10TH

ANNIVERSARY

Summary report on CQDM economic impact2008-2018

Presented by : Diane Gosselin, CEONovembre 2018

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Founded in 2008 by Visionaries

Paul Lévesque Bernard Prigent

Max Fehlmann

Philippe Walker

Alain Beaudet Dawn Graham

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A Unique Collaborative Model in 2008

◼ Pharma driven

◼ A collaborative ground between the private and academic sectors

◼ An emerging model in 2008

◼ A lot of skepticism towards the CQDM model

MISSION : ACCELERATE DRUG DISCOVERY AND DEVELOPMENT

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A Significant Financial Leverage to Fill the Gap

PHARMA GOVERNMENTS CO-FUNDING PARTNERS

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PHARMA GOVERNMENTS

A Significant Financial Leverage to Fill the Gap

CO-FUNDING PARTNERS

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GOVERNMENTS CO-FUNDING PARTNERS

A Significant Financial Leverage to Fill the Gap

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◼ Stimulate innovation by supporting early stage translational research

◼ Bridge academic research to the private sector

◼ Generate benefits for the academic and private sectors

◼ Address critical needs of the bio-pharmaceutical research

A Significant Financial Leverage to Fill the Gap

HIGH-RISK, HIGH-REWARD PROJECTS

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The survey reflects the point of view of the

INVESTIGATORS

A Survey to Measure the Impact of CQDM

AREAS COVERED◼ Enabling technologies, products and services generated◼ Impact on the creation and growth of SMEs◼ Additional funding for academic institutions and SMEs◼ Follow-on partnerships with the pharma industry◼ Jobs and trainings ◼ Outreach

SOURCE OF QUANTITATIVE AND QUALITATIVE INFORMATION ◼ Annual and quarterly reports from the projects◼ In depth survey on 64 projects ◼ Over 100 people interviewed (investigators and entrepreneurs involved in the

projects)

Under the leadership of Gilles Duruflé, Economist

OVERALL OBJECTIVEScale the impact of funded projects on the ecosystem

The survey reflects the point of view of the

INVESTIGATORS

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Searching for Scientific Excellence, Innovation and Impact

$68MFUNDING

$44M CQDM$24M Co-funding

partners

1200RESEARCHERS

165 academic labs31 SMEs

64PROJECTS

25 Qc only11 Qc & International16 Qc & others provinces12 outside Qc

10FUNDING PROGRAMS

49 calls for proposals825 proposals reviewed

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STRATEGIC LEVERAGE:

◼ ACCELERATE INNOVATION

◼ INCREASE OUTREACH

◼ STIMULATE COMPANY GROWTH

◼ ENHANCE COMPETITIVENESS

A Number of Partnerships Fostered

31SMEs

165ACADEMIC

LABS

10LEADING PHARMA

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64 projects funded

47 completed

5 terminated

12 active

88% success ratedeliverables achieved during funding

500 products, services and research toolsgenerated from CQDM projects

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Diagnostics and Research Tools Developed

309RESARCH

TOOLS

11Discovery

17Clinical validation

2Market

30 DIAGNOSTICS

14 INSTRUMENTS

5Discovery

3Prototype

6Market

100Assays

68Animal models

55Cell lines

20Methods & Processes

13Softwares

9Databases

265OTHER TOOLS

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Several Therapeutics Generated from Platforms

56PLATFORMS

Drug discoveryDrug deliveryDrug screening

Developed

Used in research/ Commercialized

Validated

105Discovery

21Preclinical

2Phase I

2Phase II

1Phase III

131 THERAPEUTICS IN DEVELOPMENT

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The Medicago Example

VLPExpressdiscovery platform

CQDM funding

Publicly ownedMarket cap: $80M65 employeesPandemic Influenza vaccine - Phase I

Pandemic influenza Phase II

New programs initiated

RotavirusSeasonal influenza

3 undisclosed

Privately owned Raised over $300Min investment350 employees$245M FactoryInvestment (Quebec)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Norovirus

