Biotechnology 2005

Investment opportunities inSwedish BiotechnologyExcellence in all steps of drugdiscovery and development: 

Investment opportunities in Swedish Biotechnology Excellence in all steps of drug discovery and development

Sweden: A strategic research location: 

Sweden: A strategic research location ”Sweden offers the best climate for research and inno-vation in Europe, as well as the highest-quality workforce.” Cap Gemini Ernst & Young, EU Enlargement: Driving Change in the European Life Sciences Industry 2004

Europe’s fourth-largest biotech industryNumber of companies: 

Europe’s fourth-largest biotech industry Number of companies Source: Ernst & Young, "Global Biotechnology Report – The European Perspective", 2004

Rich history in life sciences: 

Rich history in life sciences The Nobel Prize award ceremony, held annually in Stockholm Astra Astra founded 1913, today part of AstraZeneca Global R&D headquarters in Södertälje Research HQ for gastrointestinal and cardiovascular research in Göteborg Research HQ for neuroscience in Södertälje Pharmacia Founded in 1911, today part of Pfizer Spin-offs: Pharmacia Diagnostics, Pharmacia Biotech (now GE Healthcare) Home of Karolinska Institutet Home of the Nobel Prize Eight Nobel Prize Laureates

Slide5: 

Research and Innovation

A world-leading investor in R&DTotal expediture on R&D, percentage of GDP, 2002: 

A world-leading investor in R&D Total expediture on R&D, percentage of GDP, 2002 ”A great place to access new technology, with good R&D management and skilled scientists.” Leon Bushara, Senior Executive Vice President, Corporate & Business Development, Serono Source: IMD, "World Competitiveness Yearbook", 2004

Leading Europe in biotech innovationScore, 2003: 

Leading Europe in biotech innovation Score, 2003 ”I am deeply impressed with the quality of Swedish research.” ”The ability to integrate basic and clinical research is exceptional.” Akira Ito, Senior research scientist, Sumitomo Pharmaceuticals Source: "Biotechnology Innovation Scoreboard 2003", European Commission

Internationally well regarded researchCitations in clinical medicine per 1,000 population: 

Internationally well regarded research Citations in clinical medicine per 1,000 population Source: The Lancet, Vol 363, 2004

Swedish research breakthroughsDrug development and biotechnology: 

Swedish research breakthroughs Drug development and biotechnology XylocainTM, local anestethics (Astra) Dextran, MacrodexTM, and RheomacrodexTM, blood plasma substitutes (Pharmacia) SalazopyrinTM, anti-inflammatory (Pharmacia) L-dopa (Arvid Carlsson) AptinTM, non-selective betablocker (Astra) Amipaque, nonionic x-ray contrast medium (Nyegaard & Co) Bricanyl, selective beta 2 stimulator (Astra) HealonTM, ophthalmic device (Pharmacia) SelokenTM, selective beta 1 blocker (Astra) Thromboxanes, (Bengt Samuelsson, Hans Bergström) PulmicortTM, cortico-steroid (Astra) FragminTM, low-molecular-weight heparin (Pharmacia) GenotropinTM, human growth hormone (Kabi Vitrum and Genentech U.S.) LosecTM/PrilosecTM, ulcer medicine (Astra) PlendilTM, calcium antagonist (Astra)  NexiumTM, proton pump inhibitor (AstraZeneca) NexiumTM, AstraZeneca

Swedish research breakthroughsMedical devices, diagnostics & biotech supplies : 

Swedish research breakthroughs Medical devices, diagnostics & biotech supplies Sephadex, gel filtration chromatography Pharmacia Biotech Artificial kidney Gambro IgE allergy diagnosis Pharmacia Diagnostics Respirator Siemens-Elema Implantable pacemaker Siemens-Elema Brånemark implant systems Nobel Biocare Gamma knife Elekta DNA sequencing technology Biotage Biosensors Biacore Next successes? Aerocrine, Affibody, Global Genomics, Olink Elekta Gamma Knife

Positive bioethical climate : 

Population positive to biotech research Easy to recruit patients for clinical trials Supportive legislation Positive bioethical climate

Infrastructure: 

Infrastructure

Unique public healthcare system catalyst in drug development: 

