1. “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

2. 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

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

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

5. 1. Short presentation SØRENSEN – Connecting Markets
Selection of Life Science reference projects 5

6. 1. Short presentation SØRENSEN – Connecting Markets
Selection of public cooperation partners – Germany 6

7. 36 1. Short presentation SØRENSEN – Connecting Markets
Selection of IHK‘s Germany
IHK Braunschweig
IHK Stade
IHK zu Hannover
IHK Lüneburg-Wolfsburg
IHK Osnabrück-Emsland
IHK Oldenburg
IHK zu Münster
IHK Rostock
IHK Berlin
IHK Essen
IHK Köln
IHK Kassel
Etc.
Selection of public cooperation partners – Germany 36 7

8. 1. Short presentation SØRENSEN – Connecting Markets
Selection of public cooperation partners – Denmark 8

9. 2. Introduction Lower Saxony as a gateway to 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

10. 2. Introduction Lower Saxony as a gateway to Germany
Federal State
Areal km²
Citizens, total
Citizens/ km²
Berlin
891,54
3.849
Hamburg
755,16
2.347
Bremen
404,28
1.637
Nordrhein-Westfalen
34.088,43
526
Saarland
2.568,65
401
Baden-Württemberg
35.751,48
301
Hessen
21.114,75
287
Sachsen
18.419,48
228
Rheinland-Pfalz
19.853,70
203
Schleswig-Holstein
15.799,22
179
Bayern
70.551,58
177
Lower Saxony
47.626,60
167
Thüringen
16.172,14
140
Sachsen-Anhalt
20.447,64
116
Brandenburg
29.480,97 86
Mecklenburg-Vorpommern
23.186,29 72
Germany, total
,91
230
Source: Statistik Portal der Statistischen Ämter des Bundes und der Länder
Germany
82 m citizens
Regional differences between North, East, West and South

11. 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

12. 2. Introduction Lower Saxony as a gateway to Germany
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

13. 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

14. 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

15. 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

16. 3. Introduction Denmark as a gateway to Scandinavia
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 Helle Thorning 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

17. 3. Introduction 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

18. 3. Introduction Denmark as a gateway to Scandinavia
Country
Population
Denmark
Copenhagen
Sweden
Stockholm
Norway
Oslo
Finland
Helsinki
Scandinavian population
Attractive concentration of citizens  25 m consumers
Source: Copenhagen Capacity 2008

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

20. 1997 2013 3. Introduction Denmark as a gateway to Scandinavia
Medicon Valley – one of Europe’s most successful Life Science Clusters
1997
2013

21. 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 m with 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

22. 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

23. 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

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

25. 10% 4. Practical guidelines to successful internationalization
Example: The German Ice Berg vs. The Danish Ice Berg
High population density
Many citizens
History
Performance society
High competition
Highly specialized
Regional diversity
Multiethnic state
Hard working
”Ordnung muss sein”
Punctuality
Perfection
Cleanliness
Thorough planning
Reliability
Central position
Low population density
Few citizens
History
Welfare society
Outskirts
Relatively homogenous population
Easy going
Tradition and modernity
Family orientation
The law of jante
Strong women
Openness towards new things
Humility is positive
Justice
All are equal(ly good)
Consensus
“Laissez fair”
10%
Urban structure

26. 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 !

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

28. 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 of sales subsidiary
Export via independent representatives
No regular
export activities
Market knowledge

29. 5. Practical cases 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 medical supply 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

30. 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

31. De Koningh Medical Systems
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

32. Vodisys Medical Software
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."

33. 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

34. 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

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

36. Thank you for your attention!
SØRENSEN – Connecting Markets
Germany Denmark:
Sørensen e.K. Connecting Markets GmbH Sørensen ApS
Podbielskistr Nerongsallee 9 Centervej 2 E
D Hannover D Flensburg DK Kolding
Tel: Tel.: Tel.:
Web:
Mr. Benny Egholm Sørensen