Bioregion of Catalonia Life Sciences and Healthcare Outlook Challenges Ahead

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BioRegion of Catalonia Life Sciences and Healthcare Outlook Challenges Ahead

2020 #BioRegionReport report.biocat.cat BioRegion of Catalonia 2020 Report 2 Executive Summary

than Austria or Finland). If we broaden our focus, Outlook on the Ecosystem’s The global crisis caused by SARS-CoV-2 has ❷ Investment Catalonia was ranked among the top 15 globally put unprecedented pressure on the healthcare and the top 10 in Europe in number of active Assets, Capacities and system and made clear the need to strengthen The capital raised by startups in the BioRegion from clinical trials in 2019, many in collaboration with the innovation system in this sector. Catalonia various funding sources has grown steadily over multinational pharmaceutical companies. Accomplishments, as well is a leader in the life sciences and healthcare the past five years. Although the biggest operations in Europe. The BioRegion has the responsibility are mostly in biotech and medtech, digital health as the Challenges it is to contribute to a global solution. Catalonia has companies are growing the fastest, with investment ❹ Future Challenges responded quickly with high-quality research, multiplied by 3.5 since 2016. In 2020*, total Facing to Scale Up by 2025 leading a number of studies and clinical trials investment in the BioRegion hit a new record of Catalonia has trouble generating innovation, on Covid-19. In order to go even further and €120 million, continuing the trend of +€100 million according to European competitiveness indicators. lead solutions, it is essential to identify points for the fifth year in a row, with venture capital being Championing the BioRegion’s successes, which that need improvement and implement the the predominant source of investment. In one in four have increased in recent years, shouldn’t stop us necessary actions to maximize the impact of rounds of funding, investors based in Catalonia co- from identifying pressure points and needs for local capacities and technology. To mitigate the invested with international firms, mainly from the improvement to promote the scale up of a solid ❶ General Overview consequences (health, social and economic) rest of Europe and the United States. This capital sector that can be a key driving force for the Catalan and prepare for this and future pandemics, the is essential for advancing a pipeline that started economy and society. To support this, we must The life sciences and healthcare sector is key to the capacities, strategy and talent of this vibrant, out the year with 41 drugs and therapies advancing tackle challenges in technology transfer to achieve a country’s competitiveness and general wellbeing. internationally competitive ecosystem will have through the clinical phases on their way to patients. robust, competitive academic innovation ecosystem. The foundations of the BioRegion, a leading hub to all work in the same direction. We have to work on our strategy for attracting and in Europe, are its excellent research, quality higher developing talent in the ecosystem in order to meet education system and network of talent, institutions Covid-19 Clinical Trials in Europe ↘ ❸ Science and the sector’s needs and how it is changing. It is and companies that are doing cutting-edge research essential to further leverage capital and attract more and provide the sector with innovation and services. 2 Technology Assets investment, driving a dealflow with the right number An industry made up of over 1,200 companies, 42 2 of investment-ready projects of the best quality, mainly biotech, pharma, medtech and digital health 25 These drugs, therapies and technologies come out in line with the country’s great potential. And we firms, that together with healthcare services account 2 of the ecosystem’s hospital institutes, research need a quality, financially sustainable public health for 7.3% of the Catalan GDP. With indicators of centers, universities, large infrastructures and system that can adopt valuable innovations quickly 46 2 success (company creation, investment attracted, companies, which make up one of the most and easily in a structured, transparent manner. 166 employment, increase in pipeline, etc.) that have 7 powerful life sciences and healthcare hubs in Tackling these challenges will open up a whole slew 32 25 posted sustained growth since 2010. The boom of 95 Europe. In this sector, Catalonia attracts as much of opportunities aligned with the 2025 Strategic 65 accelerators, instruments and programs to support 25 competitive European funding as Austria or Belgium, Vision for a highly innovative, competitive, prepared startups, entrepreneurs and researchers is helping 464 53 12 and is awarded more ERC grants than Finland or Catalonia, which all the stakeholders have to start generate opportunities and scale up an ecosystem Denmark. In this comparison to leading European helping build now. 160 that is attractive to multinational corporations 159 82 * 21 countries that are similar in size and population, and international investors. In fact, according to 13 Catalonia also stands out in terms of the volume

FDI Markets, Catalonia has been the top region in (*) Trials in Catalonia are included in Spain. September 2020 and impact of scientific production in the life Southern Europe for foreign investment since 2016. sciences, as well as in patent applications (more (*) YTD September 2020 01 Overview and Key Indicators BioRegion of Catalonia 2020 Report 4 ❶ Overview and Key Indicators

A Strategic Sector Mapping the BioRegion of Catalonia Ecosystem for Catalonia + 1,200 Companies 89 Research Institutions

Representing 7.3% of the GDP, the life sciences and healthcare sector’s growth model is based on excellent Biotech Pharma Medtech Digital Health Research Centers University research, education, innovation and 311 124 193 180 40 Hospitals entrepreneurship. 18 Life Sciences Healthcare Industry GDP Services GDP 3.5 % 3.8 % 7.3 %

Revenue of Life Sciences Companies, among the Highest in Catalonia

Automotive €23,842 M

Life Sciences and Healthcare €19,767 M

ICT €18,325 M

Textile and Fashion €14,500 M

Smart Cities €9,717 M Science & Universities Beauty €9,000 M Technology Parks 12 Cybersecurity €809 M 14 Investors Suppliers Professional Services IoT €520 M 43 & Engineering & Consulting Robotics €460 M 156 198

