The St

The St. Louis BioBelt Announces Four Major New Initiatives to Attract, Retain And Grow Start-Up Biotech Companies;

PR Newswire – June 22, 2003

3529 06/22/2003 08:00 EDT http://www.prnewswire.com

Pfizer, Solae & Bio Venture Forum Choose St. Louis BioBelt

WASHINGTON, June 22 /PRNewswire/ — Long known as the home of global plant and life science leaders like the Monsanto Company, Sigma-Aldrich and biomedical research powerhouse Washington University, the St. Louis region or as it has been dubbed, "The BioBelt—the Center of Plant and Life Sciences," is well along in launching four major new initiatives designed to position the region as a "location of choice" for start up and evolving plant and life science companies.

In recent weeks, entrepreneurial life sciences companies Pfizer and Solae have selected St. Louis as the focal point for their biotech operations. Additionally, the Biotechnology Industry Organization (BIO) just last week announced that St. Louis has been selected to host the BIO MidAmerica Venture Forum in 2004, due in large part to the region's critical mass of venture capital and life sciences start up companies.

The four St. Louis civic initiatives, which are designed to provide an expanded physical infrastructure for start up and evolving biotech companies, as well as the ongoing venture capital necessary to foster their growth, announced during the BIO 2003 Convention in Washington D.C. (June 22-25, 2003) are:

· Technopolis, a 1,000-acre urban advanced technology research district;

· A suburban research park adjacent to the Donald Danforth Plant Science Center consisting of up to 180,000 square feet of commercial, multi-tenant office and wet laboratory space; the initial phase of the project will consist of 60,000 square feet;

· A $5 million Commercialization and Tech Transfer Center to provide proof-of-concept funds for early stage technologies and a companion $12.5 million pre-seed venture capital fund focused on the St. Louis region to complement the $280 million already raised to back early stage life science companies in the St. Louis region and,

· Plans for a new St. Louis-based later stage "Fund of Funds."

According to Dr. William H. Danforth, chancellor emeritus of Washington University and the chairman of St. Louis' Coalition for Plant and Life Sciences, "The St. Louis region is rapidly building a reputation as a global center for plant and life science research, investment and business opportunity due in large part to a unique combination of private/civic leadership that is dedicated to providing a vibrant environment in which bioscience companies can grow and prosper."

"Having seen substantial progress since the St. Louis Battelle Strategy was completed in late 2000 in areas such as branding, early stage venture capital, and life sciences facilities, these four new initiatives will further cement that reputation by significantly expanding our region's commercial wet lab space and access to early and later stage venture capital," Danforth said.

The Coalition for Plant and Life Sciences was created by the St. Louis Regional Chamber and Growth Association (RCGA) and other civic partners to implement a set of five overall strategies and 20 actions suggested by the Battelle Memorial Institute when it completed its independent analysis of the St. Louis region's strengths in plant and life sciences. The Coalition is comprised of 32 of the region's top civic, private and academic leaders.

"As outlined in the recommendations of the Battelle study, our region's economic development strategy is predicated not only on recruiting mature companies, but also on establishing, nurturing and expanding early stage life sciences firms -- and that means providing a physical infrastructure, as well as a steady flow of venture capital and entrepreneurial talent," said Richard C.D. Fleming, president and chief executive officer of the St. Louis RCGA.

"The bi-state St. Louis community is civically aligned behind this long term strategy to fulfill St. Louis' aspiration and intent to be the BioBelt, the Center of Plant and Life Sciences," Fleming added.

Life Sciences Physical Infrastructure

Two new research and commercialization projects are in the planning and development stages, one located in a 1,000 acre area in a midtown St. Louis setting called Technopolis (between downtown St. Louis and the Washington University Medical Center), with the other located in the City of Creve Coeur in suburban St. Louis County (adjacent to the Donald Danforth Plant Science Center). These two development areas will provide much needed multi-tenant wet lab and related life sciences infrastructure in two key locations in the St. Louis area, immediately adjacent to well established, world-class research institutions.

Technopolis is a unique collaboration of key research institutions including Washington University, Saint Louis University, the University of Missouri-St. Louis, the Missouri Botanical Garden and the 22,000-employee BJC Health Care System to transform this 1,000-acre area in midtown St. Louis into an urban "advanced technology research district." Each of these institutions, plus the Center for Emerging Technologies, a 100,000 square foot, award- winning life sciences business incubator, are located in the new urban research district and plan to jointly capitalize on the world class research coming out of these organizations.

