LICENSING

Merck Lumira Biosciences Fund Launched

Merck, through a subsidiary, in collaboration with Lumira Capital, Teralys Capital and other partners, will provide investment capital to support early stage life science inovation in Québec.

March 26, 2012

Merck announced today a $35-million investment in, and the launch of, the Merck Lumira Biosciences Fund (the "Fund"). The Fund, established by Merck, through a subsidiary, in collaboration with Lumira Capital, Teralys Capital and other partners, will provide investment capital to support early stage life science innovation in Québec.

The launch took place earlier today at the Fairmont The Queen Elizabeth Hotel in Montréal. Participants included Sam Hamad, Québec Minister of Economic Development, Innovation and Export Trade; Yolande James, Minister of Families and Member for Nelligan; Cyril Schiever, President and Managing Director of Merck in Canada as well as executives from Merck, Lumira Capital and Teralys Capital.

"The Merck Lumira Biosciences Fund represents a collaborative approach to research between government, academia and industry that builds upon the strong foundation of innovation in Québec. Through this Fund, we are committed to supporting Québec-based researchers to help stimulate R&D productivity and early stage innovation in particular," said Mr. Schiever.

The Merck Lumira Biosciences Fund will invest predominantly in early-stage biotechnology companies with operations in Québec. It is designed to provide capital to fuel innovation as well as attract life science entrepreneurs to the province. The Fund provides a novel collaboration between a pharmaceutical company, a specialized venture capital firm and a Canadian technology fund of funds as well as other limited partners. Merck invested $35 million to the first closing, which totalled $43 million. The Fund is targeting $50 million upon final closing. Lumira Capital, which has also made an investment commitment to the Fund, will serve as fund manager. Unless negotiated separately with the portfolio companies of the Fund, Merck will not have any rights to the Fund’s portfolio companies or their products simply by virtue of its role as a limited partner.

"Building transformational healthcare and life science companies across North America, including in Québec, has been a key part of Lumira’s strategy for many years," said Daniel Hétu, Managing Director of Lumira Capital. "We look forward to benefiting from Merck’s guidance and expertise as we look to build innovative Québec companies that generate strong returns for investors. Our experience, relationships and ability to be a collaborative and value-added partner are what we bring to the table in the management of this fund."

"Teralys is very pleased to invest, alongside Merck, a significant amount in the life sciences ecosystem in Québec, which strengthens the province’s leadership in the sector," said Jacques Bernier, Managing Partner of Teralys Capital. He added: "In addition to Merck as a strong and credible partner, Lumira Capital combines critical financial size with the international mindset and networks required for success in life sciences."

The launch of the Fund marks the latest contribution by Merck to its commitment to invest $100 million over five years in biopharmaceutical research and development in Québec, announced in 2010. Previously, Merck has invested $6.8 million in AmorChem, a Québec life sciences venture capital fund, and $5 million in the Québec Consortium for Drug Discovery (CQDM).

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