“Breakout group 2 - Life Sciences”

Co-Chairs: Toshio Miyata (Tohoku University)Malcolm Skingle (GSK)

Tuesday 10th January 2012Building University – Business links symposium

British Embassy & British Council meeting

Emerging Markets & Asia Pacific Drives GSK Growth

US Pharma£7.6bn

($11.9 bn)

EuropePharma

£6.5bn ($10.2bn)

Rest of World£1.0bn($1.5bn)

2010 Turnover £28.4bn/$44.0bn (-1%)

Emerging Markets Ph

£3.6bn ($5.5bn)

Japan/AP Ph £3.1bn

($4.8bn)

Consumer £5.0bn

($7.3bn) US growth rate impacted bylosses to generics

+7%

+9%

+22%

-6%

-11%

CER growth rates

Europe growth rate impacted bylosses to generics and gov’t

austerity measures

ViiV£1.6bn($2.4bn)

-3%

Criteria for selection of collaborative projects

• Strategic fit to GSK research•Quality of science in the proposal• Availability of facilities & resources• High likelihood of useful new information or

technology arising• Timing with respect to deliverables• Value for money

GSK Priority areas of science

• Strongly committed to academic research collaborations to advance scientific understanding relevant to our key areas of focus:

• Immuno-inflammation• Oncology• Neurosciences • Metabolic Pathways• Infectious diseases • Biopharmaceuticals • Respiratory• Ophthalmology

Process for Internal Approval of Research Collaborations

• Industrial scientist discusses proposal with academic to identify areas of common interest

• Assumes role of industrial champion & discusses project with Academic Liaison

• Review project priorities with respect to resources & budget

• Academic Liaison negotiate & implement agreement

• Use standard agreements wherever possible

Why Collaborate ?

• Share risks & rewards• Harness other sources of funding• Access knowledge & new thinking• Build global links• Networking• Recruitment• Think longer term

More than 80 active projects from ~50 external engines

Alveonix

Pentraxin Therapeutics

Tempero Pharmaceuticals

UCL Institute of Ophthalmology

16 new partnerships since Feb 09

GSK today – larger pipeline and much more externalized

Updated January 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

enta

ge

Phase I Phase II Phase III File / Reg

In-house Alliance

Alliances are delivering a partnered pipeline

Source: GSK Product Development Pipeline, Feb 2010, available at www.gsk.com

Percentage GSK product development pipeline from in-license or other alliance relationship with third party, by phase of development

27% 39% 65% 38%

We are looking for

innovation wherever

it may originate