Investment opportunities in Swedish Biotechnology Excellence in all

Investment opportunities in Swedish Biotechnology Excellence in all steps of drug discovery and development 06 March 2021 www. isa. se 1

Sweden: A strategic research location ”Sweden offers the best climate for research and innovation in Europe, as well as the highestquality workforce. ” Cap Gemini Ernst & Young, EU Enlargement: Driving Change in the European Life Sciences Industry 2004 06 March 2021 www. isa. se 2

Europe’s fourth-largest biotech industry Number of companies Source: Ernst & Young, "Global Biotechnology Report – The European Perspective", 2004 06 March 2021 www. isa. se 3

Rich history in life sciences ¡ Astra founded 1913, today part of Astra. Zeneca Global R&D headquarters in Södertälje Research HQ for gastrointestinal and cardiovascular research in Göteborg Research HQ for neuroscience in Södertälje ¡ Pharmacia The Nobel Prize award ceremony, held annually in Stockholm Founded in 1911, today part of Pfizer Spin-offs: Pharmacia Diagnostics, Pharmacia Biotech (now GE Healthcare) ¡ Home of Karolinska Institutet ¡ Home of the Nobel Prize - Eight Nobel Prize Laureates 06 March 2021 www. isa. se 4

Research and Innovation 06 March 2021 www. isa. se 5

A world-leading investor in R&D Total expediture on R&D, percentage of GDP, 2002 ”A great place to access new technology, with good R&D management and skilled scientists. ” Leon Bushara, Senior Executive Vice President, Corporate & Business Development, Serono Source: IMD, "World Competitiveness Yearbook", 2004 06 March 2021 www. isa. se 6

Leading Europe in biotech innovation Score, 2003 ”I am deeply impressed with the quality of Swedish research. ” ”The ability to integrate basic and clinical research is exceptional. ” Akira Ito, Senior research scientist, Sumitomo Pharmaceuticals Source: "Biotechnology Innovation Scoreboard 2003", European Commission 06 March 2021 www. isa. se 7

Internationally well regarded research Citations in clinical medicine per 1, 000 population Source: The Lancet, Vol 363, 2004 06 March 2021 www. isa. se 8

Swedish research breakthroughs Drug development and biotechnology ¡ ¡ ¡ ¡ Xylocain. TM, local anestethics (Astra) Dextran, Macrodex. TM, and Rheomacrodex. TM, blood plasma substitutes (Pharmacia) Salazopyrin. TM, anti-inflammatory (Pharmacia) L-dopa (Arvid Carlsson) Aptin. TM, non-selective betablocker (Astra) Amipaque, nonionic x-ray contrast medium (Nyegaard & Co) Bricanyl, selective beta 2 stimulator (Astra) Healon. TM, ophthalmic device (Pharmacia) Seloken. TM, selective beta 1 blocker (Astra) Nexium. TM, Astra. Zeneca Thromboxanes, (Bengt Samuelsson, Hans Bergström) Pulmicort. TM, cortico-steroid (Astra) Fragmin. TM, low-molecular-weight heparin (Pharmacia) Genotropin. TM, human growth hormone (Kabi Vitrum and Genentech U. S. ) Losec. TM/Prilosec. TM, ulcer medicine (Astra) Plendil. TM, calcium antagonist (Astra) Nexium. TM, proton pump inhibitor (Astra. Zeneca) 06 March 2021 www. isa. se 9

Swedish research breakthroughs Medical devices, diagnostics & biotech supplies ¡ Sephadex, gel filtration chromatography Pharmacia Biotech ¡ Artificial kidney Gambro ¡ Ig. E allergy diagnosis Pharmacia Diagnostics ¡ Respirator Siemens-Elema ¡ Implantable pacemaker Siemens-Elema ¡ Brånemark implant systems Nobel Biocare Elekta Gamma Knife ¡ Gamma knife Elekta ¡ DNA sequencing technology Biotage ¡ Biosensors Biacore ¡ Next successes? Aerocrine, Affibody, Global Genomics, Olink 06 March 2021 www. isa. se 10

Positive bioethical climate ¡ Population positive to biotech research ¡ Easy to recruit patients for clinical trials ¡ Supportive legislation 06 March 2021 www. isa. se 11

