YOUR LOGO YOUR LOGO

You’re smart. We Care. Join a community making a difference...

Martino Picardo, CEO

Stevenage Bioscience Catalyst; April, 2014

The Stevenage Bioscience Catalyst, shaping the future of Life Sciences and Biomedical

Innovation in the UK; why Open Innovation is an integral part of the story

YOUR LOGO Agenda

Setting the Scene-what is SBC?

Case studies

Next steps

1

2

3

4

SBC engagement with our community

Building the Community

You’re smart. We Care. Join a community making a difference...

YOUR LOGO Setting the Scene

Catalysing innovation by exploring new ways of collaboration

To transform innovative ideas into commercial reality, we will seek out the best ideas and talent and create a world class environment that stimulates

creativity and encourages new open and collaborative ways to deliver health care solutions that make a difference to patients' lives.

You’re smart. We Care. Join a community making a difference...

* SBC Vision and Mission statement agreed by the Board June 2013

Our Vision and Mission Statement

YOUR LOGO

Source: Burrill & Company; US Food and Drug Administration.

Note: NMEs do not include BLAs

26 25

22

28

53

39

30

35

27

24

17

21

31

18 18

14

$12$13 $13

$15$17

$19$21

$23

$26

$30$32

$33

$39 $39

$43

$54

0

10

20

30

40

50

60

0

5

10

15

20

25

30

35

40

45

50

$55

New Drug Approvals (NMEs) PhRMA Member R&D Spending

New

Dru

g A

pp

rova

ls (

NM

Es)

Ph

arm

a R

&D

($ b

illi

on

s)

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

R&D Productivity decreases the innovation gap is getting wider

GAP

YOUR LOGO Continued focus on externalisation through options-based deals

More than 80 active projects from 47 external engines

Alveonix

Pentraxin Therapeutics

Tempero Pharmaceuticals

UCL Institute of

Ophthalmology

13 new partnerships since Feb 09

YOUR LOGO Open Innovation

6

Research Development Commercialization

Inputs

Inputs

Ideas/technologies

Out-licensed

Technology/Ideas

In-licensed

Product In-licensed

Joint ventures

Line extensions

Via partners

Academic collaborations

YOUR LOGO The “Big Pharma Diaspora”

Restructuring is an OI opportunity

ACADEMIA

SME BIOTECH

YOUR LOGO Changing face of Innovation

The Past….Large Corporate R&D facilities Secretive smart scientists, low level of collaboration

Closed Innovation

The Present…..leaner business units Increased levels of collaboration

More outsourcing, more partnerships

Open Innovation

YOUR LOGO Target distribution among SGC Laboratories

SGC-Oxford

–Dehydrogenases, Reductases & Metabolism

–Phosphorylation Dependent Signaling

–Transmembrane Receptor Signaling

SGC-Toronto

–Diabetes and signalling

–Chromatin

–Apicomplexan-associated diseases

–GTPases, ATPases and small molecule kinases

SGC-Stockholm

– Nucleotide metabolism and RNA helicases

– Amino acid metabolism

– Lipid signalling

Shared best practice: Methodology & technology

YOUR LOGO YOUR LOGO Recognition of our Science

YOUR LOGO

Liverpool Manchester

Edinburgh

Glasgow

Aberdeen

Dundee

Cambridge

Oxford UCL

Imperial Kings

Clinical Rotation Scheme (Wellcome Trust)

Academic Health Science Centres (AHSC, Department of Health)

Experimental Cancer Medicine Centres (ECMC, Cancer Research UK and Department of Healths)

“Specialist” Biomedical Research Centres (BRC, National Institute for Health

Research)

“Comprehensive” Biomedical Research Centres (BRC, National Institute for Health

Research)

Collaborations for Leadership in Applied Health Research and Care (CLAHRC, National

Institute for Health Research)

Biomedical Research Units (BRU, National Institute for Health Research)

Clinical Research Facilities (CRF, Wellcome Trust)

Clustering of centres of academic excellence

University Medical Schools

UoB:

•Wellcome Trust CRF

•BRU

•CLAHRC

•Experimental Cancer

Medicines Centre

YOUR LOGO

UK BioIncubator Forum - what has been achieved?

