It’s in Lyon…...and it’s Not a Coincidence

Lyon, 31st October, 2008

Lyon,an International Metropolis

Lyon, a Human-ScaleInternational Metropolis

Lyon and its region : key figures

#2 region in France

Population 6.005 million: higher than Ireland, Finland and Denmark

#5 regional GDP in Europe: over €174 billion

Business

Lyon, your Gateway to Europe

Central Hub of the European TGV System…

3 TGV stations in Lyon: • Lyon Part-Dieu• Lyon Perrache• Lyon-Saint Exupéry (International airport)

“TGV shuttle” Lyon-Paris: • 37 round trips / day in 1hr55• Lyon-Brussels in 3hr45• Lyon-Marseille in 1h25• And more…

With the future Transalpine line:• Lyon to Turin in 1hr45 by 2015• Positioned on the rail corridor linking

Eastern Europe to Western Europe on the Kiev-Lisbon axis

New lines on the horizon:• Mediterranean TGV: Lyon-Barcelona

in less than 4 hours• Stuttgart in 3 hours

Business

All Europe in Less Than 24 Hours

1hr30 flight to European capitals:Direct flights to 53 international destinations

Round-trip in one day to and from:Amsterdam, Basel, Barcelona, Bologna, Brussels, Copenhagen, Düsseldorf, Frankfurt, Gothenburg, London, Madrid, Milan, Munich, Prague, Rome, Stuttgart, Zurich

16th July 2008: opening of a direct line Lyon-New York with daily flights operated by Delta Airlines

Source: Lyon-Saint Exupéry Airport, winter 2007-2008 program

Business

Lyon, in the Heart of Europe’s Freeway System

Rapid access via freeway to all Large European cities

Lyon – Geneva: 1hr30Lyon – Basel: 3 hrLyon – Turin: 3 hrLyon – Milan: 4 hrLyon – Paris: 4 hrLyon – Barcelona: 5hr30Lyon – Stuttgart: 5hr30Lyon – Frankfurt: 6 hr

©A

REA

Business

Get to Know Lyon and its Bio-Business!

1. Your gateway to the world’s second-largest healthcare market

2. A unique competitive mix for your business

3. Join one of the main bioclusters in Europe

Top 3 Reasons to Come to Lyon

Business

Lyon, a Unique « Competitive Mix »

Lyon, Top value for your money

Accessibility and connectivity

180 million consumers within an 800-km radiusLyon is one of 6 major logistics hubs in Europe

Costs and productivityLyon has some of Europe’s most competitive costs per position

Manpower providing some of the world’s highest productivity

One of the most attractive taxation systems for innovative firms (“CIR”research tax credit)

Innovation potentialEurope’s 7th-largest region for scientific and technical activities (publications and patents)

France’s no. 2 region for R&D investment

France’s 2nd-largest research center, with 20,000 scientists

A powerful industrial and economic center

Europe’s 5th-highest GDP, France’s 2nd-highest GDP

6 million consumers with average income higher than the European average

Human capitalLyon is France’s no. 2 university town with 150,000 students

Over 20% of France’s engineers are trained in the Lyon area

AttractivenessFrance is no. 2 in the world for FDI in pharma

Rhône-Alpes is France’s no. 2 region for hosting foreign companies

Business

Join One of the Main Bioclusters in Europe

4,500 researchers, in infectiology (2,500),

oncology (1,700) and nanobiotechnology(300)

No. 1in human and animal vaccines, bacteriological diagnostics and

delivery systems

70,000jobs in the life sciences, including 28,000 in bio-

health

LYON RHONE ALPES LIFE SCIENCES CLUSTER KEY WORDSInfectiology, vaccines, diagnostics, delivery

systems, antibodies and proteins, nanobiotechnology, medical technology

M€ 750industrial investment in biotechs

between 2004 and 2009

20,000students in the life sciences and

healthcare

60 “pure biotech” firms

World industry leaders: Sanofi-Pasteur, bioMérieux, Mérial, Becton-Dickinson, Genzyme and othersA high concentration of biopharma firms:

• 5% of Europe’s jobs in the life sciences

• Proportionally twice as many jobs in the biopharma sector as Paris

The only place in Europe with leaders in both human and animal vaccinesA center of excellence in virology researchA key link in preparing the fight against the avian flu pandemic

• Contracts between sanofi-pasteur& the US Government ($120 millionin 2006)

A place where biotech, micro and nanotechnology converge

Sectors

Quiz

Where can you find, all in one city:

1. The head office of a firm that signed $120 million in contracts with the US government to produce vaccines to fight against the risk of the avian flu pandemic?

