Market Information
United States

Biotechnology Sector Profile: USA - Chicago

May 2002

Chris Bigall
Business Development Officer
Canadian Consulate General
180 North Stetson Ave., Suite 2400
Chicago, IL 60601
Tel.: (312) 327-3625
Fax: (312) 616-1878
E-mail: chris.bigall@dfait-maeci.gc.ca
Internet: http://www.can-am.gc.ca/chicago

Market Overview

Although the Midwestern United States is not the first place most people think of when considering centres of biotechnology excellence, it's really more of a marketing issue than a technology issue. The area is active in both medical/pharmaceutical and agricultural biotechnology, and is home to Abbott Laboratories, Baxter International and a state-of-the-art Pharmacia research facility (formerly G.D. Searle), as well as a large number of smaller companies. In addition, Bayer chose Kansas City as its NAFTA region headquarters. The area continues to attract new companies and grow local startups as well. Examples of companies to watch include Arryx, AniGenics, cue BIO tech, NimbleGen, Stratatech and Orion Genomics.

The region is also strong in the area of research and development (R&D). The Illinois Medical District is the largest urban medical centre in the world, and includes private, county, state and federal facilities all in one location. Chicago is also home to Northwestern University, the University of Illinois-Chicago and the Chicago Livingston Technology Park, Chicago's biotechnology incubator. Washington University in St. Louis has a new pediatric centre and continues to reap the benefits of hosting a large portion of the Human Genome Sequencing Project in addition to its 27 medical programs.

The region encompassed by the Chicago Post Territory has dedicated itself to building high-tech businesses from the ground up, as demonstrated by the numerous incubators situated here. The City of Chicago has also instituted a plan to encourage biotechnology startups to remain in the area once they graduate from incubators to mid-sized companies. Their defection to one coast or the other is a common challenge faced by all Midwest municipalities.

The Midwest controls almost a quarter of the world's productive capacity (Illinois is the number two producer of both corn and soybeans) and sells those products around the world. Working with world-class universities and researchers, companies such as Monsanto will continue to modify seeds to produce more and better seed, which can be grown with fewer pesticides. Additionally, companies such as Infigen and Gala Design in America's dairyland continue to improve herds and production capacity through both traditional methods and bioengineering.

The region is also strong in R&D. The Nidus Centre for Scientific Enterprise, which began operating in 2000, serves as an incubator for biotechnology and encourages commercialization of technologies. Dr. Robert Calcaterra, the Nidus Centre's President and CEO, is always interested in sharing best practices. The Donald Danforth Plant Science Centre, which officially opened its doors in November 2001, provides lab space and academic support for researchers, and one of their stated goals is to share technology to improve traits and production for crops grown in developing nations. The University of Wisconsin and the University of Illinois Urbana-Champaign are extremely strong in agricultural biotechnology. They support research in both plant and animal applications that are dedicated to improving yield and quality of products, and they house a number of germ plasm collections.

A recent study completed by Battelle for the St. Louis Regional Chamber and Growth Association (RCGA) indicates that the region is well on its way to becoming "the premier international centre for plant sciences, and a major national and international centre in life sciences."

Opportunities

Although biotechnology is not an area in which typical traditional exporting takes place, there is a lot of room for strategic partnering and technology transfer. Possibilities include R&D collaboration, in- and out-licensing of technologies, product development, venture-capital funding and joint ventures. Companies and researchers in the Post Territory are very interested in working with Canadian partners to move their products along the R&D path and through marketing channels. Medical, plant and animal sciences are all abundant in the region.

Several local chemical/kit suppliers have approached the Consulate asking for sources for new assays in a wide variety of areas. Also, there are a number of local/regional venture funding and partnering conferences that welcome Canadian participants.

Market Access Considerations

All companies, whether local or foreign, are required to adhere to United States Food and Drug Association (USFDA) standards.

Major Competition

As Abbott CEO Miles White said at a recent local conference, "Abbott is a global company that happens to have its headquarters in the Chicago area." Any biotechnology company wishing to participate in this market will be facing global competition, and must be prepared to make a strong case for their technology and their business.

Other Useful Information Sources/Web Sites

I-BIO: http://www.chicagobiotechnetwork.org

MO-BIO: http://www.mobio.org

Wisconsin Biotechnology Association: http://www.wisconsinbiotech.org

BioBelt: http://www.biobelt.org

Donald Danforth Plant Science Centre: http://www.danforthcenter.org

Nidus Centre for Scientific Enterprise: http://www.niduscenter.com

Stowers Institute: http://www.stowers-institute.org

U of Illinois at Urbana-Champaign: http://www.aces.uiuc.edu/research

U of Illinois at Chicago: http://www.uic.edu/homeindex

U of Wisconsin Biotechnology Centre: http://www.biotech.wisc.edu

U of Missouri: http://www.system.missouri.edu

Northwestern University: http://www.kellogg.northwestern.edu/biotech/bio_stu_opps.htm

Medical College of Wisconsin: http://www.mcw.edu

Washington University in St. Louis: http://www.wustl.edu

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