CLEVELAND THE MEDICAL CAPITAL

$2 BILLION INVESTED IN 390 BIOMEDICAL START-UP COMPANIES

56 EXITS

32 CLEVELAND- AREA BIOMEDICAL INVESTORS

88 NATIONAL INVESTORS IN CLEVELAND COMPANIES

$5.6 BILLION BIOMEDICAL SECTOR

700 BIOMEDICAL COMPANIES Internationally renowned clinical, educational, and research institutions, supportive philanthropies, government and economic development engines, funding, talent, strong biomedical innovation, and an abundant workforce.

Clinical and Research Institutions Educational Institutions and Workforce Globally recognized clinical and research institutions provide Northeast Ohio is home to 25 universities that offer graduate the platform for Cleveland’s biomedical industry. Together these and undergraduate programs, as well as certificates and diplo- organizations conduct nearly $700 million in annual sponsored mas, serving the region’s healthcare, health IT and bioscience research and are nationally ranked in multiple specialty areas. industry. Since 2006, these institutions have graduated more The institutions collaborate closely with regional biotech, medical than 18,000** bioscience workers. Select institutions include: device and health IT companies to advance innovation. Select institutions include: CASE WESTERN RESERVE UNIVERSITY School of Medicine ranked Top 24 in research; Biomedical Engineering CLEVELAND CLINIC department ranked Top 16.* Nationally ranked in 24 specialties, including #1 heart and heart surgery CLEVELAND STATE UNIVERSITY for 21 years in a row; #2 in gastroenterology and GI surgery, nephrology, Among the top 20 percent of U.S. universities for research and develop- rheumatology, and urology.* ment, the College of Sciences and Health Professions enrolls more than UNIVERSITY HOSPITALS 2,600 students annually, and includes 14 master’s programs and 16 Nationally ranked in 17 specialties, including cancer, ear nose and throat, undergraduate programs focused on educating future researchers, gastroenterology and GI surgery, and orthopedics.* clinicians and bioscience workers.

AKRON CHILDREN’S HOSPITAL KENT STATE UNIVERSITY Nationally ranked in 7 specialties, including neonatology, neurology and The birthplace of liquid crystal displays, Kent State is home to the world’s neurosurgery, and urology.* first Liquid Crystal Institute.

METROHEALTH MEDICAL CENTER THE UNIVERSITY OF AKRON Northeast Ohio’s Level 1 trauma center ranks nationally in diabetes and Ohio’s Polytechnic University, The University of Akron maintains the endocrinology, and pulmonology,* and is home to the only adult and pedi- nation’s largest Ph.D. student body in polymer science and engineering. atric burn unit in the state of Ohio. The program is the largest and broadest in the U.S., dating from 1910. LOUIS STOKES CLEVELAND VA MEDICAL CENTER Eight centers of excellence, including open heart surgery and geriatric Rapid Industry Growth evaluation and management. Cleveland’s biomedical industry has grown from 300 companies in 2002 to over 700 companies in 2015. Medical device companies make up half of the total and include firms such as Philips, Hitachi, Steris, Siemens, and GE Healthcare. Biopharmaceutical companies – Oakwood Labs, Ricerca, WIL Research Laboratories, and Affymetrix are located in the region. A growing number of healthcare IT and services companies, including Hyland Software, Explorys (an IBM Company), COMS, CoverMyMeds, and Lexi-Comp (a Wolters Kluwer company) complete the industry composite.

*U.S. News & World Report, 2015-16 **Ohio Bioscience Growth Report 2015 Northeast Ohio institutions have been awarded over $500 million to develop centers of innovation in cardiovascular therapies, biomaterials, neurostimulation, medical imaging, and regenerative medicine.

