The Future Healthcare InnovationEnvironment of FinlandProject Way Forward executive summaryNovember 2016

Contents

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A. Introduction

B. Executive summary

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Introduction to Project Way Forward

Project Way Forward

• Project Way Forward is an integral part ofimplementing Finpro’s Team Finland Health growthprogram by engaging the key Finnish health sectorstakeholders in the development of Finnish healthsector ecosystem

• Purpose of the project was to map the assets andcompose recommendations for public sector,academia and industry in order to strengthen thehealth sector ecosystem and business environmentthat connects and aligns all key stakeholders aroundfinancing, infrastructure, policy-making, competenciesand commercial activities

• Ecosystem thinking builds on an idea that a strongbusiness environment will stimulate growthopportunities for Finnish companies and attract foreigndirect investments in the field, making Finland one ofthe key hubs for health care innovation globally

Way ForwardMerge the resultsinto acomprehensive setof recommendationsfor the keystakeholders ofFinnish health sector

To-Be pictureDevelop a jointhealth sectorTo-Be picturefor 2021

Key assets and As-IssituationAnalyze the As-Issituation from theperspective ofcompetitive strengthsand weaknesses

Gap analysisConduct a gapanalysis betweenthe To-Be pictureand the As-Issituation

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Project Way Forward Steering Group and participantorganizations

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Aalto University FCG Consulting Lääketeollisuus Planmeca

Amcham Finland HealthTech Finland MariCare PulseOn

Amgen FIMM Medaffcon Quattro Folia

Astellas Pharma Finnish Academy Medikro Roche

AstraZeneca FinnMedi Medix Laboratoriot Salivirta & Partners

Atostek Finnvera Medixine Sanofi-aventis

Aurealis Pharma Finpro Meedoc Serres

Bayer Firstbeat Technologies Megaklinikka Sitra

BCB Medical Forendo Pharma Mehiläinen SMART Internationalization

BioMediTech institute Fujitsu Finland Mendor StartUp Health Finland

BioNavis GE Healthcare Merck Steripolar

Brainshake GlaxoSmithKline Metropolia University of Applied Sciences STM

Bristol-Myers Squibb (Finland) Helena Medical Group Microsoft Suomen Terveystalo

BusinessOulu Helsinki Biobank Movendos TekesCloudstreet (Health Innovation Village) Helsinki Business MSD Finland Terveysoperaattori

Combinostics Helsinki University Netmedi THL

ContrAl Clinics Herantis Pharma NewIcon Tieto

Cornfield & Partners HLD Healthy Life Devices NHG Consulting Tofuture

Crown CRO HUS Nokia Technologies Turku Science Park

Delfin Technologies HYKSin Novartis Finland Turku University

Docrates Cancer Center Isku Interior Orion Pharma TYKS

Dottli Janssen-Cilag Oy Apotti Verbiex

DRA Consulting JouZeNet Consulting Oy Medfiles Vertical Accelerator

Elisa Labrox Oy Medix Biochemica Wexma

EPID Research (CRO) Locnet PerkinElmer Vivago

Evalua International LS CancerDiag Pfizer VTT

FastROI LähiTapiola Philips

Pharma• Oliver Rittgen – Bayer Nordics

(chairman)• Reijo Salonen – Orion Pharma• Jussi Merikallio – Lääketeollisuus ryMedServ• Jyrki Eklund – FinlandCare steering

group• Janne Aaltonen – HUSHealthTech• Matti E. Lehtonen – GE Healthcare• Veli Mäkelä – Planmeca Oy• Matti Vänskä – Nokia Technologies Oy• Tapio Jokinen – Medixine Oy• Saara Hassinen – HealthTech FinlandUniversities• Heikki Ruskoaho – Helsinki University• Kalervo Väänänen – Turku UniversityPublic organizations• Ville Koiste – Sitra• Antti Kivelä – Sitra• Mirja Kaarlela – Tekes• Nora Kaarela – Finpro

Steering Group Participant organizations to Workshops and Marketplace Day

• EY (consultant to the project)

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Contents

5

A. Introduction

B. Executive summary

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Executive summaryGlobal transformation of the health sector provides an opportunity for Finland to build aglobally recognized health care innovation hub

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► Health sector is shaped by global trends which drive the need for new approaches for care, opening newcommercial opportunities for the industry and for countries to create development hubs which combine severalkey competencies.

