Hartford Business Journal

www.HartfordBusiness.com April 4, 2016 • Hartford Business Journal 17 Bioscience Growth Council, said that this state's biggest regional bioscience competi- tor is Massachusetts, which has a similar research tax-credit structure to Connecti- cut's "that they've not tinkered with.'' According to Pescatello, bioscience startups typically need around $60 million to hire staff, find and equip office/lab space to get going, and as much as $2 billion to clinically test drugs or devices and bring them to market. For Connecticut to vie with larger, well- established bioscience clusters, it has to "be a cheaper, less costly, more generous rival,'' making incentives like forgivable loans and grants key to nurturing the sector, said Pescatello, also president of the Hartford- based New England Biotech Association. How companies leverage those incen- tives is how Connecticut gets its payback. For example, with its lab in place and the balance of its $5.6 million public-private Amid budget headwinds, CT's bioscience gains solidify By Gregory Seay gseay@HartfordBusiness.com T hey are three of the most tangible milestones in the ongoing evolution of Con- necticut's bioscience ecosystem: In Farmington, Maine bio- research firm Jackson Laborato- ry's state-funded outpost on the UConn Health Center campus hired ahead of schedule the 200 highly-paid workers to which it promised in return for millions in state assistance. Now, Jackson Lab is laying plans to hire its next 100 workers, and to erect a second building to house many of them. In New Haven, Alexion Pharmaceuticals, one of the world's most rapidly successful and richest biopharmas ever with roots in Yale Uni- versity, relocated its 500 workers from Cheshire into a $140 million office tower in the Elm City. In Branford, New York's Icahn School of Medicine at Mount Sinai, with a $9.5 mil- lion Connecticut state loan, constructed its genomic research center, where it has pledged to create 142 new jobs by 2020. But they are only part of the story of Con- necticut's gradual ascension in the bioscience space. Five years after the state agreed to invest nearly a billion dollars in its bioscience infrastructure, and decades after the industry sprouted here, Connecticut, observers say, has begun to mount a critical mass of research tal- ent and entrepreneurial zeal to support and sustain its bioscience ecosystem. The industry's recent growth also likely saved the state from falling deeper into eco- nomic despair following the Great Recession. More than anything else, observers say, the industry's growth reflects the commit- ment from the state's bioscience entrepre- neurs and scientists, public policymakers, its top public and private universities and others, to stake Connecticut's bioscience flag. What the industry eventually evolves into, however, is still anyone's guess. Connecticut is still among what many in domestic bioscience circles consider the "sec- ond tier'' of bioscience clusters, outflanked by areas like the Boston/Route 128 corridor; north- ern New Jersey; North Carolina's "Research Triangle"; Austin, Texas; and San Diego, Calif. This state still lacks, observers say, the density of intellectual and investment capital that char- acterizes the "mega-clusters." Some also worry whether the state can sus- tain its commitment to the sector, mainly via financial support to UConn and other invest- ments in Connecticut's research and develop- ment efforts and infrastructure, something that has become the hallmark of the Malloy adminis- tration's economic development strategy. Despite that uncertainty, Connecticut's bio- science industry continues to build on what it has, observers and industry officials say. "People are starting to notice that Connecti- cut is a player in bioscience,'' said David Wurzer, executive vice president and finance chief at Connecticut Innovations Inc., the state's quasi- public technology investment arm. Malloy's take Gov. Dannel P. Malloy is credited with rebooting the state's bioscience ambitions when he launched his Bioscience CT initia- tive in 2011, which committed $864 million to: Renovate research facilities at the UConn Health Center in Farmington; create 28,000 square feet of new incubator space to foster business startups; and construct a new ambulatory-care facil- ity and patient tower at John Dempsey Hospital. A report completed at that time by UConn's Connecticut Center for Economic Analysis said the investment would yield 16,400 jobs and $823 million in new state tax revenue by 2037. It's unclear how much prog- ress the state has made so far; Malloy says the state's investment is meeting expectations, but he warns this is a long-term investment whose benefits won't be maximized for decades. He said Connecticut's bioscience standing was hurt by the lack of investment prior to his administration. "Connecticut was in a good position years ago," Malloy said in an interview with HBJ about the state's bioscience aims and mile- stones. "It allowed that position to dissipate before I became governor. And much of what we're trying to do is to say, 'Hey, we're still that state that used to rank No. 4 in the coun- try in related fields. We slid to 14th or 16th. We want to be back in the top five.' That's not going to happen overnight." Other state investments — including bio- science innovation and stem-cell research funds and expansion of UConn's science, technology, engineering and math (STEM) prowess — also support the industry's growth. Malloy says Connecticut can support and sustain its bioscience ecosystem even as storm clouds gather in the form of the state's fiscal crisis. Catherine D. Smith, commissioner of the state Department of Economic and Com- munity Development, says fears of the state pulling back on its investment in the industry are overblown. While key parts of the state Bioscience CT Milestones: Oct. 2014: The Jackson Laboratory opened its newly constructed facility, The Jackson Laboratory for Genomic Medicine, an 189,000-square-foot building on UConn Health's Farmington campus. 2015: UConn Health opened its new 300,000-square-foot, state-of-the-art Outpatient Pavilion on its lower campus offering primary care and specialty services in one location. Construction also included a completed 1,400-space parking garage for patients, visitors and employees. April 2016: UConn Health will open its 381,309-square-foot, 11-floor new hospital tower with 169 beds at UConn John Dempsey Hospital. UConn Health will have a total of 234 licensed hospital beds. The project includes a new adjoining Parking Garage 2 that has been completed for 330 employee spaces and 35 spots for emergency department patients and visitors, and additional ambulance spaces. Also, the project included completed Garage 3 with 403 spaces for the public and staff. In Progress: • Renovations are 75 percent complete modernizing 200,000 square feet of research floors and laboratories for more collaborative open lab spaces at UConn Health in its main building. Also, renovation will begin this summer for the main lobby, along with updates to cardiology and dental clinical spaces. • An addition and renovations are underway to modernize academic locations as Bioscience CT calls for future expansion of class sizes at both UConn School of Medicine and UConn School of Dental Medicine. The addition includes a new 19,000-square- foot, team-based learning classroom addition. Renovations will also modernize existing classrooms. • Incubator laboratory spaces have been expanded to increase research capacity and foster new bioscience business startups. The Cell and Genome Sciences Building at 400 Farmington Ave., now has a two story, 28,000-square-foot addition housing 32 new incubator labs. UConn Health Center campus in Farmington. UConn Health's Outpatient Pavilion. UConn Health's new hospital tower. P H O T O | J A N I N E G E L I N E A U , U C O N N H E A L T H P H O T O | J A N I N E G E L I N E A U , U C O N N H E A L T H P H O T O | J A N I N E G E L I N E A U , U C O N N H E A L T H Continued Continued P H O T O | C O N T R I B U T E D Yale University molecular scientist and bio- entrepreneur Craig M. Crews in the lab of Arvinas Inc. Building Bioscience A N H B J S E R I E S O N C T ' S B I O S C I E N C E S E C T O R

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