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Swiss Biotech Association’s perspective on theCovid-19 pandemic, Webinar, May 14, 2020Michael Altorfer, CEOHeike Bihlmann, Liaison Basel Area and SBA Academy

A tight cross-functional sEngineeringSwiss BiotechHubCell cultureFood & industrialBiotech consultingMedtechDiagnosticsAgricultureChemicals reagentsLabwareBio-equipmentMay 14, 2020Non-biotech consulting2swissbiotech.org

Rising number of biotech companies in SwitzerlandEvolution 2009 - 2019May 14, 20203swissbiotech.org

Rising number of Swiss biotech employeesEvolution 2017 - 2019May 14, 20204swissbiotech.org

Capital investments in Swiss biotech companiesPublic and private companiesMay 14, 20205swissbiotech.org

Revenues, R&D expenses, profit & loss, liquidityTotal Swiss biotech companiesMay 14, 20206swissbiotech.org

A strong startup environmentFrom 2007 - 2018 Venture Kickinvested CHF 3.16 million in 48Swiss biotech startups.This amount was amplified 159fold by grants andVC investments.May 14, 20207swissbiotech.org

High impact GermanyCanada1.6Market bble size represents thenumber of active patents percountry of inventor origin,reporting year 2016South KoreaRussia0.60.81.01.21.41.61.82.0Technology relevanceMay 14, 20202.22.42.6Source: IPI, Swiss Biotech Report 20178swissbiotech.org

Major investments in biopharmaceutical production sitesNovartis, 2020EUR 100 millionCiba-Geigy,1996Roche, 2007CHF 400 millionMSD (former Werthenstein)2015, 2008, 2000MSD (former Werthenstein)2015, 2008, 2000SBA, Swiss Biotech Report 2018Biogen, 2019CHF 1.5 billionUCB Pharma, 2007CHF 400 millionFerring, 2001CHF 30 millionCSL Behring, 2020CHF 1 billionLonza, 2020CHF 290 millionSerono, 1999EUR 300 millionCerbios, 2013May 14, 20209swissbiotech.org

Life sciences account for 40% of Swiss exportsPharma and biotech: CHF 97.5 bn in 2019May 14, 202010swissbiotech.org

Switzerland # 1 in innovation and competitivenessMay 14, 202011swissbiotech.org

SXI Bio MedTech Index on SIX (Jan 2015 - Jan 2020)Outperforms Swiss Performance Index (SPI) by 38% and NASDAQ Biotechnology by Jan-16Jul-16SXI Bio MedtechMay 14, 2020Jan-17Jul-17Nasdaq Biotechnology12Jan-18Jul-18SPIJan-19IPO / ListingJul-19Jan-20Source: FactSet, Feb-20swissbiotech.org

Swiss Biotech industry in numbersMay 14, 202013swissbiotech.org

A world-leading Biotech hub Attractive and reliable framework conditionsStable political environmentStrong intellectual property protectionRenowned universitiesHighly-qualified workforceExcellent R&D infrastructureBeneficial funding environmentSuperb quality of life1 Nation - 1 Biotech ClusterMay 14, 202014swissbiotech.org

Covid-19 pandemic changed the framework conditionsDelays on all frontsDelays are encountered in Public/private partnerships with academic partners in Switzerland andabroad External manufacturing, animal studies as well as screening and analyticalorders with CROs Clinical trials are either delayed or even stopped. It is very difficult to nowinitiate clinical trials as planned (a matter of luck as to which centres andcountries have been selected) Strategic partnerships are delayed or even need to be re-negotiatedMay 14, 202015swissbiotech.org

Covid-19 pandemic changed the framework .Preserving liquidity reserves to gain timeThe R&D projects are delayed and yet the fixed costs are hard to reduce Internal workload increases as companies fight to minimize delays andsecure ongoing trials - many cannot benefit from short time compensation Infrastructure cannot be used effectively and still the rent payment is due Patent portfolio is the key asset and must not be lost or compromised.Patent fees cannot be postponedHow to preserve cash and secure more time to catch up in delayed projectsor have more time to close financing rounds?May 14, 202016swissbiotech.org

