dutch life sciences health outlook 2013 online
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Monitoring and improving the Dutchlife sciences & health clusterTRANSCRIPT
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see also www.lifesciencesoutlook.com
Dutch Life Sciences & Health Outlook 2013
The Life Sciences & Health Outlook is created under the supervision of Prof. dr. Fred van Eenennaam and Ir. Maarten Koomans. It is supported by the International Academic Advisory Council
-Academic partners- -Developer-
“From Bench to Bed”
Monitoring and improving the Dutch
life sciences & health cluster
-Since 2009-
-Partners-
-The Fourth Edition-
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Dear reader and friends,
This year’s “Dutch Life Sciences and Health Outlook 2013: “From Bench to
Bed” is the fourth since the need emerged for a yearly systematic
report on the Dutch Life Sciences and Health Cluster by companies,
research institutes and policy makers. We would like to
acknowledge and thank the valuable contribution of many to the Outlook 2013.
Especially, we would like to thank the firms and institutions in the life
sciences cluster, the national and international policy makers, our international
academic council members and their academic institutions, the members of the
120 universities of Harvard Prof. Porter Microeconomics of Competitiveness
network, the Netherlands Center for Competitiveness, the members of our
network in the world class “sister life sciences and health clusters”, CEBR for all
the generous support and feedback.
We hope that this year as well, you will appreciate all the project management and
data collection efforts done by The Decision Group and the timeconsuming task of
systematic data collection, methodology update and database management.
The main aim of the Dutch Life Sciences and Health Outlook in 2009 was set: “to
show up an objective, systematic, way, with a limited set of meaningful indicators
the economic and social effects and progress of the firms of the Dutch Life
Sciences and Health Cluster, to make and help align firm decisions, cluster and
specific Life Sciences and Health national policies”.
The economic and
social effects and
progress firms of the
Dutch Life Sciences
and Health Cluster
Over the years, the Outlook has evolved. Definitions and procedures were
revisited and updated, scope was broadened, and health is included.
We think you will be impressed with the development and
transformational capability of the Dutch Life Sciences and
Health Cluster. Last years we have received much positive
feedback on the Dutch Life Sciences Health Outlook, with
over 3000 downloads of the report, a circulation of
1000 reports, over 100 questions on the Dutch Life
Sciences and Health Cluster and 16 national and
international presentations.
For those who are new to the Dutch Life Sciences and
Health a short history of the development of the Life
Sciences and Health Outlook may be useful. See box
History on page 4 for a brief overview.
Dutch Life Sciences & Health Outlook 2013
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Firstly, the team paid extra attention to the development of Small and Medium
Sized companies and employment/talent capture. The ability to attract, retain
and develop talent at all levels is a major point of competition between the life
sciences and health clusters, also a major focus of the Regiegroep lsh and its
Human Capital Agenda. Secondly, we are proud to announce that we have
developed a set of indicators to capture the applied research output from a large
part of the Dutch Healthcare System. All involved in the Life Sciences and
Health Outlook, have long expressed the wish to incorporate the interface
between firms and the health system more systematically.
The Samenwerkende Topklinische opleidings
Ziekenhuizen (STZ), some of its key members
and our academic council and network have
developed tested and collected in a pilot the set of
indicators success.
New
The consequences of economic crisis, the transformation of the Dutch Life
Sciences and Health towards a more Small and Medium Sized Company base
and the rising demands and cost pressures on the Dutch Healthcare system are
the drivers behind the main additions to the 2012 Dutch Life Sciences and
Health Outlook.
The selected motto for this year is “From Bench to Bed”. We were
particularly interested in the cluster reaction towards the austerity budgets
across Europe. Pressures on support from government on investing in life
sciences cluster, support programs as well as cost pressures in the health
systems have a transformational effect on life sciences clusters around the
world.
On June 14 we will present the results on the health outlook part. We are
very excited about this major addition and hope that more health
organizations active in applied research will join for the Life Sciences and
Health Outlook 2014.
The main findings are:
1. Small and medium companies are compensating the restructuring
of large companies,
in rate of employment and number of companies.
2. A) The number of products (drugs) at the final phases of clinical
trials has increased,
as well as the total number of products in development, and the
number of medical devices on the market.
B) The revenue of small and medium companies has declined,
the large companies showed growth.
3. The cluster attracts private investments,
public investments are under pressures.
The Dutch Life Sciences and
Health Cluster need a stronger
focus on patient value
Entrepreneurs and industry
must be clearer on what
the benefits of their
treatments, medical devices
and diagnostics are for
patients and society.
Dutch Life Sciences & Health Outlook 2013
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Last but not least, the Dutch Life Sciences & Health Outlook 2013 also contains
information on the three spin-off projects of The Decision Group and one
research initiative at Erasmus University in 2012, which are tools to invest in
a healthy cluster; investing in value for patients and talent.
a) The Harvard Style Business Case written on the successful biotech
company Prosensa and its interplay and development inside and outside
the Dutch Life Sciences Cluster, which can be used for teaching at various
universities and for promotional activities within the Netherlands or abroad
b) A two year study on determining the Value of Diagnostics has been
successfully concluded. The pilot studies have clearly shown ways in which
the adoption rates of good new diagnostics can be improved. This is of key
importance for both the improvement of the Dutch healthcare system and the
success of the companies involved.
c) A major effort has been made over the past 5 years with close cooperation
with Harvard on Patient Relevant medical Outcome Measures. The
outcome measures and the related developed proprietary methodology are the
core of Value Based Healthcare which aims at better healthcare and cost
effectiveness. Amongst Catherina Ziekenhuis Eindhoven, St. Antonius
Ziekenhuis Nieuwegein, Erasmus MC Rotterdam have shared part of their first
results.
The convergence of biotech firms with pharmaceutical and med tech
companies, as well as the increasing technological spill overs between the so
called blue, green, white and red biotech firms were the main points of
attention in 2012. Definitions collection methods and procedures were
revisited and consequently changed, the 2010, 2011 data corrected
accordingly in the 2011 Life Sciences and Health Outlook.
A combination of the latest economic/cluster theory and policies, experience
with and an understanding of the life sciences industry and the healthcare
sectors as well as international business and academic experience had led to
this request. In 2010, the main focus on the Outlook was on (a) the selection
and comparative measuring of the core 6 cluster performance measures, (b)
the selection of the 7 key international “sister clusters” and (c) the
determination of existing and preferred cluster and specific Life Sciences and
Health National Policies.
Prof. Dr Fred van Eenennaam and ir Maarten
Koomans were asked in 2009 whether they were
willing and able to compile a yearly Dutch Life
Sciences and Health Outlook.
History
In 2011 the Outlook team focused on (a) the improved rigor of the
methodology, the data collection and the cross checking of data, (b) whilst
helping set the life sciences and cluster strategic agenda from the firms
perspective in the cluster.
Dutch Life Sciences & Health Outlook 2013
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Industry is seeking ways to substantiate their claims using these new
methodologies and approaches. Our Academic Council and the team
envision this development as essential to increase “valorization” from a
firms/investors perspective for fast adoption. The Value Based Healthcare
Center Europe supports the developments in The Netherlands and Europe.
d) At the Erasmus University a study has been started to investigate
(Greenfield) Foreign Direct Investment attractions to life
sciences and health clusters. To attract “Smart Money”, to develop the
Dutch Life Sciences and Health cluster further in the future has been
identified as an important policy area.
We hope you enjoy reading this year’s Dutch Life Sciences and Health
Outlook. Please provide us with suggestions, feedback and the occasional
encouragement. If you have any questions, please feel free to contact us.
We very much view our work as work in progress in a rapidly transforming life
sciences and health cluster. Therefore, we encourage you to participate in
next year’s outlook and welcome your help in research ideas and making
them happen.
On behalf of the team of The Decision Group; Kim Brüheim and Bodgan Toma,
business analysts.
With warmest regards,
Prof. dr. Fred van Eenennaam
Partner The Decision Group, Institute & Ventures
Ir. Maarten Koomans
Partner The Decision Group, Institute & Ventures
-Academic partners- -Developer- -Partners-
Dutch Life Sciences & Health Outlook 2013
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1. Small and medium companies are
compensating the restructuring of large
companies,
in rate of employment and number of
companies.
2. A) The number of products (drugs) at the
final phases of clinical trials has
increased,
as well as the total number of products in
development, and the number of medical
devices on the market.
B) The revenue of small and medium
companies has declined,
the large companies showed growth.
3. The cluster attracts private investments,
public investments are under pressures.
Dutch Life Sciences & Health Outlook 2013:
-Siz
e-
-Ou
tpu
t-
-In
pu
t-
Conclusions Context Advise
Providing
affordable
care
Health
Wealth
A. Keep, attract and develop
talent
B. Partnerships, co-
operations, and strategic
dialogues become
increasingly more important
C. Clarification on public
investments
(Large) companies are
rebuilding their business
models towards products
that add value to patients,
with a greater reliance on
partnerships.
Summary
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Should you like to make a decision based on:
Performance and
progress
See: 18 - 22
Small & Medium Companies
See : 22, 23, 24, 35, 47, 49
Growth in products
See: 37, 38, 50, 51
Cluster attracts Private
Investments
See: 43, 44, 55 - 57
Health Cluster
See: 29, 30, 31, 68-76
Patient Value
See: 10, 11, 60, 61, 64
Revenue
See:
39, 40, 52
Spin offs
See: 28, 64, 66, 67
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Contents of the Dutch Life Sciences Outlook 2013
Since 2009, a yearly systematic Outlook is presented on the performance and progress of the Dutch life
sciences & health (LSH) cluster.
Key Outcomes Dutch Life Sciences & Health Outlook
Executive summary 17
The Outlook 2013 has been compiled with the utmost care based upon available data in 2012. The authors are well aware of the fact that the data position on the Dutch
LSH cluster needs to be improved by the cluster to allow for adequate monitoring of the effects of proposed strategic policy actions. Readers are advised to contact the
authors of the report to avoid potential misinterpretations of the reported results. The authors welcome suggestions for improvement on the Outlook 2014 (please contact
1
3
2 Dutch life sciences & health cluster success
Measuring performance and progress 32
Contents
4
Monitoring Cluster Size, Input and Output
Size: Number of companies & Employment 46
Output: Revenue & Number of products 50
Input: Public investments & Private investments 53
5
Strategic assessment of the cluster
Advice and Spin offs 58
Appendices
A. History & development of the Outlook 78
B. Monitoring methodology 90
C. About the involved partners 117
D. Bibliography 121
E. Glossary of terms 126
F. Consulted experts and organizations 132
6
Applied Research
Health Outlook – Health Cluster 2013 68
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Context of the Dutch Life Sciences & Health Outlook 2013
The Dutch cluster stands out by providing affordable care that add value to patients and professionals in
the context of more pronounced government budget reduction.
Health Wealth
Economic, financial and Euro crisis combined with
budget reduction and change of government structure
and policy
Higher life expectancy and increased incidence of
chronic illnesses a.o. lead to increased demand for
health
Image might be subject to copy-right. www.futuretimeline.net, accessed on 31.01.2013
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Affordable care that adds value to patients
(Large) companies are rebuilding their business models towards focused products that add value to
patients, with a greater reliance on partnerships.
1. From being opportunistic—pushing a broad array of
compounds on the premise that every chance is worth
exploring—to being focused on the most promising areas of
science and most attractive target customers.
2. They will transition from fully integrated pharma companies to
greater reliance on partnerships to manage risk and return,
across both product pipelines and functions.
3. They will gradually change their emphasis from science-driven
therapeutics to customer solutions with the drug at the center.
4. They will replace functional organization models with business
units that encourage more integrated decision-making, coupled
with direct accountability for the consequences of those
decisions.
In 2004, Gilbert et al. wrote an article on the need to
rebuild the business model; with four main suggestions
to improve.
Source : http://windhover.com Source : http://sync.nl
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From Bench to Bed
Insurance companies responsible for the “Bed” side partner with industry responsible for the “Bench” side.
Investments in better diagnostics, less invasive treatments and prevention of complications, that improve outcomes against costs. LSP &
Achmea are willing to invest €50 mio and Holland Venture & Menzis have set up an investment fund of €8 mio.
Source : http://www.achmea.nl Source: http//www.hollandventure.com/
Example of innovation that lead to patient value are Rijnstate and Prosensa.
Rijnstate, one of 28 STZ
hospitals in The Netherlands,
developed a practical solution
to the waiting lists for its CT
scan: the “walk-in- CT scan”.
Patients do not need an
appointment and without a
Scan-schedule, patients can be
seen and scanned directly,
often combined with an
outpatient visit.
Source: http://www.rijnstate.nl.
Duchenne Muscular
Dystrophy (DMD ) is a rare
disease and responsible
for respiratory and cardiac
failure. Prosensa develops
with the help of many
partners, a drug that may
improve these patients
outcomes.
Source: Prosensa, press release 08th of Nov 2011
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Definition of the Dutch Life Sciences & Health cluster (1/2)
In 2012 the scope of the Outlook was primary on the “Bench” side.
Agriculture Chemicals and
energy
Food
Technology
Red biotech
Pharma
Medical technology (incl. imaging)
Bio-materials
Nutriceuticals
Agrofood
Horticulture &
propagation
materials
Chemical
Energy
Health
Engineering
Regenerative medicine
Healthcare
Creative
industry
Education
and other
Healthcare delivery
2012
Scope of
the outlook
Applied research
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Definition of the Dutch Life Sciences & Health cluster (2/2)
Monitoring innovation “From Bench to Bed” broadened the scope of the Dutch lsh Outlook 2013 by
capturing partnership between life sciences and healthcare.
Agriculture Chemicals and
energy
Food
Technology
Red biotech
Pharma
Medical technology (incl. imaging)
Bio-materials
Nutriceuticals
Agrofood
Horticulture &
propagation
materials
Chemical
Energy
Health
Engineering
Regenerative medicine
Healthcare
Creative
industry
Education
and other
Healthcare delivery
2012 2013
Scope of
the outlook
Applied research
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Focus of the Dutch Life Sciences & Health Outlook 2013
The performance of the innovative core of the cluster of both the industry and part of the teaching and
specialized care and cure providers is the focus of the Dutch LSH Outlook 2013.