Videogames €431 M

3D Printing €325 M

Source: ACCIÓ, Biocat Large Technology Infrastructures Centers ↗ Figures indicate the number of stakeholders in each 3 2 subsector. Dark colors highlight the strongest capabilities among the stakeholders. Source: Biocat BioRegion of Catalonia 2020 Report 5 ❶ Overview and Key Indicators

Revenue Macroeconomic Indicators Revenue Workforce Industry Revenue 2018 Digital Health €119 M and Employment Industry Revenue (€ M) Sector Revenue 2018 Professional Services €672 M The macroeconomic indicators for & Consulting the BioRegion show sustained growth 19,767 Healthcare Services (*) Supplier since 2011. €14,473 M €2,611 M & Engineering

18,242 18,032 17,878 17,802 Medical €3,109 M €34,240 M Technology Size of Companies 16,305 The great bulk (78%) of companies in the 16,009 15,944 BioRegion is small and micro enterprises. Medium-sized companies make up 14%. Biotechnology €4,098 M €19,767 M 2011 2012 2013 2014 2015 2016 2017 2018 Industry

Industry Workforce (Employees) Sector Workforce 2018 92% Industry of companies Pharma €9,158 M 55,440 Employees are SMEs 55,440 53,731 53,213

51,393 230,000 49,284 Employees

47,764 47,112 46,227

↗ (*) Health Services: Including the provision of healthcare 175,000 Employees and social services to health institutions that provide accommodation and that offer diagnostic and medical 2011 2012 2013 2014 2015 2016 2017 2018 Healthcare Services (*) treatments to patients. Sources: Biocat, SABI 2018, Idescat 2016 BioRegion of Catalonia 2020 Report 6 ❶ Overview and Key Indicators

Headquarters Top Global Companies Established in Catalonia and Multinationals BioRegion Headquarters

Catalonia is home to 50% of the Spanish pharmaceutical industry and the birthplace of the 5 largest companies (Almirall, Esteve, Ferrer, Grifols and Uriach).

Since 2016, Catalonia has consistently ranked #1 as Southern Europe’s best region for foreign investment. Source: Global Cities Investment Monitor - FDi Markets Database, 2018 and FDi Markets Magazine, 2019

International Companies

Main Foreign Investments in Catalonia (2017-2019)

Boehringer Ingelheim opened new production plant ↑ €101.7 M Zoetis expanded its production plant ↑ €45.5 M Sanofi-Aventis established a financial operations center ↑ €42.9 M Merck expanded its production plant ↑ €31.7 M Esteve Teijin Healthcare opened a new logistics center ↑ €13.3 M Intas Pharmaceuticals expanded its offices ↑ €13 M B. Braun opened a new R&D center ↑ €11.5 M

ACCIÓ based on FDI Markets

↗ Note: Partial representation of multinationals in the life sciences and healthcare ecosytem in Catalonia. BioRegion of Catalonia 2020 Report 7 ❶ Overview and Key Indicators

Drug R&D (17) ↘ Education & Training (10) ↘ Clinical Decision Support (15) ↘ Digital Therapeutics (33) ↘ Genomics (4) ↘ Digital Health R&D (15) Self-Management (13) Subsector is the Fastest Growing Interoperability (4) ↘ since 2010 Colors TheApp Active Monitoring (13) Digital health companies are seeing Clinical Tools (35) ↘ Health Services (31) ↘ rapid growth, providing the ecosystem Online Consulting (20) Technology Providers (15) Health & with a wide range of digital solutions and Welleness (16) ↘ becoming an essential stakeholder for facing the quickly changing landscape. Clinical Trials (2)

Growth in Digital Health Startups Diagnostics (14) ↘ Zenmness x2 180 Search Services (7) Treatment (7)

x4 2019 89

Patient Follow-up (8) 22 2014 Home Care Services (6) Logistics & Other (8) ↘ Marketplaces (5) ↘ 2010 Panakeia Technologies

Mapping the BioRegion Digital Health Management (7) Insurance (3) Landscape ↗

Note: This market map is not meant to be exhaustive. Companies are categorized according to their main focus area. Source: Biocat BioRegion of Catalonia 2020 Report 8 ❶ Overview and Key Indicators Bellaterra 47 49 Investors 22. Josep Carreras 39. Reig Jofré Leukaemia r: 10 Km 1. Alta Life Sciences 40. Sanofi Research Institute A Rich Ecosystem 2. Asabys Partners (IJC) 41. Siemens Innovation Center 3. Caixa Capital Risc

