Outline

1. Skills for Success in Business DevelopmentKauffman Campus Best Practices WorkshopPurdue UniversityTed T. Ashburn, MD, PhDSenior DirectorCorporate Development Genzyme Corporationted.ashburn@genzyme.comNovember 9, 2007

2. Outline • Current Trends • Genzyme • Business Development in Action • Key Skills for Success • Business Development • General

3. Outline • Current Trends • Genzyme • Business Development in Action • Key Skills for Success • Business Development • General

4. Target Discovery Discovery & Screening Lead Optim. Clinical Develop. Regis- tration. ADMET • Expression analysis • In vitro function • In vivo validation • Bioinformatics • In vitro • Ex vivo • In vivo • In silico • High throughput • Traditional Med. Chem. • Rational drug design • Bioavailability • Systemic exposure • Testing starts at Phase I (Phase I/II for cancer) • U.S (FDA) • E.U. (EMEA) • Japan (MHLW) • Rest of World 2-3 yr 0.5-1 yr 1-3 yr 1-2 yr 5-6 yr 1-2 yr 1. The Pharmaceutical Value Chain Idea! Drug • 10-17 years, $1.7 billion+ process • > 75 different disciplines • < 10% overall probability of success once a candidate enters clinical trials!!! Ashburn & Thor, Nature Reviews Drug Discovery, Aug, 2004, pg 673-683 Gilbert, Henske & Singh, IN VIVO, Nov, 2003

5. 1. The Industry’s Productivity Gap Ashburn & Thor, Nature Reviews Drug Discovery, Aug, 2004, pg 673-683

6. Bacterial Infections Hypertension Arthritis Alzheimer’s penicillin propranolol celecoxib N.A. Screening /RDD Screening /RDD penicillin adrenaline High Med Low Very Low Low Med High Very High 1. Possible Explanation for the Industry’s Productivity Gap 1940’s 1960’s 1990’s Today Disease The Fruit Is Getting Higher! Drug Chemical Starting Point Target Validation Development Complexity

7. Stents (Cardiologists) Antihyperlipidemics (PCP’s & NP’s) OTC Antihyperlipidemics? (Patients) 1. Why Innovation in HealthCare Is Important By Pass (Heart Surgeons) Complexity of treatment Time Adapted from: Christensen, Bohmer & Kenagy, Harvard Business Review, Sept-Oct, 2000

8. Gov./Acad./Non-Prof. Industry 1. Where Does Innovation Come From? > 90% of all new drugs are developed by the Pharma Industry * NIH Response to the Conference Report Request for a Plan to Ensure Taxpayers' Interests are Protected. Department of HHS, NIH. July 2001. Available at: http://www.nih.gov/news/070101wyden.jsp. ** Tufts University

9. 49% 47% 45% 43% 41% Big Pharma 39% Mid Pharma 04 05 06f 07f 08f 09f 10f 1. Dependency of revenues on externally sourced products ~½ of all innovation comes from small companies Source: Datamonitor; company-reported information

10. Outline • Current Trends • Genzyme • Business Development in Action • Key Skills for Success • Business Development • General

11. 2. Our Global Corporation • >9,500 employees worldwide • Helping patients in nearly 90 countries • 17 manufacturing sites • 9 genetic testing lab sites • 14 marketed products • 2006 revenue of $3.2 billion • >70 locations in >30 countries

12. $ 2. Our Revenue Growth $ In Millions

13. 2. Awards and Recognition • One of the “100 Best Companies to Work for” by FORTUNE • Named a top employer by Science • Rated one of the most generous in-kind givers by BusinessWeek • Named to the Dow Jones Sustainability • Genzyme Center recognized as one of the most environmentally responsible U.S. buildings

14. 2. Our Major Marketed Products & Services Reproductive Cerezyme® Thymoglobulin® Renagel® Synvisc® Campath® Cholestagel Oncology Fabrazyme® Hectorol® Carticel® Clolar® Aldurazyme® MACI® Thyrogen® Infectious Disease SepraTM Products Myozyme® Cardiovascular Genetic Testing Genetic Diseases Renal Orthopaedics/Biosurgery Oncology/ Endocrinology Transplant/ Immune Disease Cardiovascular

