BREAKTHROUGHS

The Story of
Minnesota’s
Extraordinary
Biotechnology
Industry
 Big Ideas … Brilliant Innovations … Booming Industries

Having a brilliant idea is just the beginning.

Transforming that flash of insight and inspiration into a
groundbreaking diagnostic tool or treatment requires a
staggering array of scientific, research, legal, regulatory,
financial and entrepreneurial expertise—all of it available at the
right stages along the way.
If you’re willing to ping-pong between the East and West
Coasts (and pay premium prices) you can piece together parts
of what you need to succeed.
Or, you can have it all in Minnesota.
Early stage, pre-clinical, pre-market, post-market. Everything
it takes to turn ideas into innovations is right here.
“We’re the only place that connects all the dots. It just doesn’t
exist anywhere else,” says Shaye Mandle, CEO and President
of LifeScience Alley, the trade association that promotes
Minnesota’s life-science, biotechnology and health technology
industries.
At auctioneer speed, he ticks off the areas of deep industry
expertise Minnesota offers to companies of all sizes and at
all stages:
●● Basic research and discovery
●● Clinical trials and product testing
●● Regulatory review and approval
●● Commercialization and productization
●● Design, development and engineering
●● Intellectual property protection
●● Manufacturing, distribution and operations
●● Business development and finance
●● Reimbursement and market access

“We’ve got the strongest supply chain in the world … the greatest collection of
companies … an unrivaled concentration of scientific know-how … one of the best
research and testing grounds. It’s impossible to overstate the value of having all these
people in your backyard. It really does cut down on your costs and development time.”

— Shaye Mandle, CEO and President of LifeScience Alley

2 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

Sector Snapshot Innovation From
the Ground Up
Minnesota has one of the strongest
life-science, biotechnology and
health technology clusters in the With an eye toward feeding a world whose
world, generating billions of dollars in
population is projected to exceed 9 billion
revenue each year.
by the year 2050, Minnesota scientists,
Made up of 1,700 companies, institutions and companies are at the
the cluster has an unusually
broad base of talent in medical
forefront of bioagriculture research and
devices and equipment; drugs and development.
pharmaceuticals; research, testing
Minnesota is one of the top-ranked states in a broad array of crop
and medical labs; and agricultural
feedstock and bioagriculture. and livestock production—and the nation’s third-largest exporter of
agricultural goods.
The cluster employs 48,000
people at an average annual wage With such abundant production expertise, it’s no surprise the state also is
of $87,000. In addition, every a leader in applying biotechnology in many fields of agriculture to produce
bioscience job in Minnesota generates
four more jobs in a wide range of better seeds, greater crop yields, more nutritional value, better breeds,
support industries, bringing the total new animal vaccines and improved animal health.
employment impact of the state’s
But that’s just the beginning.
biosciences industries to more than
236,000 jobs. We’re also experts in applying biotechnology to develop new products
Some of the world’s most well-known from the crops we grow and harvest in our fields and forests.
companies have headquarters or
major operations here, including Minnesota is a leading producer of biodiesel and ethanol. And the state
Medtronic, Boston Scientific, is widely recognized as the epicenter of research and development in
3M, Upsher-Smith, Hawkins biopolymers and bioplastics—sustainable and more environmentally
Pharmaceutical, Beckman Coulter, friendly alternatives to petroleum.
Baxter Healthcare, Cargill, DiaSorin,
Lifecore Biomedical, the National With major operations in Minnesota, companies like NatureWorks
Bone Marrow Donor Program, (corporate headquarters) and BioAmber (research and development) are
Cellectis, BioAmber and Bio-Techne
using plant sugars instead of petrochemicals to produce everything from
R&D Systems, to name a few.
food packaging and films to textiles and durable goods.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1851 1864 1882

Minnesota opens a university, authorized by the William W. Mayo, M.D. opens medical The University of Minnesota
territorial legislature. office in Rochester, Minn., establishing establishes a medical department.
the origins of Mayo Clinic.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 3

 And hundreds of up-and-coming small and midsized companies
are hard at work, applying their genius to some of the world’s most
vexing problems, pioneering the next great waves of innovation,
and positioning themselves as future industry leaders.
You’d expect nothing less from the place that gave birth to the
world’s medical device industry and that remains at the forefront
of discovery in so many bioscience sectors.

A Long History of Leadership

and Innovation
For more than 150 years, Mayo Clinic and the University
of Minnesota have driven advancements in health care and
bioscience. Their groundbreaking efforts began even before
Minnesota became a state in 1858.
A Cool Working separately, together and hand-in-hand with visionary

Moooooooove researchers and inventors, these pioneering institutions have

helped give the world an astonishing number of groundbreaking
When cows are overheated in the summer, bad discoveries and medical “firsts.”
things can happen. Innovative medical records systems. Cortisone. Open-heart
surgery. The heart-lung machine. The mechanical heart valve.
They lose their appetites. They produce less milk. Kidney, pancreas, bone marrow, human islet, heart-lung-liver
Their fertility rates fall. transplants. Telemedicine. Rapid anthrax tests. The list goes on.

