for up to 12 years beginningare

bioscilence businesses are now eligible for reducedoperating expenses---a tax free zone. The Bioscience Zone is designedto facilitate the development of research and development parks in twoareas; one near the University of Minnesota-Twin Cities campuses and asecond near the Mayo Clinic in Rochester. The zone will help existingand start-up bioscience companies have greater access to U of Mand Mayo researchers and technology. It will also provide taxincentives to help them lower their overall costs to facilitatetheir growth.

taxa business must start-up, relocate to, or expand in thezone. Companies relocating from another site in Minnesotaqualify by increasing their employment by 20 percent or making acapital investment of at least .10 percent of gross revenues within thefirst year they are in the zone.

January 2004.

WHAT 15 THE BIOSCIENCE ZONE?

WHO IS ELIGIBLE?

How LONG WILL THE ZONE LAST?I FINDABOUT

Minnesota ranks as the most livablestate (seven years straight),according to Morgan Quitno Press.

1-800-657-3858 or 651-296-7102Fax: 651-296-5287

gene.goddard@state.mn.uspositivelyminnesota.com

The Twin Cities ranks as the fourthbest place in the U.s. to locate acompany, according to ExpansionManagement.

The Twin Cities has been ranked asthe world's fifth most knowledge­competitive region, by U.K.-basedRobert Huggins Associates.

Minneapolis-St. Paul was rankedas the best metropolitan areafor entrepreneurs, according toEntrepreneur magazine.

How CANOUT MORETHE ZONE?

Gene GoddardBioscience IndustlY Specialist

Office of Business Development500 Metro Square·:- 121 Seventh Place Ear

St. Paul, MN 55101-2146 I,

M1NNEsoTAS STRENGTHS

Based on Three Quarters of Operation.

Projected savings if full 12-year exemptions areprOVided. Funding for first two years of the zoneis currently capped at $1 million, pending futurefunding increases by the Minnesota Legislature.

5,625

54,700

35,750

$144,585

$3,893,000

$ 5,000

$32,500

$23,625

$35,280

$96,405

g-term Benefit**

How MUCH CANIT SAVE YOU?

How DOES IT SA VEYOU MONEY?

sUlb-2~orles nearUnivers

necllpolis CClmr)US and St. Paul canlPulS)(Rclchest1er). For ;...f,w....,,,..;A.

properties,

WHERE 15 THE ZONELOCATED?

•:. Minnesota is home to the world's leadinghealth sciences and medical technologycluster, anchored by such home-grownindustry giants as 3M, Medtronic, St. JudeMedical, and major facilities of Guidantand Boston Scientific.

.:. Cargill Dow - hailed by many as the "greenMicrosoft" - is emerging in Minnesota as aglobal leader in industrial biosciences, usingfermentation of agricultural products tomanufacture polymers that can be made intoplastics, biosynthetic fabrics, packagingmaterials and can replace many existingpetroleum-based polymers.

to two of the world's

leaders in bioscience research-the University ofMinnesota and the Mayo Clinic. Early in 2003,these institutions forged a historic partnershipthat will harness their collective energy inbiotechnology and genomics to createopportunities for new discoveries, new patents,new businesses and new jobs in Minnesota.

.:. In value-added food, nutrition and healthindustries, Minnesota's world leadership islong established through companies(Cargill, General Mills, Land O'Uh,_.>,Syngenta and others - all of which areleaders in food innovation.

This partnership is just one part of Minnesota'sburgeoning bioscience industry, which boastsstrengths and competitive advantages in apr!'~<1

biologics, agricultural, food, and indU ,biotechnology. Minnesota has the intellectual,corporate and public leadership, as well as thefinancial capital to ensure its pre-eminentposition in the bioscience revolution.

WHY BIOSCIENCEIN MINNESOTA?

Plant biotechnology is helping today to provide people with more

and better food and holds even greater promise for the future.

Wheltht:r cotton fanners in China, India and South Africa, canola

farmers in Canada, soybean farmers in Argentina or corn farmers

in Spain and United States, millions of farmers around

imprclve their

"It is important to recognize that we have been genetically

modifying the food supply for thousands of years," wrote food

scientist Susan Harlander.'

TEOSINTE5

MODERN CORN

Modern corn, for example, bears

little resemblance to its early ancestor,

teosinte. Those early cobs were just

one to two inches long with a few tiny

kernels. J Ancient varieties of potatoes

and tomatoes were also vastly different

from their modern relatives - and

barely edible, if at all.' It was only after

centuries of careful breeding that corn,

potatoes and tomatoes were developed

into the tasty, nutritious foods we know

and enjoy today.

Austrian monk Gregor Mendel was the

first to begin understanding genetics,

as he said, "just what it is that gives the

colors and the shapes to the different

trees and fruits and flowers."

good ideas two

In 1973, researchers Stanley Cohen and Herbert Boyer actually took

a gene from one organism and inserted it into another, launching

the modern biotechnology era.? Their work led to the very first

commercial biotech product - human insulin.

Modern plant biotechnology is a much more precise tool than

traditional plant breeding. It allows researchers to select a gene

with a specific trait - such as taste or hardiness - in one plant

and move it to another. With traditional plant breeding, many

genes are transferred to create a new plant variety. Some of these

genes carry desired traits, others carry unwanted traits that must be

removed with still more breeding. Getting it right is often difficult.

But with organisms modified with advanced biotechnology, "We

are in a better, if not perfect, position to predict the [resulting

traits]," said the National Research Council in a 1989 report.'

The NRC advises the U.S. government on science issues.

In 1866 Mendel speculated that certain unseen particles passed traits

from one generation to the next. Itwasn't until nearly 100 years laterthat

researchers discovered that these unseen particles are genes. Genes

carry the code that tell a plant what color it will be or how it will taste.'

Products approved for market

To date, more than 50 biotech crops have been approved for sale

in the United States and Canada, and three have been approved in

Mexico. The list includes enhanced soybeans, cotton, corn, canola,

cantaloupe, papaya, potato, squash, sugar beets and tomatoes.

Most of these crops have been enhanced in one or more of the

following ways:

• Herbicide tolerant crops are immune to certain herbicidesthat are effective against harmful weeds but have no effecton the crop. Globally, about three-fourths of the biotechcrops planted in 2002 were herbicide tolerant.'

• Pest resistant crops usually contain a protein from Bacillusthurillgie1Zsis or Bt, a naturally occurring soil bacterium thatwards off the European corn borer.

• VIrUS resistant crops are shielded from plant viruses ina similar way that humans are protected from diseasewith vaccines: by being "inoculated" and thus buildinga natural defense.

• Stacked trait crops combine these and other traits.

While four countries - the United States, Argentina, Canada and

China - accounted for 99 percent of the global biotech acreage in

2002,'0 the adoption of biotech crops has actually been faster in

developing countries than in developed countries." Between 5.5

million and 6 million farmers in 16 countries planted biotech seeds

in 2002, according to the International Service for the Acquisition

of Agri-biotech Applications (ISAAA). More than three-quarters

were farmers in developing countries - primarily in China and

South Africa."

"Normally, at the end of the year, I would ask my wife how we

are going to pay our bills," says South African cotton farmer TJ.

Buthelezi, who now plants Btcotton. "Now I ask her, how are we

going to spend this money?"

Farmers have embraced the technology so quickly for very simple

reasons: Biotech crops improve yields, cut costs, reduce spraying

and save time."

"Biotechnology continues to be the most rapidly adopted technology

in agricultural history due to the social and economic benefits the

crops offer farmers and society, particularly the 5 million resource-poor

farmers in developing countries," says Clive James ofISAAA. "Biotech

crops can significantly alter the lives of these farmers, limiting the

time they must spend in the field and helping alleviate poverty."

good ideas four

II COUNTRIES THAT HAVE ADOPTED BIOTECH CROPS

In 2002, global area of biotech crops was 145 million acres. representing an increase of15.1 million acres over 200 I.Source:Dr.QIve}CIlJI8,Cfnul'l1Ialn of1SAAA

Early farmers - like those in Egyptand the Americas - saved seedsfrom plants that produced the bestcrops and planted them the nextyear to grow even better crops.

Thomas Fairchild, theforgotten father ofthe flower garden,creates Europe's firsthybrid plant.'

Austrian monk Gregor JohannMendel publishes a study onheredity that describes how plantcharacteristics are passed fromgeneration to generation.2

Plant researcherscrossbreed cotton todevelop hundreds ofnew varieties withsuperior qualities'

Benefits of biotechnologyMore and more studies are documenting the economic and

environmental benefits of biotech crops.

A 2002 study o'fbiotech crops by the National Center for Food and

Agricultural Policy (NCFAP) found that six biotech crops planted in

the United States - soybeans, corn, cotton, papaya, squash and

canola - produced an additional 4 billion pounds of food and fiber

on the same acreage, improved farm income by $1.5 billion and

reduced pesticide use by 46 million pounds."

Other global studies have confirmed the economic benefits of

biotech crops:

• Yield increases for Bt cotton ranged from 5 to 10 percent inChina, 10 percent or more in the United States and Mexico,and 25 percent in South Africa - reaping global cotton farmersan additional $1.7 billion in income between 1998 and 2001,according to ISAAA.18

• Bt corn in Spain produced yield increases of between 10 and 15percent - and an average income gain of 12.9 percent - in areaswith high levels of insect infestations in 2001-02, according to astudy funded by Agricultural Biotechnology in Europe."

good ideas six

• Biotech canola in Canada produced 10 percent yield increasesin 2000, generating an average earnings increase of $5.80 peracre compared with conventional canola, according to a CanolaCouncil of Canada study."

• Biotech soybean yields in Argentina were 10 percent higherthan yields for conventional soybeans, according to ISAAA.21

While biotech cotton has led the way in developing countries

like China and South Africa, there's even more excitement

about the benefits this new technology can bring to staple food

crops grown in developing regions of the world. The reason is

very simple: The developing world, home to 800 million hungry

people, has the most at stake and potentially the most to gain

through plant biotechnology.

Researcher Luther Burbank developedthe Russet Burbank Potato, and laterwent on to develop several new hybridfrUits, including plums, berries, prunesand peaches.'

First U.S. hybrid corn producedby G.H. Shull of CarnegieInstitute through self-pollination.s

Word "biotechnology"coined by Hungarianimmigrant Karl Ereky.'

Inspired by writings of LutherBurbank, U.S. Congress passesthe Plant PatentAet, enablingthe products of plant breedingto be patented.'

good ideas eight

C.S. Prakash, founder of the AgBioWorld Foundation, says an

additional 4 billion acres will need to come under the plow by

2050 to feed all of these people if there are no increases in farm

productivity.25 That's more than twice the size of the continental

United States.

Getting the most production from existing land is important because

more than a fourth of the world's 21.5 billion acres of agricultural

land, pastures and woodlands have already been degraded from

overuse or misuse, such as over-irrigation or erosion.26 Biologists fear

that up to half of the world's remaining 6 billion acres of tropical

forests will be lost to agricultural expansion, and some are warning

More food

With the world population projected to top 8 billion by 2030, there

will be another 2 billion mouths to feed - most of them in developing

regions.22 With income growth also fueling demand for better diets,

farmers will need to at least double their production over the next 25

years to satisfy these appetites, according to the United Nations." But

annual increases in agricultural yields in recent years are holding at

just 1.3 percent a year -less than half of the gains of 30 years ago.24

Cohen and Boyer successfullysplice a gene from oneorganism and move it into

another, launching themodern biotechnology era."

After decades of work, NormanBorlaug creates dwarf wheat thatincreases yields by 70 percent,launching the Green R.evolutionthat helped save millions of lives."

Researchers are busy developing hardier crops that can produce greater

yields on existing land, or even thrive on marginal land:

• A biotech rice that can better withstand droughts andthrive in marginal soil is being developed by CornellUniversity researchers.

• A biotech sweet potato that can produce twice the yieldsof conventional varieties is midway through field trials inKenya.28 Sweet potatoes are a staple crop for millions in thedeveloping world.

• A biotech papaya - credited with saving the papayaindustty in Hawaii - is now being brought to farmersin Southeast Asia, the Caribbean and several otherdeveloping areas where papaya is a staple food.

Biotechnology is not the single solution for feeding a growing

population. But it is a tool that can help grow more food in a

sustainable way that does not deplete existing farmland or force

more remaining wilderness areas to go under the plow.

that as many as 20 percent of all tropical forest species could be extinct

within 30 years if forests continue to disappear at the current rate.27

Watson and Crick describethe double helix structure ofDNA, providing more insightinto how DNA carriesgenetic information. 10

Hybrid corn becomesavailable commercially" inthe United States, causingCorn yields to triple overthe next 50 years.'

Better food

Not only is biotechnology being used to produce more food, it is

also developing better food - food that is healthier, more nutritious

and better tasting.

For the developing world, researchers are working to create:

• Golden rice, which is fortified with beta carotene thatstimulates the production of vitamin A in the human body.Every year, between 250,000 and 500,000 children go blindbecause of vitamin A deficiency, according to the WorldHealth Organization. And about half of these children diewithin a year of losing their sight.'9

• Cassava, a staple food in many poorer parts of the world,enhanced so it contains 35 to 45 percent more protein andessential amino acids.3

•

• Plant-based vaccines - made from crops such as banana orpotato - which are then pulverized and administered in pillform. Researchers have developed a vaccine for hepatitis Bthat is similar to a traditional vaccine but can be producedby a banana for a fraction of the cost.

good ideas ten

developing countries"" and the International Society of African

Scientists to say that "Africa and the Caribbean cannot afford to be

left further behind in acquiring the uses and benefits of this new

agricultural revolution."32

Biotechnology is also being used to develop better food for people

in the industrialized world. Researchers are working to develop:

• A cancer-fighting tomato with three times more beneficiallycopene than conventional varieties. Lycopene protectshuman tissue and could help prevent breast and prostatecancers as well as heart disease.

• New cooking oils made from canola, corn and soybeans thatcontain up to 10 times more healthful vitamin E. Researchersbelieve vitamin E can lower the risk of cardiovascular diseaseand some cancers.

• Food with fewer allergens. Researchers are working to reducethe allergens in rice, wheat, peanuts and other crops so moreof the estimated 50 million people who suffer from allergiesworldwide can enjoy the food most people eat everyday.

It's reasons like these that have led organizations like the United

Nations to call biotechnology a "breakthrough technology for

Boyer's lab created asynthetic version of thehuman insulin gene."

The first biotech plant is produced - atobacco plant resistant to an antibiotic.The breakthrough paved the way forbeneficial traits, such as insect resistance,to be transferred to plants."

Field trials for biotechplants that are resistantto insects, viruses andbacteria are held in theUnited States."

The EPA approves the release of the first cropproduced through biotechnology - tobaccoplants." A coordinated framework for theregulation of products derived frombiotechnology is established. I?

--~-._--------------------------==--------

good ideas twelve

Better for the environmentBiotech crops are also helping protect the environment. A recent

report confirmed their benefits.

"The results Clearly show that soil, air and water quality are enhanced

through the responsible use of current biotechnology-derived soybean,

corn and other crops," said Teresa Gruber, executive director of the

Council for Agricultural Science and Technology."

Biotech crops also make it easier for farmers to use environmentally

friendly conservation tillage practices, where more residue from the

previous crop is left on the field rather than plowed under.

No-till conservation practices - the best for the environment because

soil is left virtually undisturbed from harvest to planting - have

increased 35 percent since biotech crops came on the market in 1996,

according to a study by the Conservation Technology Information

Center in Indiana.34

"There is a clear association between sustainable tillage practices

and biotech crops," said the study, noting that nearly three-fourths

of no-till soybean acres - and 86 percent ofno-till cotton acres - were

planted with biotech varieties.

Conservation tillage in the United States has:

• Saved nearly 1 billion tons of soil per year.

• Resulted in a projected $3.5 billion savings by loweringmaintenance costs for activities such as dredging rivers,cleaning road ditches and treating drinking water.

• Created better habitat for birds and mammals, which thrivein the protective residue of no-till fields.

• Reduced levels of phosphorous and nitrogen in lakes, streamsand the Gulf of Mexico.

• Saved 306 million gallons of fuel in 2002 by reducing thenumber of tractor passes needed to control weeds. On average,no-till saves about 3.9 gallons of fuel per acre, according tothe study.

In Canada, studies by George Morris Centre and the Canola Council

of Canada have reached similar conclusions about the environmental

benefits of biotech crops.

The USDA'sAnimal and PlantHealth Inspection Servicepublishes guidelines for fieldtrials of biotech crops.

The biotech FlavSav.... tomato is approvedby the FDA for U.S. grocery stores. It wasdeveloped to have more flavor and to havea longer shelf-life than conventionallygrown tomatoes.

Biotech soybeans and corn are approvedfor sale, and biotech cotton is commercializedin the United States." Biotech crops becomethe most rapidly adopted technology in thehistory of agriculture.

In total, farmers insix countries plantbiotech crops on4.2 million acres."

SafetyPerhaps the most telling fact about the safety of plant biotechnology

is that there isn't a single documented case of an illness caused by

foods developed with biotechnology since they first came on the

market in the mid-1990s. 39

Even a report from the European Commission, whose member states

are more skeptical about biotech products, concluded that "the use

of more precise technology and the greater regulatory scrutiny [over

biotech foods] probably make them even safer than conventional

plants and foods.""

That report, validating the safety of biotech crops, summarized more

than 15 years of research by 400 research teams funded by European

governments. A host of other organizations have also attested to the

safety of foods developed with biotechnology.

• The American College of Nutrition "supports the use ofbiotechnology to develop food crops that contribute to globalfood security and enhance the safety and nutritional value ofthe food supply."

• The American Medical Association recognized the "manypotential benefits offered by genetically modified crops and

good ideas fourteen

foods ... and encourages ongoing research developments infood biotechnology."·'

• The International Society of Toxicology says "there is noreason to suppose that the process of food productionthrough biotechnology leads to risks of a different naturethan those ... created by conventional breeding."

• The General Accounting Office - the investigative arm ofthe U.S. Congress - says "biotechnology experts believethat the current regimen of tests has been adequate forensuring that GM foods marketed to consumers are as safeas conventional foods."

• And the World Health Organization said, "The benefits ofbiotechnology are many," including improved productionand reduced pesticide use, and promise "major improvementsin both food quality and nutrition."·'

Regulatory agencies in the United States:

Food and Drug Administration, Department of Agriculture, EnvironmentalProtection Agency

Regulatory agencies in Canada:

Canadian Food Inspection Agency. Health Canada. Environment Canada

Regulatory agencies in Mexico:

CIBIOGEM, which includes six ministries (Agricultura, Salud, Media Ambiente,Educacion, Economia, Hacienda y Credito Publico) and the National Council ofScience and Technology (CONACYT)

German and Swiss scientistsdevelop golden rice. fortified withbeta carotene, which stimulatesproduction of vitamin A that canprevent some forms of blindness."

The first entire plantgenome is sequenced,Arabadopsis rhaliana, which providesresearchers with greater insight into thegenes that control specific traits in manyother agricultural plants."

Farmers in 13 countries

plant biotech cropson 109.2 million acres,a 25-fold increaseover 1996. 22

U.S. and Canadian scientists develop abiotech tomato that thrives in salty soil,a discovery with the potential to createtomatoes and other crops that can growin marginarconditions.23

"If they can give us a better tomato, I'm for it," she once said.

Support growsMore organizations and leaders are voicing their support for the

maflY benefits of biotechnology.

Geneticallymodify foods

II Heard some or a lot

Heard little or nothing

good ideas sixteen

Council for Biotechnology Informotion, November 2002

A National Center for Food and Agricultural Policy study found thatsix biotech crops planted in the United States - soybeans, com, cotton,papaya, squash and canola - produced an additional 4 billion pounds offood and fiber on the same acreage, improved farm income by $I.S billionand reduced pesticide use by 46 million pounds."

Develop newvarieties of crops

SUPPORT GROWS WITH KNOWLEDGEPercent who support biotech to...

EPA renews registrationfor 8t corn15 and catton2l>,

citing that they donot pose health orenvironmental risks.

The European Commission releases a IS-year,$64 million study that involved more than 400research teams on 81 projects. It found thatbiotech products pose no more risk to humanhealth or the environment than conventional crops."

Biotechnology is just beginning to deliver the benefits that can

improve lives all over the world. Yes, there are questions. But they

are being answered by studies that are documenting the benefits

these crops have delivered over the past few years. And that is just

the beginning of the potential for biotechnology to provide more

and better food in years ahead.

Opinion polls show that a majority of people believe plant

biotechnology will be good for society in the long term. Julia Child,

the master chef and cookbook author, says she's fascinated by

the potential benefits of biotechnology.

"We are increasingly encouraged that the advantages of genetic

engineering of plants and animals are greater than the risks," said

Catholic Bishop Elio Sgreccia. "We cannot agree with the position

of some groups that say it is against the will of God to meddle with

the genetic make-up of plants and animals.""

Sources"Communique of the 08 Heads of Government meeting at Genova," Organization forEconomic Cooperation and Development, July 2001, Communique of the 08 Heads ofGovernment meeting at Genova, July 2001,www.oecd.orglENldoc:umentlO"EN-doc:ume:nt-528-14-no-21-9800-528,OO.html.

2 Harlander, Susan Ie "The Evolution of Modern Agriculture and its Future with Biotechnology,"Journal of the American College of Nutrition. June 2002, p. 1618,www.jacn.orglcgilreprint/2l1suppC3l161S.pdf

"Considering the Nature and Issues of Food Biotechnology," North Carolina BiotechnologyCenter, www.ncbiotech.org.

-4 McGlaughlin, Martina. "Harvest of Fear" interview, NovalFromline documentary,www.pbs.orglwgbhlharvestiinterviewslmcgloUfJhlin.html.

5 Photo by Hugh lItis. www.wisc.edu/teosintelImages.htm.

"Agricultural Biotechnology: 'What Are the Issues," University of California at Davis, College ofAgricultural and Environmental Sciences.

7 About Biotech, Overview and History, Access Excellence, The National Health Museum,www.accessexcelience.orgiABIBC/1953-1976.html.

"Field Testing Genetically Modified Organisms: Framework for Decisions," National AcademyPress, 1989, p. 13-14.

9 James, Clive. "Preview: Global Status of Commercialized Transgenic Crops: 2002," InternationalService for the Acquisition of Agri-biotech Applications, ISAM Briefs, No. 27.

10 James, Clive. "Preview: Global Status of Commercialized Transgenic Crops: 2002," InternationalService for the Acquisition of Agri-biotech Applications, ISAAA Briefs, No. 27, p. 7.

11 James, Clive. "Preview: Global Status of Commercialized Transgenic Crops: 2002," InternationalService for the Acquisition of Agri-biotech Applications, ISAM Briefs, No. 27, p. iii.

12 James, Clive. "Preview: Global Status of Commercialized Transgenic Crops: 2002," InternationalService for the Acquisition of Agri-biotech Applications, ISAM Briefs, No. 27, p. 19.

13 James, Clive. "Preview: Global Status of Commercialized Transgenic Crops: 2002," InternationalService for the Acquisition of Agri-biotech Applications, ISAAA Briefs, No. 27.

14 Sears, Mark et aI., with the Agricultural Research Service, "Impact of Bt com pollen on monarchbutterfly populations: A risk assessment," Proceedings of the National Academy of Sciences, Oct.9, 2001, www,pnas.orglcgilcontentifuIll98121111937.

IS "Three Years Later: Genetically Engineered Corn and the Monarch Butterfly Controversy," PewInitiative on Food and Biotechnology, p. 16, 11i1p:lIp~bwtechorglresfYUrceslissuebriifl1-PrJf

16 "Resolution, VII European Congress on Entomology," October 7-13, 2002, Thessaloniki, Greece.

17 Gianessi, Leonard P. "Plant Biotechnology: Current and Potential Impact for Improving PestManagement in U.S. Agriculture, An Analysis of 40 Case Studies," June 2002, p. 1,www.ncfap.orgl40CaseStudiesINCFAB Exec Sum. pdf

18 James, Clive. "Global Review of Commercialized Transgenic Crops: 2001. Feature: Cotton,"International Service for the Acquisition of Agri-biotech Applications, Dec. 13, 2002,www.isaaa.orglkclCBTNewsflSAAA1R1briejs26_exeng.htm.

19 Brookes, Graham. "The Farm Level Impact of Using Bt Maize in Spain," Sept. 16,2002,www.europabio.orgiuploadidocumentslgb-press_releaselEuropaBio_btmaizeinspainre­port]INAL.pdf

"Impact of Transgenic Canola on Growers, Industry and Environment," CanDIa Council of Canada,www.cmwla-cDuncil.orgiproductiowimpactsurvey.pdj

21 James, Clive. "Preview: Global Status of Commercialized Transgenic Crops: 2002," InternationalService for the Acquisition of Agri-biotech Applications, ISMA Briefs, No. 27, p. 17.