2. The world leader in human vaccines and the world leader in animal vaccines?

3. The largest biotech investment in France over the past 5 years by the world’s 3rd-largest biotech firm?

R&D

Clinical research

Manufacturing

Training and research

Sectors

It’s in Lyon and Only in Lyon!

A high concentration of industrial leaders on extremely buoyant markets

Sanofi-Pasteur, world leader in human vaccines • 25% share of a market growing 15% per year

Mérial, world leader in veterinary products• 13% share of a market growing 7% per year

bioMérieux, world leader in bacteriological diagnostics• An IVD market that is growing 6% per year

BD, world leader in medical equipment and systemsGenzyme, world leader in medical biotechnology• A market growing 300% per year

Lyon: world vaccine production platform

European VaccineManufacturing Centres

France

Espagne

Italie

Autriche Hongrie

Allemagne

RoyaumeUni

Irlande

Finlande

Norvège

Suède

Suisse

Bulgarie

Danemark

Belgique

LYON

< 500Number of employees in vaccine-related activity

500 - 2000

> 2000

Source: DARLOW, ARTEB-EM Lyon Study

Sectors

M€ 750 in industrial investments in biotech firms between 2004 and 2009 including:

• Sanofi Pasteur: € 170 million from 2003-2007+ € 100 million on a new production unit for a new vaccine

• Merial: € 200 million in investments from 2006-2011• Merck Serono: new French headquarters in Lyon

(Sept. 07)• Genzyme: € 105 million (2007-2013) polyclonal

antibody production unitIndustrial leaders that partner with and invest in local start-ups

• Merial-Protein’eXpert Partnership Creation of PX’Monoclonals, a monoclonal antibody development platform

• Transgene – ImmunID – Innate Pharma Partnership European immunomonitoring platform

Major industrial investments that are driving the entire sector

Main investments in progress

As well as …

Lyon

It’s in Lyon and Only in Lyon!

Source: Grand Lyon

Sectors

Quiz

Where can you find

1. One of the 10 best healthcare centers in the world?

2. WHO’s International Agency for Research on Cancer?

3. One of the world’s 5 hadrontherapy facilities (for treating radio-resistant tumors)?

4. One of ten Bio-safety Level 4 laboratories for studying the most dangerous viruses on the planet?

R&D

Clinical research

Manufacturing

Training and research

Sectors

An exceptional group of hospitals• Edouard Herriot Hospital, one of the world’s top 10 medical centers

(Newsweek 2007)• France’s 2nd-largest cluster of university hospitals • 40 hospitals and 17,000 beds within a 15 km radius

Leading-edge biotech research• WHO’s International Agency for Research on Cancer • Major research facilities: Jean Mérieux Biosafety Level 4 Lab, European High

Field (1Ghz) NMR Facility, National Hadrontherapy Center for Cancer treatment and more…

• 500 clinical research projects yearly at HCL (Lyon Civil Hospitals) for big pharma and big biotech firms, such as Genzyme, Sanofi-Aventis, ServierNovartis, Amgen, Wyeth, Roche, and others

• 18 CROs including the European Headquarters of Charles River

World firsts:• Hand transplant in 1998, forearm and hand transplants in 2000, partial facial

transplant in 2005• Clinical trials on new vaccines and future blockbusters (Sanofi, Roche and

more)

Historic excellence in biomedical and clinical research

Jean Mérieux – INSERM Biosafety Level 4 Laboratory

It’s in Lyon and Only in Lyon!

Sectors

Quiz

1. Where can you find a concentration of 4,200 researchers in infectiology and oncology who are involved in building new preventive and therapeutic solutions?

