Life in Estonia (Winter 2014 issue)

WINTER I 2013 / 2014
SPECIAL!
Biotech And
Functional
Food
land & people I state & society I economy & business I technology & innovation I culture & entertainment I tourism
Small Producers Making A Big Difference
Diverse Estonian Restaurant Landscape
Katre Kõvask
The Dynamic Leader
of PremiaGood Bacteria
To The Rescue
Estonia
Contributes
To Life-changing
Genetics
Estonia
Goes Organic

COVER
Katre Kõvask
Photo by:
Atko Januson
Executive publisher
Positive Projects
Pärnu mnt 69, 10134 Tallinn, Estonia
think@positive.ee
Editor
Reet Grosberg
reet.grosberg@ambassador.ee
Translation
Ingrid Hübscher
Ambassador Translation Agency
Language editor
Richard Adang
Design & Layout
Positive Design
Partner
WINTER 2013 / 2014 I LIFE IN ESTONIA 3
The food industry and the development of
food products are among the most rapidly
developing branches of the knowledge-
based economy in the world. “Functional
food” has become a fashionable term, in a
positive sense, and, together with the rapid
increase in the popularity of organic foods, it
demonstrates the different needs that peo-
ple have today when it comes to nutrition
and taking care of their health.
Estonia can boast of great results in the de-
velopment of functional foods. The probiotic
milk acid bacteria Lactobacillus fermentum
ME-3 and Tensia, discovered by the Estonian
scientist Marika Mikelsaar, have won prizes in
various competitions. More importantly, we
have food products which contain those use-
ful bacteria.
The predicted growth in the world’s popula-
tion to 9.6 billion by the year 2050 places in-
creasing demands on food, as well as on the
growth of special nutritional needs. This turns
functional food, product development and bio-
technology into fields with enormous potential
for guaranteeing a better sense of well-being
for people, not to mention their economic
benefits.
For example, Estonian scientists from the Uni-
versity of Tartu have patented an appliance
which finds traces of antibiotics in milk in real-
time. The milk is analysed within one minute. A
silage bacterium discovered in Estonia, which is
used as a silage additive, is registered on the list
of EU feed additives.
The latest great achievement of Estonian pro-
ducers is de-mineralised whey powder, which is
a valuable component of baby food. While to-
day the babies of the European Union, Australia,
Malaysia and Singapore are benefiting from this
product, the future target is of course the Chinese
market.
Hence, milk is the flagship of our agriculture. Es-
tonia’s milk production covers 170% of our own
consumption, meaning that our milk and milk
products are sold to consumers in other countries
as well. In autumn 2013, two Estonian cheeses
received quality awards from the German Asso-
ciation of Agriculture DLG: a gold and a bronze.
The independent international recognition dem-
onstrates the high quality and great taste of those
products.
An important precondition for producing great
food is nature and Estonia is wealthy in this sense.
Climate conditions enable us to produce more nat-
urally than in other countries. We are ranked third
in the EU and fifth in Europe in terms of organic
production. Organic production growth is based
on people’s increased awareness and interest in the
origins of the food they consume.
Saidafarm, an Estonian organic producer, received
the Baltic Sea Farmer of the Year Award 2013 for
implementing extensive sustainable and innova-
tive measures. This proves that even with larger
production volumes it is possible to produce sus-
tainably, and market organic food. Polls show that
82% of Estonian consumers prefer to buy organic
food, mainly to take care of their health and the
environment.
In step with increasing consumer demand, excit-
ing organic products and organic restaurants have
come onto the market. You can read about many
of them in this issue.
Estonians are not stingy and we invite all those
who are interested to experience the natural and
the innovative at the same time. In January, our
great food can be found at the Grüne Woche fair
in Berlin, where Estonia is a partner state under the
slogan “Naturally Estonian”. But the best way is of
course to visit Estonia and let yourself be positively
surprised.
Helir-Valdor Seeder
Minister of Agriculture of the Republic of Estonia
Estonian food combines
nature and science

6 Where to go this season?
Life in Estonia recommends
8 News
9 Estonian organic food -
a growing trend
Organic farming land makes up 15% of Estonian farming land, plac-
ing Estonia in third place in the EU. According to surveys, over 82% of
Estonian consumers would prefer to buy organic food. Toomas Kevvai,
Deputy Secretary General for Food Safety, Research and Development of
the Ministry of Agriculture gives a brief introduction of the topic under
the Rural Development Plan.
10 The Estonian food industry -
small but smart
The Estonian food industry is very small in comparison to that of its
neighbouring countries. Its flagships, the milk, meat and beverage in-
dustries, form over half of the entire production value. In 2012, the
Estonian food industry had the largest percentage growth in production
volume in the entire EU. Taavi Kand, Head of the Trade and Agro-Food
Department, Ministry of Agriculture, reports.
12 Katre Kõvask: Premia Foods
owes its market leader status
to a great team
Katre Kõvask is the Chair of Premia Foods, which is active in six states
and in five target markets in three different business segments: ice
cream, chilled fishery products, and frozen foods. The company is noted
on the Nasdaq OMX Tallinn Stock Exchange. Life in Estonia visited Katre
Kõvask in the last days of 2013 to talk about the past, present and fu-
ture of the corporation.
16 Tartu –
a town of good bacteria
In the last few years, the Bio-Competence Centre of Healthy Dairy Prod-
ucts (BioCC), based in Tartu, has discovered and researched previously
unknown Lactobacillus strains and made them work for the benefit of
consumers. BioCC is the owner of 20 patents, and 11 patent applica-
tions are pending in Estonia, Europe, the USA, Russia, Korea and Japan.
20 Estonia makes its way onto
the world map with new
cancer medication
Life in Estonia visited the Competence Centre for Cancer Research,
which aims to develop cancer drug candidates and diagnostic plat-
forms, to find out which of their projects may reach the world market
in the near future.
24 All genetic roads
lead to Estonia
Tartu is the place to turn to when a nation gets gripped with the eternal
question “Where do we come from?”. With the help of genes, scien-
tists at the Estonian Biocentre have traced the ancient migration of peo-
ple, helping to establish the origins of, among others, Native Americans
and Aboriginal Australians
28 Scientists saved
the honour of a national hero
The trial of the most famous Estonian male cross-country skier, Andrus
Veerpalu, in the international Court of Arbitration became a match of
scientists in which three relatively unknown Estonians beat WADA. The
team was led by Sulev Kõks, Professor of Physiological Genomics at the
University of Tartu, who is currently working with three other interest-
ing projects.
32 MetaMed rescues wealthy
patients from the randomness
of the medical system
Jaan Tallinn’s company MetaMed offers a personal medical service to
the wealthy which can cost up to 250,000 USD. Inspiration for the crea-
tion of the company came from Steve Jobs’ fight with cancer.
I CONTENT
WINTER_2013/2014
LIFE IN ESTONIA I 2013 / 2014 WINTER4

49 Peeter
Laurits - wrestling
with ancient forces
It must be creative potential which has taken Peeter Laurits where he is
today. It has brought him through dark sorrows and elevated dreams,
in order to find his own place in the arts world. Get acquainted with his
journey and art.
61 Winny Puhh
Six Estonian musicians created a commotion with their appearance at
the Paris Fashion Week when Rick Owens, a designer of exclusive male
fashion, invited the band to perform at the presentation of his Spring
Collection 2014. The show received immediate media attention all over
the world. Who are these rural lads who became pets of the world’s
fashion elite?
64 Organic and rustic:
a new trend in the Estonian
restaurant landscape
It seems that the entire world is moving towards simpler and fresher
food. Famous head chefs from different continents are going back to-
ward their roots. Local ingredients, simple flavours and affordable prices
are in. Get acquainted with some of the trendy eating places in Tallinn
and in the countryside.
71 The food served
in Estonia is sumptuous
and diverse
Six years of experience in choosing the fifty best restaurants in Estonia
demonstrates that the local cuisine offers a good reason to visit the
country. This year’s TOP 5 restaurants showcase the diversity of food on
offer in Estonia.
77 Estonia in brief
78 Practical information for
visitors
34 How to stay healthy?
Let’s ask the bacteria
in your tummy
Flick Diet, an Estonian start-up, helps people to lose weight and live
healthily. Practical nutritional advice is provided through the DNA analsis
of gut bacteria.
37 Quality labels
help Estonians select food
Four of the best known food quality labels issued by the Estonian
Chamber of Agriculture and Commerce and the Estonian Food Industry
Association help Estonian consumers to make choices in grocery stores.
For companies, a quality label provides the opportunity to attract atten-
tion to their product and to emphasize the local nature of raw materials
or production. A quality label is a good way to increase sales and save
on marketing costs when entering the market with a new product.
42 Kalamatsi goat - milk dairy
experiments with
new cheeses
Esna, a picturesque village in the Estonian countryside, is where Aita
Mets and Jaan Raudkivi have, in just three years, established the Kala-
matsi Dairy. Its organic products are sold in shops and the best restau-
rants in Estonia.
44 Minna Sahver surprises
with special jelly candy
Minna Sahver is a small company which sells jelly candy handmade from
natural berries, fruit and vegetable purees free of artificial colourings
and preservatives. In November, the company celebrated its third birth-
day in its new production facility.
46 Success guaranteed
by product development
and innovation
The only yeast producer in Estonia, the Salutaguse Yeast Factory is part
of the Lallemand Group, with its head office in Canada. The factory
produces liquid yeast, inactive dry yeast, and inactive dry yeast-based
additives. Most of the production is exported to Europe, North America
and Asia.

