First Annual Meeting

David Johnson, President and CEO BioCrossroads Indiana CTSI Annual Meeting January 7-8, 2009 BioCrossroads

Indiana is a national leader in the life sciences, including a strength in medical devices and equipment Indiana is one of only three states (California and North Carolina, plus Puerto Rico) to have specialized bioscience employment in three of four niche subsectors – Drugs and Pharmaceuticals, Medical Devices and Equipment, and Agricultural Feedstock and Chemicals (BIO/Battelle 2008) Warsaw, Indiana is home to nearly half ($8 billion) of the nation’s orthopedic device industry with over 20 major orthopedics device design, production and manufacturing companies Indiana is also a leader in cardiovascular and other medical devices with companies, including Cook Group (the world’s largest private cardiovascular device company), Boston Scientific, Roche Diagnostics, Beckman Coulter, and Hologic Indiana has gained bioscience jobs at twice the nation’s average (BIO/Battelle)

Indianapolis Beckman Coulter (280) Covance (1,000) Dow AgroSciences (1,000) Eli Lilly and Company (12,000) Hologic (200) Medco (1,300) Roche Diagnostics (2,700) WellPoint (4,500) Warsaw Zimmer (2,500) DePuy (1,200) Biomet (1,400) Bloomington Indiana University Baxter Biopharma Solutions (825) Cook Group (2,200) Evansville Bristol Myers Squibb (300) Covance (200) Mead Johnson (1500) Terre Haute Eli Lilly and Company (200) Rose-Hulman Institute of Technology Seymour/Spencer Boston Scientific (800) Cook Urology (400) UCB Group (360) Lafayette Eli Lilly and Company (800) Purdue University Purdue Research Park Indiana’s life sciences leaders (and workforce)

What is BioCrossroads? BioCrossroads is Indiana’s initiative to build on our life sciences strengths WE INVEST: By launching and investing in new life sciences enterprises WE CONNECT: By partnering with Indiana’s life sciences research institutions, corporations, philanthropic organizations and state government to build new opportunities WE EDUCATE: By expanding science and math education in grades K-12 and higher learning institutions WE SPREAD THE WORD: By marketing Indiana’s life sciences industry

How BioCrossroads Works WE CONNECT by creating new life sciences enterprises: –IHIE – Indiana Health Information Exchange, Inc. a non-profit corporation advancing a national model for the secure sharing of clinical information among healthcare patients, providers and other healthcare entities. –Mergetics – a new for-profit corporation that will market and implement clinical messaging and clinical quality solutions to communities beyond Indiana’s borders –Fairbanks Institute for Healthy Communities– an enterprise utilizing Indiana’s vast clinical resources to gather comprehensive patient clinical and biological information for the prediction, prevention and treatment of disease. –BioCrossroadsLINX –advancing Indiana's strengths in drug development and manufacturing through educational and workforce development programs and regional collaborations. –Datalys Center for Sports Injury Research and Prevention- a national non-profit organization providing research and surveillance services to sports and health organizations Mergetics

How BioCrossroads Works WE INVEST by forming venture funds to provide money for new companies: –Indiana Future Fund I – a $73 million fund-of-funds (managed by Credit Suisse) –Indiana Seed Fund I – a $6 million “pre-venture” fund (managed by BioCrossroads) –More investment funds coming in 2009 “I do great science but I didn’t know how to structure a business...They were such wonderful guides.” - Linda H. Malkas, CS- Keys Co-founder and Indiana Seed Fund recipient

How does BioCrossroads measure success? By putting Indiana on the national map of life sciences, biotechnology, medical device and health care information centers.

