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  • 1. Healthcare in Bavaria
  • 2. Invest in Bavaria –The Business Promotion Agency of the Stateof Bavaria The one-stop all-round service Invest in Bavaria is the Business Promotion Agency of the State of Bavaria. Since 1999, it has been helping companies from Germany and abroad to build up or extend a base in Bavaria. Invest in Bavaria puts together customised information, helps to find the ideal location in Bavaria and arranges the contacts needed for im- plementing projects: with government agencies and associations as well as with important local networks. The services offered by Invest in Bavaria are free of charge and all inquiries are, of course, treated confidentially. The Business Promotion Agency of the State of Bavaria is a reliable and competent partner for every phase of the investment project. Planning and Preparation The better the information about potential sites, the easier it is to reach a sound and efficient investment decision. Invest in Bavaria provides companies interested in Bavaria with comparable and reliable facts and figures about the market and business environment, industry and technology networks or funding and financ- ing instruments. Choice of Location Project-related location criteria are jointly developed to meet the wishes and needs of the investor. Invest in Bavaria uses this requirement profile to draw up concrete proposals of potential sites, to identify suitable com- mercial properties and industrial real estate and to organise on-the-spot site inspections. Location Implementation Once the location has been chosen, Invest in Bavaria makes sure that the companies receive local support from the right partners. It investigates funding options, organises contacts with appropriate funding institutions and – if required – with possible financing partners. Invest in Bavaria also offers its assistance with tax, legal and administration issues, ensuring straightforward and smooth coordination with the relevant authorities for a particular project, the regional business development organisations or specialised service providers. Site Development Even after the new business has been set up, Invest in Bavaria is still on hand for interested companies. In- formation on the promotion of business in Bavaria, like the trade fair participation program, all the way to tips about useful corporate databases and industry networks and arranging contacts with foreign communities are typical examples of the wide range of services offered by Invest in Bavaria. And if it is a matter of expanding an existing facility, Invest in Bavaria will be standing by ready to offer help, advice and good contacts.
  • 3. PrefaceMartin Zeil The life science sector develops key technologies of the 21st century like no other sector and is highlyDeputy Prime Minister of Bavaria innovative. Added value and sustainable growth can only be achieved by means of innovations. BavariaBavarian Minister of EconomicAffairs, Infrastructure, Transport is well prepared for this challenge. With global industry leaders like Siemens, GE, Novartis, Roche,and Technology but especially due to the research-oriented and committed small and medium sized enterprises, the Free State of Bavaria is a healthcare site that is unique in Europe. In order to create innovations, research facilities must be available. Bavaria offers the best conditions in this regard: with 13 Max Planck Institutes, three Helmholtz Centres and eight Fraunhofer Institutes, Bavaria enables a close networking of research and practical implementation. Eleven universities and 17 universities of applied sciences create a climate for a direct entrepreneurial implementation of the latest research results and produce highly qualified experts for Bavarian companies. Also citizens benefit from this lively climate of innovation: the comprehensive availability of more than 400 hospitals and 300 prevention and rehabilitation facilities ensures the involvement of everybody on the medical progress. The complex healthcare sector is closely linked in all segments and assumes an extraordinary role in the technology policy of the Free State of Bavaria. Especially through the targeted bundling of different partners from various sectors, Bavaria initiated an effective cluster policy in 2006. In particular, the high-tech companies on site benefit from this, as the connection and the interchange between science and economics is considerably simplified and accelerated. Specific frameworks have been used in order to establish uniform standards in the areas of standardisation and legislation. These contribute substantially to targeted research in order to continue being a global leader in this segment. In order to provide investors with access to this extraordinary potential, representatives of the Free State of Bavaria are available as points of contact in metropolises of more than 20 countries. They cooperate closely with Invest in Bavaria, the Bavarian Business Promotion Agency. Invest in Bavaria supports investors comprehensively, confidentially and free of charge. From the initial conversation on the choice of location to the groundbreaking ceremony and the continuous follow-up care, the team of the Business Promotion Agency supports companies together with its country and sector experts. This brochure presents the strong position of Bavaria in life sciences and makes clear why the free state is an ideal place for business development and innovation. It provides an overview of all the excellent companies from biotechnology, medical technology and pharmaceuticals that you as an investor can work with and tells the success stories behind the people and the products which are ”Made in Bavaria”! Martin Zeil Deputy Prime Minister of Bavaria Bavarian Minister of Economic Affairs, Infrastructure, Transport and Technology Invest in Bavaria 03 3
  • 4. Contents Preface 03 Martin Zeil Deputy Prime Minister of Bavaria Bavarian Minister of Economic Affairs, Infrastructure, Transport and Technology Bavaria Bavaria – Location for Biotechnology and Medical Technology 06 Overview ”The launch of the tech campus is expected for 2015” 07 Interview with Dr. Thomas Diefenthal, Managing Director, BioPark Regensburg GmbH ”Our location is essentially characterised by its further education establishments” 08 Interview with Dirk Jung, COO, joint operating company IGZ BioMed/ZmK mbH ”Bavaria is a leading medical technology region” 10 Interview with Prof. Dr. Michael Nerlich, Chairman, Forum MedTech Pharma e.V. ”Synergies between drug development and medical technology are especially valuable” 12 Interview with Prof. Dr. Horst Domdey, BioM, and Prof. Dr.-Ing. Erich R. Reinhardt, Medical Valley EMN e.V. Bavarian research excellence in Biotechnology and medical technology 13 Pioneering concepts are developing in the Free State thanks to academic and economic cooperation The highlight from Erlangen 15 Testing directly in the hospital Pharmaceutical and medical technology companies in Bavaria 16 Overview, trends and developments Biotech in Bavaria ”Willingness to found companies is spreading like a virus” 18 Interview with Prof. Dr. Axel Ullrich, Director, Department of Molecular Biology, Max Planck Institute of Biochemistry Fit for the Medicine of the Future 19 Focus on “Personalised Medicine” in Munich Land of the Biotech Pioneers 20 Innovation in Bavaria comes from small and medium sized enterprises ”IZB will continue to grow” 21 Interview with Dr. Peter Hanns Zobel, Managing Director, IZB GmbHInvest in Bavaria 04
  • 5. ”It is important that business models are scalable”24 Interview with Helmut Jeggle, Athos Service GmbH, and Michael Motschmann, MIG Verwaltungs AG ”Since 1998, approximately EUR 2 billion have been invested25 in site expansion projects” Interview with Claus Haberda, Site Manager, Roche Penzberg ”The acquisition of Micromet is the largest single investment Amgen has ever made”26 Interview with Richard Paulson, VP & General Manager, Amgen GmbH in GermanyMedTech in Bavaria ”A win-win situation for both sides; the economy and university research”27 Interview with Prof. Dr. Willi A. Kalender, Director, Institute for Medical Physics, Friedrich-Alexander-Universität Erlangen-Nürnberg Trendsetter for health28 From recent start-ups to global market leaders, small and medium-sized companies in Bavaria are driving forward advancement in medical technology. ”The location can compete with international leading centres”29 Interview with Dr. Peter Terhart, Chairman, S-Refit AG The Healthcare of Tomorrow31 Four examples from Medical Valley EMN ”Bavaria’s university hospitals are absolutely world class”32 Interview with Michael Sigmund, Head of Communications, Siemens Healthcare Success with eye laser technology33 Wavelight GmbH: Synergy potential in the Alcon GroupImprint Design and realisationBavarian Ministry of Economic Affairs, GoingPublic Media AGInfrastructure, Transport and Technology Hofmannstraße 7aInvest in Bavaria 81379 MunichPrinzregentenstraße 28 Germany80538 MunichGermany Tel.: +49 89 2000339-0 Fax: +49 89 2000339-39Tel.: +49 89 2162-2642Fax: +49 89 2162-2803 Project management Markus Hofelich, Martin Overall design Holger Aderhold Invest in Bavaria 05
  • 6. Bavaria Bavaria – Location for Biotechnology and Medical Technology Overview Across the globe, Bavaria is mainly known for its of the Biotech and MedTech hub Bavaria. Suc- tourist highlights: Neuschwanstein Castle, the most cessfully. Today, Bavaria is one of the three visited German attraction, as well as the pano- top locations for biotechnology in Europe. In a ramic view of the Bavarian Alps with the highest national comparison, Bavaria is in the lead. The mountain in Germany, the Zugspitze. Furthermore, medical technology developed in Bavaria also Bavaria signifies culinary delights and lifestyle, leads on both a national and international level. beer gardens, hearty food and good beer. The 25,000 jobs depend on the industries of Biotech same is true of the Oktoberfest, the largest public and biopharmaceuticals; in medical technology festival in the world. The unique combination alone, 45,000 jobs in the Leading-Edge Cluster of the great scenic beauty, culture and culinary of the Medical Valley European Metropolitan delights attract more than 25 million visitors each Region Nuremberg. Besides a vast amount of year; the highest number of visitors throughout small and medium sized enterprises (SME’s), glob- Germany. But Bavaria is also a booming business ally operating multinational healthcare groups location and high-tech region. Several global decided on Bavaria as their location. Roche players, among them seven of the 30 corporations Diagnostics operates one of the worldwide listed in the Dax, Germanys blue chip stock mar- largest biopharmaceutical research and produc- ket index, have their headquarters in Bavaria. tion sites in Penzberg on more than 350,000m². BMW, Audi, Siemens and Adidas are only a few Siemens Sector Healthcare, global market leader examples for the variety of companies with inter- in the field of imaging diagnostics, has its head- national standing located in Bavaria. Bavaria is quarters in Erlangen. also an innovation hub. Both the diesel engine and the MP3 format as well as soccer shoes with Growth Segment: Bavarian Biotechnology screw studs were developed in Bavaria. Even In the past 15 years, five biotechnology clusters in the field of life science the Free State of have developed in Bavaria. In the biotechnology Bavaria is a national and international leader. regions of Wuerzburg, Regensburg and Munich, the focus is on biotechnology with a healthcare Investments in high tech pay off aspect. The other two clusters, Freising-Weihen- EUR 800 million – this is the sum the free state stephan and Straubing, are more specialised on of Bavaria has so far invested in the construction green or white biotechnology. In order to support Dedicated biotechnology and medical technology centres in Bavaria Source: own research Bio-Region Startup centre Rentable space Tenants Employees Munich IZB Martinsried/Freising 23,000 m² > 60 700 Regensburg BioPark Regensburg 18,000 m² > 30 550 Franconia IGZ Würzburg 5,000 m² > 20 300 Nuremberg-Erlangen Medical Valley Center 5,000 m² > 30 200 Employees: Number of employees of the tenants in the respective startup centreInvest in Bavaria 06