To combat the ill effects of heat-induced stress, This kind of scientific vision—with a focus on basic and applied
Minnesota-based Cargill has developed feed research and the technology transfer between academia and
industry that results—helped pave the way for the rise of
ingredients that keep cows cool during periods of Minnesota’s incomparable medical device industry, known as
high heat and humidity. Medical Alley.
During trials in Texas, Brazil and the Netherlands, As medical device breakthroughs were spun off into successful
the products (called I.C.E. and Cooling Pack) companies like Medtronic and St. Jude Medical or the medical
division of 3M, the region attracted ever more medical, scientific,
proved effective at the cellular level.
research, engineering and computer science expertise.
One U.S. dairy farm was able to maintain 70 Such an exceptional concentration of talent tilled and fertilized
pounds of milk production per cow each summer the ground for the next crop of Minnesota-grown innovations that
day instead of having it drop to 60 pounds when today flourish in most every bioscience field.
temperatures climbed.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1883 1888 1889

Saint Mary’s Hospital construction begins after University of Minnesota founds medical school Saint Mary’s Hospital opens
Mother Alfred Moes, of the Sisters of St. Francis, and admits 116 students. in Rochester, Minn.
offers to build and staff it—if W.W. Mayo and his
sons will provide medical care.

4 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

 Birthplace of
an Industry
Minnesota’s inventive medical device
history is on display at the National
Museum of American History in
Washington, D.C.

The Places of Invention exhibit

chronicles the rise of Minnesota’s
Medical Alley and five other inventive
hotspots in the United States that built
innovative industries and revolutionized
life in America and around the world in
the process.

Sponsored by the Smithsonian’s Lemelson Center for the Study of Invention and Innovation, the exhibit
examines the amazing things that can happen when the right mix of inventive people, resources and inspiring
surroundings come together.

“What is it about a place that inspires creative people to do new and different things? Place matters in invention,”
says Monica Smith, the exhibition’s project director. “It’s really about that moment where a group of inventive
people coalesce in a place.”

It’s an excellent chance to learn more about the medical visionaries and technical geniuses who gave birth to a
bioscience industry in Minnesota that continues to produce all kinds of marvels and breakthroughs.

Discovery continues at an unbridled pace each year in of the world’s most complex medical problems and to
Minnesota as the University, Mayo Clinic and hundreds of developing new and improved diagnostic tools, medications,
companies dedicate a staggering amount of brainpower and devices and treatment protocols.
research dollars to unraveling the mysteries behind many

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1902 1907
The Minnesota Mining and Manufacturing Dr. Henry Plummer of Mayo Clinic introduces the Dossier Medical Records System,
Co. (the global company known today as providing patient histories easily accessed and shared by multiple doctors.
3M) is founded. The Mayo Clinic and the University of Minnesota establish a graduate school of
medicine.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 5

 Spotlight on Mayo Clinic Research facilities at Mayo include 29 core laboratories
that occupy 347,926 square feet (32,323 square
A single-minded devotion to unraveling the deepest meters) of lab space.
mysteries of disease underlies all endeavors—and cuts
And Mayo researchers are remarkably prolific.
across all disciplines—at Mayo. “Without research,
Currently, the institution has:
there would be no Mayo Clinic,” says CEO and
President John Noseworthy. ●● 9,832 active Institutional Review Board-approved
human research studies
Patient need drives efforts at Mayo, where campuses
in Minnesota, Arizona and Florida conduct basic, ●● 2,672 new Institutional Review Board-approved
translational, clinical and epidemiological research. human research studies

As doctors treat patients and see opportunities for ●● 6,392 research and review articles in peer-reviewed
advancing patient care, they work together with journals
Mayo scientists and research teams and Mayo Clinic ●● 4,110 active grants and contracts
Ventures.
This close integration makes it possible to quickly
bring proven diagnostics and therapeutics to patients
and share this knowledge with the next generation of
doctors and scientists.

Research Investments
at Mayo
Mayo devotes a tremendous amount of money, time
and talent to research. In 2014 alone, it invested
$648 million in a wide range of studies. Of the total:
●● $276.4 million came from Mayo funding, including
philanthropy and royalties
●● $371.6 million came from external sources.
(Federal and state funding: $274.9 million;
industry: $62.6 million; and other sources:
$34.1 million)
In addition to financial muscle, the brainpower Mayo
applies to research is considerable. It has:
John Noseworthy
●● 193 full-time scientific faculty Mayo Clinic CEO and President
●● 619 physicians actively involved in research
●● 3,317 full-time research personnel

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1921 1933 1942

Scanlan International is founded to produce The first prepaid multiple hospital Elizabeth “Sister” Kenny opens an
custom surgical instruments. plan is created, known as Blue institute offering her special method for
Cross Blue Shield. treating polio.

6 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

 Mayo on
the Grow
An ambitious plan
to turn Mayo Clinic
and its hometown of
Rochester, Minn.,
into an even bigger
draw for medical
patients, practitioners,
researchers and
companies is under way.

The massive medical

and economic
development project
known as Destination Artist rendering of Destination Medical Center
Medical Center (DMC)
will invest a whopping $6
billion over the next 20 years into Mayo facilities and the community.

Funding for the DMC will come from private and public sources. Mayo Clinic plans to invest $3.5 billion in its
Rochester campus and attract an additional $2 billion in private investment. State and local government are
investing $585 million, mostly for public infrastructure improvements necessary to support new growth.