4. Inveready Hospitals within Walking Sant Cugat Cerdanyola Science & 5. Invivo Ventures & Research del Vallés del Vallès Technology 6. Nina Capital Institutes Distance 33 36 44 46 Parks 7. Ysios Capital 23. Bellvitge University 42. Barcelona Partners Hospital (including The Barcelona Metropolitan Area is the Biomedical IDIBELL and ICO most well-established ecosystem in L’Hospitalet) Research Park Hubs & (PRBB) Catalonia, with 98% of the life sciences 24. Germans Trias i Ecosystem 43. Barcelona Science and healthcare industry. Pujol University Supporters Hospital (including Park (PCB) 8. AQuAS IGTP) 44. Barcelona 30 Synchrotron Park Barcelona, One of the Top Life 9. Barcelona Health 25. Hospital Clínic Hub de Barcelona 45. Parc de Recerca i Sciences Hubs in Europe (including IDIBAPS) Innovació de la UPC 10. Barcelona Tech City Horta - Guinardó 26. Hospital de la (Parc UPC) 11. Biocat 53 Santa Creu i Sant 46. Parc Tecnològic del 45 31 St Joan Despí 52 Nou Barris 12. CataloniaBio & Pau (including IIB Vallès (PTV) 43 4 39 Esplugues Sarrià - HealthTech and IR Sant Pau)

50 Km 10 r: 47. UAB Research Park de Llobregat 14 15 Sant Gervasi 26 13. Mobile World 27. Hospital del Mar (PRUAB) Capital Barcelona 29 37 12 11 3 9 6 (including IMIM) r: 10 Km Les Corts Gràcia 14. WeLab 28. Institut Guttmann Universities Cornellà 19 20 7 Sant Andreu 35 29. SJD Barcelona 48. Pompeu Fabra 41 Research Children’s Hospital University (UPF) 25 Centers (SJD) 49. Universitat Hospitalet 15. Barcelona 30. Vall d’Hebron Autònoma de 2 38 de Llobregat 1 Eixample Supercomputing Barcelona Hospital Barcelona (UAB) Center (BSC-CNS) Campus (including 13 23 5 51 50. Universitat 17 VHIO, VHIR) 16. Centre for Genomic Politècnica de 8 Sant Martí Regulation (CRG) Catalunya (UPC) 34 40 Multinationals 51. University of Ciutat Vella 16 Badalona 17. EURECAT 31. Almirall Barcelona (UB) Mapping Key Players in the Greater- Sants - Montjuic 48 10 Technology Centre 21 22 Barcelona Ecosystem ↗ of Catalonia 32. Amgen 32 42 27 24 28 18. ICFO Business Investors 33. Boehringer 19. Institute for Ingelheim Schools Hubs & Ecosystem Supporters Bioengineering of 34. Esteve 52. ESADE Research Centers Catalonia (IBEC) 35. Ferrer 53. IESE Hospitals & Institutes 20. Institute for Castelldefels 36. Grifols Multinationals Research in Science & Technology Parks 18 Biomedicine (IRB 37. Nestlé Health Universities Barcelona) Science Innovation Center Business Schools 21. IrsiCaixa AIDS r: 10 Km Research Institute 38. Novartis BioRegion of Catalonia 2020 Report 9 ❶ Overview and Key Indicators Week

1 2 1 in 4 Companies is a Spinoff 3 Average Growth Rate in Number of Companies 4

A Booming Startup 5 throughout a Year (since 2010) 6 109

Spinoffs Startups Spinoffs 7

Ecosystem

8 401

One new company has been created in core

the BioRegion every week since 2010. 10 Startups

1 1

1 2

1 In 10 years (2009-2019) the Number 3

of Active Companies has Increased +50% 1 4 Investment Raised (2020 YTD)

+50% 1 by Active Spinoffs of: 5

1 University of Barcelona +1,200 6

€191.5 M / 24 Spinoffs No. of New Companies

50 40 30 20 10 ICREA

2019

776

€122.7 M / 22 1

1 new company 8

every week/year Universitat Autònoma de Barcelona

€40.4 M / 15

2009

0 Institute for Research in Biomedicine

€38.4 M / 5

Startups (< 2 years) Founded or

Hospital Clínic de Barcelona

Managed by a Woman 2

2 €21 M / 6

8 IrsiCaixa AIDS Research Institute

€17.2 M / 2

30%

Universitat Politècnica de Catalunya

of the youngest 6 5

€16.2 M / 10

startups have

6 5

a woman in their

IDIBAPS

2 4

C-Suite

€11.9 M / 8

Vall d'Hebron Institute of Oncology

1 €11.1 M / 2

0 1

3 Pompeu Fabra University

7 4 3

3 6 5 3

€9.7 M / 9 ↗ Source: Biocat BioRegion of Catalonia 2020 Report 10 ❶ Overview and Key Indicators

Accelerators and � Life Sciences ↘ Months Direct Funding Equity Training Mentoring International Features Investors Day International trainers, mentors and evaluators 5 months €100-300,000 1% + + + + + - Entrepreneurial Trips/access to other countries (through EIT Health)

Support International trainers, mentors and evaluators 6 months - - + + + + + √ Trips/access to other countries (through EIT Health) Accelerators in the BioRegion vary widely, depending on their origin (public International trainers, mentors and evaluators 6 months - - + + + + + + √ or private) and services (funding, (*) Need's validation in other countries (through EIT Health) networking, mentoring, training, etc.) but most of them help push startups forward. In 2019 we saw a boom in n/a €75-100,000 % variable + + International mentors - open innovation accelerator programs launched by pharma companies. � Digital Health ↘

9 months Up to €50,000 - +++ - International startups √ Hubs & Support Entities

Hubs Support Entities 3 months - √- + + - -

5 months - % variable + + + - International startups √

International mentors 6 months Up to €50,000 Up to 20% + + + + + √ (*) Pilot programs with global corporations

