Belgium is world-class for biopharmaceutical R&D, manufacturing and logistics

FlyPharma Conference, Brussels - 7th June 2016

Frank BeckxManaging Director essenscia vlaanderen

Executive summary

• The evidence: key facts & figures

• 5 reasons why Belgium is a key player

• Biopharma is building a stronger future in Belgium

Belgium is world-class for biopharmaceutical

R&D, manufacturing and logistics

2

Belgium: small country, great scientists

4 Nobel Prize Laureates for Physiology or Medicine

Corneille Heymans

(1892 - 1968)Christian De Duve

(1917 - 2013)

Jules Bordet

(1870 - 1961)Albert Claude

(1899 - 1983)

antigens and

antibodies in

immune reactions

role of sinus and

aortic mechanisms

in the regulation of

respiration

structural and

functional

organisation of

the cell

structural and

functional

organisation of

the cell

1919 1938 1974 1974

3

Belgium: small country, great scientists

A wide variety of renowned scientists in life sciences

Marc Van Montagu

(1933 - )

Paul Janssen

(1926 - 2003)

Peter Piot

(1949 - )

Paul Stoffels

(1962 - )

Jean-Jacques Cassiman

(1943 - )

Ferdinand Peeters

(1918 - 1998)

4

« Belgium in top 10 of the most innovative

pharma valleys worldwide » (Nature, 2010)

« Belgium has established itself as an especially

innovative country. It is characterized by a well-

functioning innovation system » (ZEW Innovation Indicator, 2015)

« 5 of the 100 essential medicines have been

developed in Belgian laboratories »(World Health Organisation

Model Lists of Essential Medicines)

International recognition

of Belgian biopharma

5

All top 10 global biopharmaceutical

companies have key activities in Belgium

0

5

10

15

20

25

30

35

40

45

50

Novartis Pfizer Roche Sanofi Merck & Co. Johnson &Johnson

GlaxoSmithKline AstraZeneca Gilead Sciences AbbVie

Top 10 biopharmaceutical companies worldwideRx sales (2014)

in billion USD

Major production facilities and R&D activity in Belgium

Clinical trial activities and sales office in Belgium

Source: PharmaExec.com (based on data from 2015 EvaluatePharma, Evaluate Ltd, www.evaluate.com)

6

Belgium, a key player in the European

biopharmaceutical industry

2%3%

6%

10%

13%

Population GDP Value added R&D-expenditures Export

Pharmaceutical industry

Belgian share in total EU-28

Source: Eurostat (2015) for population, GDP and export ; Eurostat National

Accounts (SEC 2010, 2013) for value added; R&D: EFPIA (2013 data) 7

Executive summary

• The evidence: key facts & figures

• 5 reasons why Belgium is a key player

• Biopharma is building a stronger future in Belgium

Belgium is world-class for biopharmaceutical

R&D, manufacturing and logistics

8

• Almost 2/3 of all pharma employeeshave a higher education degree

• Half of all researchers in the biopharma industry are women

• Multilingualism in Belgium is acompetitive advantage

• 4 pharmaceutical companies are in the top 5 of the most attractive employers in Belgium

• « One of the highest productivity rates in the world »(« The Conference Board » 2010)

A highly skilled and productive workforce

Source: National Bank of Belgium (Central Balance Sheet, 2014) ; Commission for federal cooperation, Working

group CFS/STAT; calculations Federal Science Policy Office

9

• 12 universities of which 3 in World Top 100 of Universities in Life Sciences (Academic Ranking of World Universities 2015)

• A high concentration of university hospitals

• Leading R&D centers of major companies

• A broad offering of science parks with incubation and innovation centers

• Highly specialised research institutes with international reputation in biotechnology

A unique innovation ecosystem that

accelerates groundbreaking R&D

10

The Belgian pharmaceutical industry

is highly R&D-intensive

0%

5%

10%

15%

20%

25%

30%

35%

R&D intensity (=R&D/production)Pharmaceutical industry

Source: EFPIA, 2013

11

The European leader in clinical trials

0

2

2

1

1

1

1

2

1

2

3

3

6

Italy

Germany

United Kingdom

Finland

France

Spain

Norway

Netherlands

Sweden

Austria

Switzerland

Denmark

Belgium

3

3

3

4

4

4

5

5

6

7

7

10

11

SOURCE: ClinicalTrial.gov; Worldbank

64

18

26

13

14

6

46

71

120

23

125

7

41

128

55

59

56

60

23

199

241

221

165

272

19

80

Phase 1 Phase 2

2012, # trials starting per million inhabitants x # of trials started

12

Belgian biopharma delivers medical

breakthroughs for worldwide diseases

13

HIV

Oncology

Rare diseases

Immunology TBC

MalariaCell therapy

Mental illnesses

A prominent location, an excellent

logistical and business infrastructure

• A strategic and central position at the political heart of

Europe

• Direct access to a potential EU market of 500 million

people

• A first-class logistical and business infrastructure

offering a direct export gate to the rest of the world

14

Belgium biopharma, a world presence:

second biggest exporter in the EU

Europe (including

Russia)57,7%

America25,0%

Asia11,9%

Africa3,9%

Australia & Oceania

1,5%

Top EU countries

based on pharma

export value

1. Germany

2 Belgium

3. UK

4. Ireland

5. France

Belgium’s export of pharmaceuticals (2015): 38.8 billion €

Source : Eurostat based on Chapter 30 of the Harmonised

System (HS2)

