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EuropaBio’s Most Innovative BiotechSME AwardsOctober 2, 2013Brussels, Belgium

G. Steven BurrillChief Executive Officer

Burrill & Company

Biotech In 2020: Is Europe Still Relevant?

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What’s Ahead for Europe?

• Can European life sciences companies gain access to capital they need?

• Is European Big Pharma leading or following today?

• Will austerity quash innovation?

• Will price pressures in Europe cause companies to focus on other markets?

• Will price pressures in Europe force companies to focus on developing products with true value?

• Will resistance to GMOs delay progress for European companies?

• Will Europe serve as a model on regulation? Healthcare?

• Does Europe still matter?

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Healthcare:

A Menu Without Prices

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Healthcare:

Procedures

Cost

Outcomes

Value

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• Layoffs slow but so is hiring

• Housing market hot again

• Sequester takes effect

• Debt-ceiling battle ahead

• U.S. Federal Reserve’s policy for continued economic support uncertain

• Fed more pragmatic than doctrinaire… helps sustain a growing economy(rather than sharply higher interest rates)

• Capital goods purchases increase; consumer confidence building

• Economic growth is real but

Economic Signs in U.S. Show Some Improvement

Austerity is still the watchword of the day

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Plenty of Mixed Signals Internationally

• Eurozone economy declines for six consecutive quarters

• German economy will grow at a slower pace than previously expected this year and next

• China’s manufacturing numbers shrink

• International Monetary Fund trims global gross-domestic-product growth forecast to 3.1 from 3.3 percent

• Japan recovery well underway

• Rising middle class globally is spending money

• Economic sentiment indicator in the E.U. rose above its long-term average for the first time since July 2011

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Globally Markets Are Improving And Capital Is Available

•Major indices hit record highs

•Life sciences first andinformation technology second inIPO performance

•Half of executives in 50 country surveysay credit availability improved versusone year ago.

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For the first time, the advanced economies, including:

JapanThe United StatesEurope

Source: Bridgewater Associates

collectively contribute more to growth in the $74 trillion global economy than the emerging nations, including:

ChinaIndiaBrazil

Emerging Markets Losing Steam

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Mixed Global Life Sciences Financings Since Last SME Awards

In USD M

Source: Burrill & Company

Type10/1/11-9/30/12

10/1/12-9/30/13 Change

Global Venture Capital 11,726 12,319 5.1%

IPOs (56 vs 37) 2,308 6,391 176.9%

Global PIPEs 4,616 4,703 1.9%

Global Follow-ons 6,157 13,792 124.0%

Global Other Equity 2,726 1,067 -60.9%

Global Debt Offerings 51,947 53,642 3.3%

Global Other Debt 13,993 8,813 -37.0%

Total Global Public Financings 81,747 88,346 8.1%

Global Partnering 39,373 36,759 -6.6%

Total 121,120 125,105 3.3%

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Biotech Outperforms Major Indices Since Last Year’s Awards

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Burrill Small-Cap Index

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And Small Companies Also Doing Well

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2012 (16 total) 

Raised vs. Target -5.2%

Price vs. Target -23%Shares sold beyond Target 31%

Change as of 9/26/13 76%

2013 (37 total)

Raised vs. Target 11.4%

Price vs. Target -9.8%Shares sold beyond Target 27.5%

Change as of 9/26/13 61.3%

With Record U.S. Life Sciences IPOs in 2012 and 2013

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Life sciences markets are hot

(…in some places)

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IndexPrice 9/20/2012

(USD)Price 9/20/2013

(USD)Percent Change

DJIA 13,597 15,451 13.6%

S&P 500 1,460 1,710 17.1%

Nasdaq Composite 3,176 3,775 18.9%

Nasdaq Biotechnology 1,498 2,194 46.5%

NYSE Pharmaceutical 369 438 18.7%

NYSE Biotechnology 1,585 2,217 39.9%FTSE 350 Pharma/Biotechnology 9,768 11,060 13.2%

Euro STOXX 50 2,553 2,927 14.7%

Germany DAX 7,389 8,676 17.4%

Swiss SMI 6,556 8,105 23.6%

Not All Global Markets Up As Much As Biotech in the U.S.

