Rudjer Boskovic InstituteRudjer Boskovic Institute

Division of Molecular MedicineDivision of Molecular Medicine

Business Plan 2003-2007Business Plan 2003-2007

(S B M)

Neven Zarkovic

2002

POSTGRADUATE SCHOOL OF MOLECULAR BIOMEDICINE

RUDJER BOSKOVIC INSTITUTE'S

POSTGRADUATE SCHOOL OF MOLECULAR BIOMEDICINE

1. Introduction & Background One of the Rudjer Boskovic Institute (RBI) objectives that was accepted by representatives of the World Bank (WB) and the Croatian Ministry of Science & Technology (MZT) in October 2002, was: Objective 4.3. Creation of specialized post-graduate courses. "Creation of specialized post-graduate courses - The Institute recognizes the participation in the international education market as a valuable commercial activity that has significant development potential. The courses would be offered in English by faculty that would include international experts. Several highly successful summer school series in different topics of science have given the RBI staff experience in the necessary organization”.

A proposed approach to achieve this objective is a project entitled:

RUDJER BOSKOVIC INSTITUTE'S POSTGRADUATE SCHOOL OF MOLECULAR BIOMEDICINE

RBI POSTGRADUATE SCHOOL OF ONCOLOGYThis project will be spun out of the existing Division of Molecular Medicine at RBI. Management of the School will be carried out by appointed staff from the RBI and from the existing Division of Molecular Medicine. The teaching faculty will comprise existing lecturers, tutors and affiliates from the RBI Division of Molecular Medicine and associated departments of RBI as well as of the Croatian Universities along with International experts in the field. Accordingly the management of RBI and in particular of the Division of Molecular Medicine agreed to support the realization of a RBI Postgraduate School of Oncology as one of the priorities, i.e. already from the first year of the business plan.

1.1. Structure and Mission of the Postgraduate School:

It is envisioned that this objective could comprise two synergistic elements that could become self-financing:

1. Specialized courses offered as intensive conferences or summer schools. Of relatively short duration these courses would be partly or wholly hosted in recognized tourist areas that would appeal to international as well as to Croatian attendees. There are numerous examples of such courses held in the USA and in Europe that can command basic registration fees of $1800 per participant

2. Creation of specialized schools/ departments offering higher level post-graduate education (Ph.D., masters or other higher level degree qualifications) either as intensive research based programs or of a modular nature.

Such specialized schools provide multiple opportunities in that they can:

Attract high caliber students Attract high quality grant funding Attract industrial sponsors Become centers of national and international excellence Generate intellectual property (IP) that can either be licensed to industry or be used to spin out new

companies

An area in which the RBI has existing internationally recognized core strengths is the field of Molecular Oncology and Molecular Medicine. The RBI believes that it would be feasible to leverage this strength to create a School of Post-graduate studies – The Ruder Boskovic Institute Postgraduate School of Oncology that will make bases for development into the Postgraduate Study Center. This school would offer courses of both type (1) and type (2) above with a mission to become an International Center of Excellence in the field.

Implementation of this objective will require initial funding from grants, however it is envisioned that it will become self-financing and profitable within 4 – 6 years of the start of operations.

a) Intent The RBI Postgraduate School of Oncology intends to achieve several tasks:

1) To regulate the teaching activity of scientists employed at RBI in an infrastructure that will allow RBI to become a leading institution of internationally recognized higher education.

2) To increase the quality of education in the fields of oncology and molecular biomedicine.3) To promote collaboration between Croatian and foreign teachers and students in the fields of

molecular biomedicine and in particular oncology4) To increase complementary sources of funding RBI5) To promote collaboration with, and funding from pharmaceutical and biotechnology industry

sponsors 6) To generate high quality science and publications7) To generate intellectual property that can be:

licensed to industry, thereby generating revenues and royalties for the RBI Used to spin out new companies from the RBI, thereby generating revenues, royalties

and increased profile for the institute.8) To stem the "brain drain" by increasing the possibilities for high quality Ph.D. students to

access educational and funding opportunities for the realization of their thesis.9) To ensure the sustained growth of quality research at RBI and in particular the Division of

Molecular Medicine and affiliated institutions It is expected that the RBI Postgraduate School of Oncology will form the basis for a possible expansion into a RBI Postgraduate School of Molecular Biomedicine that will integrate future disciplines in the fields of molecular biomedicine (such as functional genomics, neurodegenerative diseases, etc.).

