Santaravalley: Integrating scientific research, high-tech business and academia Prof. Vladas Algirdas Bumelis President of Santara valley Association Vilnius, Lithuania 2013July 18 th Santara Valley Association 1

Agenda What is Santara valley? Integration of high-tech business and public research New developments in Santara valley in 2011-2014 Lithuanian life science industry Asociacija Santaros slėnis 2

Agenda What is Santara valley? Integration of high-tech business and public research New developments in Santara valley in 2011-2014 Lithuanian life science industry Asociacija Santaros slėnis 3

What is Santara valley? 1. Santarais a cluster of business, science and education institutions being developed on an integrated territory through State development program together with private investments 2. Santaraemerged as a competence centrein following science and technology areas: Biotechnology and biopharmaceuticals Innovative medicine technologies Ecosystems and sustainable development IT and clean-tech 3. Santarascientific research and high-tech industries generates about 4.4 percent of country s GDP 4. Santaravalley development program is executed by Ministry of Economy and Ministry of Science and Education with 73.2 MEUR of funds allocated to 7 projects Santara Valley Association 4

Santara valley association 1. Santaravalley association was established in 2010 to coordinate development of valley and create viable link between science and business 2. Santaravalley association consolidates more than 30 institutional members (direct or affiliated): Research institutes: Nature Research Centre, Innovative medicine centre, Biotechpharma Universities: Vilnius University, Vilnius Gediminas Technical University Vilnius Municipality and Visoriai Information Technology Park Medical centresand hospitals: SantariskesHospitals, Northway, Institute of Oncology High-tech Business: Pharmaceutical, IT and biotechnology companies 3. Ministry of Economy and Ministry of Science and Education directly participate in Santara valley strategic management on Board level Santara Valley Association 5

Agenda What is Santara valley? Integration of high-tech business and public research New developments in Santara valley in 2011-2014 Lithuanian life science industry Asociacija Santaros slėnis 6

A balance between high-tech business and public research SicorBiotech (TEVA) production centre Technology park (VITP) Nature Research Institute Vilnius University faculty (IT) Biotech business INCUBATORS BIOTECHPHARMA R&D centre BOD Solar cells technology centre MOOG Medical Devices centre Medical research institute (IMC) Vilnius University Hospital Institute of Oncology - Public research and healthcare infrastructure - Private research and manufacturing infrastructure

Agenda What is Santara valley? Integration of high-tech business and public research New developments in Santara valley in 2011-2014 Lithuanian life science industry Asociacija Santaros slėnis 8

New developments in Santara valley in 2011-2014 Key infrastructure development projects: Innovative medicine centre (IMC) Biotechnology business incubator BIOTECHPHARMA private R&D centre MOOG Medical Devices development centre BOD Group production and technology centre Asociacija Santaros slėnis 9

Innovative medicine centre (IMC) The result of merger of two state owned research institutes with extensive track record in biomedical research: Regeneration medicine Immunodiagnostics and immunotherapy Biopharmaceuticals Innovative healthcare services development 15 MEUR capital investment to create modern research infrastructure: 8000 sq. m. building with open access laboratories Enabling new fields of cooperation with industry: Stem cells research Immunotechnology and Biomarker research Biopharmaceutical research and drug development Biomedical information systems development Biomodels development and preclinical research Digital and molecular pathology Santara Valley Association 10

Biotechnology business incubator Bio-business incubator will focus on biotechnology and biomedicine start-ups and facilitate use of common laboratory infrastructure in Santara valley Project partners are Innovative medicine centre, SantariskesHospitals and Association of innovative medicine and biopharmacy 2.8 MEUR investment will create more than 3000 sq. m. of bio-incubator space The project hastwosites SantariskesHospitals campus and Visoriaibusiness park to capture opportunities both in biotechnology and biomedicine areas and benefit from proximity of large research centres Santara Valley Association 11

