In Business Las Vegas, September 7th, 2007
In several years,
Las Vegas
' biotechnology industry could rank among the nation's top five.
"We are just at the base of it and it's getting ready to blow right open," said
Somer
Hollingsworth, president and chief executive officer
of the Nevada Development Authority. "We're on the forefront of this."
Hollingsworth
said the authority decided to focus on biotechnology once the Nevada Cancer Institute came to town.
The institute, with its top scientists, is a "gigantic magnet" drawing in other companies in the biotechnology and life sciences fields, he said.
"If the Nevada Cancer Institute had not come, we wouldn't even be spelling ‘biotech,’"
Hollingsworth
said. And the Alzheimer research foundation, the Lou Ruvo Brain Institute, slated for completion in late 2008, adds "fuel to the fire."
"All of a sudden, things came together for us," he said, although he noted that the
Las Vegas
won't become a national biotech center overnight.
There is little disincentive for biotech companies to set up shop in
Las Vegas
,
Hollingsworth
said.
For Southern Nevada
, the advantages include scientists and medical doctors who command higher salaries.
For the biotech professionals and companies, the biggest advantage is the absence of a state income tax on businesses and individuals.
Three years ago,
Daniel
Montoyo, president and chief executive director
of CardioVascular BioTherapeutics Inc. and Phage Biotechnology Corp., moved the corporations' headquarters to Summerlin.
About 50 people — including many of the corporations' senior scientists and medical doctors — moved from the
San Diego
area to the Summerlin location.
The two companies employ about 100 people in the
United States
and the
Ukraine
, where molecular biologists are paid about $300 per month for their research work, he said.
Attracted by the state's tax environment, and an affordable lifestyle for molecular biologists in his employ,
Montoyo
said it was an easy decision to relocate from
California
.
His company, which is researching regenerative medicine and growing vessels in the human heart to increase blood flow to extend life, as well as other theories, is anticipating building one large manufacturing plant in the Las Vegas Valley, and one somewhere else.
In the meantime,
Montoyo
said his company will keep its existing manufacturing plant and two research labs in
San Diego
, while it looks for a place to build in the valley.
Most biotech companies don't initially need a lot of space, he said. But if research proves their theory correct, and they move into production, the company will need between 100,000 to 500,000 square-feet of manufacturing space.
"That's the one disadvantage,"
Montoyo
said. "The value of land has become ridiculous. It's cheaper to get land in La Jolla,
Calif.
It's a sad situation."
The top five cities where biotech is based —
San Diego
,
Los Angeles
,
San Francisco
,
Washington
and
Boston
— are very expensive, high-tax environments,
Montoyo
said.
"I think
Vegas
will be able to pass one of those cities within 10 years, he said. "The bottom line is, when I speak with executives of other biotech companies, and go through the reasons (for relocating), they all start saying, ‘Wow, I need to have a presence in
Las Vegas
.’"
Ten years ago, that wouldn't have been the case, he said, because of the perception the prominent industry — gaming — is one of "non-thinkers,"
Montoyo
said.
When speaking with other industry executives,
Montoyo
said companies are at first shocked his company is based in
Las Vegas
. But when he tells them of
Las Vegas
' benefits, their interest piques.
"I know
Las Vegas
goes on their list of where they want to send their executives, at least," he said. "It's a trend that is starting and I think it's going to continue."
And there is big potential for profits, as the companies' products don't come cheap. One gram of Alpha-Interferon — being developed to treat such viral diseases as Hepatitis-C — sells for
Montoyo
said.$7 million,
UNLV is banking on a future demand for research and development space with its plans for the UNLV Harry Reid Research and Technology Park.
Bud
Pittinger, executive director
of the UNLV Research Foundation, said several life science companies have already expressed interest in the park, including big and medium-sized bio-pharmaceutical companies, and companies focused on biotechnology and medical devices.
The foundation, affiliated with the university, is a nonprofit organization and owns 115 acres of former federal land at the southeast corner of Durango Drive and Patrick Lane in the southwest valley.
While some companies may be interested in housing their administrative departments at the park,
Pittinger
said he is primarily interested in companies setting up shop there for research and development.
The site is zoned for light manufacturing, he said.
"The most significant thing we offer is a great location and a relationship with UNLV," he said. "We're creating a significant relationship with UNLV faculty, graduate students and undergraduate students (with) the potential to have access to ... core UNLV laboratories."
He added that the university and businesses would be able to intermingle research, training and educational activities.
"So it's a win-win,"
Pittinger
said.
He said he expects the park's master plan to gain final approval from Clark County within nine months, at which time construction will be able to move forward.
The estimated cost of the park won't be disclosed until the foundation bids out the project, he said.
Other industries that have expressed interest include renewable energy, biomedical research and clinical operations,
Pittinger
said. The Department of Homeland Security may also house training and research there, and the foundation is currently negotiating with six companies interested in leasing space, he said.
Individuals with an interest in promoting the valley's growing biotech industry formed a group to raise awareness and to offer an outlet for industry-insiders, venture capitalists, educators and scientists, said
Jennifer
Montague, a biochemist and executive director
of the Nevada Biotechnology and Bioscience Consortium.
"What
Las Vegas
needed was a group to pull everyone together,"
Montague
said. "It takes a lot of coordination, but when it works, it works really well."
Las Vegas
is poised to become a biotech center, she said.
"We're poised for exponential growth,"
Montague
said. "There is definitely an upward trend."
But she said it is vital to make venture capitalists aware of biotech opportunities.
"Biotechs never have enough money," she said, adding that the research and technology park could be a good source of space for labs.
"It's definitely the beginning stages of growth," she said. "It's the crest of the first wave."
