PROJECT REPORT

2016

Gothenburg, SwedenJanuary 2017

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Contents

Strengthening life science in Scandinavia .............................. 3

Generating value ....................................................................... 4

Benefiting AstraZeneca ............................................................ 5

External outreach ...................................................................... 6

Strategy for growth ................................................................... 7

Meet the companies .................................................................. 8

Examples of support provided to hub companies ................. 9

Financial overview ..................................................................... 10

BioVentureHub Buzz ................................................................. 11

Frequently asked question ....................................................... 12

Scientific partners / Sponsors ................................................... 14

Acknowledgements ................................................................... 15

Front cover: AstraZeneca Gothenburg is home to expertise and capabilities across all areas of pharmaceutical development.

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Strengthening life science in Scandinavia

AstraZeneca established the BioVentureHub (BVH) in 2014 as an open innovation ecosystem to further strengthen competitiveness and dynamism in the life science industry in Scandinavia.

Embedded at the heart of AstraZeneca Gothenburg, the BioVentureHub gives emerging biotech/medtech companies and academic groups a unique opportunity to co-locate and interact with AstraZeneca’s scientists and state-of-the-art lab facilities and infrastructure, and with each other.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Nov

Oct

Dec

BVH Awareness Day at AstraZeneca

Visit by Swedish minister for enterprise and innovation,

Mikael Damberg

Promimic and TATAA Biocenter join BVH

Cereno Scientific joins BVH

Vicore Pharma concludessuccessful Phase 1 study

Athera Biotechnologies completes Phase 1B study

BVH visits - to USA and from Japan

Lipigon Pharmaceuticals joins BVH

State visit by President of Chile, and King

and Queen of Sweden

MetaboGen joins BVH

Spin-out innovation project initiated

Magnus Björsne recognized as life science

‘Enabler of the Year’

Highlights 2016

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Generating value

In 2016, the BioVentureHub (BVH) grew with five additional companies. There are currently 18 companies and one academic research group in the BioVentureHub.

During the year, we welcomed Tataa BioCenter, Metabogen, Synergon, Promimic and Lipigon from Umeå. Premune left the BVH as a result of a revised strategic focus. Several companies recruited additional personal over the course of the year.

Interest in the BVH remains strong and we currently have a pipeline of around 10 companies that have expressed an interest in joining.

In December, MentorMate, from the USA, one the world’s leading companies in digital health, was awarded the ‘key to the city of Gothenburg’ after making the decision to expand their European presence from a new base in the BioVentureHub.

In addition, during 2016, the BioVentureHub environment led to:

• Four clinical studies being started

• Three IND approvals

• One product approval

• Two stock exchange listings (IPOs)

18 companies

Established 2014

2,400 m2 of

office and laboratory

space

1 academic

group

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Benefiting AstraZeneca

Delivering on our value of ‘We are entrepreneurial’ and our strategic ambition to be a great place to work, the BioVentureHub is stimulating a more dynamic scientific research environment at the AstraZeneca Gothenburg site.

Combining different value chains, ideas and perspectives - and using resources and capacity in a new way - the BioVentureHub

exposes AstraZeneca to more science and provides the company with a unique catalyst for innovation on the Gothenburg site.

AstraZeneca has entered into a number of scientific collaborations with several of the companies in the BioVentureHub. As the BioVentureHub continues to develop, we will increasingly be able to develop mutual learning and generate future collaboration opportunities.

In 2016, the BioVentureHub and AstraZeneca initiated the Spin-out project in collaboration with Vinnova and a group of international investors to establish new life science companies based on promising research or technology projects that might not otherwise be progressed.

Companies in a number of other industries have been inspired by our novel innovation model. For example, ABB recently launched SynerLeap after various study trips to the BioVentureHub.

Magnus Björsne, CEO for the BioVentureHub, was awarded “Årets möjliggörare” (“Enabler of the year”) by Life Science Sweden.

Our collaboration with The Gothenburg School of Economics has led to three research articles that examine the BioVentureHub innovation model being published in international peer-reviewed, international journals.