We start with a good map today…

Indianapolis - 9th largest life sciences employment sector in the U.S. Metro areas with the largest total employment levels (greater than 10,000) in the BioSciences by Major Subsector Composition, Battelle “Growing the Nation’s Bioscience Sector: A Regional Perspective” 2007

And now we have other national distinctions:

Indiana is a national laboratory for health care reform “Health care modernization” will be driven by better clinical information, and Indiana is a national leader in this field Indiana has nationally-recognized health information assets – Regenstrief Institute – an internationally recognized clinical informatics and health care research organization – The Indiana Health Information Exchange regional health information network, started by BioCrossroads, is “the most advanced in the United States” (Health Affairs, Aug. 2007) – Mergetics, a newly formed spin-off from IHIE, will connect Indiana’s health information exchange model to new communities outside the state – The NIH has recently made a Clinical and Translational Science Award to the IU School of Medicine that will include a new “health economics” platform for enhanced health outcomes, driven by the Regenstrief Institute and HealthCore, a health care subsidiary of WellPoint

Indiana is a national success story for public-private partnerships Clinical and Translational Science Institute (CTSI) – IUSM, Purdue and Notre Dame – $25 million grant from the NIH to fund collaborative university-industry translational research programs – Federal dollars will be supplemented by another nearly $60 million from IU and Purdue, the State of Indiana, Eli Lilly and Co. and the Richard M. Fairbanks Foundation, Inc. The State of Indiana’s important and supporting role within the life sciences sector – Established 21 st Century Fund through the Indiana Economic Development Corporation (half of the 62 funded are life sciences companies) – Aligns economic development efforts with life sciences strengths (7,000 new life sciences jobs; $700 million company investments since 2005) – Department of Workforce Development has targeted specific training programs to advance Indiana’s biotechnology and orthopedics workforce

Indiana is a national leader in economic cluster development Central Indiana – from West Lafayette (Purdue University) to Indianapolis to Bloomington (Indiana University) – High concentration of both established corporate headquarters and start- up/entrepreneurial organizations – Central Indiana is home to a “$13.6 billion global life science hub” (Standard & Poor’s 2008) Biopharmaceutical and medical device contract services – More than 50 biopharma contract development and manufacturing service providers (CROs) are located throughout Indiana, with many medical device suppliers located within the state as well Warsaw, IN – Orthopedics Capital of the World – Warsaw companies account for ½ of the U.S. orthopedics industry annual revenues ($8 billion) – Headquarters for BioMet, DePuy, and Zimmer, supported by other major orthopedic companies, including Symmetry, Paragon and more than 20 others – BioCrossroads is working on a collaboration industry with IUSM, Purdue and Notre Dame for orthopedics research and innovation

Indiana is a national model for inter-regional collaborations In a unique partnership, Indiana and San Diego working together to bolster complementary strengths in biotechnology innovation: Indiana – biopharma development and manufacturing; and San Diego – biotech discovery BioCrossroads is collaborating with CONNECT, the San Diego region's nationally renowned organization of businesses and universities building 21 st century companies, as well as BIOCOM, the nation’s largest regional biotechnology association headquartered in San Diego BioCrossroadsLINX is working with San Diego and Indiana research institutions to find additional areas of collaboration within biotech discovery and development

Indiana is a national destination for venture investment In 2004, Indiana had no local VC community for life sciences investments and attracted no national venture capital firms Today, there are at least 18 angel, seed and venture capital funds actively looking for deals in Indiana, including 7 now organized and based here and focused on Indiana’s life sciences opportunities 2007 saw $136.6 million in venture capital invested in Indiana companies; a record year and triple the amount invested in 2002 Indiana’s model for VC success is a unique, market-driven approach, bringing together a diverse group of institutional investors focused first and foremost on return

The Indiana CTSI will play a pivotal role in the success of all 4 of our major BioCrossroads Initiatives in 2009: Catalyzing Indiana’s national strengths in healthcare information, health outcomes and “healthcare modernization” (Mergetics/IHIE) Accelerating translational research to inspire the growth of new companies for capitalizing by our seed and venture funds (Indiana Future Fund/Indiana Seed Fund) Developing the research infrastructure to secure Indiana’s place as an international center for biopharmaceutical development and manufacturing (BioCrossroadsLINX) Advancing collaborative, statewide innovation to support Indiana’s unmatched capabilities in orthopedics (Orthopedics Initiative)