"Population Numbers and Trends: 'World Population Still Growing," United Nations Population Fund,www.unfpa.orgimodulesibriefkitl05.htm.

23 "State of World Population 2001: Chapter 2, Environment Trends, Moving Towards FoodSecurity" United Nations Population Fund, November 7,2001,www.unfpa.orglswpl2001lenglishlch02.html#2d.

24 Hautea, Randy A., James, Clive. "The Road to Global Sustainable Agriculture: A View andExperience from ISAAA," multimedia presentation, slide 3.

25 Prakash, C.S. "Agricultural Biotechnology and Food Security," PowerPoint presentation, Slide 8,www.agbioworld.org.

26 «Food in the 21st Century: From Science to Sustainable AgricultUre," Consultative Group onInternational Agricultural Research (CGIAR), p. 21,www.worldbank.orglhtmVcgiarlpublicationsishahbookishahbook.pdf

27 "Food in the 21st Century: From Science to Sustainable Agriculture," Consultative Group onInternational Agricultural Research (CGIAR), p. 24,www.worldbank.orglhtmllcgiar/publications/shahbook/shahbook.pdf.

18 "Sweet POtato," International Service for the Acquisition of Agri-biotech Applications,www.isaaa-africenter.orgisweetpotatoes.htm.

29 "Combating Vitamin A Deficiency: The Challenge," World Health Organization Web site, Sept. 12,2002, www.who.intlnutlvad.lum.

30 "Harvest on the Horizon," Pew Initiative on Food and Biotechnology, September 2001,pewagbiotech.orglresearch/harvestllwrvest.pdf

31 "Although Controversial, Biotechnology Could Be Breakthrough Technology for DevelopingWorld," United Nations Development Programme, July 10, 2001,www.undp.orglhdr2001lpr2.pdf

32 International Society of African Scientists Position Statement on Agricultural BiotechnologyApplications in Africa and the Caribbean, www.monsantoafrica.com/reportsIISASlISAS.html.

33 "Biotech Crop Use Benefits Environment," Council for Agricultural Science and Technologypress release, June 25, 2002, www.cast-science.orgipubsibiotecllCropsbenefiCnr.htm.

34 "Conservation Tillage and Plant Technology: How New Technologies Can Improve theEnvironment by Reducing the Need to Plow," Conservation Technology Information Center,October 2002, www.ctic.purdue.eduiCTICIBiotech.html.

35 «Food Safety Evaluation of Crops Produced Through Biotechnology," Journal of the AmericanCollege of Nutrition, Vol. 21, No. 90003, 1668-1738 (2002),

good ideas eighteen

35 "Food Safety Evaluation of Crops Produced Through Biotechnology," Journal of the AmericanCollege of Nutrition, Vol. 21, No. 90003, 1668-1738 (2002),W't.e'w.jacn.orglcgilcontentijulll2VsuPPCJl166S.

36 "Plant Biotechnology in Canada," Council for Biotechnology Information,www.whybiotecli.comlhtmVpdf/plancbUn_canada.pdf.

37 "Improving the Regulation of Genetically Modified Foods and Other Novel Foods in Canada,"Canadian Biotechnology Advisory Commirtee, August 2002, p. ix,www.cbac-cccb.caldocumentslen/cbac.report. pdf

38 "Improving the Regulation of Genetically Modified Foods and Other Novel Foods in Canada,"Canadian Biotechnology Advisory Committee, August 2002, p. xii,www.cbac-cccb.ca/documentslen/cbac.report.pd]:

39 Aaron, David, former undersecretary of Commerce and Trade. "In Support of Biotechnology(Expert Views)," The Alliance for Better Foods, www.betteJjoods.org!Expert!Expert.htm.

40 "Commission Launches Roundtable on GMO Safety Research," European Commission, Sept 10, 2001,europe.eu.intirapicVstartlcgilguesten.ksh?p_action.gett.:-ct=gt&doc=IP/01/1J911OIRAPID&lg=EN&display.

41 "Genetically Modified Crops and Foods," American Medical Association (MIA), Recommendation #6,www.ama-assn.orgiama/pubJarticle/2036-J604.html.

42 "Report of a Joint Consultation of the U.N. Food and Agriculture Organization and the vVorldHealth Organization" 1996, w'WW.who.int.

43 "Vatican Experts OK Plant, Animal Genetic Engineering," St Louis Review, Oct. 22, 1999,www.bio.orgljood&agl'Datican.html.

Timeline SourcesLeapman, Michael. The Ingenious Mr. Fairchild, St. Martin's Press. New York, 2001.

"Mendel, Gregor Johann,'! Microsoft® Encarra® Online Encyclopedia 2002,encarta.msn.com/encnet/refpagesIRr4Article.aspx?rejid=761562358.

Biotechnology Industry Organization timeline, www.bio.orgler/timeline2.asp.

"Luther Burbank: The Idaho Potato," The Lemelson-MIT Award's Program's InventionDimension, web.mit.edu/in'Dent/w'WW/in'DentorsA-H/burbank.html.

5 Hybrid Corn History, Development, National Com Handbook,www.injorm.umd.edulEdResITopic/AgrEnvinddiagronomy/HYBRID_GORN_HISTORY%2G_DEVELOPJVIENT.html.

(, About Biotech, Overview and History, Access Excellence, The National Health Museum,www.accessE'.-"Ccellence.orgiABIBGlOverview_and_Briej_History.html.

"Luther Burbank: The Idaho POtato," The Lemelson-MIT Award's Program's InventionDimension, web.mit. edulin'Dent/www/in'DentorsA-H/burbank.html.

8 Biotechnology Industry Organization Timeline, 'Www.bio.orgler/timeline2.asp.

9 Hybrid Corn History, Development, National Corn Handbook,www.in]oTm.umd.edulEdResITopic!AgrEnvlndcVagronomyIHYBRlD_CORN_HISTORY%2G_DEVELOPMENT.htrnl.

10 "Watson and Crick Describe Structure of DNA," A Science Odyssey, People and Discoveries,PBS, www.pbs.orglwgbh/aso/databank/entries/do53dn.html.

II Billions Served, Reason Online, April 2000, reason.com/OOO4{fe.rb.biliions.shtml.

12 About Biotech, Access Excellence, The National Health Museum,www.accessexcelience.orgiAB/BCl1977-Present.html.

13 About Biotech, Access Excellence, The National Health Museum,www.accessexcellence.orgiAB/BCl1977-Present.html.

14 About Biotech, Access Excellence, The National Health Museum,www.accessexcellence.orgiAB/B0I1977-Present.html.

15 About Biotech, Access Excellence, The National Health Museum,www.accesse.,\;cellence.orgiABIBCI1977-Present.html.

16 About Biotech, Access Excellence, The National Health Museum,www.accessexcellence.orgiAB/BC/1977-Presenchtml.

17 "Milestones in Molecular Biology and U.S. Agricultural Biotechnology," Economic Issues inAgticultural Biotechnology/AIB-762, U8DA-ER8.

18 "Biotech Basics, A Brief Biotech Timeline," Monsanto,.www.biotechknowledge.monsanto.com!biotechibbasics.nsjltimeline.html?OpenPage.

19 International Service for the Acquisition of Agri-biotech Applications, www.isaaa.org.

20 "Biotech Basics. A Brief Biotech 1imeline," Monsanto,www.bivtechklWwledge.monsanto.comibiotechlbbasics.nsf/timeline.htrnl?OpenPage.

21 "Little \Veed in Science Landmark," BBC News, Dec. 13, 2000,news. bbc.co.uk/llhi/sci/teclv'l068S4S.stm.

22 International Service for the Acquisition ofAgri-biotech Applications, 'W'U'W.isaaa.org.

23 Travis, John. "Gene Makes Tomatoes Tolerant of Salt," Science News Online, Aug. 4, 2000,www.soiencenews.org/20010804/jobl.asp.

24 "EC-sponsored Research on Safety of Genetically Modified Organisms: A Review of Results,"European Commission vVeb site, europa.eu.intlcomm/research/quality-oj-lije/gmo/index.html.

25 "Biotech Corn Approved for Continued Use," Environmental Protection Agency, Oct. 16, 2001,yosemitel.epa.goviopa/admpress.nsj!blab9j4S5b09S972S52562e7004dc6S6I8db7aS3e66e0j7d085256ae7005d6ec2?OpenDocument.

"Conditional Registration of Bt Corron Reaffirmed," Environmental Protection Agency, Oct. 2, 2001,yosemitel.epa.goviopa/admpress.nsj!blab9j4S5b098972852562e7004dc6861e9220c40c6c547deS5256ad90063699b?OpenDocument.

27 Gianessi, Leonard P. "Plant Biotechnology: Current and Potential Impact for Improving PestManagement in U.S. Agriculture, An Analysis of 40 Case Studies, Executive Summary," June 2002,p. 1, www.ncjap.org/40GaseSrudiesINGFAB Exec Sum. pdf.

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Sincerely,

MNBIO 2004 1 MB

.Our business expertise, skilled workforce and renowned research infrastructure are

tremendous competitive advantages. These strengths are supported by a vibrant andwell-established biosciences sector in areas as diverse as applied biologics, agricultural

and industrial biotechnology, and the life sciences. Minnesota's heritage of innovation

fuels this entrepreneurial energy - our potential to excel in this industry is limitless.

Minnesota is a place where the expansive horizons of the great plains meet the snowy

treetops of the north woods, where the trickle of a small stream becomes the source of

themighty Mississippi River, and where our heroes have always taken on tasks that are

larger than life (just ask Paul Bunyan).These symbols of growth and strength set us

apart and contribute to the spirit that makes our state great.

As we continue to fully explore the possibilities that are waiting for us just around the

riverbend, I encourage you to learn more about the Land of10,000 Lakes, its wealth of

opportunities, and the entrepreneurial spirit and ingenuity that has been the source of

our many successes.

-Welcome to the readers of MNBIO's new biotechnology publication! I cannotover;Uphasize how important biotechnology initiatives are to the future of our country

and to the state of Minnesota.

Greetings,

June, 2004

"':-~~Tim PawlentyGovernor

Voice: (651) 296-3391 or (800) 657-3717 Fax: (651) 296-2089 TOD: (651) 296-0075 or (800) 657-3598Web site: http://www.governor.state.rnn.us An Equal Opportunity Employer

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By Vicki Stavig.,.-Bioscience companies extend farbeyond the metro area, as is being demonstrated inWorthington.

15 COUNTRYSIDE CONNECTIONS

18 APOWERFUL PARTNERSHIPBy Vicki Stavig-The University of Minnesota and MayoClinic join in search of discoveries in biotechnology andgenomics.

Minnesota Governor Tim Pawlenty comments on theimportance of the state's biotechnology initiatives.

ANOTE FROM THE GOVERNOR1

8 CREATING CATALYSTS

5 THE BIOTECHNOLOGY ERA

By Gene Rebeck-Minnesota could be on the leading edgeof the next wave of biotechnology development.

By Vicki Stavig-MNBIO has helped usher its arrival, and itintends to help Minnesota's biotechnology industry grow.

By Vicki Stavig-State political leaders are determined tocreate an economic infrastructure to support bioscience firms.

12 EMERGING CONVERGENCE

21 MAKING ADIFFERENCEBy Vicki Stavig-Leaders, changeagents, champions: Meet four of them.

24 BECOMING ALEADERBy Vicki Stavig-Minnesota is a statewhere biotechnology can prosper.

28 THE BIOSCIENCE STORYMNBIO leadership chronicles pastevents, and looks forward to the futureof the Minnesota bioscience industry.

MN

•

COVER PHOTOGRAPH BY MATIHEW COPPERSMITH MNBIO 2004 3MB

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4MB MNBIO 2004

It's here. MNBIO has helped usher its arrival, and it intendsto help Minnesota's biotechnology industry grow.

for their state."My strong belief is that we are just

entering The Biotechnology Era,"says Doug Astry, the 2004 president ofMNBIO and also general manager ofthe Diagnostics and Drug DiscoveryBusiness Unit for SurModics, Inc., anEden Prairie-based company. "Min­nesota can participate in this emerg­ing industry," he says. "Our ability tocompete is based on the integration ofseveral components. The first compo­nent involves research and technolo­gy-where ideas originate. We strong­ly support the University of Minneso­ta and Mayo Clinic research; we arefortunate to have these world-class

informing, and educating in an effortto help ensure its continued vitalityand future growth.

Their efforts were rewarded lastyear when Minnesota Governor TimPawlenty and other state officialsmade support for the industry aneconomic priority for the state. Abreakthrough came in February 2003after MNBIO helped to organize"Biosciences 101"-a seminar thataddressed subjects ranging from thebasics of bioscience to specific busi­ness opportunities. The day-longseminar attracted some 90 Minnesotalegislators eager to learn more aboutthe industry and the potential it holds

Vicki Stavi

he past year hasbrought a sharpenedfocus on biotechnolo­gy among Minnesota'sbusiness leaders, law­

makers, and educators, who began inlarge numbers to recognize the indus­try's potential to create jobs, spawnnew companies, and enhance theeconomic vitality of their state.

Members ofMNBIO-thestatewide organization that has be­come synonymous with the industry itrepresents-could hardly be morepleased. For more than a decade, theyhave been hard at work within the in­dustry and in support of it-lobbying,

PHOTOGRAPH BY MATTHEW COPPERSMITH MNBIO 2004 5MB

Attending the May 2003 dedication of the Cargill Building forMicrobial and Plant Genomics were (left to right) U of M DeanRobert Elde, Cargill CEO Warren Staley, Minnesota GovernorTim Pawlenty, and U of M President Robert Bruininks.

Statistics inclicllte thdtH'" D:Lot,eCI1­nology industry is J);f()wiinJ); u .......u~­

nesota and throughout the UnitedStates. Some 1,457 U.S. companies­342 o:&them publicly held with a totalmarket value of $206 billion as ofApril2003-are focused on biotech­nology. Those companies employ191,000, and in 2001 alone spent $15.7billion on research and development.

The Biotechnology Industry Organi­zation, a national trade associationbased in Washington, nc., indicatesthat 70 percent of the more than 155biotechnology drugs and vaccinesapproved by the U.S. Food and DrugAdministration were approved duringthe past six years. More than 370biotech drug products and vaccines,targeted at more than 200 diseases, arestill in clinical trials.

In Minnesota, more than 60,000people work for companies involvedin bioscience research and production.Between 1997 and 2001, those compa­nies registered more than 3,700patents in biotechnology and relatedfields. The work they are doing hasattracted funding from venturecapitalists-almost $134 million in2002, which represents 41 percent ofthe total venture capital investmentsin the state.

Along with growth comes competi­tion, and competition among major

Today,theation represents125 institutionsand companies,including suchindustrial giantsas Medtronic,Boston Scientific,3M, Cargill, andGuidant.

MNBIOalsocounts among itsmembershipdozens of small tomid-sized compa­nies throughoutthe state, as wellas representativesof state and local

governments and academia. Ray Frost,executive director of the association,notes that from the end of 2002 to theend of 2003,"we had a 45 percentgrowth in membership."

Based in St. Paul, MNBIO is gov­erned by an active board of volunteerdirectors that provides strong leadershipand represents an impressive cross sec­tion of the industry. What those mem­bers have in common is a dedication tousing biotechnology to ensure the healthand safety of the world's population, andto growing the industry in Minnesota.

"Biotechnology is the future - thefuture of health care, the future of

entrepreneurs, leadership from estab­lished Minnesota companies, andinvestment capital. Our job at MNBIOis to support these three components,"principally through education.

"Education is a critical element indriving the industry," agrees MattKramer, commissioner of the Min­nesota Department of Employmentand Economic Development and chairof the Minnesota Bioscience Council."Our task is in educating our citizens,businesses, and schools."

The message, Kramer says, is this:"Here is the potential. Start thinkingabout how [the state's biotechnology

"Biotechnologyhealth care, theof industrial proce

6MB MNBIO 2004

Dr. Weisman, MD, President, Jo nson & JoPharmaceutical Research & Development LLC

"MNBIO is trying to bring theindustry forward in the eyes of thepublic and the state," Kirihara says."We were very encouraged whenGovernor Pawlenty began his termand adopted the biotechnologyindustry as his chief economic focus.MNBIO is here to provide whateverhelp is necessary."

Ray Frost couldn't agree more."Our biggest issue right now is to ad­vance some of the initiatives comingfrom the governor's BioscienceCouncil and to get them through thelegislature," he says. "Until GovernorPawlenty was elected, there wasn't alot of promotion or a plan on how toposition Minnesota as a biotechnolo­gy leader. He has clearly taken thetime to learn about biotechnology andthe opportunities it represents. Webelieve the sky is the limit." •

Vicki Stavig ofBloomington is afree­lance writer andfrequent contributor toTwin Cities Business Monthly.

Annual ConferenceOctober 21,

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University of Minnesota are two ofthe world's leading research institu­tions and have formed a partnershipto conduct genomics research. CargillDow is using cornstarch to manufac­ture biodegradable packaging andfibers. Renewable energy is beingmade with Minnesota corn andsoybean oil. Advances in medicineare arriving at an ever-acceleratingpace-although not at the rateMNBIO members hope to see inyears to come. "This is about jobs,growth, the future," says MNBIOPresident Astry. "This is really a long­term process. We all want growthimmediately, but we're at the frontend of the age of biology. It is pro­found and attainable, but it won'thappen overnight."

As it does happen, much of it islikely to be driven by MNBIO mem­bers who devote considerable timemeeting with legislators and othersto ensure that growing the industryremains a priority for the state.

Keynote Speaker

u.s. cities hoping to become industryleaders is heating up, says BonnieBaskin, a former MNBIO president.She serves as chief executive officerof AppTec, a St. Paul-based firm thatprovides testing, research and devel­opment, and manufacturing servicesfor the bioscience and medical deviceindustries. "Every city is looking to

_ reate a biotech community," Baskinsays. "We have a unique opportunityto be one of the successful cities dueto the strong academic institutions inour state coupled with our strongventure financing community. Weneed to support the growth of thesenew ventures by providing them withan incubator to grow in, a financialincentive to stay in the state, and ac­cess to available capital. It takes lead­ership with a vision and patience tosee this through."

As individuals gain familiarity withthe industry, they are invariablyimpressed with the work of MNBIOmembers. Mayo Clinic and the

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MNBIO 2004 7MB

8MB MNBIO 2004 PHOTOGRAPH BY MATIHEW COPPERSMITH

the corridor. He is also a member ofthe board for the Minneapolis Life­sciences Consortium, which is promot­ing the zone to bioscience busiriessesand research organizations. Membersiriclude Children's Hospital, the Hen­nepin County Medical Center, AbbottNorthwestern Hospital, the MirinesotaCardiovascular Research Institute, the

ee. nte theh that more than 80serve as members.)Council was con-

st iri the develop­bioscience busi-

s iri Minnesota, . has per-ed that function effe

Minnesota Legislature fokey recommendations b

irig the creation of three Bioscieh.Zones, and supportirig a strategic part­nership between the University ofMiri­nesota and Mayo Clinic.

The state-established BioscienceZones consist of three areas- one nearthe University of Minnesota's Miri­neapolis campus, one near the Universi­ty's 81. Paul campus, and one near MayoClinic in Rochester-iri which biologicalscience companies canreceive tax iricentives.

The zones, totalirig1,508 acres-SIS iri81. Paul, 497 iriMinneapolis, and 496iri Rochester - aredesigned to stimulatea synergistic clusteringof biotechnologyand health sciencesbusinesses.

Those locatingwithin the zones willbe eligible for exemp­tions on corporatefranchise taxes, salestaxes on busiriess pur- U of M Dean Robert Elde serves as chair of the Universitychases, and property Enterprise laboratories-an incubator for biotech companies.taxes. They can alsoreceive research and development taxcredits, as well as employment tax cred­its for engenderirig high-paying jobs.The goal is to facilitate the growth of ex­istirig and start-up bioscience companiesby lowering their overall operatingcosts. The state has begun a marketingcampaign to promote the zones atbioscience iridustry trade shows and

"The kinds of ~h",l"'''''''-'

doing in Minnesotathe nation in some areas."

innesota'splanned "bio­science revolu­tion" is off to afast start, thanks

in large part to Governor Tnn Pawlen­ty's Bioscience Initiative, a strategic planto establish the state as a hotbed ofbiotechnology companies. From tacentives to state funding, the goveinitiative consists of a variety of tools iri~

tended to drive growth for the iridustry."I think the governor has provided

wonderful leadership iri this area," says81. Paul Mayor Randy Kelly, who servedwith Pawlenty- but iri the opposirig po­litical party-iri the Minnesota Legisla­ture. "He understands that this is anarea that will see blistering growth. I

•

[ think it's iri the right direction and that itvill pay significant benefits iri the long

run. It will require hard work and deter­mination, but it is an area iri which wecan create thousands of jobs."

Minnesota has long been a state iriwhich product innovations are com­monplace, especially iri agricultural andmedical technology.That attribute­combiried with the state's history ofentrepreneurial vitality, the presence ofample expertise iri busiriess-building,strong access to technical education, andan ambitious workforce-has helpedcreate a strong foundation on which tobuild a vibrant biotechnology iridustry.

One of the first steps the governortook was to establish a BioscienceCouncil, made up of business and aca­demic leaders, members of Minnesota'sirivestment community, and governmentofficials. The council is charged withdvisirig the governor's office and theinnesota Legislature on matters of

policy regarding bioscience, and to rec­ommend strategies to support the state'sbiotechnology iridustry. The council ischaired by Matt Kramer, commissionerof the Minnesota Department of Em­ployment and Economic Development,

PHOTOGRAPH (RIGHT) BY TIM RUMMELHOFF MNBIO 2004 9MB

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Minneapolis NeuroscienceInstitute, the Phillips EyeInstitute, the Sister KennyInstitute, and a host of otherlife-sciences organizations.

The consortium hopes toattract and grow businesseswithin the corridor throughseveral programs, includingan incubator in the formerAllina medical building at915 South Seventh Streetthat will provide "cash andcoaching" to start-up compa­nies in the medical deviceand life-sciences fields.Based on estimates byGenesis Business Centers, abusiness incubator manage­ment services organizationlocated in ColumbiaHeights, the incubator couldgenerate 127 jobs within fiveyears, and 912 jobs within10 years. The estimatedannual payroll impact at theend of 10 years of operationis estimated at $27 million,while the estimated aggre­gated economic impact ofthose jobs to the neighbor­hood could reach as high as$50 million annually.

Consortium members rec­ognize that promoting thebioscience industry on sever­allevels is key to growingthe industry in Minneapolisand have developed severalinitiatives to do so. Theyhope to attract investorsthrough a variety of pro­grams, including New Mar­ket Tax Credits, which willprovide a 39 percent federalincome tax credit spread outover seven years for in­vestors in companies locatedalong the corridor, and theMinneapolis LifesciencesCapital Fund, a multi­investor community devel­opment corporation that willbe funded by commercialbanks and utility companiesthat serve businesses withinthe corridor.

St. Paul's Mayor Kelly ishelping to drive the biotech­nology industry in that city,

where health care compa~

nies already account formore than 17,000 jobs. Meet­ing with representatives ofseveral1\vin Cities' compa­nies-including Xcel Energy,3M, Medtronic, Guidant, andthe Dorsey & Whitney lawfirm - Kelly was instrumen­tal in raising $8 million to •purchase and renovate a for­mer Target Direct facility inthe neighborhood nearHighway 280 and UniversityAvenue in St. Paul inAugust, and convert it intothe University EnterpriseLaboratories (UEL).

The UEL will be an incu­bator for biotechnologycompanies. The facility willhave 50,000 square feet oflab-based incubator space,and 75,000 square feet of of­fice and laboratory space forbioscience companies andrelated businesses. It is ex­pected to add about 400 jobsin the city over the next fiveyears. "We have 14 compa­nies that have agreed tomove into that facility,including a Swiss companythat is relocating its NorthAmerican marketing divisionthere," Kelly says. "We thinkit will serve as a real beaconfor bioscience and biotech­nology innovation and cre­ativity. It holds tremendouspossibilities for expanding St.Paul's economy." The mayorhas been promoting the incu­bator as he meets with offi­cials from throughout theworld, including representa­tives of the United Kingdom,Australia, and Israel.

