Life Scientists Keep Georgia on Their Minds

Image: Courtesy of Georgia Department of Industry, Trade and Tourism NO SMALL PEANUTS: The state houses 500 bioscience companies that employ 13,000 workers. Anne Whalen, a molecular biologist, had no job when she and her husband relocated to Georgia three years ago from Jackson Hole, Wyo., so he could take a position at an Atlanta-area biotechnology company. She figured it would take her a while to land a life science job as well, but the market surprised her. "I didn't expect to find as much as I did coming here," she says. "There were a lot of choices and places of interest for my skills." Whalen found a research position at Emory University. But Atlanta's notorious traffic jams gave her a daily two- to three-hour commute from Alpharetta. So when AtheroGenics, a biotech spinoff from Emory, offered a job in her community, she took it. As a principal scientist, Whalen seeks new drug targets for treating chronic inflammatory diseases such as atherosclerosis, rheumatoid arthritis, and asthma. AtheroGenics is the kind of biotech company Georgia wants to rear: homegrown, focused on research, with products moving into commercial viability. "We are very aware that we can excel in very defined niches," says Margaret Wagner Dahl, director of research, development, and technical alliances for the Georgia BioBusiness Center (GBBC), a life sciences incubator affiliated with the University of Georgia in Athens (UGA). The niches include animal and plant genomics and proteomics, drug discovery, and vaccine development. "We're not going to haul off and become the next Silicon Valley," Dahl says. "We're being realistic; we need to build critical mass." RESEARCH HEARTH The state already is home to a half-dozen major research universities, the federal Centers for Disease Control and Prevention (CDC), and 500 bioscience companies that employ more than 13,000 workers.1 The Georgia biobusiness network includes UCB Pharma, Solvay Pharmaceuticals, and Pharmacia, and the state now ranks ninth in the United States for the number of biotech companies, up from 11th place in 2001. Not surprisingly, California, Massachusetts, and Maryland head the list.2 "We'd like to get into the top five," says C. Michael Cassidy, president of the Georgia Research Alliance (GRA), a nonprofit consortium of the state's major research universities, government, and industries. "Our goal is not to displace California or Massachusetts, but we could be more comparable to North Carolina, New Jersey, or Pennsylvania, based on the pure numbers." Most of Georgia's biotechs are clustered near Atlanta and Athens, with some development farther east near the Medical College of Georgia in Augusta. "We would like to develop biomanufacturing facilities along that corridor, while at either ends we house the early-stage, discovery-based startup companies," Dahl says. But the state faces significant challenges, as do other fledgling biotechnology centers. Industry leaders decry a dearth of wet-lab space and biotech financial investment. Also in short supply are senior managers experienced in pushing biotech companies to profitability. "We need to be sure we have the next level of infrastructure and resources to finish the job of nurturing the companies so they can stay here," Dahl says. Industry leaders are lobbying state lawmakers for tax and other incentives for developers to build biotech facilities. "If we can keep these companies, it'll be easier to attract senior biotechnology-experienced management." Over the past dozen years state government, academia, and business leaders have launched multiple programs to foster biotech development. The GRA, one of the earliest such efforts, has invested $350 million (US) in state funds to recruit top scientists, outfit its labs and facilities, and support programs to help move its research to the marketplace. GRA-funded university research has so far led to 75 spinoff companies. The GRA's eminent scholars program has recruited more than 40 scientists to endowed positions at six universities (UGA, Medical College of Georgia, Emory, Clark Atlanta University, Georgia Institute of Technology, and Georgia State University). Typically, eminent scholars devote half their time to their universities and half to biotech development. "They have recognized the importance of harmony between industry and academia," says Alan Robins, senior vice president and chief scientific officer of Athens-based BresaGen. A tenant with BresaGen in the GBBC is ProLinia, an agricultural biotech company that commercializes animal cloning research pioneered by Steven Stice, a scientist recruited to UGA. The company recently produced a calf cloned from cells of an Angus-Hereford carcass taken two days after the cow had been butchered in a meat packing plant. "This could be very successful in producing an improved breeding animal," says Clifton Baile, ProLinia's chief executive. The Advanced Technology Development Center (ATDC), one of the nation's first state-funded, university-associated economic development programs, also incubates biotech startups. In October, ATDC will open 22,000 square feet of wet-lab space, offering companies below-market