UNIVERSITY FOR INDUSTRY CONF II KRAKOW APRIL 2006

1
BIOPARKS THE EUROPEAN EXPERIENCE
CRITICAL SUCCESS FACTORS

• Lisette Mermod-Cox
• CEO, BDKT Lifescience Facilities

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Todays Presentation

• BRIEF HISTORY OF BIOSCIENCE PARKS
• HEALTHCARE INDUSTRY DRIVERS FOR BIOPARKS
• WHAT IS A BIOPARK?
• CRITICAL SUCCESS FACTORS FOR BIOPARKS
• CHALLENGES
• EUROPEAN EXAMPLES

3
Biopark Creation Growth

• History Science Technology Parks 1950s-1990s
• Stanford Real Estate Development
• Porter Bioclustering
• Luis Sanz Learning Village
• New Economy vs Traditional Industry 1990s-2000
• UK Bioclustering Report 1999
• German BioRegio Competition
• Critical review 2002-2003
• EU DG Research Commission
• NBIA USA
• Centre for Strategic Studies UK
• Global IASP Conference 2005 Beijing
• Demise of the university venture capital market
  failure
• Emergence of science and technology parks as new
  global convergence model for industry, academic
  and government to meet unmet needs

4
Healthcare Industry Drivers for Bioparks

• Bioparks are an innovative solution to the
  problems of healthcare RD, IT and therapeutic
  treatment in Europe and elsewhere.
• National, regional and local capital budgets for
  healthcare projects are under pressure to
  increase, without being able to project a
  proportionate increase in revenue.
• This affords the opportunity for commercial
  opportunties for new biomedical and biotechnology
  businesses sited at and around bioparks.
• Clinical research and trials facilities
• Diagnostic, screening, testing analystical
  laboratories
• Data Biologicals Storage logistics facilities
  and businesses
• Health sciences public education, training
  entertainment businesses

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What is the role of a biopark?

• The IASP currently does not have a precise
  definition for a biotechnology park.
• A science and technology park is an organisation
  which provides services and facilities to
  companies
• Geographical focus
• Linked to research institute, university or
  teaching hospital
• Driven by inward investment and economic
  development
• May be for-profit, most often not-for-profit
• Tenancy on park site the norm but not always a
  requirement
• The biopark is emerging as part of a global
  bioscience supply chain spanning from RD to
  healthcare delivery

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Definitions

• IASP Definition
• A science park is an organisation intended to
  enable, facilitate and often create new or
  enhance the growth of existing business entities
• Typically its goals include
• Inward investment
• Enterprise creation
• Job wealth creation
• To date the science park and incubator programmes
  have been top-down inputs driven, with few
  measurable throughputs or outputs

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Definitions

• BDKT definition
• A biopark is an organisation designed to attract,
  grow and sustain people and businesses within a
  biomedical-techno-scientific community by means
  of enabling and facilitating commercial
  relationships among the community.
• Typically its goals include
• Innovative convergence model for industry,
  government and research to produce innovation and
  inventions
• Promotion of the biopark community as a preferred
  partner or destination for wider community based
  upon existing expertise
• Redirect, increase or create new commercial
  activity among members of the community with
  global connectivity
• Serve as an engine/source of innovation and
  invention
• Integration of science, healthcare and technology
  into the social community (science-to-society)

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Critical Success Factors for Bioparks (1)

• To enable, facilitate and create new or enhance
  the growth of existing business entities a
  successful biopark organisation must promote and
  maintain a high quality business environment
• Attractive Positive International Business
  culture
• Respect for Intellectual Property Rights
  Protection
• High Quality Professional Expert Advisors (Legal,
  Patents, Regulatory)
• Client Focused, Service Culture
• Inclusive Behaviour Management Style
• Ability to promote/host/sponsor Collaboration
  Co-opition
• Market Aware Responsive
• Easy Access to Organisation and Community
• Clear Effective Communications
• Professional Flexible Management Approach
• Agile Problem Solving Attitudes
• Lean Organisational Operational Structure
• Competitive Pricing Structure