I WHERE TO GO THIS SEASON
MustonenFest
/ 30.01 - 8.02.2014 /
Third time under the name of MustonenFest, this international music festival has
been held regularly since 1989. It brings to the listeners an unlimited amount of
music in different genres through centuries. In 2014 the initiator and artistic direc-
tor of the festival,Andres Mustonen brings to the audience Mario Brunello, Israel
Camerata, the Coptic archaic choir, English early music ensemble La Serenissima
and several outstanding soloists with whom he has had the joy and honour to
share the stage at different concert hall in the world.
www.concert.ee
Modigliani – the Cursed Artist
/ Thomas Edur’s ballet to the music of Tauno Aints
/ On 11, 22 and 24 January 2014 /
“Modigliani – the Cursed Artist” is Thomas Edur’s debut as a stage di-
rector at the Estonian National Opera. The ballet tells an exciting story
of the stormy life of Amedeo Modigliani (1884–1920), one of the most
famous bohemian artists of the 20th century. Legends are told about
Modigliani’s life – his eccentric nature, his bragging, emotional twists,
passionate affairs with writers Anna Akhmatova and Beatrice Hastings,
and artist Jeanne Hébuterne, a dream to mount Parnassus and his rivalry
with Picasso, health problems and the onset of tuberculosis that he tried
to conceal by consuming alcohol and drugs excessively – it all provides
colourful material for the birth of an astonishing stage-work.
Anatoli Arhangelski

Manon / Kenneth MacMillan’s ballet to the music of Jules Massenet
/ Performances on 13 and 22 February
and 8 March 2014 /
The central character is Manon, the most desirable courtesan in
Paris, who becomes a refugee in Louisiana due to a dramatic chain
of events. The music expresses Manon’s downfall from the world of
pleasures to the frustrating hellhole. Sir Kenneth MacMillan created
one of the most popular ballets of the 20th century for the Royal Ballet
in 1974. Since then, Manon has been performed by top ballet compa-
nies as the dancing technique of the dancers has to be of high level.
Manon was the last ballet Agnes Oaks and Thomas Edur performed
before returning to Estonia in 2009.
Grand exhibition in Tallinn Seaplane Harbour: more
than 200 artifacts from the ocean bottom, recreations
of the Ship’s rooms and stories of the passengers.
15.11.2013 - 31.03.2014
WWW.SEAPLANEHARBOUR.COM
JULY 21.–27. 2014
Presenting
the Taras Shevchenko
Ukrainian National
Academic Theatre of
Opera and Ballet!
Verdi “DON CARLOS“
Lysenko “NATALKA POLTAVKA“
Bellini “NORMA“
OPRERA GALA
CHILDREN GALA
Artistic director of the festival: Arne Mikk
saaremaaopera.eu
facebook.com/saaremaaopera
Medea / Ballet by Gianluca Schiavoni
World premiere at the Estonian National Opera on 13 March 2014
/ Performances on 15 and 28 March 2014 /
Gianluca Schiavoni has created a ballet for the dancers of the Esto-
nian National Ballet – a contemporary version of the famous myth of
Medea with a new dramaturgy by Marco Gandini, a stunning and
symbolic set design by Maria Rossi Franchi and Andrea Tocchio and
costume design by Simona Morresi.
Gianluca Schiavoni: “Medea, a sensual and powerful princess of
mythical Colchide (a region corresponding to present Georgia), is a se-
ductive sorceress, who abandons her country and her family for her love
of a strong and handsome man called Jason. Yet he is not interested only
in Medea’s love, but also in getting hold of the Golden Fleece, which is
a symbol of power. Medea gains Jason’s love by giving him this symbol
of power. Soon she gives birth to two boys. Once she realizes that Jason
is betraying her with the King’s daughter, Glauce, she decides to take
revenge by killing Glauce, and most terrible of all – by killing her own
children.” www.opera.ee
PhotosbyHarriRospu
Alena Shkatula and Maksim Chukarjov

E-Piim, one of the largest cheese producers in Estonia,
is the first company in the Baltic states to start producing
quality de-mineralized whey powder (Demin 90),
which is used in breast-milk substitutes.
De-mineralized whey powder is a real niche product and, in order to
make production profitable, companies need to access the Chinese
market. The only whey production plant in the Baltic states, which was
opened last summer in Järva-Jaani, is currently waiting for recognition
from the Chinese Veterinary Board, in order to start selling whey pow-
der to a Chinese milk producer next spring.
Baby food is probably the most sensitive product in the entire food in-
dustry. Newborns have weak immune systems and the tiniest problems
in food may bring about serious consequences. Therefore, every single
ingredient in baby formula must be made of the best base products
and produced according to the strictest quality standards. “There are
especially high requirements for the ingredients of baby food: it has to
be produced totally naturally, without colourants or additives,” explains
Jaanus Murakas, Manager of E-Piim.
In order to start producing de-mineralized whey powder, E-Piim rebuilt
its entire dairy plant and procured equipment which is unique in the
Baltic states. The construction process lasted for two years and the total
investment was 5.5 million euros, one fifth of which came as EU aid.
If everything proceeds according to plans, the large investment will be
earned back within three years, as this product is very highly valued
throughout the world.
The production volume of the plant will be 5,000 tons per year and half
of this will be exported to China. The price per ton of whey powder suit-
able for baby food fluctuates around 2,000 euros on the world market.
“The Chinese market is so immense that we could sell our entire pro-
duction there, but we want to manage the risks. There are only a few
producers of whey powder suitable for breast-milk substitute in Europe,
we are the only company in the Baltic states and the price of this prod-
uct is twice as high as that of normal whey powder,” adds Murakas.
Murakas speaks highly of the Estonian Ministry of Foreign Affairs, as
Estonian diplomats are making great efforts in Beijing in order to receive
the required recognition for export for the Republic of Estonia and the
whey powder of E-Piim. There are around 18 million babies born in
China each year, and they have to begin consuming breast-milk substi-
tute at the age of 1.5 months because their mothers have to return to
work. This year China eased its strict one-child-per-family policy and this
will increase the demand for baby food in the near future.
Baby food has been a very sensitive topic in China, which is on its way
to becoming the most influential country in the world. As recently as
2008, the leader of the organization in charge of inspecting the quality
of food had to step down because of a baby food scandal which had
caused health problems for around 53,000 children.
E-piim set to enter Chinese market with baby-milk powder
Whereas many businesses only dream of finding a way to
access the Japanese market, JOIK – an Estonian company spe-
cializing in natural cosmetics - was specially invited by a repre-
sentative of the Japanese Plaza chain after they spotted JOIK
products on an Estonian fashion blog.
“They liked the simple Nordic style of our products and the fact that
they are handmade in Estonia,” explains Kadri Mäesalu, Marketing and
Export Manager of the company. “Our products are natural, but at the
same time luxurious, pretty and great-smelling.”
Japan has become the largest export country of JOIK, followed by Fin-
land, Norway, Latvia and Sweden. JOIK products can also be found in
Paris in a pharmacy on Boulevard Haussmann.
There are plans to grow, expanding the selection of products currently
on sale, as well as the number of selling locations. Whereas today there
are 25 locations in Japan where JOIK products are sold, the company
plans to have its products in all 70 of the Plaza chain stores within the
next three years. Recently, a special edition of JOIK candles made exclu-
sively for Japanese market hit the shelves of Plaza stores.
JOIK is an Estonian natural cosmetics brand. The whole skin-care range
is paraben-free and contains no sulphates, mineral- or silicon oils or
other toxic substances. JOIK products are not tested on animals.
Success in Japan for the Estonian
natural cosmetics brand JOIK
I NEWS

At least every second young mother in Estonia
is aware of the fact that organic food is trendy,
good for nature and healthy. According to sur-
veys, over 82 per cent of Estonian consumers
would prefer to buy organic food. This is the
reason for the rapid development of the Estonian
organic food sector.
Organic farming land makes up 15 per cent of Estonian farming land,
placing Estonia in third place in the European Union. According to ini-
tial data from 2013, there are over 153,000 hectares of organic farm-
ing land in Estonia. In addition, nearly 130,000 hectares of natural
areas, where people pick berries and mushrooms, are under organic
monitoring.
Therefore all necessary prerequisites exist for the production of or-
ganic food. The demand for environmentally sustainable and healthier
foods is growing worldwide, and farmers may be certain that in the
future this trend will continue to rise.
One of the largest organic producers in Estonia – Saidafarm – received
the title of “Baltic Sea Farmer of the Year Award 2013” for implement-
ing large-scale sustainable and innovative production methods. The
farm has 1,000 hectares of land and 500 animals, and it produces 17
different dairy products, most of which are organic.
Estonian
organic
food -
a growing
trend
Text: Toomas Kevvai
/ Deputy Secretary General for Food Safety, Research and Development,
Ministry of Agriculture
STATE AND SOCIETY I

Have you noticed that a small piece of high-quality
chocolate is more satisfying than a whole bar of
average chocolate? The Estonian food industry is
small, but it continues to surprise with new exciting
flavours.
It should be clear from the start that, in comparison to neighbouring
countries and competitors, the Estonian food industry is very small. For
example, the annual turnover of the European Union food and bev-
erage industry exceeds a trillion euros, but Estonia’s share is just 1.5
billion, or approximately 0.15%. The Latvian food industry is bigger
by about a couple of hundred million euros and the Lithuanian food
industry is twice as large; the Finnish industry is seven times bigger and
the Swedish industry ten times bigger.
Yet the Estonian food industry continues to grow. Its flagships are the
milk, meat and beverage industries, which form over a half of the
entire production value. In 2012, the Estonian food industry had the
largest percentage growth in production volume in the entire Euro-
pean Union.
Internationally acclaimed cheese
Estonia is special and successful because we see our smallness as an
opportunity. Small means flexible: it is easy to test new solutions here.
This applies equally in the field of e-state services and in the food in-
dustry. Small production volumes help us to be flexible, which means
we can be successful in niche markets where small production vol-
umes and innovation matter. The innovative Estonian approach has
won international recognition and brought Estonian cheeses gold and
bronze quality awards from the German Society of Agriculture DLG.
The innovativeness of the Estonian food industry is guaranteed by
The Estonian
food industry
is small but
smart
Text: Taavi Kand
/ Head of the Trade and Agro-Food Department, Ministry of Agriculture
Since 1999, the number of Estonian organic producers has
grown from 89 organic farms to 1,500. Two-thirds of Estonian
organic producers raise animals, and this sector is characterised
by the expansion of livestock. The number of organic sheep and
cattle (especially beef cattle) has almost doubled in the last five
years. For example, in 2012 the share of organic lamb meat
made up nearly 36% of all lamb meat production in Estonia.
There are approximately 180 processors and distributors of or-
ganic production, and due to increasing demand and support
for the development of organic farming, this figure is growing
fast. In the next few years, the financial support for organic
farming under the Rural Development Plan will mostly focus on
increasing organic production and processing. Organic produc-
ers themselves are cooperating more actively in order to increase
their capacity to enter the market with their products.
In 2012, processed organic production comprised 45% of grain
and legume products, 9% of dairy products, 14% of fruits and
vegetables, 7% of ordinary bakers’ wares and confectionery
products, and 11% of meat products. New products on the
market included spirits/vodka, soy and fish products and yeast.
For example the organic bakery goods under the label “Pagar
Võtaks!” (Baker Would Take It! – ed.) and La Muu’s organic ice
cream, which both came onto the market in 2012, regularly sell
out due to high demand.
When it comes to the export of the main organic food groups
– grain products and berries – Estonia has established good con-
tacts in Latvia, Lithuania, Germany and Italy. The largest organic
grain terminal in the Baltic states, which was opened this au-
tumn, can hold up to 17,000 tons of grain, and this will help to
increase exports.
LIFE IN ESTONIA I 2013 / 2014 WINTER
I STATE AND SOCIETY
10
Toomas Kevvai