► Ecosystems which are able to advance translational medicine, conduct health data based R&D and develop newhealth technology solutions in collaboration between care providers and companies are well positioned to react tothe sector trends and capture the commercial opportunities.

► Hence, Finland should focus on building a hub for health care innovation by advancing the four identified healthecosystem assets that Finland has in medical research, health technology, health data and clinical co-creation.Finland should leverage on its key advantage in…

1. Top-class disease pathways expertise to translate scientific discoveries into commercial developmentprojects

2. Technological know-how and engineering capabilities to provide innovative digital health technologysolutions

3. High quality health data for health data based R&D investments4. Strong collaboration environment between care providers and the industry for effective co-creation in a

testbed for health innovations► Finnish Government has recognized this opportunity and is implementing the Health Sector Growth Strategy for

research and innovation activities, with an extensive roadmap for 2016-2018. This report represents the view ofthe health industry and academia on how to further strengthen the implementation. In this report, we present therecommendations of Finpro’s Team Finland Health Growth Program for the public sector, academia and industryfor taking the vision forward.

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Executive summaryHealth sector is shaped by global trends which drive the need for new approaches for care,opening new commercial opportunities for the industry

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Growing burden of chronic diseasesChronic diseases are by far the largest component of the health and

economic burden of diseases in developed countries

Shift towards preventive health careTo fight the burden of chronic diseases, a shift of focus from treatment

of diseases to preventive health care is required

Focus on health outcomesShift from a transaction based reimbursement model to one based on

health outcomes

Demand for connected and mobile carePatients demanding service independent of time and place create new

requirements for mobility of patient care

Increasingly engaged consumerGrowing role of people managing their own health and wellbeing, as

well as health sector consumerism

Need for targeted therapiesDeclining R&D productivity and increasing costs force companies toexplore targeted therapies with a more focused patient segmentation

• Need for solutions capable of measuringhealth care outcomes to evaluate efficacy oftherapies and manage health care costs

Need for collaboration between industryand academia in search for novel therapiesand R&D productivity to manage chronicdiseases, improve care outcomes, improvepatient life quality and reduce cost of care

Need for solutions enabling monitoringand analysis of individual behavioral andhealth data to understand condition, makeearly diagnosis, and influence behavior totake preventive action

Opportunities

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Executive summaryFour identified health care assets combine Finnish strengths in medical research, healthtechnology, health data and clinical co-creation

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Finland is considered to be one of the leading countries in havinghigh-quality and comprehensive health data in digital format

driven by the universal healthcare system, universal identificationnumber and innovation-friendly regulation. Also, Finland has a uniqueability to combine biological sample data into patient records, national

registries and other phenotype data.

Finland is considered to have globally recognized knowledgeand researchers in certain disease mechanism areas such as

metabolic, neuroscience, oncology, and cardiovascularwhich is the primary source of new drug and diagnostics

development and hence entail considerable commercial potentialfrom ecosystem viewpoint.

Top-class expertise in certaindisease pathways areas

Finland has strong capabilities in many technological application areassuch as wearable devices and sensor technology, IVD, monitoring and

imaging supported by information and wireless technology. Maturedigital infrastructure, lively start-up environment, and established

capabilities in medical technology and engineering provide a strongbasis for the development of digital health solutions.

World class technological know-howand engineering capabilities

High-quality health datain digital format

Finland’s high quality care system with its uniform standards anduniversal access can provide a strong platform for product

development, testing and clinical evidence gathering in real-lifeenvironment. There is a wide range of stakeholders suitable forcollaboration, and solutions developed will likely be applicable to

a wide range of service providers world-wide.

