Excellence2009The Official Publication of Bioscience in Ohio

Accelerating

A Balanced EquationBio execs discover great chemistry in Ohio

also inside: Ohio goes to market | $148 billion bioscience impact | Regional highlights

Published for: BioOhio (An Ohio Edison Center)1275 Kinnear RoadColumbus, OH 43212(614) 675-3686 | Fax: (614) 675-3687bioscience@bioohio.com | www.bioohio.com

BioOhio President & CEOAnthony Dennis, Ph.D.

Vice PresidentJohn F. Lewis, Jr.

Sr. Director, Workforce & EducationWilliam C. Tacon, Ph.D.

Director, Corporate CommunicationsMatt Schutte

Director, Business DevelopmentScott Osborne

Executive AssistantMartie Hexamer

Membership & Events CoordinatorJennifer Goldsberry

Vice President, Finance & AdministrationWilliam Poore

Chief Operating OfficerRobert A. Baxter

About BioOhioBioOhio is Ohio’s bioscience membership and development organization. A 501(c)(3) organization, BioOhio is committed to attracting and advancing bioscience organizations in Ohio through education, promotion, advocacy, engagement, and collaboration. Support for BioOhio is provided by the State of Ohio as well as BioOhio member organizations and sponsors.

Published by: BioMedia, LLC.Return Undeliverable Addresses to:311 Lloyd Road / Cleveland, OH 44132(216)373 -7676 | Fax (206)339-4452publisher@biomedia.uswww.ohiobiomagazine.com

Editor-in-Chief: Matt SchutteManaging Editor: James O’HareCirculation & Research: Joyce McMahon

© 2009 BioMedia, LLC Custom Publishing. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher and BioOhio

The Official Publication of Bioscience in Ohio

AcceleratingExcellence

2009

The Official Publication of Bioscience in Ohio

7 Message from BioOhio President & CEOAnthony DennisHistory provides lessons on the stimulating value of a crisis to encourage innovation.

11 Message from the Governor of the State of OhioTed StricklandFrom Thomas Edison and the electric light to the Wright Brothers and aviation, Ohio has been at the center of ingenuity and innovation.

12 Balancing ActBioscience executives in Ohio find a unique balance that enables robust success in both business achievement and personal satisfaction.

18 Ohio bioscience and healthcare industry impact: $148 billionSummary of latest report on bioscience in Ohio reveals dramatic growth and results.

20 Ohio: This state goes to marketThe world discovers that “Bio in Ohio” is money in the bank.

24 BioOhio’s “Elite Eight”Influence and impact of founding members endures, grows.

30 One State, Five Unique BioregionsA “road trip” around Ohio updates on bioscience growth in Ohio’s five regions.

38 Many Vantage Points, A Common BeliefBioOhio and Third Frontier Chairman Mark Collar shares the special role of government and public/private partnerships in Ohio.

36 Bioscience News from Around OhioBrief overviews of recent developments in Ohio.

From the Cover:Finding a striking balance in Ohio are

executives Barbara Kunz, President of Health & Life Sciences Global Business, Battelle;

David Scholl, CEO & President, Diagnostic Hybrids; Baiju Shah, CEO & President,

BioEnterprise; and Mark Laskovics, President & COO of Girindus America.

BioOhio Board of TrusteesChairmanMark A. CollarPartner, Triathlon Medical VenturesChairman, Third Frontier Advisory Board

Vice ChairPeter G. KleinhenzManaging Director, CID Capital

Past ChairmanTim BiroManaging Partner, Ohio Innovation Fund I

MembersJohn A. Bantle, II, Ph.D.Vice President, Research & Graduate Studies,Wright State University

Greg BlackmoreSr. Vice President and Group President, Life Sciences, STERIS

Rathindra Bose, Ph.D. V.P. for Research and Creative Activity,Ohio University

Sandra J. Degen, Ph.D.Vice President for Research, University of Cincinnati

Anthony J. Dennis, Ph.D.President & CEO, BioOhio

Paul DiCorletoChairman, Lerner Research Institute(Cleveland Clinic) and Chairman, Dept. of Molecular Medicine, Case School of Medicine

Kevin Driscoll, Ph.D.Executive Director, Global Health Care Connect & Develop, Procter & Gamble Health Care

John (Jack) FisherExecutive Vice President, Ohio Farm Bureau Federation

Mike HoovenPresident & CEO, Enable Medical Technologies

Barbara KunzPresident, Health & Life Sciences Global Division, Battelle

Thomas J. MurphyPresident & COO, Ben Venue Laboratories

John M. Rice, Ph.D.Managing Partner, Triathlon Medical Ventures

David R. Scholl, Ph.D.President & CEO, Diagnostic Hybrids, Inc.

Arnold W. Strauss, M.D.Director, Cincinnati Children’s Research FoundationChief Medical Officer, Cincinnati Children’s Hospital Medical Center

Caroline Whitacre, Ph.D.Vice President for Research,The Ohio State University

Accelerating Excellence

Message from the President & CEOof BioOhio

Anthony Dennis, Ph.D.

In my personal history I find I have learned and innovated more during times of great stress or failure than I have during periods of success. Even more importantly, I discovered that I have always come out of those periods better positioned than when I went in. But this isn’t about me—it’s about our state. Similarly, I believe that Ohio has a bright future and that the biosciences will be one of the key industries to lead us through the current crisis and into that future.

Even during the current downturn, the biosciences in Ohio—both industry and academia—have continued to grow and add jobs. This growth is due to several factors:

some of the world’s best CROs and pharmaceutical manufacturers

excellence at Ohio’s universities

leadership supporting all phases of company formation and growth.

In fact, the federal and state stimulus presents Ohio with an unprecedented opportunity to not only maintain the industry, but make a

great step forward. For example, we are planning events around the state with other organizations to help auto suppliers diversify

into the medical industry value chain. Also, we have proposed to the federal government the need for a comprehensivebioscienceworkforce strategy to complement the existing workforce

programs in order to fuel growth for existing and relocating companies. Furthermore, we are researching the creation of a virtual center for biomedical device development to serve all of Ohio’s innovators.

Ohio has tremendous bioscience assets in all corners of the state and I can think of no better time than right now to work together to harness the strength of those assets to insure that Ohio brings about a brighter future for everyone who benefits from more effective, efficient, and innovative bioscience developments.

As always, if you are a bioscience company operating in Ohio, we are proud to have you here. If you are a company who needs to grow or needs a new and supportive home, please give us a call and we can help you meet your most optimistic goals. AE

When do you innovate the best?

The federal and state stimulus presents Ohio with an unprecedented opportunity to not only

maintain the industry, but make a great step forward.

AcelleRx TherapeuticsAkebia TherapeuticsAllostatixAmerican Safety & Health

InstituteAMT SystemsAnalizaDxAria AnalyticsAris TeleradiologyArteriocyteAssureRxAthersysAtricureAvantecAxiomAxioMed SpineAyalogicBiosys MedicalBlue Chip Surgical Center

PartnersBrainwashedBranam Oral Health

TechnologiesCalfaciorCardiac PowerCardioInsight TechnologiesCell TargetingCervilenzChanTestCH MackClear CatheterCleveland BioLabsClevexClick4CareCopernicus TherapeuticsCritisenseCryMedCSF TherapeuticsDanfoss AquaZDiagnostic HybridsDiraMedEarly SenseEndotronixEris Medical TechnologiesEurandExceraFranklin & SeidelmannFreedom Meditech

Fused Multimodality ImagingFuture Path MedicalGaneden BiotechGreat Lakes PharmaceuticalsHealth Pro BrandsHill Top ResearchHTP, Inc.Icon InterventionalImaluxInfraRed Imaging SystemsIntElect MedicalInterscopic AnalysisInterventional Imaging, Inc.InVasc TherapeuticsLaboratory PartnersLife Line ScreeningM2M ImagingMDG MedicalMemberHealthMerlot OrthopediXMinimally Invasive DevicesMork ProcessMyriad HealthNanoStatics, LLCNCRx OpticalNDI MedicalNeoprobeNeuros MedicalNextMed SystemsNineSigmaNoteworthy MedicalOgenixOpticon MedicalOrthohelixP2D IncPartsSourcePercuvisionPeriTec BiosciencesPetsDx ImagingPhycotransgenicsPrevaHealthPrognostiXRescentris, Inc.Ricerca Biosciences LLCRoscoe MedicalSimbionixSpineform

SpineMatrixStaffKnexSTISymphony MedicalSynapse BiomedicalSyncro Medical InnovationsSynosticsTelerad ExpressThermedXTolera Transcutaneous TechnologiesTreatment-on-LineTrek DiagnosticsTurning Point, LLCTursiop TechnologiesVascular Biogenics

VasoLux MicroSystems LLCVentaira PharmaceuticalsVertebrationViewRayVision OptimizationVitality DistributingWholeHealthWIL Research Laboratorieswithin3Workflow.comXanthostat

Just follow the money to Ohio

Athersys (reverse Merger)

AtriCure

Bargmann Management

BioCrystal (product line purchased by Thermo Fisher Scientific)

BioCrystal (product line purchased by Invitrogen)

Biomec

Cleveland BioLabs

EdgePark Surgical

Eurand

Healthcare Transaction Processors (purchased by McKesson)

Hygenic

Memberhealth

NDI Medical (product line alliance with partial exit)

RSB Spine

Sears Dental and Dental Care

Shared P.E.T. Imaging, LLC (purchased by Alliance Imaging)

SourceOne Healthcare (purchased by Merry)

Theken Spine (purchased by Integra Life Sciences)

Trek Diagnostics (purchased by Magellen Biosciences)

USB / Anatrace (purchased by Affymetrix)

Wellcorp (purchased by Nationwide)

Whole Health Management (purchased by Walgreens)

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www.BioOhio.com

Looking for Deal Flow...Follow The MoneyThese companies are putting Ohio on the national venture investment map.