Robert Elde, dean of theUniversity of Minnesota'sCollege of Biological Sci­ences, serves as chairman ofthe board of the UEL, whic!]he regards as a key compo- \nent of the economic infra­structure needed to fosterthe creation of biotechnolo­gy companies. Even thoughmany of Minnesota's entre­preneurs of the past have

10MB MNBIO 2004

- Vicki Stavig

bioscience research facilityto be developed jointly bythe U and Mayo Clinic, and$15 million in bonding fordevelopment grants to beused in the BioscienceZones. The Bioscience Coun­cil also has recommendedearmarking more than $1.3million in custom workforcetraining funds in biosciencetechnologies during the nexttwo fiscal years.

Senator Steve Kelley, aDemocrat from Hopkins,is amember of the BioscienceCouncil and has been astrong supporter of thegovernor's initiative. Healso was chief sponsorof a bill to authorize $75million for the University ofMinnesotalMayo Clinic part­nership, money that wouldsupport research projectslikely to lead to the creationof Minnesota biotechnologyjobs. If the state can providemoney for that type of re­search, Kelley says, federaldollars will likely follow."The kinds of things we'redoing in Minnesota are lead­ing the nation in some areas,"he says. "We won't overtakeNew Jersey of California inpharmaceuticals, but in theniches we have in the fieldsof regenerative cells, theblending of cells, and in med­ical devices, I don't think anystate is ahead of Minnesota."

Representative LynneOsterman, a Republicanwhose district includes theMinneapolis suburb ofNew Hope, introduced theoriginal bill to establish theBioscience Zones.

She, too, is enthusiasticabout the direction Minneso­ta is heading: "Other stateswill have to do a lot just tocatch up with us. Naysayerswere saying that Minnesotawas late to the table, butwe're fortunate in the waythe table was set." •

started their companies inkitchens and basements, "youcan't do molecular biology ina garage," Elde says.

The governor's initiativealso focuses on research. Itestablished the Rochester­based Minnesota Partnershiptaf:.r Biotechnology and Med­-..ral Genomics, an alliancebringing together the Uni­versity of Minnesota andMayo Clinic in a mission tofuel new discoveries that willcreate jobs and give rise tonew companies. That part­nership, says Department ofEmployment and EconomicDevelopment CommissionerMatt Kramer, is a critical ele­ment in the state's drive togrow the biotechnology in­dustry. State officials backedup that partnership with $2million in seed capital. TheBioscience Council and thegovernor have asked statelawmakers to allocate an ad­ditional $70 million for re­search during a five-year pe-

•

'od beginning in 2005."The University of Min­

nesota has built strong basicresearch programs in molec-ular and cellular biology, andis continuing to invest itsown resources to build on itsdistinctive strengths in thelife sciences," says UniversityPresident Robert Bruininks."Collaboration with other in­stitutions-both public andprivate-will be critical totaking the University's andMinnesota's bioscience in­dustry to the next level. Butthese are capital- and tech­nology-intensive areas thatrequire significant new in­vestments. The Governor'sBioscience Initiative sets thestage for future success, but

esota's future as aiotech state will depend on

a continued commitment toeducation and basic researchin bioscience."

Pawlenty's funding priori­ties for 2004 include $20million in bonding for a

MNBIO 2004 11MB

Minnesota's strength as a medical-device manufacturercould put the state on the leading edge of the nextwave of development in biotechnology.

ith globally renowned compa­nies famous for such lifesavingdevices as heart valves, stents,and pacemakers, Minnesota is

a world leader in medical technology, which is not news.And although the state is not-not yet-a world leader

in biotechnology, its strength in developing, manufactur­ing, and marketing medical devices could put Minnesotaat the heart of a highly promising new field: "convergent"devices that meld traditional medical technology andbiotechnology. The convergence is only beginning, "butwe're clearly moving in that direction," says Dr. MarkPaller, the University of Minnesota's assistant vice presi­dent for research and a professor of medicine.

So what might this biotech/med-tech convergence looklike? Paller and other experts in life science technologiessuggest that that there will be many applications "of ourunderstanding of how cells, DNA, proteins, and so onwork in order to come up with therapeutic solutions."Perhaps the most immediate possibility is creating spe­cialized devices that deliver biotech-engineered materialsto the parts of the body that need them.

Robert Elde, dean of the University of Minnesota'sCollege of Biological Sciences, cites the emerging devel-

opment in the pharmaceutical industry of "biologics"­chemicals found in the body that can be processed intopharmaceuticals to treat disease. These substances typi- •cally consist of large strings of amino acids, a category ofchemicals that includes hormones and antibodies. Afamiliar example is insulin, a human hormone that isprocessed artificially in order to treat diabetes.

The newer breakthroughs in pharmaceutical biologicsinclude products from such California-based companiesas Genentech and Amgen. Case in point: Amgen's En­breI, which treats rheumatoid arthritis by simulating theactions of a protein that the body produces naturally tocounteract a superabundance of tumor necrosis factor,which causes painful inflammation.

But for all of their potential and current capabilities,biologics have one big drawback: Their molecules are solarge that they can't be formulated into pills. Enbrel, forinstance, has to be injected. (This is why biotech could beso disruptive to traditional pharmaceutical firms: they'reset up to create and market "small-molecule" medicationsthat can be easily swallowed.) Biologics, as Elde notes,have to be delivered "to the right part of the body at theright time, in the right amount."

"And that's what the device industry is good at," he

"2MB MNBIO 2004

"The whole biotech industry is powered by information technology and thedatabases that are growing on the human genome;' says Rebecca Bergman.vice president of science and technology at Medtronic.

ILLUSTRATION BY RICHARD TUSCHMAN; PHOTOGRAPH BY CRAIG BARES 13MBMNBIO 2004

"The next step might be stentsthat actually have cells attached tothem," Paller speculates. "So thatwhen you put this stent in, it looksmore like a natural blood vessel. Thestent might not be titanium. It may beof a different material that might dis­solve after you heal the structure asthe new cells grow."

Artificial organs offer another poten­tial meeting place for mechanicaldevices and biomaterials. Artificiallivers and pancreases already underdevelopment could combine a device­like support structure made from artifi­cial materials with "coatings" of actualhuman cells. Don Gerhardt, president ofMedicalAlley, a nonprofit organizationrepresenting Minnesota's health care in­dustry, notes that University of Min­nesota researchers are working on anarray of creations where "it's difficultto tell the difference between tissueand device." One such product is anartificial cornea in which a collagensponge is "seeded" with cells that de­velop into corneal connective tissue.

Industry leaders speak of yetanother form of convergence: theintersection of medical technology,biotechnology, and information tech­nology. Convergent devices could beused not only to direct or stimulateengineered biomaterials in the body,but also to gather data (via implantedsensors) for physicians' use. "Thewhole biotech industry is powered by

eluting stent that was largely developedat the company's Minnesota facility inMaple Grove. A similar product fromJohnson & Johnson incorporatessurface-modification technologydeveloped by SurModics, Inc., head­quartered in the Minneapolis suburb ofEden Prairie. The stents point to newways that devices can be modified toaccommodate the particularities of anindividual's body chemistry, especiallyto release large-molecule medications.

adds. "They can put a catheter any-. where in the body. And now they can

.akecatheters and stents where they. can kind of control the release of the

stuff from the device."Rebecca Bergman, vice president of

science and technology at Fridley­based Medtronic, Inc., notes that herfirm "knows how to get to preciselocations, and then we know how to dosomething once we're there. And welook at that competency and say, 'Well,aha! Biotech is going to need this.'"

Medtronic and other medical­device companies are keeping closetabs on developments in biotechnolo­gy to see where they might fit into theindustry- and discovering multiplepotential entry points. Medtronicalready has a convergent device on themarket: The firm's Sofamor Danekdivision has developed a productcalled Infuse, which suffuses a bone­expanding protein into a cage-liketructure to generate bone growth in

damaged spines.Meanwhile, Massachusetts-based

Boston Scientific is producing a drug-

information technology and the data­bases that are growing on the humangenome," says Medtronic's Bergman.

The most promising- and controver­sial-ofmedical therapies might wellinvolve stem cells. As academic and cor­porate entities around the world workto harness the potential reconstructivecapabilities of these cells, Minnesotadevice firms are considering what rolestheir products could play if and whenstem cell therapies become marketable.Device systems may be needed todeliver these cells to the right part ofthe body.

"If we're talking about someonewho's had a major heart attack, and wewant to repair the heart muscle, [stemcells could] be injected into the area ofthe damaged heart," Paller explains."How do we do that? Devices." Theconfigurations of those devices mightbe very different from current concep­tions. One possibility, offered by FredMcCoy, president of Guidant Corpora­tion's Cardiac Rhythm Managementunit in Arden Hills, is that "cell growth

and regeneration could be modulatedby an electrical means."

Although such major Minnesota firmsas Medtronic, Boston Scientific, andGuidant are likely to take the lead inbringing convergent devices to market,smaller, emerging firms are also certainto be involved.

One such company is St. Paul-basedIslet Technology, Inc., which is preparingto commercialize pancreatic islet cells(used to create insulin) that are encap­sulated in a higWy engineered plasticthat "protects" them from attack by thebody's immune system. The FDA "treatsthis material as a device," notes BillDrake, an Islet Technology director andcofounder. In nearby Columbia Heights,another Minnesota-based start-up,MicroSurfaces, is marketing surfacecoatings for microarrays-silicon orglass slides containing hundreds ofDNA or protein sections. The coatingsare designed to make it easier for re­searchers to isolate and study humanproteins that are the causes or symp­toms of disease.

McCoy believes that biotech andmed-tech "complement one another, asopposed to being a substitute for oneanother"-that biotechnology will cre­ate some intriguing new opportunitiesfor device manufacturers. Minnesota'sdevice capabilities could also spur newbiotech products.

At the University of Minnesota,Robert BIde notes that Minnesotawasn't "part of that first wave ofbiotechnology and industry; that hap­pened in a neighborhood of researchuniversities that were academic leadersin molecular biology." But he dismissesskepticism that it's too late to surgeahead. "This convergence," BIde says,"brings around a new generation ofopportunities, and I think the kind ofindustry that we have here- and theexpertise here at the University-canhelp fuel that. I think that this is reallyan area where if we do it right, we canbe a pretty big player." •

Gene Rebeck is senior editor of1\vinCities Business Monthly.

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large producer of corn and soybeans, and it soon will behome to a biodiesel plant. The region's economic depend­ence on the production of livestock and feed made it anatural fit for Newport Laboratories, a firm that providesdiagnostic services and customized vaccines to veterinari­ans and the livestock industry. Founded in 1997, thecompany employs 47 people and operates two USDA­licensed biologic production facilities, one in Worthingtonand the other in Iowa.

"Livestock is our major focus," says Randy Simonson,Ph.D., Newport's general manager and chief operatingofficer. "The company applies technology that can helpthese producers do a better job of producing healthy ani­mals." It does so by applying genetic analysis genesequencing, which allows Newport to identify the geneticmakeup of viruses or bacteria and then develop vac­cines to treat the diseases. The company has receivednational recognition for its work, which it often does incooperation with companies in other parts of the world,such as in South Korea, Spain, Mexico, and Canada.

"We receive diagnostic specimens from livestock

lthough Minnesota's biotechnolo­gy companies have tended tocluster in the metropolitan area,greater Minnesota is attracting itsshare of life science businesses aswell; many of them, not surprisingly,

involved in plant or animal biotechnology.Community leaders throughout the state, having recog­

nized the importance of the industry to local economies,are working hard to recruit and grow those life sciencebusinesses. Consider, for example, the southwest Minneso­ta community ofWorthington where Glenn Thuringer,manager of the Worthington Regional Economic Devel­opment Corporation, is spending much of his time inrecruiting and supporting the growth of biotechnologycompanies. "Biotech is growing here in southwest Min­nesota," he says. "It's a large industry, but we think we'reonly scratching the surface in being a major player. In themetro area, the industry is more focused on health care; inrural Minnesota, it is more agriculture and animal health."

That certainly makes sense. The Worthington area is a

PHOTO ILLUSTRATION © PHOTO RESEARCHERS, INC. MNBIO 2004 15MB

producers all over the nation," Simon­son says;~'For example, a cattle pro­d~ce~ in Te~~s was losing ~dult cattleto sudden death and had worked witha'variety of consultants, but wasn't ableto identify w~at;wasgoing 0 11,We got~yolved~itrTexasA&M Universit~

and identified a bacterium that lookedlike it was responsible. We thenpnwided a custom-mad~vqgcine that~qS appli(ld to the livestock."

Late this summer, Newport Lab()j~at(j­ries will triove into a former Worthing­ton tourist museum that will providemuch-needed space for its growing op­erations. The building is located on 31acres of land, which includes space for afuture campus where a 2,000-square­foot laboratory/training center, fundedin part by the Blandin Foundation inGrand Rapids, Minnesota, will be built.

Worthington's population is only11,300, and there are no larger citieswithin 50 miles. But it is home to morethan 130 biotechnology professionalswho work for bioscience firms there.

Many of them are with Prairie HoldingsGroup, an entity of eight diversifiedagricultural technology companies. TheWorthington area is aIso home to Inter­vet, a division of Intervet Internationalofthe Netherlands, the second largestanitriaI heaIth company in the world,Swift & Company, which processesmore than 16,000 hogs a daY,iand Nu­tripro BioSystems, which manufactw;esmicrobial;waste Il1anageI11ent pr9pucts.

Other biotechnology companies lo­cated in and near Worthington includeMinnesota Soybean Processors, whichwill soon begin construction of abiodiesel plant, Propig.com ProductionManagement Systems, which special­izes in swine production and technolo­gies, Precision Nutrition Incorporated,a company that specializes in swineand beef nutrition, Prairie LivestockSupply, which offers a number of serv­ices including animal health care, andthe Veterinary Medical Center, nation­ally known for its excellence in swineproduction medicine.

"Bioscience is a natural fit for thisarea," Thuringer says. "We understandthat the University of Minnesota is areaI driver for this, but there is researchthat can be done on specific projectsthat are more coun.tryoriented, andthes~E()I11paniesin\V0rthingtoncanspecialiie in them. We hope that, as theU develops new products and as compa­nies buythose products, they will look atWorthington to produce them."

Worthington is taking an aggressiverole in promoting the area as a biotech­nology hub, not only to Minnesota com­panies but to companies throughout thecountry. In June, the city sent a contin­gent to BIO 2004, the national biotech­nology conference in San Francisco."We went to promote the communityand its businesses," Thuringer says. "Wewanted to heighten the awareness ofWorthington and the area."

Meanwhile, the region is also sup­porting-and seeking support for­existing companies. Thanks, for exam­ple, to a $190,000 grant from the Min-

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gene from one species to another toimprove the yields."

In a sense, what Syngenta is doing isselective breeding, using practices notentirely unlike those used in breedinglivestock. Taken astep further, how-ever, researchersnow are able totake a gene from asoy plant and in-s'ert it into a complant. "We'rereaching fartherinto the geneticblueprint ofplants," Jessensays. "If there isgreat disease re­sistance in a soyplant, in the pastyou couldn't crossit with com. Now,we can find thegene, excise it, andinsert it into com."

ThroughoutGreater Minneso-ta, Syngenta Seedsand other firmshave found theworkforce theyneed to drive theirbusinesses. Theyare receivingstrong support

-nesota Job Skills Partnership, whichhelps fund custom-training programsfor Minnesota companies. Many

_rairie Holdings employeeS will, receive such training in biology,

microbiology, iIIlmllnology? ph~rma­cology, sales, and marketing throughMinnesota West Community andTechnical College. Matt Kramer,commissioner of the MinnesotaDepartment of Employment andEconomic Development and chair ofthe Job Skills Partnership, says that thecourses are expected to lead to thecreation of at least 30 more jobs overa three-year period.

Southwest Minnesota is hardly theonly location of growth in biotechnolo­gy; nearly all regions of the state are see­ing some activity. In the southeasternsection of the state, Syngenta Seeds isbreeding plants on a 450-acre farm inStanton.The company, which is based inSwitzerland and has operations in morethan 90 countries as well as a regionalleadquarters in Golden Valley, Min­

nesota, invests nearly $2 million a dayin research and development to pro­duce high-yield seeds and crop protec­tion products to farmers around theworld. Using biotechnology to geneti­cally modify plants to increase theirnutritional and industrial value, as wellas their ability to resist disease, someof the company's work in developingnew com hybrids takes place in Min­nesota. "Com breeding has been oneof the great success stories you neverhear about," says David Jessen, one ofthe individuals in charge of new traitdevelopment for Syngenta. "We'vebeen increasing the yield 1 percent to1.5 percent a year due to genetics. Thecorn hybrid we sell today is, on aver­age, 10 percent better than the one wesold five to seven years ago."

Using technology much like DNAingerprinting, the company identifies

the genetic fingerprints of plants. "Wecan zero in on the chromosome thatresists a disease and choose from theprogeny the ones that have the goodgenes," Jessen says. "We're usingmolecular markers and transferring a

PHOTOGRAPH BY BRIAN F. KORTHALS MNBIO 2004 17MB

t was a natural fit. If anytwo entities could lift thebiotechnology industry inMinnesota to greaterheights, they would be the

University of Minnesota andRochester-based Mayo Clinic. In2003, the University and Mayo an­nounced what could well be themost powerful collaborative effort inMinnesota - the MinnesotaPartnership for Biotechnology andMedical Genomics-one whose aimis to fuel discoveries that will bringnew products to market, create more

jobs, and give birth to a number ofbusinesses.

It's an aggressive set of goals,but one that industry experts andgovernment officials fully expect thepartnership to achieve. And why not,given the strengths each entitybrings to the table? Ranked as twoof the top research institutions in thecountry, the University and Mayotogether manage more than $700million in major research projectsand have invested almost $500 mil­lion in their biotechnology and med­ical genomics programs.

"The Minnesota Partnershipfor Biotechnology and MedicalGenomics is an important model forMinnesota's biotech future," saysU of M President Robert Bruininks."The partnership will leverage thedistinctive research strengths of theUniversity and Mayo Clinic to cre­ate knowledge that will promotehuman health. The collaboration,which is still in its early phases, holdsgreat potential for harnessing newcures and treatments, and for bol­stering Minnesota's leadership in theglobal, knowledge-based economy."

18MB MNBIO 2004 PHOTOGRAPH BY CRAIG BARES

The University of Minnesota's Mark Paller (left) and Frank Cerra say thatmany of the research projects the University of Minnesota will be con­ducting in partnership with Mayo Clinic will focus on genomics.

Dr. Frank Cerra, the University'ssenior vice president for health sci­ences and professor of surgery, saysthat the partnership demonstrates"the commitment of these two re­search institutions to develop newhealth technology and move it intocommercialization." That process, heays, "Represents part of the core mis­on of these two institutions, lever­

ages their complementary strengths,and provides leadership to the healthcluster while supporting the economicdevelopment of the state."

Mayo will bring to the partnership

its medical research capacity, largepatient base, and more than 4 millionelectronic patient medical records.Combining those capabilities with acomplementary set of University re­sources, including the U's strong andvaried research programs and abilityto interpret data, is expected to resultin greater precision in diagnostics andmore effective treatments for a hostof diseases.

"Many of the research projects willfocus on genomics because that iswhere we all see much of the poten­tial," says Mark Paller, assistant vicepresident for research at the Universi­ty's Academic Health Center. "Thepartnership focuses on developingnew diagnoses and cures for healthproblems. Much of the new science­the big science-involves genomics, sothere is a heavy emphasis on that."

Genomics is the study of how a per­son's genes-25,000 to 30,000 in eachof us-interact with each other andwith the environment. By studyingthose genes, researchers will be able to

personalize medical care by basingtreatment for diseases on a person'sspecific genetic makeup.

Using depression as an example,rather than trying several differentdrugs in an effort to find the one thatis most effective for a particular pa­tient, physicians will be able to predictthe success of a treatment in advanceand avoid the trial and error phase of

drug therapies."Most of our genomics research at

Mayo is directed at trying to corrobo­rate changes in gene structure andfunction," says Dr. Eric Wieben, direc­tor of Mayo's Genomics ResearchCenter and project director of thepartnership. Mayo Clinic, which has astaff of 26,000, including almost 1,600physicians and scientists, has investedmore than $150 million in genomicsresearch and has made important dis­coveries that have led to life-savingchanges for patients.

The University of Minnesota Acad­emic Health Center's seven schoolsand colleges are home to more than1,400 researchers who account formore than $260 million in annualinvestments in research.

During 2002, the University gener­ated 43 U.S. patents and engenderedsix start-up companies. It also collect­ed $26.5 million in gross revenues,much of it from patent-licensingagreements. In addition, the U ishome to the Stem Cell Institute, which

under the direction of Dr. CatherineVerfaillie is conducting pioneeringwork in adult stem cell research in anattempt to teach stem cells to "differ­entiate" themselves into heart, liver,pancreas, brain, and other cells thatmake up the body's organs. The workbeing done there already is beginningto advance treatments and cures forsuch diseases as diabetes, Alzheimer's,

MNBIO 2004 19MB

and Parkinson's, as well as for strokes.Phase one of the partnership

involved a legislative allocation of$2 million from the state, which wasmatched with $1 million from Mayoand an additional $1 million from theUniversity to fund four collaborativeresearch projects that will focus oncardiovascular disease, prostate can­cer,Alzheimer's, and obesity.

Research ideas clearly outnumberavailable funds, however. The partner­ship received 34 initial requests forfunding for proposed projects thatwould collectively have involved 121Mayo researchers and 128 Universityresearchers representing 12 colleges.

"The University of Minnesota andMayo Clinic will be doing all they canto identify other sources of dollars,"says GOP State Representative LynneOsterman of New Hope. Osterman isoptimistic that the research generatedthrough the new partnership willattract additional funding; two poten-

tial sources are the National Institutesof Health and the National ScienceFoundation.

The anticipated return on the part­nership's funding is substantial. A re­cent study conducted by Pittsburgh­based 'fripp Umbach HealthcareConsulting concluded that the part­nership - if it receives a proposed$70 million in funding from the stateover a five-year period-could resultin 6,600 net new direct and indirectjobs in Minnesota and have an annualeconomic impact of $511 million by2015. By 2020 and beyond, those fig­ures could reach 11,400 new jobs andan economic impact of $885 million,the study indicates.

These projections represent astrong incentive for supporting thenew partnership. They have leadGovernor Tim Pawlenty and a largeand enthusiastic confederation ofgovernment officials, venture capital­ists, researchers, academicians, and

business and community leaders to adetermination to do whatever it takesto ensure that the state nurtures theresearch that will drive the biotechnol­ogy industry within the state.

"It's gratifying to have a governorwho appreciates the potential valueof this type of science, to see him IIIembrace biosciences as one of hismajor initiatives," Wieben says. "Thekey to success in biotechnology andgenomics is to pick a focus area andput your efforts into being the best inthat area, such as genetic structure andfunction, disease, and response totreatment. That race is just beginning.Because of the complementarystrengths [of Mayo and the U] and ourprevious investments, we're very com­petitive already, and with supportfrom the state, we can become aleader. There is tremendous potentialgoing forward." •

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SUSAN STAFFORDNew Uses for the Oldest Resource

In the fall of 2002, Susan Staffordwas named dean of the University ofMinnesota's College of Natural

esources, which operates one of thefemier natural resources education­

al programs in the country. Morerecently, she sought and obtainedapproval from the University'sBoard of Regents to change thename of one of the college's depart­ments from Wood and Paper Science

iotechnology com­bines biology andtechnology to devel­op products thatimprove human and

animal health, increase agricultural

Itields, and use renewable resourcesC 1 the production of products ranging

. rom fabrics to fuels.The science of biotechnology is

often fascinating-and so are manyof the individuals behind the impres­sive strides being made in the biotechindustry today. They include peopleworking quietly to help biotech start­up companies succeed, to improveeducational programs, and toexpand well-established companies.Working together, they are helpingto drive the biotechnology industryin Minnesota.

company to treat diseases of the eye."That product, a drug-coated coil

placed in the back of the eye, wouldtreat diseases such as age-relatedmacular degeneration and diabeticretinapathy. Current treatment forthose diseases often includes injectionsinto the eye, a painful procedure thatmany patients dread.

SurModics, which has 60 licensedcustomers for its technologies, is aMinnesota success story that manyhope will be repeated-and repeatedoften-during the coming years. Itsstory was exciting enough to enticeBarclay to leave a medical device firmin California and take over the compa­ny's reins. "The more I learned aboutthe opportunity at SurModics, themore interested I became," says Bar­clay, who has worked in the healthcare industry for more than 20 yearsand is a registered patent attorney aswell. "I am very happy to be here."