The project is expected to have a substantial economic impact, creating 25,000 to 30,000 new jobs in
Minnesota from the direct growth of Mayo Clinic and DMC programs alone. New biotech companies and jobs
are projected to grow out of collaborations to commercialize Mayo discoveries. State and local government are
expected to collect as much as $3.4 billion in new tax revenues over the 20-year period.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1944 1948 1949

The health maintenance organization 3M introduces the surgical Medtronic is founded by Earl Bakken and Palmer
(HMO) concept is introduced by drape, the company’s first Hermundslie as a partnership to service electronic
Community Health Association of America health care product. medical equipment.
in Two Harbors, Minn. Edward C. Kendall and colleagues at Mayo Clinic
are awarded the Nobel Prize for isolating cortisone.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 7

 A Focus on the Individual
Some of the most exciting research at Mayo is coming in the
promising fields of individualized and regenerative medicine.
At the Center for Individualized Medicine, Mayo researchers
and physicians use the latest in genomic, molecular and clinical
sciences to design highly individualized treatments based on a
patient’s very own molecular or genomic makeup.
Using bioinformatics (a combination of computer science,
biology and genetics), researchers analyze a patient’s DNA
to determine his or her unique disease susceptibility, provide
better diagnoses, earlier interventions, more efficient drug
therapies and customized treatment plans.
Some promising areas where Mayo is on the leading edge of
discovery include:
●● Pharmacogenomics – Understanding how a patient’s DNA
sequence influences their response to medications is key to
delivering the right drug at the right dose at the right time
for the most effective treatment.
●● Microbiome – Communities of bacteria living in the human
body do much more for us than we ever imagined. Mayo
researchers are studying how this microbiome promotes
wellness and enables disease. By studying its genetic code,
researchers are looking for new ways to keep the human
microbiome healthy, repair it, and use its powers to prevent
and treat disease.
●● Biomarkers – Found in tissue, blood, urine and other
body fluids, these molecular substances can be used to
indicate health or disease. Prostate and ovarian cancers
are two examples of how the use of biomarkers can lead to
individualized diagnosis and treatment.
●● Regenerative medicine – This game-changing field has
the potential to fully heal damaged tissues and organs from
within, offering solutions and hope for people who have
conditions that today are beyond repair.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1952 1955 1957

The world’s first direct-vision open-heart surgery Mayo Clinic becomes the first Medtronic cofounder Earl Bakken develops the
is performed at the University of Minnesota by medical center to perform open- first small, wearable, external, battery-operated
Dr. C. Walton Lillehei and Dr. F. John Lewis. heart surgery using the Mayo- pacemaker at the request of University of
Gibbon Heart Lung Machine. Minnesota surgeon C. Walton Lillehei.

8 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

Mayo’s Center for Regenerative Medicine takes three Stem cells are the key to regenerative medicine. Teams
interrelated approaches: are studying a variety of stem cells (including adult
and embryonic stem cells), various types of progenitor
●● Rejuvenation – Boosting the body’s natural ability to heal
cells (such as those found in umbilical cord blood), and
itself. Cells once thought to be no longer able to divide
bioengineered cells called induced pluripotent stem cells.
(including highly specialized cells of the heart, lungs and
nerves) have been shown to have some ability to heal Many of the regenerative therapies under development at
themselves. Teams within the center are studying how to the Center for Regenerative Medicine begin with a patient’s
enhance self-healing processes. cells. For example, a patient’s skin cells may be collected,
●● Replacement – Using healthy cells, tissues or organs reprogrammed in a laboratory to give them certain
from a living or deceased donor to replace damaged ones. characteristics, and delivered back to the patient to treat his
Researchers are finding ways to overcome the ongoing or her disease.
donor shortage, the need for immunosuppression and the
challenges of organ rejection.
●● Regeneration – Delivering specific types of cells or
cell products to diseased tissues or organs, where they
ultimately will restore tissue and organ function.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1957 1960 1961

First direct stimulation by electrodes pacemaker is First heart valves developed by Miles 3M forms its Medical Products
developed at the University of Minnesota. “Lowell” Edwards and Dr. Albert Starr. Division, devoted solely to health
More than 175,000 Starr-Edwards valves care. Today, it’s called 3M Health
were successfully implanted into patients Care Division.
between 1960 and 1998.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 9

 Spotlight on the University
of Minnesota
A New Biomaterials to biomechanics. Cancer to
Dimension infectious diseases. Drug delivery and design.
Neuromodulation and magnetic resonance
in Medicine imaging. And a whole lot more.

One of just a handful University of Minnesota researchers are the bright

minds behind many treatments, medications and
of elite labs worldwide
diagnostic tools used in hospitals today. And more
to have a 3D bioprinter than 4,000 full-time scientific faculty are driving
capable of building living the life-saving breakthroughs of the future.
tissues, the University The University invests heavily to advance those
of Minnesota’s Visible innovations and bring them to market.
Heart Research
In 2014, research funding at the University topped
Laboratory is at the forefront of one of the most intriguing $741 million, including:
areas of regenerative medicine.
●● $490.3 million from federal sources
With the latest technology provided by BioBots, a U.S.- ●● $130.6 million from private sources
based biotech startup, University researchers are exploring ●● $64.7 million from state and local government
the mysteries and potential of biofabrication, the process of ●● $55.2 million from business and industry
building living tissues and organs.
Last year, those research investments produced
Angela Panoskaltsis-Mortari, a professor of pediatrics and 343 invention disclosures, 138 new U.S. patents
and 15 startup companies.
medicine at the University, plans to use the printer to produce
a biocompatible piece of esophagus, which she and her The University’s Biomedical Discovery District is at
the heart of it all, a complex of the most advanced
colleagues hope to transplant into a pig by the end of the year.
facilities for basic and translational research found
Visionaries hope that eventually the technology could be used anywhere in the country. Here, ideas are born,
to create new organs for human transplant, custom-designed developed and pushed forward.
for a patient’s exact dimensions and “living ink” made, in part, Grounded in the belief that great discoveries
from that patient’s own cells. happen when different scientific disciplines meet,
the complex allows researchers from across the
Until that day arrives, the bioprinter can support a wide variety University to work side-by-side to find new cures
of research, including printing 3D living tissue models for and therapies for our most challenging health
conditions.
research and pre-clinical drug testing.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1963 1966 1966

The University of Minnesota The Rochester Epidemiology Project is introduced, First-ever pancreas transplant
performs its first kidney transplant. providing a medical records linkage system that has in a human is performed at the
made Olmsted County one of the few places in the University of Minnesota.
world where the occurrence and natural history of
diseases can be accurately described.

