New York Bets $650 Million to Spark a Biotech Boom

December 13, 2016
By Alex Keown, BioSpace.com Breaking News Staff

NEW YORK – New York is making a play to become the biggest biotech hub on the east coast. Gov. Andrew Cuomo announced a $650 million initiative to spur the growth of a new, world-class life science research cluster in New York.

The initiative includes $250 million in tax incentives for new and existing life science companies, $200 million in state capital grants to support investment in wet-lab and innovation space, $100 million in investment capital for early stage life science initiatives, with an additional match of at least $100 million for operating support from private sector partnerships, according to a statement from the governor’s office.

All of the financial incentives are important, but the grants to provide needed lab space may be a key. The governor’s office said the lack of affordable and appropriate lab space has been cited as a barrier to New York reaching its potential in the life sciences. As a remedy, the state will open up “more than 3.2 million square feet of innovation space and 1,100 acres of developable land available tax free at 45 colleges and universities statewide.”

“The availability of grants, land and space creates an unprecedented opportunity to expand access to wet labs, infrastructure and other equipment essential for life sciences research, innovation and development,” the governor said in a statement.

New York is making a strong bid to become a rival, if not surpass, the two leading biotech hubs in the greater Boston area and the Bay Area around San Francisco.

While space is important, another factor that Cuomo identified as essential to the establishment of New York as a leading hub is talent. Part of the initiative is aimed at attracting top talent. The governor’s office is establishing a life sciences researcher recruitment program that will work with the state’s academic medical colleges and other academic programs to attract top-flight life sciences researchers.

"New York is uniquely positioned to become a global powerhouse in the life science sector and this groundbreaking initiative is making the investments and establishing the programs necessary for capitalizing on our tremendous potential," Cuomo said in a statement. "From providing the incentives to attract top talent and drive innovation, to providing the space that emerging life science companies need to grow, we are breaking down barriers and helping the industry gain momentum. Now, the Empire State is well-positioned to be the home of future discoveries that will move our economy forward and save lives across the world."

The New York initiative is something that some pharma leaders have been calling for. Last year Paris-based Cellectis selected to come to New York last year. In April 2015, Cellectis announced it had snapped up a new 12,000-square foot facility, which includes state-of-the-art research laboratories. The company moved to New York to develop its engineered CAR-T cells to treat cancers such as leukemia and solid tumors. Andre Choulika, chief executive officer of Cellectis, said the company selected its new location at the Alexandria Center due to the number of biotech companies, academic and medical institutions in the area. Additionally, Choulika said another attractive feature is the home to a plethora of “robust financial” markets in the area, resources the company may like to tap into in support of future funding for research and development.