BIOTECHNOLOGY AND PHARMACEUTICAL

UPDATE

October 2006

McIlvaine Company
 

St. Luke's Medical Building in Bethlehem Twp. Up by End of 2008
The focal point in the first phase of construction of St. Luke's Hospital's new 180-acre Bethlehem Township campus will be a 500-foot-long building with a shingled roof and a porte-cochere at its main entrance.

"It doesn't look like an institution in any way, shape or form," said Robert E. Martin, senior vice president of network development for St. Luke's. "We don't want them to come there and think they are at a hospital. We'd like them to think they are at a resort."

The focal point of that first phase will be an outpatient clinic and regional cancer center, a 400,000-square-foot building that will vary in height from two to four stories along its length. This will be the first building on the hospital campus in the northeast quadrant of a lot at Route 33 and Freemansburg Avenue. Construction of a hospital in the southern portion of the campus, along the Lehigh River, will come later.

BioMed Realty Trust Signs Agreement to Acquire Center for Life Science Boston

BioMed Realty Trust, Inc.has signed a definitive purchase and sale agreement with CLSB I, LLC and CLSB II, LLC, affiliates of Lyme Properties, to acquire the Center for Life Science Boston, located at 3 Blackfan Circle in the heart of Boston's Longwood Medical Area. The 702,940 square foot life science research building is currently under construction and scheduled for delivery in 2008.

The project is 80 percent pre-leased, on a long-term, triple net basis, to four world-renown life science institutions -- Beth Israel Deaconess Medical Center, Children's Hospital Boston, Dana-Farber Cancer Institute and the CBR Institute for Biomedical Research. The remaining space available for lease includes approximately 98,000 square feet located on the top four floors -- 15 through 18. The building also will contain space on the first floor for retail shops and 300 below-grade parking spaces.

The property is located in the heart of Boston's Longwood Medical Area, surrounded by many of the nation's leading life science research institutions, including Beth Israel Deaconess Medical Center, Children's Hospital's Karp Family Research Laboratories, The New Research Building at Harvard Medical School and Merck Research Laboratories Boston. Also nearby are the Brigham & Women's Hospital, Dana-Farber Cancer Institute, Joslin Diabetes Center and Children's Hospital Boston, attracting the world's top researchers and clinicians.

The Center for Life Science Boston project is a state-of-the-art, 18-story building fully permitted for life science, laboratory, office and clinical use and will be the tallest building within the Longwood Medical Area. Designed as a "green building," it is anticipated that the Center for Life Science Boston will earn a Leadership in Energy and Environmental Design (LEED) rating for sustainable buildings.

Biotech Expansion in Arizona

Translational Genomics Research Institute: The six-story, $46 million TGen building in downtown Phoenix opened in early 2005. It is owned by Phoenix and leased to TGen. It is the centerpiece of a 15-acre Phoenix Biomedical Campus, with 1 million square feet of office, research and classroom space that eventually will surround TGen.

Arizona Biomedical Collaborative building: A four-story building under construction next to TGen at the Phoenix Biomedical Campus. The building, expected to be complete mid-2007, will add two floors of research space for University of Arizona researchers and two floors for Arizona State University's department of biomedical informatics. Also, the Arizona Board of Regents approved $1.5 million to study the possibility of adding a second building.

Mayo Collaborative Research Building: Mayo's 110,000-square-foot clinic with lab space in Scottsdale opened in June 2005. Researchers form the Mayo Clinic Cancer Center and Translational Genomics Research Institute are domiciled there. Also, a small Canadian-based biotech firm, InNexus Biotechnology Inc., recently took a 17,000-square-foot space.

ASU's Biodesign Institute: The first two buildings span nearly 350,000 square feet of research space, and two more buildings are planned. The center hosts a range of research topics from nanotechnology to treatments for several diseases.

Bio5 Institute: UA's Bio5 Institute focuses on five areas: agriculture, medicine, pharmacy, basic science and engineering. The research facility, called the Thomas W. Keating Bioresearch Building, will open Dec. 1 and host 30 researchers with more than 60,000-square feet of wet-lab and lab-support space.

University of Arizona College of Medicine:  The College of Medicine also will open Dec. 1 with more than 45,000 square feet of wet-lab and lab-support space.

