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CALL FOR PROPOSALS 2015 CANADA/GERMANY JOINT PROGRAM DEADLINE: JANUARY 15 TH, 2016

1) SCOPE OF THE PROGRAM The main goal of the Canada/Germany joint program is to strengthen research in Canada and Germany by aligning scientific resources and expertise. This collaborative program gives the opportunity for private and public organizations based in Canada and Germany to develop new expertise and to expand into new markets. This program is meant to finance the development of novel and potentially transformative next-generation technologies or tools with the potential to improve, enhance or accelerate the state of the art and/or development process. For Canada, the program is focused on biomedical research aimed at developing tools and technologies to improve, accelerate or enhance the drug discovery process. The German funding system is generally technology open. This program is not intended to fund research on new drugs for specific therapeutic segments. This program promotes creativity, innovation, multidisciplinarity and collaborative efforts between academic institutions and private organizations (Small and Medium Enterprises or SMEs) from Canada and Germany. SPONSORS OF THE PROGRAM This initiative is a joint collaboration between the Central Innovation Program of BMWi in Germany (coordinated by AiF Projekt GmbH) and CQDM in Canada. ZIM (Zentrales Innovationsprogramm Mittelstand / Central Innovation Program for SMEs) is a funding program from the German Federal Ministry for Economic Affairs and Energy (BMWi) intended to small and medium-sized enterprises (SMEs) with business operations in Germany that want to develop new or significantly improve existing products, processes or technical services. Public and private non-profit research and technology organizations (RTOs) acting as cooperation partners for a SME are also eligible for ZIM-funding. The goal of ZIM is to sustainably increase the innovative capacity and competitiveness of SMEs including craft businesses and independent professions. Thus the program contributes to the economic growth and creation of new jobs. It offers many funding opportunities among which the COOP program for cooperative R&D projects between SMEs or SMEs and RTOs. AiF Projekt GmbH, project management agency of BMWi, is in charge of the ZIM cooperation projects. CQDM is a pharma-based consortium active in early research whose mission is to fund the development of innovative tools and technologies to accelerate drug discovery. Unique in the world, CQDM s business model is based on a collaborative approach where all stakeholders share the costs of biopharmaceutical research and benefit from its results. CQDM also provides a common meeting ground where academia, governments, and the pharmaceutical and biotechnology industries converge to address numerous complex medical challenges. CQDM receives financial support from Merck, Pfizer, AstraZeneca, Boehringer Ingelheim, GlaxoSmithKline, Eli Lilly Canada, Janssen, Novartis Pharma Canada, Sanofi Canada, as well as from Quebec s Ministry of Economy, Innovation and Call for Proposals 2015 Canada/Germany joint program 2

Exports (MEIE) and from the Government of Canada under the Business-Led Networks of Centres of Excellence Program (BL-NCE). 2) PROGRAM REQUIREMENTS Each research proposal must: Include a strong collaboration between at least one research entity (public or private) in Canada and at least one private entity in Germany. o Please note that in Germany, a private entity (SME) is mandatory to apply. Public and private non-profit research and technology organizations (RTOs) acting as cooperation partners for a SME are also eligible for ZIMfunding. o In Canada, the participation of a private organization is highly encouraged and preferred, but not mandatory; universities are eligible. Generate clear deliverables with immediate applications and/or development process. In Canada, focused at improving or enhancing the drug discovery process. Be highly innovative with a strong and wide potential impact in all technological areas. In Canada, focused on impact in biopharmaceutical research. 3) RESEARCH AGENDA The research agenda is broad open to all branches and technological sectors. The program covers all fields and all research areas that could bring new tools that can accelerate the state of the art and in Canada, to enable the drug discovery or development process in various fields of biopharmaceutical research, such as engineering, nanotechnologies, medical devices, diagnostics, translational medicine and imaging. This program is not meant to fund fundamental research projects. Investigators working on applied research projects are strongly encouraged to apply. Only projects with a well-defined near-term application deemed to significantly impact biopharmaceutical research will be funded under this program. 4) FUNDING SPECIFICS CQDM/ZIM plan to select up to 3 projects in this competition. Duration: Minimum 2 years, maximum 3 years. Total funding budget per project: min $500,000 max $1,000,000, with a maximum budget of 380,000 for each applying SME with maximum 55% funding rate in Germany and $500,000 for each applying partner in Canada. Research institutions in Germany may participate as additional partners with a maximum budget of 190.000 and 100% funding rate. General financing terms: The project contributions from Canada and Germany should be comparable (in terms of resources and/or budget); Call for Proposals 2015 Canada/Germany joint program 3

