Medical Device Daily

Earlier this year Michigan was dealt a devastating blow to its economy when pharmaceutical giant Pfizer (New York) shut down all of its facilities in the state, effectively laying off more than 2,400 workers and leaving a variety of high-tech facilities vacant.

Already struggling from a decline in the auto manufacturing industry — chronicled in one of Michael Moore's earlier documentaries, "Roger and Me" — the once-robust economy of the "Wolverine State" is now seeking initiatives not just to tread the waters of its economic doldrums but to return to a prosperous high water mark.

To do so, Michigan legislators are banking on a life preserver of sorts from the life sciences sector, in the form of two virtual companies that they hope will push the development of existing med-tech and pharmacy industries throughout the state.

The Michigan Life Sciences Network (Lansing), developed last February, is launching these two companies, Michigan Virtual Medical Device Company and Michigan Virtual BioPharma Company, today during the annual MichBio convention in Lansing .

"Our count so far is about 650 life sciences companies in Michigan]," Michael Debiak, president of Michigan Life Science Network told Medical Device Daily, that the number of life science companies in Michigan is "so far … about 650. Of those, maybe better than half are medical device companies."

Debiak boasts that it will offer Fortune 500 Business marketing plans to smaller companies that couldn't normally afford such services.

There is no fee to join.

In a statement, the life science network said that the effort is to create a "'wiki' project where each member adds their knowledge and understanding of their part for the benefit of the whole. Using the wisdom of the disparate Michigan companies themselves,s the process will quickly create unity, new value, and knowledge of each other.

The network acknowledges that there is no comprehensive network "organized by the product development process, or even a service to identify the right combination of Michigan companies that can help commercialize a compound or invention brought in from outside the sate."

The effort will be presented at the MichBio exhibit by means of an organization chart presenting the two virtual companies in a way that is "visual and tactile" Companies attending will be asked to fill in the bank boxes of the chart to identify their expertise. "Attendees at the Expo and afterward on an ongoing basis will be infited to add their cards under the function they can provide in making up the whole company.

The virtual companies offer the opportunity to create regional directories and communication between the life science companies in the state. Then the members of the virtual companies can receive marketing aid as help in navigating the FDA approval process, or any other questions that might come up.

"The creation of these two virtual companies is just the start for what needs to be done to stimulate life science business in Michigan," Debiak said. "The Michigan Life Science Network is developing many of the next step initiatives to bring new business into these individual companies by marketing the larger virtual organization."

Plans call for the initiative to show a quick turn-around to boost the economy quickly.

"We're not worried about years" for developing a plan to stimulate the economy, Debiak said. The organization's timeline to do this is "in months."

The Virtual Companies Project is sponsored by the members of the Network themselves, along with the financial and professional support of Kreis, Enderle, Callander & Hudgins, PC, TCF Bank, Grubb & Ellis Paramount Commerce, and Comerica Bank.

With this innovation, Michigan joins other states that have begun to aggressively define and promote the life science businesses for their regions.

Last summer the Florida Medical Manufacturers' Consortium (St. Petersburg), released a state-of-the-Industry report for medical innovations in the Tampa area (Medical Device Daily Aug. 31, 2007). Described as a snapshot in time, the report was to show the impact and growth of the med-tech industry in Florida.

Also the Midwest region released a similar report which road-mapped the amount of dollars invested in med-tech companies throughout the sector. To date the Midwest med-tech industry is flourishing, with close to $4 billion expected to be invested by venture capitalists.

"We're trying to use these virtual companies to stimulate a state with a declining economy," Luise Barnikel project coordinator of Michigan Life Sciences Network, told MDD. "I think we are making a strong move toward life sciences."