Companies receiving private investment since 2004

Looking for Deals?Over 130 investment groups found

great opportunities in Ohio.

Accel PartnersAccipiter Capital ManagementAisling CapitalAkron ArchAngels NetworkAkron Radiology GroupAmpersand VenturesAmphion InnovationsAngiotechAstro ModelingAthenian Ventures Battelle VenturesBeecken Petty O’KeefeBehrman CapitalBIOMEC Biotechnology Value FundBlue Chip Venture Company Blue Point Capital Boston ScientificBridge Fund Bridge Investment FundCamden PartnersCapital Resource PartnersCase Technology Ventures Charter Life Sciences Chrysalis VenturesCID Equity Partners Cincinnati Children’s

Tomorrow Fund CincyTech VenturesClaritas CapitalCleveland Clinic Innovations Cogene VenturesCompuGroupCore Network Cowan Healthcare

Credit Suisse First BostonCrystal VenturesCystic Fibrosis FoundationCuster CapitalDanish Strategic PartnersDeutsche Bank SecuritiesDevelopment Capital VenturesDocorDomain PartnersDraper Triangle Ventures DSM VenturingDW Healthcare PartnersEarly Stage Partners Entrepreneurs Fund ExOxEmisFidelity BiosciencesFirst Fifty Fund Fletcher Spaght VenturesFort Washington Capital

PartnersFoundation Medical Partners Frantz Medical Ventures Fusion Capital FundGlengary VenturesGLIDE FundGreatbatchGreylockHambrecht + QuistHealth FoundationInnovation Alliance FundInnovation Ohio FundInvesco FundsInvestor Growth CapitalIsabella Capital James Richarson & SonsJumpStart Kadima Partners Kearny VentureKirtland Capital

Lennon Trust, TheLife Science CapitalLorain County Community

College FoundationLSKW InvestmentsLuxemburg CapitalMB Venture PartnersMedEquity PartnersMiami Valley Ventures Michael J. Fox FoundationMorgenthaler Ventures MPM BioEquitiesMutual Capital NCIC Capital NCT Ventures New England PartnersNorth Coast AngelsNorwich VenturesNu Vista PartnersOak Investment PartnersOakwood Medical InvestorsOhio Tech Angel Fund OrbiMed AdvisorsOxford BiosciencePA Early Stage PartnersPalo Alto InvestorsPappas VenturesPartisan ManagementPaul CapitalPlatinum Montaur

Life Sciences LLCPlymouth Venture PartnersPolaris Venture PartnersPontifaxPrimus Venture Partners ProseedPsilos GroupQCA First FundQueen City Angels RA Capital Management

Radius VenturesRegional Commercialization

FundReservoir Ventures River AssociatesRiver Cities Capital Funds Riverside Capital RMS Investments RMS ManagementRocket VenturesRoulston VenturesRSL InvestmentsSafeguard ScientificScius (Spire Capital) SG Capital PartnersSouthern Ohio Creates Capital Southwest Michigan

First Life ScienceSterling CapitalSun Bridge PartnersSummit Health Ventures Summit PartnersSunrise Equity PartnersSycamore Partners Talisman Capital TechColumbusTechGenesis FundTeton Capital Thomas, McNerney &

PartnersThomas Weisel Healthcare

Venture PartnerToucan VenturesTL VenturesTriathlon Medical VenturesU.S. Venture PartnersVenture Investors LLCVivo VenturesWelsh CarsonXgen

$985 Million Health Care

Private Equity Investment Since

2004

www.bioenterprise.com www.biostart.org www.ohio.edu/biotech/ www.techcolumbus.org

Ohio has a long history of innovation that includes the remarkable and fundamental contributions of pioneers such as Thomas Edison and the Wright brothers. We have been the centerpiece of American ingenuity for many generations. It is the intent of my administration to continue this legacy by investing in the intellectual, human and financial capital that is needed to fuel an innovative economy.

Ohio is already positioned to excel in the technologies that will propel the future economy. These technologies span advanced energy, advanced materials, instruments-controls-electronics, power and propulsion, and biosciences. Our state is home to more than 1,100 companies focused on bioscience—from innovative start-ups to some of the world’s largest corporations. Each company has a distinct advantage over their competition, because they operate in a state with outstanding academic research capabilities, a fully developed supply chain and public policy programs to help ensure sufficient investment capital to support the continued growth of new biomedical technologies.

Through the Ohio Third Frontier, we are building world-class research programs, nurturing early-stage bioscience companies, and fostering technology development. Of the $893 million in Ohio Third Frontier funds invested between January 2002 and December 2008, 37 percent directly supported bioscience-related research, as well as development and commercialization initiatives. More resources have indirectly supported investments made by pre-seed and venture capital funds into Ohio biomedical companies, which has demonstrated our commitment to maintaining and enhancing the strength of the bioscience industry in Ohio.

Companies across the State of Ohio benefit from a vast network of research organizations and bioscience leaders. Battelle, the Cleveland

Clinic, the Ohio State University Medical School, and other Ohio universities are just a few of our premier research institutions. To help foster continued innovation in bioscience research, the Ohio Research Scholars Program is attracting world-class scholars and researchers who will anchor our centers of excellence and build upon Ohio’s already impressive research capabilities. The Ohio Research Scholars Program provides grants to strengthen and increase the research led by Ohio’s

academic institutions in support of regional economic priorities.

We are also celebrating learning by giving Ohio’s young talent the opportunity to learn from and grow with bioscience companies through initiatives such as the Ohio Third Frontier Internship Program. The program has helped place more than 3,000 students

in enriching educational experiences with more than 700 companies throughout Ohio. Innovation and economic prosperity flourish in centers of science and research, and enhancing our young minds will help strengthen Ohio’s reputation as a center of excellence. I’ve recently introduced an education reform and funding plan that places a priority on fostering creativity and innovation in our schools and teaching students the problem-solving and critical thinking skills required in a 21st Century economy.

To thrive in today’s globally competitive world, standing still is not an option. That is why Ohio is actively investing in the intellectual, human and financial capital that will allow our state to succeed in the future. Whether it’s supporting world-class research, assisting in a new start-up business or nurturing young minds, Ohio is committed to enhancing our state’s assets. Each investment we make today will ensure Ohio’s continued leadership as a home to innovation for many generations to come. AE

Ohio: the Home to Innovation

Message from the Governor of the State of Ohio

Ted Strickland

“”

Ohio is actively investing in the intellectual, human and financial capital that will allow our state to

succeed in the future.

A not-so-hidden gem in the bioscience industry, Ohio boasts over 1,100 bioscience companies, more than 50,000 employees—not including healthcare workers—and $700 million in annual research.

Ohio is a hotbed of bioscience activity in the center of the Midwest. Beyond the number of companies and research institutions, however, there’s something else happening here.

In Ohio, executives can successfully pursue their career as well as their personal aspirations, and entrepreneurs can build global businesses while still making it home in time for dinner with their families.

Balancing ActFour bioscience executives share the secrets of creating and

balancing both career success and personal satisfaction.

Cover Story

Ohio has supported Diagnostic Hybrids in many ways since it was founded and attracted now-President & CEO David Scholl as Director of Research in 1983.

Unlike other locations, Ohio offers access to a community eager to embrace and help new businesses assimilate. Ohio’s culture is marked by collaboration, where even the most influential leaders in the bioscience industry are accessible. The business support infrastructure in Ohio helps companies succeed and grow and not surprisingly, the talent pool of bioscience professionals in Ohio is vast.

With all these benefits, it’s no wonder Ohio ranks among the top states for bioscience industry strength. Here’s what four top executives in the bioscience community have to share about the balanced equation between business opportunities and personal lives they’ve found in Ohio.

work. Kunz is impressed by Ohio’s economic development efforts to bring more bioscience entities to the state. life. A more balanced lifestyle in Ohio provides Kunz time to pursue personal interests like gardening. balance.

For David Scholl, president and CEO of Diagnostic Hybrids, the state

of Ohio has provided a wealth of opportunities for both his business and

his family through every growth stage.

Diagnostic Hybrids innovates, develops, manufactures and markets

cellular and molecular diagnostic kits for various applications in

detecting a wide range of diseases.

Since its founding in 1983, the company has benefited from Ohio’s

programs every step of the way. As a relatively young company, Diagnostic

Hybrids tapped into a state loan in the belief that the product it was

developing would have big implications in the industry. The company’s

confidence paid off, and so did Ohio’s investment. That product now

represents close to 70 percent of the market share in its category.

Several years later, Diagnostic Hybrids collaborated with Ohio University

to secure state funding through Ohio’s Technology Action Fund to bring

a particular scientist and his technology to the university. This effort

ultimately generated nearly 40 jobs at Diagnostic Hybrids. “This was a

great example of collaboration that was a winning project for us, and it’s

returning mightily on the state’s $1 million investment,” Scholl says.