Unique public healthcare system catalyst in drug development Personal identity numbers introduced in 1947 Outstanding ability to track patients over time Collection of unique databases available for research; In-patient care register, Generation register, Swedish twin register etc. Register with 140,000 twins most extensive in the world Renowned MPA, Medical Products Agency Biobanks and tissue databanks

Six renowned medical universities Good skills supply: 

Stockholm: Karolinska Institutet, Royal Institute of Technology (KTH) Göteborg: Sahlgrenska Academy, Chalmers Institute of Technology Lund/Malmö: Lund University, Lund Institute of Technology, Malmö University Uppsala: Uppsala University, Swedish University of Agricultural Sciences (SLU) Linköping: Linköping University, Linköping Institute of Technology Umeå: Umeå University, Swedish University of Agricultural Sciences (SLU) Six renowned medical universities Good skills supply

Home to two of Europe’s finest clusters: 

Home to two of Europe’s finest clusters Stockholm/Uppsala and Medicon Valley each have more than 100 biotech companies

Strong in industry/academia collaboration: 

Strong in industry/academia collaboration Business collaboration with local universities in their R&D activity is 1 = minimal or nonexistent to 7 = intensive or ongoing Source: “The Global Competitiveness Report 2003–2004”, World Economic Forum.

“The best country to be a bioresearcher”: 

“The best country to be a bioresearcher” ”A culture of innovation breeds biotech start-ups.” ”The [Nordic] region has an enviable record not just of innovation but of wringing profits out of high-tech breakthroughs.” Newsweek, July 26, 2004

Biotech industry: 

Biotech industry

Industry focus: Drug development and biotech tools & supply: 

Industry focus: Drug development and biotech tools & supply Source: "Swedish Biotechnology", IVA/Vinnova 2003 Biotech firms, segment distribution

Strong product pipeline: 

Strong product pipeline

Industry achievements 2003/2004: 

Industry achievements 2003/2004 Carlsson Research 100 MUSD deal with Merck for lead compound in dopamin stabilizer field (Mar ’03) Medivir Licenses MV-310, alovudine, ph II compound for multi resistant HIV, to Boehringer Ingelheim. 138 MUSD (Jul ’03) Biovitrum Potential >500 MUSD license agreement with Amgen for BVT .3498 (11ßHSD1 enzyme inhibitors) for type-2 diabetes in phase IIb trials. (Aug ’03) Cellartis Collaboration agreement with Tanabe for embryonic stem cell research in the area of neural repair (Sep ’03) Index Pharmaceuticals 30 MUSD licensing deal with Serono on anti-inflammatory drug Kappaproct in phase II trials (Feb ’04) Orexo 22 MUSD. North American sales rights to Rapinyl, for management of breakthrough cancer pain, sold to Endo Pharmaceuticals (Aug’04)

A great location for R&D: 

A great location for R&D Source: Cap Gemini Ernst & Young, "EU Enlargement: Driving Change in the European Life Sciences Industry", 2004

Among top-6 receivers of FDI projects Distribution of 200 R&D projects in life science, 1997-2002: 

Among top-6 receivers of FDI projects Distribution of 200 R&D projects in life science, 1997-2002 Source: Cap Gemini Ernst & Young, "EU Enlargement: Driving Change in the European Life Sciences Industry", 2004

Sweden has a cost advantage: 

Sweden has a cost advantage Source: Mercer Sweden, Invest in Sweden Agency, 2004

Good reasons to invest in Sweden: 

Good reasons to invest in Sweden One of Europe’s largest biotech industries. Strong academic science base and pharma/biotech tradition. Companies cover all steps of value chain in drug development. Close links and collaboration tradition between industry, universities and public healthcare system. Cost-efficiency in R&D. Good access to skilled and experienced staff. Professional VC market, several dedicated pharma and biotech funds.