Estonian consumers, who are used to having a broad choice of prod-
ucts. The introduction of new surprising flavours is commonplace. We
tend to take it for granted that every now and then yet another special-
flavour yoghurt will appear on supermarket shelves, or that there will
be a product combining the best qualities of black and white bread.
The world’s best female inventor and functional milk
Here are some examples from recent years. About a third of the Es-
tonian food industry is the dairy industry, which has worked hard in
collaboration with scientists from the University of Tartu and the Bio-
Competence Centre of Healthy Dairy Products. This collaboration has
led to the development of two product lines with high added value:
Hellus milk products, enriched with the bacterium Lactobacillus fermen-
tum ME-3®, produced by AS Tere, and Harmony cheese, enriched with
Lactobacillus plantarum Tensia®, produced by E-Piim.
The Hellus product range helps to boost the body’s defence mecha-
nisms, and the Harmony “heart-cheese” is believed to lower blood
pressure. Both of these products have won international recognition as
innovative products. One of the scientists – Professor Marika Mikelsaar
– received a gold medal for global female inventors and innovators for
her discovery of the ME-3 bacterium.
Smart food
E-Piim, the producer of Harmony cheese, is also the first producer in the
Baltic states of high quality de-mineralized whey powder (Demin 90),
which is used in breast-milk substitutes. Producing de-mineralized whey
powder is a great opportunity to use the leftover whey from cheese pro-
duction. Just a few years ago, whey was considered a nuisance which
was placed in animal feed or even used in cleaning solvents. Industries
often had to pay to get rid of it. Today the whole world is open to buy-
ing whey and the company is planning to access the Chinese market.
Consumers all over the world are becoming increasingly informed and
demanding about food. A demanding consumer offers opportunities
for smaller producers. This suits the Estonian food industry and local
producers. Consumer expectations and wishes are studied thoroughly
all over the world, and the following trends are clear: food is expected
to offer pleasure, be healthy, nutritious and comfortable to consume,
and should be produced ethically and sustainably. In order to meet
all of these demands, the food industry must develop and innovate
continuously.
The importance of support
Through various measures, the European Union taxpayers have sup-
ported development work and investments in the food industry. After
all, the aim of policies at the EU level is to enable member states to pro-
duce products with high added value which are competitive in export
markets. For Estonia, this goal is perhaps more important than for other
member states, because our own domestic market is small. Hence, in
the next few years investments in the food industry will be made via the
new Rural Development Plan.
The Estonian food industry is able to meet its domestic needs for the
main food products, and even more; for example, our dairy production
meets 170% of our own needs. Therefore, the Estonian food industry
exports approximately a third of its production and this is predicted to
grow in the future. We have enough tasty food to share with others.
Our products for domestic and foreign markets are special because they
include a whole lot of science and know-how.
Taavi Kand

12 LIFE IN ESTONIA I 2013 / 2014 WINTER
Katre Kõvask:
Premia Foods owes its
market leader status
to a great team
At a time when gender equality is
a subject of heated social debate and
there is talk of establishing gender
quotas for corporation managers in the
European Union, Premia Foods is chaired
by a young and dynamic Estonian woman,
Katre Kõvask.
Life in Estonia visited her in the last days
of 2013 to talk about the past, present
and future of the corporation.
I COVER STORY

First, please tell the readers a little about yourself.
What is your educational background and profes-
sional history before becoming the Chair of Premia
Foods?
I graduated from the University of Tartu in 1998 with a degree in Mar-
keting and Foreign Trade. In 2006, I became the Marketing Director and
a board member of the AS Premia Tallinn Cold Storage Plant and, in
2009, a board member of Premia Foods. Last May, I was appointed the
Chair of Premia Foods. Hence, I have been involved with the company
for seven years.
As chair of a large corporation, you must have
stressful and long working days. How do you
charge your batteries outside working time?
I try to play as much golf as possible, do sports, read professional and
other literature and travel. My work also involves a lot of travel and I
tend to spend half a week in Estonia and the other half in a target coun-
try connected to our activities. During holidays, I try to find the time to
visit more exotic countries.
What kind of personal characteristics have
helped you in your career?
In a management position, one always benefits from rationality in de-
cision-making, understanding the business and, of course, dedication.
These are the principles I have tried to follow. In addition, I would like to
emphasize the importance of a good team: Premia would not be a mar-
ket leader today without dedicated professionals and great team spirit.
What kind of a company is Premia Foods and
how has it developed into a modern corporation?
Premia Foods is a publicly traded food company on the Nasdaq OMX
Tallinn Stock Exchange. We are active in six states – the Baltics, Russia,
Finland and Sweden – and in five target markets in three different busi-
ness segments: ice cream, chilled fishery products, and frozen foods.
Our main labels are Premia, Eriti Rammus, Heimon Gourmet, Väike Tom,
Sahharnõi Rozhok, Baltiiskoje, Klasika, Maahärra, Viking, Natali and
Bueno!. I am proud to say that Premia Foods is among the leading la-
bels in all business segments in the target markets. Approximately 40%
of the turnover of Premia Foods comes from fish and fishery products,
nearly 37% from ice-cream and the rest from the frozen foods business.
The company is managed from Tallinn and we employ approximately
750 people. Export makes up nearly 70% of the turnover of Premia.
The history of Premia Foods in Estonia dates back to the founding of the
Premia Tallinn Cold Storage Plant in 1956. This predecessor of the com-
pany began ice-cream production in 1956, being the first and by now
the oldest ice-cream producer in Estonia. Today’s management came
to office in 2006 during an ownership change and, since then, Premia
has grown from an Estonian ice-cream producer to a large international
food corporation, and is among the market leaders in Estonia, Latvia,
Lithuania, Finland and St Petersburg, Russia.
Please tell us more about the strategy of
the corporation. Where are you active and
do you have enlargement plans?
What are your largest export markets?
Our aim is to be among the three leading labels in all of our target mar-
kets. This is already a reality: Premia is the largest ice-cream producer
in Estonia, with about a 40% market share (almost double the share
of the next largest producer); in Finland, we are the leading or the sec-
ond-leading producer of packaged fish products; in Latvia, we are the
second largest ice-cream producer, and we rank between second and
fourth place in Lithuania. We are third in the St Petersburg ice-cream
market and between first and second in the frozen goods market of the
Baltic states. As I said, export makes up 70% of Premia’s turnover and
our competitiveness in export markets is undoubtedly critically impor-
tant. But we see development potential in our business segment in all
target markets. Therefore, there are plenty of challenges ahead.
What are the strengths of the company?
Premia’s strengths are our brands and our people. One of the biggest val-
ues of Premia Foods is our team. The different cultural backgrounds and
the extensive experience of the whole team have been essential ingredi-
ents in outstanding product development and the continuing popularity
of our labels. And although our great team and team spirit are values
whicharenotdirectlyvisibleonbalancesheets,wehaveachievedexcellent
economic results precisely because of the dedication of all staff members.
What are the key aspects which help the company
to develop and stand out from the competition?
We are focused on building our brands, as we see a competitive edge
here for Premia. This, in turn, places very high demands on our prod-
uct development and marketing and sales activity. Product development
must make our development sustainable and this is something we focus
on all year round in all business segments. As markets and products
are very different, it is important to employ the best professionals and,
therefore, the team plays a very great role in guaranteeing our success.
The central focus of our business activity is on brands which are accepted
and loved by consumers, children and adults alike. Premia Foods consid-
ers it very important to meet the expectations of our consumers through
strengthening existing brands and introducing new ones. Yet the main
characteristic is dedication to high quality and innovation, as these are
the keywords which help you to stand out from the competition.

You mentioned that markets and products vary.
Are there different trends in different regions?
Premia has three different business segments and five different target
markets. All of those markets and segments are different, specific and
competitive. The simplest example can be given with ice-cream: in Es-
tonia people like the simple Scandinavian style in taste and colour of
ice cream and its packaging, but in Lithuania it is totally different and
people like the most colourful and sweetest products. The market in St
Petersburg is extremely conservative when it comes to flavours and pre-
ferred labels, and our strengths there are the tested recipes and some of
the most popular and established labels in the area.
Let’s talk about different segments and begin with
ice-cream. All Estonians know Premia ice creams:
adults remember “Eskimo” ice-cream from their
childhood, and children today love “Väike Tom” and
“Lotte”. Today there is a growing choice of labels
on the market, offering something for every taste.
What are the ice-cream trends and where is Premia
going in this segment?
80% of our product range are ice-creams and two-thirds of ice-cream
produced by Premia is exported. Premia ice-creams do not contain corn
syrup, transfats, preservatives or artificial colourings.
It is true that the ice-cream market has become very diverse in the
Baltic states and the competition is fierce. Since the economic crisis,
more expensive products have become available, with either exotic or
higher quality ingredients. This of course is welcomed by ice-cream
lovers and producers. There is room for product development and
each summer brings new exciting discoveries. Only time will tell where
the ice-cream market is headed, but it is clear that people are looking
for ever more thrilling tastes and formats. At the same time, the brand
Eriti Rammus (especially rich – ed.) continues to lead in the Estonian
ice-cream market. People love its rich taste, which is very pure and of
high quality. Estonian ice-cream lovers prefer quality and, on the basis
of this, Premia hopes to offer pleasant surprises to ice-cream fans in
the future.
Recently Premia Foods invested 750 thousand euros
to modernize the equipment of its ice-cream plant
in Tallinn. What was the reason for and nature of this
investment?
As part of the investment, we purchased a production line for pop-
sicle ice-cream from Tetra Pak for our Tallinn plant. This enables
us to increase the hourly speed of production by 50%. In addi-
tion, the new production line helps to save on labour and en-
ergy costs and provides opportunities for product innovation.
Premia has also invested in a new cone ice-cream packaging machine,
which enables us to double the packaging speed of the leading ice-
cream cones on the market, especially the ones sold under the label
“Eriti Rammus”. This has led to a growing production volume and
more effective production in the cone ice-cream line. The basis for
Premia’s success in the ice-cream market is continuous innovation and
the growth of production efficiency. Premia’s strength are our valuable
brands, which have made us a market leader in the ice-cream market in
Estonia and the other Baltic countries.
Those investments were essential in order to strengthen our position
and guarantee sustainable development. Among other things, they also
give us the opportunity to please our customers in all target markets
with new exciting products in the near future.
Premia Foods is a publicly traded food company on the Nasdaq OMX
Tallinn Stock Exchange.
I COVER STORY

