Animal HealthAaron Gilbertie, Aptimmune

CEO

Explosive M & A Activity• Recent Mega Mergers ($17.9B) –

Elanco/Novartis & BI/Merial

• 2015: 50 Deals of varied sizes and sectors (Source: AnimalPharm)

• Vaccines a hot target

Drivers• Product/Category Diversification

• Improve Geographic Strength

• Portfolio Optimization

Food Animal: The Paradigm Shifted

• Regulatory environment and customer demands favor shift to preventatives and non-antibiotic therapy alternatives.

• Attractive categories:– Vaccines– Probiotics– Bacteriophage– GMO– Next gen plant-based parasiticides

Product Development• Large company product development is being outpaced

by market demand for alternative products

• New products and technology required. Radical innovation as opposed to incremental.– Start-ups will provide much of the input

• Innovative products/companies are prime targets for acquisition

• There is a shortage of quality product alternatives to address HUGE needs

Animal Health Innovation Support

• KC Animal Health Corridor Observations– Built in advantage. Legacy industry presence– Two major agriculture universities within 150 miles

each direction. KSU and University of Missouri– Diverse animal health coalition

• Animal Health Innovation Support Concept– Identify existing/near-term companies– Leverage cooperation with another agriculture

university (Purdue)– Choose an area of focus. Example: Food animal

vaccines, antibiotic alternatives, etc.

Thank you