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HHeeaalltthhccaarree iinn BBaavvaarriiaa

Bavarian Ministry of Economic AffairsInfrastructure, Transport and Technology

Invest in Bavaria – The agency that pulls the stringsInvest in Bavaria is the business promotion agency of the Bavarian Ministry of Economic Affairs. Our inter na-tional team is there to offer you confidential assistance with setting up a new business or expanding yourpresent facilities in Bavaria. We will provide you with information, help you find a suitable site and arrange con-tacts with government agencies as well as local partners and networks. Our service is of course free of charge.

Comprehensive one-stop serviceOur services range from the initial steps to set up a business operation, the identification of the optimal locationin Bavaria to arranging contacts with potential employees and customers. We provide interested companieswith business data and information on public support and incentive schemes. Invest in Bavaria facilitates initialcontacts to relevant public administration departments, industry and business associations as well as key networks.

Network to networksIn view of the key importance of networks we provide detailed information on and networking opportunitiesthrough the Bavarian State Government's so-called Cluster initiative. Known officially as “Alliance BavariaInnovative”, the program aims to create and foster the formation of state-wide networks comprising companies,research institutions and organisations and public administration in 19 key industry sectors. Cluster spokesmenand managers create platforms that enable industry and science to forge new and intensify existing ties.

International outlook for the benefit of our customersOne indicator for Invest in Bavaria's international outlook are our language capabilites: aside from German, theteam offers fluency in English, French, Spanish, Chinese, Japanese, and Russian. Our multilingual website pro-vides information and data in German, English, French, Japanese, Chinese and Korean. Moreover, 20 Bavarianrepresentative offices worldwide, from Moscow to São Paulo, from California to Tokyo, assist Bavarian com-panies abroad and foreign companies interested in Bavaria.

Promoting a strong locationAside from the acquisition of and support for inward investors, Invest in Bavaria also promotes and marketsBavaria as a top business location. We take part in major trade fairs and industry conferences, organize seminars,company and location visits for investors and initiate targeted promotion campaigns as well as journalists’briefing to promote Bavaria - and Invest in Bavaria’s range of services. With some success: major investmentprojects such as Merck & Co.’s (MSD Merck, Sharp & Dohme) new headquarters near Munich for its EMEA andCanada business, the decision by Linde to relocate its group headquarters to Munich, the opening of the newGE Healthcare Commercial Center in Munich or the move to Bavaria of Sandoz’s HQ testify to our team’scompetence and commitment.

The life sciences are one of the major sectors in Bavaria’s high-performing business community.The sector is comprised of such global players as Siemens, GE Healthcare, Beckman Coulter, Novartis,Roche, Daiichi-Sankyo and MorphoSys. One key reason why these companies have set up R & D,pro duction and other facilities in the state is to work with Bavaria’s Europe-leading scientific com-munity, which includes 11 Max-Planck-Institutes, the 3 centers maintained by the Helmholtz Societyand 10 Fraunhofer institutes. World-class basic and applied research is also carried out by the state’s11 universities and 17 universities of applied sciences. Many of the graduates of these top-rankedinstitutions of higher education go on to work for the above companies and for the large number oflife sciences SMEs in Bavaria.

Among the customers for the advanced products and services emanating from Bavaria’s life sciencescommunity are the state’s health care facilities, whose reputation for excellence of treatment partiallystems from these items. This reputation attracts many thousands of patients from around the worldto Bavaria each year. These patients join local residents in being treated at the state’s 400 hospitalsand 350 centers of palliative medicine and rehabilitation. Others find cures for their ailments andwellness for body and soul at the state’s more than 50 spas and clinics.

The high level of performance achieved by Bavaria’s highly diverse life sciences sector stems fromthe close working relationships existing among the state’s companies, research institutes andhealth care facilities. This level makes the industry a centerpiece of the state government’s economicdevelopment efforts. This networking has been greatly furthered by Bavaria’s Clusters Initiative, whichwas launched in 2006 to forge and foster ties between the state’s business, especially its high-techcompanies and academic communities, so as to ease and expedite the process of turning researchfindings into market-making products and services. To further this process, the state governmenthas enacted policies improving the conditions under which R & D is conducted. These, in turn, havegreatly increased the efficiency, effectiveness and thus output of research operations in the state,and have accordingly helped Bavaria remain one of the world’s centers of advanced technologies.

To enable investors to profit from these technologies, the state government has set up a world-spanning network of representative offices located in 20 cities. These offices work closely withInvest in Bavaria, the state’s business promotion agency, and with sector and regional networks in lo-cating the sites and providing the expert services needed by investors to grow in the state.

Provided free of charge and for each step in the investment process, these services put each andevery investor in touch with the organizations, clusters and networks, and associations capable ofturning plans into completed projects.

This brochure will show you why Bavaria is such a great place to do business, and how our state’sedges over competitors and efficiencies of structure and infrastructure make it the ideal base foryour operations in the fields of biotechnologies, medical technologies and pharmaceuticals. Profitfrom these opportunities!

Martin ZeilMinister of Economic Affairs, Infrastructure, Transport and TechnologyState of Bavaria

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Preface

Martin ZeilMinister of Economic Affairs, Infrastructure, Transport andTechnologyState of Bavaria

03 PrefaceMartin Zeil, Minister of Economic Affairs,Infrastructure, Transport and Technology,State of Bavaria

05 Bavaria Set to Become World’s No. 1 Healthcare LocationAn overview

06 “The Munich biotech cluster has aleading position in Europe”Interview with Hanns-Peter Wiese andHolger Reithinger, Partners of Global LifeScience Ventures

07 “The number of new companies hasbeen constantly increasing”Interview with Prof. Dr. Horst Domdey,Managing Director of BioM

08 “Bavaria will grow into a leadingsite in Europe and beyond”Interview with Prof. Dr. Michael Nerlich,Head of the Department of Emergency Sur-gery at the University Clinic Regensburg

09 “The Munich area has a strong attrac tion for international skilledpersonnel”Interview with Dr. Ulrich Dauer, CEO of 4SC AG

10 Investing in HealthJuliane Quaranta and Michael Thiess,SANEMUS AG, Munich

11 Flourishing Hospital Landscapes inBavariaDr. Holger Bengs and Matthias Heitmann

12 Bavaria’s Landscape of InnovationBavaria in the top league for biotechno-logy and pharmaceutical researchMatthias Heitmann and Dr. Holger Bengs

14 Approval of Medicines: A Sciencein ItselfMatthias Heitmann and Dr. Holger Bengs

15 “Regenerative methods will sup-plement transplantation medicine”Interview with Dr. Med. MatthiasSchieker, manager of the Laboratory forExperimental Surgery and RegenerativeMedicine

16 Symbiosis between Diagnosticsand Medicine DevelopmentBavaria Makes Progress in FundamentalResearch for Personalised Medicine

18 “By bundling resources even morecan be achieved”Interview with Prof. Dr. H.-Erich Wich-mann, Helmholtz Zentrum München

19 “Geographical proximity is very important”Interview with Prof. Dr. Günther Wess,Helmholtz-Zentrum München

20 “Innovation Made in Germany”Molecular Biologics: Small and Medium-Sized Bavarian Biotech Companies atthe Forefront

21 “We have a very close relationshipwith our tenants”Interview with Dr. Peter Hanns Zobel,Managing Director of IZB GmbH

23 “Many investors want to be in thestock before that happens”Interview with Dr. Simon Moroney,Chairman of Morphosys

24 “Bavaria is a technology-friendlysite”Interview with Dr. Joachim Eberle, Re-search and Development Manager atRoche Professional Diagnostics, Penzberg

26 Ideal Conditions for Biotech Com-panies MIKROGEN GmbH: 20 Years of OrganicGrowth

27 The Sound of LightHelmholtz Zentrum München: Making light audible

28 To See More ClearlyMany Innovations in Imaging Comefrom Bavaria

30 “We require suitable programmesfor binding people to Bavaria”Interview with Prof. Dr. Peter Jakob, University of Wurzburg

31 Innovative Environment in BavariaAn excellent location in which to relo-cate or found a medical technologycompany

32 For More Quality of Life and Inde-pendenceTelemedicine and Homecare Growing inImportance

Contents

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ImprintBayerisches Staatsminis-terium für Wirtschaft, Infrastruktur, Verkehr und TechnologieInvest in BavariaPrinzregentenstr. 2880538 Munich | Germany

Tel.: +49 89 2162-2642Fax: +49 89 2162-2803

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No other German state has pursued such an am-bitious and determined life sciences policy asBavaria over the last 15 years. The Free State’sbiotechnology and medtech-sector is now the lar-gest and most dynamic in Germany. This is all themore remarkable as conditions in Bavaria were notthe best at the start of the European life sciencesboom in the mid-1990s. But what exactly has dri -ven the region’s success? Which companies havedeveloped there? And what have politicians doneto create such a favourable climate? An insight intothe bits and pieces that have shaped the location.

The right environment for the industryThe state of Bavaria has made life sciences (com -prised of medtech, biotechnology and geneticengineering) one of the thrusts of its high-techcampaign. To that end, the state government

provided funds – in addition to those already bud-geted – amounting to some EUR 80 million duringthe period 2000–2005. These funds stemmed fromout-of-budget sources. This support complementsthe generous funding supplied for many years bydedicated technology development programs toresearch & development projects in that area.

There are certain conditions that innovative com-panies look for: first class research institutionsto act as development partners and to generatespin-offs; local venture capitalists prepared to in-vest long-term; potential collaboration withmajor pharmaceutical businesses and, above all,political support. Bavaria offers conditions thatare unique in Germany for three of these four re-quirements. Munich, for example, is home to ne-arly half of all German venture capital companies

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Bavaria Set to Become World’s No. 1

Healthcare Location

An overview

Biotech Cluster in Bavaria• BioTech region Munich: The Munich metro-

politan area is home to a uniquely powerful groupof research facilities: Max Planck institutes, theHelmholtz Center in the city, and those maintai-ned by Munich’s top-ranked universities – LMUand TU. These institutes include the world-re-nowned Gene Center and the CeNS. The Centerfor Nano sciences is one of the world’s leaders inthe development and application of nanobiotech-nologies. The universities also main tain researchhospitals. Located in the Munich’s southernmostdistrict of Großhadern and the adjoining com-munity of Martinsried, the Life Sciences Cam-pus forms the core of Munich’s BioTech region.The campus is home to nearly half of the region’sbiotechs, to the IZB center of innovation and in-cubation, to Max Planck Institutes, to the Helm-holtz Society’s center, to the Gene Center, to themajority of LMU’s departments of sciences, andto the Großhadern research hospital.

• One of Europe’s major centers of green (plant-derived) biotechnologies is Freising-Weihen -stephan, a town to the north of Munich, thiscam pus is home to a large number of researchinstitutes, many affiliated with universities,and to an incubation center. It all adds up to agreat place to develop advanced products andservices.

• BioRegion Regensburg has all of the elementsof a successful region: its Bio Park incubationand development center, the government of theEastern Bavaria region, and the local universityand university of applied scien ces. The latterspecializes in fluorescent bioanalytics, molecu-lar diagnostics, biofunctional surfaces, sensorsand applied biomedicine.

• BioRegion Franconia: The region is home tothree nodes of biotechno logical development.Thanks to its internationally renowned universityand its investigations into the fundamentals ofbiotechnologies and their use as medicines andapplications in clinical situations, Wurzburg is anational and international-level hub of research.The city’s BioMed is a center of biotech nologicaland medical innovation and incubation.