The suburban development is a joint effort between the Donald Danforth Plant Science Center and The DESCO Group to develop, in multiple phases, up to 180,000 square feet of multi-tenant commercial wet lab space on eight acres of land adjacent to the Danforth Center in suburban St. Louis County. Much like its urban counterpart, this new commercial research and development space will benefit from unique anchors in the Danforth Center, the Monsanto Company world headquarters and the region's other life sciences business incubator—Nidus Center for Scientific Enterprise.

Commercialization and Tech Transfer Center

"Providing a physical infrastructure for start up companies is not enough," said Danforth. "We must also provide access to much needed pre-seed venture capital and entrepreneurial assistance if we are truly to succeed in our efforts to fulfill the St. Louis region's documented potential as a world leader in plant and life sciences."

The original Battelle strategy challenged the region to amass at least $100 million in locally-managed venture capital. Despite a very difficult national venture capital market, the St. Louis region, in less than 24 months, has become home to four-locally managed life sciences venture capital funds (Ascension Health Ventures, Oakwood Medical Investors, Prolog Capital and RiverVest Partners) that have already raised more than $280 million to back early stage bio-related companies.

Now, the BioBelt has announced the formation of a not-for-profit Commercialization and Tech Transfer Center that will provide more than $5 million in proof-of-concept funding and entrepreneurial and pre-seed capital support to help create new life sciences companies.

Believed to be the first of its kind in the nation, the Commercialization Center was supported by feasibility funding from the St. Louis RCGA and is being implemented by funding coming from the Danforth and McDonnell Foundations, the Monsanto Fund, and Bunge North America. The Center represents a collaboration among the technology transfer enterprises at Washington University and Saint Louis University, as well as the region's two advanced technology business incubators, the Center for Emerging Technologies and Nidus Center for Scientific Enterprise. The proof-of-concept funds will help insure a steady flow of new technology-based companies, providing deal flow for venture capitalists and companies to locate in the research districts.

In addition to the $280 million already raised in recent months via four locally-managed venture capital funds, the St. Louis BioBelt has raised an additional $12.5 million for a new pre-seed venture capital fund that will invest in St. Louis-based early stage life sciences companies in conjunction with the Commercialization and Tech Transfer Center. Investors in this new fund include the Danforth and McDonnell Foundations and Washington University.

"The entire St. Louis life sciences community is very excited about the Commercialization Center, since it will dramatically help to identify the commercial viability of new technologies by providing proof-of-concept loans and expert assistance and advice for the researchers who are developing these new technologies," said Robert Calcaterra, president and chief executive officer of Nidus Center for Scientific Enterprise. "Additionally, the Commercialization Center creates an active pipeline for venture capitalists by increasing the number of entrepreneurial start up life sciences companies in the St. Louis region."

Later Stage Life Sciences Venture Capital Funding

Fourth and finally, the St. Louis region is completing a feasibility assessment and plans to establish a new $100 million, later stage St. Louis-based life sciences "Fund of Funds" that will also attract new institutional investors and venture capitalists to the St. Louis market. The proposed later stage "Fund of Funds" will complement the early stage funds already established in the St. Louis region.

According to Peter Brooke, chairman and founder of Advent International, a Boston-based venture fund that has raised more than $6 billion since it started in 1984, "What has impressed me about St. Louis is the depth and quality of the region's university and corporate research base in the life sciences, the development of the region's venture capital industry, the infrastructure and the civic commitment to incubate and nurture young life sciences companies." According to Brooke, who is part of the team retained by the Coalition for Plant and Life Sciences to conduct the feasibility study, "all signs indicate that there is more then enough deal flow to support a later stage life sciences venture capital fund in St. Louis."

Community Support

According to Hugh Grant, president and chief executive officer of Monsanto, "The St. Louis region is creating a fertile, creative environment, not only for start up companies, but also for established organizations like Monsanto to thrive by attracting talented people to the region. This, coupled with a competitive cost of doing business and an excellent quality of life, creates real value for Monsanto and other science-based companies. With the concerted support of our civic, public and academic leadership, we will continue to successfully build the BioBelt into one of the world's preeminent centers for plant and life sciences."