Covid-19 pandemic changed the framework .No access to emergency loan program limits available optionsSurvey results: 50% of biotech companies seek to strengthen financial reserves before the end of2020. Combined they plan to raise 600 mio. CHF 15% are already in difficult financing discussions (the number will increase by anotherca. 15% in Q3 and Q4, respectively) Only 25% of the companies expect to close their financing rounds as plannedWithout access to emergency loans they can only protect their reserves by: Cutting internal costs Reducing investments in external R&D projects Selling IP rightsThis weakens Swiss innovation power and harms external partners as wellMay 14, 202017swissbiotech.org

Covid-19 pandemic offers new opportunitiesSwitzerland plays a key role in the global response to Covid-19Combined effort of Pharma/Biotech hub: Leading universities and university hospitalsInnovative R&D Biotech companiesRapid diagnostics development with global distribution powerBig Pharma companies rapidly test drug repurposing optionsSpecialized manufacturer (e.g. Lonza, Celonic, Bachem) offer valuable production know how andcapacitySelection of Swiss biotech companies that announced Covid-19 R&D programs Saiba Biotech/University hospital Berne, InnoMedica, Alpha-O Peptides, MemoTherapeutics Neurimmune, Humabs Biomed/Vir Biotechnology, Molecular ay 14, 202018swissbiotech.org

Swiss Biotech AssociationThe central resource for the Swiss biotech industryHow we support the biotech industry during these challenging times

Members of the Swiss Biotech Association (277)3M Abologix AC Bioscience AC Immune Activen ADC Therapeutics Addex Therapeutics Adolf Kühner Agidens Alphastrat AlveoliX Amal Therapeutics Anaveon Anergis Anjarium Biosciences Asceneuron Assystem Care Aurealis Pharma Axon Lab B3C Group Baccinex Bachem Baliopharm Basilea Pharmaceutica BC Platforms Becton Dickinson Bench Bideco Bio Innovations BioConcept Bioengineering Biogen BioLingus Biomapas Biopôle Bio-Rad Biosynth Bio- Technopark Schlieren-Zürich BioVersys blsc Bucher Biotec Büchi BÜHLMANN Cabinet Privé de Conseils CalypsoBiotech Canlion Carbogen Amcis CarthaGenetics C-CIT Sensors CDR-Life CEBIS International Celerion Cell Medica Cellestia Biotech Cerbios-Pharma certus molecular diagnostics ChemgineeringTechnology Cilatus Biopharma Consulting CimArk CIS Pharma Clinipace Consultants in Science Coulter & Partners CRB Creoptix CSL Behring CTC Clinical Trial Consulting Culture Collection ofSwitzerland Curatis Debiopharm International DXC RT EffRx Pharmaceuticals Elanix Biotechnologies Elthera Eurofins Medical Device Testing EVA Evitria ExcellGene ExpertInova Finox Biotech Future Health Pharma Gain Therapeutics GBiotech GE Healthcare Geistlich Pharma Gene Signal Genedata GeNeuro Genkyotex Glenmark Pharmaceuticals GMT Fine Chemicals Healthcare ImpactFoundation Hemex Heptares Therapeutics HGF Homburger Humabs BioMed IBR ICON Clinical Research Idorsia Pharmaceuticals IE Life Science Engineering Incyte Biosciences International Inflamalps Infors InnoMedica Inofea Inositec InSphero Integra Biosciences InterAx Biotech Janssen-Cilag Jenal & Partners Biosafety Consulting Jung & Partners KPMG Labatec Pharma LavesArzneimittel LeadXpro LimmaTech Biologics Lipidon Lonza Loroch LubioScience Lunaphore Technologies LYO-X Malcisbo Marsa Corporate Finance Maxia Strategies MD Biosciences MedDiscovery Mediatum Memo Therapeutics Merck & Cie MetrioPharm Micro-Sphere Microsynth Molecular Partners Morgan Sindall Mymetics NBE-Therapeutics NDA Neurimmune Novartis Pharma NovImmune Numab ObsEva Oculis OLS Omya Onelife P & G MedChem Pall PAREXEL Phargentis Philip Morris International Philochem Phoenixus Pharmaceuticals PIQUR PolyGene Polyneuron Polyphor Preclin Biosystems PreComb Therapeutics Promega ProteoMediX PSI CRO Quotient Suisse Recordati Redbiotec RegenLab regulanet ReseaChem Roche Glycart SAKK Santhera Sartorius Schmidt Versicherungs Treuhand Seagen International Securecell Selexis Servier SFL Pharma SGS M-Scan Shimadzu SimplicityBio Socorex SOPHiA GENETICS SpacePharma Dr. Rudolf K.Sprüngli Strekin SunRegen Healthcare Swiss Institute for Regenerative Medicine Swissfillon Switzerland Global Enterprise SynDermix Syngenta Synlab Synple Chem T3 Pharma Talentmark Target BioScience tepthera the RSA Group Therachon Thermo Fisher Life Technologies Thermo Fisher Scientific Prionics Tigermed Tillotts Pharma tiventa TJM Conseils Tolerys TOLREMO therapeutics Toolpoint for Lab Science Topadur Triplan Ingenieur UCB Unitectra ValuationLab Vaxxilon Venture Valuation Versameb Versantis Virometix Voisin Consulting Life Sciences MSD Werthenstein BioPharma Wyss ZurichMay 14, 202020swissbiotech.org