DORIS TAYLORSeeking "Major Impact"

Doris Taylor, Ph.D., has also found ahome in Minnesota. Heavily recruite~ )Jby other universities, she accept­ed the University of Minnesota'sappointment to the MedtronicBakken Chair in CardiovascularRepair. She left a position at theDuke University Medical Centerto move to Minnesota in mid­December.

Taylor, who currently co-chairsthe International Society forHeart and Lung TransplantationCell Therapy Tissue EngineeringCouncil, is a leader in the field ofcell and gene therapies, whereshe focuses on using stem cellsto treat cardiovascular disease."What I'm trying to do is repairthe damage that occurs in theheart after a heart attack byusing cells from your own bodyand transplanting them to aregion of the heart so they canactually begin to repair the dam­age," she says. "Stem cells aresimple cells that know how tokeep making more of themselves,and they know how to becomeother kinds of cells as well. A

want to use natu­ral resources inthe way we'relooking at usingthem-couplingagriculture andwood fibers-it's sort of theultimate recy­cling. You can'tgo to Californiaor the East Coastand do that. ThisIS anew areathat, we think,complements thestate's strongcontributions inmedical devicesand pharmaceu­ticals. We're inthe infancystage. We don'twant to be chas­ing after people.

We want to be leaders."

Bruce Barclay recently moved fromCalifornia to Minnesota to becomepresident and chief operating officerof SurModics, Inc., an Eden Prairiecompany that provides surfacemodification and drug deliverycapabilities for medical device andhealth care products.

What does that mean? Here's anexample: Working with Cordis Corpo­ration, a subsidiary of Johnson &Johnson, SurModics developed theCypher Sirolimus-eluting CoronaryStent, which resembles a wire meshtube that is inserted into heart patientswho have had angioplasties. The stentis coated with polymer, which in turnis coated with a drug that keeps thecoronary artery open. "Clinical trialshave shown it is two to three timesmore effective [than a traditionalstent] in preventing the reclosure ofblocked coronary arteries," Barclaysays. "It has had a wonderful recep­tion. More than 750,000 patients havebeen treated with this product. We'retaking a similar technology in terms ofthe polymer and working with another

BRUCE BARCLAYProducts that Heal

to Bio-Based Products. "We felt thename was too narrow for the scope ofwork the department and collegeneeds to do to meet the needs of thefuture," Stafford says. "We're the firstsuch department in the nation, andwe're changing the world of wood andforest products."

Minnesota, she adds, has thepotential to be a leader in using thoseresources to create new, environmen­tally friendly products, such asbiodegradable plastics and woodproducts made from corn and wheatstalks. "We've been successful in usingsome agricultural fiber to augment thewood supply in the production of pa­per," Stafford says. "We can also use itin fuel, energy, and plastics. This is veryimportant in Minnesota, particularlybecause the University has had a lega­cy of a very strong wood productsindustry. We will continue that, but werealize the wood fiber supply mightnot be as plentiful in the future."

The state's diverse woodlands andland used for agricultural purposesmake Minnesota a natural place fordeveloping and producing bio-basedproducts. "If you're going to justfocus on more traditional things likepharmaceuticals, that can be doneanywhere," Stafford says. "But, if you

2211\11B MNBIO 2004

i.tem cell from your bone marrow~ight also know how to become bone

or muscle. If it gets the right signal, itcan become like the cells around it."

Taylor sees great potential in someprocesses at the University of Min­nesota that will allow researchers andclinicians to find and test treatmentsand to move them toward clinical ap­plications. "The University of Min­nesota has all the pieces in place toreally let us move from ideas to treat­ing patients," Taylor says. "It is clearthere is a commitment at a high levelto treating cardiovascular disease, totaking care of patients, and to devel­oping the best new therapies."

The research Taylor is conductinghas the potential to drastically changethe lives of many of the 62 millionpeople in the United States who sufferfrom cardiovascular disease. "It's the

(eading cause of death in the Western

World," she says. "Ifwe can prevent andtreat this, it will havea major impact onthe quality of life forthose people. I'vebeen focused on thissince 1991. We'regetting close."

PAT DILLONFinding Capital,GrowingCompanies

Although Pat Dillonworks behind thescenes, she is a criti­cal link in the suc­cess of many of thebiotechnology start­ups in Minnesota. Asexecutive director ofMinneapolis-basedMinnesota ProjectInnovation, she helps technology­based companies get access to capitalthrough contracts and grants. "It's an­other source of funding research anddevelopment and for them to taketheir ideas from the lab to the market­place," Dillon says.

Minnesota Project Innovation ispart of a national network of 27organizations that compete for fund­ing from a variety of federal sources,including the National Institutes ofHealth, the Department of Agricul­ture, and NASA. That money comesthrough the Small Business InnovativeResource Program (SBIR), a federalprogram that supports small business­es by providing $100 million in annualfunding.

"Minnesota ranks fifteenth or six­teenth in the nation for SBIR fund­ing," Dillon says. "In 2003, $22 millionwent to Minnesota companies for re­search and development. Since 1982,when we started, more than $250 mil­lion has come to the state and that has

created several public and numerousprivate companies,plus 1,000 to 1,500jobs."

Getting access to SBIR money canbe more than a little daunting. That'swhere Dillon and her staff come in.They mentor small-business ownersand provide a strong network of pro­fessionals who help them navigatethrough the application process to suc­cessfully get the money they need tomove forward. "We're in the businessof changing lives, making a difference,and helping people realize the Ameri­can dream," says Dillon, who in 1999received the Small Business Adminis­tration's Tibbetts Award for her workwith the SBIR program. "As a nation,we have to look at how we are plant­ing the seeds for tomorrow. Where arethe companies that will provide thejobs for tomorrow?" Dillon is workingto ensure that many of those compa­nies will be in Minnesota. •

- Vicki Stavig

MNBIO 2004 23MB

A consensus emerges: Minnesota is a

state where biotechnology can prosper.

than 100 companies into public mar­kets in the past 10 years. Moreover,Minnesota routinely ranks among thetop 10 states in venture capital invest­ment and the formation of venturecapital pools.

Education? More than 90 percent q)all Minnesotans can attain at least twoyears of public, post-secondary educa­tion within a reasonable commutefrom their homes. And Minnesota'sschools, especially it's technical col­leges, are eager to provide custom

helped companies in an array of otherindustries to prosper in Minnesota­including access to capital, access toeducation, easy access to markets, asuperior workforce, and a wealth ofbusiness expertise.

Consider the capital markets. Min­nesota companies, through Minnesotafinancial institutions, have access toequity financing as great as anyone inthe world. The state's commercialbanks are active lenders, and its in­vestment banks have brought more

____::-------------r---------------,-----------~----~-

oes Minnesotahave what it takesto be a leadingstate in biotechnol­ogy? There isagreement- no,

not unanimity, but consensus-amongbusiness operators, investors, govern­ment officials, and educators that thequestion can be answered with oneword: Yes.

Biotechnology companies benefitfrom many of the conditions that have

24MB MNBIO 2004 PHOTOGRAPH BY CRAIG BARES

25MBMNBIO 2004

types of product~;'"The recently

between theClinic, both 0

top institutionsresearch funding, inet that is drawingbiotechnologycompanies toMinnesota: "Thatpartnership putsus up therewith Harvard,Stanford, andMIT," Paller says."For academi­cians thinkingabout locating,relocating, orstarting newcompanies, Min­I),esota will behard to ignore."

If anythingspeaks to thestrength ofMinnesota, it isthe success ofbiotech compa­nies such asMGI Pharma, a230-employeebiopharmaceuti­cal companybased in Bloom­ington. The com­pany, which wentpublic in 1983,acquires technol­ogy and develop­mental stageproducts, getsthem through theFDA approvalprocess, andbrings them to

will change. There will

devices that will include

PHOTOGRAPH (RIGHT) BY THOMAS STRAND STUDIO

courses addressing the specific needsof employers in their communities.

Highways, waterways, railways, andair-travel routes provide companieswith outstanding access to customersand suppliers throughout North Amer­ica and overseas. The high schoolgraduation rate routinely is higherthan anywhere else in the UnitedStates, and the percentage of Min­nesotans with college degrees is thehighest in the Midwest. The state ishome to thousands of companies thatsupport other businesses, includingadvertising agencies, marketing firms,and law firms and accounting compa­nies with practices aimed at helping

~mpaniesgrow faster.• Findings of a study conducted by

the Milken Institute in Santa Monica,California, and released in early April,support the view that Minnesota canindeed be a leader in biotechnology.Researchers ranked Minnesota eighthamong the 50 states in the strength ofits science and technology and secondin technology education and training.Are there areas that need to bestrengthened? Yes, but the essentialingredients are in place.

A key strength is Minnesota's med­ical devices industry, which has pro­duced such giants as St. Jude Medicaland Medtronic-and literally hun­dreds of smaller companies. As thatindustry evolves, it will bring with itnew devices that will involve biotech­nology. "The medical device industrywill change," says Mark Paller, assis-

nt vice president for research at theniversity of Minnesota's Academic

Health Center and a professor of med­icine at the U. "There will be hybriddevices that will include cells. It will bea different world. We have the abilityto be a world leader in those new

"The medical device

in cancer patients undergoingchemotherapy.

MOl Pharma recently launched anew product-Aloxi-that preventsvomiting and nausea in chemotherapypatients. "This product will allow us tobecome profitable later this year," saysCEO Lonnie Moulder. "There aremore than 1,500 biotech companies inthe United States. About 350 are pub­licly traded, and only about a dozenare actually profitable. We will be­come one of them."

MOl Pharma is a role model forother biotechnology companies thatare hoping to grow in Minnesota­and they are plentiful. "In 2000 and2001, Minnesota ranked number onenationally in the number of start-ups,"says Tony Strauss, acting assistant vicepresident of the University of Min­nesota Office of Patents and Technol­ogy Marketing. "We're down sincethen, but I wouldn't read too much in­to that. It might reflect the overalleconomy. These things go in cycles,

and I expect those numbers to be upsomewhat this year."

An important ingredient in the mixis the roster of well-established com­panies that have either started in Min­nesota or expanded into the state.Cargill, the food, agriculture, and in­dustrial giant with operations in 60countries, is increasingly turning tobiotechnology to drive its business.The company is focusing on threespecific areas-animal, plant, and mi­crobial and enzyme biotechnology­in its attempts to improve foodproducts and reduce reliance onnon-renewable resources.

In 1997, Cargill joined forces withDow to create Cargill Dow, a jointventure based in Minnetonka thatuses carbon found in simple plantsugars to make a fiber now being usedin comforters, packaging, and otherproducts. "We have not had any trou­ble recruiting good people-and weare very selective," says DougCameron, director of biotechnology

for Cargill's Biotechnology Develop­ment Center. It is people like those atCargill, he adds, who will help moveMinnesota into a leadership positionin biotechnology. "What I see as a realstrength is the fusion of a lot of differ­ent fields," he says. "We have a verystrong food and nutrition center,medical devices, computer and infor­mation technology, and medicalbiotechnology. I think there's a realopportunity for Minnesota to carvea niche where fusion of those disci­plines can take place. The boundariesbetween these fields are getting fuzzi­er and fuzzier."

Protein Design Labs is a companywith headquarters in California thatrecently expanded its operations intoMinnesota-something industry lead­ers in Minnesota would like to seedevelop as a trend. Protein DesignLabs develops humanized antibodiesto prevent or treat a variety of dis­eases, including cancer, ulcerativecolitis, asthma, rheumatoid arthritis,

UNIVERSITY OF MINNESOTAThe Minnesota Advantage.

26MB MNBIO 2004

27MB

- Vicki Stavig

tunity. Bioscience can be a very power­ful growth engine for the state and, asinvestors, we are putting money in tohelp to grow it."

Peter McNerney is a managing part­ner at the Minneapolis-based ThomasMcNerney & Partners, a venture­capital firm that focuses heavily onmedical technology. He agrees thatbiotechnology represents substantialopportunities for investors. "Minneso­ta is a very key area for us," McNerneysays. "We've been very active here."

McNerney adds that while theUniversity and Mayo both have good,strong science, "A successful invest­ment, however, involves more thanjust the science; you also need capitaland people. We clearly have peoplehere who understand the industry, .which is a big advantage. We also havea culture of supporting early-stagecompanies. There are several reasonsto be optimistic." •

....~.mededgeinternational.com

JU 23-25, 2004NEAPOLlSi CONVENTION CENTERINNEAPOLlS, MINNESOTA U.S.A.

MNBIO 2004

been bringing together Minnesota's innovalive health care and medical technology industry.When industry leaders come logether, more greal ideas are born. {onneel with the best.

Visil us 01 ~f\fV!,.llle(li«~lalley.(.rg

& Johnson-and an active MNBIOmember- D'Agostino is optimisticabout the direction Minnesota is tak­ing in support of biotechnology. "It'swonderful to see the momentum," shesays. "Minnesota has a great coreeducation system and employee net­work. The key now is getting venturecapitalists to see it as attractive."

Fortunately, Minnesota is home toseveral venture capital firms that fo­cus on biotechnology, including PiperJaffray Ventures in Minneapolis, awholly-owned subsidiary of PiperJaffray, which manages four healthcare funds with approximately $275million in total capital. "In the early'90s, we were primarily focused­about 79 percent-on medical devicesand medical technology," says BuzzBenson, managing director of PiperJaffray Ventures. "When looking atwhat has happened in the whole indus­try, there has been a convergencebetween biotechnology and medicaldevices: bioscience. It's a huge oppor-

and Crohn's disease. The companyopened a manufacturing facility in theMinneapolis suburb of Plymouth in1992, and it is now constructing a new$190 million facility in Brooklyn Park.

"We could have gone anywhere, butwe made a very conscious decision to

,.ay in Minnesota," says Brettchmidli, senior vice president of

technical operations for the company."The primary reason was the qualityof the workforce. We were able toattract and retain the right peopleand had built a very strong workforcehere. We are growing at 50 to 100people per year, and I would expectthat rate to continue for the nextcouple of years."

Johnson & Johnson, the globalmanufacturer of health care products,also has found a home in Minnesotafor some of its operations. The com­pany has nearly 300 employees inMinnesota, including SharonD'Agostino. As region director ofstate government affairs for Johnson

Dear Readers:

ple:asc:d to introduce the first edition of MINNESOTA BIOSCIENCES. Twin CitiesBusiness Monthly, MNBIO's partner in this magazine, has assembled a unique mix of informa­tion to showcase Minnesota's bioscience strengths not only locally but globally. You'll beamazed at the talent of Minnesota's industry leaders and university professionals. You'll bestunned by Minnesota's developing technology affecting virtually every other Minnesota indus-

You'll be compelled to support bioscience friendly legislation. You'll begin to understandthe implications of bioscience as an economic development strategy.

In one respect, this magazine is the culmination of years of hard work and dedication of Min­nesota's best in bioscience. Our thanks go out to MNBIO's Board of Directors, the UniversityofMinnesota and anchor companies like Cargill and Medtronic. They have worked diligently toSee this industry out of sleepy times to positioning Minnesota asa bioscience powerhouse. Alsonoteworthy is the leadership of Governor Tim Pawlenty and the State Legishlture. Their recenttenacity has helped propel industry growth and lay the ground work for a long, bright, economi­cally rewarding future.

Additionally, this publication will begin to document Minnesota's biosCience story. From Crook­ston to Worthington, from Rochester to St. Paul, Minnesota's opportunities in biosciences areendless; Whether we're improving human health throllghpharmaceutical and medical break­thrgughs, finding alternative energy sources to improyeourenvironment or meeting society'sdemands for increased crop yields, Minnesota is well positioned to lead the way.

While we've seen legislators and other public officials embrace initiatives that support bio­sciences, it's imperative that our understanding co~tin.~e to deepen and our policies reflect ourinterest in making the growth of this industry a key economic development strategy.

We've come a long way. But indeed, we believe the best is yet to come.

Having saidall this, we hope you find this magazine useful, enlightening and incredibly informa­tive. We look forward to subsequent issues that continue to tell perhaps the most amazing storyofthe century.

Raymond FrostExecutive DirectorMNBIO

Sincerely,

Douglas Astry () /},4--'---President 7~MNBIOGeneral ManagerDiagnostics and Drug DiscoverySurModics, Inc.

26 E.Exchange St.,Fifth Floor,St.Paul,MN 55101-2264Phone 651-265-7840, Fax 651-290-2266

www.mnbio.org

28MB MNBIO 2004

When it comes to life sciences there are countless intricate details - both in your product and in the way

you run your business. You need a legal partner who speaks your language. For almost four decades,

Lindquist & Vennum has been instrumental in fostering growth in the life sciences and health care indus-

tries. Our clients include leaders in medical device manufacturing, biotech, pharmaceutical manufacturing,

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of life, you must demand industry-wise legal counsel. Don't risk the health of your organization - partner

with a law firm that knows the ins and outs of what you do. For more information, check our

website at www.lindquist.com.

LINDQUISTWn-eff/Y CU/ ff.,ee4 1</~ eY'"

1Jmfitil~il~~(I. with abundantindustrial

innesota isiifgnculturaliresourcesbiotec1)nology firms.

••

* Sales for Minnesota headquarters or Minnesota-based operationsSource: Corporate Report Factbook 2003

Dun & Bradstreet. company annual reports.

CompanyCargillCenex Harvest States Oilseed ProcessingEcolabLand O'[akes Agricultural ServicesH. B. Fuller

III Minnesota's Agricultural and Industrial Biotechnology industriessupply a diverse range of products that include:~ Agricultural chemicals (Cargill Inc., Cenex Harvest States)~ Specialty cleaning and sanitation preparations (Ecolab)~ Sanitary products (H.B. Fuller)~ Prepared feed and feed ingredients (Land O'Lakes

Agricultural Services, Archer Daniels Midland, Cargill Inc.)~ Crop services (Land O'Lakes Agricultural Services,

Syngenta Seeds, Cenex Harvest States)~ Biofuels (Cargill Dow LLC, Miuuesota Corn

Producers - ADM)~ Biopesticides (Syngenta)~ Soybean processing (ADM, Cenex Harvest States, Ag

Processing Iuc.)~ Plant biopolymers/flbers (Cargill Dow)~ Industrial lubricants (Cargill Inc.)

Top Agricultural and IndustrialBiotechnology Companies in Minnesota

Annual Sales'(millions)$59,894

4,5003,4042,8531,256

III Cargill Dow LLC manufactures biodegradable packaging andfibers using corn starch and a special fermentation process thatrequires 20 to 50 percent less fossil resources. CEO RandyHoward was named to the 2002 Scientific American 50, a list ofvisionary contributors to science and technology.

III Minnesota Corn Processors is the second largest domesticproducer of ethanol, and merged with Archer Daniels Midland in2002.

III Land O'Lakes provides farmers with:~ Genetically engineered seeds through its seed company

Croplan Genetics that produce higher yields through cropinputs and agricultural services.

~ Specialty corn products for animal feeds and consumer foodmarkets developed in conjunction with Novartis Seeds.

III Using a solvent process, Cenex Harvest States manufacturessoy products including edible refined oil, ink, flour, soy meal,fatty acids and lecithin. In 2003, Cenex Harvest States opened itssecond soybean crushing facility in Fairmont, Minnesota.

III Ecolab operates in 40 countries worldwide and manufacturesproducts such as cleaners and hand sanitizers.

III H.B. Fuller has developed water-based adhesives and non-wovenhygienic technology used in the fabrication of diapers, adultincontinence devices, feminine and disposable medical products.

III In 2003, Minnesota Soybean Processors built a new soybeanprocessing plant in Brewster, Minnesota and announced theaddition of a biodiesel refmery.

III A project of Positively Minnesota, the Department of Agricultureand the University of Minnesota's Department of Wood andPaper Science, the Minnesota Biofiber Consortium bringstogether leaders of industry, research and agriculture to promoteagricultural crops and residues as industrial feedstocks.

III In Minnesota there are:~ About 1,700 agricultural and food scientists and technicians,

and 2,300 chemist and chemical technicians.~ About 350 chemistry and more than 130 chemical

engineering degrees were awarded in Minnesota in 2002.

III Minneapolis-St. Paul is among the top ten most knowledgecompetitive regions in the world, according Robert HugginsAssociates, a British research firm. Rankings take into accountindicators such as the number of IT, biotechnology andengineering employees per 1,000 inhabitants, and the number ofpatents registered per million people.

According to research done at the University of Minnesota in2003, Minnesota farmers are producing engineered seed cropsvalued at $2.2 billion annually.

III Examples of seed research include wheat and potato fungalresistance at the University of Minnesota and sugar beetherbicide tolerance at BetaSeed of Shakopee, Minnesota.

UniversityofMinnesota:

ExceptionalChemistry,AgriculturalandVeterinaryStudies

~ The University's College of Agricultural, Foodand Environmental Science, one of the top fivecolleges of agriculture in the world, enhancesagricultural systems through plant genetics andbiocontrol of weeds.

~ Studies at the University's Colleges of VeterinaryMedicine and Molecular Veterinary Bioscience,include genomics, molecular biology, andcomparative medicine.

~ The Chemical Engineering program is rankedsecond by the National Research Council andeach year confers about 210 graduate andundergraduate degrees.

~ The $20 million Cargill Building for Microbialand Plant Genomics provides a hub for 175researchers in the genomics of microbes andcrop plants. The building opened in 2003.

use applications develqpeq by the medicqlMinnesota's medicaltechno[ogy inqustry

de for being at the forefront ofii"r1nqyation.

Outstanding >opportunitiesforcollaboration >

CompanyMedtronic, Inc.Guidant Corp.3M - Health CareBoston Scientific, Inc.Sf. JudI?- Medical, Inc.

'" NAlCS 334510, 334517 and 339111-339115.

Source: U.S. Department of Labor, Burean of Labor Statistics, Quarterly Census ofEmployment and Wages (ES-202).

United StatesMinnesota

CD 30OJcC\l

.s:::()

20+"cCD~CD 0CL

Employment Growth inMedical Technology Industries*, 1993-2003

40%

II Minnesota's medical technology industry employment:>- Increased 36 percent between 1993 and 2003 to over 22,700

people.>- Had a concentration of employment over three times the nation's.>- Ranks second only to California in the medical device

industry.

II A number of medical technology companies appeared on theprestigious 2004 Fast 500 prepared by Deloitte and Touche.>- Optical Sensors, Inc. revenues grew more than 1,400

and Vascular Solutions, Inc. more than 700 percent overyears.

>- Possis Medical revenues grew over 330 percent over five years.

II Synovis Life Technologies, ASV, and Possis Medical were amongFortune magazine's 100 Fastest-Growing Companies for 2004.

II Minnesota companies and research institutions have been first indeveloping many important medical devices:>- Implantable cardiac pacemaker.>- Artificial heart valves.>- Implantable drug transfusion pump.>- Anesthesia monitor.>- Blood pumps.>- Artificial urinary sphincter.>- In-the-ear hearing aid.>- Wireless cardiac monitoring system.

II Minnesota medical technology companies have been involved innumerous mergers and acquisitions.>- Medtronic, Inc. announced the acquisition of four companies

in 2002, including California-based MiniMed and MedicalResearch Group, Inc. (MRG). Medtronic made acquisitionstotaling nearly $13.9 billion between 1996 and 2002.

>- Since 2002, ev3, Inc. has acquired Appriva Medical, Inc.California and Minnesota's Intra Therapeutics.

>- Medsource Technologies acquired Cycam, Inc. ofPennsylvania, while American Medical Systems acquiredCalifornia-based CryoGen, Inc. in 2002.

Mayo Clinic: world's best known health carefacility also collaborates with health care andmedical technology companies.Industrial Partnership for Research inInterfacial and Materials Engineering(IPRIME): Facilitates the use of University ofMinnesota equipment and staff for its members,which include businesses such as Medtronic,SurModics, and 3M (www.iprime.umn.edu).

> The University of Minnesota's BiomedicalEngineering Institute combines engineering andhealth sciences to create new medical devices.

Top Medical TechnologyManufacturers Operating in Minnesota

Annual Sales'(millions)

$7,6653,2402,5601,7091,589

* Sales for Minnesota headquarters or Minnesota-based operationsSource: Corporate Report Factbook 2003

Dun & Bradstreet, company annual reports,

II Minnesota's medical technology industries supply a diverserange of products that include:>- Cardiovascular technologies such as heart valves,

pacemakers, defibrillators and stents (Medtronic; St. JudeMedical; Guidant Corp; Boston Scientific, Inc.).

>- Catheter technologies (Medtronic; St. Jude Medical;Boston Scientific, Inc.; DeUec, Inc.).

>- Drug delivery systems (3M; Cima Labs, Inc.; Medtronic;DeUec, Inc.).

