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					Healthcare in Bavaria
           www.invest-in-bavaria.com
Invest in Bavaria –
The Business Promotion Agency of the State
of 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.
                                     Preface




Martin Zeil                          The life science sector develops key technologies of the 21st century like no other sector and is highly
Deputy Prime Minister of Bavaria     innovative. Added value and sustainable growth can only be achieved by means of innovations. Bavaria
Bavarian Minister of Economic
Affairs, 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
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                         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 GmbH



Invest in Bavaria
                    04
        ”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 invested
25      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 Germany


MedTech 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 health
28      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 Tomorrow
31      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 technology
33      Wavelight GmbH: Synergy potential in the Alcon Group




Imprint                                                Design and realisation
Bavarian Ministry of Economic Affairs,                 GoingPublic Media AG
Infrastructure, Transport and Technology               Hofmannstraße 7a
Invest in Bavaria                                      81379 Munich
Prinzregentenstraße 28                                 Germany
80538 Munich
Germany                                                Tel.: +49 89 2000339-0
                                                       Fax: +49 89 2000339-39
Tel.: +49 89 2162-2642
Fax: +49 89 2162-2803                                  Project management
                                                       Markus Hofelich, Martin Bellof
www.invest-in-bavaria.com
                                                       Overall design
                                                       Holger Aderhold

                                                                                                           Invest in Bavaria
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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, Germany's 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 centre
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                                                                                                                                                           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 expected
for 2015”
Interview with Dr. Thomas Diefenthal, Managing Director, BioPark Regensburg GmbH

What characterises BioRegio Regensburg                   the decision-makers involved often know one
as part of the Biotech cluster of Bavaria?               another personally due to the geographical
In 1999, a centre for biotechnology was created          proximity. Ideas can then be implemented in
on the Regensburg University campus under the            projects quickly. Firstly, projects were created
motto ”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 technology
to address company founders, the medium-sized            firms. Other areas followed, such as sensor
industry and external companies willing to relocate.     systems. Since automation in all areas of a
Both 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 is
The Leading-Edge Cluster in Munich is being linked to    also expanding. Due to the comparably short           Managing Director of BioPark
innovative companies situated in the outer regions       development times, such companies are suc-            Regensburg GmbH. He also
                                                                                                               coordinates the BioRegio
of the Free State; at the same time, these compa-        cessful on the market even today.
                                                                                                               Regensburg biotechnology
nies receive access to the extensive services and                                                              cluster and is the deputy
information 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 multitude
Regensburg’s consistent and innovative business          of companies, which started out in the BioPark
promotion forms the basis for this. In addition,         Regensburg.
                                                                                                                                                   Invest in Bavaria

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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.
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                                                                                                                                                                                                 Bavaria




of the University of Regensburg. Located in the                                  than half of the more than 320 companies located
BioPark are mainly companies of the field of                                     in Bavaria in biotechnology and pharmaceuticals
biotechnology 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 German
are eight non-academic research institutes or                                    SMEs in biotechnology. The specific focus of these
project 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” are
Treatment of Tumors, Metabolic Disease and                                       tested worldwide in over 80 clinical trials. More
Disease associated with Ageing and Sensor                                        than 100 candidates in research and preclinical
Technology Materials). This demonstrates the                                     studies ensure a steady supply.
proximity to non-academic research units. In
addition, a number of research networks have                                     Medical Valley – Leading-Edge Cluster for
been formed in the region of Regensburg. The                                     Medical Technology
latest 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 the
Wuerzburg – Centre of Competence for                                             m4 in Munich, it was honoured in 2010 by the
Biomedicine                                                                      German Ministry of Education and Research as
The Innovation and Startup Centre (IGZ) Würzburg                                 national Leading-Edge Cluster. It is characterised
is the largest startup centre in northern Bavaria                                by a high concentration of excellence in medical
and is home to companies in life sciences and IT.                                technology. Approximately 500 companies operate
It is located in direct vicinity to the University of                            in the Medical Valley, among them numerous
Wuerzburg and the University of Applied Science                                  global players and many market leaders. The
as well as numerous research facilities. For com-                                Medical Valley Center is the foundational core
panies in biotechnology and medical technology,                                  of the cluster. In its direct vicinity are more than
the 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 facilities
a centre of competence for biomedicine.                                          closely linked to medical technology (among
                                                                                 them Fraunhofer and Max Planck Institutes) as
Strong Starting Situation for                                                    well as more than 65 hospitals. The unusual
Bavaria’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 for

Bavarian Biotech SMEs’ staff since 2006                                                      Bavarian Biotech SMEs by field of expertise
Source: 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
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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 Bellof
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                    10
                                                                                                            Bavaria