In the works:

Grand Canyon University: Plans a 50,000-square-foot wet lab, but a location has not been determined.

Chestnut Properties LLC: Developer Lee Chestnut expect to soon break ground on a 250,000-square-foot office that includes lab space at Papago Park Center in Tempe. The exact mix of office and lab space will be determined by demand.

India’s Biotech Park Opens Soon

Bangalore's tech status is set to receive yet another shot in the arm with the state government deciding to wrap up work on the first phase of the biotechnology park in nine months' time.

The government has asked the National Buildings Construction Corporation (NBCC), entrusted with the construction, to complete the exercise within the stipulated time. NBCC is a wholly owned Government of India enterprise which has carried out projects like fencing along Indo-Pak and Indo-Bangladesh borders.

The construction will start before November. The first phase, spread over six acres, will include a block for institutions and R&D. Within the R&D centre, there will be separate sub-blocks housing the Institute of Bioinformatics and Applied Biotechnology and the Centre for Human Genetics.

The government had acquired 104 acres of land at Electronic City phase III more than a year ago. Eventually various biotech companies will house themselves in the cluster.

The park is scheduled to have world-class R&D facilities, and plug-and-play amenities for life sciences research. It will comprise an R&D centre, management block, biotech incubation and common facilities centre, a biotech industries cluster.

The park will get fiscal benefits as announced in the Millennium Biotech Policy of 2001 and periodic amendments to the policy that will be released by the state.

MDS Opens U.S. Central Lab

MDS Pharma Services has established its first central lab in the U.S., expanding its capabilities in late-stage pharmaceutical testing. The new 15,000-sq.-ft. facility, located in North Brunswick, NJ, is now fully operational and provides central lab support services for clinical trials.

In addition to standard safety testing, this facility provides esoteric testing including molecular biology, molecular genetics, flow cytometry, and immunoassays. These complex tests are used in drug development to evaluate targeted treatments for conditions such as cancer, autoimmune diseases, diabetes, and immune deficiencies.

The new lab has received accreditation from the College of American Pathologists (CAP) and also received a Level 1 certification from the National Glycohemoglobin Standardization Program for providing the highest levels of technical precision and accuracy in standard diabetic testing. This test is used to assess a diabetic's overall wellbeing and to monitor the effectiveness of diabetic treatments.

Council OKs TIF to Build Biobank

A biotechnology company's request for $1.2 million in tax breaks to build a biobank on the north side of Iowa City was approved by city councilors.

The National Genecular Institute Inc., which recently announced a partnership with the University of Iowa to also expand into Oakdale Research Park in Coralville, will create 178 jobs by 2010. Thirty-six of the jobs will be in Iowa City with an average salary of $22.50 a hour. The positions will include research, customized manufacturing, shipping and receiving.

At the formal City Council meeting, councilors unanimously voted to provide tax incremental financing in the form of rebates for a period of seven years to NGI, a California-based company that specializes in pharmaceuticals and skin care for anti-aging and post-surgery treatments.

The Iowa City facility will be a $6 million, 20,000-square-foot biobank for storing genetic and cellular materials, and is expected to be an integral part of the business.

In Coralville, the facility will be a 73,000-square-foot research laboratory and business incubator building. NGI will occupy about 41,000-square-feet of lab and office space while UI will use its 32,000-square-foot portion for a technology incubator facility designed to help start-up companies.

Construction is expected to begin next fall for the Coralville facility. The company will begin work in January in leased space at the Myriad Two Building in Coralville.

The two projects combined will cost $26 million. Funding will be provided by the Iowa Department of Economic Development with $655,000 in direct state assistance, grants and incentives. The city of Coralville pledged $800,000 in tax increment financing, and the company also will receive $1.1 million in job training assistance.

This is the 6-year-old company's first expansion in the United States outside of California. NGI decided to partner with UI and the Iowa City/Coralville area after looking at seven universities in Utah, Texas, Arizona and California.

Parexel To Acquire California Clinical Operations

Parexel International has entered a definitive purchase agreement to acquire the business and operations of California Clinical Trials Medical Group, Inc. (CCT) and Behavioral and Medical Research, LLC (BMR) for $65 million. CCT and BMR provide a broad range of specialty Phase I-IV research services through four clinical sites in CA and are headquartered in San Diego. The acquisition is expected to close within the next 30 days.

