Build Effective Vaccine R&D Capabilities with Chinese Characteristics 建立有中国特色的疫苗研发体系 Sean Du, Ph.D., Executive Director, Vaccine Research 报告人：杜笑寒 博士，疫苗研究部执行总监 Shanghai, China,

Global Vaccine Market 世界疫苗市场概况 The worldwide market for vaccines has more than doubled from 2005 to 2008, having grown at a compound annual rate of 32%. From year 2008 to 2009, vaccine sales was up a another 16% and hit $22.1 billion in 世界疫苗市场从 2005 年到 2008 年，翻了一番，年增长 32 ％。从 2008 到 2009 ，又 增加了 16 ％，达到 2009 年的 221 亿美金。 Five vaccines with over $1B in annual sales. 五个疫苗年销售额达到 $10 亿美金 –Wyeth Prevnar (pneumococcus) 惠氏公司脑炎疫苗用以预防侵袭性肺炎球菌疾病 –Merck Gardasil (HPV) 默克公司子宫颈癌疫苗用以预防人类乳头状瘤病毒 –Merck Zostavax (shingles) 默克公司水痘疫苗用以预防带状疱疹 –Merck RotaTeq (rotavirus) 默克公司轮状病毒疫苗 –GSK RotaRix (rotavirus) 葛兰素史克公司轮状病毒疫苗 Vaccine sales will continue to rise annually at a rate of 9.7% for the next five years, which could push annual sales as high as $35 billion by 全球疫苗的销售在近五年会继续以 9.7 ％增长，并于 2015 年达到 $350 亿美金. 2

Global Vaccine Leaders 世界疫苗的竞争格局 The top 5 players accounting for around 80% of the total market 全球前五大疫苗企业占了全球疫苗市场的 80% 2005, 3 out of the world top 10 pharmas involved in vaccine business 2010, 9 out of the world top10 pharmas involved in vaccine business 2005 年，世界十大制药企业只有三家有疫苗；目前十家里九家有疫苗产业 2005 百特 澳洲英联邦血液实验室 凯龙 惠氏 Sanofi Pasteur ( , $546M) 赛诺菲－巴斯德 Novartis 诺华 (2006, $5.5B) AstraZeneca 阿斯利康 ( , $15.6B) 博尔纳 Crucell 科伯纳 ( , $450M) Pfizer 辉瑞 ( , $68B) Johnson & Johnson 强生 ( , EU302M=18%stock) 苏威 Abbott 雅培 ( , EU4.5B) Merck 默沙东 ( Flu vaccine) 默沙东 葛兰素－史克 赛诺菲－巴斯德

Major Vaccines in Development 全球现处临床开发阶段的主要疫苗 4 Infectious Diseases 传染病 Manufacturer 生产厂家 Vaccine 疫苗名称 Development 临床开发阶段 Notes 备注 Traveler's diarrhea 旅行者腹泻 IntercellN/APhase II Tuberculosis 结核菌 GSKN/APhase II IntercellN/APhase IWith Sanofi-Aventis RSV 呼吸道合胞病毒 MedImmuneMotavizumabPhase III HIV/AIDS 艾滋病病毒 NovavaxN/APreclinical Sanofi-AventisN/APhase III HSV-2 2 型单纯疱疹病毒 GSKSimplirixPhase IIIFormally Herpevac Dengue fever 登革热病毒 GSKN/APhase II West Nile virus 西尼罗河脑炎病毒 Sanofi-AventisChimeriVax-WN02Phase II Malaria 疟疾 GSKRTS, SPhase III GSKMosquirixPhase II EBV 艾普斯登 - 巴尔病毒 GSKN/APhase IIFrom MedImmune Typhoid 伤寒菌 NorvatisN/APreclinicalWith Wellcome Trust CMV 细胞巨大型病毒 GSKN/APhase I Staph. aureus 金黄色葡萄球菌 MerckV710Phase II With Intercell “Nice Shot - Why vaccines are pharma’s Next Big Thing. ” By Megan Scudellari, The Scientist :32

