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SPAIN WORLD CLASS CONTENDER IN BIOTECH - PARTNER COUNTRY SPAIN BIOASIA 2013 (28-30/01/13), HYDERABAD –

OUTLINE:

1. SPAIN, a country of Science and Innovation 2. Why SPANISH Life Science Sector 3. SPANISH Biotech Sector 4. Objectives of the Spanish Delegation participating at BioAsia 2013

1. SPAIN, a country of Science and Innovation

Internationally known especially in recent years for its leadership in renewable energy, infrastructure, telecommunications, tourism, gastronomy, culture and sport. Besides that, there is another key component of this economic transformation, a more recent one, which is the decisive role of Science and Innovation.

Country that has gone from playing a minor role in the international science scene (ranked 30th in the early 80’s) to become 9th scientific power in the world and 5th in the EU).

Home to a major research centre, CSIC (Spanish National Research Council), amongst worlds’ top 11 and third largest in Europe. Its Mission is to coordinate, develop and promote scientific and technological research of a multidisciplinary nature, represents 6% of all national staff dedicated to R&D in Spain generating at the same time 20% of all the scientific production of the country. Other relevant public research organizations are CIEMAT centre of excellence in the areas of energy, environment and technology, the Instituto de Salud Carlos III with 3 centres of excellence in the areas of oncology (CNIO), cardiovascular (CNIC) and neurological diseases and the Agrofood R&D institution INIA.

Spain’s R&D intensity has grown from 0,91% of GDP in 2000 to 1,39% in 2010, recording one of the highest growths in R&D spending in the EU during the same period.

Equipped with latest science infrastructures crucial for the advancement of experimental science and technological development of the country. Infrastructures such as the Plataforma Solar de Almeria, worldwide reference and EU largest Concentrating Solar Power Technologies R&D facility, which has definitely contributed to the leadership of Spanish companies in this field. The Alba Synchrotron in Cerdanyola del Valles near Barcelona, a third light generation synchrotron light facility (accelerator of electrons), the SuperComputer Mare Nostrum, one of the most powerful supercomputers in Europe

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and the Spanish led Great Telescope on the island of La Palma, considered the world largest single aperture optical telescope.

2. WHY SPANISH LIFE SCIENCE SECTOR Solid Basic Science. Spain is 9th world scientific power and 4th by scientific production in the EU. Integrated Healthcare System. Spain has an extensive network of 800 hospitals, both public and

private, backed by leading-edge research centres. The system is ideal for translational medicine and discovering new drugs and advanced therapies.

Emerging Biotech Industry. Biotech companies are growing faster than in other countries. During 2000-2010 the number of biotech companies rose 359%.

Strong Government Support. The Spanish Government offers low-interest credits and incentives during the start-up and growth phases of life science companies.

Excellent infrastructure for innovation. Exponential growth of science and technology parks (nearly 80), research centres and institutes of technology. Spain’s infrastructure also incorporates the latest technology for life science projects.

High qualified workforce. In some areas of Spain the percentage of workers with post-graduate studies is higher than the European average. There is a surplus of talent for competitive and innovative projects.

Favourable cost-benefit ration of human capital. The cost per hour is less than average for EU 25. Salaries are lower but the attraction of working in scientific or biotech projects is high because there are few innovative jobs.

3. SPANISH BIOTECH SECTOR Snapshot – OECD Key BIOTECH Indicators (2012)

- Spain top 2nd OECD country, only after the USA, by number of biotechnology firms. - Spain is the 8th OECD country in terms of total biotech R&D expenditure of the business sector.

Investment stood at 794.1 millions of euros, representing a 7,6% of the total R&D investment of national companies.

- Spain ranks 3rd OECD country in terms of R&D expenditures performed by the public sector in 2010, representing a 14,1% of the total public R&D expenditure.

- Spain holds 1,79% share (India 1,11%) of the total number of patents filed by biotech firms under Patent Co-operation Treaty (PCT) 2008-2010.

General Description. - The Spanish biotechnology industry is an emerging industry in which business creation has grown

quite significantly in recent years. In 2010, there are 1,715 companies involved in biotech activities (+12,9% more than in 2009) and 617 strictly biotech (+30% more than in 2009). Thriving number of biotech companies. There is a strong spin-out culture, every year public institutions create between 10 and 12 new companies. The number of jobs in the sector as a whole now stands at 163,526. Directly and indirectly, biotech accounted for 1% of Spain’s GDP in 200. Forecasts put this figure at 1,8% of GDP in 2012.

Geographic distribution of Biotech Companies and Applications Area.