rents, says Lee Herron, ATDC's associate director of biosciences. Last year, ATDC and GRA launched VentureLab at Georgia Tech, a program designed to foster faculty entrepreneurship by pairing scientists with business people. VentureLab officials expect to create four new companies by year's end. THE BENEFITS OF BIOTERROR A highly visible benefit to biotech is the CDC, with nearly 2,500 scientists among its 5,600 employees in the Atlanta area. The CDC has an active technology transfer program, with up to 300 patented inventions available for license, says Thomas O'Toole, deputy director of the technology transfer office. CDC also enters into cooperative research and development agreements with industry partners, especially with small businesses. The CDC "provides a tremendous source of scientific expertise and raw technology," says Lauren Owenby, manager of life sciences business development for the state's Department of Industry, Trade, and Tourism. "We're impressed with what's available from them," adds David A. Dodd, president and chief executive of Serologicals, an Atlanta-based supplier of human antibodies for producers of therapeutic drugs and diagnostic tests. The company, with $140 million in annual sales, employs 200 people in the state. With increased attention to bioterrorism countermeasures, CDC has embarked on a 10-year, $1 billion plan to renovate and replace decaying buildings and facilities. While the allocation of federal funds to counter bioterrorism are not yet finalized, the presence and expertise of CDC will play out very favorably for biotech in the long term, predicts William D. Johnston, president and chief executive of Inhibitex, an Alpharetta-based biopharmaceutical company with 60 employees. The company develops antibody-based treatments for bacterial and other infections. This year, Inhibitex closed a $45 million round of private equity investment, making it one of the few bright spots for capital infusions in the state. ACADEMIC MEGAPOLIS Last year, Georgia's universities and institutions garnered nearly $265 million in grants from the National Institutes of Health--the state ranks 18th among US recipients for federal funding. The major research universities also have established specialized centers and programs for biotech and the life sciences: Georgia Tech has established a $30 million center for bioinformatics and computational biology; Georgia State operates a suite of advanced biotech core facilities, including centers for combinatorial chemistry, biosensing, and viral immunology; UGA has an applied genetics technology program for animal and plant genomics; and Emory operates a federally funded vaccine research center. "Unlike some major urban areas having only one major research institution, we have multiple institutions engaged in a broad range of industry activities," says Michael Gerber, president of the Atlanta Regional Consortium for Higher Education. Georgia has one of the nation's highest cancer rates (believed largely due to smoking and diet), and cancer research promises to be another important biotech driver. The state recently created the Georgia Cancer Coalition (GCC), a $1 billion initiative spanning seven to 10 years to coordinate cancer prevention, treatment, research, and education. With $400 million from the state's tobacco settlement funds, the GCC will fund oncology research and establish a statewide clinical trials network. SOUTHERN COMFORT Georgia's warm climate and favorable quality of life make it easier for biotech companies to recruit workers, especially from snowbelt states. "As the biotech industry matures and management improves, things will work out nicely because people love living here," says Robert McNally, president of Cell Dynamics, a supplier of human cell lines for pharmaceutical research. "Once they move here, people just don't want to leave." Looking for a home "was like shopping in a candy store," Whalen says. "There are lots of variety and choices." Among major US metropolitan areas, Atlanta ranks 34th in home affordability (Boston ranks 161st and Los Angeles 176th).3 Like most large cities, Atlanta has its share of social problems. Public elementary and high schools in the city are struggling, while those in the outlying suburbs tend to be in better shape. Aside from the traffic and summer heat, Atlanta is an attractive place to live and work. "Culturally it's a diverse city," Whalen says. "It's nice to have a community of people around who understand what you do and can contribute to it. It's just a nice place to be." Ted Agres (tedagres@lycos.com) is a freelance writer in Washington, DC. References 1. Battelle Memorial Institute, "A Strategic Framework to Make Georgia a Leader in the Biosciences," Cleveland, Ohio, 2002. 2. Ernst & Young, "Beyond Borders: The Global Biotechnology Report, 2002," New York. 3. National Association of Home Builders, "Housing Opportunity Index: First Quarter 2002," Washington, DC.

Life Scientists Keep Georgia on Their Minds

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Image: Courtesy of Georgia Department of Industry, Trade and Tourism
NO SMALL PEANUTS: The state houses 500 bioscience companies that employ 13,000 workers.