BioMatters - Fall 2009

With Medical Devices in the Driver’s Seat

F A L L 2 0 0 9

Also Featured:

IT and R&D: Shaping the Future of Medicine

Bio-Innovation FuelingAcademic-Industry Partnerships

Michigan Companies Aim to Burst theHealthcare Bubble

MAnuFActuring iS ALive AnD WeLL in MichigAn

BioMattersA MichBio Publication Showcasing Michigan’s Biosciences Industry

IN MICHIGAN, SOMETHING NEW IN HIGH-TECH INNOVATION IS HAPPENING EVERY DAY.

Working with our partners at MichBio, the Michigan Economic Development CorporationSM can connect high-tech companies and entrepreneurs to services, incentives, networking opportunities and venture capital to help them grow and prosper.

Visit MichiganAdvantage.org and learn how Michigan can give your biotech company the Upper Hand.

MichiganAdvantage.org

BioMatters | Fall 20091

Michigan’s broad-based bioscience industry is a world leader in biotech research and development, creating more than

125 new companies since 2000. it encompasses research, testing and medical labs, pharmaceuticals and medical devices.

An abundance of scientific and clinical talent is home-grown from a 140-year legacy of biotechnology innovation built by

industry pioneers Parke-Davis and upjohn and including Dow chemical, Kellogg and Stryker.

One of the world’s largest concentrations of research in the life sciences includes the university of Michigan in Ann

Arbor, known internationally for pioneering work in genetics, and Michigan State university housing the national center for

Food Safety and toxicology, the national Superconducting cyclotron Lab and the Facility for rare isotope Beams. in grand

rapids, the state’s second-largest city, a regional medical care and life science research hub is anchored by the Michigan

State university medical school expansion.

Economic Impact With an economic impact of $9.34 billion, the state’s bioscience industry comprises more than 550 companies, mostly

clustered in Southeast and West Michigan. university life science research expenditures of $897 million are concentrated

primarily at university of Michigan, Michigan State university and Wayne State university.

Total direct bioscience employment in Michigan, industry plus academic, is 40,086. Adding 58,721 spin-off jobs brings

total bioscience employment to 98,807 accounting for 18 of every 1,000 jobs statewide and $6.36 billion in earnings. Private

bioscience industry payrolls reached nearly $2.5 billion in 2007, with state taxes generated amounting to $462 million.

Investment and Incentives the state has directly invested more than $323 million in bioscience companies via the Life Sciences corridor and

21st Century Jobs Fund commercialization competitions, with an additional $47 million invested in venture capital firms

which in turn invest in bioscience firms.

Michigan is home to 16 venture capital funds and is one of only nine states to offer state fund-of-fund investment

programs. it has a total of $500 million in state investment capital available. A network of 15 SmartZonetM tax-advantaged

districts (eight with wet-lab incubators) fosters university-affiliated commercialization programs. State incentives include:

pre-seed capital fund, seed tax credits for Angel investors, state r&D tax credits, sales tax exemption for r&D and bio-

manufacturing equipment, and net operating loss (nOL) carryover allowed for 10 years.

Future Prospects As a pillar of Michigan’s drive to diversify the economy and foster emerging technologies, the bioscience industry is

backed by strong financial support and infrastructure tailored to its business development requirements. Medical education

is booming, with expansions at three of the state’s four medical schools opening new channels of research and innovation.

With healthcare now ahead of manufacturing as the state’s largest private-sector employer, Michigan’s fast-growing life

science industry seems destined to grow at an even faster pace in the years ahead.

Sincerely,

Greg Main

President & CEO, Michigan Economic Development Corporation

S tAt e O F M i c h i g A n M e S S A g e

4BioMatters | Fall 2009


Welcome to Michigan’s Biosciences Community! Last year we seized the opportunity to launch BioMatters, a magazine meant

to showcase the state’s significant infrastructure, resources, and investment in the

biosciences sector. the publication has been a resounding success. With this issue,

we celebrate its one-year anniversary by adding a new digital version of the publication.

While we will still have printed copies for distribution to our members, select stakeholders

and at state and national events, the easy-to-use, “page-turning” digital version provides

an array of useful features for our readers and advertisers. Be sure to forward the digital

BioMatters to your own customers, professional colleagues, and friends so that they can

learn about the many outstanding discoveries and products, manufacturing capabilities,

and investment opportunities emerging out of the state’s biosciences sector.

in addition to spreading the word about BioMatters, i want to emphasize our

commitment to member companies, with added services and products meant to support

the growth and development of their businesses. We have greatly expanded our Preferred

Provider group-buying program. MichBio companies can enjoy considerable, bottom-line

savings by signing up for discounts and preferred arrangements on everything from lab sup-

plies, liability insurance, financial services and strategic planning, to business intelligence,

to technology products and support. that’s pure value for companies of all sizes and types.

Similarly, MichBio has now put in place a public policy and advocacy infrastructure

second to none in the nation. Through the association’s efforts, Michigan is now the first

and only state to have legislative subcommittees focused solely on the biosciences. MichBio

members are kept abreast of hot issues as they develop in Lansing and Washington. We

continue to educate about the positive impact the biosciences industry is having on our

economy and human health, as well as advocate for additional support to grow the sector.

it is through these and other such endeavors that Michigan can boast a vast arsenal of

resources available to new start-ups and established companies alike. greg Main, President

of the Michigan economic Development corporation, makes note in his letter on page 1

that Michigan has made a significant commitment to the biosciences in terms of funding

support, commercialization services and capital investment availability. Michigan’s story

of continued achievement in bioscience innovation and commercialization is one of

commitment, opportunity and value. come check out what Michigan can do for your

bioscience company!

Stephen rapundalo, Ph.D.

President and CEO, MichBio

P r e S i D e n t ’ S M e S S A g e

P r O F e S S i O n A L S tA F F

c O n tA c t i n F O r M At i O n

Stephen T. Rapundalo, Ph.D.

President and CEO

[email protected]

734.527.9144

Stephen Field

Director,

Operations and Controller

[email protected]

734.527.9145

Jayne Berkaw

Director,

Marketing and Communications

[email protected]

734.527.9147

Heather Kusiak

Administrative Specialist

[email protected]

734.527.9150

Physical Address

3520 Green Court, Suite 450

Ann Arbor, Michigan 48105-1579

Mailing Address

P.O. Box 130199

Ann Arbor, Michigan 48113-0199

Phone

734.527.9150

Fax

734.302.4933

Website

www.michbio.org

General Information

[email protected]

BIoMATTERS GoES DIGITAl! Next Issue: SPring 2010

This is the first issue of BioMatters to offer a new digital version that appears in an easy-to-navigate “page-turning” format. the new format is also clickable, zoomable, printable, linkable, savable and sendable, and it offers advertisers an array of tools that are not available in a print format. These include:• Direct links to your website and email addresses• The ability to include customizable forms so readers can request more information• The ability to include interactive media and video content• Expanded reach to a broader distribution list• Reader statistics to measure the success of your ad the digital version will also help MichBio in our efforts to spread the word about Michigan’s exciting biosciences industry. Be sure to pass it along to your own customers and constituents, and please let us know how you like the new digital BioMatters!

BioMatters | Fall 2009 4

cOrPOrAte SPOnSOrS

P L At i n u M

g O L D

S i Lv e r

B r O n Z e

O F F i c e r S , D i r e c tO r S A n D c O M M i t t e e S

PAtrOnAsh Stevens, Asterand,

lumigen, Varnum

FrienDWayne State University

SuPPOrterBiotechnology Business

Consultants, Caraco,sanofi-aventis U.S.,

West Michigan Science & Technology Initiative

M e D i A

executive OFFicerSChairmanStephen Munk, Ph.D.Ash Stevens, President and CEO

President and CEoStephen T. Rapundalo, Ph.D.MichBio, President and CEO

Secretary Christina DeHayesAsterand, Inc., General Counsel

Treasurer Matthew l. McCollErnst & Young LLP, Partner

Assistant TreasurerRyan Noel Division of Metabolism, Endocrinology and Diabetes, University of Michigan Administrator

DirectOrSlinda Chamberlain, Ph.D.West Michigan Science andTechnology InitiativeExecutive Director

David Felten, M.D., Ph.D.Beaumont Hospitals, Research InstituteVice President, Research and Medical Director

J. Patrick ElliotTerumo Cardiovascular Systems Corp.Vice President, Business Development

James Freeman, Ph.D.Pfizer Animal HealthVice President, Laboratory Sciences

Ricardo (Richard) Fuentes Jr.Dow Corporate Venture CapitalGlobal Life Science Investment Director

Teri GriebU of M Medical School, Office of ResearchDirector of Administration for ResearchOffice of Research and Graduate Studies

Mark KielbAltarum InstituteChief Financial Officer

Barry KlineGlaxoSmithKlineDirector, Market Development

Michael Kurek, Ph.D.Biotechnology Business ConsultantsPartner/President

Paul MorrisAlixPartners, LLP Finance Manager, National Enterprise Improvement Practice

Stephen Munk, Ph.D.Ash Stevens, President and CEO

Stephen T. Rapundalo, Ph.D.MichBio, President and CEO

John J.H. Schwarz, M.D.Family Health CenterPhysician,Former U.S. Representative

Eric StiefWayne State University — Technology CommercializationLicensing Manager Director of Venture Development

Karen Studer-RabelerCoy Manufacturing/Coy Laboratory ProductsGeneral ManagerVice President, Business Development

David ZimmermannKalexsyn, Inc.Chief Executive Officer

cOMMitteeSFacilitiesintellectual Properties and LegislationMarketing and communicationsMembership and ServicesProgramsPublic Policy

7 BioMatters | Fall 2009

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BioMatterst A B L e O F c O n t e n t S