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External outreach

Conference presentations and site visits

Below is a selection of the numerous conferences and meetings at which the team has presented throughout the year…AZ Exchange

BioEurope Spring

BioFit

Business Region Göteborg

Chalmers Ventures

Chilean state visit to Sweden

Japanese CTO Forum

Karolinska Institute

Medion Science Park

Minneapolic MedTech Arena

Nordic Invest

Nordic Life Science Days

Oslo Life Science Cluster

Park Annual

Ruter Dam

SciLifeLab

SIP forum

Swedish American innovation summit

SweLife

Västra Götaland Regional Executive Board

Since launching in October

2015, 5042 unique users

have now visited the site

during 7483 sessions in 97

countries

@BioVentureHubwww.azbioventurehub.com

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Increase external outreach and visibility to attract more non-Swedish companies to establish in the BioVentureHub.

Collaborate closely with other companies and organisations in West Sweden (e.g. Sahlgrenska Science Park, GU Ventures, Chalmers Ventures, Business Region Göteborg, SCA, Mölnlycke Health Care…) to stimulate cluster innovation between digital health, medical technology and pharmaceuticals.

Strategy for growth

Below are the four strategic components the BioVentureHub team is implementing to ensure continued growth and to attract relevant emerging companies and academic groups to the AZ Gothenburg site.

Strategic value

External outreach

Spin-out

Regional collaboration

Develop the Spin-out project model

in collaboration with AstraZeneca, Vinnova

and a group of investors.

Proactively attract companies that can add strategic value

to the BioVentureHub environment.

“Astrazeneca’s BioVentureHub is an exciting innovation model for strengthening competitiveness and collaboration in the life science industry. It’s smart Swedish industry in action, serving as inspiration to other companies and industries when it comes to generating opportunites in the new industrial era.”Mikael Damberg, Swedish Minister for Enterprise and innovation

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Meet the companies

FOR VALUE

LIPIGONPHARMACEUTICALS

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Examples of support provided to hub companies

Scientific advice and work

• Advice on regulations for and outsourcing of bio banking

• Oral formulation strategic input

• Proprietary in vitro assays

• Practical approaches for regulatory work for clinical studies in different geographies

• Exploratory experimental NMR work

• Requirements for and benefit of orphan designation for development drugs

• Assessment and comparison of different in vivo models for Idiopathic pulmonary fibrosis (IPF)

Infrastructure

• Access to database of scientific subcontractors and tools for requesting quotations

• Possibilities to buy used AstraZeneca equipment

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Financial overview

The BioVentureHub is funded by both public and private investors. The five-year funding of the BioVentureHub makes it cost neutral to AstraZeneca.

Costs

We have divided project costs into three types for 2016:

Operating costs: Amounted to SEK 4.3 million – mainly consisting of personnel costs

Infrastructure costs: Amounted to SEK 0.2 million – establishing processes, IT infrastructure and other necessary infrastructure adjustments to support the innovation-focused environment.

Support to companies: Amounted to SEK 2 m – costs for activities that have directly supported one or more BVH companies.

In total, costs for 2016 amounted to SEK 6.5 million.

Funding (distribution of project costs)

VINNOVA (Sweden’s innovation agency) finances project costs corresponding to 50% of external financing, which corresponds to SEK 3.2 m in 2016.

Carl Bennet AB finances project costs corresponding to 16.7% finances project costs corresponding to SEK 1.1 m in 2016.

Region Västra Götaland (VGR) finances project costs corresponding to 16.7% finances project costs corresponding to SEK 1.1 m in 2016.

City of Gothenburg (Göteborgs stad) finances project costs corresponding to 16.7% finances project costs corresponding to SEK 1.1 m in 2016.

We would like to sincerely thank all our funders, including AstraZeneca, which has provided tremendous support not accounted for in the numbers

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BioVentureHub buzz

Generosity towards new companies is

the route to success for pharma giant

New innovation model to create more life science companies

Minister visits BioVentureHub

AstraZeneca pushes innovation wide open with BioVentureHub

New model will lead to more companiesAstraZeneca hub growing

and attracting companies

Life Science Sweden ’Enabler of the Year’:

Magnus Björsne

Breathing new life into

shelved drug projects

AZ BioVentureHub CEO says aim is an innovative ecosystem

BioVentureHub acknowledged as SynerLeap is inauguratedBioVentureHub - A catalyst

for scientific innovation

MentorMate Awarded Key to

the City of Göteborg, Sweden

Affärslivet, 13 October 2016

azbioventurehub.com, 21 March 2016

Göteborgs-Posten, 22 February 2016

Life Science Sweden, 26 November 2016

LIFe-time.se, 5 September 2016

www.azbioventurehub.com

EBD Group PartneringNEWS, 28 February 2016

Life Science Sweden, 21 September 2016

Scrip, 22 June 2016

ABB’s SynerLeap inauguration, 5 September 2016

Business Region Göteborg press release, 5 December 2016

Vinnova press release, 1 September 2016

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Frequently asked questions

How many companies are there in the BioVentureHub (BVH)? There are currently 18 companies and 1 academic group in the BVH.

