EuropaBio’s Most Innovative Biotech SME Awards October 2, 2013 Brussels, Belgium

1. Biotech In 2020: Is Europe Still Relevant? EuropaBio’s Most Innovative Biotech SME AwardsOctober 2, 2013Brussels, Belgium G. Steven Burrill Chief Executive Officer Burrill & Company

2. What’s Ahead for Europe? • Can European life sciences companies gain access to capital they need? • Is European Big Pharma leading or following today? • Will austerity quash innovation? • Will price pressures in Europe cause companies to focus on other markets? • Will price pressures in Europe force companies to focus on developing products with true value? • Will resistance to GMOs delay progress for European companies? • Will Europe serve as a model on regulation? Healthcare? • Does Europe still matter?

3. Healthcare:A Menu Without Prices

4. Healthcare: Procedures Cost Outcomes Value

5. Economic Signs in U.S. Show Some Improvement • Layoffs slow but so is hiring • Housing market hot again • Sequester takes effect • Debt-ceiling battle ahead • U.S. Federal Reserve’s policy for continued economic support uncertain • Fed more pragmatic than doctrinaire… helps sustain a growing economy(rather than sharply higher interest rates) • Capital goods purchases increase; consumer confidence building • Economic growth is real but Austerity is still the watchword of the day

6. Plenty of Mixed Signals Internationally • Eurozone economy declines for six consecutive quarters • German economy will grow at a slower pace than previously expected this year and next • China’s manufacturing numbers shrink • International Monetary Fund trims global gross-domestic-product growth forecast to 3.1 from 3.3 percent • Japan recovery well underway • Rising middle class globally is spending money • Economic sentiment indicator in the E.U. rose above its long-term average for the first time since July 2011

7. Globally Markets Are Improving And Capital Is Available • Major indices hit record highs • Life sciences first andinformation technology second inIPO performance • Half of executives in 50 country surveysay credit availability improved versusone year ago.

8. Emerging Markets Losing Steam For the first time, the advanced economies, including:JapanThe United StatesEurope collectively contribute more to growth in the $74 trillion global economy than the emerging nations, including: ChinaIndiaBrazil Source: Bridgewater Associates

9. Mixed Global Life Sciences Financings Since Last SME Awards In USD M Source: Burrill & Company

10. Biotech Outperforms Major Indices Since Last Year’s Awards

11. And Small Companies Also Doing Well

12. With Record U.S. Life Sciences IPOs in 2012 and 2013

13. Life sciences markets are hot(…in some places)

14. Not All Global Markets Up As Much As Biotech in the U.S.

15. European Life Sciences Companies Financing by Debt

16. Some Big Biotechs Surpass Big Pharma

17. Global climate change, sustainability of the planet Clean water Energy security, energy self-sufficiency Food security and food production Wellness Emergence of new viruses to which we are not immune A Host of Problems Face the World The life sciences industry has the tools to develop solutions

18. The Impact of Urbanization, Longevity and Better Lifestyles More than 371 millionpeople have diabetes. Source: International Diabetes Foundation

19. Non-Communicable Diseases Take a Growing Toll Worldwide • Account for 63% of deaths worldwide • Cost more than $30 trillion over the next 20 years • Cause nearly 80%of deaths in low- and middle-income countries Source: World Economic Health Forum and the Harvard School of Public Health; World Health Organization

20. Half of Deaths from Diabetes Are In the Under 60 Age Group and in 2012 alone 4.8 million people died worldwide due to diabetes Source: International Diabetes Foundation

21. Hepatitis C: A Silent Epidemic One of every 33 baby boomers are infected with hepatitis C - Centers for Disease Control and Prevention

22. Healthcare Cost Rapidly Increasing Not Only in the U.S. Health Costs as a Percent of GDP U.S. OECD outside of the U.S. 21 19 17 15 13 11 9 2018 2020 2006 2008 2010 2012 2014 2016 Source: PricewaterhouseCoopers Health Research Institute

23. Spending Does Not Equate to Quality U.S. spends two-and-a-half times the OECD average Per capita healthcare expenditures in USD • In the Netherlands, it is not possible to distinguish the public and private share related to investments. • Total Expenditure excluding investments Source: OECD Health Data 2012

24. As Costs Rise, Governments Demand Value for Their Money Pricing pressures will alter pharmaceutical development strategies • Germany’s drug pricing law AMNOG • U.K.’s National Institute for Health and Clinical Excellence • U.S.’s Independent Payment Advisory Board • India’s Department of Pharmaceuticals Cost-based systems become value-based

25. Same pressures on healthcare driving pressures on agriculture and energy

26. The Biogreentech Opportunity • Opportunities within the agricultural and cleantech sectors that apply biotechnology and associated technologies, such as chemistry, biomaterial science and nano-technology to: • Enhance productivity • Enhance sustainability • From agriculture to renewable chemicals

