“ Conquering foreign markets - the German and the Scandinavian Medtech Markets"

“Conquering foreign markets - the German and the Scandinavian Medtech Markets" Webinar In2LifeScience 20. June 2013 Mr Benny E. Sørensen, In2LifeScience Consultant Partner SØRENSEN – Connecting Markets

Agenda 20th June 2013 • Short presentation SØRENSEN – Connecting Markets • Introduction: Lower Saxony as a gateway to Germany • Lower Saxony a strong Life Science location • Introduction: Denmark as a gateway to Scandinavia • Medicon Valley – a top medtech region • Practical guidelines to successful internationalization • Practical cases • Questions/ Discussion

1. Short presentation SØRENSEN – Connecting Markets Our Organisation Sales, Marketing, lead-generation DK Sales, Marketing, lead-generation DE Project Management

Our Services 1. Short presentation SØRENSEN – Connecting Markets • Coaching & Strategiy development • Market research • Partnering • Assistance with own set-up

1. Short presentation SØRENSEN – Connecting Markets Selection of Life Science reference projects

1. Short presentation SØRENSEN – Connecting Markets Selection of public cooperation partners – Germany

1. Short presentation SØRENSEN – Connecting Markets Selection of public cooperation partners – Germany 36

1. Short presentation SØRENSEN – Connecting Markets Selection of public cooperation partners – Denmark

2. Introduction Lower Saxony as a gateway to Germany • Germany • 82 m citizens • Nominal GDP per capita (2012): EUR 32,276 • Main religion: Christianity, 30% Catholics (South+West), 29,9% Protestants (North+East) • Head of state: Federal president Joachim Gauck • Head of government: Federal chancellor Angela Merkel • Annual real GDP growth (2012): 0,7% • Major Trading Partners: France, the United Kingdom, the Netherlands, the United States and China • Languages: German. 67% of German citizens claim to be able to communicate in at least one foreign language and 27% in at least two languages other than their own

2. Introduction Lower Saxony as a gateway to Germany • Germany • 82 m citizens • Regional differences between North, East, West and South

2. Introduction Lower Saxony as a gateway to Germany • Lower Saxony – a gateway to Germany and a gateway to Europe • An industrial location with a great future • The second-largest German federal state • The fourth-largest population (approx. 8 m) • Geographical location in the heart of the European Union • Exceptional infrastructure: central hub • linking northern and southern, eastern and western Europe • Lower Saxony – a gateway to Germany and • – a gateway to Europe

2. Introduction Lower Saxony as a gateway to Germany Lower Saxony Strong sectors Lower Saxony is home to almost every sector of industry and commerce and many sectors are at the forefront. These include: - The automotive industry including - The maritime industry - The automotive supply industry - The steel industry - The chemical industry - The aviation industry - The agricultural and food industry - Machine-building - Solar and wind energy generation - The healthcare industry - The life science and medical sectors - The insurance and tourism branches

2. Introduction Lower Saxony as a gateway to Germany • Life Sciences in Lower Saxony • Life Sciences and Biotechnology take a top position in Lower Saxony • More than 260 companies with almost 20,000 employees work on enzymes, vaccines, innovative medicines and seeds • Extensive research landscape with many first-class research facilities • Area of life science: 18 universities and technical colleges • Area of biotechnology: additional 80 research institutions and 230 working groups

2. Introduction Lower Saxony as a gateway to Germany • Life Sciences in Lower Saxony • Companies, universities and institutes within the fields of biomedical technology and biotechnology are spread out across Lower Saxony • However, they are particular concentrated around the agglomerations of Hannover, Göttingen and Braunschweig

2. Introduction Lower Saxony as a gateway to Germany • Life Sciences in Lower Saxony • Lower Saxony has special potential and unique features within: • Infection research • Genome- and proteome based diagnostics • Biomedical engineering • Biomaterials, biotechnology • Regenerative medicine • Neurobiology • Nutrition and agricultural biology

