Biotech/Pharmaceutical Industry Review, Site Selection magazine, January 2004

he founding management team at Cytovance Biologics had a good idea of what they were getting when they decided to put the fledgling biotech firm’s first manufacturing facility in Oklahoma City. All five are alums of Novozyme Pharmaceuticals, a homegrown OKC firm which gained attention for its enzyme replacement therapies at the turn of the last century. When heavyweight biotech firm Genzyme bought the company in 2001, the group, led by Novazyme co-founder John Crowley, eyed new opportunities in developing new recombinant protein-based drugs, or biologics.

        “We realized there was another opportunity in a familiar area in biologics manufacturing,” says Spencer Reynolds, vice president of strategy and marketing for Cytovance. “Oklahoma City was eager to work with us when we brought them the idea of Cytovance.”

        Reynolds says the Oklahoma capital had “an early and commanding lead” during the site selection process, offering considerable cost advantages over such biotech nerve centers as San Diego and Boston. The omnipresent quality-of-life factor that draws management talent is there too, he says.

        “The quality of life is fantastic in Oklahoma City,” Reynolds says. “The standard of living at a given salary level is quite a bit higher than Boston or San Francisco and goes a long way toward attracting industry talent. Some might scratch their heads and say how did we get talent from Boston and San Diego, but we did it at Novozyme by proving the quality of life here.

        “We had existing relationships with many components of the non-profit and government sectors. Oklahoma is really a textbook example of the kind of place you want to put light, high-tech manufacturing. The cost of land and facilities is very reasonable, labor costs are reasonable and educational facilities are world-class. The scientific and life science infrastructure is obviously very robust and those are essential ingredients.”

        Cytovance will call the Presbyterian Health Foundation (PHF) Research Park home when it comes online during the first quarter of 2005. Construction is set to begin in January 2004 on the initial 17,000-sq.-ft. (1,580-sq.-m.) plant, which may be expanded by an additional 9,000 sq. ft. (836 sq. m.) when business warrants. The company is also leasing 11,000 sq. ft. (1,021 sq. m.) of office and wet lab space in an adjacent building. The total project involves an investment of US$14 million to $16 million and will employ 100 within five years. The Oklahoma City Redevelopment Authority is providing $7 million in bond financing to build the facility while PHF is providing up to $2 million in loans for specialized interior construction.

Cytovance Biologics is building its first manufacturing facility in Oklahoma City. The firm is a start-up founded by the former management team at Novozymes.

        Oklahoma City is not on many short lists of biotech hubs, but it is growing in the sector. Reynolds says the products Cytovance will be manufacturing are biotech’s largest and fastest growing segment – a segment he describes as the “Nordstrom’s at the mall” in terms of cultivating an environment conducive to biotech cluster development.

        Even before its first plant is built, Cytovance is already looking at possible expansions years from now. Reynolds says Cytovance hopes to grow through creative use of economic development funds similar to the incentives offered in Oklahoma. Cytovance is already holding preliminary discussions with potential locations around the country.