Geneva – 10 March 2009

1. Where Science Means Business The case of Yissum – The Hebrew University of JerusalemRenee Ben-Israel, Vice-President – Intellectual PropertyWIPO: Information Meeting on Intellectual Property Financing Geneva – 10 March 2009

2. Summary • Introduction • Patent strategy • Patents and Universities • Israel’s technology and Innovation • Israeli universities • Yissum • Food for thought

3. Patents use • Patent strategy may be: • Defensive - no intention of developing the invention, main interest: preventing others from doing so. • Dominating - plan to use the technology, the processes described in their patents and sue infringing parties. • Licensing purposes (in/out/cross)-individuals/institutions that do not intend to manufacture the invention themselves, transfer the rights for development and production to a third party • Other purposes (profit centres, aggregators, “trolls”)

4. Universities patents strategy? • Not really • Depends on the invention! • Platform (enabling) inventions • Niche/complementary inventions • Use inventions • Conceptual inventions • University patents are meant for technology transfer

5. University patents • University classical mission: • Teaching, researching and divulging the knowledge • Universities’ patents: • Embryonic – feasibility/market unknown • Development requires high riskinvestment by industry • Intellectual property protection can be used as an incentive to make high risk investment • motivating the “first mover” by protecting against later competitors(strategy!)

6. Purposes of University Technology Transfer • Participate in innovation process • Facilitate the commercialization of research results for the public good • Retain and recruit researchers • Create closer ties to industry • Generate income for further research and education • Promote economic growth • Social responsibility

7. Purposes of University Technology Transfer Research => Invention (and IP)=> Development => Innovation • New products and medicines • Bring new technology into industry for economic competitiveness • Encourage entrepreneurship for local and national economic development (source: Lita Nelsen – MIT)

8. The Tech Transfer Bargain • University research leads to patent—but technology is unproven and high risk • University is willing to grant exclusive patent license to Company who will commit to the risk of developing the technology • If development succeeds, the patent protects the Company from competitors • University benefits from product being developed and from royalties (shared with inventor) • University also has the opportunity in the license to assure that patents are used “in the public interest”—requiring certain price or geographical concessions for developing countries, if appropriate (source: Lita Nelsen – MIT)

9. Patent protection is particularly critical for development of pharmaceuticals • Development of a new therapeutic or vaccine product is a particularly high risk activity • Time frames are long • Financial investment is very high • Clinical trials are very difficult • Probability of failure is high • Patent protection of the final product is necessary before companies (or biotech investors) will take the risk and make the investment (source: Lita Nelsen – MIT)

10. Pharmaceuticals

11. Israel: data Area - Total 120,770 / 22,072 km2 (151st)8,019 / 8,522 sq mi  - Water (%)~2% Population - 2008 estimate 7,282,0002[3] (96th) - 1995 census 5,548,523  - Density324/km2 (34th)839/sq mi GDP (PPP)2007 estimate - Total$188.936 billion[4] (52nd) -  Per capita$27,146[4] (32nd) GDP (nominal)2007 estimate - Total$164.103 billion[4]  -  Per capita$23,578[4]

12. Israel, facts & figures • Technology transfer pioneer • Brain power + need => use of science to survive, overcome situations • Highest % of R&D allocation from GDP (4.7% - 2007)

13. R&D expenditure National expenditure oncivilian R&D in 2007 was 4.7% of the GDP. Major increase in R&D companies.

14. Israel, facts & figures • 1901- TEVA’s foundation • 1924- The Technion (Polytechnic Institute) • 1925- The Hebrew University of Jerusalem • Population with high scientific level, strong inclination to engineering and biological/medical sciences • Research units in hospitals – many experimental units • Access to…

15. Israel, facts & figures – patents OECD: Israel has the highest percentage of patents in the region: Israel is ranked 6 globally for patents per GDP and 8th for patents per capita

16. Israel: Supporting Infrastructure The Technological Incubators programme, the Tnufa programme, the Noffar fund, the R&D fund. State initiatives matched with private interest meant to foster early stage projects.