Recently Diagnostic Hybrids was awarded a grant through Ohio’s Third

Frontier Program to work with Case Western Reserve University on

an initiative that they would not have otherwise been able to pursue.

Diagnostic Hybrids is building a 4,000-square-foot facility in Cleveland

to support the collaboration.

Scholl credits Ohio’s tax reform with helping enable Diagnostic Hybrids’

recent expansion by eliminating tax on machinery and equipment as

well as sales outside Ohio.

While his business has matured, so has Scholl’s family. His children

are adults now, but through the years Ohio has afforded the Scholls the

ability to lead a rich, balanced lifestyle.

When his children were little, Scholl’s short commute allowed him to

take time out of the day to coach Little League and still return to the

office to finish his day.

Athens offers many outdoor activities but Scholl says the state’s options

are endless. “With an hour and a half’s trip, we can be sitting at an Ohio

State football game or at a Cincinnati Reds baseball game. Those are

the features that have made the ‘life’ side of it for me,” he says.

Scholl believes living in Ohio has enabled him to lead the lifestyle many

executives crave. “I just wanted to be a successful entrepreneur, and so

the combination of being able to do that within a relatively short period

of time and being able to do family things was a huge plus. I think most

entrepreneurs will recognize what I mean by that,” he concluded.

Barbara KunzPresident, Battelle’s Health & Life Sciences

With renowned hospitals, research centers and manufacturing facilities working together to develop new advances in bioscience, Ohio offers companies in this industry a true culture of collaboration. This community spirit extends beyond the business environment, however, to enrich personal lives as well.

When Barbara Kunz, president of Battelle’s Health & Life Sciences Global Business, first relocated to Columbus to join Battelle in 2007, she was immediately impressed by the synergy and alliances between bioscience entities.

“I have been astounded at the amount of opportunity that exists here in Ohio, in Columbus specifically, to work on bioscience related initiatives with people who are doing world-class research and clinical practice,” Kunz says.

As one of Battelle’s four global businesses, the Health & Life Sciences business focuses on delivering a comprehensive set of R&D services that solve complex challenges focused on the biotechnology, medical device, and pharmaceutical markets and public health sectors.

As a result, it’s critical for the organization to engage with other entities to make advances in the field. Kunz believes one of Ohio’s biggest strengths is the sense of community in this industry. “There’s an open invitation to get involved, and I’ve been impressed by how easy it is to get very influential people around a table to focus on an issue that really will improve lives,” she says.

David Scholl

continued on following page

Kunz finds navigating her life in Ohio much easier than in other places she has lived. She enjoys her easy access to Ohio’s park system where she walks, jogs or bikes. Kunz also takes advantage of Ohio’s many museums and sporting events, and she finds that the time she spends gardening rejuvenates her mind.

“The difference in accessing things that you need in your daily life is tremendously different compared to my experiences living on the East coast,” Kunz observes.

With easier access to both work and play, Kunz is happy to have found a balance in her business and personal life in Ohio.

Ohio’s collaborative community also includes the economic develop-ment sector, focused on bringing more bioscience businesses to the state.

Kunz is excited about Ohio’s economic development activities, which involve the state, the universities and bioscience organizations. The result has been a tremendous amount of growth in the industry.

While numerous initiatives in the bioscience community keep Kunz busy, she has found a similar collaborative environment in her personal endeavors. She is involved in non-profit organizations and leverages Ohio’s university system for personal enrichment and networking with like-minded Ohioans.

continued on following page

Baiju Shah

Ohio’s access to business opportunities and numerous ways to lead a balanced lifestyle convince many bio executives to come to Ohio—and stay here.

Baiju Shah is at the forefront of efforts to ensure fast-growth biomedical companies benefit from all Ohio has to offer. He is the president and CEO of Cleveland-based BioEnterprise, a business formation, recruitment and acceleration initiative designed to grow healthcare companies and commercialize bioscience technologies.

BioEnterprise’s primary focus is on connecting emerging companies in the Cleveland area with clinical institutions, commercial partners and venture capitalists.

Shah praises Ohio’s business support initiatives, including the “phenomenal tax environment,” but says for the companies he assists, the most important business advantages to being in Ohio are access and support.

Ohio’s infrastructure provides companies with connections to the resources they need to grow. Shah believes that the support Ohio provides to help launch businesses is distinctive. “It doesn’t exist in the same breadth in other locations,” he says.

The influential community involved in recruiting businesses to Ohio is unmatched. “Companies considering Ohio as a location are floored by the type of meetings we arrange for them in their preliminary visits,” Shah says.

Once these companies relocate to Ohio, organizations like BioEnterprise and BioOhio ensure the support continues. “We don’t just give them a list of resources. We go the extra step to introduce them to the right people.”

It’s rewarding for Shah to see many entrepreneurs succeed in Ohio. He knows that the business and personal benefits of living in Ohio can’t be found elsewhere.

work. Shah believes the business support Ohio provides the bioscience industry is unmatched in other states. life. Shah and his family enjoy The Cleveland Botanical Gardens and other easily accessible Ohio attractions. balance.

Festival, Ingenuity Arts Festival and local farmers’ markets. What strikes Shah is the easy access to almost anything his family wants to do.

“The ability to be spontaneous is a definite benefit to families,” he says. “We can decide what we want to do that day. In other places you need longer lead times and have to plan way in advance. Here, it’s a very different life and level of flexibility that’s enjoyable.”

Shah is having great success leading BioEnterprise to achieve its goal of helping people around the world live better lives, all the while living a rewarding, balanced life of his own in Ohio.

Although Shah grew up in Ohio, he has lived abroad and in locations across the East coast. He returned to Ohio, though, because he knew he could pursue his passions here.

Not only has he been able to grow BioEnterprise into a successful operation with more than $820 million in funding attracted by the companies they have supported, but he leads an active and balanced personal life as well.

The Shahs enjoy local amenities like the Cleveland Botanical Gardens, NASA Glenn Center and Ohio’s many festivals like the Maple Syrup

Mark Laskovics

Ohio’s strong support of the bioscience industry, robust university system and the ability to lead a balanced life provides an ideal combination for bio companies and their employees to succeed.

As a result, Ohio’s pool of talented workers in the bioscience industry is robust. This talent pool is one of biggest benefits to building a bio business in Ohio, according to Dr. Mark Laskovics, president and chief operating officer of Girindus America, Inc.

Girindus is a technology-driven company offering the pharmaceutical and cosmetic industries comprehensive skills, including process R&D, cGMP-compliant scale-up and manufacture of active ingredients, as well as regulatory support.

“We’re a technology-based company and hire a lot of chemists,” Laskovics says. “Ohio has an amazing university system so the labor pool is very rich in the technology area.” In addition to fueling a population of bioscience professionals, Ohio’s universities offer other opportunities for Girindus.

“The professors at the University of Cincinnati’s Chemistry Department have been especially helpful in putting us in touch with resources we need. We’ve found the interface between the university and our company is very important,” Laskovics adds.

Ohio’s business-friendly environment also has been instrumental in the company’s continued growth. A recent $1.2 million Ohio Third Frontier grant enabled Girindus to build a production facility for a synthesis area for a unique class of compounds. “This allowed us to get into this business at the beginning, and it’s turned out to be a nice source of growing revenue in that area,” he says.

Laskovics credits Hamilton County for helping the company in its early days by making the team aware of training grants and helping them put together a tax abatement package. “Any time I’ve needed anything, the state, the county and the city of Reading have been very helpful in moving us along,” he says.

work. A recent Ohio Third Frontier grant has enabled Girindus to build a new production facility for a unique class of compounds. life. In Ohio, Laskovics enjoys a variety of leisure activities including rebuilding a 1972 VW Beetle. balance.

continued on following page

Laskovics believes part of the reason Ohio’s talent pool is so rich is that people want to stay here. Ohio’s reasonable cost of living and easy lifestyle attract people and keep them. “The convenience of living in a state where major things like entertainment, professional sports, your work and your home are accessible and affordable makes it pretty easy to live a full life,” he says.

This more relaxed environment allows Laskovics to enjoy a range of activities in his free time, from biking the trails in the Loveland area to rebuilding his wife’s beloved ’72 Volkswagen Beetle from scratch.

After living all over the world, Laskovics and his family enjoy Ohio most for its extensive business opportunities and opportunity for a balanced lifestyle.

In every region of Ohio, executives express the same sentiment: Ohio is an ideal location to build and grow a bioscience business.

With a state dedicated to supporting the industry, a collaborative professional community, a robust economic development effort and a vast pool of bioscience talent fed by Ohio’s outstanding university system, the success of the state’s bioscience industry is growing.

Ohio delivers on its promise of a business-friendly environment combined with a relaxed, affordable and accessible place to live. The state continues to emerge as a bioscience force. Those lucky enough to call Ohio home are finding its work-life balance a winning equation. AE

Special appreciation to the Ohio Business Development Coalition,

Paul Werth Associates, and George C. Anderson Photography for their

assistance on this feature.

A report published by BioOhio in January reveals the importance of bioscience and health care to Ohio’s economic resurgence.

The overall economic impact of Ohio-based bioscience is $148.2 billion, representing 15.7% of Ohio’s total economic output. Bioscience also directly and indirectly generates 1.4 million jobs in Ohio.