10 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

Within the multi-building complex that forms the district,
researchers are working to unlock the mysteries of brain
A History of Collaboration
diseases like Alzheimer’s, discover new immunology-based A rare atmosphere of collaboration between scientists,
treatments and other therapeutic strategies for cancers and researchers, industry and government lies at the very heart
infectious diseases and tackle cardiac regeneration. of Minnesota’s biosciences success.
The new Microbiology Research facility slated to open in Nowhere is that more evident than the Minnesota
early 2016 has 80,000 square feet (7,432 square meters) Partnership for Biotechnology and Medical Genomics, a
of labs and office space for the study of infectious diseases unique collaborative venture between Mayo Clinic, the
and development of new drugs and vaccines. University of Minnesota and state government.
The Biomedical Discovery District also is home to some of
the most advanced magnetic resonance instrumentation
anywhere—including the world’s largest magnet for human
imaging at 10.5 T.
At the Center for Magnetic Resonance Research (CMRR),
these high-powered magnets are opening windows into the
body’s inner workings and giving researchers amazing new
ways to study diseases and evaluate treatments.
Couple amazing technology with deep human expertise in
imaging physics, engineering and signal processing and the
potential for breakthroughs is nothing short of astounding.
The approaches and instrumentation developed at the
CMRR are some of the most important tools used today to
study system-level organ function and physiology in humans
for basic and translational research, and are increasingly
applied worldwide.
Magnetic resonance imaging is a critical tool for all kinds
of leading-edge research in many disciplines at the
University of Minnesota. Its use has expanded from fields
that have traditionally valued neuroimaging data—such as
psychology, neuroscience, psychiatry, radiology, and child
development—into a whole host of other domains, including
economics, political science, public health and even design.
Over the next five years, the University plans to redouble
research efforts with initiatives to expand research in
targeted areas, to promote research across scientific
disciplines and to accelerate the transfer of knowledge to the
marketplace through public and private-sector partnerships.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1968 1969 1972

The first successful non-twin bone marrow transplant First FDA-approved artificial total hip Cardiac Pacemakers, Inc. is founded by
takes place at the University of Minnesota. replacement takes place at Methodist Manny Villafana. The company later became
Hospital in Rochester, Minn. part of Guidant and produced the first
lithium-powered pacemaker.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 11

 The partnership was born in 2003 out of recognition that by The focus is on areas that have great potential to produce
combining the unique strengths at each institution and by new ways to diagnose and treat major diseases, improve
sharing expertise and costs, Mayo and the University could human health, and create jobs and economic growth through
accomplish things together that neither could do alone. research, development and commercialization.
Looking for ways to boost economic development in The partnership has attracted more than $60 million in
Minnesota’s biosciences industries, it was state leaders who grants from the National Institutes of Health. The goal is to
first encouraged deeper collaboration between the two draw continuing support from federal and private sources
institutions. The state Legislature has continued to back the and generate revenue from breakthroughs that are brought
joint effort with recurring funding. to market.
“Investments we make in our biosciences industries pay us Recently funded partnership projects bring University and
back in two very important ways,” observes Kevin McKinnon, Mayo experts together in some very intriguing
Deputy Commissioner at the Minnesota Department of areas, including:
Employment and Economic Development (DEED).
●● Pharmacogenomics and Prostate Center Treatments –
“First, advances in human health, plant and animal science, Using clinical studies and lab research, experts are delving
biofuels and the environment benefit everybody—not just into what makes some prostate-cancer drugs ineffective
here, but all over the world,” says McKinnon. “Second, for some patients.
when big success in the lab turns into big success in the ●● A New Kind of Heart Valve – Researchers are using
marketplace, big new companies result. That means lots of engineered tissue developed at the University and stent
very good jobs. That means economic growth and stability. technology developed at Mayo Clinic to create a new
Any way you look at it, we win.” type of heart valve.
For as long as they’ve existed, the University and Mayo have ●● New Drugs for Multiple Myeloma – Not all patients
cooperated on research and education. But in recent years respond equally well to proteasome inhibitors, a new class
the partnership has taken research and development efforts of cancer drugs. The team is using genomic scans and
to a whole new level. clinical studies to find out why.

“Advances in human health, plant and animal science, biofuels and the
environment benefit everybody—not just here, but all over the world.”

— Kevin McKinnon, Deputy Commissioner of the Minnesota Department of

Employment and Economic Development

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1972 1972 1973

The University of Minnesota establishes a PhD Mayo opens a medical school, Mayo School of Health Sciences opens, with
program in biomedical engineering, leading to a the 110th in the United States the first group of health professionals being
significant increase of medical device companies in and second in the state after the nurse anesthetists.
Medical Alley. University of Minnesota.