All of the production units and target markets
of Premia are situated by the sea. People who live
in coastal areas usually cannot imagine their lives
without fish. Fish and fishery products are
the second largest business segment of Premia.
The competitive advantage of Premia in this segment is vertical integra-
tion: the control of the entire value chain, from fingerlings to the sales
of the end product. Our fish farms are located in the mountain lakes of
northern Sweden and in the Finnish archipelago near Turku. Fish pro-
cessing takes place on Saaremaa and in a factory near Hämeenlinna in
Finland. The end product is mostly sold in Finland, but also in the Baltic
countries. We farm rainbow trout and common whitefish, which cover
about 40% of our entire raw material demand. The rest, mostly salmon,
we buy from Norway. In Finland, Premia products are sold under the
label Heimon Kala, which is a long-established brand in Finland. In
the Baltic states, the products are available under the Viking brand.
As mentioned, we share first place in Finland in the market of chilled
fishery products, and we are continuously working on product develop-
ment to offer a wider selection to customers. In the last couple of years,
we have worked on developing the products of the Horeca segment
and our turnover in this sector grew over 80% last year.
Research indicates that frozen vegetables are
healthier than fresh vegetables available in our
supermarkets, because the vegetables which are
frozen are fresher at the point of freezing.
Frozen products make up the third largest segment
of Premia and most households know them well.
What is the product range of Premia’s frozen
products like?
In the Baltic states, Premia sells the entire range of frozen products,
from vegetables to meat and fish products, and our most famous labels
in Estonia are Maahärra, Pealinna and Viking. We purchase all of
our frozen products from long-term partners and, as with ice-cream
and fish, we pay a lot of attention to quality and product development
in this segment. Frozen products have many advantages in everyday
life: when time is limited, it is easy to prepare a soup for dinner us-
ing our vegetables and frozen meatballs, and it should be mentioned
that frozen vegetables still contain all their vitamins. Or an equally tasty
meal can be made combining vegetables and Viking fish products. The
popularity of the label Maahärra and the other aforementioned labels
shows that people have found them in the shops and approve of their
quality and taste. This inspires us to bring more new and exciting taste
combinations onto the market.
Premia has many partners, including other large
producers in Estonia, such as TERE. Why do you need
this cooperation and what products are involved?
Our collaboration with Tere covers several segments. One of the most
exciting projects has been the development of the product range Hel-
lus, during which we brought an ice-cream containing the ME-3 bacte-
ria onto the market. There are other cooperation projects: for example,
with Kalev we have expanded their Mesikäpp brand and in St Peters-
burg we have started a project with the confectionery producer Krup-
skaja in order to expand their label Mishka na Severe. Those kinds of
projects offer a unique opportunity to bring products onto the market
which have clear target groups and to give an impetus to product devel-
opment, using advantages provided by already existing strong brands.
Why should consumers choose Premia products?
Premia is and will continue to be a sign of quality, innovation and caring.
These are the thoughts which underpin the development of our new
products and labels. In this way, we create the opportunity for people
to choose our products whilst doing their daily shopping.
80% of Premia’s product range are ice-creams which do not contain corn syrup,
transfats, preservatives or artificial colourings.

Senior researcher Epp Songisepp has received international
recognition for her work in developing the patented probiotic
bacterium lactobacillus plantarum TENSIA that is used in
the Südamejuust and lactobacillus plantarum E-98 that is
used in the silage additive NordSil.
16
I SCIENCE & INNOVATION
Text: Holger Roonemaa / Photos: Scanpix
Tartu – a town of
good bacteria
In the last few years, the Bio-Competence
Centre of Healthy Dairy Products (BioCC),
based in Tartu, has discovered and researched
previously unknown Lactobacillus strains and
made them work for the benefit of consumers.
In addition to having been nominated as
the best Tartu company some years ago,
BioCC is the owner of 20 patents, and 11
patent applications are pending in Estonia,
Europe, the USA, Russia, Korea and Japan.
The company, its products and staff have
received several international awards.

"There are especially high requirements for the
ingredients of baby food: it has to be produced
totally naturally, without colourants or additives,”
says Jaanus Murakas, Manager of E-Piim.
Estonian company to
supply food for Chinese
babies   
At the end of 2013, the Estonian dairy
producer E-Piim started a new whey pro-
cessing line, which will enable the com-
pany to start exporting high quality whey
powder to China in the near future.
Whey powder is mainly used in breast-
milk substitutes for babies. “It is interest-
ing that today the global lack of protein
has led to a situation where whey, the
leftover liquid from the cheese produc-
tion process, is a more valuable product
than cheese, which has always been a
product with high added value,” says
Tiina Saron, Head of the Estonian Dairy
Association. “Nobody wanted whey
before and now everyone wants whey,
more than cheese,” she explains.  E-Piim
is the only producer in the Baltic states
with technology based on electrolysis,
which separates salt from whey and
makes it possible to produce pure whey
protein. Thus, E-Piim is able to create a
very high quality protein which is one in-
gredient in breast-milk substitute.
Of course, the most attractive market
for whey powder is China, the biggest
country in the world, where millions
of babies are born each year. “There is
huge demand for baby food in China
and, once all the administrative obsta-
cles have been removed, we will have
the opportunity to export whey powder
to China,” says Saron.
BioCC has signed a license agreement with Starter
ST LLC, which carried out product development and
developed NordSil, a silage additive containing E-98.
Who makes up BioCC?
• Estonian University of Life Sciences
• University of Tartu
• Dairy cooperative E-Piim
• Estonian Cooperative of Breeders
• Starter ST Plc
E-98 has received the Gold medal in
the field of biotechnology in KIWIE
2013 and a special recognition at
the 4th Bi-Annual International
EUWIIN Exhibition, Conference &
Award Ceremony.
We all know that the prevalence of chronic dis-
eases is an issue of rising importance today and
treatment is expensive,” says Ene Tammsaar,
Chair of the Board of BioCC. There are various
ways to promote and maintain health and pre-
vent the onset of disease; innovation in the food
industry is one example. “I am talking about
developing quality functional foods which help
to maintain good health,” says Tammsaar, who
adds that, in contrast to the treatment of chron-
ic diseases, consuming functional foods helps to
lower the risk of disease development and boost
the physiological functions of the body. “How-
ever, creating functional foods is not just about
dairy plants starting to produce better milk; it
begins with animal breeding, monitoring their
health and developing better feeds and feed ad-
ditives. The other direction is adding probiotic
bacteria to dairy products and creating function-
al foods, as well as creating new feed additives
and animal probiotics.”
One such bacterium, which BioCC studies and
which is already present on the market in vari-
ous products, has the scientific name Lactoba-
cillus plantarum E-98 NCIMB 30236, or simply
E-98. “Hay silage is the main fodder for cattle,
but it is difficult to guarantee high quality,” says
Tammsaar. This is where the Lactobacillus E-98
isolated by BioCC scientists comes into play, as it
improves the fermentation of silage. “We have
discovered that E-98 quickly produces a lot of
lactic acid, which helps to create an acidic envi-
ronment in silage faster and preserves the fod-
der so that there are fewer butyric acid-produc-
ing bacteria (clostridia) and, therefore, the silage
has better value as feed,” explains Tammsaar.
It may sound complicated. Suffice it to say that
the bacterium studied by Tartu scientists has re-
ceived the green light from the European Food
Safety Agency (EFSA), and it is listed in the Eu-
ropean Union Register of Feed Additives in the
category of technological additives, under func-
tional groups of silage additives. This means that
feed additives containing E-98 may be sold in
the European Union member states without fur-
ther testing. “In the case of the bacterium E-98,
we can claim that it is the greatest achievement
in agricultural innovation in Estonia and the Bal-
tic states,” Tammsaar states proudly.
The bacterium E-98 is today also part of produc-
tion. BioCC has signed a license agreement with
Starter ST LLC, which carried out product devel-
opment and developed NordSil, a silage additive
containing E-98. “It is currently available on the
Estonian market, but we hope to take the Esto-
nian product to our neighbouring markets: Rus-
sia, Finland, Latvia, Lithuania and Belarus,” says
Tammsaar.
Ene Tammsaar

18 LIFE IN ESTONIA I 2013 / 2014 WINTER
As the quality of animal fodder increases
thanks to the bacterium E-98, milk from
the cows also has a higher quality, which
leads to better quality dairy products on
our tables. Another significant discovery of
BioCC in the world of bacteria becomes im-
portant in this final phase: healthier food.
The bacterium Lactobacillus plantarum
TENSIA, or simply TENSIA, was isolated by
Estonian scientists from a healthy Estonian
child and the biggest value of this bacte-
rium is that it produces compounds which
lower blood pressure. “TENSIA produces
special peptides and other compounds
which have been found to relax blood ves-
sels. The strain helps to protect the human
body from oxidative stress and increases
the number of useful lactobacilli in the
gut,” explains Tammsaar.
At first the scientists did not assume that
their research would eventually lead to the
discovery of a lactobacillus that would sup-
port the function of the cardiovascular sys-
tem and lower blood pressure. “When we
started, we proposed that we should pro-
duce a cheese which would protect against
infections and diseases and fight listeria,
salmonella and other bacteria present in
food products”, remembers Tartu Univer-
sity Professor Emeritus Marika Mikelsaar,
the former head of the working group.
“Initially, we chose 30 special lactobacilli
strains existent in human intestines. Later
Good for the health
Products enriched with pro-biotics are also pro-
duced by other companies, such as AS Tere,
whose yoghurts, kefirs, milks and cheeses of the
product line “Hellus” contain the lactobacillus
fermentum ME-3 and Omega 3 fatty acids or,
in other words, microscopic capsules of fish oil.
This lactobacillus was discovered by a scientist
at the University of Tartu and has both antimi-
crobial and antioxidant effects.
The production of Dr Hellus products was
preceded by long-term collaboration in inves-
tigating the bacterium at the Institutes of Mi-
crobiology and Biochemistry, which was led by
Professors Marika Mikelsaar and Mihkel Zilmer.
The health benefits of ME-3 are numerous and
the list of its useful properties long and awe-in-
spiring. This culture improves liver and intestine
functioning, increases resistance to chronic dis-
eases and reduces excessive blood cholesterol.
Among its many benefits, the bacterium stem
even has potential uses in the rehabilitative
treatment of stroke patients.
At the SIAL 2008 fair in Paris in October, the
Dr Hellus yoghurts, with their Lactobacillus fer-
mentum ME-3 and Omega 3 fatty acids, and
their glazed cheeses, which contain Lactobacil-
lus fermentum ME-3, were selected as part of
the fair’s official innovative and trend-setting
range of products in the category of products
with original recipes and health benefits.
The healthy Südamejuust can be eaten on its own or
used in the preparation of various healthy dishes.
The Grand Old Lady of Estonian microbiology, Professor
Marika Mikelsaar, is one of the founders of the ME-3
bacterium that is used in the Dr. Hellus dairy products
series.
the research continued on a trial-and-error
basis in order to determine the best strain.
We ended up with the pro-biotic lactobacil-
lus strain Lactobacillus plantarum TENSIA,
which did not perish during cheese produc-
tion and stayed viable. The bacterium’s ability
to survive in cheese was of determining im-
portance for the pro-biotic.” In the scientific
experiments it became evident that TENSIA
would not help against salmonella as expect-
ed; instead, the beneficial effect on blood
pressure was discovered.
During the years, numerous clinical studies
have been carried out with TENSIA in order
to prove its functional characteristics. For
example, the experimental group consumed
cheese containing the bacterium and the con-
trol group consumed regular cheese without
the bacterium. The results show that cheese
with TENSIA particularly helps people with
elevated blood pressure, people with systolic
blood pressure higher than 130mmHg, but
who have not been diagnosed with arterial
hypertension. “This means they do not have
a problem yet, but they need to watch their
health, and change their diet and lifestyle,
e.g. get more exercise,” explains Tammsaar.
Clinical studies confirm that people with this
condition benefit from eating a daily amount
of 50 grams of Südamejuust (heart-friendly
cheese – ed.) for three to four weeks in or-
der to maintain healthy blood pressure levels.
“At the same time, we have proved that con-
sumption of Südamejuust does not increase
the level of cholesterol or LDL cholesterol (i.e.
‘bad cholesterol’) or lead to an increase in
body weight,” she added.
Lactobacillus plantarum TENSIA
has received several awards: the
first prize and the Finnish Quality
Innovation Award 2010, the Gold
Prize at the Korean International
Women’s Intervention and Exposi-
tion (KIWIE) in 2009 and the first
prize in 2010, and a special award
of the Innovation for Enterprise,
Science and Technology in Eu-
rope 2009 (Helsinki, Finland) by
the EUWIIN (European Union of
Women Inventors and Innovators
Network).