BIOTECHPHARMA global biopharmaceutical services centre 22 MEUR investment to build contract R&D service centre for: development of recombinant protein technologies development of drug products for clinical research manufacturing of experimental drug products according to EU and US cgmp standards Biotechpharma is a globally competitive R&D service company Sales are dominated by R&D services export to global biotech and pharma companies Total sales are projected to grow from 2.7 MEUR to 22.5MEUR in 2013-2015 Employee growth from 60 to 100 Biotechpharma was granted a private research institute status by Ministry of Science and Education in 2013 Santara Valley Association 12

BIOTECHPHARMA milestones 2004 BiotechpharmaUAB established as a proteomic research company in Vilnius, Lithuania 2007 Biotechpharma commenced biopharmaceuticalr&d activities and started to develop recombinant protein technologies 2011 new biopharmaceutical R&D center was opened for contract research and development services 2012 cgmp-compliant biopharmaceutical manufacturing facility was completed 2013 Multinational cooperation with biotech and pharm companies 2004 2007 2012 Asociacija Santaros slėnis 13

BIOTECHPHARMA field of expertise Biopharmaceutical manufacturing technology development Innovative and biosimilar products Material supply for Clinical Trials Proteins derived from bacterial and mammalian cell lines Analytical methods development Protein structure research Asociacija Santaros slėnis 14

MOOG Medical Devices global medtech development centre An investment of MOOG Corp. (USA) to establish global technology centre for development and manufacturing of medical devices: Core competences of the centrewas established through acquisition of Lithuanian medtech company UAB Viltechmeda Over 20 years the company became leader in medical devices R&D and manufacturing Viltechmeda syringe pumps are being widely accepted on global medical devices market This project was the first greenfield investment (FDI) project in Santara valley receiving financial support directly from Lithuanian government Currently, the company is aimed to reach 10 MEUR in export sales in 2013 and grow to over 100 employees Santara Valley Association 15

BOD Group high-tech business centre 36.0 MEUR investment to build up state-of-the-art technology centre: Solar energy cells and devices development and manufacturing Optical storage media manufacturing Digital content development and anti-piracy technology development BOD Group new centreis aimed to reach 49.0 MEUR sales in 2014 Together with BOD Group facilities other well known high-tech companies are moving to Santara valley territory: Molecular diagnostics company Sorpo Laser optics and optomechanicscompany Altechna Other technology companies: Kemek Engineering, Singulus Technologies AG Santara Valley Association 16

Agenda What is Santara valley? Integration of high-tech business and public research New developments in Santara valley in 2011-2014 Lithuanian life science industry Asociacija Santaros slėnis 17

Life Sciences in Lithuania today Lithuania s life sciences industry demonstrate 22% annual growth within the biotechnology and pharmaceutical sectors Two decades of industrial leadership makes it the most advanced in Central and Eastern Europe Over80% of biotechnology production is exported to > 70 countries Annual average export growth 16.1% (average export growth of total Lithuanian origin goods 10.2%) Key strengths rely on competences in fields of: Pharmaceutical proteins Chemistry of enzymes and nucleic acids Regents and tools for molecular biology

Benchmark of Lithuanian biotechnology industry 10,0% Biotechnology input in Lithuanian GDP 1,0% 0,1% H E Target in 2015 1.0-2.0 % FR LT AT GR DE US UK BE EE NL NO LT CH IR FI DK S IT PT 0,0% 0 4 8 12 16 Bio-Company number per capita 1 million

Strength of Lithuanian life science industry is in specialization and clusterization Santara Valley mission: To consolidate business, universities and public R&D efforts to execute integrated valley development program including development of R&D infrastructure, human resources and industrial research in biopharmaceutical and biomedicine areas Existing biopharmaindustry and global companies New biotechnology and biomedical products Applied research institute for biopharma R&D Company incubators and parks New biotech spin-off s Pre-clinical studies center

Thank you! Asociacija Santaros slėnis 21