12 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

●● Safer Solutions to Treat Aortic Valve Calcification –
A new drug to treat aortic valve calcification can be
toxic to the liver. Without an effective drug, surgical
replacement of the valves is the only option. The team is
trying to uncover the chemical mechanisms underlying
the reaction and find alternatives at the molecular level.
●● Fighting Brain Cancer – This research team uses animal
models to study the use of a virus to combat deadly brain
cancers. The virus activates the body’s own immune
system to fight the tumors.
●● New Glaucoma Treatment – A commercialization award
is helping support validation studies on a drug to fight
glaucoma with the goal of approval by the U.S. Food and
Drug Administration for patient use.

The MnDRIVE initiative is another example of how a

partnership between the University and the state is helping So far, MnDRIVE has undertaken 120 projects (involving
pave the way to new breakthroughs. 354 researchers), hired 111 faculty members and other staff,
secured 21 patents and licenses and cultivated more than 75
Short for Discovery, Research and InnoVation Economy,
outside partnerships with industry leaders including Cargill,
this landmark initiative aims to take on real-world
3M and Medtronic.
challenges, advance new discoveries and cultivate strategic
business collaborations by pairing the University’s experts MnDRIVE global food projects include:
with private-sector partners in the state’s key and
●● Ways to make hypoallergenic peanut, dairy and soy
emerging industries.
proteins
An investment of $36 million in state funding fuels research ●● Evaluating a new antibiotic technology to reduce
in four areas: salmonella in poultry using methods from genetic
●● Global food ventures engineering, bioinformatics, microbiology and animal
health science
●● Robotics, sensors and advanced manufacturing
●● Bioresponsive food packaging that will tell you when milk
●● Discoveries and treatments for brain conditions
is spoiling in the jug
●● Advancing industry and conserving our environment
●● A new way to detect the presence and measure the
concentration of salmonella contamination in ground
meat and poultry, with an eye toward more effective and
efficient management of outbreaks

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1976 1977 1979

St. Jude Medical is founded by Manny Villafana to Human trials of the St. Jude heart Artificial blood is used for the first time
develop and market an innovative series of bi-leaflet valve begin by noted surgeon at the University of Minnesota.
heart valves. Dr. Demetre Nicoloff at the
University of Minnesota.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 13

 MnDRIVE robotics and manufacturing projects
include:
●● New electrodes made of carbon nanotubes and
Making Microbes graphene used in deep brain stimulation

Work for
●● Magnetic nanobots to probe malignant cells and
make a new cancer therapy

Minnesota ●● New sensors for colposcopy

●● Robot companions that help patients reduce
Microorganisms are everywhere. anxiety in difficult medical situations
Our mouths and digestive tracts. Our
●● Soft, smart, worm-like transvascular surgical
soils and waterbodies. Even in such robots with integrated sensing and precision
extreme and unusual environments as therapeutic control
acidic hot springs, the middle of the ●● Robotic system to inspect apples for packing
Antarctic ice sheet, and deep in the ●● Complex 3D printing for the development of
earth’s crustal fluids. cutting-edge medical devices

At the University of Minnesota, researchers are harnessing MnDRIVE brain conditions projects include:
the power of microorganisms to clean up contaminated lands ●● Using deep brain stimulation to improve
and waters. movement and mobility in patients with
Parkinson’s disease
Much in the same way that humans eat sugar and breathe MnDRIVE environment projects include:
oxygen, certain microorganisms can make a living by “eating”
●● Initiatives dedicated to identifying and removing
and “breathing” organic and inorganic compounds. In doing so,
pollutants like atrazine and phosphorus from
microbes can break down pollutants. water
Known as “bioremediation,” the science is already widely The University’s Biotechnology Resource Center
applied to treat municipal and industrial wastewaters, and many (BRC) works hand-in-hand with industry on
collaborative and contract research.
treatment systems involve microbial processes in some capacity.
But the University is taking the idea much further. With expertise in molecular biology, biochemistry,
microbiology and biochemical engineering in a
Research supported through the MnDRIVE program includes broad range of industrial settings, the BRC offers
using microorganisms to treat nitrate runoff from land, remove customized research and development services as
well as limited production services in fermentation,
estrogens from our wastewater, reduce sulfate that is present as
downstream processing, protein expression and
a result of certain industrial processes, and generate energy while good manufacturing practice capabilities.
desalting brines. Microorganisms can even be used to immobilize
The center has completed hundreds of
metals, neutralize acid and remove sulfate from water. fermentation and biotechnology projects for life-

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1983 1985 1989

3M Health Information Systems is FDA approves use of cardioverter Mayo Clinic pioneers telemedicine with
formed to help health care providers defibrillators, and Cardiac real-time broadcasts that enable medical
access, compile, code, report, store Pacemakers, Inc. (Guidant) specialists in locations around the world to
and exchange health information. introduces the first implantable collaborate on patient care.
cardioverter defibrillator.

14 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

science companies here and around the world. And the
momentum has been building.
“I have watched the interactions between the life-science
industry and the University of Minnesota grow substantially
over the last three years,” says BRC Director Tim Tripp.
“It has been particularly exciting to see small and startup
companies using the resources and expertise of the
University of Minnesota to grow their business.”