Our missionDeveloping favorable andcompetitive frameworkconditionsAttracting talent, know-how andfinancial resources to driveinnovation and growthMay 14, 202021swissbiotech.org

Specific support during Covid-19 pandemicHighlighting needs and exposure of R&D biotech companies Highlighting the needs to reduce fix costs and access to emergency loanstowards federal and regional authorities as well as the public Outlining the interdependencies between R&D companies (financingengine) and external CROs and advisors Work towards increased flexibility: Obtain flexibility in Innosuisse, Horizon 2020, Eurostars projects Rent, utilities and infrastructure related costs Short time work, daily allowances and other personal related costs Free or cost-effective services Access to emergency loans or Covid-19 related fundingMay 14, 202022swissbiotech.org

Specific support during Covid-19 pandemicJoint federal and cantonal supportFederal Council offers start-ups loan program and backs 65%. However,cantons need to sign up to the program and cover 35%. Some cantons, like ZH, did not sign up referring to other available regionalsupport, others (e.g. cantons in the Romandie) have already signed up. BS/BL will be detailed in a moment In all cases, strong regional support by the public, the cantonal executivebranch and parliaments will be key to provide effective support. As thesupport is needed now If we continue to cut off R&D SMEs from emergency loans they have to,and will, take measures to protect their liquidity reservesMay 14, 202023swissbiotech.org

Swiss Biotech AssociationImproving framework conditionsTaxationMay 14, 2020Technology transferAcademia – IndustrycollaborationsSeed / venturecapital24ClinicaldevelopmentsIndustry – Hospitalcollaborationsswissbiotech.org

Swiss Biotech AssociationBusiness solutionsSBA AcademySeminarsWorkshopsMay 14, 2020Discounted businessofferings (e.g.pension fund)25Promotion supportBiotech directory,jobs, clinical pipelineCo-promotionsDiscounted accessSpeakeropportunitiesswissbiotech.org

Our missionDeveloping favorable andcompetitive frameworkconditionsAttracting talent, know-how andfinancial resources to driveinnovation and growthPromoting theaccomplishments of theSwiss biotech industryFostering networking throughstrategic, national andinternational partnershipsMay 14, 202026swissbiotech.org

Specific support during Covid-19 pandemicMatchmaking and referralsThe SBA acts as a matchmaker and exchange platform to Support companies that are looking for capacity, advise, access toauthorities or to help initiating partnerships Promote companies that offer Covid-19 related services or offer costeffective solutions to help reducing the cash drain (we cannot supportnormal business development efforts) Connect to national and international Covid-19 partnering platforms Connect to national and international media to help promote Covid-19related projects Ensure that the Swiss contribution is visible in the global data bases and topotential donors (e.g. EU commission, ACT initiative)May 14, 202027swissbiotech.org