Investment proposal: 

Investment proposal

Strategic research collaborations: 

Strategic research collaborations “Sweden is among Europe’s most progressive biotechnology countries.” Scott Foraker, Vice president and Head of licensing activities, Amgen Foreign company/Partner Swedish partner Amgen (US) Biovitrum Boehringer Ingelheim (Germany) Medivir Danone (France) Probi Endo Pharmaceuticals (US) Orexo GlaxoSmithKline (UK) Medivir Lundbeck (Denmark) Neuronova Merck (US) Carlsson Research NIH (US) Cellartis Serono (Switzerland) InDex Pharmaceuticals Sumitomo Pharmaceuticals (Japan) Karolinska Institute Tanabe Seiyaku (Japan) Cellartis Wyeth (US) Karo Bio

Other recognitions: 

Other recognitions Home to MPA, Läkemedelsverket, the EU’s most frequently used medical body. Availability of unique health data registers. All of the world’s best-selling drugs have been tested on Swedish patients. European Center for Disease Prevention and Control (ECDC) placed in Stockholm.

Sweden preferred location for clinical trials: 

Abbott Alcon Allergan Amgen AstraZeneca Aventis Baxter Bayer Boehringer Ingelheim Bristol-Myers Squibb Eli Lilly Fujisawa Sweden preferred location for clinical trials “Big Pharma usually strive to register new drugs in the US, Europe and Japan at the same time. Sweden is an excellent choice for the European portion.” Christopher Round, Managing Director, Merck Sharp & Dohme (Sweden) GlaxoSmithKline Janssen-Cilag Johnson & Johnson Merck Novartis Pfizer Roche Sanofi-Synthélabo Schering-Plough Serono Wyeth Yamanouchi

Attractive destination for VC investment: 

Attractive destination for VC investment Sweden is among Europe’s largest recipients of venture capital in life sciences Several specialized VCs: Health Cap, H&B Capital, Innovationskapital, Investor Growth Capital, Scandinavian Life Science, etc. > 90 percent of the committed capital in the Healthcap IV fund originated with non-Swedish investors. Foreign VCs are present. Share of European VC investments in life sciences Source: European Private Equity & Venture Capital Association, Yearbook 2003

Sweden – some basic facts : 

Sweden – some basic facts

World’s largest recipients of FDI1999-2003, USD billion: 

* Figures for Belgium and Luxemburg are not comparable since the registered capital flows to a large extent are channeled to other countries. Source: Unctad, World Investment Report 2004 World’s largest recipients of FDI 1999-2003, USD billion

A diversified economyIndustry sector distribution of exports: 

A diversified economy Industry sector distribution of exports Of Swedish origin Source: Statistics Sweden. Figures for the period January to September 2004.

Home to leading multinationalsSweden’s largest companies, sales 2003: 

Home to leading multinationals Sweden’s largest companies, sales 2003 Volvo Group, automotive 174.8 Ericsson, mobile systems 117.7 Skanska, construction 132.9 Electrolux, household appliances 124.1 Skandia, financial services 75.4 H&M, clothing 56.6 Vattenfall, energy 111.9 SCA, pulp & paper 85.3 Coop, retail 86.0 Securitas, security solutions 58.9 SEK billion, 9 SEK = 1 EUR The Volvo YCC concept car, developed by an all-female team.

Among EU’s best innovation performers Innovation performance index: 

Among EU’s best innovation performers Innovation performance index Source: "European Innovation Scoreboard 2003", European Commission

Contacts & further information: 

Contacts & further information Biotechnology publication available for download at www.isa.se. ISA contact: Ylva Williams Director, Life Science Tel: +46 8 402 78 80 ylva.williams@isa.se ISA website contains wealth of information for investors

Slide37: 

Photos: www.imagebank.sweden.se Slide 1: Photographer/ ©: Neuronova Slide 5: Nobel Prize, Photographer: Henrik Montgomery ©: Pressens Bild Slide 6: Malmö public library, Photographer: Alex Brandell ©: Malmö Turism Slide 10: AstraZeneca Slide 11: Elekta Slide 12: Stem cell research, Photographer: Marie Ullnert ©: Pressens Bild Slide 13: Photographer: Ulf Owende ©:Bildhuset Slide 19: Photographer: Ulf Hinds ©:Stockholm Visitors Board Slide 27: Autumn colours Photographer: Håkan Sandbring ©: Position Skåne / sydpol.com Slide 32: Children on beach, Photographer: Håkan Sandbring ©: Position Skåne / sydpol.com Slide 35: Concept car, Volvo Cars