Finnish biotech year

1. Finnish biotech year 2016
6.9.2016 HealthBIO Seminar,Turku
Tero Piispanen, Turku Science Park Ltd

2. - Supply of VC financing for Life Sciences companies is scarce
- Early stage financing is mainly available from public sources and / or from
business angels
- High quality companies have funding options
- Focus on marketing activities and commercial collaborations is
important right from the early stage
- Networking with other biotech companies and Big Pharma companies
contributes also to VC financing opportunities
Status of Finnish Life Sciences
Financing
Source: PricewaterhouseCoopers, March 27, 2007

3. Finnish Biotech Highlights 9/2015 - 8/2016

4. Tampere:
Olfactomics Diagnostics (el. Nose)
Biomensio Diagnostics (drugs, food)
NeuroEventLabs Epilepsy diagnostics
Forciot Force measuring insole
Kuopio:
Aranda Pharma Drug development
13 New start-ups created
since autumn 2015
Capital region:
Sartar Therapeutics Drug development
Sygeny Health analytics
Nanoform Finland Nanoparticle production
Vitalsignum Simple ECG device
Turku:
Regal DNA Diagnostics (animals)
GenoMill Health Clinical genomics service
Microatmos Analytical services
Oulu:
Nukute Sleeping disorder solutions

5. Pharma
Bayer - Mirena product family sales € 968 M in 2015
- in H1/2016 Mirena sales grew to € 506 M
 Mirena was Bayer’s 4th biggest drug
Orion - H1/2016 net sales € 535 M (+3,9%), operating profit € 164 M (+4,5%)
- gains marketing approval for Sileo® (dexmedetomidine, AH) in the US
- expands development of ODM-201 with Bayer: starts Ph III trial with
patients having metastatic hormone-sensitive prostate cancer
- starts strategic collaboration with DZNE (German Center for Neuro-
degenerative Diseases)
- collaboration with Asahi Kasei Pharma in treatment of pain
- Orion’s API manufacturer Fermion invests € 30 M to a new 6000 m²
production facility
Success stories 09/15 - 08/16

6. Success stories 09/15 - 08/16
Selected Financial News
Faron Pharmaceuticals
- IPO at London AIM (IPO value £ 60.1 M), £ 10 M fundraise
- was awarded € 1.5 M from Tekes to progress Clevegen
Labmaster
- raises € 6.0 M from a South-Korean investor to develop detection
technology for clinical diagnostics
Aurealis Pharma
- completed 3.3 M CHF funding (Swiss and Finnish private investors,
Finnvera) to advance its multitherapy biologics for patients with
chronic inflammation and cancer
Aranda Pharma
- raises money from Chinese Tarrex and Finnvera, partners with
Tarrex (33% owner) on prostate cancer program

7. Success stories 09/15 - 08/16
Selected Financial News
Onbone
- expands € 10 M financing to € 13 M for Woodcast® launch
Fimmic
- closes € 1.5 M financing round to digitalize cancer diagnostics,
microscope image analysis in cloud
Brainshake
- completed € 3.5 M financing round (Cor Group, Finnvera, Nordea,
Tekes);preventive medicine in chronic disease through blood testing
Optomed
- closes € 3 M financing round (Robert Bosch Venture Capital)
Tilt Biotherapeutics Ltd, Netmedi Ltd, Injeq Ltd
- announce smaller funding rounds

8. Success stories 09/15 - 08/16
Strategic Project funding
Pharmatest Services
- received € 1.73 funding (Eurostars and EuroTransBio) to develop
patient-derived xenograft models for breast and prostate cancer
DelSiTech
- received H2020 grant money as part of the MOZART project to
develop inorganic nanomatrices for targeted drug therapies
Medfiles
- jointly with UEF and UTA received € 1.34 M in H2020 RESSTRORE
(Regenerative Stem cell therapy for STroke in Europe) project
Kaivogen
- together with UTU and Indian partners received funding from the
Wellcome Trust, to develop virus tests (HIV, Hep B&C) for India

9. Success stories 09/15 - 08/16
Strategic Project funding
Medixine
- raises € 1 M crowd funding (Kansalaisrahoitus)
- receives H2020 funding (C3-Cloud) to improve care of elderly patients
with multimorbidity
Innokas Medical
- got € 0.7 M from H2020 Fast Track to Innovation pilot, to develop
FlowOx, home treatment solution for Peripheral Arterial Diseas (PAD)
Lifeline Ventures
- launched a new € 57 M fund to invest in startups

10. Success stories 09/15 - 08/16
Deals, Scientific & Product Milestones / Drug development
Faron Pharmaceuticals
- has entered into a licensing agreement with Pharmbio Korea Inc.
for the development and commercialisation of Traumakine® in Korea
(€ 0.75 M signing fee, plus milestone & royalty payments)
- positive results from the Phase II study for Traumakine® in Japan
Montisera
- acquires patents and IPRs related to a specific extraction method for
knotwood from UPM, a Biofore Company.
Targovax
- received approval to Ph I/II clinical trial with ONCOS-102
- completed private placement of NoK 110 M (€ 12 M)
Medfiles
- received GMP-license from Fimea to manufacture IMPs
(ie. manufacturing batches for clinical trials)

