A    S I T E    S E L E C T I O N    I N D U S T R Y    R E V I E W    •    J U L Y    2 0 0 0

---

New York and New Jersey

Albany Molecular Research Inc. (AMRI) -- one of the fastest-growing U.S. companies for the past two years -- is investing in new facilities and acquisitions in upstate New York. The Albany-based contract pharmaceutical research firm will create 308 new jobs at its new Rensselaer County facility.

Not far away, Stiefel Lab, a company focused on dermatology R&D, is adding 150 new jobs at its two Oak Hill facilities in Greene County.

"The reason so many large pharmaceutical companies and smaller biotech start-ups are expanding or locating in New York is because we offer them what they're looking for: an innovative and successful R&D partnership involving our universities, the private-sector and the state; a low-cost, high-tech work force; and a pro-jobs, business-friendly government," says Charles A. Gargano, chairman of Empire State Development.

Almost every region of New York has pharmaceutical and biotech companies, particularly New York City, Long Island and the Mid-Hudson region. A 1997 report indicated the state has more than 720 companies that employ more than 40,000 workers. The state is a leader in industrial pharmaceutical research, ranking fourth nationally.

Gov. George E. Pataki has proposed $700 million in tax cuts and other incentives to stimulate the industry. "My bio-tech/bio-med plan would help attract the best and brightest students to high-tech programs, and encourage them to build their careers here in New York," he said. "In addition, it would help provide these firms with the critical capital they need to grow and create jobs."

The state recently provided a $4 million grant to the Univ. of Rochester's biomedical research program. Gov. Pataki has also proposed funding to Cornell University's Nanobiotechnology Center to secure federal funds and help develop miniature biomedical devices, such as drug-delivery systems.

New Jersey is also a well-established power in the pharmaceutical industry, with numerous corporate headquarters, R&D facilities and manufacturing plants.

R.P. Scherer Corp., a subsidiary of Cardinal Health and a leading developer and manufacturer of soft gelatin capsules, moved its corporate headquarters to Basking Ridge, N.J., in 1999 from Troy, Mich. The relocation brought Scherer closer to major pharmaceutical manufacturers, which comprise the company's customer base.

"The move gives R.P. Scherer more opportunities to interact with our customers, to help them develop effective medicines and get their products to market faster," says George L. Fotiades, group president. Scherer's new worldwide headquarters will house the company's executive offices and major sales and marketing teams.

Also in 1999, Pharmacia & Upjohn (now Pharmacia) moved into a new 550,000-sq.-ft. (51,000-sq.-m.) campus in Peapack, N.J.. A year before, Novartis selected the town of Summit as the U.S. headquarters for its new Consumer Health Division, including the Gerber Products Co., over-the-counter (OTC) medications, and medical nutrition businesses.

Missouri: A Midwest center

Located at the center of American farm production, Missouri is an international center of plant and human genome research, health care advances, environmental protection and agricultural development.

The state is home to more than 100 life sciences companies, according to a survey conducted by Genetic Engineering News. Led by the Missouri Dept. of Economic Development, life sciences organizations throughout Missouri are coming together in a statewide partnership. For instance, pharmaceutical companies seek out the Center for Vaccine Development at Saint Louis University to test promising new drugs, including the effectiveness of an inhaled flu vaccine in children and a vaccine for cervical cancer.

As part of a five-year, strategic business plan, the St. Louis Regional Commerce and Growth Assoc. is working with Harvard professor Michael Porter on the development of industry clusters, the first of which will be biotechnology.

The Civic Council of Greater Kansas City and the Kansas City Area Development Council envision building a Kansas City Area Life Sciences Institute and funding $500 million in research annually.