Infrastructure 06 March 2021 www. isa. se 12

Unique public healthcare system catalyst in drug development ¡ Personal identity numbers introduced in 1947 ¡ Outstanding ability to track patients over time ¡ Collection of unique databases available for research; In-patient care register, Generation register, Swedish twin register etc. ¡ Register with 140, 000 twins most extensive in the world ¡ Renowned MPA, Medical Products Agency ¡ Biobanks and tissue databanks 06 March 2021 www. isa. se 13

Six renowned medical universities Good skills supply ¡ Stockholm: Karolinska Institutet, Royal Institute of Technology (KTH) ¡ Göteborg: Sahlgrenska Academy, Chalmers Institute of Technology ¡ Lund/Malmö: Lund University, Lund Institute of Technology, Malmö University ¡ Uppsala: Uppsala University, Swedish University of Agricultural Sciences (SLU) ¡ Linköping: Linköping University, Linköping Institute of Technology ¡ Umeå: Umeå University, Swedish University of Agricultural Sciences (SLU) 06 March 2021 www. isa. se 14

Home to two of Europe’s finest clusters Stockholm/Uppsala and Medicon Valley each have more than 100 biotech companies 06 March 2021 www. isa. se 15

Strong in industry/academia collaboration Business collaboration with local universities in their R&D activity is 1 = minimal or nonexistent to 7 = intensive or ongoing Source: “The Global Competitiveness Report 2003– 2004”, World Economic Forum. 06 March 2021 www. isa. se 16

“The best country to be a bioresearcher” Newsweek, July 26, 2004 ”A culture of innovation breeds biotech start-ups. ” ”The [Nordic] region has an enviable record not just of innovation but of wringing profits out of high-tech breakthroughs. ” 06 March 2021 www. isa. se 17

Biotech industry 06 March 2021 www. isa. se 18

Industry focus: Drug development and biotech tools & supply Biotech firms, segment distribution Source: "Swedish Biotechnology", IVA/Vinnova 2003 06 March 2021 www. isa. se 19

Strong product pipeline 06 March 2021 www. isa. se 20

Industry achievements 2003/2004 ¡ Carlsson Research 100 MUSD deal with Merck for lead compound in dopamin stabilizer field (Mar ’ 03) ¡ Medivir Licenses MV-310, alovudine, ph II compound for multi resistant HIV, to Boehringer Ingelheim. 138 MUSD (Jul ’ 03) ¡ Biovitrum Potential >500 MUSD license agreement with Amgen for BVT. 3498 (11ßHSD 1 enzyme inhibitors) for type-2 diabetes in phase IIb trials. (Aug ’ 03) ¡ Cellartis Collaboration agreement with Tanabe for embryonic stem cell research in the area of neural repair (Sep ’ 03) ¡ Index Pharmaceuticals 30 MUSD licensing deal with Serono on antiinflammatory drug Kappaproct in phase II trials (Feb ’ 04) ¡ Orexo 22 MUSD. North American sales rights to Rapinyl, for management of breakthrough cancer pain, sold to Endo Pharmaceuticals (Aug’ 04) 06 March 2021 www. isa. se 21

A great location for R&D Source: Cap Gemini Ernst & Young, "EU Enlargement: Driving Change in the European Life Sciences Industry", 2004 06 March 2021 www. isa. se 22

Among top-6 receivers of FDI projects Distribution of 200 R&D projects in life science, 1997 -2002 Source: Cap Gemini Ernst & Young, "EU Enlargement: Driving Change in the European Life Sciences Industry", 2004 06 March 2021 www. isa. se 23

Sweden has a cost advantage Source: Mercer Sweden, Invest in Sweden Agency, 2004 06 March 2021 www. isa. se 24

Good reasons to invest in Sweden ¡ One of Europe’s largest biotech industries. ¡ Strong academic science base and pharma/biotech tradition. ¡ Companies cover all steps of value chain in drug development. ¡ Close links and collaboration tradition between industry, universities and public healthcare system. ¡ Cost-efficiency in R&D. ¡ Good access to skilled and experienced staff. ¡ Professional VC market, several dedicated pharma and biotech funds. 06 March 2021 www. isa. se 25