A D v e r t i S e r S

Ash Stevens ....................................................... 18Bank of Ann Arbor ............................................ 14Beaumont Commercialization Center ............... 30The Brooks Industrial & Research Park ............ 19Clean Rooms International .............................. 21Cutting Image Histology ................................... 21CVCT, Inc. .......................................................... 19DBA Analytical .................................................. 30Doeren Mayhew ..................................................6Dykema ............................................................. 21Gallahad Consulting, PLC ................................. 18

Oakland University ........................................... 30Pfizer ...................................................................2PhRMA .............................................................. 28Rader, Fishman & Grauer PLLC ........................ 34RS Electronics ................................................... 34Stryker .............................................................. 10University of MichiganTech Transfer ................ 14Warner Norcross & Judd ................................... 29West Michigan Science & Technology Initiative ....12Western Michigan University ..............................6

Great Lakes Entrepreneur’s Quest ..................... 12Hylant Group ..................................................... 14Kettering University ............................................5Landaal Packaging Systems ...........................OBCMedlen & Carroll, LLP ...................................... 19MichBio ...........................................................IBCMichigan Economic Development Corporation ................................................ IFCMichigan State University ................................. 29MPI Research .................................................... 24NuStep .............................................................. 12

4 MichBio Corporate Sponsors, Officers, Directors and Committees

13 Essen Instruments Markets a “Microscope” in an Incubator

FEaturE StOry: Michigan a Player in Burgeoning Medical Instrument Manu-facturing Market

20Nutralite Brand a World Leader in Nutritional Supplements

17

31

Cerise Nutraceuticals uses Cherries to Boost Michigan and Individual Health

Moving toward a Michigan Bioeconomy

22 tECHNOLOGy: Michigan is Where It and r&D Meet to Shape the Future of Medicine

The following MichBio members are featured in this issue of BioMatters:Accuri Cytometers, Arivium, Assay Designs, Asterand, Barbara Ann Karmanos Cancer Institute, Beaumont Hospitals, Central Michigan University, Compendia Bioscience,

Delphi Medical Systems, DNA Software, Ferndale Laboratories, Genetics Squared, Henry Ford Health System, Johnson & Johnson, Lawrence Institute of Technology, Michigan Economic Development Corporation, Michigan State University, Michigan Technological University, Neogen, Oxford Biomedical Research, Pfizer, Terumo Cardiovascular Systems,

University of Michigan Medical Innovation Center, University of Michigan Biomedical Engineering

Subscribe to BioMatters:Visit www.michbio.org and click “Subscribe” or call 734.527.9150.

15PHarMaCEutICaLS & tHEraPEutICS: Michigan Companiesaim to Burst the Healthcare Bubble

25One to Watch: DNa Software

36GuESt OPINION: advancing Michigan Bio-Industry Growth Through Education & advocacy

32rESEarCH PrODuCtS: State’s BiotechCompanies are Making Their Presence Felt

26INNOVatION: Bio Innovation in Michigan Fueled by academic-Industry Partnership

35asterand is a Powerhouse of Growth in research Products

8

FinAnciAL MAtterS FeAture StOrY

in Burgeoning Medical instrument Manufacturing Market


Michigan a Player

Stryker’S replacement portfolio of hip, knee and Shoulder implantS

focuSeS on procedural and product innovationS that help reStore

patientS to normal activity and Stand the teSt of time.

the SarnS™ Soft flow® aortic cannula iS one of many globally-known brandS for cardiac and vaScular Surgery that terumo cardiovaScular manufactureS.

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CARDIAC SURGERy? A TERUMo CARDIoVASCUlAR PRoDUCT PRoBABly CoNTRIBUTED When Dick Sarns built the first com-

mercially available heart-lung machine in

1960 in Ann Arbor, little did he envision his

company being sold twice to become the

powerhouse it is today. First Sarns sold

the business to 3M in 1981, and then 3M

sold the growing business to Japan-based

Terumo, a company with $3 billion

in annual sales.

Over 500 people now work in Terumo

Cardiovascular Systems in Ann Arbor, a

division of Terumo that produces, markets,

sells and services life-sustaining critical

care devices.

There are over 1.2 million cardiac

surgery procedures performed annually,

and it is highly likely that a Terumo product,

whether as small as a catheter or as large as

a platelet concentrate system, was used in

most of these procedures.

Last year Terumo added 65 people to

Ann Arbor, when it consolidated facilities

from Elkton, Maryland and added a new

chemistry lab.

“What gets me excited is looking ahead

at technology; it’s leaps and bounds ahead

of what it was,” said James P. Elliott, vice

president for business development. “Ten

years ago, most of the patients who had

Michigan’s strong medical device manufacturing sector includes global leaders like terumo and Stryker, and new product innovators like Delphi Medical Systems, Accuri cytometers, and integrated Sensing Systems. read how these businesses are thriving despite

rough economic times in Michigan.

open heart surgery needed a vein in their

leg removed for the bypass. We used to fillet

the leg, and people used to complain that

the surgery of the leg was the most painful

part. Now we can remove the vein with a tiny

5mm incision and use a scope we produce

to remove it in a minimally invasive way.”

Still, President Obama’s healthcare

reform is a challenge for the future. “We can

always come out with a better widget, but

there is not always a way for hospitals to pay

for it. Providing better patient care for lower

cost is a challenge. We look for technologies

that can do that and have the support of a

reimbursement strategy,” Elliott added.

And Dick Sarns? He’s still in Ann Arbor

and has created NuStep, a business that

manufactures exercise equipment for heart

disease patients.

STRyKER IS A GloBAl MEDICAl TECHNoloGy lEADER Stryker, like Terumo, is a leader it its

market, with sales in over 120 countries.

It is the largest player in the $35 billion

orthopedic market (implants, surgical

equipment, etc.) with $6.7 billion annually

in sales, and number ten in the $225 billion

medical technology market.

Corporate headquarters as well as Stryker’s

medical and operating room equipment

divisions are in Kalamazoo, employing 1,600

of its 17,000 worldwide staff.

“We make a difference by caring for the

caregivers,” said J. Patrick Anderson, Stryker’s

vice president for Corporate Affairs. “We

work closely with medical personnel;

we have company representatives in the

operating room eight-to-ten hours a day,

advising doctors about the implant or our

equipment.” Stryker’s thousands of products

include implants used in joint replacement,

trauma, craniomaxillofacial and spinal

surgeries; biologics; surgical, neurologic,

ear, nose & throat and interventional pain

equipment; endoscopic, surgical navigation,

communications and digital imaging

systems; as well as patient handling and

emergency medical equipment.

“We have established a reputation as

a growth company,” said Anderson. “Our

ability to identify and respond to the needs

of the marketplace has allowed us during

the past 10 years to grow from $1.9 billion

in sales in 1999 to $6.7 billion in 2008. As

the world’s population continues to age, the

demand for our products should remain

strong for many years into the future.”

For example, at the beginning of this year

the business introduced a new high-definition

surgical camera used in arthroscopic

Michigan a Player

By Deb Merion

critical care deviceS are uSed daily in a wide range of procedureS from coronary artery bypaSS grafting to valve replacementS, aortic aneurySm repair and heart tranSplantS.

“What gets me excited is looking ahead at technology; it’s leaps and bounds ahead of what it was.” “We work closely with medical

personnel; we have company representatives in the operat-ing room eight-to-ten hours a day, advising doctors about the implant or our equipment.”

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surgery that is double the resolution of home

HD products, delivering the highest defini-

tion in the industry for surgical accuracy.

Stryker’s growth should increase with

economic advances in the rest of the world.

“One of challenges we face is that some of

the healthcare systems around the world like,

China or India, are not as highly developed,

so they don’t yet deliver as advanced a level

of treatment —in developing markets our

products are still ahead of the curve,” said

Anderson.

DElPHI lEVERAGES TECHNoloGy AND ENGINEERING To CREATE MEDICAl DEVICES Imagine for a moment that you are a

world leader in manufacturing automotive

parts with 150,000 employees nationwide,

but you are looking to diversify and grow

into a new market: what would you do? Faced

with this quandary seven years ago, Delphi

looked at its technology and engineering base

and saw opportunities in the world of medi-

cal devices for its employees’ existing skills.

The result was the creation of a wholly-owned

subsidiary called Delphi Medical Systems.

“For example, our human factors group

does critical work on how people interface with

equipment, and these talents and skills are

useful for the highly complex instruments that

nurses and doctors must master,” said Patrick

Keely, general manager of Delphi Medical.

Over the last five years, Delphi has

developed products for three growing

market segments: a portable oxygen

concentrator, vital signs monitor, and an

intravenous medication infusion pump.

In a healthcare market that is serving

increasing numbers of senior citizens and

chronic disease cases while meeting higher

outcome and quality standards, Delphi

Medical Systems products appear strongly

situated. Their portable oxygen concentra-

tor weighs 10 lbs., sits under a seat in an

airplane, and was approved for travel last

year by the FAA.

Their vital signs monitor, selling for

a few thousand dollars, is at a price point

suitable for purchase by an individual, yet is

flexible enough to monitor multiple patients

in a nursing home. The strength of this

device is that patients don’t have to go to

a doctor’s office to get monitored daily.

The device records personal statistics such

as weight, blood pressure, and glucose level,

and then automatically transmits them to

a central computer server, where a doctor

can then remotely monitor a larger number

of patients at a lower healthcare cost.

FeAture StOrY

Delphi looked at its technology and engineering base and saw opportunities in the world of medical devices.


The business’s third product area of

intravenous pumps is poised to launch.

“Getting our products launched is one of our

challenges, given the current economic envi-

ronment, and that is true on a global basis.

It is hard for a hospital to get money for

equipment,” said Keely. Delphi’s high precision

infusion pumps will uniquely incorporate

safety software, preventing accidental dosing

outside of the specified parameters.

ACCURI CyToMETERS’ PRICE BUSTER IS A MARKET INNoVATIoN In David Hurley’s University of Georgia

study of cow placentas, he’d routinely have

to help with the birth of a calf in the middle

of the night and then drive across campus to

access the campus’s cytometer to measure its

T-cell count. That is, until four years ago when

Accuri Cytometers came on the market as a

U-M spinoff with a cytometer that sold for

25% of the cost of the $130,000 market leader.

