Worcester Business Journal

32 2 021 Economic Forecast • Worcester Business Journal • www.wbjournal.com B I O T E C H Mike O'Brien CEO Galaxy Life Sciences, in Webster Most people in Central Massachusetts probably know Galaxy for its retail development arm, which includes Pleasant Valley Crossing in Sutton and the Trolley Yard in Worcester, as well as smaller sites dotting the region. Behind O'Brien and with the help of Matthew Zicaro, a vice president with life science experience, Galaxy is making a huge bet on Worcester's future as a place for biomanufacturing. Galaxy started building this fall a $50-million-plus biomanufacturing facility on spec – that is, without a tenant lined up, a rarity in the business – in e Reactory. "With the amount of interest that's come our way, it may be a matter of just a few months until we know who the tenant is. But with or without it, we're building," O'Brien told the WBJ in a podcast in September. Steve Lynch Co-owner King Street Properties, in Boston A lot of developers talk up the po- tential of a certain site or communi- ty. King Street Properties is putting its money where its mouth is, and doing it in Devens, a community that's seen some major development before but never of this magnitude. Lynch and King Street are planning to start work early in 2021 on what will eventually be a $500-million in- vestment on a cluster of biotech manufacturing build- ings. And they're doing it on-spec, meaning without tenants lined up first, a sure sign of confidence that life science firms will need lots of more space to manufac- ture drugs, and a lot of Boston-area firms will want to do it close by in Devens, where the price is right. Rodney Rietze CEO iVexSol, in Worcester is gene therapy startup has attracted the eye of investors, including a $13-million fundraising round announced in early Decem- ber to help iVexSol expand from its space at Worcester's Massachusetts Biomedical Initiatives incubator into a manufacturing site in Lexington. at's in addi- tion to $2 million last year, along with $250,000 from the Massachusetts Life Science Center this year. Lots of startups toil for years before reaching the market, and though iVexSol isn't there yet, the funding it's attracted is a good sign. Gene therapy is seen as a major growth industry within biotech, with an ability to treat cancers and genetic disorders by changing the genetic make- up of cells in the body. Three people in biotech to meet in 2021 Biotech will grow Already with several big wins in 2020, the region's biotech industry will take advantage of an even bigger boom T he Central Massachusetts biotechnology industry was a rare bright spot in 2020. ree communities benefited in notable ways. Worcester saw construction start on a $60-million life sciences building from China-based WuXi Biologics and specula- tive construction on a similar $50-million facility nearby from Webster developer Galaxy Life Sciences. Devens had the purchase of three sites by Boston developer King Street Properties, which plans to invest $500 million on biomanufacting buildings. Vibalogics, a German contract development and manufacturing organization, said in November it'll spend $150 million on a virotherapy manufacturing center in Boxborough. ose deals give the region momentum going into the new year. Finding a critical mass WuXi Biologics and Galaxy Life Sciences are the two first tenants of e Reactory, a 46-acre site on much of the former Worcester State Hospital envi- sioned for 470,000 square feet on nine development sites, complementing pharmaceutical company Abb- Vie, the UMass Medical School and the UMass Med- icine Science Park. WuXi and Galaxy, which hasn't yet announced a tenant finalized, will go a long way in helping to establish Worcester as an option more life science companies will consider when looking to start or grow their presence near Boston. WuXi got generous state and city subsidies, but the site should BY GRANT WELKER Worcester Business Journal News Editor already work financially for companies looking for a cheaper option than anywhere inside I-128. Taking advantage of a workplace shift e coronavirus pandemic has already been said to be a boon to the life sciences industry, and this region in particular. JLL, a national real estate and investment management firm with local offices in Boston, said in August the Boston area will benefit more than any region in the country from what's expected to be a quickening pace of growth for the life sciences industry in the wake of the pandemic. at growth comes from both a demand for advances in health technology and treatments as well as life science firms' push toward the suburbs, where they can spread out more safely with lab space. It's up to Central Massachusetts communities to show com- panies why they're as good – or better – of an option than Boston, Cambridge or Waltham, never mind all the other communities working to add themselves to the map as well. Hatching a new company Worcester has plenty of startups looking to eventu- ally make it big in life sciences, including at incuba- tors like Massachusetts Biomedical Initiatives. Some are closer to market than others. Eventually, city and local industry leaders hope one of these companies will make it big. No one's exactly expecting the next Moderna, but a well-known startup could help plant a flag for Worcester that talent and investment capital can make it big here. e next step? Keeping that company around to help grow the talent pool. W W The proposed $50-million biotech facility to be developed by Galaxy Life Sciences at The Reactory in Worcester PHOTO/COURTESY OF GALAXY LIFE SCIENCES

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