19WINTER 2013 / 2014 I LIFE IN ESTONIA
An invention of
the University of Tartu
determines the quality
of milk at the milking stage
Recently, the University of Tartu received
a European patent which makes it pos-
sible to determine traces of antibiotics in
milk during the milking process, thereby
decreasing the amount of waste milk and
reducing large production losses.
“One of the main problems for milk pro-
ducers is cattle illnesses, which have an
impact on the volume and quality of milk.
Those illnesses are mostly treated with
various antibiotics, which also reach the
milk yielded by cows during treatment.
In order to prevent traces of medication
from reaching human food, the milk yield-
ed by cows during treatment and during
the following ban period is utilized, which
means large production losses. We have
approximately 30,000 tons of waste milk
in Estonia each year,” explains Toonika
Rinken, leader of the research group and
Senior Researcher of Colloid and Envi-
ronmental Chemistry at the University of
Tartu.
This innovation makes it possible to iden-
tify traces of the most commonly used an-
tibiotics in milk during the actual milking
process. “The device makes it possible to
identify cases where the level of medica-
tions or degradation compounds in yield-
ed milk is too high and to remove such
milk fast,” Rinken explains, adding that
this enables them to avoid large volumes
of milk being contaminated with residues
of medications and to improve the quality
of milk produced. It also leads to reduced
costs related to waste milk.
TENSIA patent
“Isolated microorganism strain *Lactobacillus plantarum* Tensia DSM 21380 as an-
timicrobial and antihypertensive probiotic, food product and composition comprising
said microorganism and use of said microorganism for preparation of antihypertensive
medicine and method for suppressing pathogens and nonstarter lactobacilli in food
product”, inventors Epp Songisepp, Marika Mikelsaar, Merle Rätsep, Mihkel Zilmer, Pirje
Hütt, Meeme Utt, Kersti Zilmer, Janne Üksti, Siiri Kõljalg. Patent owner: Bio-Competence
Centre of Healthy Dairy Products (Tervisliku Piima Biotehnoloogiate Arenduskeskus OÜ).
EP2309870 is validated in the following countries: European patent EP2309870, is vali-
dated in the 11 countries Estonian patent EE05340; Russian Patent RU2477750.
The probiotic Harmony™ Südamejuust was
created in cooperation between the Bio-Com-
petence Centre of Healthy Dairy Products, the
University of Tartu, the Estonian University of
Life Sciences and the company E-Piim. To use
the bacterium, BioCC has signed a license
agreement with E-Piim Tootmine AS, the
company which produces Südamejuust with
TENSIA.
Jaanus Murakas, Manager of E-Piim, ex-
plains that the Südamejuust is a common
Edam-type cheese which is made special by
TENSIA bacterium. The cheese is in shops in
small packages of 150 grams. Südamejuust
has been named the Best Estonian Dairy Prod-
uct in the contest “The Best food in Estonia
2010".
Tiina Saron, Head of Dairy Union, an um-
brella organisation for Estonian dairy produc-
ers, says that although no pro-biotic product
has received an official certificate from the
European Union, the Moscow Food Institute
carried out clinical research on Südamejuust
and, on the basis of those results, they can
claim that this cheese has a beneficial effect
on health. This means that Südamejuust is
sold as a functional food in Russia in specially
marked packaging, and on the Russian mar-
ket it can be officially claimed that Südame-
juust improves your health. “I went to Rus-
sia some weeks ago and saw that there was
a large advertising campaign going on for
Südamejuust,” says Saron. According to her,
the Russian market offers great opportunities
for Estonian dairy producers because, firstly, it
is much larger than the domestic market and,
secondly, due to proximity, it is easier for Esto-
nian businesses to access the Russian market
than, for example, the German market. “We
are exporting practically all of our dairy prod-
uct groups to Russia, but mostly cheese and
yoghurts.”
Jaanus Murakas, Manager of E-Piim,
explains that the motivation for
putting a new, pro-biotic cheese into
production was the need to be more
competitive.

Estonia makes its way
onto the world map with
new cancer medicationText: Holger Roonemaa
Photos: Atko Januson and Jaanar Nikker
In a suburb of Tallinn, next to the Skype Estonia
Development Centre, a group of focussed sci-
entists are working on a drug candidate called
Virexxa. If all goes well, this drug meant for
treating rare forms of endometrial cancer will
reach the market within the next two years. A
comparison with Skype is not arbitrary, as this
parallel was drawn by Indrek Kasela from the
Amber Trust Foundation, one of the organiza-
tions that has invested in the development
of this drug candidate. The drug candidate is
being developed in collaboration with Kevelt
Ltd., Tallinn University of Technology and
the North Estonian Medical Centre.
Life in Estonia visited the Competence Centre for Cancer Research to find
out which of their projects may reach the world market in the near future
According to Riin Ehin, the Competence Centre for Cancer Research has
developed 28 molecular genetic tests which aim to predict genetic risk for
certain types of cancer and adjust treatments for cancer.

CCCR’s partners are:
Tallinn University of Technology
University of Tartu
North Estonia Medical Centre
Trial Form Support TFS AB
CeMines Estonia Ltd
Cambrex Tallinn Ltd
Kevelt Ltd
Celecure Ltd
Inbio Ltd
IB Genetics Ltd
Protobios Ltd
SIA Pharmidea
Quattromed HTI Laborid Ltd
Genecode Ltd
When the current clinical trials of Virexxa are
completed and the drug is produced in Tallinn,
it will mark a significant step for the entire
Estonian pharmaceutical industry, directly and
symbolically. Estonia will be the first former
eastern bloc country able to produce drugs
which are certified by the European and US
markets. However, Virexxa is not the only can-
cer drug candidate in development in Tallinn.
The Competence Centre for Cancer Research
(CCCR), which aims to develop cancer drug can-
didates and diagnostic platforms, was founded
in Tallinn nine years ago in cooperation be-
tween Estonian universities, Enterprise Estonia
and several local and foreign biotechnology
companies. “A significant expertise in cancer
research already existed in Estonia, which is
why it was considered reasonable to bring it
all under one roof,” explains Andres Valkna,
Scientific Expert of CCCR. He explains that the
aim of CCCR is not just academic research, but
also practical: to develop the commercial value
of cancer technologies. Simply put, this means
developing and patenting drug candidates, as
well as developing, licensing and selling services
necessary for diagnostics.
A brief explanation of how the pharmaceu-
tical industry works is necessary. Normally,
the process of developing a new medical
drug lasts 10-15 years, from the discovery
which forms the basis for development to
receiving a license to market the drug. The
whole process costs millions of euros. Very
broadly, this development process can be
divided into two parts: pre-trial clinical re-
search and clinical trials.
The general business model of small compa-
nies such as CCCR is to sell their projects in
one phase or another to large pharmaceuti-
cal companies. The price of the transaction
depends directly on which phase of research
the drug is in at the time of the transaction.
“Drug candidates that have passed clinical
trials cost significantly more than drug candi-
dates that are still in the pre-clinical research
phase,” explains Valkna. Therefore, the main
strategy of biotechnology companies is to do
the homework for the giants, in other words
to sell drug projects which have already
passed clinical trials. The main reason is that
the clinical trial phase is very expensive, time-
consuming and risky.
Because the development of a drug candidate
takes a lot of time, developers must always
have several projects in different phases in the
pipeline. “Some work always needs to come
in, something always has to be in develop-
ment, and something always has to come out
of the pipeline,” says Valkna.
Currently there are fourteen projects in dif-
ferent phases of development in the CCCR
portfolio. Whereas some projects are still at
the basic research level, other drug candidates
are already in the phase of clinical trials. For
example, the first project to be sold was a
cancer drug candidate which was at the pre-
clinical development stage. A project initiated
by a spin-off company established by scientists
of the Tallinn University of Technology was
bought by the US stock company Cambrex,
founded by Alfred Nobel.
CCCR invites all researchers, universities and
entrepreneurs interested in this field to con-
tact them. CCCR is definitely looking for new
partners with new ideas. CCCR considers add-
ing new projects to the portfolio to be very
important.