Hurley now has Accuri’s cytometer in his

dairy barn.

“This is a market innovation, not a

technology innovation,” said Jack Ball,

Accuri’s vice president for business develop-

ment. Most scientists cannot very easily get

grants for things that cost over $100,000.

Accuri’s price-buster tool is making for

a fast-growing company with wide-reaching

implications. “By making flow cytometry

technology more affordable, accessible and

usable, Accuri’s high performance systems have

the potential to accelerate and broaden the

scope of biomedical research,” said Bahaa Fam,

a partner at Fidelity Biosciences, in a statement.

The cytometer is used to track and treat

diseases like AIDS and cancer. The company

has doubled its sales this year in the first five

months compared to last year, and doubled

its number of employees (60) since last fall.

“We think our market potential is $300-

400 million a year,” said Ball. Currently the

company has less than 5 percent of a $1.5

billion-a-year market.

Last year Accuri nailed down $15 mil-

lion in venture capital funding, and this July

the company received $4 million in Series D

financing from a consortium that included

Fidelity Biosciences, Flagship Ventures,

Baird Venture Partners, Arboretum Ventures

and InvestMichigan.

The business has opened European

facilities in the last year, and the cash influx

is expected to help them grow that market

and commercialize their Accuri C6 Flow

Cytometer.

The challenge of managing their growth

is the kind of challenge that other busi-

nesses wish they had. “It’s always difficult

to hire enough people fast enough,” said

Ball. Accuri is sharing the insights gained

from this period of high-growth by offering

a creativity award and free cytometers for

innovative uses of their product.

INTEGRATED SENSING SySTEMS’ FlUID MEMS CHIP MAy REVolUTIoNIZE CoNGESTIVE HEART FAIlURE TREATMENT Doug Sparks introduces himself to

friendly strangers on a plane by saying his

employer in Ann Arbor has been manu-

facturing micromachine chips—computer

chips with moving parts—since 2003. “No

one else makes a fluid chip,” said Sparks,

Integrated Sensing Systems, Inc. (ISSYS)

senior scientist. The product can sense

chemical concentration, density, mass, and

flow for medical and scientific applications.

In fact, an ISSYS microelectromechanical

systems (MEMS) chip may have actually

helped adjust the fuel of the plane Sparks is

chatting in. “Now that fuel prices are going

up, we’re getting more requests for a chip

that is currently on airplanes all over the

world,” said Sparks.

The ISSYS microfluid sensor also has

the potential to revolutionize the treatment

of congestive heart failure patients, which

includes five million individuals in the U.S.

alone. Currently, methods to determine

heart strength may be dangerous (a catheter

in the heart) or imprecise (weighing a

patient to determine weight gain from fluid

retention). However, pending FDA approval,

their batteryless telemetric sensor can be

implanted in the heart’s left ventricle or

aorta and transmit the heart’s status

wirelessly via radio waves to doctors holding

a companion reader.

In the meantime, the sales of the flow

sensor were helped by an influx of $20

million in the last year. New strategic

partner Endress+Hauser is helping develop

and sell the microfluidic products. “We’ve

grown in the last year by 20 percent, as

opposed to everyone else laying people off,”

said Sparks.

the barrierS of coSt, complexity, and Space requirementS for Standard flow cytometerS are broken with the compact, afford-able, eaSy-to-operate verSion developed by accuri cytometerS.

three generationS of iSSyS preSSure SenSorS laid on a penny demonStrate the progreSSive Size reductionS that enable the development of Smaller medical deviceS.

Accuri’s price-buster tool is making for a fast-growing company with wide-reaching implications.

The ISSYS microfluid sensor also has the potential to revolutionize the treatment of congestive heart failure patients, which includes five million individuals in the u.S. alone.

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Essen Instruments Markets a “Microscope” in an Incubator

essen instruments is a small Ann

Arbor company that provides exciting

options for biotech businesses and

academic laboratories using instru-

ments to analyze cell-based assays

for drug discovery. Since 1990, the

company has invented three products:

l FLiPr (Fluorescent imaging Plate

Reader), the first high-throughput cell-based screening

instrument in the industry.

l IonWorks, the first commercially-available high-throughput

electrophysiology platform.

l incucytetM, the first automated imaging system designed

to fit “inside” a standard cell culture incubator.

customers can buy the instruments, or essen will run the

assays fee for service. “What is unusual is that we have an

engineering group in the same proximity as the sophisticated

biology staff that does the assays, and a software group that

does analysis of data,” said vince groppi, vice president and

chief scientific officer.

Essen employs 36 people in its 14,000 square-foot Michigan

facility, and a sales force of four in europe to sell its ionWorks

and incucyte products. FLiPr is manufactured and sold by

Molecular Devices corporation in california; essen runs assays

on the device for customers.

incucytetM is now used by all major pharmaceutical

companies to quality-control cell culture. “it connects to a

computer network, so you can watch cells grow and change

without ever opening the door of the incubator, which keeps

the environmental conditions inside stable,” said groppi.

Anyone who has purchased a

promising-sounding, but awkward,

piece of equipment will appreciate

essen’s design process. “the instru-

ments we make are user friendly.

Since our biologists are on staff,

our engineers don’t have to imagine

what a biologist needs. that would be

like building a kitchen without consulting a cook,” said groppi.

in the last year, essen has added sales of reagents to its

income stream, through a strategic alliance with tcS cellworks

in the uK. currently, essen’s business income is 80 percent

instruments and 20 percent services, but its business plan in

the next four years is to utilize its sophisticated biology group

to increase the services side to the level of instrument sales.

For a company like essen that thrives on problem

solving, the recession is a challenge that is manageable.

“the time to make a decision has lengthened because

everyone was spooked. We are getting clients now who are

confident to make a decision in a timely matter. Our plan

is to show we are flexible—providing services and sales of

reagents—so we continue to try and find the best path

forward,” said groppi.

eSSen’S vp and chief Scientific officer, vince groppi, StreSSeS the depth of the company’S Staff aS one of itS main StrengthS.

“What is unusual is that we have an engineering group in the same proximity as the sophisticated biology staff that does the assays, and a software group that does analysis of data.”


the electronic head deSigned by eSSen inStrumentS iS a key component of the company’S ionworkS planar patch, high throughput electrophySiological inStrument which meaSureS the propertieS of ion channelS in iSolated cellS.

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PhArMAceuticALS AnD therAPeuticS

Michigan companies Aim to Burst

the healthcare Bubble

Anyone taking the time to understand Michigan’s pharmaceutical industry may be surprised

and impressed, for reasons that include:

IMPACT: Perrigo manufactures

35 billion tablets annually, and is the world’s largest

manufacturer of over-the-counter pharmaceutical products

for the store-brand market.

HISToRy: JhP Pharmaceuticals is a

new business manufacturing intravenous medications in

a historical location. its sterile factory site has

manufactured continually since 1903, when it produced the first FDA-approved vaccine in the u.S.

INNoVATIoN: eloquest’s latest product

speeds the onset of a topical anesthetic, reducing those

anxiety-filled moments before a needle is administered.


By Deb Merion

All three businesses are actively working

to restrain our country’s ballooning

healthcare costs by lowering costs and

raising quality, whether their products are

dermatological (Eloquest), intravenous

(JHP Pharmaceutical), or oral (Perrigo).

PERRIGo Perrigo is a 122-year business with $2

billion in annual sales. They produce over

1,000 over-the-counter medications each

year, including Nyquil, Pepto-Bismol,

Robitussin, Tylenol, Advil, and Prilosec.

Although the business name may not have

the brand name prominence of Kellogg or

Ford, it is doubtful that few in Allegan are

unaware of Perrigo—the business employs

2,800 there, and the population of the town

is barely twice that.

The business manufactures the medi-

cations for both brand names and store

products, such as Meijer or CVS. “Every

major retailer is a client of ours,” said Art

Shannon, vice president, investor relations

and communications.

When medications switch from pre-

scription to over-the-counter (OTC), such

as Prilosec and Zyrtec did recently, Perrigo

jumps into the market in the big way. “We

are the largest player in producing medica-

tions that have switched from prescription

to OTC,” said Shannon.

To meet the challenge of increasingly

stringent quality requirements from the

FDA, the business added a massive quality

systems approach last year costing $15 mil-

lion. Signs remind employees ‘your son or

daughter is taking this product later today.’

The investments are paying off for

investors and healthcare consumers. Traded

under PRGO on NASDAQ, Perrigo had

double-digit gains in earnings from 2007

to 2008. “When you think about the aging

population and rising healthcare costs, we

are in a perfect spot to help people save

money on healthcare,” said Shannon.

JHP PHARMACEUTICAlS Quality and cost are also major issues

for JHP Pharmaceuticals in Rochester. The

firm sells primarily aseptic products for

acute care in hospital settings. “There is a

high quality needed when you are injecting

something into the blood stream. People

want something manufactured in the U.S.”

said Stuart Hinchen, co-founder, with Peter

Jenkins, of JHP Pharmaceuticals.

The two men bought the business from

King Pharma in 2007 for $90 million. “To go

and build the factory alone would cost $150

million,” said Hinchen.


“every major retailer is a client of ours.”

“We love Michigan in terms of our site,

the people, the first class support we get from

Rochester, and we have good support from

the union. They are interested in the long-

term success of the company,” said Hinchen.

Three hundred people work at the factory.

JHP produces its own line of pharma-

ceuticals including Pitocin—an intravenous

medication familiar to pregnant women as a

way to hasten the birth process—and offers

a complete range of contract manufacturing

services to clients in pharmaceuticals and

biopharmaceuticals.

“Contract manufacturing is up because

pharmaceuticals like Pfizer, etc. have taken

on a different strategy where they don’t do

all of their own manufacturing. Estimates

are for a 12 percent increase each year,” said

Hinchen. The company is in discussions to

produce the H1N1 swine flu vaccine.

