Biotech company growing

Expansion seen as lure for more firms

MOUNT PLEASANT — If you build it, more of them will come. That's the hope of town officials regarding the $33 million expansion of biotech firm GenPhar Inc., a project made possible by town, county and state government incentives.

Officials are scheduled to gather this morning for a groundbreaking ceremony at the site of the company's new, 50,000-square-foot headquarters near U.S. Highway 17 and Porcher's Bluff Road.

"The company's investment will serve as a strong testimonial to attract additional bioscience investment to our community," said Mayor Harry Hallman.

GenPhar said in a statement Thursday that its expansion could lead to a cluster of biotech companies in the town along the lines of Research Triangle Park in North Carolina, which it said began as an investment by a few forward-thinking individuals.

"GenPhar is a highly innovative company that will provide high-paying jobs for our residents and pave the way for additional biotech companies," said Councilman Paul Gawrych.

GenPhar makes biodefense vaccines for deadly diseases such as Ebola and Marburg, and it manufactures vaccines for chronic infectious diseases such as HIV, hepatitis B and hepatitis C. The company wants to use its patented biodefense vaccine technology to secure a federal contract under the 2004 Project BioShield Act.

Such a contract could be worth up to $1 billion, GenPhar said. It cited the VaxGen company's recently secured $877.5 million contract to develop an anthrax vaccine. And it cited Bavarian Nordic's contract to develop a smallpox vaccine that is worth at least $500 million, with options to provide the company up to $1.6 billion.

Biotechnology is a clean industry that preserves the Lowcountry's beauty, the company noted. John Dong, GenPhar's president and chief science officer, selected the town for expansion over locations in Seattle, Houston, Pittsburgh and the Research Triangle Park. He noted that the Lowcountry is one of the most beautiful places in the world, and it has an untapped talent pool.

"I expect other biotech companies will capitalize on these resources," Dong said. He said the expansion would not have been possible without the incentive package offered by state, county and town governments. He declined to discuss specifics of the package.

The town of Mount Pleasant, Charleston County and Mount Pleasant Waterworks split the $60,000 cost for roads, water and sewer, town Economic Development Coordinator Myles Stempin said.

The state provided tax breaks and job development credits. SCE&G and AT&T chipped in utility tax credits, Stempin said.

Construction of the new GenPhar headquarters begins next week and will be completed in January, GenPhar spokesman John Johnston said. The company will relocate from a small brick building for 20 workers on Low Country Boulevard to the new facility for 140 high-skilled employees at the Market at Oakland's Innovation Park, next to Morgan's Point Road.

Handling of the deadly Ebola and Marburg viruses to test the GenPhar vaccines is done by the Army at its Medical Research Institute of Infectious Diseases in Fort Detrick, Md.

The Army is currently testing the GenPhar Ebola vaccine on monkeys. The monkeys are treated well, and the vaccine testing does not kill them, Johnston said.

Human trials of the vaccines will be required before the government approves them, he said.

In addition to GenPhar, the Market at Oakland will be home to a new Wal-Mart and Kohl's, among other businesses.

The GenPhar facility will be at the rear of the development behind a tree line, Johnston said.