  • 7. Bavaria and make better use of the particularities and investors, funding authorities, advisers and other strengths of the different regions, individual net- workers in the cluster. The BioM Biotech Cluster work organisations have been formed that are Development GmbH has been coordinating and responsible for the management of the respec- networking all biotechnology activities within tive clusters: the BioM Biotech Cluster Develop- Bavaria across since 2006. ment GmbH manages the metropolitan region of Munich as well as the neighbouring cluster of Metropolitan Region Munich – Pioneer in Freising-Weihenstephan; the BioPark Regens- Biotechnology burg GmbH manages the region of Regensburg Startup centres are a special component of each and the IGZ Bio-Med/ZmK represents the region regional cluster. They provide the infrastructure of Wuerzburg. Their objective is the development that biotechnology startups need for the growth and marketing of the respective cluster in the in- of their company, especially laboratories and terest of the founders, companies and scientists office spaces. Various important players of the in each of the locations, as well as a networking German biotechnology industry originate from of companies, universities, research facilities, the Innovation and Startup Centre (IZB) in Mar- university hospitals, chambers and associations, tinsried and Freising-Weihenstephan, founded”The launch of the tech campus is expectedfor 2015”Interview with Dr. Thomas Diefenthal, Managing Director, BioPark Regensburg GmbHWhat characterises BioRegio Regensburg the decision-makers involved often know oneas part of the Biotech cluster of Bavaria? another personally due to the geographicalIn 1999, a centre for biotechnology was created proximity. Ideas can then be implemented inon the Regensburg University campus under the projects quickly. Firstly, projects were createdmotto ”small but mighty”. Due to the principle of with life sciences companies, i.e. pharmaceutical,”short routes”, in the east of Bavaria it was possible analytics, diagnostics and medical technologyto address company founders, the medium-sized firms. Other areas followed, such as sensorindustry and external companies willing to relocate. systems. Since automation in all areas of aBoth sides have been benefitting from the integration Biotech lab or in the processing industry, e.g.of this network into the Bavarian Biotech cluster. foodstuffs, has been booming, this sector is Dr. Thomas Diefenthal isThe Leading-Edge Cluster in Munich is being linked to also expanding. Due to the comparably short Managing Director of BioParkinnovative companies situated in the outer regions development times, such companies are suc- Regensburg GmbH. He also coordinates the BioRegioof the Free State; at the same time, these compa- cessful on the market even today. Regensburg biotechnologynies receive access to the extensive services and cluster and is the deputyinformation provided by the regional initiatives. What do you imagine the location of speaker of the German BioRegionen working group. Regensburg will be like in ten years?There are many interdisciplinary projects in The neighbouring tech campus to be commis-Regensburg. How did this come about? sioned in 2015 will accommodate a multitudeRegensburg’s consistent and innovative business of companies, which started out in the BioParkpromotion forms the basis for this. In addition, Regensburg. Invest in Bavaria 07
  • 8. Bavaria in 1995 and 2007, respectively: Morphosys and m4 – Leading-Edge Cluster Micromet (now Amgen Research GmbH) as well of Personalised Medicine as Corimmun were founded in this centre. The In 2010, the German Ministry of Education and Munich site is characterised in particular by its Research honoured the Munich consortium “m4 – proximity to first-class centres for fundamental Personalised Medicine and Targeted Therapies” research. The Bavarian capital is home to three in the second round of the Leading-Edge Cluster biological-medical Max Planck Institutes for competition as one of the five Leading-Edge biochemistry, neurobiology and psychiatry, one Clusters. The vision of this Leading-Edge Cluster Helmholtz Zentrum München (German Research is to establish itself as an international model Centre for Environment and Health), the Fraun- area and area of excellence for personalised and hofer Headquarters, the Gene Center Munich that, targeted therapy. For this purpose, funds in the since 1984, has played a pioneering role both amount of approximately EUR 100 million are scientifically and organisationally in the German available for a period of five years; about half of research community, the two universities of applied these funds have been contributed by the compa- sciences of Weihenstephan-Triesdorf and Munich nies involved. The BioM Biotech Cluster Develop- as well as two of the best German universities, ment GmbH assumes the management. the Technische Universität München and Ludwig- Maximilians-Universität. Additionally, it is home Regensburg – Interdisciplinary Cooperation to two university hospitals (Klinikum der Univer- The BioPark Regensburg GmbH is not only in charge sität München and Klinikum rechts der Isar) and 60 of the cluster management but also operates a other hospitals in Munich and its surroundings. startup centre with the same name on the campus ”Our location is essentially characterised by its further education establishments” Interview with Dirk Jung, COO, joint operating company IGZ BioMed/ZmK mbH Can you briefly introduce the Biomed there was information and communication tech- region of Wuerzburg? nology, and also, at the interface, bioinformatics. We are a location which is essentially charac- We have now expanded the topics of IGZ to in- terised by its further education establishments. clude closely-related scientific areas. In this way, Many of our tenants come from the University we can also offer highly qualified niche suppliers of Wuerzburg or the Wuerzburg-Schweinfurt Uni- ideal starting conditions in the medical technology versity of Applied Sciences. The change in the service. culture of promotion has resulted in spin-off com- panies today consisting of rather small groups How intense is the collaboration with Dirk Jung is COO of of founders, who remain in further education other cluster regions? IGZ Würzburg and for a comparably long amount of time. This thus For us, ’founding companies from one’s own Deputy Managing Director reduces influence being exerted by venture means’ and ’corporate maintenance’ are key of Congress-Tourismus- Wirtschaft of the capitalists at a very early stage. The University phrases. But for this, local and national network- City of Wuerzburg. Hospital is also significant for our life sciences ing is absolutely necessary; this actively illustrates landscape. We hope to soon be able to house exchange on the part of the individual bioregions, the first spin-off companies from the hospital. as well as cooperation at interdisciplinary level. At the moment, we are intensifying our efforts to Which sectors are represented within IGZ? establish contact between the spin-off founders, From the beginning, IGZ was topically split into established firms and further education establish- two or three areas: on the one hand, there was ments. In this way, we hope to get solutions from biotechnology and biomedicine, on the other hand, science to the questions posed by business.Invest in Bavaria 08
  • 9. Bavariaof the University of Regensburg. Located in the than half of the more than 320 companies locatedBioPark are mainly companies of the field of in Bavaria in biotechnology and pharmaceuticalsbiotechnology and medical technology as well are small and medium sized enterprises (SMEs).as related service providers. Furthermore, there This represents around 30 per cent of Germanare eight non-academic research institutes or SMEs in biotechnology. The specific focus of theseproject groups within the BioPark, among them companies is the development of new therapeu-two Fraunhofer Project Groups (Diagnosis and tics and diagnostics. Their “drug candidates” areTreatment of Tumors, Metabolic Disease and tested worldwide in over 80 clinical trials. MoreDisease associated with Ageing and Sensor than 100 candidates in research and preclinicalTechnology Materials). This demonstrates the studies ensure a steady supply.proximity to non-academic research units. Inaddition, a number of research networks have Medical Valley – Leading-Edge Cluster forbeen formed in the region of Regensburg. The Medical Technologylatest example is the Centre for Interventional When talking about German medical technology,Immunology that pools existing medical and the Medical Valley European Metropolitan Re-scientific excellence in immunotherapy and gion of Nuremberg (EMN) cannot be ignored.transplantation medicine in eastern Bavaria. The Medical Valley EMN is the leading region for medical technology within Germany. Like theWuerzburg – Centre of Competence for m4 in Munich, it was honoured in 2010 by theBiomedicine German Ministry of Education and Research asThe Innovation and Startup Centre (IGZ) Würzburg national Leading-Edge Cluster. It is characterisedis the largest startup centre in northern Bavaria by a high concentration of excellence in medicaland is home to companies in life sciences and IT. technology. Approximately 500 companies operateIt is located in direct vicinity to the University of in the Medical Valley, among them numerousWuerzburg and the University of Applied Science global players and many market leaders. Theas well as numerous research facilities. For com- Medical Valley Center is the foundational corepanies in biotechnology and medical technology, of the cluster. In its direct vicinity are more thanthe proximity to the renowned department for 70 institutes with medical engineering orienta-biomedicine of the university as well as the uni- tion in Friedrich-Alexander Universität Erlangen-versity hospital is of particular importance. Not Nürnberg and universities for applied sciences,least for this reason, Wuerzburg is recognised as more than 20 non-academic research facilitiesa centre of competence for biomedicine. closely linked to medical technology (among them Fraunhofer and Max Planck Institutes) asStrong Starting Situation for well as more than 65 hospitals. The unusualBavaria’s Biotech-SME’s density of partners together with the interna-The importance of Bavaria for biotechnology be- tional market and competitive position of indi-comes very clear in a national comparison. More vidual companies provide ideal conditions forBavarian Biotech SMEs’ staff since 2006 Bavarian Biotech SMEs by field of expertiseSource: Bavarian Biotech Report 2011/12, BioM Biotech Cluster Development GmbH Source: Bavarian Biotech Report 2011/12, BioM Biotech Cluster Development GmbH 13 8% 19 65 % 4,016 11% 2,5 39% +3 3,793 3,715 3,460 25% 42 3,290 10% 7% 3,030 16 11 Therapeutics/Diagnostics Agriculture, Food, Environment Bioinformatics Devices/Reagents 2006 2007 2008 2009 2010 2011 DNA-/Proteinanalysis Preclinical Services Invest in Bavaria 09
  • 10. Bavaria ”Bavaria is a leading medical technology region” Interview with Prof. Dr. Michael Nerlich, Chairman, Forum MedTech Pharma e.V. What role does the Forum MedTech Pharma devices in Germany are created in Bavaria. network play for the healthcare sector in Bavaria is number one when considering the Bavaria? total turnover generated in the field of med- As the biggest network of its kind in Europe, ical technology, and it comes second as regards Forum MedTech Pharma is a platform for trans- the number of employees. Bavaria can thus be regional and international networking. Regional called a leading medical technology region, and networks and clusters such as Medical Valley rightly so. EMN or the Biotech cluster in Munich give rise to close connections. Their regionally focused What trends can be observed in medical commitment is perfectly complemented by the technology? Prof. Dr. Michael Nerlich is trans-regional network activities. As a national In the area of technology, the far-reaching head of the Department for and international link, the association ensures collection of information technology, the trend Accident Surgery at Regens- the extensive consideration of all phases of the towards devices for out-patient or even domes- burg University Hospital. He is also Chairman of Forum value added chain – from research and devel- tic care, or even the ever-growing interplay of MedTech Pharma e.V. opment, over production, supplier networks, the medicine technology, biotechnology and clinical trials and application, to international pharmaceuticals sectors, in the form of combi- marketing. In addition, interfaces between the nation products, for instance, are important cur- disciplines of medicine technology, biotechnol- rent developments. The sector is devoting its ogy and pharmaceuticals are being created. energies to even greater technological chal- lenges resulting from the requirement of ensur- How significant is Bavaria for medical ing efficiency in the case of innovations and technology in Germany? dealing with the issue of cost reimbursement 30 per cent of all medical technology products for products and services. and even 60 per cent of all electromedical the transfer of ideas into products and services. puts Bavaria in front of countries like France or The Medical Valley is being developed, coordi- Italy. In particular, SMEs play a specific role in nated and marketed by an association with the the medical technology of Bavaria. The majority same name. The recipe for success of the cluster of companies located here are SMEs. Companies is the close contact between highly specialised with less than 50 employees even make up more research institutes, internationally established than half of all medical engineering companies. market leaders as well as growing and medium Furthermore, the largest German network of the Conclusion German health sector (more than 620 members The future prospects for the healthcare site from 14 countries), Forum MedTech Pharma, is Bavaria are consistently positive. Strong funda- located in the Medical Valley EMN. The associ- mental research, ideal infrastructure, a high ation offers the players of the sector various degree of networking and interest in active opportunities for national and international cooperation are responsible for the positive im- networking. pulses that originate from Bavaria. Biotechnolo- gy and medical technology are important pillars Strong SMEs in the Field of Medical of the Bavarian and German economies and Technology should remain this way in the future. The Ger- The actual strength of Bavarian medical technol- man and Bavarian governments demonstrate ogy becomes clear on a closer inspection of its this with their continuous investments in these turnover. EUR 7 billion, almost one third of the sectors. total turnover of EUR 22 billion in German med- ical technology, are produced in Bavaria. This Martin BellofInvest in Bavaria 10
  • 11. BavariaBavarian Bio-Regions engaged in healthcareSource: own presentation Europe Germany Bavaria Wuerzburg Erlangen Nuremberg Regensburg Munich Freising- Weihenstephan Invest in Bavaria 11
