Sweden for Advanced Manufacturing in Life Sciences

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Sweden for Advanced Manufacturing in Life
Sciences
Ylva Williams, Invest in Sweden Agency
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Agenda 1) A world-class manufacturing
location2) Source of great life science3)
Advanced manufacturing in life sciences

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Sweden A world-class manufacturing location
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Introduction to Sweden

• Largest country in northern Europe
• Winner mens Ice Hockey 2006 Olympics
• A country with great manufacturing expertise
• Home to world-leading manufacturers

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Manufacturing know-how behind successLabor
productivity, average annual increase 1994-2003,
percent
Source US Department of Labor, 2004
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Profitable production in Sweden
SKF
Scania
Volvo Cars
Sandvik
Getinge
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Swedish manufacturing strengths
Internationally competitive education/research Clu
sters of internationally strong
companies Transports/logistics Management
Business acumen Manufacturing systems
Holistic approach and system thinking Complex
products and production systems Integration of
RD, design and production Advanced materials
flows Competence
Communication and accord Working
methods Corporate culture Delegation of
responsibility Constructive employer/union
relations

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Efficient logistics and distribution networks
Centralizing logistics activities to Sweden has
shortened delivery lead times, reduced
warehousing costs and increased total delivery
quality. Hideo Masuda
Managing Director Honda Nordic
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Recent manufacturing expansions

• ABB From Switzerland to Västerås
• AstraZeneca Expansion in Södertälje
• Atlas Copco From the US to Örebro
• Ericsson From Hungary to Vaggeryd
• GE Healthcare From the US to Umeå
• Getinge From France, Netherlands, Italy and the
  US
• Sandvik From Mexico to Sandviken
• Scania From the Netherlands to Oskarshamn
• Toyota Industries Expansion in Mjölby

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Source of great life science
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Rich history

• Astra
• Astra founded 1913, today part of AstraZeneca
• Global RD headquarters in Södertälje
• Research HQ for gastrointestinal and
  cardiovascular
• research in Göteborg
• Research HQ for neuroscience in Södertälje
• Pharmacia
• Founded in 1911, today part of Pfizer
• Spin-offs Pharmacia Diagnostics,
• Pharmacia Biotech (now GE Healthcare)
• Home of Karolinska Institutet and the Nobel Prize
• Today 40,000-strong life science sector

The Nobel Prize award ceremony is held annually
in Stockholm
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Industry with focus on Drug development, Medical
Device and Biotech Tools
AstraZeneca, Pfizer, Biovitrum, KaroBio, Active
Biotech, Medivir
Gambro, Elekta, Siemens-Elema, St. Jude Medical,
Nobel Biocare, Astra Tech
GE Healthcare, Getinge, Biacore, Biotage,
Vitrolife, Fresenius Kabi, Q-Med
Pharmacia Diagnostics, Biodisk, CanAg Diagnostics

DSM Anti-Infectives Sweden, Ferring, Novozymes
Biopharma
Quintiles, TFS Trial Form Support
Distribution 2004 by number of employees
Bioproduction at Pfizer and Biovitrum included
in Drug Development Manuf.
Source "Swedish Biotechnology", Vinnova 2005
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Home to some of Europes finest clusters
Stockholm/Uppsala Göteborg Region Malmö/Lund/Cope
nhagenMedicon Valley
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Swedish research breakthroughsDrug development
and biotechnology

• XylocainTM, local anestethics (Astra)
• Dextran, MacrodexTM, and RheomacrodexTM,
• blood plasma substitutes (Pharmacia)
• SalazopyrinTM, anti-inflammatory (Pharmacia)
• L-dopa (Arvid Carlsson)
• AptinTM, non-selective betablocker (Astra)
• Amipaque, nonionic x-ray contrast medium
  (Nyegaard Co)
• Bricanyl, selective beta 2 stimulator (Astra)
• HealonTM, ophthalmic device (Pharmacia)
• SelokenTM, selective beta 1 blocker (Astra)
• Thromboxanes, (Bengt Samuelsson, Hans
  Bergström)
• PulmicortTM, cortico-steroid (Astra)
• FragminTM, low-molecular-weight heparin
  (Pharmacia)
• GenotropinTM, human growth hormone (Kabi Vitrum
  and Genentech U.S.)
• LosecTM/PrilosecTM, ulcer medicine (Astra)
• PlendilTM, calcium antagonist (Astra) 
• NexiumTM, proton pump inhibitor (AstraZeneca)