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European Life Sciences Companies Financing by Debt

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Company Market Cap (USD Billions)

Closing price (USD) 9/26/13

85.0 $113

96.1 $63

57.8 $243

77.3 $47

55.8 $51

40.6 $52

206 $267

171 $77

Some Big Biotechs Surpass Big Pharma

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• Global climate change, sustainability of the planet

• Clean water

• Energy security, energy self-sufficiency

• Food security and food production

• Wellness

• Emergence of new viruses to which we are not immune

A Host of Problems Face the World

The life sciences industry has the tools to develop solutions

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The Impact of Urbanization, Longevity and Better Lifestyles

Pakistan

Japan

Egypt

Indonesia

Mexico

Russian Federation

Brazil

USA

India

China

0 10 20 30 40 50 60 70 80 90 100

Top 10 Countries/Territories for People with Diabetes

More than 371 million people have diabetes.

Source: International Diabetes Foundation

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Non-Communicable Diseases Take a Growing Toll Worldwide

• Account for 63% of deaths worldwide• Cost more than $30 trillion over the next 20 years• Cause nearly 80% of deaths in low- and middle-income countries

Source: World Economic Health Forum and the Harvard School of Public Health; World Health Organization

30%

13%

9%2%7%

30%

9%

Cardiovascular Diseases

Cancer

Other Chronic Diseases

Diabetes

Chronic Respiratory Diseases

Other Conditions*

Injuries

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Half of Deaths from Diabetes Are In the Under 60 Age Group

and in 2012 alone 4.8 million people died worldwide due to diabetes

Source: International Diabetes Foundation

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Hepatitis C: A Silent Epidemic

One of every 33 baby boomers are infected with hepatitis C

- Centers for Disease Control and Prevention

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Healthcare Cost Rapidly Increasing Not Only in the U.S.

Source: PricewaterhouseCoopers Health Research Institute

Health Costs as a Percent of GDP

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19

17

15

13

11

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U.S. OECD outside of the U.S.

2010 20142012 2016 202020182006 2008

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Spending Does Not Equate to Quality

U.S. spends two-and-a-half times the OECD average

Source: OECD Health Data 2012

1. In the Netherlands, it is not possible to distinguish the public and private share related to investments.2. Total Expenditure excluding investments

Per

cap

ita h

ealth

care

ex

pend

iture

s in

US

D

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As Costs Rise, Governments Demand Value for Their Money

• Germany’s drug pricing law AMNOG

• U.K.’s National Institute for Health and Clinical Excellence

• U.S.’s Independent Payment Advisory Board

• India’s Department of Pharmaceuticals

Cost-based systems become value-based

Pricing pressures will alter pharmaceutical development strategies

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Same pressures on healthcare driving

pressures on agriculture and energy

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The Biogreentech Opportunity

Opportunities within the agricultural and cleantech sectors that apply biotechnology and associated technologies, such as chemistry, biomaterial science and nano-technology to:

• Enhance productivity

• Enhance sustainability

• From agriculture to renewable chemicals

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Source: FAO 2008, Food Vs. Fuel, Frank Rosillo-Calle and Francis X. Johnson editors

Biofuel Crops, Feedstocks, and Fuels

Food vs. Fuel: Food Crops Used for Fuel

ETHANOL

BIODIESEL

FERMENTATION AND DISTILLATION

EXTRACTION AND ESTERIFICATION

SACCARIFICATION, FERMENTATION, AND

DISTILLATION

SUGAR CROPS

SUGAR CROPS

SUGAR CROPS

SUGAR CROPS

• Sugarcane• Sugar beet• Sweet sorghum

• Maize• Wheat• Barley

• Rye• Potatoes• Cassava

• Switchgrass• Miscanthus• Willow

• Poplar• Crop stover

• Rapeseed• Oil palm• Soybean

• Sunflower• Peanut• Jatropha

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EU Fourth for New Biorefineries

Projected Biorefineries by 2025

Source: Biofuels Digest

U.S.