• BioRegion Straubing: Its Center of Expertisein Regenerative Raw Materials is the mainvenue of Bavaria’s R & D in this area. Many ofthe materials and technologies developed atthe center are turned into products and proces-ses by the companies profiting from the opera-ting advantages accruing from being located inthe BioCampus Straubing-Sand, which is com-prised of an industrial park, a riverside port andthe BioCubator (the new incubation center forrenewable materials companies).

and the state investment company BayernKapitalprovides young Bavarian biotech and medtech

firms with high levels of risk capital comparedto the national average. On top of their previousefforts BayernKapital launched an additional fundof EUR 30 million for start-ups in April 2009.A large proportion of this money is invested inlocal biotech and medtech companies while theBavarian State Government has been channel-ling significant sums into Bavarian research formany years. These efforts have resulted in anextremely successful and concentrated researchenvironment – not only all around Munich, butalso in Regensburg, Nuremberg/Erlangen andWurzburg.

Bavaria’s biotech cluster includes a large numberof high-performance research institutes of

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“The Munich biotech cluster has a

leading position in Europe”

Interview with Hanns-Peter Wiese and Holger Reithinger, Partners of Global Life Science Ventures

How do you assessthe quality of thebiotech/healthcarecompanies in Bava-ria in a national andinternational compa-rison?Reithinger: As an inter-nationally active inves-tor, we have also sup-ported several compa-nies in Bavaria. With350 life-science compa-

nies and seven stock-exchange-listed biotechcompanies, the Munich biotech cluster has aleading position in Europe. In a national compa-rison, the Bavarian companies have historicallyhad a certain head start because of the start-upsscene rooted in Munich and the high quality ofthe research in biomedicine.

What site advantages do you see in Bavaria?Wiese: The decisive factor is the presenceof numerous renowned universities and non-

university research institutions, which makeBavaria one of the most important researchsites in the world. A lasting culture of in no-vation has been created here in the coopera-tion between institutes, biotech companies,pharmaceutical, chemical industry and politics.The biotech region of Munich, in particular,has established itself as one of the leadinginternational biotech sites due to the locationof scientific institutions and biotech companies.Even large groups such as Roche, Amgen, MSDMerck, Sharp & Dohme, SKB SmithKline Beechamand GE Healthcare have recognised these siteadvantages and are active in research here.

In what areas of the life sciences doyou see the declared strengths of Bava-rian companies?Reithinger: At the sites at Munich, Regensburgand Wurzburg, the focus is upon red biotech-nology. There, new companies are continuallybeing founded and financed, whereas thesite at Nuremberg/Erlangen is more devotedto medical technology due to the presence ofSiemens.

Hanns-Peter Wiese (l.) and Dr. Holger Reithinger (r.) are partners inthe Global Life Science Ventures GmbH, an early-stage investor witha focus on Life Sciences, based in Munich and Zug in Switzerland.

Medtech-Cluster in Bavaria• Erlangen and Nuremberg are among the world’s leading experts in

imaging processes (including X-rays), physical-based medical techniques,research into viruses and pharmaceuticals and in other areas of MT.

• Munich’s hospitals and institutes (a number of both affiliated with thecity’s universities) are world leaders in minimally-invasive and ICT-basedprocesses, and in other areas of medical care and technologies.

• Regensburg is the hub of a network setting up telemedical links bet-ween university-run and other hospitals, and is the home of the Center forApplied Biomedicine.

• Research into biomaterials, implants and magneto-resonance imaging isconducted by a consortium comprised of the Universities of Erlan-gen-Nuremberg and Bayreuth-Wurzburg.

350 company strong life sciences communityThe ongoing support provided by the state govern-ment to the life science industry is paying offhandsomely. As of today, Bavaria’s more than 350company strong life sciences community is byfar the most important in Germany and one ofthe three largest in Europe. This size comes witha commensurate level of output. Bavaria’s biotechsare also Germany’s leaders in the creation of pro-ducts which have made it to the clinical testingphase and beyond. Therapeutics and diagnosticspredominate among these products.

Seven publicly-listed biotechs are headquarteredin Bavaria. They join the major operations that havebeen set up in Bavaria by international life sciences

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natio nal and international reputation. Many ofthese institutes form part of the state’s largeuniver sities. Others operate independently, orare associated with networks of fundamentaland applied research. Some of the most promi-sing innovations come from the highly regardedMax-Planck Institutes. They focus on basic re-search and enrich the area through spin-offs orpartnerships with existing companies. In general,it is fair to say that the wellspring of the develop-ment of Bavaria’s biotech community into a worldleader was the founding and maintenance of alarge number of institutes. The fruits of theirresearch have made them famous throughout Ger-many and the world. Many of the state’s biotechsstarted out as institute spin-offs.

“The number of new companies has

been constantly increasing”

Interview with Prof. Dr. Horst Domdey, Managing Director of BioM

The financing of young biotech companiesalways represents a great challenge. Whatis the current situation like in Bavaria?The financing of young start-up companies isactually pretty good. We have a number of ef-fective pre-seed programs; we have the (Fede-ral) Hightech-Founders Fund and the (Bavarian)Seed Fund, so that the number of newly startedcompanies has been constantly increasing inthe past years. On the other hand there are notenough “instruments” on the market for the firstreal VC round and for longterm financing ofdrug developing companies. What could helphere would be a fund of funds comparable toexamples in other European countries.

The Free State of Bavaria recognised bio-technology as a future industry early on.What measures by the State Governmenthad and now have the biggest influenceon Bavaria as a site for biotech?In the past many people assumed that the state ofBavaria had poured hundreds of millions of Euros

into this new high-tech industry. But that was notthe case. Instead the Bavarian Government sup-ported the corresponding science and the tech-nology with huge amounts of money about 500Mio. EUR, i.e., this money did not go into the bio-tech industry but into the academic life scienceinstitutes, mainly new buildings. These institu-tes and their scientists then became the solidbasis for the high number of excellent spin-offswhich now form the pillars of the exceptionallystrong and successful Bavarian biotech industry –which itself attracted almost 2,5 bn EUR of privatemoney in the last years.

Where do you see Bavaria as a site in 10years?I can only hope for a positive developmentwhich is justified on the basis of the currentdynamic developments. As we see good newsfrom Bavarian companies raising more than100 Mio. EUR at the stock exchange in thesetimes of crisis I am quite certain that thesehopes come true.

Prof. Dr. Horst Domdey, Manag -ing Director of BioM, Martins-ried, as well as Spokesman of„Cluster Biotechnologie Bayern“

Bavaria has established three agencies: BioM AG(responsible for greater Munich), BioMed Würz-burg and BioPark Regensburg GmbH. In additionto providing customized services, these agenciesput companies and their founders in touch withdedicated networks.

MedTech-SectorBavaria is a part of Germany’s medtech sector –the second largest in the world after that of theUSA. Nearly 150,000 people work in this lineof business in Germany alone. More than halfof all medtech sales are of products whichare no more than three years old. Bavaria’s

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giants such as Amgen, Astellas, Biogen-Idec,Baxter, Bristol-Myers Squibb, GlaxoSmithKline,Novartis, Roche Diagnostics, Daiichi-Sankyo andSandoz as well as a large number of CROs (con -tract research organizations). Including otherservice providers to the life science industry suchas spe cialized patent attorneys, they form acommunity that constitutes a tremendous sourceof customers, products and technology develop-ment partners.

Government agenciesTo assist entrepreneurs in the process of settingup and growing of biotech firms, the state of

“Bavaria will grow into a leading site

in Europe and beyond”

Interview with Prof. Dr. Michael Nerlich, Head of the Department of EmergencySurgery at the University Clinic Regensburg

The Medical Technology Cluster in Bava-ria started its work almost exactly threeyears ago. Can you draw a short interimbalance of the extent to which the compa-nies, research institutions and hospitalsinvolved have benefited from this so far?A multitude of personal consultations, and media-tions of contact and collaboration at regional,national and international level have been es -tablished. We have organiesed 65 events oncurrent technical subjects and for making con-tacts with around 4,500 visitors: lots of positivefeedback about business contacts and collabo-rations that arose at these. 10 cluster fund pro-jects (company, research institutions, hospitals)with a funding volume of 5 million EUR have beenbacked. From a study on the state of training andfurther training we developed a further trainingprogramme with 230 participants at 13 events,crash courses, basic courses and seminars. AnEU project for the utilisation of innovations po-tentials of clinics in the industry, with a volumeof 2.3 million EUR has been approved – a Euro-pean cooperation with 11 partners in 7 countries.And we have a very good rating in the externalintermediate evaluation after 2 ½ years.

Which other measures by the Free Statehave the greatest influence on the medi-cal technology site of Bavaria? General investment in training and further trai-ning, in universities and clinical centres, in thefinancing of start-ups, in telematics and in frame-works for clinical studies are generally importantfor medical technology. The board members havealready had a similar conversation with ministerof state Dr. Heubisch. Otherwise, very importantgeneral conditions for approval, refunding andre-financing are extremely difficult to influenceby measures at regional government level.

Where do you see medical technology inBavaria in ten years?Due to embedding in healthcare, medical tech-nology is now already much less affected bygeneral crises. Because of the existence of im-portant basic requirements such as critical massof small and medium-sized businesses, globalplayers, excellent interdisciplinary research andclinical application and constant further networ-king, medical technology in Bavaria will certainlycontinue to grow into a leading site in Europe andbeyond.

Prof. Dr. med. Michael Nerlichis Head of the Department ofEmergency Surgery at the Uni-versity Clinic Regensburg andChairman of the executive com-mittee of the Forum MedTechPharma and Spokesman ClusterMedical Technology.

workforce – nearly 20,000 – accounts for roughly20% of the German medtech total. These highly-qualified staff members account for more than 60%of Germany’s electronics-based medtech devicesand some 30% of its products as a whole. Thecustomer base in this sector is truly international:70% of the sales recorded by Bavaria’s medtechindustry stem from abroad. This high internatio-nal visibility makes Bavaria’s medtech sectoradmired around the world. The same is true forhealthcare in Bavaria: Its reputation is attributableto the breadth and excellence of the health careprovided, and to such patient-pleasing factors asthe large number of facilities attending to theirwell-being.

The sector shows a breadth matched by few inEurope. Its core is comprised of 250 companies.While most of them are SMEs (small and medium-sized enterprises), the state is home to theheadquarters and major operations of a numberof global players, with this referring to theirsales and including pharmaceuticals: SiemensMedical Solutions, Baxter, Fresenius Medical Care,

GlaxoSmithKline, Novartis Pharma, Roche andGeneral Electric. General Electric maintains itsEuropean Research Center in Munich’s northernsuburb of Garching.

The market-making products manufactured bythese companies stem from their close workingrelationships with Bavaria’s scientific communityin the areas of medical devices, imaging, dataprocessing, minimally-invasive surgical methods,and regenerative medicine.

Conclusion:Healthcare in Bavaria is clearly a resoundingsuccess, founded on concerted cooperationbetween industry, politics and research. A lookat the product pipeline and upcoming announce-ments from some Bavarian firms neverthelesssuggests the area can hope for even greatersuccess in years to come. Much will be decidedin the immediate future. Positive news would sendout a particularly strong message in the currenteconomic crisis, now gradually beginning to affectBavarian companies’ financing.

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“The Munich area has a strong attrac -

tion for international skilled personnel”

Interview with Dr. Ulrich Dauer, CEO of 4SC AG

As the CEO of 4SC, what is your ex -perience of Bavaria as a company site? The site at the IZB in Martinsried near Munichis ideal for our company, because it has an in-frastructure that supports innovation. The geo-graphical proximity to other researching bio-tech companies and to academic institutionssuch as the Max-Planck Institute, the GeneCentre, the Ludwig-Maximilian University andnumerous university hospitals enables an in-tensive exchange of information between ourresearchers and renowned academic instituti-ons and clinics.

