Funding Discovery The Role of Global and Regional Venture Capital in Starting Promising New Life Sci

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Funding DiscoveryThe Role of Global and
RegionalVenture Capital in Starting Promising
New Life Sciences Companies in Asia
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
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Global Seed Capital LLC
Global Seed Capital LLC is a Boston-based seed
venture financing company with investment
interests in media, Internet, infrastructure
software, and bio-IT sectors Setting up
Franklins Kite, a US300 million private equity
fund focused on mid-market companies in the life
sciences and IT sectors in Boston, southern
California, northern California, DC/VA, and
NY/CT Currently funding www.biopeer.com, a start
up dedicated to becoming the worlds largest
community of freelance life sciences researchers
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
3
RD productivity has plummeted, expenditure has
skyrocketedBig pharma pipelines are thin
40bn of drugs will lose patent protection
during the next five yearsMajor fight looming
in the U.S. Patent vs generics (this will
reverberate worldwide)Aging industrialized
world populations set to place huge financial
demands on healthcare industriesWorldwide
economy set to rebound in 04
Global drug industry snapshot
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
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An American perspective
Big gap between American VCs and Asian
biotech Poor information flow Poor visibility
on local market needs and opportunities Poor
protection of IP China is a big
opportunity Japan is liberalizing
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
5
Of the Top 10 global pharma, none are
AsianShould this change?Top 101 Pfizer2
GSK3 Merck4 AstraZeneca5 Bristol-Myers
Squibb6 Aventis7 Johnson Johnson8
Novartis9 Lily10 Wyeth
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
6
Are American and European VCs active enough in
Asian life sciences start up scene?Are
regional, non-government players stepping up to
the plate?
Venture Capital Questions
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
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RD costs are skyrocketing
Source Tufts, CSDD 2002
Source Forester Biotech
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FDA Approvals have plummeted
Sources FDA, Accenture
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Where does Asia fit into this RD
picture?Should Asia compete with major American
and European drug companies on the world
market?Should venture capitalists care?
Question
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
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Whats missing?Ingredients for Asianlife
sciences start up success

• Money (seed, VC, public, capital markets)
• Technology
• Strong academics
• Executive talent
• Access to global markets

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Where does Asia fit into the global drug market
landscape?RD leader?Manufacturer?Consumers?E
xporter?Marketing Distribution?
Question
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
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Asian Venture Capital What kinds of companies
to fund?

• Blockbuster drugs
• Generics
• Manufacturing
• Bio-IT
• Traditional Chinese
• Diagnostics
• Vaccines
• Genomic
• Proteomic

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Question
Can Asia make the shift from IT to Bio? What are
the challenges?
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003
14
Question
How serious is the life sciences talent
shortage in Asia/Pacific?
Conference Biomedical Research Applications in
Drug Discovery Technology Singapore, Nov. 3, 2003