October 6 th 2007 Palace Hotel Bari Highlevel

October 6 th 2007 Palace Hotel, Bari High-level Research and Education: Key-services for Developing an Industrial Biotech Cluster Speakers: • Dr. M. Antonelli, Merck. Serono S. A. (CH) XXIX Annual Conference • Ing. G. Risola, Merck. Serono Bari (I) MA & GR

Topics 1. Industry external factors expected to impact Pharma & Biotech businesses 2. Key factors for competitive advantage within local Health Care System 3. Can we look at Biotech models like Boston or Leman lake areas ? 4. How can the local Educational System “contribute” to deliver 5. What has to change? People’ Change 6. Conclusions MA & GR 2

Industry external factors expected to impact Pharma and Biotech Businesses Science & Technology ü Fast growing number of molecules deriving from the learning of auto-immuno deseases, oncology, neurology, etc. ü Exponential growth of recombinant Monoclonal Antibody technologies MA & GR 3

Industry external factors expected to impact Pharma and Biotech Businesses Social & Economics ü Balance between spending of Health. Care System and necessity to reduce global spending ü Growing Safety consciousness and requirements from Health Authorities ü Increase of Life Expectancy MA & GR 4

The case of Boston Area MA & GR 5

The case of Leman Lake Area MA & GR 6

Key factors for competitive advantage within local Health Care System ü Excellence in Medical science ü Excellence in Scientific Schools and Universities ü Dynamic & Diversified Industrial Business ü Good infrastructure and logistic ü Excellence in “Hosting System” ü Industrial oriented University research ü Attractive remuneration for professionals MA & GR 7

Pharma & Biotech do not need only Scientists !!! ü Biotech and Pharma Manufacturing ü Quality Management (QA & QC) including Regulatory affairs specialists ü Supply Chain & Cold Chain Management ü Process Development and Technology Transfer ü Technology Workshops and Start-ups ü Engineering, Maintenance & Validation ü Planning and ERP specialists MA & GR 8

Pharma & Biotech do not need only Scientists !!! ü Automation and IT ü Human Resources Management including training and development ü Process Improvement and Operational Excellence ü Industrial Cost Accounting ü Project Management ü Environmental Compliance MA & GR 9

How can the local Educational System “contribute” to deliver? ü A problem solved in a process, in a product, in a Plant is worth many Thesys or Doctoral work ü Local Industry must be seen as Customer ü One happy Customer may be a good reason to sacrify some “research” activity ü Several happy Customers mean fertile environment, generating additional crativity and interdisciplinary applications of successful business cases ü Technology transfer between University and Industry MA & GR 10

How can the local Educational System “contribute” to deliver? Sharing knowledge, experiences & good practices is challenging but is a winning exercise !!! MA & GR 11

How can the local Educational System “contribute” to deliver? ü More students sent to Industry for graduation work ü Incentives to Industries or Organisation hiring former “students” ü Intercompany Schools Sponsored by Universities, local Government, Region, Province, Industrial Associations and Industry: WHY ? to deliver specific Job Specialists, which training is not foreseen in targeted schools or University curricula, with trainers coming from both Academy and Industry MA & GR 12

How can the local Educational System “contribute” to deliver ? Such schools deliver specialists that can find a job locally or in other area and are provided with recognised certification at national level MA & GR 13

Proposed Virtuous circle in educational excellence Define Topics With experts from Health Care Develop and Customise Questionnaire Conduct final Assessment with industries HC institutions Define new Market needs Assess Projects at Clients Design & Implement Methodology, Start Assessment Deploy Strategy, Link Concept to KPIs Implement Projects & Share Analyse & Share, Design Projects Identify Educational gaps Set Targets Select best Business cases Implement Review Results Define Job families Review with Potentia Final customers Set Targets for Job fulfilment Share w/other schools Training on The job Fine tune Training for Higher success rate Share Best Practice MA & GR Define Potential for improvement Analyse Gaps 14

How can the local Educational System “contribute” to deliver ? Expectation of the “CLIENTS” ü To have local resources to be immediately employed, reducing time and cost of training on the job Expectation of “USERS” ü To find after school an alternative to University Studies that qualify for “focused” studies aimed to high specialisation ü The OFFER must increase, the Quality of the offer must excell ü And the measure of the quality is a simple bottom line indicator: % of users finding a job within 18 month MA & GR 15

What has to change? ü We cannot leave all the responsibility of our future to the Institutions ü We cannot expect an arid soil to get fertile after a single rain ü We need to be “original”, by re-inventing what others do well somewhere else and sustain initiatives aimed to qualification of skills needed NOT ONLY to large industries. ü It is time our local small industry enjoys top quality workers, technicians, managers to astonish and to attract more investments from somewhere else People change MA & GR 16

Conclusions We are sure there is nothing really new in what it has been said BUT ü It is time that people “take a course” and not “get a course” ü It is time that we ALL have to contribute to sustain this initiative and be extremely demanding MA & GR 17

Thanks for your kind attention See you next time in Bari MA & GR 18