What do you regard as the major advan-tages of being based in Bavaria? In Bavaria, the promotion and preservation ofcom panies with innovative technologies hasbeen on the agenda of Bavarian regional policyfor a long time, and this – together with targe-ted sup port programmes such as e.g. the Ba va-rian Research Foundation – ensure the attrac -tiveness of the site for researching com panies.At the same time, soft site factors like first-class education and leisure facilities ensurethat the Munich area in particular has a strongattraction for international skilled personnel.

Dr. Ulrich Dauer is a foundingmember and CEO of the 4SCAG. Previously, he held a ma-nagement position with theU.S. company, Tripos, a leadingprovider of screening libraries,software and systems integra-tion in the life sciences.

From healthcare to the healthcare industry Germany has the largest health market in Europe.Healthcare – also in the Free State of Bavaria –is thus one of the growth drivers in the economy.With 4.4 million employees and a health expendi-ture volume of 253 billion Euros, the healthcareindustry is one of the most important German in-dustries. The most important factors driving growthin the German health market are the changedawareness of health on the part of individuals,progress in medical technology and demogra-phic changes.

Where are the growth markets?Medical technology is a dynamic and highly inno-vative industry. Around a third of its sales aregenerated by Bavarian medical technology manu-facturers with products that are less than threeyears old. According to information from theEuropean Patent Office in Munich, medical tech-nology tops the list of registered inventions. Thenetworking of medical technologies and hospitalsystems with IT is, however, becoming ever moreimportant. The aim is networked healthcare provi-sion that creates intelligent networks and makespossible the development and marketing of regio-nal centres of excellence (clusters). The use of in-formation and communication technologies inhealthcare provision (e-health) not only decisivelyimproves the quality of provision, but also increa-ses efficiency and effectiveness. A concrete exam-ple is the introduction of the electronic health cardas the foundation stone for the building-up of astandardised telematics infrastructure. For severalyears, different companies have been workingon the introduction of an electronic patient file.

Bavaria as Healthcare Site Number OneScientific and entrepreneurial expertise is beingbundled in fundamental research and medicaltechnology. Around 20 special research fields areworking on (bio-)medical questions at Bavarianuniversities. In the framework of its future andhigh tech offensives, the government is providingaround 430 million Euros for college medicine andhealth research. More than 250 mostly small-to-

medium-sized medical technology companies arelocated in Bavaria. In addition, more than 60% ofall electrical medical equipment and 30% of theentire medical technology in Germany are producedin Bavaria. Globally leading pharmaceutical com-panies like Roche, Novartis and Pfizer are repre-sented in Bavaria. Bayern Kapital GmbH, subsi-diary of LfA Förderbank Bayern, supplies venturecapital to young, innovative technology companies,normally together with other investors. Smallerventure capital companies, Business Angels, Fa-mily Offices and individual private investors arepossible partners. Other cooperation partnersinclude the ERP start-up funds from the KfW andHigh-Tech Gründerfonds, supported by the natio-nal government. Bayern Kapital is currently lookingafter a total of seven investment funds with aninvestment volume of around 190 million Euros.A large proportion of the companies assisted havebeen able to achieve a successful market positionwith an investment from Bayern Kapital.

The Free State provides 700,000 Euros as additio-nal funding for the field of telemedicine. Moderntechnologies are promoted which – independentfrom the electronic health card – offer substantialadvantages in the treatment and healthcare pro-vision of patients.

ConclusionIn our opinion, medical technology will continueto be an essential driving aspect of the healthindustry in the years to come. This will above allbe a matter of promoting innovations that improvethe quality of healthcare provision and increaseits efficiency and effectiveness. Networking tech-nologies and concepts in the field of e-health areanother substantial growth market. The constant -ly growing demands of healthcare require net-worked thinking and new organisational andcommunication structures that network all agen-cies/organisations involved in the provision pro-cess together with each other. In both cases, therestill exists a great deal of potential for (further)developments and thus promising opportunitiesfor successful investments.

1. Medical Technology

2. Electronic Communications Engineering

3. Data Processing

4. Electrical Components

5. Organic Chemistry

6. Measuring/Testing

7. Vehicle Technology

8. Biochemistry/Genetic Engineering

9. Organic Macro-Molecular Compounds

10. Machine Elements

16,742

14,409

8,981

8,147

7,940

7,524

4,305

3,970

3,835

3,563

Investing in Health

By Juliane Quaranta (Investment Manager) and Michael Thiess (CEO)SANEMUS AG, Munich

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Source: BVMed - BundesverbandMedizintechnologie e.V. (GermanMedical Technology Association)

Top ten in the field of technologyNumber of applications to theEuropean Patent Office in 2007

For flourishing landscapes to continue to bloomin the future, they must be cultivated. The sta-gnation caused by the global financial crisis ishardly noticeable at all in the hospital landscapeof the Free State of Bavaria.

In its hospital planning, the regional governmentpursues the aim of modernising its comprehensivehealthcare and to adapt it to the changing generalconditions and requirements. This plan is producedin close cooperation with the BKG (the BavarianHospital Association) and the health insuranceschemes.

Fine-Meshed Provision NetworkSince the beginning of state support of hospitalsin 1972 under Franz-Josef Strauß, the Free Statetogether with the district authorities has investedaround 18.6 billion EUR into the clinics and thuscreated a provision structure that enjoys a highreputation far beyond the region’s borders for itslevel of performance. Around 350 acute in-patientclinics are assigned to different care levels withinthe graduated provision system: hospitals in thefirst provision level are for basic on-the-spothealth care. Establishments in the second level alsocarry out main supra-regional tasks in diagnosisand treatment. Hospitals in the third level offer a

comprehensive range of health services and havethe medical-technical facilities necessary for this.

As well as demographic changes, the plans musttake into account the patients’ lengths of stay,which have been decreasing for years, and theresults of medical-technical progress, and alsosome special factors that are typical for Bavaria.For example, in comparison with other states inGermany, the Free State possesses many hospitals;added to which, two thirds of all hospital beds be-long to the public authorities. In its implementationof the necessary adjustments, the Free State hasbenefited from its economic prosperity. Due to de-cades of intensive investment, the Bavarian health-care system also already possesses a highly deve-loped infrastructure that can be developed upon.

Making the System Fit for the FutureAnd this development has gained further impetuswith the national government’s current EconomicStimulus Plan II. The annual hospital building planfor 2009 contained 96 larger construction projects.In addition, another subsidy programme, amoun-ting to 70 million EUR, has been launched underthe title “Saving Energy in Hospitals”. This focusesupon the improvement of heat insulation, efficientenergy management and self-sufficient energyproduction.

“Although funding for investment in Bavarianclinics has not yet reached the necessary level, theBavarian hospital “landscape”, with its outstan-ding medical care, nevertheless continues to bein a comprehensively good condition”, confirmsEduard Fuchshuber, head of Policy and PublicRelations of the Bavarian Hospital Association.He sees a growing danger, however, in the shortageof skilled nursing and medical staff. He says thatthis problem not only affects the present health-care situation, but also training, and that it is ma-king it much more difficult to guarantee sufficientprovision throughout the region: “The shortageof skilled personnel sharpens the differences inprovision between the regions. That might notaffect Munich much”, says Fuchshuber.

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Flourishing Hospital Landscapes

in Bavaria

By Dr. Holger Bengs and Matthias Heitmann

The Bavarian healthcare system possesses a highly developed infrastructure.Photo: © hospital of the university Munich

Since the 1960s, the Bavarian research infra-structure has been systematically extended.Bavaria now offers an excellent researchlandscape, with 11 universities, 17 technicalcolleges, 11 Max-Planck institutes, 9 establish-ments of the Fraunhofer Society and 3 large-scale research establishments. In addition,the government has substantially strengthenedinnovation in important industries and promisingfields of technology, with the Zukunft Bayernand High-Tech campaigns, and developed theFree State into one of the most attractive andhigh-performance technological sites in Europe.

European Metropolitan Region Munich(EMM)Since the 90s, the Munich area has changedinto one of the leading European innovationclusters for the biotechnological and pharma-ceutical industry. As well as about 350 com -panies, eight prestigious research institutionshave also located in the region. With two eliteuniversities, three Max-Planck institutes, theHelmholtz Zentrum München – the GermanResearch Center for Environmental Health –and the technical colleges of Munich andWeihenstephan, the region offers conditionsfor the linking of research and industry that areto be found nowhere else in Germany. The re-search driven forward in these centres rangesfrom molecular biology to nanotechnology tothe researching of cardiovascular illnesses andinfectious diseases and also places emphasisupon an interdisciplinary approach.

The development of the university hospital inGroßhadern and of the Max-Planck Institutefor Biochemistry in Martinsried is regardedas initial catalysts for the rapid developmentof the biotechnology cluster. In the late 80sand early 90s, the first companies settled in thearea, in the form of Mikrogen, Micromet, Morpho-

Sys and MediGene. The Innovation and Start-upCentre for Biotechnology IZB Martinsried/Freising,founded in 1995, is now one of the largest centresfor biomedical research and is highly respectedaround the world. In addition to the institutionsalready named, the Martinsried campus also in-cludes, among others, the Max-Planck Institutefor Neurobiology, the Gene Center of the Ludwig-Maximilians-University of Munich, the Center ForIntegrated Protein Science Munich (CIPSM), theMunich Center For Neurosciences Brain and MindLMU and Graduate School of Systemic Neuro -sciences (GSN-LMU) and the Bernstein Center.On top of this, nearly half of all biotech compa-nies have set up sites in Bavaria.

The immediately neighbouring location of Freising-Weihenstephan has developed into a competencecluster for green biotechnology in Europe. The

Bavaria’s Landscape of Innovation

Bavaria in the top league for biotech-nology and pharmaceutical research

By Matthias Heitmann and Dr. Holger Bengs

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Aschaffenburg

Coburg

Nürnberg

Augsburg

Landshut

Ingolstadt

Passau

Straubing

Regensburg

Erlangen

Würzburg

Lindau

Bayreuth

München Freising-Weihenstephan

Martinsried

UnterfrankenOberfranken

Mittelfranken

O b e r p f a l z

Schwaben

O b e r b a y e r n

N i e d e r b a y e r n

Bavarian BioTech Regions

Center of Life and Food Sciences of the TechnischeUniversität München, the Research Centrum forMilk and Foodstuffs, the Fachhochschule Weihen-stephan, the Weihenstephan State Diary and theBavarian regional offices for natural resources, lifesciences and horticulture, and for forestry and agri-cultural engineering are all based here among others.

Bavarian BioTech RegionsAs well as the Munich/Martinsried bio-tech regionand the Martinsried-Großhadern campus, threeother Bavarian bio-regions contribute to a researchlandscape that is unique in Germany. The “Bio-Region Regensburg“ is a combination of BioPark,East Bavarian Region, university and technicalcollege specialising in fluorescent bio-analysis,molecular diagnostics, bio-functional surfaces,sensor technology and applied biomedicine.The “BioRegion Franken“ represents a furtherlocation. With its university, Würzburg enjoysthe reputation of a scientific centre for researchin the life sciences, in which nationally and inter-nationally important activities are developing inmedical and clinical research and in biotechno-logy. The site of Erlangen-Nuremberg offersoutstanding expertise in the field of medicaltechnology and virological and pharmaceuticalresearch, while Bayreuth places emphasis onapplied biochemistry and material research. Inaddition, the “BioRegion Straubing“ concentratesactivities on everything to do with the subject ofrenewable raw materials. Many new companieshave settled in the industrial park, in the port, inthe start-up centre or in the new BioCubatorbusiness centre for renewable primary products.