>- Dialysis products (Minntech).>- Impotence products (American Medical Systems).>- Electrotherapy (Medtronic; St. Jude Medical; Compex

Technologies, Inc.; Empi Inc.).>- Spinal implants (Sulzer Spine-Tech).>- Warming products for hypothermia (Arizant, Inc.).>- Hearing aids (Starkey Laboratories; Miracle Ear).>- Eyewear lenses (BMC Industries; Soderberg Opthalmic

Services).>- Medical device contract manufacturing (ev3, Inc.; Lake

Region Manufacturing; Medsource Technologies;Surgical Technologies).

>- Drug-eluting coating process for medical devices (SurModics).>- Drug-coated stents (Boston Scientific, Inc.; Guidant Corp;

Medtronic (under development).

II There are 545 FDA approved medical device establishmentscurrently in Minnesota.

II About 2,700 medical device related patents were registered toMinnesota companies between 1999 and 2003.

II According to the Milken Institute, Minnesota has the nation'shighest number of investigational medical devices and FDA pre­market approvals of medical devices per 100,000 residents.

's pharnuJceuticallnc.fllStl7Y is vibrantgrowing.

III Minnesota's pharmaceutical industry supplies a diverse range ofproducts that include:>- Cardiology (Upsher-Smith, 3M, Solvay Pharmaceuticals)>- Oncology-related pharmaceuticals (MGI Pharma)>- Dermatology (Upsher-Smith, 3M)>- Gastroenterology, mental health (Solvay Pharmaceuticals)>- Immune system enhancing compounds

(Biopolymer Engineering Inc)>- Women's health (3M, Solvay Pharmaceuticals)>- Orally disintegrating dosage forms and contract

pharmaceutical manufacturing (CIMA LABS)>- Bioequivalent generic pharmaceuticals (Paddock

Laboratories, Upsher-Smith)>- Animal health drugs (Intervet, Newport Laboratories)

Minnesota Employment in thePharmaceuticals Industry*, 2003

Medicinal and Botanical,and Other

Biological ProductManufacturing 9.1 %

PharmaceuticalPreparation

Manufacturing 54.2%

" NAICS 3254

Source: U.S Department of Labor, Bureau of Labor Statistics, Quarterly Ceusus ofEmployment aud Wages (ES-202).

Company3M Pharmaceuticals Inc.Biopolymer Engineering Inc.Solvay Pharmaceuticals Inc.Upsher-Smith LaboratoriesCIMA LABS Inc.

Top Pharmaceutical ManufacturersOperating in Minnesota

Annual Sales'(millions)$1,000

65045017777

*' Sales for Minnesota headquarters or Minnesota-based operationsSource: Corporate Report Factbook 2003

Dun & Bradstreet. company annual reports.

III Minnesota is home to about 10,700 pharmacists and pharmacytechnicians, as well as 2,300 chemists and chemical technicians.

Twenty-nine Minnesota establishments have prescription andover-the-counter drugs currently listed with the FDA.

III Between 1997 and 2001, Minnesota companies regisJered more than300 drug patents.

III Pharmaceutical companies operating in Minnesota are amongthe best in the nation.>- In 2003, 3M was listed among the top 50 pharmaceutiCal

companies by Pharmaceutical Executive, while Upsher­Smith was named one of the top 100 largest pharmaceuticalcompanies in 2001. Solvay Pharmaceuticals, another top50 pharmaceutical company, has a significant manufacturingfacility in Baudette, MN.

>- CIMA LABS, Inc. appeared on the prestigious 2004 Fast500 prepared by Deloitte and Touche with growth of morethan 460 percent over five years, and was listed as one ofFortune magazine's 100 Fastest-Growing companies in 2003

>- Biopolymer Engineering, Inc. engineers naturalcarbohydrates to enhance immune health. The company hasacquired more than 200 U.S. and international patents.

>- Scientists at 3M Pharmaceuticals research laboratories inSt. Paul developed synthetic molecules called ImmuneResponse Modifiers (IRMs) that have potential applicationsfor treating viruses and tumors.

Employment Growth in thePharmaceuticals Industry*, 1993~2003

Source: U.S. Department of Labor, Bureau of Labor Statistics, Quarterly Census ofEmployment and Wages (ES-202).

Minnesota enjoys an excellent quality of life:>- Minnesota has been rated among the top two "Most Livable"

states by Morgan Quitno Press for the past eight years.>- Minnesota was first in the nation for children's well-being

according to the 2004 Kids Count Databook.>- Home ownership rate was first in the country in 2003.

(])tJ)c(ij..coCQ)

E'Q)0..

NAICS 3254

Minnesota United States

Excellent »- The University of Minnesota's College ofresearch Pharmacy has programs in the Twin Cities andand Duluth, and confers degrees on more than1 00educational students each year in its professional program,institutions while about 375 chemistry degrees and almost

1,400 biological and life sciences degrees wereawarded in Minnesota in 2000.

Vanguard »- Nanocopeia, Inc., a startup company utilizingin research developed by U of M professor DavidResearch Pui and his colleagues, creates nanotechnology

devices for drug formulation, gene therapy andtissue regeneration.

»- One of U.S. News and World Report's 10 leadinginnovators for 2001, Dr. Catherine Verfaillie is thedirector of the Stem Cell Institute at the Universityof Minnesota.

Educated »- Minnesota's labor force participation rate of 72.1and percent was second highest in the country in 2003.motivated »- Ninth highest percent of population holdingworkforce: bachelors degrees among the states in 2003.

»- Second in the percentage of residents who arehigh school graduates or higher in 2003.

1Vllnm'!SOlra Ct'JmlFJantleS shine in the diVt1r.fi:p hum{j~n health

• Minnesota's human health microbiology industry supplies a diverserange of products that include:> Contract R&D laboratories (ATG Laboratories, ViroMed,

Apptec Laboratory Services)> Cell culture products (ViroMed, Apptec Laboratory Services)> Immunoassay testing (Beckman Coulter)> Cytokine-related reagents (R&D Systems)> Hematology controls and calibrators (R&D Systems)> Immunoassay and conjugate stablilizers (SurModics)> cGMP manufacturing services (Apptec Laboratory Services)> Occupational health testing (Medtox Scientific Inc.)

• Minnesota Partnership for Biotechnology and Medical Genomics:A Minnesota initiative leveraging the scientific leadership of theUniversity of Minnesota and the Mayo Clinic into a powerful researchcollaboration to position Minnesota as a world leader in biotechnologyand medical genomics. (www.mayouminnesotapartnership.org)

• About 1,600 biological and life sciences degrees were awarded inMinnesota in 2002.

• Minnesota is home to about 1,300 biological scientists andtechnicians, as well as more than 2,800 life scientists and otherscience technicians.

• Firms in Minnesota are exploring new advances in microbiolog*> R&D Systems-Techne Corp. manufactures purified cytokines

(proteins), antibodies, and assay kits as well as whole-bloodhematology controls and calibrators. The company has beenlisted among the Top 25 Medical Technology Companies as of2003 by The Business Journal.

> Beckman Coulter Inc. manufactures in vitro immunodiagnosticsystems for allergies, infectious diseases, immunology,hormones, and serum proteins.

> Protein Design Labs, Inc. has antibodies in clinicaldevelopment for autoimmune and inflammatory conditions,asthma and cancer.

" Sales for Minnesota headquat1ers or Minnesota-based operationsSource: Corporate Report Factbook 2003

Dun & Bradstreet, company annual reports.

CompanyR&D Systems - Techne Corp.Protein Design Labs, Inc.Medtox Scientific Inc.Viromed Laboratories - LabCorpApptec Laboratory Services

The University of Minnesota provides state-of­the-art imaging and advanced genetic analysisfacilities to companies through the "Biotech Mall"known as "Biodale".

>- Between 1998 and 2002, more than $300 millionwas invested in genomics and biotechnology atthe University of Minnesota.

>- The University of Minnesota has theBiotechnology Institute, Developmental BiologyCenter, Biomedical Engineering Institute, and theBiomedical Genomic Center. The Mayo Clinic hasthe Genomics Research Center.

Exceptional >­BiologicalResearchFacilities

Top Human Health MicrobiologyCompanies in Minnesota

Annual Sales'(millions)

$14580522516

.,..,1............. ' ..... 4-..1i~.::U.to::P 1I-C::U,.1.~b.-~~.

• Minnesota's 2003 Legislature createdthe Bioscience Zone. The zone,which will have two sub-zoneslocated near the University ofMinnesota and the Mayo Clinic, willprovide tax incentives to existing andstart-up bioscience companies(www.mnpro.com).

• The Minnesota Bioscience Council makesrecommendations to the Governor and Legislatureon economic development initiatives aimed atsupporting the growth of Minnesota's bioscienceindustry. The Bioscience Council is made upof bioscience industry leaders, University ofMinnesota and Mayo Clinic officials, venturecapitalists, and legislators, and is staffed by theDepartment of Employment and EconomicDevelopment (www.positivelyminnesota.com).

II Bioscience associations includeMNBIO (www.minnesotabiotech.org),the Society for Biomaterials(www.biomaterials.org), MedicalAlley (www.medicalalley.org),and Minnesota Technology (www.minne

sotatechnology.org).

~.

Department 01 Emptoyment

p SI. Vlltne"};;!;;1st National Bank Building332 Minnesota Street, Suite E200St. Paul, Minnesota 55101-9868 USA

BioscienceIndustry Specialist:Gene GoddardPhone: 651-296-7102gene.goddard@state.mn.us

Medical TechnologyIndustry Specialist:Patricia NeumanPhone: 651-297-1303patricia.neuman@state.mn.us

Toll Free: 1-800-657-3858TTY/TDD: 651-282-6142Fax: 651-296-1290www.deed.state.mn.us

BCD-006802/05·500

long tradition of creative research andbusiness innovation, Minnesota already is a leaderin several broad areas of the emergingbioscience sector: applied biologics, agriculturaland industrial biotechnology, and the life sciences.We have the intellectual leadership, the corporateleadership, the public leadership, the financial cap­ital, and the raw materials to ensure our pre-emi­nent position in the biosciences revolution. Thepieces are in place and our vision is clear as webuild Minnesota's biosciences future - a futurethat in many important ways is already here.

Minnesota is home to the world's leadingmedical technology cluster, anchored by suchhome grown industry giants as Medtronic,Guidant and St. Jude Medical.

The Mayo Clinic, the University of Minnesotaand 3M are world leaders in health sciences,genomics, biotechnology and bioscience.Minnesota research has spun out new firmslike Blizzard Genomics, Discovery Genomics,R&D Systems, Islet Technology and others.

Minnesota's top two research institutions, theUniversity of Minnesota and the Mayo Clinic,have announced their intention to form anew Minnesota Biotechnology and GenomicsCenter, and to unite their biomedicalresearch efforts to create new treatments fordisease and help launch biosciencesstartup cOlnpanies.

Cargill Dow - hailed by many as the "greenMicrosoft" - is emerging in Minnesota asa global leader in the bio-industry, usingagricultural products to manufactureplastics, biosynthetic fabrics, pad:agingmaterials and other extremely usefulproducts.

Cutting-edge research is being conducted byDr. Catherine Verfaillie at the Universityof Minnesota on adult stem celltechnology - the basic building block fora new generation of regenerative medicine.

In value-added food, nutritIOn and healthindustries, Minnesota's world leadership islong established through companies likeCargill, General Mills, Land O'Lakes andothers - all of which are now applying newbiological knowledge and processes totheir enterprises.

The Twin Cities rank first in the "WorldKnowledge Competitiveness Index" devisedby Robert Huggins Associates, a consultancyin the United Kingdom that evaluated300 regions around the globe on their abilityto create new goods and services and turnthem into economic value and wealth.

With $325.3 million in 2002, Minnesotaranked 14th in the country in venture capitalinvestments by capital amount, and firstamong the 12 Midwest states. We also had byfar the highest VC per capita ratio ($65)in the Midwest region, more than doublethat of second place Missouri ($30).

Minnesota ranks fifth in the nation as hometo Fortune 500 company headquarters.

the biosciences sector has thebecome a large, fast growing and diverse

component of Minnesota's economy. It can offera array of new businessopportunities and a host of well-paying occupationsover the entire range of education and experiencelevels. To encourage the continued developmentand growth of our emerging bioscience indulstJries,Governor Tim has challenged the state'sbusiness, academic and governmentleaders to collaborate in a bold andinitiative that places Minnesota firmly at theforefront of the global bioscience revolution.The initiative includes:

existing and buildingon our competItIve advantages, includingthe announced partnership betweenthe of Minnesota and theMayo Clinic to form a new MinnesotaBiotechnology and Genomics Center.

investment inentrepreneurs and

of Trade and Economic DleVlel()pm,entOffice of and Business Development500 Metro Sqlual~e

121 Seventh Place EastSt. MN 55101-2146

1-800-657-3858Fax: 651-296-5287

Mark Lofthus, Director651-297-4567mark.lofthus@state.mn.us

Patti Neuman, Medical Device Industry Specialist651-297-1303

Gene Goddard, Bioscience IndustI'V Specialist651-296-7102gene.goddard@state.mn.us

Elaine Bliss, DirectorMinnesota Trade Office651-297-4222elaine.bliss@state.mn.us

inBiosciencepublic and urilvalte

Developing Minnesotaclose collaborationpartners.

Encouraging andMinnesota bioscience

•

Investigating the creation of tax incentivesfor bioscience development.

Seeking funding for a planned ofMinnesota Translational Research li::JLdlity.

Prot,cclting fuolding streams for basic researchin the biosciences.

10800 Lyndale Ave, S, Suite 100Blo'Jmi!1gtC)n MN 55420-5613www,b.ioverse,com email:

Michael Z. VanErdewyk(cO

Office 952,948,0303Fax: 9529480305

1 Senator vickerman from the Commi~ee on Agriculture,2 Veterans and Gaminq, to which was referred .

SS0515R[SENATEE] mg

..:...,..:~O" and insert "$1,500"

i do pass endments adopted.

U?"......-v/~_:~ /7 ,/.&,,:.........._-

~6mmittee Chair)

February 21, 2005 ••••••••••••••••(Date of Committee recommendation)

1

-~------------ ---

Page 2, line 20, delete

And when so amendedReport adopted.

6 Reports the same back with the recommendation that the bill7 be amended as follows:

3 S.F. No. 515: A bill for an act relating to gambling;4 providing for certain raffles; amending Minnesota statutes 2004,5 section 349.166, subdivision 1.

8

910

1112131415

---~------------

[SENATEE] mv SS0930R

1 senator Vickerman from the Committee on Agriculture,2 Veterans and Gaming, to which was referred -

3 S.P. No. 930: A bill for an act relating to gambling;4 appropriating money for compulsive gambling prevention and5 education.

6 Reports the same back with the recommendation that the bill7 do pass and be re-referred to the Committee on Finance. Report8 adopted.

9

10

1112131415

February 21, 2005 •.••••••••.•..•••(Date of Committee recommendation)

1

... 4J ,.

02/08/05 [REVISOR] JSK/RC 05-2460

Senators Kubly; Vickerman; Neuville; Johnson, DoE. and Marty introduced-­

S.F. No. 930: Referred to the Committee on Agriculture, Veterans and Gaming.

1 . A bill for an act

2 relating to gambling; appropriating money for3 compulsive gambling prevention and education.

4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

5 Section 1. [APPROPRIATION.]

6 $150,000 in fiscal year 2006 and $150,000 in fiscal year

7 2007 are appropriated from the lottery prize fund to the

8 commissioner of human services for a grant to the Northstar

9 Problem Gambling Alliance, located in Arlington, Minnesota. The

10 Northstar Problem Gambling Alliance must provide servic"es to

11 increase public awareness of problem gambling, education and

12 training for individuals and organizations providing effective

13 treatment services to problem gamblers and their families, and

14 research relating to problem gambling. Of this appropriation,

15 $75,000 in each year of the biennium is contingent on the

16 demonstration of nonstate matching funds. Matching funds may be

17 either cash or qualifying in kind. The commissioner of finance

18 may disburse the state portion of the matching funds in

19 increments of $37,500 upon receipt of a commitment for an equal

20 amount of matching nonstate funds.

1

12/01/04 [REVISOR] JSK/RC 05-0519

Senators Tomassoni, Bakk and Lourey introduced--

S.F. No. 515: Referred to the Committee on Agriculture, Veterans and Gaming.

1 A bill for an act

2 relating to gambling; providing for certain raffles;3 amending Minnesota Statutes 2004, section 349.166,4 subdivision 1.

5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

6 Section 1. Minnesota Statutes 2004, section 349.166,

7 subdivision 1, is amended to read:

8 Subdivision 1. [EXCLUSIONS.] (a) Bingo, with the exception

9 of linked bingo games, may be conducted without a license and

10 without complying with sections 349.168, subdivisions 1 and 2;

11 349.17, subdivisions 1, 4, and 5; 349.18, subdivision 1; and

12 349.19, if it is conducted:

13 (1) by an organization in connection with a county fair,

14 the state fair, or a civic celebration and is not conducted for

15 more than 12 consecutive days and is limited to no more than

16 four separate applications for activities applied for and

17 approved in a calendar year; or

18 (2) by an organization that conducts four or fewer bingo

19 occasions in a calendar year.

20 An organization that holds a license to conduct lawful

21 gambling under this chapter may not conduct bingo under this

22 subdivision.

23 (b) Bingo may be conducted within a nursing home or a

24 senior citizen housing project or by a senior c~tizen

25 organization if the prizes for a single bingo game do not exceed

Section 1 1

--- --~---

12/01/04 [REVISOR] JSK/RC 05-0519

1 $10, total prizes awarded at a single bingo occasion do not

2 exceed $200, no more than two bingo occasions are held by the

3 organization or at the facility each week, only members of the

4 organization or residents of the nursing home or housing project

5 are allowed to play in a bingo game, no compensation is paid for

6 any persons who conduct the bingo, and a manager is appointed to

7 supervise the bingo. Bingo conducted under this paragraph is

8 exempt from sections 349.11 to 349.23, and the board may not

9 require an organization that conducts bingo under this

10 paragraph, or the manager who supervises the bingo, to register

11 or file a report with the board. The gross receipts from bingo

12

13

14

15

16

17

18

19

20

21

22

23

24

conducted under the limitations- of this subdivision are exempt

from taxation under chapter 297A.

(c) Raffles may be conducted by an organization without a

license and without complying with sections 349.154 to 349.165

and 349.167 to 349.213 if the value of all raffle prizes awarded

by the organization in a calendar year does not exceed $1,500.

Raffles may be conducted without registering with the board as

provided in Minnesota Rules, part 7861.0130, if the value of all;;;,500 4

raffle prizes awarded in the raffle does not exceea-$-S9-9-in a

calendar year.

(d) Except as provided in paragraph (b), the organization

must maintain all required records of excluded gambling activity

for 3-1/2 years.

2

Cl\{?rthstar.~Iianc~

ERS AND OTHER PROFESSIONALS AN

D TREATMENT OF PROBLEM GAMBLING.

~1II16AJJ1"innesotalndian {]omi'wAvsodUhtN!

The Northstar Alliance thanks the Minnesota Indian Gaming Association for helping to make thisconference possible in conjunction with the National Council on Problem Gambling Awat'eness Week.

Join us for a day that couldIMPACTyour profession -and

the LIVES ofcountless others.

According to a recent survey, 87% of Minnesotans were unaware of thetreatment options available for problem gamblers. And 41 %still believedthat problem gambling could be controlled by willpower alone.

In the face of such awareness problems, this conference brings nationallyand internationally known speakers to Minnesota for a fresh perspective.They will address a wide range of topics including pharmacology, youthgambling and treatment issues specific to rural areas.

And it all starts with hope. Please join us.

Fri&~y, March 14, 2003Gloria Dei Lutheran Church700 South Snelling AvenueSt. Paul, MN 55116

Continuing Education Units (CEUs)

Continuing Education Units (CEUs) have beenapplied for through the:

Minnesota Board of Social WorkMinnesota Board of PsychologyMinnesota Board of Marriage and Family TherapyMinnesota Board of Pharmacy

Registration Fee and DeadlineThe conference fee is $75, which includes lunchand conference materials.

Scholarships and student discounts are available.

Registration deadline is March 5, 2003.

For more information about the conference,please call Miranda Anderson at (218) 829-3055.

Conference Schedule7:45 - 8:30

8:30 - 8:40

8:40 - 8:50

8:50 - 9:00

9:00 -10:15

10:15 - 10:30

10:30 - 11:30

11:30 - 12:00

12:00 -1:00

1:00 - 2:00

RegistrationlContinental Breakfast

Opening CommentslWelcomeRoger SvendsenVice PresidentNorthstar Problem Gambling AllianceSenior Program OfficerMinnesota Institute of Public Health

Audrey KohnenPresidentPrairie Island Indian Community Tribal CouncilVice Chairman ( •Minnesota Indian Gaming Associit.~/

Drum CeremonyThe Prairie Island Drum Group

Video Presentation

Treating Special Populations: M( ties,Women, Teens and the Elderly··Keith WhyteExecutive DirectorNational Council on Problem Gambling

Break

Keynote: Working with Youth andProblem Gambling: The McGill ModelJeffrey Derevensky, Ph.D.Professor of School/Applied Child PsychologyMcGill University

The Classification Accuracy of D.S.M. IVRandy Stinchfield, Ph.D., L.P.Associate DirectorCenter For Adolescent Substance Abuse ResearchUniversity of Minnesota Medical School

Lunch

Breakout Session I

A. Psychopharmacological Treatmentsof Problem GamblingJon Grant, M.D.University of MinnesotaDepartment of Psychiatry

B. Understanding the UniqueCharacteristics of GamblersLynn Rambeck, Psy.D.Doctor of Clinical Psychology andLicensed Psychologist

2:00 - 3:00

3:00 - 3:15

3:15 - 4:15

Participants:

4:15 - 4:30

4:30

C. Treatment Provider Roundtable

Breakout Session II

A. Psychopharmacological Treatmentsof Problem GamblingJon Grant, M.D.University of MinnesotaDepartment of Psychiatry

B. Understanding the UniqueCharacteristics of GamblersLynn Rambeck, Psy.DDoctor of Clinical rI~)ogy andLicensed Psychologist

C. Becoming a Local ResourceJennifer NorbergSenior Account Execu.riveRussell & Herder (

Afternoon Break

It Starts with Hope: A PanelDiscussion on RecoveryModerator: Elizabeth GeorgeChief Executive OfficerNorth American Training Institute

Jeffrey Derevensky, Ph.D.Professor of School/Applied Child PsychologyMcGill University

Mary StreamRecovering Gambler

Keith WhyteExecutive DirectorNational Council on Problem Gambling

Sandi BrustuenCCDC/R, NCGC Program CoordinatorVanguard Compulsive GamblingTreatment Program

Lynn Rambeck, Psy.D.Doctor of Clinical Psychology andLicensed Psychologist

Evaluation and Certificates

Closing Remarks

Americans with Disabilities Act (ADA) Individuals with disabilities needing a reasonable accommodation to participate in the event should indicate this request in thespace provided on the registration form. All requests must be submitted by March 5, 2003. If you have any questions, please call Miranda Anderson at (218) 829-3055.

Speakers (Continued From Page 1)

Randy Stinchfield, Ph.D., L.P.Dr. Randy Stinchfield, a licensed clinicalpsychologist, is the associate director of theCenter for Adolescent Substance AbuseResearch at the University of MinnesotaMedical School. As a consulting psychologistto treatment and research agencies, he hasconducted studies and research in the areaof problem gambling with adults and youth.Dr. Stinchfield provided testimony to the National GamblingImpact Study Commission and was a contributor to the Committeeon the Social and Economic Impact of Pathological Gambling,National Research Council, National Academy of Sciences.Dr. Stinchfield also serves on the editorial board for the JournalofGambling Studies.

Jon Grant, M.D.As a Minnesota Medical Foundation Endowed Research Fellowand a resident physician at the University of Minnesota Departmentof Psychiatry, Dr. Jon Grant has participated in a wide range ofresearch studies. From testing the safety and efficacy of paroxetineto an examination of naltrexone's ability to reduce the urges andpleasures associated with gambling.

Mary StreamMary Stream is from Red Wing, Minn. andhas been working a recovery program formore than nine years. Mary shares her pastemotional and spiritual pain, the bottomthat brought her into recovery, and whather life is like today as she helps othersrecover from this baffling disease/addiction.She is a board member for the Northstar

Problem Gambling Alliance and has done television and newspaperinterviews, panels, workshops and training. Mary spent fouryears serving on the Department of Human Services CompulsiveGambling Advisory Committee and five years in gambling publicrelations.