An active web-site and Linked In Group

>17 members across the UK

Benchmarking, best practise and co-marketing

Lobbying and policy (e.g. grow-on)- Biocity UK report

Direct links to UKSPA and UKBI

Sharing equipment and tenant (SME) databases

An opportunity to link UK plc?

UK data 2009

18 bioincubators, 337 tenants, 244 bioventures, 2578 staff

60 virtual companies, 76 graduate companies

YOUR LOGO

The Challenges for UK Pharma

The science bases in the developing world are getting

stronger

Life Science clusters eg Boston are attracting the

major Pharma investments

Clinical trial recruitment rates are patchy

UK is most expensive place to fund a post-doc (FEC)

YOUR LOGO Conclusions:

GSK/Pharma are keen to promote a more open culture for sharing ideas & data

Traditional relationships between Academia and Industry are being re-defined

Access to public funding will drive areas of science underpinning the Pharma industry

Innovative partnership models allow both GSK & academics better access to science & technology

YOUR LOGO What is the Stevenage BioScience Catalyst?

12

10.9

6

5

4 0 Funding in £ms

BIS GSK Wellcome Trust TSB EEDA

Key Facts

Purpose-built Open Innovation

Campus

support for start-up companies

convenient location

catalyst for innovation

• Once complete – phase 1 to 3

Up to 25 new companies,

including 5 new ventures

Over 1,500 additional jobs

Phase 1 open for business,

February 2012

You’re smart. We Care. Join a community making a difference...

YOUR LOGO SBC Tenants:

Awridian

Arachos Pharma

YOUR LOGO Differentiation and specialisation

Compelling location

Access to Scinovo

Access to SR One funding

Access to GSK e-journals

Access to therapeutic expertise at GSK and other stakeholders

Access to regular seminar series (open access)

Access to SBC Experts Panel

Access to a funding network

Access to an SBC associate network (services in areas such as IP, legal, marketing)

Access to technical shared services

Development of a web-based open innovation SBC community portal

SBC Tenant Offering

You’re smart. We Care. Join a community making a difference...

YOUR LOGO Building the SBC Community…

Physically based

Cambridge and UCL

projects at SBC

DiscoverAssist

Open Innovation &

Convergence agendas

Catalyst Innovation Portal

Entrepreneur in Residence

Experts panel

GSK/Scinovo

Communal areas (technical,

atrium)

Events & workshops

Tenant collaborations

You’re smart. We Care. Join a community making a difference...

… with Academia … with Industry … with Tenants

YOUR LOGO Facing the challenge; Discover Assist - SBC EXPERTS PANEL

Many promising

technologies originating from academia are slow to

market due to lack of

funding, expertise and experienced development

resources

To leverage resources and

expertise at the interface of chemistry and biology to

help develop better drugs

and medical technologies

SBC DiscoverAssist is a new

drug discovery service offering expert guidance from target generation to drug candidate

optimisation to market

Open innovation model at

SBC to foster connectivity, collaboration, and challenges:

Faster route to clinical proof of

concept and Market entry strategy

Access networks, facilities,

resources, know-how, etc

Access to know-how, IP, ideas,

knowledge, new technologies

YOUR LOGO Engagement with Universities – Case study

Examples of collaborations

Shelley Allen (Bristol), SBC Science

Seminar & help with funding on

grant applications and introduction

to GSK

Scoping joint activity with Bristol on compound collection

Graphene Day event on Nov. 26th to

forge connections with industry

Opticin – a tragte for diabetic

retinopathy (Manchester)

DiscoverAssist

You’re smart. We Care. Join a community making a difference...

Our UK Footprint

YOUR LOGO Engagement with Industry – Case Study

Catalyst Innovation Portal

You’re smart. We Care. Join a community making a difference...

The Catalyst Innovation Portal is a resource for both UKBIF incubators and their tenants as well as small

and global private sector firms, academia and research organisations. It is also for Ph.Ds and master students, tech transfer officers, government organisations, policy makers, thought leaders and others who have an interest in or are enabling open innovation in the bio, pharma and medtech sectors.