  • 12. Bavaria ”Synergies between drug development and medical technology are especially valuable” Interview with Prof. Dr. Horst Domdey, BioM, and Prof. Dr.-Ing. Erich R. Reinhardt, Medical Valley EMN e.V. Professor Domdey, what significance does Where do you see Medical Valley in 10 the Munich Biotech Cluster have in Germany years? and how does it differ from other locations? Reinhardt: By 2022 many innovations from Me- Domdey: In the area of drug development, the dical Valley EMN will have revealed, that they Munich Biotech Cluster m4 is, without a doubt, are able to provide a sustainable contribution the most successful biotechnology location in to healthcare efficiency and effectiveness. Initial Germany. We are proud that patients are already assessments by some Leading-Edge Cluster benefiting from four drugs that were developed projects show that, in Germany alone, EUR here. With more than 300 life science companies 7.5 billion could be saved per year – without Prof. Dr. Horst Domdey is and a good 130 small and medium-sized compa- loss of quality. Through innovations in structure Managing Director of BioM nies, we are also counted among the European and processes, Medical Valley EMN will develop Biotech Cluster Development market leaders. What characterises Munich and into a model region for optimal healthcare with GmbH and speaker of the Bavarian Biotechnology Cluster. what promotes both innovation and translation the highest credentials. is the close dovetailing of excellent science and the Biotech industry. In the m4 – personalised Medicine pro- gramme, you are planning to work more Professor Reinhardt, what is the USP of closely together with Medical Valley. What Medical Valley EMN compared with other benefits do you see in doing this? medical technology clusters in Germany? Domdey: I am convinced that through the interplay Reinhardt: Global players such as Siemens of precise diagnostics and targeted therapiest, a and many SMEs are developing innovative better and more cost-effective provision of health- medical technology in Medical Valley EMN. care services can be achieved. Synergies between Even in the early stages of the innovation drug development and medical technology are process, they work closely with partners in especially valuable in order to transfer innovative science and healthcare. This is how a sustain- concepts into clinical practices. Prof. Dr.-Ing. Erich R. Reinhardt is Chairman of the able problem solving capability has arisen, Medical Valley EMN. that, together with the technological capabili- How realistic is it that both regions are ad- ties of partners, marks the innovative strength vancing together to become the leading of Medical Valley. European cluster in personalised medicine within Europe? What is your vision for the Munich Biotech Reinhardt: Personalised medicine is a focal point Cluster in 10 years? for research and development worldwide, as know- Domdey: Munich has devoted its energies to ledge about the effects of medication enables ac- drug development, especially to the future trend curate and individual treatment. Strong coopera- of ”personalised medicine”, and is purposefully tion between the medical technology and phar- improving the corresponding framework condi- maceutical sectors is therefore indispensible for tions, such as the biobanking infrastructure. In the development of necessary technology. If the addition to the well-filled drug pipeline, Munich two strongest places in Bavaria in this sector offers unique technology platforms. Especially pooled their abilities, the best conditions in which because of large international partners of com- to form a Europe-wide leading working group in panies such as Morphosys, Wilex, 4SC, Pieris the area of personalised medicine would exist. or Proteros, the perception abroad is very positive and will improve further still. Interview conducted by Markus Hofelich.Invest in Bavaria 12
  • 13. BavariaBavarian research excellence in Bio-technology and medical technologyPioneering concepts are developing in theFree State thanks to academic and economiccooperation Numerous institutes in Bavarian universities medicine”, i.e. several academic cooperations, and other establishments are devoting their en- are considered to be especially pioneering. ergies to medical technology and biotechnology. The outstanding position of Bavarian universities Interdisciplinary approaches are shaping has been underpinned as part of the excellence the scene initiatives, while the Centre for Higher Education Performing precise operations with robot sys- Development (CHE) is listing several Bavarian tems is no longer a dream of the future. Indeed, faculties in the leading group of its research lightweight robot arms, which a doctor can ranking. A multitude of support is now being control remotely, have been developed at the offered for clinical studies, in order to over- Institute of Robotics and Mechatronics of the come the hurdles. Activities for ”personalised German Aerospace Center (DLR) in Oberpfaffen- hofen. Another DLR Institute, the Institute of Atmospheric Physics, is devoting itself to the prevention of skin cancer through use of satel- lites. Interdisciplinary approaches such as these have long since characterised research in medical technology and biotechnology, too. The ”Munich Center of Health Sciences” (MC-Health) of Lud- wig-Maximilians-Universität (LMU) also pursues an interdisciplinary approach like the Munich Helmholtz Centre, Europe’s leading research centre for ”Environmental Health”. Munich is internationally recognised as being the location for biomedical basic research and its clinical application. Ludwig-Maximilians-Universität and Technische Universität München (TUM) play a key role. At the latter’s central Institute of Medical Engineering (IMETUM), the disciplines are entwined; specialities range from the "Medical Electronics Innovation Centre" to the "Heinz Nixdorf Profes- sorship for Medical Electronics". The Max Planck Society accommodates one of its biggest biologi- cal-medical research concentrations in Munich with the Institutes of Biochemistry, Neurobiology and Psychiatry. An example of the close network- ing is the Excellence Cluster Center for Integrat- ed Protein Science Munich (CIPSM). At the Julius Maximilian University of Wuerzburg, the Inter- disciplinary Center for Clinical Research (IZKF) is the internal research promotion tool. The Friedrich-Alexander-Universität Erlangen-Nürn-Two locations of the Bavarian Biotech and MedTech research community that are rich in variety: TechnischeUniversität München (top) and University of Augsburg berg is home to a Centre for Medical Physics andPhotos: © Helmholtz-Zentrum München/TUM, Universität Augsburg Technology; while at the University of Regensburg, Invest in Bavaria 13
  • 14. Bavaria a Telemedicine Centre has been built. The Fraun- racic oncology and in in- hofer Society is dealing with issues relating to terventional broncholo- medical technology at several locations, such gy – or at the Munich as in Erlangen (image processing), Fuerth (X-ray Municipal Hospital technology) and Regensburg (tumourous and Group. What needs metabolic diseases). There are also technology to be observed during projects at the Bundeswehr University Munich, clinical studies is from sensor systems for prosthetic arms to often underestimated computer simulation for injecting bone cement. by developers. ”In the At the University of Passau, the Faculty of Com- first instance, they are puter Science and Mathematics is dealing with shocked”, confirms digital image processing for computer tomographs, Dr. Bernd Gebhardt, while the University of Augsburg has made a Manager of the Center name for itself with a legal research establish- for Clinical Studies (CCS) ment for medical device law. Further education at the Friedrich-Alexan- certificates can be acquired for this purpose at der-Universität Erlangen- the university’s Centre for Further Education Nürnberg. But he helps Within around 40 research projects interdisciplinary academic and Knowledge Transfer (ZWW) – a phenomenon the hospitals with the research and industrial partners are being brought together. Photos: © BVMed-Bilderpool, Fraunhofer IBMT which is unique in Germany. complex organisational, business-related and legal tasks. Support such as Clinical studies at a number of locations this is now attracting circles. Innovation hurdles in medical technology are not something that the experts have had to deal with Strategy concept for personalised medicine since VDI/VDE Innovation und Technik GmbH Key research principles are being developed in tackled this thorny issue with a study. Consul- Bavaria for the field of ”personalised medicine”, tancy and support in the case of clinical studies which may well usher in a profound change to are now gaining in significance. For studies such medicine and a new dimension of drug devel- as these, there are several starting points – pri- opment by way of an individual focus. This marily, but not limited to, the university hospitals applies, for instance, to the work undertaken in Munich, Erlangen, Regensburg and Wuerzburg, on depression by Professor Florian Holsboer, or the German Heart Centre in Munich. The who works at the Max Planck Institute of coordination serves as a ”Bavarian Network for Psychiatry in Munich, to the work examining Clinical Studies” (BayernNetz) with a branch the development of Herceptin (the only person- office at the university hospital Klinikum rechts alised cancer drug for many years) undertaken der Isar (on the right of the river Isar) in Munich. by Professor Axel Ullrich, who is now Director Clinical studies are thus to be made easier for of the Max Planck Institute of Biochemistry, or even smaller companies. Centres for clinical that of Professor Matthias Mann at the Max studies are also being run at several universi- Planck Institute of Biochemistry in Martinsried ties. The LMU is involved in an ongoing basis in near Munich, which looks into innovative tech- clinical and epidemiological studies, both in nologies for proteins. In the Munich Metropoli- individual hospitals and in establishments such tan Area, biotechnology and pharmaceutical as the "Clinical Study Center" (CSCLMU), the companies, hospitals and scientific institutes "Coordination Centre for Surgical Studies" (KCS) have come together with the cluster manage- or the Comprehensive Cancer Center (CCCLMU). ment company BioM for a strategy concept Clinical studies are also possible at the Munich entitled ”m4 – Personalised Medicine and Tar- Tumour Centre (TZM). The translation of results geted Therapies”. Within around 40 research from basic research and pre-clinical studies to projects, the work of interdisciplinary academic clinical practice is also being ascribed a great research and industrial, mainly medium-sized deal of importance at the Faculty for Medicine at partners, is being brought together. The respon- TU München, for instance at the Klinikum rechts sible company, BioM Biotech Cluster Develop- der Isar. The Helmholtz Zentrum München also ment GmbH, is working closely with partners at nurtures collaboration with industrial partners. universities and other research establishments, Clinical studies can also be conducted at other as well as service providers. Bavarian establishments, such as the Asklepios Fachkliniken München-Gauting – primarily in tho- Dr. Lorenz GoslichInvest in Bavaria 14
  • 15. BavariaThe highlight from ErlangenTesting directly in the hospital Small and medium-sized companies are often university hospital), the infrastructure of which faced with a mountain of problems when it can thus be used for external partners. The Test comes to testing new medical technology solu- and Demonstration Centre is situated directly on tions and devices. What has to be observed? the premises of the university hospital. Together What is to be documented? How do you obtain with the medical staff, the new innovations are approval? In Erlangen, there is help to overcome subjected to testing within everyday hospital life – the mountain: with "Metean". and if the worst comes to the worst, problems are discovered immediately. The findings are then All-inclusive – from the idea to marketing passed on to the relevant company without delay. The ”Metean” Medical Technology Test and Fast user feedback is thus catered for, such that Demonstration Centre of the Fraunhofer Institute no unnecessary time is wasted and relevant for Integrated Circuits (IIS) in Erlangen is a key ramifications can be drawn. The staff at Metean project within the Fraunhofer ”Personal Health” believe that they can help small and medium- cluster of innovation, which bundles different sized companies especially to overcome inno- competencies within the Fraunhofer Society. Its vation hurdles and to find a way through the statu- vision is to prevent illnesses through providing tory, regulatory, economic and technical regula- medical remote support. Healthcare research tions with their multitude of basic conditions. projects form the most important focal point of Metean’s work. Clinical studies are conducted in Highly personal: the tracksuit that instructs cooperation with hospitals, university institutes, its user health insurance firms and companies. At the In the Fraunhofer Institute for Integrated Circuits, fore are improvements the Image Processing and Medical Technology through use of telemed- (BMT) department is primarily devoting its icine systems and ser- energies to medical image processing, medical vices – both in the case sensor systems, medical communication and of the transition from biosignal processing. Indeed, the ”Hemacam” in-patient to out-pa- product, a computer-assisted microscope system tient treatment and for haematology, was developed at Metean. support, and in the case One example of the intensive work being under- of healthcare quality. taken on the topic of personalised medicine is The experts at Metean a so-called fitness companion, a sub-project of are aspiring to cover the ”FitForAge” Bayerischer Forschungsstiftungs- the entire chain of the verbund (Bavarian Research Foundation Associa- innovation and develop- tion). It is an intelligent tracksuit, which provides ment process, from the an individual health and fitness program, evalu- idea over feasibility ates the data measured, provides the user with analyses, tests and val- feedback on his activities and thus instructs him idations, to certification in gymnastic or rehabilitation exercises – in an and approval – and not entirely personal manner, as it were. To date, least rapid marketing. this suit has primarily been used in movement programmes for the elderly or rehabilitation pa- Fast user feedback tients. But in the future, it is also to be offered is catered for to young people, for games or virtual competi- The highlight at Metean tions, for instance. is close involvement inCampus of Friedrich-Alexander-Universität Erlangen-Nürnberg UniversitätsklinikumPhoto: © Friedrich-Alexander-Universität Erlangen-Nürnberg Erlangen (Erlangen Dr. Lorenz Goslich Invest in Bavaria 15