That vaccine would be added to a long

list of vaccines produced at this historical

site, now owned by JHP. Vaccines previously

produced there include the polio vaccine,

invented by Dr. Jonas Salk at the University of

Michigan in 1955, and diphtheria antitoxin,

produced there by Parke-Davis in 1903 under

the first U.S. Biological License ever granted.

“We love Michigan in terms of our site, the people, the first class support we get from rochester, and we have good support from the union.”

perrigo iS the world’S largeSt manufacturer of otc pharmaceutical productS for the Store brand market. itS primary marketS are the u.S., u.k., iSrael, and mexico.

Jhp manufactureS and SellS brand aSeptic inJectable pharmaceuticalS in hoSpital and clinical SettingS and provideS global contract manufacturing ServiceS which involve liquid, lyophilized and SuSpenSion preSentationS.

continued on page 18

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When Mary Poppins first sang “Just a spoonful of sugar

helps the medicine go down,” no one could have predicted

the rise of the $110 billion nutraceutical market, where the

food iS the medicine.

cerise nutraceuticals in traverse city produces products

leveraging the 17 antioxidants found in juicy, red, tart

cherries. “ninety percent of the business so far has been

in research development,” said ceO ray Pleva.

his efforts to promote his products’ effectiveness are

starting to create an impact as difficult to ignore as a red

cherry stain on a white shirt.

the fruit has the potential to inhibit colon cancer tumors,

reduce inflammation, and increase sleep-producing melatonin,

according to university of texas and Michigan State university

research.

Michigan State university scientists helped cerise patent a

process to create capsules from cherries and combine them with

kalaya oil, which is rich in omega 3 fatty acids. in addition to

the $35.95 bottle of capsules, cerise’s cherrylotion.com website

sells creams and lotions. Product costs range from $15.95 for

cherry-Lavender hand & Body Lotion or unscented head & Body

Lotion to $35.95 for Facial Skin Solution or Joint and Muscle

comfort Lotion.

Cerise Nutraceuticals Uses Cherries to Boost Michigan and Individual Health

the fruit has the potential to inhibit colon cancer tumors, reduce inflammation, and increase sleep-producing melatonin.

cerise’s promotional information says its products can address

dozens of problems from acne, bursitis and cancer to Parkinson’s

and shingles. how can one small red fruit help so many problems?

“Ninety percent of our health issues are related to inflammation

and digestion. Balance these problems and your body functions

start working like they should,” said Pleva.

Like other nutraceutical manufacturers, cerise wants to

avoid running afoul of regulation. “We don’t claim to heal; our

products help the body help itself back into its comfort zone,”

says Pleva. the cerise website says, “the information stated

here has not been evaluated by the u.S. Food and Drug Admin-

istration. these products are not intended to diagnose, treat,

cure, mitigate or prevent any disease.”

Still, Pleva’s anecdotal experience has produced dozens of

pages of testimonials that are difficult to ignore. One example:

“After suffering from frozen feet while serving during “Battle of

the Bulge” in WWii, i have suffered in the winters with my feet

burning, especially at nighttime. Then, after five or six applica-

tions of your cerise Joint and Muscle comfort Lotion, i am totally

free of the burning sensations and can sleep like a baby,” said

clarence Weber of traverse city, Michigan.

Also, Pleva easily cites completed and in-process scientific

research at MSu, university of Michigan, and central Michigan

university involving cherries’ positive effects on Parkinson’s,

Alzheimer’s, and huntington’s diseases.

cerise purchases its cherries in Michigan, pumping the market

of the largest tart cherry producer in the country. Although the

creams and capsules are manufactured out of state, Pleva is plan-

ning to open a manufacturing center in Michigan as sales increase.

it may come as no surprise that Pleva grew up on a cherry

farm. his family also ran the local butcher shop, and Pleva’s

innovation in the meat business was a cherry-enhanced meat

product called Plevalean, sales of which have backed his cherry

nutraceutical research for 21 years.

the tenacious enthusiasm and consummate salesmanship for

cherries that have landed him on television with Oprah Winfrey

and tim Allen show no sign of diminishing.

recently, Pleva met with Michigan governor

granholm when she visited traverse city

to give her some free products, and

also started a partnership with fit-

ness expert Peter nielsen to market

his products on his television show,

“Peter’s Principles.” “With your

backed-up research, great products,

and your passion, it’s a WOW,” said nielson.

Still, Pleva’s anecdotal experience has produced dozens of pages of testimonials.

17


ray pleva, ceo of ceriSe nutraceuticalS, actively promoteS the poSitive health benefitS of cherrieS. the company’S webSite SayS “cherrieS are the new Superfruit.”


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MAnuFActuring

EloqUEST Another relatively new firm in Michigan

also selling pharmaceuticals to the acute

care market is Eloquest Healthcare. The

firm spun off as a wholly-owned subsidiary

from the Ferndale Pharma Group, Inc. group

in 2008.

Timothy P. O’Halla, Eloquest vice

president & COO, explained that Ferndale

Pharma created the spinoff to focus on

smaller business channels—in this case

helping hospitals improve dermatological

outcomes. Eloquest’s products include drug

products and devices that minimize dermal

pain, preserve and/or repair the integrity of

the skin and ensure the integrity of devices

adhered to the skin.

Their latest device, to be launched in

2010 with co-promotional partner Echo

Therapeutics, is a handheld product that

helps painlessly remove the top level of skin

to speed the onset of a topical anesthetic.

O’Halla estimated that their portfolio

product share is 20 percent of a $130 million

market, with a client list that includes Henry

Ford Health System, William Beaumont

Hospital, University of Michigan Hospital,

Texas Children’s Hospital, UCLA Medical

Center, and Vanderbilt University Hospital.

Ferndale Laboratories manufactures

most of Eloquest’s products, allowing

reSeArch

the spinoff concept is proving a wise decision by Ferndale, whose business acumen since 1897 had made it one of the oldest businesses in Michigan.


Eloquest’s 20 employees to focus on sales,

marketing and business development.

The spinoff concept is proving a wise

decision by Ferndale, whose business

acumen since 1897 had made it one of the

oldest businesses in Michigan. Eloquest

anticipates an increase from $16.5 million

in net sales for 2008 to $19 million in 2009.

All three pharmaceuticals’ unique

strengths are notable at a time when the

Obama administration’s mantra is health-

care reform. “Like others, I’ve been trying

to figure out how to play President Obama’s

policy initiatives in healthcare,” says Glenn

Rogers, a contributing editor to Internet

Wealth Builder, “I think the generic drug

makers have the best chance of coming

out of the upheaval in healthcare smelling

like roses.”

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GRoWTH IN GloBAl MARKET FoR SUPPlEMENTS ACCElERATING A variety of factors are leading to the explosive

growth in the numbers of those health-conscious

consumers, including dissatisfaction with the rising costs

of conventional drugs, a large baby boomer population

seeking to mitigate the effects of aging, a renewed focus

on “an ounce of prevention vs. a pound of cure,” and an

increased perception that natural products are better or

healthier than synthetic ones. in just the past decade,

nutrilite has seen its sales increase by greater than

250 percent.

“We anticipate that the market for supplements will

continue to grow as baby boomers age and preventive

care becomes an increasing priority,” said hartwig.

PUSHING THE BoUNDARIES oF NUTRITIoNAl SCIENCE nutrilite is ideally positioned to meet the growing

demand for nutritional supplements. its ever-growing global

product line is developed and supported through the work

of the nutrilite health institute, which stays on the lead-

ing edge of health and nutrition through its international

research program drawing on expertise from more than

100 scientists, experts, and educators involved in clinical

research, product development, and brand education.

today the institute, led by Dr. Sam rehnborg, nutrilite

founder carl’s son, stands at the forefront of nutrigenomics,

an emerging scientific discipline that seeks to understand

how genes interact with nutrients. As research progresses,

nutrilite experts anticipate greatly expanding

offerings of nutrigenomic supplements, or per-

sonalized nutrition recommendations designed

around an individual’s genetic predisposition

to certain diseases and conditions.

ANoTHER SUCCESSFUl 75 yEARS heading into the second decade of the

21st century, all signs seem to point to

nutrilite’s continuing success and

growth as one of the most trusted

brands of supplements. “We are

proud to support the $3 billion

nutrilite brand from Ada, as we

celebrate the brand’s 75th anniver-

sary,” said Amway’s hartwig.

Ada-based Alticor’s nutrilite brand of nutritional

supplements has enjoyed more than seven decades of

success but, with today’s increased emphasis on preven-

tive health care and wellness, it’s poised to ride a wave

of even stronger global growth.

FRoM oNE MAN To A $3-BIllIoN GloBAl BUSINESS nutrition pioneer carl rehnborg debuted nutrilite in

1934, making it the first multivitamin/multimineral sold

in north America. in the 1950s, nutrilite distributors rich

Devos and Jay van Andel expanded on rehnborg’s existing

multilevel marketing system, eventually creating what

would become Amway in 1959.

today, Michigan-based Alticor, the parent company of

Amway, the nutrilite product line is the world’s leading

brand of vitamin, mineral, and dietary supplements,

enjoying global annual sales that topped $3 billion in 2008.

“nutrilite has always stood apart from other supple-

ments because of its focus on phytonutrients, the natural

plant concentrates that we grow almost exclusively on

our own organic farms,” said Jori hartwig, vice president,

Amway global Marketing.

nutrilite offers more than 200 nutritional supple-

ments, including tablets, capsules, powder drink

mixes, and nutritional snacks and bars. Its flagship

product is Double X, a multivitamin/multimineral

supplement formulated with nutrients derived

from plants harvested from Nutrilite’s 6,400 acres

of organic farms in the u.S., Mexico, and Brazil.

All products are sold through Amway’s network of

independent business owners (iBOs) to millions of

consumers in approximately 55 countries, and

Alticor sees these numbers only increasing.

“nutrilite has become a recognized brand

globally and is on track for continued market

growth in the years ahead as our iBOs continue

to make deeper inroads with our health-conscious

consumers,” said Doug Devos, president of Alticor.


