Atlantic Canada’s Value Proposition

Re$earch Money Conference

November, 2007

Halifax, Nova Scotia

Atlantic Canada’s Value Proposition

Context to remarks• Understanding BioVectra Inc. and Diagnostic

Chemicals Limited• Our in-house research capabilities and focus• Our collaborations with Atlantic Canada

researchers and organizations• Our collaborations with Pharmaceutical and

Diagnostic companies

• Founded in 1970 by Dr. Regis Duffy

• Privately held and controlled

• DCL employs over 240 people in 3 countries

• Four manufacturing facilities plus administration headquarters in Canada; sales and distribution offices in the United States and Mexico

• Develops, manufactures and markets products worldwide

DCLandBioVectra

Prince Edward Island, Canada

• Manufacturing / Packaging

• Administration

• Research and Development

• Quality Control

• Regulatory Affairs

• Technical Services

Oxford, Connecticut

• Customer Services and Warehousing

• Field Sales and Technical Services

Mexico City, Mexico

• Customer Services and Warehousing

• Sales and Field Technical Services

DCL and BioVectra

Corporate OverviewRevenue 2003-2007

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2003 2004 2005 2006 2007

Revenue

DCL and BioVectraActual and Projected

Revenue

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2003 2004 2005 2006 2007 2008 2009

Revenue

Develops, manufactures and markets worldwide:

• Chemistry reagents for human and veterinary diagnostics

• Specialty / Niche chemistry reagents for human and veterinary diagnostics

• Immunochromatographic point-of-care assays

• Laboratory consumable manufacturing on a contract basis

Diagnostics

Provides services in:

• Contract Sales and Distribution

• Custom product formulations/manufacturing

• Lyophilization, dry and liquid blending

• Full kitting including dispensing and labeling

• Applications development / FDA filing

Diagnostics Strategy

R & D: External Collaboration

• Diagnostic companies with problem chemistries

• Universities with technologies in clinical chemistry

• Small firms or individuals with unique chemistries

Internal Activities• focus on product development

Diagnostics – keys to success

Focus on Manufacturing Excellence Unique Products Customer Service Human capital

A very good fit with Genzyme Corporation

• BioVectra is a cGMP manufacturer of APIs and advanced intermediates

• Fermentation• Bioextractions and purifications• PEG reagents & PEGylation services• Specialty biochemicals and

enzymes• Creating partnerships with others

utilizing our applied technologies to improve or enhance new and existing products

BioVectra

R & D: External collaboration

• Pharma and Biotech companies with unique problems

• Universities• NRC-INH• Drug discovery companies

BioVectra

R & D: Internal Activities

• PEGs ( a product used as part of the drug, to extend stability and improve performance )

• Taxanes – to gain an advantage in generic introduction of a semi-synthetic version of a major oncology drug

• New Drug Development program – a structure to invest in development of selected candidates

BioVectraKeys to Success:

• Focus on Manufacturing Excellence

• Unique Products• Customer Service• Human Capital

Atlantic Canada’s Value Proposition

North American strategic location

Good cost base for technical activities and manufacturing

Quality of life for employees is appreciated and creates loyalty

Low bureaucracy, ‘can-do’ attitude

Excellent public support climate Institutional support - NRC,

AVC, Universities

Atlantic Canada Value Proposition

Strong support and collaborative system in place; example - PEI BioAlliance

Canadian Business 2007 ranked Charlottetown as the 2nd best place to do business in Canada

Provincial Tax Incentives – Corporate tax, HR Recruitment support

ACOA Atlantic Innovation Fund (AIF) reduces product development risks

Some challenges

Experience base is limited among available labor Challenging to retain young mobile talent Must overcome perceptions of remote location – access

is an issue Removed from financial sources typically used by

competition

Atlantic Canada’s Value Proposition

Atlantic Canada can contribute to the national science and business goals

Think about it;• Strong university

environment• Well educated work force• Strong work ethic• Entrepreneurial spirit• Local government willing to

support economic innovation

Atlantic Canada’s Value Proposition

Some comments: Message to Governments –

“Atlantic Canada is stepping up” as a serious business contender in the science area

ACOA- AIF is an important tool for technology transfer and commercialization

Maintain and improve competitive tax incentives for science based businesses

Develop policies and incentives to attract world-class researchers and highly qualified personnel

Invest more in infrastructure and less on strategic forms

Atlantic Canada’s Value Proposition

This sector is an opportunity for Atlantic Canada to shine – We are committed to making this happen