Brazil

E.U.

India

China

Other EMEA

Other Asia-Pacific

Other-Americas200

130

60

40

4060

135

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Evolving Business Models Move to Bio-based Chemicals

Chemicals are a nearer term opportunity compared to fuels

• Smaller scale and volumes

• Lower capex requirements

• Less biomass required

• Better economic margins

• Market pull from the consumer product industry

• Access to ready partners

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A convergence oftechnology withhealthcare and biogreentech

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Convergence with IT Creating A New Healthcare Model

Passive / active data collection

Analytics and network architecture

Electronic medical record / patient medical record

Performance and outcomes analysis

Integrated technology platforms

Data miningand integration

services

Increasingly targetedcare and efficient

use of finite resources

Consumers

Healthcare IT

Diagnostics/Devices

Therapeutics

Patients

Services for

Integrated

Care

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Emerging Technologies Create New Possibilities

New digital technologies provide powerful weapons in the arsenal against disease

• Remote patient monitoring systems

• Mobile early interventions

• Health consumer wellness apps

• Genomics and personalized therapies

• Data analytics for improved patient AND provider outcomes

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A New Future Drives the Bio-economy

• Productivity• Reliability• Quality• Integration of native and biotech traits

• Pest protection• Stress alleviation• Superior nutrient use • High nutrient density• Processor efficiency

• Pest control• Nutrition• Growth regulators

Microbes and biofilms / chemicals

Breeding traits Genetic traits

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New Forms of Medical Intervention in Development

Implants

Brain stem implant in deaf 3 year-old turns data from a

receiver into sound

3D printing of trachea to maintain

airway function

Biomonitoring technologies and

implants

Human-computer interfaces

Self-regulating drug delivery technologies

Artificial organs and

exoskeletons

Mind-controlled prosthetics

Patient monitoring

Digital pills for medication adherence

Mobile apps remind patients and reduce

provider costs

Ingestible sensors report back to physicians for improved care

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Europe pushes the envelope

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Gene Therapy Advances in Europe

• UniQure’s Glybera wins regulatory approval

• Rescues lipoprotein lipase deficiency

• Relies on adeno-associated virus serotype 1

• EMA grants first approval for a gene therapy in the western world

• Approval for exceptional circumstances only and requires outcomes reporting

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Europe A Leader In Using Sequence Data

To Advance Understanding of Ourselves:•Single-stranded library preparation at Max Planck Institute for Evolutionary Anthropology, Germany

•Reconstruction of the genome by sequencing DNA from frozen finger fragments

•Advances knowledge of our evolutionary past

To Advance Rapid Interventions:•Practical application of whole genome sequencing by Sanger Institute, Britain and Addenbrooke’s Hospital, Cambridge

•First case of rapid whole genome DNA sequencing to lead to intervention of an infectious disease outbreak

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Europe Provides Innovation to Pharma and Biotech

•Oxford-based Immunocore

•Key platform technology todevelop immune mobilizing monoclonal T cell receptors against cancer, or ImmTACs

•GSK will pay more than $5 million USD total to gain access to treatments for cancer and other diseases

•Genentech will pay between $10 million and $30 million USD each for new cancer immunotherapy

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Company CountryAcademia/ NonProfit Reason

Affimed Therapeutics Germany

The Leukemia & Lymphoma Society

AFM13, antibody against human CD30 and CD16A for Hodgkin’s lymphoma

AstraZeneca UKNEOMED (Canada)