Nutrilite Brand a World leader in Nutritional Supplements

“We anticipate that the market for supplements will continue to grow as baby boomers age and preventive care becomes an increasing priority.”

By David Bardallis


Nutrilite Brand a World leader in Nutritional Supplements

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it may be no exaggeration to say that if you want a sneak peek at the future of healthcare in the united States, you need look no further than Michigan,where innovations in information technology and r&D are

combining to create a wide array of new products and services that bring the increasingly important

arenas of preventive care and personalized medicine to the fore.

technOLOgY

By David Bardallis


Michigan is Where IT and R&D Meet

to Shape the

Future of Medicine

While debate over the public policy

aspects of American healthcare continues,

many Michigan companies are successfully

moving forward with technological advances

that are poised to literally revolutionize how

medical care is delivered – and received.

TURNING RESEARCH INTo CoMMERCIAl SUCCESS In Ann Arbor, decades of research at the

University of Michigan have culminated in

three spinoff companies that are successfully

harnessing the power and promise of IT

and R&D to meet the challenges – including

rapidly rising costs – of healthcare in the

21st century.

HealthMedia Inc., founded in 1998 by

UM researcher Victor Strecher, marries

expertise in behavioral science with a strong

knowledge base of healthcare topics and IT

to deliver unique “web interventions” aimed

at improving patient outcomes while reducing

costs. The result: increased productivity and

profitability for employers, health plans,

pharmaceuticals, and other customers.

HealthMedia’s “health coach in a browser”

product offerings provide automated, yet

highly tailored coaching on topics ranging

from health risk assessment, eating and

weight control, and smoking cessation to

chronic pain or disease management, sleep

improvement, and more.

healthMedia’s innovative approach to preventive, personalized care attracted the attention of pharma giant Johnson & Johnson.


of tools that will be attractive to clinicians and

their patients,” said Howard Cash, founder and

CEO of Gene Codes, which has grown to the

point it now has offices in Ft. Myers, Fla.; New

York City; and Brighton, England. “Detailed

genetic information is going to be used by

your personal physician sometime in the near

future to help diagnose and predict diseases

and select optimal treatments,” he added. “We

can debate if we’ll see that level of personal-

ized care in two years or 15, but nobody is

saying it’s 50 years away.”

Genetics Squared’s EvolverTM computational

platform integrates vast amounts of data for

the purpose of creating molecular diagnostic

tests, which use genetic information to predict

the course of a disease as well as compute the

likelihood a disease will recur or respond to a

given treatment.

“We’re at the center of the evolving field of

personalized medicine,” said Bill Worzel, CEO

of Genetics Squared. “We provide doctors with

information based on molecular characteristics

to help them obtain a more comprehensive

picture of an individual’s disease and ultimately

make better decisions regarding that individual

patient’s care.”

Understanding diseases at a molecular

level also has the potential to achieve savings

of billions of healthcare dollars, according to

Worzel. “Healthcare spending is driven largely

by errors – prescribed therapies that ulti-

mately don’t work – at tremendous cost to the

system. With the technology being developed,

we’ll be able to find the best treatment in the

fewest doses for the most patients. The more

info we have at the outset, the more effectively

we use health dollars.”

Worzel expects the company’s growth to

take off in the early part of 2010, as it releases

a molecular test for colorectal cancer.

The success of HealthMedia’s innova-

tive approach to preventive, personalized

care attracted the attention of pharma

giant Johnson & Johnson, who acquired the

company in 2008 and has since made it the

base for an entirely new market platform.

Cielo MedSolutions, spun off from

UM in 2006, is at the leading edge of a new

category of healthcare IT known as clinical

quality management systems. Its flagship

software product, the web-based Cielo ClinicTM,

is helping hundreds of medical offices to

organize, track, and utilize clinical data to

provide better and timelier patient care. By

keeping records electronically, it also pro-

vides documentation for generating reports

that accurately track physician performance.

“Cielo’s products enhance the quality

of patient care, improve practice revenues,

and optimize practice efficiency,” said David

J. Morin, co-founder and president and

CEO of Cielo. “Cielo Clinic helps providers

ensure that each of their patients are up to

date with their prevention, screening, and

chronic disease management needs.”

The company reported a 300-percent

increase in revenue and a 400-percent

increase in clinical users of its software in

2008. According to Morin, the company’s

revenues for this year have already exceeded

2008’s total. “The next five to six years

will be interesting for us, with the federal

government funding health IT adoption,”

he added. “We may see incredible year-over-

year growth rates for some time.”

Compendia Bioscience, also spun off

from UM in 2006, offers Oncomine, a web-

enabled platform that allows researchers

to access and analyze a massive catalog of

molecular data to aid in the development of

cancer-treating drugs.

“We’re bringing the world of cutting-edge

genomic data to cancer drug discoverers and

developers,” said Compendia co-founder and

CEO Dan Rhodes. “Scientists at all major

pharmaceutical companies use Oncomine to

discover new drug targets and which patients

are most likely to benefit.”

In 2008, Compendia enjoyed a 300-

percent revenue increase, and not only

did all of its present clients renew their

subscriptions to the Oncomine database,

three of the top 10 pharmaceutical com-

panies also signed up. As a result of this

growth, Compendia expects 2009 will mark

its first year of profitability. “We anticipate

continued year-over-year growth both in

revenues and staff,” added Rhodes. “We’re

up to 25 full-time employees and plan to

add another five over the next year.”

USING GENETIC DATA To CREATE INDIVIDUAlIZED CARE Two other Ann Arbor companies, Gene

Codes and Genetics Squared, are pioneering

software platforms that enable researchers

to, among other things, identify the remains

of victims of mass fatalities and develop

clinical tests to detect and treat cancer and

other diseases.

Gene Codes’s flagship product,

Sequencher, has, over the years since its

introduction in 1991, become the standard

for DNA sequencing and analysis, used by

nearly every major pharmaceutical and

commercial genomics company in the

world. The forensic version of the program

has been used to identify victims of the 9/11

attacks and the 2004 tsunami and continues

to be used to help identify U.S. soldiers who

have died in active duty.

“Gene Codes is uniquely positioned to

take technology we have developed for basic

researchers and transform it into the kinds

“We’re bringing the world of cutting-edge genomic data to cancer drug discoverers and developers.”

compendia bioScience’S online information SolutionS for oncology drug diScovery allow ScientiStS to harneSS a Staggering volume of cancer data.

“With the technology being developed, we’ll be able to find the best treatment in the fewest doses for the most patients.”


BUIlDING AN IT INFRASTRUCTURE To SUPPoRT 21ST-CENTURy MEDICINE Other Michigan companies are helping

medical professionals create and maintain

the infrastructure necessary to support the

increasing demands of a digital future.

In Grand Rapids, technology consultant

Arivium Inc. is providing high-powered IT

support to hospitals, clinical research institu-

tions, contract research organizations (CROs)

that serve pharmaceuticals, and even providers

of sports medicine informatics.

Arivium’s services include setting up

and maintaining IT systems that can capture,

aggregate, and analyze data that help research-

ers and physicians better predict, monitor, or

understand patients’ pathologies and choose

the best courses of action to follow.

“We help clients integrate data and

develop software applications and platforms

that improve delivery of services to customers.

In the case of our healthcare clients, that

ultimately translates into higher quality

patient care,” said Darren Brown, founder

and president of Arivium.

After a relatively flat 2008 and 2009,

Brown forecasts moderate growth in 2010

as the need for healthcare IT expertise

technOLOgY

accelerates. “The exposure we’ve gained by

working with clients in related, but comple-

mentary, industries leaves us optimistic

about a more integrated, cost-efficient set

of healthcare solutions,” he said.

THE FUTURE oF HEAlTHCARE IS NoW The growing fields of healthcare IT and

R&D are combining to drive technological

solutions with the potential to reduce costs,

improve care, and foster a revolution in

personalized medicine, where patients’ own

genetic data can be analyzed to predict the

likelihood of disease as well as diagnose,

manage, and treat pathologies in an indi-

vidualized way. Michigan companies are

ideally situated to lead this revolution.

healthcare it and r&D are combining to drive techno-ological solutions with the potential to reduce costs, improve care, and foster a revolution in personalized medicine.

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Ann Arbor-based DnA Software inc. (DnAS) made the edward

Lowe Foundation’s 2009 list of “Michigan 50 companies to

Watch” for good reason. the life sciences technology company

is pushing the envelope of what is possible in the field of bioin-

formatics, an interdisciplinary area where biological, computer,

and information sciences intersect to gather and analyze vast

amounts of data, such as the sequencing of the human genome.

Founded in 2000, the same year scientists first mapped the

human genome, DnAS develops commercial products that allow

researchers to quickly and accurately develop new medical

solutions from the information gleaned through the sequencing

of DnA and rnA, the nucleic acids that form the basic building

blocks of life.

“Our basic value proposition is that scientists can save

significant time and resources by utilizing our software to model

their experiments on computer rather than performing trial-

and-error experiments in a wet lab,” said Jeff Machak, vice

president of business development for DnAS. “Our customers

can simulate thousands of complicated experiments using actual

conditions with our software before running a single experiment

in the lab.”

“Our customers can simulate thousands of complicated experiments using actual conditions with our software before running a single experiment in the lab.”

those software products include visual OMP™ (Oligonucleotide

Modeling Platform™), which has become the industry’s gold

standard for designing, simulating, and optimizing a variety of

advanced nucleic acid-based assays or diagnostic tests (e.g.

multiplex Pcr and microarrays); and thermoBLASt™, which

quickly and accurately scans DnA and rnA sequences against

large genome databases to ensure that diagnostic tests are

optimally sensitive and selective.