  • 16. Bavaria Pharmaceutical and medical technology companies in Bavaria Overview, trends and developments Representatives of both the pharmaceutical and Fantastic research infrastructure and the medical technology industry are companies excellently trained staff with an above-average level of commitment to A key tool during the development of new active research and development. With research ex- agents and drugs is testing them on individuals penditure amounting to more than 10 per cent as part of clinical studies. Here, Bavarian com- of company turnover, they are both innovation panies are benefiting from the fantastic research drivers and business drivers in equal measure. infrastructure and excellently trained staff in a In addition to numerous small and medium-sized well-developed network of in-patient and out- companies, global players such as Siemens patient medical care establishments. Over the Healthcare, Roche Diagnostics, GE Healthcare, last few years, there has been a further con- Novartis Pharma, Fresenius Medical Care or siderable increase especially in the number of GlaxoSmithKline are also represented in Bavaria approval studies performed in Germany during with research and production sites. the early phases I and II. Global players such as Novartis Pharma with just under 1,800 employees An attractive location for global players at the Nuremberg site have strengthened Ger- In the field of drug development, Germany shook many, where it is currently conducting around off its role as ”the world’s pharmacy” many years 180 ongoing studies, to make it the most impor- ago. Numerous so-called pharmaceutical giants tant clinical research location after the US. have relocated both their research and develop- The situation is a similar one for the German ment sites and their production facilities abroad. subsidiaries of the international pharmaceutical But it is a different situation in the area of prom- giants such as GlaxoSmithKline, MSD and Daiichi- ising drugs produced using biotechnology. Here, Sankyo, which also have their headquarters in Germany has established itself as the biggest the Munich Metropolitan Area. Beyond pure sales production site in Europe and, on a global subsidiaries, firms have increasingly been invest- scale, is the world number 2, following the US. ing in the expansion of their clinical research Companies such as Roche Diagnostics are re- sites over the last few years. sponsible for this development. Through making continuous investments in its Bavarian site in Medical technology from Bavaria: Leading Penzberg, Roche Diagnostics has expanded to position for electromedical devices become the Roche Group’s biggest biotechnolo- In the field of medical technology, Bavaria covers gy research, development and production centre around 30 per cent of Germany’s entire medical within Europe, with more than 4,500 employees. technology production. Electromedical device As a pioneer to a certain extent, Roche has production occupies a leading position, with a committed itself to personalised medicine as a share of more than 60 per cent. In addition to core element of its business strategy. Generally a multitude of small and medium-sized compa- speaking, the concept of personalised medicine nies, Siemens Healthcare (which has research, requires the patient to be characterised on the development and production sites in the Nurem- basis of so-called biomarkers, which allow for berg Metropolitan Area), one of the world’s said patient to be assigned to a patient group biggest suppliers in healthcare, is responsible for which tailored treatment is available. With for this. With more than 50,000 employees the regard to the co-development of diagnostics and world over, the company is a specialist in the treatment required for this, in Bavaria Roche is different areas of imaging and is the global benefiting from the group’s globally unique market leader in the magnetic resonance to- location, where research, development and mography (MRT) sector. In addition to computer production of the two business divisions, Phar- tomography (CT), MRT has established itself as maceuticals and Diagnostics, are combined. one of the most important imaging proceduresInvest in Bavaria 16
  • 17. Bavaria hoping to achieve an improvement in patient management in the case of early detection, di- agnosis and treatment and thus an associated reduction in healthcare costs. Efficiency and integration: The future of healthcare Achieving integration in healthcare is also the strategy of Fresenius, the world’s leading sup- plier of products and services for individuals with chronic kidney failure. More than every second dialysis machine in the world has been developed and produced at Fresenius’ Bavarian site in Schweinfurt. On the basis of this business field, over the last few years Fresenius has developed other divisions and is nowadays not just combining the development and production of medicine products and drugs, but also patient care with some hospitals and special clinics in an integrated healthcare group. On the way to allowing for the best possible healthcare within a restricted budget, the in- creasing integration of different areas fromBavaria as a pharmaceutical and medical technology location is occupying an excellent positionin the global environment medical technology and pharmaceuticals,Photos: © Archiv, Ioana Drutu diagnostics and treatment, is proving itself as and especially allows for the representation of a common strategy of large groups especially. soft tissue, such as that of the brain or internal The cooperation with different solution providers organs. At present, MRT is increasingly gaining from the area of modern communication tech- in significance in hybrid imaging, as a combi- nology is also playing an important role in this nation made up of MRT and positron emission development. tomography (PET). Due to the simultaneous measurement of morphology and function on Summary the one hand and metabolism on the other Bavaria as a pharmaceutical and medical hand, considerable advancements are possible technology location is occupying an excellent in the case of clinical diagnostics, as well as in position in the global environment and has the development of new biomarkers in person- extensive potential to consolidate and further alised medicine. Here, too, extreme technical build on this international leading position. efforts are required in order to render PET de- Accordingly, a large majority of companies are tectors usable within strong magnetic fields. rating the prospects for the future as positive – In addition to the continual further development based on the opportunities gleaned through new of its diagnostic systems and devices, Siemens markets, demographic development, a high level Healthcare is pursuing a long-term strategy for of innovation and the outstanding reputation of the future by merging patient data from imaging ”Made in Bavaria” healthcare products. and laboratory diagnostic procedures using its own in-house IT systems. The company is Ilja Hagen Invest in Bavaria 17
  • 18. Biotech in Bavaria ”Willingness to found companies is spreading like a virus” Interview with Prof. Dr. Axel Ullrich, Director, Department of Molecular Biology, Max Planck Institute of Biochemistry (MPIB) Professor Ullrich, can you briefly introduce who today manages BioM Biotech Cluster Devel- the MPIB and the focal points of its research? opment GmbH, had a laboratory at the MPIB We are part of one of the most successful and played a decisive role in establishing mo- research organisations in Germany, the Max lecular-biological methods. And, I suppose, my Planck Society. Within our institute, eight past experiences in the first Biotech company in departments and more than 30 research groups the world, Genentech, also helped. I think that a contribute to the latest findings in the areas of certain role model function was assigned to me, biochemistry, cell biology, structural biology, which inspired others. What’s more, the Max biophysics and molecular science. The classic Planck Society has also provided the premises Prof. Dr. Axel Ullrich is research areas of our institute are developing on which the Martinsried Biotechnology Innova- director of the Department increasingly in the direction of structural and tion and Startup Center is located. of Molecular Biology at MPIB and a pioneering system biology, genetics and new imaging Biotech-entrepreneur. methods – bioinformatics is playing a major You founded three companies within role, too. Basic biomedical research is another Martinsried, including Kinaxo GmbH, important aspect, as faults in cellular signal which was recently sold to Evotec. How transmission or defective protein structures can would you evaluate the founding environ- result in illnesses such as cancer, diabetes or ment in Bavaria? Alzheimer’s. The work of our scientists thus also For some time now, I have had the feeling helps to better under- that among scientists, the willingness to stand the development found companies is spreading like a virus. It of these illnesses and is unbelievably exciting to watch. Prof. Domdey, forms a basis for new who acts as a promoter and advocate for the therapy strategies. Munich and Bavaria region, is largely responsi- ble for this. The environment for founding com- What significance panies is very good. Academic and non-academic does the MPIB have research establishments, founder centres and for the German university hospitals are situated in direct prox- biotechnology sec- imity to one another and are in regular con- tor? tact. I myself recently co-founded a company I think an important again and I am also considering another com- one. Some MPIB em- mitment. ployees played a cen- tral role in the develop- You often travel abroad due to your profes- ment of the sector. In sional activities. What strengths do you the Seventies, Prof. consider Bavaria as a location to have in Peter Hofschneider, for an international comparison? instance, was one of One of the biggest strengths of Bavaria as a the first founders in business location is the political support. When the area of biotechnol- players from politics recognise economic poten- ogy at European level. tial, they work consistently on tapping into this Prof. Horst Domdey, potential, too. I personally was therefore not who was greatly in- surprised that the German biotechnology adven- volved in expanding ture started in Bavaria. Located in Munich/Martinsried – Max Planck Institutes of Biochemistry and Neurobiology. the biotechnology loca- Photos: © Max Planck Institute of Biochemistry tion of Bavaria and The interview was conducted by Martin Bellof.Invest in Bavaria 18
  • 19. Biotech in BavariaFit for the Medicine of the FutureFocus on ”Personalised Medicine” in Munich Despite enormous medical progress, the effec- come the high efficiency and safety hurdles given tiveness of many medications is hugely limited. by the regulatory authorities. Even for the most common medical drugs, such as those against hypertension, the desired ef- Source of Inspiration for the Entire Region fect fails to appear for more than one third of More than 100 biotechnology companies and the patients. The reasons for this are the differ- academic groups work in Munich’s m4 consortium ent biological causes of illnesses and the diver- on 40 research and development projects spon- sity of the medically relevant dispositions as sored by the federal ministry BMBF. ”The projects well as the life circumstances of each individual. turned out to be a source of inspiration for the These diverse individual factors define whether entire region and have strengthened Munich’s a medicine takes effect, shows no effect at all profile as a top site for innovative drug develop- or even shows undesirable side effects. ment“, announces Prof. Domdey with pride. ”Fur- thermore, several comprehensive infrastructure Munich Leading-Edge Cluster m4 projects improve the framework conditions.” The Munich Leading-Edge Cluster m4 has set itself the task to develop effective and safe m4 Biobank Alliance medications for serious illnesses such as cancer, In order to discover new biomarkers and statis- cardiovascular diseases or autoimmune diseases tically prove their medical relevance, human biospec- on the basis of personalised medicine. Person- imens are required, especially tissue from sources alised medicine pursues the strategy that a such as tumour biopsies that are linked to the clin- more detailed molecular diagnostic prior to the ical data of the anonymous donor. In the m4 Biobank drug administration can lead to a better assess- Alliance, the Technische Universität, the Ludwig- ment of which substance is suited best for Maximilians-Universität and the Helmholtz Zentrum which patient. With an accompanying diag- joined forces for a more efficient use of their bioban- nostic product that tests so called biomarkers, king resources. Scientists as well as the researching the patients are categorised in specific sub- pharmaceutical and biotechnology industry benefit groups of diseases (“stratified”). Afterwards, from the joint quality standards and a central access. each group is treated with a specific therapy if available: currently, m4 Trial Service CenterPersonalised Health Care - how it works only 26 ”personalised” Biomarkers offer new challenges, but also newSource: m – Personalized Medicine in Munich, Bio Biotech Cluster Development GmbH 4 M therapy options are chances for the implementation of clinical trials: approved in Germany, on the one hand, the study becomes more com- the main share of them plex; on the other hand, biomarkers can help in the field of oncology. stratify patients and allow statements on which ”However, the inter- patient groups would specifically benefit from Biomarker Diagnostics national pharmaceu- therapy. The design of such biomarker-driven tical sector shows a clinical trials is the focus of the m4 Trial Service clear trend towards Center. Here, companies receive advice and personalisation”, says expertise on the topic of biomarkers – from the Prof. Domdey, the design of the study to the approval. These and Personalised Health Care speaker of the Lead- other projects, such as those for training and ing-Edge Cluster m4. technology transfer, help to make the Munich Only with clearly de- location fit for the medicine of the future. fined patient groups is it possible to over- Dr. Georg Kääb and Dr. Almut Graebsch Invest in Bavaria 19