2. Where can you find a concentration of 4,000 researchers in micro-nanotechnology, including 300 scientists specialized in healthcare applications for this technology?

R&D

Clinical research

Manufacturing

Training and research

Sectors

World Competitive Cluster

November 2007: Greater Lyon and the French government created a new research center in Lyon

dedicated to research on infectious diseases(with 500 researchers)

The Infectiology Center

Form partnerships with world industry leadersObtain public funding and contracts for your R&D projects

• Since 2005, 38 collaborative R&D projects, with overall investment of € 128 million (€ 40 in public funding)

• A healthcare shield against infectious diseases: diagnostics, vaccines, recombinant proteins, monoclonal antibodies, delivery systems, and more

Close relations with a top-ranked research campus: • European Center for Humanitarian Health (CESH),

European Center for Virology and Immunology (CERVI), Bio-safety level 4 laboratory, European Molecular Biology laboratory (LEBM)

A network of international partners• Japan (Kansai: Kobe and Osaka), USA (San Diego and

Boston), Canada (Montreal)

It’s in Lyon and Only in Lyon!

Sectors

A few illustrations of innovations being developed in Lyon

The fight against infectious diseases of viral origin • GAP: Solutions for a healthcare shield against Avian Flu and pandemic flu

(Merial, sanofi pasteur, bioMérieux, Bio-safety Level 4 Lab, HCL’s Influenza Virus Research Center and INSERM’s Interactome Lab

• Resistance to antiviral treatments: VIRGIL European Excellence NetworkDevelopment of new intradermal injection systems

• Micro-Vax project associating Sanofi-Pasteur, BD and INSERMNanobiotechnology:

• Nano to Life European Excellence Network • Biochips, instrumentation, delayed delivery and more

Theragnostics: integrated diagnostic and therapeutic solutions• ADNA Program

Toxicology and immunomonitoring:• Platine: European Immunomonitoring Platform

Where science and technology converge for preventive, predictive, personalized medicine

Frédéric Turner – General Manager of Genzyme France“In November 2006, we signed the papers to buy a 3.7 hectare site (8 acres) to set up a bio-production unit in the Lyon TechSudbusiness park. The project, conducted in partnership with Greater Lyon and Aderly, is part of a major plan for expanding our global activity in antibody production. Local expertise and technological know-how, along with the highly active Lyonbiopôle cluster, contributed to our choice of the Lyon area. The TechSud business park puts us in contact with world leaders in human and animal health, as well as research centers which offer us all sorts of possibilities for collaboration.”

It’s in Lyon and Only in Lyon!

Sectors

France, the best Research Tax Credit in Europe

It’s in Lyon and Only in Lyon!

Source: French Agency for International Investment

Business

Quiz

1. Where are 20% of France’s engineers trained?

2. Which city is home to the biotech start-up that produced Ralph, the world’s first cloned rat, in 2004?

R&D

Clinical research

Manufacturing

Training and research

Sectors

20,000 students in Life Sciences and healthcare

A major center for trainingengineers and high-level specialized technicians

High-level training in management and marketing

• EM Lyon: 9th best European Business School according to Financial Times (Dec. 2007)

Internationally recognizedtraining specific to the field of vaccinology Mérieux Foundation and University of Geneva

With support from the EU, the Gates Foundation, Institut Pasteur- Paris, Johns Hopkins Bloomberg School of Public Health, National Institute of Health (NIH/NIAID-USA) and others

Lyon offers all of the skills your company could ever need

LYON – a great place to show off your entrepreneurial talents!

A start-up incubated at ENS graduate school that is continuing its international growth from Lyon

A drug delivery company with expertise in polymer chemistry. The company was founded in 1990 in Lyon. In 1996, Flamel Technologies (FLML) became the second French biotech company to enter the Nasdaq.

It’s in Lyon and Only in Lyon!