Sandi BrustuenSandi Brustuen is the program coordinator for the VanguardCompulsive Gambling Treatment Program in Granite Falls, Minn.As a nationally certified gambling counselor and a licensed alcoholand drug counselor, Brustuen has been involved with the treatmentprocess of more than 1,000 compulsive gamblers since 1991. She hasalso co-authored Pathological Gambling & Chemical Dependency ­Similarities and Unique Characteristics.

To 1-35E-Summit Ave.

Randolph Ave.

+ W. Eleanor Ave.

A.

N

To 1-94tDirectionsGloria Dei Lutheran Church700 Sout?cP ""lling AvenueSt. Paul, ~ ,6116

..... _""

Lynn John Ra(=>cl<, Psy.D.Dr. Rambeck is a li~nsed clincial psychologist. He uses wit, insightand practical clinical application to address the variety of psychody­namics at play in the gambler. He explores their motivational anddefensive characteristics with a unique perspective that is as rare asit is useful. ( /)Elizabeth M. GeorgeAs chief executive officer of the North American Training Institute,Elizabeth George was the architect of the highly regarded course"Counseling the Pathological Gambler." George is also the associateeditor for program features for the Journal ofGambling Studies andsits on several other national and international panels. She is theco-editor of a book on underage gambling, Futures at Stake: Youth,Gambling, and Society, which will be released in early 2003.

Highland Parkway

A CONFERENCE FOR TREATMENT PROVAND OTHER PROFESSIONALS.

~rthstarIliance

c/o Russell & Herder· 315 East River Road • Brainerd, MN 56401

s r PO.

nceArlington, MN 55307

507-964-5184

Fax: 507-964-2950

i1l!9Zl@frlmtiemet.net

"Our mission is to increase public awareness, promote the widespread

availability of treatment for problem gambiers and their families, and to

encourage education, research and prevention"

TEN QUESTIONS TO ASK ABOUT PROBLEM OAMBI.INCAre you a compulsive gambler? The National Council onProblem Gambling has ten questions for you to ask yourself:

7.

1. Have you often gambledlonger than you had planned?

2. Have you often gambled untilyour last dollar was gone?

3. Have thoughts of gamblingcaused you to lose sleep?

4. Have you used your Income orsavings to gamble while lettingbills go unpaid?

s. Have you made repeated,unsuccessful attempts to stopgambling?

6. Have you broken the law orconsidered breaking the lawto finance your gambling?

money togambling?

8. Have you felt depressed orsuicidal because of yourgambling losses?

9. Have you been remorsefulafterrco°I")Hng?

10. Have\. Qambled to getmoney to meet your financialobligations?

If you or someone you know answers "Yes" to any of these

questions, consider seel<ing assistance from the Minnesota

Problem Gambling Hotline by calling 1·S0CH~31HIOP" or

visiting www.miph.org/gambling.

2""';"~e!stion screening Tool

1. Have you .:lIt the need to bet more andmore money?

2. Have you ever had to lie to people important toyou about how much you gamble?

For more information on resources for problemgambling, please contact the Minnesota ProblemCambling Helpline.

1-800-333-HOPE.No Judgment, Only Hope.

The Northstar problem Gambling Alliance, invites

your membership, gift and participation.

Phone: (507)964-518~

Fax: (507) 964-2950 '

ngpa@frontiernet.net

The Northstar problem Gambling

Alliance

P.o. BOX 555

Arlington, IViN 55307

Our mission:

II To increase public

awareness

II Promote toe widespread

availability,of treatment

for problem gamblers and

their families

II Encourage education,

research, and preventionI

(

nd

ce

$ 35 _---'-_

Northstar Problem Gambling Alliance, Inc,p.0. Box 5:;5

Arlington, MN 5530]

Name, _

Organization__--'- ---, _

Address, ---:-_~__~ _

Sponsor

Leading

Founding

city -,-_

state , Zip _

Phone: __-'--- -,- _

Fax, ---, _

E-Mail, ~ _

/\

Clinic/Agency

Benefactor

Individual

Members and Donors

, corporate/Institution

(Above ~embers reteive copies 0 aannouncements and mailings, a No

membership certificate, program

resource cent~r and invitation t

Annual Meeting.)

Cambling in Minnesota:' An'Overview

Gambling is one of Minnesota's most popular

pastimes. More than 90 percent of

Minnesota's adults have participated in some

form of gambling in their lifetime, and four ',out of five gamble in any given year.

Minnesotans can gamble at over 3,000 retail

establishments'that sell Minnesota state

Lottery ticl<ets, or at one of the 3,000 locations

selling charitable pUll-tabs, bingo, raffles, pad­

dlewheel games, or. tipboards. We can find

casino action at one of the 18 i:l'lbally-operateri

, casinos in the state, or visit the card CIU'b or (

race tracl< at Canterbury ParI<. Informal card, ,

games, office pools and other social wagers

are a part of life for many,.and of course we

can also travel to one of the man ambling

venues in bordering ,states 0 e

darl<er side, law enforcemen

,substantial organized ill~gal ga

Total annual wagering in the s

to be at least $6 lJillion.

The citizens of the state have ben. .

many ways. The Lottery ha

$1 billion to a variety of 'state any

worthy organizations have be(1efi'te~ from

charitable gambling. Casinos have brought

jobs, economic development, and opportunity

to some of Minnesota's most impoverished

communities, while the·horse racing industr), I

is intimately tied to Minnesota agricultu

And fCilr mo~t who participate, gambling has

provided some well-deserved fun and enter­

tainment.

But for some, it haSn't been fun and games.

Compulsive gambling is a disease, just Iil<e alco­

holism or drug addiction., It'S difficult to

detect, and can have devastating ,effects on

the gambler's family, friends, and employer. It

can lead to banl<ruptcy, divorce, foreclosure,

and even suicide. 'It affects thousands of

Minnesotans each year. Fortunately, treat­

ment of this disease is possible, available, and '

effective.

Problem Cambling Questions andAnswers

What is problem gambling?

Problem gambling goes beyond normal

,I: nds of gambling for fun, recreation or

entertainment. compulsive, or pathological

gambling is the inability, over an extended

period of time, to resist impulses to gamble. It

is often characterized by increasing preoccupa­

tion with gambling and a general loss of cpn­

tro,1. Pathological gamblers often "chase" their

losses, feela need to bet more frequently and

in larger amounts, and continue to gamble in

spite of the serous, negative consequences of

their behavior.

Who becomes a problem gambler?'

problem,gamblers can be male, female, young,

middle-aged, old, wealthy, poor, white, or peo­

ple of color.

Is someone who gambles a lot acompulsivegambler? '

necessarily. Many people who gamble fre­

quently are simply people who 'enjoy gam­

bling as entertainment. Generally these peo­

ple set aside a predetermined amount of

money for gambling, gamble for fun rather'

than for the 'certainty" of winnil;lg, recognize/

that they are liI<ely to lose, an

than they can afford to lose.

IS compulsive gambling associa

other mental health

In many cases, the,answer i

ies have f()und high rates 0

~depression, anti-social pe

mood disorders; and oth

, pulsive gamblers, leading

believe that problem gam

symptom of an underlying

Can you have a gambling

be;ng a compulsive gamble

Much as it's possible to abuse a

being an alcoholic, it's also pos

gambling problems with

cal gambler. Often this s

resolves itself without p

tion, but sometimes can

quences.

DO most people

become probl

No. For the vast

to gamble, it rem

entertainment.

Can proble

Yes. Studies'h

,effective in a

'Of programs exi

Anonymous to i\

There is no one progra

people. If a treatment pro

for a pqrticular indiv

may well succeed. The

grams located through

staff who are trained in

problem gambling.

Where can I find help for myself or a

oved'one?all the Minnesota Problem Gambling Helpline

1-800-333-HOPE. NO judgment - only hope.

What is the Northstar Problem Cambling

Alliance?Members of the Northstar Problem Gambling

Alliance include therapists, people in recovery,

researchers, members of the gaming industry,

and other concerned citizens. We share a

belief that problem gambling is a serious pUb­

lic health problem that is both treatable and

preventable. we are neutral on gambling poli-

though we will advocate in public forums

. A progralJls that ben'efit proqlem gambiers

and those affected by them.

Our mission is to:• 'Increase public awareness• Promote the widespread availability Of

treatment for problem gamblers andtheir families, and ,

• Encourage education, research, andprevention.

Who should join?• Worl<ers in the field of problem

gamblingProblem gamblers in recovery

• Researchers in the field of behavioraladdictions

• Those affected by problem gambling• Medical professionals, attorneys,.

counselors, and educators• Worl<ers and organizations in the

gaming industry•• Government regulators and policy

analysts

N0'\o'i"

I

N

l

Legislative Arguments2005 - 2006

• The Northstar Problem Gambling Alliance, Inc. is a private non-profit 2:amblio2: neutral entity that,as a non-governmental entity, can do some things that government can't. For example:

We bring together all of the diverse parties involved in gmnbling, -all of the gambling venues inftl"" Qf!lfe Of1\!1~l·nnpcot·a-illCl<util'llrr .-.....l·hp l\;j-innpcofa ;;;;;f!lfp T offpnT C'!lnfprhunT ParIL fl<l<llPti {'h!lr-ifl'pc".l.~V Uc..-u.(,. 1V .l.,I..tv,,-,V.l U..1.6 ~.l.V iV~.l. .LI.l.V...,. " J...J"''''''''''''' .L-JV"'''V.l.,J, '-'.......I..l.t.V.l.LJ .l.) ..... .l..I.~,.L 1. .Lv........ '-'.l..I.".l..I.1.- V~

oflv1innesota, The Minnesota Indian Gaming Association and the Independent Triball~ations,and other stakeholders such as residential trea1:Inent providers, out-patient providers, financialservice providers, lawyers, academic and practical research, and recovering persons, - andgatekeepers such as clergy,; school counselors, teachers, and probation officers, - to the sametablc~ ·whieh is t!ambHn1! neutral bv definition. to address our Orill1ary·r ll1ission which is

.. "-" .......... .,. r' L

concern, advocacy and supportfor the problem gambler and those affected by problemgambling. No other agency has been able to bring this diverse group together.

• We produce a quality newsletter called the Northstar Roundtable which is available to all stakeholders,gatekeepers, providers of services, legislators and other policy Inakers, and related agencies. \X/einitiated this imnortant effort he-eause the State ofMinnesota DRS Comnuisive Gamhiin~Advisorv. -. - - _. -- r - - - - - - - - - - .- -- - - . - - - _. - - - -- - -_. -- - - r _. - - - -- - '-' _...- - .,I

Committee and program eliminated this much needed professional and public infonnation venue.

• When DRS dropped the Annual Problem Gambling Awareness Week Conference for providers,stakeholders, gatekeepers and all other interested parties, a very important statewide event held inconjunction with the National Council on Probl-em Gambl~ng's National Awareness Week, we pickedthat up as well in 2003. (See our brochures for the 2003, 2004, and 2005 Iv1in.llesota Problem GamblingAwareness Week Conferences.)

• We are working with the Inter Faith Community in developing training programs and other ways thatlocal faith comlnunities can help their own effectively deal with the problem gambler and families andothers affected by problem gambling. This includes participation by aU faith systems. No otherprofession has such imlnediate and broad exposure to Minnesotans. However, clergy and other religiousprofessionals are not trained, at this point, to see, listen for, or recognize problem gambling issues.

• Two other action committees are The Financial Services Industry Comlnittee and The Judiciary/LegalServices Committee. Both of these committees involved research, white papers, and practical "what dowe need to know" brochures for providers of services, clients and customers.

• We would like to begln a more agiITessive urogram of research for the State ofMinnesota, As ispainfully clear, we lack good information and research regarding all aspects of gambling and co-existingmental illness disorders. Part of the reason is that gambling has only been given appropriate attention inthe last de-eade, in contrast to drugs and alcohol addiction, which has close ro- a cenv.1ry of research.

• Vve have been chosen by the National Council on Problem Gambling in Washington, D.C. to be itsofficial Minnesota Affiliate.

• Why .and .how wo-nld thefn.n-~ he used? TheSta1e., ii"ielf., js mrectl-y and significantly involved ju theg!l1'Yl-inn- -intillctnT Thp t-11ntic uTolllti hp l'Ylatf'hpti tioll!lr tAr tioilar uTlfh non_ct·afp f'llntic !lllti ucpti fnr'~_ (...1..l.J...1..1..1..1.5. 1...1..1.'-1."""-"'.1. J. ~ 1...1.'"' ......1..1.'-4-"-' v,.'Vu..1."U. VV .I.J...1.u,.. ...V.1..1.V'\",.l.. U.V-.1..l.u.J.. .1..'-":1.. '-'1-'-.7.1.1.."".1.. 1'1' .1.'-.1..1. .L.I..'VJ...1. ..., ""',",v .l..Y.1..I.u-tJ, U1. U. ..,,,,y. .I..'V.1. •

Operating e.xpenses Research start up .iunds Expand newsletter to beFact sheets Public information "online". Create websiteBrochures for specific audiences Training for stakeholders, gatekeepers and providers

orthst rIlianc

BOARD OF DIRECTORS:

Northstar Problem Gambling Alliance, Inc.

P.O. Bo)( 555, Arlington, MN 55307

Phone: 507-964-5184

F3l;<: 507-964-2950

Phil Kelly

PresidentAdministrator

Project Turnabout

Roger Svendsen, MS I

Vice President

Minnesota Institute ofPublic Health

John Mccarthysecretary

Exec. DirectorMinnesota Indian

Gaming Association '

D~n Feeney, MS, MPPTreasurer

Research DirectorMinnesota state Lottery

Marjorie Rapp, JDMember at Large

Attorney at Law

Maxine M. Boswell, LADe

Addiction CounselorWhite Earth Band of

Chippewa Indians

Terry CummingsBoard of Directors

Bremer Financial corp.

Eric HalstromExec. Director of Operations

canterbury Park

Gary Larson, JD

Sondra Mattox, Ph.D.

Addiction Therapist

Todd H. SipeSr. Vice PresidentBremer Financial

Randy stinchfield, Ph.D.

Dept. of PsychiatryUniversity of Minnesota

Mary StreamRecovering Person

King WilsonExecutive DirectorAllied Charities of

Minnesota

Ken winters, Ph.D.Dept. of Psychiatry

university of Minnesota

T. Lance Holthusen

FOR YOUR INFORMATION:NORTHSTAR PROBLEM GAMBLING ALLIANCE, INC.

The Northstar Problem Gambling Alliance, Inc., a non profit organization, came intobeing as a result of a concern that there was not an independent-entity, representing at

. the same table,. the concerns of all of the stakeholders and gatekeepers in the arena ofproblem gambling in the State ofMinnesota and this Region.

Stakeholders are defined as those who have a vested interest in gambling, includingall ofthe gambling venues such as The Minnesota State Lottery, The MinnesotaIndian Gaming Association, the independent tribal communities, Allied Charities ofMinnesota, and Canterbury Park, as well as the recovering compuisive gambler, andthose affected by problem gambling, such as families and friends, retail finance andbanking, the judicial system, and infonnation transfer systems.

Gatekeepers are defined as those who provide a door to recovery. or other appropriatehelp,such as researchers who help to provide reality regarding the issue ofproblemgambling, school counselors, clergy, physicians and nurses, county social workers,and residential and out patient treatment providers.

Despite our sometimes conflicting missions we all share one commonality, the beliefthat problem gambling is a serious public health issue, and that it is both treatable andpreventable. There is help and there is hope.

Our mission is to:

l. Increase public awareness2. Promote the widespread availability of treatment fur problem

gamblers and their families, and3. Encourage education, research and prevention.

We are emphatically neutral on gambling policy, though we will advocate in publicforums for programs that benefit problem gamblers and those afft~cted by problemgambling. Our mission can be summarized that we serve the problem gambler andthose affected by problem gambling.

The Northstar Alliance officially began operations September 1; 2002. We cooperatewith the National Council on Problem Gambling and the State ofMinnesota DHSCompulsive Gambling Program. As an example of our cooperation \\1th them wesponsored the2003 National Problem Gambling Awareness Week AnnualConference in Minnesota held March 14,2003.

We commend The State ofMinnesota DRS Compulsive Gambling Program, otherstate entities, and their initiatives in the problem gambling arena, and seek continuingsupport and collaboration with their efforts in whatever way appropriate.

Problem Ganlbling'sInlpact on Fanlily and Others

Aprillst, 2005 at Gloria Dei Lutheran Church, St. Paul, MN

A Training Conference Sponsored byThe Northstar Problem Gambling Alliance, Inc.

Northstar is the Minnesota Affiliate of the National Council on Problem Gambling, Washington, DC

Co- Sponsored by:Canterbury Park Minnesota Fund and Minnesota State Lottery

WithLutheran Social Service of Minnesota, Project Turnabout-Vanguard, New Wave Training, and

Lake Superior Area Family Services

(Tentative) Agenda

Moderator: T. Lance Holthusen, Executive Director NPGA

8:00 - 8:30 AM: Registration and Continental Breakfast.

8:30 - 8:45 AM: Welcome, Overview and Opening Remarks.Sponsor's Welcome: Randy Sampson, President of Canterbury Park

8:45 - 9:30 AM: One Family's Saga. Speaker: Nancy Dahlin-Teich, BSW, SocialService Supervisor, Isanti County Family Services, Cambridge, MN.

·9:30 -10:30 AM: How Problem Gambling Impacts Families. Lisa Vig, LAC andNCGC, Director, and Dawn Cronin, LSW and NCGC, both of gambler's Choice, aprogram of Lutheran Social Service of North Dakota.

10:30 -10:45 AM: Break and Refreshments.

10:45 -11:45 AM: Panel: Treatment and Recovery Services/or Families, Friends,and Others. Moderator: Steve Dettinger, Executive Director, Lake Superior AreaFamily Services.Panel: Greg Anderson,LP MSW, Senior Therapist, Lake Superior Area Family

Services, Duluth, MN.Greg Robertson, MSW, Fairview Recovery Services, Minneapolis, MN.Kelly Reynolds, MA, L.I.C.S.W., Director, Minnesota Problem Gambling

Helpline Roseville, MN.Sandy Brustuen, Project Turnabout-Vanguard, Granite Falls, MN.

2005 3rd Northstar Alliance Annual Awareness Conference, Continued.(Tentative Agenda) Page 2 of 4.

11:45 -12:15 PM Update on Gambling Research and Youth Gambling in Minnesota,Part 1: Gambling Treatment Outcomes Monitoring system, Randy Stinchfield, Ph.D.,Dept. of Psychiatry, University of Minnesota Medical School.

12:15 - 12:45 PM: Lunch Break

Sponsor's Welcome: Clint Harris, Executive Director, Minnesota State Lottery

12:45 -1:15 PM: Randy Stinchfield, Ph.D., Part 2: 2004 Student Survey.

1:15 - 2:15 PM: What About a Minnesota Gambling Court? Speakers: TheHonorable Gary Larson, Ass't Chief Judge of Hennepin County and PresidingJudge of Hennepin County Drug Court; Marjorie Rapp, Attorney, BridgeportFamily Law, St. Paul and Mantorville, MN.

2:15 - 3:15 PM: Panel(Those in recovery and/or affected by problem gambling):How Effective Are Present Treatment and Counseling Services In Minnesota?Moderator: Kathleen Porter, Program Manager, State of MN DHS Compulsive

Gambling Program.Panel: Mike J. (Panel includes recovering persons and affected persons.)

Mary S.Nancy D.Len P.

3:15 - 3:30 PM: Short Break and Refreshments.

3:30 - 4:30 PM: Panel: Financial Impact ofProblem Gambling On Families and theRoad Back.Moderator: Don Feeney, Director of Research and Planning, MN State LotteryPanel: Todd Sipe, Executive Vice President Greater MN Bremer Bank.

Susan Aulie, Senior Director Financial Services LSS MN, Duluth.Others

4:30 - 4:45 PM: Closing Remarks, Evaluation and Adjourn.

CEUs Applied for with the following:MN Bd. of Social WorkMN Bd. of PsychologyMN Bd. of Marriage and Family TherapyMN Bd. of PharmacyMN Bd. Of Legal Education

2005 Northstar Alliance Annual Awareness Conference, Continued (TentativeAgenda) Page 3 of 4.

Registration Form

3rd Annual Minnesota Problem Gambling Awareness

Conference:Problem Galnbling's Impact on Family and Others

April 1st, 2005 at Gloria Dei Lutheran Church700 S. Snelling Avenue, St. Paul, MN

Registration Deadline is March 23rd, 2005

Name-------------------------Organization. _

Address ~ _

City State: Zip: _

Phone: E-Mail:---------" --------------

Mail form and payment to:Northstar AllianceBox 555Arlington, MN 55307(Checks payable toNorthstar Alliance)

Questions: 1-507-964-5184E-Mail: npga@frontiernet.net

I am a member of the NorthstarAlliance. Enclose is my check for$75.00.

_I'd like to join. Enclosed is mycheck for $75.00 plus _for my chosen level of membership:_$35 _$100 _$250 _$500(Add membership in the NationalCouncil for just $35.00 more.)

_Enclosed is my check for $110.00Registration as a non-member.

Northstar Alliance 2005 Annual Awareness Conference, Continued.Page 4 of 4.

The following is information that should be in a separate boxes someplace in thebrochure:

NEW WAVE TRAINING2005 SCHEDULE:

One Day Training: May 6 in Duluth, Sept. 30 in Minneapolis

60 Hour Training: "Working With the Compulsive Gambler"May 9-14, also in Minneapolis

Courses approved by the American Council on Compulsive Gamblingand The MN Dept. of Human Services Fee-For-Service Program.

For More Information Contact: Judy Gaskill, New Wave Training, 6915 ThreeLakes Road, Canyon, MN 55717 E-Mail:bgaskill@cpinternet.com

Or call:1-218-345-8042.

-The Northstar Problem Gambling Alliance, Inc., a 501(c)(3) non-profit entity is theMinnesota affiliate of the National Council on Problem Gambling, and cooperateswith the State of Minnesota DHS Compulsive Gambling Program. It represents theconcerns of Stakeholders and Gatekeepers in the State of Minnesota and this Region.

Northstar Alliance is emphatically neutral on gambling policy, though we willadvocate in public forums for programs that benefit problem gamblers and thoseaffected by problem gambling. Our mission can be summarized that we serve theproblem gambler and those affected by problem gambling.

T. Lance Holthusen, Executive DirectorBox 555

Arlington, MN 55307(Phone: 507-964-5184; Fax: 507-964-2950: E-Mail: npga@frontiernet.net)

(f

NO THSTAR ROUNDTABLE

Volume 2 • Issue I Winter 2005

From the Executive Director

In September some 80 stakeholders, gatekeepers,and others interested in problem gambling issuesmet to participate in Joel Barker's ImplicationsWheel@ process. The results suggest that notonly does Minnesota not have adequate funding,

(Continued on page 2)

6

2

I4

13

Inside this issue:

Research Tidbits

Interview with Dr.Harold Wynne

Minnesota budgets about$1.5 Million per year forits Compulsive GamblingProgram. It budgets over Public Opinion and

Problem Gambling$100 Million annually fordrug and alcohol pro­grams. Is the harmcaused by drug and a1co- Featured Web Site

hoI use in Minnesota,greater than the harmcause by gambling by afactor of 70? We justdon't know, and we behave as if we are afraid toeven ask the question. We invest very little in re­search. Funding for treatment is limited to the ex­tent that not only are gambling counselors leavingbut fewer and fewer candidates are entering thefield.

Our understanding of the harmful impacts of gam­bling activity, legal and illegal, and the relativeamount of research, treatment, money and other re­sources invested thereto, is where we were withdrugs and alcohol in the 1940s and 1950s. Withdrugs and alcohol, and now even smoking, we havecome a very long way. But even there, as the arti­cle below suggests, we still have much to learnabout all aspects of addiction and compulsive be­haviors.

We have a long way to go, particularly in the areaof problem gambling .For example, the State of

Isn't it interesting that some of the best sellingChristmas gift items for 2004 were anything re­lated to "Texas Hold'em", chips or other gamingsupplies. Surprised store managers mused that theycouldn't keep enough of them in stock.

No, this is not going to be a litany of horror stories,bankruptcies or suicides. In this editorial I want tomake a simple point: The State of Minnesotaneeds to catch up.

Addictions: Separate or Syndrome?

The American Psychiatric Association lists patho­logical gambling as a separate and distinct disorderin the fourth edition of its piagnostic and StatisticalManual. And indeed gambling addiction has itsown treatment specialists, professional journals andsocieties, and 12 step programs.

