Biofarmind celebrates its 12.5th anniversary. Roland Lageveen (IQ Corporations) talks about biotechnology in the Netherlands.

1. LìfeSciencesHealth, a shining future?
Dr. Roland Lageveen
CEO IQ Corporation
Biotechnology in the Netherlands

2. The Dutch life sciences and health innovation
cluster (LSH) builds upon a strong knowledge base
Strong national cluster:
First rate academia, hundreds of SME’s,
multinational med- & biotech and
Pharma, all within a 120 mile radius
Focal points around:
- Amsterdam/Leiden/Rotterdam/Utrecht
- Groningen
- Wageningen/Nijmegen
- Eindhoven/Maastricht
World class:
– Two Dutch clusters are in the global
Top 40 and the European Top 15
for biotech patent applications.
120 mile radius
Excellent
biobanks and
‘real life’ data
infrastructure
Global players
& very high
concentration
of SMEs

3. • Impact publications number 4
• Publication productivity number 2
• Patent productivity number 1
…with excellent output levels 2,5% of world science
output
www.worldmapper.org

4. Source: OECD, Biotechnology Statistics 2009
…and a good biotechnology patent
productivity too…
patent productivity number 1

5. Health-related life sciences: an important sector in
the Dutch economy
Drugs
– 430 companies; EUR 12 bn revenues; 37,000 FTE
Diagnostics
– 390 companies; EUR 2.7 bn revenues; 12,000 FTE
Biomedical Engineering and Devices
– 75 companies; EUR 0.4 bn revenues; 2,200 employees
Other
– 40 companies,  EUR 0.8 bn revenues
Health-related life sciences: 935 companies – 150 highly
innovative; EUR 15.9 bn output (3% of GDP); 54,600 FTE
Source: EIM study for EZ [2006], Voorstel LSG [2006]

6. 5 of the top 10 European biotech deals are with Dutch
companies, with a total value exceeding USD 2 billion

7. However….

8. …but a low performance on innovation &
entrepreneurship and applications
1 Finland
2 Finland
3 Finland Finland
4 Finland United Kingdom
5
6
7 United Kingdom
8 The Netherlands
9 United Kingdom
10 The Netherlands The Netherlands
11
12
13 United Kingdom
14
15 United Kingdom
16
17
18 The Netherlands The Netherlands
Innovation
drivers
Knowledge
creation
Innovation &
Entrepreneurship
Applications
Intellectual
Property
Source: European Innovation Scoreboard 2006

9. Aggregate uptake of 13 innovative first-line products
(launched between January 2004 - June 2008)
0,00
0,04
0,08
0,12
0,16
0 1 2 3 4 5 6 7 8 9 10 11 12
Months after launch
Unitvolumepercapita
Belgium
Denmark
France
Germany
Netherlands
Switzerland
UK
After UK, the Netherlands has 2nd lowest market
uptake of innovative medicines

10. Nyenrode Biotech Outlook: The performance
of Dutch cluster is low but improving

11. Investments in PPPs are huge, but will
decline
Source: PPP websites; Senternovem; Ministery of Economic
Affairs
PPP programs – duration and total
investment
Investment in time [EUR m] (committed
2003-2007)
1) Includes also non-health related investments
11100908 150706 141312
NGI 5001)
TI Pharma 240
CTMM 400
90
dpte
SCDD 18
Cyttron 18
Parelsnoer 67
LifeLines 5
Program [EUR m]
Neuro-BSIK
7BioMaDe
23TREND
28Arthrosite
24Braingain
BMM
26
Mol Im Heart 20
24NIMIC
25TERM
50
248
263257
??
Committed
FES 2009
2007 2008 2009 2010 2011 2012 2013 2014 2015
Taken to the
next level…
…momentum
lost?
…or…
182
42
34
11
0 0

12. The government recognizes life sciences as
‘topgebied’, next to food & flowers and chemicals

13. The government recognizes life sciences but their
budgets ......
• Wbso higher
• Tax lower
But:
• No specific programs
• No FES funding
• No vision

14. The international environment
is changing…..

15. 15
The big Pharma challenge: R&D expenditure
goes up, output in new medicines goes down
0
40
80
120
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
0
20
40
60
Source: PhRMA, FDA
R&D investments
R&Dinvestment[USDbillion]
FDA approved
new medicines
FDAapprovednewmedicines[#]
R&D investments [USD billions] versus output [approved new medicines]
Development of a
new drug has
become more
complex: safety &
efficacy are the
two main issues
Costs to develop
one new drug
have become
approximately
EUR 1 billion

