Return to News Releases
BIOTECH FIRM SPHERICS RELOCATING TO MASSACHUSETTS
AND BUILDING MANUFACTURING FACILITY
- $2.5M Emerging Technology Fund Loan Clinches the Deal -
MassDevelopment, Spherics, the Massachusetts Biotechnology Council (MBC), the Massachusetts Office of Business Development, and the Massachusetts Alliance for Economic Development today announced that Rhode Island-based Spherics, Inc. will relocate to Massachusetts. The company will move its headquarters and research operations to Mansfield, as well as build a clinical scale manufacturing facility.
In connection with the move, Spherics will receive a $2.5 million loan from MassDevelopment’s Emerging Technology Fund (ETF), the largest ETF loan granted to date.
“Creating and fostering a business-friendly environment attracts companies like Spherics,” said Ranch C. Kimball, Governor Mitt Romney’s secretary of economic development and chair of MassDevelopment. “Spherics’ move is a tangible result of the combined and coordinated efforts of the public and private sectors to highlight the benefits of locating in Massachusetts.”
Spherics is developing oral pharmaceutical products with improved therapeutic profiles by applying its proprietary drug delivery platform technologies. The Company’s novel delivery technologies improve drug performance by increasing absorption and residence time in specific regions of the gastrointestinal tract. Spherics recently raised $26.4 million in venture capital led by Advent International of Boston to advance its clinical pipeline, which is principally in the areas of central nervous system conditions, gastrointestinal disorders, and cancer.
“This is a great win for Massachusetts,” said Robert L. Culver, MassDevelopment president/CEO. “Spherics is exactly the type of company the legislature hoped to attract when it created the Emerging Technology Fund. The firm’s decision to relocate to Massachusetts is a testament to the strength of our life sciences community and the quality of our workforce in attracting companies that are moving from research and development into manufacturing.”
Capitalized by the state legislature last year, the Emerging Technology Fund helps technology-based businesses locate and expand in the Commonwealth. The fund targets companies that are ready to transition from research and development to production. It provides loans and loan guarantees for buying equipment, renovating leased space or purchasing and expanding facilities.
The MBC and the state worked together to demonstrate the Commonwealth’s competitiveness. The Massachusetts team also worked closely with Spherics and the town of Mansfield to identify a suitable site for its new headquarters and manufacturing facility.
“Spherics’ decision highlights the importance of the partnership between state government and the biotechnology industry to sustain Massachusetts’ competitive advantage,” said Thomas M. Finneran, president of the Massachusetts Biotechnology Council. “Through our collective efforts we have made great progress in attracting and retaining biotechnology and pharmaceutical companies. It is important that these efforts continue.” He noted that Spherics is the sixth biotech company to establish or expand manufacturing operations in Massachusetts over the past two years.
“The move to Massachusetts will help accelerate our growth,” said Ze’ev Shaked, PhD, Spherics president/CEO. “The support we received from the state and local officials, and from the biotechnology community, were key factors in our decision.”
The company has leased a 29,500 square foot facility in the Cabot Industrial Park in Mansfield, MA, which will house its headquarters, research and development, and manufacturing operations. The ETF funds will be used to purchase new equipment and renovate the facility. Spherics currently has approximately 25 employees, and will add up to 25 new jobs over the next three years.
Spherics is an emerging pharmaceutical company focused on applying its proprietary oral drug delivery platform to develop products with improved therapeutic profiles. The Company’s novel delivery technologies improve drug performance by increasing absorption and residence time in specific regions of the gastrointestinal tract. Spherics’ business strategy is to further its proprietary pipeline of drugs, while working with pharmaceutical companies in life-cycle management and product line extension. For more information, visit www.spherics.com.
The Massachusetts Biotechnology Council (MBC), founded in 1985, is a non-profit organization that provides services and support for the Massachusetts biotechnology industry. The MBC is committed to advancing the development of critical new science, technology and medicines that benefit people worldwide. Representing over 400 companies, academic institutions and service organizations involved in biotechnology and healthcare, the MBC works with public leaders to advance policy and promote education, while providing member programs and services.
MassDevelopment, the state’s finance and development authority, partners with businesses and local officials to stimulate growth across the Commonwealth. In fiscal year 2004, the agency arranged financing for or managed 201 projects statewide totaling more than $1.25 billion. These projects supported the creation of more than 5,500 jobs and 2,445 housing starts.