b) Legislative surrounding The RBI Postgraduate School of Oncology project will be carried out according to the existing Croatian Law "Zakon o visokim učilištima" (Narodne novine, 59, 1996) and the Bologna Declaration. Since it is expected that both the Croatian legislative and the Bologna process will be developing further in the near future, we will adjust to new legislative surrounding and intend to influence it as much as we can, in particular in case of the new Croatian law which is now being prepared. The following legislative preconditions need to be fulfilled:

1) Establishing all formal preconditions within RBI to be registered as an institution of higher education. This process is being prepared already. 2) Formal allowance from MZT and the National Education Board to become an institution of higher education. This process can be adjusted according to the support of the Croatian Government who initiated restructuring of RBI (with the WB supervision), thus; it has also to support our intent to become an institution of higher education.

3) Contracts between RBI and the University of Zagreb and foreign Universities that will allow partner relationships for the educational benefits and joint promotion at the Central European university arena. We do not intend to form contract associations with higher education institutions in the former federal state, with the exception of the new University of Jožef Stefan, Ljubljana (Slovenia) whose representatives have already discussed partnership opportunities.

c) Economic surrounding Many RBI scientists are also engaged on a private basis as teachers at universities, most actively at Zagreb University. Since these are private arrangements the RBI derives no economic benefit. However, the RBI Division of Molecular Medicine is active in the organization of specialized international scientific meetings that are used for educational purposes and that generate both direct as well as indirect profits.

c1) Division of Molecular Medicine - University teachers: The breakdown of existing staff at the RBI Division of Molecular Medicine engaged in university teaching activities is presented in Table 1.

TABLE 1. University teachers at RBI - Division of Molecular Medicine - year 2001.

Number of University Courses

Number of University Teachers - TOTAL = 31

113 assistants

(B.Sc., M.Sc.)

7 senior assistants

(Ph.D.)

3 res. associates(Assistant Professors)

6 senior res. associates(Associate Professors)

12 senior scientists

(Full Professors)

c2) Past economic performance: The past performance of the RBI Division of Molecular Medicine (Figure 1) shows relative economic stability with most (i.e. 68 – 79%) of the financial support coming from the MZT (state budget), (52-59 % for salaries, 8-11 % for fundamental research and 8-9 % for technological projects).

The remaining income (21 – 32%) was derived from industrial research contracts, industrial service contracts and revenue from scientific meetings. In terms of total income, the money from industrial research contracts, industrial service contracts and revenue from scientific meetings represents 2- to 3-fold more than the total MZT support of fundamental research. Note: No income from the salaries of staff privately engaged in University Teaching activities is included.

Figure 1. Year 2000 and 2001 Income of the RBI Division of Molecular Medicine.

c3) Current economic situation: For the year 2002 incomes remained similar to those for 2000-2001.

Figure 2. Income of the Division of Molecular Medicine, RBI for year 2002.

d) The RBI mission, as accepted by the MZT and WB, identifies the following topics as the most relevant:

a) Fundamental researchb) Educationc) Technological developmentd) RBI servicese) Generation of intellectual property and its associated commercial enterprises (e.g. spin off

companies or out-licensing opportunities) The project herein is primarily oriented to topic b) education. It will engage Croatian teachers from RBI and from Croatian universities (in particular University of Zagreb), Croatian scientists and university teachers working abroad as well as foreign experts, in particular those affiliated to RBI. The RBI Postgraduate School of Oncology is intended to become a self-financing or profitable activity within 7 years. However, for initiation it needs to be supported initially by MZT and/or WB to enable restructuring and integration within the overall the Croatian higher education system that is itself now restructuring. Some activities of this school are intended to be internationally prestigious. Such activities would include joint international Ph.D. thesis that would supported by the RBI scholarship fund initiated by the WB and MZT. 2. Current Situation

2.1. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

Strengths of RBI Postgraduate School of Oncology are: High professional level of teachers

High reputation of the Division of Molecular Medicine in the international biomedical scientific community (referral center of excellence for molecular medicine for SouthEast Europe Stability Program SECI).

Existing international collaborations and contacts with foreign teachers (an example being the class in oncology held by N. Zarkovic, G. Poli & RJ Schaur as doctoral study course at Medical Faculty of University in Zagreb: http://bio.mef.hr/ras-2/ras-2.html).

