T H U R S D AY , J U N E 8 , 20 0 6
FINANCE
AND
COMMERCE
1
Focal Point
Health Car e / Biomedical Developmen t
MINNESOTA’S BIOTECH GOAL:
Not just a player, but a leader
F&C’s latest installment of its
Focal Point series focuses on
health care and biomedical
development. At the forefront
of the industry is Gel-Del
Technologies and company
president David Masters.
Products that
piggyback on the
state’s medical device
industry show promise
BY MICHAEL KRIEGER
F&C S P E C I A L S E C T I O N S E D I T O R
nside a secure and sophisticated wet lab at University
Enterprise Laboratories, Gel-Del Technologies is quietly manipulating proteins to simulate the body’s own
tissue.
Like many bioscience companies in the St. Paul incubator, it’s a small operation that holds great promise.
“Gel-Del is really not meant to be a big company,” said
David Masters, founder and president of the biomedical
device maker. “It’s meant to be a spawning ground.”
To its credit, Gel-Del is spawning while you read. The
6-year-old company recently gained federal approval to
conduct human trials of a cosmetic product using biocompatible tissue replacements.
Similar examples of innovation play out in research facilities throughout the state. Industry insiders agree that
Minnesota has a healthy future in the biosciences, but is
not — and should not be — all things bio to all people.
Rather, the state should focus on the things it does well.
“Minnesota is not going to lead in all aspects of the
biosciences,” said Eric Wieben, director of the
Genomics Research Center at Mayo Clinic in Rochester.
“I think the key is to define what you’re going to focus
on, and then put your energies into those areas where
you have a competitive advantage,” he said.
Gene Goddard, biosciences industry specialist with
the state Department of Employment and Economic
Development, echoed those sentiments.
Rather than pour money into a Minnesota version of
Johnson & Johnson, “We want to take advantage of our
strengths,” he said.
One of those strengths is what Goddard calls drug
device convergent technologies — combining biological components with medical devices.
In that respect, Gel-Del represents the leading edge of
Minnesota’s biomedical industry. Along with its upcoming trials of CosmetaLife — a next-generation wrinkle
treatment — the company is also developing biomaterial
coatings for artificial blood vessels, stents and catheters.
The company has received more than $2 million in
federal government grants to pursue the technology,
which could have a significant effect on patient care.
The body tends to reject foreign objects, so a biocom-
I
David Masters, president and founder of Gel-Del Technologies, in the St. Paul laboratory where his team is developing
biocompatible materials that can smooth wrinkles and replace blood vessels. (F&C photo by Bill Klotz)
EL-DEL IS REALLY NOT
“G
MEANT TO BE A BIG
COMPANY. IT’S MEANT TO BE A
SPAWNING GROUND,” SAYS DAVID
MASTERS, FOUNDER AND PRESIDENT
OF THE BIOMEDICAL DEVICE MAKER,
WHICH HAS ALSO BEEN ABLE TO
BRIDGE THE GULF BETWEEN RESEARCH
AND COMMERCIALIZATION. “WHEN
YOU WORK IN A LABORATORY, IT
DOESN’T HAVE ANY MEANING OR
IMPACT UNLESS YOU APPLY IT.”
patible implant — such as a new coronary artery for
heart attack victims — that integrates on a cellular level
should reduce the chances of an adverse immune system response, Masters explained.
Gel-Del has also been able to bridge the gulf between
research and commercialization.
“When you work in a laboratory, it doesn’t have any
meaning or impact unless you apply it,” Masters said.
For all of Gel-Del’s success, however, a dark cloud
looms over the state’s biomedical industry.
A May report by the BioBusiness Alliance of
Minnesota shows that the state lost jobs in the medical
device sector between 1997 and 2002, despite the presence of heavyweights such as St. Jude Medical and
Medtronic.
And new biobusinesses aren’t sprouting like many had
hoped. “We need to focus on new startups,” Goddard
said. “We rank below average in new business startups
in the bioscience industry.”
From a macro perspective, there’s a lot at stake.
According to a recent report from the Washingtonbased Biotechnology Industry Organization, the medical device and equipment sector alone employed
roughly 25,500 Minnesotans in 2004.
Factor in the trickle-down effect for suppliers, and
employment reaches around 91,400.
Medtronic vice president Dale Wahlstrom, chair of the
BioBusiness Alliance, said the state could benefit from
a biotech support group where companies collaborate
on problem solving and commercialization techniques.
“We have to create a venue and culture where all of
these organizations come together and work on the
same thing,” he said.
Another important factor is state funding for research
and development.
“There are at least 41 states now that have biotech initiatives that are getting some state interest and support,” said Wieben, who is also co-scientific director of
The Minnesota Partnership for Biotechnology and
Medical Genomics. “I think any support the state can
give toward fostering the right climate will be real
important for our overall success.”
The partnership unites experts from Mayo and the
University of Minnesota to work on cutting-edge biomedical research. “It takes investment and a little bit of
patience. These aren’t quick payout issues,” Wieben said.
For example, a recent study showed a $70 million
investment in the partnership could yield an overall
return of $319 million for the state and around 4,400
jobs in five years.
“The goal here is not just to have Minnesota be a player, but to be a leader,” he said.