Open innovation – Opportunities and risks of IP transfer across borders

Open innovation – Opportunities and risks of IP transfer across borders

Martin Bonenfant, Ph.D.NRC – IRAP Global Innovation Conference

February 24th, 2011

Martin Bonenfant, Ph.D.NRC – IRAP Global Innovation Conference

February 24th, 2011

Forward-Looking Statements and Disclaimers

• All statements, other than statements of historical facts, included in this presentation regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “believe”, “anticipate”, “estimate”, “plan”, “expect”, “intend”, “may”, “project”, “will”, “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We cannot guarantee that we actually will achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. There are a number of important factors that could cause our actual results to differ materially from those indicated or implied by forward-looking statements, including the factors discussed under “Risk Factors” and in other sections of the prospectus. These factors and the other cautionary statements made in the prospectus should be read as being applicable to all related forward-looking statements wherever they appear in this presentation.

• Our statements of “belief” in respect of our product and partner product candidates are based primarily upon our results derived to date from our research and development program. We believe that we have a reasonable scientific basis upon which we have made such statements. It is not possible, however, to predict, based upon studies in vitro and animal studies whether a new therapeutic agent or technology will be proved to be safe and/or effective in humans. We cannot assure that the particular results expected by us will occur.

• Any forward-looking statements and statements of “belief” represent our estimates only as of the date of the prospectus and should not be relied upon as representing our estimates as of any subsequent date. Except as required by law, we do not assume any obligation to update any forward looking statements or statements of “belief”. We disclaim any intention or obligation to update or revise any forward-looking statements or statements of “belief”, whether as a result of new information, future events or otherwise.

• Nothing herein should be construed as an Offering of securities of the Company.

© 2011 Medicago Inc.All rights reserved

An overview

Established 1999

Employees 100+

Headquarters Quebec City, Canada

Focus Vaccines

Vaccine technology Virus-like particles (VLPs)

Manufacturing technology

Transient expression in tobacco

Product pipelinePandemic influenza – Phase II

Seasonal influenza –Phase I

© 2011 Medicago Inc.All rights reserved

Manufacturing platform

• Recombinant protein production via transient expression in plants

• Fast • Economical

• Potential for biosimilars, antibodies, …

Discovery applicationVLPExpress

• Antigen discovery

• Antigen optimization

Product applicationInfluenza virus-like particles

(“VLP”)

• Safe• Immuno-

stimulatory

Vaccine technologies

The technologies

© 2011 Medicago Inc.All rights reserved

• Patents covering tools, discovery methods, manufacturing processes and products (about 25 families).

– Granted patents = 118

– Pending patents = 185

• Countries covered by patents = 60+ (as of Feb 24th)– Market

– Manufacture

– Competition

• Also other IP such as trademarks, licenses, trade secrets, know-how, consulting, etc...

The intellectual property

© 2011 Medicago Inc.All rights reserved

The development strategy

Pipeline development

Partnerships with pharmaceutical companies, governments and not-for-profit organizations for tools, product improvements and new products

- Clinical development of influenza vaccines - Other vaccine targets - Antibodies- Recombinant proteins - Biosimilars

Our IP is directed towards - Tools

Genetic sequences, expression cassettes, cloning tools...

- Products

Vaccines, recombinant proteins, antibodies, biosimilars...

- Process

Cloning, expression, harvesting, extraction, purification...

Take IP

Give & Take IP

Do not share IP

– License Option clauses• To use after termination of research collaboration

– Joint IP clauses• Terms must be clearly spelled out

– ownership, filing, maintenance, abandonment, disputes• Must not interfere with background IP

– don‘t want partner to have too much rights on our IP• Must not interfere with future activities

– there are limitations to what you can do in a joint ownership (licenses, sublicenses, sales, etc)

• Might be a good idea to have an escape clause if partnership turns ugly

– Background IP clauses• Must not affect other businesses, such as agreements or

partnerships, both past and future, such as exclusivity deals for example.

Using research collaboration agreements

© 2011 Medicago Inc.All rights reserved

The global solution

• Large production centers• Complex infrastructure and organization (egg supply)• High capital and fixed costs

• Therefore, exclusively located in North American and Europe

GSK facility in Quebec City

• Small facilities • Low complexity level• Low capital investment and fixed costs

• Therefore, easy to build globally and accessible to emerging countries

MDG facility in Quebec City

The expansion strategy

Expansion development

Partnerships with Pharmaceutical companies and Governments to establish domestic vaccine production infrastructures

- USA - South America- France - Middle East

- Russia- Asia

Pursuing pipeline development through expansion development

USA• Validation of our construction costs / speed• Validation of our manufacturing speed• Validation of the quality of our product• Perform clinical trials of flu vaccine candidatesFrance• Development of new targets of interest to government

Unique technology + Unique market niche (influenza vaccines)

Preferred expansion route : Implantation of subsidiaries

- Increases chances of local partnerships- Gives access to local fundings- Decreases involvement/risks of parent company- Eases technology and knowledge transfer (all internal)

- Lots of staff mobility in both ways- Cultural barriers- Differences in education = Difference in skills?- Status of IP enforcement

Medicago – Think Global, Act Local

+

-

Careful at protecting core business