DnAS’s software has other applications as well. “Our soft-

ware is used by many prominent research organizations around

the world in the government, academic, pharma/biotech, and

engineering sectors,” said Machak. “Some winemakers also use

our software to develop diagnostic tests to ensure their batches

are pure.”

the company also conducts its own wet lab research. “in

addition to off-the-shelf software, we offer contract research,

custom software and web applications, scientific consulting,

as well as assay development training,” said Machak. “Several

major biotech and diagnostics companies have hired us to help

solve their problems.”

recently, the national institutes of health (nih) awarded

DnAS $2.5 million in grant funding to develop novel nucleic

acid-based technologies, including DnAS’s nucleic Acid cAD™

technology, which expands rnA sequence information into

all-atom 3D structure predictions and models that scientists

can use to create better drugs.

“in silico modeling of rnA-based structures, like the ribo-

some, can help scientists accelerate drug discovery and solve

important health challenges, such as antibiotic resistance,”

said Machak.

Machak expects the company’s success to continue. “Over

the past few years, we’ve refocused our business model and

experienced growth in revenue through increased sales, and

government funding and contract work,” he said. “As a result,

we’ve doubled our staff within the past year and hired top

talent from Pfizer, Johnson & Johnson, and Siemens. Most

recently, we have expanded our r&D pipeline to create exciting

new technologies for improved diagnostics development and

drug discovery.”

“We’ve refocused our business model and experienced growth in revenue through increased sales, and government funding and contract work.”

25

Jeff machak, vp, buSineSS development, haS reaSon to Smile. dna Software waS recently added to the liSt of the edward lowe foundation’S “michigan 50 companieS to watch” and received a $2.5 million nih grant to develop nucleic acid-baSed technologieS.


one to Watch: DNA SoftwaretechnOLOgY

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development branch of Beaumont Hospitals;

and second, to make available the hospital’s

resources to the medical device community as

a way to support innovative ideas on their way

to the market.

That’s a large, long process that starts

with idea generation, and moves through

market assessment, engineering and process

You have an idea. You think it might be a good one. You think it might even sell. now what? it doesn’t matter whether you are a student, a researcher,

an inventor, or even all three. there are a number of academic-industry programs to help you evaluate,

test, and market your idea. You just need to know who to ask for help.

analysis. BCC has a laboratory that can build

prototypes — if they can’t build in-house,

they know who can. They also help with the

regulatory process and reimbursement.

“We understand what the issues are in

the hospital,” says Shallman. “We can answer

them under one roof,” since Beaumont is

a potential user and purchaser of the final

product.

“It takes a hospital to really get that info,”

explained Shallman. “Specialized surgical

staff working and looking at a product – you

can’t do that and get real world application

unless you’re a hospital.”

BEAUMoNT PRoVIDES REAl WoRlD APPlICATIoNS The last few years have shown a burst of

activity in creating programs designed to

help move innovations from the mind of an

inventor to the marketplace. Michigan has

a range of resources for biological science

innovators creating everything from software

to medical devices, or, as John Shallman,

director of Beaumont Commercialization

Center (BCC) puts it, “from tongue depres-

sors to MRI.”

BCC launched in April 2008, with a

two-fold mission: first, to be the technology

the last few years have shown a burst of activity in creating programs designed to help move innovations from the mind of an inventor to the marketplace.

ecOnOMic DeveLOPMentinnOvAtiOn


Bio Innovation in Michigan Fueled by ACADEMIC-INDUSTRy PARTNERSHIP

collaboration in Support of innovation iS making new and valuable reSourceS available to aSSiSt and educate thoSe with marketable ideaS.

By A. J. Hogg

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the univerSity of michigan’S biomedical engineering department foSterS collaborationS among faculty and reSearcherS. commercialization of new bme technologieS iS further enhanced by acceSS to the reSourceS of u-m’S medical innovation center, entrepreneurShip inStitute and medical School.

U oF M SERVICES SPAN SPECTRUM oF ENTREPRENEURSHIP In a similar way, the University of Michi-

gan Medical Innovation Center (MIC) takes

advantage of its connection to the University

of Michigan Health System. Brenda Jones,

MIC’s managing director, said their goal is to

“serve the inventors at the University of Mich-

igan throughout the entire campus.” Started

in April 2008 MIC also assists companies

outside the university, such as medical device

developers. And, like Beaumont, they are able

to tap into their prototyping laboratory and

front line clinician-provided feedback.

“The flagship of our mission,” Jones

said, “is our one-year fellowship.” What

started as a fellowship in multidisciplinary,

team-oriented health technology innovation

is expanding next year to allow a company

to send an employee still on its payroll to

attend the fellowship.

Last year’s initial class of five fel-

lows (business, engineering, and medical

students) turned out well — they have

already started a company, Tangent Medical.

Jones said, “We got them into an Ann Arbor

SPARK boot camp, and through boot camp

they made contacts.” Those contacts helped

Tangent with funding.

You might not have known that MIC

or its fellowship existed at the University

of Michigan, but Daryl Weinert, execu-

tive director of the University of Michigan

Business Engagement Center (BEC), did.

He describes his job as the “U’s interface

with the business community.” BEC helps

connect people in the university’s depart-

ments (like MIC) with people they hope to

help. “We make useful connections for both

sides,” he said.

The BEC works with all fields of busi-

ness, not just biological science, and inter-

acts with Fortune 500 companies on a regu-

lar basis, as well as individual entrepreneurs

and everything in between. All of their

clients think the university can help them be

more successful, even if the university can’t

always help. In those cases, BEC has liaisons

with entities around the state – economic

development agencies, chambers of com-

merce, small business administrations, and

other universities. “We now have better odds

to make useful connections,” Weinert said.

“If there wasn’t a BEC, people would

enter through all kinds of different doors,”

Weinert explained. Some would find who they

needed, others wouldn’t. Since BEC opened in

December 2007, life science and engineering

have been the two biggest points of interest,

according to Weinert. So, naturally, BEC main-

tains satellite offices in the Medical School

and the College of Engineering

Bec has liaisons with entities around the state — economic development agencies, chambers of commerce, small business administrations, and other universities.

By maintaining a university-wide knowl-

edge base, Weinert’s goal is to help clients.

“We’re going to get them an answer. We can’t

always guarantee that the answer is ‘yes,’ but

sometimes ‘no’ is just as helpful.” It saves time

if you can skip following up ideas that aren’t

going anywhere.

After WWII, Wallace Coulter developed a

method to count blood cells – the CBC that

comes back when you get bloodwork. By auto-

mating it, he created a company that did quite

well. Jim O’Connell, the director of the Coulter

Program, in the University of Michigan’s

Biomedical Engineering (BME) Department

explained that when Coulter died, his founda-

tion gave money to ten different departments in

ten different schools to support basic research

along the lines of Coulter’s innovation.

“My role is trying to promote biomedical

research,” said O’Connell. “Our job is to

support the faculty so university intellectual

property can make it out there.”

Like many academic-industry partner-

ships, the Coulter Program and BME assess

proposed technology and find out how much

time and money it would take to get a product

to market. If it looks promising, they can help

find more funding for research, or state and

small business grants. If the product is ready to

commercialize, they can help get the product

ready for market, help make decisions about

personnel (not everyone is cut out to be a

CEO), as well as make connections to deal with

regulation concerns, design, and other details.

O’Connell aims to “find the right stuff

that’s already in development” and to provide

“people, focus, and direction” in order to

“speed up the process of getting great research

out of the University and helping patients.”

MTEC MATCHES NEEDS oF REGIoN WITH UNIVERSITy RESoURCES Jim Baker, the director of Technology and

Economic Development (TED) at Michigan

Technological University (MTU), has similar

goals. He describes TED as in-house commer-

cializing and consulting. “We give a lot of advice

and do some of the work,” he explained.

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From first inkling to finished product, innovation in Michigan is moving ahead with the help of an array of creative resources that help get ideas to the marketplace.

innOvAtiOn

TED also operates a satellite of the Michigan

Small Business and Technology Development

Center (MSBTDC), which allows them to

consult for any regional company and help

match their technology needs with resources

of the university. “We’re in the business of early

stage business consulting,” he said. “We serve

both internal and external innovators.”

Baker thinks of this as focusing on the

“beginnings of a company,” including patent

protections, a commercial plan, licensing or

starting a company, participation on boards,

funding advice (venture and angel), commer-

cialization of grant activity, supporting grant

writing activity and marketing.

From first inkling to finished product,

innovation in Michigan is moving ahead with

the help of an array of creative resources that

help get ideas to the marketplace.

The Pharmaceutical Research and Manufacturers of America

PhRMA MEMBER COMPANIES ARE COMMITTED TO SUPPORTING ECONOMIC GROWTH & FURTHER RESEARCH

THAT LEADS TO GOOD JOBS & THRIVING COMMUNITIES.

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BioscienceWarner’s Life Sciences Group has the diverse talent required to bring your product or idea all the way from patent stage to commercial market. To get started, call Amy Rinaldo at 248.784.5107.

A better partnership.

Dedicated Partners in Michigan’s Biotechnology

Research and Development

www.wnj.com | Southfield P: 248.784.5000 | Sterling Heights P: 248.784.5199

29

MSU Business-CONNECT links your business to world-class knowledge experts.

Charles Hasemann, Executive Director ∙ [email protected]

Connect your business to MSU today!

MSU Business-CONNECT can help you leverage Michigan State University’s wealth of resources, efficiently and effortlessly, helping you tap into areas of the university you might not have known existed. Whether it’s biofuels and biomaterials, sustainability or supply chain, Business-CONNECT can be your single point of contact to put the right resources and people together to make it happen.

—Work with our faculty researchers to develop new ideas, help reduce your ideas to practice, or refine and test your products.

—Partner with us to bring MSU faculty innovations to market.

businessconnect.msu.edu



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DBA-A - BioMatters Ad_printready_outlined.pdf 3/12/2009 1:52:54 PM

Intellectual Property

Design Engineering

Usability Testing

Prototyping

Clinical Trials

FDA Approval

It’s just what the doctor ordered.

