The States on the Rise
A plethora of opportunities in emerging markets
What gives the US its competitive advantage on the global scene is, beyond healthy competition, the complementarity of its hubs. In that sense, seeing Tier 2 markets emerge alongside the country’s “Big Four” (Boston, Philadelphia, San Francisco, and San Diego) is highly encouraging for the industry. Scientists and entrepreneurs looking to develop a novel generation of drugs can set foot in Boston, New Brunswick, or San Francisco and find a plethora of opportunities. Behind the country’s powerhouses, researchers more comfortable in labs will feel welcome in North Carolina’s Research Triangle Park, whereas manufacturers from all over the world can expand through greenfield and brownfield opportunities in Oklahoma, Ohio, or Indiana, the state with the highest concentration of advanced manufacturing jobs in the US.
Made in America: The Biomanufacturing Advantage
With the “Big Four” leading innovation in the biotech space, opportunities are to be grasped in the lengthy and demanding value chain from concept to commercialization. Investors and entrepreneurs looking at the square foot price of facilities, access to a skilled workforce, along with flexible tax and post-pandemic remote working policies, have options in the heart of the country; Oklahoma, Ohio, Indiana, North Carolina, Chicago, and Texas, to name a few. One common thread across those states is the presence of an established culture of biomanufacturing, namely the production of large molecule drugs, like antibodies and enzymes, from living cells. Biomanufacturing resilience across the country became a top public policy priority post-COVID, particularly for the supply chain of vaccines.
America’s Midwest has been the heartland for manufacturing and farming for generations. Today, of the 12 states that make the region, Illinois, Indiana, and Ohio are in a leading position to reshape economic growth through life sciences manufacturing. INCOG and CMC Pharmaceuticals both listed their respective states’ manufacturing capabilities and strategic locations as the leading factors for investment attractiveness. Mike Radomsky, CEO of CMC, shared: “Ohio's strategic location and supportive ecosystem for life sciences companies make it an attractive destination for businesses seeking to expand or establish a presence in the Midwest.”
The influx of investment in manufacturing facilities in recent years in Indiana is unlikely to wane anytime soon. In October 2023, the state was designated a leading “federal technology hub” by the US Department of Commerce, which should allow the state to compete for millions of dollars in life sciences investment and further strengthen its position as a biomanufacturing hub. Indiana leads the US in pharma exports and has the second-highest concentration of life sciences jobs in the country, along with being the only state to manufacture all three COVID-19 vaccinations. Tedd Green, co-founder and COO of INCOG, shared: “Indiana and the Fishers area provide access to a skilled workforce with relevant experience in life sciences, which is crucial to our success. Moreover, Indiana's strategic location facilitates engagement with a global customer base.”
The modest heaven of R&D that sits between Raleigh and Durham – the Research Triangle Park – certainly boxes above its weight class in the life sciences ecosystem. Close to 800 life sciences firms, along with 2,500 associated service providers, call the Triangle home. Among them are renowned pharmaceutical giants like Biogen, Novartis, Pfizer, and others. Every day, new biotech ventures are cropping up with an NC ZIP Code. And again, beyond Duke University and the University of North Carolina at Chapel Hill receiving the lion’s share of the US$2billion+ NIH funding, the area distinguishes itself for its expertise in biologics manufacturing, with over 36,000 biomanufacturing employees across 108 sites. Its neighbor South Carolina is also a growing state for manufacturers. Out of the Netherlands, CurTec manufactures high-performance material for pharma firms. As the firm expands, it elected in 2023 Westminster, SC, as its US home. CEO Bart Van Berkel explained: “South Carolina is a growing production hub, which means there is ample talent. From a logistics perspective, the state is geographically well-located to easily reach customers.”
In the South, Oklahoma is carving itself a share of the development and manufacturing pie; particularly through a recent series of private loans and public grants. The Oklahoma Biotech Innovation Cluster Initiative received a US$35 million grant from the Federal government to bolster its growing life sciences industry. The grant will help launch six biotech projects in Oklahoma City, which, despite being lesser known on the pharma map, has significant potential for the expansion of emerging biotech as it is triple the size of Boston or the Bay Area. Touching on the city’s competitive advantage in biomanufacturing, Stephanie Wickham, senior director of technical sales and technology at Cytovance Biologics, a homegrown CDMO, explained: “Oklahoma has a strong academic presence across the state, with many researchers focusing on different facets of biomedical research. There are a lot of technologies coming out of the universities, backed by VC firms, and recently, significant state and federal investment to build the biomanufacturing economy in the region.”
The list of emerging life sciences hubs has not drastically changed over the years, but some areas are seeing their influence sustained more than others. Biotechs can now move out of the “usual suspects” to do business, and firms can attract funding even outside of the “Big Four.” A recent CBRE report indicates that Chicago has 350,000 sq. ft. worth of demand, more than the city is building. Home to biopharma heavyweights and the world’s largest stock exchanges, the Big Apple also has about 860,000 sq. ft. of new and converted lab space in the works. Across the US, there is room for growth.
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