Existing facilities and organizational infrastructure Lecture halls, library, student support facilities Laboratories and most of equipment needed Relatively low personnel expenses Relatively low level of overhead at RBI Support of the other scientists at RBI Possibility to use student halls of the University in Zagreb for summer schools Use of RBI’s vacation resort at Rab island for summer schools

Weaknesses of the RBI Postgraduate School of Oncology: Possible objections from the Croatian academic community. Possible lack of interest from foreign students Need for financial support for the planning and initiation of the project

Opportunities are: Potential to use the RBI as promoter of Croatian higher education reform Potential to increase collaboration with European university centers on a pathway of the Bologna

process Development of novel postgraduate courses tailored to meet market demands Potential to improve the international ranking of Croatian higher education Potential to extend fundamental research through post-course contacts of teachers & students

Threats are: Preparation and execution of the project is dependent on the WB schedule Political influences Possible lack of interest of clinical oncologists to participate

2.2. PEST Analysis (Political, Economic, Social and Technological factors)

Political factors: High dependence of Croatian government on various international political institutions that

might influence restructuring of RBI Croatian Universities might oppose more independent involvement of RBI in higher

education Dependence of RBI on the Croatian science & technology policy (public institute) Possible political tendencies to make associations with university centers in the former federal

state (West Balkan policy of EU) that could jeopardize quality standards and economics

Economic factors: Dependence of Croatian government on the influence of various international monetary

institutions Unreliable sources of direct financing by scholarship fees Possible involvement of the other higher education institutions in direct investments in the

RBI Postgraduate School of Oncology Support from Division of Molecular Medicine and RBI

Social factors: Uncertainty of staff tenure and academic titles Motivation of participants to work on the project Reactions of public media, MZT and Croatian Education Committee Possible benefit to mitigate the “brain drain” at the national and the central European level

Technological factors: Need for “state-of-the-art” equipment and technology Performance of the school must continuously develop in collaboration with universities

(national and foreign) and research institutes Progress of the other projects realized at the RBI’s Division of Molecular Medicine (The

Project of Functional Genomics and The TSE Project) will increase practical performance of the school

2.3. Current Aspects of Modern Oncology Schools and Training Courses

2.3.1. Intensive commercial courses Due to the constant increase of knowledge in the field of modern medicine and in particular molecular biomedicine, there is a need for permanent education. This leads to various intensive courses in oncology designed for postgraduate students and professionals engaged in clinical and/or experimental oncology. Most of the existing schools have very attractive names and organize courses focused on particular topics (conference-like) in attractive locations with expert domestic and foreign lecturers. These conferences provide intense tuition on a commercial basis and as a result can demand high course fees. An example is the European School on Oncology that specializes in organizing courses in different fields of oncology (http://www.cancerworld.org/default.asp). These courses are often combined with tourism e.g. the forthcoming Winter Masterclass in Clinical Oncology January 19-24, 2003 - that combines a short intensive course at an attractive resort, Tenerife in the Canary Islands. Similarly, the Mediterranean School of Oncology in Rome organizes courses on similar bases at the site, i.e. in Rome http://www.unich.it/mso.cinbo/html. Their registration fee is 800 Euro for non-ESMO members, and 560 Euro for ESMO members. The registration fee includes tuition, course materials, two night’s accommodation, meals, and a group photo. Examples in the United States include Keystone meetings (combining skiing with intense conferences in Colorado) and IBC courses (website http://www.ibcusa.com/ or www.ibc-uk.com). Such conferences can run at $2000 per participant. Another good example is the Wiliamsburg Bioprocessing Foundation meetings (www.wilbio.com) that run excellent short meetings in good locations at very reasonable costs. We believe that the RBI Postgraduate School of Oncology can offer such courses combining an attractive resort (Adriatic sea for weekends) with expert tuition (lectures held in Zagreb).

