Destination UtahMARK H PAUL, PRESIDENT STRYKER NEUROVASCULAR

PRESENTATION TITLE | DATE

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• Massive supporter of the State of Utah

• Graduate of the University of Utah – Occasional guest lecturer at

BYUs School of Management

• Passionate and committed to life science innovation

• +7 years as President, Stryker Neurovascular– Largest Neurovascular company in the world– Leader and pioneer in less invasive treatment

of aneurysms, ICAD, AIS– Teams in 73 countries– Manufacturing sites in No. California,

West Valley, Utah; Cork Ireland

• 14 years with heavy international focus

• 23 years in MedTech – focused on interventional medicine

– Neurovascular, cardiology, carotids, peripheral, CRM

• 5 years with Procter & Gamble

Disclosures & Background

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Great Quality of Life

Utah is a Great State

Nice People

5 National and 43 State Parks

Best Snow on Earthwith 15 Ski Resorts

Outdoors Paradise

Moderate Costof Living

High Value/Interest in Higher Education

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• Business friendly metrics

– Leads the nation in industrial banking + strong local banks

– Forbes Magazine• Utah –10th Happiest place to work

– Ball State Center for Business and Economic Research ranks Utah

• A= Human capital

• B = Sector diversification and

• B+ = Productivity and innovation

– National Association of Manufacturing and Council of Competitiveness

• Utah ranked #3 overall

• 16 cost, 6 economy, 1 access to capital, 4 business friendly, 12 workforce, 15 quality of life

Utah’s recent business environment recognition & growing

Forbes 2013; Ball State 2013; Nat Assoc of Manuf 2014

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What’s the Big Deal?

So what is all the fuss about

medical care

Innovation Anyway?

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• Growing ~4.5% CAGR

• Health Care is evolving – Life Science Innovation will evolve with it

• “Baby boomers” rapidly entering health care systems in every country

• Innovation is the solution to Health Care challenges vs Health Care rationing and cost cutting– Innovation: MedTech, BioTech, Diagnostics, Pharma, Imaging– Innovation: IT tools, medical care management data systems, patient

management systems

Life Science Industry +$1.2 Trillion

Deloitte 2011 & 2104 Reports

Hey Utah!How much of the +$1.2Trillion Life Science and Health Care industry do you want?

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It’s honorableOut come of life science industry serves 100s of millions – saves lives – it’s motivational

It attracts talentEmployees are highly educated and professional

It’s diverseLife Sciences employee a wide variety of skill sets, professional talent

It paysHigher than average and above most industries

It’s durableDespite headlines and the economy patients need to be treated

It’s sustainableMedTech attracts a robust network effect – manufacturing, lab suppliers, vendors networks

It’s repeatableLife Science companies grow spin offs and attract new companies and start ups

Why Would a State Want to Make Med Device, Diagnostics, Pharma and BioTech a focus?

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So what’s needed to BUILD Life Science Industry?Ireland Model – How Did They Become World’s Medical Manufacture?

LowMfg. Cost

Diverse

Higher

Education

InvestmentAccess to

CapitalAlignment

Talentfor EachFunction

Engaged

Legislature

and

Governor

Infrastructure & Support Network

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• Exam the results of focus and alignment– Premiere Life Science Manufacturing

Center– Employs over 24,000 directly– +160 Life Science companies– Sales of +$7.5 billion– Stryker, Medtronic, Abbott, Merit, Bard,

J&J, BSC, Zimmer, etc.– +100 indigenous cluster companies

have formed• R&D Tech, Contract Design, Contract

Manufacturers, Packaging, Sterilizers, Info Tech

How Did Ireland Do It?Ireland Model – Govt, Education, Industry Alignment

LowMfg. Cost

DiverseHigher

Education

InvestmentAccess to

CapitalAlignment

Talentfor EachFunction

Engaged Legislature

and Governor

Infrastructureand

SupportNetwork

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• The Medical Engineering Design and Innovation Centre (MEDIC)

• The National Centre for Biomedical Engineering Science (NCBES)

• South Eastern Applied Material Research Centre (SEAM)

• Centre for Research in Engineering Surface Technology (CREST)

• Micro Sensors for Clinical Analysis (MiCRA)

• Centre for Design Innovation

• National Centre for Sensor Research (NCSR)

• Bioengineering Research Centre

• Centre for Applied Biomedical Engineering Research (CABER)

• Centre for Nanotechnology and Materials Research (CNMR)

• National Centre for Laser Applications (NCLA)

• Innovations in Medical Devices (IMeD)

• Materials Ireland Polymer Research Centre

Ireland Invested +$10B Over the Last 15 Years…Government National and Local – Colleges and Universities – All Aligned

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Destination Utah: How Does Utah stack up?