Fundamental Research NGI, Hubrechts Institute
R&D
companies
• Drugs and
Medical Device
companies
• (Pharma, Biotech,
Medical
Engineering)
Specialized Risk Capital
VC Firms, Angel Networks
Specialized
Research service
providers
• Contract
Manufacturing
Organizations,
• Contract Research
Organizations
• Clinical studies
• Synthesis services Specialized Business
Services
Banking, Accounting, Legal
Health Insurance
Laboratory, Clinical Testing
Laboratory Equipment
Analysis Software
Diagnostic Substances
Containers and Packaging
Medical Equipment
Ophthalmic Goods
Educational Institutions Universities
Cluster Organizations
Niaba, Nefarma, Biofarmind, LSH
Chemical products
Bioelectronics,
Bioinformatics
Regulation
CCMO, METCs, FDA, EMA
Translational Research TiPharma, BMM, CTMM
Marketing & Sales
Reimbursement
Healthcare Insurance Companies,
VWS dep of GMT
core value chain1
Manufacturing
Distribution
Specialized
Research
suppliers
Suppliers Value Chain Service Providers
© 2013 The Decision Group
The cluster map shows both the value chain and supporting industries for the Dutch LSH cluster. Within
the cluster, the Outlook 2013 focus is on the innovative core of the value chain, from Bench to Bed
1referred to in topsector plan as innovative core The cluster map is in the process of international recognition
Care and Cure
providers
* Teaching and
Specialized Hospitals
*16 out of 28 STZ hospitals are included
2012
2013
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The Outlook 2013 edition : Health evolvement
The Outlook 2013 edition features new indicators capturing the applied research in Dutch hospitals:
“From Bench to Bed”.
Outlook 2010 edition: Proof of Concept
Provided a proof of concept with academic grounding and involvement of entrepreneurs.
Outlook 2011 edition: Data position Improved the data position with more up to date and primary data.
Outlook 2013 Edition: Health included
Benefits for the readers of the 2013 edition:
Forecasts and trends in the Dutch life sciences
cluster
New indicators on applied research and innovation in
healthcare and cooperation with the innovative industry
Broadened scope “From Bench to Bed”
Analysis & Tools for a healthy cluster
Nyenrode LSH | Biotech Outlook 2010
Monitoring and improving
the red biotech cluster
The Nyenrode LSH | Biotech Outlook is created under supervision of prof. dr Fred van Eenennaam and Ir Maarten Koomans.
Draft – for High Profile Group review only – October 2009
Cover page to be updated
Outlook 2012 edition: Forecast & Survey
Data position over the years enables comparison and trends. A survey was held to check expectations.
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Firm by firm rechecked database
A detailed recheck of the entire updated database was done for the Dutch Life Sciences & Health Outlook
2013. A new and separate database was built to analyze data on applied research within hospitals.
Per company data
1. Education 2. Funda-
mental
Research
3. Transla-
tional
Research
4. R&D 5. Manufac-
turing
6. Specialized
research
supplier
7. Specialized
research
services
8. Marketing &
Sales
9. Distri-
bution
10. Care &
Cure provider
yes
yes yes yes
Data on the
activities in The
Netherlands of
each company
within the value
chain
Data on employment, and
revenue from Chamber of
Commerce and annual
reports
Data on number of products
from Thomson Pharma,
ClinicalTrials.gov, survey and
company websites
Prosensa Therapeutics b.v.
Protein Labelling Innovation
ProteoNic
Proxy Laboratories
PURAC biomaterials
Firm by firm checked database
Additional internal and external validity checks performed:
• Databases
• 25+ sources
• New checks on public investments
• Annual reports checked for revenue
• Recheck KvK (chamber of commerce) update
• Patent database check
• Hospital data from over 10
sources within individual
hospitals
Database Healthcare
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Key outcomes Dutch Life Sciences & Health Outlook 2013
Executive Summary
© IRRI Images
1
U2OS cells by Leonie Kollenstart, Bsc. – Student Biomedical Sciences
(green=actin, blue=nucleus)
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Copyright © 2009-2013 The Decision Group.The Dutch Life Sciences & Health Outlook 2013 appeared in February 2013.
Contact The Decision Group: +31(0)346-574942, [email protected], www.thedecisiongroup.nl
1. Small and medium companies are compensating the restructuring of large
companies,
in rate of employment and number of companies.
2. A) The number of products (drugs) at the final phases of clinical trials has
increased,
as well as the total number of products in development, and the number of medical
devices on the market.
B) The revenue of small and medium companies has declined,
the large companies showed growth.
3. The cluster attracts private investments,
public investments are under pressures.
Key conclusions Dutch Life Sciences & Health Outlook 2013:
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The performance of the Dutch life sciences cluster (2010-2011)
The Dutch life sciences cluster displays growth in number of companies and products, at the same
revenue level, with raised private investments and with beginning decreasing public investments.
Summary of cluster performance (2010-2011)
SIZE
Number of companies: 343 (+4.3%)
Employment: 22.732 jobs (-6.7%)
OUTPUT
Revenue: 17.8 b€ (+0.6%)
Number of products: 122 (+10%)
INPUT
Public investments: 291 m€ (-2%)
Private investments raised:1887 m€ (+574%)
Note: 2011 data is the most recent available at the moment of publication for all indicators
Monitoring methodology
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Dutch Life Science Performance in the international context
Above average performance for private investments raised is displayed by the Dutch LSH cluster when
compared to international key clusters. Boston area scores highest on 3 out of 6 performance indicators.
2011
The Dutch LSH cluster1 compared to international key
life sciences & health clusters scores:
Above average for private investment (1887 m€ ) due to
the acquisition of Crucell for 1687 m*€
Below average ( the average amount of public
investments in key cluster for 2011 was 304 m € ) on
public investments raised (291 m€ in 2011) due to
decreasing investments in PPPs.
1 A more detailed account of this data is given in Chapter 3.
Performance 2011
* The average exchange rate $/ € of 2011 was used as published
by the Dutch Central Bank.
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Dutch Life Science Progress in the international context
Above average progress in the number of products, private investments and slightly above average in
number of companies.
2010-2011
The progress of the Dutch lsh cluster compared to
international key life sciences & health clusters
scores:
Above average on:
• Private investments (574% increase from
297m€ in 2009 to 1887m€ in 2010)*1.
• Number of products (10% increase from 111
in 2010 to 122 in 2011).
• Small and Medium companies have grown in
employment by 5%
Below average for 3 out of 6 performance indicators.
• Public investments decreased from 297 m€ in
2010 to 291 m€ in 2011, mainly due to a
decrease in matching investments in PPPs by
knowledge institutes2 .
• Employment has decreased from 24.385 to
22.732 mainly due to restructuring of large
companies.
• Revenue has grown although below average
(from 17.7 to 17.8 b€).
Progress
1 A more detailed account of this data is given in Chapter 2 and 3. 2 For Private investments raised and number of products the scale is adjusted to make a practical comparison possible
2010 - 2011
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Dutch Life Science cluster performance compared with the Dutch economy
In 2010-2011 the LSH employment growth rate declined by 6.7% compared to a slight increase by 0.5% in the
Netherlands. The LSH company growth (4%) outperforms the Dutch economy (2%), both have a decreasing
trend.
Source: Employment growth the Netherlands: CBS statline 2012 and The Decision
Group database
Source: Company growth in the Netherlands CBS statline 2012 and The Decision
Group database
In 2010-2011 the average growth rate of employment of the
LSH cluster decreased by 6.7%, while the employment of the
LSH cluster by companies < 500 employees has grown by 5%.
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Dutch Life Science cluster - forecast on cluster size
Based on preliminary data* on 2012, a steady growth of employment with less than 500 employees is
forecasted towards 8800 employees. The growth in number of companies is expected to continue to 350.
* See appendix B on calculation page 101
2012 estimate
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Location of new started companies based on postal - codes Newly started companies location ( < 25 km )
Location Abbott and MSD ( 1381 CP and 5342 CC)
Newly started companies location ( 26 < km < 219)
Restructuring opens new doors for the Dutch lsh cluster
Newly started companies are founded next to the production facilities of large companies that are
restructuring their activity in the Netherlands.
35 % of the new companies are located at
less than 25 km from Abbott and MSD
Source: FD, 28-12-2010
Source: FD, 23-6-2011
2.6 km
6 km
10.2 km
2.6 km
22.5 km
19.5 km
114 km
172 km
107 km
110 km
103 km
70 km
65.7 km
109 km
55.4 km
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Output – Number of drugs & Revenue
The number of drugs in development has risen by 19.6% from 56 to 67 products. The revenue of medium
sized companies shows a decline from 1.4 to 0.8.
- Source: The Decision Group database -
93
104 111
122
67 56
- Source: The Decision Group database -
18.7 18.2
17.8 17.7
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Input - Private investments
Cluster attracts private investments. Almost 90% of the private investment raised are due to the acquisition
of all shares of Crucell by J&J. Venture capitalist investments increased by 11% compared to 2010.
Sources: Press releases individual companies, NVP report 2012
167
622
280
1887
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Invest in a healthy cluster
The Dutch LSH cluster expects to cope with the restructuring of large companies. For a healthy cluster
investments in talents and partnerships, co-operations and strategic dialogues are desirable.
Business knowledge Cluster building
Public investment Investment climate
Partnerships, co-operations,
and strategic dialogues
between life science and health
strengthen the cluster.
Clarification on Public
Investments and alignment
and coordination of policy.
Policies with a focus on
patient value, at the level of
interactions between life
sciences and health: From
Bench to Bed.
Attract and hold life sciences &
health talents on various
levels, from PhD positions to
analysts and technicians.
Keep track of the developments
on healthcare abroad with new
concepts as Value Based
Health Care and Value of
Diagnostics.
Encourage the healthy private
investment climate via tax
regulations and other policies.
Show the success of the cluster to
the rest of the world by monitoring
performance.
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Spin off projects of the outlook for a healthy cluster
Patients and companies can make use of 3 spin off projects, to assess and increase the focus on patient
value and cost efficiency improvement.
The Harvard style case written on the successful biotech
company Prosensa and its interplay and development inside
and outside the Dutch Life Sciences Cluster, which can be
used for teaching at various universities and for promotional
activities within the Netherlands or abroad
* For details see page 61, 63, 64
A two year study on determining the Value of Diagnostics
has been successfully concluded. The pilot studies have
clearly shown ways in which the adoption rates of good new
diagnostics can be improved. This is of key importance for
both the improvement of the Dutch healthcare system and
the success of the companies involved.
A major effort has been made over the past 5 years with close cooperation with
Harvard on Patient Relevant medical Outcome Measures. The outcome
measures and the related developed proprietary methodology are the core of
Value Based Health Care which aims at better healthcare and cost
effectiveness. Amongst Catherina Ziekenhuis Eindhoven, St. Antonius
Ziekenhuis Nieuwegein, Erasmus MC Rotterdam, have shared part of their first
results. Industry is seeking ways to substantiate their claims using these new
methodologies and approaches. Our Academic Council and the team envision
this development as essential to increase “valorization” from a firms/investors
perspective or fast adoption “From Bench to Bed” from a
health/medical/patient/health economics view.
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Robert E. Burke – Professor at the George Washington University
Fred van Eeneennaam – Professor of Strategy and Dynamics of Strategy
Leonard H. Friedman – Professor at George Washington University
Christian H.M. Ketels – Principal Associate Harvard Business School
Göran Lindqvist - Principal Associate at the CSC Stockholm School of Economics
Victoire de Margerie – Professor at Grenoble School of Management
Health Outlook 2013
The focus on Patient value is supported by a monitor on the applied research. 16 hospitals which are doing
applied research provided data. The definition of health indicators was supported by an international
academic council.
Overview of the participating hospitals
which provided data on applied research.
146 Dutch Hospitals include 8 University Medical
Centers and 28 STZ hospitals engaged in research
Members of the international academic advisory council:
Total 146
General hospitals 84
of which
SAZ 40
OvA 16
STZ 28
University Medical Centers 8
Specialized hospitals 32
of which
Audiology Canters 5
Dialysis Centers 3
Epilepsy Centers 2
Cancer Centers 10
Radiotherapy centers 6
Asthmatics Centers 3
General 3
Rehabilitation institutions 22
1. St. Antonius Ziekenhuis Nieuwegein
2. Atrium Medisch Centrum
3. Catharina Ziekenhuis Eindhoven
4. HagaZiekenhuis
5. Jeroen Bosch Ziekenhuis
6. Maasstad Ziekenhuis
7. Meander Medisch Centrum
8. Medisch Centrum Alkmaar
9. Medisch Centrum Haaglanden
10. Medisch Centrum Leeuwarden
11. Onze Lieve Vrouwe Gasthuis
12. Reinier de Graaf Gasthuis
13. Rijnstate
14. Sint Lucas Andreas Ziekenhuis
15. Spaarne Ziekenhuis
16. St. Elisabeth Ziekenhuis Tilburg
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Sneak preview of the performance of the Dutch health cluster
Measured in publications citied, STZ has a significant contribution to applied research output with 2075
publications citied in 2010 and scores 1.3 on impact compared to the worldwide average of 1.0.
Since 2007 the number of publications citied has grown steadily.
1473 1527
1806
2075
All but one of the STZ members (blue bars) rank above the
international citation score average. A STZ publication scored 1.3**
on average (30% above international average) on this citation index
Source: STZ and The Decision Group database
Source: STZ & NFU (red bars are Academic Medical Centers)
** Self citations are not included; citations taken from web of science
– Sneak preview of research performance in Dutch healthcare –
All indicators are presented in spring 2013
31
see also www.lifesciencesoutlook.com
Learn, Share and Inspire
The Life Science and Health Outlook aims for further improving. Learn from it, share it, get inspired and
join the Health Outlook 2013 and LSH Outlook 2014.
June, 14th 2013 February 2014
*
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Dutch life sciences & health cluster success 2
Measuring performance and progress
C. Elegans – Celdivision by J. Van Der Berg, Bsc. – Student Biomedical Sciencs
(red=membrane, green=histones)
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Performance indicator #1: Number of companies
The total number of companies increased by 4.3% from 329 (2010 ) to 343 (2011). The number of companies
with 1 to 5 employees have steadily contributed to the growth of the Dutch LSH cluster by 6.2%.