  • 20. Biotech in Bavaria Land of the Biotech Pioneers Innovation in Bavaria comes from small and medium sized enterprises Thanks to a multitude of small and medium-sized One of them is the excellent scientific infra- companies within an environment characterised structure with its renowned research institutes by entrepreneurial spirit, Bavaria has turned and further education establishments. Indeed, into an exciting location for the biotechnology the universities in Munich, Regensburg and sector in Germany. Wuerzburg are affiliated to both the Max Planck Institutes and the Helmholtz Zentrum Excellent Culture of Innovation München. Intensive exchange between science In Bavaria, a great deal of importance is attached and companies, which are promoted by the to creativity. For more than two decades now, Bavarian Ministry of Economics and to which – young innovative companies – often created not least – the subsidiaries of renowned phar- as spin-offs of scientific institutions – primarily maceutical companies also make a consider- in the area of red biotechnology have been able contribution, is being pushed forward by pushing a development which becomes mani- regional clusters and national networks. Bavaria fest in impressive figures. The companies – has not only turned the resultant culture of in- 166 in total – today account for more than novation into a hub, but also to a biotechnology 30 per cent of all small and medium-sized driver in Germany. The more than 80 potential businesses in Germany, and time and again, treatment candidates at an advanced clinical they attract the attention of investors. Bavaria trial stage and a wealth of pre-clinical studies thus received almost half of Germany’s national are testament to this. But the many small and venture capital provided for biotechnology in medium-sized companies are increasingly 2011. In the same year, the federal state was capable of earning money, too. During the the only region in which international compa- time from 2008 to 2011, they increased their nies within the sector had set up shop. And turnovers by 30 per cent to more than EUR 510 there are good reasons for this development. million, while at the same time the number of Product pipelines of 4SC, Antisense Pharma, Morphosys and Wilex Source: own research Phase III Phase II Phase I Preclinical Research 0 5 10 15 20 25 30 4SC Antisense Pharma Morphosys WilexInvest in Bavaria 20
  • 21. Biotech in Bavaria individuals employed within the sector grew of drugs. Through alliances with the world’s from around 3,400 to more than 4,000 members most significant pharmaceutical companies, of staff. Income from partnerships and licence Morphosys has built up an extensive pipeline agreements with large pharmaceutical and Biotech of more than 70 potential drug candidates – for companies also contribute to the generation of treating cancer, rheumatoid arthritis and Alzheimer’s turnover, as do revenues from the provision of to name but a few examples. The partnerships know-how and services based on independently and the marketing of in-house technologies developed technology platforms. nowadays allow companies to completely self-fund their own research activities and to Commercially Successful, Too generate stable operating profits. A key foun- One of the flagships of the location is the dation for this development is the Human antibody specialist Morphosys AG, which was Combinational Antibody Library (HuCAL), founded two decades ago and has its head- which has been built up over the years. As one quarters in Munich. In 1999, it was the first of the many highlights in the company’s history, German Biotech IPO to successfully make the in spring 2012 Morphosys recorded the first ever jump to the stock exchange and it has leading further development of a HuCAL antibody for the technologies, which are used for research pur- treatment of Alzheimer’s patients in an approval- poses, in diagnostics and in the manufacture relevant study.”IZB will continue to grow”Interview with Dr. Peter Hanns Zobel, Managing Director, IZB GmbHDr. Zobel, can you briefly introduce IZB? Since IZB was founded, around 50 companiesIZB was founded back in 1995. Its objective is to have left. Most of them are successful evenprovide founders of biotechnology start-ups with today. Nowadays, two companies that origi-the required building infrastructure. To this end, nated in Martinsried stand out especially.we offer laboratories and offices with flexible Firstly, there is Micromet, which was takentenancy agreements. IZB has experienced strong over by Amgen for USD 1.2 billion, and sec-growth since it was founded. On a total surface ondly, there is Corimmun, for which Johnson &area of more than 23,000 m² at the Martinsried Johnson, an American pharmaceutical firm,and Freising-Weihenstephan sites, we presently paid USD 100 million. When correspondingaccommodate just under 60 companies. Beyond milestones are reached, this sum can even Dr. Peter Hanns Zobel is thethe infrastructure, we also arrange contacts within more than double. Managing Director of theour far-reaching network of scientists, companies Biotechnology Innovation andand investors and devote our energies to our What do you imagine IZB will be like in Startup Center (IZB) with sites in Martinsried and Freising.tenants at trade fairs and events. ten years? By 2022, our campus will have continued toWhen do your tenants leave IZB? grow and will have turned into the best bio-Generally, we plan with a period of around five tech location in Europe. The connection theto seven years. By then, the companies have for underground railway, which will be completedthe most part reached a size which would go be- by then, and a boarding house will further im-yond the scope of IZB’s walls. But because labo- prove the infrastructure of our campus. Theratory space is thin on the ground on the com- ”faculty club” in our boarding house will allowmercial property market, in individual cases we for more intensive exchange in the campusalso accommodate companies beyond this time. network and make it even more prolific. I also firmly believe that by then the first BiotechWhat success stories can trace their roots blockbuster from Martinsried will have comeback to IZB? into being. Invest in Bavaria 21
  • 22. Biotech in Bavaria Growth-Oriented Strategies In addition, many of the other initial founders have expanded their business models over the years and developed promising growth strategies. For instance, Wilex AG, which is researching differ- ent types of cancer in the area of detection and targeted treatment and was created from a clinical group of researchers at TU München, nowadays generates turnover amounting to the millions and still on the increase. One of most advanced products of the product portfolios is an imaging diagnostics tool named Redactane. This tool serves to better distinguish between benign and malignant kidney tumours. But Wilex has also purposefully expanded its spectrum of services by way of acquisitions and it offers Morphosys was founded two decades ago. Today the antibody specialist services relating to pre-clinical contract research. can be seen as a flagship for Germanys biotechnology industry. Photo: © Morphosys AG A large portion of the turnovers already gener- ates comes from US licence agreements for the potential Rencarex product which aims to synergies through a multitude of projects. One prevent metastases in the kidneys. A successful of these companies is 4SC AG, which is based increase in capital, which was achieved only at IZB Martinsried and has created a large recently, provides evidence of the trust investors pipeline for drugs to treat cancer and autoim- place in the company, which is also listed on the mune diseases. This results in continually stock exchange. growing income. To this end, 4SC is concluding licence agreements with partners from the Efficient Use of Financial Resources pharmaceutical and Biotech industries starting Time and again, Biotech companies are show- from a particular phase, so that it can then ing that it is possible to widely distribute the tackle the final clinical phase and the market development risk and, at the same time, exploit launch together with the partners. An example Shareholder structure of 4SC, Antisense Pharma, Morphosys und Wilex Source: own research Company Selection of significant investors Listed company Free float* 4SC** Santo Holding (48,1 %), FCP (9,91 %), DVCG/VCG (6,13 %), yes 24,50 % Heidelberg Capital (5,86 %) Antisense Pharma*** MIG Verwaltungs AG, S-Refit, gcf - Global Chance Fund, no – GAF – Global Asset Fund, kfw Mittelstandsbank, Bayern Kapital Morphosys Novartis Pharma (ca. 7 %), Astra Zeneca (ca. 5 %) yes ca. 88 % Wilex dievini Hopp Bio Tech Holding (31,16 %), Verwaltungsgesellschaft yes 30,81 % des Golf Club St. Leon-Rot (12,85 %), UCB (15,71 %), TVM Capital Fonds (4,5 %), Merlin Fonds (3,44 %) * Free float as defined by Deutsche Börse ** management estimates *** percentages not givenInvest in Bavaria 22
  • 23. Biotech in Bavaria of this is the licence agreement concluded with clinical studies, in order to reach the aspired the Japanese partner Yakult Honsha in 2011 for milestones for a multitude of indicators quicker. the purpose of commercialising the cancer drug This reduces the corporate risk and, at the same Resminostat; this agreement outlined terms for time, increases the opportunities for successful the revenues from advance payments, milestone partnerships and lucrative licence agreements. payments and subsequent commissions. Through the subsidiary 4SC Discovery GmbH, the company Sights Set on International Companies also markets its know-how as a service provider But the innovative force of the Biotech compa- for the pharmaceutical industry. Thanks to a nies has not only been capturing the interest of capital increase, 4SC was recently also able to cooperation partners of late. Increasingly, the secure additional funding. international pharmaceuticals industry is also prepared to acquire the ideas developed in Attractive for Risk Capital Bavaria by way of purchasing entire companies. With the help of venture capital and private in- An outstanding example of this is the takeover of vestors, Antisense Pharma GmbH based in BioPark CorImmun GmbH, which is based in Martinsried, Regensburg is developing innovative drugs to fight by Janssen-Cilag GmbH, a subsidiary of pharma- against aggressive tumour-induced diseases. In ceutical giant Johnson & Johnson. Although the doing this, the company is relying on the immense heart failure treatment projects being realised by potential of the active ingredient Trabersen, which the Biotech start-up, which was only founded in can assist the human immune system in fighting 2006, are still in an early trial phase, the pharma- tumours and simultaneously inhibit the spreading ceutical giant effected the complete takeover in of cancer cells. The company, which was founded summer 2012 to the tune of USD 100 million in 1998, has already been recognised with the according to media speculation. And this certainly Deutscher Gründerpreis (German Business Founder isn’t an isolated case. Four years beforehand, Award) and the Bayerischer Innovationspreis the second-biggest Japanese pharmaceutical (Bavarian Innovation Award) and to date, it has company, Daiichi Sankyo, was prepared to pay collected more than EUR 90 million in venture the handsome sum of EUR 150 million to purchase capital. For the venture capitalists, it is an inter- U3 Pharma AG. The takeover of the company, which esting investment, because Antisense Pharma is specialises in researching monoclonal antibodies specifically focusing on pre-clinical and early and which was founded based on research results of the Max Planck Institute of Biochemistry in Martinsried, allowed for the further development of promising cancer treatments. Looking Optimistically to the Future International companies’ interest in the Bavarian Biotech sector shines a light on what the many smaller and medium-sized companies have to offer in terms of creativity and implementability. With their innovative clout in an extraordinary environment, they will also attract the interest of investors from all over the world in the future. The latest example of this is the newly-founded subsidiary of the US venture capital specialist MPM Capital in Munich. From the metropolis on the Isar river, the life science investor is wanting to look out for suitable investment opportunities inCreated from a clinical group of researchers at TU München, Europe.Wilex AG today generates growing seven-digit turnovers.Photo: © Wilex AG Norbert Hofmann Invest in Bavaria 23
