Karolinska Institutet Innovation System Commercializing Swedish Science Conny Bogentoft 2007

1. Karolinska Institutet Innovation SystemCommercializing Swedish ScienceConny Bogentoft2007

2. The world needs new pharmaceuticals • Long-term perspective • Available Venture Capital • Public well-fare • Profitability

3. Big Pharma consistently fails to innovate

4. Biotech firms drive drug development Biotech medicines in development • 418 biotech drugs in development 2006 • Under review of FDA • 29% increase from 2004

5. Karolinska Institutet Innovation System 2007Status Q2 2007 • 800 innovations reviwed • Deal flow from 6 Nordic univeristies • Unique investment and Development approach • Flexible • Virtual • Cost-efiicient • 100 + 800 million SEK investment funds raised • 60 commercial projects • 40 companies • 10 products in clinical trials

6. The Karolinska Institutet Innovation System Idea Flow Financing Idea flow Project evaluation and packaging Start-upand seed Early growth and expansion ExternalCapital KD III KIand other Nordic universities KD I KD II Venture Capital KIAB Exit Alliances / Trade Sales / IPO’s Companies Industry / Capital Markets Competence Network Legal Entity Concept Business development Flow Scientific IPR Company Karolinska Institutet Innovations System

7. Karolinska Institutet Innovations System Close to completion Karolinska Development II Karolinska Institutet Innovations Karolinska Development I Karolinska Development III Innovations system • Karolinska Science Park • Solna • Huddinge Actar

8. Karolinska Inc. ”Under a dynamic "CEO," Sweden's biomedical powerhouse is forging alliances intended to make it competitive with the Harvards and Cambridges of the world” SCIENCE 28 SEPTEMBER 2001 www.sciencemag.org

9. Karolinska InstutetA world class medical research hot spot • Broad medical research excellence • Cancer • Circulation and Respiration • Endocrinology and Metabolism • Infection • Inflammation and Immunology • Neuroscience • Movement and Reparative Medicine • Public and International Health • Reproduction, Growth and Development • Theory and prctice through close cooperation with Karolinska University Hospital • Top 5 in The Times Higher World University Rankings

10. KI’s innovation system (KIIS) turns scientist’s innovations into useful applications • Our mission is to turn promising innovations into useful applications to improve human health • We create a Win-win situation for all involved • Researcher • University • Society • Investors • In 7-10 years, we will develop projects to clinical stages and pass those on to industry • License Deals (30) • Companies (>30)

11. KIIS, founded 1996 and boosted from 2000, has special prerequisites and a good track record Key Facts KIIS • Has screened approximately 800 projects • Accepts <10% • Number of patents in the system: 107 • Number of projects in the system: 60 • Annual average of incoming projects: 100 • The system is capitalized with MSEK 800 • Number of companies founded: >30 • No of companies in the system: 40 • Number of closed license deals: 30 • Special prerequisites • Scientists own their inventions in Sweden • KIIS acts on a market and thus: • - writes contract with the inventors • can work and works with other universities • is built and run by industrial entrepreneurs • has pronounced commercial focus • No VC or seed was available 2002 – 2003

12. Karolinska Institutet Innovations AB • Entry point for all projects into KIIS • Commercializes life science research results Start house Research Idea/ Counselling Evaluation Seed company Business accelerator Growth; Maturation Divesting; EXIT License project € $ £

13. KIIS provides all necessary tools for turning innovations into profitable business, rewarding all involved parties • KI innovation system take responsibility for developing innovative and promising ideas by providing • necessary industrial development competence • seed-capital • access to key competences (IP, law, regulatory, business developers, marketing) • R&D management identifies synergies in portfolios • network of other scientific entrepreneurs

14. Karolinska Developmenttransforms world-class innovations into profitable commercial applications • Provides capital and competence • Operatively involved • Experienced R&D management • Pool of experts available for portfolio companies • Tools for value creation • Milestone driven financing • Adapt burn rate to maturity phase and potential • Ensure access to key competencies • Leverage synergies in portfolio • Recognize and execute early business opportunities

