Lithuania: Biotechnology Vladas Algirdas Bumelis President of “Santara Valley“ association Lithuania: Biotechnology

History of Biotechnology in Lithuania Several Biotechnology companies were established 1st biopharmaceutical product produced in Lithuania was approved by EMEA 1st Biotechnology plant was established Development of biopharmaceuticals was started 1970 1975 1984 1989 1990’s 2000’s 2008 2012 1970 1975 1984 1989 1990’s 2000’s 2008 2012 Institute of Applied Enzymology was established Recombinant interferon α-2b approved for human use. The 5th biopharmaceutical in the World 1st cGMP-compliant multipurpose biopharmaceutical production facility was established 1st biopharmaceutical product produced in Lithuania was approved by FDA

Life Sciences in Lithuania today 20% annual growth 10 biotechnology companies → 8 specialize in pharmaceuticals Total annual revenues > $ 105 million 90% of biotechnology production is exported to > 70 countries Annual average export growth – 16.1% (average export growth of total Lithuanian origin goods – 10.2%) Key strengths: Pharmaceutical proteins Chemistry and biochemistry of enzymes and nucleic acids Regents and tools for molecular biology

Highly Educated and Multilingual Talent Pool 1st in EU for share of graduates in total population 6th in EU for language knowledge – half of the population speaks at least two foreign languages 16 academic institutions 1,800 life science students at universities and colleges → 400 graduates each year 36 medals at International high school Science Competitions in the fields of chemistry and biology in the last few years

Advanced Research Base 16 R&D centres (incl. 5 major Universities) A pool of 18,000 researchers and specialists in life sciences Average annual growth of funds allocated to R&D – 34% Investment into R&D infrastructure in universities (new facilities, cutting edge technologies) > $ 525 million since 2009 Biotechonological and biochemical research conducted at: The Institute of Biotechnology (Vilnius University) The Institute of Biochemistry (Vilnius University) The Institute of Chemistry (Centre for Physical Sciences and Technology) Kaunas University of Technology Centre of Innovative Medicine Private research centres

Science and Business Valleys 5 integrated science, study and business valleys, designated for young innovative companies and academic entities: Valley, location MTEP directions Funding, million, $ Santara Valley Vilnius Biotechnology Innovative Medical Technologies Molecular Medicine 125,51 Sunrise Valley Vilnius Laser and Light technologies Material Sciences Nanotechnologies 122,22 Santaka Valley Kaunas Sustainable chemistry and pharmaceuticals Future Power Engineering 96,52 Nemunas Valley Kaunas Agro biotechnology Food technology 72,16 Maritime Valley Klaipėda Marine Environment Coastal research 78,46 Source: http://www.smm.lt/en/smt/valleys.htm

Lithuanian Innovation Strategy 2010 - 2020 Lithuanian Innovation Strategy for the Year 2010-2020 distinguish high-potential sectors: Biotechnology and laser technology Industry of electricity and optical equipment Clean technologies Future energies Creative industries Welfare and wellness

Favorable environment for R&D Lithuania provides attractive financial incentives for companies to finance their R&D efforts and offers the most favorable tax regime for R&D activities in the EU: Expenses incurred by companies carrying out R&D projects can be deducted from taxable income three times Long-term assets used in the R&D activities can be depreciated within two years Companies carrying out investments into new technologies can reduce their taxable income by up to 50% Investment expenses exceeding this sum can be postponed to later, consecutive tax periods (up to five years)  

Success Stories: TEVA Sicor Biotech Lithuanian Sicor Biotech was acquried by Teva Pharmaceutical Industries in 2006 190 employees (+50 more to be hired once the new manufacturing facility in Vilnius has been built) The only company in Eastern Europe that develops and produces modern recombinant biopharmaceutical products TevaGrastim©, a medicine used to stimulate the production of white blood cells, that is 30% cheaper than similar drugs on the market, but just as effective Research in biochemistry, molecular biology, modern gene engineering, biosynthesis, biopharmacy Produces recombinant proteins for medical use Products approved by EMEA in 2008 Filgrastim product registered by the US Food and Drug Administration (FDA) in 2012

Success Stories: ThermoFisher Scientific The world’s leader in molecular biology acquired Lithuanian Fermentas in 2010 400 employees → 100 of R&D staff Significant expertise in molecular biology and enzymology: Discovering restriction enzymes Genetic engineering Protein purification Nucleic acid purification and transfection A comprehensive line of production distributed in over 70 countries Extensive R&D experience and state-of-the-art facilities in Lithuania September 2012: opening of a new manufacturing plant and R&D facility (10,000 sqm)

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