  • 24. Biotech in Bavaria ”It is important that business models are scalable” Interview with Helmut Jeggle, Athos Service GmbH, and Michael Motschmann, MIG Verwaltungs AG Athos Service GmbH, which is owned system, and we have expanded our portfolio to by the Strüngmann brothers who founded include our latest shareholding, Affiris in Vienna. Hexal, and MIG Fonds are counted among The challenge for us is to optimally supervise the most important venture capitalists in this portfolio using the required resources and the German Biotech industry. How many assistance. In our partnership with Affiris, we companies from the life sciences sector are increasingly concentrating on advanced do you currently have shares in, and how phase II projects. much have you invested to date? How Motschmann: Because we regularly invest from will you continue to build on your com- new funds, we are constantly on the lookout for Michael Motschmann is a mitment? new investment opportunities. But to all intents member of the MIG executive Jeggle: At present, we have shares in 12 life and purposes, these can indeed come from the board. He is responsible for science companies and in total, we have invest- portfolio of another MIG Fonds company. Gener- the selection and supervision of investments. ed or committed just over EUR 700 million. We ally speaking, companies are developing further are currently devoting more of our energies to at a rapid pace. A portfolio company from an ”old” the corporate development of the more mature fund may well be a completely different company portfolio companies and we are only having an today than it was at the time when the initial opportunistic look around for new shareholding investment was made, not just in terms of its opportunities. degree of maturity, but also with regard to the Motschmann: To date, MIG Fonds have invested residual risk, the remaining holding period and around EUR 225 million in 18 life sciences com- of course the anticipated return. As far as the panies. There are always attractive life science basic technologies and sectors are concerned, investments in our shareholding pipeline, but we are fairly opportunistic. It is important that these are in competition with other shareholding business models are scalable, ideally have a opportunities from other sectors. global dimension and satisfy long-term require- Mr. Helmut Jeggle is respon- ments, such as the topics of health, resources sible for the life science ini- What investment strategy are you pursuing? and mobility. tiatives at ATHOS Service GmbH, the Family Office of Which companies are you interested in? the Strüngmann brothers. Jeggle: As a family-owned firm, we tend to From an investor’s perspective, how do think more in terms of generations. It is thus you rate Bavaria as a Biotech and medical important for us to technology location? Types of investors and their identify partners Motschmann: For us, the location of Bavaria that suit us and are is very attractive, which is also reflected in our participation in financing rounds ready to tread new portfolio. At present, we have shares in some Source: Ernst & Young, 2012 paths with us. Over companies in the two metropolitan areas of Venture Capital (Germany) the last 5 years, Munich and Nuremberg-Erlangen. The two Venture Capital we have built up cluster management hubs do a good job, (foreign countries) a demanding port- especially in relation to rapid integration of Corporate Investors folio in the area of start-ups. This in turn results in brisk exchange biotechnology. Here, among companies and enables synergies. Private Investors the focal point has The fact that not only is there excellent basic been the area of science in the direct vicinity of the clusters, Family Offices personalised medi- but also the headquarters of large companies, Funds for cine in oncology. certainly boosts the attractiveness of the loca- Private Investors But we have also tion further. Savings banks and governmental promotion tools tested other indica- tions, such as the The Interview was conducted in % 0 10 20 30 40 50 60 70 central nervous by Markus Hofelich.Invest in Bavaria 24
  • 25. Biotech in Bavaria”Since 1998, approximatelyEUR 2 billion have been investedin site expansion projects”Interview with Claus Haberda, Site Manager, Roche PenzbergHow did it come about that Penzberg is now active ingredients. This reinforces Penzberg’sthe largest biotechnology centre in Europe name as the ”Centre of Excellent for Therapeuticand one of the most important biotechnolo- Proteins”. As a general principle, large investmentsgy sites of the Roche Group worldwide? are discussed in the Roche Group; initially inde-The birthplace of industrial biotechnology is regard- pendent of a location and based on their necessity.ed to be in Tutzing at Lake Starnberg. In Tutzing, the Penzberg must always request these investmentscompany Boehringer Mannheim began focussing and they are therefore keen to impress with theirits efforts on researching and developing new high levels of productivity and excellent innovativebiochemical methods to aid disease diagnosis strength.after tWorld War II. From 1972, this company Claus Haberda is Site Manag-division in Penzberg embarked on a further What role does personalised medicine play er at Roche in Penzberg.expansion project. A former mine site provided today and in the future for Roche? What arethe ideal area for increasing the company’s pro- Roche’s special strengths and the strengthsduction capacities. Since then, there have been of the Penzberg site in particular in this area?constant investments in the Penzberg site – in- We are fully convinced that the future lies in per-vestments in research, development and the pro- sonalised medicine. It is precisely for this reasonduction of medicines and diagnostics. Knowledge that it represents a key element of the Rocheof biochemistry extends from the time of classic strategy. In Penzberg, scientists from the diag-biotechnology to today’s modern biotechnology. nostics and pharmaceutical sectors are workingSince Roche’s takeover in 1998 alone, approxi- in close collaboration on new therapies. Thismately EUR 2 billion have been invested in the generates synergies which are not evident at othersite’s expansion, which in fact is one of the largest Roche sites.biotechnology centres in Europe to date. More-over, employee expertise and their enthusiasm for Generally speaking, how do youwork, networking of the pharmaceutical and diag- view the biotechnology and phar-nostics business areas in the context of person- maceutical sector in Bavaria?alised medicine, reliability when implementing The Bavarian state has introduced ini-projects and, last but not least, close collaboration tiatives that promote both high-qualitywith politicians and authorities are all absolutely training (MINT initiative, elite universi-essential for success. ties) and cross-linking between science and industry (Leading-edge clusters,Roche continues its expansion venture of the IZB Martinsried and Bayern Innovativ).biotechnology site in Penzberg. In 2011, the Politics in Bavaria has also laid goodSwiss pharmaceutical company invested EUR foundations for high-tech companies,158 million in the research and development which has resulted in Bavaria’s biotechof therapeutic proteins. What objectives are industry being ranked among the bestyou currently pursuing? What other invest- worldwide. However, we must continuements are planned in Penzberg? to ensure that research and developmentThis investment is of great significance as it com- in particular remain attractive in Germany.pletes the value-added chain at the Penzberg site; Furthermore, I am of the opinion thatfrom research previously carried out to technical the detrimental effects of the health-development and the production of biopharma- care reforms for the pharmaceuticalceutical active ingredients to be launched on the industry should also be discussed inmarket. The objective was to improve the devel- the context of job security. Constant investments through Roche as well as good foundations laid by politics in Bavaria madeopment of production processes for protein-based Penzberg one of the biggest Biotech locations inactive ingredients and the availability of pre-clin- The interview was conducted by Europe.ical and clinical studies which use biotechnological Markus Hofelich. Photo: © Roche Penzberg Invest in Bavaria 25
  • 26. Biotech in Bavaria ”The acquisition of Micromet is the largest single investment Amgen has ever made” Interview with Richard Paulson, VP & General Manager, Amgen GmbH in Germany Mr. Paulson, this year, Amgen acquired therapies, to help patients with cancers that are Micromet for USD 1.16 billion. It was the insufficiently treatable today, and for whom other largest ever transaction involving a Ger- medicines are not working. For example, the man biotechnology company. What makes molecule blinatumomab is in development right Micromet so special? now for a type of blood cancer – acute lymphoblas- Amgen has always been committed to developing tic leukemia (ALL) – for patients who have ex- the most innovative new medicines, based on the hausted all other treatment avenues. In clinical most advanced understanding of disease states, studies, this drug has also shown to be active in to treat patients with serious illnesses. Micromet some patients with non-Hodgkin’s Lymphoma, Richard Paulson is had brought excellent scientists together, and built as well as those with ALL. The BiTE technology VP & General Manager at a promising late-stage cancer drug pipeline, as takes a new approach to treating cancer. It aims Amgen GmbH in Germany. well as an R&D engine with the potential to to enable a patient’s own natural defenses – the generate many more cancer drug candidates well immune system – to mobilize the body’s T cells into the future. We believe the Bispecific T cell to reach cancer cells, attack them, and induce Engager (BiTE) antibody technology developed by apoptosis (programmed cell death) of just the Micromet is one of the most exciting platforms in cancer cells. If successful, this should result in the world, to develop safe, effective new medi- medicines that are both extremely effective in cines for cancer patients. Amgen and Micromet fighting tumours, and also safe and well-tolerated were an excellent fit, given our people and our by patients. BiTE is a unique, innovative and corporate cultures, both of which were science- clinically confirmed platform. And Amgen’s skill based and values-driven. We wanted to put Mi- in developing and manufacturing complex bio- cromet’s science and people right at the heart of pharmaceutical treatments will advance this Amgen’s continuously growing R&D efforts, and technology, with the potential to benefit millions that’s exactly the role they will play, as the new of patients around the world. Amgen Research (Mu- nich) GmbH. This is How important is the German market for the largest single in- Amgen in terms of R&D and sales? vestment Amgen has Germany is vital to the future of Amgen, and we ever made, and it sig- have a strong and growing presence here. With nals our commitment to Amgen Research in Regensburg and Amgen pursuing the very best Research in Munich, we are the only global Amgen medical science, both affiliate with both research and clinical facilities. through our in-house That’s a testament to the strength of medical R&D capabilities, and science and R&D in Germany. At the moment through technologies we have approximately 100 active studies under and compounds from way across Germany. In Germany we are the partners around the leading Biotech company delivering new and world. innovative medicines to treat serious illnesses such as cancer, osteoporosis and kidney diseases. What is the potential We are proud that we have introduced three you see for Amgen, new products in the last two years for the indi- from the BiTE tech- cations skeletal-related events, metastatic nology platform? colorectal carcinoma and osteoporosis. With BiTE, we see the With sites in Regensburg and Munich, Germany is Amgen’s only global affiliate with both research and clinical facilities. potential for a whole The interview was conducted Photo: © Amgen GmbH, Deutschland new generation of novel by Markus Hofelich.Invest in Bavaria 26