2.3.2. Non-commercial schools Another type of modern biomedical schools is oriented to be non-commercial and is supported by respective ministries and international funds. An example is the Postgraduate School of Molecular Medicine (SMM) in Poland (http://embryo.ib.amwaw.edu.pl/smm). The SMM is composed of a

collaboration between the Medical Universities of Warsaw, Poznan and Szczecin along with the International Institute of Molecular and Cell Biology, the UNESCO/Polish Academy of Sciences and the Foundation for Experimental and Clinical Oncology. The main goal of the SMM is to offer new postgraduate PhD programs in the field of molecular medicine to Polish medical, biology and pharmacy students. SMM activities are supported by subsidies from the Polish Ministry of Health and Welfare and funding institutions. Additional generous help came also from the French government who offered a financial support for covering costs of participation of outstanding French scientists in tutorial and organizational activities of SMM as well as short-term scholarships for training of SMM students in the laboratories in France. This school is limited to 10 students per year. A further example is The University of Edinburgh School of Molecular and Clinical Medicine that is now providing an MSc/Postgraduate Diploma course (http://www.cpa.ed.ac.uk/calendar/pgradh/courses/100.html) consisting of approximately 160 hours of teaching, consisting of lectures, tutorials, and clinical demonstrations. About one-third of the course consists of supervised clinical teaching. Individual modules comprise the following:

Epidemiology (10 hours) MB0142 Pathology (20 hours) MB0143 Cell Biology and Radiobiology (20 hours) MB0144 Radiation Physics (30 hours) MB0145 Pharmacology (20 hours) MB0146 Statistics (10 hours) MB0136 Clinical Practice of Oncology (50 hours) MB0147

The RBI Postgraduate School of Oncology could combine aspects of all of the schools mentioned, with a curriculum resembling the UK one combined with Polish and Italian courses, but held in Zagreb with the possible use of the Rab seaside resort. The accuracy of the school performance will continuously develop in collaboration with Croatian and foreign universities and research institutes.

In addition, we intend to develop intensive collaborations with Croatian and foreign universities/ institutes as well as use an online exam system similar to that used by the NIH (USA) as Continuous Medical Education online for the accreditation of healthcare professionals http://cme.alphamedpress.org/.

3. Market Plan The RBI Postgraduate School of Oncology will be oriented to different participants at the local and the international level. These are:

Postgraduate students in the fields of natural sciences & medicine that fulfill the criteria of excellence, but who cannot themselves afford the costs of higher education courses

The best students from the previous group who wish to make their Ph.D. thesis at RBI and foreign institutes and were considered as the best annual students attending RBI Postgraduate School of Oncology

Clinical/ healthcare professionals and industrial scientists who wish to attend specialized courses in the field of Oncology. Such courses could comprise continuous education credits.

Although RBI is a "newcomer" in this field, the established experience and professional profile of its researchers together with the international reputation of RBI in science will allow its fast integration into the international academic community and education market. Thus, we expect that we will get students

not only from Croatia but also from surrounding countries as well as to be partners with the other European oncology schools that could provide reciprocal additional interests from their students. Accordingly we may expect market segmentation as follows: 30-40 students whose scholarships would be paid by RBI’s scholarship fund (supported by WB,

Croatian government, UNESCO and other international funds) at the scale of 1.500 $ that would include accommodation at the student halls of Zagreb University sufficient for minimal duration (100 hrs) of the study. For those who will not fulfil criteria for scholarship additional possible attendance on the commercial basis will be provided (20-30 students).

7 the best students from the above group will continue onto a Ph.D. thesis in the RBI laboratories at the Division of Molecular Medicine or affiliated laboratories abroad (mostly in Austria and Germany). The Ph.D. programs will be annual scholarships from RBI’s scholarship fund (for foreign and Croatian students) and/or Croatian government (for Croatian citizens) in the range of 10.000 $ each for the period of three years (differences in living costs abroad would be covered by host institutions such as Eppendorf University Clinics in Hamburg that expressed interest to join the school on this level). For such arrangements, MZT and/or RBI’s scholarship fund would invest additional 4.000 $ per year for material costs, while the rest will be covered by the host laboratories. These students will ultimately graduate with Ph.D. diplomas by RBI postgraduate school and by respective Croatian and foreign universities.

About 30-40 professionals per year who would attend specialized short courses at the school on a commercial bases (300-400 $ price of average course organized for at least 10 participants)

3.1. Customer Profiles: The initial "customers" for this school are expected to be: Professionals who will attend specialized courses MZT, WB, UNESCO and related institutions that will allow development of the RBI’s scholarship

fund to provide scholarships for the first batch of students Additional customers are expected to be respective companies and foreign ministries that will provide scholarships for their candidates for the RBI Postgraduate School of Oncology (and ultimately the School of Molecular Biomedicine).

