Basics for Building on Our Life Sciences Strengths biocrossroads

Basics for Building on Our Life Sciences Strengths www.biocrossroads.com

“Though every state wants to be a hub for life sciences, Indiana really is one. Life sciences accounted for 23% of all [Indiana] job growth from 2001 to 2007.” The Economist, June 4, 2009

“This intense concentration is the magic elixir of modern economies why San Diego and Indianapolis are global players in life sciences ” Time Magazine Nov. 1, 2010 www.biocrossroads.com

“Where the Action Is”, The Wall Street Journal front page of The Journal Report, Aug. 22, 2011 www.biocrossroads.com

INDIANA’S STRENGTHS: We start with an enviable number of leading life science and biotech companies. These companies put thousands of Hoosiers to work every day in great, highly skilled and high-paying jobs.

Indiana’s life sciences leaders Warsaw Lafayette Evonik (700) Purdue University Purdue Research Park Terre Haute Eli Lilly and Company (200) Rose-Hulman Institute of Technology Bloomington Indiana University Baxter Biopharma Solutions (1,000) Cook Group Evansville (4,500) Bristol Myers Squibb (300) Covance (200) Mead Johnson (2,000) Zimmer (2,800) DePuy (1,200) Biomet (1,350) Indianapolis Beckman Coulter (600) Covance (1,800) Dow AgroSciences (1,200) Elanco (475) Eli Lilly and Company (10,500) Express Scripts (500) PharmaNet/i3 (350) Roche Diagnostics (3,000) WellPoint (4,200) Seymour/Spencer/ Batesville Boston Scientific (1,200) Cook Urology (525) Hill-Rom (2,000) UCB Group (360)

33% of the global orthopedics industry is based in Warsaw, Indiana Minnesota - 3.4B Illinois - 12M Indiana - 16.7B Michigan - 5B Massachusetts - 299M New York - 414M Oregon - 95M Pennsylvania 2.9B New Jersey 453M Maryland 15M Virginia - 77M Colorado - 7M California - 815M North Carolina 24M Georgia - 4M Texas - 763M Rest of World 4.9B Florida - 642M Tennessee - 389M

BIO/Battelle (2012) reports that Indiana is one of five states rated as Tier 1 – others are California, New Jersey, North Carolina and Massachusetts – for largest number of employees and companies

2011 data highlights the strength of Indiana’s life sciences sector and its impact on the State’s economy

Indiana’s Life Sciences Industry Includes All Major Segments Medical Devices and Equipment: 32% Drugs and Pharmaceuticals: 29% Biologistics: 18% Research, Testing and Medical Labs: 13% Agricultural Feedstock and Chemicals: 8% Over 55,000 Workers 10 Source: Indiana Business Research Center (IBRC) using data from the Bureau of Labor Statistics

Indiana stands among the top three life sciences exporters in the U.S. – behind only California and Texas; exports nearly quadrupled between 2002 and 2011 to 9.3 billion

Indiana’s life science sector is growing – which reinforces its ability to attract scientific talent to the state. R&D expansion (2005) - 24M Mfg & distribution (2007) - 66M Mfg (2008) - 19M Warsaw Mfg (2006) - 21M R&D (2010) - 28M Warsaw World’s largest automated pharmacy (2007) - 165M Whitestown Mfg (2011) - 15M Columbia City Centrifuge mfg (2007) - 6M Business Ops (2009) - 11M Mfg (2010) - 18M Indianapolis R&D expansion (2010) - 343M Indianapolis HQ Expansion (2012) - 14M Greenfield www.biocrossroads.com HQ Expansion (2012) - 300M Indianapolis

Over 40 companies employ nearly 10,000 workers in biopharmaceutical development and manufacturing in Indiana – with a number of CROs and CMOs supplementing Indiana’s vertically integrated companies www.biocrossroads.com

Contract drug development providers are expanding in Indiana Selected Expansions (2005-2012) Contract biotech mfg (2005) - 70M* Parenteral Fill/Finish (2008) - 80M* Bloomington Preclinical development (2008) - 126M Labs / Data Center (2012) - 150M Greenfield Contract Mfg (2010) West Lafayette Contract formulation (2005) - 34M Bloomington OTC Mfg (2007) - 60M Portage Solid dose mfg (2008) - 12M Solid dose mfg (2011) - 34M Seymour Sample logistics (2009) - 6M Indianapolis Preclinical development (2011) - 6M Indianapolis *Detailed facility description available at www.pharmaceutical-technology.com/projects www.biocrossroads.com Contract Mfg (2012) - 85M Terre Haute

What is BioCrossroads? BioCrossroads is Indiana’s initiative to build on our life sciences strengths WE INVEST: By launching and investing in new life sciences enterprises WE EDUCATE: By expanding science and math education in grades K-12 and higher learning institutions WE CONNECT: By partnering with Indiana’s life sciences research institutions, corporations, philanthropic organizations and state government to build new opportunities WE SPREAD THE WORD: By marketing Indiana’s life sciences industry

How BioCrossroads Works WE INVEST by organizing and fundraising to build our own venture capital funds to provide money for new companies: – Indiana Future Fund – a 73 million venture capital fund-of-funds (managed by Credit Suisse, with 10 Indiana institutional investors) for early-stage life sciences investments; this fund started things off in 2003 – Indiana Seed Fund I – a 6 million “pre-venture” fund (managed by BioCrossroads) organized in 2005 – INext Fund – a 58 million venture capital fund-of-funds (managed by Credit Suisse, with 6 Indiana institutional investors) raised as a follow-on fund to the Indiana Future Fund in 2009 – Indiana Seed Fund II – an 8 million “pre-venture” fund (managed by BioCrossroads) organized in April 2012

