NewHavenBIZ

30 n e w h a v e n B I Z | N o v e m b e r / D e c e m b e r 2 0 1 9 | n e w h a v e n b i z . c o m By Michelle Tuccitto Sullo Will the dearth of research and lab space for burgeoning biotechs quash the growth of New Haven's most dynamic and promising industry? e Race for Space N E W H AV E N I N C U B A T O R S T he New Haven area has be- come a hub for thriving and growing young bioscience companies like Arvinas and Cybrexa erapeutics, which are working to develop potentially game-changing cancer cures. e region's biotechs are devel- oping treatments for a range of ailments, from Alzheimer's disease to spinal-cord injuries. But just as a growing infant can't stay in an incubator for long, many New Haven-born bioscience companies need room to grow — and fast. Adequate space, however, is hard to find. Science Park on Winchester Avenue in New Haven is home to many of the region's bioscience companies, including Arvinas, Cybrexa and Artificial Cell Tech- nologies. According to John Ke- ogh, a senior broker with Colliers International, who handles leasing for the property, it was "100-per- cent" leased as of mid-October. "We have long-term tenants whose businesses are growing, and we can't find space to ac- commodate their growth," Keogh explains. e same holds true for Science Park's newer tenants, some of which are also navigating growth trajectories, according to Keogh: "We are having trouble meeting their needs." A spate of bioscience startups and the growth of existing ones has fueled a demand for more space. Some leaders fear that if these companies can't flourish here, Connecticut risks losing them to other states, such as Cal- ifornia, Massachusetts or North Carolina. "If the powers that be want the biotech industry to continue growing [in Connecticut], it is imperative that someone create a way to create more lab space, both for startups and next-stage growth companies," Keogh says. "We just don't have enough lab space to accommodate the demand." "Someone with deep pockets needs to step up — either the state of Connecticut or Yale," he adds. Tim Shannon, MD, a general partner with the early-stage venture capital firm Canaan, began his career as a physician and now invests in companies, including Arvinas. He also chairs Arvinas' board of directors, and has first-hand knowledge of the region's lab space crunch. Previously, he was president and CEO of CuraGen Corp., a biopharmaceutical company focused on oncology. "ere is no lab space in New Haven for new companies or expanding companies," Shannon says. "ere is some is the sur- rounding towns — not much, and what does exist is very distributed, with a loose feel of being part of a biotech community." According to Shannon, while there have been discussions about new lab space coming online, he says it is likely between one and three years away from becoming a reality. e dearth of suitable research facility space "is a problem if the area sees the biotech industry as any part of its future," Shannon notes. S cott Phillips, chief financial officer with Halda erapeu- tics, a start-up drug-discovery company, searched for lab space when the company launched in early 2019. Halda ultimately settled on space in Branford. "What I've been finding is that there is very limited lab space for start-ups," Phillips said. "ere is some in the suburbs, but no available space in New Haven for companies the size of Halda or the next step up." According to Phillips, it isn't an issue of pricing, but availabil- ity. While the company likes its Branford space, the preference is to be in close proximity to other biotechs in an urban setting "to build a sense of community," he says. "In Connecticut, there is very limited space to get at any price," Phillips explains. "ere needs to be a strong partnership between investors, risk takers, and possibly the state, to make it a priority to have space. e alternative is that companies will look to the sub- urbs, or quite frankly, out of state." One hurdle is the cost associ- ated with building lab space in comparison with standard office space. Bob Skolozdra, a partner with Svigals + Partners, an architec- tural firm in New Haven which specializes in laboratory planning and design, has worked with companies such as Alexion Phar- maceuticals and Arvinas on their laboratories. Creating laboratory space is more expensive than tradi- tional office space, according to Skolozdra. Laboratories require specialized infrastructure, since workers are dealing with chem- icals and biological materials. ese spaces have more safety and ventilation requirements and need back-up power, so these compa- nies don't "lose years of research" if the power goes out, Skolozdra notes. Dawn Hocevar, president and CEO at BioCT, a New Hav- en-based not-for-profit organiza- tion that is working to grow the bioscience industry in Connecti- cut, said there is "absolutely a need" for more lab space in the New Haven area. is includes room for both startups and for companies beyond the newborn life stage that are growing and need larger spaces, she explains. State officials are meeting with John Keogh, senior broke with Colliers International, in lab space at 5 Science Park on Winchester Avenue in New Haven.

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