Domestic Vaccine Market 中国疫苗市场 World’s largest population; 17 million newborn babies each year. 世界 1/4 人口；每年的一千五到七百万新生儿。 The largest vaccine manufacturer by dose; the fourth largest vaccine market. 世界上最大的疫苗生产国；世界第四大疫苗市场. Over 30 manufacturers producing ~40 vaccines against over 20 diseases 共有疫苗生产企业 30 多家，可以生产预防 20 多种传染病的 40 多种疫苗 The growth rate for the past has been ~15%, exceeding 5 billion RMB on 中国的疫苗市场过去几年的增速大约是 15%,2009 年超过 RMB ￥ 50 亿元， The best selling vaccines (by sales) are Rabies and Influenza vaccines. 以狂犬病疫苗和流感疫苗销售最高。 The growth rate for next few years over 20%, reaching 8 billion RMB by 未来几年的增速有望达到 25% ；到 2012 年，市场的容量将达到 RMB ￥ 80 亿元。 Only 1/25th of the world vaccine market. 占全球疫苗市场的 分之一 5

Room for Growth: Vaccine Supply vs. Demand 成长空间：中国疫苗产能 For many vaccines, current domestic production capabilities can’t meet demand. Most production processes need a major upgrade. 中国许多疫苗品种的产能严重不足，生产技术急需提升 6

Room for Growth: Process Improvement Needed 成长空间：国内疫苗需要提升的生产工艺 7 Areas need future improvement 生产工艺需要提升的疫苗领域 Large scale production technologies for mammalian cells and several viral vaccines 病毒型疫苗及其宿主细胞的大规模培养技术，包括 流感裂解疫苗，轮状病毒疫苗和水痘疫苗 Effective yeast expression platform and HPV vaccine 酵母高效表达平台，及酵母表达的 HPV 疫苗 Effective insect expression platform and HPV vaccine 昆虫细胞高效表达平台，及昆虫细胞 HPV 疫苗 Recombinant vaccine development 各种新型基因工程构建的亚单位疫苗 Large scale production and process upgrade for several vaccines newly added to the National Immunization Plan 扩大免疫计划疫苗的规模化生产和升级换代，包括 脊髓灰质炎疫苗；无细胞百白破疫苗；麻腮风三联 减毒活疫苗；甲肝疫苗 Scale-up production and QC techniques for Pneumococcal 23-valent polysaccharide vaccine 23 价肺炎疫苗的规模化生产和质控关键技术 Highly efficient expression and purification of carrier proteins for conjugate vaccines 结合疫苗载体蛋白的高效表达技术和分离纯化技术 Conjugate vaccine technologies, including activation of polysaccharide, conjugation, purification, QC, and evaluation of conjugation efficiency, etc. 细菌多糖－蛋白结合疫苗技术，包括多糖活化，结 合条件和纯化条件的优化；质量分析标准的研究； 疫苗结合效果的评估。涉及疫苗包括肺炎，流脑， Hib ，伤寒，副伤寒，痢疾，及大肠杆菌疫苗

Pros and Cons of Chinese R&D Environment 中国疫苗研发环境的优缺点比较 8 Pros 优点 Affordable HR cost (~1/7 of USA HR cost) 容易负担的人力资源 Strong government supports on land and infrastructure 强大的政府支持力度 High quality hardware (GMP plant, instrument) 高质量的硬件系统 Good working ethics 优良的职业道德 Strong wills to learn new technologies 强烈的求知欲望 Vaccine R&D budget can be relatively high (10-20%) 疫苗研发投入比例相对较高

Pros and Cons of Chinese R&D Environment 中国疫苗研发环境的优缺点比较 9 Cons 缺点 Expensive instruments (150% of listed prices) 偏贵的进口设备 Long waiting period for any imported goods (2-3 months) 对进口物品漫长的等待时间 Frugal attitude towards consumables can be costly 对消耗品的节约可能适得其反 Softwares (SOP, training, compliance) need improvement 软件部分需要改进 Not often with R&D mind-sets, lack of innovative thinking 无研发和创新思维习惯 Leadership & VC are mostly looking for short-term return 领导和 VC 多数只重短期效益 Can’t often take “it’s not working” for an R&D result 通常难接受研发不利的结果 Non-R&D functions can negatively impact R&D outcome 非研发部门可以影响研发全局 IT security management close to non-existing 信息安全意识和管理几乎为零

10 R&D Strategy of A Typical Vaccine Manufacturer 国内私营疫苗企业的研发策略 Most products have been developed through collaborations or tech transfer 新产品开发主要采用联合开发或转让的方式 Basic research activities are often carried out by academic collaborators 基础研究由科研机构完成 R&D team takes over each project at pilot stage, often with established process 研发团队在中试阶段进入 R&D ＝ Tech Transfer and Process Adaptation R&D ＝ Tech Transfer and Process Adaptation This way, the R&D team can focus its limited resources mostly on industrialization 研发团队集中有限力量进行产业化研究