Turning Breakthroughs into

Business
Artist rendering of Discovery Square
Can there be any doubt about Minnesota’s ability to turn
big ideas into big commercial successes and world-class The office also partners with companies to use University
industries? research and technology in products they develop. Such
The fact that some of the world’s most recognized well-known companies as Medtronic, 3M, Honeywell,
companies—including several in bioscience-related fields— Boston Scientific, Rolls Royce and Adobe have licensed
are headquartered or have major operations in Minnesota and successfully commercialized research and technology
says a lot. So does the success that Mayo, the University of pioneered at the University.
Minnesota, and hundreds of small and midsized companies At the same time, Mayo Clinic Ventures is a global leader
have had in commercializing their discoveries. in research and technology commercialization. It licenses
The University’s Office for Technology Commercialization Mayo’s intellectual property, teaches entrepreneurism,
ranks sixth in the nation for bringing research with starts companies, runs a business accelerator and
commercial potential to market. The office works with participates in a $100 million venture and growth fund that
entrepreneurs, researchers and investors to create startup supports economic development.
companies based on the University’s research. Mayo Clinic Ventures also works closely with industry. To
date, the group has received more than 5,900 disclosures,
“It has been particularly filed 5,500 patents and signed 2,600 licensing agreements.
An unprecedented 47 percent of disclosures are
exciting to see small and commercialized.
startup companies using the
Discovery Square, a state-of-the-art biotechnology park
resources and expertise of the being planned as part of an ambitious $5.6 billion expansion
University of Minnesota to of Mayo Clinic campus in Rochester, Minn., aims to
simultaneously quicken the pace of medical innovation and
grow their business.” economic development.
— Tim Tripp, Director of University of Minnesota’s
Biotechnology Resource Center

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

1993 1996 2001

World’s first two successful single donor human islet Mayo Clinic performs the first A one-hour anthrax test is developed by
transplants take place at the University of Minnesota. heart-lung-liver transplant in the Mayo Clinic in collaboration with Roche
United States. Molecular Biochemicals.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 15

 Designed to be the “Silicon Valley of medicine,”
the facility will link Mayo’s renowned expertise
together with private companies, entrepreneurs,
Angel Tax researchers and others. A focus on translational
research means teams can more quickly turn
Credit Helps what they learn in the lab into promising new
ways to diagnose, treat and prevent disease.
Bio Firms Take Discovery Square is expected to attract premier
Flight talent and significant outside investment
from individuals and companies hoping to
Minnesota’s Angel Tax Credit bring treatments and technologies to market.
program gives innovative As companies turn medical discoveries into
companies the capital they need commercial successes, Discovery Square may
well turn into one of the state’s most powerful
to take flight and gives investors
engines for job growth.
the confidence they need to
finance small startups. Biotech Incubators and
“You get the funds you need, you get the confidence you need, Support Services
and to some degree you get the exposure you need,” says Judy
In addition, biotechnology incubators play an
Lundy, president of Mill Creek Life Sciences in Rochester, Minn.,
important role by providing lab and office space
which raised $3.6 million through the program. to early-stage bioscience companies and helping
bring new technologies to market.
In just five years, the state-funded program has helped
hundreds of high-tech startups attract hundreds of millions of University Enterprise Laboratories in St. Paul
is a collaborative research center that is home
dollars in capital investment, including a high concentration of
to a mix of early-stage life science, medical
biotechnology, medical devices and equipment, and and tech companies. Areas of focus include
health care companies. biotechnology, medical devices and medical
diagnostics.
The program provides a 25-percent tax credit to investors
and investment funds that put money into Minnesota startups The SEED Partners in Minneapolis focus on
biopharmaceuticals, bioscience and medical
focused on high technology and new proprietary technology,
device technology. Its venture capital fund
products, processes or services. invests in promising projects.
Maximum credit is $125,000 per person per year, or $250,000 Located in the Minnesota BioBusiness Center
for joint filers. Unlike programs in other states, Minnesota’s Angel in Rochester, Minn., Mayo Clinic Business
Tax Credit is refundable, which means investors receive cash back, Accelerator provides collaborative space for
new companies, venture capital firms and
rather than just a credit toward state income tax liabilities.
entrepreneurs.

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

2001 2003 2004

CVRx is founded to develop the Rheos System, Drug-eluting stents hit the market using technology Mayo Clinic and IBM, with its
an implantable technology to treat high blood developed by SurModics, Inc., a milestone in the supercomputer, collaborate to take
pressure and heart failure. convergence of biologics and medical devices. advantage of an explosion in new
medical data to drive research and
The University of Minnesota and Mayo Clinic create
breakthroughs in medicine.
the Minnesota Partnership for Biotechnology and
Medical Genomics.

16 MINNESOTA’S BIOTECHNOLOGY INDUSTRY

 Already areas of deep expertise and significant research in
Minnesota, these sectors are expected to drive bioscience
industry growth well into the future.
Over the last five years, for instance, Minnesota companies
have generated 70 percent of all pre-market approvals for
drug delivery devices. For the first quarter of this year, that
number was 87.5 percent.
Substantial investments in 2014 point to growing interest in
several emerging markets.