Anyone who has ever had a good idea knows you can’t nurture it alone. It takes a hospital. One that can help turn your idea into a breakthrough. Introducing the Beaumont Commercialization Center, with the resources to handle everything from prototyping to clinical trials. And everything in between. Because at Beaumont, we live for good ideas. Where ideas go to get better.

Office of Grants, Contractsand Sponsored Research544 O’Dowd Hall2200 North Squirrel Road, Rochester, MI [email protected] | oakland.edu/research

APPLIED RESEARCHOAKLAND UNIVERSITY

Oakland is a known leader in many applied researchdisciplines, including biomedical research, manufacturing,information technology, alternative energy/power trainand homeland defense. To foster emerging discoveries,the university features several noted research centers,including the Fastening and Joining Research Institute,Center for Biomedical Research and Eye Research Institute.

For further information, contact:T.C. Yih, Vice Provost for Research, (248) 370-2552

AAF-3198 9.09


if you have 3,200 head of cattle,

you probably have a manure problem.

it’s simple biology. A dairy farm, near

Bad Axe, was restricted from adding

more cows for just that reason. But

what if it could install an anaerobic

digester to help with the manure and

odor problems? even better, what if it

could capture the methane gas given

off by the digester, and use it to power

an on-site hydroponic greenhouse? And

what if that greenhouse grew fresh

produce on a year-round basis, supplying

Meijer and Spartan stores? not only

does that solve a waste problem, but it

converts waste into a revenue stream.

the people who help develop these

ideas work for Michigan State university’s

Product center for Agricultural and

natural resources. When founded in

2003, the Product center focused on

agricultural startups, where MSu’s expertise in food science

could be tapped: kitchen licensing, shelf-life, packaging, and

marketing. the Product center still works with agriculture

startups, but it decided in 2008 to expand. Associate Director

Ruben Derderian now works to find new ways to produce fuels

and chemicals from biomass instead of petroleum, to reduce

reliance on oil and to take advantage of Michigan raw materials.

A bioeconomy.

MSu hired Derderian last October to build bioeconomy

connections with the university’s chemical and materials

experts. “in order to properly support these products, it

required expertise not available at the

product center,” said Derderian, who

brings 35 years of experience running

medical device businesses and consulting

with independent Michigan startups.

the Product center expansion is in

its early stages, but Derderian sees

himself as “a porthole to the university,

bringing clients and university

technology together.”

Already, the Product center

has been fostering this connection in

the northern lower peninsula, where

there are many fallow fields. As a way

to better use them, a group of growers

looked at how canadians used similar

land – they grew canola. canola likes

mediocre quality soils, can overwinter,

and has a relatively short growing

season. A good fit. This fall 500 acres

are ready for harvest from 34 test plots

near central Lake, just southeast of traverse city.

Because canola has a higher oil content than soy, there

is a clear connection to biodiesel production, and the Product

center has been able to connect biodiesel producers with

MSu’s chemical engineering experts to help smooth out

production. Since canola is high in healthy omega 3 fatty

acids, the Product center can use its connections in food

science to explore food use and marketing. And once the oil

is pressed from the seeds, the remaining meal makes a good

foodstock for pigs, converting a waste product into value.

innOvAtiOn

Moving Toward a

Michigan BioeconomyMSu Product center for Agricultural and natural resources

mSu’S product center iS foStering a dynamic bioeconomy. anaerobic digeSterS capture methane gaS from manure and uSe it to power a related greenhouSe, Solving a waSte problem and converting it into a revenue Stream.

MSu’s Product center now works to find new ways to produce fuels and chemicals from biomass instead of petroleum, in order to reduce reliance on oil and to take advantage of Michigan raw materials. A bioeconomy.


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Many of their products measure various

biomarkers of physiological and biochemi-

cal functions in blood or other body fluids,

explains Stephen Rapundalo, president

and CEO of MichBio. The companies either

sell their reagents as components and/or

package them as kits for sale to their clients,

primarily drug companies, universities,

research institutions, clinicians and the

federal government.

As these Michigan biotech companies

grow “and their products extend out

globally, the companies strengthen their

bottom lines and bring money into

Michigan’s economy,” Rapundalo says.

Just as importantly “they also help reshape

and strengthen Michigan’s image as a

biotechnology center.”

DIVERSE PRoDUCT lINE DRIVES SAlES AT NEoGEN Lansing-based Neogen was formed 27

years ago to utilize technology developed at

Michigan State University in an attempt to

diversify the Michigan economy away from

autos and into biotech. Its first product was

a grain test for naturally occurring toxins.

Since then the company has expanded

and diversified its product line, developing,

manufacturing and marketing a diverse line of

products dedicated to food and animal safety.

It makes more than 200 diagnostic test

kits to detect everything from food-borne

bacteria to food allergens. For the animal

market it makes two immune stimulants,

instruments, pharmaceuticals and an equine

botulism vaccine manufactured in Lansing.

“By bringing food safety back inside the

farm gate, (we) hope to keep animals healthy

to keep the food supply safer,” says Rod Poland,

director of corporate communications.

Neogen has a significant presence in four

American cities (Lansing and St. Joseph, MI

Lexington, KY and Randolph, WI), as well as

Scotland, Shanghai and Mexico. It operates in

a multi-billion-dollar international market,

and Poland believes the company ultimately

can grab about $1 billion of it annually.

Currently the company derives 40 percent

of its revenues from international markets,

a percentage that it would like to grow

eventually to 66 percent, he adds.

developing new productS iS JuSt one way neogen buildS SaleS.

reSeArch PrODuctS


State’s Biotech companies Are Making their Presence Felt

By Steve Raphael

Michigan biotech companies are rapidly growing their presence on the world’s stage, selling their products to a diverse customer base all around the globe.

As companies grow they “strengthen their bottom lines and bring money into Michigan’s economy.”

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cayman chemical manufactureS, analyzeS and SellS more than 3,500 bio-chemicalS, antibodieS, enzymeS, and aSSay kitS.

To get there means more of the same

strategies the company has employed for

years, notably building and maintaining

personal relationships with clients and

distributors, primarily through telephone

sales calls. To reach its food safety market,

the company calls more than 100 distributors.

For its veterinary market, there are veterinary-

specific distribution groups available, as well

as direct sales to customers.

Introduction of new products, expansion

of international markets and acquisitions

and strategic alliances are other means the

company will use to help generate even

more sales, he adds.

The strategy has resulted in a “remarkable

record” for revenues and profitability over the

years, Poland says. The company has made

money for 16 years, recorded sales of $118.7

million last year and employs about 500

people. Ultimately Neogen’s best marketing

strategy is its products. It says its diagnostic

test kits are less expensive, easier to use and

provide greater accuracy and speed than

many of its competitors’ products.

ASSAy DESIGNS WINS WITH SMART MARKETING The biotech companies have put together

comprehensive marketing campaigns to win

their way in the international marketplace.

Perhaps the best marketing strategy belongs

to Assay Designs. In March, the company

was purchased by New York City-based Enzo

Biochem Inc., a publicly traded company, for

$12.2 million.

That’s a “very fair statement,” says David

Goldberg, Enzo Biochem’s vice president

of corporate development. “What we give

(them) is the ability to piggy back onto our

infrastructure. They gain exposure by being

part of our bigger marketing organization.”

Former Assay President and CEO Daniel

Calvo couldn’t agree more. Through its

new relationship, the 17-year-old company

is now set “to achieve accelerated growth

and a stronger market position than (we

could have) accomplished as a standalone

company,” he says.

Enzo Biochem developed the technol-

ogy and platform currently in use for the

identification of human papilloma virus. Its

technology also plays a role in a number of

diagnostic kits used to identify and quantify

other viral infections, as well as in some

cytogenetic applications to determine

diseases of genetic origin.

Assay Designs makes immunoassay kits,

bead-based multiplex assays, antibodies,

and proteins, including Stressgen brand

kits and reagents for cellular stress research.

This complementary product line comes

with “very strong brand equity,” Goldberg

says. “When we go to trade meetings all we

have to do is (display) the Assay Designs

product and it’s a no brainer. Assay Designs’

customer base is very loyal. We could take

(its) name off and put ours on their prod-

uct…we want Assay to keep (its) identity.”

Enzo Biochem has a presence in New

York, Pennsylvania, California, Switzerland,

Great Britain and Belgium, and works with

more than 50 distributors worldwide. The

33-year-old company employs 650 people

and generated $100 million in sales last

year. Assay Designs employs 80 people and

recorded about $12 million in sales last year.

Goldberg says Assay Designs will remain

in Ann Arbor, and its senior management

team will remain actively involved in

Enzo Biochem. Assay Designs will keep its

identity and be transformed into a center of

excellence, he adds.

CoMPETIToR CoMPARISoNS AND ToP-NoTCH SERVICE ARE INTEGRAl To CAyMAN CHEMICAl STRATEGy Growth is the optimal word at Cayman.

It generated $22 million in sales last year

and is profitable. Operating in a billion-

dollar market, the company wants to increase

sales to at least $50 million annually over

the next five-to-10 years and believes it is

“just touching the surface of its market

potential,” says Shannon Stacey, vice presi-

dent of quality and regulatory affairs. It will

expand its Ann Arbor facility over the next

few years while expanding its marketing

activities to ensure growth.

The company manufactures, analyzes and

sells more than 3,500 bio-chemicals, antibod-

ies, enzymes, and assay kits. It has branched

out into healthcare applications, making a

handful of products under the FDA and Good

Manufacturing Practices guidelines for use in

drug products. The company custom designs

all its products and makes them on a contract

basis, Stacey says.

Its marketing strategy is as basic as can

be: comparative shopping. “One main piece

is our ‘Cayman Challenge,’” Stacey says.

“We give any potential new customer using

a competitor’s kit our equivalent kit for free.”

Then the customer can use both kits and

form his or her own conclusion as to which

kit performed best. “We are confident that

our kits will out-perform our competitors,”

she adds.

Employees also scan the latest

scientific research and findings as a means

to boost sales.