15. We are in the business of selling expectations KIIS process steps • World-class research • Thorough Selection Process • Development • Risk Diversification • Exit 5 3 4 1 2 Result = Validated Prototype + Expectations 7 years

16. Karolinska institututets excellence in cancer research is realized in KDs strong oncology pipeline Phase I Clinical Trials Phase II Clinical Trials` IND filing Preparation Lead Discovery Lead Optimization Preclinical Development OncoPeptides Novel alkylating peptides SpectraCure Photo-dynamic therapy device Axelar IGF-IR inhibitors Avaris Cell Protect Avaris Cell Select Aprea P53 restoration IMED Fas-FasL mAB Bioneris FGF inh OncoReg Radiation sensitizer Dilafor Heparin for metastasis ClanoTech VEGF modulation

17. Modified heparin on slow birth and malaria • Dilafor evaluates heparin derivatives’ effect on slow birth labour, malaria, and other indications. • The company established 2003, based on the research by Professors Gunvor Ekman-Ordeberg’s and Anders Malmström’s research on pregnancy and birth. • CEO: Anders Åsell, Employees: 3, Labs at Mälardalens Högskola Strängnäs, Uppsala University, Karolinska Institutet, and the University of Lund. • Now enrolling birth labour Phase II patients, conducting malaria field studies, conducting research in other indications. Drug discovery via research on birth

18. Novel more efficient drugs against cancer • Oncopeptides develops novel chemotherapeutics for the treatment of cancer, based on unique DNA reactive peptides (DR-peptide) concept. These DR peptides are effectively taken up by tumor cells and interact with tumor cell DNA. • The company founded in 2000, based on research at Uppsala University, Karolinska Institutet, and Gothenburg University. • CEO: Jack Spira, Employees: None, Labs at Uppsala University, Karolinska Institutet, and Gothenburg University. • Has fulfilled Phase I/II, and is now accepting patients for Phase IIa. Apoptotic cells treated with DR-peptides

19. We have succeded in bridging the gap between Academia and Industry

20. How do you pick the right seed?

21. Developing medical research into medical innovations is about connecting brilliant individuals • Our true accomplishment is connecting the right individuals

22. The entire society profits from effective innovation systems

23. Our teams consist of experts exclusively - a rebellious army of pharmaceutical fighters

24. It takes 20 years to journey from innovative research to introducing a new pharmaceutical on the market Big Pharma Biotech Society University

25. We transform academic excellence into new pharmaceuticals Investments International Pharmaceutical Biotech Med Tech Companies Medical research Industrial experience Investeringar

26. We have the potential to create a new generation Swedish Pharmaceutical companies

27. Karolinska Institutet Innovation System 2007Sweden’s 2nd largest ”Pharmaceutical” company 30 10 10 Pre-clinical development / Prototype Development / Product Clinical trial / Sales

28. The entire society profits from effective innovation systems • Academia • Tredje uppgiften • Lockar ledande internationella forskningsgrupper • Individual sceintists • May put research into applications • Develop new competence • Investors • New investment opportunities • Idea based on several years of costly research • Pharma industry • More projects in pipeline • Novel innovative products • Health care/patients • More better theraputics • Society • Economic growth • Return on investments in basic research • Job opportunities Long term investement in Technology Transfer pays off

29. Conditions and guidelines • Conditions • Inventor’s excellence • Industrial experience • Capital • Research infrastructure • International networks • Guidelines • Investment efficiency and risk reduction through mile-stone driven financing • Strong IPR • Burn rate is adopted to maturity phase and potential • Cost-efficient, rapid and high quality development process through • Immediate access to key competence from own organisation and • Virtual net-work of highly skilled professionals • Leverage synergies between portfolio companies • Recognise and execute early business opportunities