15. Outline • Current Trends • Genzyme • Business Development in Action • Key Skills for Success • BD • General

16. 3. Summary: What is Business Development? • In larger companies • Licensing/Acquisitions Department • “Buying” • In smaller companies • “BD is the Marketing & Sales before there are any products” • “Selling” (and sometimes buying) Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals

17. 3. Genzyme Strategy: Growth By Building Value Organic growth / status quo Optimize capital structure Goal: To Remain A Growth Stock Improve investor understanding Maximize Shareholder value Streamline portfolio L icensing arrangements joint ventures Objective: 20%-25% E.P.S. Growth Strategic transactions Add-on acquisitions Large scale transaction/ merger/ sale CD is Here

18. Deal Database Corporate Development Finance Steering Committee Weekly Forum Business Unit Legal Sarbanes-Oxley 3. An Integrated/Cross-Functional Approach

19. 3. Genzyme Deal Criteria • Significant Unmet Medical Need • Rare diseases • New Standard of Care • Risk-reduced Opportunities • Human POC or later • Clear Regulatory pathways • Focused Call Point(s) • Not PCP’s • Partnerships • Desire to work together to create value • Both Regional and worldwide

20. 3. The “Kissing Lots Of Frogs” Problem • It takes 10-17 yrs & over $1.7 bn to develop a drug • < 1 in 10 that begin human trials reach the market • Late stage clinical trials are often delayed/stopped • Hundreds of ongoing clinical trials targeting hundreds of diseases • > 1,500 private & public biotech companies (US) • < 35% of approved products justify the cost of development & launch • 20% earnings growth promised to Wall Street We Can’t Be Too “Picky” About Where We Find Good Opportunities

21. Biomatrix 12/00 Biomatrix 12/00 GelTex 12/00 GelTex 12/00 SangStat 9/03 AnorMED 11/06 SangStat 9/03 Ilex/Bio-envision 12/04 10/07 Ilex 12/04 IMPATH 4/04 IMPATH 4/04 Genzyme pre-2000 Genzyme 2007 WYE/Synvisc 1/05 WYE/Synvisc 1/05 Bone Care 7/05 Bone Care 7/05 - 2006 Revenues: ~$3.2B - Market Cap: $18B Transplant & Oncology/ Genetics Diagnostics Orthopaedics/ Biomaterials LSDs Renal Immune Disease Endocrinology ® Thyrogen ® ® ® ® Cerezyme Synvisc Thymoglobulin / Renagel Cancer ® ® CAMPATH Hectorol Reproductive ® ® ® Fabrazyme Carticel Lymphoglobulin ® CLOLAR Sepra Renvela ® Mozobil Aldurazyme ILX - 651 Renal fibrosis Synvisc II ® Myozyme TGFb antibodies DENSPM liver Hylastan Tolevamer I2S (Asia) FC gamma receptor Niemann Pick 3. A Transformation (One Step at a Time) - 1999 Revenues: $750M - Market Cap: $3.5B Genetics Diagnostics Orthopaedics Biomaterials LSDs Sepra Cerezyme Carticel Pre-natal Gabi/Epicel

22. Who are Business Development People? • “Top Notch Business Development People are People who have an irresistible urge to Make Things Happen” Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals

23. 3. BD Backgrounds at Genzyme • 10 MBA’s (Wharton, Harvard, Kellogg) • 4 PhD’s • Harvard PhD (Biomedical engineering) with small cap biotech & start-up experience • xScientist from Integrated Genetics • MIT trained chemist • 3 xSales Reps (Lilly & BMS) • 3 JD’s (Georgetown & Harvard) • 2 xConsultants (Bain & McKinsey) • 1 MPH (BU) & 1 MD (Missouri) • 1 overly-trained individual • Harvard/MIT trained MD/PhD with Big Rx, VC & start-up experience Anyone can do this as long as they are exceptionally strong at…

24. Selling Ability Listener Organized/ Organizer Planner Presenter Cold Caller Articulate Enthusiastic People Person Lucky Manager Science Friendly Reality Based Common Sense 4. Key Skills for Success: Business Development Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals

25. 4. Key Skills for Success: General • Find a Cause • Think BIG! • READ VORACIOUSLY! • Take care of yourself • Have a platform…

26. Skills for Success in Business DevelopmentKauffman Campus Best Practices WorkshopPurdue UniversityTed T. Ashburn, MD, PhDSenior DirectorCorporate Development Genzyme Corporationted.ashburn@genzyme.comNovember 9, 2007