BioOhio’s comprehensive definition of the bioscience industry includes three integrated sectors: commercial bioscience entities, hospitals and healthcare providers, and medical colleges. The commercial bioscience sector alone accounts for a $33.8 billion overall economic impact and 50,100 direct jobs, up from $27.3 billion and 48,485 direct jobs in 2006. When indirect and induced jobs are factored, the commercial bioscience employment impact jumps to 135,136.

Analysis of commercial bioscience industry segments revealed research and development as the top employment sector (12,415), while agricultural biotechnology contributed the largest direct economic impact ($10.7 billion). Medical device and equipment manufacturers directly employ 9,757 Ohioans.

Bioscience, medical technology, and research organizations continue to thrive in Ohio. As of December 2008, 1,141 bioscience-related

Ohio bioscience & healthcare industry

impact:

entities were operating in the state. While company launches and relocations explain some of the 39.5% increase since 2007 (818), the expansion is mostly attributable to a more thorough census of organizations. For instance, 636 Ohio companies are FDA-certified to manufacture medical devices and 88 facilities in the state are FDA-certified to manufacture pharmaceuticals. BioOhio determined that nearly half of these companies are actively involved in the value chain of at least one commercial bioscience product.

Bioscience-related entities include those involved in research, development, and marketing of pharmaceuticals, diagnostics, bioinformatics, medical devices, medical equipment, biotechnology products, and health-related products.

Half of Ohio’s bioscience entities (574) are located in northeast Ohio, which includes the Cleveland area, Akron, Canton, and Youngstown. Southwest Ohio, anchored by Cincinnati, and central Ohio, which includes the capital Columbus, are each home to about 200 of the state’s bioscience-related entities.

$148 billion

“The Ohio Bioscience Growth Report clearly shows that Ohio continues to make great strides in the biosciences, and our bioscience industry is on the fast track creating jobs of the future for Ohioans,” said Lieutenant Governor Lee Fisher. “We are once again rated as one of the nation’s top technological innovators, recognition of the wide diversity of world-class research institutions, medical centers, and visionary companies that call Ohio home.”

From 2004 to 2007, an average of 66 new companies began operation in Ohio each year. In 2007, Ohio welcomed 60 bioscience organizations by way of new company launches or companies establishing their first facility in the state, including AcelleRX Therapeutics (Cleveland), Akebia Therapeutics (Cincinnati), Freedom Meditech (Cleveland/Toledo), and Traycer Diagnostic Systems (Columbus).

From 2005 through 2007, 100 bioscience-related companies either expanded operations

or announced new facilities in Ohio; 36 projects occurred in 2007. Noteworthy 2007 examples include: Philips Medical expanding R&D space for their imaging systems in Highland Heights; growing CROs like Kendle International in Cincinnati, Charles River Labs in Spencerville, and WIL Research in Ashland; Ben Venue Labs’ new 244,000 square foot facility; and Cardinal Health breaking ground on a $50 million, 250,000 square foot facility at its Dublin headquarters.

“The current global economic crisis is affecting every industry sector,” said BioOhio President & CEO Tony Dennis, “but a solid infrastructure and sustained growth will help Ohio’s bioscience industry weather the storm and position it for explosive growth when the economy recovers.”

Commenting on the strength of agricultural biotechnology in the state, Ohio State’s Vice President for Agricultural Administration Bobby Moser said, “Agbioscience is a key driver of economic progress and technology-based economic development for the U.S. and Ohio. Because of a strong R&D and outreach infrastructure together with the support of multiple stakeholders across the state, Ohio has moved into an early leadership position in this area.”

The report also reveals that funding for research, company formation, and company

expansion continued to rise in Ohio. Overall, nearly $2.5 billion were invested across Ohio to accelerate bioscience growth in 2007, almost doubling the 2006 total. The sources of funding include venture capital, angel funds, IPOs, SBIR/STTR, state biomedical grants, acquisitions, and NSF and NIH grants.

The largest portion of the 2007 increase was “exit” related, as six acquisitions and two IPOs generated more than $1 billion, 44% of total investment in Ohio bioscience ventures. Universal American Financial Corp’s purchase of MemberHealth for $630 million represented the largest investment in 2007.

For the complete report and appendix, visit www.bioohio.com. AE

This state goes to market

THE WORLD DISCOVERS THAT BIO IN OHIO IS LIKE MONEY IN THE BANK

OHIO:

Considering Ohio provided the formative thinking grounds of Thomas Edison and two Wright brothers, the state boasts formidable roots in innovation and entrepreneurialism. And with 5 Ohio institutions among the top 100 NIH funding recipients, research and development activity employs thousands in Ohio and improves lives around the world.

It’s true that innovation, entrepreneurs, and R&D help define a state or region as a bioscience “cluster,” but too often the marketplace is forgotten in the definition. As the bioscience industry matures and evolves

}globally, Ohio’s unique value proposition has emerged: Ohio is where more and more pharmaceutical, medical device, and diagnostics companies come to prototype, test, manufacture, package, distribute, and market their products. Ohio goes to market.

Nearly 1,200 bioscience-related entities operate in Ohio, concentrated in market sectors such as pharmaceuticals and diagnostics, medical devices and equipment, agbio and imaging. This diverse industry presence has established robust supply chains and industry assets for expanding in-state

companies as well as those new to the state, increasing efficiency and decreasing costs.

Contract research organizations, or CROs, offer their clients a wide range of services to aid in the pharma and medical device development process. And CROs are thriving in Ohio. Battelle in Columbus and Kendle in Cincinnati may be among the most recognized, but the pharmaceutical industry’s trend toward outsourcing also has been a boon to others—Charles River Laboratories’ in Spencerville, Medpace in Cincinnati, and WIL Research in Ashland, just to name a few. In Toledo, NAMSA is the global leader in guiding medical device manufacturers along the product testing and regulatory approval paths.

Ohio CMOs (contract manufacturing organizations) are helping bioscience companies go to market too. Ohio’s rich manufacturing history and qualified workforce have helped give birth to hundreds of CMOs with experience ranging from therapeutics to

devices. In Ohio, 636 companies are FDA certified to manufacture

medical devices and 88 facilities are FDA certified to produce pharmaceuticals.

In Strongsville, near Cleveland, Sparton Medical Systems, Inc. is an FDA registered and ISO 13485 contract design, development, and manufacturing company specializing in complex laboratory instrumentation and electromechanical point-of-care medical devices for original equipment manufacturers (OEMs) and emerging companies. Medical product manufacturers from around the world ask Sparton Medical Systems for help when they’re ready to go to market.

Veridex, a Johnson & Johnson company, was one such company. Sparton Medical produces the medical equipment driving Veridex’s CellSearch System, which measures circulating tumor cells to predict progression-free survival and overall survival in patients with metastatic breast, colorectal or prostate cancer. And the market is pleased. CellSearch was ranked as the top medical innovation for 2009 at Cleveland Clinic’s Medical Innovation Summit.

“The value of contract development and manufacturing companies is their ability to repeatedly offer a well balanced approach to not only reduce timing and costs but also limit the risks involved with launching highly regulated medical products,” said Kevin Webb, business development manager at Sparton Medical.

On the pharma technology side, Eurand partners with pharmaceutical and biotech companies, collaborating with them to bring a product to market or extend the lifecycle of a product in the market through value-

added features. With key U.S. operations in Vandalia, Ohio, Eurand has a strong track record of developing products using its innovative drug formulation technologies. It

has had four partnered products approved by the FDA since 2001 and has a pipeline of product candidates in development for itself and collaboration partners.

“We manufacture all of the products that we develop for ourselves and our collaboration partners,” said Eurand Associate Director of Marketing Erin O’Brien. “And our manufacturing processes and units are integrated with our R&D facilities, which enables taking products in

development through to scale-up and full-scale commercialization.”

BioOhio, the state’s bioscience membership and development organization, has embarked on a project with the Global Cardiovascular Innovation Center to catalog and link Ohio’s vast bioscience supply chain participants.

“Once vetted, we expect to find the number of supply chain resources in Ohio exceeding the number of market-facing companies or ‘tier one’ companies,” commented BioOhio Business Development Director Scott Osborne, “both medical device and pharmaceutical.”

BioOhio and the GCIC are delineating Ohio’s biomedical supply chain for two reasons: 1) market-facing companies will find

{ }“We expect to find the number of supply chain resources in Ohio exceeding the number of market-

facing companies or ‘tier one’ companies.”

A capsule filling machine at Eurand’s U.S. manufacturingfacility in Vandalia.

continued on following page

Sparton Medical Systemsoperations in Strongsville.

efficiencies and effectiveness through close proximity to their suppliers, and 2) suppliers will discover the advantage of being close to

Scott Osborne, BioOhio

key customers. Plans are already underway for a searchable web directory and an annual event to help suppliers and market-facing companies connect.

“Beyond the web tools and an annual event,” Osborne added, “we want companies inside and outside Ohio to know that they can come to us with supply chain questions whenever the need arises.”

Biomedical companies not only enjoy leveraging Ohio’s production assets and supply chain strengths, they realize the benefit of being within 600 miles of 60% of the U.S. population and a world-class transportation

infrastructure to get their product wherever it needs to go, allowing for just-in-time delivery and lower shipping costs.

These advantages weren’t lost on MP Biomedicals, which manufactures and markets more than 55,000 products and is one of the only companies in the industry to offer a comprehensive line of life science, fine chemical and diagnostic products. Although its headquarters are in southern California, its largest distribution center is in Solon, Ohio, a Cleveland suburb.

