Biotech South

More Challenges for South's Biotech Industry

In North Carolina's Research Triangle, one of the South's two largest concentrations of biotech clusters, challenges abound for the life sciences. Artecel Sciences, Cogent Neuroscience and Xanthon have recently closed their Triangle operations. Certainly, 2003 will be a year where others in the Triangle will close as well. Ernst & Young recently reported that 336 of the 600 publicly traded biotech companies in the U.S. had less than four years of operating cash. Worse yet, BioCentury, a San Francisco-based publication recently reported that more than 60 biotech companies in the U.S. will run out of money in the next few months. And, according to PricewaterhouseCoopers, cash raised for biotech concerns dropped 52 percent in the third quarter of 2002, the largest decrease in investment of any major industry sector.

Lawrence, Kan. Site of $28 Million Plant

Atlanta-based Serologicals Corp. announced in December it would build a $28 million cell culture supplement manufacturing plant in Lawrence, Kan., home of Kansas University. The company is expected to build a 45,000-square-foot facility where EX-CYTE serum-free cell culture supplements will be produced for use in the biotech industry. The project is expected to create 45 jobs.

Abbott Labs Expands in Kansas

Illinois-based Abbott Laboratories is making a capital investment of nearly $4 million at its facility in McPherson. The expansion will include the manufacture of a different drug, however, officials would not specify which product would be made. Abbott is expected to hire 201 additional employees during the expansion at an average salary of $33,000. The plant currently makes more than 450 different products, primarily injectables - pain-management products, anesthetics and products for respiratory and cardiovascular care.

Novo Nordisk Adding Jobs in NC

Employment at the Clayton, N.C. Novo Nordisk facility has grown from 200 to 350 in the last year due to greater demand for insulin made at the plant. The work force expansion has not, however, fueled speculation the company will build another insulin plant in Clayton on property the company owns adjacent to the current facility. It was rumored last year that Novo Nordisk would add a second facility at a cost of $200 million in Clayton. Officials with the Danish company said there are no plans for a second plant.

Florida Pharm Purchases NC Plant

Andrx, the Weston, Fla-based generic drug maker has purchased the former Bristol-Myers Squibb plant in Morrisville and will invest $85 million to bring the plant on-line for drug production. Andrx officials said they are renovating the 500,000-square-foot facility this year with an anticipated start of manufacturing in early 2004. No mention was made of job creation, however, it can be estimated in the hundreds.