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Technology in Virginia

Biotechnology keeps up its slow, steady growth
This once-sleepy city is the growth champ of Hampton Roads

Related story:
A chat with the head of the Virginia Bio-Technology Research Park

by Robert Burke
Virginia Business
June 2003

Biotechnology in Virginia continues to grow. For evidence, consider the $500 million Janelia Farm project now taking shape on farmland in northern Loudoun County. The look is distinctively different with its terrace-style design, dug into a hillside and barely rising about ground level. The project, developed by the Howard Hughes Medical Institute, also has a unique mission. When it opens in three years, the facility will be a premier biomedicine research center, bringing together teams of scientists from diverse fields to work in a huge complex of state-of-the-art laboratories.

Janelia Farm highlights the enormous changes in biology research brought on by breakthroughs in human genome studies and the increasing use of computers in science. “The landscape of opportunities in the biomedical sciences is not what it used to be,” says Thomas Cech, president of the Maryland-based Hughes institute. The private institute, which has a $10 billion endowment, is building the center on a 281-acre site on the Potomac River a few miles from Dulles International Airport. “We want to be involved in creating ... the next generation of instruments,” says Cech, who won a Nobel Prize for chemistry in 1989.

The Hughes project is the biggest among a handful of developments that are lifting Virginia’s ambitions to develop a biotech industry. Last year Indiana-based Eli Lilly & Co. announced plans to build a $425 million manufacturing plant in Prince William County. The company has begun hiring and the plant, which will make insulin, is scheduled to open next year. In addition, the Connecticut-based Albert B. Sabin Vaccine Institute is considering moving its 90-employee headquarters to Loudoun to be near the Hughes center. The Sabin institute reportedly may also build its own research facilities in Loudoun and is considering opening a public health university that could employ up to 5,000 people.

These latest developments are giving Virginia’s biotech sector a big boost. “You take Eli Lilly and Hughes and Sabin — it’s just fantastic,” says Mark Herzog, executive director of the Virginia Biotechnology Association. Already near the Lilly site is the American Type Culture Collection, the main U.S. repository of cell lines for life science research and business. In total the state has about 170 biotechnology companies, according to the biotech association — most in Northern Virginia.

To be sure, there are problems. CropTech, a Blacksburg firm that garnered national attention for producing enzymes from tobacco plants, has shut down after going bankrupt. Other states are farther ahead: Pennsylvania last year invested $60 million in venture funds and North Carolina committed $42 million. Maryland is a regional king thanks to the National Institutes of Health in Bethesda. Virginia needs to spend more on research and development at its universities, and create a network of well-equipped biotech incubators. Gov. Mark Warner hopes a 44-member commission will help drum up more funding.

In a sense, Loudoun was lucky to get the Hughes project. Cech and others simply picked the site two years ago and bought it for $51 million without any lobbying from the county. They chose it because it was relatively close to their Bethesda, Md., headquarters and close to Dulles so visiting scientists can easily reach the facility.

Return to Virginia Business - June 2003