Source : National Bank of Belgium according to the EU-concept

(including international distribution centers & transit activities)

Almost half of pharmaceutical products are exported outside Europe

15

Belgium

Netherlands

Switzerland

France

UK

Germany

Italy

W-Europe

Belgium has experienced particularly fast

growth in pharmaceutical export by air cargo

Index (2000=100%)

16

A first-class infrastructure

for life sciences logistics

• 2 pharma logistics hubs in Belgium

• Both airport communities are certified by IATA as

a Centre of Excellence for Pharmaceuticals (CEIV Pharma)

• Belgium, a forerunner in developing

a worldwide standard for pharma handling

• Brussels Airport was the first certified airport

community in the world

• Pharma logistics is driven by temperature control

throughout the transportation chain

17

Belgium biopharma plays a leading

role in the fight against ebola

1976

Aug

2014

Dec

2013

Jan

2015

Oct

2015

Sep-Oct

2014

Mar

2014

Belgian

scientist

Peter Piot

discovers

ebola virus

Severe

outbreak in

Guinea,

Liberia &

Sierra Leona

GSK & Janssen

Pharmaceutica

accelerate

development

of candidate

vaccines in

Belgian labs

Janssen

Pharmaceutica

starts clinical

trials in Liberia

to prevent

further

outbreaks

First case

of current

strain of

ebola in

West-Africa

WHO

declares

epidemic

to be of

international

concern

GSK ships

first batch of

vaccines to

Liberia from

Brussels

Airport

18

1. A highly qualified and productive workforce

2. A unique academic and industrial network

3. A strong focus on innovative research to develop the

therapies of the future for patients around the globe

4. A prominent location in the heart of Europe

5. A state-of-the-art logistics platform to export worldwide

5 reasons why Belgium is

a key player in biopharma

19

Executive summary

• The evidence: key facts & figures

• 5 reasons why Belgium is a key player

• Biopharma is building a stronger future in Belgium

Belgium is world-class for biopharmaceutical

R&D, manufacturing and logistics

20

The biopharmaceutical industry,

a growing sector in Belgium

Source:

Employment: National Social Security Office - decentralised statistics (number of jobs on 30th June); 2015 = estimate based

on centralised statistics ;

Export: National Bank of Belgium according to the Communautarian concept (including distribution centers & transit activities)

R&D: based on latest data from Commission for federal cooperation, Working group CFS/STAT; calculations Federal Science

Policy Office ; Intramural expenditures – product group approach

21050

26454

2005 2015

Employment(number of jobs)

+26%

27

39

2005 2015

Export (in billion €)

+46%

Over the past 10 years, the biopharmaceutical industry

has become a key pillar of the Belgian economy

21

921

2293

2005 2013

R&D-expenditures(in million €)

+149%

Janssen Pharmaceutica (Beerse)

Launch of new incubator JLINX

Sanofi Genzyme (Geel)

Extension production capacity

& new lab

Pfizer (Puurs)

New vaccine production unit

Recent investments in the

Belgian life sciences industry

Datwyler (Alken)

State-of-the-art mixing hall

for pharmaceutical packaging

22

Alcon (Puurs)

Expansion of production lines

Baxalta (Lessines)

Investment in production of

immunoglobulin for the

treatment of immune deficiency

MaSTherCell (Gosselies)

Extension production capacity for

cell therapy

GSK (Wavre)

Modernisation of production unit for

vaccines against hepatitis A

Bone Therapeutics & Promethera

(Gosselies)

Pilot plant for cell therapy

23

Recent investments in the

Belgian life sciences industry

UCB (Braine-L’Alleud)

Biotechnology pilot plant

• A competitive R&D tax environment, including:

• 80% patent income reduction

• Tax incentives for employing scientific researchers

• High Level Group

‘Chemistry and life sciences’

between essenscia & the federal

government initiated by the

Belgian Prime Minister (2015)

• Structural dialogue between essenscia and the

regional Flemish and Walloon governments with

strong focus on innovation and labour market

The authorities support a strong future

for pharmaceutical activity in Belgium

24

The Pact for the Future that was signed with

the federal government has three key pillars:

• an improved access to innovative therapies for the patient

• supporting growth and innovation within the industry

• providing a new deontological framework for the sector

A Pact for the Future to strengthen one of

the best healthcare systems in the world

25

Belgium is world-class for biopharmaceutical R&D, manufacturing and logistics

FlyPharma Conference, Brussels - 7th June 2016

Frank BeckxManaging Director essenscia vlaanderen