The outstanding site conditions of the Bavarianbiotechnology cluster have also attracted

“global players“ in the pharmaceutical industryto Bavaria: for example, Aventis and GlaxoSmith-Kline are present in the region, as well as Gene-ral Electric Healthcare (GEHC), the US-Americanpharmaceutical company Merck, Sharp & Dohme(MSD), Bristol-Myers Squibb and the Japanesegroup Daiichi-Sanyko, with important researchinstitutions and branches. In addition, the UpperBavarian town of Penzberg is home to the RocheGroup’s biggest biotechnological research, deve-lopment and production centre within Europe.Research, development and production are car-ried out here in the two business fields of phar-maceuticals and diagnostics.

Further Development of the InnovationLandscapeNew companies founded by large pharmaceuticaland biotech companies and spin-offs from uni-ver sity research institutions in particular benefitfrom the close cooperation between research andindustry. Almost every second German, stock-exchange-listed biotech company has its head-quarters in Bavaria, and around half of all Germanproducts in the clinical phase originate in the FreeState. Numerous research associations contributeto the further development of the region and tothe strengthening of scientific and economicdynamism: for example, the Bavarian ResearchAlliance (BayFOR GmbH), founded in 2006 forthe promotion of science and research, supportsBavarian researchers and developers in organising,applying for and carrying out European researchprojects. The Bavarian genome research networkBayGene, in which the universities of Munich,Regensburg, Würzburg and Erlangen are currentlyworking on projects in functional genome researchand in which collaborations with industry arebeing promoted, is a further important step withwhich the Federal Republic would like to securea leading place in global and national economicand scientific competition. Similar aims are alsobeing pursued by BayImmuNet, founded in 2008.This network, which is the only one of its kindin Germany, supports the faster transition ofimmunotherapeutic approaches into clinicalapplication. With the alliance “Bayern Innovativ“,the Bavarian government wants to further spuron the overall development of Bavaria as a sitefor business and science.

It is in keeping with the international importanceof Bavaria as a biotechnology site that in No-vem ber 2010 the BIO-Europe will be held inMunich for what is already the second time since2001. It is the most important international part-nering conference in Europe for the biotechnologyindu stry and will bring further impetus to theregion.

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Bavaria is the only German region to play a leading role in Europe’s top league for biotechnology and phar-maceutical research.Photo: © Frank Oppermann - Fotolia.com

Out of the thousands of substances that are putforward as medicinal active ingredients, usuallyonly a single one makes it through the final exam.The process from the initial tests to approvalas a medicine is very complex and can last upto twelve years. It is not just for outsiders thatthis selection process is a science in itself.

From the Hit to the Test ObjectThere are very good reasons for this complexityin medicine approval; after all, it must be en-sured that protection against risks and defenceagainst health hazards are guaranteed in eachcase. Pharmaceutical quality, therapeutic effec -tiveness and the harmlessness of the activeingredient are examined in many test phases.Approval is only possible at all if the benefit isclearly predominant in the risk-benefit analysis.

Unlike medical-technical developments, thecareer of an active ingredient first begins withthe conclusion that it has a positive effect on anillness-relevant target structure in the humanbody. In order to rule out pure “flukes” at thisearly stage, a pharmaceutical “lead” is deve-loped out of this “hit”. A long-drawn-out processthen follows, in which this rough diamond isprocessed until it reaches readiness for testing.

The Test PhasesIn the preclinical phase, the mode of action andhalf-life of the substance are first tested in vitroon cell cultures and later in vivo in the animalmodel. Only if it passes this first tough testsuccessfully, can multi-phase clinical studieson people be started. In phase 0 (not stipulated),the effectiveness of the substance is first ana-lysed in sub-therapeutic doses in order to beable to draw conclusions about tolerance andpharmacodynamics. In phase I of the clinicalstudies, the effective ingredient is then ad-ministered in therapeutic doses.

Phase II, randomised and controlled if possible,is devoted in two sub-steps to the therapy

concept (“proof of concept”) and optimal dosing(“dose finding”). The more clearly the positiveeffects of the substance emerge here, the moremanageable the number of subjects normallyrequired to take part in the final approval study(phase III) – this can be 200, but also even 10,000.

Approvals Regionally LimitedIf the positive results can be confirmed heretoo, approval for the entire European Unioncan be applied for from the European MedicinesAgency (EMEA) in the framework of a cen tra-lised and standardised procedure. Alternatively,approval can also take place in a decentralisedway in individual EU states by means of reci-procal acknowledgement. But even this EU-certificate is still not a licence with global vali-dity. Approval in other countries, such as in theUSA or in Japan, is subject to particular, some-times more stringent conditions. But it is gene-rally the case that if an active ingredient mana-ges to reach clinical phase III, then the chancesare good that it will be granted ap proval ontothe market.

Approval of Medicines:

A Science in Itself

By Matthias Heitmann and Dr. Holger Bengs

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Befre the launch of a new drug extensive testing needs to be conducted. Regional pecularities play an important role in the approval procedure.

Photo: © Catalin Stefan - Fotolia.com

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What is regenerative medicine about, particularly in your area of expertise, experimental surgery?Regenerative medicine is devoted to the deve-lop ment of methods for repairing damaged or sicktissue using the body’s own regeneration oftissues. In “tissue engineering”, cells, e.g. stemcells, are removed from a patient and thentissue structures are grown from these in the la-boratory, in order to then implant them again. Inexperimental surgery, these procedures are beingdeveloped for bones, cartilage and sinews.

How far has your research in theseareas progressed?In 2005, we founded the Laboratory for Ex pe-rimental Surgery and Regenerative Medicine,“ExperiMed”, from the tissue engineering workgroup for bone. To date, we have been carryingout fundamental research, mostly in the areasof bone and sinew, and are pursuing the aim ofdeveloping therapy strategies to their clinicalapplication. A large number of concrete areasof application are, however, now emerging in thefield of regenerative medicine: in future, cell-basedtherapies will play an important role in heartsurgery, neurosurgery and orthopaedics/ accidentsurgery, and in the treatment of liver and kidneydiseases and diabetes mellitus. With respect toorthopaedics, I am convinced that regenerativemethods will replace the currently common trans-plantation of bone from the body itself.

What is the public acceptance of suchmethods like?I think that acceptance has risen over the pastfew years. This is due to the fact that the publicis now better informed about the advantagesand possibilities than was previously the case;but the researchers and medical scientists havealso learnt how to communicate this potentialbetter. As further studies confirm the applica-bility and efficiency of experimental methods,readiness to use them to heal illnesses anddefects will grow.

What is your assessment of Germany asa research site?In Germany, regenerative medicine is now beingrecognised and also promoted as an importantfield of research. One example is the “ResearchAlliance for Cell-Based Regeneration of the Mus-culoskeletal System in Old Age” (ForZebRA) – sup-ported by the Bavarian Research Foundation –in which university and industrial partners areinvestigating degenerative diseases such asosteoporosis, arthrosis and degeneration ofsinews, in order to develop innovative therapyoptions. This demonstrates that one can re-ceive sponsorship in Germany in the field ofregenera tive medicine, if one proposes excitingprojects.

Herr Dr. Schieker, thank you very much forthe conversation.

The interview was conducted by Matthias Heitmann, Dr. Holger Bengs –

Biotech Consulting, Frankfurt a.M.

“Regenerative methods will

supplement transplantation medicine”

Interview with Dr. Med. Matthias Schieker, manager of the Laboratory for Experimental Surgery and Regenerative Medicine, “ExperiMed”, on the state of research and the potential of regenerative medicine.

Dr. Med. Matthias Schieker ismanager of the Laboratory forExperimental Surgery and Regenerative Medicine, “ExperiMed”, on the state ofresearch and the potential ofregenerative medicine.

Contact: Matthias.Schieker@med.uni-muenchen.de

In Germany, regenerative medicine is now promoted as an importantfield of research.Photo: © BioM

The knowledge that the same treatment canhave entirely different chances of success fordifferent people has already been gainingrecognition in medicine for a long time. Thereasons for this are also being slowly uncovered.Progress in molecular diagnostics allows anever more targeted and individual treatment ofpatients. Personalised medicine also plays animportant role in Bavaria as a site, in funda-mental research at universities and institutesas well as in application in companies. Here,diagnostics and the development of medicinesare combined. Doctors and researching compa-nies benefit from this as well as patients.

According to tests, medicines do not functionoptimally in at least a third of patients. Someeven become worse after taking the active in-gredients. This proportion of patients is astonis-hingly high, at around 15%. The difficult tasknow consists of finding out for which half themedicines will work – and for which half theywill not. Research has made enormous progresshere during the past few years. In Bavaria, re-searchers from different fields of medicine havecontributed to making sure that medicines havetheir desired effect in more than two thirds ofcases. New molecular-diagnostic methods hereenable more accurate research into the causesof illnesses.

Genetic Causes of IllnessesThe progress in genome research contributes toa better understanding of illnesses. In this field,Prof. Dr. Thomas Meitinger from the Institutefor Human Genetics at the HelmholtzzentrumMünchen is tracking down illness-related spe-cial features in the genes of humans and mice.The intention is to find the genetic causes ofcomplex illnesses in genome-wide DNA andRNA studies, especially in the field of neurologyand cardiology.

The Institute for Epidemiology of Prof. Dr. H.-ErichWichmann (see interview box) is also located atthe Helmholtz-Zentrum. It deals with methodicalquestions concerning the quantification of smallrisks, with the effects of particles and air pollu-tants upon the lungs and the cardiovascularsystem, and also with the regional distributionand development of respiratory illnesses andallergies. A new focus of the institute is themolecular analysis of complex illnesses (e.g.asthma, type 2 diabetes, heart attack). Thecentral aim is to use epidemiological methods to

investigate the role of environmental influencesand genetic predisposition upon human health.

At the Weihenstephan site near Freising, Prof. Dr.Bernhard Küster of TU München and his inter-disciplinary team are carrying out research todiscover biomarkers. Biomarker research is animportant part of personalised medicine, be-cause it allows more accurate diagnosis ofillnesses and thus a better provision of effectivemedicines. Küster is also a member of the“Excellence Cluster” CIPSM (Centre for Inte-grated Protein Science Munich), which deals

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Symbiosis between Diagnostics

and Medicine Development

Bavaria Makes Progress in FundamentalResearch for Personalised Medicine

The intention of the Helmholtzzentrum München is to find the genetic causes of complex illnesses in genome-wide DNA and RNA studies.

Photo: © Phtodisc

with the field of protein research within biotech-nology and biomedicine.

The Entirety of the ProteinsAlso participating in the CIPSM is Prof. Dr. Mat-thias Mann at the Max-Planck Institute of Bio-chemistry near Munich, who is conducting re-search into the proteome, which is the entiretyof all proteins. Last year, one research groupunder his direction successfully decoded thecomplete proteome of an organism – baker’syeast – for the first time.

Dr. Henrik Daub, who is also active at the Max-Planck Institute of Biochemistry, has shown thatresearch in such areas can also be the springbo-ard for founding one’s own company. Together withProf. Dr. Axel Ullrich, he founded KINAXO Biotech-nologies GmbH. The young entrepreneurs weresupported in this by Garching Innovation GmbH,the technology transfer agency of the Max-PlanckSociety. The company was financed by High-TechGründerfonds, among others. Together with bio-tech and pharmaceutical companies, KINAXOdevelops and optimises spectrum-spe cific kinase

inhibitors. Protein kinases are assuming an im-portant role in the regulation of the cell cycle, butwere for a long time regarded as unsuitable tar-gets for treatment with medicines (non-druggabletargets). This has now changed. KINAXO is thusalso contributing to improving the therapeuticcharacteristics of active ingredients.