Table 2. Market Analysis (estimated, in thousands $)

Potential Customers 2003 2004 2005 2006 2007WB /Cro Government/UNESCO investment

326 145 242 250 250

Students with scholarship 15 20 20 25 30Selected Ph.D. Students (only additional material costs)

0 28 28 28 28

Professionals 10 20 30 40 50Total 351 213 320 343 358

3.2. Target market segment strategy

Students for scholarships will be recruited via international public announcements from RBI, MZT & WB. The best applicants will be selected by the committee formed by representatives of RBI, MZT and international experts (also teachers at the RBI Postgraduate School of Oncology) with priority

given to Croat applicants. The aim is to attract the best students that with potential for world recognized research.

Selected Ph.D. Students will have mentors at RBI and/or Croatian or foreign university that would help designing a Ph.D. thesis project. Projects must fit within the interest frame of the laboratory/ laboratories) where the work will be carried out. Three professors from the RBI Postgraduate School of Oncology and representatives of MZT will verify projects. Representatives from the respective Domicile University or scientific institute could be included in the project evaluation, if needed. The aim is to recruit the most competitive high caliber candidates to the best projects within the frame of RBI Postgraduate School of Oncology and to keep them affiliated to the European research institutions and/or clinics. These students will finally get joint Ph.D. diplomas by RBI postgraduate school and by partner Croatian and foreign universities.

Clinical, healthcare and industrial professionals will be attracted to commercially orientated training courses The topics of courses will be adjusted to the market interests and advances in molecular biomedicine and modern oncology.

3.4. Competition Due to our organizational scheme we would not compete with any of the schools mentioned before, but would offer collaboration to them. However, we could expect our activities to be considered in a part of Croatian faculties as a competition. These should be prevented by support of the MZT and WB as well as by opened collaboration in particular with the University in Zagreb (primarily Faculty of Medicine, Faculty of Natural Sciences & Mathematics and Faculty of Biochemistry & Pharmacy). Thus, the RBI Postgraduate School of Oncology will rely on intense collaboration with University of Zagreb and other Croatian Universities (in particular medical faculties, like the one in Rijeka), not only on collaboration with the foreign colleagues. Accordingly we also intend to cover costs of engagement of university teachers and the use of their facilities (such as accommodation for the students at the student halls) from the scholarships incomes. Our students will finally get joint Ph.D. diplomas by RBI postgraduate school and by partner Croatian and foreign universities. University teachers from RBI who will hold their classes at the RBI Postgraduate School of Oncology will not quit their teaching activities at the universities where they are already active and will assure that there are no conflicts of interest in their activities on RBI Postgraduate School of Oncology and respective universities.

4. Human Resources Plan (HRP) The Division of Molecular Medicine of RBI currently employs 72 people (54 scientists, 14 technicians and 4 non-scientific administrative & support staff). As mentioned in Section 1.c.1, 31 of the 54 scientists also have university-teaching activities. We plan to involve in the RBI Postgraduate School of Oncology all active university teachers from the Division of Molecular Medicine, colleagues from the other divisions of RBI, professors from Croatian (mostly Zagreb) Universities and colleagues from abroad.

Figure 3. HR of Division of Molecular Medicine, RBI for year 2002.

The RBI Postgraduate School of Oncology will engage the following existing staff:

Administrative secretary - part time engagement - approx. 1 hr per week 5 Technicians - part time engagement - approx. 1 hr per week 10 Junior Assistant (M.Sc.) & Senior Assistants (Ph.D.) - part time engagement - approx. 2 hrs per

week 7 Professors (Mentors) - part time engagement - approx. 5 hrs per week 20 Professors (Assistant, Associate and Full Professors) - part time engagement - approx. 10 hrs per

year

The RBI Postgraduate School of Oncology will engage for every year from Croatian universities (mostly University of Zagreb): 20-25 Professors (Assistant, Associate and Full Professors) - part time engagement - approx. 5 hrs

per year The RBI Postgraduate School of Oncology will engage every year from foreign universities and institutes (mostly from Austria, Italy and Germany):

30-35 Professors (Assistant, Associate and Full Professors) - part time engagement - approx. 5 hrs per year

5. Equipment & Facilities Plan The Division of Molecular Medicine of RBI is well equipped and has most of the equipment needed to immediately initiate the RBI Postgraduate School of Oncology. However, some additional equipment is required. Some equipment is expected to be donated from collaborating institutions (in particular from

Austria and Germany as was already done), however the rest must be purchased at a projected cost of $140,000. Annual maintenance costs will be a further $7,000 per year. We intend to renew facilities for improved teaching purposes and will coordinate these efforts with the colleagues from other RBI Divisions, in particular Division of Molecular Genetics. For this purpose we intend to build suitable, modern lecture hall. Renovations and building new facilitates will require funding of $120,000. It is expected that the Croatian Government, i.e. WB, will provide the money needed for these while requests for equipment will be specified according to the advances in modern oncology and molecular biomedicine.

