and other technology partnership events

Industry participation encouraged

Objective to form extended R&D collaborations

competitive calls and internally generated

Up to $25,000 or 50% of eligible Canadian costs

China Update First CFP September, 2007 135 Expressions of Interest 47 full proposals invited 8 projects announced May, 2008 Second CFP September 2008 170+ Expressions of Interest 38 full proposals invited Partnership Development Activities 15 completed or approved

First CFP September, 2007

135 Expressions of Interest

47 full proposals invited

8 projects announced May, 2008

Second CFP September 2008

170+ Expressions of Interest

38 full proposals invited

Partnership Development Activities

15 completed or approved

India Update First CFP Launched October, 2007 67 Expressions of Interest received 29 Full proposals invited 8 projects approved For Partnership Development Activities (PDA) Open Call for Proposals – 3 month turn-around 3 PDAs being developed Second CFP September (Biosciences) 20+ Expressions of Interest Partnership Development Activites 3 completed or approved

First CFP Launched October, 2007

67 Expressions of Interest received

29 Full proposals invited

8 projects approved

For Partnership Development Activities (PDA)

Open Call for Proposals – 3 month turn-around

3 PDAs being developed

Second CFP September (Biosciences)

20+ Expressions of Interest

Partnership Development Activites

3 completed or approved

Contacts www.istpcanada.ca Bharat Rudra – Country Manager, India [email_address] Stacy Chew – Country Manager, China [email_address]

www.istpcanada.ca

Bharat Rudra – Country Manager, India

[email_address]

Stacy Chew – Country Manager, China

[email_address]

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia Adventures in Emerging Markets Andrea Mandel-Campbell

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia Mississauga: Canada's 3rd Largest Life Sciences Cluster Larry Petovello, City of Mississauga

From Research to Revenue IV: Capturing Business Opportunities in Asia From Research to Revenue IV: Capturing Business Opportunities in Asia

From Research to Revenue IV: Capturing Business Opportunities in Asia Strategic Case Studies Moderator: Joel Cheng, XPhase Pharmaceuticals Inc. Bin Huang, WEX Pharmaceuticals Fulong Qiao, Beijing Farmunity Inc. Sean Thompson, YM Biosciences

From Research to Revenue IV Capturing Business Opportunities in Asia December 3, 2008 Developing a new class of non-opioid analgesics for treatment of pain by Bin Huang, President & CEO

OVERVIEW www.wexpharma.com Phase 3 clinical trial: Tectin for refractory cancer pain N ew class of non-opioid analgesics Clinical trials in Canada since 2000 A Canadian public company since 1992 – TSX:WXI Management and development teams in Vancouver and Montreal Manufacture plant in Nanning, China $20 million investment from CK Life Sciences Deal closed October 2007, provides funding for 2 years Rebuild management team

Phase 3 clinical trial: Tectin for refractory cancer pain

N ew class of non-opioid analgesics

Clinical trials in Canada since 2000

A Canadian public company since 1992 – TSX:WXI

Management and development teams in Vancouver and Montreal

Manufacture plant in Nanning, China

$20 million investment from CK Life Sciences

Deal closed October 2007, provides funding for 2 years

Rebuild management team

The Asia Connection – WEX experience Origin of Company – Hong Kong Initial source of technology – China API supply – 25 staff manufacture plant in Nanning, China New major investor – CK Life Sciences Int’l, HQ in Hong Kong

Origin of Company – Hong Kong

Initial source of technology – China

API supply – 25 staff manufacture plant in Nanning, China

New major investor – CK Life Sciences Int’l, HQ in Hong Kong

 

Opportunities Cost of R&D Access to larger pools of patients Access to capital An alternative source Access to large and rapidly-growing market Asian prevalent diseases Inexpensive medicines Diagnostic tools and services

Cost of R&D

Access to larger pools of patients

Access to capital

An alternative source

Access to large and rapidly-growing market

Asian prevalent diseases

Inexpensive medicines

Diagnostic tools and services

Considerations A constantly changing environment Know the rules and culture Virulent competition, pricing pressure Government support for SOE vs. WFOE Government – can’t rely on it, can’t defy it Local partner is critical Trusted advisor is essential Mind your store - feet on ground Hong Kong and Singapore are good gateways Watch your IP Get paid upfront

A constantly changing environment

Know the rules and culture

Virulent competition, pricing pressure

Government support for SOE vs. WFOE

Government – can’t rely on it, can’t defy it

Local partner is critical

Trusted advisor is essential

Mind your store - feet on ground

Hong Kong and Singapore are good gateways

Watch your IP

Get paid upfront

Examples www.crownbio.com – CRO www.wuxipharmatech.com – CMO www.simcere.com – Pharma www.caprainc.com – Partnerships www.asialife.com – Venture consulting

www.crownbio.com – CRO

www.wuxipharmatech.com – CMO

www.simcere.com – Pharma

www.caprainc.com – Partnerships

www.asialife.com – Venture consulting

Dr. Fulong Qiao Beijing Farmunity Inc. December 3, 2008 Integrated Eco-Dairy Corporation (IEDC) Model

Dr. Fulong Qiao

Beijing Farmunity Inc.

December 3, 2008

Outline Best safe foods market in the world Marketing strategy of safe foods in China Challenging issues of Chinese dairy Milestones of Fulong’s business in China Highlights of integrated dairy producing technology system (IDPTS) Integrated eco-dairy corporation (IEDC) model Strategies on development Summary

Best safe foods market in the world

Marketing strategy of safe foods in China

Challenging issues of Chinese dairy

Milestones of Fulong’s business in China

Highlights of integrated dairy producing technology system (IDPTS)

Integrated eco-dairy corporation (IEDC) model

Strategies on development

Summary

1. Best safe foods market in the World Facts in Chinese Agriculture: China has 10% of arable lands vs. 20% of population in the World. Lack of standardized production and economic land scale. China has 250 million households (farms). Each household has only 1 Acre arable land in average. Farming is more and more relaying on chemicals. 35% chemical fertilizers in the world are used in China. Pesticides, herbicides, hormones and antibiotics are widely used. Niche Market of Safe Foods: Right now, people pay more attention on safe foods than education, social warfare, environmental pollution and employment. Limited choices of safe fo

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