Quantum Genomics in France

1
Quantum Genomics in France
2
Presentation Overview

• The company - Quantum Genomics
• Reasons for and advantages of coming to France
• Problems
• Advice

3
Business Overview

• Biotech Startup company with 1 US Employee, 5
  French
• Owned by a New Jersey-based US Holding Company,
  financed by US investors
• Investors wrongly Afraid of French Law/Taxes

4
Business Model
Public and Private Labs Research manipulations
and tests
Compounds and knowledge
Pharmaceutical Companies Compound
Development (Phase 3)
Academic Research Compound Discovery
Quantum Genomics Compound Development (Phase
2A/2B)
Royalties and licensing fees
5
Business Opportunity

• Saturated US Market
• Underexploited European Market
• Most universities still accessible
• Specific compounds still available
• Few Competitors

6
Opportunity Exploitation

• Conclusion Establish business in Europe
• Action In 2006 Quantum Genomics decided to
  locate its European Headquarter in
  Massy-Palaiseau
• Strategic Vision Use French location as a
  stepping-stone into the rest of European Market

7
Why France?

• The 5 main reasons for coming to France
• Quality of Access to Research
• Pole de Compétitivité
• Young Innovative Company (YIC) initiative
• 4) Easy to Do Business in France
• 5) Founding Executive is French

8
1) Quality of and Access to Research

• Research Requires Patients/Blood/Cells
• 80 of Inserm research is done in Hospitals
• 50 of researchers/labs are in Paris Region
• Academic Researchers More Open to French Company

9
2) Pole de Compétitivité

• Theres a biotech cluster in the south of Paris/
  The Saclay Region
• Business cluster
• a geographic concentration of interconnected
  businesses, suppliers, and associated
  institutions in a particular field
• Advantages
• Research suggests that clusters have the
  potential to affect competition in three ways
  (Porter, 1990)
• by increasing the productivity of the companies
  in the cluster,
• by driving innovation in the field
• by stimulating new businesses in the field

10
3) Young Innovative Company Initiative

• Which companies qualify?
• Main Benefits
• Provide incentives for companies
• Social Costs
• Income Tax Benefits
• Provide Incentives for Investors
• Capital Gains Benefits

11
4) Easy to Do Business in France

• Myth of the 35 hour work week
• No language barrier researchers are used to
  publishing and working in English
• Invest In France Agency assists with placement
• Segard believes individual life in France is
  quite easy, which is good for French employees

12
5) Founding Executive is French

• This was also an important reason for choosing
  for France
• Footnote Bias in location decision
• He might have been more aware more aware of
  opportunities in France than elsewhere in Europe
• He might have a natural preference for France

13
Why Saclay region?

• Excellent Researchers/Facilities
• Real estate prices are higher in Paris than in
  Saclay
• Pole de Compétitivité in Saclay
• Easy Access to Transportation

14
Problems

• The company did not encounter any significant
  problems in its adaptation process to France
• This can be explained by the fact that the
  founder was French
• Knowledge of French labor laws
• Knowlegde of French fiscal system
• Used to French culture

15
Advice for new entrants

• Consider Incentive Programs From French
  Government (e.g. YIC)
• Have an External Financing Plan Low venture
  capital activity in France
• Employ locals who are familiar with the French
  labor laws and fiscal system
• Lionel Segard (2006)
• Lionel Segard, CEO
• Quantum Genomics Corp SAS
• LOdyssée 2-12, chemin des Femmes
• 91300 Massy
• lionel.segard_at_quantumgenomics.com

16
Bibliography

• References
• M.E. Porter (1990). The competitive advantage of
  nations. Free Press. New York.
• www.ville-palaiseau.fr
• www.competitivite.gouv.fr
• www.france-biotech.org
• www.investinfrance.org
• www.quantum-genomics.com

17
Thank you for your attention!

• Any Questions??

18
Our Team

• Eric Mara, 26 Far Hills Drive, Avon, CT 06001,
  USA
• Amelie Bommier, 18 bis rue du plateau St-Antoine,
  78150 Le Chesnay, France
• Richard Roberts, St. Leonards, Station Road,
  Dairsie, Fife, Scotland, KY15 4SP
• Willem Giebels Middelreuvelt 24, 5971 DD
  Grubbenvorst, The Netherlands.