Golden Horseshoe Bioscience Network – Solutions for Life Golden Horseshoe Biosciences Network – Solutions for Life Darlene Homonko, PhD Executive Director Commercialization of Innovative Research: Implementing Solutions that Work for Canada Osgoode Hall,York University Toronto ON Thoughts for Successful Commercialization March 20, 2009

Golden Horseshoe Bioscience Network – Solutions for Life Partners in a Regional Innovation Initiative Network of business leaders, researchers, entrepreneurs, and economic development officers involved in biosciences, biotechnology, and related fields Industry Academic Institutions Health Sciences Centres & Hospitals Federal & Provincial Government Business Support Services Other Regions & Consortia Municipal Governments GHBN

Golden Horseshoe Bioscience Network – Solutions for Life Fundamentals 1.Assets 2.Opportunity 3.Resources

Golden Horseshoe Bioscience Network – Solutions for Life Cultures with Different Values Academia Publish Research Share information Answer to public Inclusive Driven by ideas Time insensitive Industry Patent Development Secretive Answer to shareholders Exclusive Driven by markets Time sensitive

Golden Horseshoe Bioscience Network – Solutions for Life Currency for Commercialization Research outcomes that produce value - Intellectual Assets –Patents –Copyrights –Trademarks –Know How

Golden Horseshoe Bioscience Network – Solutions for Life The Opportunity 3 Fundamental ‘Value Drivers’ - Competitive Product Advantage/ Markets Technology/IP opportunities Management

Golden Horseshoe Bioscience Network – Solutions for Life The First Steps Find people you can trust with business expertise Confidential Disclosure –written Non-Disclosure Agreement (NDA) Recommendations and referrals from credible sources Network

Golden Horseshoe Bioscience Network – Solutions for Life The First Steps (cont’d) Draw a roadmap – Development plan – Account for risks Set milestones Generate a business plan Know the market and the competition Advisory Boards with experience Board of Directors – Good governance starts day 1

Golden Horseshoe Bioscience Network – Solutions for Life Keys to Early Stage Success Orientation to products, markets and partners Focus on scientific milestones Patent strategy Operationally sound development plan Management Founders need to be engaged Commercial expertise Create value at every development stage

Golden Horseshoe Bioscience Network – Solutions for Life What does “creating value” mean? Data - validating the technology opportunity IP portfolio –dominant patent position –In-licensing Business or Development Plan –Execute Attracting ‘capital’ to continue development plan at a reasonable valuation Capturing value through partnerships

Golden Horseshoe Bioscience Network – Solutions for Life ‘Creating Value’ at the Early Stage Product - performs better & meets a need Vision for opportunity IP - Strong world-wide with freedom to operate Markets - Large and sufficient to repay major investments R&D Plan - Defined developmental milestones Manufacturing - practical and cost effective Structure matches opportunity - license vs. company Valuation – reasonable; keeping in mind next investor

Golden Horseshoe Bioscience Network – Solutions for Life Synergies to Build Value Valuation lllllll l llll l Discovery Pre-clinical Development Clinical Phase I Phase II Phase III years

Golden Horseshoe Bioscience Network – Solutions for Life Synergies to Build Value Valuation llllllllll l ll Research Pre-clinical Development Clinical Phase I Phase II Phase III years Market/Commercial Clinical Partnerships Vision - First Investment Technology - IP Development Plan Financial Plan

Golden Horseshoe Bioscience Network – Solutions for Life Typical Stage Valuations Valuation llllllll l lll l Research Pre-clinical Development Clinical Phase I Phase II Phase III years VAL: $500MM TIME: 2-5yrs 2yrs 5-7yrs 5 yrs WHO: UNIV. Start-up Partner Pharma

Golden Horseshoe Bioscience Network – Solutions for Life Issues Affecting Successful Commercialization Technology or Intellectual Property 38% Economics/ROI 35% Market 27%

Golden Horseshoe Bioscience Network – Solutions for Life Resources Networks RINs (GHBN), MaRS, HTX, MaRSLanding, Innovatech, BitNet, GHVF, TVG, NAO, OCRI…. Industry organizations Regional and Provincial economic development depts. –Small business enterprise centres Federal – Industry Canada, DFAIT etc. ORCIP

Golden Horseshoe Bioscience Network – Solutions for Life Government Funding Sources Ontario Research Commercialization Program (ORCP) –C4 POP Fund Ontario Commercialization Investment Funds (OCIF) Ontario Centre of Excellence (OCE) Networks of Centre of Excellence (NCE) Canadian Foundation for Innovation (CFI) Canadian Institute of Health Research (CIHR) - POP program National Science and Engineering Research Council (NSERC) - I2I program Ontario Genomics Institute (OGI)/Genome Canada

Golden Horseshoe Bioscience Network – Solutions for Life ON MRI Commercialization Programs 17 M Business Mentorship and Entrepreneurship Program 29 M Investment Accelerator Fund 24 M Innovation Demonstration Fund 90 M Risk Capital Fund

Golden Horseshoe Bioscience Network – Solutions for Life Government Resources (cont’d) SR & ED Tax Credits IRAP TPC funds Industry Sector specific Grants –Environment, Energy, Agriculture

Golden Horseshoe Bioscience Network – Solutions for Life Resources (cont’d) Venture capital Angel money Traditional Bank Financing Debt Financing Public Markets CPC Private or Public Corporation Investment Funds Microsoft, Johnson and Johnson, Dupont, Kirin etc.

Golden Horseshoe Bioscience Network – Solutions for Life Commercialization Support Business plans, Commercial strategy Link to MaRS for venture services –Evaluation & market research Access to capital Primary link in identifying government programs and resources Linkages to regional, national and international partners and investors Active business development and marketing Business mentors Work in partnership with ORCIP, other networks

Golden Horseshoe Bioscience Network – Solutions for Life Golden Horseshoe Biosciences Network – Solutions for Life Darlene Homonko, PhD Executive Director Darlene Homonko, PhD