  • 27. MedTech in Bavaria”A win-win situation for both sides; theeconomy and university research”Interview with Prof. Dr. Willi A. Kalender, Director, Institute for Medical Physics(IMP), Friedrich-Alexander-Universität Erlangen-NürnbergProfessor Kalender, you have been the Di- funding is only guaranteed for research projectsrector of the Institute for Medical Physics when industrial partners are also involved andsince its establishment in 1995 – What sets are willing to meet at least 50 per cent of the coststhe institute apart? incurred. In the medical technology sector, thisThe decisive characteristic of the IMP is probably approach has proven to be successful over a periodits close collaboration with industrial partners for of many years and it was once again reaffirmedvirtually all research projects. Moreover, as a result by the establishment of the Medical Valley Clusterof the activities of our institute, research organi- which was funded by the German Federal Ministrysations have been birthed in Bavaria, nation-wide of Education and Research (BMBF). The universityand throughout Europe, which are heavily sub- is represented in a large number of funded projects; Prof. Willi A. Kalender issidised. Even from today’s perspective, the decision a win-win situation for both sides – the economy Director of the Institute forof the Universität Erlangen-Nürnberg to set up the and university research. Medical Physics at the Friedrich-Alexander-Univer-IMP was also a stroke of luck for me personally. sität Erlangen-Nürnberg,This allowed me to freely choose research topics, You often travel on business to the USA. as well as founder andcontact any competence partners and launch What are the strengths of the Bavarian managing director of CT Imaging GmbH, Erlangen.cooperative ventures with the industrial sector. region when compared internationally? In my opinion, the level of education representsWhat have been the most ground-breaking a particular strength of the Bavarian region. Inresearch results of your institute to date? Bavaria and Germany as a whole, an excellentHere I would simply like to mention Cardio-CT and professional and vocational education systemefforts to reduce the radiation dose in computed has been established for many years. However,tomography. Cardio-CT, i.e. the non-invasive this is unfortunately not taken into account inexamination of the heart which uses computed international comparisons. Generally the numbertomography, is based on spiral CT technology; of university graduates is recorded but not thetechnology which I developed during my time at quality of their degree results. Moreover, voca-Siemens where I was able to demonstrate its scope tional training is rarely considered. Our specialisedfor heart imaging. The method was first fully im- staff – technicians, precision mechanics, mecha-plemented and clinically tested in the university tronics technicians etc. – have undergone excel-environment in direct cooperation with cardiologists lent training in both handicraft and vocational workand radiologists. Moreover, the concepts of dosis by international standards.reduction with tube current modulation and auto-matic dose stabilisation, which were developed in The interview was conducted by Martin Bellof.the late 1990s, are based on spiral CT technologyand were first used at the Universität Erlangen. Evolution of third-party funds raised by IMPToday, both methods are used around the globe. Source: IMPCollaboration with Siemens was crucial in both 2.5cases and a great success for all those involved. Volume of third-party funds raised 2.0 Examples for significant IMP research projectsThe university is part of the Medical Valley EUR millionin which around 180 dedicated medical 1.5technology companies are located. What 1.0makes the combination of research and FP 7/Breast CT (Europäische Union)business stand out? FP 6/EU Dose 0.5 (Europäische Union)The climate in Bavaria in this respect has been very FORBILD (Bay. MEDBILD (Bay. orthoMiT Forschergruppepositive for a long time; the guidelines provided 0 k.A. Forschungsstiftung) Forschungsstiftung) (BMBF) FOR661 (DFG)by the Bavarian Research Foundation mean that 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Invest in Bavaria 27
  • 28. MedTech in Bavaria Trendsetter for health Small and medium-sized companies are driving forward advancement in medical technology Be it computer tomographs or highly sensitive of interest with regard to venture capital, recording measuring devices, high-tech implants or laser capital inflows of EUR 66 million and a total of applications, Bavaria occupies an internationally 77 investments. leading position in numerous key technologies within the field of medical technology. It is prima- Pioneers and market leaders rily the more than 250 small and medium-sized Medical technology in Bavaria therefore also companies which are time and again pushing has a good reputation, because it can demon- forward this development and are reinforcing strate ground-breaking successes in many areas. the location’s leading role within Germany. One of these renowned pioneering companies is Peter Brehm GmbH, which is based in Weisendorf. Innovative companies in an excellent In the middle of the 1980s, the company devel- environment oped a cement-free hip implant made from Bavaria is synonymous with almost a third of titanium together with the Accident Surgery medical technology production and even with department of Friedrich-Alexander-Universität more than 60 per cent of electromedical device Erlangen-Nürnberg. During the same decade, production in Germany. The companies are also the company made a splash with the artificial successful on the global markets with their in- replica of a knee joint, and a decade later there novations, achieving an export rate of around followed the first robot-suitable hip implant. At 70 per cent, and are presently a key economic the start of this millennium, the company ulti- factor with more than 30,000 employees. Indeed, mately created a new quality level with regard the trend appears to be climbing further. In to the durability of artificial joints with the clinical Medical Valley European Metropolitan Region introduction of the Brehm precision knee system. Nuremberg alone, around 100 new companies This was also met with resonance on an inter- have been founded since 1998. In their research national level. In the case of the hip revision projects and developments, they can count on implants, which enable the exchange of individual the proximity to more than 65 hospitals, more parts, the pioneers from Franconia have long since than 70 chairs at universities and universities of been the market leaders in Europe. applied sciences and 20 non-academic research institutes. In addition, the university hospitals Innovations in the area of imaging devices for in Munich, Regensburg and Wuerzburg are use in ultra-modern operating theatres also synonymous with the scientific potential of the have a long-standing tradition in Bavaria. Ziehm location. No less important are institutions such Imaging GmbH based in Nuremberg, for instance, as the German Aerospace Centre and the Fraun- was founded 40 years hofer and Max Planck Institutes. The companies ago and since then it benefit in the case of all the cross-sector and has pushed develop- cross-technology cooperations, which are pur- ment in mobile X-ray posefully promoted by the Forum MedTech Pharma technology to the fore. network created by the Bavarian Ministry for In 2006, the Franconian Economic Affairs. Last but not least, the sector’s firm thus positively rapid start-up scene is enjoying a disproportion- ushered in a new im- ately high level of commitment from venture aging era with the capitalists, whereby publicly financed seed funds first fully digital, mo- play just as important a role as private investors. bile C-arm. Ziehm Im- National figures confirm the significance of med- aging is being spurred In 2008, Human Optics launched the first foldable artificial iris on the market and thus helped individuals with eye problems ical technology. In 2011, it was counted among on by its own innova- to enjoy improved sight again. the three sectors that attracted the greatest level tive force, by investing Photo: © HumanOpticsInvest in Bavaria 28
  • 29. MedTech in Bavaria 15 per cent of its turnover in research and countries, the optical specialist can in the future development each year. even benefit from the above-average opportunities for growth in Asia. Prospects such as these make Demand from all over the world investors prick up their ears, too. In February 2012, HumanOptics AG, which was founded in 1999 in the Swiss holding company Medipart AG became Erlangen, is synonymous with innovations in the the majority shareholder. area of optical medical technology. Seven years after it was created, the company, which was Successful service providers initially financed with venture capital, made the Bavarian medical technology hasn’t just created jump to the Frankfurt stock exchange. In 2008, efficient networks. Service providers, which help HumanOptics then made the professional world other companies in developing and producing marvel, as it launched the first foldable artificial innovations, have also sprouted. One of these iris on the market and thus helped individuals providers is Corscience GmbH & Co. KG based with eye problems to enjoy improved sight again. in Erlangen, which was founded at the start of The company also produces intraocular lenses, the millennium and primarily focuses its energies which are used in treating cataracts. Here, the on the development of diagnostic and treatment estimated market growth lies at six to eight per devices for cardiovascular diseases. In addition to cent yearly and the lenses are therefore growing the services, the B2B company offers completed in significance as an alternative to laser treat- basic technologies as well as production of devices ments. With its sales network in more than 40 on customer order. One of its latest developments”The location can compete with internationalleading centres”Interview with Dr. Peter Terhart, Chairman, S-Refit AGDr. Terhart, what makes Bavaria as a loca- treatments for neurological diseases such as de-tion for medical technology so special and pression, pains and epilepsy. There is still an im-thus interesting to investors, too? mense requirement for this on a global scale. Aceos,The research and medical treatment infrastructure which is based in Fuerth, is synonymous with thethat has grown over the years is just as much an trend towards preventative measures in health-international example as the corporate landscape care. Among other things, it has developed a newin the sector of medical technology. Furthermore, measuring device for efficient endurance training.the Free State’s high-tech offensive has usheredin a key development process. It is indeed a marathon Can you help the companies beyond theas opposed to a sprint. But even now, the location start phase? Dr. Peter Terhart is headingcan compete with international leading centres. A nucleus is created with us in Bavaria, both in S-Refit as sole member of theKey reforms in patent systems have contributed BioPark Regensburg and in Medical Valley EMN. Management Board. He is also Chairman of the Board of theto this, as has the foundation of an organisation Afterwards, the companies have to strike out on German Private Equity andfor better commercial exploitation. This is the base their own at some point. If we, together with Venture Capital Association.on which leading research thrives and this attracts Sparkasse Erlangen, invest through medTECHinvestors. Capital Fonds which was initiated by Sparkasse Erlangen, we want to make the companies at-Which areas are companies, in which tractive to other investors, too. And that works.S-Refit is currently invested, operating? Generally speaking, we are currently recording,One of the most interesting examples is Cerbomed, among other things, a high level of interest inwhich is based in Erlangen. By way of nerve simu- Bavarian companies on the part of large medicallation with electrical pulses, it is developing new technology funds from Switzerland. Invest in Bavaria 29
  • 30. MedTech in Bavaria Product focus of selected MedTech-SMEs Source: own research Company Product focus Founded Ziehm Imaging GmbH Mobile X-ray based imaging – focus on intraoperative imaging and 1972 innovative X-ray technology Peter Brehm GmbH Spine-, hip- and knee-implants 1981 CT Imaging GmbH Medical Imaging and Image Processing – focus on Computed Tomography systems 1997 including Micro-CT Human Optics AG Ocular implants – focus on intraocular lenses, Add-on lenses and artificial iris 1999 Corscience GmbH & Co. KG Cardiovascular therapy and diagnostics – focus on vital parameter sensor systems, electro- 2001 therapy, algorithm, wireless transmission technologies as well approval and production Cerbomed GmbH Neuromodulation – focus on transcutaneous Vagus Nerve Stimulation for patients with 2005 hard-to-treat neurological and psychiatric illnesses Metrilus GmbH Special applications 3D cameras – focus on Time-of-Flight (ToF) cameras 2010 is a small sensor, which detects cardiac arrest Bavaria Business Plan Competition. Metrilus or apnoea within a few seconds through being GmbH develops software products for real- stuck on to the throat of an unconscious individ- time recording of 3D data for so-called time- ual; it can thus provide rapid information for im- of-flight cameras. Among other things, this plementing immediate measures. technology enables more efficient respiratory measurements or clearer recording of beating From the university to starting a company hearts, too. There certainly isn’t a lack of promising start- ups nowadays. As a specialist in the computer Venture capital for new ideas tomography (CT) sector, CT Imaging, which Cerbomed GmbH based in Erlangen is counted was created as a spin-off from the Institute of among the companies, which in addition to Medical Physics (IMP) of the Friedrich-Alexander- public aid money can also build on solid funding Universität Erlangen-Nürnberg, is thus developing through venture capital. The firm, which was new procedures for medical imaging and image founded in 2005, was provided with assistance processing. The company already has eight patents by a whole range of venture capital firms early issued and 11 patents published, and is focusing on, in order to enable the development of an on high-resolution CT systems, which are just as innovative neuro simulation technology. It is much in demand among pharmaceutical compa- aiming to allow individuals with neurological nies as well as among further education estab- and psychiatric diseases to have an improved lishments and industrial users. The world’s first quality of life while simultaneously incurring dual source micro CT system, for instance, with fewer treatment costs. The company has also its extremely short scan times is used in research received European approval (CE symbol) for with regard to in vivo small animal imaging. In several indications, including one in August turn, a dedicated mammography system allows 2012 for the vagus nerve simulation in the for tumours in the female breast to be diagnosed treatment of chronic pain. All too often, drugs at an early stage. As the leading project in the have not achieved the desired effect for this in- Medical Valley top cluster, this breast CT is dication, which is among the most widespread being promoted by the Federal Ministry of Edu- conditions in industrialised countries. Cerbomed cation and Research (BMBF). Metrilus GmbH, is thus symptomatic for what medical technology which was founded from the Friedrich-Alexander- from Bavaria can achieve: helping people and, Universität Erlangen-Nürnberg in 2010, was also at the same time, tapping into an immense able to make use of aid money from the BMBF. market potential. The company has also already been honoured with prize money as the winner of the Northern Norbert HofmannInvest in Bavaria 30