AstraZeneca’s 250,000 high-quality small molecule compounds library

Bayer Healthcare Germany Broad Institute

Bayer’s oncogenomics and drug discovery

Evotec Germany Yale UniversityEvotec's drug discovery infrastructure

Evotec GermanyHarvard University

Evotec's drug discovery infrastructure for antibacterials

Evotec GermanyHarvard Stem Cell Institute

Evotec's drug discovery infrastructure for amyotrophic lateral sclerosis

United States Reaches to Europe for Innovation

Source: Burrill

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Company CountryAcademia/ NonProfit Reason

Ipsen FranceHarvard University

Ipsen’s drug discovery and R&D expertise for botulinum toxins for the treatment of neurologic diseases

Karolinska Institute Sweden Mayo Clinic

Karolinska Development to evaluate Mayo Clinic innovations

LEO Pharma Denmark

US National Psoriasis Foundation

LEO Pharma's psoriasis care solutions

to-BBB technologies Netherlands

ALS Therapy Development Institute

BBB's CNS-targeted liposomal drug delivery system

United States Reaches to Europe for Innovation - cont

Source: Burrill

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Company CountryAcademia/ NonProfit Country Reason

ICON Ireland

National Taiwan University Hospital Taiwan

ICON set-up and management of clinical studies in Taiwan

QuantuMDx UK

A*STAR: Genome Institute of Singapore Singapore

Asia-specific point-of-care genetic tests for use with QMDx’s handheld device

Roche SwitzerlandInstitute Pasteur Korea

South Korea

Discover and develop drug candidates for infectious diseases

Servier France A*STAR Singapore

Discover and develop compounds for cancer and autoimmuine diseases

Asian Governments Look to Europe Too

Source: Burrill

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And Europe Leverages China’s Power

• BGI Europe in Denmark and the LUCAMP initiative, a collaboration with 9 Danish universities/institutes

• Focus on the human genome and the gut microbiome to understand variations in metabolic and cardiovascular disease

• To improve the health of at-risk populations

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2018 Rank

Company Country Global Spending (USD M)

Increase 2012- 2018

(USD M)2012 2018

1 Siemens Germany 1,706 2,023 317

2 J&J USA 1,681 1,899 218

3 Medtronic USA 1,557 1,823 266

4 Abbott Laboratories USA 848 1,280 432

5 Philips Netherlands 1,032 1,180 148

6 Roche Sweden 1,009 1,157 148

12 Stryker USA 471 616 145

13 Becton Dickinson USA 472 591 119

16 Essilor International France 208 340 132

17 Novartis Sweden 285 335 50

19 B. Braun Melsungen Germany 246 329 83

20 bioMerieux France 217 272 55

Healthy Medtech R&D Spending in Europe

Source: EvaluateMedTech

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A leader in public-private initiatives to solve big problems that hamper

innovation and productivity in drug

development

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Working together to overcome obstacles

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The European Lead Factory

• European public-private partnership that seeks to speed translation of academic research into innovative therapies

• 30 international partners, including 7 European Pharmas and 13 E.U. Universities

• Founded by Innovative Medicines Initiative

• Provides public partners with industry-like discovery platform

• Unifies 500,000 small molecule compounds into a Joint European Compound Collection for drug discovery screening

• $261.9 million (€196 million) effort

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Company CountryAcademia/ NonProfit Country Reason

Abcodia UKAustrian Institute of Technology Austria

Biomarkers for early detection of lung and colorectal cancers

Almac Discovery Ireland

Queen's University Belfast Ireland

Accelerate cancer-focused drug discovery in Northern Ireland

AstraZeneca UK Karolinska Institute Sweden

Center for preclinical and clinical research for cardiovascular and metabolic disease

AstraZeneca UK

Univ. of Cambridge; Cancer Research UK UK

Identify changes in tumor cells and test drug combinations

Janssen R&D Ireland PATH IntlDevelop pre-exposure prophylaxis against HIV infection

Sanofi France Curie Institute FranceLarge collection of cryopreserved tumor samples at Institute Curie

Select European Government and Non-profit Initiatives 2013

Source: Burrill

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Public-Private Partnerships to Advance Biogreentech

• THANAPLAST private-public consortium: one of the largest projects in plastics technology