“As soon as we see the first publication

on a relevant biomarker we try to get it out

on our product line,” Stacey says. “Maybe

someone isolated something and may need

a tool. We look for gaps (in a scientist’s

research) to see what kinds of products we

could provide.”

Then there’s the tried and true. Technical

support and customer service “is the key

to our strategy and success,” Stacey says.

Cayman employs 265 people, including 165

people in Ann Arbor and another 100 people

working in its wholly owned subsidiaries in

the Czech Republic, Estonia and Australia.

Operating in a billion-dollar market, cayman believes it is “just touching the surface of its market potential.”

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technOLOgY

cayman’S bioanalytical aSSay ServiceS help thoSe who don’t have the time or perSonnel to run their own SampleS, lack the proper equipment or require

cuStomized protocolS.

Nearly 65 percent of its products are sold

to customers in the U.S., with the remainder

sold worldwide through the company’s

distribution network. The company’s diverse

array of products “is one of our greatest

strengths,” Stacey says.

STRoNG FUNDAMENTAlS PRoPEl oxFoRD BIoMEDICAl RESEARCH Oxford Biomedical Research Inc. in

Rochester Hills is a “strong, research-based

company devoted to high quality and reliable

performance,” says its president and founder

Denis Callewaert. That is the foundation of

the company’s success, “as opposed to glitzy

marketing.”

The 24-year-old company makes and

markets 750 life sciences tools, such as

bio-assay kits to measure biomarkers.

It also sells recombinant proteins and

antibodies for biomedical research and

drug discovery.

Oxford Biomedical serves 12 clients

in Michigan, the largest of which is the

National Institutes of Health, and has

contracts with 35 overseas distributors.

Company revenues last year were

$1.4 million, and Callewaert says the

company’s market potential is $200 million

annually. To reach that goal the company

has embarked on a variety of marketing

strategies, from embracing the Internet

to exhibiting at several biotech-related

conferences annually.

“We won’t place big ads in trade maga-

zines, but we will help customers pick the

right reagents for their work,” he says.

The 25-year-old company - one of four

biotech companies Callewaert has started,

with three still active - has recently launched

a fifth company. That company, Wellness

Indicators, offers “a big growth opportunity,”

he says. Wellness Indicators will reformat and

market specific Oxford products that measure

oxidative stress, antioxidant activity and in-

flammation for the human healthcare market.

Product is the name of the game at

Oxford, and by reinvesting profits into research

and development, Callewaert is confident

the company can grow 10-15 percent

annually in the research market.

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Since 1929...


technOLOgY

in just a few short years, Detroit-based start-up company

Asterand plc has taken its place as one of the top-performing

biotech companies in Michigan.

the company has carved out a niche in the human tissue

market, supplying tissue worldwide to pharmaceutical and biotech-

nology companies. Asterand offers unparalleled access to human

tissue through its worldwide procurement network of 83 active

collaborative donor institutions.

For years drug companies have been

somewhat stymied in their research and

development as animal tissue was providing

only a partial guide to drug performance in

clinical trials, says Asterand ceO, Martyn

Coombs. Asterand jumped in to fill that market,

providing human tissue-based models at all

stages of the discovery process as the concept

gains acceptance.

Asterand works with a “very specialized set

of research products,” says Stephen rapundalo,

president and ceO of MichBio, the state’s

bio-industry trade association. the company is

“a true innovator in the up and coming bio-banks

sector worldwide, and today provides high quality,

well-characterized human tissue and human

tissue-based research services.

Asterand was started in 2000 by randal

charlton and Oxford Bioscience Partners and

worked out of the Barbara Ann Karmanos cancer institute in Detroit.

In 2006, it merged with Pharmagene,a drug discovery company

based in royston, great Britain. Asterand continues to maintain an

office in Royston.

Asterand went public in 2006 and last year recorded its first

profit of $7.2 million on sales of $28.2 million. The company employs

94 people, including 65 in Michigan. It is traded on the London Stock

exchange and, of 2,000 companies, was the exchange’s best performing

stock last year, climbing nearly 160 percent and closing the year at

21 cents a share.

Asterand inherited the London Stock exchange listing from

Pharmagene “and stuck with it despite pressures to downgrade to

the AiM (the London exchange’s international market for smaller

growing companies) because we were ambitious and thought that

we would grow into the full listing,” coombs says.

Last year, the Scientist magazine named Asterand as one of the

top 30 “Best Places to Work” in the life sciences industry in a survey

conducted with more than 200 biotech companies in the united

States and Europe. In 2004, The Michigan Economic Development

corp. named Asterand its high tech company of the Year.

the company’s client base includes 29 of the top 30 global

pharmaceutical and biotechnology companies and extends to academic

and government customers. Last year the company completed a

$2.9 million contract with the u.S. Department of Defense to review,

assess and provide recommendations on the optimal research use of

its bio specimen repository in Washington, D.c.

Signs point to the company growing bigger and stronger. “the

market for human tissues and human tissue-based services is still

relatively young but is estimated at $700-800

million,” coombs says. Last year 80 percent of

Asterand’s total sales were in north America.

thanks to a highly fragmented human tissues

and services market, Asterand’s largest competi-

tion comes from academic and nonprofit groups

that provide human tissues and services to a few

internal groups or collaborators, estimated at

70 percent of the total market.

coombs says Asterand’s position as “the

largest, most well-recognized commercial com-

pany in this field — we estimate at least twice

the size of other commercial competitors” —

will facilitate the company’s future growth.

the company also is more able to

custom tailor its products than a local academic

center or small commercial player, he adds.

According to coombs, Asterand’s future

sees expanding its supply network, extending

its product offerings and hiring more sales people as well as forming

stronger collaborations with local Michigan centers of excellence.

the company will also keep a sharp eye out for acquisitions and

mergers, coombs says.

aSterand waS the beSt performing Stock on the london Stock exchange laSt year and waS named one of the top 30 “beSt placeS to work” in the bioScienceS induStry by The ScienTiST magazine.


Last year, The Scientist magazine named Asterand as one of the top 30 “Best Places to Work” in the life sciences industry

martyn coombS, aSterand ceo, SeeS a future of expanded productS, more SaleS people, and collaborationS, along with a larger Supply network for the company.

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Advancing Michigan Bio-Industry Growth Through Education & Advocacy By Joe Schwarz, M.D. and Kim Ross-Jessup The biosciences industry globally is predicted to see significant and steady growth as the

healthcare needs of an aging population magnify. Michigan has a strong foundation in the

biosciences courtesy of a recognized heritage in pharmaceuticals, medical devices, industrial

bio-based technologies, contract research, research products, diagnostics and others. The state’s

primary research universities have been powerhouses in bioscience R&D funding and discov-

eries. The challenge for Michigan will be to sustain bio-industry growth both as an economic

engine and a source of healthcare innovation. This will require a supportive business and

regulatory environment, and a portfolio of resources, especially access to investment capital,

established with public sector assistance. Advocacy for these key elements of industry success

is essential if Michigan is to be a “player” in the global bio-economy.

Decisions made in Lansing or Washington can directly help or harm the success of bioscience

companies. Addressing opportunities and threats with policymakers is one of the most critical

factors for the success of our highly competitive industry. That is why MichBio has built an

advocacy infrastructure to represent its members’ interest and seeks to influence decision

makers on issues such as commercialization resources, capital formation, business and tax

climate, regulatory requirements, economic development, and more.

Michigan has a complete advocacy infrastructure in place for its bio-industry. MichBio

instituted a Policy & Legislative Affairs Committee to develop state and federal policy agendas.

Michigan has a Bioscience Legislative Caucus, a group of legislators that are interested and

support the industry. The state is alone in having standing subcommittees in both its House

(New Economy and Quality of Life Biosciences Subcommittee) and Senate (BioTech Task Force

on Economic Development). This is a veritable one-two-three punch to develop legislative

initiatives that will help grow the state’s biosciences industry. Working in partnership with

regional organizations and partners, MichBio now leads an ongoing dialogue with the various

groups our technology affects to create science-based policy and better awareness of our industry.

Investment is needed now if we want to see some of the glorious predictions of a bright

medical future come true. We must aggressively invest resources to foster a better understanding

of the science, technologies, and products emerging from our bioscience research labs and

manufacturing facilities. Educating decision makers, and more importantly, healthcare consumers

will result in better acceptance of new treatments, devices and diagnostics that will improve our

quality of life and help protect the industry from attacks stemming from anxieties over innovation.

An informed public supportive of science will also help develop a more knowledgeable talent

pool for the future. All together, the benefits of better understanding and advocacy for our

business will greatly aid the bio-industry’s growth in Michigan.

Sustaining Michigan’s biotech industry requires integrated public policy if we are to reap

its economic benefits. MichBio is dedicated to informing our decision-makers of the value our

industry offers for the state’s future and the well-being of our citizens. Our common agenda

should be the success of Michigan’s bio-industry.

Dr. Schwarz and Ms. Ross-Jessup are co-chairs of the MichBio Policy & Legislative Affairs Committee. Joe Schwarz is a former U.S. Representative (2005-2007), member of the Michigan Senate (1987-2002), and currently serves on the MichBio Board of Directors. Kim Ross-Jessup is Director of Government Affairs (Michigan/Wisconsin) for Pfizer, Inc.

Nurturing an idea into a market-able product and growing it into a dynamic, self-sustaining bioscience company is a process. How do Michigan companies connect with the right people, learn what they need to know, find the resources to keep the pipeline flowing?

We know people.

In a state boasting the world’s longest freshwater coastline, with oceans of lakes, where water is a way of life and life is good; in an industry that studies life at its core, MichBio is there to propel Michigan’s bioscience people, products and prospects.

Join us.

MichBio brings the total continuum together. We know the players, the market; and what it takes. We give you access to a valuable network of people representing all facets of the biosciences community. We are your matchmaker, your guru and your standard bearer.

Ann Arbor, MichigAn 734.527.9150 www.Michbio.org

Get Connected.

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BioMatters - Fall 2009