News
Cytovance Biologics completes landmark $16.8 million financing
Oklahoma City, OK
--Groundbreaking Scheduled Friday, July 9 th at 10:30am--
--Firm to Provide Clinical and Early Commercial Stage Contract
Bio-Manufacturing and Related Services--
--One of Largest Economic Development Packages Ever for a Biotech Startup--
Oklahoma City, OK, July 8, 2004 --- Cytovance Biologics Inc., today announced completion of a $16.8 million dollar financing for construction of its core biopharmaceutical manufacturing facility in Oklahoma City . The company will use the funds to develop a 30,000 square foot state-of-the-art manufacturing plant at the Presbyterian Health Foundation (PHF) Research Park . The financing is in the form of an innovative federal and state tax credit-supported loan from a fund established by Rural Enterprises of Oklahoma, Inc. (REI), a federally accredited Community Development Financial Institution . Cytovance intends to provide full service contract manufacturing of therapeutic proteins and antibodies for clinical and early commercial requirements of biopharmaceutical firms.
“Our decision to locate our manufacturing facility in Oklahoma City is affirmed by the successful closing of this creative financing vehicle,” said William Fallon , President and Chief Executive Officer of Cytovance. “The state, city and Presbyterian Health Foundation all worked closely with Cytovance, BancFirst, and REI to assemble a package of federal and state-supported tax credits that made the transaction attractive to all the parties. We look forward to launching process development and early stage manufacturing services with our experienced Oklahoma City-based staff before the end of the year, and to initiating full manufacturing services by the beginning of 2006.”
A formal groundbreaking at the Oklahoma site is planned to take place Friday, July 9 th at 10:30am . The new facility is designed specifically for clinical and early commercial scale bio-manufacturing. In addition, the Cytovance team is applying their extensive biologics manufacturing experience to offer a full range of pre- and post-production support services including manufacturing strategy and design consulting, along with the regulatory and testing services essential to move product candidates from the clinic into full production.
"The arrival of Cytovance Biologics to Oklahoma City is tremendous news for the city and the state as a whole,” noted Oklahoma Governor Brad Henry. “ Oklahoma is committed to building upon and expanding its presence in biotech, and the creation of a manufacturing plant for Cytovance is evidence of that commitment. We are glad that Cytovance has decided to locate this facility in Oklahoma , and we are confident it will be a lasting and fruitful relationship.”
Cytovance founder and Chairman John Crowley and President and CEO William Fallon established the company based on their experience building Oklahoma City-based Novazyme Pharmaceuticals, which was acquired by Genzyme in 2001. At the time they faced limited capacity for clinical scale biologics manufacturing, a key factor that motivated Crowley , Fallon and other members of the former Novazyme team to create Cytovance. Their decision to locate their manufacturing facility in Oklahoma is based on their past positive experience working with the city and the state.
Crowley commented, “The willingness of Oklahoma officials to think outside the box in putting together this financing package confirms my very positive experiences with the state and city when I was building Novazyme Pharmaceuticals here several years ago. We look forward to continuing to collaborate to make Cytovance a commercial success. This transaction further enhances Oklahoma ’s expanding presence in the biotech industry.”
The overall financing package comprises separate funds earmarked for facility construction, process equipment and operating capital. BancFirst is providing most of the capital through a $15.0 million investment in REI New Markets, LLC, and PHF is providing a loan of up to $1.8 million in additional construction funds. The loan is tailored to Cytovance’s stage of development, with principal and interest repayments minimized in the early years.
“We are very pleased that our efforts to help Cytovance locate its bio-manufacturing facility here in Oklahoma City contributed to the successful closing of this novel bank loan supported by tax credits from multiple entities,” said Fred Hall, Chairman of the Oklahoma City Redevelopment Authority. “Our skilled workforce, competitive cost structure, quality of life and willingness to work creatively to support life sciences ventures make Oklahoma a strong candidate for continued growth in this critical sector.”
"Cytovance has identified a growing demand for clinical and early commercial scale biologics manufacturing to carve out a unique niche in the biotech market, and has chosen a strategic location for the company in Oklahoma City," said Presbyterian Health Foundation President Mike Anderson. "Presbyterian Health Foundation welcomes Cytovance to the PHF Research Park campus with its many resources and 26 resident biotech companies."
Cytovance will begin cell banking, process development, and analytical development services later this year. Full manufacturing from cell banking to vial will be available by the beginning of 2006.