� Generalist ↘

Top 10 Healthcare Accelerators 6 months - - + + + + International startups and mentors √ in the BioRegion (out of 30) ↗ + <20 hours 4 months - √- + + + + - √ ++ <20-40 hours +++ >40 hours (*) Only for projects 02 Investment in Startups BioRegion of Catalonia 2020 Report 12 ❷ Investment in Startups

Funding Surpasses Snapshot of Startup Funding in the BioRegion (€ M) €100 million for Fifth Year in a Row Total (€ M) 21 40 35 64 104 105 109 112 120

Venture capital is the main source of funding for startups, making up more than half of all their financial support. VC/PE (€ M) 54.91 69.9246.58 62.60 54.81 80.24 9.05 28.55 30.59

Grants (€ M) 7.33 8.03 0.95 8.24 14.62 18.59 34.16 25.62 24.72 Investment Growth in the Last Years has almost Doubled Stock x2 €120 M Market (€ M) 4.30 3.62 3.40 13.58 20.68 18 24.60 20

2020

Crowdequity €64 M (€ M) 0.10 0.69 2.21 3.70 3.11 7.71 5.13

2015

2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD

↗ YTD: September 2020 Funding includes capital raised by startups in Catalonia in biopharma, medtech, digital health, R&D services VC Operations 11 14 15 23 29 21 28 23 25 sectors. It also includes some funding raised by startups working for the life sciences sector, such as suppliers and engineering companies and professional services. Source: Biocat BioRegion of Catalonia 2020 Report 13 ❷ Investment in Startups

Investment in Investment in Startups by Subsector (€ M) Biotechnology Medical Technology Digital Heath

Startups by 2016 2017 2018 2019 2020 YTD Subsector 86.4 82.6 The biggest increase in investment was seen in biotech and medtech startups (due to the needs of their business). However, TOTAL given the rate of growth in digital health TOTAL TOTAL €115.8 M firms over the past four years (x3.5 between TOTAL €111.5 M TOTAL €106.6 M 2016 and 2019) and the transformation €102.5 M €103.58 M of technology in the sector, this gap will narrow quickly.

59.6 There have been two or three operations over €10 million every year since 2015, 52.6 accounting for nearly half the investment 51.8 raised each year. Biotechnology is the sector growing the most, with record investment in 2018 driven by three big rounds of funding totaling €50 million. 40.1 39.8 37.8 Growth in Investment in Digital Health (2016-2019)

x3.5

€18.8 M ↑ €5.1 M Minoryx ↑ 2019 €21.3 M Elma ↑ ↑ 18.8 Linkcare Mediquo 18.7 €3.1 M 2016 ↑ €5 M ↑ ↑ €3 M ↑ ↑ STAT-Dx Abac Engidi Psious ↑ NEOS 14.5 ↗ Funding raised includes VC, crowdfunding, grants €20 M 12.2 €16 M €1.3 M 12.4 €8 M Ona €4 M and stock market operations. Only core sectors (biotech, ↑ €30 M medtech, digital health) are considered in this analysis. ↑ ↑ ↑ ↑ Top ↑ 7.8 ↑ ↑ ↑ ↑ ↑ ↑ ↑ Medical technology includes diagnostic instrumentation Qida (in-vitro kits). Aelix STAT-Dx 5.1 Oryzon Anaconda Doctors Oryzon Mediktor Oryzon Anaconda Elma Oryzon Deepull €11.5 M €29.1 M €18.2 M €15 M €3 M €13 M €3 M €20 M €20 M €3 M €20 M €3.5 M €3.6 M Source. Biocat BioRegion of Catalonia 2020 Report 14 ❷ Investment in Startups

2015 2016 2017 2018 2019 2020 YTD

Success Stories €15-30 M and Funds Raised

Exits and M&A Activity 2015-2019

Target Comprador €5-15 M

2020 (BE) >

2019 (JP) >

(JP) €3-5 M >

2018 (EUA) >

(DE) > €1-3 M (ES) >

(CH) >

(NL) >

(IT) >

2016 (PL) >

(CA) >

Funding Raised by Startups ↗

Funding operations includes VC, crowdfunding and grants. M&A and stock market operations are excluded. Source: Biocat BioRegion of Catalonia 2020 Report 15 ❷ Investment in Startups

International Evolution of VC Investment Total VC Investment Investment with International Partners/VC €80.2 M

Investment is Gradually Growing €69.92 M

Joint operations by Catalonia-based and international investors yield the largest €62.60 M rounds of funding year after year. TOTAL €54.91 M €54.81 M The total investment with international VC Investment participation over the past five years €50.8 M €46.58 M (2015-2019) exceeds €165 million, with a yearly average of more than half (56.2%) of all venture capital investment. €44.70 M €42.30 M

€30.40 M €26.93 M Average Investment with International €20.95 M Investment with VC (2015-2019) International Partners/VC

56.2%

49 % 63.9% 45 % 67.6 % 55.5 % 63.3 %

↗ Source: Biocat 2015 2016 2017 2018 2019 2020 YTD BioRegion of Catalonia 2020 Report 16 ❷ Investment in Startups

