Market Information
United States

Biotechnology Sector Profile: USA (Minneapolis)

The Canadian Trade Commissioner Service

May 2002

John Lambert/Kent Jensen
Business Development Officers
Canadian Consulate General
701 Fourth Ave. South #900
Minneapolis MN 55415
Tel.: (612) 332-7486
Fax: (612) 332-4061
E-mail: john.lambert@dfait-maeci.gc.ca
kent.jensen@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/minneapolis

Market Overview

Although the market is small compared to the East and West coasts of the United States, the Minneapolis post territory has a growing number of biotechnology companies working in the areas of agriculture, veterinary and medical biotechnology. Statistically, 8% of the biotechnology firms in the United States are located in Iowa, Colorado and Minnesota, and these three states are home to a number of world-class research centres renowned for excellence in agricultural and medical biotechnology. There is also notable crossover between agricultural and medical biotechnology; several firms engage in R&D for both subsectors.

The Upper Midwest and Mountain states region boasts one of the highest concentrations of animal research scientists and veterinary pharmaceutical companies in the U.S., reflecting a regional focus on agricultural production. Tellingly, more than one third of the agricultural biotechnology companies in the United States are located in the Upper Midwest and Mountain states. The region is also home to a number of world-renowned medical research universities and hospitals, including the University of Colorado Health Center, the University of Iowa Medical Center, the Iowa State Plant Sciences Center, the University of Minnesota, the Mayo Clinic and the University of Nebraska Medical Center.

Biotechnology companies in Iowa, Nebraska, Colorado and Minnesota are involved in a wide range of applications, including, but not limited to, human and veterinary vaccines, therapeutics, diagnostics, pharmaceuticals, drug-delivery systems, plant breeding/ cloning, and micropropagation.

Iowa's two chief non-commercial biotechnology centres are the University of Iowa (Iowa City) and Iowa State University (Ames). The University of Iowa serves as a base for the Biotechnology Byproducts Consortium, the Center for Biocatalysis and Bioprocessing, and the Technology Innovation Center/Oakdale Research Park. Research focuses on biocatalysis and bioprocessing, anaerobic fermentation, applications to animal feeding, and land applications. Iowa State University focuses on value-added agriculture and genetic engineering of animals, plants and micro-organisms.

Minnesota is home to a number of non-commercial centres involved in biotechnology R&D. The University of Minnesota hosts the Minnesota Food Animal Biotechnology Center, which is dedicated to enhancing agricultural systems, improving environmental quality, promoting safe and healthy foods and revitalizing rural communities. Two other organizations-the Biological Process Technology Institute and the Biomedical Engineering Center-concentrate on cell adhesion, bio-interfacial engineering, peptidomimetics, biomaterials, tissue engineering, and bio-artificial organs. Minnesota is also home to 1,000 medical device companies, many of which are actively involved in the development of combinatorial bio/medical devices. Medtronic, St Jude Medical, SciMed and Guidant are a few of the larger players.

Colorado has been recognized as a centre of biotech excellence. There are six prominent non-commercial centres in the state, including the Biotechnology Center at the University of Colorado and the University of Colorado Health Science Center (UCHSC), which is known internationally for the strength of its research and output. The UCHSC comprises, among other departments, the Biochemical Genetics Laboratory, the Cancer Research Center, the Center for Genetics and the DNA Diagnostic Laboratory. Colorado State University in Fort Collins, also well known for its R&D achievements, hosts the Colorado Bioprocessing Center and the Colorado Institute for Research in Biotechnology. Areas of activity at these locations include DNA sequencing, fermentation, protein microsequencing, tissue culture, monoclonal antibodies, and bioprocessing.

The University of Nebraska Medical Center (UNMC) has one of the three busiest transplantation programs in the world and has established an outstanding reputation for expertise in treating a variety of diseases. The UNMC Eppley Cancer Center is a founding member of the prestigious National Comprehensive Cancer Network (NCCN), an alliance of 17 of the world's leading cancer centres located in the United States.

The UNMC undertakes extensive research in combined liver/small bowel transplant programs, and is one of the few transplant centres in the U.S. offering pancreas and kidney/pancreas transplantation.

UNMC research led to the first peripheral stem cell transplant program in the United States in 1983, and set the standard for transplant treatment, performing more than 7,500 bone marrow, peripheral stem cell and solid organ transplants since the beginning of the transplant program. UNMC has been the driving force to establish a new method of classifying lymphoma, based on advances made in immunology and genetics. This will lead to targeted and better treatment programs for lymphoma. Through innovative efforts in liver/small bowel transplantation and the use of stem cell transplants for treating rheumatoid arthritis and multiple sclerosis, patients continue to benefit from the latest clinical trials and investigational drugs tested at UNMC facilities.

Opportunities

Given the region's dependence on the agricultural industry, the focus on R&D in this region is on agricultural biotechnology, with large firms (e.g. Cargill, Pioneer, General Mills, Syngenta) accounting for the majority of activity in this area. Opportunities exist for companies producing biotechnology-derived products that enhance quality, nutrition and yield, particularly those involved in the production of corn, soybeans, cotton, canola, alfalfa and potatoes. Canada's experience and strength in applying biotechnology to improving agricultural output gives Canadian companies a competitive advantage in the post market.

An increasing number of biomedical firms in the region are gaining salience for their work, and significant R&D investment is being made in biotechnology by more traditional medical device companies in the territory (particularly in cardiovascular science, where a number of combinatorial devices and drug-delivery solutions are being incorporated in upstream product development). Promising growth areas in the field of biomedical technology include products used in the diagnosis and treatment of prominent diseases such as cardiovascular, cancer, multiple sclerosis, cystic fibrosis and rheumatoid arthritis. Other research subjects currently attracting significant attention by industry participants are those involving molecular vaccines, thrombolic agents, erythropoietin and interferons. While the territory is still trying to establish itself as a significant force in biotechnology when compared to the East and West coast, growing involvement from within the medical device community holds promise for the future