Government of Flanders - Belgium

The life sciences industry in Flanders10 reasons why Flanders is in pole position

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Innovation is at the core of life sciences, more than in any other industry. Flanders has always proved to be a region that shows new ingenious ways of putting science to good use for the benefit of millions of people worldwide. In pharmaceuticals, in biotechnology and in all kinds of specialized supporting activities.

By way of illustration: Flanders only comprises 13,500 km2 and houses no less than 115 com­panies with biotech activities, employing over 10,000 employees and generating a total turn­over of close on €2.9 billion. Together they are responsible for ca. 20% of the total private R&D expenditure in Flanders. The money is well invested: 33 of these companies own 941 patents, resulting in a powerful patent position of 29 patents, on average, per company. Since 2005, 5 Flemish biotech IPO’s have raised, between them, €213 million. Life sciences is a booming business in Flanders. With this brochure we provide you with an inside look on why Flanders is the ultimate location in Europe for any life sciences company. We let local and overseas companies testify to their successful operations in and from the region.

You will hear them speak about close collaborations with the local knowledge institutes and the widely available possibilities for funding. Crucial factors like these have conduced to turn Flanders into a flourishing life sciences cluster in which a wide range of SMEs and interna­tional corporations are active. They find themselves well surrounded by organizations that uphold their interests and by a flexible government with a listening ear and wide-open eyes on the future. If you have any questions, want to know more or would like to get in touch with one of the or­ganizations featured here, please do not hesitate to contact us. Flanders Investment & Trade is always glad to help.

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The life sciences industry in Flanders10 reasons why Flanders is in pole position

PrefaceFlanders' Life Sciences strenghts in a nutshell

Advantage 1: Unrivaled expertise in plant biotechnology 8•CropDesign:world-classplayerinagronomictraitsdevelopment•Devgen:leadingseedandcroptechnologybusiness

Advantage 2: A global market leader in pharmaceutical production and R&D 12• Tigenix:groundbreakingcelltherapy• ThromboGenics:anemergingforceineyeandvascularmedicine•Galapagos:majorbreakthroughsindrugdiscoveryanddevelopment

Advantage 3: Industrial expertise and pioneering power in industrial biotechnology 17•Genencor:world-leadingenzymeproducerinFlanders•Syral:bio-ethanolproductionattheheartofEurope

Advantage 4: All the innovative suppliers and support services close by 21•SGS:performingclinicaltrialsinFlanders• VerhaertMastersinInnovation:bringinglifesciencescompaniesstate-of-theartinnovation

Advantage 5: World-renowned research institutions VIB and IMEC 24• VIB(FlandersInstituteforBiotechnology):Europeanleaderinscientificresearchandtechnologytransfer• IMEC:wherebioandnanocometogether

Advantage 6: Strong human capital 31•High-performanceeducationalsystem•Highereducationwithasharpfocusonappliedskills•Highlyproductiveworkforce

Advantage 7: Widely available funding for R&D in life sciences 33•Gimv:growingbiotechbusinesses• IWT:asolidroadtodependablefunding

Advantage 8: Clear government focus on life sciences 37•Fastapprovalfor(pre)clinicaltrials•OneofEurope’smosttax-friendlyregionsforpatents•Beneficialtaxmeasuresforinvestmentsandresearchstaff•Otherbeneficialtaxmeasures

Advantage 9: Wide support for Flanders’ life sciences cluster 39•FlandersBio:Flanders’substantialbiotechumbrella• essenscia:stronglifesciencesrepresentation

Advantage 10: Flanders Investment & Trade: support at the start and the expansion of your operations 42• Identificationofoptimallocation•Knowledgeandcontactcenter•Subsidiesandsupportmeasures•Legalrequirementsclarified

Flanders' Life Sciences strenghts in a nutshell

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“Because of the large concentration of cutting-edge pharmaceutical companies here, we can easily find qualified personnel. The high quality of life in Flanders also

makes it an attractive region for expats.”Kris Motmans, Corporate Communications Manager, Tigenix

Flanders’ Life Sciences strengths in a nutshell

“Flanders is the world’s most significant cluster in the area of agricultural

biotechnology. There are almost no corporate failures to report among

fledgling Flemish life sciences companies. The percentage of successful

start-ups is very high.”Johan Cardoen, CEO, CropDesign

“A lot of international food groups have a strong presence in Flanders. The region is also at the European top as far as the chemical industry is concerned. In the

collaboration between these industries, based on the widely present expertise in biotech here, l ies a huge potential.”

Frans Van Londersele, Plant Manager, Genencor Bruges

“In life sciences, we focus on risk sharing. Our funding is available to both SMEs and larger companies. These can benefit from IWT’s flexible and pragmatic approach, one of our standout advantages.”

Dirk Veelaert, Scientific Advisor, IWT

“The climate in Flanders is very positive for the

life sciences sector. The policies of the government

here are open and proactive and its leaders listen to the needs of the companies in

the sector.”Patrik De Haes, CEO, ThromboGenics

“An approval for Phase I trials can be reached in Flanders in a mere two weeks. This is a major advantage compared to

other countries.”Robert Lins, Business Manager Benelux,

SGS Life Science Services“The well-conceived policy of the Flemish government has made

Flanders a unique biotech region in Europe.”

Patrick Van Beneden, Executive Vice-President Life Sciences, Gimv

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Advantage 1: Unrivaled expertise in plant biotechnology Flanders is the birthplace of plant biotechnology as we know it today. In the 80s Flemish scientists, for the first time, mapped out a gene sequence and a genome sequence of a plant. The technology to alter plants genetically is a Flemish discovery that is being used on a global scale today. The expertise that has been built up is unrivaled anywhere in the world. This is why Flanders is considered a good breeding ground for a wide range of plant-biotech companies. The region’s scientific lead enhances the possible return for both local SMEs and multinationals active in a wide range of plant-biotech fields.

CropDesignhasbeenoperatingasaBASFPlantScience Company, following its acquisition bytheGermanchemicalgiant.

Onlytenyearsafteritsincorporation,CropDesignhasgrownintoaworld-renowned,agro-biotechcompany.Itraised €42millionofventurecapitaluntil2006andwasplanningtogopubliconthestockexchange.Inthesameyearhowever,BASFacquired CropDesign, for CEO Johan CardoentheultimateacknowledgementofCropDesign’svalue: “Our company was very interesting toBASFbecauseofouruniqueknowledgebaseintheareaofcropyieldandourexclusiveresearchplatform,TraitMill™.”

First products by 2012

Throughouttheworld,theentirefoodsectorislookingfornewwaystoenhancetheproductivityofcrops.Lessandlessfarminglandsareavail-able and many are used nowadays for theproductionofbiofuels. Inaddition,grainpricesarerisingrapidly.Ontheotherhand,thegrowingworld population needs good-quality food,where crops are less infected by drought andlessdependentonfertilizers.

CropDesign’straitdiscoveryprogramispoweredbytheTraitMill™platform–auniqueplatformtotesttheeffectofgenesonplantgrowth.TroughTraitMill™,thecompanyhasdiscoveredarangeof proprietary leads for yield-enhancement,

CropDesign factsheet•Founded in 1998 as a spin-off from VIB(FlandersInstituteforBiotechnology)

• Acquiredin2006byBASF•Employsabout100peopleof16differentna-tionalities

•SituatedinatechnologyparkamongotherbiotechbusinessesinGhent

•Collaboratingwithbig-namecompanieslikeMonsanto,DuPontandHonda,amongothers

CropDesign: world-class player in agronomic traits development

CropDesign delivers agronomic biotech traitsforthecommercialseedmarkets.TheFlemishfirm’straitdiscoveryanddevelopmentprogramfocuses on enhancing the grain yield of crops,such as corn and rice. Since June 2006,

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droughttoleranceandimprovednutrientuseef-ficiency, and is further testing and developingthose leads in rice and corn with a view tolaunchingcommercialproductsinthesecrops.JohanCardoen:“Weexpecttolaunchaproductfor the enhancement of corn yields in 2012, inclosecooperationwithMonsanto.Theresultsofourresearchonricearealsoverypromising.”

TheTraitMill™platform isCropDesign’sshow-piece, Cardoen continues: “TraitMill™ is theworld’slargestplatformforthesekindsofanal-yses. It investigates the influence one specificgenehasoncropyields.We introduceasinglecandidategeneintoariceplanttoexaminetheeffect.Onadaily basis, 50,000digital picturesaretaken,readytobeanalyzedbyourcompu-tersandtop-levelscientists.”

Four reasons behind CropDesign’s success

JohanCardoendistinguishesfourmainreasonsfor thesuccessofCropDesign.Thefirstone isthe role that VIB (Flanders Institute forBiotechnology) has played in the company’sstory. He praises their expertise and profes-sionalattitude.Thesecondbeneficialfactorwasthefinancial aid theygot from theFlemish in-vestment company Gimv and their long-termvision. “A thirdsuccess factorwas the fundingprovided by the Institute for the Promotion ofInnovation by Science and Technology (IWT),”Cardoenexplains.“ThefourthandlastreasonistheexistenceofthebiotechclusterinFlanders.Itincreasestheincubationpossibilitiesandthelocalpresenceof talentedscientists results inan area with a large amount of expertise andstate-of-the-artinfrastructure.”

“The biotech cluster in Flanders increases the incubation possibilities and the local

presence of talented scientists results in an area with a large

amount of expertise and state-of-the-art infrastructure.”

Johan Cardoen, CEO CropDesign.

Flanders: the ultimate biotech areaTheimportanceofFlandersasabiotechareaisnotvalued properly, according to Johan Cardoen:“Flandersistheworld’smostsignificantclusterintheareaofagriculturalbiotechnology. It’ssome-thingweallshouldfeelmoreproudabout.Therearealmostnocorporatefailurestoreportamongfledgling Flemish life sciences companies. Thepercentageofsuccessfulstart-upsisveryhigh.”

AfirstwaveofbiotechcompaniesinFlandersap-pearedinthe80swithPlantGeneticSystemsandInnogenetics as the main examples. A secondbiotechwavehappenedtenyearsago,whensuc-cessfulbusinesses likeAblynx,Devgen,Tigenix,Thrombogenics and CropDesign came on thescene.

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Crucial funding from Flanders

Two Flemish organizations were vital to theinitialgrowthof thecompany:Flanders’majorprivateequityandventurecapitalproviderGimvandtheInstituteforthePromotionofInnovationbyScienceandTechnology(IWT).“Bothorgani-zationsprovideduswiththenecessaryfundingand expertise,” recalls Devgen’s CEO ThierryBogaert.“FromGimvanditsbiotechfundweob-tained the necessary funding to create a solidfinancialbaseforourbasicresearch.And,overtheyears,wecouldcountonca.€10millionoffundingfromIWT,essentialforthehigh-riskre-search that we would otherwise be unable toperform.Theyhaveproventobeflexibleorgani-zationswithalong-termviewandtheabilitytothinkalongwithourprojects.”Strategic alliance with Monsanto

With the help of thesemajor partners, Devgenfurther expanded its technology with a sharpfocusontheagroindustry. In2007,DevgenandAmericanagriculturalbiotechcompanyMonsantoenteredintoafive-yearresearchandtechnologyagreement, thereby giving Monsanto access toDevgen’s RNAi crop protection technology forvariousapplicationsincorn,cotton,soyandveg-etables. Through the same agreement, DevgenhasnowaccesstoMonsantotechnologyforap-plicationinitscropsofinterest.

From technology to 3 kg bags of seedsFor other crops, such as rice, pearl millet,sorghumandsunflower,Devgenhasbuiltupitsown hybrid seed businesswith a focus on theAsianmarket.Thecompanyownsthecompletechain,fromR&Dtoselling3kgbagsofseedstofarmers.“Wehavesetupourownsubsidiaries

Devgen: leading seed and crop technology businessTheGhent-basedagrobiotechfirmDevgenisaglobalplayerintraittechnologyforcropprotec-tion and in the development, production andcommercialization of newhybrid seeds result-inginhigheryield. Italsodevelopsasaferandeco-friendlier nematocide, an agro-chemicalprotecting crops against nematodes. To illus-trate the company’s success, Devgen today isselling to farmers all over India new hybridseedsresultinginhigheryieldsdespiteincreas-ingchallengeswithrespecttotheavailabilityofwater,landandlabor.

DevgenhasitsrootsatGhentUniversitywheregene technological research is conducted intopossible parallels between different types ofgeneticinformationinanimalsandplants.Thissearchforapplicationstodecipherthisgeneticinformation resulted in the spin-off companyDevgen.

