Idaho
IDAHO
From Site Selection magazine, January 2008
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Pharma
Grows In Idaho

The Gem State seeks nuggets of venture capital.
by JOHN W. McCURRY
john.mccurry bounce@conway.com
I
Miles Guralnick
Miles Guralnick, president of Biopol Laboratory
daho may not be among the first states that spring to mind when one considers the U.S. pharmaceutical manufacturing sector, but two of the state's top 2007 projects involve the industry.
   Biopol Laboratory, part of the Danish ALK-Abello Group, is expanding to a new manufacturing and R&D facility in Post Falls, just north of Coeur d'Alene and just across the state line from Spokane, Wash. RxElite, a generic drug specialist, is building a new headquarters and distribution center in Nampa, on the outskirts of Boise, that will welcome manufacturing in later phases as the site builds out to 230,000 sq. ft. (21,400 sq. m.).
   Biopol currently operates out of five facilities in the Spokane area. Company President Miles Guralnick says an objective was to keep the new site within commuting distance so current employees could be retained. Following a search that also looked at Spokane Valley and Liberty Lake, Wash., Biopol elected to move 22 miles (35 km.) east to the Riverbend Commerce Park. Guralnick says about 50 parameters were evaluated, including costs, employee impact, business climate, infrastructure, incentives, state and local interest in Biopol's business and permitting.
   "The regional work force is very good," Guralnick says. "Post Falls is just off a major Interstate. Therefore the geographic work force pool encompassed both eastern Washington and north Idaho. There are eight colleges and universities in the region producing a large number of well-educated candidates."
   Biopol specializes in allergen raw material production and plans to build the world's largest production facility. The $30-million, 68,000-sq.-ft. (6,317-sq.-m.) first phase is due to open in 2009. This phase covers ALK-Abello's raw material needs for its immunotherapy tablets for grass and house dust mite allergies as well as some of the existing immunotherapy products for the U.S. and European markets. A second phase may include raw material manufacturing for future products such as an immunotherapy tablet for ragweed pollen allergy. Biopol's growth is spurred by a recent licensing agreement for North America signed with Schering-Plough, and increased global business.
Gov. C.L. 'Butch' Otter
Gov. C.L. "Butch" Otter

   Construction of the project's second phase will begin during the second quarter of 2008 and will be completed during the fourth quarter of 2009.

Otter: Idaho Needs
Capital to Back Ideas
   Idaho Governor C.L. "Butch" Otter says he learned during his years as an executive with the J.R. Simplot Company that personal relationships always enhance business relationships.
   A 10-day trade mission to China in November allowed Otter and other Idaho officials to develop a rapport with Chinese officials that will serve the state well, he says: "We got to know these people face to face."
   That trip primarily produced agreements for Idaho agricultural exports. Idaho exports to China in 2006 totaled more than $731 million and are on pace to exceed that in 2007. Otter says he also let the Chinese know that Idaho would welcome companies looking to establish a stateside presence.
   Otter believes one of Idaho's biggest challenges is in attracting sufficient capital to back ideas generated in the state.
   "We are sort of at the end of the road on capital structure, so we need to let the capital funds know that Idaho is a good place to invest. We are pretty stable, the economy is pretty well diversified. Idaho has lots of ideas … what we need is the money to fund them."
   Natural resources and plentiful energy are among the lures Idaho can offer, Otter says. He also cites the Idaho National Lab, which contributed $85 million to the state's economy in 2006, as an asset.
   "Almost any high-energy consumer, and those that need a highly motivated work force with people who show up to work on time, would be interested in Idaho," Otter says. "The silver industry is going through a renaissance in Idaho and 15-dollar-an-ounce silver helps. Any industry that [uses] raw materials such as copper and zinc and lead would be good prospects."
   "We don't offer the enticements that a lot of states do," Otter says. "We've put a lot of money into training up our work force. We have a great partner in our economic development efforts, and that's the 44 counties and 202 cities in our state. We leave it up to them. If they want to create an industrial park or if they have environmental needs we can assist them with, we will."

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