Bavarian Bio-Regions engaged in healthcare
Source: own presentation




                           Europe                                                    Germany




                                                  Bavaria




                                    Wuerzburg

                                                Erlangen
                                            Nuremberg



                                                                    Regensburg




                                                           Munich    Freising-
                                                                     Weihenstephan




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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.
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                    12
                                                                                                                                                                           Bavaria



Bavarian research excellence in Bio-
technology and medical technology
Pioneering concepts are developing in the
Free State thanks to academic and economic
cooperation
                                       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: Technische
Universität München (top) and University of Augsburg                                                        berg is home to a Centre for Medical Physics and
Photos: © Helmholtz-Zentrum München/TUM, Universität Augsburg                                               Technology; while at the University of Regensburg,
                                                                                                                                                                   Invest in Bavaria
                                                                                                                                                              13
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 Goslich
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                    14
                                                                                                                                                                     Bavaria



The highlight from Erlangen
Testing 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 in
Campus of Friedrich-Alexander-Universität Erlangen-Nürnberg         Universitätsklinikum
Photo: © Friedrich-Alexander-Universität Erlangen-Nürnberg          Erlangen (Erlangen                                             Dr. Lorenz Goslich
                                                                                                                                                             Invest in Bavaria
                                                                                                                                                        15
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 procedures
Invest in Bavaria
                    16
                                                                                                                                                                   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 from
Bavaria as a pharmaceutical and medical technology location is occupying an excellent position
in 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
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.
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                    18
                                                                                                                                                                        Biotech in Bavaria



Fit for the Medicine of the Future
Focus 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 Center
Personalised Health Care - how it works only 26 ”personalised”                                                Biomarkers offer new challenges, but also new
Source: 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
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          Wilex


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                                                                                                                                                 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 GmbH


Dr. Zobel, can you briefly introduce IZB?             Since IZB was founded, around 50 companies
IZB was founded back in 1995. Its objective is to     have left. Most of them are successful even
provide 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 taken
tenancy 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 corresponding
accommodate just under 60 companies. Beyond           milestones are reached, this sum can even
                                                                                                              Dr. Peter Hanns Zobel is the
the infrastructure, we also arrange contacts within   more than double.                                       Managing Director of the
our far-reaching network of scientists, companies                                                             Biotechnology Innovation and
and 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 to
When 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 the
to seven years. By then, the companies have for       underground railway, which will be completed
the 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. The
ratory space is thin on the ground on the com-        ”faculty club” in our boarding house will allow
mercial property market, in individual cases we       for more intensive exchange in the campus
also accommodate companies beyond this time.          network and make it even more prolific. I also
                                                      firmly believe that by then the first Biotech
What success stories can trace their roots            blockbuster from Martinsried will have come
back to IZB?                                          into being.
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                                                                                                                                                21
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 Germany's 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 given
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                    22
                                                                                                                                                   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 in
Created 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
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.
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                    24
                                                                                                                                                           Biotech in Bavaria



”Since 1998, approximately
EUR 2 billion have been invested
in site expansion projects”
Interview with Claus Haberda, Site Manager, Roche Penzberg

How did it come about that Penzberg is now               active ingredients. This reinforces Penzberg’s
the largest biotechnology centre in Europe               name as the ”Centre of Excellent for Therapeutic
and one of the most important biotechnolo-               Proteins”. As a general principle, large investments
gy 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 investments
company Boehringer Mannheim began focussing              and they are therefore keen to impress with their
its efforts on researching and developing new            high levels of productivity and excellent innovative
biochemical 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 are
the ideal area for increasing the company’s pro-         Roche’s special strengths and the strengths
duction 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 reason
duction of medicines and diagnostics. Knowledge          that it represents a key element of the Roche
of 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 working
Since Roche’s takeover in 1998 alone, approxi-           in close collaboration on new therapies. This
mately EUR 2 billion have been invested in the           generates synergies which are not evident at other
site’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 you
work, 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-quality
with 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 good
Swiss pharmaceutical company invested EUR                foundations for high-tech companies,
158 million in the research and development              which has resulted in Bavaria’s biotech
of therapeutic proteins. What objectives are             industry being ranked among the best
you currently pursuing? What other invest-               worldwide. However, we must continue
ments are planned in Penzberg?                           to ensure that research and development
This 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 that
from research previously carried out to technical        the detrimental effects of the health-
development and the production of biopharma-             care reforms for the pharmaceutical
ceutical active ingredients to be launched on the        industry should also be discussed in
market. 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 made
opment of production processes for protein-based                                                       Penzberg one of the biggest Biotech locations in
active 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
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.
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                    26
                                                                                                                                                                                   MedTech in Bavaria