Knowing What HelpsAn already successfully applied example of suc-cessful interaction between diagnostics andmedicine development is the breast canceragent Herceptin from the biotechnology companyGenentech, which now belongs to the Rochegroup. This medicine, however, only helps in aparticular form of breast cancer, which occursin 25% of patients. But this can be clarified witha biomarker test.

Penzberg in East Bavaria is an important site forRoche in personalised medicine – in which theSwiss group occupies a globally leading position.Because both the pharmaceutical and the diag-nostics sections of Roche are represented inPenzberg, where around 4,500 employees arecurrently employed. In order to convey deeperinsights into personalised medicine to its ownemployees, Roche has set up its own exhibitionon this subject in a room adjoining the canteen.

ConclusionThe Munich area in particular, with its universitiesand research centres, is at the world forefront infundamental research in many aspects of perso-nalised medicine. The Free State of Bavaria hascontributed a lot to this, but needs to continueto take care that it does not let things slide. Otherregions are also active and want to shorten thegap. In competition for qualified employees andresearch funding, however, Bavaria continues tooffer the best site conditions for a future-orien tedsubject like personalised medicine.

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Penzberg in East Bavaria is animportant site for Roche in per-sonalised medicine.Photo: © Roche

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“By bundling resources even more

can be achieved”

Interview with Prof. Dr. H.-Erich Wichmann, Helmholtz Institute of Epidemiology

Therapies” which might already be getting offto a start next year. It is about networking resear -ching industry and biomedical resources in theMunich area more closely with each other. Animportant subject here is the bio-banks: collec -tions of blood samples, tissue samples, urineetc. It is intended to make these resources moreuseful for diagnostics and medicine development.As well as this, the transfer of knowledge fromresearch to industrial use is to be improved. Inorder to achieve this, an application has beenmade to the Federal Ministry of Research, whichwill be decided upon in January. Just the factthat people are getting together and writing anapplication is leading to them coming into con-versation more often and the development ofbilateral or trilateral activities.

What would you like politicians to do toimprove site conditions in Bavaria?Bavaria, particularly the site of Munich, is alreadyin a very strong position as regards epidemiolo -gy and bio-banks. We are involved in the excel-lence initiatives, have universities that are verystrong in research and important research insti-tutions such as Helmholtz, Max-Planck-Instituteetc. in a relatively small area. The disadvantage isthat there has not yet been as much cooperationas would be desirable. By bundling resources,even more could be achieved. Interestingly, thisis happening in other regions that have less tooffer, sometimes very intensively. There theyhave recognised that they would have no chancewithout cooperation. Precisely because we inthe Munich area are set up so broadly and havesuch a good basis, we perhaps do not yet seethe necessity to cooperate clearly enough. I thinkthat the politicians are certainly in a position tocause quite a lot of change in this respect bycreating incentives for cooperation.

Prof. H.-Erich Wichmann is director of the Institute of Epidemiology at HelmholtzCenter Munich.

Prof. Wichmann, how do you judge theresearch landscape in Bavaria in the fieldof epidemiology?In Bavaria, we can look back on a long epidemio-logical tradition. For 25 years, the Helmholtz Zen-trum München has been conducting the majorMONICA/KORA study in the Augsburg area.Almost 20,000 adults are being and have beenregularly examined and interviewed. In additionto this, there are various illness registers inBavaria, such as the region-wide cancer register(Erlangen), the stroke register (Erlangen) and theheart attack register (Augsburg). Also to be men-tioned in this connection is the environmentalepidemiological and provision epidemiologicalresearch in the Munich area. In future, the mostimportant project will probably be the NationalHelmholtz Cohort, a very large epidemiologicalstudy with 200,000 adults across Germany, whowill be observed for 20–30 years. The coordina-ting offices are in Munich and Heidelberg.

What is the cooperation like with researching companies in Bavaria?The companies would actually be able to makegood use of the epidemiological resources, be-cause we are in a position to make statementsabout the congenital and acquired risks of manyimportant illnesses and to provide bio-samples.The utilisation is still not very intensive, however.This is partly due to the fact that the resear chingcompanies have to date relied overwhelminglyupon their own resources. There is still a largeunused potential here.

What possibilities does your area of re-search offer for closer interaction betweendiagnostics and medicine development?Here one should mention the new project m4“Personalised Medicine and Target-Oriented

The task of translational research is to transferknowledge from fundamental research over topractical application as quickly as possible, so thatit can be used directly to help people in diagnosisand therapies. It is all about the translation ofknowledge “between the laboratory and the sick-bed” – and also in the reverse direction, from theclinic to the researchers. Prof. Dr. Günther Wess,Scientific and Technical Managing Director of theHelmholtz-Zentrum München, still sees a greatneed for improvement.

What infrastructure conditions promotecooperation and the transfer of knowledgebetween the participants?Geographical proximity is very important. Pureresearchers and clinicians should work close toeach other, in order to be able to exchange infor-mation and communicate at meetings more often.And they need a joint organisation and/or structure.

How can a shared structure be implemented?By forming interdisciplinary teams with sharedaims that cooperate on supported projects. Bysetting up translation centres, for example. Foursuch centres have been set up on the initiativeof the Helmoltz Society, focussing on different typesof illnesses: in Munich (lungs), Heidelberg (cancer),Brunswick (infections) and Berlin (cardiovascular).Here in Munich we have brought everything thatwe need together under one roof; an experimentaland a clinical pneumologist work in close coope-ration.

What must be done to make translationalresearch in Germany more successful infuture?The attitude of the people involved needs tochange; it is about a cultural shift towards morecooperation and exchanging of knowledge. Also,appropriate structures must be created that en-courage working together. In German healthcare,we unfortunately have a complicated network ofdifferent levels such as national/regional govern-

ment, universities/clinics and non-university in-stitutions such as the Helmholtz and Leibniz cen-tres, among others. The various interest groupsshould look further than the end of their ownnose. In the past few years, the Federal Ministryfor Research has already taken initiatives formore partnership cooperation. But we still needmore strategic investment in this direction.

In what area is translational researchparticularly important?In my opinion it is particularly important for newtherapy approaches in the field of personalisedmedicine; but also in the optimisation of alreadyexisting therapies and in the field of diagnostics.

Where is translational research alreadyworking out especially well in Germany?At the four Helmholtz translation centres men-tioned and at some health centres that have beeninitiated by the Federal Ministry for Research.These include the two research associationsDZNE (for neurodegenerative diseases) and DZD(for diabetes). We must set up more such centres.There is a substantially higher level in the USA,where translational research enjoys muchstronger priority and more money is invested.Of course, attractive conditions also draw talen-ted people, and some emigrate from Germany tothe USA.

Thank you very much for the conversation.

The interview was conducted by Bernd Frank

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“Geographical proximity is very

important”

Interview with Prof. Dr. Günther Wess, Helmholtz-Zentrum München

Prof. Dr. Günther Wess is anHonorary Professor at theTech nische Universität Mün-chen and since 2005 hasbeen President and CEO of theHelmholtz-Zentrum München– German Research Centrefor Environmental Health.Until 2004, Prof. Wess performed managementfunctions in research and development as well as business management, e.g.at Hoechst, Aventis and Sanofi-Aventis.

In Bavaria, young Biotech companies are wor-king successfully on the development of newprocesses and technologies. In the Free Statethey find good conditions and are causing astir, even internationally, with their innovativeresults. But the lack of venture capital is pre-senting a challenge for many researchers.Cooperation with large pharmaceutical com-panies offers one way out.

Difficult CapitalisationMolecular biology deals with living organismsand life processes at the sub-cellular level. Itserves as a fundamental science for parts ofmedicine and biotechnology. The overwhelmingmajority of Biotech companies work in thefield of red biotechnology, probably the mostlucrative segment in the biotech business. Theindustry has nevertheless been suffering froma lack of sufficient venture capital for years.This is reflected in the fact that the number ofcandidates in the decisive test phase III, theclinical testing of new medicines, has not in-creased in the past few years. “There are cur-rently only a few venture capital companiesthat invest in life science“, says Dr. PeterHanns Zobel, managing director of IZB GmbH.Claus Schalper, CEO of Pieris AG, adds: “Ingeneral, I see a substantial lack of investorstaking part in the financing of the early phases,which is to say in the A and B rounds financing.“Many biotech companies seek a solution incooperation with major pharmaceutical concerns.One advantage of this is that the partners fromthe pharmaceutical industry take over a part ofthe contingency risk.

Success Through CooperationMorphosys AG is one of the few companies ofits size to already be operating profitably andto have one of the globally leading antibody

technologies at its disposal. Dr. Simon Moroney,Chairman of Morphosys, says happily: “Morpho-sys has a range of partnerships with leadingpharmaceutical companies, including a ten-yearalliance with Novartis. These contracts gene-rate assured turnovers of 400 million EUR“. Thecompany also receives profit sharing and royal-ties from products that are created in coopera-tion. Its own sales department secures Morpho-sys marketing rights to resultant products in se-lected regions and the rights to the bila teraldevelopment of selected ranges. The substanti-

“Innovation Made in Germany”

Molecular Biologics: Small and Medium-SizedBavarian Biotech Companies at the Forefront

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Woolmade Human Chromosome SetPhoto: © Torsten Naeser for BioM

ally streng thened financial position acceleratesthe development of the company’s own medica-tion pipe line. Morphosys itself can finance thein-house development of medicines with reve-nues from other partnerships. “We have raisedour investment from around 8 million EUR lastyear to 18-20 million EUR this year and are still

showing a solid profit“, emphasises Moroney.“That is why we are currently not dependent onexternal sources of money.“ The partnershipbetween Trion Pharmaand Fresenius Biotech isalso running success -fully. Trion was createdin 1998 as a spin-off ofthe Helmholtz-ZentrumMunich. Since then,both companies havebeen colla borating inthe field of antibodydevelopment. Therewas no nerve-rackingsearch for providers ofventure capital for founder Horst Lindhofer.Fresenius now holds more than a quarter of Trion.While Trion is responsible for the designing ofnew molecules, process development and pro-duction, Fresenius monitors clinical developmentand possesses the global marketing rights to theantibodies developed by Trion. In the frameworkof the partnership, Trion is actively involved in all

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“We have a very close relationship

with our tenants”

Interview with Dr. Peter Hanns Zobel, Managing Director of IZB GmbH

Herr Dr. Zobel, what does the IZB nowlook like in Martinsried?The IZB is currently in the process of expandingto a size of approx. 23,000 m² of rentable area.The site is thus among the most successful inEurope, on account of its size and the 55 com-panies located in Martinsried and Weihen-stephan. Due to the massive relocation of thenatural sciences of the Ludwig MaximiliansUniversity from the city centre to Martinsriedand the two Max-Planck Institutes, an interna-tionally respected Life Science Campus hasbeen created.

Did the economic and financial crisisaffect the IZB cluster?Despite the crisis, the continued existence of thetenants is currently not endangered. The majority

of our tenants are experiencing moderate growth.In 2008, the tenants were able to gain more than85 million Euros in the form of funding rounds.It was possible to gain funding in 2009, too; inthe middle of November, 4SC AG was able tofully place a capital increase of 30 million EUR.

What support do you give, in concreteterms?We have a very close relationship with ourtenants. One example of this is the BTA trainingtaking place from September 2010 under theumbrella of the IZB. We have been able topersuade the Chemieschule Elhardt, based inMunich, to teach 2 BTA classes from 2010,directly in the IZB, and hope that we havethereby solved a personnel problem not onlyfor the tenants but also for the entire campus.