6. Organizational plan Teachers (Croatian citizens and foreign collaborators) of the RBI Postgraduate School of Oncology will jointly form academic councils and committees to coordinate and manage the activities of the school. Additionally, the School must form:

An advisory board comprised of foreign professors that is chaired by and internationally acknowledged field leader. This board will also be active over virtual conferences and direct contacts with RBI representatives and will focus on the school's curriculum and international activities, including funding and joint university Ph.D. diplomas.

A Board of Croatian University Professors who will provide a constant link between the activities of the RBI Postgraduate School of Oncology and other Croatian Universities to coordinate activities and to assure mutual recognition of academic degrees and promotion of joint M.Sc. and Ph.D. diplomas.

A Management board that will include representatives of all the boards mentioned before, representatives of the Division of Molecular Medicine, RBI administration (General Director) and representatives of MZT, WB, UNESCO and funding institutions.

7. Quality plan The curriculum of the RBI Postgraduate School of Oncology will be created with a major contribution of Austrian and in particular German experts who are already engaged in such activities at the European level. Thus, the school will have ECTS done for its courses by the foreign experts in the field. Individual Ph.D. projects will be evaluated and supervised by the international experts, mostly members of the advisory board. It is expected that once the legislative surrounding is positive, mutual recognition of degrees between the RBI Postgraduate School of Oncology and other higher education schools in Europe will be obtained. Our students will get joint Ph.D. diplomas by RBI postgraduate school and by partner Croatian and foreign universities.

8. Financial plan The estimated economic forecast for the first years of operation of the RBI Postgraduate School of Oncology are presented in Tables 3-5 and in Figure 4 below.

Table 3 details the projected costs of the first two (2) years of operation (estimated in thousands US $). This funding is being requested from the World Bank and/or Croatian government.

TABLE 3. Estimated values (estimated in thousands US $) needed for the initial 2 years.

Costs for two yearsRBI Postgraduate School of Oncology

Initial costs

I quarter

II quarter

III quarter

IV quarter

V quarter

VI quarter

VII quarter

VIII quarter

Total

Personnel costs

1 1 1 17 1 1 1 17 1 41

Consumables

0 3 3 10 5 7 7 21 7 63

Equipment & Facilities

260 0 0 0 0 3 4 0 0 267

Travels 2 2 2 15 2 2 2 15 2 44Student fees 0 0 0 45 0 17 17 52 17 148Overhead 66 2 2 22 2 8 8 26 7 141Total 329 8 8 109 10 38 39 131 34 704

The projected costs for the first (7) years of operation (estimated in thousands of US $) of the RBI Postgraduate School of Oncology are presented in Table 4.

TABLE 4. Overall COSTS (estimated in thousands of US $) of the RBI Postgraduate School of Oncology for the first seven (7) years of operation.

RBI Postgraduate School of Oncology (Molecular Biomedicine) Costs RBI

Initial costs

I quarter

II quarter

III quarter

IV quarter

V quarter

VI quarter

VII quarter

VIII quarter

3rd year

4th year

5th year

6th year

7th year

Total

Personnel costs 1 1 1 17 1 1 1 17 1 25 27 30 32 35 190Consumables 0 3 3 10 5 7 7 21 7 42 63 63 65 65 361Equipment & Facilities

260 70 30 0 0 3 4 0 0 7 15 20 25 25 459

Travels 2 2 2 15 2 2 2 15 2 21 30 30 30 30 185Student fees 0 0 0 45 0 17 17 52 17 185 190 200 200 200 1.12

3Overhead 66 19 9 11 2 3 4 13 3 24 34 36 38 39 299Total 329 95 45 98 10 33 35 118 30 304 359 379 390 394 2.61

7

A breakdown of the required grant funding and course related incomes for the first seven (7) years of operation of the RBI Postgraduate School of Oncology estimated in $ US thousand is presented in Table 5.