- Source: The Decision Group database -
298 314
329 343
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #1: Number of companies
The Dutch cluster shows above average growth of 4.3% in number of companies, when compared to key
international clusters which have grown jointly by 3.2% between 2010 and 2011.
Note: The UK cluster is defined as the East and Southeast of England, including London area; Check the radar diagram on p.20 on compared progress.
- Source: The Decision Group database, avaiable cluster reports and direct contact with cluster organizations -
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Performance indicator #2: Employment
From 2010 until 2011 employment decreased by 6.7% mainly due to the restructuring of large companies. 36%
of the labor force is employed by companies with 51-500 employees whereas in 2010 the share was 21.5%.
- Source: The Decision Group database -
24095 24255 24385 22732
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #2: Employment
All key clusters show a small growth in employment. The Dutch cluster shows a decrease in employment
after the restructuring. U.K. cluster is the leading employer, here the labor force has grown by 7%.
- Sources: The Decision Group database, available cluster reports and direct contact with cluster organizations -
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Performance indicator #3: Number of products
The number of drugs in development has risen by 19.6% from 56 to 67 products. The number of medical
devices remains at the same level when compared to 2010.
- Source: The Decision Group database -
1Medical devices include devices & diagnostics that alter or measure body’s functions. See for a detailed definition and overview Appendix B on Monitoring methodology.
93 104
111
122
67 56
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Performance indicator #3: Number of products
The Netherlands displays, across the years, an average growth rate of 9.7% in the total number of
products, which situates it above the 6% average growth rate displayed by the international key clusters.
- Sources: The Decision Group database, available cluster reports and direct contact with cluster organizations -
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Performance indicator #4: Revenue
Medium companies reported a decrease of 57% in revenue from 1.4 to 0.8 in 2011. The revenue reported by
large companies has increased by 3% compared to 2010, causing a total revenue that slightly increases.
- Source: The Decision Group database -
18.7 18.2 17.8 17.7
*
* The fluctuation in total revenue is due to dwindling revenue reported by companies with up to 250 employees.
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #4: Revenue
The Dutch cluster keeps its 4th position for the second year in row. Compared to last year the overall
revenue of LSH clusters has risen by 6.7%.
- Sources: The Decision Group database, available cluster reports and direct contact with cluster organizations -
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Performance indicator #5: Public investments
The level of total public investments decreased by 2.1 %: public investments in PPPs decreased by 2.6% from
150 m€ in 2010 to 146 m€ in 2011 while the level of matching investments and subsidies stayed constant*.
*Note: Investments counted are those that have been granted. In the calculation of the performance indicator, funding is equally distributed over the years for which it is intended to be used,
even though the budget spending per year can differ.
248 248
297 291
- Sources: NGI, The Decision Group analysis
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #5: Public investments
The public investments in the Dutch LSH cluster are 2nd highest with 291m€ in 2011 compared to the key
clusters in absolute terms.
1373
817
991
1158
- Sources: The Decision Group database, available cluster reports and direct contact with cluster organizations -
Note: Investments counted are those that have been granted. In the calculation of the performance indicator, funding is equally distributed over the years for which it is intended to be used, even
though the budget spending per year can differ.
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Performance indicator #6: Private investments raised
Private investments maintain their volatility. 90% of the private investment are due to the acquisition of all
shares of Crucell by J&J. Venture capitalist investments increased by 11% in 2011 from 145 to 161 m€.
Sources: Press releases individual companies, NVP report 2012
167
622
280
1887
See for a detailed definition and overview Appendix B on Monitoring methodology.
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1 The international data include the major PIPE deals, IPOs and FOPOs from a range of sources. See also Appendix B monitoring methodology for a more detailed description of the main
contributions to the performance indicators used in this Outlook.
Performance indicator #6: Private investments raised
Considering the absolute value of private investment raised, the Dutch LSH cluster takes the 3rd position
with 1887 m€ when compared to the key clusters.
- Sources: The Decision Group database, available cluster reports, financial reports & website and direct contact with cluster organizations -
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Monitoring Cluster Size, Input and Output
Key performance indicators:
• Size : Number of companies & Employment
• Input: Public investments & Private investments
• Output: Revenue & Number of products
3
Zebra fish larvae 24hr - by Anneloes Dummer, Bsc. – Student Biomedical Sciencs
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Performance indicator #1: Number of companies (1/2) Life Science
Companies with up to 5 employees will grow in 2012 by 5%. These companies represent 57% of the total
number of companies in the Dutch Life Science cluster in 2012.
- Source: The Decision Group database; 2012 data has reference date October 2012 -
57%
9% 12%
8%
14%
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #1: Number of companies (2/2) Life Science
Since 2005 the Dutch LSH cluster displays continuous growth to 361 companies. The base is given by the
increase in number of companies with 1 to 5 employees, which have grown at an average rate of 4.8%.
- Source: The Decision Group database; 2012 data has reference date October 2012 -
228
249
276
298 314
329
361 344
Forecast Factual data
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #2: Employment Life Science
The share of employment with top 10 companies has decreased from 80 % (19567 employees) in 2010 to
73 % (16648 employees) in 2011.
- Source: The Decision Group database -
Company Location /Division Employment 2009 ( in NL ) Employment 2010 ( in NL ) Employment 2011 ( in NL ) Type
1 MSD 8675 8563 5500
R&D, manufacturing, marketing &
sels
2 Philips Philips Healtcare 3353 3353 3192
R&D, manufacturing, marketing &
sels
3 Johnson & Johnson 1329 1585 1370
R&D, manufacturing, marketing &
sels
J&J/ Crucell 495 751 541
Janssen Biologics 834 834 829
4 Medtronic 1084 1084 835
R&D, manufacturing, marketing &
sels
5 Abbott 958 986 2057
R&D, manufacturing, marketing &
sels
6 TEVA Pharmachemie 643 643 560
R&D, manufacturing, marketing &
sels
7 Astellas Pharma 575 575 571
R&D, manufacturing, marketing &
sels
8 DSM DSM Biologics 403 403 403
R&D, manufacturing, marketing &
sels
9 Novartis 400 436 436
R&D, manufacturing, marketing &
sels
10 PURAC Biomaterials 354 354 354
R&D, manufacturing, marketing &
sels
Company Location /Division Employment 2009 (in NL) Employment 2010 (in NL) Employment 2011 (in NL) Type
1 MSD 8675 8563 5500 R&D, manufacturing, marketing & sales
2 Philips Philips Healtcare 3353 3353 3192 R&D, manufacturing, marketing & sales
3 Johnson &
Johnson 1329 1585 1370 R&D, manufacturing, marketing & sales
J&J/ Crucell 495 751 541
Janssen Biologics 834 834 829
4 Medtronic 1084 1084 835 R&D, manufacturing, marketing & sales
5 Abbott 958 986 2057 R&D, manufacturing, marketing & sales
6 TEVA
Pharmachemie 643 643 560 R&D, manufacturing, marketing & sales
7 Astellas
Pharma 575 575 571 R&D, manufacturing, marketing & sales
8 DSM DSM Biologics 403 403 403 R&D, manufacturing, marketing & sales
9 Novartis 400 436 436 R&D, manufacturing, marketing & sales
10 PURAC
Biomaterials 354 354 354 R&D, manufacturing, marketing & sales
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #2: Impact of restructuring
Less employment with large companies is compensated by the growth rate of employment with companies
with less than 500 employees by 9% in 2012; a positive reaction to restructuring of large companies.
- Source: The Decision Group database -
Forecast Factual data
9%
5%
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #3: Number of products (1/2)
The top 25 companies with the most products in development are responsible for 70% of all products that
are currently being developed in the Dutch LSH cluster (84 out of 122)1.
1 The main sources for the number of drugs that companies have in development are the Thomson Pharma database, Medtrack, website searches, and Biotech Gate.
2 The main source for the number of medical devices that companies have in development is website searches for the individual companies. Philips is not included in this list as no reliable estimate
can be made based on available data on products in development and no open source is available on the number of products in development.
3 Medical Medical devices include devices & diagnostics that alter or measure bodily functions. See for a detailed overview Appendix B on Monitoring methodology.
- Source: The Decision Group database -
Company Drugs¹ Phase 1 Drugs Phase 2 Drugs Phase 3 Medical Devices in Development ²,³
Abbott B.V. 5 2
Akkolens international 2
AM-Pharma 2
Blue Medical Devices 10
Cavadis B.V. Utrecht 2
Crucell 2 3
Elana b.v. 2
Emultech bv 2
Enceladus Pharmaceuticals B.V. 1 1
Expand Biotechnology BV 2
Galapagos 1 1
Genmab B.V. 1 1
IS diagnostics 4 5 1
Kiadis Pharma 2
Medisse BV 5
Medspray 3
Merck BV 1 1
Mucosis 1 1
Mymetics BV 1 2
OctoPlus N.V. 1 2
Pantarhei Bioscience 2 2 1
PPD 2
Prescient Medical Europe 2
Prosensa Therapeutics b.v. 1 1
Skyline Diagnostics 3
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Performance indicator #3: Number of products (2/2)
In 2011 the Dutch total number of products increased by 10%, from 542 to 595.
- Source: The Decision Group database -
595
542
473
422
93 104 111 122
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #4: Revenue impact of restructuring
The Revenue increased slightly (by 0.1 billion €) in 2011. Restructuring of large companies is expected to
lead to a decrease in revenue by 1.0 b€ in 2012.
- Source: The Decision Group database – forecast based on actual numbers of dismissals in 2012 -
1Assuming that all other factors remain unchanged (ceteris paribus)
1.0b€
Forecast Factual data
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Performance indicator #5: Public investments (1/2)
Overall by 2015, the level of public investments is expected to shrink by 20%. The level of subsidies will
remain constant.
Source: NGI, Life Sciences & Health, news reports, program websites, government innovation budget 2012
Forecast Factual data
*
* Public investments for 2016 are hard to predict, however we know it will be significantly less due to the currently effect of the new funding policy which is hard to predict too.
Note: Investments counted are those that have been granted. In the calculation of the performance indicator, funding is equally distributed over the years for which it is intended to be used, even
though the budget spending per year can differ.
See for a detailed definition and overview Appendix B on Monitoring methodology.
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Note: Investments counted are those that have been granted. In the calculation of the performance indicator, funding is equally distributed over the years for which it is intended to be used, even
though the budget spending per year can differ. The dashed blocks show the impact of the closing of the top institutes, assuming that all other investments remain at the level of 2012.
Performance indicator #5: Public investments (2/2)
With actual policies, by 2015, matching investments in PPPs by knowledge institutes are expected to be
insignificant while the matching investments by private partners are likely to stay at the level of 2010/2011
Source: NGI, Life Sciences & Health, news reports, program websites, government innovation budget 2012
Forecast Factual data
*Public investments for 2016 are hard to predict, however we know it will be significantly less due to the currently effect of the new funding policy which is hard to predict too.
*
See for a detailed definition and overview Appendix B on Monitoring methodology
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Data for 2012 on Venture capital is not yet available. Depicted in the graph is 2012 prediction based on available data on August 2012. See details on calculation in appendix B page 113.
Performance indicator #6: Private investments raised (1/3)
Although private investments keep their volatile character, the Dutch lsh cluster proves to be healthy;
since 2009 to 2012 venture capital investments have increased at an average growth rate of 11%.
Source: press releases of individual companies
Forecast Factual data
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1 The potential value of deals for the Dutch lsh cluster is calculated based on employment of the company in the Dutch cluster and therefore varies from the total value of the strategic alliances.
Performance indicator #6: Private investments raised (2/3)
After 2009 the total value of strategic alliances signed continued to decrease. In 2012 the Dutch lsh
cluster managed to sign startegic alliances with potential of 48 m€ *.
*Source: press releases individual companies, moment of measurement August 2012
Forecast Factual data
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Performance indicator #6: Private investments raised (3/3)
In 2012 private investments have increased mainly due to IPOs and milestone payments. Across the
years, in average, 63% of the private investments is raised through venture capital investments.
Source: press releases of individual companies
395
167
321
260
215
304
Forecast Factual data
Data for 2012 on venture capital is not yet available. Depicted in the graph for 2012 is a prediction. See appendix B on calculation page 113
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Strategic assessment of the cluster
Advice and Spin offs
© Knitty Mary
4
© Hyperoxidation and oligomerization of PrxII (green) halts cell cycle progression when H2O2 levels are high. (JCB 175(5) TOC1)
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Invest in a healthy cluster
The Dutch LSH cluster expects to cope with the restructuring of large companies. For a healthy cluster
investments in talents and partnerships, co-operations and strategic dialogues are desirable.
Business knowledge Cluster building
Public investment Investment climate
Partnerships, co-operations,
and strategic dialogues
between life science and health
strengthen the cluster.
Clarification on Public
Investments and alignment
and coordination of policy.
Policies with a focus on
patient value, at the level of
interactions between life
sciences and health: From
Bench to Bed.
Attract and hold life sciences &
health talents on various
levels, from PhD positions to
analysts and technicians.
Keep track of the developments
on healthcare abroad with new
concepts as Value Based
Health Care and Value of
Diagnostics.
Encourage the healthy private
investment climate via tax
regulations and other policies.
Show the success of the cluster to
the rest of the world by monitoring
performance.
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Cluster building - Crossover between Life Sciences and Health
The increase need for a focus on patient value and cost reductions determines the life sciences, industry
and healthcare to cooperate and start strategic dialogues on all markets.
Strategic Dialogues on the delivery, insurance, purchasing and product market
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Cluster building – Focus on Patient Value
Define areas and medical conditions where in the care delivery value chain, can patient value be
increased. A shift from me-too products, towards focused products that add value to patients
Examples - Focus areas
Rare diseases
Personalized
Medicine
(Neuro)Degenerative
diseases
Care Delivery Value Chain
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Investment climate – Monitoring Performance
The Dutch LSH cluster outperforms the international clusters in progress amongst other things in the
number of products. Showing the success to the world might attract new investors.
Monitoring Performance
Life Sciences Health
N.E.A. invests for the first time in a Dutch Biotech Company.