NexiumTM, AstraZeneca
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Swedish research breakthroughsMedical devices,
diagnostics biotech supplies

• Sephadex, gel filtration chromatography Pharmacia
  Biotech
• Artificial kidney Gambro
• IgE allergy diagnosis Pharmacia Diagnostics
  
• Respirator Siemens-Elema
• Implantable pacemaker Siemens-Elema
• Brånemark implant systems Nobel Biocare
• Gamma knife Elekta
  
• DNA sequencing technology Biotage
• Biosensors Biacore
• Next successes? Aerocrine, Affibody, Global
  Genomics, Olink

Elekta Gamma Knife
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Europes fourth-largest biotech industryNumber
of companies

Source Ernst Young, "Global Biotechnology
Report The European Perspective", 2004
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Sweden for advanced manufacturing in life
sciences
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GE Healthcare

• 15 million of sales in medical equipment
• Major facilities in Uppsala and Umeå global
  centres of manufacturing excellence
• Several manufacturing moves to Sweden since 2001,
  in drive for increased profitability
• 90 million investment in Uppsala facilities
  announced 2005
• vote of confidence for protein separation
  activities in Sweden.

Sweden offered better competence overall and
our production infrastructure was superior.
Peter Ehrenheim President Protein
Separations GE Healthcare
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Pfizer

• One of the worlds largest pharmaceuticals
  companies
• Chose Sweden over ten other possible
  manufacturing sites for new biomanufacturing
  plant in Strängnäs
• 150 million to be invested
• Site in Helsingborg global center of excellence
  for consumer health care products

Sweden has the know-how required to build
ultra-modern plants for advanced biotechnological
manufacturing.
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St Jude Medical

• Global cardiovascular device company. 2.3
  billion in sales and nearly 8,000 employees.
• Sweden one of two global centers of excellence
  for pacemakers. 250 staff in production.
• Sweden important part of success
• Favors having RD at same location easier
  to effectively implement design for
  manufacturability into products

The flexibility in aggressively ramping up
production has allowed us to meet demand across
the board for all of our products. Michael
Coyle President
Cardiac Rhythm Management Division
St Jude Medical
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Advanced Medical Optics

• US-based company focused on vision technologies
• Acquired Pfizers Healon activities in 2004
• Invests in Sweden
• Has moved manufacturing from Ireland to Sweden
• Moves RD from US to Sweden
• Why Sweden? Know-how, access to skilled staff and
  proximity to world-leading university

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SPX Air Filtration

• Part of SPX Corporation with 25,000 employees,
  5 billion in sales
• Supplies air filters for pharmaceutical
  applications
• Concentrates all manufacturing of synthetic bag
  filters to Sweden
• Production in Sweden to be doubled from summer
  2006 - to supply globally
• CEO We showed that Sweden is a world-class
  manufacturing site.

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Good reasons to place manufacturing activities
in Sweden
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Good reasons to place manufacturing activities
in Sweden

• A world-class manufacturing location
  - productivity, production
  systems, logistics
• Offers great expertise in design, development,
  quality control and manufacturing
• Leading pharma, medical device and biotech
  industries
• Competitive salary levels and operating costs
• Cutting-edge academia in both life science and
  manufacturing
• Great skill in integrating RD and production
• Good access to skilled staff
• Sweden creates high value-add in production

Sweden offers knowledgeable engineers in all
areas that are relevant, including biochemistry,
chemistry, electronics and machine design.
Peter Ehrenheim President Protein
Separations GE Healthcare
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Contacts further information

• Ylva Williams
• Head of Life Science
• Tel [phone]
• ylva.williams_at_isa.se
• ISA website contains wealth of information for
  investors