  • 31. MedTech in BavariaThe Healthcare of TomorrowFour examples from Medical Valley EMN In Medical Valley EMN and thus in Bavaria, in- for Germany by 2050 is that the number of peo- terdisciplinary teams of researchers from busi- ple suffering from dementia will increase by 100 ness and science are developing solutions for per cent to 2 million. In the ”Barrier-Free Health the healthcare of tomorrow along the leading Assistance” project, partners in the cluster are themes of Diagnostic Imaging, Intelligent Sen- developing telemedicine solutions and service sors, Treatment Systems and Ophthalmology. concepts that allow senile dementia patients to live in their own home for longer and, at the same Diagnostic Imaging – ”Breast Cancer Comput- time, to relieve carers and relatives of their bur- erized Tomography Scan” Research Project den. It is thus a declared objective of the project On average, every eighth woman in Europe and to considerably reduce the costs for this group of North America develops breast cancer during the patients, their relatives and the health insurance course of her life. Being diagnosed as early as companies. possible is definitive to the disease being treated successfully. In the ”Breast Cancer CT Scan/Inte- Treatment Systems – ”Osteofit 2030” grated Breast Care" projects, concepts for a gently Research Project and highly sensitive diagnosis of breast cancer In 2004, of the total healthcare costs in Germany are being developed, which record the entire care (which amounted to EUR 225 billion), more than process for women with a risk of breast cancer. 5 per cent was spent on rheumatoid arthritis, os- A central element of the project is the transition teoarthritis and osteoporosis (for the purposes from the 2D mammography to the 3D layered im- of comparison, cancer was 8 per cent). As demo- aging, which allows breast cancer to be detected graphics are changing, these costs will increase even earlier on and exposes patients to a lower even further. In the ”Osteofit 2030” project, new dose of X-rays and contrast agent. revision and individual implants with new, nano- structured surfaces are being developed within Intelligent Sensors – ”Barrier-Free Health the cluster to reduce the rate of infection and Assistance” Research Project speed up the growing process. Due to the longer In addition to stroke, dementia is known as one service lives of the implants and better treatment, of the ”epidemics of the 21st century”. The forecast there is considerable potential for savings to be made and patients’ quality of life will enhance considerably.Importance of breast cancer prevention –Diagnostic Imaging plays a key role in early diagnosis Ophthalmology – ”Low-Cost Fundus CameraSource: American Cancer Society System” Research Project In third-world countries, the health of many people Early diagnosis increases survival rates and reduces treatment expenses! is alarming – medical care is only possible in limited80 % 140,000 circumstances due to a deficient infrastructure and70 % 120,000 the high costs of modern devices, among other60 % things. A low-cost telemedicine Fundus camera 100,00050 % system is being developed in Medical Valley EMN 80,000 for detecting diabetic and hypertensive retinopathy40 % 60,000 and glaucoma early on in third-world countries.30 % With this system, health organisations in devel-20 % 40,000 oping countries can prevent diabetic blindness10 % 20,000 among other things with a small medical infra- 0% 0 structure. No Cancer Stage 0 Stage I Stage II Stage III Stage IV Chance of survival 15 years after diagnosis Treatment expenses (USD) Jörg Trinkwalter Invest in Bavaria 31
  • 32. MedTech in Bavaria ”Bavaria’s university hospitals are absolutely world class” Interview with Michael Sigmund, Head of Communications, Siemens Healthcare The technological and medical activities of such as Alzheimer’s. In the laboratory diagnos- Siemens AG are pooled together at the Sie- tics sector, we embarked on a partnership with mens Healthcare branch, based in Erlangen. Illumina in 2011 – a market leader in the area What is your unique selling point and how of genetic sequencing – in order to further de- do you assert yourselves on the market in velop next-generation sequencing technology for light of the international competition? the prompt and precise detection and treatment Siemens Healthcare is one of the global market of infectious diseases. Furthermore, as part of our leaders in the imaging sector. This is thanks to our sector initiative ”Agenda 2013”, we have decided impressive innovative strength and our extensive to expand our range of systems available in the Michael Sigmund is Head of expertise in the area of medical technology devel- mid-price range. the Communications Depart- opment. In fact, it is precisely these strengths that ment at Siemens Healthcare. enable Siemens to continue to launch ground- With which key players from the Medical He is also a board member at Medical Valley EMN and breaking technologies onto the market which Valley MedTech cluster do you cooperate Forum MedTech Pharma. open new windows of opportunity for medical intensively? diagnostics – such as our Biograph mMR system; An important and long-term cooperation partner the world’s first integrated whole-body molecu- for us is the Universitätsklinikum Erlangen (Er- lar MR system with simultaneous data acquisi- langen university hospital). For example, we are tion technology. In light of the growing cost pres- working together to develop a range of innovative sure in the healthcare sector worldwide, it is diagnosis methods for breast cancer; the Fraun- becoming increasingly important that cost-ef- hofer Institute is also involved here as a project fective, and particularly long-term, viable solu- partner. We have also established excellent tions, are made available. It is only then that we partnerships with a few SMEs from the Medical are able to position ourselves effectively against Valley, such as GmbH in the IT health- the international competition. In this sector alone, care sector. Moreover, there are a number of other Siemens has developed many different systems partners and medium-sized companies which are over the past two years – from the X-ray machine involved with subcontracted activities. to the MRI scanner – which have also been suc- cessful in emerging countries. What, in your view, are the overall strengths of the MedTech location in Bavaria when What pioneering new technologies are compared internationally? you currently working on? Bavaria’s university hospitals and non-university We are continuing to work intensively towards medical institutes are what I can only describe as developing technologies that reduce the dose ”world class” in many areas which are important of radiation required – for medical technology – for example, minimally for example, we are invasive medical treatment. Such an environment endeavouring to create is of utmost importance for innovative medical new reconstruction al- technology manufacturers such as Siemens, as gorithms for computer we require clinical expertise from high-ranking, tomography. In addition, practising doctors so that we develop the right we are developing effi- technologies. Furthermore, we also benefit greatly cient software tools from the excellent academic training provided for the imaging sector, here in Bavaria which results in many highly which will help us sup- qualified staff for the medical technology sector. port the diagnostic pro- Siemens Healthcare is one of the global market leaders in the imaging sector. cesses of our clients for The interview was conducted by Photo: © Siemens Healthcare various disease patterns Markus Hofelich.Invest in Bavaria 32
  • 33. MedTech in BavariaSuccess with eye laser technologyWavelight GmbH: Synergy potential in theAlcon Group The Erlangen region represents an attractive and in order to make the laser systems provided by successful network in the medical technology the Erlanger company even more successful on sector. It is also from this field that the eye laser the market. Since 2009, Wavelight has been a specialist Wavelight was birthed. Eleven years wholly owned subsidiary of Alcon Inc.; a compa- after its establishment, Wavelight was taken over ny itself which was sold by Nestlé to the Swiss by the US company Alcon and today plays a key pharmaceutical company Novartis in 2010. role in the refractive surgery sector. Precision is crucial Ups and downs on the Frankfurt Stock Market With around 230 employees, today Wavelight is The medical technology company Wavelight fea- ranked among the leading companies worldwide tures among the most remarkable start-ups of the in the development and production of modern 1990s in Bavaria. After its launch in the MedTech diagnostic and surgical technology for correcting stronghold (Erlangen) by the former Chairman of vision defects. It’s all about developing and pro- the board, Max Reindl, the company progressed ducing innovative laser systems for ophthalmic to become a technological leader in the area of surgery. The clients are clinics and ophthalmolo- refractive surgery. In 1999, Wavelight was listed gists. ”Our laser and diagnostic systems enable on the Neuer Markt of the Frankfurt Stock Market. a very careful and highly precise correction of vi- Following the closure of the Neuer Markt, Wave- sion defects”, explains managing director Martin light switched to the Prime Standard stock market Reichelt. ”In refractive surgery, Wavelight has cre- segment in January 2003. However, even the com- ated a platform to allow for treatments especially pany itself did not always have a smooth ride. After tailored to the patient’s needs." Since 2004, the a rapid initial growth phase and attempts to branch company has manufactured all its products in the into other areas of medical technology, the share newly-built production site based in Pressath, the price plummeted. From this point on, Wavelight Upper Palatinate. ”Laser production is high-preci- focused again on its core business – refractive sion work and in Germany we have an excellently surgery – and sold all its other business divisions. trained workforce for this purpose”, says Reichelt. Moreover, as the company headquarters, Erlangen Takeover by Alcon provides an opportunity for excellent cooperation In 2007, the US company with the university there and an impressive net- Alcon Inc. secured a major- work of suppliers and service providers from the ity stake in Wavelight fol- region. lowing the presentation of a takeover bid to the share- A large eye care budget holders. Back then, Alcon With Alcon, into which the former company Ciba was a subsidiary company Vision – with its contact lens products – was of the Swiss Nestlé Group, integrated, Novartis is keen to cover the entire spec- belonging to the largest trum of ophthalmology and is currently present product suppliers involved with its products in roughly 180 countries around in ophthalmology world- the globe. The Group operates branches or sales wide. The motivation be- offices in 75 countries. Therefore, significant in- hind the takeover was to vestments are being made in the areas of research capitalise on the synergy and development in particular, with the largest potential in the company Group budget for this sector worldwide: approxi- network, especially in the mately USD 5 billion for a period of 5 years.World-class laser and diagnostic systems are invented in Bavaria.Today, Wavelight is a fully owned subsidiary of Novartis. areas of marketing, sales,Photos: © Wavelight GmbH research and development, Bernd Frank Invest in Bavaria 33
  • 34. Expert statements regarding Bavaria as a healthcare location Prof. Dr. Axel Ullrich, Director, Department of Molecular Biology, Max Planck Institute of Biochemistry: ”One of the biggest strengths of Bavaria as a business location is the political support. When players from politics recognise economic potential, they work consistently on tap- ping into this potential, too. I personally was therefore not surprised that the German biotechnology adventure started in Bavaria.” Prof. Dr. Willi A. Kalender, Director, Institute for Medical Physics, Friedrich-Alexander-Universität Erlangen-Nürnberg: ”In my opinion, the level of education represents a particular strength of the Bavarian region. In Bavaria and Germany as a whole, an excellent professional and vocational education system has been established for many years. Our specialised staff have undergone excellent training in both handicraft and vocational work by international standards.” Richard Paulson, VP & General Manager, Amgen GmbH in Germany: ”With Amgen Research in Regensburg and Amgen Research in Munich, we are the only global Amgen affiliate with both research and clinical facilities. That’s a testament to the strength of medical science and R&D in Germany.” Michael Sigmund, Head of Communications, Siemens Healthcare: ”Bavaria’s university hospitals and non-university medical institutes are what I can only describe as ‘world class’ in many areas which are important for medical technology – for example, minimally invasive medical treatment. Such an environment is of utmost impor- tance for innovative medical technology manufacturers such as Siemens.”Invest in Bavaria 34
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  • 36. Your contact for your tailor-made service package: Invest in Bavaria Widenmayerstraße 34 80538 Munich Germany Tel.: +49 89 24210-7500 Fax: +49 89 24210-7557 Or look up one of our international offices or trade representatives near you on our homepage. Editor Bavarian Ministry of Economic Affairs, Infrastructure, Transport and Technology Invest in Bavaria Prinzregentenstraße 28 80538 Munich Germany Tel.: +49 89 2162-2642 Fax: +49 89 2162-2803 Invest in Bavaria – The Business Promotion Agency of the Bavarian Ministry ofEconomic Affairs, Infrastructure, Transport and Technology and Bayern International Edition September 2012