Dublin, Ohio-based Cardinal Health gets billions of dollars of healthcare products to

market, literally. Cardinal Health is a $91 billion global manufacturer and distributor of medical and surgical supplies and technologies, securing the no. 19 spot in the Fortune 500. With a worldwide distribution network, Cardinal’s healthcare supply chain divisions—pharmaceutical and medical—generate $84 billion in revenue.

And even the best medical products require branding expertise and marketing creativity to ensure that once they get to market, they stay there. Ohio has that covered too.

Headquartered in Columbus, GSW Worldwide is one of the largest healthcare advertising agencies in the world with offices in 13 major global markets. GSW is a key business unit of inVentiv Health, whose client roster is comprised of more than 350 leading pharma, bioscience, and healthcare payor companies, including the top 20 global pharmaceutical manufacturers. Other Ohio-based inVentiv Health divisions include Stonefly Communications, Blue Diesel, and the Navicor Group, with services ranging from product launch and branding to interactive marketing and strategic communications.

Beyond inVentiv’s significant presence, several other Ohio firms specialize in bioscience and healthcare marketing communications, including OffWhite Salter in Marietta, Ohio.

Advertising is on BioOhio’s mind as well.

“We were blown away by the depth and breadth of Ohio’s biomedical supply chain,” admitted Osborne, “now it’s on us to make sure we’re not the only ones who know it.” AE

Ohio is within 600 miles of 60 percent of the U.S. population.

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For more than two decades, BioOhio has accelerated the growth of bioscience business, research, and workforce development in all corners of Ohio. But without the financial and inspirational support provided by its founding members, BioOhio certainly would have encountered more speed bumps along the way.

But just because they support BioOhio isn’t why we’re giving them some ink. They are doing very cool things that are accelerating “Bio in Ohio” while making our world a better place to live.

BioOhio’s Elite EightOrganization’s Founding Members

influence and impact Ohio’s bioscience industry

University of CincinnatiFaster diagnosis and more immediate test results are the desires of many patients and physicians. University of Cincinnati engineer Chong Ahn, Ph.D., has made it his mission to meet those needs. He’s developing point-of-care clinical diagnostic technologies to quickly analyze a person’s condition and status, focusing specifically on the quantitative analysis of cardiac biomarkers.

Ahn’s “smart” polymer lab-on-a-chip diagnostic technology uses a small blood sample to provide detailed information on a patient’s condition within 5 to 10 minutes—leading to faster diagnosis and treatment in the doctor’s office or the emergency department. The development by this electrical and biomedical engineer has led to the formation of a start-up company called Siloam Biosciences, Inc.

Ahn, director of UC’s MicroSystem and BioMEMS Lab and founder of Siloam, has already filed for 10 patents related to his technology and has received $2 million from federal funding sources and $5 million from another investor. In November 2008 he opened an 8,000 square-foot manufacturing facility in Cincinnati’s Forest Park neighborhood, with hopes of launching his product in 2010.

Scientific start-up companies often result in a number of highly skilled jobs. Siloam Biosciences is no exception. It will start with a staff of 15, with hope of growing to employ 50 people.

Ahn’s innovative and entrepreneurial spirit is mirrored across the University of Cincinnati by faculty experts in a wide range of disciplines—from medicine to design to the life and social sciences. And it’s that same entrepreneurial spirit that led to a 70 percent increase in industry support to the university in 2008.

University of Cincinnati investigators are clearly thinking outside the box as they develop projects and seek funding sources. They are forming partnerships, licensing technologies, starting companies and creating jobs right here in Ohio—all to enhance the economy and speed the translation of research results.

Ohio UniversityIn fiscal year 2008, Ohio University reported its highest royalty income to date—$5.9 million. Ohio University has been a top generator of licensing revenue among public colleges and universities in Ohio.

Much of that income stems from a license for a 1988 research discovery at the Edison Biotechnology Institute by Ohio Eminent Scholar John Kopchick. The work led to the development of a drug for people with acromegaly, a form of gigantism that creates excessive growth of bones and organs in adults. The drug, which achieved FDA approval in 2003, is now produced and marketed by Pfizer.

OU is reinvesting that revenue in new innovations in biotechnology, clean energy and transportation. Their patent filings more than doubled from 15 in 2007 to 32 in 2008. Their small business incubator, the Innovation Center, contributed $15 million in labor

income and 386 jobs to the region in 2007—its biggest economic impact to date. Half of those start-ups stemmed from Ohio University research.

Ohio University’s success at technology transfer has been recognized by the national media. Last fall Forbes magazine ranked Ohio University fourth in the country for the amount of license revenue it generates

in relation to its research funding based on 2006 data from the Association of University Technology Managers (AUTM). The university had a 13 percent return on investment, according to the study.

Procter & Gamble Health CareThree billion times a day, P&G brands touch the lives of people around the world. P&G has the #1 or #2 product in over 20 different consumer categories and 99 percent of U.S. households purchased a P&G product in 2008. Its $23 billion brands are leaders in their respective categories and platforms for innovation.

Strategic Focus. P&G’s Health Care businesses deliver more than $14 billion in annual global sales from a portfolio of trusted consumer and pharmaceutical brands. P&G Health Care has successfully developed and marketed a wide range of products including: Actonel®,Asacol®, Align®, Always®, Clearblue®, Crest®, Didronel®, Enablex®,Metamucil®, Oral B®, Pepto-Bismol®, Prilosec OTC®, Pur®, Tampax®,and Vicks®.

P&G Health Care is focused on areas in which they have proven expertise—respiratory health, digestive wellness, and water. It’s also selectively seeking innovation opportunities in areas of strategic

John KopchickPhoto Credit: Rick Fatica

interest to other P&G businesses, like hair growth and skin aging. P&G concentrates on areas where consumers play a particularly active role in managing their health and well-being. This strategic focus and a targeted portfolio help ensure each development project and marketed product gets the attention it deserves.

Track Record of Breakthrough Science & Collaborative Partnerships. More than 700 scientists and technical employees work at 7 global technical centers with an unprecedented commitment to innovation in the broadest sense. Their collective scientific efforts have resulted in more than 3,000 active health care patents. P&G Health Care also has a long-standing record of win-win partnerships, from small university-based labs to large multi-national companies.

Delighting the Consumer. In today’s evolving healthcare marketplace, efficacy, safety and compliance are no longer enough. It’s now a matter of truly delighting the better informed and more engaged healthcare consumers. P&G’s 175-year heritage of deeply understanding the world’s consumers uniquely enables them to transform innovative technologies into delightful product experiences.

You and P&G… think of the possibilities.

To learn more, visit www.pgconnectdevelop.com or contact Rimma Driscoll at 513-622-3649 or driscoll.rs@pg.com.

Case Western Reserve UniversityJumpStart Inc., the Northeast Ohio organization that accelerates the progress of early-stage businesses, and Case Technology Ventures (CTV), a pre-seed stage venture capital and technology validation fund at Case Western Reserve University, recently announced an investment commitment of $375,000 in Neuros Medical, Inc., a Cleveland company commercializing neurostimulation technology developed at the university.

Neuros’ technology was created by Drs. Kevin Kilgore and Niloy Bhadra of Case Western Reserve University’s Department of Biomedical Engineering and MetroHealth Medical Center, in partnership with the Cleveland FES (Functional Electrical Stimulation)

Center. It is referred to as “Nerve Block” and delivers high-frequency stimulation to sensory nerves in the peripheral nervous system to block chronic pain.

The system consists of an electrode placed around a peripheral nerve and powered by a pace-maker size generator that is implanted into the chest cavity, abdomen, or lower leg. Because the generator operates in a much higher frequency range than conventional neurostimulation devices, Neuros’ technology is able to stop nerve activity to block pain completely, as opposed to simply masking the pain signal.

The company’s initial target market is patients with chronic pain, specifically residual limb pain, a common occurrence after undergoing limb amputation due to vascular disease, circulatory issues, diabetes, cancer or trauma-related events. The company’s chief executive, Jon Snyder, is a CEO-in-residence at BioEnterprise and venture partner at Arboretum Ventures with over 20 years of experience in biomedical and healthcare sales, marketing, and operations.

Case’s Vice President for Technology Management Dr. Joseph Jankowski commented, “It’s satisfying to see the intimate collaboration among JumpStart, BioEnterprise and Case Western Reserve University’s researchers and commercialization leadership so quickly lead to this venture that portends to impact the region in terms of health care and financial returns.”

This is JumpStart’s 49th investment in its 38th

company and its 4th direct co-investment with Case’s CTV Fund.

Ohio State UniversityThe Ohio State University stands ready to lead the new “Innovation Revolution.”

Teams of researchers throughout the university provide unique skills to an array of near- and long-term biological science needs.

The OSU College of Food, Agricultural, and Environmental Sciences teams transform food, agricultural crops, and other organic matter into health-promoting products as well as alternative fuel sources.

At the cellular level, the Medical Center and Health Science Colleges’ teams are unlocking humankind’s most fundamental codes and revolutionizing health care delivery. Ohio State physicians and researchers are at the forefront of personalized health care, using biomarkers, or genetics, to target treatment outcomes based upon an individual’s propensity to respond to selected protocols. The Center for Personalized Health Care at Ohio State’s Medical Center, founded in 2005, fosters incorporation of personalized health care initiatives into health maintenance and clinical care across the nation and the world.