Success Example ： Recombinant HEV Vaccine 成功范例：基因工程戊肝疫苗 11 Seroprevalence data suggest that a third of the world's population has been infected with the hepatitis E virus. Currently there is no HEV vaccine. 血清学数据表面全球有三分之一人口曾感染过戊型肝炎病毒。国内外尚无疫苗。 Through a long term collaboration among Dr. Ning-Shao Xia at National Institute of Diagnostics and Vaccine Development in Infectious Diseases, Beijing Wantai Biological Pharmacy, and Xiamen Innovax Biotech, a major breakthrough has been made in HEV vaccine development. The vaccine, HEV 239, has just passed a Phase III efficacy trial with participants, and is on SFDA’s fast approval track. The results were published in Lancet 由厦门大学国家传染病诊断试剂与疫苗工程技术研究中心夏宁邵博士、北京养生 堂万泰生物药业股份有限公司、厦门万泰沧海生物技术有限公司等单位联合研制 的戊型肝炎疫苗取得重大突破，由 人参加的三期临床研究证实戊肝疫苗安全 有效，等待药监部门批准后即可迅速上市。相关研究成果近日在《柳叶刀》发表。 Four international patents on the vaccine have been granted. 迄今已取得 4 项国内外授权发明专利，是我国少见的高度原创性生物药物之一。 Zhu, F-C, et al Efficacy and safety of a recombinant hepatitis E vaccine in healthy adults: a large-scale, randomised, double-blind placebo-controlled, phase 3 trial. The Lancet, 376 (9744): ,

401(K) Management vs. China Vaccine R&D Strategy 类比退休基金管理和中国疫苗研发策略 12

13 Innovation Drives Growth 创新刺激增长 Simcere R&D Strategy: Increasing focus on innovation 先声研发策略：逐渐增加对创新的药和候选物的重视 Simcere R&D Strategy: Increasing focus on innovation 先声研发策略：逐渐增加对创新的药和候选物的重视

14 Simcere Snapshot 先声药业集团简介 A NYSE company, with highest standard of corporate compliance and transparency About 3000 sales reps and 1,500 distributors, covering over 3,000 hospitals and 70,000 retail pharmacies 8 GMP facilities supporting small molecule and biologics manufacturing China-leading R&D capabilities 中国领先的研发能力 14

A Leader in China’s Pharmaceutical Industry 中国医药业的领袖 CAGR=33 % Ranking ( 排行 ): #21 in Net Profit in China healthcare industry* 中国医疗业总利润 排名第 21 名 #7 among the Top 20 most competitive public listed healthcare companies in China 中国最具竞争力的 前 20 家医疗业上市 企业中排第 7 名 Ranking ( 排行 ): #21 in Net Profit in China healthcare industry* 中国医疗业总利润 排名第 21 名 #7 among the Top 20 most competitive public listed healthcare companies in China 中国最具竞争力的 前 20 家医疗业上市 企业中排第 7 名 * 2009 Chinese Medical Statistical Yearbook by Ministry of Industry and Information Technology of PRC Revenue (M, RMB) 15

Differentiated Products with Market Leadership in Oncology and CNS 差别性产品和聚焦医疗领域 16 Therapeutic Area Brand Name Product Oncology Endu Proprietary recombinant human endostatin injection, NSCLC Jiebaishu Nedaplatin injection Sinofuan 5FU sustained release implant Neuroscience Bicun/Yidasheng Edaravone injection, ischemic stroke Cardiovascular Xinta Levamlodipine besylate tablets, hypertension Shufutan Generic rotuvasatin tablets, hyperlipidemia Infectious Disease Anxin Biapenem injection, bacterial infection Zanamivir Zanamivir inhalation powder, influenza Inflammation Yingtaiqing Diclofenac sodium delayed release capsules, arthritis pain Qiangke Etanercept, Ankylosing Spondylitis

