LEXINGTON, KY - If history repeats itself $750,000 in state investments and incentives could turn into $7.46 billion.
Edwin Cohen, founder and CEO of Lexington-based Summit Biosciences, walked through his modest Coldstream facilities excitedly talking about potential partnerships and collaborations now possible between his company and the University of Kentucky as the Mayor and Governor had just announced a $250,000 forgivable loan and $500,000 in tax incentives from Kentucky Economic Development Finance Authority. The incentives come with a $5 million investment in Summit and the addition of 22 new jobs to the company that currently employs seven, four of which are part-time.
While not exactly a pharmaceutical behemoth today, Cohen has started one in the past. Barr Laboratories, a New York-based maker of generic pharmaceuticals traded on the NYSE and founded by Cohen in 1970, sold last year for $7.46 billion to Jerusalem-based Teva Pharmaceutical.
"There is a huge opportunity right here in the commonwealth, with the university, with Summit to move forward and we don't have to go overseas to get the technology and intellectual capacity, we have it here," Cohen said during a press conference at Summit's Bull Lea Drive labs.
Beyond using its new employee base to develop generic versions of prescription drugs - the business model that built Barr - Cohen is looking to get to market quickly with nasal spray versions of drugs already available over the counter.
"We're looking now at trying to get into some products we can bring to the market quickly, meaning not going through the FDA procedure of two or three years. We're looking for over the counter products," he said.
Finding new ways to administer approved drugs not only will allow Summit products to arrive on store shelves as early as 2010, but would benefit consumers sooner, as well.
"Instead of a taking a capsule, which can cause side effectsÖ us putting it into a nasal spray is going to make it work faster and more thoroughly," he said about one particular sleep-aide Summit is developing.
"Using that to get the cash flow started, we can spend more on R&D, give contracts to the university, which we want to work with us," he said. "The pharmacy school is the perfect partnership, it's one of the greatest ones in the world. With their expanded capacity and our understanding of the marketplace, it's a win-win situation."
Seventeen of the 22 jobs Cohen plans to create will have an average salary of $64,000. And he plans to create work outside of the industry as he is working with his landlord to expand the building he's leased for nearly a decade. Already he estimates they've spent around $30,000 with architects and engineers and will spend much more as they hope to add 50,000 square feet to their facility.
"That will create a lot of new jobs," Cohen said.
After the press conference Gov. Steve Beshear said the addition of jobs such as the 22 being created at Summit is actually the main focus of the state's Economic Development Cabinet - as opposed to chasing the big fish for the sake of gaining a splash of media attention.
"More than 90 percent of our businesses in Kentucky have few than 50 employees and so we mostly create jobs 10 and 20 and 25 and 40 at a time," the governor said.
"Obviously we'll continue to try to get the big home when it presents itself to us. You know you can't get one of those unless you compete for it. So we're going to be in the running for anything that looks promising, but we put a very large emphasis on developing jobs like the one we've announced (here)," he added.
Jobs at Summit are already posted for hire on Internet job sites.