3. Introduction Denmark as a gateway to Scandinavia • Denmark • 5.5 m citizens • Nominal GDP per capita (2011): EUR 40,200 • Religion: Evangelical Lutheran • Head of state: Queen Margrethe II • Head of government: Prime Minister HelleThorning Schmidt • Annual real GDP growth (2011): 1.0% • Major Trading Partners: Germany, Sweden, the Netherlands, China, the United Kingdom, Norway • Languages: Danish. 86 % of the Danes speak English, which is the predominant second language

3. Introduction Denmark as a gateway to Scandinavia • Denmark as a gateway to Scandinavia • Through the bridge to Sweden, Denmark has become a gateway to Scandinavia • The region Malmø Copenhagen has become an important trade and service center of Northern Europe  Øresund region • Attractive test market: Use Denmark as a gateway to Scandinavia • Danish consumers are the fastest in the world to adopt new products • Tech-savvy consumers • Optimal market size • Work culture that supports innovation • Scandinavia: A market nearby ! Source: Copenhagen Capacity 2008

3. Introduction Denmark as a gateway to Scandinavia Scandinavian population • Attractive concentration of citizens 25 m consumers Source: Copenhagen Capacity 2008

3. Introduction Denmark as a gateway to Scandinavia ConsistentlyTop-Ratings for Scandinavia  growth with stability „Those who seek security, should go to the North!“ (http://www.format.at, Bloomberg/Jochen Hahn, 24.07.2012) Source: http://www.faz.net August 2012

3. Introduction Denmark as a gateway to Scandinavia Medicon Valley – one of Europe’s most successful Life Science Clusters 1997 2013

3. Introduction Denmark as a gateway to Scandinavia Medicon Valley – a TOP Medtech Region in the Øresund Region • Cluster Facts • Population is approx. 3.6 mwith a work force of approx. 1.5 m people • Companies with R&D and/or production:Approx. 200 medtech companies, 150 biotech companies and 25 pharma-ceutical companies • Approx. 44,000 employees in the private life science sector • 15 Clinical Research Organizations and 13 Contract Manufacturing Organization • 12 Universities, 5 of which supply life science related educations • 150,000 students and 10,000 scientists • 7 Science parks with significant focus on Life Science

3. Introduction Denmark as a gateway to Scandinavia Medicon Valley – a TOP Medtech Region • Your benefits in Medicon Valley • Highly skilled employees – crucial to knowledge based companies • A well-established medtech, biotech and pharmaceutical industry • Medicon Valley is a gateway to the Nordic medtech market • Access to capital - finance your development from Medicon Valley • Unique interplay between universities, hospitals and industry • Excellent in combining different areas of technologies and competences • Attractive environment for clinical trials and development with focus on user involvement

3. Introduction Denmark as a gateway to Scandinavia • Further attractive general conditions in Denmark • TOP rankings in the last years within the ”Ease of Doing Business” • by the World Bank • Attractive general conditions: • Easy to set up a business (and close down) • High flexibility of the labour market and no dismissal protection • Low labour costs • Low corporate tax • Low risk – low start-up costs (low equity) • Etc. Source: Copenhagen Capacity 2013

4. Practical guidelines to successful internationalization Independent of your starting point – CULTURE matters: Germany – sixteen states – sixteen “cultures” Scandinavia – four countries – four cultures

4. Practical guidelines to successful internationalization Example: The German Ice Berg vs. The Danish Ice Berg History Low population density Welfare society Performance society High population density Relatively homogenous population Highly specialized Many citizens History Few citizens Central position Outskirts 10% High competition Easy going Regional diversity Tradition and modernity Multiethnic state Urban structure ”Ordnung muss sein” The law of jante Family orientation Hard working Reliability All are equal(ly good) Strong women Punctuality Cleanliness Humility is positive Perfection Openness towards new things Justice Thorough planning Consensus “Laissez fair”

4. Practical guidelines to successful internationalization Successfully expanding to new markets • It is not just about explaining your product – it is about positioning and finding the right way into the market • New and foreign markets are foreign and different markets: • Market size • Health care systems • Decision makers (centralized vs. decentralized) • Reimbursement and financing systems • Routines • Customers • Certificates and approvals • Sales channels (distributors, own salesmen, etc.) • Sales arguments • It is essential to gather local market information ! • Find your local USP’s, that match to market conditions !