The Ohio State Comprehensive Cancer Center, one of 40 National Cancer Institute (NCI) designated centers, and the James Cancer Hospital and Solove Research Institute, rank among the top 20 cancer hospitals in the nation. The work of these entities has been enhanced with the award of an NCI Knowledge Center contract, making Ohio State part of NCI’s Cancer Biomedical Informatics Grid program. At Ohio State, NCI funding for research has more than quadrupled over the last 10 years and partnerships have been forged with companies such as Pfizer, Genentech, and Amgen.

The foundational sciences are readily embraced by Ohio State and its public and private partners—from

genetic structures to foods that feed, power, and protect the health of the world. In fact, Ohio State’s extensive partnerships make the university second only to Duke University in industry-sponsored research. The many ongoing research efforts at Ohio State promise to advance innovation and fuel economic growth for Ohio and beyond.

Cleveland Clinic Cleveland Clinic will begin an expansion of its reference laboratory, a project that will help improve medical laboratory testing capabilities for its patients and facilities throughout northeast Ohio. The project is expected to create 500 new jobs within the next five years.

The construction of a new laboratory facility will allow for growth of the Pathology and Laboratory Medicine Institute at Cleveland Clinic,

The Ohio State University campus.

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which tests tissues and other samples to help the medical community detect, diagnose and treat diseases.

The 100,000-square-foot laboratory will be built on Cleveland Clinic’s Main Campus. The Clinic is working with architects and engineers on the design for the building, which will include administrative space.

“This expansion will help enhance patient care by allowing us to provide more sophisticated testing with a faster turnaround time on results,” said Kandice Kottke-Marchant, M.D., Ph.D, chair of the Pathology and Laboratory Medicine Institute. “It will also open up new research and test development opportunities in molecular and DNA testing.”

The Institute has a staff of nearly 800, including 59 pathologists. It annually generates nearly 10 million laboratory test results, interpretations and diagnostic consultations.

Medical testing is currently performed at Cleveland Clinic’s Laboratory Medicine building. Once the new building opens, testing will be performed at both sites.

The Pathology and Laboratory Medicine Institute contains the Department of Anatomic Pathology, the Department of Clinical Pathology and the new Department of Molecular Pathology. It also houses the academic Department of Pathology of the Cleveland Clinic Lerner College of Medicine.

BattelleBattelle, the world’s largest non-profit, independent research and development organization, generates innovative products and solutions through its four global businesses: Health and Life Sciences, Energy Technology, National Security, and Laboratory Management. By applying its full scope of science and technology (S&T) resources, Battelle delivers comprehensive research and development services, laboratory management and technology commercialization to support private industry and government agencies worldwide tasked with solving the most critical human health issues. Battelle’s solutions: improve the effectiveness of public health programs; enhance understanding of how the environment and other risk factors affect human health; and accelerate the development of safe and effective therapeutics, vaccines, diagnostics and medical devices.

Battelle’s Health and Life Sciences Global Business continues to invest in laboratories, equipment, S&T, and scientific expertise to ensure the capacity and capability to deliver the comprehensive services required by clients in the following areas:

Safety and Efficacy. Battelle’s commitment to regulatory compliance and ability to leverage unmatched scientific expertise, proprietary technology and world class facilities enables the advancement of therapeutics, diagnostics, vaccines, technology enhancement and crop science. Battelle also offers non-clinical services that encompass drug safety and efficacy, pharmacology, pathology, analytical and bioanalytical chemistry, and biomarker discovery, development and validation.

Battelle’s range of services is performed in Good Laboratory Practice (GLP) environments, which also foster the development of in-vitro technologies, in silico modeling, and bioinformatics.

Public Health and Environmental Health Research and Evaluation. Battelle’s public health, environmental, and social scientists deliver quality solutions to the nation’s most challenging health problems. Optimal study design and analysis methodology developed by Battelle and deployed using state-of-the-art software technology are the core of its research services, providing clients with reliable information to support their decision-making.

Medical Device Solutions. Battelle’s disciplined approach to systems engineering, programmatic risk management, material science and detailed design reduces development risk and minimizes cost and time to market. The engineering and life science expertise enables clients to transform clinical needs into market-leading medical devices in multiple therapeutic areas.

To learn more about Battelle, please visit www.battelle.org.

University HospitalsUniversity Hospitals Case Medical Center (UHCMC), in affiliation with Case Western Reserve University (CWRU), operates one of the largest biomedical research centers in the United States. This longstanding affiliation was renewed in 2006 under a 50-year affiliation agreement

The Lerner Tower at University Hospitals in Cleveland.

to leverage their individual and mutual strengths in research, education and clinical care. Recent developments include:

Diaphragmatic Pacing System. UHCMC is the premier diaphragmatic pacing center in the world for quadriplegics and amyotrophic lateral sclerosis (ALS) sufferers. The pacing device used in this program was developed at CWRU and UHCMC in the 1990s and was approved for use in 2001. The late actor Christopher Reeve, who had suffered a spinal cord injury, became one of the first subjects to have the system implanted. The technology is being commercialized under a license agreement with Cleveland-based Synapse Biomedical.

3-D Map of the Heart. UHCMC is the site for an ongoing clinical study utilizing technology developed at UHCMC and CWRU to non-invasively image electrical activity on the surface of the heart. Patented algorithms are used to combine electrical data and chest CT scans, generating 3-D maps of the heart’s electrical activity. The system provides more information than electrocardiograms, is non-invasive and has wide application in the diagnosis of electrical abnormalities during various cardiac diseases. Cleveland’s CardioInsight Technologies is developing the technology.

Reverse Cancer Cell Resistance to Chemotherapy. UHCMC is the only site in the U.S. to use reverse cancer cell resistance to chemotherapy. Supported by Tracon Pharmaceuticals, it is a “first in humans” clinical safety study involving a small molecule inhibitor (methoxyamine) aimed at base excision repair that is intended to reverse cancer cell resistance to chemotherapy. This research was conducted as part of the UHCMC Ireland Cancer Center Therapeutics Development Program.

University Hospitals has been serving patients for more than 140 years. It has embarked on its Vision 2010 strategic plan which calls for more than $1 billion in investments for the system. The plan reaffirms a strong commitment to the University Hospitals Case Medical Center campus with new facilities and the expansion of services, along with new construction and enhancements to UH suburban ambulatory centers. AE

Unlike most states (and even many countries), Ohio doesn’t rely on a single city or region to carry its bioscience flag. Just as the buckeye tree is known for its distinctive compound leaf made of five leaflets, Ohio boasts five regions with distinct, vibrant bioscience business and research activity.

Let’s embark on a brief guided tour of the accomplishments, partnerships, and unique assets found throughout the Buckeye state.

Northeast OhioWe start our tour in the active northeast corner of the state. During the past year alone, northeast Ohio attracted ten biomedical companies from other states and foreign countries. A busy region, indeed.

In January, 2009, Proxy Biomedical of Ireland opened its US headquarters in Cleveland. The Cleveland Proxy Biomedical facility designs, develops, manufactures and markets biomaterials for the repair and regeneration of tissue for advanced surgical procedures. The company develops proprietary implantable meshes and engineered bio-materials for surgical applications, tissue regeneration and tissue repair. Proxy also offers a disposable, easy-to-use suture grasper needle for laparoscopic surgery.

A”Road Trip” around Ohio reveals common purpose, unique assets

ne State Robus5

Proxy plans to invest $1.5 million in capital and $1.8 million in annual payroll in Cleveland. Proxy Biomedical considered other life science regions for this expansion, but ultimately chose northeast Ohio. The main reasons: 1) the region’s leading healthcare and educational institutions—such as Cleveland Clinic, University Hospitals, Case Western Reserve University, Cleveland State University and more than 40 others, 2) the state of Ohio’s strong commitment to the biomedical industry, and 3) the services of supporting organizations such as BioEnterprise and TeamNEO.

“Access to partners, customers and workforce is critical to our success,” says Peter Gingras, Proxy Biomedical’s CEO. “By establishing operations in northeast Ohio, we take advantage of critical product development support and clinical trials that will enable our accelerated growth and service to the world’s largest market, the United States.” Proxy has already developed strategic partnerships with Case Western Reserve University, Cleveland Clinic, the Global Cardiovascular Innovation Center (GCIC) as well as a Dayton, Ohio firm.

And while a popular trend for retirees from Ohio is to look southward, a growing bioscience company in Florida perhaps is signaling another trend as it instead looks north for the next phase of its life. With assistance from Team NEO, BioEnterprise, and the state of Ohio, ViewRay relocated its headquarters from Gainesville to Cleveland. The move was propelled after a group of key investors offered ViewRay a $25 million investment to move from Gainesville to any leading center of bioscience innovation.Northeast Ohio clearly fit the bill.

ViewRay is developing image-guided radiation therapy technologies in a 41,000-square-foot Cleveland facility and plans to create 100 jobs within three years.

www.bioenterprise.com www.teamNEO.org

Northwest OhioLeave Northeast Ohio and follow the Lake Erie shoreline about 100 miles to the west, past the Lake Erie islands, and you’ll find more evidence of bioscience growth. Northwest Ohio’s Regional Growth Partnership (RGP),through the Third Frontier’s ESP program (Rocket Ventures) and northwest Ohio’s Edison Incubator (Launch), has developed a

Bioscience Roadtrip

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st Bioscience Regions

Located in the heart of Dublin, Ohio’s Innovation Park, the 40,000-square-foot Dublin Entrepreneurial Center is prime space for viable concepts to become tomorrow’s industry-leading businesses

From left: Aniruddha Puntambekar, Ph.D., a senior scientist, and Chong Ahn, Ph.D., CEO of Siloam, a Cincinnati-based bioscience company.