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Critical Success Factors for Bioparks (2)

• Ensuring Competitiveness in a Global Market -
  Quality
• The global healthcare system, pharmaceutical
  companies, their suppliers, information
  technology and the medical device industry are
  all clients and partners to the biotechnology
  sector.
• In order to meet the requirements of these highly
  regulated sectors a biopark organisation must be
  able to demonstrate excellence for enabling and
  supporting the competitiveness of the community
• Regulatory Affairs FDA/EMEA compliance
• GLP, GCP ICH Guidelines
• GMP, cGMP
• International commercial best practise
• Healthcare Accreditation (UK, USA) and Quality
  schemes (labs)
• Continuous Professional Training (CPDs)

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Critical Success Factors for Bioparks (3)

• Offering services, access to technology,
  equipment and patients, and specialist facilities
  at reduced risk and reduced costs to early and
  growing companies
• Shared technologies suites
• MASS/MASS/NMR
• Small larger scale animal models for
  pre-clinical ADME/toxicological testing
• Pilot Plant for the production of biological
  materials for clinical trials
• Ability to produce small doses in a variety of
  dosing forms for clinical studies
• Clinical Research facilities for Phase I studies
• 12-36 bed wards for healthy male volunteers
• Larger teaching hospital for Phase II, III IV
  studies of acute and critically ill patients
• Specialist dedicated clinical research units
  within chronic and acute wards

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Critical Success Factors for Bioparks (4)

• Global connectivity, networking sharing
  information competitiveness
• How well people communicate ideas and information
  informs the ability of the success of the biopark
  organisation. Investment into appropriate IT is
  critical to the competitiveness of its community
  and companies.
• Information technology is changing the
  opportunities for business. Time financial
  resources need not be duplicated on projects or
  ideas being developed by others in different
  markets.
• Open-resource competitions and co-opition are
  changing business relationships
• Networked Industry for Innovation
• Interdisciplinary Collaborations
• Teamwork
• Conferences, Workshops, Seminars
• Partnering
• Strategic Alliances
• Transnational reciprocal agreement facilities

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Critical Success Factors for Bioparks (5)

• Targeting Successful Biopark Clients Community
• Universities and hospitals have received the bulk
  of public sector investment (EU and national
  budgets) for creating new science parks.
• These traditionally organised institutions are
  thought by government to be the main sources for
  biomedical and biotechnology RD, innovation and
  inventions.
• The pharmaceutical industry has made good use of
  universities and their hospitals for contract
  research in the past 20 years in the UK/Europe on
  an ad hoc basis, often arranged by and contracted
  to individuals within large institutions.
• Most innovation bioscience companies have emerged
  from mature middle managers exiting established
  scientific and medical companies taking with them
  expertise and experience in industry.
• The latter are the most successful companies
  within science parks environments to date.

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Challenges for Bioparks

• Science parks are about business, not science.
  Business is global and local.
• Financing opportunities for start-up and grow on
  biotechnology and medical device companies in the
  Europe are seriously undervalued and first round
  investment is extremely limited. A biopark needs
  its own fund to survive.
• Many science park managers emerged from
  government civil service, university or hospital
  administration with little or no business
  experience or expertise.
• Many European universities and hospitals are
  still inexperienced with industrys intellectual
  property rights protection concerns.
• Many existing science parks have been pushed to
  spin-out new companies too early, which have been
  left underinvested and ultimately undervalued by
  industry.
• Global shifts in economic trends have resulted in
  emerging competition from India, China and Brasil
  for innovative science park models.