Dr. Peter Hanns Zobel is Managing Director of the Innovation and FoundingCenter for Biology (IZB) Mar-tinsried and Weihenstephan.

The building of the BioPark RegensburgPhoto: © Biopark Regensburg

Horst Lindhofer,Chairman of Trion Pharma

stages of development up to market approvaland possesses the Triomab® technology withthe accompanying patents. Three antibodycandidates developed together are currently inclinical studies. “The targeted stimulationof a concentrated immune response, as istriggered by Triomab® antibodies, has greatpotential for the treatment of a large numberof illnesses“, emphasises Lindhofer. Trion hasrecently received a recommendation for appro-val for a new type of medicine against the ad-verse effects of cancer.

Pieris: The Next GenerationAt the biotech company Pieris in Freising, re-search is already being conducted into the nextgeneration of medicines. Anticalins, artificial

proteins, are smallerand more stable thanantibodies and areeffective for longer.“Due to the sup-sha-ped structure of theanticalins, Pieris canalso address smallmolecules such asbiologically active pep-tides, lipids and hap-tenes, which is moredifficult with antibo-

dies“, stres ses Claus Schalper. Because theFreising company secured the patents for thenecessary technology early on for the whole ofEurope and the USA, no other company is cur-rently carrying out the research on the proteins.Pharmaceu tical companies have recognisedPieris’ head start. “Our technology was at lastvalidated in September 2009 by the concludingof a cooperation agreement with the US pharma-ceutical company Alergan, which included anadvance payment of 10 million USD to Pieris“,says Schalper. In addition to this, the world’slargest healthcare-dedicated investment firm hasbeen won over in the form of Orbimed Advisors.“The most recent financial transaction was asuccessfully concluded B round financing inApril 2008, with a total volume of 25 million EUR,which was offered by Orbimed“, says Schalperhappily. Since being founded in 2001, Pieris hasreceived over 40 million EUR of capital.

Site Advantages of Bavaria“Innovation made in Germany is possible“, saysHorst Lindhofer in summary. The success ofcompanies such as Morphosys, Trion and Pierisis thus no coin cidence. For 15 years, Bavariahas been promoting the establishing and conso-lidation of the life science industry in the FreeState. In addition to the sites of the IZB (Innova-tion and Startup Centers for Biotechnology) inMartinsried and Weihenstephan, further re-search centres have been opened in Regens-burg, Würzburg, Bayreuth and Straubing. ForPeter Hanns Zobel of the IZB, these institutions

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Claus Schalper, CEO of Pieris

The Innovation and Founding Center for Biology (IZB) in MartinsriedPhoto: © IZB

The Innovation and Entrepreneur Center (IGZ BioMed) in Würzburg Photo: © IGZ

are not competitors, but rather competence cen-tres with their own strengths and weaknes-ses. The biotechnology cluster in which allthe centres are combined is run by BioM ClusterDevelopment GmbH. University research workand the commitment of regional providers ofcapital safeguard the technological capability

of Bavaria in the life science sector. Manynewly founded life science companies have beenfinanced by the Förderbank Bayern, Bayern Kapi-tal or BioM AG. What remains decisive is that inthe framework of cooperation agreements, theinnovation partner keeps his indepen dence and“founding spirit”.

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“Many investors want to be in the

stock before that happens”

Interview with Dr. Simon Moroney, Founder and CEO of Morphosys

MorphoSys is currently testing sevennew active ingredients in clinical trials –either on its own or with partners fromthe pharmaceutical sector; another 30 arealmost at the clinical phase. What kindof news can we expect from MorphoSysin 2010?Besides the accelerating flow of new programsentering clinical trials in 2010 we are closing inon a very significant milestone for MorphoSys –the first clinical proof-of-concept for one of ourHuCAL antibodies. Many investors, especiallyin the US, have told us that they see such anevent looming, expect it to be a trigger for theshare price, and want to be in the stock beforethat happens. With regard to new partnerships,we strive, amongst other initiatives, to sign newdeals in the infectious disease space similar tothe Daiichi Sankyo alliance we announced inOctober 2009.

If you analyse the current situation forbiotech founders in Bavaria, what isbetter compared to the early days ofMorphoSys? Is there anything you wouldimprove?When we founded the company back in 1992there was no noteworthy biotech industry inGermany and only fragments of the infrastruc -ture today’s founders can potentially rely on.

The political climate for biotech in general wasa disaster at that time. From this perspectivetoday’s entrepreneurs face much more favou-rable conditions. In terms of things that couldbe improved, I would point to the need for adifferent political approach to how financiallosses are handled in research-stage compa-nies. We, a selection of entrepreneurs andfinance experts from the German biotech sectorin collaboration with the industry associationBioDeutschland, addressed this topic in anopen letter to Chancellor Merkel. Additionally,we suggest tax credits for expenditure on re-search and development in small companies,to bring Germany into line with standardpractice in several other European countries.

MorphoSys was founded in 1992. Whichlocation factors determined the decisionat that time for Bavaria and especiallyMunich?In those early days of the company, the closeinteraction with our co-founder Prof. AndreasPlückthun was very important and one of ourmain considerations. At that time, he worked atthe Max Planck Institute for Biochemistry inMartinsried before moving on to Switzerland.So the choice we made to found MorphoSys inMunich was a rather simple one, and was basedon proximity to our co-founder and his lab.

Dr. Simon Moroney is founderand CEO of MorphoSys. TheMunich-based company is oneof the world's leading biotech-nology companies focusing onfully human antibodies.

Roche is the worldwide number one in the fieldof in-vitro diagnostics. Roche has set up an im-portant centre for diagnostics, development andproduction in Penzberg, Bavaria, a small cityabout 40 kilometers south of Munich. Duringthe last three decades this facility has grownto 350,000 square metres making it one of thelargest Biotech-Centres in Europe. What makesPenzberg special is that it is the only Roche sitein the world at which research, development andproduction are carried out for diagnostics andpharmaceuticals.

Why did Roche select to settle at Penz-berg, a former mining town in Bavaria? That was based upon a very practical decision!Towards the end of the 1960s, the original fac -tory premises were no longer expandable. Anemployee actually gave the management thedecisive information that a former coal minein Penzberg had been disused for several years.The rest is history – because since the layingof the foundation stone in 1972 the factory hasdeveloped into Roche’s biggest biotechnologyfactory in Europe on an area of 350,000 squaremetres.

Roche now employs around 4,500 employeesin Penzberg. What distinguishes the siteand the region?For one the region is one of the most beautifulareas in Germany! Further our company hasvery good scientific links with the universities,

colleges and institutes in the region. Also,Bavaria is a technology friendly site. Businessand politics communicate in partnership. Withinthe Roche Group, the Penzberg site plays animportant role. Here, research, development andproduction of the two Roche divisions – Pharma-ceuticals and Diagnostics are united under oneroof. This is unique in the Roche world.

What does Penzberg contribute withinthe Roche group in the field of in-vitrodiagnostics?The whole value chain is present at the Penzbergsite – research, development and production. Forexample new biomarkers for the diagnosis ofin fections, cancer or immune diseases are sear-ched for here. They are incorporated in analysissystems which are used in large laboratories, hos-pitals and doctor’s practices. But Penzberg alsosupplies products to the research market. Almosteverything that researchers need to investigategenetic material, cells, proteins or biochemicalpathways is produced and evaluated at the site.

You have particularly extended your pro-duct portfolio in immunology and in labo-ratory diagnostics. What products wereadded?Numerous research projects for improved diag-nostics of rheumathoide arthritis, of metabolicsyndrome, different cancers and cardiovascularcomplaints focus on the search for and fixing ofnew protein markers and their reading as singlemarkers or in combination. For the overall bio-marker programme, the diagnostics researchunit makes a substantial contribution to the pro-filing of illnesses, patient groups and to therapysuccesses, by identifying and characterisingsuitable biomarkers with its test methods.

What challenges do you see in the shortand medium term in the field of in-vitro di-agnos tics?

“Bavaria is a technology-friendly site”

Interview with Dr. Joachim Eberle, Research and Development Manager at Roche Professional Diagnostics, Penzberg

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Dr. Joachim Eberle is Head ofResearch and Development

at Roche Professional Diagnostics, Penzberg

Medical research is continually opening up newor expanded possibilities of diagnosis. Let ustake the biomarker programme as an example.Once they are identified, these markers mustprovide reliable statements as the basis of thetherapy chosen by the doctor. The challenge thenconsists of identifying the most suitable markers.

How are you facing these challenges?Our employees in the biomarker programme arelooking for suitable markers from a diagnosticas well as pharmaceutical standpoint. We arewell networked for this via international collabo-rations and use the most modern technologiesfor analysing markers or to find them internallyusing suitable experiments.

For groups like Roche, proximity to innova-tive small biotech companies is important,as well as their own in-house research.How important, for you, is closeness to thebiotech cluster Martinsried/Weihenstephanand to all the research institutions basedthere?It is now indispensable for research to maintaincontacts with the best scientific institutions. It isalso vital, however, to find well trained employees.These requirements are met thanks to the BioRegion of Munich.

Thank you very much for the interview.

The interview was conducted by Mathias Renz

The large area of Roche in PenzbergPhoto: © Roche

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Bavaria offers a good infrastructure for compa-nies producing gene technology products andhas an established research landscape, includingin the field of biotechnology. MIKROGEN GmbH,which has been based in Bavaria for 20 years,has benefited from this, as well as from thecollaborations between established companiesand start-ups regularly initiated by the BavarianResearch Foundation.

Good Site Conditions Dr. Erwin Soutschek, one of the two managingdirectors of MIKROGEN, is certain that ”the re-cruiting of employees and co operation partnersis made easier by the good site conditions andthe image of the Munich Biotech-Region“. Thisalso makes approaching customers easier, saysSoutschek, who alsopraises the “extremelyconstructive coopera-tion with the officialauthorities in differentregions of Bavaria“.”We have heard frompartners that this doesnot always function assmoothly in otherstates of Germany“,adds Soutschek.

Spin-off from the LMUSoutschek and Dr. Manfred Motz founded MIKRO- GEN GmbH together in 1989 as one of the firstGerman start-ups in the field of biotechnology,following their doctorate in the field of medicalmicrobiology at LMU Munich. Soutschek andMotz received 750,000 DM for the founding ofthe company from the BMBF’s (Federal Ministryof Education and Research) TOU programme forthe “promotion of the founding of technology-oriented companies“. MIKROGEN brought itsfirst products onto the market in 1991, and hasbeen building up its own distribution in Germanysince 1995. At the beginning of 2001, Soutschekand Motz strengthened their commitment toexports, including to Eastern Europe, and con-cluded a large number of distribution contractswith European partners. MIKROGEN first settled

in the Westend business park in Munich, andafterwards in Martinsried until 2005, and sincethen Neuried has been the company headquarters.

European Market LeadersMIKROGEN develops, produces and markets testsystems for medical laboratory diagnostics in thefield of bacterial and virus-induced infectiousdiseases and auto-immune diseases. The compa -ny is now the market leader in the field of medi-cal laboratory diagnostics, especially in testingfor Lyme disease, not only in Germany but alsoSwitzerland, France, Sweden and the Nether-lands. The technology platform of MIKROGEN isprotected by patents in Germany, Europe and theUSA. Soutschek states that sales in 2008 amoun-ted to 11 million Euros; for 2009 he forecasts12.5 million Euros, and expects sales of approx.18 million Euros in three to four years.