Direct Sales Agent Distributor Joint Venture Strategic alliance Representing office Branch Subsidiary 4. Practical guidelines to successful internationalization Your succeful market entry – the choice of market entry strategy  Risk and investment increase  Control and market knowledge increase

4. Practical guidelines to successful internationalization Your succeful market entry Production or manufacturing • The choice of your individual market entry strategy should be dependent on: • + Present market situation + Timing + Your individual situation+ Your company's export preparedness+ goal oriented planning= Differentiated market entry strategy Market commitment Establishment ofsales subsidiary Export via independent representatives No regular export activities Market knowledge

Lina A/S A medium-seized danish company that develops, produces and sells person lifts After focusing on the Danish market they turned their gaze beyond the borders – towards Germany A market analysis showed that it was an absolute requirement to be present in the market if a market penetration was to be guaranteed Approval from the German Krankenkassen (health insurance companies) to reimburse the products Sales via distributors and “Sänitätshäuser”/ “Orthopädiehäuser” (special medicalsupply stores) Here patients were advised and counseled The market strategy was first applied locally in Lower Saxony and later expanded to the whole of Germany 5. Practical cases

Anonymous Development and manufacturing of medical devices for aortic and peripheral vascular diseases Product portfolio includes conventional grafts and interventional implants for cardiovascular surgery, radiology and cardiology For many years the company followed the market strategy to use partnerships abroad Since the product required a lot of explanation it was very difficult to achieve the wanted market penetration In the end, the company terminated the partnerships and hired their own employees 5. Practical cases

De Koningh Medical Systems De Koningh Medical Systems develops high tech mechatronic instruments and systems for the medical market The company aspired to grow internationally and had several positive feedbacks from Scandinavia A marked research was conducted to get a feeling about standards and recommendations about market entry modes in Scandinavia Due to market size (25 mio. Inhabitants) and market conditions, the company got recommended to establish an own set-up on the market This was positively decided and as a first step, the company had to build up internal competences to secure a long term market entry 5. Practical cases

Vodisys Medical Software A Dutch Company who produces a high dedicated medical software for hospitals and universities Company is used to invest 5-6 years to get access into the first concrete customer-discussions During the research on the Scandinavian Vodisys got in contact with 4-5 hospitals and universities  first orders were already given on the first meeting A sales office was founded immediately in Denmark "It was just because I was curious I came to the Chamber of Commerce to meet Sørensen, now it is serious business." 5. Practical cases

Polytech POLYTECH Health & Aesthetics is a German manufacturer of soft-tissue silicone implants One of the market leaders for silicone implants in Europe POLYTECH’s products are used worldwide in more than 60 countries for reconstructive and aesthetic plastic surgery Based on a market research the company find out that they had to work with high dedicated partners in the market Sweden offered a unique market opportunity and a partner was found, who was able to further develop the market in Scandinavia 5. Practical cases

Conclusion Be aware of local conditions: culture, market structure, pricing etc.  knowledge is essential The choice of sales strategy in new markets is not always the same as in the home market New markets are more interested in the hands-on advantages that your product can provide in their system than in long technical descriptions  find your local USP’s 5. Practical cases

Let us talk about your company‘s individual possibilities We can also arrange a telephone/Skype meeting, in order to discuss your individual situation 6. Questions/ Discussion Just get started !

Thank you for your attention! SØRENSEN – Connecting Markets Germany Denmark: Sørensen e.K. Connecting Markets GmbH Sørensen ApS Podbielskistr. 333 Nerongsallee 9 Centervej 2 E D- 30659 Hannover D- 24939 Flensburg DK- 6000 Kolding Tel: +49 511 965 18 10 Tel.: +49 461 9049 3949 Tel.: +45 7634 4500 E-mail: de@connecting-markets.comcm@connecting-markets.comdk@connecting-markets.com Web: www.connecting-markets.com Mr. Benny Egholm Sørensen bes@connecting-markets.com

“ Conquering foreign markets - the German and the Scandinavian Medtech Markets"