Manufacturing optimization

Ebola

Seasonal Influenza : Phase IIIRotavirus: Phase INorovirus: preclinical

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More than $194M in Follow-on Investmentsfor the development of CQDM-funded technologies

CONSORTIA

PUBLIC AGENCIES

PRIVATE FOUNDATIONS

INVESTORS

PRIVATE COMPANIES

SOURCE OF FUNDS

SMEsPharma

$10M $20M $30M $40M $50M

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CQDM-FUNDED PROJECTS

520 FTEs x year supported

(including 191 students trained)

A network of 1200 researchers(136 mentors from global pharma)

Jobs and Trainings Supported

1200FTEs x yearhighly skilled resources(estimated)

FOLLOW-ON

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◼ 6 Start-ups

◼ Growth of 40 existing companies

◼ 1 foreign company established in Quebec

A Collaborative Approach that Generates Benefits for SMEs

31SMEs

165ACADEMIC

LABS

10LEADING PHARMA

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0% 20% 40% 60% 80% 100%

FUND RAISING

PARTNERSHIPS WITH PHARMA

UNIQUE FUNDING FOR R&D

INCREASED RESEARCH CAPACITY

DEVELOPMENT OF NEW PRODUCTS

ACCES TO INNOVATION

Benefits Generated for SMEs

% positive responses among entrepreneurs interviewed

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SUPPORT OF CQDM FUNDED PROJECTS

◼ $14M initial funding

◼ 136 mentors from global Pharma

◼ Market pull approach

PARTNERS FOR THE FUTURE

◼ 71 follow-on interactions and partnerships with 26 different Pharma

◼ $41M follow-on investments

Benefits Generated from the Phama

31SMEs

165ACADEMIC

LABS

10LEADING PHARMA

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0

50

100

150

200

250

300

$M

inve

sted

A Very Impressive Financial Leverage

4.2x

$1 of Qc government funding generates

$13.2 total funding

Funding of CQDM projects

(64)

QC GOV.

$1 of Qc government funding generates

$4.2 for R&D

Follow-on investments

13.2x

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Conclusion

• A CATALYST TO THE CULTURE OF COLLABORATIVE INNOVATION

• TRANSFORMATIVE EFFECT GENERATED FROM FUNDING

• A MODEL THAT DELIVERS HIGH VALUE PRODUCTS AND SERVICES

• FILLS THE GAP TO FOSTER INNOVATION

IMPACT

BEYOND

EXPECTATIONS

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Breaking up the Silos to Conquer the Future

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A Dedicated Team

Diane Gosselin Michael Bridges Mario Chevrette

Naëla JanmamodeMathieu Perrée

Marc ThibaultSteven Xanthoudakis

Jennifer Saleeb

Véronique Dugas

Rebeca Baca-Diaz Olivier Carter

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An Experienced Board

ChairmanRichard Fajzel, CEO, Exactis Innovation

Members

Jennifer Chan, VP, Policy and Communications, Merck Canada

Diane Gosselin, President and CEO, CQDM

Raphael Hofstein, President and CEO, MaRS Innovation

Ken Pastor, General Partner, CTI Capital

Louise Proulx, Chief Development Officer, Therillia

Jorge Puente, Managing Partner, Pleasanton Pharma Ventures

Rémi Quirion, Quebec Chief Scientist

Uwe Schoenbeck, Senior VP & CSO, External R&D Innovation, Pfizer worldwide R&D

Ali Tehrani, Co-founder, President and CEO, Zymeworks

Patrick J. Wier, Senior VP, In Vitro/In Vivo Translation Platform, GSK

ChairmanDaniel Hétu, Managing Director, Lumira Capital

Members

Karen Akinsanya, Chief Biomedical Scientist, Schrödinger

André Darveau, Vice Rector, Administration, Université Laval

Diane Gosselin, President and CEO, CQDM

Reid Jason Leonard, Senior VP, Corporate Development, Potenza Therapeutics

Mark Lim, Assistant Director of Global Public Health Programs, American Society for Microbiology

A Rigorous Scientific Advisory Board

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An Extended Canadian and International Partner Network