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Geographic Distribution:

- Out of the 1,715 companies using biotechnology in Spain, Catalonia has consolidated its position as the region with the highest concentration of companies (19,08%). Behind them, Andalusia, with 14% of the national total, has pulled ahead of the Madrid region for the first time (with 11,85%). Other particular active Autonomous Communities include Castilla y Leon (8,01%), the Valencia Region (7,87%), Galicia (7,16%) and the Basque Country (6,85%).

- When it comes to number of biotech companies, the Madrid Region has the highest concentration (17,39%), followed by Catalonia, (15,01%) and Andalusia (13,19%).

Sector-based Distribution:

Among the companies using biotechnology, applications in the food field (53%) predominate, followed by human health (31%), agriculture and forestry production (16%), environmental applications (14%) and, finally other industrial applications (12%).

Among the companies completely dedicated to biotechnology, the majority are companies that work in human health (54%) and secondarily, there are applications in the food field.

International Co-operation.

In 2011, partnerships with foreign entities increased 7% from levels recorded in 2010 (In 2010 143 partnerships were formed). Of those that set up partnerships with Spanish biotech companies, other than European countries and the USA account for 65% and 21%, respectively.

Success Stories.

- 2000: Pfizer invested 12m euros in its European Biometric Centre, which has support functions for the rest of Europe and USA.

- 2002: Abengoa signed a 35.5million dollar R&D Agreement with the US Department of Energy. - 2002: Lilly opened its research centre for medicinal chemistry, one of the biggest in the world,

investing 20 million euros. - 2003: Serono concentrates its global growth-hormone production in Spain. - 2005: GSK opens its research centre for tropical diseases in Spain. - 2009: Genzyme sets up a sales office in Madrid and has a warehouse for domestic distribution. - 2011: Celgene opens its first research centre outside the USA in Seville. The Celgene Institute of

Translational Research Europe (CITRE) plans to focus on advanced therapies and regenerative medicine.

HIGHLIGHTS on the SPANISH BIOTECH SECTOR

- SPAIN is the leader in agro-biotech in the OECD. Spain is the top country with 0,7% of cultivatable land used for GMOs. Spain is the top country in Europe having cultivated 80% of the European GMO (Genetically Modified Organisms) (Bt-Corn).

- Main technologies in Biopharma in which Spanish Companies are leaders: oncology, cardiovascular, neurological and reproductive. Regenerative medicine, cell and gene therapy. SPAIN, global leader in

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PLASMA derived PRODUCST & THERAPIES (Grifols). At the forefront of the creation of a blue-bio approach, sea-based biomedicine and access to Spanish National DNA back up. Rapidly becoming a leader in biomedicine, genetic modified organisms and e-health businesses.

- Cost-effective Clinical Testing. On average the cost per patient of clinical testing in Spain is 30% less than other markets such as the USA. There are currently about 3,000 trials underway at Spanish hospitals. This means Spain is 5th in clinical testing in the European Union. Spain positioned as a connection between US Pharma Companies and EU patients. High quality-price-ratio of scientific talent

- An established Pharmaceutical Industry in SPAIN. Spain is the 6th pharmaceutical European power and accounts for 19,8% of all private R&D spending in Spain.

- 4th NANO BIOTECH Scientific Production in the world. Barcelona, 2nd Nano Biotech city after Boston.

- Big NETWORK of SCIENCE PARKS / BIOCLUSTERS. Major biotech Clusters: Andalucía (Cell therapies, functional foods, biofuels, biology pest control in agriculture) Biocat (oncology, nanomedicine, structural biology, genomics), Madrid (oncology, cell therapy, human health diagnosis, neurology), Biobasque (personal medicine, biosensors, bioengineering), BIOVal (Functional foods, reproductive medicine, regenerative medicine, molecular diagnosis)

4. OBJECTIVES OF SPANISH DELEGATION PARTICIPATING AT BIOASIA 2013 Background and framework:

- Programme of Cooperation signed between the Department of Biotechnology – DBT -

(Ministry of Science and Technology, India) and Centre for the Development of Industrial Technology (Secretariat of State for R&D and Innovation, Ministry of Economy and Competitiveness, Spain) – November 2011.

- Objective: promote and provide preferential financing for innovation-driven research and technology development / encourage partnerships and business-led R&D&I collaborative projects in the field of biotechnology.

- Actions implemented: 1st DBT-CDTI Call for R&D Proposals launched (01/06/12 – 15/10/12). Proposals are currently under evaluation.

Objectives of the Technology Mission:

- Identification of potential partners (research centres / companies) for industry-driven R&D consortia for future R&D Calls for Proposals under the DBT-CDTI Programme or other European Programmes (FP7, Horizon 2020, Coordinated Calls EU-India).

- Licensing & Technology transfer / Industrial implementation / commercial exploitation of technologies.

- Co-developments - Research collaboration agreements - Networking - JVs / M&As