Devgen fact sheet

•Foundedin1997byProf.ThierryBogaertofGhentUniversity

•Headquartered in Ghent with regional offices inSingapore,Delaware(USA)andHyderabad(India)

• Atotalworkforceofmorethan200people• Listed on Eurolist by Euronext Brussels sinceJune2005

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“We have set up our own subsidiaries to market our technology in countries

worldwide. Flanders is the technological dynamo and engine for our business and the place from where we coordinate our global

operations.”Thierry Bogaert, CEO, Devgen

Emeritus Professor Marc Van Montagu: founder of today’s plant biotechnology

Flandersistrulythebirthplaceofplantbiotechnol-ogy as we know it today. At the roots of ouroutstandingreputationinthisfield,liesthescientificresearchofEmeritusProfessorMarcvanMontagu,aformerresearcheratGhentUniversity.

TogetherwithhiscolleagueProf.JeffSchell,MarcVanMontagudiscoveredthegenetransfermecha-nismbetweenAgrobacteriumandplants.Thisledto the development of methods to alterAgrobacteriumintoanefficientdeliverysystemforgeneengineeringandtocreatetransgenicplants.

He developed plantmolecular genetics, in par-ticular molecular mechanisms for cellproliferationanddifferentiationandresponse toabioticstresses(highlightsituations,ozone,cold,salt and drought) and constructed transgeniccrops (tobacco,rapeseedandcorn)resistant toinsectpestsandtolerantofnovelherbicides.

Prof.VanMontaguhasmorethan1,000scientificpublicationstohisnameininternationalandna-tionaljournalsandbooksandholdssixhonorarydoctoral degrees. He has received numerousawards for his pioneering work, including thecovetedJapanPrize.

Want to…?… benefit from Flanders’

unrivaled expertise in plant biotechnology?

If so, contact us today at Flanders Investment & Trade. It will be our pleasure to assist you. Call us on +32 2 504 87 11

or email us at invest@flanders.be

tomarket our technology in countries suchasIndia,thePhilippinesandsooninIndonesiatoo,”Bogaertcontinues.“Flandersisthetechnologi-caldynamoandengineforourbusinessandtheplacefromwherewecoordinateourglobalop-erations.”

Devgen offers crop protection against a broadrangeofpests. Ithasdevelopedahi-techseedplantbreedingtechnologytomarkethybridandtransgenic seeds. And it has come up with achemical solution to fight nematodes (micro-scopicworms that damage the roots of crops).Devgen’snematocide,applicabletoabroadgroupofhighvaluespecializedcropssuchastomatoes,carrots,cucumber,melons,andotherkeyindus-trialcropsisestimatedtobelaunchedin2010.“Weareproudtobeoneofthefewindependentbiotechcompaniesthathassuccessfullydevel-opeditsownmarketnicheinanindustrywithahigh consolidation level,” Bogaert concludes.“The seed business in India and other targetmarkets isgrowing rapidlyandweare furtherdeveloping our technology here in Flanders to

underpinthatgrowth.Worldwide,Devgenenjoysanoutstandingreputationfor

excellencewithmajor industrialplayers. Successful R&D col-laborations,liketheonewiththe Japanese chemical

concern Sumitomo, areproofofthis.”

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Advantage 2: A global market leader in pharmaceutical production and R&D

Tigenix: groundbreaking cell therapyTheLeuven-basedbiotechcompanyTigenixde-velopsgroundbreakingcelltherapyapplicationsinthefieldofregenerativemedicine.Itsfocusison the repair of cartilage defects in the kneejoint. Tigenix is researching cell-based thera-peuticsthatcoulddelayorpreventtheonsetofarthritis and offer a long-term cure. In ourageing society there is increasing demand fortreatmentssuchasthese.

Thecompanyisaprimeexampleofthegrowingsynergy between the academic and businessworld in the field of biochemistry in Flanders.TigenixhasastronglinkwiththeuniversitiesofGhent and Leuven, generating the fertile soilneededforrevolutionaryresearch.

Flanders is a world-class player in human healthcare. The region is ahead of the game when it comes to the production of pharmaceuticals: over 5 per cent of the global output of pharmaceuticals is made in Flanders. Big names in the worldwide pharmaceutical industry have a range of facilities in the region. But Flanders offers much more than this. A wide range of promising biopharma companies, spun off from Flemish universities or from subsidiaries of international concerns, find Flanders an ideal environment in which to foster sustainable growth.

Tigenix’ Flemish base offers further advantages

“Because of the large concentration of cutting-edge pharmaceutical companies here, we caneasilyfindqualifiedpersonnel,”saysKrisMotmans.“ThehighqualityoflifeinFlandersalsomakesitanattractiveregionforexpats.”“ForacompanysuchasTigenix,whichisstillcompletelydependentonoutside capital, the subsidy programs of theInstituteforthePromotionofInnovationbyScienceandTechnology(IWT)provideawelcomesourceofrevenue.ThetaxbreaksforIPearnings–limitingthetaxrateto6.7%–areanothermajorplus.”

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ChondroCelect: impressive breakthrough

Tigenix hopes to obtain approval to sellChondroCelect in the EU from EMEA, theEuropean health authority, in the first half of2009. It is alsoTigenix’ intention to submit thedossier in the secondhalf of 2009 to theFoodandDrug Administration (FDA) for approval intheUSA.KrisMotmans,inchargeofcommuni-cationsatTigenix,explainsthat“ChondroCelectis based on the Autologous ChondrocyteImplantation(ACI)technology.Abiopsy isdonetoremovearticularcartilagecellsfromthepa-tient’s knee joint. These are then placed in aculturewheretheyreplicate.Thenewcellsarereimplanted in thepatient,where theydevelopintocartilagecellsendrepairthetissue.”WithconventionalACItreatmentsthereisnoguaran-tee,however,thatthecartilagewillreverttoitsoriginalstate.Whencartilagecellsareplacedinaculture,theylosetheirphenotypicpropertiesaftera fewdivisions.Thismeans that theywillnot necessarily keep their characteristics ascartilagecells.

Tigenix hasmadean impressive breakthroughinthisarea.“Usingadvancedresearchmethods(Marker analysis), wewere able to establish a

qualityscorefor‘good’cartilagecells,”explainsKris Motmans. “There is a high correlationbetweenapositivequalityscoreandtheabilityof the cultured cells to form stale cartilage invitro. Patient data, collected three years aftertreatment,provesthatChondroCelect isbettersuitedtorepairingcartilageinjuriesthanmicro-fracture, which is the current standardtreatment.”Evidence-based medicine an advantage

KrisMotmansexplains that the strong resultsarepartiallyduetoTigenix’sfocuson‘evidence-based medicine’. “Even before Europeanlegislation imposed advanced quality controland clinical studies for cell therapy, similar tothose for traditional medications, Tigenix hadalreadychosentogothisroad.ChondroCelectisthefirstandsofaronlycartilagerepairproductforwhichPhaseIIIstudieshavebeensuccess-fully completed.” With EMEA now requiringclinicalstudiesfromthecompetition,thismeansthatTigenixhasasignificantlead.Tigenixisnowreadytoexpand itsproductpipeline.Usingthesameevidence-basedphilosophy,itisplanningto develop a treatment for meniscus defects,amongothers.

Tigenix fact sheet

•Foundedin2000asaspin-offfromtheuniversi-tiesofLeuven(K.U.Leuven)andGhent(UGent)

• Employsca.80people•HeadquartersinLeuvenandproductioninLeuvenandMemphis(USA)

• Investmentofca.€8millioninR&Din2007• IPO in 2007, listing its shares on the EuronextBrusselsstockexchange

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ThromboGenics: an emerging force in eye and vascular medicine

Establishedinthe80s,ThromboGenicsfocuseson the development of therapeutics for condi-tions related to the vascular system. It hasdeveloped a strong pipeline of promising drugcandidatesforthetreatmentofvisualdisorders,cardiovascular diseases and cancer. WithMicroplasmin,itsleadproduct,ThromboGenicsishopingtodevelopanon-surgicaltreatmentofavisualdisordercalledfocalvitreomacularad-hesion.

ThromboGenics could count on the widelypresent academic expertise in Flanders todevelopitscure.“InFlanders,thereisastronglinkbetweenthescientificandindustrialworld.Nexttoourin-houseexpertise,wealsorelyonsolid collaborations with research institutionsanduniversities tomapout certain targets forus,”explainsCEOPatrikDeHaes.

Microplasmin: high potential

Focal vitreomacular adhesion is a condition inwhich the vitreousgel in the center of the eyehasanabnormallystrongadhesiontotheretinaat the back of the eye. These adhesions cancausevesselandretinaldistortion,resultingindeteriorationofthepatient’svision.Thiscondi-tionnowrequiresmajoreyesurgery,ariskyandcostly(upto10,000)interventionthatiscarriedout no less than 600,000 times a year. WithMicroplasmin,which is also used in the treat-mentofstroke,ThromboGenics isaimingforasimpleone-off procedure thatwouldeliminateoneinthreeoftheconventionalinterventions.

A milestone: in-house clinical trials

ThromboGenicsgenerally showsproof-of-con-ceptforitsproductsbytakingthemthroughtocompletion ofPhase II clinical trials, and thenlicenses the products to its pharmaceuticalpartners. However, ThromboGenics recentlystarted its own Phase III clinical trials forMicroplasmin. “Undertaking Phase III clinicaltrials is amajormilestone in ThromboGenics’corporate development,” says Patrik DeHaes.

Flanders offers pretty picture for the life sciences

AccordingtoPatrikDeHaes,“ThromboGenicsisacompanywithaveryinternationalperspective,butithasneverconsideredshifting its focusaway fromFlanders.Theclimatehere isverypositive for thelifesciencessectoringeneral.Firstofall,thepoli-ciesofthegovernmentareopenandproactiveanditsleaderslistentotheneedsofthecompaniesinthe sector. Secondly, institutions such as VIB(Flanders Institute for Biotechnology) which fuelscollaboration between the government, the aca-demicworldand industry,andFlandersBio,whichlobbiesandnetworksonthesector’sbehalf,createconsiderableaddedvalue.There isaveryproduc-tive interaction with the academic world possiblehere,nottomentionthatitprovidesuswithasourceof highly educated talent.” Patrik DeHaes is alsoenthusiastic about the tax advantages for IP (taxrate limited to 6.7%) and the subsidies from theInstituteforthePromotionofInnovationbyScienceandTechnology(IWT).“Addtherelativelylowcostofrealestatetothisandyougetaveryprettypicture,”heconcludeswithconviction.

ThromboGenics fact sheet•Employsaround50people•Spin-offfromtheUniversityofLeuven(K.U.Leuven)

•Marketcapitalizationofover€200million•HeadquartersinLeuvenandsubsidiariesinNewYork(USA)andDublin(Ireland)

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“Itisuniqueforarelativelysmallcompanysuchasourstorunthesetrials.Theyareexpectedtobefinishedbytheendof2010.”

Other very promising products in the pipelinearedrugsbasedonantibodiessuchasTB402(Anti-factorVIII,abloodthinnerforthepreven-tionofthrombosis)andTB403(anti-PlGF,whichcountersthegrowthoftumorsbypreventingtheformation of new blood vessels). It isThromboGenics’long-termambitiontodevelopa commercial organization large enough tomarketMicroplasminforitsfirstindication.

Janssen Pharmaceutica: the single biggest investor in R&D in Flanders

The Flemish company Janssen PharmaceuticawasestablishedbyDr.PaulJanssen(1926-2003).Today,itisaworldwidecompanyandamajorpartofthethirdlargestpharmaceuticalcompanyintheworld,Johnson&Johnson.ThesiteintheFlemishtownofBeerseis,withintheJohnson&Johnsongroup,thelargestforpharmaceuticalR&D.

FourJanssendrugs–Haldol,Ergamisol,Daktarinand Vermox are included in the World HealthOrganization’smostrecentModelListofEssentialDrugs,ofwhichtherearepresentlyabout300.

ForseveraldecadesnowJanssenPharmaceuticahas been the single biggest investor in R&D inFlanders.In2008thecompanyturnedover€1,787millionandploughedback€1,137millionintoR&DinFlanders.

Dr. Paul Janssen: the most successful researcher into new medicines of the 20th century

Forhundredsofmillionsofpatients,thedrugs&medicines that Dr. Paul Janssen and his teamsdiscovered continue to make the differencebetweenlifeanddeath,painandcomfort,diseaseandhealth.Heisgenerallyrecognizedasoneofthemostsuccessfulinvestigatorsintonewmedi-cinesofthetwentiethcentury.Togetherwithhisteams of research scientists, he developed nu-merous innovative medicines effective in anextensiverangeofdiseasesanddisease-relatedareas,amongthempaincontrol,psychiatry,gas-troenterology and various infectiousdiseases inhumans,animalsandplants.

