Disneyworld to DNA: Florida Gets Serious About Biotech

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Reported by Annette Kreuger for Industrial Info Resources (Sugar Land, Texas). While always high on the list of destinations for those seeking a dose of Mickey Mouse, ‘gators and early-bird dinner specials, Florida is now determined to attract biotech’s best and brightest minds. After successfully landing the Scripp's Research Institute East (Jupiter, Florida) (reference: Move Over Mickey, Scripps to Build $400 Million Florida Biotech Research Center In Palm Beach County), state officials realized that in addition to attracting serious research spending, here was a positive way to achieve notoriety for something other than questionable election results and right-to-die issues. In a bid to continue the momentum of raising its reputation as a site for serious science, the state now has two lucrative deals on the table to entice the Torrey Pines Institute for Molecular Studies (San Diego, California) and The Burnham Institute (Torrey Pines, California) to build new research campuses.

When Scripps determined that it wished to establish an east coast presence, tradition decreed it far more likely to land in New England or the Mid-Atlantic. The idea of a prestigious research group like Scripp's moving to Florida was viewed as almost preposterous when first tossed out a few years ago. Lacking a major life science presence or an organized biotech infrastructure, the state was not considered as being in the same league as the big boys in terms of site selection for the project. Surprise! It is amazing what some land and several hundred million dollars in incentives will do to overcome image problems.

One by one, the issues surrounding the reluctance to locate by researchers in what many considered an intellectual backwater state were addressed in a variety of ways. State and private dollars began flowing into the universities funding a stunning array of elaborate research complexes. New academic programs were added to ensure a fresh supply of newly minted graduates with more than spring break on their minds. A current analysis of active capital projects (reference: Pharmaceutical Tracker - Online Database) reveals that Florida has 26 life science projects representing a total investment value of over $1 billion in various stages of development.

Click on the image at right to view a chart showing the breakdown of active life science projects by county

It doesn’t take a genius to appreciate the attraction of Florida’s low cost-of-living factors stretching personal income much further than in other traditional biotech hub locales. While the real estate market is currently booming in Florida, the numbers do not lie. In 2004, the home prices averaged a blood-pressure spiking $568,400 in greater Los Angeles, as opposed to greater Miami’s infinitely more calming total of $391,200.

Following in the wake of Scripp’s success, Torrey Pines and The Burnham Institute decided to take a look at opening research centers in Florida. Awaiting final site studies and incentive packages, both have at least two sites under consideration in Florida. There has been no indication that if the companies eventually build new facilities in Florida that their respective operations in California will close.

Interestingly enough, all of the institutes lured thus far by Florida’s siren call are from California. Smugly secure as home of one the world's largest group of biotech operations, the state has become notorious for offering less than stellar incentives for new capital investment. It might be wise for state officials to get off of their reputation and start to rethink how to not only grow but to retain what they have. In light of today's highly competitive site selection atmosphere, companies are considering all of their options before committing to an expansion in place.

Today, despite the naysayers and environmental issues (reference: Not in My Orange Grove...EPA Tells Scripps Florida to Find Another Site for $300 Million Biotech Campus), Scripp's Florida is now operating out of a temporary facility on the grounds of Florida Atlantic University in Jupiter, with a $15 million expansion already under construction. Now that the final site has been selected for the institute’s eventual new home, construction is expected to begin soon. For those doubting California faces any true threat to its biotech base, just take a look further north to Michigan. Who ever imagined the auto industry would just drive away while the state was asleep at the wheel?

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