Connecticut supplies $4.25 M of $18.25 M in Start-up Costs for Biotech Company

by Categorized: Uncategorized Date:

Arvinas, a biotech company based on research done at Yale University, is launching in New Haven with loans and a venture capital investment from the state.

The company’s initial research will focus on cancer, but scientists may also explore drug candidates to treat diseases such as rheumatoid arthritis and lupus. Company officials project the first drug candidate will be ready for clinical trials in three years.

Arvinas has raised $15 million in venture capital to cover its early operating expenses, including $1 million from Connecticut Innovations, a state-funded quasi-public agency.

The Department of Economic and Community Development is lending the company $2.5 million. Connecticut Innovations, in addition to its equity investment, is lending the company $750,000. The larger loan must be approved by the State Bond Commission on Friday, as it is provided through borrowed funds. The larger loan only requires interest payments in the first five years, and charges 1 percent interest. It will be converted to a grant as long as Arvinas hires 20 workers.

Arvinas is in the process of hiring 25 workers.

“Our economic development team worked aggressively to keep this company – and this technology – in Connecticut,” Gov. Dannel P. Malloy said in a statement announcing the state’s investment. “Not only does the company represent great promise for the future of health care, but it will bring new jobs and expand New Haven’s growing pharmaceutical presence. We’re very pleased to have Arvinas call New Haven its long-term home.”

The company grows out of research by Craig Crews, a Yale professor in both biology and chemistry departments.

Crews is one of the few professors whose research led to an FDA-approved drug, which is used to treat recurrent multiple myeloma. That drug was initially discovered by Bristol-Myers Squibbs researchers in Japan, but the company abandoned the project. In 2003, after several years of research, Crews co-founded a company in South San Francisco with a Caltech professor called Proteolix to develop the drug. Six years later his company was bought by Onyx Pharmaceuticals for $276 million in cash, with up to $535 million more as the drug progressed through approvals in Europe and the United States.

The CEO of the new company, Dr. Timothy Shannon, used to lead CuraGen, which was bought by a Massachusetts biotech company for $94.5 million in 2009.

 

 

Arvinas, a biotech company based on research done at Yale University by Craig Crews, a professor in both biology and chemistry departments, is launching in New Haven with loans and a venture capital investment from the state.

That drug was initially discovered by Bristol-Myers Squibbs researchers in Japan, but the company abandoned the project. In 2003, after several years of research, Crews co-founded a company in South San Francisco with a Caltech professor called Proteolix to develop the drug. Six years later his company was bought by Onyx Pharmaceuticals for $276 million in cash, with up to $535 million more as the drug progressed through approvals in Europe and the United States.

The CEO of the new company, Dr. Timothy Shannon, used to lead CuraGen, which was bought by a Massachusetts biotech company for $94.5 million in 2009.

Arvinas has raised $15 million in venture capital to cover its early operating expenses, including $1 million from Connecticut Innovations, a state-funded quasi-public agency. Arvinas is in the process of hiring 25 workers. It is looking for people with at least three years of cell and molecular lab research experience.

“Our economic development team worked aggressively to keep this company – and this technology – in Connecticut,” said Governor Dannel P. Malloy in a statement announcing the loan and CI investment. “Not only does the company represent great promise for the future of health care, but it will bring new jobs and expand New Haven’s growing pharmaceutical presence. We’re very pleased to have Arvinas call New Haven its long-term home.”

The Department of Economic and Community Development is lending the company $2.5 million, and CI, in addition to its equity investment, is lending the company $750,000. The larger loan only requires interest payments in the first five years, and charges 1 percent interest.

The larger loan must be approved by the State Bonding Commission Friday, as it is provided through borrowed funds.

Arvinas’ initial research focus will be on cancer, but scientists may also explore drug candidates to treat diseases such as rheumatoid arthritis and lupus.

Company officials project the first drug candidate will be ready for clinical trials in three years.

 

The Courant is using Facebook comments on stories. To comment on courant.com articles, sign into Facebook and enter your comment in the field below. Comments will appear in your Facebook News Feed unless you choose otherwise. To report spam or abuse, click the X next to the comment. For guidelines on commenting, click here.

One thought on “Connecticut supplies $4.25 M of $18.25 M in Start-up Costs for Biotech Company

  1. Kim

    “The larger loan only requires interest payments in the first five years, and charges 1 percent interest. It will be converted to a grant as long as Arvinas hires 20 workers.”

    Do the taxpayers of CT realize how fortunate they are? 20 jobs at $2.5M = $125,000.00 per job — and the taxpayers get to pay for it. So someone making, say, $40k per year gets to pay more taxes so someone esle can get paid $125k. Makes perfect economic sense – to liberals and socialists.

    You would think the failure of the USSR and the fiscal problems of the PIGS andother socialism-inspired countries would be a lesson that these money-distribution schemes don’t work. Appartently, the politcians here in the US interpret the lessons differntly than us taxpayers.

    We should all be greatful for such leadership. And we should all be ashamed for allowing it. This country started (and won) a revolution over much less.

Comments are closed.