LowMfg. Cost

Diverse

Higher

Education

InvestmentAccess to

CapitalAlignment

Talentfor EachFunction

Engaged

Legislature

and

Governor

Infrastructure & Support Network

Amazing News!

Utah has all the pieces,but increased alignment.

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Robust Higher Education & Talented People with Diverse Education and Professional Experience

Strong University system spread across the Wasatch front:• Public & Private Higher Education

Institutions• Univ. of Utah • Univ. of Utah Medical, Nursing and

Dental & Pharma Schools• Brigham Young• Utah State University• Weber State University• Utah Valley University• SL Community College• LDS Business College• West Minister College

Education to support:• Medical, Pharma, Biotech and

Device Innovation Development• Engineering EE, Mfg, Mechanical,

Environmental, Process, Materials• Medical/Patient Care• Law• Marketing• Clinical Trial Design• Regulatory• Global Supply Chain• Language Capacity• HR• Finance, Accounting• Sales• Quality• Data Collection• Information Services• Compliance

Diverse

Higher

Education

Talentfor EachFunction

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• Existing Companies, Big to Small– BARD Access– Merit Medical– GE Healthcare– Edwards Life

Sciences– Stryker– BD– Crocker Ventures– Myriad– Varian– Tolero– DiscGenics– Nelson Labs– BioFire

• Device Sterlizers– Steris-Isomedix– Sterigenics

• Transportation– SLC Intl Airport

– Delta Airlines Hub

• Airport to Industry Proximity– Outstanding

• Clean Rooms

• Growing Network Cluster– Labs, Machine

Shops, Vendors, Suppliers, Contract R&D, Mfg.

• Compliant work force employees who can follow exact work instructions

• Legal: Intellectual Property law firms

• USTAR

• Utah Tech Council

Amazing Industry Infrastructure are available today in Utah

Infrastructure & Support Network

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Foundational Life Science Infrastructure – Best of Both Worlds

University of Utah Medical Center/Huntsman Inst/Primary

• School of Medicine

• College of Health

• College of Nursing

• College of Pharmacy

• School Dentistry

• World Class teaching institution

• Millions in Research

• Clinical studies/trials

• Innovation & wealth of historical achievements in health care

• World Class MDs

Intermountain Health Care

• 22 Hospitals from the top to the bottom of the state

• Innovative in the collection of patient data, MD performance and apply it to regional HC guidance

– How the MD, the device/pharma outcomes

– Gathered, studied, classified own data– Shared back into the system to improve

quality of health care– While driving value up and cost out

Diverse

Higher

EducationTalentfor EachFunction

Infrastructure & Support Network

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Access to Capital & Government

• Industrial banking is a strength in the area

• Strong local banking partners– Zions, WellsFargo, etc.

• Private investors

• Venture capital:– Access to capital for investment

in devices, pharma, Biotech, Diagnostics, imaging, information systems

• Need an engaged Governor and development office

• Need engaged and knowledgeable legislature

• It will require – Incentives, Grants, etc.– Tax policy– Look to the Ireland Model

InvestmentAccess to

CapitalAlignment

Engaged

Legislature

and

Governor

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• Here is my ask…– University leaders – bankers –

legislature and governor – industry

– Align and Support

– Utah has all the puzzle pieces for a life science economic game board

– Infrastructure realities are in your control to develop a +$ Billion industry across the Wasatch front

Utah Has It All….It’s All Present…but Not Aligned

LowMfg. Cost

DiverseHigher

Education

InvestmentAccess to

CapitalAlignment

Talentfor EachFunction

Engaged Legislature

and Governor

Infrastructureand

SupportNetwork

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• Utah is the “the right place” …for medical care innovation

• You have all the pieces of the puzzle on your “economic develop game board”

• The State – Universities – Legislature – Banks Need to commit and align

Maybe Brigham Young Had It More Right than We Imagined

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Destination Utah Postcards: This is the Place!

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Imagine…