Beyond our investments, BioCrossroads has now supported more than 300 start-up companies and collaborations We help these enterprises by – Connecting them with industry partners Providing basic business planning guidance Advising on patent and IP strategies Opening connections to sources for further commercial development Linking with additional funding sources

How BioCrossroads Works WE CONNECT by creating and branding new and financially self-sustaining life sciences enterprises: – IHIE – Indiana Health Information Exchange, Inc., a non-profit corporation advancing a national, revenue-based model for the secure sharing of clinical information among healthcare patients, providers and other healthcare entities. Known as the largest and most advanced health information exchange in the U.S. – Fairbanks Institute for Healthy Communities – a non-profit enterprise utilizing Indiana’s vast clinical resources to gather comprehensive patient clinical and biological information for the prediction, prevention and treatment of disease. – BioCrossroadsLINX – a related non-profit organization specifically focused on advancing Indiana's strengths in drug development and manufacturing.

How BioCrossroads Works WE CONNECT by creating and branding new and financially selfsustaining life sciences enterprises: Datalys Center for Sports Injury Research & Prevention – a national non-profit providing research and surveillance services to sports and health organizations. OrthoWorx – a Warsaw-based, industry, community and educational non-profit initiative to advance and support growth and innovation within northern Indiana's uniquely concentrated, globally significant orthopedics device sector. ExibHIT Indiana (Expanding Indiana’s Breakthroughs in Health Information Technology) – a branding initiative focused on advancing the development and effective use of HIT within Indiana and across the U.S. To date, and with BioCrossroads’ direct facilitation, Indiana and Indiana-based organizations have received over 50 million in federal ARRA funds to advance Indiana HIT.

How BioCrossroads Works WE EDUCATE through responding to the industry’s human capital needs: Talent Recruitment and Retention: – To connect young professionals 21-40 years old in the Indianapolis area and facilitate community engagement, BioCrossroads formed IndyHub in 2005 Training and Workforce Development: – To respond to training needs -- e.g. developing the Biotech Associate’s degree and market-demanded, specialized orthopedics training programs at Ivy Tech; Post-Baccalaureate Education report (Nov. 2012) Improving K-12 Science and Math Education: – To provide the skilled workforce for STEM businesses, in 2006 BioCrossroads formed the I-STEM Resource Network

How BioCrossroads Works WE SPREAD THE WORD by building awareness and marketing Indiana’s life sciences industry – BioCrossroads provides the public profile for the life sciences as a leading economic sector in the state of Indiana. – Representatives are quoted frequently in local and national publications and serve as speakers at regional and national life sciences conferences – BioCrossroads.com gets more than 230 hits per day and visitors spend more than 3 minutes on the site – BioCrossroadsLINX.com serves as a national resource for information on Indiana’s contract services providers

AND WE DELIVER: Since 2003, BioCrossroads has - Directly raised over 300 million (and counting) of market capital and philanthropic funding to identify and pursue promising new Indiana life sciences opportunities Organized two life sciences venture capital funds – the Indiana Future Fund and the INext Fund – and organized and actively managed the Indiana Seed Fund and Indiana Enterprise Fund; currently manage the Indiana Seed Fund II Brought venture capital investment from these four funds to 28 start-up Indiana life sciences companies Attracted over 395 million of additional outside venture capital to join our Indiana funds and companies Formed 8 new sustainable enterprises (e.g., Fairbanks Institute for Healthy Communities, IHIE, OrthoWorx) to advance signature Indiana life sciences strengths (and resulting so far in a collective total of more than 100 new jobs) Significantly assisted in the attraction of over 3,000 new jobs in existing life sciences companies expanding or consolidating operations in Indiana Elevated Indiana’s visibility on the national map of biotechnology, medical device and healthcare IT centers

WE CONNECT through the BIOCROSSROADS BOARD OF DIRECTORS Dr. D. Craig Brater, Chairman Dean, Indiana University School of Medicine Dr. Michael McRobbie President, Indiana University Leonard Betley Chairman, Richard M. Fairbanks Foundation, Inc. Dr. Samuel Nussbaum Chief Medical Officer, WellPoint, Inc. Dr. Richard Buckius Vice President of Research, Purdue University Daniel Peterson Vice President for Industry and Government Affairs, Cook Group, Inc. Dr. Thomas Burish Provost, University of Notre Dame William Ringo Strategic Adviser, Sofinnova Ventures, and former Senior Vice President for Strategy and Business Development, Pfizer, Inc. Wayne Burris CFO, Roche Diagnostics Darren Carroll Vice President, Corporate Business Development, Eli Lilly and Company Daniel Evans President and CEO, IU Health Antonio Galindez President and CEO, Dow AgroSciences David L. Johnson President and CEO, BioCrossroads Dr. Jan Lundberg President Lilly Research Laboratories, Eli Lilly and Company Charles Schalliol Counsel, Faegre Baker Daniels, and former Director of the Office of Management and Budget and CFO for the State of Indiana Steve Schlegel Vice President of Corporate Development, WellPoint Jon Serbousek President, Biomet Orthopedics, Inc. Deborah Tanner President, Central Laboratory Services, Covance Sidney Taurel Chairman Emeritus, Eli Lilly and Company