Source: www.prosensa.nl
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Investment climate – Encourage private investments
Current tax rules and policies may hold back private investment. Stimulating policies and tax regulations
will strengthen the Dutch LSH cluster.
Report by PWC on the investment climate
Source: pwc.nl
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Public Investment – Start with Patient Value
In the current LSH landscape, the discussion is mainly focused on cost reductions. Our aim is to turn the
discussion and start with Patient Value and Health Outcomes.
It is our aim, as Value Based Health Care – Center Europe,
to share key practices, our experiences and developed
methodology on Value Based Health Care to put Patient
Value at the core. www.vbhc.nl
Create patient centered relations with your customers or how
to generate growth with pricing pressures. The key to an
affordable healthcare includes a strong and responsible role of
the life sciences industry.
Spin off project of the Outlook
Source: www.vbhc.nl Source: Porter, M.E. (2010) What is value in healthcare? The New England
Journal of Medicine, 363;26
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Public Investment – Clarification on Public Investments
In addition, alignment, coordination and clarification should be created and continued to guarantee
stability and progress of the cluster.
Source: Topsector Life Sciences & Health – Dutch LSH Conference, Leiden, December 11, 2012 - www.topsectoren.nl
Regiegroep Life Science & Health
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Business Knowledge – Talent
A shortage of technical personnel may also have an impact on the LSH cluster. Attracting and keeping
talent is essential for a successful cluster; o.a. the Regiegroep LSH is active to stimulate talent.
“Next to a good investment climate, attracting AND keeping talent is essential for a successful cluster” - Göran Lindqvist
Principal Associate at the Center for Strategy and Competitiveness (CSC) at the Stockholm School of Economics and Cluster Observatory project manager
Spin off project of the Outlook
Source: www.topsectoren.nl
Source: NRC Dagblad, November 7, 2012
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Business Knowledge – Developments (abroad)
Next to talent, business knowledge will be strengthened by keeping track of national and international
developments including emerging clusters.
Spin off project of the Outlook
Did you know that in The Netherlands:
• Diagnostics influences as much as 60-70% of healthcare decision
making ?
• Expenditure on diagnostics is even less than 6% of the total health
expenditure?
Today, too often diagnostics is regarded as a non value adding healthcare
activity or as black box. Policymakers and managers tend to see treatment
and diagnostics as one, however there is a huge difference. Treatment
cures people. Diagnostics improves clinical decision making, which has an
impact on treatments. This fundamental shift in thinking causes an
increasing number of organizations to struggle with the central question;
how to assess the value of diagnostics.
The Decision Group performed a study on diagnostics; and developed a
framework to asses the value. www.thedecisiongroup.nl
Source: www.thedecisiongroup.nl Source: www.vhbc.nl
Source: hcmatters.com
Source: C&EN – Chemical & Engineering News
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Applied Research
Health Outlook – Health Cluster 2013
© Michael Tam
5
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Health Outlook 2013
The strategic dialogues focus on patient value and are supported by a monitor on the applied research;
the Health Outlook.
The objective of the Outlook is to annually measure
1. Valorization by hospitals
2. Cooperation of hospitals with the innovative
industry in the Dutch Life Sciences & Health
cluster.
The result is to
1. Contribute to further support, connect, and improve
the innovative Life Sciences & Health cluster (by
enriching the existing Life Sciences Outlook with
information on applied research )
2. Create a valuable tool as basis for healthcare policy
decisions (for individual hospitals and at national
level.)
Health Outlook: monitoring From Bench To Bed
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Total 146
General hospitals 84
of which
SAZ 40
OvA 16
STZ 28
University Medical Centers 8
Specialized hospitals 32
of which
Audiology Canters 5
Dialysis Centers 3
Epilepsy Centers 2
Cancer Centers 10
Radiotherapy centers 6
Asthmatics Centers 3
General 3
Rehabilitation institutions 22
Health Landscape 2013
The Dutch Healthcare system consists of 146 Dutch Hospitals; including 8 University Medical Centers and
28 STZ hospitals engaged in applied research.
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Activities of STZ hospitals
STZ hospitals distinguish themselves on 3 pillars: top-clinical and top-referential patient care, education,
and applied research and innovation.
Sources: 1) STZ, Toelatings- en hervisitatiecriteria (July 2011), 2) STZ, 15 jaar STZ: Wat STZ-ziekenhuizen verbindt, 3) STZ, expertisecentra in beeld (2011), STZ, STZ opnieuw in beeld
(2010), 4) internal communication 5) STAKEHOLDER OPINIONS ON THE POSITION OF THE NETHERLANDS IN CONDUCTING CLINICAL DRUG TRIALS (2011)
Patient care
122+ expertise centers
(providing tertiary care with
>30% referrals from outside
the catchment area)
27% of topclinical care,
compared to 64% by the
academic hospitals
42% of all Dutch hospital care
(A+B segment)
870.000 hospital admissions
per year
General
28 hospitals with approx. 90.000 employees (approx. 4500 staff, 2000 residents, and 60 professors)
Education
50% of medical-specialist
education (26% academic
hospitals)
36% of all AIOS (51%
academic hospitals)
198 nurses being trained (311
academic hospitals, 2009)
Research
Focus on applied research and innovation
METCs, biobanks and participation in Parelsnoer
Excellent networks for gynaecology, cardiology, diabetes and
hypertension
Plan for improvement of research infrastructure
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Value adding activities for the innovative industry by STZ hospitals
The STZ hospitals perform many education and research activities across the value chain with value for
the innovative industry.
Education
• Business
courses
• Biology
• Chemistry
Fundamental
research
• Stem cell
research
• Development
al biology
Translational
research
• Target Finding,
Validation, and
Animal Models
• Lead selection and in
silico Modeling
• Predictive Drug
Disposition and
Toxicology
• Biomarkers and
Biosensoring
• Drug Formulation,
Delivery, and
Targeting
• Pharmaceutical
Production
Technologies
R&D & Manufacturing
Discovery, research,
product & process
development of :
• Antibodies
• Anti-infectives
• Biosimilars
• Cell therapy
Self-initiated
heatlhcare research:
R&D based on physican
expertience and practical
healthcare improvement
Marketing
& sales
• Marketing
activities
• Commerci
alization
• Pricing,
reimburse
ment
Distribution
& storage
• Logistics
Care & Cure
providers
• Therapy
• Diagnosis
Specialized research suppliers • Supplying biochips
• Supplying bioelectronics
• Supplying bioinformatics
Specialized research services • Contract manufacturing
• Contract research
• Drug delivery
- Illustrative purpose - © 2011 The Decision Group
Executing clinical phase II-
IV studies
Adoption of new
products and
treatments
Activities in the value chain of the Dutch Life Sciences & Health cluster
phase III phase IV
Activities of STZ hospitals
phase II
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Focus of the Health Outlook
The focus of the health outlook includes all activities at the end of the value chain, which improve the
result of cooperation with the innovative industry.
© 2011 The Decision Group
1. Executing clinical phase II-IV studies
2. Self-initiated healthcare research
3. Adoption of new products and treatments
Activities of (STZ) hospitals that provide highest value for the
innovative industry:
Focus of the Health part of the Outlook
Example of the adoption of new products and
treatments by an STZ hospital
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Performance indicators
Performance indicators monitor the success of a cluster or set of organizations. Typically, performance indicators cannot be influenced directly by policy.
Steering indicators
Steering indicators can be influenced directly by policy makers. Typically, steering indicators are selected
that have high impact on the success of a cluster or set of organizations.
Monitoring & Measuring
As with the Life Sciences Outlook, the Health outlook is based on indicators: a) Performance indicators
and b) Steering indicators.
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Measuring contribution of Dutch healthcare
The contribution of healthcare to applied research in the Dutch LSH cluster is measured in 8 key
performance and 7 key steering indicators covering both industry sponsored and self-initiated research.
Performance Indicators
INPUT
Industry investments
Hospital R&D investments
SIZE
Size of clinical trials (number of patients in trial)
Inflow of patients from outside catchment area
OUTPUT
Lead time of clinical trials
Number of publications
Number of products
Number of new protocols and treatments
Number of best practices shared among hospitals
Costs of research projects
Level of expertise
Staff responsiveness
Participation of staff in the development, undertaking and
use of research
Presence of research support offices and transfer facilities
in each hospital
Cooperation relationships of hospital research
Key Steering Indicators
* Adoption rate of new products is a new indicator expected to be added in the 2014 version
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Sneak Preview - KPI 7 Output: Number of Publications
Measured in publications citied, STZ has a significant contribution to applied research output with 2075
publications citied in 2010 and scores 1.3 on impact compared to the worldwide average of 1.0.
Since 2007 the number of publications citied has grown steadily.
1473 1527
2075
All but one of the STZ members (blue bars) rank above the
international citation score average. A STZ publication scored 1.3**
on average (30% above international average) on this citation index
Source: STZ and The Decision Group database
Source: STZ & NFU (red bars are Academic Medical Centers)
** Self citations are not included; citations taken from web of science
– Sneak preview of research performance in Dutch healthcare –
All indicators are presented in spring 2013
1806
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Appendices
© Ty Night
7
A. History, development and structure of the Dutch Life Sciences Outlook 78
B. Monitoring methodology 90
C. About the involved partners 117
D. Bibliography 121
E. Glossary of terms 126
F. Consulted experts and organizations 132
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Appendix A – History, development and structure of the Dutch Life Sciences & Health Outlook
Using the entrepreneurs’ perspective
© Branco Social Media
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Focus of the Dutch Life Sciences & Health Outlook 2013
Building on the Dutch Life Sciences Outlook 2010, 2011 & 2012, this edition focuses on forecast and
trends and “From Bench to Bed”.
© 2013 The Decision Group
- For ongoing analysis on the cluster progress, check the website of The Decision Group (www.thedecisiongroup.nl) or contact the researchers -
Nyenrode LSH | Biotech Outlook 2010
Monitoring and improving
the red biotech cluster
The Nyenrode LSH | Biotech Outlook is created under supervision of prof. dr Fred van Eenennaam and Ir Maarten Koomans.
Draft – for High Profile Group review only – October 2009
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Partners to create the Dutch Life Sciences and Health Outlook 2013
The Life Sciences & Health innovation program and The Decision Group proudly present the fourth
edition of the yearly Outlook on the Dutch LSH cluster.
The Outlook is commissioned by the ‘STZ-
ziekenhuizen’.
STZ stands for the Dutch association of Top
Clinical Hospitals. STZ members can be seen
as high care hospital providers and top
referral centers. In the same time STZ plays
an important role in applied medical research
having the aim to provide effective and
efficient care with focus on patient value.
Contacts:
Maarten Rook
Norbert Groenewegen
www.stz-ziekenhuizen.nl
The Outlook is created in cooperation with the Grenoble School of Management, School of
Public Health, part of The George Washington
University, Stockholm School of Economics
The Outlook is created in cooperation with
consulting firm The Decision Group.
The Decision Group helps clients take better
strategic decisions, using methods such as
strategic dialogue and strategic alignment. The
creation of the Outlook is supervised by Prof. dr.
Fred van Eenennaam, and ir. Maarten Koomans
managing partners of The Decision Group.
Contacts:
Prof. dr. Fred van Eenennaam
Ir. Maarten Koomans,
Kim Bruheim, MSc.
Bogdan Toma, BA, BSc
+31(0)346-574942
www.thedecisiongroup.nl
Contact:
Prof. dr Fred van Eenennaam
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International Academic Advisory Council
The International Academic Advisory Council1 has been set up, with the members providing advice on the
development of the Outlook, cluster policies and methodology development.
Göran Lindqvist
Principal Associate at the Center for Strategy and
Competitiveness (CSC) at the Stockholm School of
Economics and Cluster Observatory project
manager. His research focuses on agglomerations,
clusters, cluster initiatives, and cluster policy.
Robert E. Burke
Professor at the George Washington University
Professor Burke is a medical sociologist and a
nationally known expert in long-term care, with
extensive experience in developing, evaluating and
implementing health care policy and managing
multidisciplinary professional staff.
Leonard H. Friedman
Professor at the George Washington University
Dr. Leonard Friedman is an expert on the
mechanisms of organizational change and strategic
decision-making in health service organizations.
Victoire de Margerie
Professor at Grenoble School of Management
Dr. de Margerie is specialized in strategy, technology
management and corporate governance and holds
various management and executive positions in
Germany, France and the USA in multinational
industrial groups. She holds numerous positions in
boards of listed companies.
Christian H.M. Ketels
Principal Associate Harvard Business School
Dr. Christian Ketels is a member of the Harvard
Business School faculty at Professor Michael E.
Porter’s Institute for Strategy and Competitiveness
and Director of The Competitiveness Institute (TCI), a
global network of professionals interested in
competitiveness and cluster development.
1The council meets twice a year with Prof. dr. Fred van Eenennaam as chair and Kim Bruheim, MSc. as secretary of the council.
Fred van Eenennaam
Professor of Strategy and Dynamics of Strategy
Professor Fred van Eenennaam is an expert on
corporate governance & strategy. He is also well
known for his expertise in the life sciences and
healthcare industry.
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Methodology development (1/3)
The first Outlook was developed in 2009 to provide a proof of concept with academic grounding and
involvement of entrepreneurs.
*The High Profile Group (HPG) is made up of highly regarded professionals that are noted for their achievements in business, science and politics. The HPG was formed to advise on
future organization and direction of the Dutch Life Sciences & Health Initiative and gives recommendations regarding the opportunities, hurdles and future of the sector.
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Methodology development (2/3)
The Life Sciences Outlook continuously develops with regard to the academic grounding, the
involvement of entrepreneurs and the methodology.
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Methodology development (3/3)
The Life Sciences Outlook 2012 edition had more focus on forecasting and methodology was reconfirmed
internationally and by various academic insights.
* On August 29, 7 affiliates of the Microeconomics of Competitiveness (MoC) network of Prof. Michael Porter of Harvard Business School, took the
initiative to found a European Chapter of the network
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Cluster timeline
The Life Sciences Outlook 2013 edition includes Health. The methodology for Health indicators was
approved by the International Academic Advisory Council and STZ.