”A win-win situation for both sides; the
economy and university research”

Interview with Prof. Dr. Willi A. Kalender, Director, Institute for Medical Physics
(IMP), Friedrich-Alexander-Universität Erlangen-Nürnberg


Professor Kalender, you have been the Di-                funding is only guaranteed for research projects
rector of the Institute for Medical Physics              when industrial partners are also involved and
since its establishment in 1995 – What sets              are willing to meet at least 50 per cent of the costs
the institute apart?                                     incurred. In the medical technology sector, this
The decisive characteristic of the IMP is probably       approach has proven to be successful over a period
its close collaboration with industrial partners for     of many years and it was once again reaffirmed
virtually all research projects. Moreover, as a result   by the establishment of the Medical Valley Cluster
of the activities of our institute, research organi-     which was funded by the German Federal Ministry
sations have been birthed in Bavaria, nation-wide        of Education and Research (BMBF). The university
and throughout Europe, which are heavily sub-            is represented in a large number of funded projects;                                      Prof. Willi A. Kalender is
sidised. Even from today’s perspective, the decision     a win-win situation for both sides – the economy                                          Director of the Institute for
of 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 and
contact 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 represents
What have been the most ground-breaking                  a particular strength of the Bavarian region. In
research results of your institute to date?              Bavaria and Germany as a whole, an excellent
Here I would simply like to mention Cardio-CT and        professional and vocational education system
efforts 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 in
examination of the heart which uses computed             international comparisons. Generally the number
tomography, is based on spiral CT technology;            of university graduates is recorded but not the
technology 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 specialised
for 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 work
and 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 technology
and were first used at the Universität Erlangen.         Evolution of third-party funds raised by IMP
Today, both methods are used around the globe.           Source: IMP

Collaboration with Siemens was crucial in both                          2.5
cases and a great success for all those involved.
                                                                                   Volume of third-party funds raised
                                                                        2.0
                                                                                   Examples for significant IMP research projects
The university is part of the Medical Valley
                                                          EUR million




in which around 180 dedicated medical                                   1.5

technology companies are located. What
                                                                        1.0
makes 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            Forschergruppe
positive 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
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: © HumanOptics
Invest in Bavaria
                    28
                                                                                                                                                 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 international
leading centres”
Interview with Dr. Peter Terhart, Chairman, S-Refit AG
Dr. 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 the
that 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 new
in the sector of medical technology. Furthermore,       measuring device for efficient endurance training.
the Free State’s high-tech offensive has ushered
in a key development process. It is indeed a marathon   Can you help the companies beyond the
as opposed to a sprint. But even now, the location      start phase?                                             Dr. Peter Terhart is heading
can compete with international leading centres.         A nucleus is created with us in Bavaria, both in         S-Refit as sole member of the
Key reforms in patent systems have contributed          BioPark Regensburg and in Medical Valley EMN.            Management Board. He is also
                                                                                                                 Chairman of the Board of the
to this, as has the foundation of an organisation       Afterwards, the companies have to strike out on          German Private Equity and
for 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 medTECH
investors.                                              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 in
which is based in Erlangen. By way of nerve simu-       Bavarian companies on the part of large medical
lation with electrical pulses, it is developing new     technology funds from Switzerland.
                                                                                                                                                      Invest in Bavaria
                                                                                                                                                 29
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 Hofmann
Invest in Bavaria
                    30
                                                                                                                                                        MedTech in Bavaria



The Healthcare of Tomorrow
Four 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 Camera
Source: 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 limited
80 %                                                                                 140,000   circumstances due to a deficient infrastructure and
70 %                                                                                 120,000   the high costs of modern devices, among other
60 %                                                                                           things. A low-cost telemedicine Fundus camera
                                                                                     100,000
50 %                                                                                           system is being developed in Medical Valley EMN
                                                                                     80,000    for detecting diabetic and hypertensive retinopathy
40 %
                                                                                     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 blindness
10 %                                                                                 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
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 sepp.med 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
                                                                                                                                                            MedTech in Bavaria



Success with eye laser technology
Wavelight GmbH: Synergy potential in the
Alcon 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
                         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.”




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                    34
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                                                                           Editor

                               Bavarian Ministry of Economic Affairs,
                             Infrastructure, Transport and Technology
                                                      Invest in Bavaria
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                                                               Germany

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     Invest in Bavaria – The Business Promotion Agency of the Bavarian Ministry of
Economic Affairs, Infrastructure, Transport and Technology and Bayern International

                                                            Edition September 2012

				
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