YOUR LOGO Making Open Innovation Happen

Discover

Assist

Technical

Services

(Labstract)

Scinovo

(GSK) Chemistry

at SBC Cell

Technologies

You’re smart. We Care. Join a community making a difference...

SBC

Connect

A tool with which the life sciences

community can engage in networking, open forums,

challenges and competitions, and find out the latest industry news and events.

Will form an integral part of our

industry intelligence, marketing platform, and brand as leaders in open innovation

Aim for the SBC Portal

YOUR LOGO The Academic Hub model for Open Innovation

Cambridge University has based an innovation centre at

SBC

Researchers need access to drug development skills at

GSK and others

Attracted by open innovation model

Focus on the development of new medicines

News led to strong interest from other leading universities

On-going engagement across the UK university base

Directly or via technology transfer offices

Interest in location at SBC or exploitation of academic IP

Strong relationships with University of Manchester,

Hertfordshire, Oxford, Ulster, Edinburgh BioQuarter, UCL, Wellcome Trust, Sanger Institute

Strong desire to work with the Crick on commercialisation

Innovation from Universities

You’re smart. We Care. Join a community making a difference...

Christine Martin, Cambridge Enterprise

YOUR LOGO Engagement with Tenants – Case Study

An Open Innovation Consortium to bring therapies for new Diseases (12 SBC start-ups

involved plus UCL and MRCT)

Offer/Pitch:

Bridging ideas to potential medicines by linking innovation suppliers with buyers in rare

diseases

Suggest what

Buyers get is idea with industry standard package

Suppliers get funding to progress ideas to investment ready

Contributors get to add value to their company/individual and have potential upside if

successful

Outputs

Reduced attrition

Licence / acquisition

Secure public/charity funding

Spin Out of company

Horizon2020 Collobaration

You’re smart. We Care. Join a community making a difference...

YOUR LOGO

SBC H2020 Consortium Model; using the Scinovo model

Consortium

Interface

SBC H2020 Expertise

oversight

Academic

Assets

Discovery

Research

Non-clinical

Development

Clinical

Development

Consortium leadership, project and budget management,

outsourcing selection/oversight operational support

Computational chemistry

Medicinal Chemistry H T Screening

Reagent supply

Molecular Technologies Translational PK/PD

Animal models

Expert planning and oversight

Toxicology Drug Metabolism

Kinetics

Chemistry Formulation Development

Biopharmaceutical Development

Early Phase Clinical Trial

design and oversight Development Medical

expertise

Regulatory Support

H2020 Calls

PHC-13 New Therapies for New Disease PHC-31 Predictive Human Safety Testing

IMI 1 & 2

ND4BB Genomic Translation

Create a New Early Stage Drug Discovery and

Development hub in Rare Disease SBC Consortium of Knowledge, knowhow, expertise and services

YOUR LOGO Stevenage Bioscience Catalyst – MIMIT initiative on Neurodegeneration

The TTOs of five Academic Health Science Centres have committed

to collaborate for healthcare innovation

Cambridge, Manchester, UCL, Kings, Imperial College

SBC wishes to become a hub for catalysing neuroscience activities,

and commissioned MIMIT* to run workshops with the 5 AHSCs to

scope unmet clinical needs in neurodegeneration

SBC will provide limited funding (£40k max), TTOs have committed

to match

The complexity of the area and discussions at workshops suggest a

collaborative approach across AHSCs is preferable.

Fits SBC’s Open Innovation agenda

* Manchester: Integrating Medicine and Innovative Technology

YOUR LOGO

Proposed next steps

Following guidance and introductions from Prof Ray Hill (SBC Expert Panel member), hold

initial discussions with leading academics in the field at some of 5 AHSCs to test appetite for such a collaboration, how can it bring truly additional benefit to them - understand how to create potential win-win and generate support

Speak to potential industry collaborators with a view to building a consortium

Preliminary discussions held with 4 major pharma, follow-up in detail and explore with further

potential members

Set up formal ‘call for proposals’ on the two themes outlined, then hold workshops with

participants whose proposals may mesh together into a collaboration, together with related TTOs

Once themes and likely participants are clear, establish clear objectives for the programme and funding mechanisms

YOUR LOGO

Connectivity

Collaboration

Challenge

An innovative environment for fast paced drug discovery, innovative drug development to achieve real patient benefit

Expertise in-house from candidate selection to Phase II clinical programmes to include screening; biomarkers; regenerative medicine; nanotechnology; bioinformatics; new therapies, MedTech

An exciting new concept to develop a world class environment for engagement of SBC development expertise with academia, pharma and biotech aligned to H2020 opportunities, Wellcome Trust Challenges etc.