International Top 10 International Investors in the BioRegion Investors Increase €700 M 10x Over Past Years funds available for co-investment in the BioRegion The BioRegion has a diverse pool of Europe specialized investors who coinvest with international VCs in the largest rounds. BioRegion-based Specialized Investors In average, the 3 biggest international United rounds make up over half of all VC States investment each year. ❶ Kurma Partners (FR) €90.3 M

❷ Idinvest Partners (FR) Number of Foreign Investors in ❺ Chiesi Ventures the BioRegion's Life Sciences and €40.7 M €86.8 M Healthcare Startups ❻ Omega Funds ❸ Fund+ (BE) €35 M €51.3 M ❹ Boehringer Ingelheim (GE) 6 63 €46.1 M ❼ Roche Venture Fund (CH) Before 2014 After 2014 Biotechnology €40.7 M Digital Health All (Medical Technology, Biotech and Digital Health) ❽ Innogest Capital (IT) €35 M Number of International Investors ❾ Siemens Venture Capital (GE) Europe 35 €29.1 M United States 21 Asia 4 ❶⓿ Glide Healthcare (NL) Other 3 €29.1 M

SVT15473 | Salvat BN201 | Accure Therapeutics Ophtalmology

Mucomel | Ferrer BS01 | Retinset Diabetes & Inﬂammation

Alphanate | Grifols Ox-01 | FreeOx Biotech Thrombate | Grifols TT-173 | Thrombotargets Europe Cardiovascular & Blood Biotech and Pharma Companies’ MIN-102 | Minoryx Therapeutics Clinical Pipeline ↗ EGT-101 | Esteve Orphan & Rare Pharma Diseases Biotech Source: Biocat BioRegion of Catalonia 2020 Report 19 ❸ Assets in Science and Technology

One of the Leading EU-funded Life Sciences and Healthcare R&D Projects (2014-2019)

Science Hubs SWEDEN H2020 funding in Europe €773 M ERC grants Catalan institutions and companies are very 182 competitive in attracting EU funds supporting the ERC funding best research and innovation in Europe. €304 M

The European Research Council (ERC) awards Europe’s most prestigious and well-funded research DENMARK FINLAND grants. H2020 funding H2020 funding €485 M €298 M Life Sciences researchers in Catalonia have been ERC grants ERC grants awarded over 100 ERC grants, more than almost any 93 76 country in Europe, including Finland and Denmark, ERC funding ERC funding and nearly on par with Austria. €155 M €119 M

IRELAND BELGIUM H2020 funding H2020 funding €289 M €485 M ERC grants ERC grants 46 93 ERC funding ERC funding €62 M €155 M

CATALONIA AUSTRIA H2020 funding H2020 funding €416 M €440M ERC grants ERC grants 113 127 ERC funding ERC funding €158 M €205 M

↗ Source: CORDIS, UNiCS (SIRIS Academic), Biocat [Population] BEL=11.6M SWE=10M AUT= 9M CAT=7.5M DNK=5.8M FIN=5.5M IRL=4.9M BioRegion of Catalonia 2020 Report 20 ❸ Assets in Science and Technology

Catalonia Produces Life Sciences and Healthcare Scientiﬁc Publications (2014-2019)

Large Volume of High SWEDEN No. of pubs. Quality Life Sciences and 108,947 % in top journals Healthcare Research 42.60

Catalonia also outperforms in number of publications in the biomedical arena. Scientific production has nearly quadrupled over the past 20 years, and one out of six (16.5%) biomedical publications signed by DENMARK FINLAND researchers in the BioRegion are among the most No. of pubs. No. of pubs. cited papers in the world. 78,490 45,576 % in top journals % in top journals Catalonia has a higher percentage of publications 45.73 40.62 in top journals than countries like Ireland, Finland and Austria.

IRELAND BELGIUM No. of pubs. No. of pubs. 36,320 90,087 % in top journals % in top journals 40.78 42.97

CATALONIA AUSTRIA No. of pubs. No. of pubs. 63,481 62,499 % in top journals % in top journals 40.91 40.34

↗ Source: Scopus (Elsevier), SCIMAGO, SIRIS Academic [Population] BEL=11.6M SWE=10M AUT= 9M CAT=7.5M DNK=5.8M FIN=5.5M IRL=4.9M BioRegion of Catalonia 2020 Report 21 ❸ Assets in Science and Technology

Life Sciences and Families of Other European Countries (EP+US+WO, 2015-2019) Top Patent Applicants in the BioRegion Universities / Healthcare Patents Companies Research centers (EP + US + WO, 2015-2019)* Esteve UPC Almirall UAB Catalonia accounts for over 40% of Spanish Interquim VHIR innovation capacity in the life sciences. Oryzon IDIBELL Minoryx Hospital Clínic However, European countries like Denmark, Sweden and Belgium have four times Sweden Denmark Breakdown of Applicants by Category more EP, US, WO patent families than the 1,700 1,798 BioRegion of Catalonia. Patents 38 % Patents Universities 62 % In collaboration with: & Research Companies Centers