Photo courtesy of BIOSTART.

The 36,000 square-foot Innovation Center is the home of Ohio University’s technology business incubator. The Innovation Center Program provides incubation services to biotechnology companies, IT companies, and companies that provide services to these two industry sectors.

Proxy Biomedical Limited, a Galway, Ireland-based developer of

next generation medical products that use proprietary biomaterials

technology, has recently established U.S. headquarters in Cleveland.

Rocket Ventures serves the entrepreneurial community in the 18-county Northwest Ohio region with a new facility and a new “BioCommercialization” approach.

Comprehensive Commercialization Process (CCP). The RGP’s partnership with the University of Toledo supplies critical executive talent to the many novel technologies being developed at the region’s universities and hospitals.

A unique feature of this program is the flexibility offered to inventors. Suppose the inventor needs to continue to devote time to research or clinical work, but also wishes to form a start-up company. The RGP ensures that critical support services are made available to the startup company—including an interim management team. CCP is now available for use by all local bioscience institutions in northwest Ohio.

The RGP believes that the key to the bio-science sector’s success is the optimization of the entire industry’s needs, not just those of the individual institutions. The RGP works to serve as the unbiased connection to all of bioscience resources in northwest Ohio. To meet this goal, the RGP created an initiative called BioCommercialization to focus on the needs of northwest Ohio’s growing bioscience industry.

This effort aggregates the highly specialized intellectual, physical and financial resources required for new and established bioscience companies. RGP is assembling advisory boards made up of local industry leaders to guide BioCommercialization activities.

The first year of operations for the RGP Technology Programs was 2008, during which Rocket Ventures and Launch initiated

or completed establishment of 15 companies in the bioscience sector. Nearing the end of their development stage are a dozen new technologies, including commercialization of biologics, pharmaceuticals, medical devices,

HIT and agbio.

In addition to managed companies, RGP is assisting several others in the bioscience sector and building critical infrastructure.

BioOhio’s most recent Bioscience Growth Report reported 75 Bioscience companies in northwest Ohio. RGP expects that number to grow by 15 to 25 percent by 2009.

www.rgp.org

Southwest OhioGreater Cincinnati also stands poised for strong growth in the life science industry. Spurring the activity are increased federal research dollars, rising venture capital activity and a growing community of local bioscience companies.

Leading the way are two major research institutions in southwest Ohio that are attracting significant funding. The University of Cincinnati and Cincinnati Children’s Hospital Medical Center have combined total research expenditures of $353 million.

In addition to leadership from education and healthcare institutions, a vibrant commercial business sector is playing a key role.

The region is home to more than 220 businesses involved in the research, testing and production of pharmaceutical, medical and agricultural products. Among the successful headquarters companies are EthiconEndo-Surgery, Meridian Bioscience, Kendle International, AtriCure and Medpace. Also, clinical research is growing

much faster in southwest Ohio than in the U.S. as a whole.

Besides homegrown companies, southwest Ohio also is successfully recruiting new companies, such as San Diego-based AmylinPharmaceuticals. Site Selection magazine recently highlighted Amylin and five other Southwest Ohio companies—Alkermes, Eurand, Cognis, Prasco Laboratories and Patheon—in a group of the fastest growing in Ohio.

The startup scene is lively as well. Venture capital firms have more than $1 billion under management and include a focus on bioscience companies. Supported by a growing base of seed-stage capital, at least six bioscience companies have launched in recent years. Here are two that are developing technology licensed from local institutions and companies.

Akebia Therapeutics specializes in the discovery and development of breakthrough small molecules focused on anemia and peripheral artery disease. Novartis was among its investors in a recent Series A financing

round of $15.1 million. Akebia in-licensed its initial drug development programs from Cincinnati-based Procter & Gamble.

And Siloam Bioscience was founded based on technology

developed at the UC College of Engineering. The company develops affordable solutions for point-of-care testing in emergencies using smart,

disposable “lab-on-a-chips” on low-cost plastic platforms.

Siloam is anticipating market entry within three years and expects

to grow from eight to 20 jobs.

New incubator space in southwest Ohio.

All of this activity—from research institutions and big businesses to startups and a healthy funding climate—has led economic development officials in southwest Ohio to identify a bioscience “cluster” that is creating fertile ground on which companies can launch, locate, expand and thrive.

www.cincytechusa.com

Southeast OhioWhen Dave Scholl moved to Athens County in 1977 as a young graduate student, he couldn’t have imagined getting a ringside seat to the birth of the biotech industry. And he likely couldn’t have imagined he would soon preside over the explosive growth of an Inc. 500 company—without ever leaving the county.

As a Ph.D. candidate in microbiology at Ohio University, Dave worked with chemist-turned-nuclear physics pioneer Wilfred Konneker and other OU professors on the team that developed the first transgenic animal. The team’s recombination technique started a windfall of opportunities for DiagnosticHybrids, Inc., now the world’s largest cell culture provider, for which Dave is president and CEO.

“Athens proved to be fertile ground for us,” Scholl said.

As proof of Athens County’s business-friendly atmosphere, the Athens County Economic Development Council recently launched www.businessremixed.com, a web site featuring biotech success stories like Scholl’s, and highlighting the lifestyle, culture and benefits of living and working in southeastern Ohio.

Geoff Greenfield, co-founder of Athens-based Third Sun Solar & Wind Power Ltd., now one of the Midwest’s leading solar contractors, lists just a few of the reasons he loves living in Athens County: “Music, culture, food, international students, like-minded people, ecological consciousness. Plus it’s a safe, close-knit community,” he added.

Besides acres of woods, waterways and wildlife, Athens County boasts a vibrant arts scene as well as unique shopping opportunities—everything from funky uptown shops to the Farmers’ Market, which features organic, locally grown vegetables.

The community and university support that sustains Athens’ distinctive nature is what enables Diagnostic Hybrids to thrive, Scholl said.

Just as Diagnostic Hybrids won national acclaim for its astonishing 663% growth rate from 2000 to 2003, Scholl predicts Athens County will follow in its footsteps.

“Athens County has an unbeatable work ethic. This was once all coal mining territory. Let’s face it, if you’re willing to go two miles down into the ground to work, you’ve got the tenacity and commitment that will benefit any employer,” Scholl said.

To read more about Athens County’s innovative character, visit www.businessremixed.com.

Central OhioFinally, we circle in on the center of the state in the region dominated by the state’s capital, Columbus, and its many surrounding communities that are bubbling with bioscience growth.

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While Ohio’s largest company, Cardinal Health, opened its doors to a 250,000-square-foot expansion of its corporate headquarters in Dublin, Ohio, this spring, another opening was taking place in the Emerald City. The Dublin Entrepreneurial Center (DEC) invited guests to experience the synergy of a new facility designed to spur start-up businesses into becoming the next industry-leading corporation.

After all, it was in Dublin that Bob Walter began his entrepreneurial venture that would become the $91-billion healthcare products and services company known as Cardinal Health.

The DEC was created to support those

next-generation entrepreneurs by providing

a physical space that also provides access

to both entrepreneurial services and capital

from a variety of resources, including

TechColumbus. Dublin’s efforts are not going

unnoticed. In March, BusinessWeek magazine

named Dublin the best small city in Ohio for

start-ups.

The DEC is located in the core of Innovation

Park, a 1,300-acre technology park currently

under development. The Park is adjacent

to U.S. 33 and state Route 161, where the

City of Dublin is investing $52 million in

interchange improvements.

Innovation Park is anchored by the state-

of-the-art Dublin Methodist Hospital, which

opened its doors in 2008, and is considered

a model hospital for its evidence-based-

design healing environment and cutting-edge

technology, including a virtually paperless

facility. In turn, the hospital’s opening has

spawned a flurry of ancillary medical services

and offices in the community. The city is

currently considering the development of a

$180 million proton therapy cancer treatment

facility in the park.

The bioscience sector is a growth industry in

Ohio and one that is supported by the state.

Last year, more than $2.5 billion was invested

to accelerate Ohio’s bioscience growth, nearly

doubling the previous year’s total.

Dublin has 57 biotech and pharmaceutical

companies, while the Columbus MSA lists

519. In the medical services industry, Dublin

is home to 234 companies and the Columbus

MSA includes 3,806. In addition to Cardinal

Health, Dublin-based bioscience businesses

include: Activaero America Inc., Bound

Tree Medical, Butler Animal Health Supply,

Cardiox, Neoprobe Corp., Opticon Medical

and Smiths Medical.

Learn more about central Ohio at

www.dublin.oh.us AE

Senator Sherrod Brown announces new bill to create jobs through workforce training in emerging industriesApril 1 – U.S. Sen. Sherrod Brown (D-OH) joined Ohio Board of Regents Chancellor Eric Fingerhut, BioOhio

President and CEO Tony Dennis, and Ohio university and college presidents to announce new legislation that would invest in bioscience and other emerging industries in Ohio.

Brown’s “Strengthening Employment Clusters to Organize Regional Success” (SECTORS) Act, which he introduced today with Sen. Olympia Snowe (R-ME), would support the development of specialized workforce training programs at two-year colleges to meet regional workforce needs of emerging industries

introduced this legislation in 2008.

