Biotech Firms Confront the Energy Crisis

As California's energy crisis deepens, biotech companies have worries in addition to the ruined experiments and damaged equipment that concern life scientists in academia.1 Soaring energy prices could slowly sap the industry's economic health, and blackouts could spoil large batches of drugs by interrupting FDA-mandated protocols. "Biotechnology companies in California sort of naively thought that they were located in a First World business environment," says Joseph Dougherty, an analyst at Lehm

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Some California companies have already prepared, to varying degrees, to meet that threat. "Because you have earthquakes here, you have to have backup power systems," notes Sue Markland Day, president of the Bay Area Bioscience Center in San Francisco. Amgen, for instance, has been preparing for potential power outages since the 1994 Northridge earthquake, according to spokesman David Kaye. The company's emergency generators now cover 70 to 80 percent of its power requirements.

"We can't afford to be without power," says Kaye. "We're the sole source for Epogen and Neupogen in the U.S. So if the power suddenly went out and we lost it for a couple of days, that would cause a major problem for our customers and patients." (Epogen is used to treat anemia, while Neupogen combats various cancer complications.) John Sung, senior director of facilities at Gilead Sciences, worries about the vulnerability of the company's San Dimas ...

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