Innovation Hubs Entrepreneurial Support GLOBAL CENTER FOR HEALTH INNOVATION Part of the Cleveland BIOENTERPRISE Dedicated to growing biopharmaceutical, health IT Convention Center complex, the Global Center for Health Innovation brings and medical device companies in Northeast Ohio, BioEnterprise provides together large corporations, healthcare systems, educational institutions a single point of contact to access , grants, loans and and developing companies to discover possibilities in healthcare. The tax incentives, regional research and clinical institutions for R&D collaborative atmosphere encourages inspired, innovative and for- collaborations, strategic partnerships and acquisition opportunities, ward-thinking ideas that can lead to future advancements in the industry. technical services, equipment, professional service providers, and flexible Selected partners include HIMSS, GE Healthcare, Forbo, Chemsultants, development space. SmartShape, Cisco, and Cardinal Health. GLOBAL CARDIOVASCULAR INNOVATION CENTER The GCIC is a cardio- HEALTHTECH CORRIDOR Located in the heart of Cleveland, the Health- vascular product development center providing grant funding, incuba- Tech Corridor is a 1,600 acre, three mile thoroughfare for biomedical, tion, and preclinical services. It is focused on the formation, attraction, healthcare and technology companies looking to take advantage of close expansion, and retention of cardiovascular companies. proximity to healthcare institutions, including Cleveland Clinic and University Hospitals, business incubators, academic centers, including REDIZONE Located on the campus of the Northeast Ohio Medical Case Western Reserve University, and more than 120 high-tech companies University, the Research, Entrepreneurship, Discovery, and Innovation engaged in the business of innovation. Zone (REDIzone) is a biomedical focused on company attraction and growth in the areas of auditory neuroscience, commu- AKRON BIOMEDICAL CORRIDOR Focusing on orthopedics, wound nity-based mental health, metabolic and cardiovascular disease, and healing, burns, imaging and biomaterials, the Akron Biomedical Corridor musculoskeletal biology. connects three hospitals, including the Summa Health System and Akron General Medical Center, and two universities, the Northeast Ohio Medical THINK[BOX] An innovative home for out-of-the-box thinkers, Case West- University and The University of Akron, Ohio’s Polytechnic University. The ern Reserve University’s think[box] provides a space for product design, Corridor is home to the Akron Global Business Accelerator and the Akron development and commercialization. The facility is open to students, BioInvestments Funds. faculty and staff, and community entrepreneurs for collaboration and innovation.

FLASHSTARTS Flashstarts is a startup accelerator and venture fund focused on the innovation of software and technology. The accelerator provides entrepreneurs with mentors, start-up capital, office space, and other customized resources.

TEAMNEO A regional, private-sector organization, TeamNEO markets Northeast Ohio to the world and collaborates with its partners and others to attract new businesses, help those that are here to grow, and acceler- ate the pace and impact of innovation in the region. Contract Research, Regulatory and Manufacturing Northeast Ohio is home to some of the industry’s leading CRO and regulatory experts including NAMSA, Clinical Research Management, IMARC and WIL Laboratories. The region also has a robust medical device manufacturing base, from full-service custom product design to component and finished product manufacturing. Recent Acquisitions Industry leaders are increasingly taking interest and ownership in a number of standout entrepreneurial efforts. CARDIOINSIGHT, a developer of a non-invasive cardiac mapping system designed to diagnose electrical abnormalities affecting the heart, was acquired by Medtronic.

EXPLORYS, a health data analytics software company, was acquired by IBM.

ABEONA THERAPEUTICS, a developer of therapies for rare genetic disorders, was acquired by PlasmaTech Biopharmaceuticals.

ENVISIONRX, a pharmacy benefits manager, was purchased for $2 billion by Rite Aid Corp. A RECORD NUMBER OF BIOMEDICAL EXITS IN 2015. INNOVATION 56 EXITS SINCE 2002 Start-Up Activity ACQUIRER TARGET An ever-growing pipeline of funded start-up companies demonstrates 2015 LifeWatch FlexLife Health the vibrant biomedical environment in Cleveland. Regional biomedical DHS Group MOVABLE companies attracted over $2billion in since 2003; Medtronic CardioInsight Technologies PlasmaTech more than $1billion raised over the past five years. Biopharmaceuticals Abeona Therapeutics IBM Explorys Cardinal Health Tradex International ViewRay 398 50 Rite Aid Envision Pharmaceutical Services 2014 KICVentures AxioMed 43 Main Market Partners LLC Ricerca 40 Charles River ChanTest 35 34 COMS Interactive Directed Medical Systems 227 MEDNAX MedData 201 201 3D Systems Simbionix Hikma Pharmaceuticals Bedford Laboratories 2013 TPG Envision Pharmaceutical Holdings 125 Tenex Capital Management Roscoe Medical Cardinal Health AssuraMed 2012 Gridiron Capital Performance Health & 11 12 13 14 15 11 12 13 14 15 Wellness Holdings Tornier NV OrthoHelix MILLIONS OF DOLLARS COMPANIES FUNDED Steris U.S. Endoscopy Sigma-Aldrich Research Organics Over $1 Billion invested in five years 2011 VWR International Amresco Wolters Kluwer Lexi-Comp Source: BioEnterprise 2015 Year-End Midwest Healthcare Growth Capital Report Thermo Fisher Scientific Trek Diagnostic Systems Boston Scientific Intelect Medical Since 2003 MedData Data Management Schiff Nutrition Ganeden Biotech (product line) BioTime Cell Targeting 2010 Clayton Dubilier & Rice/ Goldman Sachs Edgepark Surgical Predictive Biosciences OncoDiagnostic Labs Hyland Software Computer Systems Company Mercer Innovative Process Administration HealthPro Rehabilitation Therapy Partners Carefx IntellisEPM (product line) 2009 CompuGroup Noteworthy Medical 2008 Invacare Homecare Collection Services Integra LifeSciences Theken Spine In SBIR grants to regional bioscience start-ups Medtronic NDI Medical (product line) Walgreen Whole Health Management Source: National Institutes of Health 2007 Universal American MemberHealth Nationwide Wellcorp Initial Public Offering Athersys Since 2000 Affymetrix USB Greatbatch BIOMEC Cortec Group Hygenic Corporation 2006 Magellan Biosciences Trek Diagnostics Initial Public Offering Cleveland BioLabs 2005 Nuvasive RSB Spine (product line) Merry X-Ray SourceOne Healthcare Technologies 2003 Enpath Medical BIOMEC Cardiovascular Merge Healthcare RIS Logic Cardiac Sciences Complient 2002 GE Medical Systems USA Instruments St. Jude Medical Cardiac Assist Devices Omnicare NCS Healthcare In licensing revenue

