Versicor Slide Format

1
Globalization Making it work (overseas)
BioE2E August 04, 2004
Dinesh V. Patel, Ph.D. Founder, President
COO Miikana Therapeutics www.miikana.com
2
Global Outsourcing Facts
3
Global Outsourcing Retro-analysis

• Facts of pharmaceutial business inefficent!
• 10 yrs, 800M/drug
• gt90 drugs generate sales lt180M
• NCE/yr/pharma need (2-3) Vs. output (0.5)
• Fundamentals of a business
• Quality
• Time
• Cost
• India China offer 3-5x economic advantage
• GDP for India China 2x Vs. USA

4
Global Outsourcing Managing for Success

• Company selection criteria
• Quality, time cost
• Hunger
• Non-conflicting interest
• Identify 2 or more service providers
• Indian Employees
• Over communicate - Emails, phones, face-to-face
• Guidance - Clear goals timelines
• Teach, mentor
• US Employees
• appreciate the deal and convenience!
• help them create expand their business
• demand results, dont insult or intimidate

5
Global Outsourcing Case History Miikana

• Management Scott Rocklage, Dinesh Patel, Tak Mak
• Financing 4.25M Series A (July 03) - 5AM
  Ventures
• In house Operations
• Canada - 6 biologists
• USA - 3 senior chemists (director, res fellow,
  grp leader), VP of Preclinical
• Outsourcing Operations
• India - 12 chemists (Bangalore, Hyderabad).
  Planned - 3 more chemists, 3-6 biologists, CMC
  scale-up, clinical
• Europe - special in vitro studies
• USA - Legal, IP, BD, finance, preclinical
• Outcome From target to animal studies in 6
  months!

6
Global Outsourcing Creating a win-win situation

• Acknowledge the trend - 7 (2004) to 25 (2020)
• Move off-shore (?) - or settle for travel
  teleconferences
• Innovate
• High Tech has matured - Microsoft
• Whats next - BioTech? Energy sector?
• Learn from them
• Win-win formula
• Competition is healthy - improves performance
  productivity
• Consumer (USA) controls the market in a
  competitive environment
• Eventually, the consumer supplier roles can
  switch