• Private partners include lead company Carbios, specializing in new approaches for recovering plastic waste and producing biopolymers

• Public partners are National Center for Scientific Research (CNRS) and Poitiers University

• Funds €3.2-million collaboration to develop new plastics technologies

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Healthcare Solutions Redefined

Treating sickness with:DrugsDevicesDx

Promoting wellness with:Patient managementHealth incentives Individual and

efficient treatments

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Global Initiatives to Engage Patients Worldwide

Improve patient outcomes globally through interactive web application for patients and doctors

Enhances the patient experience via U.K. consumers main point of contact:their pharmacist

Digital health diabetes self-management program using digital coaching and wireless glucose meter to transmit data to clinical monitors

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Challenges and Opportunities for Europe

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European Regulators More Proactive than U.S.

• U.S. contract research organization, Cetero Research, found to have falsified pre-clinical and clinical trial data

• Nearly 100 U.S. for drug approvals, ranging from blood thinners to chemotherapeutics and painkillers, relied on the falsified data

• European Medicines Agency recalled seven of the drugs, but the U.S. Food and Drug Administration has done little to address the problem

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Unified Patent Protection Still Uncertain

• Unified patent system is designed to cut costs and eliminate burdensome filing procedures

• Will provide uniform legal protection in 25 European countries 

• In 1973, the Munich Convention created a unified community patent, but it was never adopted

• Attempts again in 1989, 2000, proposal tabled in 2011

• Current agreement takes effect January 1, 2014 or after thirteen contracting states ratify it, provided that the signatories include the United Kingdom, France, and Germany

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Uncertain Future for Med Devices

• European Parliament committee proposes U.S.-style premarketing approval system with randomized clinical trials for implantable devices

• Will be controlled by the European Medicines Agency

• In response to breast implants made in France with industrial-grade silicone used by hundreds of thousands of women around the world

• E.U. trade group Eucomed says it will delay patient access to lifesaving medical technology and deliver a devastating financial blow to Europe's 25,000 small and medium-sized device makers

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Offsetting Stagnation in Europe by Global Arbitrage

Companies look to emerging markets:

• Amgen acquires Turkish drug maker Mustafa Nevzat

• Teva Pharmaceutical opens $110 M plant in Hungary

• Novo Nordisk hiring in emerging markets, including Ukraine

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The Potential For Cell Phones As Partners in Health

•Out of the world’s estimated 7 billion people,6 billion have access to mobile phones

•Kaiser Permanente’s 9 million members aroundthe world have 24/7 access to their medical informationvia free apps

•Healthcare app downloads expected to be 142 millionin 2016

•The benefits of mobile:– Personal and immediate– Context aware; acts as a sensor– Distributes instant rewards

Source: International Telecommunication Union

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•Nearly 70 percent of adults use a social networking site like Facebook, Google+, LinkedIn

•Nearly 60 percent of physicians think social media is engaging, beneficial, and a good way to get current high-quality information

•Physicians in Europe, particularly in Italy and France, are the most conservative in use of public social media sites, medical community sites, or the internet for professional networking, compared to physicians in the emerging markets or U.S.

Source: Physiciandesign.com and Cegedim Strategic Data

Social Media for Patients And Providers: Global Access

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The need for innovation

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Innovate or Die

• Kodak

• Nokia

• Vinyl records 8 track tape CDs iTunes cloud

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Why Is Innovation Important?

