1. The Metro Montréal Life Sciences Cluster Presentation by: Michel Leblanc, Vice-President, Life Sciences, Montréal International and Louise Proulx, Vice-Principal (Research), McGill University At the International Conference on Technology Clusters November 7- 8, 2003

2. Greater Montréal  Pop : 3.5 million, 47 % of Québec and 11% of Canada  GNP : more than $120 Billion, 50 % of Québec and 10% of Canada; a very diversified economy  63 cities, total area over 3 800 KM 2

3. Some numbers about the Cluster Life Sciences includes Pharmaceuticals, Biotechnologies, Medical devices, Bio-computing, Bio-genomics, Agri-Food … 274 companies and 125 research organizations 29 515 direct jobs, compared to 27 370 at the beginning of 2002 –A net increase of 2 145 new jobs, or 8 % –21 315 in the private sector and 8 200 in research organizations Presence of a solid core of large pharmaceutical multinationals Full continuum along the chain of value creation Fundamental research Development and clinical trials Production and commercialization

4. The Montréal Life Sciences Cluster

5. The Importance of Foreign Investments 50 % of the private sector jobs Nine of the ten largest employers –Merck Frosst Canada, 1 400 employees –Services pharma MDS, 1 200 employees –Clin Trials BioRecherche, 1 200 employees –Wyeth Canada, 1 200 employees –Laboratoires Abbott, 750 employees –Aventis Pharma, 750 employees –Pfizer, 650 employees –Bristol-Myers Squibb, 530 employees –Schering, 400 employees –Novartis Pharma, 350 employees

6. Our Approach Porter’s studies on innovative regions and the relevance of the concept of clusters for large metro areas We adopted a participative approach  Coordinated by a private not-for-profit economic development agency, Montréal International,  With the participation of the private sector, research centres, universities and training colleges, and governments Quick response  Mobilization : Sept 2001 - April 2002  Approval of a vision and an action plan : April 2002  Implementation : Summer 2002

7. A common vision, ambitious... yet realistic « To Position Greater Montréal as a Dynamic World Leader in the Life Sciences » Creating at least 16 000 new direct jobs by the year 2010 (Which implies doubling the observed natural job growth rate of the Cluster)

8. The Action Plan Includes « across the board » initiatives –Coordination and mobilization structure –Actions to improve and expand training capabilities –Measures to reinforce business creation and development –Initiative to create a powerful distinct image and launch an international marketing strategy... And specific initiatives to reinforce local centres of excellence –Strengthening the development of five existing centres and an emerging one –Integration of university hospitals within the core of the Cluster development

9. Coordination and Mobilization through the Montréal Metro Life Sciences Committee Meets 4 times a year Includes –Majority from the private sector : 5 CEOs (or equivalent) of large pharmas; 7 CEOs of Biotech and medical devices; 2 directors of business associations –Government : 2 deputy ministers, Canada and Québec –Institutions : 4 provosts (or equivalent), from each of the universities of the area; 1 Director of a training college representing all colleges in the area; 2 Directors of public research institutes –Other partners : 2 managers of venture cap. ; 2 directors of centres of excellence; the CEO and the V-P Life Sciences of Montréal International

10. Tradition of academic excellence and a history of research and innovation, which draw and help retain world class researchers Opportunities for the commercialization of innovative academic research Favourable business and investment climate Metro Montréal’s Life Sciences Cluster: Recipe for Success

11. Metro Montréal: Intellectual Capital of North America … Of the 30 largest cities in North America, Metro Montréal has the highest number of university students per capita A metropolis with world-class universities and excellent colleges: four Montréal universities offer specialized life sciences programs … And A Dynamic Environment for Training High Calibre Personnel A total of more than 6,700 students are presently enrolled in university-level life sciences programs in Metro Montréal More than 1,150 university health sciences degrees are awarded each year in Metro Montréal

12. Metro Montréal: A Research-intensive Metropolis Thousands of researchers conducting fundamental research in life sciences at: –More than 125 university centres, affiliated hospital research institutes or labs in Metro Montréal Combined sponsored research income for Metro Montréal universities 1st place in Canada and ahead of Toronto area universities –$776M (McGill, UdeM, UQAM, Concordia) vs. $507M (Ryerson; UofT; York) National and international interuniversity research networks based here

13. Commercialization of Research Each university has an industry-university liaison office, providing services to protect intellectual property and to commercialize research results Innovative research translates into innovative products, services and novel therapies through licenses and the creation of spin-offs

14. Monitoring our progress Job creation above and beyond the target of 2 000 per year Investment decisions in excess of $415 million in 2003 –DSM Biologics, expansion, $160 M –Ratiopharm, expansion, $80 M –Tyco Medical, expansion, $28 M –Aventis Pharma, expansion, $20 M –Draxis Pharma, expansion, $20 M –… Strategic decisions for the Cluster –Pfizer chooses to maintain its headquarters in Montréal after the integration of Pharmacia –Construction of Novartis’s new headquarters

15. Key challenges for 2003-2004 (1) 1.To stimulate an environment conducive to the creation of private venture funds and the attraction of foreign venture capital 2.To preserve a favourable business climate for innovation in the pharmaceutical sector 3.To preserve our competitive advantage in human resources –Improve the training of specialized managers –Increase the appeal of scientific careers –Train more technicians

16. Key challenges for 2003-2004 (2) 4.Adopt a marketing strategy for the Cluster itself (“branding”) 5.Reinforce research infrastructure and equipment –Consolidate the National Biotechnology Research Institute –Stimulate more synergy between businesses and our three University Hospitals –Encourage all possible synergy between public research and private partners