1 in 3 Applicants is a Public Research Organization

The BioRegion has 3x more Patent Spain Families (EP+US+WO) (2015-2018) Finland 888 505 Patents Patent Applications with the European x3 Patents Patent Office Continue to Grow as a 81 patent First Option applications Catalonia Belgium Catalan companies and research entities’ 379 1,639 first registries have a clearly international 2018 Patents focus. Between 2015 and 2019, 57% of 27 Patents patent innovations by BioRegion-based applicants applications Ireland were first registered with the European 1,065 Patent Office (EPO). 2015 Patents Austria 720 EPO 217 ↗ Note: This analysis shows protected inventions through Patents European, American and international patent documents OEPM 84 (EP+US+WO), with first application date from 2015, where at least one applicant is located in Catalonia in the life USA 48 sciences and healthcare sector. Source: Patbase, Clarivate, Invenes, IP PONS WIPO 10 BioRegion of Catalonia 2020 Report 22 ❸ Assets in Science and Technology

A Prime TOP EUROPE Number of Active Clinical Trials (2019) Destination for Clinical Trials 1 France 2,111

Top Pharma Companies Conducting 2 Spain 776 (CAT) 1,697 Clinical Trials in Catalonia (multinationals ranked by number of trials)

3 Germany 1,547

TOP 15 WORLDWIDE Number of Active Clinical Trials (2019) 4 Italy 1,146 1. United States 10,690 2. France 2,111 3. Canada 1,706 5 Netherlands 865 4. Spain (*) 1,697 5. China 1,581 6. Germany 1,547 7. United Kingdom 1,314 6 Belgium 818 8. Italy 1,146 9. Korea, Republic of 865 10. Netherlands 865 7 Catalonia 776 11. Belgium 818 12. Australia 790 13. Catalonia 776 14. Switzerland 615 8 Denmark 575 15. Denmark 575

(*) Spain including Catalonia Source: Clinicaltrials.gov, SIRIS Academic 9 Sweden 557

10 Poland 532 ↗ Source: Clinicaltrials.gov, SIRIS Academic Source: UNEIX 04 Challenges Ahead BioRegion of Catalonia 2020 Report 24 ❹ Challenges Ahead

How Can We Maximize Regional Innovation Performance Regional Performance Groups the Potential of Catalan Modest - Strong - Modest Strong Modest + Strong + Innovation? Moderate - Leader - Despite performing well on the innovation indicators Moderate Leader Moderate + Leader + showcased previously, Catalonia is losing positions on the EU Regional Innovation Scoreboard.

The life sciences and healthcare sector is one of the key drivers of innovation and it could effectively help reverse this trend. However, some important challenges must be addressed first.

↗ Source: European Commission - Regional Innovation Scoreboard 2019 BioRegion of Catalonia 2020 Report 25 ❹ Challenges Ahead

ARENA ❶ ❷ ❸ ❹ ❺ Technology Transfer

Challenge 1 ↘ Challenge 2 ↘ Challenge 3 ↘ 2025 vision ↘ To have a strong, structured To build a pipeline of competitive To consolidate structured • By 2025, we need to have maximized the technology-transfer system that projects, with proof of concept resources number of projects prepared to be competitive is focused on the market and and incentives and attractive to international companies and • Have immediate funding mechanisms to valorize investors. unmet needs projects. • Establish a policy for financial and career • By 2025, there must be a robust, competitive • Foster coordinated structures, with incentivization and/or intensification academic innovation ecosystem, with good • Identify priority areas of innovation to promote multidisciplinary research, that share resources, for researchers, doctors and healthcare mechanisms for transfer to the private sector. projects on an international level. Analyze the structures and knowledge. professionals, as well as for innovation managers. Catalan healthcare system’s real needs and • By 2025, technology-transfer professionals must challenges. • Lay out a professional development and be consolidated, motivated and professional. recognition plan. Heighten social prestige and • Encourage technology transfer (TT) through training for innovators. matchmaking activities to promote relations among the stakeholders in the healthcare • Promote knowledge of the international market ecosystem (researchers, pharma and biotech and training on how to negotiate a deal. companies, investors, etc.) and boost interactions/ deals between technology and research projects from research institutions/hospitals and investors (national and international), and with potential licensees to transfer technology and knowledge. • Establish a technology-transfer framework that is in line with international parameters. •

BioRegion of Catalonia 2020 Report 26 ❹ Challenges Ahead

ARENA ❶ ❷ ❸ ❹ ❺ Talent Development and Acceleration

Challenge 1 ↘ Challenge 2 ↘ Challenge 3 ↘ 2025 vision↘ To meet demand for capacities To consolidate the Catalan To boost the critical mass of • By 2025, the ecosystem must have the talent to in light of the changes in the life healthcare innovation system’s executive talent to scale up the meet the sector's needs how it is changing. sciences and healthcare system competitiveness in attracting life sciences and healthcare • By 2025, Catalonia must have a significant pool and retaining talent ecosystem of professionals with high potential and a proven • Identify gaps between supply and demand for track record in entrepreneurship. skills (market, technology, regulatory issues, etc.), • Identify possible barriers to competitiveness in • Entrepreneurship programs focused on various • By 2025, the life sciences and healthcare explore training available on a local and European attracting innovative and executive talent. levels and subsectors. ecosystem must have scaled up in size, with local level and validate how present and future needs and international executive talent. are being addressed (upskilling and reskilling as • Anticipate the sector’s needs with competitive • Promoting female leadership on an executive strategies to ensure the capacities of the pipeline programs like "ICREA innovators". level. • By 2025, there must be an optimal level of of future talent). • Anticipate macroeconomic factors and external • Maximizing interaction between industry and interaction between industry and technology • Bridge the gap between needs and talent- dynamics, particularly for preparing the system to technology suppliers; training multidisciplinary providers, with training for multidisciplinary teams acceleration programs based on unmet needs. face large-scale challenges. teams. that contribute a transversal view. • Help make talent one of the main driving forces • Incentives for hiring C-Suite talent. for transforming the healthcare system. BioRegion of Catalonia 2020 Report 27 ❹ Challenges Ahead