Health considered to be
included
Development of health
indicators
Commitment
TDG to continue monitoring
the LS&H
Validate methodology
International Academic
Advisory Council
Validate methodology
Pilot health indicators
launched
Partnership
TDG and STZ
collaborate
Monitoring
Top-sector and LS&H
monitor
Agenda
Top-sector present
agenda
Support withdrawn
LS&H quit
New support
NIABA takes over part of
LS&H
Academic gounding
Involvement
entrepreneurs
2012 2013 Set up dialog Set up agenda Data collection Draft report 2012
JAN –MAR 2012 MAR –JUNE 2012 JUNE –SEPT 2012 OCT –DEC 2012
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What is the structure of the Dutch Life Sciences Outlook?
Monitoring of the cluster success and key business impact areas is used to improve the cluster compared
to international key LSH clusters.
Dutch LSH cluster;
Key recommendations
Improving the Dutch LSH cluster compared to
selected international key LSH clusters .
Improving
Dutch LSH cluster;
Cluster success
Measuring performance and progress
Dutch LSH cluster;
Key business impact areas
Strategic assessment of progress
Monitoring
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Why is a successful cluster of importance?
The focus of the Outlook is on the perspective of entrepreneurs. Entrepreneurs are more successful when
they operate in an internationally successful trading cluster with a strong local dynamic.
Prof. Fred van Eenennaam and Prof. Michael Porter jointly work
on the application and development of cluster theory.
Prof. Dr. Fred van
Eenennaam, founder and
chairman of The Netherlands
Center for Competitiveness,
has been put in the limelight by
Prof. Dr. Michael Porter. He is
now included in the Harvard
Business School,
Microeconomics of
Competitiveness Affiliate Hall of
Fame.
The Diamond Model by Prof. Michael Porter can be used to
assess the competitiveness of clusters.
Prof. M. Porter and prof. F. van Eenennaam at
the opening of the Nyenrode Life Sciences &
Healthcare Institute (May 13, 2009).
Prof. F. van Eenennaam is co-
chairman of the global impact
council of the Microeconomics
of Competitiveness initiative
under the leadership of Prof.
Porter’s Institute of Strategy
and Microeconomics of
Competitiveness of Harvard
Business School, to which 80
universities and business
schools from around the world
are affiliated.
- For ongoing analysis on the cluster progress, check the website of The Decision Group (www.thedecisiongroup.nl) or contact the researchers -
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Further development of monitoring methodology
The focus of this year has been on “From Bench to Bed”, monitoring and improving the Dutch life
sciences & health cluster.
2) DEFINITIONS
Definitions of the key performance
indicators
3) MEASURING
Data collection for the key
performance indicators
MONITORING METHODOLOGY
1) CHOICES
Choice of the key performance
indicators
Actions/adjustments:
The KPIs were validated by
results of the European
Commission project: EU
Biocluster Project "Regional
Biotechnology"
The KPIs are used as starting
points for a European Cluster
assessment project
Connection is made with cluster
observatory
Actions/adjustments:
Wider cluster definition to take
the context of the cluster more
into account
Adjusted & validated definitions
(e.g. addressed issue of related
industries)
Focus in monitoring on core
value chain of the cluster to
capture the core of the cluster
Actions/adjustments:
Development of firm by firm
checked database (1000+
companies checked)
Use of all available Chamber of
Commerce data on employees,
companies and revenue (5000+
records checked)
Review of all press releases of
publicly known strategic alliances
of Dutch companies
Cross checks of data with 100+
data sources
Used data from 10 individual
international cluster organizations
© 2013 The Decision Group
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International connect
Cooperation is started within an international network of life sciences clusters to create an internationally
validated methodology for cluster monitoring.
participating clusters in CEBR SIG session on cluster assessment (December 15th, 2011, Brussels)
International network of involved life sciences
& health clusters
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Appendix B – Monitoring methodology
© IITA Image Libary
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Background on Monitoring methodology
The Monitoring methodology of the Life Sciences Outlook consists of: 1) choices, 2) definitions, and 3)
measurement of the key performance indicators.
2) DEFINITIONS
Definitions of the key performance
indicators
3) MEASURING
Data collection for the key
performance indicators
The key performance indicators are selected
to best reflect the success of the Dutch LSH
cluster:
Cluster Size
1. Number of companies
2. Employment
Cluster Output
3. Number of products
4. Revenue
Cluster Input
5. Public investments
6. Private investments raised
The data collection methodology is set
up to provide accurate measurements:
MONITORING METHODOLOGY
1) CHOICES
Choice of the key performance
indicators
The key performance indicators are
defined to best reflect the success of
the Dutch LSH cluster:
© 2013 The Decision Group
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What are the choices of the key performance indicators?
The overall Dutch LSH cluster success is measured using three value drivers and six key performance
indicators.
Cluster input
5. Public investments (€)
6. Private investments raised (€)
Cluster size
1. Number of companies (#)
2. Employment (employees)
Cluster output
3. Number of products (#, drugs, devices, technologies)
4. Revenue (€)
DEFINITIONS MEASURING CHOICES
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How are the key performance indicators selected? (1/2)
Choices are based on desk research, literature studies and an extensive strategic dialogue with
entrepeneurs and academic partners.
Hypotheses Framing Business
impact areas
Feb-Mar ‘09 Apr-May ‘09 May 13 ‘09
Sep-Oct ‘08
Research &
analysis
Set DIRECTION Create FOCUS
De
sig
n a
pp
roac
h Gather sector
opinions and
validation
Interviews round 2
Seminar
Interviews round 1
phase 1 phase 2 phase 3
Research &
analysis
Present Business impact areas:
Life Sciences Healthcare Event 2009
Opening Nyenrode Life Sciences &
Health Care Institute
Research &
analysis Validation and
fine tuning
Fix FRAMEWORK
phase 4
Validate RESULTS
Validate in field
Analysis and
draft
Jun-Aug ‘09
DEFINITIONS MEASURING CHOICES
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How are the key performance indicators selected? (2/2)
Choices are validated in 2010 by various academic contacts, business experts and other researchers.
Presentation to high
profile group
Sep-Oct ‘09 Nov 4 ‘09 Jun-Sep ‘10
Academic REFLECTION
Final check
in field
phase 5 phase 6 phase 7
Finalize
Outlook 2010
Set Academic COUNCIL
phase 8
Validate METHODOLOGY
Reflection with
Academic partners
Validation of KPIs
with academic
council Validate
methodology
Nov 29 ‘10
CEBR Meeting
Cambridge
KPIs and KSIs Health Outlook were
developed , introduced and approved
by the members of the academic
council and STZ members.
phase 9
Jan ‘11
Validate
data
DEFINITIONS MEASURING CHOICES
April ‘13
KPIs and KSIs
Health
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What were design considerations?
The main goal of the design was to find a set of indicators that would help to improve the cluster success.
• The focus of the Dutch Life Sciences and Health Outlook is on economic and social success of the Dutch LSH cluster, as scientific success is the focus of others like the Dutch Royal Academy of Sciences (KNAW). The Academic council has been discussing to add a measure on patents.
• The combined set of performance indicators gives insight in the success of the entrepreneurs in the Dutch LSH cluster.
Focus
• To ensure that the performance indicators is practical for policy makers, a small controllable set of performance indicators is selected that can be influenced and steered upon.
Use
• The scope of the Dutch Life Sciences Outlook is the Dutch LSH cluster. Scope
• High social interests in new healthcare products (performance indicator “Number of products”).
• Taking into account the stage of development of the Dutch LSH cluster (performance indicators “Number of companies” and “Employment”)
• Relatively high dependence on private and public investments in biotech, due to the large and high risks involved in their R&D (performance indicators “Public investments” and “Private investments raised”).
Tuning to Dutch LSH
• The approach has been validated in the field by 40+ expert interviews, seminar with 300 participants, academic reflection and tested with finished report 2010. Validation
• The performance indicators monitor success. This way the performance indicators directly match the experience of entrepreneurs. There is a clear distinction compared to other cluster monitors like the 12 pillars of competitiveness used in the Global Competitiveness Index of the World Economic Forum. There, competitiveness involves the factors that enable a nation or cluster to be successful. (“We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country”, The Global Competitiveness Report 2008-2009, World Economic Forum).
Aim
All choices made to select the performance indicators are based on the added value for entrepreneurs.
DEFINITIONS MEASURING CHOICES
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What was the starting point for selecting the six key performance indicators?
The six key performance indicators were selected from in total over 50 different indicators, resulting from
international best practices and academic literature.
Six performance indicators
Cluster Size
1. Number of companies
2. Employment
Cluster Output
3. Number of products
4. Revenue
Cluster Input
5. Public investments
6. Private investments raised
DEFINITIONS MEASURING CHOICES
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Definitions - scope
The Dutch LSH cluster contains all companies that 1) perform R&D on products or 2) manufacture
products that alter or measure bodily functions (human or animal) aimed at improving health effects,
including supporting and related industries, with direct focus on these companies.
1Based on the cluster theory M. Porter – Harvard Business School.
Green
biotechnology /
food
Dutch LSH cluster
Medical Technology
White (industrial)
biotechnology
Medical
Engineering
Nutriceuticals
Red
Biotechnology
Engineering
The Life Sciences Outlook monitors the Dutch LSH cluster, which includes red biotech,
medical technology and the pharmaceutical industry, and overlaps several other clusters1.
© 2013 The Decision Group
Scope of the
Dutch Life
Sciences
Outlook 2011,
2012 and 2013
Biomaterials
DEFINITIONS MEASURING CHOICES
Pharmaceutical Industry
Applied research
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Definitions - focus (1/2)
The Dutch Life Sciences Outlook focuses on the value chain of the Dutch LSH cluster.
Suppliers (e.g. lab equipment, power
supply, water supply)
Service Providers
(e.g. legal, consultants, bank)
Value Chain (companies or organization
with activities that directly
contribute to the development
of products aimed at
improving health effects)
DEFINITIONS MEASURING CHOICES
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Focus of the Dutch Life Sciences & Health Outlook 2013
The Dutch Life Sciences and Health Outlook focuses on the core value chain.
Fundamental Research NGI, Hubrechts Institute
R&D
companies
• Drugs and
Medical Device
companies
• (Pharma, Biotech,
Medical
Engineering)
Specialized Risk Capital
VC Firms, Angel Networks
Specialized
Research service
providers
• Contract
Manufacturing
Organizations,
• Contract Research
Organizations
• Clinical studies
• Synthesis services Specialized Business
Services
Banking, Accounting, Legal
Health Insurance
Laboratory, Clinical Testing
Laboratory Equipment
Analysis Software
Diagnostic Substances
Containers and Packaging
Medical Equipment
Ophthalmic Goods
Educational Institutions Universities
Cluster Organizations
Niaba, Nefarma, Biofarmind, LSH
Chemical products
Bioelectronics,
Bioinformatics
Regulation
CCMO, METCs, FDA, EMA
Translational Research TiPharma, BMM, CTMM
Marketing & Sales
Reimbursement
Healthcare Insurance Companies,
VWS dep of GMT
core value chain1
Manufacturing
Distribution
Specialized
Research
suppliers
Suppliers Value Chain
Service Providers
© 2013 The Decision Group
1referred to in topsector plan as innovative core The cluster map is in the process of international recognition
Care and Cure
providers
* Teaching and
Specialized Hospitals
*16 out of 28 STZ hospitals are included
2012
2013
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Definitions - value chain
The value chain consists of the main activities that enable the development, production and use of new
drugs and medical technologies.
Education
• Business
courses
• Biology
• Chemistry
Fundamental
research
• Stem cell
research
• Development-
al biology
Translational
research
• Target Finding,
Validation, and
Animal Models
• Lead selection and in
silico Modeling
• Predictive Drug
Disposition and
Toxicology
• Biomarkers and
Biosensoring
• Drug Formulation,
Delivery, and
Targeting
• Pharmaceutical
Production
Technologies
R&D &
Manufacturing
Discovery, research,
product & process
development of :
• Antibodies
• Anti-infectives
• Biosimilars
• Cell therapy
• Drug delivery
• Gene therapy
• Generics
• Nucleaic acid drugs
Marketing &
sales
• Marketing
activities
• Commercializa-
tion
• Pricing,
reimbursement
Distribution
& storage
• Logistics
Care & Cure
providers
• Therapy
• Diagnosis
Specialized research suppliers • Supplying biochips
• Supplying bioelectronics
• Supplying bioinformatics
Specialized research services • Contract manufacturing
• Contract research
• Drug delivery
- Illustrative purpose - © 2013 The Decision Group
DEFINITIONS MEASURING CHOICES
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Performance indicator 1: Number of companies (1/3)
Performance indicator 1 is defined as companies in the core value chain of the Dutch LSH cluster that 1)
perform R&D or 2) manufacturing ...
Companies in the core value chain of the
Dutch lsh cluster
that
Definition
The Dutch LSH cluster contains all companies that perform
R&D of products or manufacture products that alter or measure
bodily functions (human or animal) aimed at improving health
effects, including supporting and related industries, with direct
focus on these companies.
• Veterinary companies are included in this definition.
• Companies that develop medical devices based on engineering
are included.
• Blue and green biotechnology companies are not included.
• Nutriceutical companies that are on the intercept between the
green and red biotechnology are not included.
Rationale
The Dutch LSH cluster is defined according to the cluster theory
of Prof. Michael Porter.
DEFINITIONS MEASURING CHOICES
perform R&D or manufacturing
Definition
R&D: “Creative work undertaken on a systematic basis
in order to increase the stock of knowledge, including
knowledge of man, culture and society, and the use of
this stock of knowledge to devise new applications”
(OECD)
Manufacturing “is defined as the physical or chemical
transformation of materials of components into new
products, whether the work is performed by power-
driven machines or by hand, whether it is done in a
factory or in the worker's home, and whether the
products are sold at wholesale or retail. Included are
assembly of component parts of manufactured
products and recycling of waste materials.” (UN)1
Rationale
Companies that perform R&D and manufacturing are
part of the core value chain of the Dutch LSH cluster,
which focuses on being a breeding ground for high-
tech innovation.
1 International Standard Industrial Classification of All Economic Activities, Revision 3, United Nations, 1990, Series M, No. 4, Rev. 3.
