http://www.milkeninstitute.org

Biotech Timeline: First Three Hundred Years

1660

1830

1850

1870

1900

1920

1930

1940

1950

1960

1970

1980

1663Cells

described

1830Proteins

discovered1855

E.Coli discovered

1856Gene

established

1871DNA

discovered

1940DNA,

“transforming factor”

demonstrated

1920Human growth

hormone discovered

1909Word “gene”

introduced 1944Genes

encoded by DNA

discovered

1953“Double-

helix” described

1960Proteins

responsible for cutting DNA discovered

1966Genetic code

cracked1975

Monoclonal antibodies (MAbs)

developed

1972Recombinant

DNA technology constructed

1973Plasmid to clone

DNA used

1980

1985

1990

1995

2000

2005

1980First U.S. Patent for

gene cloning received

First biotech IPO

1982First biotechnology

drug releasedFirst transgenic

plants introduced

1983Polymerase chain

reaction (PCR) technique conceived

1989Epogen, first biotech

product approvedGene responsible for

cystic fibrosis discovered

1990Human Genome Project (HGP)

launched

1986Recombinant

anti-hemophilic factor approved

1991Neupogen, second

biotech product approved

1994Breast cancer

susceptibility gene discovered

1995Full gene

sequence of a living organism other than virus

completed

1997Dolly, the

sheep, cloned

1998Enbrel, treatment for rheumatoid

arthritis, approved

2000Draft of human

genome completed

2001First endangered species cloned

2002First domestic cat

cloned

1996First transgenic plants available commercially

Biotech Time: Last Three Decades

Biotech Patents Granted

0100999897969594939291908988

6

5

4

3

2

1

0

Number (Thous)

U.S. Origin

Foreign Origin

U.S. Pharmaceutical Industry(Rising R&D Yields Fewer Drugs)

2000199519901985198019751970

55

50

45

40

35

30

25

20

15

32

28

24

20

16

12

8

4

0

Number US$ Billions

R&D (R)

New Drugs Approved (L)

Number of Pivotal Trials by Disease Category

Phase II or III, 2000

HepatitisAIDS

CardiovascularNeurology

Cancer

80

60

40

20

0

Number

S&P 500 Biotech vs. S&P 500 Index

S&P 500 Biotech

S&P 500 Index

200120001999199819971996199519941993199219911990

1000

800

600

400

200

0

Index 1994=100

Top 10 Biotech Drugs

Disease Treated Sales(US$ Millions)

Procrit Anemia 2,709Epogen Anemia 1,963Neupogen Leukemia 1,224Intron A/Rebetron Hepatitis C & Cancer 1,360Humulin Diabetes 1,115Avonex Multiple Sclerosis 761Enbrel Rheumatoid Arthritis 690Cerezyme Type 1 Gaucher Disease 537Rituxan non-Hodgkin's Lymphoma 444Synagis Respiratory Syncytial Virus 427

Causes of Death and Age-Adjusted Death Rates in the U.S.

Death Rate / 100,000 People

1. Heart disease 257.52. Cancer 200.53. Stroke 60.34. Chronic lower respiratory diseases 44.95. Accidents 34.06. Diabetes mellitus 24.97. Influenza and pneumonia 24.38. Alzheimer's disease 17.89. Kidney disease 13.7

10. Septicemia 11.5

U.S. Biotech Industry Performance

1999 2000

Total Revenue 22.3 25.0 12.2

R&D Expense 10.7 13.8 29.2

Net Income -5.6 -5.8 -2.7

Market Capitalization 353.5 330.8 -6.4

Employees 162,000 174,000 7.4

(US$ Billions)

Percent Change

(%)

Biotech – Market Value of Top 10 Firms

Name

Current Market Cap

(US$ Billions)

Amgen Inc. 64.32

Genentech Inc. 27.26

Immunex Corp. 17.07

Idec Pharmaceuticals Corp. 10.03

Genzyme Corp. - Genl Division 9.10

Chiron Corp. 8.85

Biogen Inc. 7.13

Millennium Pharmaceuticals 6.25

Human Genome Sciences Inc. 2.87

Icos Corporation 2.81

Asia Pacific Biotech – Market Value(Top 10 Companies)

Note: data as of 4/3/02

Company CountryMarket

Capitalization ($US Millions)

1. LG Chem Investment Ltd S. Korea 1,144.92. Sonic Healthcare Ltd Australia 821.33. Kunming Yunda Science-A China 420.64. Beijing Tiantan Biological-A China 387.15. Star Lake Bioscience Co Inc China 339.66. Ginwa Enterprise Group Inc-A China 288.97. Guangxi Beisheng Pharm-A China 173.98. Apex Biotechnology Corp Taiwan 128.59. Medical & Biological Labs Co Japan 114.5

10. Rubicon Limited New Zealand 103.8

U.S. Biotech Industry Revenues Increase(Public and Private Co.)

200019991998199719961995199419931992199119901989

25

20

15

10

5

0

US$ Billions

U.S. Biotech Industry Revenues Increase(Public Co.)

0100999897969594939291908988878685848382

25

20

15

10

5

0

US$ Billions

*estimated

*

U.S. Biotech Industry

200120001999199819971996199519941993

340

320

300

280

260

240

220

200

420

360

300

240

180

120

60

0

Number US$ Billions

Public Companies (L)

Market Cap (R)

Public Biotech Companies by Region 2000

L.A/Orange CountySan DiegoSan Francisco Bay

80

70

60

50

40

30

20

10

3.2

2.8

2.4

2.0

1.6

1.2

0.8

0.4

Number US$ Billions

Number of Public Companies (L)

R&D (R)

Public Spending on Biotech R&D2000

GermanyUKFranceItaly

600

500

400

300

200

100

0

12

10

8

6

4

2

0

Millions of € €

Total (L) € per Capita (R)

Equity Investments in Biotech2000

Appendix: US healthcare spending as a percent of GDP is the highest in world

US Italy Japan* UKCanadaFrance*Germany

Source: OECD Health Data, 1999. *Denotes 1998 data.

% of GDP

0.0%

1.5%

3.0%

4.5%

6.0%

7.5%

9.0%

10.5%

12.0%

13.5%

15.0%

Appendix: US healthcare spending continues to grow

$ Billions

Source: Center for Medicare and Medicaid Services (HCFA), 2002

$246

$696

$990

$1,299

$1,426

$1,546

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1980 1990 1995 2000 2001e 2002e