MEDICAL DEVICES & EQUIPMENT
From Site Selection magazine, November 2008

 
Centers of Excellence
Technology transfer cultivates device and equipment clusters.
EKOS facility in Bothell
EKOS is part of the cluster of ultrasound companies in the Bothell, Wash., area.
S
ome of the world's leading technology related to medical ultrasound equipment comes out of the Seattle suburb of Bothell. The city of 31,000 employs about 2,800 in the medical device sector, leading the way in the Puget Sound region.
      Building on technology spun out of the University of Washington, Bothell has developed a world-renowned cluster of ultrasound research and development and manufacturing. The Seattle suburb is home to 16 such companies, ranging from burgeoning startups to huge industry leaders such as Philips Healthcare. Bothell was designated as Washington State's Biomedical Device Innovation Partnership Zone in 2007. Medical device companies in Bothell accounted for 71 percent of gross business revenue for the region with an estimated US$1.8 billion in 2007.
      One of Bothell's fast-growing ultrasound technology manufacturers is EKOS Corporation, a pioneer in the development of microsonic treatment of vascular thrombosis. EKOS, which employs about 130, moved into a new 40,000-sq.-ft. (3,700-sq.-m.) headquarters and manufacturing facility in 2006. It began commercial sales of its products in January 2006.
      "What you find in this type of cluster is the synergy not only between the different companies, but you have the availability of machine shops, suppliers and the University of Washington [Bothell branch] right across the street," says Doug Hansmann, EKOS founder and COO. "All of these are inducements for companies to settle here."
      Philips Healthcare, a global leader in diagnostic imaging equipment, is the largest medical device company in Bothell, employing about 1,700 at two facilities. The Bothell operation traces its history to technology developed at the University of Washington in the mid-1970s and acquired by Advanced Technology Laboratories. Philips purchased the company in 1998.
      "The Bothell area is a world center of excellence for ultrasound technology," says Terrence Sweeney, Philips' senior vice president, corporate quality and regulatory affairs.

University Powered
      ACIST Medical Systems, a company founded in 1991 through technology developed at the University of Minnesota, officially opened its new 75,000-sq.-ft. (6,967-sq.-m.) headquarters in the Minneapolis suburb of Eden Prairie in October. ACIST, part of the Milan, Italy-based Bracco Group, is a manufacturer of contrast delivery products for the imaging field, specializing in angiography.
      Terry Bunge, ACIST's president and CEO, says the company's rapid growth of 20 percent annually over the last five years necessitated a move from its previous facility in Eden Prairie.
Terry Bunge
Terry Bunge, president and CEO of ACIST Medical Systems.

      "The facility we were in did not meet our long-term requirements in terms of size and quality," Bunge says. "We started to search two ways, one to see if there were any existing properties we could move in to, and, secondly, if we should design and build from the ground up. We were under a tight timeline and happened to find a fairly new building within a few miles of our prior location."
      During the process, Bracco acquired E-Z-EM, a manufacturer of injection products and imaging products. ACIST merged E-Z-EM's injection product business into its operations, boosting its business by 50 percent. ACIST now employs 250 worldwide with 140 at the Eden Prairie site.
      "The medical device business is a fairly stable business because it is oriented to coming out with products to meet people's health needs, so it tends to be more immune to economic changes," Bunge says. "Because of the large number of medical device companies in this area there is access to talent that is specific to this type of industry."
      Much of Minnesota's medical device cluster is in the Twin Cities area and derives from University of Minnesota technology, helping the state to develop a sector that employs nearly 30,000.
      Seeking to promote the next generation of technology development, the university in June opened its Medical Devices Center, specifically built for designing, prototyping and testing new medical devices.

Cataract Surgery Catalyst for Growth
      Switzerland-based Alcon, the market leader in ophthalmic surgical products, specializes in intraocular lenses (IOL) for cataract treatment. It is currently expanding its IOL plants in Huntington, W.Va., and in Cork, Ireland.
      "We are expanding both of these plants to meet the growing demand for cataract surgery and advanced products used in those surgeries," says Doug MacHattan, Alcon's vice president of investor relations and strategic communications.
Alcon facility in Huntington
Alcon, a manufacturer of medical devices to treat cataracts, is expanding its Huntington, W.Va., facility.
"The amount of investment in each of these facilities is dependent on the operational needs and the overall costs of manufacturing IOLs and insertion devices."
      MacHattan says Alcon's Huntington facility makes up the majority of its IOL manufacturing capabilities. He says support from state and local economic development agencies was a key in Alcon's decision to invest $25 million to expand its facilities by 74,000 sq. ft. (6,874 sq. m.). Education facilities in the area, including Marshall University, were another major consideration.
      Alcon, which has its major operational office in Fort Worth, currently employs about 730 in Huntington in a 150,000-sq.-ft. (13,935-sq.-m.) facility. With the expansion, the company plans to create more than 350 new jobs over the next 10 to 15 years, MacHattan says.
      "We have been in West Virginia for 30 years now and have developed excellent relationships with state and local agencies as well as with Marshall University," MacHattan says. "Our experience manufacturing medical devices in West Virginia has been very positive, as evidenced by our continuing investments into the facilities here. Although it's not the easiest place to get to, once you do, it's a beautiful place to live and work, and offers a high quality work force and excellent infrastructure for manufacturing medical devices."
      Alcon opened the first phase of its expansion in Cork, Ireland, in September, investing €15.6 million ($22.6 million) in the project. The company also plans an additional investment of €21.14 million ($28.9 million), which will result in the creation of 186 additional positions to meet the growing global demand for Alcon's products.

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