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Performance indicator 1: Number of companies (2/3)
or 3) offer specialized research services or 4) are specialized research supplier ...
or
specialized research supplier
Rationale
Definition
Specialized Research Suppliers
are companies whose core business is to supply
products specifically to the R&D companies in the
core value chain.
The relation between companies that are specialized
research suppliers and the R&D companies is very
strong. The companies contribute to the total revenue
of the cluster and are often high- tech companies
themselves.
DEFINITIONS MEASURING CHOICES
offer specialized research
services
Rationale
Definition
Specialized Research Service Providers
are companies whose core business is to deliver
services specifically aimed at the research
activities performed by the R&D companies in the
core value chain. Examples are product
development services, analytical services,
screening, contract manufacturing and contract
R&D to the lsh industry, as well as the
development of platform technologies.
The relation between companies that are specialized
research suppliers and the R&D companies is very
strong. Companies that provide Specialized Research
Services give an essential contribution to the success of
the cluster and are often high-tech innovative companies.
or are
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Performance indicator 1: Number of companies (3/3)
…that are dedicated or diversified private companies within the Netherlands.
dedicated or diversified private companies
within
Rationale
Definition
Rationale
Definition
Rationale
Definition
The Netherlands
Two types of companies are
distinguished:
1. Dedicated companies that only
perform activities in LSH
2. Diversified companies that
perform activies outside of LSH
Both type of companies are included.
• When a company has several
offices in The Netherlands, this is
counted as 1 company in the
number of companies.
• Companies that are taken over by
another firm are no longer
counted as a separate company.
Companies that perform core value
chain activities in the Netherlands.
In practice, a company is included if it
has a department in the Netherlands
in which these activities take place.
Life Sciences Outlook includes:
1. An R&D office in the Netherlands
of a non-Dutch multinational.
2. Trust offices of multinationals that
only function as an administrative
office are not included.
Diversified companies are included,
because they contribute to the LSH
cluster. Their revenue, employment, and
number of products is only counted for
the fraction of their activities in LSH.
The performance indicator counts
independent legal entitities. The
number of offices provides no
additional insight in the success of the
cluster.
Foreign companies with offices in the
Netherlands provide an important
contribution to the cluster, unless they
are trust offices.
DEFINITIONS MEASURING CHOICES
A legal entity, registered in the
Dutch Chamber of Commerce.
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Performance indicator 1: Number of companies
The number of companies in the Dutch LSH cluster in 2011 is based on The Decision Group database
2013.
No assumptions were made for performance
indicator 1.
Methodology
Sources
1 The Decision Group database 2013
2 Contact NGI, TTOs, science parks
3 Chamber of Commerce data available on August 2012
Number of companies in
the Core Value Chain
NL 2010
3431
Main assumptions and consistency checks
Number of
manufacturing
companies
74
1
2
3
Number of
specialized research
service providers
153
1
2
3
Number of R&D
companies
227
1
2
3
Number of
specialized research
suppliers
95
1
2
3
+
1The different types of companies do not add up to 329 as several companies are counted in more than one category.
DEFINITIONS MEASURING CHOICES
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including
Rationale
Definition
Rationale
Definition
Performance indicator 2: Employment
Performance indicator 2 is defined as the employment of all companies in the cluster including all offices
in the Netherlands, for the part of their activities in Dutch LSH cluster.
Employment of all
companies in the cluster
all offices in The
Netherlands
The employment of all companies
included in the Number of
companies (key perf. indicator 1) is
taken into account.
activities in Life Sciences
& Health
Rationale
Definition
Only the employment related to
activities in life sciences & health gives
an indication of the success of the
Dutch lsh cluster.
The employment is only included for
activities in life sciences & health.
The employment for activities that
are not in life sciences & health are
not included. For example: for
Philips, only the employment of
Philips Healthcare is included.
The employment of all offices
located in the Netherlands is
included, independent of the
activities of the offices.
Personnel in the marketing and
sales department of a
pharmaceutical company is not
included, as the Outlook focuses on
activities that directly contribute to
the development of products aimed
at improving health effects.
for the part of their
DEFINITIONS MEASURING CHOICES
Company provides an important
contribution to the LSH cluster (e.g.
it creates a pool of experienced
management that can work in
LSH).
The combined group of employees of
the companies in the core value chain of
the cluster is an essential asset of the
cluster which enables startup of new
companies and growth of the cluster.
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Performance indicator 2: Employment
Employment of the Dutch LSH cluster in 2011 is based on data from the Chamber of Commerce.
• Companies for which no employment
data is available in the Chamber of
Commerce are assumed to have one
employee.
Methodology
1 2 Chamber of Commerce data available on August 2012
Sources
Per company check of annual reports and websites (for the top 10)
+
19.6 All employment data is in thousands
of employees for 2011.
51+ employees
2.6
6-50 employees
0.5
1-5 employees 1
Employment
NL 2011
22.7
1The values can appear erroneous due to rounding.
Main assumptions and consistency checks
a
a
1
2
1
DEFINITIONS MEASURING CHOICES
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Performance indicator 3: Number of products (1/2)
Number of products, performance indicator 3, is defined as the: number of drugs and medical devices...
Products developed by R&D companies in the Dutch lsh cluster can be divided in 2 categories:
1. Drugs: a drug, broadly speaking, is any substance that, when absorbed into the body of a living organism, alters normal bodily
functions (WHO).
2. Medical devices: “Medical device” means any instrument, apparatus, implement, machine, appliance, implant, in vitro reagent or
calibrator, software, material or other similar or related article, intended by the manufacturer to be used, alone or in combination,
for human beings for one or more of the specific purposes of (WHO): • diagnosis, prevention, monitoring, treatment or alleviation of disease
• diagnosis, monitoring, treatment, alleviation of or compensation for an injury
• investigation, replacement, modification, or support of the anatomy or of a
physiological process
• supporting or sustaining life
3. Technology platorm: technology that enables the creation
of products that directly support product development.
Drugs and medical devices are end products that are directly for or used by patients, whereas technology platforms are business to
business products with indirect impact on the well-being of patients.
The number of drugs and medical devices...
in the
Rationale
Definition
Proxy
The focus of the Life Sciences Outlook is on monitoring drugs and medical devices and not on technology platforms.
• control of conception
• disinfection of medical devices
• providing information for medical purposes by means of in vitro examination of
specimens derived from the human body and which does not achieve its primary
intended action in or on the human body by pharmacological, immunological or
metabolic means, but which may be assisted in its function by such means.
DEFINITIONS MEASURING CHOICES
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Performance indicator 3: Number of products (2/2)
...in development within the Netherlands.
The following phases of drug development exist:
1. Pre-clinical phase
2. Phase I
3. Phase II
4. Phase III
5. On market
Medical devices are counted as individual devices if they provide a
different added value aimed at improved health effects (e.g., devices
that are distinguished by different software versions without added
health effects are not counted as separate devices).
The Life Sciences Outlook focuses on products for
which research and development activities take
place within The Netherlands. In practice this
means that a company must have at least one
R&D division within the Netherlands.
The products of multinationals with an office in the
Netherlands that do not perform R&D in the
Netherlands are not included.
in development the Netherlands
within
On-market products are not included, as the added value of
R&D on market products is relatively low
To obtain good insight in the productivity of the
Dutch LSH cluster, only products that are
researched and developed in the Netherlands are
included.
Rationale
Definition
Rationale
Definition
Proxy
The focus of the Life Sciences Outlook is on drugs in phase I-III and
medical devices in development. The product phases are defined in line
with the definition of the FDA/EMA.
DEFINITIONS MEASURING CHOICES
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Performance indicator 3: Number of products
The number of products for Dutch lsh companies are calculated on the level of the individual companies
in the core value chain.
• It is assumed that the Thomson Pharma database is complete regarding the number of drugs in development phase I,II,III.
Companies that are not listed in this database are assumed not to have drugs in phase I,II,III.
• It is assumed that medical device companies provide a complete overview of the products they have in development on their websites.
Medical devices in
development
55
Number of
products NL 20111
1
Sources
2
Thomson Pharma, Individual company websites, The Decision Group database, Medtrack
Individual company websites, The Decision Group database
2
+
Methodology
122
1The values can appear erroneous due to rounding.
Main assumptions and internal and external validity checks
b c
DEFINITIONS MEASURING CHOICES
Drugs in
development
phase I,II,III
67
1
b
c
110
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Performance indicator 4: Revenue
Performance indicator 4 is defined as: The revenue of all companies in the core value chain of the LSH
cluster coming from activities in life sciences & health that are taxed in the Netherlands.
The revenue of all companies in the
core value chain of the lsh cluster
taxed in the
Netherlands
activities in life
sciences & health
coming
from
that
are
Rationale
Definition
Rationale
Definition
Rationale
Definition
Revenue is the total amount of money received by a
company registered in the Netherlands for goods sold or
services provided during a certain time period. It also
includes all net sales, exchange of assets; interest and
any other increase in owner's equity and is calculated
before any expenses are subtracted (based on
Investorword 2010).
Main sources of revenue are product sales, license
deals and government grants.
The revenue of all R&D companies included in
the Number of companies (perf. indicator #3)
is taken into account.
Only the revenue of companies
that pay taxes in the
Netherlands contributes to the
Dutch economy.
Only the revenue of activities
in or related to life sciences &
health give an indication of the
success of the Dutch lsh
cluster.
Revenue is only included from
activites in life sciences &
health. The revenue from
activities that are not in life
sciences & health are not
included. For example: for
Philips, only the revenue of
Philips Healthcare is included.
Corporate tax refers to a
direct tax levied on the profits
made by companies or
associations and often
includes capital gains of a
company. Earnings are
generally considered gross
revenue minus expenses.
DEFINITIONS MEASURING CHOICES
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Performance indicator 4: Revenue
Revenue data is based on Chamber of Commerce data per individual company and cross checked with
annual reports for large companies.
• For the calculation of company revenue it is
assumed that medium-sized companies have on
average a revenue between 8.8 and 35m€ and
small companies have on average a revenue
between 0 and 8.8m€, according to categories
used by the Dutch Chamber of Commerce.
Methodology
1 Chamber of Commerce data available on August 2012, per company
Sources
2 Company annual reports
0.5
Revenue
NL 20111
17.7
Total revenue
Main assumptions and consistency checks
d
1The values can appear erroneous due to rounding.
Small (0-50 empl)
Medium (51-250
empl)
Large (> 250 empl) 1
+
f(x) = (35-8.8)*(x – 50 / (250-50))
g(x) = 8.8 * (x/50)
+
Total revenue 1
g(x)
+
Employment
1
Total revenue 1
f(x)
+
Employment
1
2
16.5
0.8
d
d
DEFINITIONS MEASURING CHOICES
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Mergers and Acquisitions
Overview of public and private investments raised for companies in the core value chain of the Dutch LSH cluster
Adapted from: MaRS BioEntrepreneurship Lecture Series Strategic Financing in Biotechnology, Roman Masley, SHI Capital
Stage
Am
ou
nt
(€)
Angel
Investors
IPO
(In
itia
l P
ublic
Off
erin
g )
PIPE (Private Investments
in Public Equity)
Strategic Alliances • Option structures
• Co-development and production
Tax credits
• In/out-licensing
• Milestone payments
• WBSO • Innovation box
Public
Investments
Private Investments (private equity)
Private Investments (public equity)
FO
PO
(F
ollo
w-o
n P
ublic
Off
erin
g)
Private Investments
(private and public equity)
© 2011 The Decision Group
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Performance indicator 5: Public investments
Public investments, performance indicator #5, is defined as public investments in translational research
and in companies in the core value chain of the Dutch LSH cluster.
Public investments are investments made
by the government using any available
financial instrument, such as funding,
grants, subsidies, and fiscal incentives1.
The core value chain is defined as
companies that perform R&D,
manufacturing,specialized research
service providers, and specialized
research suppliers
Rationale
Definition
Rationale
companies in the core value
chain of the lsh cluster Public investments
Public investments provide a direct
measure of the dedication of a
government to a specific sector.
Public investments in companies in the
core value chain have direct impact on
the economic performance of the Dutch
LSH cluster.
Translational research involves
moving knowledge and discovery
gained from the basic sciences to its
application in clinical and community
settings.
Indirect investments in education are
not included.
Rationale
Definition
translational research
PPPs are considered closely linked
with teh activities of companies in the
core value chain.
in and in
Proxy
The focus of the Life Sciences
Outlook is on public investments in
PPPs.
Definition
DEFINITIONS MEASURING CHOICES
The Life Sciences Outlook includes all
public investments dedicated to the lsh
cluster. For general investments a
materiality2 cut-off is used of 1%: only
general investments above this cut-off are
included in performance indicator #5.
Proxy
1Investments counted are those that have been granted. In the calculation of the performance indicator, funding is equally distributed over the years for which it is
intended to be used, even though the budget spending per year can differ.
2Based on the 1989 definition International Accounting Standard Committee (IASC).
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Performance indicator 5: Public investments
Public investments in the Dutch LSH cluster in 2009, 2010 and 2011 were included at the individual
program and subsidy level and checked with the individual institutions.
Public investments
NL 20101
Subsidies
1 AgentschapNL, NGI, LSH
Methodology
Sources
No assumptions were made to calculate
the public investments.
2 Individual websites of subsidies and programs
+
All monetary amounts are in m€ for 2011.
1
Public investments
in PPPs
146
78
291
1The values can appear erroneous due to rounding.
Main assumptions and consistency checks
Matching investments
in PPPs by
knowledge institutes
67
1
1
2
2
2
DEFINITIONS MEASURING CHOICES
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Performance indicator 6: Private investments raised DEFINITIONS MEASURING CHOICES
Private investments raised is defined as the private investments raised (M€) by companies in the core
value chain of the Dutch LSH cluster.
Definition
Private investments raised is the commitment of private money or capital to
the purchase of financial instruments or other assets so as to gain profitable
returns in the form of interest, income (dividend), or appreciation of the value
of the instrument1.
Private investments raised by the companies in the Dutch lsh cluster include:
Business Angel investments, Venture Capital investments, Venture debt and
Royalties, Initial Product Offerings (IPOs), Private Investment in Public Equity
(PIPEs), Follow-on Public Offerings (FOPOs), and Strategic Alliances.
Proxy
The Life Sciences Outlook uses all private investment raised mentioned
above except business angels investments and strategic alliances that are
not publically known.