22
LIFE IN ESTONIA
Genes serving scientists
Another CCCR project that has proven to be
successful comes from the field of diagnos-
tics. CCCR has developed 28 molecular genetic
tests which aim to predict genetic risk for cer-
tain types of cancer and adjust treatments for
cancer. “In certain kinds of cancer, some drugs
are unsuitable, because instead of helping
they make the patient’s condition worse,” ex-
plains Riin Ehin, Chair of the Board of CCCR.
With the help of those tests, Estonian hospitals
have been able to offer better treatment to over
600 patients. If the test is prescribed by an on-
cologist, it is also paid for by the National Health
Insurance Board. Currently, the test is used for
the diagnosis of breast, lung and intestine cancer,
and the CCCR is continuing to develop the test
for other forms of cancer. The potential impact
of the test is best illustrated by the fact that three
years ago CCCR received a special quality innova-
tion prize for this project from the Finnish presi-
dent, Tarja Halonen.
What does the future hold?
Let us look ahead to the most exciting projects
of CCCR which will start to take shape in the
next few years. We have already mentioned
Virexxa, which is being developed by Kevelt
Ltd., one of the partners of CCCR. In addition,
the same company has another drug candidate
for a rare form of cancer in the phase of clini-
cal trials called Oncohist, which is meant for
the treatment of two rare types of leukaemia.
One of the joint strategies of CCCR and its part-
ners is to focus on the development of drug can-
didates for rare cancer types based on clear logic.
“Rare diseases are called orphan diseases, and
both European and US medical agencies have
made the development of drug candidates for
the treatment of those illnesses much easier,”
explains Riin Ehin. When a drug candidate has
already proven to be very effective during the
first clinical trials, and if a drug for precisely that
type of cancer does not exist on the market, it
is possible to bring it to the market. An orphan
drug candidate meant for the treatment of a rare
type of cancer is a good opportunity for smaller
companies because it enables them to develop
their drug candidate faster, at a better price, and
the competition from corporations is not as high.
There is also a social and human aspect involved:
CCCR and its partners consider it important to
find treatment solutions for those people who
suffer from rare cancers that do not have any
particularly effective treatments.
Just as Kevelt is set to bring drugs for the treat-
ment of rare types of cancer to the market with-
in the next couple of years, another partner of
CCCR – Protobios Ltd – has also reached the
phase of clinical trials. Protobios approaches can-
cer from another direction. The researchers of
the company have developed a unique analysis
method which is used to look for cancer mark-
ers in the patient’s blood. “For example, in breast
cancer, cancer markers circulate in the patient’s
blood long before mammography shows a posi-
tive result. With our analysis, it is possible to diag-
nose breast cancer in an extremely early phase,“
explains Ehin.
Genetic diet plan
Another partner of CCCR, IB Genet-
ics, has developed the trademark
FiguraGen, which is not linked to
the treatment or diagnosis of can-
cers, but works on developing life-
style tests. For instance, FiguraGen
offers a health-risk assessment,
which is linked to weight problems.
About half of the population is over-
weight or obese. The FiguraGen test
can be bought at a pharmacy or via
the web. A person can take a scrap-
ing from inside the mouth and send
it off for laboratory analysis. The ge-
netic analysis then forms the basis for
researchers to develop individualised
nutritional recommendations and
nutrition experts compile a personal-
ised menu. Other tests can show lac-
tose intolerance and also risks linked
to deficiencies of certain vitamins.
Each person then has the choice of
whether and how to act upon the
information. At the moment, Figura-
Gen offers this test kit only on the
Estonian market, but the company
is negotiating with potential repre-
sentatives in other countries.
www.geenitestid.ee

LIFE IN ESTONIA 23
Tallinn University of
Technology searches for
drugs for serious illnesses
Erkki Truve, Vice Rector for Research
at the Tallinn University of Technol-
ogy, told Life in Estonia about three
projects which are all at an initial
stage but, if successful, would allevi-
ate the conditions of thousands of ill
people around the world.
The first project, developed at the
Centre of Excellence in Chemical
Biology by Margus Lopp, Mati
Karelson and a virologist from the
University of Tartu, Andres Merits,
involves the design and synthesis of
a whole family of new molecules that
have antiviral effects. “In the long
term, this project could grow into a
treatment for such viruses as HIV and
hepatitis C,“ says Truve.
The second project, headed by Pro-
fessors Tõnis Timmusk and Peep
Palumaa, is in the field of neurobi-
ology. In cooperation with the small
Tallinn-based company Genecode
Ltd, Timmusk’s lab is studying mol-
ecules which prevent nerve cells from
dying. “Neurodegenerative diseases,
such as Huntington’s and Parkinson’s,
come into being because of dying
nerve cells.“
“Peep Palumaa heads another pro-
ject, which is specifically studying Alz-
heimer’s disease,“ continues Truve.
Alzheimer‘s develops when specific
protein tangles develop between hu-
man brain cells, and this is caused by
certain metals. As a result, neurons or
nerve cells in the brain start to die.
Palumaa’s research is about prevent-
ing the accumulations of metals in
the tangles. “He is studying the pro-
cess as a chemist, but the outcome
also has a clinical dimension,“ says
Truve.
Clinical trials of this method are currently ongo-
ing in Estonian hospitals and the method is used
primarily when a doctor suspects a false positive
or a false negative mammography result. “Our
test helps to adjust the mammography result,”
says Ehin. She points out several advantages of
the marker test. Firstly, it is possible to diagnose
cancer or the recurrence of cancer with a simple
blood test. Secondly, it is possible to screen the
population sufficiently. The third reason is the
lower price.
Fourthly, mammography involves only a small
amount of radiation. “The early diagnosis is ex-
tremely important as it means better chances
of recovery,” explains Ehin, and adds that often
patients receive a cancer diagnosis when there
has already been metastasis and the cancer has
spread throughout the body.
Innovative approach
starves cancer
Once the cancer has developed, there are many
solutions to help to fight it. Another partner of
CCCR - Celecure Ltd – is developing a drug
candidate which approaches cancer indirectly.
“In a healthy adult body, no new blood vessels
develop, but new ones are created, for example,
when a wound heals. Cancer takes advantage
of such a situation and, similarly to healing a
wound, it stimulates the growth of the vessels
surrounding the cancer,” Ehin explains. Without
new vessels the cancer cannot grow as it will be
without oxygen and nutrition. Celecure research-
ers are developing a drug candidate which stops
the development of new blood vessels around
primary cancer.
Cancer vaccine hidden in plant virus
Kevelt Ltd is cooperating with the researchers of
the Tallinn University of Technology to develop a
therapeutic vaccine against melanoma, in other
words a vaccine which besides prevention also
has healing properties. The scientists chose to
focus on melanoma, as the human body has dif-
ficulties in recognizing this difficult form of skin
cancer. This is due to the fact that, for the im-
mune system, the development of a melanoma
resembles a process which is similar to tanning
and by the time the body realizes that something
is wrong, the cancer has already developed too
far. In order to help the body and to activate it
to fight the cancer, scientists are using a “Trojan
horse”. “They take a plant virus capsule, remove
the RNA and replace it with information from a
melanoma. Subsequently, the capsule is injected
into a human circulatory system and, as the body
recognizes something alien, it automatically ac-
tivates the immune system and kills the virus,”
explains Ehin. When trials demonstrate its ef-
fectiveness with the melanoma, it can be devel-
oped for the treatment of other types of cancer.
Killercellshaltedattherightmoment
In cooperation between the two largest hospitals
in Estonia – the North Estonia Medical Centre and
the Tartu University Clinic - and Celecure Ltd, a
technology is being developed which will help to
make the treatment of blood cancers more effec-
tive. Most readers are unaware of the fact that
human blood contains natural killer cells. Natu-
ral killer cells play a big role in several processes
linked to the treatment of blood cancers. CCCR
and its partners have developed a method that
makes it possible to grow natural killer cells in ar-
tificial conditions in clinically adequate quantities.

All genetic roads lead
to Estonia
Text: Arko Olesk / the daily newspaper Postimees & Tallinn University
Photos: Lauri Kulpsoo
Tartu, Estonia, is the place to turn to when a nation
tries to come to grips with the eternal question
“Where do we come from?”. With the help of genes,
the scientists at the Estonian Biocentre have traced
the ancient migration of people, helping to establish
the origins of, among others, Native Americans and
Aboriginal Australians.
Mait Metspalu

You can find all of human history contained
in the basement of this modern science
building. Standing in the busy main street
of Tartu, not far from other buildings of the
oldest and most renowned university of Es-
tonia, the University of Tartu, the Estonian
Biocentre houses tens of thousands of gene
probes from various populations around
the world. These genes tell stories that no
book or person has been able to tell so far:
tales of love and trekking at the dawn of
mankind.
We all come from Africa; this fact has
been known to science for a long time.
The modern human, Homo sapiens, left
Africa and started to conquer the world
around 100,000 years ago. What hap-
pened next is less certain. By which routes
did we spread around the world? Where
in the family tree of mankind do all of the
nations fall? This is where population ge-
netics helps.
Before genetics, attempts to reconstruct the
ancient past were mainly made with the
help of archaeology or linguistics. Buried
pots and bones helped to reconstruct an-
cient movements. Similarities and differenc-
es in languages were used to draw family
trees of populations. Yet, these approaches
can be misleading.
“Language and genes do not go together,”
says Mait Metspalu, Vice Director of the Es-
tonian Biocentre. “It is much easier to change
your language than to change your genes.”
And this is exactly what seems to have hap-
pened quite often during the course of his-
tory. For example, while the Estonian and
Hungarian languages share the same roots,
the genetic similarities between these two
nations is much less than you would ex-
pect from the linguistic analysis. According
to Metspalu, genetically everyone is most
closely related to their neighbours.
Finding the modern relatives
The Estonian Biocentre has also helped to un-
cover the story of Native Americans and ancient
Greenlanders, with the help of people who
died thousands of years ago.
The study of old DNA – genetic material recov-
ered from old bones or human tissues – has be-
come one of the hottest topics in science. Re-
searchers have managed to sequence Neander-
thal DNA and discover a previously unknown
species of humans.
The Estonian Biocentre has been collaborating
with Danish scientists who have managed to
locate some of the oldest available DNA from
modern humans. Most recently, they published,
in the journal Nature, the genome analysis of a
boy who lived 24,000 years ago on the shores
of Lake Baikal in Siberia.
The analysis revealed that the people living in
Siberia back then were not the same groups we
might encounter there today. Rather, these peo-
ple became the ancestors of modern Europeans
and, more surprisingly, also Native Americans.
Previously it was thought that Native Ameri-
cans stemmed from the people currently living
in East Asia. This analysis showed that Native
Americans are a mixture of East Asian and (fu-
ture) European people.
In 2010, the team received another ancient
surprise when analysing some old hair found in
Greenland. The dark lock of hair belonged to
a man who settled in Greenland some 4,000
year ago, during the “first wave of migration”.
It was unclear who these people were: whether
they were related to modern Greenlanders or
to Native Americans or to some other group.
DNA from the hair showed that these people
were completely different from the Inuits cur-
rently inhabiting Greenland. They were also
not related to Native Americans. Rather, their
closest modern relatives are in Siberia and the
Aleutian Islands.
“When we reconstruct the demographic his-
tory of people and only use current variability,
we can come up with all kinds of scenarios that
have left no traces,” Metspalu explains. “Peo-
ple might have died out and modern DNA re-
veals nothing about that. This is why old DNA
is important.”
Estonian Biocentre researcher Chandana Basu Mallick is measuring skin pigmentation in
the state of Tamil Nadu, India.All participants also gave the gene sample.
Cross section through the MA-1 individual’s
humerus.The central void is the medullary cavity.
25WINTER 2013 / 2014 I LIFE IN ESTONIA
PhotobyMaitMetspalu
Photoby:ThomasWStafford,Jr