A small but growing number of researchers and cli­nicians, however, believe that gambling and other"excessive behaviors" are symptoms of a broader

addiction syndrome, and that advances in treatmentand prevention can best result from recognition ofwhat different addictions have in common. At aDecember 2004 conference, Dr. Howard Shaffer ofthe Harvard Medical School likened the prevailingview of addictions to the early days of AIDS diag­nosis, when physicians treated symptoms, but didnot recognize their association with an underlyingimmune system disorder.

(Continued on page 4)

PAGE 2 NORTHSTAR ROUNDTABLE VOLUME 2 • ISSUE 1

From the Executive Director(Continuedji'om page J)

but that if it continues on its present course it willgo backward at an increasingly harmful rate. I haveoften pondered how helpful it would be if, forevery dollar spent on advertising for gambling, anequal amount would be invested on dealing withgambling information, problem prevention, re­search, counseling and treatment. Needless to saythe usual response is laughter and "how naive!". Isit?

Gambling in Minnesota is here to stay. We dependon it as the revenue source for an increasing num­ber of programs and businesses in Minnesota.Whose responsibility is harm prevention, reductionand treatment? We all need to more aggressivelystep up to the plate. The longer we wait, the greaterthe consequences.

-T Lance Holthusen, Executive Director

Problem Gambling: What the Public Thinks{and Why It Matters)

Problem gambling is not new. There are numerousexamples of clinically accurate descriptions datingback to the 1i h century. Many ofthese are phrasedin moral terms. M.L. Weems wrote in 1812 of"God's revenge against gambling exemplified inthe miserable lives and untimely deaths of a num­ber of persons from both sexes, who had sacrificedtheir health, wealth, and honor at the gaming ta­bles," while Samuel Johnson advised a gambler in1750 to "rouse from this lazy dream of fortuitousriches." Excessive gambling (and of­ten any gambling) was seen as amoral weakness, and gamblers couldchoose either to repent or to suffer theconsequences of shame, dishonor, anddamnation.

Freud was among the first to see gam-bling as something other than a moral problem,placing it in the same category as alcoholism anddrug dependence and a fit subject for psychoanaly­sis. These days phrases like "illness," "behaviordisorder," or "progressive disease" are commonlyused when describing compulsive gambling.We've come a long way.

Or have we? Does Joe Citizen believe in the medi­cal model? Or does the public still make the moraljudgments of M.L. Weems? The answer shedslight on the attitudes of public officials towardsproblem gambling and the reaction that family,friends, employers, and the community are likely tohave when someone comes forward with a gam­bling problem.

In surveys conducted over the pasttwo years, the Minnesota State Lot­tery has asked the public for theiropinions on issues related to problemgambling. These surveys, conductedby the survey research center at St.Cloud State University, shed a greatdeal of light on a previously unex­

plored corner of problem gambling research.

The surveys found that the public is torn betweenthe medical and morality models. Forty-four per­cent ofthe public agreed that "the main cause ofcompulsive gambling is moral weakness." Anidentical 44 percent disagreed, while 11 percent

Special thanks to

BREMER FINANCIAL SERVICESFor making this newsletter possible

VOLUME 2 • ISSUE 1 NORTHSTAR ROUNDTABLE PAGE 3

didn't know. You don't go to a clinic for a moralweakness.

Three out of five Minnesota adults believe that"controlling problem gambling is mostly a matterof willpower." Again, willpower is not a medicalintervention. The medical model prevails on onecount, however. Nine out often agree with Freudthat "problem gambling is an addiction just like al­cohol or drug addiction."

The public is also pessimistic about the benefits oftreatment. Only 27 percent agreed that "treatmentfor problem gambling is often successful." Ifsomeone doesn't believe that treatment is effective,how hard will they try to get a spouse, friend, orrelative to a clinician? This is consistent with a na­tional survey that found fewer than one in threeagreeing that "the majority of those who seek treat­ment for addiction to alcohol or drugs achieve life­long recovery."

Stereotypes of the problem gambler are also com­mon. Forty-one percent agreed that "poor peopleare the most likely group to become addicted togambling." Biases like this have the effect ofmar­ginalizing the problem gambler, leading to a viewof the gambler as being different than ourselves,and perhaps less worthy.

Finally, the public believes that compulsive gam­bling is rampant. When asked "what percentage ofMinnesota adults have a gambling addiction?,"only 4 percent answered "1 percent or less." Eight­een percent said the rate was between 2 percent and5 percent, 14 percent said it was between 6 percentand 10 percent, 13 percent though it was between

~rthstarIliance

11 percent and 20 percent, and 21 percent of thepublic thought that more than one Minnesota adultin five had a "gambling addiction."

Most who work with problem gamblers believe thatthe problem is psychological imd medical, notmoral. They believe that problem gambling cutsacross the socio-economic spectrum. They believeit is prevalent among a relatively small percentageof the population. And they believe that treatmentworks (though not all the time). These data suggestthat a large segment of the general public thinks theopposite.

Why do we care? Well, we want people to entertreatment. We want their circle of friends and fam­ily to be appropriately supportive. We want thelegislature to fund our programs. How many ofthese goals can be accomplished with a commonperception that problem gambling is a moral weak­ness, that it can be controlled through greater will­power, and that treatment doesn't work?

The Department of Human Services has decided tofocus on a simple message: Treatment is available.It is affordable. And it works. This by itself is acritical message to communicate to the public. Butwe need to do more to educate the public on thetruth about problem gambling. Doing so can onlyhelp in our efforts to reach more problem gamblersearlier in their disease and return them as produc­tive members of society.

The author would like to acknowledge his debt toDr. Bo Bernhard's work on this topic.

Northstarprot:>lem Cambllng Alliance. Inc.

P.O. BOX 555. Arlington, MN 55307

Phone: 507-964-5184

Fax: 507-964-2950

E-mail: npga@frontlernet.net

The Northstar Roundtable is published by the Northstar Problem Gambling Alliance, the Minnesotaaffiliate of the National Council on Problem Gambling

Executive Director: T. Lance Holthusen Editor: Don Feeney

PAGE 4

~arate or Syndrome?

NORTH STARRO UNDTABLE VOLUME 2· ISSUE 1

(Continued/rom page 1)

Shaffer recognizes that individual addictions eachhave some unique components. Chasing losses, forexample, is unique to gambling, while infectionsfrom needle use result from substance abuse.. Hislist of commonalities, however, is much more ex­tensive. The same genetic risk factors, for exam­ple, seem to be involved in multiple addictions.The same risk factors-impulsivity, delinquency,poverty-are found in addicts of all stripes. Symp­toms such as tolerance, withdrawal, shame, deceit,guilt, depression, and anxiety do not distinguishone addiction from another. And treatments havemuch in common, as evidenced by the spread of"12 step" programs from one addiction to another.

The idea of a common addiction syndrome is notnew. Dr. Julian Taber, for example,wrote in 1991 that "whatever the addic­tion, the mood cycle is the same, theprogression of use is the same, the im­mature personality organization is thesame, the withdrawal is similar, the so­cial consequences are equally drastic,and the tendency to be multiply ad­dicted is the same." Dr. Durand Jacobsand colleagues noted similarities be­tween-alcoholics, pathological gam­blers, and compulsive overeaters as early as 1985.Jacobs wrote in 1989 that "addicts of markedly dis­parate types share a common dissociative-like ex­perience when indulging that clearly sets themapart from normal groups ... who also indulge inthe same types of substances or activities." Morerecently, Jacobs has stated that some individualshave a greater predisposition for an addiction, andthat this predisposition has both biological and psy­chological components.

Shaffer expands on these earlier theories by citingbiological and psychological evidence from studiesdone on a wide range of addictive behaviors. It hasbeen found, for example, that drugs such as alco­hol, cocaine, and heroin, and behaviors such asgambling can stimulate the brain's reward systemin a similar way (particularly involving the brain

chemical dopamine). Some scientists believe that amalfunction in the dopamine system makes onevulnerable to addiction. Other studies have foundcommon genetic vulnerabilities to different addic­tions. One study, for example, linked the samegenes to alcohol dependence and pathological gam­bling. No studies cited by Shaffer could find addic­tion-specific genetic links, that is, genes associatedwith one type of addiction but not others.

Numerous studies also find common psychologicalrisk factors among those suffering from addictions.Conditions such as major depression and posttrau­matic stress disorder have been found to precede avariety of addictions, though research on the linksbetween these conditions and behavioral addictionsis limited.

Finally, the same social risk factorsappear to be present in a variety ofaddictions. Poverty seems to beone common link. Poor parentalsupervision and juvenile delin­quency are others, though we don'tknow the extent to which these arecausal or just an indicator of higherrisk.

Are some people, then, destined tobecome addicts? Shaffer stresses that as with manyother medical conditions, predisposition does notmean the condition is inevitable. We know, for ex­ample, that some people are more likely to becomeobese or to develop hypertension than others, butnot all of those at risk develop the condition. Infact, knowledge of the risk factors can lead tochanges in behavior and to therapies that make de­velopment of the condition less likely. Addiction,according to Shaffer, results from a highly complexinteraction between biological factors, psychologi­cal factors, a person's environment, and exposure toan addictive object at a critical time. Some withmultiple risk factors will never develop an addic­tion, either by luck or by the acquisition ofpreven­tative techniques. And some with relatively fewfactors can still develop a problem when exposed to

VOLUME 2 • ISSUE I NORTHSTAR ROUNDTABLE PAGE 5

the right agent under the right circumstances at theright time.

Rethinking individual addictions as a common syn­drome suggests rethinking treatment with a focus onthe ~nderlying condition rather than the object ofthe addiction. Jacobs suggests a three-pronged ap­proach to addiction treatment, involving the teach­ing of stress management techniques, addressingand resolving underlying psychological problemsand learning skills to cope with everyday reality..Shaffer and colleagues believe that "conventionalwisdom discourages clinicians from paying suffi­cient attention to the underlying core of addictivebehaviors." They propose a multi-modal "cocktail"approach with elements that address the overall ad­diction syndrome and others that deal with the spe­cific addiction. Both the gambler and the alcoholic,for example, might benefit from improved copingskills, but the gambler must deal with unique finan­cial issues while the drug abuser may have uniquemedical issues. Shaffer also believes that concen­trating on the addiction object can lead therapists toignore "addiction hopping" between chemical andbehavioral addictions. Drs. Jon Grant and S.W.Kim have found that some of the same medicationscan be effective on addictions ranging from gam­bling to sex to kleptomania to chemicals, but em­phasize that the medications must be combined withmore traditional forms of therapy to have the great­est effect.

Prevention efforts may also need to be seen in adifferent light. With many physical diseases we fo­cus prevention on those most at risk. Could thesame be done for addiction? Jacobs has advocatedthat schools focus on teaching coping and life skillssuch as stress management, how to deal with emo­tions, and self-acceptance rather than focusing onspecific behaviors such as drugs or gambling.Schools may welcome the opportunity to teachskills rather than being pressured to add curriculafor one individual addiction after another. Toobroad an approach, however, can ignore the dan­gers of non-addictive abuse. Teaching the risks of

drinking and driving, for eXaInple, is not about pre­venting addiction.

And what of the gambling industry, and those whoproduce or market other "addictive" items? If theitem itself does not cause the addiction, and the ad­diction is an indicator of underlying biological and/or psychological conditions, does the industry bearany responsibility?

People are more or less predisposed to an addiction.But predisposition is not destiny. There is a mo­ment (or moments) of truth when the potential ad­dict is exposed to the addiction object at the righttime. Clearly the object plays a role. We don'tknow much about how that moment can be madesafer, but comInon sense suggests that it can bedone. The involved industries need to considerhow a particular environment or design or market­ing strategy might affect the person on the edge.And it is well-accepted that businesses have a re­sponsibility to those who have crossed the line.The existence of a genetic predisposition does notabsolve the bartender from taking steps to ensurethat someone who has imbibed too much doesn'tdrive. There are likely also moments of truth whenexposure to the right message at the right time canpush someone to make the first steps to recovery orto make someone teetering on the edge of an addic­tion think twice. Industry has a responsibility tolearn what that message is and then to provide it.

Shaffer believes that viewing different addictionsas indicators of a common syndrome can only leadto improved treatment and prevention efforts. Heurges those treating chemical addictions to considertreatment methods used by those treating behav­ioral addictions and vice-versa, and concludes that"the necessary tools for improving addiction treat­ment might be already available. All that is re­quired to enhance the use of these devices is a re­thinking of addiction." Cooperation between clini­cians, researchers and businesses involved in awide range of addictive objects can only hasten thatrethinking.

Is problem l5.ambling merely one manifestation ofa larger syndrome? Share your thoughts on this articlefor the next Iss~e ofNorthstar Roundtable. Write us at P.O. Box 555) Arlington) MN 55307 or e-mail usat npga@frontlernet.net

PAGE 6 NORTHSTAR ROUNDTABLE VOLUME 2, ISSUE 1

HW: It's pretty universal wherever you go. Thebig difference is whether video lottery ter­minal gambling is provincially sponsored.Ontario and British Columbia don't haveVLT programs yet, but there are VLTs inbars and lounges in the other provinces.Where the provinces have VLTs the partici­pation rates are up significantly. And weknow that there's a correlation betweenproblem gambling and electronic gamblingmachines including VLTs. What I call theticket trade-playing the lottery and lottery­like products like community-based raf­fles-is the most preferred form of gam­bling in every province. Then we move ondown to casinos, video lottery terminals and

Interview with Dr. Harold Wynne

Harold Wynne Ph.D. is a renowned Canadian edu­cator and researcher who hasplanned and implemented hundred~ of so­cial development and adult education pro­grams. He has conducted provincial andnational problem gambling research stud­ies and continues to advise Canadian andinternational governments, agencies, andindustry on gambling policy and pro­grams. Dr. Wynne holds appointments atuniversities and research agencies includ­ing McGill University, Harvard MedicalSchool, Canadian Centre on SubstanceAbuse, and University of Alberta. Dr.Wynne serves on the Editorial Board ofthe Journal of Gambling Studies, TheWAGER, International Gambling Studies Dr. Harold Wynne

Journal, and the Electronic Journal ofGambling Issues. While in St. Paul to give the key­note speech at the 2004 Statewide Conference onProblem Gambling he spoke with Northstar Alli­ance board member Don Feeney.

DF: Could you describe for those of us who livesouth of the border what the state of gam­bling in Canada is and'how, in yOUr experi-

-ence, it differs from what we see in the U.S? DF:

HW: There's a fundamental difference in themodel. In America, it's largely a privatemodel, but in Canada, the state itself ownsgambling in one way or another. It ownsthe lotteries, it owns the casinos or contractswith private businesses to run them on thegovernment's behalf. So the government isvery, very much involved in the whole ofthe gambling enterprise. Contrast that withgambling in Nevada, where the state's reve­nue comes from licensing and taxes and allof the casinos are owned by private corpora­tions and, for the most part, the profits aretheirs. In Alberta, the government doesn'thave to lobby itself to expand or to get somecomfort on regulation. In America the gam­ing industry has to lobby the government to

get concessions. We'll probably see thatbattle fought now in the area ofinternet gambling in both of ourcountries.

DF: Do Canadians like togamble or do you just prey on thetourists?

HW: Canadians like to gamble.Although, interestingly, I've no­ticed when we did prevalencestudies in Alberta in 1998, I thinkthere was something like 87 per­cent ofthe public in that surveysaid they gambled. We did an­other one in 2001, three yearslater, and it was down to 83 per­

cent. The very first one we did in 1992 wasup to 93 percent. So, from 1992 to 2001,we saw a drop of some 10 percent of peo­pie's self-reported gambling. So, while stilla significant number of people gilmble, itlooks like, if anything, despite expansionthere seems to be a downward trend.

Are there certain parts of Canada whereyou see less gambling activity ?

VOLUME 2· ISSUE 1 NORTHSTAR ROUNDTABLE PAGE 7

bingo. These draw roughly the same per­centage of people, but it's a different mix ofpeople participating in each of these. Horseracing is a more specialized group. OnPrince Edward Island, it's extremely popu­lar because of their long-standing horse rac­ing industry.

DF: My sense is that the support services andprograms available for problem gamblers inCanada, in general, far outstrip those avail­able in the u.s. Is that fair?

HW: Oh, I would say that's absolutely fair. Andmaybe that has to do with the differences inthe Canadian versus U.s. gambling model Imentioned earlier. With the government­owned and managed model there might bemore of a moral obligation to do somethingabout the consequences. For instance, inCanada we see that there are quite a fewgovernment sponsored resources for prob­lem gamblers. But not just in Canada. Thesame can be said of Australia and New Zea­land as well, where the government gam­bling model is very similar to the Canadianmodel. The Americans appear to be laggingbehind as far as investing government fundsin the prevention and treatment of problemgambling..

DF: In what ways? Is it in making treatmentavailable? Is it in preventative services?

HW: I would say most noticeably in publicawareness campaigns. For instance, inMinnesota I've heard people lament thatthere's more money being spent advertisingand promoting gambling than there is rais­ing people's consciousness about the issueof problem gambling. And I think youprobably would find that across the UnitedStates. And, right now in Canada, there's alot more provincial-level television-basedpublic awareness campaigns saying that,"Look gambling is very harmful for a cer­tain number and type of people. Do this atyour own risk."

DF: Is there any evidence that those are in anyway, shape or form effective?

HW: Well, that's the $64,000 question. Is itmoney well spent or is it money that's justbeing frittered away? The jury is out onthat.

DF: Do you find that there are more treatmentservices available in Canada?

HW: I would say that the services are very simi­lar in Canada and the U.S. We both haveresidential treatment services and outpatientprograms that are, for the most part, two- tofour-week models. Depending on whereyou go in Canada and the U.S. you'll findmore or less services in the community.But, frankly, traditional treatment servicesin neither country seem to be reaching thepopulation that has a disorder right now.When we do our prevalence studies, we'llshow that, for instance, in the Province ofOntario, there are estimated to be some340,000-problem gamblers. Yet, fewer than1,500 people across the province are intreatment. That's a huge difference: 1,500to 340,000. The question remains: How doyou reach those problem gamblers who arenot predisposed to coming in for treatment?

We need to look at alternatives. Right now,I'm involved with a research project withthe Center for Addictions and MentalHealth in Toronto where we've developed atelecounseling treatment program. We'retrying to promote and market telephone­based counseling of people so that it's attheir convenience, in the privacy of theirhome, and it can be done 24-7. When theyphone in they're matched up with their owntherapist and a manual is shipped to themdirectly. The therapist and the gambler workthrough the manual over a half a dozen ses­sions. We're trying this approach to see,first of all, if we can reach problem gam­blers- some of the 340,000 that we're notreaching -and then to see whether or not

(Continued on page 8)

PAGE B NORTHSTAR ROUNDTABLE VOLUME 2 • ISSUE 1

(Contilluedfrom page 7)

this telecounseling approach is effective.

This approach was influenced by researchthat David Hodgins and several other col­leagues and I did back in 1998 at the Uni­versity of Calgary. We looked at the differ­ence between lifetime problem gamblingprevalence rates and current rates and wesaw that there were a lot of people who hada problem in the past but not in the present.And there were really no programs for gam­blers in Alberta at the time, even very fewGA chapters. So, we could reasonably ex­pect that somehow or other these peoplehad recovered over the course of their life­time without professional intervention. So,we went out and we interviewed these peo­ple to try to see what would have triggered aspontaneous remission, or natural recovery,as it was called then. We didn't have manypeople to interview so the research wasn'tparticularly conclusive. But we thought thatmaybe we could get people started alongthat self-recovery road and that's where theself-recovery manual idea came from. TheOntario project is based on this notion thatpeople can, for the most part, recover nicelyby themselves, thank you very much, butwe're going to help you a bit through tele­counseling and through the manual. Thisapproach, along with the problem gamblers'own devices, might just be enough to movethe problem gambler along the road to re­covery.

DF: Are ethnic differences a significant factorwhen dealing with both adjustments to gam­bling and problem gambling?

HW: Well, I'm working on three research pro­jects right now with ethnic and aboriginalcommunities. The first one is with eightethnic communities in Toronto and Win­dsor-Essex County. The methodology thatwe're using is known ~s "participatory ac­tion research." Essentially, the responsibil­ity for doing the research is turned over to

the community. My role is as a resourceperson to help empower the communityand teach them how to do their own re­search. The first task is to help them build aresearch plan that has sound research ques­tions and appropriate methodologies forgathering the data needed to address these.But, other than that, the community has theresponsibility to go in and research gam­bling and problem gambling in their ownpopulation.

DF: These communities are?

HW: These communities are the Somalis, the Af­ghanis, the Iraqis, the Filipinos, the Greeksand the Indo-Caribbeans in Toronto. InWindsor, it's the Jewish community andthe South Asian communities. They'vedone their research, and each communityhas just finished their action-planningphase. After their research was completed,each community devised action strategiesto affect the social change that's needed todeal with the issue of problem gamblin-g.In the months ahead, these ethnic communi­ties will be implementing their action plans,which will involve mounting culturally­appropriate prevention and treatment pro­grams and services.

DF: How different are they?

HW: Very. To start with, some communitieshave very different notions about the per­missibility of gambling. For example, inthe Muslim communities, gambling is for­bidden in the Qur'an. When the research­ers interviewed their religious leaders, theywere basically told that they didn't want totalk about it: "There is no gambling in ourcommunity. It's forbidden in the Qur'an."People don't gamble, and if they did, nevermind whether they're problem gamblers;they're just sinners. And so the only waywe can help them is through spiritual coun­seling through the Imams and in themosque. That's it. On the other hand, you

PAGE 9 NORTHSTAR ROUNDTABLE VOLUME 2 • ISSUE 1

have some non-Muslim ethnic communities that one. How do you get over the Qur'anin Toronto who are much more tolerant of forbidding gambling in Muslim communi-gambling. They recognize that gambling ties? Both the sacred and secular commu-exists, and that it is not forbidden on reli- nities are going to, somehow, have to dealgious or moral grounds .. However, all com- with the issue ofproblem gambling in theirmunities agree that problem gambling is a midst. That's why each ethnic communityblight on the individual, his or her family, is participating in this research project andand the community itself. developing action strategies that will make

sense in their community context.DF: How is that then reflected in terms of any

types of intervention you might do on be- UF: Is it possible that someone from, say the Af-half of a problem gambler? ghan community, might actually be more

comfortable coming in to a treatment pro-HW: Well, that remains to be seen. It's one of gram that is predominately Anglo because

the biggest challenges that faces all com- they wouldn't receive that same degree ofmunities. Even if gambling is permitted shame that they would if they sought treat-and tolerated in communities one thing that ment in their own community?all of the communities hold in common isthat they don't tolerate problem gamblers. HW: The answer is "yes". Some communitiesProblem gamblers are seen, amongst other said as much. One ofthe questions all ofthings, to bring shame on the community. the communities asked was about help-Problem gambling is also seen very much as seeking preferences and many respondentsbeing a private trouble, not any kind of a said, "Listen. You know we would likepublic issue. Given these attitudes, dealing treatment services in our language, obvi-with problem gambling is going to be very ously, so we can understand what's goingmuch an uphill battle for every community, on but not in our community because wesome more than others. Right now each don't want to be "outed" as a gambler,community has the task of raising aware- never mind a problem gambler." One of theness that there is problem gambling in the well-respected, largest immigrant organiza-population, even in the Muslim communi- tions in Canada is COSTI, which is the To-ties. Then, beyond that, they need to de- ronto-based agency that sponsored this re-velop some kind of a collective responsibil- search project. Some communities are dis-ity to deal with problem gamblers. It's es- cussing whether COSTI can put some prob-sential that they do it themselves because I lem gambling services in place that willand other university types wouldn't have serve all the ethnic communities. becausetwo clues in a sandbox what works in the many of their people don't want to be seenAfghan community. to be going to their own community agen-

cies.DF: Do you find in some of these communities

that there's just denial that problem gam- DF: I'm guessing they gamble outside the com-bling exists? munity as well.

HW: Absolutely. HW: Oh, sure. Many people want to hide theirgambling. Very much so.

