1. A Case study of Biotechnology: - How to use Biotechnology for Economic Development Theme 3: IP Financing in the Field of Patents By Iain C Shirlaw Information Meeting on Intellectual Property Financing Organised by the World Intellectual Property Organisation (WIPO) Geneva, Switzerland, March 10, 2009

2. Introduction to Scotland –Population 5.1m –North West edge of Europe –Respect for Education –14 Universities –Produces 1% of world’s published research –Graduation rate of 39.2%, from first degrees * (#1 in OECD) –620 Life Science companies –31,000 Life Science jobs –In 2007, 20 new Life Science companies formed –£3 billion contribution to the economy

3. Scotland’s Biotechnology Fame Dolly the Sheep, and her lambs at Roslin

4. Time line 1413 St. Andrew’s University 1495 Aberdeen Medical school 1776 Adam Smith, “Wealth of Nations” 1975 Scottish Development Agency 1979 Venture Capital - Biogen 1981 Spin outs Monotech and Bioscot 1998 Pharmaceutical Proteins IPO 2004 Cyclacel first European Biotech $100m funding 2007 Haptogen acquired by Wyeth

5. Fashions in IP development Universities as source of learning and publishing. –1980 MRI scanner first demonstrated Aberdeen, but GE / Fonar fought patent for use of MRI in cancer detection Tech transfer and academic consultancies –Prof Stenlake’s Atracurium, £29m Science Parks –1971 Heriot Watt Research Park – first science park in Europe Spin outs –Aurora –Drug Development Scotland –Cyclacel Specialist IP asset developers and funders assets –British Technology Group –IP 2 IP –Braveheart –Exomedica

6. 1980’s Life Science investing Corporate Legacy: Glaxo, Roche, Organon –Coats Paton, Monotech Public Sector –Scottish Development Agency: Inveresk, Cruachem, Bioscot Venture Capital: –3is, Apax, Transatlantic Angel investors: –Biocure, Bill Bruce

7. Financing Sources Scottish Enterprise –LSBAS, Spin outs IPOs –PPL, Scotia, Scotgen, Biocure, Shield VC Funds –Scottish Equity Partners –Albany Ventures Angel Syndicates –Archangel –Braveheart

8. Government Investment Strategies SchemeBridging Research SMART Development Enterprise fellowships Entrepreneurship Proof of Concept New company Seed Fund Spin out Co-investment Angel investors Venture Fund

9. 21 st Century Development Frameworks Public Sector Initiatives –SMART –Enterprise fellowship –Proof of Concept –Start-up –Co-Investment Fund –Venture fund –Gateway Advisory Services –Life Science Business Advisory group –Life Science Alliance –Bio Industry Association Scotland –Nexxus Bioscience Network Angel Syndicates - Over 30 –Archangel –Braveheart –Highland –Tricap –Alybyn –Discovery Clusters –Edinburgh Science Triangle –Pentlands Science Park –Edinburgh Technopole –Roslin Bio Centre –Bio Campus –Heriot Watt Research Park –West of Scotland Science Park –Nova Technology Park –City Science Glasgow –Lanarkshire Medi-park, Strathclyde Business Park –Scottish Enterprise Technology Park, East Kilbride –Dundee MediPark –Dundee Technology Park –Scottish Crop Research Science Park –Dundee Technopole –Aberdeen Science & Technology Park –Foresterhill –Edinburgh Bio Quarter - $1 billion to create one of world’s finest Biomedical centres

10. The Next Issue - The funding gap

11. Conclusion Scientific IP Invention Development Market Produce Create Business Attract Investment Grow Business Internationalise Corporatise Progress IP from Upstream to Downstream to capture most economic value Biotechnology can be a very significant contributor to both local economic well being, and worldwide health improvements. One of a nation’s key assets is the ability of its people to invent, develop and commercialise. Scientists who are awarded government grants also have a responsibility to recognise the Value of IP to the economy and health and welfare of its people

12. Iain Shirlaw Contact details: Active Investment Partners Management Services Consulting Investment Iain.shirlaw@activeinvestmentpartners.com With Special Thanks and Acknowledgement in the preparation of this presentation to Alan Muir, Bill Harris, Pat Mc Hugh and Michael Cannon