Presentation

Local Biotechs: Unleash the Power

By

Joseph C. K. LiuMBA, Ph.D

China Concord Limited

20 August 2016

HK Polytechnic University

Selected Diagnostics Companies in HKSTP

SanWa Biotech: IVD, ALiA (Array Based LED induced fluorescence ImmunoAssay platform, Lab-On-Chip (LOC) platform)

Amvet Biosciences: Animal genetic DNA testing

Arbele Biopharmaceutica (CUHK): Therapeutics for GI & lung malignancies

GemVCare (CUHK): Hong Kong based genetic testing target diabetes

Hai Kang Life: Lab-On-a-Chip (LOAC) - Platform detect target genes

BerryGenomics (Beijing): DNA sequencing technologies to prenatal & cancer clinical genetic test

HSK GeneTech (CUHK): Genomics and hi-throughput sequencing in Food Research and Core Facilities of Genome Research

KingMed Diagnostics: Medical diagnostics testing, clinical trial testing, medical research services and hygiene testing, molecular diagnostic techniques to detect, identify and quantify infectious agents

Living Tissues Company (HKU): Tissue Engineering Laboratory, Living Tissues use the donor's stem cells and grow a complex tissue plug

Selected Diagnostics Companies in HKSTP(Contd)

NanoBioImaging Ltd (UST): Super resolution microscopic bio-imaging

Novus Life Sciences (HKU): Orthobiologics, injectable biomaterial for minimal invasive surgery, biomaterials formulation in repairing bone and cartilage

OncoSeek(HKU): Cancer diagnostics for personalized cancer screening assays thru advanced biomedical technology, early and real-time screening of invasive cancer & personalized non-invasive cancer screening assays

Oper Tech (HKBU): Nanomaterial-based personalized medicine, nanomedicine: 1. Individualized stem cell therapy 2. Novel surgical technology 3. Nanodrugs 4. personalized medicine (2016 Grand Prix at 44th Geneva International Exhibition of Inventions Award)

Sonikure Technology (UST): Intravitreal injection for retinal diseases, deliver drugs in eye with low energy and low intensity ultrasonic technology

Xcelom(CUHK): T21 prenatal diagnostics, genomics technology for genetic sequencing innovations

Statistics of Local Diagnostic Cos.

Tot. 38 Cos currently in HKSTP

15 from local universities (40%)

CUHK (4, 27%), HKU(3, 20%), UST (2, 13%), HKBU(1, 7%)

CityU spinoffs not listed because they either graduated earlier or never admitted in HKSTP incubation/regular tenant program

Examples of Local High-Fliers

Prof. Dennis Lo (CUHK):

Arbele and Xcelom

Prof. Michael Yang (CityU):

Multigene Diagnostics Ltd., GenetelPharmaceuticals Ltd, Prenetics

Prof. Cheng, Shuk Han(CityU):

Vitargent (International) Biotechnology

Professor Lo Yuk Ming, Dennis (CUHK)

Director of the Li Ka Shing Institute of Health Sciences (CUHK)

Numerous publications in Nature & Science magazines among local academia (Pic 1)

Xcelom: Non-invasive Prenatal Test for Down Syndrome, 'safeT21' (sensitive analysis of fetal DNA for T21 screening) vs invasive procedures such as amniocentesis and chorionic villus sampling (0.5% to 1% chance of pregnancy miscarriage)

Arbele Biopharmaceutical: screening for signs of cancer from a simple blood draw

Professor Yang Mengsu,Michael (CityU)

Multigene Diagnostics Ltd., molecular diagnostics for early detection of diseases

Genetel Pharmaceuticals Ltd., DNA diagnostic technology (SNIPERTM-HPV early detection of the human papillomavirus, causes all cases of cervical cancer), Bio-sensor, DNA diagnostic technology for the early detection of cervical cancer

Technological Achievement Grand Award for cervical cancer diagnostic technology in the 2006 Hong Kong Awards

Prenetics: Next generation DNA testing, US $ 10M invested by Ping An Venture & run by Danny Yeung (ex-Groupon CEO), partner with Prudential Insurance

Professor Cheng Shuk Han (CityU)

CityU SpinOff: Vitargent (International) Biotechnology

Venture Investor: WI Harper Group

2014 Hong Kong Awards for Industries Technological Achievement Award

2015 Grand Prix at 43rd Geneva International Exhibition of Inventions Award

Technology: Patented first-in-the-world transgenic medaka and zebrafish fish embryo toxicity (FET) test

New global pdt safety std. detect toxin 24/48h

Home grown Bio-testing innovation

Hong Kong X-Tech Start-Up Foundation(16 July 2016)