“Workforce development and job creation go hand-in-hand,” said Brown. “By providing tailored education programs for regional industry needs, we can create and retain jobs in Ohio. We need to ensure that Ohio workers

are equipped with the skills for jobs of the 21st century.”

“The proposed SECTORS Act provides a framework which supports the implementation of educational programs, work-force training and infrastructure for the statewide expansion of Ohio’s bioscience industry,” said BioOhio’s Tony Dennis, “not limiting investment to just one region.” Dennis added that the legislation would leverage Ohio community colleges’ growing involvement in the bioscience industry.

The SECTORS Act provides grants for sector partnerships among institutions of higher education, industry, organized labor, and workforce boards. These partnerships would

regional level. A sector approach can focus on the dual goals of promoting the long-term competitiveness of industries and advancing employment opportunities for workers.

Bioscience News from around OhioConnecticut medical device component maker relocates to KetteringMarch 30 – A Connecticut-based plastics manufacturerwith concentration in medical devices and analytical systems is moving its manufacturing operations to Kettering, a Dayton suburb.

ADISCO will occupy approximately 5,000 square feet of manufacturing space within the National Composite Center

and commercialize advanced composite technology. The

to complete the relocation in 12 to 18 months. ADISCO’s existing manufacturing facility in Connecticut will remain operational throughout this transition period.

The Ohio Tax Credit Authority approved a six-year, $203,217 job-creation tax credit for ADISCO. The 45 percent job creation tax credit requires the company to maintain operations at the project site for 12 years. The Ohio Department of Development described it as a $255,000

In a Dayton Daily News article, ADISCO President Fletcher Brown said the company will hire up to four people this year and about 14 in 2010, in addition to a handful of employees relocating from Connecticut. Adisco will initially operate as a hosted business in the NCC, but will move out to larger quarters as the business grows, Brown said.

“The precision-machined polymers market is growing and has applications in all of the Dayton area’s strategic industries,” said Marty Hohenberger, vice president of business recruitment for the Dayton Development Coalition.

The new home of ADISCO in the National Composite Center in Kettering.

SenatorSherrod Brown

ChancellorEric Fingerhut

continued on following page

ChanTest acquires Applied Cell SciencesFeb. 26 - The leading experts in ion channels and GPCR (G-protein coupled receptors)—key to drug discovery, development, and safety—are now united. ChanTest, the leading provider of ion channel testing services and validated cell lines, has acquired Rockville, Maryland-based Applied Cell Sciences. ACS specializes in GPCR services, cell lines, and reagents.

The combined company will maintain both facilities in Rockville and Cleveland. ChanTest currently has 70 employees, while ACS employs 5. Going forward, ACS products and services will be marketed under the ChanTest name.

“We are now uniquely positioned to serve the drug discovery and safety needs of pharmaceutical and biotech customers with the most-comprehensive portfolio available of ion channel and GPCR services, reagents, and cell lines, covering nearly half of the known drugable genome,” said

“Buzz” Brown, M.D., Ph.D.

new cell lines that combine GPCRs and ion channels to offer a more-complete assessment of compound’s promise in discovery or preclinical safety testing.

QED expands operations in Northeast Ohio Jan. 23 - Quality Electrodynamics (QED) hosted over 200 international visitors from the bioscience industry as well as from several governmental, educational, and research

organizations. A ribbon-cutting ceremony highlighted the

suburb of Cleveland.

QED is in the process of adding manufacturing, logistics and testing space and looks to double its work force during the year. The expansion is a tangible demonstration of the growing presence of the medical imaging industry in Cleveland. It is estimated that nearly 50 imaging companies with about 3,000 employees—including market leaders Philips Medical Systems, Hitachi Medical Systems, General Electric and Toshiba Medical Systems—have a presence in Northeast Ohio.

Supercomputer expansion to benefit Ohio bioscience industryFeb. 25 - The Ohio Supercomputer Center launched a $4

a strategic addition that will more than double current

the Center’s computational capacity dedicated to Ohio’s bioscience and research efforts.

The expansion will integrate a new generation of IBM hardware into OSC’s IBM Cluster 1350, which became operational in January 2008. Because of the pent-up demand by Ohio researchers for supercomputing access, the new system reached operational capacity in just three months.

“This expansion can further propel Ohio to the forefront of biosciences research and job creation,” said Stanley Ahalt, executive director of OSC. “With critical supercomputing resources, Ohio researchers can increase the state’s share of national bioscience funding.”

of the most productive areas in which the Center could focus investments, collaborations, research and market solutions.

OSC’s partnerships include work with Nationwide

which has garnered national attention. OSC also partners with the Ohio State University Medical Center’s Biomedical Informatics Department, working on its caGrid infrastructure and related software, which provides a national network that may speed cancer research discoveries.

Expected to be fully operational by summer, the total expanded system will increase in computing capacity from

memory, from 8.4 terabytes to 24 terabytes.

Ohio Leads the Nation in New and Expanded Business Facility Investment

and Lt. Governor Lee Fisher joined members of Ohio’s business and economic development communities and Ohio General Assembly to announce that the State of Ohio was awarded Site Selection

magazine’s Governor’s Cup Award for leading the nation in new and expanded facilities in 2008. The March edition of the magazine highlighted the award and Ohio’s economic accomplishments, which include 12 cities around the state with top 10 rankings.

This year marks the seventh time Ohio has been awarded

row for Ohio and the state’s fourth in six years.

in Ohio,” said Mark Barbash, interim director of the Ohio Department of Development. “Site Selection’s award of

the Governor’s Cup to Ohio for the third consecutive year designates our state as the preferred location for capital

between business pursuits and quality of life.”

Governor Strickland attributes Ohio’s third consecutive Governor’s Cup win to the state’s manufacturing strengths, logistics capabilities, skilled workforce, and our competitive business environment. The City of Dayton played an outstanding role this year, ranking number one in the category for mid-sized metropolitan areas with populations between 200,000 and one million. AE

As I near completion of six years as chair of the Third Frontier Advisory Board, I exercise my typing skills. My purpose? To capture and share thoughts on the role of government in technology-based economic development,

and the special approach we are taking here in Ohio.

First, a bit of background for the sake of “transparency.” For 32 years, I worked for Procter

& Gamble. I started by carrying a bag on the streets of Chicago and completed my career at P&G as president of

the Pharmaceutical and Personal Health division. P&G is a great company and I was blessed to work within this meritocracy, where everything starts with delighting our consumers.

Since then I’ve pursued multi-faceted roles with opportunities to make a difference. In addition to my involvement in the $1.6 billion Third Frontier Project, I chair BioOhio and the Health Alliance of Cincinnati (a large hospital group), I am a founding board member of BIOSTART, and I serve on the boards of First Financial Bank and an emerging medical device company, AtriCure. I also serve as a venture partner at Triathlon, the largest bio-focused VC firm in the region. As a result of these diverse roles, I see economic development from numerous nooks, crannies and vantage points. And here’s what I believe:

America’s free markets will continue to drive economic growth and prosperity. Certainly, there’s a critical need for wise governmental regulation to protect the public. But government also has an imperative to not inhibit smart, enterprising people from profiting and creating jobs for others. Regulation must also not insulate poor performers from suffering some losses. That’s the way markets work, after all.

Governmental stimulation works when it does just that—stimulates the free markets by creating opportunities for entrepreneurs to increase rewards or decrease risks. The Ohio Third Frontier program has been our model for successful stimulus. Over the past six years, about $400 million in state investment have

leveraged a remarkable $3.5 billion in outside money—an almost 9 to 1 ratio. The combined funding has brought together the public and private sectors to build or expand important industries in Ohio: solar energy innovations in Toledo; cardiovascular technology in Cleveland; and medical imaging in Columbus to name just a few.

Over 500 companies have been created, attracted, or capitalized, representing over 7,700 jobs at an average salary of $67,000. And as the major new job growth that follows these new companies and industries takes root, more expansion capital will be attracted. In that way, the stimulus keeps on working.

Diverse groups of Americans will come together when opportunity exists, and fair, practical programs give enterprising people a chance to compete. I have been pleased to find strong support for the Third Frontier from Democrats and Republicans, conservatives and liberals, large companies and small companies, private and public sector employees, academia and business leaders, legacy and emerging industries.

America was built on the basis of innovation, and make no mistake: innovation is alive and well in America. Great ideas build economies—ideas that result in exciting products and services that help people improve their lives.

Great innovation does not require the government to play a great role, but in times of economic stress government must prime the innovation pump to make a real difference. And in times of economic prosperity, well-designed governmental programs work in partnership with industry to ensure a continuing flow of great technology and new industries we can’t even imagine today.

America’s greatness has not been fatally deflated by the actions of a relative few. We are a country with a grand majority of people from all walks of life, all socio-economic backgrounds and positions, all trying to do the right things with their talents, all with a desire to make a difference. This grand majority believe that America is a place of opportunity for those who work.

The sooner we start celebrating what made America great, celebrating success, and nourishing the prevailing sense of wanting to succeed, the sooner we will leave this lethargy, and get back on our track to greatness. Let’s focus on the American grand majority and celebrate the greatness they bring.

God bless the American dream. AE

By Mark CollarChairman, BioOhio & Chairman, Third Frontier Advisory Board

A Common Belief

Vantage Points,Vantage Points,Vantage Points,Many Vantage Points,