27. Food vs. Fuel: Food Crops Used for Fuel Biofuel Crops, Feedstocks, and Fuels ETHANOL FERMENTATION AND DISTILLATION SUGAR CROPS • Sugarcane • Sugar beet • Sweet sorghum SUGAR CROPS SACCARIFICATION, FERMENTATION, AND DISTILLATION • Maize • Wheat • Barley • Rye • Potatoes • Cassava SUGAR CROPS • Switchgrass • Miscanthus • Willow • Poplar • Crop stover BIODIESEL SUGAR CROPS EXTRACTION AND ESTERIFICATION • Rapeseed • Oil palm • Soybean • Sunflower • Peanut • Jatropha Source: FAO 2008, Food Vs. Fuel, Frank Rosillo-Calle and Francis X. Johnson editors

28. EU Fourth for New Biorefineries Projected Biorefineries by 2025 40 60 40 60 135 130 200 Source: Biofuels Digest

29. Evolving Business Models Move to Bio-based Chemicals Chemicals are a nearer term opportunity compared to fuels • Smaller scale and volumes • Lower capex requirements • Less biomass required • Better economic margins • Market pull from the consumer product industry • Access to ready partners

30. A convergence oftechnology withhealthcare and biogreentech

31. Convergence with IT Creating A New Healthcare Model Diagnostics/Devices Patients Services for Integrated Care Healthcare IT Consumers Therapeutics

32. Emerging Technologies Create New Possibilities • New digital technologies provide powerful weapons in the arsenal against disease • Remote patient monitoring systems • Mobile early interventions • Health consumer wellness apps • Genomics and personalized therapies • Data analytics for improved patient AND provider outcomes

33. A New Future Drives the Bio-economy Breeding traits Genetic traits • Productivity • Reliability • Quality • Integrationof native and biotech traits • Pest protection • Stress alleviation • Superior nutrient use • High nutrient density • Processor efficiency Microbes and biofilms / chemicals • Pest control • Nutrition • Growth regulators

34. New Forms of Medical Intervention in Development

35. Europe pushes the envelope

36. Gene Therapy Advances in Europe • UniQure’sGlybera wins regulatory approval • Rescues lipoprotein lipase deficiency • Relies on adeno-associated virus serotype 1 • EMA grants first approval for a gene therapy in the western world • Approval for exceptional circumstances only and requires outcomes reporting

37. Europe A Leader In Using Sequence Data • To Advance Understanding of Ourselves: • Single-stranded library preparation at Max Planck Institute for Evolutionary Anthropology, Germany • Reconstruction of the genome by sequencing DNA from frozen finger fragments • Advances knowledge of our evolutionary past • To Advance Rapid Interventions: • Practical application of whole genome sequencing by Sanger Institute, Britain and Addenbrooke’s Hospital, Cambridge • First case of rapid whole genome DNA sequencing to lead to intervention of an infectious disease outbreak

38. Europe Provides Innovation to Pharma and Biotech • Oxford-based Immunocore • Key platform technology todevelop immune mobilizing monoclonal T cell receptors against cancer, or ImmTACs • GSK will pay more than $5 million USD total to gain access to treatments for cancer and other diseases • Genentech will pay between $10 million and $30 million USD each for new cancer immunotherapy

39. United States Reaches to Europe for Innovation Source: Burrill

40. United States Reaches to Europe for Innovation - cont Source: Burrill

41. Asian Governments Look to Europe Too Source: Burrill

42. And Europe Leverages China’s Power • BGI Europe in Denmark and the LUCAMP initiative, a collaboration with 9 Danish universities/institutes • Focus on the human genome and the gut microbiome to understand variations in metabolic and cardiovascular disease • To improve the health of at-risk populations

43. Healthy Medtech R&D Spending in Europe Source: EvaluateMedTech

44. A leader in public-private initiatives to solve big problems that hamper innovation and productivity in drug development

45. Working together to overcome obstacles

46. The European Lead Factory • European public-private partnership that seeks to speed translation of academic research into innovative therapies • 30 international partners, including 7 European Pharmas and 13 E.U. Universities • Founded by Innovative Medicines Initiative • Provides public partners with industry-like discovery platform • Unifies 500,000 small molecule compounds into a Joint European Compound Collection for drug discovery screening • $261.9 million (€196 million) effort

47. Select European Government and Non-profit Initiatives 2013 Source: Burrill

48. Public-Private Partnerships to Advance Biogreentech • THANAPLAST private-public consortium: one of the largest projects in plastics technology • Private partners include lead company Carbios, specializing in new approaches for recovering plastic waste and producing biopolymers • Public partners are National Center for Scientific Research (CNRS) and Poitiers University • Funds €3.2-million collaboration to develop new plastics technologies

49. Healthcare Solutions Redefined • Treating sickness with: • Drugs • Devices • Dx • Promoting wellness with: • Patient management • Health incentives • Individual and efficient treatments

50. Global Initiatives to Engage Patients Worldwide Improve patient outcomes globally through interactive web application for patients and doctors Enhances the patient experience via U.K. consumers main point of contact: their pharmacist Digital health diabetes self-management program using digital coaching and wireless glucose meter to transmit data to clinical monitors