Attracting Investment Last year, investment in pharmaceuticals and biotech rose

dramatically, posting a tenfold increase over 2013. And
Success has an irresistible gravitational pull. more than twice as many pharmaceutical and biotech
companies received investment. In fact, the state’s bio/
And Minnesota’s long track record of innovation and
pharma cluster has grown 54 percent in the past 10 years.
commercial success in a wide variety of bioscience fields
gives it undeniable power to attract entrepreneurial interest In addition, investments in digital health companies reached
and investment. $41 million in 2014, an increase of 41 percent over the
previous year. Interest is especially keen from venture
Since 2009, life-science investment in Minnesota has
capital groups on the East and West Coasts.
topped $1.8 billion.
In 2014, investments in Minnesota-based life science
organizations reached a record high, with $430.4 million
A Powerful Formula for Success
directed to 86 companies. The capital influx continued Some of the brightest minds on the planet. Some of the
an upward trend that has seen back-to-back investment world’s top research facilities. Unrivaled leadership from
increases of 23 percent and 38 percent over the past academia, industry and government. A predominant
two years. atmosphere of cooperation. A long and stellar track record
of innovation.
Medical device companies saw the lion’s share of
investment. That’s no surprise to anyone who understands From the very beginning, that potent formula has nurtured
Minnesota’s world-leading position in developing complex Minnesota’s bioscience industries, helped them sprout, take
medical devices. While that leadership will certainly root and grow into a scientific and economic powerhouse
continue, several emerging sectors are showing tremendous that is the envy of the world.
potential for major long-term growth, including: “It’s an amazing legacy, but it’s only the beginning,” says
●● Regenerative medicine and cell therapy DEED’s McKinnon.
●● Drug delivery “Minnesota is the future for bioscience companies of all
●● Diagnostics sizes that want to turn their big ideas into big successes.
Start here. Expand here. Relocate here. It’ll be the best
●● Health IT investment you ever make.”
●● Neuromodulation

A TIMELINE OF MINNESOTA’S BIOSCIENCE HISTORY

2004 2006 2014

Medtronic launches world’s first digital pacemaker, Boston Scientific and Guidant Mayo Clinic recognized as the
which monitors the heart’s upper and lower chambers sign merger agreement to top hospital in the nation on
and delivers the minimum electrical impulse needed create a $27 billion company. its 150th anniversary.
to keep the heart beating.

MINNESOTA’S BIOTECHNOLOGY INDUSTRY 17

 Cooking Up the Future of Biotechnology
Growing new human organs for transplant. Developing a non-invasive home screening test for colon cancer.
Using biospheres to remove contaminants from water.
These are just a few of the groundbreaking biotech innovations being used or in development—in Minnesota and
across the globe—based on research breakthroughs from the University of Minnesota and Mayo Clinic.
Innovation isn’t just a buzzword in Minnesota—it’s happening every day. From startups to established businesses,
companies are using research from Minnesota to bring to market new biotechnology products and services that
can save lives, improve health and make our communities better places to live.
Here are a dozen brief company profiles that illustrate the breadth of this remarkable work.

The Actives Factory: Startup Appears to Be

Barking Up the Right Tree
Bark from birch trees contains anti-inflammatory compounds that have been
shown to reduce cholesterol and blood pressure, treat infections and stimulate
the immune system, according to the University of Minnesota. The Actives
Factory, a University of Minnesota startup based in Two Harbors, Minn.,
uses patented techniques to extract and synthesize the naturally occurring
chemicals in birch bark. These compounds hold promise for the development
of new pharmaceuticals, cosmetics and nutritional supplements. The patented
technology behind The Actives Factory was developed through the University
of Minnesota’s Natural Resources Research Institute and licensed through the
University’s Office for Technology Commercialization.
Photo courtesy of the
Minnesota Department of Natural Resources

Photo courtesy of Miromatrix

Miromatrix Medical: Potential to Revolutionize Medicine

Using its proprietary perfusion decellularization/recellularization technology, Miromatrix has the capability to make fully biological
human organs for transplant. This method of decellularizing and recellularizing any vascularized tissue, up to and including whole
organs, is protected by a series of patents and patent applications in all major markets and originally was licensed from the University
of Minnesota. Based in the Minneapolis area, Miromatrix has launched its first product (a liver-derived biological mesh) and is working
independently and with partners—including Mayo Clinic—to develop a series of organ-based products.

18 INNOVATIVE BIOTECH COMPANIES

Minnepura Technologies: Using New Technologies to Purify Water
Minnepura Technologies, Inc.—a University of Minnesota startup based in Minneapolis—
has developed a patented bioencapsulation technology that provides safe, cost-effective
treatment solutions to remove potentially dangerous chemicals from water. These
patented biospheres target and remove troublesome contaminants from waste streams
in a natural and environmentally friendly manner. Minnepura provides solutions to the oil
and gas, agricultural, municipal water and pharmaceutical industries.

Photo courtesy of Minnepura Technologies

Celyad: Collaborating on ‘Holy Grail’

of Cardiology
Drawing on research pioneered at Mayo Clinic, Mayo
and Belgian company Celyad (formerly known as
Cardio3 BioSciences) researchers are working together
to develop a way to repair muscles damaged during a
heart attack by using stem cells. They have programmed
stem cells taken from patients’ own bone marrow to
restore damaged cardiac muscles. Some have called
what Celyad is endeavoring to achieve the “holy grail”
of cardiology. Following successful completion of initial
clinical testing, regulatory agencies have approved the
technology for additional, more advanced trials.
Photo courtesy of Celyad

Preventice: Remote Monitoring Provides Peace-of-Mind

Minneapolis-based Preventice, a Preventice Solutions company, developed the BodyGuardian
Heart monitor, a small, lightweight wireless non-intrusive body sensor. Developed in collaboration
with Mayo, the BodyGuardian Heart monitor uses sophisticated algorithms that delivers continuity
of patient care and continuous 24-hour near real-time remote cardiac monitoring. The monitoring
system is a cutting-edge approach that allows health care providers to monitor key biometrics
outside the clinical setting, while patients go about their daily lives, thus
safeguarding the health and safety of individuals every day. The
FDA-cleared BodyGuardian Heart monitor records and wirelessly
transmits important physiological data such as ECG, heart rate,
respiration rate and activity level for many common cardiac and
chronic diseases. BodyGuardian Heart monitoring system creates
a constant connection between patients and their care teams,
potentially easing stress and worry, increasing compliance with
treatment plans and improving quality of life.

