Strategy for Open Innovation in Sigma Life Science

• Rebecca Poon, PhD, MBA• Business Development Manager

• NCET2 Webinar• Making the Most of U-I Collaborations

• 314-286-7859• rebecca.poon@sial.com

The Strength of Sigma-Aldrich

• Leading supplier in the life science research

market

• Known for quality, reliability, consistency

• World-leading customer & technical service

• Manufacture over 46,000 products

• 1,000,000 customers

• 7,900 employees

• 2008 Sales: $2.2B

• 34 years of continuous growth (Sales & EPS)

Sigma-Aldrich Portfolio

Products – 130,000Number of products

30,000

ChemicalsEquipment items

100,000 (46,000

manufactured)

Large Product Breadth

Pharmaceutical, Diagnostics, Biotechnology CompaniesChemical & Allied Industrial Companies

Customers – 88,000 accounts

Universities, Government, Not-for-Profit OrganizationsHospitals & Commercial Laboratories

35%26%

8%

31%

Broad Customer Base

World Class Distribution & Logistics

Service is key

• Sell into 160 countries from locations in 38 countries• 38 production sites in 10 countries• Over 15,000 orders received & shipped daily• Global distribution network

Sigma-Aldrich Brands

Creating Differentiation Through Innovation: 2009 - 2011

• Accelerate

• Build on Successes

• Focus on Research Biotech

• Expand in Faster Growing Geographies

• Elevate

• Enable Web Strategies: Your Favorite Gene (2009 CIO 100 winner)

• Refine Selection & Integration of New Technologies

• Innovate

• New Ventures Group

• SAGE™ Lab

($824M)

($421M)

($332M)

($624M)

Research BiotechCustomers: Life ScientistsDriving Force: Innovation

Business Units and Revenues

38%

15%

28%

19%

Research Specialities Researach Biotech SAFC Research Essentials

Sigma Life Science Vision

To be a leading destination for life science researchers to access biologically rich information, market leading products and services to help answer their biological

questions

Lead with Breakthrough Products Supported by Rich Biological Information

Sigma Life Science’s Practice in Open Innovation

• Patent Licenses, Option licenses, Cross-Licenses (Many)

• Research Collaborations:

• Odyssey Program: UVA, NIH, U Chicago, Wash U

• Others: Mayo clinic, UNC, UCSD, Fred Hutchinson, U Pittsburgh, UCSF, Columbia

• Joint Grant Application (Boston U, Framingham Heart Study, SABre-CVD)

• Co-development Agreements

• Equity Investment

• M&A for Capabilities and Capacity

• Alliance with Venture Firms (Prolog Ventures)

• Outreach to Consortia (e.g. Protein Quantitation Consortium, Biomarkers, Nanotechnology)

• Consultancy / Scientific Advisory Boards (e.g. Stem Cell, Regulatory ncRNA)

• University Technology Subscription Program (WARF)

Business Development Statistics & Philosophy

• Active Licenses: 490• Oldest Dated: 1983 • No of New Licenses (2007): 28• Total License Related Payments (2008): $12.13 M• Product Royalties (2008): $3.4M

Equitable risk sharing: • Reward on performance• Milestone payments linked to realized technical and market performance• Royalties based on sales revenue, fixed or tiered

Flexibility to meet partners’ different interests:• Options• Carve-outs of IP rights, freedom–to-operate, markets / fields of application

Case Study 1

TRC -- The Broad Institute

• 11 world-renowned academic and

international life sciences companies

• Exclusive license & partnership in

functional validation

• shRNA library: TRCII – 300,000

clones

• Lentivirus particles

• Plasmids

• Bacterial glycerol stock

Case Study 2

Human Proteome Resource (HPR)

• Royal Institute of Technology (KTH),

Stockholm, The Rudbeck Laboratory, and

Uppsala University, Sweden

• Goal: min. one antibody tool to each of

22,000 unique human proteins by 2015

• Exclusive license with Atlas Antibodies

• Added over 6,000 antibodies

• Most highly characterized, monospecific

• Supported by IHC image data (on tissue

microarrays) in Human Protein Atlas (HPA)

Case Study 3

Sangamo Biosciences, Inc.

• Large portfolio of enabling technologies

aggregated from many institutions

• Zinc Finger Nuclease License 2007

• CompoZr™ (www.compozrzfn.com/)

• Milestone reached 1 year early (Jan 09)

• SAGE™ Lab: 12 members, new facility (Aug 21,

09)

• SAGEspeed™ (www.sageresearchmodels.com)

• Michael J Fox Foundation Award Parkinson

Disease Models (Oct 1, 09)

Continuing Outreach Activities

• Campus visits to Office of Technology Licensing

• Sigma Partnering Event (hosted by a local organization)

• Sigma Inventor’s Forum (Webinar)

• Networking through UIDP (University-Industry Demonstration Partnership)

• Participation in AUTM, LES, BIO conferences

• Response to RFPs and fedbizopps.gov

Strategic Areas in Technology Scouting

Technology Areas• Biomolecules

• Functional Genomics

• Cell Based Assays

• Protein Assays

• Transgenics

Research Areas• Stem Cell Biology

• Epigenetics

• Regenerative Medicine

• Oncology

• Neuroscience

• Cell Signaling

• Inflammation

Continuously Expand Technology Portfolio to further basic research and the understanding of biology

•Rebecca Poon, PhD, MBA•Business Development Manager•314-286-7859•rebecca.poon@sial.com