17. Israel: Supporting Infrastructure The Magnet, the Mini-Magnet, the generic R&D meant to support joint industry & academic institutions cooperations

18. Israeli Universities • Tech Transfer since 1959 (much before the Bayh-Dole act in the US!) • At all 7 universities & many research institutions, hospitals • Yeda: one of the wealthiest in the world • Yissum: 15th in the world

19. Success stories – a sample • Yeda: • Bio-Hep B®, recombinant hepatitis B vaccine • Copaxone®, 1st. Innovative drug in Israel, MS immunomodulator • Dunaliella®, β carotene health food form alga • NDS Ltd., Encryption Algorithm, TV set-top box smart cards • Erbitux ®, Antibody therapy with synergism with chemotherapy • Technion: • Azilect®, Parkinsons Disease • And many others

20. 4Campuses 320 Researchers in Applied Sciences 4,420 Research Projects >100 Research Centres 5 Affiliated Hospitals 24,000 Students The Hebrew University of Jerusalem 1,600 Post-Graduate Students in Biotechnology 1,000 Researchers (Staff Members) Over 1/3 of all academic scientific research In Israel 43% of Israel’s biotechnology research >1/3 of PhD students in Israel

21. A Nobel Heritage • 2002 Nobel Prize in Economics • Daniel Kahneman, Princeton • 2004 Nobel Prize in Physics • David J. Gross, UC Santa Barbara • 2004 Nobel Prize in Chemistry • Avram Hershko, Technion • Aaron Ciechanover, Technion • 2005 Nobel Prize in Economics • Robert J. Aumann, Hebrew University • 2006 Nobel Prize in Chemistry • Roger Kornberg, Stanford

22. Top 20 Most Frequently Cited Papers Stem Cells 1998-2004

23. http://www.milkeninstitute.org/pdf/m2m2006_uni_bio.pdf

24. Where Science Means Business Board of Directors Business leaders Yissum Business-oriented organization Founded 1964 The Hebrew University Non-profit organization 23

25. University Strategy • Created a positive atmosphere at the University • Established good and clear policies as an incentive to researchers • Budget incentives • New opportunities • Awards/prizes for achievements

26. Yissum’s Mission To promote the transfer of Hebrew University technology for the benefit of society, while maximizing returns to support research, education and scientific excellence Yissum = Hebrew for ‘application’

27. It’s not that simple! • Academic world • Business world (Industry, VCs, Start-ups) (to say nothing about market instabilities…) • Intellectual Property legal world • Contracts – legal/commercial world The rules of the games are different.

28. Yissum’s strategy • Identifies the right situations - matching needs & opportunities • Identifies the key elements – to move the project forward • Flexibility • Professionalism • With no interference in the academic freedom!

29. Current Snapshot • Over $1 Billion annual sales of Hebrew University- based products • 5,500 patents • 1,600 inventions • 480 licenses • 65 spin-offs • Raised over $165 mil in 2007 from leading VCs and private investors

30. A Record of Achievement • 2007 revenues $51mil • $36 mil royalties and licensing • $4.3mil portfolio companies • $10mil sponsored research & services • HU research budget $107mil • Ranked in top 15 worldwide (AUTM) • Leading US TTO revenues FY2007 • MIT $61mil • Research budget: $1.2 Billion • Stanford $50mil • Research budget: $1 Billion

31. Intellectual Property 2007 Snapshot • 121 new inventions • 93 new patent applications • 64 new patents granted Intellectual Property at HU • Yissum owns all IP developed at HU • Researchers receive 40-60% of revenues 2007 New Inventions

32. 2008 statistics: Disclosures: 128 New applications filed: 112 PCTs: 44 National Phases: 41/159 (~4 countries) Examination: ~250 Renewals: 500-550 Budget: ~$3M 31

33. PCT IPER NP Patent Grant Prosecution First Filing (Total: 20 years) Months Patents are an expensive game

34. Global Reach

35. Yissum’s Spin-offs Rav-Galai

36. Success Stories - Tomatoes Long Shelf Life & Cherry Tomatoes The world’s most popular cocktail hybrids for greenhouse production Prof. Nachum Kedar Prof. Haim Rabinowich Department of Field Crops, Vegetables and Genetics: Faculty of Agriculture, Food And Environmental Sciences The Hebrew University Rehovot Campus 2007 sales $73 million

38. Success Stories - Doxil DOXIL® Doxorubicin HCI liposome injection Alza’s Lead Product for Oncology Prof. YechezkelBarenholz Department of Biochemistry Faculty of Medicine The Hebrew University Of Jerusalem 2007 sales $417 million

39. Success Stories - Exelon For Treatment of Alzheimer’s Disease and Dementia Prof. Marta Weinstock-Rosin Department of Pharmacology Faculty of Medicine The Hebrew University Of Jerusalem 2007 sales $632 million

40. Food for thought • Will emphasis on tech transfer change nature of research from “discovery” to “applied”? • Will need to collaborate with industry be allowed to inhibit publication and dissemination of results?

41. Food for thought • Will “privatization” of research results retard the progress of science? • Will the universities remember their public mission—taking care that IP is used primarily for the public good?

42. Food for thought • Will the decrease in government investments in research create a dependency from commercial sources? • Will this deviate universities from their missions? It will certainly require a coordinated effort and thought of all involved parts!

43. Conclusion: • Is it worth the effort? • So far, our experience has been positive!

44. Thank you for your attention!