•Global competition

•Sustainable economicgrowth

•Enhanced shareholder(and societal) value

•Faster, smaller, cheaper, more mobile

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Faster

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CellScope for Rapid And Remote Diagnosis of Infections

• Attachable devices turn smartphone into a microscope

• Transmits high-magnification diagnostic-quality images to physician for remote diagnosis and treatment

• Smart Otoscope for ear infections

• Smart Dermascope for skin infections

• No need to make an appointment with the doctor

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Smaller

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New Products Connect Patient Data to Doctor for Feedback

Applications that report data to individual and doctor

Use: Improve compliance, provide early interventions, collect better quality data

Glow Caps Zio Patch

ComplianceLong-term

cardiac monitors

ViSi Mobile

 Wireless platform forvital signs monitoring

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Cheaper

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Save Money on Prescriptions

•Prescription Saver searchesfor the prices of prescription drugsat local pharmacies

•App makes it easy to find the nearest pharmacy, get directions, click to calland save the pharmacies in favorites

•Share savings through Facebook, Twitter, and email Phunware

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• Digital diapers from Pixie Scientific

• Detects possible urinary tract infections, kidney dysfunction, dehydration

• Accompanied by smartphone app that transmits the information to a physician

• Intended to help in screening for disease so subject to regulation by the FDA; require clinical trials and 510(k) approval

• Crowdfunded through

Smart Diapers Connect Data

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Allow Elderly to Live Independently Longer

•Remote patient monitoring

•Smart sensors for senior livingcommunities

•Wellness surveys, brain fitness games,medication compliance reminders keepmembers engaged

•Simple, secure interface to interact onlinethrough a private social network to promotephysical, social, and mental health

•Helps staff monitor seniors’ wellness and identify potential problems early

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Innovation Takes Two Principal Forms

• Brave new world of new ideas, new products, new industries– Fax– GPS– Email– iPhone

• Better, faster, cheaper modifications to existing products with new features/new industries

– US mail FedEx– Crops with new traits– Microsoft Office cloud computing

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Strategies for Promoting Innovation

• PROVIDE THE FOUNDATION - Promote innovative culture– Executive commitment– Mission statement– Reward it

• TECHNICAL CAPABILITIES - Establish internal research & development – Time– Financial resources– Leverage others R&D

• LEVERAGE OTHER’S IDEAS AND $$ - Acquire or partner for innovation

• KEEP THE INNOVATION WINDOW OPEN - Engage with venture capital

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The Necessity of Building A Culture of Innovation

“I can’t do it all. I don’t have all the ideas.That isn’t my job. My job is to builda culture of innovation. That’s somethingthat we try to enforce.

We encourage it.We value it.We notice it.We compensate for it.We require it.”

Salesforce FounderMarc Benioffto Forbes Magazine

Number 1 on Forbes Most Innovative Companies list in 2011, 2012, 2013

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Innovation Can Be Acquired

“I’m willing to acquire a company thatmight not have a lot of revenuebut has a lot of innovation.

We’ll take innovation any wayyou can give it to us. … I don’t care if it’s my idea, an employee’s idea, a competitor’s idea, a partner’s idea or some other associate’s idea.”

Marc Benioff,Salesforce Founder

Source: Forbes

Salesforce has spent nearly $4 billion since 2011 buying smaller software firms

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Innovating Into New Markets

•Microsoft acquires handsetand services business of Nokiafor $7.2 billion

•Consumers moving away fromlow-end mobile phones,Nokia’s lead product

•Microsoft needs mobile device for software

•Hope is to reduce intellectual property conflicts and increase agility of unified company

• Innovate by increasing efficiencies

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Innovation By Integration

•New uses of existing technologies

• Integration of existing technologies for new applications

•Big data convergence

– Robotics

– Synthetic biology

– Biocontrol

The key is integration of innovation,not just new science or technology

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Applying Technologies from Human Health to Agriculture

•Repurposes health technologies for agricultural use

•Acquires RNAi technologies

•Moves towards “point-of-care” gene sequencing

•Consistently present on Forbes’ innovative companies list:34th in 20139th in 201210th in 2011

•In 2013 number 14 on Great Place to Work Institute’s Top 25 world’s best multinational workplaces- the only ag company in the award’s second year of existence

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Innovate By Capturing Value Outside the Product

Amazon:Builds cloud computing business

Google:AdWords pay-per-click advertising

Facebook:Establishes gifts program

Twitter:Charges for promoting tweets and trends

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Life Sciences Companies Doing the Same