In Canada, a maximum of $500,000 can be awarded to the Canadian arm of the project, with a minimum of $250,000; The research done in Canada will be directly funded by CQDM as a grant while the research done by the German partners will be funded by ZIM cooperation projects. German specificities; o All German SMEs of up to 499 employees are eligible for funding. o The research performed in Germany will be funded by the Federal Ministry for Economic Affairs and Energy (BMWi). The financial package will depend on the amount budgeted and, importantly, on the number of partners involved. o Both universities and SMEs are eligible for this program (matching funds are required when involving SMEs). o The subsidy rates for R&D projects can be found in the table in section 5.2.1 (page 6) of the ZIM guideline. For international projects the subsidy rate will be increased up to 10%-points for companies with at least one foreign partner compared to cooperation projects with domestic partners. However, the maximum is 55%. Hence, matching funds are mandatory for German partners. Canadian specificities; o Both SMEs and universities are eligible. The participation of a SME is not mandatory but strongly encouraged. o Matching funds for Canadian partners are not mandatory. o SMEs of up to 499 employees are eligible for funding. Further details will be provided by CQDM and AiF GmbH upon request. Eligible costs (for both CQDM and AiF): Eligible costs are defined as reasonable costs for items that directly support the objectives of the project: Salaries of the research personnel (students, post-doctoral fellows, technical/professional assistants) and support staff (e.g. project managers) needed for the completion of the project; Material and laboratory supplies required to achieve the project; Subcontracting. Eligible costs (for CQDM only): Travel expenses (field work, collaborations, conferences); Up to 15% administrative costs or overheads. Non eligible costs: Equipment and facilities (purchase or rental); Salary of the principal investigator and co-investigators. Further details will be provided by CQDM and AiF GmbH upon request. Call for Proposals 2015 Canada/Germany joint program 4

5) REVIEW AND DECISION PROCESS Canadian applicants must submit an application using the form available on CQDM s website (www.cqdm.org) no later than January 15 th, 2016 at 5 p.m. EST via CQDM s secured website (https://cqdm.firmex.com/). The content of this proposal must be developed in collaboration between Canadian and German partners. All German ZIM applicants need to fill a separate ZIM application form in German language. Submission of the ZIM cooperation projects form has to be done according to ZIM s guidelines on ZIM s secured website. Both partners also have to jointly complete a short common application form (common call) that summarises the project to be submitted to both CQDM and AiF. Funding will be awarded following a competitive evaluation process: The applications will be evaluated by the respective organizations, AiF s Scientific and Economic Committees for the German applications and CQDM for the Canadian applications. The scientific excellence, applicability and feasibility of the project will be evaluated jointly by the AiF and CQDM Committees. Evaluators are chosen for their specific scientific and/or industrial expertise in the field of the submitted projects. In parallel, a risk analysis will be conducted by the funding agencies. The applicants may be asked to submit additional information to AiF and CQDM based on recommendations and comments of the evaluation committees. Application evaluation criteria: For German organizations, please refer to the Aif application form. In Canada, applications will be evaluated based on the following criteria: Potential applicability and impact in drug research and ability to improve, enhance or accelerate the drug development process: o immediate impact on drug discovery or development; o capacity to address important unmet biopharmaceutical needs; Scientific excellence; Creativity and innovation; Socio-economic impact of the project for the collaborators; Positioning and competitive edge; Feasibility to execute the project within allocated time and budget; Well-defined deliverables, milestones and schedule; Track record of the participants (principal investigator/lead and coinvestigators/co-leads); Multi-organizational aspects of the research candidates; Complementarity between partners and quality of the synergy. Final selection The final selection of projects will be carried out independently by CQDM s Strategic Orientation Committee and by AiF s Scientific and Economic Committees. Approval by both parties is necessary to obtain funding. Call for Proposals 2015 Canada/Germany joint program 5