TABLE 5. Overall INCOMES (estimated in thousands of US $) of the RBI Postgraduate School of Oncology for 7 years.

RBI Postgraduate School of Oncology (Molecular Biomedicine) Incomes RBI

Initial income

I quarter

II quarter

III quarter

IV quarter

V quarter

VI quarter

VII quarter

VIII quarter

3rd year

4th year

5th year

6th year

7th year

Total

World Bank - CRO Government

326 95 45 98 10 33 35 110 30 250 250 200 150 100 1.732

Fees for Specialized Courses

0 0 0 5 5 5 5 5 4 30 40 50 55 60 264

International funds

0 0 0 0 0 0 0 10 10 50 70 150 200 250 740

Direct investments (equipment & pharmaceutical companies)

0 0 0 0 0 0 10 0 0 10 10 10 15 15 70

Total 329 95 45 103 15 38 50 125 44 340 370 410 420 425 2.809

According to the data presented in Tables 4 and 5 and as that shown graphically in Figure 4, it is projected that the RBI Postgraduate School of Oncology would become profitable in Year 4.

Figure 4. Cost-income expectations for the RBI School of Oncology for the period of 7 years. However, the school will constantly require the support of Ph.D. thesis work for the best students (on the international level) which is a necessary measure against the brain drain and will certainly get additional funding by international programs (e.g. WB, EU, SECI, etc.)

9. Action plan The tasks presented in this business plan for the RBI Postgraduate School of Oncology will be carried according to the milestones presented in the attached Gantt chart:

1) Organizing school institutions as detailed in Section 62) Registering RBI as an educational institute at MZT & establishing the RBI’s scholarship fund3) Defining relationship with Croatian universities and forming collaboration institutions as

detailed in Section 64) Defining relationships and settling agreements with foreign institutions5) Renovating and equipping facilities for the school purposes6) Announcing program and recruiting students 7) Starting commercial courses8) Realization of the school functions - exams and selection of the candidates for supported

Ph.D. projects9) Performing Ph.D. projects 10) Searching for international funding and private investments11) International funding and new courses initiation12) Expanding the School of Oncology into the RBI Postgraduate School of Molecular

Biomedicine

Gantt chart of activity plan with indicated milestones.Duration Start Finish 1st year

(quarters)2nd year

(quarters)Years 3-7

Task ID/Name 1 2 3 4 1 2 3 4 3 4 5 6 71) Organizing school institutions

7 months 12/

200207/ 2003

2) Registering RBI as educational institute at MZT

7 months 12/ 2002

07/ 2003

3) Defining relationship with Croatian universities

7 months 12/

200207/ 2003

4) Defining relationships and settling agreement with foreign institutions

7 months 12/ 2002

07/ 2003

5) Renewal

and equipping facilities for the school purposes

10 months

12/ 2002

10/ 2003

6) Announcing program and inviting students

> 7 years 09/2003

after 2010

7) Starting commercial courses

> 7 years 11/2003

after 2010

8) Primary school realization - exams - selection of the candidates for supported Ph.D. projects

> 5 months

07/2004

01/2005

9) Performing Ph.D. projects > 7 years 01/200

5after 2010

10)Search for international funding and private investments

> 7 years 09/2003

after 2010

11) International funding and new courses initiation

> 7 years 01/2004

after 2010

12) Developing into RBI Postgraduate School of Molecular Biomedicine

> 2 years 12/ 2002

12/2004

Project: Postgrad. school of bimolecular medicine (SBM)in USD

Description Initial investment

2003 2004 2005 2006 2007

RevenuesSales 10.000 49.000 90.000 120.000 210.000Gvmt & WB 329.000 248.000 208.000 250.000 250.000 200.000Other sources 0 0 0 0 0 0Total Revenues 258.000 257.000 340.000 370.000 410.000CostsFacilities & Equipment 260.000 100.000 7.000 7.000 15.000 20.000Personnel 1.000 20.000 20.000 25.000 27.000 30.000Consumables 21.000 42.000 42.000 63.000 63.000IRB Overhead 66.000 41.000 23.000 24.000 34.000 36.000Other (Travel etc.) 2.000 66.000 124.000 206.000 220.000 230.000Total Expenses 329.000 248.000 216.000 304.000 359.000 379.000Operation profit 10.000 41.000 36.000 11.000 31.000