Governor Cuomo Also Announces $5 Million for New Statewide Venture Capital Business Competition to Support Bio-Science & Technology Startups
Governor Andrew M. Cuomo today joined Regeneron Pharmaceuticals, Inc. at the grand opening of the company's two new buildings at its headquarters in Tarrytown to announce the company will be expanding even further to grow its Research and Development capacity. Regeneron now occupies more than one million square feet of space and has committed to invest an additional $150 million to further expand its Tarrytown campus, which will result in at least 300 more jobs.
Earlier today, the Governor also announced the launch of a new $5 million venture capital competition for biotechnology startups, stimulating growth in the biotech industry.
"Today we are continuing to show that New York is a great place to do business," said Governor Cuomo. "This expansion is proof that New York's support of businesses like Regeneron is continuing to grow the economy and create jobs in communities across the State. I look forward to seeing the biotechnology sector continue to thrive in New York in the years to come."
"New York has been Regeneron's home since 1988, and the many scientific advancements made in our Tarrytown labs have yielded four approved treatments and an important pipeline of potential medicines for people with a range of serious diseases," said Leonard S. Schleifer, M.D., Ph.D., President and Chief Executive Officer of Regeneron. "We look forward to continued growth and expansion in New York as we continue our work to bring innovative new therapies to patients in need."
This new $150 million expansion project, which will create at least 300 new jobs, will construct a building of up to 192,000 square-feet that will include laboratory and office space, as well as a parking garage with up to 400 parking spaces. Empire State Development, New York's chief economic development agency, will provide the company, which had many options for the expansion, with up to $5 million in Excelsior Jobs Program tax credits.
Empire State Development also supported Regeneron's now completed expansion with up to $10.2 million in Excelsior Jobs Program tax credits. The company has invested more than $150 million in the two new buildings at the site and exceeded its commitment to create 500 new jobs at the location.
The new buildings have added more than 300,000 square-feet of office and laboratory space, expanding Regeneron's corporate headquarters and enabling the company to hire more than 500 new employees at this New York location. In addition to its Tarrytown campus, Regeneron continues to grow its Industrial Operations and Product Supply facility in the Capital Region, based in Rensselaer County. This year alone, Regeneron has hired 945 employees throughout its locations in New York State.
Thus far in 2015, Regeneron has hired more than 1,200 new employees worldwide, including the 945 in New York. Overall, the company now employs more than 4,000 people around the globe – up from 682 in 2007 – the majority of whom, 3,150, are in New York.
Senate Democratic Leader Andrea Stewart-Cousins said, "I applaud Regeneron Pharmaceuticals' commitment to expand operations and bring more good paying jobs to our community and thank Governor Cuomo for his leadership on this issue. For our state to succeed in the new economy we must continue to make wise investments and work closely with pioneering companies and entrepreneurs. Our strategic partnership with Regeneron is an excellent example of this innovative model, one which I hope will be replicated with equal success throughout New York State."
Assemblyman Thomas J. Abinanti said, "We are thrilled that Regeneron continues to grow, not only in Tarrytown but throughout New York State. Regeneron continues to deliver success after success with their groundbreaking series of innovative medical advancements. We thank Governor Cuomo and companies like Regeneron for committing to Upstate New York and to our talented workforce."
Empire State Development President, CEO & Commissioner Howard Zemsky said, "With a workforce that is both highly skilled and highly educated, New York is a great place for biotechnology and pharmaceutical companies looking to grow as successfully as Regeneron. Thanks to Governor Cuomo's vision for economic development, businesses in these industries are thriving in the Hudson Valley and throughout the state."
New Bio-Science Venture Capital Competition
New York State is quickly emerging as the East Coast hub for innovation and entrepreneurship. Building on this momentum, the State has committed to supporting the entrepreneurial community through a series of focused investment initiatives. Through these targeted investments, the State has begun to impact different sectors throughout Upstate while encouraging start-ups and job growth in metropolitan areas.
To stimulate further growth in the bio-science industry in New York, the State is launching a broad based investment initiative focused on the bio-science industry. The centerpiece of the initiative will be the creation of a multi-year venture capital competition. This competition will focus on selecting the most promising startups and assisting them in commercializing technologies developed within New York State universities and research labs. Annual prizes totaling $1 million will be awarded to promising Bio-Science companies following each round of competition.
With a focus on supporting companies that can follow Regeneron's path to success, the new competition will be managed by New York Ventures, the state's newly formed venture investment hub. New York Ventures will treat venture capital competition awards as investments in exchange for equity; companies will agree in writing to be headquartered in New York State for a specified time period.
The Bio-Sciences Investment Initiative is not intended to fund scientific or research and development activities. Instead, the initiative is focused on activities essential to successful commercialization, such as protecting intellectual property, performing market and competitive research, investigating regulatory requirements, building commercial prototypes and writing business plans to attract additional capital.
New York State companies in the following industries will be eligible:
- Drugs & Pharmaceutical
- Medical Devices & Equipment
- Research, Testing & Medical Labs
- Bio-science-Related Distribution
- Agricultural Feedstock & Chemicals
New York Ventures staff will review submissions from bio-science start-ups, considering factors such as feasibility of commercialization, level of technology innovation and other technical and business factors. Once applications have been reviewed and finalists have been identified, finalists will participate in a day-long showcase or pitch competition. After the pitch competition, winners will be selected by New York Ventures industry experts from the statewide bio-science community.
Business plan competitions as a key strategy in the State's approach to investment in innovation started with 43North attracting cutting-edge start-ups to Buffalo and providing top performers with cash prizes and technical support. Two more business plan competitions have already been created in 2015: 76 West and GENIUS NY. The 76 West competition, based in the Southern Tier and slated to launch later this year, will focus on investing in start-ups within the clean tech sector. GENIUS NY is anchored in Syracuse and will launch in early 2016. It will be focused on investing in start-up ventures within the data and informatics sector.
New York State has tremendous intellectual capital and infrastructure in the bio-sciences, ranking third among states in National Institutes of Health (NIH) research funding. The downstate region and New York City alone feature nine major academic medical centers. In 2014, the bio-sciences industry represented 41,554 jobs in the state, comprising $7.5 billion or 0.6 percent of the state's overall economy. This abundance of intellectual capital and university-based research activity positions New York State to be a leader in the Bio-science sector, but this potential has yet to be fully realized. New York State must improve its ability to commercialize this research and translate it into private sector economic impact. Currently, the State ranks 11th in bio-sector job creation in 2014, below states it outpaces in research, such as New Jersey and Pennsylvania.
In 1988, Regeneron was launched as a biotech start-up in New York City. In 1989, under the leadership of Governor Mario Cuomo, Empire State Development's invested $250,000 into the company. Within years, the state realized a 300-percent return on that investment.
Today, Regeneron is the largest biotech company in New York State and the fifth largest in the world.
For the past three years, Forbes Magazine has named Regeneron one of the top five most innovative companies – across all industries – in the world. Additionally, the company has ranked within the top 2 Biopharmaceutical Employers in the World by Science Magazine for the last five years, including number one for three straight years.