High quality and accessiblehealth care system

Need for solutions enabling remotemonitoring and analysis

Need for collaboration in search fornovel innovations and R&D productivity

Need for solutions capable ofmeasuring health care outcomes

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Executive summaryThe triumph of the Way Forward To-Be picture is built upon a set of key enablers…

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4321

Focus assets

Disease pathwaysFinland has top-class expertise incertain disease pathways areas

Health technologyFinland has world class technologicalknow-how and engineering capabilities

Health dataFinland has high-quality health data indigital format

Clinical collaborationFinland has high quality and accessiblehealth care system

Innovation-drivenacademic researchinfrastructure andincentives

Commercial competence throughfocused technology transferresources and academia-industrycollaboration

Access to life sciences focusedprivate equity andcommercially-driven publicresearch funding

Effective co-creationenvironment for healthtechnology development

Versatile growth through efficienttechnology and go-to-marketknowledge transfer

Stimulating regulatoryenvironment and incentivesystem making Finland anattractive investment target

Ample sets of biologicaland digital health datawhich is connective,comprehensive, intelligible

Services, knowledge networks andincentives formed around ourhealth data assets for valuecreation

Fluent access to health dataand related services forcommercial utilization

Real-life development andtesting environment forhealth technology

Availability of the rightcompetencies supported by culturefor collaboration

Efficient financing and clearregulatory environment givingclarity for collaboration

Way Forward key enablers

1 2 3Finland is a

globallyrecognizedhealth careinnovation

hub

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Establish a national drugdiscovery center to focus onapplied medical research(Universities)

Create postdoc researchprograms with industryassignments and continuationin university or spin-off(Universities, Academy ofFinland, Industry)

Grant Tekes scientific researchfunding based on intelligenceof the needs of the global LifeSciences industry (Tekes,Industry)

Create a unified approach forclinical co-creation forcompanies (Industry, Healthcaredistricts, VTT)

Create a reference programwhich connects the R&D/testbedding needs with innovativecare needs (Tekes, FiHTA)

Direct funds toward utilizingopportunities of innovativepublic procurement (Tekes)

Scale up the operations of allFinnish biobanks with nationalcoordination and intelligence onclient requirements (Hospitaldistricts)

Develop a simulation centerfor clinical trials (see p. 59) andimplement proper incentiveschemes to foster foreign R&Dactivities in health data inFinland (Government)

Establish an agile commerciallyincentivized operator tocoordinate the commercialopportunities in utilizing healthdata (VTT, Sitra)

Create an industry consortiumto define requirements andcommit to invest in R&Dservices organized by co-creation environments(MedTech companies)

Align legislation to ensure clearownership of IPR produced inclinical collaboration model(Government)

Refine the criteria of publicfunding into private companyR&D projects (Tekes, Sitra)

Executive summaryThe triumph of the Way Forward To-Be picture is built upon a set of key enablers…

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4321

Focus assets

Disease pathwaysFinland has top-class expertise incertain disease pathways areas

Health technologyFinland has world class technologicalknow-how and engineering capabilities

Health dataFinland has high-quality health data indigital format

Clinical collaborationFinland has high quality and accessiblehealth care system

Selected highlights of recommendations

1 2 3

Details availablein the full report

Please contactTeam Finland

Health toreceive the full

report

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Finland is a globallyrecognized health

care innovation hub

Active and incentivized workforce movement betweenacademia and industry

Knowledgeable investors helping to raise capitaland with access to global expert investornetworks

Global collaborative presence in the keyglobal life sciences hubs connectingcompanies to global business networks

Research based innovative start-upsblooming with life sciences, health technologyand data driven concepts

SMEs making growth leaps with scalable lifesciences, health technology and data drivenconcepts

Anchor companies building cross-domain valuepropositions and investing into digital health in Finland

Discovery center combining life science research andbusiness talent

National health industry specific technologytransfer organization coordinated by a ChiefScientist

One-stop-shop for clinical collaborationand test-beds enabling efficient access toreal-life R&D environments

Integrated health data sources of highquality and coverage

Health data cluster enabling developmentof data offering and supporting go-to-market

Clear and forward-looking legislation built oninnovation friendly principles

Incentives and access to capital supporting risk-taking,collaboration and foreign investments and a local co-investor

Ease-of-access for global players to Finnish ecosystem and Finnishcompanies to global markets

Versatile operators including investors, start-ups, mid-cap andcorporate anchor companies

Executive summaryAs a result Finland will be a health care innovation hub with versatile and knowledgeable operators,ease-of-access to value added services, and forward-looking regulation and legislation

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