16. November 2007:
Schering-Plough buys Organon for USD 14.4
bn
November 2009:
Schering-Plough and Merck merge,
Merck (MSD in Europe) pays USD 41.1 bn
March 2009:
Roche buys remaining 44% of shares in
Genentech for USD 46.8 bn
January 2009:
Wyeth merges with Pfizer,
Pfizer pays USD 68 bn
September 2009:
Abbott buys Solvay Pharmaceuticals from
Solvay paying USD 6.6 bn
Reducing costs and filling pipelines are two
main drivers for consolidation in big Pharma
Examples of mergers and acquisitions in big Pharma

17. ...with a major impact on the Netherlands
Organon Solvay Crucell

18. At the same time big Pharma tries to fill its pipelines
by increasing external R&D activities
Company Turnover R&D % of
turnover
Highlights of R&D strategy
GSK (2009) GBP 28.4 bn 4.1 bn 14%
Increase the percentage of
external R&D from 33% to
50%
Merck
(MSD, 2007)
USD 26.8 bn 4.9 bn 18%
Target to realize 25% of
early pipeline via ‘External
Basic Research program’
in the next 3-5 years
AstraZeneca
(2008)
USD 31.6 bn 5.2 bn 16%
Move from ‘research’ to
‘search’:
RoI of dollars spent on
external R&D is 3 times
higher than internally spent
Source: annual reports and websites GSK, Merck, and AstraZeneca, and Morgan Stanley report on AZ
Examples from three major Pharma companies with highlights of their R&D strategy

19. The changing environment holds
opportunities for the
Netherlands….

20. Societal, technological and stakeholder trends holds
opportunities for the Netherlands
Dutch business environment and government innovation policy
Societal trends1
15%
201
0
20%
202
0
24%
203
0
26%
204
0
% population >65
years in the
Netherlands
Technological trends
Bio-artificial kidney
Stakeholder trends3
4
2
Marketing/
sales
Production
company
Technology
provider
Clinical
research
company
• Ageing
• Unhealthy lifestyle
• Demand for high quality of life
Increased burden
on the healthcare
system
New technologies promise:
• Early diagnosis
• Targeted delivery of drugs
• Personalized medicine
• Specialization
• Networks
• Open innovation
• Promising business environment
• Life sciences anchored on short term in government innovation policy
• Pitfall is lack of continuity in policy

21. The Netherlands has a good start position to turn into
an international breeding ground for new businesses
Increasing demand for innovations
Increasing specialization
Strong Dutch knowledge base
Highly educated people
Strong innovation infrastructure
Growing industry
Internationally competitive breeding ground for
new business in life sciences and health
+
+
+
+
=
+
OPPORTUNITY TO BECOME

22. How can we grab the
opportunities ?

23. A clear challenge for the Dutch sector: big and
small, clinical and pre-clinical, public and private,
branch organizations now have to join forces

24. Generation Translation Delivery
BUILD BENEFITBUNDLE
…with a
technology
push…
…resting on
a strong
knowledge
base…
…delivering
continuously
…
…acting as a well oiled engine…
…with a
strong
industry
pull
A healthy
pipeline…
Creating a healthy pipeline by building true
partnerships

25. Invest on an annual basis with a stable budget for a
longer period instead of incidental impulse financing
130
263
248
2007 2008 2009 2010 2011 2012 2013 2014 2015
Taken to the
next level…
…momentum
lost?
…or…
182
42
34
11
0 0
The sector should take responsibility for a long term strategy

26. Improve the LSH climate
• Creating a SME friendly environment fostered by a
government with long term vision and a positive LSH
attitude
• Remove regulation hurdles
• Focus on value creation in the reimbursement
evaluation procedure
• Increase the availability of human resources
• Improve entrepreneurial skills
• Make EC’s “Innovation Union” work for us, in funding
R&D and matching VC
• Market the Netherlands internationally as one unique
life sciences region

27. Keep effective, successful instruments up and
running
For example: ‘Innovatiekrediet’
1 euro credit loan… generates 2 euro private investment
2009: 13 mln. + 26 mln. = 39 mln.
+

28. Stakeholders should team up to realize these goals
• The knowledge base: UMC’s and Universities
• The industry: small and large
• The financing world
• The branch organizations
• Patient organizations
• Health care providers
• Health insurers
• ….

29. One voice one message ….
….. show our successes!
Dutch Masters in Life Sciences Health,
…..The Dutch Innovation

30. Biotechnology in the Netherlands
LSH a shining future?
Let’s team up to make it happen together
Dr. Roland Lageveen
CEO IQ Corporation