DF: How do you get over that?DF: Have you done any work in Canada with

HW: I don't know. The community itself is go- the First Nations populations at all?ing to have to come up with the answer to (Continued on page 10)

PAGE 10 NORTHSTAR ROU NOT ABLE VOLUME 2 • ISSUE 1

(Continued/rom page 9)

HW: Well, that's the second part of the ethnic re­search that we're doing. Right now, we areworking with five aboriginal cOlnluunitiesin Ontario doing the exact same thing wedid with the ethnic populations in Torontoand Windsor. We're using participatory ac­tion research and working through a localresearch advisory committee that we helpedeach comluunity establish so they can lookat gambling and problem gambling in theirpopulations. I'm just starting another studyin Alberta with two aboriginal communities.We try to work with the community andhelp empower them to do their own re­search because they're the ones that are,first of all, going to gain access and proba­bly get closer to finding out what the "truth"is as far as gambling and problem gamblinggoes and, more importantly, the communitywill have to plan the programs and servicesproblem gamblers and their families willneed. When all is said and done, the com­munity leaders are not going anywhere,unlike most university researchers wholeave Dodge when they're done collectingdata. The leaders are still there and they'restill interested in doing something to effect

. positive change. They're not interested indoing research as an academic exercise.

DF: What unique challenges do you find in thesecommunities?

HW: One of the things we have to reluind our­selves is that while our interest is in prob­lem gambling, there's myriad problems inthose communities and in the great.schemeof things, problem gambling may be waydown the list. Even as ap addiction, it'sway down the list. So, aboriginal communi­ties are first and foremost still interested indealing with alcoholism. But, there areother issues, too - neglect, abuse, abandon­ment, domestic violence, poverty. You loadthese problems on aboriginal communitiesand, in a way, problem gambling pales.

One of our challenges is to get problemgmnbling on the radar screen and see howit's interconnected with these other prob­lems. We need to help the community bestuse the Ineager resources they have to helppeople who have a gambling problem.That's the biggest challenge for both the re­searcher and the cOlumunity itself.

DF: Is it a big enough problem that they shouldbe devoting their resources to galubling asopposed to putting them into some of theseother issues?

HW: No. I would prefer to see some kind of anomnibus approach in the communities toprovide the resources and develop thewherewithal needed to deal with the wholeconstellation of social problems. In manyFirst Nations communities, this begins witheconomic developlnent and employmentprograms to address the systemic povertyissue. You could argue that if you want toeradicate alcoholism and problem gamblingand domestic violence on reserves, put peo­ple to work and give them a reason to beproud; give them some reason to have posi­tive self-esteem, the rest of the things we, inthe dominant cultural group, take forgranted.

DF: In the twenty-odd years that you've been inthis business, what's changed?

HW: One of the things that's obviously changedis that gambling has expanded to unprece­dented levels, in both of our countries andworldwide. Second, gambling has goneand continues to go electronic. It's far morecost-effective to have electronic gamblingmachines situated in "convenience loca­tions"-such as bars,.lounges and grocerystores-than it is to build stand-alone casi­nos. And we're going to see this continue,of course, with Internet gambling. Third, Idon't think any of the governments, cer­tainly in Canada, had any idea how muchrevenue would be generated by expanding

PAGE 11 NORTHSTAR ROUNDTABLE VOLUME 2 . ISSUE 1

gambling. And right now they are pleas­antly shocked. In Alberta 5 percent of theprovince's annual budget is coming fromgaming. That outstrips the revenues thatcome in from crude oil royalties in that re­source-rich province. Ironically, this reve­nue windfall has become a real problem forgovernments because, even if a governmentwanted to disavow gambling and dismantlethe gambling apparatus and go back in timeand reduce the opportunities, they'd have adevil of a time backfilling the revenue.We're talking about billions of gamblingdollars right now flowing to the public cof­fers.

DF: What do we know now that we didn't knowtwenty years ago?

HW: Twenty years ago we weren'tvexed by problem gambling.Twenty years ago in Canadagambling still hadn't beenturned over legally to theprovinces - the change in theCanadian Criminal Code in1985 allowed for this. Wedidn't have a great deal ofgambling out there in people's

-faces. So, along with the rise in gamblingover the last twenty years came the rise inproblem gambling and our consciousnessand awareness about this as a social andpublic health issue. It's really just in thelast ten years that we've seriously ad­dressed problem gambling as an individualand community issue. But, we're catchingup fast. We're learning a lot. For example,we know that there are physiological deter­ments, and risk factors that predispose peo­ple to developing a gambling problem -­everything from genetic markers to brainchemistry. We have researchers working inthat area and concurrently working on treat­ments that are medically based. We alsohave the psychologicaJ fraternity, who werethe first ones to become interested in thisissue, developing profiles of problem gam-

bIers and testing various approaches to treatthese individuals. Sociologists are begin­ning to study the extent to which social net­works and interactions affect and influencepeople to have or not to have a gamblingproblem. Economists are now becominginterested in assessing the socio-economicimpacts of gambling - determining whetheror not it's net costly or net beneficial. So,there's more interest from the different aca­demic disciplines now and, as a result, theknowledge base is beginning to grow asmore disciplines become engaged.

DF: What do you think are the bigunknowns?Where should we be focusing researchmoney and resources?

HW: All of our communities arenot homogeneous--they're made upof many sub-cultural groups. Peoplein different groups may be more orless afflicted with problem gamblingdisorders than others. We need tolearn about the nature and character­istics of problem gambling in differ­ent populations and what the culturalnuances are from one group to theother. We have to do this all with a

view to providing the resources that thecommunity needs to deal with the problemitself, rather than the province or state try­ing to come up with some kind of one-size­fits-all program or service.

Another main research area is the need toexamine the effects of the world-widemovement to electronic gambling machines.Understanding human-EGM interaction iscritical to devising strategies to help peoplecontrol their play on EGMs, and to ulti­mately treating problem gamblers who areaddicted to these machines. This area of re­search is extremely important now, giventhe proliferation ofInternet gambling. Arelated area of research needed is to exam­ine the effects of EGMs and Internet gam-

(Continued on page 12)

PAGE 12 NORTHSTAR ROUNDTABLE VOLUME 2 • ISSUE 1

(Continuedfrol1l page 11)

bling on children and adolescents. Givenhow much they're computer-savvy, I amlnost concerned that the Game Boy genera­tion-especially young males--will be espe­cially vulnerable to developing an EGM orInternet gambling problem.

DF: Are there any industry practices that youfeellnost strongly should be changed?

HW: Industry has recognized that there is falloutfrom their practices that has to do withproblem gambling. That said, the gamingindustry" feels it has a responsibility to dosomething about it, to promote somethingcalled responsible gaIning. This means tak­ing initiatives such as training casino staffto deal with and intervene with problemgamblers, problem gambling signage in ca­sinos, problem gambling advertising per­haps funded by industry, putting responsiblegaming features on video lottery terminalsand so ori to try to help peopl.e gain somecontro1back. And it's easy to be cynicaland say the gaming industry's doing this toprotect their revenues, but I would take theview that even if they're doing it for argua­bly the wrong reasons, at least they are do­ing it. I welcome these initiatives, but westill have to evaluate whether or not they'rehaving any kind of an positive effect onproblem gambling. It is all well and good tomount responsible gaming features on videolottery terminals, but how do you know ifthey work or not? I'm doing research rightnow for the Alberta government to find outif these VLT features do help gamblers con­trol their play more effectively.

DF: A personal bias of mine is that we have not

explored nearly enough the whole area ofsub-clinical problem gambling. It may notmeet the definition of an addiction, but it isstill a problem, still has a cost, still causesdamage and is probably much lllore wide­spread than an actual pathology. I think thatthese responsible gaming efforts would bemuch more likely to Inake a dent in the sub­clinical behavior than in the pathologicalbehavior.

HW: I would agree with that. In fact, the Cana­dian Problem Gambling Index that I helpeddevelop identifies four gambler subtypes:non-problem, low risk, moderate risk andproblem gamblers. In all the Canadianstudies recently undertaken, the low andllloderate risk populations are much largerthan the problem group, and we are mostinterested in pursuing research, preventionand treatment programs aimed at this at-riskgroup .. It has been argued in the literatureand by therapists that there's only so muchyou can reasonably be expected to do tohelp problem gamblers, particularly whilethey are still gambling. Consequently, pre­vention and treatment interventions wouldbe most profitably directed at the peoplewho are at risk rather than the ones who al­ready have a severe problem. The chal­lenge here is to prevent gamblers who are atsome level of risk from developing a full­blown gambling problem. The good newsis that many colleagues are now beginningto study this at-risk group and to developinterventions to prevent these gamblersfrom developing a problem. To me, this isthe most exciting and promising researchthat is presently being done in the gamblingstudies field.

NO JUDGMENT, ONLY HOPE1-800-333-HOPE

The Minnesota Problem Gambling Helpline is available 24 hours a day, 7 days a week.A service of the Department of Human Services and the Minnesota Institute of Public Health

--_.._._-----------------------------------

PAGE 13 NORTHSTAR ROUNDTABLE VOLUME 2' ISSUE 1

Northstar Alliance Receives Grant from Canterbury Park

Northstar Alliance Executive Director Lance Holthusen(middle) receives a check from Canterbury Park PresidentRandy Sampson (right) and Director Eric Halstrom (left)

The Canterbury Park Minnesota Fund (CPMF)awarded a $15,000 grant tothe Northstar Problem Gam­bling Alliance in Decemberto help finance a seminar se­ries in 2005. The CPMF is anew donor-advised commu­nity fund established by Can­terbury Park that focuses onaiding Minnesota's horse andagriculture industry as well asfunding responsible gamingprograms throughout thestate.

"We are proud to continue our support for theNorthstar Problem Gambling Al­liance through this grant," Can­terbury Park Track PresidentRandy Sampson said. "The gam­ing community has a duty to helpaddress the issue of responsiblegaming, and we are pleased towork toward that goal with theAlliance."

The grant raised CanterburyPark's total contributions to theNorthstar Alliance to over$22,000 in 2004.

Featured Website: Compulsive Gamblers Hub

http://www.cghub.homestead.com

The Compulsive Gamblers Hub is an open commu­nity for individuals in recovery who, share their"Experience, Strength, and Hope", with each otherthat they may solve their common problems andhelp others in working a recovery program.Founded in 2001 by a group of recovering gam­blers under the leadership of Charlie P., the siteasks only that prospective participants have a de­sire to stop gambling. There are no dues or fees toparticipate, though contributions are encouraged.

Among the resources found on the page are a 24hour interactive chat room, scheduled online Gam­blers Anonymous-formatted meetings, a daily mes­sage board, 12 Step message boards, financial pres­sure relief resources and recognition ofpartici­pants' last day of gambling.

One participant recently described her experiencewith the Hub. "As an ex-addict struggling to un­derstand how her life and thinking had gotten socrazy, the people on (this) site quite literally savedmy sanity. I still remember the feelings of relief I

had the first time I visited ... and discovered that Itruly was not alone in doing what I had done.

"Unlike walking into a room full of strangers, visit­ing the Hub can be as anonymous as the visitorneeds to be ... they can read and remain silent untilthey feel comfortable/inspired/challenged enoughto post. There are no awkward looks or embarrass­ing moments when a person first visits and becausethere is no record or indication of who is visiting atany given moment, there is absolutely no pressureon visitors to 'speak. ",

The site is not intended to replace face-to-facecounseling or GA meetings. For those who can at­tend ~uch sessions, the Hub serves as a comple­ment or a way to ease into the recovery commu­nity. There are a variety of reasons, however, thatcan make this a critical resource for others. Gam­blers who are geographically isolated, have a hear­ing impairment or have other physical limitationsmay find the site to be a lifeline.

PAGE 14

Research Tidbits

NORTHSTAR ROUNDTABLE VOLUME 2 • ISSUE 1

Internet Gambling and Adolescents

Internet galnbling is a relatively new phenomenonthat does not seem to have yet captured the imagi­nation of the general public. An April 2004 surveyfound that fewer than 2 percent of Minnesota adultshad placed a bet using the Internet.

A Quebec study, though, suggests that online gam­bling may be making inroads among students. Asample of 2,087 high school and college studentsfound that 89 percent reported gambling on theInternet with or without money in the past year.While only 5 percent reported gambling online formoney, those reporting gambling problems weremore likely to engage in Internet gambling withoutmoney than social gamblers. When asked whatmade Internet gambling appealing, the most com­mon responses were ease of access, rapid play, con­venience, and not having to leave home. To thislist, probable pathological gamblers added the ap­peal of online competition.

Mood Disorders and Problem Gambling

A review of over 80 publications finds an"irrefutable" link between mood disorders andproblem gambling. The review, conducted by theMood Disorders Society of Canada, found greaterprevalence of a number of mood disorders in patho­logical gamblers than the general population, in­cluding major depression, bipolar disorders, cyclo­thymia, and dysthymia.

In many cases, the mood disorder predated the on­set of problem gambling, and the authors speculate

Upcominq EventsMarch 10-11,2005Seventh Annual Compulsive Gambling Confer­

ence. Radisson Hotel Paper Valley, Appleton, WI. Spon­sored by the Wisconsin Council on Problem.Gambling

April 1, 2005Problem Gambling's Impact on Family. Gloria

Dei Lutheran Church, St. Paul, MN. Sponsored by theNorthstar Problem Gambling Alliance.

that gambling may be a way to seek relief from themood disorder. In fact, the disorder often worsensdue to the negative consequences of the gaInbling,which in turn may lead to Inore gambling.

The authors urge those treating patients with mooddisorders to be aware of the potential for gamblingproblems and to include questions about gamblingas part of the clinical assessment process.

Beautiful Women Make Men Stupid

McMaster University researchers have proven thatmen perform less well on a gambling task afterlooking at photos of attractive women.

Male students were shown pictures of either attrac­tive or unattractive women and then given dice tothrow. When they threw a "winning" combination,they were given a choice of between $15 and $35the next day or $50 to $75 after a longer wait.Those seeing the attractive women were far morelikely to take the smaller sum right away.

When given the same task, however, women whohad been shown pictures of attractive men re­sponded no differently than those seeing unattrac­tive men.

The researchers concluded that the pictures of at­tractive women caused courtship and mating re­sponses in the brain, leading them to- emphasizeshort-term benefits over long-term consequences.Women, on the other hand, are more likely to asso­ciate courtship with long-term consequences, andtherefore become less likely to discount the future.

April 17-20, 2005Discovery 2005. Niagara Falls, Ontario. Spon­

sored by the Responsible Gambling Council.

June 23-25, 200519th Annual Conference on Prevention, Research

and Treatment of Problem Gambling. New Orleans, LA.Sponsored by the National Council on Problem Gambling.

PAGE 15 NORTHSTAR ROUN DTABLE VOLUME 2 • ISSUE 1

Northstar Problem Gambling Alliance Board of Directors

Executive DirectorT. Lance Holthusen

PresidentPhil KellyProject Turnabout

Vice PresidentRoger Svendsen, MSMinnesota Institute of Public Health

SecretaryJohn McCarthyMinnesota Indian Gaming Association

TreasurerDon Feeney, MS, MPPMinnesota State Lottery

Member at LargeMarjorie Rapp, JDAttorney at Law

Maxine M. Boswell, LADCWhite Earth Band of Chippewa Indians

Terry CummingsBremer Financial Corporation

Eric HalstromCanterbury Park

Fong HeuMinnesota Council on Nonprofits

Gary Larson, JD

Todd H. SipeBremer Financial Corporation

Randy Stinchfield, Ph.D.University ofMinnesota

Mary StreamRecovering person

King WilsonAllied Charities of Minnesota

Ken Winters, Ph.D.University ofMinne,sota

3rd Annual Minnesota Problem Gambling Awareness Conference:Problem Gambling's Impact on Family and Others

Registration Deadline is March 23rd, 2005

Name:----------------------------------Organization: _

Address:---------------------------------City: State: Zip: _

Phone: E-Mail:------------ ------------------Mail form and payment to:Northstar AllianceBox 555Arlington, MN 55307(Checks payable toNorthstar Problem GamblingAlliance)

__I am a member of the Northstar Alliance. Enclosed is mycheck for $75

__I'd like to join. Enclosed is my check for $75.00 plus _for my chosen level of membership ranging from$35.00 to $500.00. (Add membership in the NationalCouncil on Problem Gambling for just $35 more)

__Enclosed is my check for $110.

ADA needs: _

No Foolin', Save This Date!Apri I 1, 2005

Problem Gambling's Impact onFamily and Others

Presented by the Northstar Problem Gambling Alliance, Inc.

8:00 AM-4:30 PMGloria Dei Lutheran Church

700 S. Snelling AvenueSt. Paul, MN

Lunch and parking included. CEUs available

$75.00 Northstar Alliance members $110.00 non-members.Register now using the form on the inside back page of this newsletter. See you there!

Presented with the support ofCanterbury Park and the Minnesota State Lottery

Northstar Problem Gambling Alliance, Inc.P.O. Box 555Arlington, MN 55307

Non-ProfitU.S. Postage

PAIDPermit No. 273

Anoka, MN55303

------------------------------------------------~

~rthstarIliance

Northstar problem Gambling Alliance. Inc.

P.O. Box 555. Arlington. MN 55307

Phone: 507-964-518~

Fax: 507-964-2950

E-mail: npga@frontiernet.net

((

[me Northstar Problem €lambling Alliance, Inc.

PROBLEM GAMBLING: WHAT A GAMBLINGMANAGER SHOULD KNOW

Problem gambling: It's a subject nobody likes to talk about, but it's one that can affectyour friends, your families, your employees, and your customers. This document is 'designed to help you understand compulsive gambling, its causes, its effects, and whatwe can all do about it.

Most Minnesotans gamble, and most do it because it's fun. But sometimes gamblinggoes beyond the bounds of fim, recreation, or entertainment. This can be an occasionalproblem, like sometimes betting more than you can really afford, or it can become anaddiction. "Problem gambling" refers to the broad range of inappropriate gamblingbehavior that goes beyond fun and entertainment, while "compulsive" or "pathological"gambling refers to the inability, over an extended period of time, to resist the impulse togamble. As one compulsive gambler put it, "I couldn't think of one day of life withoutgambling. Even when I didn't gamble that day, my world revolved around it. And I gotso tired and so depressed and so emotionally drained. Everything else had long sincedisappeared from my life - relationships, friendships, everything."

Compulsive gambling, in many ways, is similar to alcohol or drug dependence, eventhough no substance is ingested. It is one of a wide range of activities that can lead toaddictive behavior, including sex, food, and even shopping. Indeed, as stated by notedgambling researcher Dr. Peter Collins, "Anything that gives pleasure is potentiallyaddictive. "

Fortunately, it's a rare condition. Estimates on the number ofcompulsive gamblersdiffer, but most recent studies in the U.S. place the rate at less than 1 percent of the adultpopulation. Nevertheless, that number is not zero, and if you or someone you know isone ofthe unfortunate few, the consequences can be devastating. Pathological gamblerscan lose their jobs, their families, and even, through suicide, their lives.

" What are the signs of problem gambling?

Problem gambling is an invisible affliction. You can't smell a slot machine onsomeone's breath, or see any "tracks" on the gambling addict's arms. Yet as we know,the consequences of a gambling addiction can be every bit as devastating as a chemicalone. How, then, can you spot a gambling problem in an employee, a customer, a friendor a relative?

Spending a lot ofmoney on gambling does not, by itself, make one a compulsivegambler. Gambling, for most people, is a hobby, and like any hobby some pursue it withmore interest than others. Ift~y stay within preset limits, don't "chase" their losses,recognize that they are likely to lose, and gamble for fun rather than for money, theylikely do not have a problem. Problem gambling is characterized by a loss of control andby continued gambling despite negative consequences.

Nor do compulsive gamblers always fit the stereotype of the middle-aged white malewho "plays the horses." Problem gamblers can be male, female, white, black, Asian,Hispanic, or Native American. They can be 14 years old, 80 years old, or all points inbetween. They can play the horses, slots, pull-tabs, cards, or the lottery. They can bepoor or wealthy. It is a very democratic condition.

The Vanguard Compulsive Gambling Treatment Program of Granite Falls has a list ofeight warning signs of a gambling problem. These include:

./ Looking for the "high" that comes from gambling

./ Increasing isolation from family and friends

./ Declining worl} performance

./ Neglecting basic needs like money for food and rent

./ Pressuring others for money as financial problems crop up

./ Lying about how money is spent

./ Escaping to other excesses (alcohol, drugs, sleep)

./ DenYing there is a problem

It is also important to know that problem drinking and problem gambling are stronglylinked. In several studies about 50 percent of problem gamblers were also found to havesubstance abuse problems. People may have both addictions simultaneously, or switchfrom one addiction to another.

What can I do?

Recognizing these signs in an employee, customer, friend, or family member is notalways easy. Even more difficult is lmowing what to do once you suspect the existenceof a gambling problem.

The Minnesota Problem Gambling Helpline has produced a video, "What Should I Say?What Can I Do?," that outlines six steps that can help deal with this difficult situation.They are:

1) Assure the person that you care about them.2) Describe the behavior that is troubling you.3) Describe how you feel when you see these behaviors.4) Assure them that you'll listen to what they have to say.5) Tell them what you want them to do about it.6) Tell them what you are willing to do to help.

You can't expect this conversation to work the first time; it may have to be repeatedmany times to have an effect. You must also remember that you are not responsible fortheir behavior. If the person will not take responsibility for their gambling, you mustprotect yourself from the consequences. If the person is an employee, you should takesteps to protect your finances and your business.

Sometimes even simple actions can be beneficial. Keep a poster·or brochure for theProblem Gambling Helpline available and visible. If you see a customer looking at thebrochure, encourage them in a non-threatening way, like "that's really good informationif you think a friend might have a problem."

The video is available for free loan to Minnesota residents, or it can be purchased for $50.The approach it outlines is also useful for coping with other problems, such as alcohol oreating disorders. Call the Helpline at 1-800-437-3641 for more infonnation.

But what if someone walks up to your pull-tab booth and says, "I have a problem. Wherecan I get help?"

You're thinking that this will never happen to you. And you're probably right. But it hashappened, and if it does, it can be a terrifYing moment. In order to cope, you need tohave thought about the situation beforehand so that you or your staffhave some ideawhat to do.

First, remember that as hard as it is for you to be confronted with this situation, it'sharder for them. Asking for help is a very difficult thing to do. And for that reason, it'simportant to get them to act now. Next week, tomorrow, or an hour from now they mightchange their mind. Second, remember that their asking you for help doesn't make youresponsible for solving their problem. That's the job of the professionals. Your job is toget them in contact with those professionals as soon as possible.

You should have the brochure for the Problem Gambling Helpline readily available. Geta copy. Give it to them. Explain that they can call this number any time. It will beanswered by a trained professional who will talk them through their immediate crisis andhelp the gambler find the local resources that are best for them. They can also help thefamily member who needs to know how to cope with the gambler in their life. Offer theuse of your phone. Offer to dial the number (1-800-437-3641) fOf them.

Reassure them that they are not alone. They need to hear that there's hope, that people dorecover from gambling problems, and that they can get their lives back. They might askfor money. Don't do it - that's the same as giving a drink to 'an alcoholic and will justdelay their seeking help. lfthey ask you not to sell them any more pull-tabs or bingocards, accommodate them. (If you're asked not to sell someone else tickets, such as aspouse, it's a more difficult situation. I can only tell you to use your best judgment basedon your knowledge of the individuals.) They might lash out at you for making gamblingavailable. Don't take it personally and don't get defensive. Let them vent. Over the

course of treatment, they willleam that their problem is their responsibility. It is notsomeone else's fault.

I hope you're never confronted with this situation, but if you are, consider that you'vebeen given a unique opportunity to make a difference in someone's life. You can best dothis by getting them to the professionals as quickly as possible.

What resources are available?

Weare fortunate in Minnesota to have a wealth of resources available to help theproblem gambler or their family. We've already mentioned the Problem GamblingHelpline. This free service is staffed 24 hours a day, 365 days a year. Receiving about4,000 calls a year, the Helpline's counselors are trained in crisis intervention and canrefer callers to a wide range of social services. But the Helpline is not just for crisissituations. It's the place to call if you're a concerned family member wondering what todo, or if you're looking for a poster for a local senior or youth center, or if you areinterested in a speaker on problem gambling for a civic club meeting, or if you're just aconcerned citizen looking for a brochure or luore information.

Many calls to the Helpline result in a referral to a program designed to help those withgambling problems. One commonly used resource is Gamblers Anonyn10us (GA). This12-step program currently holds meetings in more than 50 communities aroundMinnesota. Gam-Anon, a related organization for families and close friends of problemgamblers, has meetings in 15 cities around the state. A list ofGA and Gam-Anonlueetings can be found on the Internet at http://www.miph.org/gambling/list.html.

For those needing more intensive assistance, there are now nlore than 50 state-approvedtreatment programs located throughout the state. These range from individual therapiststo general mental health clinics to outpatient programs specializing in gambling tointensive inpatient treatment. There are even programs for populations with uniqueneeds, such as Native Americans, Asians, or senior citizens. The Helpline counselors canhelp detenrtine which program is the best fit for you or someone you care about.