Inthecourseofhislife,hereceivedmanyprestig-ioushonorsfrominstitutionsof learningaroundtheworld, including22honorarydoctoratesand5honoraryprofessorships,forhisgroundbreak-ingworkinthediscoveryanddevelopmentofnewmedicines.

Pfizer: has its second largest production site in Flanders

The Flemish town of Puurs is home to Pfizer’slargestEuropeanproductionandpackaging fa-cility. It is thesecond largestproductionsiteofPfizerworldwide.Usingthemostadvancedtech-nology, over 200million units of sterile,mostlyinjectabletherapeutics,areproducedandpack-agedannuallyinbottles,ampoulesandsyringes.Over1,400peopleareemployedatthesite.Over96%of theproductionhasadestinationoutsideFlanders,to170countriesworldwide.

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Galapagos: major breakthroughs in drug discovery and developmentThe neurodegenerative disease Alzheimer’saffects28millionpeopleworldwide.Uptillnow,nocurehasbeenfoundtothisterminaldiseasewhichelderly people are suffering in ever greaternumbers. The Dutch-Flemish biotech firmGalapagoshasbeenmakinggreatstridestocureAlzheimer’s.Thedrugdiscoveryanddevelopmentcompanyrunssmallmoleculeprogramsinboneand joint diseases, bone metastasis, cachexia,

anti-infectives and metabolic diseases. In boneandjointdiseasesGalapagoshasoneofthelargestdrugdiscoveryprogramsintheworld.

Galapagoshasenteredintolong-termalliancesformostofitsresearchprogramswithtop-tenpharmaceuticalcompanies.Theserisksharingalliancesenableittobuildapipelineofdrugsinits disease areas, based on the proprietarytargetsthatithasidentified.

Breakthrough in Alzheimer’s research

InFebruary2009,Galapagosannouncedthediscov-eryofahumandrugtarget,calledGPR3,thatplaysakeyroleinAlzheimer’sdisease.ThisbreakthroughwaspublishedinScience,oneoftheworld’smostprestigiousscientificjournals.ThedatapresentedinScienceisaresultofthecollaborationbetweenGalapagos and the academic group of ProfessorBart De Strooper at VIB (Flanders Institute forBiotechnology) and the Flemish universityK.U.Leuven. The U.S. Patent Office has grantedGalapagosapatentonthisdiscovery.Crucial funding from Flanders

Galapagos identified novel targets, such asGPR3,inAlzheimer’sdiseaseusingitsproprie-taryadenoviral-baseddiscoveryplatform.Thisworkwassupportedbya€1.4milliongrantfromtheInstituteforthePromotionof InnovationbyScienceandTechnology(IWT).

In February 2009 the company was awardedanother €837,000 grant from IWT. Galapagoswillelucidatethestructureofnoveldrugtargetsandrelatedsmallmoleculesinitsboneandjointdiseaseportfolio.Thetwo-yearprojectfocusesonGalapagos’noveldrugtargetsandthecandi-date drugs that bind to these targets. ThecompanywillcollaborateonthisprojectwiththerenownedStructuralBiologyBrusselsgroupatVIB(FlandersInstituteforBiotechnology).

Galapagos factsheet

•Establishedin1999asajointventurebetweentheDutchfirmCrucellandtheFlemishbiotechcompanyTibotec

•Global headquarters in the Flemish city ofMechelen

•Hasentered intostrategicallianceswithGSK(osteoarthritis), Janssen Pharmaceutica(rheumatoidarthritis),EliLilly (osteoporosis),Merck (diabetes and obesity) andMorphoSys(foranantibodyinboneandjointdiseases)

•Employs 470 people operating in facilitiesspreadover6countries

• ListedontheEuronextBrusselsandEuronextAmsterdamstockexchangesandon theU.S.OTCmarket

A random selection of other successful human healthcare companies in Flanders•ActoGenix•Alcon•AstraZeneca•BarrierTherapeutics•Diatos•GenzymeFlanders• Innogenetics•Movetis• Schering-Plough• Tibotec• TorreyPinesTherapeutics

Interested…?… to learn more about

Flanders’ world-leading position in the production and

R&D of pharmaceuticals? If so, contact us today at

Flanders Investment & Trade. It will be our pleasure to assist you. Call us on +32 2 504 87 11

or email us at invest@flanders.be

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Genencor: world-leading enzyme producer in Flanders

WhatstartedoutasalocaldistilleryinthehistoriccityofBrugesin1880,hasevolvedintoaGenencorbenchmark production facility for industrialenzymes. With close on 1,500 employees andworldwide operations, Genencor is the world’ssecondlargestindustrialbiotechorganization,pi-oneeringinenzymeinnovationandaleadingforceinindustrialbiotechnology.Itsproductsandsolu-tionsaresoldacrossabroadrangeofindustries,fromtextilestobiofuels,andfromlaundrydeter-gents to animal nutrition. Since 2005, GenencorhasbeenpartoftheDanishcompanyDanisco,oneof themajor global producers of ingredients forfoodandotherconsumerproducts.

Advantage 3: Industrial expertise and pioneering power in industrial biotechnologyIn addition to being a unique life sciences cluster, Flanders is home to Europe’s largest chemicals cluster and to a large number of international food concerns. Together with a modern transport infrastructure these form the ideal surroundings for companies active in industrial biotech. Several leading players focus on converting renew-able raw materials, intermediary products and process tools with the aid of biological systems. In addition, Flanders also has some unique pioneering projects in its portfolio that are fast propelling industrial biotech activ-ities in the region to a place in the European elite.

TheGenencorsiteinBrugesturnsout20differ-entenzymes,thelargestnumberofenzymesbyanyplantintheGenencorgroupworldwide.Thelion’s share thereof is destined for food andanimalfeed.Otherpartsoftheoutputgo,amongotherthings,tothestarchprocessingindustry,applications in the textile industry and to theproduction of detergents and bioethanol. ThismakesGenencorinBrugesoneofthemostver-satileandflexiblemanufacturingoperations intheoverallorganization.

Excelling in process optimization

Genencor dedicates around 13 per cent of itsrevenuetoR&D,whichisahighlevelforanon-pharmaceutical company. Research is done inotherfacilitiesbut,inFlanders,crucialprocessdevelopmentandtestingtakesplaceattheunit

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inBruges.A small teamof development engi-neers makes a valuable contribution to theplant’sefficiency.“Theyexcelattheirjobofcon-tinually optimizing our processes and theytransfertheirknowledgetootherplantswithintheGenencorgroup,”saysPlantManagerFransVan Londersele. “Here in Flanders, engineersreceive a broad academic training. They thinkbeyondtheirspecificfieldoffermentationtech-nologyandaredriventorealizeinnovationsthat

arethensharedwithotherplantsinthegroup.The fact that almost our entire staff speaksEnglish facilitates the efficiency of this knowl-edgetransfer.”Genencor Bruges excels in handling the ex-tremelycomplexinternallogisticprocessthatisinherent to a multipurpose plant. “Our facilityplayedakey role in implementingahighlyad-vanced planning ERP system,” Frans VanLonderseleadds. “Newchallengesare tackledhead-onatourplant.WithintheGenencorgroup,wehavebeenrecognizedasabenchmarkplantforourcost-efficiencyandourprocessoptimi-zation.”

Well surrounded by the right industries

Besides the right people, Flanders providesGenencorwiththeidealindustrialsurroundingsforitssustainedsuccess.“Technology,rawma-terials, know-how and logistic support foroperations,allthiscanbefoundclosebyintheheart of Europe. Thismakes for cost-effectivetransport,” Van Londersele continues. “Wedeliver our enzymes all over Europe and tocertainpartsofAfricaandtheMiddleEast.Thisstrategic location, close to our targetmarketsandtothesuppliersofourrawmaterials,isanextra advantagewe get by running our opera-tionsfromFlanders.”VanLonderseleseesgreatpotentialforindustrialbiotech in Flanders. “A lot of international foodgroupshaveastrongpresenceinourregion,”heconcludes. “Theirstreamofwasteproducts isahugesourceofbasematerialsforthebiotechin-dustry.FlandersisalsoaEuropeantopregionasfarasthechemicalindustryisconcerned.Inthecollaborationbetweentheseindustries,basedonthewidelypresentexpertiseinbiotechhere,liesahugepotentialforthefurtherdevelopmentof in-dustrialbiotechinFlanders.Bio-catalysis-wherenewcatalystsandnewprocessesaredevelopedthrough tight integration of chemistry, processtechnologyandbiotech-isafineexampleofthis.”

“Within the Genencor group, we have been recognized as a benchmark

plant for our cost-efficiency and our process optimization.”

Frans Van Londersele, Plant Manager, Genencor Bruges

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Bioethanol production at the heart of Europe ThefirstcompanytomakebioethanolinFlandersistheFrench-ownedleadingsugargroupTereos– through its subsidiary Syral. Following per-missionbytheFederalgovernmenttoannuallyproduce32,000m3, theSyralwheatprocessingplantinthetownofAalsthasnowinvested€20million in a new unit dedicated to bioethanolproduction.

With an annual production of 1.5 million m3,Tereos is the European leader and the globalnumberfivewhenitcomestobioethanolproduc-tion.AtitsSyralplantinAalst,wheatisprocessedintoflourandsubsequentlyintostarchandpro-

teinsforthefoodindustryandintofibersforthepaperindustry.“Theresultantstarch-containingby-productsarethebaseproductsforourbioeth-anol operation,” says Ortwin Callewaert, PlantManager of the Syral site in Aalst. “Our newprocessingunityieldsasignificantimprovementinaddingvaluetotheseby-products.”Expertise in process technology

Ifabioethanolproducerwantstobesuccessful,itneeds the right yeastsand the rightenzymepreparations.Syraldoesnotdeveloptheseitselfbutdrawsontheexpertiseofpurebiotechcom-panies to do this. “We focus on optimizingproductionattheprocesslevel,”Callewaertex-plains.“Wehaveourin-housespecialiststodothis.Here,inAalst,wehavecloseon140yearsofgrainprocessingexperience.Thankstothis,westayontopofthetechnologicaldevelopmentwhensettinguptheseproductionlines.”Today,first-generationbiofuelsbasedongrainsarebeingproducedworldwide.Productionpro-cesses are being optimized and themarket isdeveloping rapidly. For the second-generationbioethanol,specificcropswillbecultivated.“Itiscrucial thatwelayasolid foundationforthefurther development of bioethanol,” he contin-ues. “Demand is growing and the industry isdeveloping fast.Flanders isdoinganexcellentjobatbuildingupthenecessaryexpertise,bothinR&Dandinproductionprocesses.”

The production of bioethanol is a highly-auto-mated process and therefore requires highlyskilled people to operate the production lines.

Ghent Bio-Energy Valley: developing the bio-based economy of the future

GhentBio-EnergyValleyisajointinitiativeofGhentUniversity,thecityofGhent,thePortofGhent,theEast-FlandersDevelopmentAgencyandanumberofindustrialcompaniesbasedintheGhentregionthatareactiveinthefieldsofbio-energygenera-tion,distribution,storageanduse.

PrivatepartnersinGhentBio-EnergyValley:

•BiochemicalproducerGenencor•Biofuel producers Alco-Bio Fuel, OleonBiodieselandBIORO

•EnergysuppliersElectrabelandSPE•Storage and transport specialists, such asOiltanking,Sea-Invest,AXTOLLandLalemant

•Engineering and construction companies likeFabricom, BnS Engineering and GeodeticsConstructionMaintenance(GCM)

•FoodgroupCargill•Waste treatment specialist Organic WasteSystems

•ConsultancyfirmErnst&Young• Venture capital firm Capricorn VenturePartners

Thepartnershippromotesthedevelopmentofabio-based economy through collaborative pro-grams, joint initiatives and synergy creationbetween the project partners in the fields ofResearch&Development,structuralmeasuresandpolicy,logisticsandcommunicationtowardsthegeneralpublic.

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Bio Base Europe: Europe’s first open innovation and education center for the bio-based economy Flandersanditsneighbor,theNetherlands,havejoined forces to build state-of-the-art researchandtrainingfacilitiesforbio-basedactivities.Thegoal?Tospeedupthedevelopmentofasustaina-ble bio-based economy in Europe. Bothgovernments have allocated, between them, atotalof€21milliontothisuniqueproject.