The UK’s first biomedical open innovation

campus; People, Infrastructure and Funding

YOUR LOGO

•Hub and satellite bioincubators

•Creating an interacting web of support

to promote early stage bioventures

http://www.ukbioincubation.com/

YOUR LOGO Convergence; Focus for SBC

CONVERGENCE APPLICATION (FOCUS) AREAS

DIGITAL HEALTH ICT/BIG DATA

CELL/GENE THERAPY

NEUROSCIENCES/ eg

BIOSCIENCES

AUTOMATION/

ROBOTICS

DELIVERY &

FORMULATION

NEW MATERIALS

FEMTO-MOLE DETECTION

YOUR LOGO Our Site

You’re smart. We Care. Join a community making a difference...

YOUR LOGO Phase 3

Completed to the full 60 000 sq m

You’re smart. We Care. Join a community making a difference...

YOUR LOGO Stevenage Bioscience Catalyst Update

UCL - The projects are in chemistry, biology and clean manufacturing

Professors Alexander Seifalian and George Hamilton

to develop vascular and coronary artery bypass grafts. It will be project managed by

UCLB, who will develop laboratory space in the SBC into a clean manufacturing

environment for a first-in-human clinical investigation of a new generation of

biocompatible grafts.

Professor Stephen Caddick and Dr James Baker

to develop well-defined, stable and consistent antibody drug conjugates (ADCs) for

the treatment of cancer. ADCs combine the unique targeting capabilities of

antibodies with the cancer-killing ability of cytotoxic drugs.

Professor Rachel Chambers

to investigate potential therapeutics for the treatment of neutrophilic inflammation.

Page 33

YOUR LOGO Stevenage Bioscience Catalyst Update

Cambridge

Professor Peter McNaughton

a novel new approach to the pain associated with heat. Billions of dollars are spent each

year on the treatment of pain, but there is currently no effective treatment for the

extreme pain associated with hypersensitivity to heat.

Professor Robin Franklin

a new regenerative therapy for multiple sclerosis (MS). MS affects almost 100,000

people in the UK, 400,000 in the United States and several million worldwide.

SBC Mentoring programme for 15 mentees – launched 18th March

Supported by the Department of Business, Innovation and Skills, Stevenage

Bioscience Catalyst and Winning Pitch have launched a transformative bespoke

mentoring scheme for the life sciences sector. The year-long programme will

help 15 small life sciences companies move rapidly towards important strategic

goals.

Page 34

YOUR LOGO Relocation of MRC Technology's drug discovery activities to the Stevenage campus

Their Centre for Therapeutics Discovery will become the

cornerstone tenant in SBC's Accelerator building

Fit-out in 2014, Relocation in 2015

Will occupy around 23,000 sq ft of laboratory and office space

70 staff on site

Plans for multi-user Med Tech Incubator on the ground floor

YOUR LOGO Conclusions

Tenancy and occupancy levels are on the rise

The quality of tenants is high and there is interaction (Open

Innovation) happening- NEW TENANTS, March 2014

Plans for Phase 2 Park development will begin in earnest soon

Centres of Excellence in Screening (Discover Assist) and cell

Technologies (GE) are up and running- Biomarkers next

COE plans for Neuroscience and Nanotechnologies- the Portal

1

2

3

4

5 Plans to bring Converging Medical Technologies into the

community We are looking for partners locally, Nationally and globally- Build the OI Campus

and community-working with the Wellcome Trust- A CHALLENGE model?

This is a unique evolving story

6

7

8

You’re smart. We Care. Join a community making a difference...

YOUR LOGO

And thank you for listening

Do You Have

Any Questions?

You’re smart. We Care. Join a community making a difference...