Market Information
United States

Biotechnology Sector Profile: USA (Detroit)

May 2002

Ralph Reich
International Trade Officer
Consulate General
600 Renaissance Center, Suite 1100
Detroit, Michigan
USA, 48243-1798
Tel.: (313) 567-2340
Fax: (313) 567-2164
E-mail: ralph.reich@dfait-maeci.gc.ca
Internet: http://www.can-am.gc.ca/detroit

Market Overview

Michigan

In 1999, Michigan underscored its long-term commitment to reaching the top five biostates by creating the Michigan Life Sciences Corridor, a billion-dollar initiative funded from the state's settlement with the tobacco companies. Pfizer and Pharmacia invest more than $1.8 billion1 annually into research and development (R&D), with Michigan's major research institutions adding more than $605 million. The billion-dollar Van Andel Research Institute is yet another sign that life sciences are becoming an important part of Michigan's diversifying economy. In 2001, 22 new life sciences companies began in Michigan, proof that the growth of the corridor is under way. Michigan is currently soliciting proposals from companies, universities and institutes for the fourth year of funding committed at nearly $76 million per year for 20 years.

The leading association in this sector is the Michigan BioSciences Industry Association (MBIA), which provides group benefits, forums, studies, educational services, regular meetings and an on-line career board. The MBIA organizes Michigan BIOMEDEXPO, a one-day show and conference next scheduled for October 24, 2002. It also hosted Ontario companies to a partnering meeting last March.

BIO2002 (June 9-13, Toronto, Ontario), the largest biotechnology show in the world, will see a delegation of over 70 Michigan representatives, drawn from companies, universities and economic development organizations.

Ohio

Ohio is fourth in ranking of U.S. states in trade with Canada. It is often overlooked by Canadians despite its growing technological capabilities. Ohio is home to more than 350 companies directly engaged in producing biomedical products. These companies have over $15.1 billion annually in sales and employ 14,000. This sector is young and growing, with about 15 new companies forming each year.

The Ohio Business Roundtable is focussing on the following key issues to encourage the state's economic growth and positioning:

Promote "high performance" clusters, the most promising of which are:

• Biotech/medical devices in the Cleveland area (supported by polymers centred in Akron)
• Pharmaceuticals in southwestern Ohio
• Information technology in Columbus

Support leading-edge research at the major Ohio research-based universities:

• Case Western Research University
• Ohio State
• University of Cincinnati
• Akron (for polymers)

Stimulate early-stage venture capital to encourage business formation. The objective is to bring Ohio, which ranks seventh in population and the size of its economy, up from its generally middle ranking (25 out of 50 states) in most national measures (growth, wages, corporate profitability, etc.).

Companies named as being part of the biomedical devices cluster in Northeast Ohio include:

Health-care biotechnology companies:

• Athersys Inc. (gene therapy technologies)
• Copernicus Therapeutics (gene therapy)
• Cleveland Genomics
• Gebauer Company
• NetGenics Inc.

Medical devices companies:

• STERIS
• Invacare Corporation
• Cardiac Assist Devices Inc.
• Orbital Research/Cleveland Medical Devices (sensors and materials)
• Micronix Surgical Corporation
• Noteworthy Medical Systems (medical record tracking)
• Oxyfast Corporation (bandages)
• BIOMEC Inc. (development and commercialization)
• Advanced MicroMachines Inc.
• Axon Engineering Inc.

The Edison Biotechnology Center is the major coordinating body, with four offices throughout Ohio. Its Web site www.ebtc.org  is very informative, incorporating lists of companies, research facilities, sources of capital, reports, events and links. Two events of special note in 2002 are the Nanotechnology World Conference September 6-7, and BioOhio November 7-8, both in Columbus.

Kentucky

Kentucky has been gaining momentum through strong political support from Governor Patton and his Office of the New Economy, combined with strengths in biology, medical research and plant genetics. The well-known pharmaceutical college at the University of Kentucky (UK) operates its own Phase-3-qualified drug-production facility, which will move to a local industrial park and be available for more outside project work. Agbio expertise in the Tobacco Research Institute is being used to explore plants as molecular factories. Advanced medical abilities are centred on the University of Louisville (U of L) and local hospitals, including University Hospitals, Norton and Jewish. A good deal of research is being conducted on cancer, diabetes and cardiac problems, in addition to the more publicized artificial heart and limbreplant/ transplant programs.

The Kentucky Life Sciences Organization (http://www.klso.org) was established in 2001. The KLSO encourages life sciences entrepreneurship. It also helps existing life sciences, biotechnology, and healthcare-related companies and educational institutions in the Commonwealth attract talent and resources to Kentucky. Kentucky sent a significant delegation to BIO200, and will do so again this year. Governor Patton will be a speaker at the BIO2002 Global Technology Forum.

Indiana

Indiana has a strong medical device manufacturing industry, as well as a growing biotechnology capability centred at Indiana University and University Hospital. Dow Agro Sciences is major agbio influence, and is contracted with a number of Canadian companies. Indiana is home to Eli Lilly, a global pharmaceutical manufacturer in human and animal products. Purdue is strong in pharmacy, science and veterinary. Purdue received just over $39.3 million for forestry research into genetically engineered hardwoods.

Other Useful Information Sources/Web Sites

Michigan BioSciences Industry Association (MBIA): http://www.michbio.org

Michigan Life Sciences Corridor: http://medc.michigan.org/lifescience

The site includes lists of companies, events, venture capital, project proposals and statistics on funding.

Edison Biotechnology Center: http://www.ebtc.org 

For detailed market reports about this sector, please visit http://www.infoexport.gc.ca