Hoping to find out where Estonians fit in is
what got Estonian researchers doing popula-
tion genetics in the first place. That was in the
mid-1990s. Metspalu reminisces, “We had
the idea that the general global structure was
fixed and we only needed to find out where
the place of Estonians was,” he says. “But we
found out very quickly that this was not the
case and that actually the field was quite un-
explored. So we had to start working on the
global level.”
This is the reason why the Estonian group has
published several articles in such prestigious
science journals as Nature and Proceedings
of the National Academy of Sciences, dealing
with the ancestry of Native Americans, Indian
tribes and Jewish population groups.
Indian genetic prehistory was also the subject
of Metspalu’s own doctoral thesis. Also, the
Estonian Biocentre has several researchers
from India who are studying this genetically
very diverse subcontinent.
“While Africa is the birthplace of mankind,
India is its cradle,” Metspalu explains. “To un-
derstand how people came out of Africa and
started to populate Eurasia, you need to start
looking at India. To get to most of Eurasia,
you at least have to pass through India.”
That is where people went before populating
the rest of the world. Some of the groups just
passed through, while some stayed a little
longer. But, either way, they left some of their
genes behind by mixing with other groups.
“How, when and where have populations
been divided and who mixed with each oth-
er?” he asks in describing the main problems
the research group is trying to solve.
Burial of Mal'ta child redrawn from Gerasimov (1935),
with photos of the plaque and swan from the burial and
a representative Venus figurine from the excavation.
The genetic structure of world population.
Based on around 600,000 locations covering all human genome, this analysis highlights the similarities in
genomes between different nations.The columns represent the weight of different components by individuals.
Photoby:KellyEGraf
Source: Estonian Biocentre

All of these events can be traced from the ge-
nome thanks to two characteristics of genes.
Firstly, they change. There is evolutionary pres-
sure favouring certain gene variations over
others. But there are also random mutations
that occur over time and at certain rates, mak-
ing each population genetically distinctive af-
ter some time and making it possible to calcu-
late back to the common ancestor of different
populations.
Secondly, having sex allows genes to mix. The
offspring always has half of the genes from the
mother and half from the father. When one
of the parents is from another population, this
inserts some new variants into the gene pool
and later helps geneticists to uncover when
and where different groups mingled.
For a long time, the main sources of this in-
formation were the Y-chromosome (which
gets passed on from father to son) and mi-
tochondrial DNA (which each child inherits
from the mother). As sequencing techniques
have developed and become cheaper, re-
searchers have begun using more powerful
tools.
They now use gene chips, which allow them to
look at hundreds of thousands of single letter
differences (SNPs) in the genome and gather
even more information about similarities and
differences between populations. The ultimate
goal is already within reach: full genome se-
quencing. Reading all three billion base pairs
that make up our genome will give scientists a
unique window into the past.
“Almost all demographic history has affected
the length of shared pieces of the genome,”
Metspalu says. “Looking at only one part of
the DNA, such as the Y-chromosome, the role
of chance is much bigger, and less common
[gene] signals are more likely to get lost.”
The complete genome also makes it possible
to look for genes that affect our appearance.
“The populations living in the cold north, for
example, have shorter hands and legs and
stockier bodies than the people of India,” Met-
spalu says.
The Estonian Biocentre is currently preparing
the biggest full genome database in the world
– 300 individuals from one hundred Eurasian
populations – specifically meant for doing pop-
ulation genetics.
Such full genome analysis has revealed, and
will continue to reveal, surprises about our
past. For example, Metspalu and his col-
leagues were involved in the analysis of the
genome of an Aboriginal Australian. The
data indicates another possible migration
out of Africa. It might be that before the
bulk of modern humans left Africa, a small-
er group made their way along the Indian
Ocean coast and some of their genes survive
in Aboriginal Australians.
“This is one of the central questions we want
to investigate with our full genome data set,”
Metspalu says. “Things might be more compli-
cated that one migration out of Africa.”
So we now know about Australians and In-
dians. But what about Estonians? Have the
researchers finally managed to solve the prob-
lems they started investigating some 20 years
ago? Metspalu bursts into laughter. “We
would like to,” he says. “We are still working
on it.”
Photoby:NiobeThompson
Lake Baikal in south-central Siberia, where Mal’ta is situated. Genome of the Mal’ta child revealed that an
Upper Palaeolithic population from this region admixed with ancestors of present-day East Asians, giving rise
to the First American gene pool.

The trial of the most famous Estonian male
cross-country skier, Andrus Veerpalu,
in the international Court of Arbitration (CAS)
became a match of scientists in which
three relatively unknown Estonians beat the
World Anti-Doping Agency (WADA).
Scientists saved
the honour of
a national heroText: Mihkel Kärmas / Photos: Scanpix

At the press conference. In the middle,Andrus Veerpalu; beside him, on the left,
the lawyer Aivar Pilv and, on the right, his coach Mati Alaver. On either side of
the table, Sulev Kõks and Anton Terasmaa, scientists of the University of Tartu and
members of Veerpalu’s defence team.
In April 2011, the Estonian public received perhaps the biggest moral
shock of recent years: one of the most beloved national sports heroes,
the cross-country skier Andrus Veerpalu, tested positive for doping. This,
among other things, explained why, a month earlier, the champion had
suddenly pulled out of the Oslo World Championships, where he was con-
sidered to be one of the favourites in his preferred event—the 15-kilome-
tre classic style—and instead announced that his skiing career was over.
At the press conference of the Estonian Skiing Union, where the news
was officially announced, the now 40-year-old double Olympic gold
medallist and world champion swore that he had not used any prohib-
ited substances. Many felt personally affected when the embodiment of
the hard-working modest Estonian and the father of five broke down
in front of journalists. Quickly the Facebook group “We believe Andrus
Veerpalu” was created and over 60,000 people joined, a truly signifi-
cant number for a small nation.
Despite the emotional explanations of the athlete and his coaches, the
doping panel of the International Ski Association (FIS) gave Veerpalu a
three-year competition ban because of the traces of human growth hor-
mone (HGH) in his blood. Veerpalu’s defence team decided to appeal to
the Court of Arbitration (CAS), which postponed the decision on three
occasions until, after two years of agony, on 26 March 2013, the next
news bomb exploded: Veerpalu had been acquitted!
“These have been the most difficult two years of my life and I hope
no-one else has to experience what I have gone through. I am happy
that justice has been done,” said the skier, emphasizing the input of the
scientists on his team. “I am not sure whether we can call Veerpalu’s ac-
quittal a triumph of Estonian scientists, but it certainly is the beginning
of a triumph,” said Anton Terasmaa, a member of Veerpalu’s defence
team and one of the three scientists who were able to prove that the
growth hormone test internationally used for years is flawed.
Doping hunters and competitors, however, were disappointed. Sarah
Lewis, Secretary General of FIS, compared the case to speeding with an
uncalibrated speedometer. “Veerpalu was caught doing 180 kilometers
an hour, and the speed limit was 120. Then when they checked out
the machine to measure speed, they showed that it may not have been
accurate between 118 and 119, and at that speed there could be a
false positive. And consequently, even though he had done 180, and
that’s not disputed, he was nevertheless given the benefit of the doubt
because there was a fault in the machine,” said Lewis.
Battle of David and Goliath
Athletes, functionaries and fans may or may not believe in Veerpalu’s
innocence, but the decision has been taken and is not a matter of ap-
peal. The case is special precisely because the scientists of the Estonian
skier’s defence team achieved what many in the whole world no longer
believed was achievable. They proved that the growth hormone test,
which the powerful FIS and WADA—organisations which control mil-
lions of euros—have used for the last eight years is not reliable.
The team of the David who successfully battled Goliath included three
scientists of the University of Tartu – Sulev Kõks, Krista Fischer and
Anton Terasmaa - who say they worked on their own initiative and
without charging a fee. “I believe that their unbelievable professional-
ism and dedication will be properly acknowledged and rewarded,” said
Veerpalu in gratitude after being acquitted.
When the trio of volunteers first took on the case two years ago, they
just had the handwritten statements of the skier, his trainer and physi-
cian: three pieces of paper stating that the athlete had not consumed
any prohibited substances. Assuming that Veerpalu was telling the
truth, the scientists started to look for a reason why the test showed
the use of growth hormone.
“At first we did not pay much attention to the testing methodology,
because we did not believe that the results of years of work by other
scientists would include principal flaws,” explains Doctor Fischer, a bio-
statistician and Senior Researcher at the Estonian Genome Centre of
the University of Tartu. “We investigated whether Veerpalu’s genetic
characteristics might explain a false positive result, or whether mistakes
had been made during the testing process.”
They put forth the theory that the positive doping test had resulted either
from Veerpalu’s genetic uniqueness or the fact that the test was con-
ducted after a difficult training session and stay in an alpine lodge in high
mountain conditions. However, they could not prove their theory. What
proved decisive was not a faulty test or method, but the measuring tech-
nique through which the doping hunters compared Veerpalu’s results.