BioBaseEuropeistheresultofastrategicalli-ance between Ghent Bio-Energy Valley (Ghentport area, Flanders) and Biopark Terneuzen(Terneuzen port area, the Netherlands). With acombinedproductionof1.2milliontonnesofbio-fuels per year, the ‘Ports Group of Ghent andTerneuzen’ is already market leader in Europe.Thenewprojectissettotransformtheregionintothemainbio-economygatewayinEurope.

Pilot Plant and Training Center

The Bio Base Europe Pilot Plant will focus onsecondgeneration technologies toconvertagri-culturalwasteproductsandnon-foodcrops,suchaswheatstraw,corncobs,woodchips, jathropaandalgaeoilintobio-fuels;bio-plasticsandotherbio-products. The facility will be located nearGhentandisexpectedtobeoperationalby2010.

Bio Base Europe’s state-of-the-art TrainingCenterwilladdressanindustry-wideshortageofskilledprocessoperatorsand technicalmainte-nance specialists, especially for the bio-basedeconomy.Itwillfeaturetrainingfacilitiesforbio-basedactivitiesandoperateaccordingtoanopeneducationmodel, providing standard as well ascompany-specific training and education. Thecenter will be located close to Terneuzen. Theprojectedopeningdateisin2011.

Want to…?… benefit from Flanders’ industrial experience and

pioneering work in industrial biotech? If so, contact us

today at Flanders Investment & Trade. It will be our pleasure

to assist you. Call us on +32 2 504 87 11 or

email us at invest@flanders.be

“Flanders stands out, compared to otherEuropeancountries,asfarastheskillsofblue-collarworkersareconcerned,”saysCallewaert.“Ontopofthat,theyaremultilingual,whichisavaluableassetforaninternationalcompany.”

Central location in Europe is crucial to the logistics

ThebulkoftheoutputatAalstisdestinedfortheproduction of ethyl tertio-butyl ether, betterknownasETBE,whichisanadditiveinthepro-ductionofgasoline.“Ourmaincustomer istheTotal-PetrofinarefineryintheportofAntwerp,”Callewaertexplains.“Weshipoutbioethanolonbarges via the river Dender here at the plant.Flanders’ highly developed inland waterwaynetwork perfectly lends itself for this kind ofeco-friendlytransport.”ThecentrallocationinEuropeplaysamajorroleinthe enduring success of the Aalst-based plant.“WearesimultaneouslylocatedclosetoEurope’sindustrial centers and to the large agricultureareas,” Callewaert concludes. “Flanders canboast four reputed international seaports and ahigh-density network of excellent road, railroadandinlandwaterwaysfortransportationfromandtotheEuropeanhinterland.Thismeansthesupplyofbasematerialsandthedeliveryofourbioetha-nolisbothcost-effectiveandjustintime.”

“Flanders’ central location in Europe plays a major role in the long-lasting success of the

Aalst-based plant. We are simultaneously located close to Europe’s industrial centers and to the

large agriculture areas.” Ortwin Callewaert, Plant Manager, Syral Aalst

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SGS: performing clinical trials in FlandersHeadquartered inGeneva, Switzerland, SGS isthe world’s leading inspection, verification,testingandcertificationcompany.SGSemploysca. 55,000 people and operates a network ofmorethan1,000officesandlaboratoriesaroundtheworld.Asfaraslifesciencesisconcerned,SGS has a global staff of 1,300. In Flanders,around300peoplecontributetothesuccessofSGSasacontractresearchorganization(CRO)in the product development process of a widerangeoflocalandinternationalpharmaceutical,biotechandmedicaldevicecompanies.

SGS’clinicaltrialsservicesassiststhesecom-panies in creating their product developmentplan and in the execution of the different re-search phases; from the early developmentstages until the commercialization of the fin-ishedproduct.Thetestingactivitieshelpimproveefficiency,reducecostsandensurethesafetyofpharmaceuticalproducts.“Flandersisanidealregionforthiskindofactivity,”saysRobertLins,Business Manager Benelux at Life ScienceServices.

Fast approval for Phase I trials

SGSperformsitsPhaseIresearchmainlyattwoAntwerp-based hospitals, the StuyvenbergHospital and the University hospital. SGS’further trials, Phases II through IV, and somephaseItrialstakeplaceinFlandersandincoun-

Advantage 4: All the innovative suppliers and support services close byThe flourishing life sciences industry in Flanders has resulted in a rich landscape of innovative suppliers and support services. These experienced players specialize in a wide range of services. From services for clinical testing over state-of-the-art product development and lab equipment suppliers to life sciences patent bureaus and specialized logistics players. Together they form an indispensable link in the sustainable success of the life sciences industry in the region.

tries the world over. “An approval for Phase Itrialscanbereachedhereinameretwoweeks,”saysLins.“Thisisamajoradvantagecomparedtoothercountries.Thefederalgovernmentherehas alsomadegreat efforts to drawup - veryearlyin2007-aBelgianguidancedocumentforearlyexploratory trials.Notonlydowebenefitfromtheshortapprovaltimespan,wealsoreapthe fruits of the excellent collaboration thatexistsbetweenthegovernmentandthephaseItrial centers active in the region, which areunitedintheBelgianAssociationofPhaseIUnits(BAPU).”

ThecityofMechelenisSGS’operationsbaseforall organizationalaspectsof theclinical trials.From project management and data manage-ment through to pharmacovigilance andregulatory aspectswith local andnational au-thorities and regulatory bodies, such as theAmerican Food & Drug Administration (FDA)andtheEuropeanMedicinesAgency(EMEA).

And other major advantages in FlandersFlandershasahighnumberofclinicaltrialspercapita. “Although the region has a relativelysmallpopulation,therecruitmentofhigh-quali-tytrialsubjectsrunssmoothly,”Linscontinued.“Inaddition, thehospital testing infrastructureisexcellentandthetrialpublicationsareofhighquality.It isatoptrialregionforusinwesternEurope.”

Oneof themajorstrengthsofSGS is itsenor-mousflexibility.“Wehavegrownoutofanumberof small enterprises,” Lins explains. “This hasalwaysgivenustheadvantageofdealingflexiblywith our customers. This flexibility is also re-flected in the many SMEs Flanders’ businesslandscapeiscomposedoff.Anotherkeybenefitofthishigh-densitylifesciencesregion.”

The hospital testing infrastructure in Flanders is excellent and the

trial publications are of high quality. It is a top trial region for

us in western Europe.” Robert Lins, Business Manager Benelux, Life Science

Servicesr

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CoordinatoratVerhaert.“Enhancingtheimagingcapacityofconfocalmicroscopesandoptimizingbloodpressuremonitors,are justafewexam-ples.Butalsoparamedicalapplicationsfortheelderly, such as fall detection and tracking &tracingsystems.”Verhaert works closely with centers of knowl-edge from around the world, but mostly withthose from Flanders. Wouters explains: “TheFlemishuniversitiesandcollegesofhigheredu-cationprovideuswiththerightscientificexpertisetoaddtoours.Forexample,incollaborationwiththeUniversityofAntwerpwedevelopedamobiledevice that allows lab staff to control the tem-perature in cell cultures. In this way the cellculturescangrowunderthesameoptimalcondi-tionsastheirnaturalhabitat.TogetherwithGhentUniversity,weinventedarevalidationdevicethathelpspatientswiththeirexerciseswhenrecover-ing from a shoulder fracture. Starting from amedicalprotocolwe turned it intoahighly-effi-cient device that can be taken home from thephysiotherapist to work with.” Up till know,Verhaert’s innovationshave lead to inexcessof140patentswithitscustomers.

Verhaert Masters in Innovation: bringing life sciences companies state-of-the art innovationWheredoorganizationsfindnewwaystocreateadded value for their customers? From auto-motive and aerospace over chemical andmaterialstoICT,healthcareandpharmaceuti-cal? Well, they can count on a wide range ofinnovative products and services designed by

the Flemish firm Verhaert, Masters inInnovation.Establishedin1969inAntwerp,theglobally operating company, has developedmorethan500products.

When existing products fail to deliver addedvalueinthemarketandneedimproving,Verhaertistheretoprovideinnovativeservices.Throughstate-of-the-art technical problem-solving,which results in patents for itscustomers.Butalsobyin-ventingnewtechnicalanduser experience featuresand through improvedproduct design, whichmakesforamorediversi-fiedanduniqueproductonthemarket.Knowledge is key

Asfarashealthcareisconcerned,Verhaerthasinvestedheavilyintechnologyandcandrawuponitsin-houseexpertise.“Weperformdevel-opment for a wide range of local andinternationalcustomersinlifesciences,suchasPhilips Medical Systems, Baxter, Pfizer andSchering-Plough.Othersweofferourexpertiseintheirparticularfieldofapplicationtoenhanceexistingproducts,”saysFrederikWouters,Sales

“In Flanders we can find the right highly-skilled people to staff

our operations in life sciences. In addition, the hospitals in the Flemish region are the perfect

partners to set up research programs with.”

Frederik Wouters, Sales Coordinator, Verhaert Masters

in Innovation

Flanders is an excellent base for activities in life sciences

Verhaert isperfectlyhappy tooperate interna-tionallyfromFlanders.“Wecaneasilyreachourcustomer bases in Germany, theNetherlands,FranceandtheUK.Butalsothosefurtheraway,likeinRussia,”saysWouters.Verhaertisstrong-ly anchored in the region. Through trainingprogramsatanumberofuniversitiesandcol-leges of higher education Verhaert returns itsacquiredknowledge to thecommunity. “And inFlanders we can find the right highly-skilledpeopletostaffouroperations in lifesciences,”Woutersadds.“Inaddition,thehospitalsintheFlemish regionare theperfectpartners tosetupresearchprogramswith.”

A random selection of other suppliers and supporting businesses to the life sciences industry in Flanders:•AgfaHealthcare•Barco•BectonDickinson•Cochlear•Collette•Creax•Cyberonics• LabCorp•MsourceMedicalDevelopment• TubesSouples• VanLooyGroep• XeleosConsulting

Like to…?… know more about how

Flanders’ dense network of innovative suppliers and

support services can be an asset to your business? If so, contact us today at Flanders Investment & Trade. It will be

our pleasure to assist you. Call us on +32 2 504 87 11

or email us at invest@flanders.be

23

Ranbaxy: optimizing European logistics operations from Flanders

Ranbaxy is India’s largest pharmaceuticalcompany.In2008itgeneratedaglobalturnoverofmorethan€1.138billion.Intheconcern’sam-bitious growth strategy, Flanders plays a keyrole:in2007RanbaxychoseAntwerptolocateaEuropeandistributioncenterforpharmaceuticalproducts. Today, between 100-150 tonnes ofpharmaceutical products per month are beingprocessed and distributed out of Antwerp towholesalers and distribution points aroundEurope.

Neeraj Sharma, General Manager, RanbaxyBelgium:“WithitsrecentexpansionintoEurope,Ranbaxy’s activities had grown organicallyacross several European countries. To obtainmoresynergy in termsof freightand tohaveabetter volume rebate, we decided to centralizeour logisticsoperations.For the locationofournewCombinedImport,Processing&DistributionCenter,RanbaxyoptedforFlandersandthePortof Antwerp. The reason? Its unrivaled facilitiesandprimegeographiclocation.”

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Advantage 5: World-renowned research institutions VIB and IMEC

VIB: European leader in scientific research and technology transfer

Excellence inscientificresearch inbiotechnol-ogyhasbeena constant inFlanderssince the80s. Leading scientists at Flemish universitieswereresponsibleforsomegroundbreakingre-search. To further sustain this researchexcellenceand to increase theconversionrateof research into tangible products, VIB wascreated in1996.Today, the institutehasestab-lished ten novel organizations, including fivesuccessfulventurecapital-backedbiotechcom-panies,andenjoysthereputationofbeingoneofthemostprominentbiotechresearchcentersinEurope.

VIB isan independentresearch institutewhichuniteslifesciencesdepartmentsfromthemainFlemishuniversitiesUGent(Ghent),K.U.Leuven(Leuven), University of Antwerp and VrijeUniversiteit Brussel (Brussels). It has threeoverallobjectives:- performgroundbreaking research in biologyandpathobiology,

- optimallyconvertresearchresults intocom-mercialactivities(technologytransfer),

- andcommunicatewithsocietyonanumberofbiotech-relatedsubjects.