US Market in its SightsSince its founding, MIKROGEN has always grownorganically from financing from its own profits.The company has not had an investor on board todate, but Soutschek assumes a need to acquireventure capital or a strategic investor in the shortto medium term. “Our next important mile stoneis expansion into the USA. Capital in any formwill help us to realise requirements such asthe expansion of production premises madenecessary by entry into the US market, and theemployment of personnel who will see to thefulfilment of the regulatory requirements“,explains Soutschek. The step will also be madeeasier by one of the state representations thatBavaria maintains abroad; these provide supportthat includes helping companies in their searchfor distributors on site.

Ideal Conditions for Biotech Companies

MIKROGEN GmbH: 20 Years of Organic Growth

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Dr. Erwin Soutschek, managing director, MIKROGEN

MIKROGEN emerged as the market leader of Europe in thefield of laboratory diagnostics.

Photo: © Julián Rovagnati - Fotolia.com

For over 40 years, the centre has been resear -ching chronic illnesses and seeking a betterunder standing of the relationships betweenhealth and environment. The innovative linkingof light and sound waves could facilitate theexamination of tumours and coronary vesselsin human beings.

Research at the Highest LevelSince 1964, the researchers at the HelmholtzZentrum München have been working out basicprinciples and applications for the treatment ofcomplex chronic illnesses. Originally founded asthe Gesellschaft für Strahlenforschung (societyfor radiation research), it was renamed as theHelmholtz Zentrum München in 2008, in order toreflect the institution’s strategic reorientation.The institute, Germany’s biggest environmentalcentre since the 1990s, is bundling its activities

in the health and environmental field and concen-trating its research upon environmental health inthe new millennium. The Helmholtz Zentrum nowemploys over 1,600 people, of which almost 1,300are scientists and technical employees.

Audible LightWith a combination of light waves and ultrasound,the researchers at the Helmholtz Zentrum havenow succeeded in making proteins that areseveral centimetres deep in living tissue visible.A detailed observation of cell functions or ab-normal changes was previously impossible at atissue thickness of more than half a millimetre.Scientists of the Helmholtz Zentrum have broken

through this barrier and produced three-dimen-sional images of a six-millimetre-thick zebra fish.For this, the fish is irradiated with laser flashes.Fluorescent dyes inside the fish light up underthe flashes, causing the immediately surroundingarea to heat up and expand. Due to the high speed,an ultrasound echo is produced, which the resear -chers capture with special microphones. A com-puter then converts the sound wave pattern intoa three-dimensional image. The result of the“multi-spectral optoacoustic tomography“ (MSOT)is an image with a resolution of four hundredthsof a millimetre. Vasilis Ntziachtistos, Director ofthe Institute of Biological and Medical Imagingat the Helmholtz Zentrum: “MSOT offers anenormous potential for biomedical research, thedevelopment of medicines and medical care.“Biologists can follow the development of organs,cell functions and genes through deeper tissue

and thus the develop-ment of tumours andother biological proces-ses, such as disease ofcoronary arteries. Phar-maceutical researchcan also be decisivelyaccelerated by obser-ving the molecular ef-fects of new agentsagainst cancer, overlonger periods of timeand in the framework oftests on animals.

A Strong NetworkThe Helmholtz Zentrum München does not workalone. A lively exchange takes place with inter-nationally used experimental platforms, clinicalcooperation groups and centres for translationalmedicine. Collaborations also exist with theMunich universities and other national and inter-nationally leading institutes. Researchers at theHelmholtz Zentrum are regularly scientific articlespublished in international specialist magazines.In addition, the centre also supports spin-offs ofyoung entrepreneurs. An important boost is thusgiven to cooperation between state research andindustry in Germany.

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Scientists of the Helmholtz Zentrum produced three-dimensional images of a six-millimetre-thick zebra fish.Photo: © Helmholtz Zentrum München

The Sound of Light

Helmholtz Zentrum München: Making light audible

Medical technology is regarded as an inno-vative and relatively crisis-resistant industry.A particularly exciting area in this broad fieldis imaging, which is to say the representationof the insides of the body in a form that can atleast be interpreted by the medical personnel.Many people are already familiar with X-rays,ultrasound, and computer and magnetic reso-nance tomography (MRT) from their own exa-minations. But development is by no meansover. The site of Bavaria is pushing innovationahead – thanks to its research institutes andcompanies.

Market Leaders in Erlangen and GarchingThe market for imaging is dominated by thebiggest electronics companies – such as Gene-ral Electric and Siemens – with their health-care divisions. Both also have important sitesin Bavaria, at Garching near Munich (GE) and inErlangen (Siemens). In addition to these, manysmall Bavarian companies are also active inthe field of imaging. One centre for this sectoris the Nuremberg region, with Siemens and theInstitute of Medical Physics of Prof. Dr. WilliKalender at the University of Erlangen-Nürnberg.

Especially in computer tomography, Kalender isa world-recognised expert. He is regarded asthe inventor of spiral CT, which he introduced in1989 and which is now the standard procedureof computer tomography. In the spiral proce-dure, the patient is pushed lengthways throughthe radiation planes at constant speed, whilethe radiation detector constantly rotates.

Siemens has also contributed to innovation in CT.In 2005, the company presented the dual-sourcecomputer tomograph. In this, two rotating x-rayemitters set at 90 degrees to each other workat the same time. This halves the recordingtime and thus the time that the patient hasto spend in the CT. This is especially usefuland helpful in the case of heart imaging. The

Nuremberg company Ziehm Imaging, on the otherhand, has distinguished itself as a specialist inmobile x-ray solutions. The devices from Ziehmare intended to allow the visualisation of thefinest tissue, vessel and bone structures, evenduring the operation.

MRT and PET Complement Each OtherMagnetic resonance tomography (MRT) hasestablished itself as an alternative to computertomography. Unlike in CT, the patient is not sub-jected to any exposure to radiation. Neither is itnecessary to administer any contrast agents inorder to image organs and tissue with high con-trast. The technology is based upon magneticfields and alternating electromagnetic fields inthe radio frequency range. These are used toexcite particular atom nuclei in the body into re-sonance. The different relaxation times of dif-ferent tissues then provide the image contrast.

One leading researcher in the field of MRT is Prof.Dr. Peter Michael Jakob of the Chair for Experi-mental Physics V at the University of Wurzburg.He sees a technology of the future in the combi-nation of MRT and position emission tomography(PET), which is frequently used to find tumours.He says that the combination of the two tech-nologies provides the added value that onecan determine the position of the tumours moreaccurately.

Another combination of different technologies ismolecular imaging, which is being researched by,among others, GE Healthcare in its researchcentre in Garching. This process makes it pos-sible to view the surface and inside of a bodycell and to monitor the extent to which it chan -ges or how cell processes take place. Defectscaused by illnesses or a clinical intervention canalso be represented. In addition, one can observehow a cell or a group of cells changes its stateor its metabolism over a specific period of time.Doctors can quantify and interpret these changes,

To See More Clearly

Many Innovations in Imaging Come from Bavaria

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and relate them to the progression of an illnessor the condition of the patient, in order to guidethe therapy appropriately. This is applied, forexample, in the context of cancer or in cardiologyor neurology screenings of high-risk patients inwhom no symptoms of illness have yet occurred.

New Systems for Better ResultsMolecular imaging is not restricted to a particu-lar imaging process. It is true to say that hybridsystems such as combined PET/CT systems andSPECT/CT systems produce excellent results inthe representation of radioactive molecules, but

MRT also has great potential. New scanners areproving useful above all for oncological exami-nations – because more than 90% of all PET/CTexaminations take place here. Even the smallestlesions can be recognised due to the excellentspatial image resolution.

Despite the obvious presence of successful in-novations, some university researchers wouldprefer a stronger involvement of the companiesin fundamental research. One often receives theimpression that research is only conducted whenthe subsidies are flowing. It is here also necessaryfor politicians to encourage companies to investmore in fundamental research. As well as this,the universities should also be prompted more toapproach the companies.

Qualified Personnel as an Important Site FactorThe quality of Bavaria as a site depends very heavilyon how easy it is here to find and keep qualifiedpeople. One hears from the universities that theywould find better conditions abroad, but also inBaden-Württemberg. The Free State also requiressuitable programmes for enticing people here fromother sites. This is partly already succeeding, withthe Excellence Initiative in Munich – althoughscientists are said to depart from this constructafter only a few years. A long-term bond withthe site of Bavaria would be much more impor-tant.

ConclusionBavaria has also achieved substantial researchsuccesses in imaging. This field benefits from out-standing site conditions in not just one but tworegions: Munich and in particular Nuremberg/Er-langen. In future, the Free State should endeavourto attract highly-qualified scientists to its univer-sities and to also keep them there for the longterm. Then both established and new companieswould be able to benefit from proximity to re-search institutions.

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The Discovery PET/CT 600 scanner by GE Healthcare is optimized for use in oncology.Photo: © General Electric

Qualified Personnel as an Important Site Factor in Bavaria.Photo: © BioM

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Prof. Jakob, what innovations in the fieldof imaging do you regard as particularlytrendsetting?An interesting new development that will veryprobably become established in clinical routineis the combined imaging process using MR andPET, which opens up new kinds of perspectives.On the one hand, the MRT process displaysanatomy excellently and on the other, the si-multaneous PET imaging makes the metabolismin the cells visible by using weakly radioactivesubstances.

Where do you see Bavaria as a site in aninternational comparison?In Bavaria we have very good sites, such as Erlan-gen, with Prof. Kalender (University of Erlangen)and Siemens as an equipment manufacturer.Sie mens are also working actively on theMR-PET technology. The first MR-PET deviceshave already been delivered and are beingtested in a clinical context. So we are definitelyat the forefront nationally, as far as innovationsin this field are concerned – and that also appliesinternationally.

What priority does research have at medical technology companies?Of course, every company in the medical techno lo -gy industry claims to be carrying out active research.The question is how seriously the companiesreally are about it. Often only the procedures andtechnologies that are already available are imple-mented, using the existing equipment platform.I, however, regard real fundamental researchas meaning that companies are also carryingout intensive research into things for which themarket value is not immediately recognisable.The com panies certainly tend mostly to stayout of this form of research. I would thereforelike them to make a greater contribution thereas well.

Why is that obviously not happening enough?Companies are always ready to enter into funda-mental research if they can expect a 50% subsidy.One therefore sometimes receives the impressionthat research only occurs when subsidies are

flowing. Politicians also need to motivate compa-nies to invest more into fundamental research.As well as this, the universities must also be en-couraged to approach the individual companiesmore.

What strategic decisions are decisive forBavaria as a site?The quality of Bavaria as a site will dependstrongly on whether it manages to gain qualifiedpeople and to keep them. The “high-carat” can-didates sometimes find better conditions abroad,but also already in the neighbouring German stateof Baden-Württemberg. These scientists will notfeel bound to the site of Bavaria if they have thefeeling that they would find higher incomes andbetter research conditions somewhere else. Wetherefore require suitable programmes for enticingpeople here from other sites and binding them tothe site of Bavaria for the long term.

Is there also a structural problem here?We basically have the problem that we in re- search – and especially at the universities – haveno cen tral structure. At the faculties there isgenerally a professor, a secretary and someassistants. Many of them usually have time-limited contracts – nor mally for six years. Butthose who want to achieve something in thelong term need the option of retaining goodscientists – who are perhaps not striving for aqualification - for the long term. Here, we are inthe fortunate situation of having such a researchcentre that collects precisely these scientists.In future, we will need more of such “collectingvessels“, because these scientists and theirknow-how are eminently im por tant for theimplementation of future innovations.

“We require suitable programmes for

binding people to Bavaria”

Interview with Prof. Dr. Peter Jakob, University of Wurzburg

Prof. Dr. Peter Jakob is Headthe Department of ExperimentalPhysics 5 at the Institute of Phy-sics, University of Würzburg.

