New Biotech Lab To Give BASF U.S. Presence

The chemical giant, looking for a better research climate, joins other German firms in the Western Hemisphere Eluding pressure from environmentalists and biotechnology regulators at home while looking for new markets to conquer abroad, the West German chemical giant BASF Corp. is establishing a foothold in the United States, with a $100 million research facility at the Massachusetts Biotechnology Park in Worcester. BASF's decision in 1988 to set up shop in the U.S. is the latest example of an exodus of West German biotechnology companies from their homeland. More recently, Bayer, USA announced that it would open biotechnology labs in West Haven, Conn., and Berkeley, Calif.; and Henkel Corp. chose Santa Rosa, Calif., as its new biotechnology home. Meanwhile, Hoechst AG's nearly completed $38 million biotechnology facility in Frankfurt has sat idle since 1987, while West German politicians and scientists wrangle over rules and regulations to govern the biotechnology industry. The problem is that West Germany does not have a generally accepted gene technique law, says Erich Schlick, president of BASF Bioresearch Corp., a unit of the parent company that conducts biotechnology research in the U.S. Different regulations govern research and production, and the production guidelines are especially vague, he says. "It's unclear if it's going to be possible to do production of genetically engineered compounds in Germany," says Rolf-Dieter Acker, BASF's director of biotechnology research. Adds Schlick, "In the U.S. the rules are strict, but [they are] clear-cut." Opposition to genetic engineering in West Germany has become a major plank of the environmentalist Green Party, which has converted widespread public mistrust of scientists and government into growing political strength. For some Germans, biotechnology raises concerns that mutant organisms will be released into the environment; also, for some Germans, the emerging scientific field arouses memories of the Nazi eugenics experiments of the 1930s and 1940s. Although the West German parliament, the Bundestag, hopes by this summer to resolve a debate on a new gene law, industry leaders fear that the regulatory climate will remain unduly restrictive. In fact, one group of scientists - concerned that curbs on research might be increased - recently signed a statement demanding a guarantee of their right to conduct genetic engineering research. Despite the clouded outlook at home, BASF executives downplay its importance in shaping their decision to move to the U.S. They prefer to see the new Massachusetts facility as a chance to take advantage of favorable business and scientific opportunities. "We thought it was important to internationalize our efforts," says Acker. "Europe is a big pharmaceutical market, but the U.S. is even bigger." Not only is the U.S. market the biggest in the world, says Schlick, but the research community is also the largest. "We will have much better access to a larger pool of scientists," he says, adding that BASF Bioresearch has already collaborated with the National Cancer Institute (NCI) in the development of chemotherapeutic agents. But Schlick doesn't deny that the opposition at home was a contributing factor. "The regulatory conditions were the drop that made the glass flow over," he says. Whatever the reasons for the move, the U.S. outlook for BASF is rosy in the eyes of company officials. The firm already has planted a seed group at a small laboratory in Cambridge, and it has been nourishing relationships within the scientific community both in the Boston area and throughout the U.S. For example, scientists from the Dana Farber Cancer Center, the Whitehead Institute, the Pittsburgh Cancer Institute, and NCI have agreed to sit on its scientific advisory board. By the end of the year, Schlick says, Cambridge Worcester laboratory should employ 18 Ph.D.-level scientists. After its completion in 1993, he adds, the 250,000-square-foot facility in Worcester will employ about 50 to 60 Ph.D. scientists and a technical staff of 200. By the year 2000, BASF plans to double the size of the facility, making it possibly the largest biotechnology research institution in the U.S. Although the first BASF scientists to begin work in Cambridge were German, Schlick says the company now has mostly U.S.-trained employees. If early recruitment campaigns are any indication, BASF will have no trouble finding top-notch molecular biologists to fill its ranks, says Schlick. One such recruit, molecular biologist Cynthia Romerdahl, will be joining BASF this summer from Oregon State University. She says she is leaving academia because she believes she can accomplish more in an industrial setting. "It's increasingly difficult for an individual working on research grants to make a big contribution to cancer research," says Romerdahl. The BASF lab looked particularly attractive, she says, because of its stable funding base. "And the research is certainly the same wherever you do it," she adds. BASF Bioresearch Corp., a subsidiary of BASF Corp. Based in Worcester, Mass. When completed in 1993, its facility will: employ 250 people, including 50-60 Ph.D.'s; occupy 250,000 square feet; and cost $100 million. BASF Corp. (includes Knoll Pharmaceuticals) Based in Parsippany, N.J.; 20,000 employees in North America. Producers of chemicals; audio, video, and computer media; pharmaceuticals; advanced materials; and other products. 1989 sales: more than $5.6 billion. BASF Group Based in Ludwigshafen, West Germany Employs 145,000 people worldwide; @AT A GLANCE: 1989 sales: approximately $30 billion. BASF plans to relocate the majority of its oncology and immunology research from West Germany to the Worcester facility but will continue other biotechnology operations at its pharmaceutical sub- sidiary, Knoll AG, in Ludwigshafen, West Germany. Knoll has a history of conducting research on heart disease and central nervous system pharmaceuticals, and since 1980 has had an American counterpart, Knoll Pharmaceuticals, in Whippany, N.J. The New Jersey group conducts clinical studies and engages in manufacturing, but is not involved in basic research. BASF's decision to relocate oncology research to the U.S. was made easier by existing research collaborations with NCI, the University of Arizona at Tucson, and Saint Jude Children's Hospital in Memphis. According to Schlick, these projects involve nongenetically engineered products that reverse tumor cell resistance to chemotherapeutic drugs. In addition, BASF will be moving the majority of its tumor necrosis factor (TNF) research from Knoll AG to BASF Bioresearch. In fact, says Acker, the difficulty that BASF has faced in trying to get West German approval for its TNF process was one factor that hastened its move to the U.S. Looking ahead, Schlick says the company hopes to build collaborations with scientists at Boston University, the Massachusetts Institute of Technology, and the University of Massachusetts. BASF's choice of Worcester puts it in the geographical center of an especially active biotechnology research area, with Boston an hour to the east and Amherst - and the University of Massachusetts - an hour to the west. Ironically, the region has already experienced some of the same debates about the safety of biotechnology that are now inhibiting research in West Germany. In 1976 Cambridge was one of the first communities to protest recombinant DNA research in the U.S. Today, the nonprofit Worcester Business Development Corp. and the commonwealth of Massachusetts have worked together to build the 75-acre Massachusetts Biotechnology Research Park. Twelve biotech firms and five nonprofit research organizations have already opened at the park, where they will have easy access to the University of Massachusetts Medical Center, nine other academic institutions, and a number of other shared facilities. Raymond L. Quin-lan, executive director for the park, says that, with the addition of BASF, Worcester will have "by far, the biggest concentration of biotech companies in the U.S." Quinlan cites additional factors that make the park attractive to biotech firms. "The community has a political and social commitment to the park," he says. "They want biotech firms here. They know what biotech is about, and they like it." Quinlan says this community support grew because citizens were involved early on in planning the park. At the same time, biotech companies are increasingly confident that the community is not going to reverse itself and try to limit their activities. And size also translates into greater clout. If a problem arises, says Quinlan, the 13 companies together can speak to government officials as one very loud voice. "The commonwealth worked diligently to lure people here, and I think they are going to be very successful," says Joseph Michaels, vice president of administration and services for BASF Bioresearch Corp. Michaels says his company expects to benefit from the stimulating environment. "The synergies will be better, and we'll each grow from that," he says. Lisa Bain is a freelance writer based in Philadelphia.

New Biotech Lab To Give BASF U.S. Presence

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