6) INTELLECTUAL PROPERTY (IP) AND LICENSING POLICY A research agreement must be signed by all research entities involved in the project within 3 months after the funding confirmation; Intellectual property generated under this funding program will be managed according to the policies of the financial partners involved; A license option will be granted to CQDM s industrial sponsors (the parent organizations and their subsidiaries) for the use of the results for R&D purposes only. The main conditions of the end-user license option will be negotiated before the beginning of the project and will take into account pre-existing IP as well as contribution from each party; CQDM s industrial sponsors will have no rights to commercialize the IP resulting from the project nor the pre-existing IP. 7) PHARMA MENTORS & MONITORING OF FUNDED PROJECTS Mentors from the participating pharmaceutical CQDM members with experience in the drug discovery and development process will be assigned to each funded project. Mentors are senior and experienced scientists from CQDM s corporate pharmaceutical members who provide expertise and access to useful resources. Their role is to ensure that the project is progressing so that its output remains in line with the agreed project and is applicable and of interest to the drug discovery/development industry. CQDM organizes bi-annual meetings with the research teams and the assigned mentors. For all funded projects, one project manager in Canada and one project manager in Germany must be identified by successful applicants. These people will be responsible for coordinating all financial and scientific reports. CQDM and AiF will monitor the progress of the project, and continuation of funding will depend on the satisfying progress of the project based on the agreed milestones and budget. 8) TIMETABLE To facilitate the preparation of the joint application, an information and networking session will be held during Bio-Europe 2015 in Munich, Germany. Please see our websites for more info. Call for proposals - kick-off October 1 st, 2015 Information and networking session, Munich, Germany Application deadline Bio-Europe, November 3 rd, 8 a.m. Canada/Germany Networking Breakfast January 15 th, 2016 at 5 p.m. EST Evaluation process by the partners March 2016 Final selection announcement May 11 th, 2016 Signature of the Research Agreement August 15 th, 2016 Call for Proposals 2015 Canada/Germany joint program 6

9) SUBMISSION PROCEDURE FOR FULL APPLICATIONS An electronic version must be submitted on CQDM s secured website no later than January 15th, 2016 at 5 p.m. EST (https://cqdm.firmex.com/). For Canadian applicants, please contact Eugénie Bergeron-Côté at ebergeron@cqdm.org before January 1 st, 2016 to obtain their username and password. The electronic applications must include the following documents: The signed PDF version of the short common application form (common call). The document must be labelled as follows: Name of the principal investigator in Canada_Name of the principal investigator/lead in Germany_common call The electronic PDF version of the CV of all principal investigators and coinvestigators. The document must be labelled as follows: Name of the principal investigator in Canada_Name of the principal investigator/lead in Germany_CV For the CQDM full application for Canadian applications the document must be labelled as follows: Name of the principal investigator in Canada_Name of the principal investigator/lead in Germany_full application Please disable all security parameters of the PDF documents to be submitted. All German project partners need to fill their own ZIM application individually and prepare a paper version including all original signatures. The applications have to be submitted to AiF Projekt GmbH before January 15 th, 2016. The common proposal application form can be submitted electronically to the contact persons below. CONTACT INFORMATION For further information, please contact: Marc Thibault Director of programs CQDM + 1 (514) 766-6661, ext. 2190 mthibault@cqdm.org www.cqdm.org Georg Nagel Coordinator International Cooperation AiF Projekt GmbH 030 48163-493 international@aif-projekt-gmbh.de http://www.aif.de/en/about-aif.html Call for Proposals 2015 Canada/Germany joint program 7