To achieve these goals, the institute has anannualbudgetof€75millionatitsdisposal,halfofwhichisgrantedbytheFlemishgovernment.Groundbreaking research in human healthcare and plantsVIBhas65researchgroupsunderitswings,or-ganized into 13 departments. These conductstrategicbasicresearchinthefieldsoflifesci-ences: molecular biology, cell biology,developmental biology, structural biology,systemsbiology,genetics,biochemistry,micro-

A region does not obtain a leading position in the life sciences without trailblazing research institutes to foster innovative solutions that improve the quality of life for millions of people. With VIB (Flanders Institute for Biotechnology), a unique biotech research platform in Europe, Flanders is sure to remain ahead of the pack for many years to come. And that goes for IMEC as well, Flanders’ globally renowned research center on nanoelec-tronics and nanotechnology. Top scientists, international collaboration programs with major international concerns and many successful spin-offs … VIB and IMEC are truly key drivers of the life sciences industry here in Flanders.

Anti-cancer gene discovered by VIB offers exciting, new perspective for therapy

Startingwith the tiny fruit fly, and thenmovinginto mice and human patients, researchers atVIBaffiliated to theCenter forHumanGenetics(K.U.Leuven)showed,inearly2009,thatthesameatonalgenesuppressescancerinallthree.

Reciprocally, switching off the gene leads tocancer. The scientists think there is a goodchance that thegenecanbeswitchedonagainwithadrug.They reported theirfindings in thereputedscientificjournalPLoSBiology.

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Successful technology transfer Itiscrucialthattheacademicresearchresultsinnewapplicationsthatwillbenefittoday’sandto-morrow’s society. VIB concludes agreementswithfirmswillingtodevelopandcommercializeitsinventions.RudyDekeyserillustratesthissuc-cessful tech transfer strategy: “In 2007 a teamled by Emeritus Professor Walter Fiers, anddrawnfromGhentUniversityandVIB,developeda vaccine candidate which offers protectionagainst all the classic influenza strains. At thebeginningof2008,British-AmericanbiotechfirmAcambissuccessfullyconcludedaPhaseIclini-cal trialof thiscandidatevaccine.With justoneshot,thevaccinehasthepotentialtooffermulti-year protection against all classicmutations oftype-Ainfluenza.”

VIB,sofar,hasconcludedover500R&Dandli-censing agreements. 50 per cent of these arewithcompaniesbasedinFlanders,aquarterin

biology, genomics, transcriptomics andproteomics. They can boast over a decade ofglobally recognized inventions. “Recently, wehavemademajorbreakthroughsinthefieldsofcancer,immunologyandinflammation,neurobi-ology and neurogenetics, angiogenesis andcardiovasculardisease,plantbiologyandplantsystemsbiology,”saysRudyDekeyser,manag-ing director at VIB. “These results conduce togainingbasicinsightsinfundamentalprocessesinvolvedingrowthanddevelopment,healthanddisease,lifeanddeath.”

VIBalsoexploresnewtechnologiessuchaspro-teomics,thelarge-scalestudyofproteins.TheVIB Proteomics Expertise Center (PEC) per-forms proteome analysis using a uniqueprocedure.Thisrelies,incontrasttotraditionalproteomic methods, on the chromatographicproperties of proteome-derived peptide mix-tures.OutofthistechnologywasbornPronota,currentlyaleadingproteomicscompany.

Rich and diverse startup portfolio

Uptillnow,VIBhasspunoff10companies,including5venturecapital-backedbiotechcompanies thatraised,between them, €340million, employ over 400 people,havecollaborationswiththeworld’sleading(bio)pharmaandagrobiotechcompaniesanddevelopawidevarietyofinnovativeapplications:

•Devgen (listed on Euronext) develops and commer-cializes a novel generation of biotech products forcrop protection, biotech traits and germplasm forhigh yielding, high-quality hybrid rice and selectedsmallgrains.

•CropDesign(recentlyacquiredbyBASF)deliversag-ronomic traits for the global commercial seedmarkets. Its trait discovery program is powered bytheTraitMill™,auniqueplatformforappliedgenom-ics.

• Ablynx(listedonEuronext)discoversanddevelopsanovelclassofantibody-derived therapeuticproteinscalled Nanobodies®, to treat a range of serioushumandiseases.

• Actogenix develops and commercializes a newgen-erationofbiologicaldrugscalledActoBiotics™,whichhasthepotentialtotreatabroadrangeofseveredis-eases.

•Pronotahasdevelopedandimplementedanintegra-ted protein biomarker pipeline applying proprietaryprotein chemistry techniques, advanced separationsciencesandhigh-endmassspectrometry.

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Europe and another quarter in the USA. Thecompanies varywidely in size – fromSMEs tomultinationals–andinniche–from(bio)pharmatoagrobiotech.In2008,thetech-transferactivi-ties at VIB generated a combined turnover ofover€17million.

R&D facilities for companies at the heart of Europe

VIB'sbio-incubatorsofferlaboratoryandofficefacilities for life sciences companies with sig-nificant R&D activities and growth potential.They are fully licensed, up-to-date buildingsavailable for housingR&D driven life sciencescompanies.Therearethreebio-incubators:twoinGhentandoneinLeuvenincollaborationwithK.U.Leuven and the Belgian market leader inagriculturalandhorticulturalsupplies,AVEVE.They house, between them, 15 Flemish andforeigncompanies.

“Andtherearemoretocome,”saysDekeyser:“Privatefirmshavesteppedup to theplate, toprovidespecialistinfrastructuretobiotechcom-panies,andabio-acceleratorisbeingbuiltwhichthe lattercanperform theirR&Don.Thisbio-acceleratorwillinclude12,000m2oflaboratoryfacilitiesspreadover5floors inversatileunitsthat benefit froma rangeof services. FlemishbiotechcompanyAblynxhasalreadyreservedaplacethere.Weexpecttostartoperationsatthebio-acceleratorinmid-2010.”

The right environment for continued growth

“Wehavebeenable,sofar,toestablishtencom-panies, including five venture capital-backedstart-ups,”Dekeyser continues. These compa-nieshaveseenrapidgrowth;twoarenowlistedonthestockmarketandonecompanywasre-cently acquired by BASF, the world’s numberone chemical company. VIB’s spin-offs raised€340million, including over €200million fromregionalandinternationalventurecapitalfundsandemployover400people.“TheFlemishgov-ernmentalsoplaysamajorrole increatinganideal environment for the establishment andgrowth of new companies,” he says. “Becauseweareasmallregion,policydecisionsaretakenrelatively fast.New fiscal and employment in-centiveshavebeenofgreathelpinthegrowthofthe biotech sector in Flanders.” Another keydriver is the government’s Institute for thePromotion of Innovation by Science andTechnologyinFlanders(IWT).IWTprovidessub-stantialresearchfundingtobiotechcompanies,therebymitigatingsomeoftherisk inherenttothedevelopmentofbiotechproducts.

VIBistrulyaninternationallyoperatingresearchcenter.Dekeyser:“Over50nationalitiesareem-ployed here. Researchers from all over theworldhaveenrolledinourPhDandpostdoctoral

VIB at a glance

•Annualbudget:€75million(halfofwhichcomesfromtheFlemishgovernment)

•Researchstaff:1,170(51differentnationalities)• Annually25patentapplications•Annually over 70 R&D and licensing agree-mentswithcompanies(ofwhichhalfinFlandersandhalfworldwide)

• Spin-offcompanies:10•Patentportfolio:165activepatentfamilies• 7innovativedrugsinclinicaldevelopment

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programs. In Flanders they become part of aleadinglifesciencesclusterwheretheyarewellsurroundedbymultilingualpeoplewhoshowanextraordinaryopennesstodifferentcultures.Afactorthatshouldnotbeunderestimatedforthework we do here. Initiatives, such as theOdysseus program, launched by the Flemishgovernmenthavealsobeeninstrumentalinre-cruitingtopresearcherstoourregion.”

Inthefuture,VIBwillcontinueitsexcellentap-proach in research and technology transfer.“The well-considered integration of in-depthbiologywithsystemsbiology,inwhichaholisticapproach is taken, is an area we will furtherexplore,”Dekeysersays.“Thesamegoesfor‘insilico’ research, where computer models areused to simulate biological or pathobiologicalprocesses.”

VIB: 13 different research departments at 4 Flemish universities

GhentUniversity:•Dept.forMolecularBiomedicalResearch•Dept.ofPlantSystemsBiology•Dept.ofMedicalProteinResearch•LaboratoryforMolecularCancerBiology

K.U.Leuven:• VesaliusResearchCenter•Dept.ofMolecularandDevelopmentalGenetics• LaboratoryofMolecularMicrobiology• LaboratoryofDevelopmentalGenetics• LaboratoryofSystemsBiology•AutoimmuneGeneticsLaboratory

UniversityofAntwerp•Dept.ofMolecularGenetics

VrijeUniversiteitBrussel•Dept.ofMolecularandCellularInteractions•SwitchLaboratory

Life sciences companies active at VIB’s bio-incubators

• InGhent:Ablynx,Actogenix,AlgoNomics,Biomaric,BIP,PronotaandYakult

• In Leuven: Remynd, OncoMethylomeSciences, Formac Pharmaceuticals,Fugeia, Regenesys, M4S, CMPG andThromboGenics

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IMEC: where bio and nano come togetherBrainwavemonitoringsystemsthatalertyoutodangerand thenautomatically administerme-dicinaldrugstowardoffanepilepticattack,oran external systemkeepinganeyeonall yourbodilyfunctions.ThesearethetinydevicesandsystemsthatcanresultofIMEC’sresearchthatwilldominatetomorrow’smedicallandscape.Avery promising and multidisciplinary researchprogramcombinestechnologyandbiology inarevolutionaryway.Itiscalled‘Human++’.

IMECisoneofFlanders’flagshipresearchinsti-tutions, employing over 1,650 people of morethan 60 different nationalities. Through itsIndustrialAffiliationPrograms(IIAP) itcooper-ateswithleadingindustrialplayersfromaroundtheglobe,sharing intellectualproperty, talent,risksandcosts.

“About ten years ago IMEC started to do re-search in medical applications usingnanotechnology,” Kris Verstreken, ProgramDirectorBioNanoElectronics, explains. “Whatpreviously was thought impossible has nowbecomepossible,thankstothisrapidlydevelop-

ingresearch.OurHuman++Programisaclearanswer to an ageing society with spiralinghealthcare costs and is based on four mainpillars: smart implants, wearable health andcomfort monitoring, brain-IC interfaces andmoleculardiagnosticsandimaging.”

Smart is the word

Toreplaceconventionalimplantswhichrelyontraditional design and integration tech-nologies, smart implants aregreatly miniaturized, usingon-boardintelligence.Theycontributetothevisionof a per-sonalizedp r o a c t i v eh e a l t h c a r e ,using low-powermethodologies and w i r e l e s scommunicationwiththeoutsideworld.

“IMEC also performs pioneering research intotinyautonomoussensornodes,thatwillbeusedtocreateabodyareanetwork,wornonthebodyand monitoring vital body parameters,”

30 30

Verstreken adds. “When predetermined alarmvalues are reached, the system can automati-callysummonadoctororanambulance.”

Communication and visualization

AnotherfocalpointofIMEC’sHuman++Programis the development of neuroelectronic hybridsystems that allowabidirectional exchangeofinformation between neurons and electronicdevices.Thesebrain-ICinterfacescanbeusedforthestudyandtherapyofbrainandnervoussystemdisorders.

Withthenewmoleculardiagnosticandimagingtechniques being developed at IMEC, cancercells could be detected inside the body, ordisease markers outside the body in, for in-stance, blood samples by using innovativebiosensorconcepts.

A dream partner

IMECismuchmorethanresearch.It’samodelbusinessassociateintheheartofFlanders,withtheintentiontostrengthenFlemishindustry.ItsMicroelectronics Training Center offers manypossibilities.ThankstoitssharedR&Dprojects,technology transfers and feasibility studies,among other things, IMEC is the ideal partnerforlifesciencescompanieswithakeeninterestinthenanoworld.

Interested…?… in knowing more on how your company can collaborate with

VIB and IMEC? If so, contact us today at Flanders Investment & Trade. It will be our pleasure to

assist you. Call us on +32 2 504 87 11 or email us

at invest@flanders.be

NERF: VIB and IMEC join forces in unique neuroelectronics research

Neuro Electronic Research Flanders, or NERFfor short, is a joint initiative by VIB, IMEC andK.U.LeuvenUniversity.TheNERFresearchgroupfocusesonneuroelectronics,thecombinationofneurosciencesandnanotechnology, andwill bethe first one of its kind. Its aim is to map allsignalsabraincellreceivesandtransmits,total-ing about 25,000 per cell. NERF will use itsknow-how for practical applications, includingresearchintobraindamageremedies.NERFwilllaunchinthemiddleof2009,operatingfromtheIMECbuildingsinLeuven,whereitwilloperatewithayearlybudgetof€6million.