11. Success stories 09/15 - 08/16
Deals, Scientific & Product Milestones / eHealth
BC Platforms
- partners with Auria Biobank in management of genomic data
- partners with Codigo46 (Mexico) to support the creation of the largest
biobank in Latin America
- provides Genomic Data Management Services to Monash University
in Australia and collaborates with Nexus (ETH Zurich)
Abomics
- starts producing genetic test interpretation data for Permedio, Austria
Commit
- starts a pilot project to test a production management system of
breast cancer screening in Saint Petersburg
Auria Biobank
- starts collaboration with Roche within drug development and
diagnostics

12. Deals, Scientific & Product Milestones / eHealth
Emfit
- launches 3G mobile data version of Emfit QS Sleep Monitor, which
tracks heart rate variability to analyze recovery during the night
Quuppa
- beacon-based real time location system facilitates the daily work
and monitoring in Nicklaus Children’s Hospital in Miami, US
Medixine
- collaborates with Sonera (Sonera HomeCare) in remote monitoring
of patients
Success stories 09/15 - 08/16

13. Diagnostics & Medtech Milestones
ArcDia International
- launched a product line for rapid diagnostics of acute gastroenteritis
Biohit
- signs distribution agreements of diagnostics portfolio in China and
India
- completes population-based screening study in Russia; GastroPanel®
detects patients at increased risk for developing gastric cancer
Bone Index
- has received 510 (k) clearance from FDA for the Bindex® point-of-care
instrument to help in osteoporosis diagnosis
Medicortex
- starts clinical trial to develop diagnostic kit for brain injury
Success stories 09/15 - 08/16

14. Success stories 09/15 - 08/16
Diagnostics & Medtech Milestones
Optomed
- signs distribution agreement with Essilor (D) for its retinal imaging
devices
Revenio Group
- FDA has granted Icare Finland Oy a permit to sell its next-generation
Icare ic100 tonometer on the US market
Planmed
- received CE-mark and Red Dot Design Award for its digital breast
tomosynthesis system
Lojer
- supplies ca 70 operating tables & accessories to Indonesian hospitals

15. Diagnostics & Medtech Milestones
HyTest
- 2015 sales grew to € 17.3 million
- record-high net operating profit of € 7.23 M or 41.7% of revenue
Revenio Group
- 2015 sales € 20.6 million (+26%)
- profit before taxes € 5.9 million or 29.2%
Success stories 09/15 - 08/16

16. Success stories 09/15 - 08/16
Mergers and Acquisitions
Biotie
- was acquired by Acorda Therapeutics for $ 363 M
PerkinElmer
- acquired Vanadis Diagnostics AB, who developes digital analysis of
cell-free DNA for non-invasive prenatal testing (NIPT)
Lojer
- acquired Fysiopartner AS, Norway’s largest supplier of physiotherapy
equipment
Nokia
- acquired Withings, French consumer electronics company focused
on digital health - for € 170 M
Farenta
- acquired Secret Files Ltd, a Clinical Research Organisation

17. Finnish Health Technology Industry
- the largest high-tech export segment (54%)
€ million € million
Health Technology, total Diagnostic Sector
Source: FIHTA, Keminateollisuus ry, Tulli, Lääketeollisuus ry
1920
896
213
506
CAGR 7,9% CAGR 13,2% CAGR 18,5%CAGR 8,6%
- medical equipment (incl. patient monitoring) sector the largest (70%)
- exports of reagents over 250 M€.
- Finnish pharmaceuticals export 852 M€ and added value 1300 M€
- pharmaceutical industry’s investment in Finland totaled 220 M€

18. A Deep Analysis?

19. EU vs US
- steady employment growth, US employs 2 x EU
- average Co in the US has 47 (43) and in the EU 32 (28) employees
- US R&D expense ($ 33,9 bn) 5,5 x EU ($ 6,2 bn)
Source: EY

20. Public Company Data
Source: EY
- US revenues remain 3 x those of EU
- 436 public companies in the US vs. 234 in EU
- US total market cap (889 $bn) almost 5 x EU (182 $bn)

21. Source: EY
7360
2480
Venture financings $ million
US venture financings about 2.5 times EU

22. Life Sciences Venture Investments:
EU vs Finland
Source: EVCA, EY
0
250
500
750
1000
1250
1500
2007 2008 2009 2010 2011 2012 2013 2014 2015
European Venture Financings, Million
€
- Finland represents 1,86% of EU VC investments in Life Sciences
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012 2013 2014 2015
Finland, € Million

23. Life Sciences Venture Investments as %
of all VC Investments
Source: EVCA
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012 2013 2014 2015
% of invested VC money
Europe Finland DK SE
- DK strong investor, SE averages EU, FIN low levels

24. Source: EVCA
Average investment per Co
- EU average investment € 2.0 M in 2015
- DK € 3.1 M
- FIN € 0.89 M
0
500
1000
1500
2000
2500
3000
3500
4000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Average Investment per Co
EU FIN DK

25. Future challenges

26. Source: Venture Scanner
0
20
40
60
80
100
120
140
Which Health IT Categories Are Seeing the
Most Innovation?
Number of companies per category in Health IT Startup
Incubators and Accelerators

27. Venture Investing in Health IT
Source: Venture Scanner

28. Thank You for your attention