Investment proposal 06 March 2021 www. isa. se 26

Strategic research collaborations Foreign company/Partner Amgen (US) Boehringer Ingelheim (Germany) Danone (France) Endo Pharmaceuticals (US) Glaxo. Smith. Kline (UK) Lundbeck (Denmark) Merck (US) NIH (US) Serono (Switzerland) Sumitomo Pharmaceuticals (Japan) Tanabe Seiyaku (Japan) Wyeth (US) 06 March 2021 Swedish partner Biovitrum Medivir Probi Orexo Medivir Neuronova Carlsson Research Cellartis In. Dex Pharmaceuticals Karolinska Institute Cellartis Karo Bio “Sweden is among Europe’s most progressive biotechnology countries. ” Scott Foraker, Vice president and Head of licensing activities, Amgen www. isa. se 27

Other recognitions ¡ Home to MPA, Läkemedelsverket, the EU’s most frequently used medical body. ¡ Availability of unique health data registers. ¡ All of the world’s best-selling drugs have been tested on Swedish patients. ¡ European Center for Disease Prevention and Control (ECDC) placed in Stockholm. 06 March 2021 www. isa. se 28

Sweden preferred location for clinical trials Abbott Alcon Allergan Amgen Astra. Zeneca Aventis Baxter Bayer Boehringer Ingelheim Bristol-Myers Squibb Eli Lilly Fujisawa 06 March 2021 Glaxo. Smith. Kline Janssen-Cilag Johnson & Johnson Merck Novartis Pfizer Roche Sanofi-Synthélabo Schering-Plough Serono Wyeth Yamanouchi “Big Pharma usually strive to register new drugs in the US, Europe and Japan at the same time. Sweden is an excellent choice for the European portion. ” Christopher Round, Managing Director, Merck Sharp & Dohme (Sweden) www. isa. se 29

Attractive destination for VC investment ¡ Sweden is among Europe’s largest recipients of venture capital in life sciences Share of European VC investments in life sciences ¡ Several specialized VCs: Health Cap, H&B Capital, Innovationskapital, Investor Growth Capital, Scandinavian Life Science, etc. ¡ > 90 percent of the committed capital in the Healthcap IV fund originated with non-Swedish investors. ¡ Foreign VCs are present. Source: European Private Equity & Venture Capital Association, Yearbook 2003 06 March 2021 www. isa. se 30

Sweden – some basic facts 06 March 2021 www. isa. se 31

World’s largest recipients of FDI 1999 -2003, USD billion * Figures for Belgium and Luxemburg are not comparable since the registered capital flows to a large extent are channeled to other countries. Source: Unctad, World Investment Report 2004 06 March 2021 www. isa. se 32

A diversified economy Of Swedish origin Industry sector distribution of exports Source: Statistics Sweden. Figures for the period January to September 2004. 06 March 2021 www. isa. se 33

Home to leading multinationals Sweden’s largest companies, sales 2003 Volvo Group, automotive 174. 8 Skanska, construction 132. 9 Electrolux, household appliances 124. 1 Ericsson, mobile systems 117. 7 Vattenfall, energy 111. 9 Coop, retail 86. 0 SCA, pulp & paper 85. 3 Skandia, financial services 75. 4 Securitas, security solutions 58. 9 H&M, clothing 56. 6 The Volvo YCC concept car, developed by an all -female team. SEK billion, 9 SEK = 1 EUR 06 March 2021 www. isa. se 34

Among EU’s best innovation performers Innovation performance index Source: "European Innovation Scoreboard 2003", European Commission 06 March 2021 www. isa. se 35

Contacts & further information ¡ Biotechnology publication available for download at www. isa. se. ¡ ISA contact: Ylva Williams Director, Life Science Tel: +46 8 402 78 80 ylva. williams@isa. se ¡ ISA website contains wealth of information for investors 06 March 2021 www. isa. se 36

Photos: www. imagebank. sweden. se Slide 1: Photographer/ ©: Neuronova Slide 5: Nobel Prize, Photographer: Henrik Montgomery ©: Pressens Bild Slide 6: Malmö public library, Photographer: Alex Brandell ©: Malmö Turism Slide 10: Astra. Zeneca Slide 11: Elekta Slide 12: Stem cell research, Photographer: Marie Ullnert ©: Pressens Bild Slide 13: Photographer: Ulf Owende ©: Bildhuset Slide 19: Photographer: Ulf Hinds ©: Stockholm Visitors Board Slide 27: Autumn colours Photographer: Håkan Sandbring ©: Position Skåne / sydpol. com Slide 32: Children on beach, Photographer: Håkan Sandbring ©: Position Skåne / sydpol. com Slide 35: Concept car, Volvo Cars 06 March 2021 www. isa. se 37