Private investments raised
Rationale
Business angels investments and strategic alliances that are not publically
known are assumed to be relatively small compared to the total private
investments in the cluster and it proves very difficult to find reliable data.
Definition
The core value chain is defined as companies
that perform R&D, Manufacturing,Specialized
Research Service Providers, and Specialized
Research Suppliers
Proxy
The Life Sciences Outlook calculates an
investment in a company as an investment in the
cluster if the headquarters is in the cluster. For
companies with their headquarters outside the
cluster, the investment is calculated based on
the % of employees working in the Dutch cluster.
companies in the core value
chain of the LS&H cluster
Rationale
Private investments in companies in the core
value chain have the most direct impact on the
economic performance of the Dutch lsh cluster.
Companies with headquarters and activities in the
cluster will allocate a significant part of the
investment in the cluster
by
1Adapted from Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 271. ISBN 0-
13-063085-3.
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Performance indicator 6: Private investments raised
Private investments raised are based on an extensive scan of press releases of companies in the cluster
and data from the Dutch Private Equity & Venture Capital Association (NVP).
Methodology
Sources
• Strategic alliances include milestone payments that are publicly available. Assumption is that most large milestone
payments are made public.
• Private Investment in Public Equity (PIPEs) or Follow-on Public Offerings (FOPOs) are adressed by a company in
their press releases.
+
All monetary amounts are in m€
for 2011
Total private investments
NL 20111
Venture capital
Initial Public
Offerings (IPOs),
1
1
Strategic alliances
milestone payments
161
1902
0
43
2
1The values can appear erroneous due to rounding.
Main assumptions and consistency checks
x
y
x
DEFINITIONS MEASURING CHOICES
Follow-on Public
Offerings (FOPOs)
2
11
Press releases search on internet
Press releases search on website of all listed core value
chain companies in the cluster
y
Private Investment in
Public Equity (PIPEs)
1687
y
2
1
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Appendix C – About the involved partners
© Blue Ridge Kitties
118
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The Life Sciences & Health - Focusing on patient value
The main objective of STZ is to capitalize on knowledge by stimulating the applied research with focus
on patient value.
The Outlook is commissioned by the ‘Life
Sciences & Health’ innovation program.
Contact: Willem de Laat, MD, PhD
Annemiek Verkamman
+31(0)71-3322033
www.lifescienceshealth.com
Driven by the cluster and empowered by
the Ministry of Economic Affairs, the LSH
program has the objective to improve the
life sciences innovation and investment
climate in the Netherlands. The Outlook
is part of the four-year work plan.
The Outlook is commissioned by the ‘STZ-
ziekenhuizen’.
Contacts:
Maarten Rook
Norbert Groenewegen
www.stz-ziekenhuizen.nl
STZ stands for the Dutch association of Top
Clinical Hospitals. STZ members can be seen
as high care hospital providers and top
referral centers. In the same time STZ plays
an important role in applied medical research
having the aim to provide effective and
efficient care with focus on patient value.
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Value Based Healthcare Center Europe
Value Based Healthcare Center works closely with Prof M. Porter from Harvard Business School on the
concepts of value-based healthcare with the goal of making better decision for patient value.
The Outlook is supported by Value Based Health
Care Center Europe
Contacts:
ir. Maarten Koomans
+31(0)346-574942
www.vbhc.nl
It the vision, and the aim of Value Based Health
Care – Center Europe, to share key practices,
our experiences and knowledge on Value
Based Health Care to put Patient Value at the
core.
Value Based Health Care Center Europe
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see also www.lifesciencesoutlook.com
About The Decision Group
The Decision Group is a niche strategy consulting firm founded in 1996 and with an industry focus on the
healthcare & life sciences industry.
The Outlook is created in cooperation with
consulting firm The Decision Group.
Contacts:
Prof. dr. Fred van Eenennaam,
Ir. Maarten Koomans
Kim Bruheim, MSc.
Bogdan Toma,BA, BSc.
+31(0)346-574942
www.thedecisiongroup.nl
The Decision Group helps clients take better
strategic decisions, using methods such as
strategic dialogue and strategic alignment. The
creation of the Outlook is supervised by prof.
dr. Fred van Eenennaam & ir Maarten
Koomans, managing partner of The Decision
Group.
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Appendix D - Bibliography
© Blue Ridge Kitties
122
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Bibliography (1/4)
1. Abbott (2012) Annual Report 2011, Illinois, USA
2. AgentschapNL (2012) Innovatiekrediet: Jaarverslag 2011, Den Haag, NL
3. AkzoNobel (2012) Annual report 2011: Tomorrow’s Answers Today:, Amsterdam, NL
4. AMT (2012) Annual Report 2011, Amsterdam, NL
5. Astellas (2012) Annual Report 2011, Tokyo, JA
6. Battelle BIO (2010) State Bioscience Initiatives 2010, USA
7. Battelle BIO (2011) The U.S. Biopharmaceuticals Sector: Economic Contribution to the Nation, USA
8. Battelle BIO (2012) Battelle/Bio state Bioscience Industry Development 2012, USA
9. Biocom (2012) 2012 Southern California Economic Impact Report, San Diego, USA
10. C&EM –Chemical and Engeneering News (2011) Big Pharma Talks Emerging Markets Strategy, January 14th, 2011
11. California Healthcare Institute (2010) California Biomedical Industry 2010 Report, La Jolla, CA, USA
12. California Healthcare Institute (2011) 2011 California Biomedical Industry Highlights, La Jolla, CA, USA
13. California Healthcare Institute (2011) 2011 California Medical Technology Industry, La Jolla, CA, USA
14. California Healthcare Institute (2011) California Biomedical Industry 2011 Report, La Jolla, CA, USA
15. California Healthcare Institute (2011) California Biomedical Industry2011 Executive Summary, La Jolla, CA, USA
16. Carlyle & Conan (2012) Life Sciences Trends 2012, Morrisville, USA
17. CCMO (2012) Jaarverslag 2011, Den Haag, NL
18. CLUSNET Final Report by Goran Lindqvist & Orjan Solvell (2011). Organising Clusters for Innovation: Lessons from city regions in Europe
19. Cluster Biotechnology Bavaria (2011) Life Sciences in Greater Munich Biotech Region: Playing in top position in Europe’s Biotech
Champions League, Martinsried, DE
20. Cluster Biotchnology Bavaria (2012) Bavarian Biotech Report 2011, Martinsried, Germany
21. Commission for Technology and Innovation (2012) Annual Report: Innovation Promotion Agency CTI 2011, Bern, CH
123
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Bibliography (2/4)
22. Ernest & Young (2011) Medical technology report 2011
23. Ernest & Young (2012) Beyond borders Global biotechnology report 2012
24. Ernest & Young (2012) Global Life Science report 2012: Progressions. The third place: health care everywhere
25. Federal Department of Economic Affairs, Commission for Technology and Innovation CTI, Innovation Promotion Agency (2012) Activity
Report 2011, Switzerland
26. Galapagos (2012) Rebound; Annual Financial Report 2011, Mechelen, BE Genmab (2012) Turning Science into Medicine: Annual Report
2011, Copenhagen, DK
27. Germany Trade & Invest (2011) The Medical Biotechnology Industry in Germany – Issue 2011/2012, Berlin, DE
28. HBM Partners (2012) HBM Pharma/Biotech M&A Report, Zug, CH
29. HM Government (2012) Strength and opportunity 2011. The landscape of medical technology, medical biotechnology, industrial
biotechnology and pharmaceutical sector in the U.K., Dec 2011, U.K.
30. Info m4 Programme (2011) Personalized Medicine and Targeted Therapies – A New Dimension in Drug Development , Germany
31. Johnson & Johnson (2012) Annual Report 2011, New Brunswick, N.J., USA
32. Kamer van Koophandel Brabant (2012) Innovatiepoort Healthsector – versie III, Eindhoven, NL
33. Massachusetts Biotechnology Council (2011) Biotechnology Industry Snapshot 2011, MA, USA
34. Massachusetts Biotechnology Council (2011) Biotechnology Employment & Investment Update 2009, MA, USA
35. Medical Cluster (2012) Swiss medical Cluster Annual Report 2011, Switzerland
36. Medicon Valley (2012) Medicon Valley Report 2011
37. Medtronic (2011) The face of innovation: Annual report 2011, Minneapolis, MN, USA
38. Medtronic (2012) Transforming for growth: Annual report 2012, Minneapolis, MN, USA
39. Merck (2012) Form 10-K 2011 Merck & Co., Inc., Whitehouse Station, N.J., USA
40. Munich Biotech Cluster (2012) Biotechnology in Munich, Martinsried, Germany
41. Munich Biotech Cluster (2012) m4 Personalized Medicine in Munich, Munich, Germany
124
see also www.lifesciencesoutlook.com
Bibliography (3/4)
42. Nederlandshe Bank , Wisselkoersen 2011, www.dnb.nl accessed on 27.07.2012
43. Netherlands Genomics Initiative (2012) Jaarverslag 2011, Den Haag, NL
44. Novartis (2012) Annual Report 2011, Basel, CH
45. OctoPlus (2012) Annual Report 2011, Leiden, NL
46. NRC Dagblad, November 7th, 2012
47. Pfizer (2012) 2011 Financial Report, New York, N.J., USA
48. Pharming (2012) Annual Report 2011, Leiden, NL
49. Philips (2012) Annual Report 2011, Amsterdam, NL
50. Porter, M.E. (2010) What is value in healthcare? The New England Journal of Medicine, 363;26
51. Price Waterhouse Coopers (2011) California Biomedical Industry 2011 report
52. Price Waterhouse Coopers , California Health Institute (2009) California Biomedical Industry 2009 Report
53. Price Waterhouse Coopers , California Health Institute (2010) California Biomedical Industry 2010 Report
54. Price Waterhouse Coopers, California Health Institute (2012) California Biomedical Industry 2012 Report
55. Price Waterhouse Coopers, Terug naar de eenvoud, ruimte voor ondernemerschap, September 26th, 2012
56. Royal DSM NV (2012) Integrated Annual Report 2011, Heerlen, NL
57. SGS (2012) 2011 Annual Report, Geneva, CH
58. SwedenBio (2012) Sweden – the Country of Life Science 2011
59. SwedenBio (2012) The Swedish Drug Development Pipeline 2011
60. Swiss Biotech(2012) Swiss Biotech Report 2012
61. Teva (2012) Form 20-F 2011 Teva Pharmaceutical Industries Limited, Petach Tikva, ISR
62. World Bank, GDP and Population Statistics, www.worldbank.org, accessed on 03.09.2012
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Bibliography (4/4)
63. www.cbs.nl, CBS Statline, accessed on August 2012
64. www.prosensa.nl, accessed on January 2013
65. www.stz.nl, accessed on January 2013
66. www.vbhc.nl, accessed on January 2013
67. www.topsectoren.nl, accessed on January 2013
See the respective Outlooks for the references of the Biotech Outlook 2010 and the Life Sciences Outlook 2011&2012
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Appendix E – Glossary of terms
© Blue Ridge Kitties
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Glossary of terms (1/3)
Biotechnology :
The OECD has developed both a single definition of biotechnology and a list-based definition of different types of biotechnology (see box
below). The single definition defines biotechnology as “the application of science and technology to living organisms, as well as parts,
products and models thereof, to alter living or nonliving materials for the production of knowledge, goods and services.”
Biotechnology (list-based definition):
• OECD list-based definition of biotechnology techniques.
• DNA/RNA: Genomics, pharmacogenomics, gene probes, genetic engineering, DNA/RNA.
• Sequencing/ synthesis/ amplification, gene expression profiling, and use of antisense technology.
• Proteins and other molecules: Sequencing/ synthesis/ engineering of proteins and peptides (including
large molecule hormones); improved delivery methods for large molecule drugs; proteomics, protein.
• Isolation and purification, signaling, identification of cell receptors.
• Cell and tissue culture and engineering: Cell/tissue culture, tissue engineering (including tissue
scaffolds and biomedical engineering), cellular fusion, vaccine/immune stimulants, embryo manipulation.
• Process biotechnology techniques: Fermentation using bioreactors, bioprocessing, bioleaching,
biopulping, biobleaching, biodesulphurisation, bioremediation, biofiltration and phytoremediation.
• Gene and RNA vectors: Gene therapy, viral vectors.
• Bioinformatics: Construction of databases on genomes, protein sequences; modelling complex biological
processes, including systems biology.
• Nanobiotechnology: Applies the tools and processes of nano/microfabrication to build devices for studying
biosystems and applications in drug delivery, diagnostics etc.
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Glossary of terms (2/3)
Life Sciences companies:
“Those companies that apply the possibilities of organisms, cell cultures, parts of cells or parts of organisms, in an innovative way
for the purpose of industrial production. They may also supply related services and hardware and software.” (source: Action Plan
Life Sciences, Ministry of Economic Affairs).
“Existing technological fields, including biotechnology, pharmacology, biology, chemistry, physics and informatics, are integrated
into this definition” (source: Action Plan Life Sciences, Ministry of Economic Affairs).
Dedicated biotech companies:
Those companies that have their core activities in biotech. This can be R&D, services, manufacturing/producing,
supplying/distributing.
Red Biotech:
Biotechnology with applications in health care.
White Biotech:
Biotechnology with industrial applications.
Green Biotech:
Biotechnology with applications in food or agriculture.
Medical technology companies:
Medical technology companies are involved in research, development, production and marketing of systems and devices for
medical applications in humans and animals. (source: Biotech Gate). See also page 95.
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Glossary of terms (3/3)
Pre-clinical: Refers to the testing of experimental drugs in the test tube or in animals - the testing that occurs before trials in humans may be
carried out. (http://clinicaltrials.gov, January 2011)
Phase I: Initial studies to determine the metabolism and pharmacologic actions of drugs in humans, the side effects associated with
increasing doses, and to gain early evidence of effectiveness; may include healthy participants and/or patients.