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High-performance educational system

Flanders’educationalsystemisworld-renowned.ThiswasrecentlyconfirmedbytheOrganizationfor Economic Cooperation and Development(OECD).Inits2008PISAsurvey,Flemish15-yearolds achieved impressive results for sciences,mathematicsandreadingskills.

Advantage 6: Strong human capital

Whenitcomestoscientificliteracy,Flandersisrankednumber 3worldwide.OnlyFinland andHong Kong-China did significantly better.Flemishscholarsexcelintheusage,interpreta-tionandexplanationofscientificproofs.

PISA2008confirms,onceagain, the top-notchperformanceofFlemishscholarsinmathemat-ics. No other country performed significantlybetter.Only3Asiannations–Taipei-China,HongKong-ChinaandSouthKorea–andFinlandob-tainedahigheraverage.

Asforreadingskills,onlyHongKong-China,SouthKoreaandFinlandscoredsignificantlybetter.

Higher education with a sharp focus on applied skills

Flandersishometosixuniversities,ofwhichtheCatholicUniversityofLeuven (K.U.Leuven)andGhentUniversity(UGent)aretheeldestandhavereceivedthemostinternationalrecognitioninawiderangeoffields.Fourotherstronguniversi-ties complete the academic landscape: VrijeUniversiteitBrusselandHogeschool-UniversiteitBrussel (Brussels), University of Antwerp andHasseltUniversity.

Theseprimeacademicinstitutionshavebuiltupanenviableinternationalreputationasfarasthetraining of scientific students, both local andfromallovertheworld,isconcerned.Thishighlevelofeducationisdemonstratedthroughthehighqualityoffundamentalresearchandscien-tificpublications.

Life sciences is an industry in which people play a crucial role. In researching new pharmaceuticals, in developing the latest industrial processes, but also in production, logistics and a wide range of other support services. Flanders is renowned the world over for the high quality of its human capital in life sciences industries. Our academic training programs are among the world’s finest. In addition, our people are highly productive, multilin-gual and show a high level of sensitivity and tolerance when it comes to other cultures. These are crucial competencies for working in today’s global economy.

Japan

Flanders

Netherlands

Germany

Ireland

Sweden

France

USA

Science achievement score | 2008PISA assessment score

531

529

525

516

503

508

495

489

Source: OECD, PISA 2008

Flanders

Netherlands

Japan

Germany

Sweden

Ireland

France

USA

543

531

523

504

501

502

496

474

Source: OECD, PISA 2008

Mathematics achievement score | 2008 PISA assessment score

Flanders

Ireland

Netherlands

Sweden

Japan

Germany

France

Reading skills | 2008PISA assessment score

522

517

507

507

495

498

488

Source: OECD, PISA 2008

“There is very productive interaction with the academic

world possible here, not to mention that it provides us with a source of highly educated talent.”

Patrik De Haes, CEO, ThromboGenics

32 32

TheFlemishuniversitieshaveenteredintotech-nologypartnershipswithnumerouslocalcollegesofhighereducationandcompaniesfromallkindsof industries. Through close cooperation, suc-cessful inventions are commercialized andconduce tocreateabetterworld formillionsofpeople. This is also one of the reasonswhy somany spin-off companies have sprung up inFlandersoverthepasttwodecades.

Odysseus: the govern ment’s brain-gain

TheOdysseusprogramencourageseminentre-searcherswhohavemadeanameforthemselvesabroadtopursueanindependentresearchcareerataFlemishuniversity.Top-levelorhigh-potentialre-searchersareofferedapositionattheFlemishhostinstitutewhiletheResearchFoundationFlanders(FWO)grantsasizeableamount, instartupfi-nancing,foraperiodoffiveyears.TheFlemishCommunityprovidestheFWOwith€12millionperyearforthiskindofsponsorship.

Theseresearcherscan,withthisOdysseussupport,setuptheirownresearchgrouporopenupanewlineofresearch.Examplesofrenownedscien-tiststhatcurrentlyconductalifesciencesrelatedOdysseusprojectare:• Cathérine Verfaillie (Flanders): Stem cell re-searchattheStemCellInstitute,K.U.Leuven.

• GuyBoeckxstaens(Flanders):‘Thebrainandtheinnateimmunesystem’

• JiriFriml(CzechRepublic):‘Morphogeneticauxingradientsasan interfacebetweencellularpro-cessesandmulticellularplantdevelopment’

• BartLambrecht(Flanders):‘Exploitingthefunc-tionofdendriticcellstofightdisease’

• KerensaBroersen(theNetherlands):‘Ananalysisof theeffectsofAlzheimer’sdisease-associatedriskfactorsonthetoxicityofAbetaaggregation’

• HanRemaut(UnitedStates):‘StructuralbiologyofHelicobacterpylorivirulencefactors’

•Maurilio Sampaolesi (Italy): ‘Molecular mecha-nisms of cardiomyopathy related to musculardystrophyandstemcelltherapy’

• Geert Van Loo (Flanders): ‘Study of the (patho)physiological role of NF-kB inhibitors A20 andABINs through genetic modifications in themouse’

• KevinVerstrepen(Flanders):‘Tandemrepeatsashyper-variablefunctionalmodulesingenomes–Asystemsbiologyapproach’

Flandersalsohasaneyeforthebusinesssideofthe life sciences industry. With the VlerickLeuven Ghent Management School, two ofFlanders reputed universities (Ghent andLeuven)havejoinedforcestodevelopabusinessschool with international standing. In January2008, it was included in the Financial Times’MBArankings.Itisnumber1intheBeneluxandrankedamongtheworld’stop25schoolsbytheBritishmagazineTheEconomist.Inthepastfiveyears the Vlerick Leuven Ghent ManagementSchool has received the threemost importantinternational accreditations going – AACSB(USA), AMBA (UK) and EQUIS (EU) – which isfurtherproofofitsquality.

Highly productive workforce

Belgium, and Flanders as a region, can boastsome excellent figures when it comes to pro-ductivity.Inthe2008IMDWorldCompetitivenessYearbook,Belgium is–asusual–aheadof itsneighboringcountries.ItalsobeatstheUSAandJapan.

Like to…?… know about how Flanders’ strong human

capital can deliver added value to your business in the region? If so, contact us

today at Flanders Investment & Trade. It will be our pleasure to assist you. Call us on

+32 2 504 87 11 or email us at invest@flanders.be

Belgium

France

USA

UK

Netherlands

Germany

Japan

Productivity IndexGermany = 100, 2007

125

119

114

109

114

82

100

Source: IMD World Competit iveness Yearbook 2008

33

Gimv: growing biotech businessesSince its inception in the early 80s Gimv hasalways been at the forefront of supportingbiotechbusinessesinFlanders.Gimv’smissionistocreateaddedvaluebyinvestinginpromis-ing small to medium-sized companies. Itinvestedinlifesciencesfromtheverybeginning,when Plant Genetic Systems (PGS), Flanders’firstbiotechcompany,wasfoundedin1982.Overtime Gimv has grown into a European invest-mentcompanywithnearly30yearsofexperiencein private equity and venture capital. Thecompany is listed on Euronext Brussels andcurrently manages assets worth around €1.8billion.

Threeprerequisitesforhavingagoodbreedinggroundtoestablishtier-onebiotechcompaniesare:top-levelsciencepracticedatlocaluniver-sities; highly-qualified scientists, includingrenownedprofessorssuchasMarcVanMontaguand Désiré Collen; and a tax-friendly environ-mentwitha supportivegovernmentandmajorinvestors.ThisiswhereGimvstepsin.

From seed finance to growth capital

Yet, Gimv offers companies much more thanmoney.“Weenterthecyclefromtheverybegin-ning,”explainsPatrickVanBeneden,ExecutiveVice-PresidentLifeSciences:“Inafirstphase,Gimv assists companies in refining their busi-ness plan and businessmodel. Thanks to our

Advantage 7: Widely available funding for R&D in life sciencesFinding the venture capital to conduct complex, high-risk research is pivotal for any life sciences start-up company. It often takes more than a decade before an actual product is developed and finds its way to the market. Flanders is home to a legion of newly-formed life sciences firms that benefit from the funding provided by both public and private venture capital firms. In addition, the Flemish government offers - through the Institute for the Promotion of Innovation by Science and Technology (IWT) - a unique subsidy program for firms seeking to innovate in life sciences in Flanders.

broad-based network, we can help entrepre-neursattractadditionalmanagerial personnelandbusiness contacts andfindother (interna-tional)investors.Wesupportcompaniesintheirgrowth, operational improvement, expansionandfinancialoptimizationuntilthemomenttheyrealize an IPO or get acquired by a biggercompany.”

Inmostcases,Gimv’sparticipationinacompanylasts seven to fifteen years. Gimv has, for in-stance, beenaproject partner of Innogeneticsforfourteenyearsnow;ofPGSforfifteenandofDevgenforelevenyears.Quiteoften,Gimvpro-vides the biotech companies with initial seedmoney, followed by early stage capital andgrowthfinancing.

“The well-conceived policy of the Flemish government has made

Flanders a unique biotech region in Europe.”

Patrick Van Beneden, Executive Vice-President Life

Sciences, Gimv

Biotech Fonds Vlaanderen

BiotechFondsVlaanderen,managedbyGimv,waslaunchedin1994toprovideventurecapitaltostart-upsandexistingSMEs,intheFlemishlifesciencessector.BiotechFondsVlaanderenco-investswithGimvandotherventurecapitalistsinpromisingcompanies,oftenataveryearlystage.Moreover,theproceedsfromdivestmentsarere-usedfornewinvestments.Inthisway,BiotechFondsVlaanderenhasincreaseditsassetsundermanagementfrom€25milliontomorethan€60million.

Sofar,BiotechFondsVlaanderenhasparticipatedin17companiesoperatinginthelifesciencessectorinFlandersincluding:Ablynx,ActoGeniX,Pronota,Movetis,Devgen,ThromboGenics,CropDesign,Galapagos, Crucell, Innogenetics, PGS andPharming.

34

A unique, three-pronged system to support the biotech-ecosystem

WhenbiotechbecameaFlemishtoppriority, itlaunchedseveraltaxincentivesforbiotechbusi-nesses, including a capped social security

contribution on research and a limited tax onincome from intellectual property. In addition,theFlemishgovernmentalsolaunchedBiotech

FondsVlaanderen,managedbyGimv.WhereasGimvinvestsinmanysectors,thisfundisspe-cificallycommittedtolifesciencescompaniesinFlanders. What is more, the Institute for thePromotion of Innovation by Science andTechnologyinFlanders(IWT)providesR&Dandinnovationsupporttobiotechbusinesses.

“Thewell-conceivedpolicyof theFlemishgov-ernment hasmade Flanders a unique biotechregioninEurope,”VanBenedenadds.“Thecom-bination of excellent science, internationalmanagement,taxbenefitsandtheongoingcom-mitmentfromGimv,BiotechFondsVlaanderen,IWTandmanyothershasresultedinacompeti-tivepositionforFlanders.”

“Two Flemish organizations were vital to the initial growth of the

company: Flanders’ major private equity and venture capital provider Gimv and IWT. Both organizations

provided us with the necessary funding and expertise.”

Thierry Bogaert, CEO, Devgen

35

IWT: a solid road to dependable fundingIWT is the Institute for the Promotion ofInnovationbyScienceandTechnology.Itwases-tablished by the Flemish government as aregional public organization toprovide innova-tion andR&D support in Flanders.Not just toFlemishbusinesses,buttoanycompanyopera-tingwithinFlemishborders.

Outof the IWT fundingbudgetof€285million,€100million went to life sciences research in2008.Themoneywasspreadover370approvedprojects. “In life sciences, we focus on risksharing,” explains Dirk Veelaert, ScientificAdvisoratIWT.“OurfundingisavailabletobothSMEsandlargercompanies.Thesecanbenefitfrom IWT’s flexible and pragmatic approach,oneofourstandoutadvantages.”

Triple function

The services of IWT are available to every lifescience business operating in Flanders. But itdoesn’t stop there. “If a foreign company ex-pressesaninteresttosettlehere,itcansubmitaproposalbefore taking the step tophysicallymove toFlanders.Thecompanycandecideonits best course of action after our funding ap-praisal,”Veelaertexplains.“Thismakesitmucheasier for foreign companies to reach a deci-sion.”

