Biotech Surge

Tennessee positions itself to become one of the world's biotech centers

By Trisha Ostrowski

In the race to become the next biotech hotspot, Tennessee has the finish line clearly in sight.

The state's many attributes-- world-class talent, cutting-edge research and sheer determination-- are giving it strong forward momentum. And with both public and private sectors solidly committed, the pieces for significant biotech growth seem to be falling into place.

Consider Cell Genesys, a leading developer of cancer therapies. With its first two manufacturing facilities located in California, the company recently chose Memphis. There, in its new 35,000 square-foot facility, Cell Genesys will manufacture the patient-specific GVAX lung cancer vaccines for both Phase III clinical trials and potential market launch.

Why Tennessee? Its central location, excellent transportation infrastructure and world-class reputation for biomedical research have all been selling points. Specifically, Memphis offered Cell Genesys one of the world's major shipping hubs to facilitate efficient transport and distribution of its vaccines.

As Joseph J. Vallner, Ph.D., president and chief operating officer of Cell Genesys described, "Memphis is an ideal site for this type of manufacturing operation given its well established infrastructure for overnight air shipment as well as an attractive real estate market and a world-renowned biomedical community."

"Biotech is on the move all across the state-from established firms to startups, and there is particularly strong momentum in Memphis," explained Ton Grande, commissioner of the Tennessee Department of Economic and Community Development.

It's no surprise that companies are blossoming in Memphis' superb biotech infrastructure. Among the city's resources is the UT-Baptist Research Park, a re-use of the former Baptist Memorial Hospital. Together the Baptist Memorial Health Care Corp., the University of Tennessee (UT) Health Sciences Center and the Memphis Biotech Foundation are establishing a campus that integrates research, teaching and biomedical product development. UT and the Foundation have recently taken ownership of the facility and have begun converting 1.3 million square feet to laboratories.

While the addition of UT-Baptist Research Park will definitely boost Memphis' appeal, the city's research component has been strong for decades with assets including St. Jude Children's Research Hospital and UT.

St. Jude is in the middle of a $1 billion expansion to dramatically enhance its research on genetic and infectious diseases. A new building will house a Center for Infectious Defense in children, a new Department of Chemical Biology, and an expansion of St. Jude's Immunology Department, led by Peter Doherty who won the 1996 Nobel Prize in medicine for his cell-based immune work.

Dr. William Evans, St. Jude director and executive vice president explained recently that St. Jude is "very supportive" of the UT-Baptist Research Park. "You can envision the area between St. Jude and the University of Tennessee as housing a biotech zone. St. Jude could be one anchor and the university another."

While Memphis appears to be leading the way, the entire state is in on the action. Nashville, for example, is home to an industry cluster in the health care services sector that it has fostered over the last 30 years. Further, the city's Vanderbilt University is a national research leader.

To benefit the entire state, Nashville is also developing tremendous educational programs to prepare a well-trained work force for the growing industry segment. Recently, Nashville State Technical College announced that it would offer biotechnology courses for the first time in fall 2002. If approved by the Tennessee Higher Education Commission, it will also be able to offer a degree in Biotechnology. The courses in biotechnology will give students an intensive hands-on experience with the various techniques of microbiology, DNA, RNA and protein analysis, immunology, and culturing animal cells, plant cells and microorganisms, according to Dr. Harlan Scott, the school's biotechnology coordinator.

"The biotechnology sector has been identified by the Nashville Area Chamber of Commerce and its affiliate, the Nashville Health Care Council, as a priority area for development in middle Tennessee," said Matthew S. Gallivan, president of the Nashville Health Care Council.

While individual communities across Tennessee are keeping their eyes on the "prize," state initiatives are also prioritizing biotech. For example, in March 2001, the state launched the TennesSeed Fund, a $40-$50 million venture capital fund for startups in fields including biotechnology. Also, Governor Don Sundquist has developed the Task Force on Biotechnology, charged with submitting recommendations to ensure the sector's future in the state.

"It is very important as we move into the 'New Economy' that we work to expand the biotech industry in Tennessee and encourage the formation, growth, and relocation of technology companies," Grande explained.

In the end, it's the statewide biotech focus, along with an abundance of new resources and locations that are helping Tennessee become a leader in the life sciences.