Inaccurate method
Growth hormone is a naturally existing hormone in the human body, but
how can one set the boundary which, if crossed, indicates that someone
has used an external growth hormone (commonly called “doping”)?
People are different and the level of the hormone and its isoforms vary
even within one day. “The more we focused on the growth hormone
test, the more questions and suspicions we had about its reliability,”
says Professor Sulev Kõks, the leader of the group of scientists.
“Most suspiciously, we never found a methodical and scientific expla-
nation for the testing method, nor did we receive such an explanation
from WADA. WADA claimed that they had never had a false positive re-
sult, in other words a case where an athlete who had not taken growth
hormone had tested positive, thus declaring that it wasn’t possible. As
proof they said that, of the dozen athletes who had been caught, no-
body had been acquitted. But that is not something you can take seri-
ously! That is not scientific proof!” says Fischer.
The team asked for help from the American biomedicine statistician Don
Barry. “In fact, the testing method for growth hormone has been criti-
cised for years,” explains Fischer. “We simply went further, carried out
some serious work and presented scientific arguments.” The scientists
assert that they were definitely unbiased. “As a scientist I would have
accepted it if the test marginal rates had been correctly and thoroughly
defined and working. Then we would have looked for other solutions.
But those rates have never been scientifically proven,” says Fischer.
When the team presented their questions about the testing method
to CAS, there was a delay while FIS, in cooperation with WADA, tried
unsuccessfully to patch up the holes discovered by the Estonians. In the
end, CAS decided in favour of the Estonian team. “The scientific report
presented by WADA to FIS regarding testing guidelines was not consid-
ered satisfactory by the judges and, therefore, it could not be claimed
with certainty that Veerpalu was guilty of doping. Everything boiled
down to the technical problems with the test. In conclusion, the test is
still considered reliable but in future WADA must set clear guidelines,”
explained Matthieu Reeb, Secretary General of CAS.
Sulev Kõks, Professor of Physiological Genomics at the University of Tartu,
who led Veerpalu’s scientific team, is one of the most talented Estonian
genetic scientists.

Miracle calf, sports gene and
toxins of the Vietnam War
Sulev Kõks (42), Professor of Physiological
Genomics at the University of Tartu, who led
Veerpalu’s scientific team, is one of the most
talented Estonian genetic scientists.
In addition to his work on the defence team
of our sports hero, Kõks was the main theorist
behind the cloning of the first Estonian trans-
genic calf, in collaboration with the Estonian
University of Life Sciences.
The calf Juuni was introduced to the public last
September and she was supposed to be the
first of many cloned cows with a transplanted
human gene whose milk was supposed to
yield growth hormone for the pharmaceutical
industry. This is potentially a business worth
hundreds of millions of euros, because until
now the pharmaceutical industry has used a
more expensive and clumsy method of pro-
ducing growth hormone.
In October, Juuni died at the age of three
months, but the project continues and, ac-
cording to plans, the herd of cloned calves
of the Estonian University of Life Sciences will
grow to ten or more in the next few years,
which is considered sufficient to meet the en-
tire world pharmaceutical industry’s demand
for growth hormone. Today, the cloning of
transgenic calves has become so ordinary that
it is done on average twice a week at the lab of
the Estonian University of Life Sciences.
Gene test which helps to identify
potential top athletes
Kõks also helped to develop a unique genetic
test, available on the market beginning this
year, which helps to better identify children
who have the genetic predisposition to suc-
ceed in certain kinds of sports: to find poten-
tial future top athletes. Genetic tests for sports
ability are nothing new, but mostly they have
relied on one or two genes. For the first time
ever, Estonians have pulled together six genes,
so this test should give a better overview of an
individual’s capabilities.
“We are quite able to predict what field of
sports is suitable for a person,” Kõks explains.
“Broadly speaking we differentiate between
whether someone has more potential for
sports requiring strength where one has to en-
dure a brief moment of huge muscle tension
or a more endurance-sport-type biochemistry.
More endurance-sport-prone people do not
get tired as easily, their metabolism encour-
ages the economic use of energy and such a
person is able to train for three to four hours
intensively.
In addition, Kõks has researched the impact
of toxic dioxin in Vietnam. Dioxin was re-
leased into nature when the US Army de-
stroyed jungle areas with plant toxins during
the war in order to prevent the enemy from
hiding. As a result, approximately three million
Vietnamese people are suffering from differ-
ent health problems today. It is believed that
dioxin causes developmental problems, birth
defects and cancer.
The aim of the project is to identify the link
between dioxin in the environment and the
occurrence of disease. Although Vietnam has
the highest levels of dioxin in nature, it is not
just a problem of one country: many countries
have dioxin in their environments as a result
of production processes. “The dioxin project
is clearly a global issue. It is not just a prob-
lem for Vietnam, but also for other developing
countries and for the United States,” states
Kõks.
A precedent for many
Many people believed that Veerpalu was let off the hook because of
procedural mistakes made by doping hunters and was not actually
clean. Don Catlin, who consulted with the defence team and is the
“father of modern doping”, emphasises that a person is innocent until
proven guilty. “Veerpalu’s case is truly stunning and frightening because
it shows how innocent people can be found guilty.” Catlin believes that
WADA should take this case into consideration and ask Estonian scien-
tists for help in correcting the testing procedures.
Veerpalu was acquitted, and FIS annulled the competition ban and had
to pay 8,200 euros in compensation. “I think it’s a small miracle that in
our dispute with such a large organisation, and the whole system, we
were carefully listened to. Until the end, I was uncertain of whether our
appeal would be rejected or not,” says Veerpalu’s lawyer, Aivar Pilv.
The victory, which was due to a fundamental statistical flaw, is significant
because the same test had been questioned for a long time by others.
For example, the ruling was welcomed by the players of the American
NFL professional football league, whose union had fought the WADA
growth hormone test for years, claiming that it was not based on sci-
entific proof. “This ruling confirms the demands of players for a scien-
tifically valid, completely regulated and transparent system,” the union
said in its official statement regarding the decision by CAS. Due to the
ruling, the Finnish skier Juha Lallukka was also acquitted and released
from his competition ban.
Having lived under immense pressure during the whole court process,
Andrus Veerpalu returned to skiing at the top level this autumn, not as
a competitor but as an adviser to the Kazakhstan ski champion Aleksei
Poltoranin, who is set to go for gold during the next Winter Olympic
Games in Sochi. However, for Veerpalu’s former coach Mati Alaver, this
affair cost the opportunity to become the main trainer of the Russian
national skiing team, and he returned to coach the Estonian national
team after the scandal.

MetaMed rescues
wealthy patients
from the randomness
of the medical system
Jaan Tallinn’s company MetaMed offers a personal medical service to the wealthy which can cost up
to 250,000 USD. Inspiration for the creation of the company came from Steve Jobs’ fight with cancer.
Text: Toivo Tänavsuu
LIFE IN ESTONIA I 2013 / 2014 WINTER
I ECONOMY AND BUSINESS
32

Based in New York, MetaMed was established
in 2012 by an interesting group of people: in
addition to Jaan Tallinn, who was also one
of the founders of Skype, the futurist Michael
Vassar, the legendary card player and former
professional “Magic: The Gathering” player
Zvi Mowshowitz, and the megastar investor
Peter Thiel, who also founded PayPal. Thiel
invested half a million dollars in the company.
MetaMed has a simple vision: to offer a high-
end personal medical service and thereby
show the potential future of medicine.
Metamed is primarily directed towards pa-
tients in poor health who doctors have either
given up on or who are themselves sceptical
of doctors. For a cost reaching thousands of
dollars (fees begin at 5,000 USD), MetaMed
researchers study the patient’s medical and
health history and genetic research, subse-
quently researching medical publications and
studies. The company employs over twenty re-
nowned scientists and doctors, who are called
Medical Advisers or Health Researchers.
For each patient, they prepare a thorough re-
port in which they investigate the medical his-
tory and illness of the patient in the minutest
detail. They find the likely cause of the illness,
and introduce potential treatment methods
and describe the risks involved. However,
MetaMed emphasizes that the report does not
prescribe any treatment. The decisions regard-
ing treatment need to be taken by a medical
doctor, together with the patient.
For example, there are over ten different ways
to treat a melanoma. For one client, MetaMed
compiled a report of approximately twenty
pages, which introduced all of the treatment
options and discussed their advantages and
drawbacks. On the basis of clinical studies, it
mentioned dosage amounts, predictors of ef-
fectiveness, side-effects, response rates and
survival rates.
For another patient, MetaMed compiled an
18-page report on the causes of kidney stones
and different existing treatment methods. No
single doctor is able to provide such a compre-
hensive overview in the tight time-frame avail-
able for each patient! In the USA, an average
visit to a doctor lasts approximately only 11
minutes and the majority of that time is spent
on paperwork.
MetaMed is no longer unknown in medical
circles, although the company has not carried
out a large advertising campaign. MetaMed
services have been advertised on Adwords.
Jaan Tallinn claims that marketing is their main
challenge: “Sometimes I get the feeling that
we’re building the first law firm in a world
where law firms have not been invented yet.”
Today the company has dozens of patients.
One of the first patients paid 8,000 USD for a
10-page report on a rare form of skin cancer.
Later the cancer was successfully treated on
the basis of the report.
It is also possible for patients to Google infor-
mation on their illnesses, but MetaMed spe-
cialists have better access to different sources
and they are able to better assess the quality of
the information available.
MetaMed is convinced that the US medical
system is rotten to the core. And this shows
the dire need for change. The United States
spends a fifth of its GDP on health, but be-
cause of medical mistakes nearly 100,000
people die each year in hospitals and 40 mil-
lion patients receive inadequate or late treat-
ment caused by no access to or the lack of
information.
More than half a million medical articles are
published annually and every day over fifty
clinical trials commence. MetaMed has done
the numbers: if general practitioners in the
United States wanted to be somewhat in-
formed of the latest medical achievements,
they would need to spend 25 days each month
reading articles and research results! Doctors
cannot be adequately informed of the latest
news, and this leads to wrong diagnoses and
treatment choices.
The inspiration for creating MetaMed came to
the research manager of the company, Michael
Vassar, as he thought about the late Steve Jobs
and his difficult fight with cancer: would Jobs
have lived if his treatment had been overseen
collectively by a room full of Nobel Prize laure-
ates and top medical doctors?
In an interview with the weekly Estonian news-
paper Eesti Ekspress about MetaMed, Vassar
claimed that their deeply scientific approach to
medicine not only helps people to be treated
more effectively but, in the long term, it will
reduce healthcare costs in the United States.
At times Vassar seems paranoid about the
current system. According to his theory, only
the smartest scientists and leading doctors
are able to distinguish the truth from medical
“bullshit”, find the right treatment on their
own or even carry out clinical trials if neces-
sary. The fate of other patients has been left to
an ineffective medical system and the random
care of doctors.
Vassar believes that the current medical system
ignores scientific breakthroughs and discover-
ies, offering patients one-size-fits-all and often
unsuitable treatment. MetaMed is on a mis-
sion to help patients by “opening their eyes”.
Yet he admits that the company’s service is
only attainable by a few.
In addition to the field of medicine, the philan-
thropist Jaan Tallinn is concerned with another
large question “threatening human lives”: ex-
istential risks to humanity. For example, Tallinn
is concerned about the development of artifi-
cial intelligence, developments in neuroscience
and the rapid growth of genetic- and biotech-
nology. He has funded several research institu-
tions, including ones at Oxford and Cambridge
Universities in the UK. “Humankind today is
spending less on thinking about how to sur-
vive the 21st
century than on developing new
lipsticks,” he has said.

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