1. The Myelin Repair Foundation Open Science Summit July 31, 2010 A New Paradigm for Medical Research

2. Drug Discovery Today

4. Pharmaceutical R&D output flat despite increasing spend... 1. IMDs (Incrementally Modified Drugs) are new derivatives, formulations and combinations 2. NME (New Molecular Entities) include both chemical and biological therapeutic agents, excludes contrast agents and diagnostics Source: FDA, PhRMA 2005 Yearbook … but NME approvals relatively flat No. of approvals NMEs INDs R&D spending has grown steadily… ($B) CAGR 11.3% CAGR 10.5% Domestic R&D R&D abroad

6. The System is Broken

8. 08/01/10 Sponsored Research Ben Barres Robert Miller Steve Miller Brian Popko Multiple

10. Crossing the Valley of Death – Accelerating the transition from promising targets to clinical candidates Percentage of total cost of success $880M 19% 23% 5% 10% 7% 10% 11% 1% Source: BCG economic model study in Biomedical Industry Advisory Group, 2005; BCG clinical development model, 2007 Target Validation Screen- ing Target ID Optimi-zation Pre- clinical Phase I Phase II Phase III Filing NDA 14% 71% of industry costs 1.0 0.4 2.7 1.5 1.5 2.5 1.5 14.7 2.0 1.6 Avg. time (yr) ARC II 15 - 30 Cost ($M) Basic Research MRF’s ARC Model Proposed ARC Expansion

14. 08/01/10

16. The only non-profit medical research foundation that participates in the entire continuum of drug discovery