"The acquisition will further strengthen our global Clinical Pharmacology Network with the addition of 51 Phase I beds on the West Coast," stated Josef von Rickenbach, chairman and chief executive of Parexel. "A 35-bed unit located on the campus of the Glendale Adventist Medical Center, combined with an additional 16 beds that are currently under construction at another location, will expand the company's Clinical Pharmacology capacity to over 400 beds, making Parexel one of the largest providers of Phase I services in the world. The deep experience that CCT and BMR have with central nervous system clinical trials and neuroscience drug development services, combined with their expertise in performing complex studies, will enhance the services we currently provide to clients."

New Virology Building to be Named for NU Supporter Morrison

University of Nebraska-Lincoln's new virology research building will be named the Ken Morrison Life Sciences Research Center in honor of Hastings resident and University of Nebraska supporter Kenneth Morrison, pending approval by the NU Board of Regents.

Morrison, a longtime university advocate and University of Nebraska Foundation trustee, has provided the lead gift for the planned center, which will house the Nebraska Center for Virology. This is the latest of Morrison's numerous contributions to the university, which have included establishing the Morrison Biotechnology Fund, supporting UNL's microscopy research facility at the George W. Beadle Center for Genetics and Research, and funding the Kenneth Morrison Professorship in Food Engineering.

Construction of the new structure is slated to begin this fall, on East Campus near the Veterinary Diagnostic Center. The $18.6 million, 70,000-square-foot building will house laboratory and offices for the Nebraska Center for Virology. The building will provide a state-of-the-art research facility designed to foster interaction and collaboration among researchers, visiting fellows, students and staff. It will include full laboratories for 12 scientists plus separate spaces for tissue culture work, a Polymerase Chain Reaction suite, cold and dark rooms, shared microscopy and cell-flow cytometry facilities and a Biological Safety Level-3 research laboratory suite. The building will provide virology center researchers much needed space to continue and expand on research under way at the UNL Beadle Center where the center is now headquartered.

The Nebraska Center for Virology was established in 2000 as a Center for Biomedical Research Excellence with a five-year, $10.7 million grant from the National Institutes of Health. In 2005 the center received a second $10.6 million grant to support the center over the next five years. The center links scientists at UNL, University of Nebraska Medical Center and Creighton University. Center researchers are working to understand the molecular mechanisms that diverse viruses employ to cause diseases. Charles Wood, a molecular virologist and Lehr/3M university professor at UNL, directs the center.

Millipore Opens New 110,000 sq. ft. Facility for R&D

As of October 2006, Millipore has opened a new $50-million R&D center in Bedford, MA.  The State-of-the-art 110,000 sq. ft. building contains 47,000 sq. ft. lab space, and consolidates multiple functions.  As many as 500 professionals will work in the new facility.

SAFC Pharma Expands Protein Capacity

SAFC Pharma, a member of the Sigma-Aldrich Group, is expanding its cCMP protein purification capacity to meet market demand for therapeutic proteins from plant- and animal-sourced starting materials. When completed in April of 2007, the natural and recombinant plant protein purification facility will be one of the world's largest therapeutic protein production sites.

The new operations, part of a 400,000 sq.-ft St. Louis, MO manufacturing campus, will feature separate plant and animal protein processing facilities to eliminate potential cross-contamination. A natural and recombinant plant proteins facility will occupy 22,000 sq.-ft. for its upstream and downstream processing operations. Also, there will be a 20,000 sq.-ft. animal-sourced proteins facility for upstream processing. This will be supported by an area that contains more than 300,000 sq.-ft. of total capacity. Downstream animal-sourced purification will take place in an adjacent 5,000 sq.-ft. clean room suite.

SAFC recently expanded its capacity and technology with the purchase of the SAFC Arklow, Ireland facility; a large-scale API manufacturing site with 90,000 liters of total cGMP capacity; the acquisition of SAFC Pharmorphix, a Cambridge, U.K.-based solid-state research company; and an $18 million dollar expansion of the SAFC Madison high-potency chemistry facility.