BesidestheconsiderablefinancialsupportIWThasbeenoffering,since its launch in1991, theinstitutionalsoassistsinnetworkingandtrain-ing. Dirk Veelaert: “We stimulate cooperationand networking of businesses and institutionsthrough our VIS – or Flemish InnovativeCooperation – projects. We supported 13 VISprojects in life sciences in 2008, for a totalamount of €4.4 million, including cooperationpossibilities with the food and agriculturalsectors.Inaddition,ourlargeEuropeannetworkenables companies to find suitable businesspartnersabroad.”

AthirdIWTroleliesinthestimulationoftrainingresearchers through scholarships and fellow-ships.244personalmandateswereapprovedinthelifesciencessectorin2008.IWTofferstwokindsofin-servicetraining:viatheFlemishuni-versitiesorin–company,thelatterbymeansoftheBaekelandFundsinclosecooperationwiththeuniversitiesandresearchorganizations.

Quality control

IWToffersanattractivequalitycontrolservicetocompaniesapplyingforfunds.WhentheIWTjury,composedof internationalexperts,evalu-ates a proposal, it performs a due diligence,thoroughly examining the project, both techni-cally and commercially. “This works as ahallmark towards other investors,” Veelaertsays. “If a project’s request for funding isrefused,weoffer thecompanyclearadviceonwhatwaslacking,thushelpingittodraftbetter-structuredproposalsinthefuture.”

“In life sciences, we focus on risk sharing. Our funding is available to both SMEs and larger companies. These can benefit from

IWT’s flexible and pragmatic approach, one of our standout advantages.”

Dirk Veelaert, Scientific Advisor, IWT

IWT in life sciences

• 40%offinancialsupportwithinlifesciencestostart-upcompanies(fromyearsonetosix)

• 50%offinancialsupportwithinlifesciencestoSMEs

• Increaseof€20millioninlifesciencesupportfrom2007to2008

•€19.6millionforpersonal,in-deptheducationin2008

Like to…?… learn more about the wide

range of funding Flanders has to offer life sciences compa-

nies? If so, contact us today at Flanders Investment & Trade. It will be our pleasure to assist you. Call us on +32 2 504 87 11

or email us at invest@flanders.be

36

Private venture capital is also widely available in Flanders to the life sciences industry

In2007,theamountofventurecapitalprovidedtoFlemishbiotechcompaniestotaledaround€100million.Thelion’sshareofthiscapitalcomesfromtheFlemishcapitalfundGimv,theBiotechFondsVlaanderen(BiotechFundFlanders)andtheEuropeanInvestmentFund(EIF).

NumerousprivateventurecapitalcompaniesandfundsarepresentinFlanders,providingbothFlemishandforeigncapitaltothebiotechindustryintheregion.Here’salistwithafewexamples:

Belgian & Flemish funds

•AIP-BiotechInvestmentPartners•AntwerpInnovationCentre(UniversityofAntwerpseedingfund)•BaekelandFonds(GhentUniversityseedingfund)•BankDegroof•Beluga•BrusselsBI3Fund(UniversityofBrusselsseedingfund)•CapricornVenturePartners•CreafundII• Fagus(Fortishigh-techfund)• FortisPrivateEquity•GemmaFrisiusFundII(UniversityofLeuvenseedingfund)• INGBelgium•KBCPrivateEquity•Partners@venture•PrivastCapitalPartners•Profinpar•Proseedcapitalholdings•Questforgrowth•Rendex•PolyTechnosVenture•PartnersGmbH•Soffinova

International Funds

•AurigaPartners•AbingworthVentureManagement•AdventVenturePartners•AlpInvestPartnersNV•AltaBerkeleyVenturePartners•ApaxPartners&Co•Atlas•Burill&Company•Gilde• J&JDevelopmentCorporation• LifeSciencesPartnersBV•OmegaFund

Flanders: at the top as far as venture capital per dedicated biotech company is concerned

AcomparativestudyhasrevealedthatBelgiumhasthemostventurecapitalavailableperdedicatedbiotechcompany:€2.8million.Flanders,asaregion,liesinthirdspot,afterFrance,with€1.6millionofventurecapitalperdedicatedbiotechcompany.

Totalin€millionVenturecapitalperdedicatedbiotechcompanyin€million

Belgium 118 2,8

France 242 1,6

Flanders 85 1,6

UnitedKingdom 238 0,9

Germany 213 0,5

Sweden 47 0,4

TheNetherlands 29 0,4

WalloonRegion - -

North-RhineWestphalia - -

Source:Ernst&Young(2007)andTechnoplois(2008)

37

Fast approval for (pre)clinical trials

FlandersisatopregioninEuropeforfirmsthatwish to perform (pre)clinical trials. In 2006,some1,800trialswereperformedinBelgium,ofwhichthelion’sshareinFlanders.Thecollabo-rationsbetweenhospitals,universities,researchcenters and pharmaceutical companies havecreatedan idealenvironment for thisessentialpartofdevelopinganinnovativetherapeutic.

TheFederalLawofMay7th2004onexperimentsonhumanshaskepttheapprovaltimesextreme-lyshort:15daysforPhaseIand28daysforPhaseI-IV.Thisprovides lifesciencescompanieswithtrialactivitiesinFlanderswithacompetitivead-vantageoverotherEuropeanregions.

One of Europe’s most tax-friendly regions for patents

Fromthe2008taxassessmentyearonwards,anew regulation has come into force, at thefederal level, on income derived from newpatents.With this new incentive, Flanders haspropelleditselfintotheleadgroupoftax-friend-lyEuropeanregions.

The tax incentive applies to income derived,since 2007, from new patents. These patentsmight refer to that firm’s own invention. Or itcouldbeonetheyhavepurchasedandwhichhassince been improved through work done in aresearch center. Incidentally, thepatentmay–exceptinFlanders–alsobeappliedforthroughtheEuropeanPatentsOfficeinMunich.

AcompanyinFlandersisable–viathenewin-centive – to deduct 80% of its income derivedfrom patents from its taxable net profit. Soanyonewhoinvested€100inresearchandthenearned €400 in royalties on the back of theensuing patent is therefore entitled to deduct€320fromhisprofit.Thisyields,alltold,asavingof€108incorporateincometax,orslightlymorethantheinitialinvestmentinresearch.

Beneficial tax measures for invest-ments and research staffInvestmentsinpatentsandfixedassetsusedinFlanderstopromoteR&Dareeligibleforanin-creasedinvestmentdeductionofeither13.5%ontheacquisitionvalueor20.5%oftheannualde-preciations permitted for tax purposes. As analternativetothe investmentdeduction,aR&DtaxcreditisgrantedonqualifyingR&D-relatedinvestments. The taxpayermust opt for oneofthetwomethods(investmentdeductionorR&Dtaxcredit).

CompaniesactiveinR&DinFlandersareeligi-ble for an exemption from payroll withholdingtaxforresearchers(PhD,engineersandmasterdegrees).Recently,themaximumexemptionhasbeenincreasedto75%.

Advantage 8Clear government focus on life sciencesThe life sciences industry is a strategically important industry in Flanders. The federal government makes big efforts to create a competitive legal and fiscal climate for both local and foreign companies active in R&D in the region. A wide range of tax benefits and a unique legal framework for fast and flexible undertaking of (pre)clinical studies makes Flanders a technological top region in Europe for multinationals looking for a competitive edge in their life sciences activities.

“An approval for Phase I trials can be reached in Flanders in

a mere two weeks. This is a major advantage

compared to other countries.”Robert Lins, Business Manager Benelux at SGS Life

Science Services.

38

Other beneficial tax measures

Thegovernmenthascreatedahigh-qualitybusi-ness climate for the companies that settle inFlanders. And they can count on intensivesupport, advice andmeasures geared to theirbusiness objectives and needs. Some high-lights:

- The notional interest deduction: companiesusingtheirowncapitaltofinancetheiractivi-ties are eligible for a notional interestdeduction of 4.473% for assessment year2010. This brings the effective taxation ratebelow26%.Thenotionalinterestdeductionisunique in its kind and excels in its relativesimplicity. Ithasan important impacton theinvestmentdecisionsofthelargeplayers;

- 0%registrationdutiesoncontributions:pro-portionalregistrationdutiesoncontributions,whether in money or kind, have been abol-ished;

- Applicationofparent-subsidiarydirectiveex-panded to treaty countries: the exemptionfromwithholding taxes on payments of divi-dends – as long as the conditions of the

Europeanparent–subsidiarydirectivearemet– has been expanded to parent companiesdomiciled in almost all the treaty countries.This benefits American, Japanese, Chinese,Brazilian, Canadian and Australian groups,amongothers;

- Appreciated policy with respect to double-taxation treaties: Belgiumwas the very firstcountry that concluded a double-taxationtreaty with Hong Kong. The new treaty withtheUnitedStatesalsoprovidesforanexemp-tion from withholding taxes on payments ofdividendsandinterests;

- Upgradeofrulingpractice:theBelgianprac-ticeoffiscalrulingsonpreviousagreementshasundergoneanupgrade:thenatureofthecases that may be submitted to the RulingCommissionhavebeenconsiderablyexpand-ed.WhiletheCommissionmustcommititselftodeliverarulingwithinthreemonths.

“The tax breaks we receive in Flanders for IP earnings

are major plus.”Kris Motmans, Marketing & Communications Manager,

Tigenix

Looking to…?… reap the fruits of state

measures designed to support the life sciences industries in

Flanders? If so, contact us today at Flanders Investment & Trade. It will be our pleasure to

assist you. Call us on +32 2 504 87 11 or email us at

invest@flanders.be

39

Advantage 9Wide support for Flanders’ life sciences clusterPrecisely because Flanders has been playing a pioneering role in life sciences for decades on end, the industry in the region is well represented by organizations that uphold its interests. They guarantee sustained growth for the industry in a stimulating business environment. Both local and international players can count on a forceful voice at all govern-ment levels: locally, nationwide and across European borders.

FlandersBio: Flanders’ substantial biotech umbrella

‘Building Biotech Bridges’ is the slogan ofFlandersBio.Whichbridges?Wellthosebetweenbiotech companies, the government andacademia.Betweenthebusinessesthemselves.FromFlemishbiotechtowardsothercountries.Ortowardsindividualapplicants.

FlandersBioistheumbrellaorganizationrep-resentingtheFlemishlifesciencescluster.Itisthedrivingforceforthesustainedgrowthofthe knowledge-based Flemish bio business.Fosteringnetworking,informingandlobbyingarethreeofFlandersBio’smainpillars.Inad-dition, FlandersBio looks beyond Flemishborders:“Weseeitasourmissiontostrength-enFlanders’internationalvisibilityandimageabroadasadynamiclifescienceregionandtosupportforeignbusinesseswillingtoinvestinour region,” explains General ManagerAnnVanGysel.

Intensive lobbying

Asaninitialpointofcontactbetweenthelifesci-encesindustryandtheFlemishgovernment,theaim of FlandersBio is to create themost sup-portive conditions possible for biotechbusinessesintheFlemishRegion.“Welobbythegovernmentheretoincreasetaxincentivesandto lower laborcosts.Tomaintainand increasesubsidiesforR&Dactivities.Andalsotoreducefinancialandregulatorybarriersthatcurbswiftgrowth,”clarifiesVanGysel.

Enriching members

“We are the ultimate information portal onFlemish life sciences,” says Van Gysel. “Ourmediacentercoversandarchivesimportantre-gional and international news. We have a CVdatabase and publish job vacancies. Our in-house team of specialists is on permanentstand-bytoanswerallkindsofquestionsonlifesciences in Flanders, equippedwith the latestfactsandfigures.Andaccesstoworkshopsin-

troducing innovative technology keeps ourcustomersuptodate.”

Bringing centers of knowledge together

FlandersBio’s seminars and workshops allowscientiststotapintotheexpertiseofcolleaguesandexpert speakers.Auser-friendlydatabaseprovidesaperfectoverviewofthelocallifesci-ences communities. “We assist companies infinding the right agencies for their queries oneveryaspectofaproject,suchasR&D,funding,marketing or B2B communication,” Van Gyselcontinues.“Whatismore,ouryearlyconvention‘KnowledgeforGrowth’bringshundredsofem-ployeestogetherbutisjustoneofournetworkingoccasions,aswealsoregularlyorganizeeventstargetingspecificaudiencessuchasHRperson-nelorCEOs.Thisisonlyoneofthewayswebringpeopletogether.”