Bavaria offers attractive site conditions for thosefounding new companies in the field of medicaltechnical navigation and robotics. According toexperts, this does not just depend on the hardfactors such as subsidies and the options forregional networking. Soft factors such as thequality of life in the “holiday destination” ofBavaria are also said to play an important rolein the choice of location.

Global players have their headquarters in BavariaBavaria is positioned prominently in the growingmedical technology market. The German medicalproducts industry employs about 150,000 peopleand generates more than half of its sales withproducts that are no more than three years old.A good 20% of employees in the German medicalproduct sector work in Bavaria – there are almost20,000 highly qualified employees in the field ofmedical technology. This puts the region substan-tially above average compared with other statesin Germany. More than 60% of Germany’s produc -tion of electrical medical equipment and around30% of its total medical-technical production takesplace in Bavaria.

This is because high-sales medical technologycompanies and pharmaceuticals giants with big-

name medical technology divisions have theirheadquarters in Bavaria, or at least possess animportant site there. Global players such asSiemens Medical Solutions, Baxter, FreseniusMedical Care, GlaxoSmithKline, BrainLab,Novartis Pharma, Roche and General Electric withits European research centre in Garching standfor the industry. In addition more than 250 smallto medium-sized companies - many of whichoperate in the field of medical navigation androbotics - carry out research, development andother work in Bavaria.

Ideal research partners are available“The most important site factors for healthcarecompanies active in the field of navigation/robotics are a comprehensive interdisciplinaryresearch landscape andsuitable industrial keypersonnel. In the area ofuniversity and privateresearch, strong part-ners are needed in thefields of informationtechnology, mechatro-nics, sensors, automa-tion and medical appli-cation (esp. surgery).At an industrial level,manufac turers withexperience in the fields of robot development,software development, embedded systems, elec -tronics, control technology, imaging and imagedata processing are necessary,” finds Dr. MatthiasSchier from the Forum MedTech Pharma e.V.

Bavaria fits this profile of requirements to anoutstanding degree. “Ideal research partners areavailable”, in the form of the DLR (Germany’snational research centre for aeronautics and space),medical technology and information technologyfaculties active in this field in Er langen-Nurem-berg and Munich, university hos pitals in Munich,Erlangen-Nuremberg and Regensburg, and theFraunhofer Institutes for Integrated Circuits ISS(Erlangen) and Reliability and MicrointegrationIZM (Munich). It is important for Schier that“as well as medical technology, the clusters for

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Innovative Environment in Bavaria

An excellent location in which to relocateor found a medical technology company

Dr. Matthias Schier, Forum MedTech Pharma e.V.

BrainLAB headquarters in Feldkirchen: Many high-sales medical technology companies have their head-quarters or an important site in Bavaria.Photo: © BrainLAB

satellite navigation, information and communi-cation technology, sensors and power electronics,and mechatronics and automation can also makevaluable contributions.”

This abundance of pos-sible partners is extre-mely important because“the principle of geo-graphical proximity”cannot be rated toohighly, finds Dr. RobertKlarner of the DLR. Evenin an era of Skype, theInternet and video-conferencing, he saysthat it is indispensable

to have direct contact to potential partners andcustomers. Prof. Dr. Tim Lüth, Holder of the Chairfor Micro Technologyand Medical DeviceTechnology at the TUMunich, underlines thisview: “The handling ofdevelopment is parti-cularly important inthe case of medicalequipment.” This, hesays, cannot be repre-sented by e-mail, “in -stead, for example, thesupplier must visit thepremises.” In the field of medical technology,nothing beats holding the item and trying it out.He says that this approach is also more efficientthan constantly sending e-mails back and forthand that it protects innovations: “We have hadthe experience that arranging courses of actionin direct personal conversations works well”,adds Lüth. The alternative is to specify require-ments or characteristics in writing “and thatcan of course be copied and used elsewhere.”

Innovative environment in BavariaFor Klarner and Lüth, spin-offs from universitiesand research institutions are especially promisingof success because the new entrepreneurs canbuild upon relationships that have already beencultivated and upon shared technical foundati-ons. Klarner calls this the “innovative milieu”, andsays that it exists in an excellent form in Bavaria.

Also important are the institutionalised fundingoptions, as provided via the so-called ESA incu-bators at DLR sites. The example of a non-invasive device for the treatment of tumours

shows how space technology can make adecisive contribution to the development ofnew medical devices: magnetic resonance to-mography (MRT) for the location and diagnosisof cancerous tissue and high-intensity focussedultrasound (HIFU) for “burning out” malignantcells are expected to open up a new approachto treatment. The software platform EuroSim,originally developed for the real-time simulationof satellites, was used for the solution of com-plex technical problems in designing the system.The ESA technical knowledge for the modellingof wave propagation was of decisive importancein ensuring that the MRT and HIFU technologieswere optimally coordinated with each other.

Also important: High quality of lifeLüth sees potential for improvements, e.g. inthe matter of patent law. Since the change inthe law in 2003, patents no longer belong to theprofessors, but instead to the universities. Lüthsees this as having an “inhibiting effect onspin-offs.” This is, however, a fundamentallynation-wide problem. Schier sees potential inderegulation and improved financing in thehospital segment: “As in many areas of medi-cal technology, the general conditions for theclinical evaluation of new technologies are notoptimal - even in navigation and robotics – asregards regulatory requirements and with respectto financial equipment and the personnel resour-ces of the hospitals”, he claims.

All in all, however, Bavaria is an excellent lo-cation in which to relocate or newly found amedical technology company, he says. “Aswell as the hard factors mentioned, the highquality of life in Bavaria is also a reason for this”,clarifies Lüth.

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Dr. Robert Klarner, Regional BranchOffice Technology Marketing,German Aerospace Center (DLR)

Prof. Dr. Tim Lüth, TU Munich

Excellent research partners: Germany’s national research centre for aeronautics and space (DLR) in Oberpfaffenhofen

Photo: © DLR

Living with more self-determination, being lessdependent on constant visits to the doctor orhospital stays – telemedicine, homecare andambient assisted living (AAL) can offer peoplemore quality of life. The field of so-called e-healthis about using medical and information techno-logy in health care. Innovations are promisinggrowth here, provided that the health serviceinvolved is also paid for, either by the insuranceschemes or by the patients themselves.

Staying active nd mobile in old ageIn Germany today, between 16 and 17 millionpeople are over 65 years old. The proportion ofthe population of this age will continue to grow,and is expected to already be over 20 million inthe year 2030. There is also an increasing wishto continue to be active, to be independent, andto maintain social relationships. Frequent visitsto doctors or even longer stays in hospitals orrehabilitation clinics can conflict with theseexpec tations. It is therefore important, now andin the future, to expand the possibilities for looking

after patients in their natural living environment.Ambient assisted living (AAL), homecare andtelemedicine applications are areas which arebeing developed. Telemedicine is regarded asan important field of innovation for medical andinformation technology in healthcare.

“Thinking based on the person”Research results have shown that people whoare still relatively fit, remain active in their socialmilieu and also participate in their own health-care normally also stay healthy for longer. Inorder to promote “provision in one’s own home“,contact to doctors, medical personnel and carersfrom one’s own home must be simplified. The useof modern technology is here a central element.“Appropriate solutions must, however, always bedeveloped based on the person – the patient –and not just the technology“, says Prof. HeinzGerhäuser, Director of the Fraunhofer Institut forIntegrated Circuits IIS in Erlangen. “The personmust accept the technology, understand the hand-ling and also want it for himself“. The FraunhoferIIS carries out research and development in thefield of software, microelectronics and informa-tion and communication technology.

Aiming at cost containmentMobile technology for mobile people is a concernof Prof. Gerhäuser, who played a decisive role inthe development of the “MP3” audio system. Inhealthcare, the need for in-patient treatment canbe reduced with the use of suitable technology.The latter is also a matter of price. Even if thefocus is on the improvement of the patients’quality of life, the aim of cost containment inhealthcare is also a factor in the application ofhomecare and telemonitoring. Expenditure willcertainly continue to rise together with the growthof the proportion of old people in the population.New channels of treatment can also help tomake good healthcare more affordable. Ideally,

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For More Quality of

Life and Independence

Telemedicine and Homecare Growingin Importance

The person must accept the technology, understand the handling and also want it for himself.Photo: © BioM

telemedicine improves quality of life and at thesame time lowers treatment costs comparedwith “conventional“ methods. There are, how -ever, no accurate figures about the telemedicinemarket and savings in healthcare or the growthpotential of such care and treatment channels.

Lifesaver in an emergencyBut there are numerous examples. Telemonito-ring - the observation of patients outside medi-cal establishments - is a very important seg-ment of telemedicine. It comprises the remoteexamination, diagnosis and monitoring of thepatient by the responsible doctor. In the case ofchronically ill people – cardiac illnesses anddiabetes are particular focuses – data goesfrom the measurement apparatus of the patientdirectly to the doctor or carer or to the closesttelemedical centre, where they are stored andanalysed. Such vital information can includeweight, blood pressure and heart rate amongothers. If certain limit values are exceeded, theresponsible medic receives a signal. In an emer-gency, a doctor or nurse can then visit the pa-tient straight away. This can sometimes savelives. Also, with a device like a PDA (PersonalDigital Assistant), information can be transmit-ted from the doctor to the patient, e.g. the re-minder to take medication or the communica-tion of a particular measure based upon the pa-tient data already received.

Swift provision minimises subsequent da-mage to healthAid can thus be provided swiftly in acute situa-tions. But telemonitoring can contribute, in par-ticular, towards preventing acute situationsfrom arising in the first place, by providing earlywarnings – the early recognition of trends ofdeterioration in certain measurement valuessuch as heart-rate, blood pressure, etc.. Thisalso minimises subsequent damage to healththat would lead to additional high costs. Onearea of application, for example, is the diagno-sis and acute therapy of strokes. Here, everyminute counts. That is why Bavaria has set up anetwork of 19 special stroke wards. Assisted bythe telemedical connection of clinics to thesecentres, patients can be provided with careswiftly and regardless of their place of admis-sion. Cardiovascular illnesses are by far themost frequent cause of death in Germany, and amuch more frequent cause than cancer.

FitForAge – maintaining fitnessPrevention is therefore a keyword that has clim-bed a considerable distance up the priority lad-der during the past few years. Especially in an

ageing society, it is central for an approach toachieving better health. The project “FitFo-rAge“, promoted by the Bavarian ResearchFoundation, involves capable partners from in-dustry, research and universities. This also in-cludes the Fraunhofer IIS with Prof. Gerhäuser:“The aim is for people to train their physical

and mental fitness early. This will extend qua-lity of life in the future“. How fit someone is, hesays, depends not so much on his calendar ageas on his biological age. “The research associa-tion tries to find technical solutions to enablepeople to stay mobile and fit-for-work longerand – even when very old or as patients – tolive with self-determination with as little out-side help as possible“, explains Prof. Gerhäuser.

Growth market “mobile health”Companies that are active in the growth marketfor telemedical solutions are often to be en-countered in Nuremberg-Erlangen medical tech-nology cluster. This includes, for example, theDr. Hein Gruppe, founded in 1999, which is co-operating with the mobile radio group Vodafonein the “mobile health“ segment. The company isa member of the FitForAge association and of-fers, among things, technical solutions for theearly recognition of strokes and heart attacks.“But no matter how much technology there is,people still need personal contacts, otherwisetelemedical healthcare fails”, says ManagingDirector Robert Setz. He expects substantialgrowth in such applications in future, especiallyin the area of optional additional services(“self-paying market“). This also affects hiscompany, which is looking for a further investorto finance growth.

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Telemonitoring can sometimes save lives.Photo: © Matthias-Balzer-pixelio.de

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