Groups plan incubator for biotech businesses

A handful of economic development and other business organizations may open a biotechnology business incubator near the Medical University of South Carolina campus.

While still preliminary, discussions on the topic have heated up in recent months, and some think work could begin within a year. The incubator would provide budding biotech companies with space at discounted rates. Rent would rise as a company becomes more successful. The center also would provide support services for tenants.

"What we're trying to do is to look at creative methods to move the project along very quickly and to have the thing in place as soon as possible," said Karl Kelly, chief executive of the South Carolina Biotechnology Incubation Program in Greenwood. "Demand is pretty immediate."

Several organizations are involved in the discussions, including MUSC and local governments. Kelly said the incubator at MUSC would be the first of three across the state in addition to the Greenwood facility that opened in 2001. The others would be built near the University of South Carolina and Clemson.

Ernest Andrade, director of business development for the city of Charleston, said organizers are putting together a feasibility study. Kelly said organizers have six months to plan. Those involved then will have to find money to pay for the project --- a huge question, since governments these days are looking for ways to cut, not add, spending.

The funds could come from state, local or federal sources, he said."I'd like to see a project started nine to 12 months from now," Kelly said. "We need the property now. The companies need it."

Charleston Mayor Joseph P. Riley Jr. said he was confident funding would be found. "It's something we're committed to doing," he said.

Kelly thinks the local market would support a 40,000-square-foot facility. The goal is to nurture companies until they can move into their own space, where they would provide high-paying jobs. Just as important, the companies would be more likely to stick around. Kelly said there's a good chance that a company begun locally would stay.

Few doubt the potential economic benefits. Local officials long have considered an incubator as a key ingredient toward efforts to build a cluster of biotech companies. "We are very interested in some of the commercial opportunities that might evolve out of the intellectual property at the Medical University," Andrade said. "As time goes by, we'll see the fruit from building a facility that can be used by some of the researchers at MUSC."

Nor do officials doubt the need. One problem the area has in developing biotech firms is the lack of available lab space. Consider a company like GenPhar, which grew out of research done out of MUSC.The company has developed a vaccine platform that uses partial genetic material of a virus to mimic an infection in the body, thereby building up its defenses. The company thinks the technology can be used for multiple diseases, such as Ebola and HIV.

GenPhar is having trouble finding investors in Charleston. It's also struggling to find adequate lab space, said Dr. John Dong, chief scientific officer. He said the problems have led to an internal debate over whether GenPhar should move out of state.

Charleston isn't the only area with such a problem. Andrade said that just 2 percent of lab space across the country is vacant. Opening lab space could attract firms from outside the area. "From an economic development standpoint, you immediately get on the radar," Andrade said.

Part of the space in a new building could be used as an economic development tool. "Many times these companies want temporary lab space while they build their own facility," said Ken Roozen, director of the Foundation for Research and Development at MUSC. Part of the incubator could provide that space, officials said.

Kelly is not concerned that some incubators in other parts of the country have closed. He said enough commitments will be received from companies before the facility opens to keep it in business. "We feel strongly that this project will be successful the day it opens its doors," Kelly said.