ARENA ❶ ❷ ❸ ❹ ❺ Mobilizing Capital and Attracting Investment

Challenge 1 ↘ Challenge 2 ↘ Challenge 3 ↘ 2025 vision ↘ To reach an optimal project To provide a financial ecosystem To achieve public-private financial • By 2025, the dealflow of investment-ready dealflow, in quantity and quality, and instruments for industrial instruments to foster company projects must have reached optimal levels, in in order to attract private Catalan investment, and tools to growth quantity and quality, in line with the country’s and international capital incorporate research innovations great potential. All investment-ready projects • Promote public-private investment funds geared must have been able to fund their prototype or into companies towards growing high-tech companies, mainly for proof of concept. • Develop a public-private investment instrument industrial scale-up and internationalization. • By 2025, the healthcare innovation sector must for proof of concept and prototyping of advanced • Promote investment, with participation from the be attractive to professional capital, both local technology (deeptech) that improves the quantity Government of Catalonia, that aims to fund early- and international, and in all arenas (biomedicine, and quality of investment-ready dealflow, stage projects in the industrial arena and Industry digital health, advanced therapies, diagnostics maximizing the potential of the whole country. 4.0, mainly in biomedicine and healthcare as a and medical devices). • Gear this instrument towards leveraging private sector that acts as a driving force and has great • By 2025, innovation must be incorporated from capital and make this its main goal. potential for growth. the academic setting into companies through • Ensure suitable financial return on public • Promote agile public-private financial instruments flexible mechanisms and with the right support. investment in proofs of concept. to facilitate the incorporation of innovation from • Promote tax instruments and eliminate fiscal research centers and universities into companies. • By 2025, an industrial innovation ecosystem in barriers that facilitate and reward the financial For example, hybrid mechanisms with subsidies healthcare must have been developed that is role and support of patrons, business angels and for the center and loans for companies in as powerful as the biotechnology and digital professional investors in the very early stages of collaborative projects. ecosystems. the most innovative projects. • By 2025, public-private financial instruments • Focus investment policies on proving financial, must have been achieved to accompany the economic, social and health returns. growth and globalization of high-tech companies. BioRegion of Catalonia 2020 Report 28 ❹ Challenges Ahead

ARENA ❶ ❷ ❸ ❹ ❺ Adopting Technology in the Public Health System

Challenge 1 ↘ Challenge 2 ↘ Challenge 3 ↘ 2025 vision ↘ To lay out structured paths for To encourage transformation of To increase impact of public • By 2025, the public health system must be able to innovation (biotech, medtech, public system through innovation innovation assets (clinical data, adopt valuable innovation by order of priority, in a digital, organizational/processes) medical imaging, advanced transparent, fast and agile manner. • Foster the co-developer role of the public system • By 2025, the public health system must be top to access the public market (an asset for valorization) in innovation (e.g. therapies, etc.) quality and financially sustainable, thanks in part clinical development or validation bench). to the return of the impact of innovation. • Activate ecosystem assets and resources • Deploy strategies and instruments to encourage • Connect and activate cross-system network- (institutions, funds, talent, tools) and the public procurement of innovation and innovation based initiatives around strategic public assets, • By 2025, the public health system must be able capacities involved in the adoption of innovation. in public procurement (e.g. value-based geared towards co-developing innovation at all to embrace transformation drivers based on • Draw the assets’ journey and identify the impact- purchasing, results-based purchasing, risk phases. innovation development and adoption. generating agents involved in the innovation sharing) in the public administration. • Develop system-wide strategies addressed to adoption roadmap. • Overcome barriers (regulatory, data increase the return of the benefits of public • Set criteria to regulate access of innovation to the interoperability, clinical validation) to the innovation assets to the healthcare system. public market. Deploy tools to assess, valorize transformative adoption of technologies and • Promote locally and globally the public innovation and prioritize innovation systematically and innovation by the system. assets’ value to unleash innovation and transparently, overcoming resistances to “de- sustainable healthcare management. innovation”. BioRegion of Catalonia 2020 Report 29 ❹ Challenges Ahead

