Building a Successful Life Sciences Corridor in Michigan Health Trends Conference 2002

1. Building a Successful Life Sciences Corridor in MichiganHealth Trends Conference 2002

2. Agenda • Michigan Economic Development Corporation (MEDC) Overview • Michigan Life Sciences Corridor Overview • 2000-2001 Awards • 2002 Competition Update • Are we on our way?

3. Michigan Economic Development Corporation A partnership between the state and local communities, promoting smart economic growth and providing services to create and retain good jobs and maintain a high quality of life.

4. The Michigan Economic Development Corporation • People Attraction and Retention • Ensure that the size and skills of Michigan’s workforce meet the needs of its business customers. • Technology Infrastructure • Ensure that Michigan can support the growth of both traditional and emerging industries that increasingly are reliant on technology and telecommunications.

5. The Michigan Economic Development Corporation • Smart Community Investment • Ensure that Michigan’s core communities function smart where technology, good planning and transportation are deployed effectively. • State Image • Promote an image of Michigan that is attractive to people by promoting Michigan’s hot economy and great places to live.

6. Agenda • Michigan Economic Development Corporation (MEDC) Overview • Michigan Life Sciences Corridor Overview • 2000-2001 Awards • 2002 Competition Update • Are we on our way?

7. Michigan Life Sciences Corridor Goal: Over the next twenty years develop Michigan as one of the world’s premier life sciences research & commercial centers.

8. Life Sciences Initiative • Category I, Basic Research ($20 million) • Fundamental, inquiry-driven science projects and activities • Category II, Applied Research ($25 million) • Development ventures: demos, prototype, trials. • Category III, Commercialization ($5 million) • Business activities that bring-to-market new technologies, products and services

9. Life Sciences in Michigan - Baseline MI Academic R&D: $508M (1999) 200 Ph.D. per year SBIR 14th Patents 7th MI Life Sciences companies: $1.6 Billion sales – 10th 16,800 workers – 11th 300 firms (56 employees/firm) Concentration: MI USA • Drugs + Pharmaceuticals 70% (46) • Medical instruments 29 % (50) • Biotechnology 1 % (3.8) Source: Battelle Study

10. Life Sciences Success Factors • Cutting-edge research + • Cluster + / - • Access to Capital + / - • Quality of Life / Image + / - • Skilled Workforce + / - • Transportation (Personal, + / - • Customer, and Product) • Entrepreneurial culture - • Effective tech transfer - • Infrastructure -

11. MLSC Competitiveness • Michigan Ranked in Top 5 by 2010 • Development of Critical Mass: bona fide Biosciences Cluster • Industry Recognition of Michigan as a Great Location for Business, Jobs, and Living – people vote with their feet and pocketbooks to come to Michigan • Michigan CARE’s (Creates, Attracts, Retains, and Expands)

12. Definitions of Success Science Business • Top 10 ranked life science schools and departments • Competitiveness in attracting external research funding, students, and faculty • Michigan universities have transferred intellectual property to form 150 new companies • Hundreds of collaborative research programs with Michigan-based companies • 250 new life sciences companies launched, 150 survived, 15 completed their IPOs • 100 new companies manufacture and market proprietary products • >$1Billion of private equity raised • Deep and broad life sciences business service community • 15000 new jobs

13. Agenda • Michigan Economic Development Corporation (MEDC) Overview • Michigan Life Sciences Corridor Overview • 2000-2001 Awards • 2002 Competition Update • Are we on our way?

14. Summary of MLSC 2000-2001 Awards • 58 life sciences projects awarded, $100 million • Project size ranged from $85K to $67M • Typical (Core Technology Alliance excluded) award was $850,000 over three years

15. GENOMICS (MCGT) DNA Sequence Organization of DNA into Genes Regulation of Gene Expression PROTEOMICS (MPC) ANIMAL MODELS (MAMC) BIOINFORMATICS (MCBI) Cellular Expression of Gene Products (Proteins) Functional Interactions Among Proteins Functional Impact of Genes in Whole Animal Storage and Analysis of Data STRUCTURAL BIOLOGY (MCSB) Structural Features of Proteins Core Technology Alliance

16. Nephros Therapeutics Nephros Therapeutics, Ann Arbor-based medical device company received an award to conduct clinical trials on its bioartificial kidney. In the trials the device has already saved the lives of three Michiganders

17. MLSC Commercialization Awards • Seed Funds • Michigan University Commercialization Initiative • Sloan Ventures MLSC Catalyst Fund • Applied Research CapacityApolife - Recombinant protein productionAvtech – Preclinical development services • Training and ConsultingBiotechnology Business Consultants, LLC

18. Agenda • Michigan Economic Development Corporation (MEDC) Overview • Michigan Life Sciences Corridor Overview • 2000-2001 Awards • 2002 Competition Update • Are we on our way?

19. MLSC 2002 Round Preproposals

20. Review Timeline

21. Agenda • Michigan Economic Development Corporation (MEDC) Overview • Michigan Life Sciences Corridor Overview • 2000-2001 Awards • 2002 Competition Update • Are we on our way?

22. Definitions of Success Science Business • Top 10 ranked life science schools and departments • Competitiveness in attracting external research funding, students, and faculty • Michigan universities have transferred intellectual property to form 150 new companies • Hundreds of collaborative research programs with Michigan-based companies • 250 new life sciences companies launched, 150 survived, 15 completed their IPOs • 100 new companies manufacture and market proprietary products • >$1Billion of private equity raised • Deep and broad life sciences business service community • 15000 new jobs

23. Michigan Life Sciences Class of 2001 * Recipient of MLSC funding

24. Michigan in the Forefront of Life Sciences Technologies • Human Genome Project • Rubicon Genomics is developing technology that will close the gaps in sequencing and identifying areas of sequence divergence • Stem Cell Research • Michigan Center for Cell Therapy is harvesting and growing embryonic stem cells from umbilical cord blood • Bioterrorism defense • NanoBio, BioPort and Neogen are contributing to decontamination, anthrax vaccination, and food safety testing • GeneCodes, developing software to identify DNA from World Trade Center victims

25. Michigan Life Sciences Business Expansion • Pfizer’s announcement of its expansion of the Ann arbor research campus is the largest corporate expansion or relocation in 2001 • In addition, companies such as StatProbe, GeneWorks, Esperion, and Cayman chemical have also completed corporate expansions in 2001 • Investment in excess of $2.4 billion and 2067 jobs

26. Are we on our way? YES • Growing an industry • Diversifying our economy • Gaining national recognition • Building research excellence • Enhancing health and well-being of all citizens of Michigan

27. Michigan Life Sciences Corridor Visit our website at: www.michigan.org Questions & Answers