17 Simcere Biologics Capabilities 先声生物制品 Biopharmaceuticals 100%Simcere R&D Center35%52.5% Shanghai Celgen Bio-Pharmaceutical Co. Ltd. 上海赛金生物制药 Jiangsu Yanshen Biological Technology Stock Co. Ltd. 江苏延申生物 Humanized Rabbit MAbs Co-development with Epitomics on humanized RabMab® antibody therapeutics for multiple tumors Vaccine Research Etanercept Drug to treat auto-immune diseases. Completed clinical trials and awaiting SFDA approval Vaccines Manufacturer of Influenza vaccine (to be marketed on 2011) R&D pipeline with Hep A and Rabies vaccine candidates, etc Institute of Biologics Research 生物制品所 Department of Vaccine Research 疫苗研究部 Shandong Simcere Medgenn Bio- Pharmaceutical Co. Ltd. 山东先声麦得津生物制药 Endu (Endostatin) Innovative anti-cancer drug with sales of RMB124m in 2009 Platforms 平台 MAbs 单克隆抗体 Mammalian cells 哺乳细胞表达 Pilot under construction 中试在建 New-type vaccine research planned 新型疫苗研究在计划中 Platforms 平台 MAbs 单克隆抗体 Mammalian cells 哺乳细胞表达 Pilot & GMP 中试和 GMP 生产 Platforms 平台 Egg-based split vaccine Cell-based inactivated vaccine － 鸡胚裂解疫苗和细胞灭活疫苗 Pilot & GMP 中试和 GMP 生产 Platforms 平台 Recombinant protein 重组蛋白 E. coli Expression 大肠杆菌表达 Yeast Expression 酵母表达 Pilot & GMP 中试和 GMP 生产

18 New Vaccine Facilities and Products 新厂址和产品 Build on a 19.5 acres land. 占地 130 亩. R&D pilot plant has been used to develop Rabies vaccine based on a bioreactor technology. 目前研发中试车间已经用于生物反应器狂犬疫苗的开发 Hep A and Flu vaccine facilities, Fill & Finish, as well as new QC lab, will be completed this year 甲肝、流感、分包装车间和新的 QC 实验室于今年完工

Simcere Vaccine Strategy 先声疫苗战略 Enter Chinese vaccine market through acquisition of Jiangsu Yanshen 通过兼并疫苗企业进入中国疫苗市场 Ensure progress of the current product pipelines in Jiangsu Yanshen 确保目前江苏延申生物的产品线的进程 Establish Vaccine Research Department in Simcere R&D Center, with both upstream discovery and downstream development capabilities, as well as a rich pipeline balancing short-, mid-, and long-term goals 在先声研发中心成立先声疫苗研究部，建立上游发现和下游攻关相结合的、短中 长相匹配的、管线丰富的研发体系 Seek technology transfer and in-license opportunities for established vaccine processes and products to enrich Simcere current product portfolio 寻找机会，对成熟的工艺和产品进行技术转让或项目引进以丰富先声疫苗产品 Seek collaboration opportunities for clinical- and/or pre-clinical stage vaccine candidates both internationally and domestically 寻求对处于临床和临产前阶段的疫苗候选物的合作机会，放眼国际也关注国内 19

Simcere Vaccine Strategy 先声疫苗战略 Enter Chinese vaccine market through acquisition of Jiangsu Yanshen 通过兼并疫苗企业进入中国疫苗市场 Ensure progress of the current product pipelines in Jiangsu Yanshen 确保目前江苏延申生物的产品线的进程 Establish Vaccine Research Department in Simcere R&D Center, with both upstream discovery and downstream development capabilities, as well as a rich pipeline balancing short-, mid-, and long-term goals 在先声研发中心成立先声疫苗研究部，建立上游发现和下游攻关相结合的、短中 长相匹配的、管线丰富的研发体系 Seek technology transfer and in-license opportunities for established vaccine processes and products to enrich Simcere current product portfolio 寻找机会，对成熟的工艺和产品进行技术转让或项目引进以丰富先声疫苗产品 Seek collaboration opportunities for clinical- and/or pre-clinical stage vaccine candidates both internationally and domestically 寻求对处于临床和临产前阶段的疫苗候选物的合作机会，放眼国际也关注国内 20 Simcere is the partner of choice for a number of multinational companies 先声是各大跨国企业的首选合作伙伴

Continuous Improvement 不断改进 We know we are not there yet. But we are fully committed to continuously improve ourselves. And we welcome all the helps and collaboration opportunities to reach this goal. 我们知道离目标还有差距，但我们承诺不断地改进自己. 我们欢迎所有能够帮助我们实现这个目标的合作伙伴和机遇。 21 China Vaccine Manufacturers Global Vaccine Leaders