Source: Association for University Technology Managers themedicalcapital.com @MedicalCaptial by 32 88 CLEVELAND-AREA NATIONAL INVESTORS BIOMEDICAL INVESTORS IN CLEVELAND COMPANIES

Venture Capital and Midwest West Coast Area Growth Equity Funds Allos Ventures ABS Capital Partners Accipiter Capital Management Arsenal Venture Partners Aspire Capital The Compass Group Aisling Capital Blue Point Capital Baird Capital Partners DW Healthcare Partners Amphion Innovations Bridge Fund Beecken Petty O’Keefe & Company Francisco Partners Behrman Capital Cascade Partners Blue Chip Venture Company HLM Venture Partners Clayton, Dubilier & Rice Downing Partners Charter Life Sciences Invesco CortecGroup Draper Triangle Ventures Chrysalis Ventures Kearny Venture Partners Cowen Group Early Stage Partners CID Capital Palo Alto Investors Easton Capital Investment Group Edison Partners Cressey & Company SV Life Sciences Foundation Medical Partners Edgewater Capital Drive Capital Takeda Ventures Goldman Sachs Everett Partners First Analysis TPG Biotech Great Point Partners Glengary Ventures Kentucky Seed Capital Fund Vivo Capital Greatbatch Hopen Life Science Ventures Medtronic Western Technology Investment Investor Growth Capital Kirtland Capital Partners Ohio TechAngels Life Sciences Capital Morgenthaler River Cities Capital Funds Boston MSD Capital Mutual Capital Partners SWMF Life Science Ampersand Capital Partners New Science Ventures NDI Healthcare Fund Thoma Bravo Bain Capital Ventures North Peak Capital North Coast Venture Fund Thomas, McNerney & Partners Boston Scientific Oak Investment Partners Primus Capital Triathlon Medical Venture Partners Capital Resource Partners OrbiMed Advisors RIK Enterprises Venture Investors CompuGroup Medical Psilos Group Riverside Company West Capital Advisors DSM Venturing Radius Ventures RiverVest Ventures Excel Venture Management Sunrise Equity Partners Roulston Ventures South Fidelity Biosciences Tenex Capital Austin Ventures Fletcher Spaght Ventures Toucan Capital EDG Partners HealthCare Ventures Welsh, Carson, Anderson & Stowe Angel Funds and Networks ExOxEmis MPM Capital Norwich Ventures Akron ARCHAngel Network Heritage Group Polaris Partners North Coast Angel Fund Maverick Capital RA Capital RMS Investment Corporation Mayport Venture Partners Siemens Venture Capital Second Generation MB Venture Partners Summit Partners Zapis Capital Group Pappas Ventures River Associates Tekla Capital Management

Santé Ventures Seed Funds Tiberius II TriStar Technology Ventures Akron BioInvestments Funds Case Technology Ventures Cleveland Clinic Innovations GLIDE Fund

JumpStart Funds themedicalcapital.com [email protected] @MedicalCaptial

The Medical Capital Report is produced in cooperation with Team NEO, Cleveland Clinic, University Hospitals, MetroHealth Medical Center, Louis Stokes Cleveland VA Medical Center, Case Western Reserve University, and Cleveland State University. Funding is provided by the Fund for Our Economic Future and the Burton D. Morgan Foundation.