9th Swiss-Scandinavian Bio-Business 2015

Roche Diagnostics Business Development: Partnering to bring R&D excellence and global reach

Roche Group

Roche Diagnostics

Roche Diagnostics BD

Diagnostics

Roche Group: Our Structure

Roche Diabetes

Care

Roche Professional Diagnostics

Roche Molecular Diagnostics

Roche Tissue

Diagnostics

Pharma

Chugai Genentech Roche Pharma

Sequencing Unit

Roche Group: Our Distinctiveness Optimally positioned for the future

• Combined strengths of Pharmaceuticals and Diagnostics

• Synergies in research, development and marketing

• Unique global network of alliances

• Pioneering personalized medicine

Early detection

Leader in Diagnostics

Leader in Pharma

Prevention Diagnose Therapy Therapy monitoring

Roche Group

Roche Diagnostics

Roche Diagnostics BD

Diagnostics

Roche Group: Our Structure

Roche Diabetes

Care

Roche Professional Diagnostics

Roche Molecular Diagnostics

Roche Tissue

Diagnostics

Pharma

Chugai Genentech Roche Pharma

Sequencing Unit

Professional Diagnostics Business Area

Molecular Diagnostics Business Area

Tissue Diagnostics Business Area

Diabetes Care Business Unit

• Serum work area/immuno-

assays and clinical chemistry

• Point-of-care testing

• Coagulation and specialty

testing

• Workflow management

• Custom Biotech

• Virology

• Blood screening

• Genomics/oncology

• Microbiology

• Women’s health

• Biochemical reagents

• Nucleic acid DNA

purification and real-time PCR

• Primary staining

• Advanced staining

• Workflow management • Digital pathology

• Blood glucose monitoring

• Insulin delivery

• Diabetes management systems

Sequencing Unit offers sequencing solutions for both Life science and clinical segments

7

Clinical IVD

Life Science

Roche Diagnostics: Portfolio Overview Industry leading businesses covering the entire IVD

spectrum

Roche Diagnostics: IVD Market Overview Large and growing market; Roche is market

leader

2013 2018E

Market share Market size

52

66

8

USD bn

Tissue

Molecular

Diabetes Monitoring

Source: Roche Analysis, Company reports, validated by an independent IVD consultancy

CAGR +5%

5%

10%

8%

2%

Professional

20%

11%

10%

8%7%3%

41%Others

Biomerieux Danaher J&J

Siemens

Abbott

Roche

Roche Diagnostics: Our Strategy Differentiation through innovation in testing

efficiency and medical value

9

2012 2020

Medical Value

Drivers of competitive differentiation

Testing Efficiency

Roche Group

Roche Diagnostics

Roche Diagnostics BD

Diagnostics BD: What we offer Beyond the deal

Roche is consistently raising the bar for best-in-class performance

Commitment to building relationships for the future

Deal Flexibility

Single point of contact

Negotiation Market Access Integration & Partnership Mgt

Executive leadership and governance management

BD team with responsibility for early integration plan

R&D and Manufacturing expertise

Market leading breadth & depth of IVD technologies - largest installed base in the industry

Access to leading PHC related pharma pipeline

Diagnostics BD: Dx Content we look for New Dx biomarkers with high clinical utility; we

value good science, collaborative approach,

patient focus

Required attributes

• Addresses significant unmet medical need with potential for changing standard of care

• Market Attractiveness of Disease Area & Test

• Clinical Evidence to support clinical utility claims

• Technical Feasibility • Solid IP

Platform Fit

Clinical Chemistry Immunoassays ( Single or Multiplex) Tissue Markers (IHC, ISH) PCR (incl Multiplex) Sequencing Marker Data analysis for all platform

technologies

Biomarker disease areas • Oncology • CNS • Cardiometabolic disorders (inc.

Diabetes) • Inflammation • Infectious Disease • Critical Care • Women’s Health

Diagnostics BD: Selected technologies we look for Innovative, enabling Human Healthcare related

Technologies in Life Sciences and In Vitro Diagnostics

13

Technology Examples Scope

Next Generation Sequencing Innovative clonal or single molecule sequencing technologies, sample preparation and data analysis/bioinformatics

Innovative PoC (Immunoassays & NAT) High performance, easy to use, low cost POC technology ideally for both Immunoassays & NAT

Non-Invasive Glucose Monitoring Non-invasive spot and/or continuous monitoring

Digital Pathology Complete imaging workflow solutions

Circulating Tumor Cell Technologies Non bias, high yield CTC collection technologies

Mass Spectrometry High performance, compact low cost MS system suitable for IVD

Digital PCR High performance, compact, low cost digital PCR system

Multiplexing NAT / proteome multiplexing systems

Source: Roche Diagnostics Div. BD Analysis (CTO)

Note:

Diagnostics BD: What we are not looking for Outside our Strategic Scope Diagnostics

• Medical devices • In vivo Dx imaging – MRI, PET, CT • Hospital information systems (e.g. EMR, Admin, ..) • Healthcare Services ( e.g. Disease management, Home care, Payer

management,…) • Lab services w/o proprietary content • Standalone consulting or education businesses • Veterinary Dx

Life Science

• Basic lab supplies (tubes, syringes) • Lab Furniture • Applied testing

– Food, – Forensics – Agriculture – Bioterrorism

• Lab services

Diagnostics BD: Risk-sharing deal structures Mix of structures as common solution

M&A • Immediate change of control &

ownership

• Immediate transfer of full risk to buyer

• No future involvement and profit sharing for seller

Earn-out • Purchase price dependent on

future events • Immediate change of control &

ownership • Proper definition of earn-out

measures / events important

Co-Development • Initial upfront payment • Sharing of further development

control, costs & profits • Shared development activities

require full transparency and therefore full trust

Option Deal • Upfront payment • Control remains at seller under

defined conditions • Buyer can but does not have to

exercise the option to acquire at a defined point in time

Licensing • No change in ownership • Change in control under defined

conditions • Upfront payment combined

with future profit sharing

Risk born by buyer Risk born by seller

Diagnostics BD: How we work From opportunity to partnership and beyond the deal

Strategic fit Alignment with strategic (Dx Content, Technology/Regional)

needs/Opportunistic

Business case Will this bring value to both companies?

Medical value Will this test result /technology enable novel and important physician

action?

Want Defining our search

Empowered negotiation team Decision-making authority Access to top management

Philosophy of partnership Long-term view Seat at the development table Major role in integration

One size doesn’t fit all Tailored deals Creative variations on known themes

- License, option, portfolio, acquisition

Get

Personalising deals

Manage

Building collaborations Want Definining our focus

Find Indentifying partners

Get Personalising deals

Manage Building collaborations

Testing efficiency Will this technology / platform provide a better solution for our IVD

and Life Science customers today and in the future?

Doing now what patients need next