FlandersBio in numbers

•Setupin2004• 140members,95ofwhicharebiotechcompa-nies

• 600 to 700 visitors to its annual convention‘KnowledgeforGrowth’

•Representsatotalof10,000lifesciencesem-ployeesinFlanders

• ThetotalturnoverofthebiotechnologysectorinFlanders is approximately€2.9 billion andgoodfor€ 0.5billionR&Dexpenditures

40

Knowledge for Growth Annual life sciences convention in Flanders

SinceFlandersBioorganizedKnowledgeforGrowthforthefirsttimein2005,thislifesciencesconventionhasattractedalargecontingentofbiotechplayersandserviceproviders.Atmorerecenteditions,agrowinginter-estbyotherlifesciencesplayershasbeennotedwhichreflectsashifttowardsconvergingtechnologiesandincreasedcollaboration.

With600participants,40plenary,keynote,scientificandpolicytalksandover70exhibitors,the2008editionwasaresoundingsuccess.Overonethirdoftheparticipants(30%academicand70%industrial)holdsascien-tific post. Most of the decision-makers of Flemish life science companies show a keen interest in theconvention.

essenscia: strong life sciences representationFlandershas always been one of Europe’s topregionswhenitcomestochemicalsandlifesci-ences.essensciaisthenameofthemultisectoralumbrella organization representing these in-dustries inBelgium.Structured inthreeparts,it’smodeledonthethreeBelgianregions.Withmorethan450membercompanies,theFlemishpart represents 170,000 employees and has astrongvoicetowardsbothregionalandfederalgovernments.

essenscia strives to create an efficient andhealthy business climate, closely cooperatingwiththeFlemish,federalandEuropeanauthori-ties. “Because of our long tradition and highnumberofmembers,weareinfluentialatmanylevelsandweusethattoourmembers’benefit,”saysessensciaspokesmanFrankBeckx.

Powerful lobby group

“Itisthankstoessensciathattaxesonresearch-ers in private companies have decreased by75percent,”Beckxaffirms.“Inthebiotecharea,essenscialobbieswithmanyfavorableresults.The federation and its biotech division, Bio.be,haveproducedpositionpapersonbiofuels,ad-vancedtherapies,biosimilarsandGMOs,amongothersubjects.AttheEuropeanlevel,essensciaisactivelyinvolvedinCefic(theEuropeanCouncilofChemicalManufacturers'Federations),andatthefederallevelintheVBO-FEB(FederationofBelgianCompanies).”

Closely following developments in new laws,decreesandregulations,essensciaprovidesitsmemberswith the necessary expertise in this

area. It informs life sciences companies on avarietyofpracticalissuessuchasfinancingop-portunities, health and safety, environmental,legalandregulatorymatters,foreigntradeandspatialplanning.

Key life sciences partner

Establishingacorrectimageandvisibilityofthelife sciences sector is one of essenscia’s coreobjectives. “We know there are certain preju-dicesonthelifesciencesindustry,”saysBeckx.“That’swhyitisimportantwegettherightstoryacross to the public. Examples of this are ourrecent awareness programs in primary andsecondary schools,which are proving very ef-fective.”

‘Innovation’and‘biotechnology’aretwoofessens-cia’s top priorities. essenscia is composed ofseveral skill centers, or professional sectors,groupingspecificareas.Importanttothelifesci-encessectorareBio.be,coveringbiotechbusinessandPharma.beonmedicinesandvaccinations.Inaddition, the website investinbiopharma.be un-derlinesBelgium, andmore specificFlanders,asthepremiumbiopharmaregioninEuropeforR&Dandmanufacturing.

41

Bio.be (Belgian Association for Bioindustries)TheBelgianAssociationforBioindustriesisadi-visionofessensciathatrepresentsthecompaniesand professionals involved in the research, de-velopment, testing, production or marketing ofbiotechnologyapplications,aswellasthoseserv-icing the biotechnology community.Bio.be paysparticularattention to thespecificneedsofourentrepreneurial members, whose success willdetermine the future of biotechnology inBelgium.

Bio.be represents 84 members, 10,000 directjobsanda€3billionturnover.

Pharma.be (General Association of the Medical Industry)

Established in 1966, Pharma.be upholds the in-terestsoftheBelgianmedicalindustry.Pharma.bestrivesforahealthypharmaceuticalbusinessclimate, negotiating directly with the regionalgovernmentsandotherhealthcarepartners.Thewebsite investinbiopharma.be is an initiative ofessenscia with Pharma.be and Bio.be as part-ners,amongothers.

Pharma.be represents 146 members 29,000directjobsanda€3.9billionturnover.

Want to…?… benefit from the wide support for the life sciences cluster in Flanders? If so, contact us today at Flanders Investment & Trade. It will be our pleasure to assist you. Call us on

+32 2 504 87 11 or email us at invest@flanders.be

UNAMEC: representing producers and manufacturers of medical devicesUNAMEC, theBelgianassociation forproducersand/ordistributorsofmedicaldevices,hasbeenactive in Flanders since 1959. The organizationrepresents some 200 businesses that make ordistributeawiderangeofmedicaldevices,fromdisposables and implants to fixtures, fittings,tools and equipment, like bandages, needles,pacemakersandanestheticsystems.

In its numerous contacts with the political andadministrativebodies,UNAMEC’sproactiveposi-tionmakes ita fully-fledged interlocutor for thesector at the national and international levels.UNAMECsupportsitsmembercompaniesonthefollowingmatters,amongotherthings:thetrack-ing of payback files, collective bargaining withprofessionalassociations, training,environmen-tal issues, standardization and regulation, andmuchmorebesides.

42

Advantage 10Flanders Investment & Trade: support at the start and the expansion of your operationsProviding advice and support to foreign companies wanting to start or expand operations in Flanders is one of the core responsibilities of Flanders Investment & Trade. Thanks to our experienced, multilingual staff we are able to help companies integrate into one of Europe’s most prosperous economies efficiently and effectively.

Flanders Investment & Trade has 75 officesworldwide:wecanassistyouwhereveryouare.And,thankstoourextensiveandactivenetworkwithin Flanders, we can also provide youwithregion-specificinformation.Identification of optimal location

FlandersInvestment&Tradeprovidesconfiden-tial information and support without cost tocompanieswhowanttostartorexpandopera-tions within or from within Flanders. Ourexperiencedstaffwillhelpyoulookforasuitablelocation for your activities, taking into accountaccessibilitybyroad,waterandrail,proximitytoportsandairports,accessibilitytomarketsandsuppliers,availabilityofqualifiedpersonnel,andsupportmeasures from regional, national andEuropean government agencies. But first andforemost, they will listen to your needs andwishes.

Knowledge and contact center

Flanders Investment & Trade is a knowledge-intensiveorganizationwithaccesstoup-to-dateinformation about the availability of sites, thelocalworkforce,recruitmentandtraining,sup-pliers,marketsandexportpossibilities.

Wecanputyouintouchwiththerightregionalandnationalgovernmentagencies,utilitycom-panies, top knowledge centers and academicinstitutions. We can introduce you to sectoralandcross-sectoralbusinessnetworks.Wecanensurethatyourcompanyandyouremployeesand their families will feel right at home inFlanders.

Subsidies and support measures

Flanders Investment & Trade can provide youwith information about the range of subsidiesand supportmeasures offered by the Flemishandnationalgovernments.Weknoweverythingthereistoknowaboutinvestmentsubsidiesandfavorabletaxmeasures,rulings,thenotionalin-

Dedicated contact for bio- and nanotech companies from Japan and the USA

Since 2007, Flanders Investment& Trade hasposted technology attachés for bio- and na-notechnology in Tokyo (Japan) and New York(USA).ThesededicatedtechnologicalbusinessexpertsserveasadirectlinkforAmericanandJapanese hi-tech companies looking to investinFlanders,setupjointventuresordobusinesswith Flemish firms and/or centers of knowl-edge.

Wanttoknowmore?ContactourTokyoofficeattokyo@fitagency.comorourNewYorkofficeatnewyork@fitagency.com.You’llbesurprisedatwhatwecandoforyou.

terest deduction, exemption from the taxdeductionatsourcefordividendsderivedfromdomestic securities, VAT grouping and settingupapensionfundorganization.WecanexplaintoyouthosemeasuresthatproduceafinancialadvantageforR&Dactivities,suchasthecreditsforfeasibilitystudies,basicresearchandproto-type development. We can clarify the royaltytaxesonpatentsandtheeconomicalsocialse-curity system for foreign researchers. And,finally,wecantellyouaboutthesupportavaila-ble for recruiting, hiring and training yourpersonnel.

Legal requirements clarified

FlandersInvestment&Tradecansupportyouinmeeting the legal requirements involved instartingupyourbusinessinFlanders.

AhandyreferenceforpotentialinvestorsisourcomprehensiveInvestmentGuidetoEstablishingaBusiness inFlanders.Theguideprovidesan

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overviewofthedifferenttypesofcompanies,thestepsinvolvedinsettingupacompany,availablesupport measures, taxes, staffing, import andexport,competitionlawsandenvironmentalreg-ulations.Itcanbedownloadedororderedviaourwebsite.

For more information

YoucanfindalltheinformationaboutinvestinginFlandersat:www.flandersinvestmentandtrade.com.Thewebsiteprovidesaclearoverviewofthein-frastructure, R&D activities and differentsectors. Italsocontainsuseful information forexpatswhowanttoknowmoreaboutthesociallifeintheregion.

Itsnewssectionkeepsinvestorsup-to-dateonthe latest economic, financial, social, culturalandscientificnews,givingthemaclearerpictureofwhatisonofferinFlanderstoday.Thewebsiteisavailableinfivelanguages:English,German,French,JapaneseandChinese.

Inaddition,FlandersInvestment&Tradeoffersbrochuresaboutthefollowingindustries: •Automotive •ICT •Logistics •Chemical

All of the brochures can be ordered or down-loadedfromourwebsite.Oraskforthematoneofouroffices.

Would you like to know what Flanders couldmean to your company? Then contact us nowat:

“Besides its powerhouse location, Flanders provides businesses withadded value at many other levels too. Think, for example, of research and innovation,

a highly educated and productive workforce with a fluency in languages, and highly developed transport and communication infrastructures. Foreign businesses receive a

warm welcome in Flanders and are well surrounded here by all the ingredients toensure sustainable growth.”

Koen Allaert, General Manager, Flanders Investment & Trade

“It is the ambition of Flanders Investment & Trade to continually strengthen the economic fiber of our region. We provide companies with a top-class

personal service on all aspects of doing business in and from Flanders. This ensures that they can take full advantage of the many benefits of Europe’s

best business location.”Pascal Walrave, Director Inward Investment, Flanders Investment & Trade

Flanders Investment & Trade

Gaucheretstraat90B-1030BrusselsT+3225048711F+3225048899

invest@fitagency.bewww.investinflanders.com

www.flandersinvestmentandtrade.com

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Flanders’ Life Sciences strengths in a nutshell

“We can easily reach our customer base in Germany, the Netherlands, France and the UK, but also those further away such as in Russia.”

Frederik Wouters, Sales Coordinator, Verhaert Masters in Innovation

“We have top biotech companies performing research here. The Flemish

government plays a major role in creating the ideal circumstances.

Because we are a small region, policy decisions are taken

relatively fast.” Rudy Dekeyser, managing director, VIB (Flanders Institute for

Biotechnology)

“It is thanks to essenscia that taxes on

researchers in private companies have decreased

by 75%.” Frank Beckx, Spokesman, essenscia

“We have set up our own subsidiaries to market our

technology in countries worldwide. Flanders is the technological dynamo and

engine for our business and the place from where we coordinate our global

operations.”Thierry Bogaert, CEO, Devgen

“We lobby the government

here to increase tax incentives

and to lower labor costs.

To maintain and increase

subsidies for R&D activities.

And also to reduce financial

and regulatory barriers that

curb swift growth.”

Ann Van Gysel, General Manager, FlandersBio

“Flanders stands out, compared to other European countries,

when the skills of blue-collared workers are concerned,” says

Ortwin Callewaert. “On top of that, they are multilingual,

which is a valuable asset for an international company.”

Ortwin Callewaert, Plant Manager, Syral Aalst

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Visit us at www.flandersinvestmentandtrade.com or contact our office

Gaucheretstraat 90 | BE-1030 Brussels - Belgium T +32 2 504 88 71 | F +32 2 504 88 70

invest@fitagency.be | www.flandersinvestmentandtrade.com

Government of Flanders - Belgium

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The right place

The right platform

The right expertise

The right infrastructure

Joinusin Flanders

www.flandersinvestmentandtrade.com