Sectors

Quiz

1. Where did 10 Nobel laureates come together in 2007?

2. Where did WHO choose to set up its office for preparing countries to respond to epidemics?

3. Where are the headquarters of INTERPOL and its anti-bioterrorism department?

R&D

Clinical research

Manufacturing

Training and research

Influence Sectors

BioVision, the World Life Sciences Forum, starts in Lyon. This event in the profession brings together over 2,000 opinion leaders, company heads, NGOs, representatives of civil society, politicians and scientists to discuss today’s issues in the life sciences and their social impact.

BioSquare brings together 700 companies worldwide, in partnership with the bio-industry associations of the United States (BIO), Europe (EuropaBio) and Japan (JBA).

The World Vaccine Congress is an annual event in Lyon that brings together the pre-eminent global actors in vaccine research and public policy.

European Antibody Congress is an annual event in Lyon that provideswith the therapeutic knowledge, manufacturing processes and business strategies of the antibody industry.

Lyon : World-ClassEvents in Biotechs

Sectors

Lyon also has a long history in humanitarian activitiesand in protecting the world’s populations

The W.H.O. chose Lyon long ago.Why not you?

Lyon World headquarters of Interpol and its bio-terrorism prevention unit

Presence of Mérieux Foundation

Deaths due to infectious and parasitic diseases per 10,000 inhabitants

It’s in Lyon and Only in Lyon!

Sectors

The Region of Lyon : Ensuring your Competitiveness

France has significantly reformed its tax system to encourage scientific research and improve business competitiveness

A Major Advantage in France: Research Tax Credit (RTC)

How does it work? • This fiscal subsidy (grant) is simple to apply for, and easy and quick to

obtain.• The most interesting financial grant in terms of volume of any European

country *1.• It is based on R&D volume of the companies:

In 2008, it amounts to 30 % of a company’s research expenditures, up to € 100 millions.Over M€ 100, it amounts to 5% of a company’s research expenditures. For the companies which benefit of RTC for the 1st time:

• 50% for the 1st year, and 40% for the 2nd year. • You can receive a fiscal “refund” even if the company does not pay tax *2.

*1. The French RTC 2008 is volume based (allocated on the 1st Euro spent). What differentiates it from the incremental based RTC is the increase of expenses from one year to the next.

*2. Example: a new tax-exempt company

Who is eligible? All industrial, commercial or agricultural businesses, as wellas not-for-profit associations.

Source : ACIES, Feb. 2008

Business

The Region of Lyon Gathers one of the Largest

Venture Capitals in Europe

Business

Lyon, a Metropolis to LoveLyon, ranked “the best place to live” in France

1st for quality of life ahead of Toulouse (2nd), Bordeaux (3rd), Nantes (4th), Paris (15th) and Marseille (40th)

• The most active city in France• 1st city for employment• 2nd richest city• 2nd city for leisure activities…

Great weekend outings within easy reach:• 1hr30 from the resorts of the world’s largest ski area

(with 191 ski resorts)• 1hr37 by TGV high-speed train to the Mediterranean• Less than 2 hours by TGV to Paris• Over 800,000 hectares of nature parks and regional parks• 50 lakes and 64 bodies of water, including the largest lake in France:

Lake Bourget

Source: Le Point survey, 2005

Life

Aderly, your Partner for Success in Lyon

Aderly, your Partner for Success in Lyon

Aderly’s missions:• Facilitate the set-up of French and foreign companies and organizations in Lyon

and its region• Welcome and assist relocated staff and their families• Promote the Lyon region in France and around the world

Aderly assists and advises you through every stage of your project:• Feasibility study, preparation of specifications• Site search to meet your specific needs• Advice on regulatory and fiscal matters• Administrative formalities• Financing search• Interface with the local authorities• Information on the business environment, employment market and recruitment• Welcome and assistance for relocated staff• Follow-up after launch period

Aderly Services

Your Contact at Aderly

Thierry de LUMLEY

Inward Investment Manager - BiotechnologiesTel: +33 472 408 198 – E-mail: delumley@aderly.com

Lyon Area Economic Development AgencyPlace de la Bourse - 69289 Lyon Cedex 02 France

Tel: +33 472 405 750 - Fax: +33 472 405 735aderly@aderly.com - www.aderly.com

Aderly Services