ARENA ❶ ❷ ❸ ❹ ❺ Business Consolidation

Challenge 1 ↘ Challenge 2 ↘ Challenge 3 ↘ 2025 vision ↘ To establish long-term corporate To improve the scalability To encourage the ability of • By 2025, the business ecosystem must have strategies and policies of companies and decrease consolidated companies to act consolidated public policies and infrastructures fragmentation as a driving force on a local level that fit the sector’s specific needs and foster • Under the framework of the National Agreement the creation, development and consolidation of for a Knowledge Society (PN@SC), to have stable • Detect the resources needed at each phase of • Incentivize open-innovation programs at business initiatives in a more agile, structured programs that facilitate long-term planning project development to prioritize consolidation consolidated companies. way. throughout the sector’s value chain, recognizing (facilities, internal development of core • By 2025, the BioRegion industry must be diverse, and adapting to its specific needs (technological • Accompany and provide tax incentives for technology, pilot plants, GMP production plants, mature and stable, with a balanced distribution of risk, highly regulated sector, long time-to-market, investment and co-development between large etc.). different-sized companies at various stages of the closed prices, global market). and small companies. • Promote the “digitalization of healthcare” to development cycle. • Value and measure companies’ success in effectively integrate new digital technology building a business environment, knowledge, • By 2025, there must be a constant, efficient in businesses and the ecosystem, while also stable, qualified jobs and ability to bring dealflow within the companies of the ecosystem maximizing development of therapies, medical innovative products to market. that allows the development of projects from technology, diagnostic methods and services bench to market. Thus, companies must have the supported by scalable, compatible technology right infrastructure, in order to feed the growth facilities. of robust portfolios of innovations “made in • Encourage alliances within the industry and with Catalonia”. key players in the sector (technology centers, hospitals, regulatory bodies) to advance larger projects with a greater impact. BioRegion of Catalonia 2020 Report 30 Methodology

Methodology

• The BioRegion of Catalonia is the life sciences and healthcare entrepreneurship and focused on research, services or products that ecosystem in Catalonia. The Report is published since 2009, and this address complex issues. This second group is where we find most of current edition is a joint effort of Biocat together with CataloniaBio the companies we refer to as deeptech or deepscience firms, working & HealthTech. The analysis are based on information from the Biocat in areas like artificial intelligence, robotics, computer vision, AR/VR, Directory, which covers more than 1,200 companies and organizations genomics, immunotherapy, synthetic biology, bioinformatics, 3D and operating in Catalonia in the life sciences and healthcare sector. bio printing, etc., which are also classified as startups in the Report. This platform is managed in collaboration with Venture Valuation, • To study investment in startups, Biocat follows emerging or innovative the owners of BiotechGate, one of the most complete international companies in the core subsectors established in the BioRegion databases of the industry. It is available at catalanlifesciences.com. directly. Data on public and private capital, through formal investment This data is then cross-referenced with the Biocat CRM, which has vehicles or instruments, is compiled internally. The data usually nearly 10,000 active organizations and over 30,000 contacts. comes from the company itself and/or public sources (press releases • The companies’ core subsectors that were analyzed in depth are: or news articles, investors, VC reports, etc.). Other qualitative biotechnology, pharmaceuticals, medical technology (medtech) and indicators on investment in the sector are available in the study digital health. The definitions of the sectors and subsectors used Biocat and CataloniaBio & HealthTech published in June 2020 in in this report are available at catalanlifesciences.com/cat/portal/ collaboration with independent consultancy EY. definitions.php • To monitor the clinical pipeline of biotechnology and pharmaceutical • For the data on the companies’ revenue and employment, the source companies, the website clinicaltrials.gov was used, along with used was the SABI database (Iberian Balance Sheet Analysis System), information provided by the companies themselves. which gets its information from the business registry. Companies that • For some analyses of the BioRegion’s R&D capacities, EU countries operate in the area but don’t have their official business address in have been selected for comparison that are similar in GDP and Catalonia are not counted. The method for calculating the sector’s population (Finland, Denmark, Sweden, Australia, Ireland and weight in terms of the GDP (gross domestic product) is available on Belgium). page 45 of the 2017 Biocat Report. • The information and analysis on Catalonia’s publications, public • The data was compiled through December 2019, except where noted funding through European competitive funds and positioning in terms on the graphs. The chapter on investment in startups, however, has of clinical trials was done by SIRIS Academic. The sources used are been updated through September 7, 2020 to ensure this data is as up cited in each case. For the bibliometrics, the areas belonging to the to date as possible (references 2020 YTD). field of biomedicine were manually selected on SCOPUS and the • The definition of a startup used in this Report requires a special percentage of publications in biomedical research published in the note. On one hand, it is used in its most common sense, to denote top 10% of journals with the greatest scientific impact is according to companies established within the past 10 years. On the other, it is the SCIMAGO ranking. used in a broader sense, taking into account aspects associated • The analysis of patents in the sector is a collaboration with IP Pons to with the activity and characteristics of the companies, whether study EP, US and WO patent families between 2015 and 2019. they are innovative and/or technologically disruptive, based on BioRegion of Catalonia 2020 Report 31

BioRegion of Catalonia 2020 Report report.biocat.cat #BioRegionReport [email protected]

Barcelona, September 2020

CataloniaBio & HealthTech is the Biocat is the institution that brings association of more than 160 companies together the Life Sciences and and pioneer agents in research, Biocat Healthcare community in Catalonia. development and innovation in the life Set up in 2006 at the behest of the sciences industry in Catalonia. Its mission Government of Catalonia, Biocat’s is to help companies generate new solutions The contents of this document are subject to a Creative Commons mission is to maximize the economic that improve people’s health, as well as licence. Unless otherwise indicated, reproduction, distribution and and social impact of life sciences and positioning Catalonia as one of the top public communication are allowed, provided the author is quoted, no commercial use is made thereof and no derivative work is healthcare innovation of the BioRegion. health hubs in the world. distributed. Please refer to a summary of the licence terms on: More information at www.biocat.cat More information at www.cataloniabioht.org www.creativecommons.org/licenses/by-nc-nd/4.0/