Competition for biotech manufacturing becomes heated
07/01/2003
Southeast could take the early lead due to cheap land, educated work force
By Chris Anderson
BOSTON—From California to North Carolina and north through Pennsylvania and Massachussetts, economic development folks have gold in their eyes when the topic turns to biotechnology—and with good reason.
The biotechnology boom is expected to hit in earnest within the next couple years as compounds moving through clinical trials gain FDA approval. More approvals will spark a shift from R&D-driven labs to clean manufacturing facilities, ushering in new, high-paying jobs, and plenty of them.
"There is a window of opportunity in the next three to five years, and we want to catch as much of this business as possible," says Barry Teater, spokesperson for the North Carolina Biotechnology Center, a non-profit organization whose aim is to foster biotech development in the state.
 Having workers experienced in the field may not be nearly as important as creating new workers with the specialized skills needed for biotech manufacturing. |
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While most states would relish the opportunity to attract biotech manufacturing, the simple fact remains that most biotech companies will stay clustered in areas with strong research universities.
"There's a reason why Cambridge has so many successful biotech companies, and it's directly related to our world-class education and research institutions," says Janice Bourque, president and CEO of the Massachusetts Biotechnology Council.
Further, research released by the Lehigh Valley (Pennsylvania) Economic Development Corp. (LVEDC) shows that the three most important factors in determining where biotechnology companies set up shop include:
- A skilled and educated workforce;
- Proximity to biopharm academic research and curricula;
- Proximity to biopharm infrastructure.
All of which tilts the hand decidedly in favor of those regions already strong in biotech. But despite its relative strength as the number-two market for biotech clinical development (behind California), Massachusetts hasn't been nearly as successful at getting start-ups to stay home with their manufacturing.
One of those companies, Biogen, retains headquarters in Cambridge; but when the time came to start production of its drug Avonex, used for the treatment of multiple sclerosis, Biogen ramped up production at a new facility at Research Triangle Park in North Carolina.
Bourque admits that Massachusetts hasn't done as good a job at marketing itself as other areas have in the past, but that is changing. "I think the perception is that it is more expensive to do business in Massachusetts and that is why companies shy away," she says. "But we can show that it is not necessarily true."
In the Lehigh Valley of Pennsylvania, just the other side of the northeast border of New Jersey, that region's economic development leaders also think they're poised to benefit from the boom.
"We can show that not only do we have lower costs for business, but we have a large number of experienced people already employed in the biopharm and medical device industries," says Ray Suhocki, president and COO of LVEDC. Suhocki also points to the region's proximity to the thriving pharmaceutical industry just over the border in New Jersey as a potential employee pool.
To help fill anticipated future needs, both Massachusetts and North Carolina offer training programs at select community colleges aimed at training workers in the basics of biotech manufacturing. North Carolina is hoping to take that one step further, Teater says, by developing a teaching facility at North Carolina State University in Raleigh that will emulate a biotech production environment. While funding for the project—estimated to cost $50 million—has not yet been secured, Teater feels confident his organization will be able to line up the money needed.
One possible financing source is Gold Leaf, a North Carolina foundation that uses money from the landmark tobacco settlement to foster economic development. To date, the North Carolina Biotechnology Center has already received $42 million from Gold Leaf for the funding of other initiatives.
While the Biotechnology Center wouldn't leave other regional competitors out in the cold, it would certainly make company recruitment harder. It could also be difficult for others just entering the fray to make an impact.
"Everyone likes to say they are into biotech these days, because it is about the only industry that is growing in the economy," says Teater. "But when you look behind the hyperbole and the PR, you see that there are only really a few regions that are serious players and have the infrastructure to support and truly build this industry for the long term—California, Massachusetts, Maryland, New Jersey and North Carolina."