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EUROPEAN EXAMPLES San Raffaele Biomedical Science
Park

• Science Park Raf SpA, established in 1992, is a
  private company fully owned by the San Raffaele
  del Monte Tabor Foundation based in Milan and
  Rome, Italy.
• It acts as the interface between the Foundation
  and the business community in the life science
  sector (pharma groups, biotech companies, food
  and cosmetic industries) as well as merchant
  banks and venture capitalists, specialized in the
  valorisation of the results of Research
  Development activities of the San Raffaele
  Scientific University Institute. The mission of
  Science Park Raf SpA is to create value from the
  know-how, the intellectual property, the human
  resources and the research facilities available
  within the San Raffaele Biomedical Science Park
  of the Foundation, which includes
• the San Raffaele Scientific University Institute
  (one of the biggest Italian hospitals, with 1350
  beds, 140 clinical trials per year),
• the San Raffaele Research Institute (400 research
  scientists, 596 publications and 3096 impact
  factor in 2004),
• the Vita-Salute San Raffaele University, offering
  a medical school with Residency programs and PhD
  courses in Molecular Medicine and Cellular and
  Molecular Biology and faculties of Psychology and
  Philosophy.

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EUROPEAN EXAMPLES Atlanpole Nantes France

• Nantes Atlanpole is a 100 public sector funded
  and managed regional bio-clustering model in
  northwest France. With an annual operation budget
  of Euros 1.5m and a staff of 18 people it can
  make capital grants for new labs up to Euros
  60,000 per new company creation.
• The Biopole initiative is designed to facilitate
  technology transfer and commercialisation of
  research from a variety of public institutions,
  in the region.
• INSERM, INRA, Veterinary College, CNRS,
  University
• CHU NANTES (Hospital) Clinicians
• Cancerpole
• In 2002 Bio Ouest, with 11 biotech companies, was
  created in Greater Nantes area.
• During 2004 a bio incubator was created on an
  industrial regeneration site (shipping/dockyards)
  where other spin-out companies has also been
  sited.
• Today, Atlanpole has emerged as a serious
  contender among competitors Lyons as a leader in
  bio-analysis technologies, products and services
  with 39 new companies, 22 incubated in 2003
  alone.

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EUROPEAN EXAMPLES Cambridge Science Park, UK

• Cambridge Science Park is Europes oldest and
  largest centre for commercial research and
  development.
• Cambridge Science Park was established by Trinity
  College in 1970, which retains the majority
  ownership and control of the Park. on a property
  model for private companies to site their
  businesses.
• Trinity College invests in companies by providing
  the design and specialist fit-out of facilities
  in order to facilitate the process and ensure the
  success of technology transfer.
• Key aims of the Cambridge Science Park are
• to provide and foster close links with the
  scientific excellence of Cambridge University
• to facilitate technology transfer and economic
  regeneration
• to support RD companies from start-up to
  floatation
• to foster and encourage the growth of
  biotechnology and high tech research and
  development clusters
• to provide specialist facilities and technology
  transfer expertise to RD companies across a
  range of sectors
• to provide a green and environmentally
  sustainable park environment
• to provide high quality, flexible laboratory and
  office buildings to a community of 65 compatible
  neighbours also involved in scientific research
  and development
• to provide state of the art conferencing
  facilities to support Science Park activity

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EUROPEAN EXAMPLES Cambridge Science Park (2)

• In 2004, 70 Companies with 5000 employees exist
  on the 61.5 hectare site. Its operations are
  managed by Property Consultants, who manage
  145,540 sq m of Research and Development
  accommodation.
• The Park is 2.7 miles from Great St Mary's,
  generally regarded as the central point of the
  dispersed University of Cambridge. It is linked
  by a regular bus service and cycle routes.
• Comprehensive amenities and services exist on the
  park, from child care to conference centre and
  business services.
• After years of growth, limited by Green Belt
  planning authority restrictions, the Park is
  seeking to maintain its competitiveness in the
  face of global supply chain realignments by
  looking outward and extending the Cambridge
  Science park brand with MIT (USA) and elsewhere.

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Thank you for your attention

• Lisette Mermod-Cox
• BDKT Lifescience Facilities
• London, UK
• Mobile [phone]
• Office 44 1277 218 843
• Email LMC_at_bdkt.com
• Web www.bdkt.com