(http://clinicaltrials.gov, January 2011)
Phase II: Controlled clinical studies conducted to evaluate the effectiveness of the drug for a particular indication or indications in patients
with the disease or condition under study and to determine the common short-term side effects and risks. (http://clinicaltrials.gov,
January 2011)
Phase III: Expanded controlled and uncontrolled trials after preliminary evidence suggesting effectiveness of the drug has been obtained,
and are intended to gather additional information to evaluate the overall benefit-risk relationship of the drug and provide adequate
basis for physician labeling. (http://clinicaltrials.gov, January 2011)
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Financial terms (1/2)
IPO:
“Initial public offering: the first sale to the public of shares in a company, leading to a stock market listing (flotation).” (Financial Times
Lexicon)
In/out licensing:
“Receiving/granting permission from/to another company or institution to use a brand name, patent, or other proprietary right, in exchange for
a fee or royalty.” (Galapagos, Annual Report 2009)
Venture Capital:
“Private equity or institutional funding for start-up companies considered to have strong growth prospects. There can be several phases of
investment (see seed money), through to the stage when the company is able to go public. Venture capital firms may also provide
management assistance and other services.
This is equity or quasi equity funding provided by professional investors to young, high growth oriented companies, typically to finance their
early market development and growth. As well as funding, investors usually provide value-added services. Funding is often provided in
stages, providing sufficient cash to reach the next milestone.” (Financial Times Lexicon)
Note that this can refer to both non-listed and listed companies.
Private equity:
“Injection of funds by specialised investors into private companies with the aim of achieving high rates of return.
This is equity or quasi equity funding provided by professional investors to mature private companies with the aim of gaining a financial
return through interests, dividends and capital gain at exit.” (Financial Times Lexicon)
Milestone payment:
Payment related to a major achievement in a project or program; In the context of biotech companies, this can be a milestone in the drug
development process, but also the first commercial sale, which requires approvement and reimbursement by payers.
Example:
GSK and Prosensa started an “exclusive worldwide collaboration for the development and commercialisation of RNA based therapeutics for Duchenne Muscular Dystrophy (DMD).” “The financial
terms include a GBP £16 million (USD $25 million) upfront payment. Furthermore, Prosensa is eligible to receive up to GBP £412 million (USD $655 million) in milestone payments if all four
compounds are successfully developed and is also entitled to double-digit royalties on product sales (Oct 2009, www.gsk.com).
Prosensa “received a £7.5m milestone payment from GlaxoSmithKline (GSK) as a result of achieving a data milestone in its Phase IIa open label extension trial of GSK2402968 (PRO051), being
developed to treat Duchenne Muscular Dystrophy (DMD) under its agreement with GSK. The milestone payment was based upon achievement of a successful safety review, with no serious safety
signals observed.” (Oct 2010, www.prosensa.eu)
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Financial terms (2/2)
Alliance
“An agreement between two or more organizations to work together. If two or more organizations are in alliance with each other, they work
together.” (Financial Times Lexicon)
Angel investor
“A wealthy individual who invests in a start-up company with his or her own money. Also known as business angel, the individual provides
equity or quasi equity funding to growth oriented private companies with the aim of achieving a financial return through capital gain at
exit. As well as money, they also provide value-added services.” (Financial Times Lexicon)
Buyout
Buyout refers to a situation where the existing owners of a firm are "bought out" by another group, usually management and/or workers of
that firm. A buyout may be for the whole firm or a division or plant as the case applies. (OECD, Glossary of Statistical Terms)
Management buyout
Management Buy-out or MBO is the term used for the funds provided to enable operating management to acquire a product line or business,
which may be at any stage of development, from either a public or private company.
Leveraged buyout
Leveraged buyout is defined as the purchase of a company or a controlling interest of a corporation's shares or product line or some
business. A leveraged buyout is accomplished with borrowed money or by issuing more stock.
Debt financing
“Debt financing means when a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual
and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay
principal and interest on the debt.” (FundingPost.com, Venture Capital Glossary)
PIPE
“PIPE or Private Investment in Public Equity is a term used when a private investment or mutual fund buys common stock for a company at a
discount to the current market value per share.” (FundingPost.com, Venture Capital Glossary)
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Appendix F – Consulted experts and organizations
© Malevda
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Consulted experts (1/6)
The help and insights of many cluster experts were essential in realizing the Dutch Life Sciences Outlook
2013.
1Participants in the Cluster Assessment meeting organized by the Council of European BioRegions (CEBR) on November 29, 2010 2Dedicated interviews on the creation of the Life Sciences Outlook 2011 3Consulted for data on the performance and progress of the Dutch and key international clusters. 4Participants in the workgroups dedicated to the recommendations formulated in the Outlook 2010.
First name Last name Position Company / Institute Country
Maria Aguirre1 Director BioBasque Agency (SPRI) Spain (Basque Region)
Nic Alexakis3 CEO Swiss Biotech Association Switzerland
Bas Allart3 - Universiteit Utrecht The Netherlands
Nerea Alonso1 General scientific contact, local responsible Biocat Spain (Catalonia)
Pytrik Altena3 Advisor Innovation, Intelligence and Coordination Agentschap NL The Netherlands
Frank Baaijens4 Scientific Director BMM The Netherlands
Soroya Beacher4 Chair OSCAR The Netherlands
Michel Bergh2 Director TTO Erasmus MC The Netherlands
Peter Bertens4 Senior Policy Advisor Nefarma The Netherlands
Peter Biedermann3 Cluster Manager Swiss Medical Cluster Switzerland
Chantal Blok3 Business Development Manager A-skin The Netherlands
Graeme Boyle1 Director Nexxus Scotland
Mariana Brandão1 Director Finance and Human Resources Biocant Portugal (Portugese
science park)
Bjorgunn Bretti3 - Universiteit Utrecht The Netherlands
Jasper Buijs3 Business Development Manager BioMedbooster The Netherlands
Nettie Buitelaar3,4 Managing Director Leiden Bio Science Park The Netherlands
Juan Carmona-Schneider1 Senior Consultant ZENIT GmbH Germany (Ruhr Area)
Hans Clevers4 Director Hubrecht Institute The Netherlands
Fabrizio Conicella1 General Manager bioPMed cluster Italy (Milan)
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Consulted experts (2/6)
First name Last name Position Company / Institute Country
Daan Crommelin4 Scientific Director TI Pharma The Netherlands
Vibeke Dalhoff3 Business Development Manager, Life Sciences Copenhagen Capacity Denmark
Jaap de Boer4 Medical Director Genzyme Nederland The Netherlands
Lou de Leij4 Dean of Research UMCG The Netherlands
Sandra de Wild4 Senior (Policy) Advisor Life Sciences & Health Agentschap NL The Netherlands
Christine d'Oliveira4 - Agentschap NL The Netherlands
Horst Domdey1,3 Managing Director BioM Munich Germany
André Domin1 Director Technologiepark Heidelberg
GmbH Germany
Richard Douglas2 Senior Vice President Genzyme United States
Pauline Evers4 Beleidsmedewerker Medicijnen NFK The Netherlands
Wendy Ewart3 - Medical Research Council United Kingdom
Sanna Fennet3 Management Assistant LURIS, Leiden University The Netherlands
Carola Goossens3 Medewerker Business Development TTO Erasmus MC The Netherlands
Niels Van Gorp Consultant (former) The Decision Group The Netherlands
Timo Gubbens3 Business Development Manager
Life Sciences Center
Amsterdam - TTO Academic
Medical Center Amsterdam
The Netherlands
Nick Guldemond4 Program Director Health TU Delft The Netherlands
Heidi Hamers4 Managing Director CTMM The Netherlands
Jeanine Hendriks4 Co-founder & Head Product Development CellCo Tec The Netherlands
Joris Heus3 PhD TTO AMC The Netherlands
Lia Hoenjet3 - BiomedBooster The Netherlands
Hans Hopmans4 Senior Manager Procurement & Innovation Achmea The Netherlands
Ester Hulleman3 Office Manager TTO VU & Vumc The Netherlands
135
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Consulted experts (3/6)
First name Last name Position Company / Institute Country
Hugo Hurts2 Director Pharmaceutical Affairs and Medical
Technology
Ministry of Health, Welfare and
Sports (VWS) The Netherlands
Stefan Jacobs3 - Innovation Lab TU/e The Netherlands
Stig Joergensen3 - Medicon Valley Alliance Denmark/Sweden
Georg Kaab3 - BioM Munich Germany
Richard Kemper3 Advisor IPC Agentschap NL The Netherlands
Marcel Kenter4 Executive Director CCMO The Netherlands
Hermine Klein1,3 Marketing Manager Leiden Bio Science Park The Netherlands
Wim-Jan Koot3 Team Leader Business Development Valorisatie UMC St Radboud The Netherlands
Saskia Koster-Klarenbeek3 Sales Kamer van Koophandel The Netherlands
Richard Kouri3 Executive Director BioSciences Management NC State University United States
Ada Kruisbeek4 Director TTO VU&VUMC The Netherlands
Rene Kuijten2 Partner Life Sciences Partners The Netherlands
Rene Kuijten4 Partner Life Sciences Partners The Netherlands
Folkert Kuipers4 Dean UMCG The Netherlands
Guus Kullberg4 Director New Business Agis The Netherlands
Colja Laane4 Director Netherlands Genomics Initiative The Netherlands
Gea Lamberts3 Office Manager St. Business Generator
Groningen The Netherlands
Jennifer Landress3 Senior VP & COO Biocom (San Diego) United States
Peter Leeflang2,4 Head of the department innovation and availability
of medical products
Ministry of Health, Welfare and
Sports (VWS) The Netherlands
Dink Legemate4 Scientific Director Parelsnoer Initiatief The Netherlands
Peter Luijten4 Chief Scientific Officer CTMM The Netherlands
136
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Consulted experts (4/6)
First name Last name Position Company / Institute Country
Laure MacDonald3 Head of Licensing LURIS, Leiden University The Netherlands
Sandra Michielsen1 - Amsterdam Innovation Motor The Netherlands
Semme Molenaar3 - SBGG The Netherlands
Erica Monfardini1 Pharmaceutical Industry Expert PriceWaterhouseCoopers Luxembourg
Daniel Mulder3 Advisor PR
Nederlandse Vereniging van
Participatiemaatschappijen
(NVP)
The Netherlands
Gerhard Mulder3 Innovatieadviseur Syntens The Netherlands
Leon Mur4 Project Manager Bio Science Leiden Bio Science Park The Netherlands
Imran Nasrullah3 - MassBio US (Massachusetts,
Boston)
Lita Nelsen2 Director Technology Licensing Office -
MIT United States
Vinit Nijhawan2
Lecturer and Executive-in-Residence of Institute
for Technology Entrepreneurship and
Commercialization (ITEC)
Boston University United States
Jaap Oostra3 CTO Applikon Biotechnology The Netherlands
Riikka Paasikivi1 Program Director Culminatum Innovation Oy Ltd
Helsinki Finland
Marja Peperkamp3 Advisor IPC Agentschap NL The Netherlands
Frank Pieper4 Life Sciences Consultant BioTxs The Netherlands
Ivo Piest4 Director Corporate Finance Kempen & Co The Netherlands
Marnix Pool3 Director Kennis Conversie Fonds RUG Houdstermaatschappij BV The Netherlands
Anne Portwich3,4 Investment Manager Life Sciences Partners The Netherlands
Sergiy Protsiv3 Doctoral student Stockholm School of Economics Sweden
137
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Consulted experts (5/6)
First name Last name Position Company / Institute Country
Kees Recourt4 Owner Recourt LS The Netherlands
Tonnie Rijkers3,4 Manager Genomics Centres Netherlands Genomics Institute The Netherlands
Hans Schikan4 CEO Prosensa BV The Netherlands
Oscar Schoots3 Director Universiteit Utrecht Holding BV The Netherlands
Berverley Sherbon3 - Medical Research Council United Kingdom
Liesbeth Siderius4 Chair Stichting Shwachman
Syndroom Support Holland The Netherlands
Peter Sijmons4 Director LabScores The Netherlands
Claire Skentelbery1 Director of Operations, Europe Unlimited &
Network Manager
Council of European
BioRegions Belgium
Bob Smailes4 Director Leiden University Research &
Innovation Services The Netherlands
Teresa Soop1 Analysis and Development Director Stockholm Science City Sweden
Emiel Staring4 Managing Director Biomedical Materials program BMM The Netherlands
Rein Strijker4 Chief Commercial Officer Pharming Group NV The Netherlands
Gerrit Tent4 CEO Biogen The Netherlands
Alie Tigchelhoff3,4 Managing Director Utrecht Science Park The Netherlands
Kenneth Tindall3 - North Carolina Biotech US (RTP Area)
Harrold van Barlingen4 Managing Director Thuja Capital The Netherlands
Clemens van Blitterswijk4 Professor Tissue Regeneration Universiteit Twente The Netherlands
Ruud van de Bilt3 HeadTransfer & Liaison Groep TTO UMCG The Netherlands
Michiel van den Berg3 Analist WBSO Agentschap NL The Netherlands
Peter van den Berg3,4 Advisor Innovation Intelligence Agentschap NL The Netherlands
Louise van den Bos4 - UMC St Radboud The Netherlands
Taco van der Feltz4 Executive Search Consultant Russel Reynolds The Netherlands
138
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Consulted experts (6/6)
First name Last name Position Company / Institute Country
Sander van Deventer4 Board Member Amsterdam Molecular
Therapeutics The Netherlands
Peter van Hoorn4 Professor Science Business & Innovation VU Faculty of Exact Sciences
(FEW) The Netherlands
Fenrir van Koert3 Technopartner AgentschapNL The Netherlands
Paula van Rossum3 Project Manager Life Sciences Utrecht Science Park The Netherlands
Suzanne Verboon3 Manager Innovatie Samenwerking in het MKB AgentschapNL The Netherlands
Henk Vietor3 CEO Skyline Diagnostics The Netherlands
Ian Viney3 Head of Evaluation Medical Research Council United Kingdom
Ingrid Vodegel3 COO Aeon Astron Europe The Netherlands
Armand Voorschuur4 Senior beleidsadviseur farmaceutische zaken Nefarma The Netherlands
Jelle Wiarda1 - Healthy Ageing Network The Netherlands
Jan Wisse4 Director Niaba The Netherlands
Bart Wuurman4 CEO AM-Pharma BV The Netherlands
Bernhard Zechendorf1 Project Manager European Commission Belgium