Local Manufacturer From OEM to IPO

Vincent Medical (HKSE Code: 1612, 7/16 IPO) Medical Equipment & Services in Dongguan, Chairman Mr. Choi Man Shing(, 60 %)

IPO (July 2016) $1/share, Range $0.79-1.26, Mkt Cap HK $ 520M, revenue $ 448M, Net Profit $ 58M (15)

OEM for Bayer Medical Care(87%, Inspired Medical () own brand 13%) respiratory products (39%), imaging contrast media power injector disposable products (35%), orthopaedic (16%),rehabilitation (10%)

Disposable for deliver humidify gases to patients under ventilation/oxygen

2nd largest exporter of respiratory and anaesthesia disposables in the PRC

Critical successful factor: QA/QC, Certification, expand domestics (380 domestic distributors network) & overseas mkt (42 distributors), sterilisation for Med. Device, Hi/low margin pdts, move from OEM to OBM

Relation of Molecular Diagnostics to Other Technologies

Future Biotech Trend

More personalized, predictable, preventive medicine (3Ps)

Target therapies & molecular diagnostics

Concerns: drug safety, ageing population, bioterrorism, pandemics, healthcare cost

Best time for Biotechs and worse for big pharma

Successful factors, robust product pipeline and diversity

Whats driving Personal Medicine ?

New technologies (system biology)

Aging population (US, Europe, Japan, PRC)

Managed care/insurance, little room for me-to drugs due to cost, more drugs use vs expensive hospital care

Access to healthy foods i.e. health supplements

Obstacles for Personalized Medicine

Barriers between drug and device companies

Regulatory challenges

Bioethical questions

Patient privacy & insurance coverage for diagnostic tests

Screening tumors for cancer-related gene abnormalities

Cancer therapy will be guided by the particular set of genetic mutations within each patient's tumor.(Massachusetts Institute of Technology and Harvard University, Science Feb 13, 2007)

Example (I) Novel Design: Plastics Dish

Example of Novel Design: Bio-reactor Electronic & Mechanical

Example (II) Novel Design: Original Diagnostics Unit

Example of Novel Design: Renovated Diagnostics Unit

Example (III) Start-Up Biotech Co.

Example (IV): Anti-fouling Agent Market (Boat Bottom Paint, Marine Coating)

Apply to all vessels floating (anti-fouling agent 5% added to underwater paint)

Microbial attach/grow to bottom of vessel reduce speed, fuel cost, shipping time for cargo, vessel back to wharf for service every 3-4 years

Environmental concern: Copper not allow, biohazard to ocean wildlife

China gross tonnage 22,682k (14)

Example of Local Tech Transfer Anti-fouling Agent

PRC Ship Paint Market 2010/11

Estimate Fuel Consumption

Inhibition Effect for 3 Major Microbials

Is this a Drug ?

Example (V): Novel Med.Pdt Co.

Canadian Co. specialize in Anti-adhesion for post-surgical procedures

Natural extracts from sea-weed

FDA approved as medical devices instead of drug to avoid tedious & costly clinical trials & regulation

Performance-based Competitive Advantage:Rabbit Model of Surgical Adhesions

Control instillate

Uterine hornsfirmly adhered

ARCADTM Instillate

No adhesions

Uterus

Abdominal wall

Adhesions

2

Injury

Inflammation

Coagulation

Resolution

Proliferation

Surgical Adhesion Normal Healing3

0

4

6

8

ControlLRS

FucoidanInstillate

Adhesi

on s

everity

sco

re

*

8

10

12

14

16

18

20

2

0

1

2

3

4

Num

ber

of

adhesi

ons

*

5

6

7

8

9

10

ControlLRS

FucoidanInstillate

Fucoidan Instillate has Compelling Efficacy and Safety Data in Foal Model of Surgical Adhesions

Would you like to have this Check ?

Four Smarts

People

Ideas

Money

Alliances & partnership

Medical Device Successful Footprints

License a patent

Build a prototype

Finish a clinical trial

Sell the technology

Local Technology Transfer Consideration

1. Individual facultys research project

2. University Knowledge Transfer Office

3. Licensing agreement: sold off or royalty/profit split, risk ? University involvement ?

4. Split of interest: university, department, research team: faculty, research fellows, if any

Motto of Biotech

"There are only two kinds of biotech companies -- those that have had disappointments and those that will have disappointments in the future, the successful ones are those that work through their disappointments''

(Love, the chief executive, Nuvelo Pharma)

Do you have a role in this Biotech bandwagon ?

The Destiny is in our hands

Thank you !