Pall Expands Operations in PR

Pall Corp has plans to expand its Life Sciences manufacturing operations in Fajardo, PR in order to meet increasing demand by pharmaceutical and biotechnology companies, blood centers and hospitals. The company expects to invest approximately $50 million in facilities, machinery and equipment and add more than 250 full-time jobs in PR by 2010.

The expansion in PR is part of the company’s standardization and consolidation efforts with respects to its global manufacturing business. The company anticipates that PR’s competitive tax rate combined with its facilities optimization program will result in an incremental after tax benefit of more than $10 million annually in three years.

AstraZeneca Opens First CPU in the U.S.

AstraZeneca opened its first U.S.-based clinical pharmacology unit (CPU) at the University of Pennsylvania Health Care System’s Penn Presbyterian Medical Center. The company considers this opening a significant investment in research capabilities in the Delaware Valley.

The CPU will have electrocardiology (ECG) collection systems, telemetry systems, and electronic data-capture systems. These technologies will provide critical information, such as toxicity and the relationship between drug dose and its actions.

AstraZeneca has five CPUs and one ECG center across Sweden, the U.K., and, now, the U.S. “The new facility will add significantly to our global capability to conduct important safety and tolerability studies that support our development of new medicines for patients,” comments Karen Gotting-Smith, vp of U.S. clinical development.

The opening of the CPU comes six months after announcing a research collaboration agreement with The University of Pennsylvania.

Clarion County, PA, Gets Biotech Center in Business Park

Economic Development Corp. and a private developer are reporting two business parks in the county are in the final stages of infrastructure construction and are close to the ultimate goal of bringing hundreds of jobs to the area.

Trinity Point at Monroe is in the final stages of infrastructure construction in preparation for the construction of the Biotechnology Business Development Center which will begin in the spring of 2007, said Tim Reddinger, Trinity Point general partner.

In addition to the biotechnology center there are two to three more building projects which will be under construction next summer.

Other infrastructure projects underway at the Trinity Point site include a fiberoptic remote terminal.  Pennsylvania American Water is installing all water lines and National Fuel is installing gas lines.  Trinity Point proposes to bring in 1,600 new jobs starting with between 200 and 300 new jobs during the next five years.

Iran-Qeshm-Investment
Managing director of Qeshm Free Trade Zone called for introducing the investment opportunities in industrial, transit, tourism and transportation sectors of the island.

The Martyr Beheshti Medical University and Tehran University have established new international branches on Qeshm Island to admit students majoring in medical sciences. Persian Gulf Biotechnology Research Center was established ten years ago, he said, adding that the government will construct an exclusive district or park on biotechnology studies with the support of the Science Council as soon as possible.

Charles River Wins $111.6 Million NCI Contract

Charles River Laboratories was awarded a 10-year, $111.6-million contract by the National Cancer Institute (NCI). This more than doubles the size of its current contract with NCI. For the last 12 years, Charles River has provided onsite staffing support to NCI’s Frederick Cancer Research and Development Center (FCRDC). This award expands that collaboration by converting the current onsite staffing contract into a long-term dedicated space agreement.

In support of the new contract, Charles River will construct a shared-use facility to provide research model production and related services to NCI-FCRDC, addressing NCI’s current and future research support needs.

The new shared-use facility will be constructed in close proximity to NCI-FCRDC’s current operation in Frederick, MD. Charles River expects construction to be completed in the third quarter of 2008. The portion of the shared facility dedicated to meeting NCI-FCRDC’s support needs will be staffed and operated by Charles River’s Consulting and Staffing Services group.

Charles River will dedicate a staff of 80 people to provide genetically defined, pathogen-free, mice to support NCI/NIH-funded research targeting the causes and treatments of infectious diseases, metabolic diseases, cancer, bioterrorism threats, and other health issues.

Charles River will also assume responsibility for the management of the NCI/NIH Tumor and Natural Products Repositories in support of the Developmental Therapeutics Program.

The portion of the shared-use facility not dedicated to NCI will be occupied by Charles River’s Research Models and Services business, which will use this new space as a platform for growth in the Baltimore/Washington market, according to James C. Foster, Charles River’s chairman, president, CEO.