How many people are employed by the BVH companies? There are currently 80+ people employed by the BVH companies.

What’s the maximum capacity for companies/people in the BVH? There’s no fixed limit. That said, we always assess whether there are synergies, both regarding AZ interests and/or with respect to other companies in the BVH. We also make sure that we have capacity to take them on, in all respects.

How is the BVH funded? Non-facility related costs incurred by AstraZeneca are reimbursed by external funds – from four external investors: Vinnova, Carl Bennet AB, Region Västra Götaland and City of Gothenburg. The companies also pay a monthly rental fee to FM. The BioVentureHub is cost neutral to AstraZeneca.

How does confidentiality work with the external BVH companies? One of the drivers behind the BVH is knowledge sharing. To benefit from what you learn, knowledge sharing can’t be restricted as a default option. There is always a possibility to set up separate confidentiality agreements if needed.

Can BVH companies access AZ equipment and expertise? Yes. As long as AZ has the capacity and departmental approval has been obtained. Requests from BVH companies to use AZ expertise and equipment should be managed through the BVH team.

Is AZ reducing its footprint due to the BVH? No. Besides stimulating open and collaborative innovation, the BVH makes use of office and lab spaces that aren’t being used.

Does AstraZeneca have any rights in the BVH companies? No. Joining the BVH does not give AstraZeneca any rights to your company information nor to potential inventions/IP – not even a “first right of refusal”. As such, you have full freedom to operate as an independent company. No strings attached.

What AZ facilities can the BHV company employees access and use? All general facilities, e.g. restaurant, meeting rooms… BVH company employees can also access the sports centre if they have bought a membership card.

What kind of companies are you looking for to join the BVH? The BioVentureHub is an ideal environment for emerging medtech and biotech companies working on innovative science. Let us know if you have any thoughts or ideas about companies that could benefit from and add value to the BVH and AstraZeneca.

Where can I find more information about the BVH and BVH companies? Talk to the AZ BVH staff and BVH company employees, and check out: www.azbioventurehub.com or send an email to bioventurehub@astrazeneca.com

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Scientific partners

Sponsors

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Acknowledgements

The BioVentureHub team would like to take this opportunity to sincerely thank everyone who has provided help, support and guidance throughout 2016.

We have enjoyed a fantastic year that wouldn’t have been possible without the formidable support we have received from our sponsors, our collaboration partners and from individuals and teams from across AstraZeneca, and the Gothenburg site.

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WWW.AZBIOVENTUREHUB.COM

The BioVentureHub team

Magnus BjörsneCEO

Niklas MagnellCOO

Jamie SmithCommunications

Ramon NoguerasReal Estate

Erica WoodrowCFO

Annica JohanssonFacilities Management

Special thanks go to the following people for going over and above the call of duty:

Jane Buus Laursen (GPPS); Anudharan Balendran (CVMD iMed); Kay Brickmann (SPA); Martin Adler (Procurement); Lars Västanhav (IT infrastructure); Ulrika Lilja Stevall (Legal); Ayman Al-Shurbaji (Spin-out); Lubomir Gradinarski (GMD); Staffan Folestad & Mats Berglund (Pharm Dev); Minna Blomster, Marie Anderson, Robert Goude, Mathias Björklund & Catharina Dahl (Facilities Management); Lars Sandberg (SHE); Stanko Skritic (Early Clinical Dev); Marcus Schindler (iMed); Jenny Sundqvist & Elisabeth Björk (Site Management); Jan-Olof Jacke (President, AZ Sweden)

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To learn more about the BioVentureHub and companies, visit www.azbioventurehub.com or send an email to

bioventurehub@astrazeneca.com

© AstraZeneca BioVentureHub AB