Photo courtesy of Preventice Solutions

INNOVATIVE BIOTECH COMPANIES 19

 Mill Creek Life Sciences: Patented Potion for Producing
Stem Cells
Using technology licensed from Mayo Clinic, Mill Creek Life
Sciences in Rochester, Minn., has developed a revolutionary new
medium for producing human stem cells and primary cells used in
regenerative therapy. Now in clinical trials in Europe, the United
States, Canada and Australia, Mill Creek’s technology should make
it possible one day for patients to be treated with their own stem
cells for a wide variety of diseases. Mill Creek’s PLTMax is a human-
protein-based cell culture supplement that is animal-free and
serum-free. It’s available in both clinical and research grades and is
intended to follow work from bench to bedside.

Exact Sciences: Aiming to Eradicate

Colon Cancer
Exact Sciences, based in Madison, Wis., partnered
with Mayo Clinic to create Cologuard, a noninvasive,
colorectal cancer-screening test that was
recently approved by the FDA and by Medicare.
A 10,000-patient, multi-site study published in
The New England Journal of Medicine showed that
Cologuard had a 92 percent sensitivity for detecting
colorectal cancer, with 94 percent sensitivity in
detecting early stage colorectal cancer (Stages
1-2). Cologuard requires no preparation or dietary
restrictions and can be done from home. The patient
then mails the test to Exact Sciences Laboratory.
Cologuard identifies altered DNA and/or blood in
the stool, which are associated with the possibility of
Photo courtesy of Exact Sciences colon cancer or precancer.

Ambient Clinical Analytics: Using IT to Increase

Patient Safety
This Rochester, Minn.-based startup uses licensed Mayo
Clinic technologies to give critical care providers real-time
access to vital process-of-care information and analytics
at the bedside. Its three technologies include: AWARE
(Ambient Warning and Response Evaluation), which reduces
information overload by using analytics to filter and present
relevant patient data; Mayo Clinic YES Board®, a multi-
patient management tool that provides real-time situation
awareness for emergency departments and hospital pediatric
departments; and Syndromic surveillance, which provides
“smart alerts” that identify the presence of sepsis and
ventilator-induced lung injury. By allowing physicians to spend
more time with patients instead of reviewing information,
these tools aim to reduce overall health care costs and
improve patient outcomes. The FDA recently gave clearance
for Ambient’s AWARE software platform as a Class 2 device.

20 INNOVATIVE BIOTECH COMPANIES

 Torax Medical: Treating Reflux Disease and Sphincter Disorders
Torax Medical, Inc. is a medical device company headquartered in St. Paul
that develops and markets products designed to treat sphincter disorders
utilizing its technology platform, Magnetic Sphincter Augmentation
(MSA). Torax Medical is currently marketing the FDA-approved LINX®
Reflux Management System for the treatment of Gastro-esophageal
Reflux Disease (GERD) in the United States and Europe and the FENIX®
Continence Restoration System for the treatment of Fecal Incontinence
(FI) in Europe. The Mayo Foundation for Medical Education and Research
was one of the founding investors in Torax Medical.

NeoChord, Inc.: Transforming Mitral Valve Repair

Based in Eden Prairie, Minn., NeoChord is a privately held medical
technology company focused on advancing the treatment of mitral
regurgitation. It has received CE marking for its DS1000 device, a single
use, hand-held device designed to repair mitral regurgitation by deploying
artificial chordae tendinae in the beating heart. Mitral regurgitation is
a progressive disease that left untreated can result in atrial fibrillation,
congestive heart failure and death. The DS1000 device uses intellectual
property licensed by Mayo Clinic.

Photo courtesy of Torax Medical

FocusStart: Seeking to Reinvent the Early

Stage Device Development Process
FocusStart is a Twin Cities-based medical device
company with a business model designed to
accelerate the development process. Currently,
FocusStart is working on four innovative
technologies—including an anti-coagulum
cardiac ablation catheter, an orthopedic tissue
tension sensor, an anti-biofilm urological
catheter and a smart inhaler. FocusStart’s
licensing partners include Mayo Clinic and
Photo courtesy of NeoChord, Inc.
University of Minnesota. LifeScience Alley
named FocusStart the 2014 New Company of
the Year. In April 2015, FocusStart received a
Phase II Direct SBIR Award from the National Universal Magnetic Systems: Using
Institutes of Health to develop the company’s Nanoparticles to Help Detect Disease
cardiological technology. Universal Magnetic Systems LLC (UMS), of
St. Paul, Minn., uses novel methods to produce
high-strength magnetic nanoparticles that
provide customers with a faster, more efficient
and more powerful means of separating and
isolating biotarget materials. Its technologies—
licensed through the University of Minnesota—
have applications in the vitro diagnostics markets
(including immunoassay, cell separation and flow
cytometry). They also have future applications
in biotechnology, medical diagnostics, catalysis,
communications and energy production.

INNOVATIVE BIOTECH COMPANIES 21

 Office of Business Development
Minnesota Department of Employment
and Economic Development

332 Minnesota Street, Suite E200

St. Paul, MN 55101
651-259-7432
economic.development@state.mn.us
mn.gov/deed/business