23andMe

• Business focused on selling DNA analysis for ancestry and health data

But finds value outside product:

• Company wins patent for polymorphisms associated with Parkinson’s disease

• Hired by Genentech to enlist breast cancer patients in a study to predict which patients benefit from the use of Avastin

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All bring valueto healthcare

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Promotes wellness/improves

outcomes

Prevention

Early intervention

Behavior modification

Treats illness

Targetedtherapies

Rx/Dx combos

Pharmacogenetics

A Transition from Illness to Wellness

Genomics

Diagnostics

Digital health

Bioinformatics

Treating Symptoms Promoting Health

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Changing Roles of Doctors

• Health advisors

• Data driven decisions using

health IT and diagnostics

• Focus on prevention and

wellness

• Integrated with specialists,

labs, and pharmacists

• Unquestioned authorities

• Trial and error approach

• Treat disease

• Disconnected from others

in the healthcare system

Past Future

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Changing Roles of Patients

• Active managers of their healthcare

• Armed with knowledge of genetic risks

• Have access to their own digital health records

• Rely on Internet, social networks, for medical information

• Monitor health and wellness with digital devices

• Passive about their healthcare

• Armed with family history

• Relied on doctors to maintain health records

• Relied on doctors as primary source of medical information

• Received annual check-up

Past Future

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Healthcare Systems Are Changing Globally

Past Future

• Acute care • Chronic care (to wellness care)

• People = dying patients • Systems / Software

• Place = hospitals • Consumer digital health

• Payment = Cost-based care • Value-based care

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Technology Is Changing Dysfunctional Sickness Care…

…to personalized, predictive, and preemptive medicine

• Treat sick people effectively and well people preemptively

• Treat the molecular mechanisms of disease rather than the symptoms

• Deliver the right drug at the right dose at the right time to the right patient, for the right cost!

Shifting towards integrated care of higher quality at lower costwould benefit everyone, everywhere

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A Shift in Emphasis

Medical care system

Primary/pre-primary care system

Primary and pre-primary

care

Medical care

From treating illness To promoting wellness

85

But Innovation Is Not Enough

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Value Creation Is Different Than Value Capture

Value Creation-customer perspective-

more for less

Value Creation-company perspective-

higher value productsgreater profits

Value Capture-everyone's perspective-

what payers will pay for

Targeted therapies

Rare diseases

Unmet medical needs

Faster regulatory path

Less competition

High margin products

Dominant market share

Broad markets

Reduced competition

Generics

OTC products

Biosimilars

Cheaper products

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Why Europe Matters

• Big important market

• Still a source of innovation

• Ahead of U.S. on some policy issues

• Range of approaches to healthcare challenges being faced

• Integrating cost-effectiveness into pricing

• Financing remains difficult in Europe - companies forced to seek capital elsewhere

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What Can Others Learn from Europe

•Collaborative efforts to promote innovation and answer the big questions in healthcare

•Leverage global resources

•Innovative government funding strategies

•Market size of Europe is still significant and companies shouldn’t ignore it

•Ahead of others in applying cost effectiveness: companies will need to learn to live in a world of NICE/AMNOGS

•As healthcare systems try to improve quality and reduce costs, there are successes in Europe that provide models to others

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Where Are the Biggest Opportunities

•Transformational healthcare delivery

•Disruptive therapeutics / vaccines / diagnostics…each with a special

pathway to market

•Personalized and predictive medicine

•Medical devices / platforms / tools

•Data analytics

•Digital health

•Significant opportunity to address global needs for food, energy, fiber

•To address societal needs, investments are needed not only in

technology development but also infrastructure for deployment

•Emerging market opportunities / global arbitrage

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The very best opportunitiesin Life Sciences are now.

Go for it!

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EuropaBio’s Most Innovative BiotechSME AwardsOctober 2, 2013Brussels, Belgium

G. Steven BurrillChief Executive Officer

Burrill & Company

Biotech In 2020: Is Europe Still Relevant?