UCI Proposal Wins Kudos : Development: Industry leaders and analysts praise the plan to build a biomedical complex on the campus, saying that now is an ideal time to do it.
A recent UC Irvine proposal to build a mall-like biomedical complex on campus is akin to the proverbial fine wine that has been waiting to be uncorked, industry leaders and analysts say.
The time, they say, is right.
“The possibilities are endless,” said David G. Anast, publisher of the Biomedical Market Newsletter in Costa Mesa. “This kind of thing builds on itself. It will attract talent from all over.”
The plan, which industry officials say was tossed about for most of the ‘80s, was finally presented formally Friday to the University of California Board of Regents by UC Irvine Chancellor Jack W. Peltason.
It would allow UC Irvine to be the host of a massive biomedical business complex that would tempt medical research and manufacturing companies nationwide to move their facilities to the sprawling campus.
According to the proposal, the 124-acre private development--what those in the industry call an “incubator”--could house dozens of drug and medical equipment companies that would then take advantage of university resources such as the research library, the computer system and the expertise of faculty members. Faculty members, in turn, would benefit from hands-on experience in commercial laboratories.
Under terms of the preliminary proposal, UC Irvine would lease land it owns to developers, who would build laboratory and office space, then sublease it to companies, said Walter Henry, UC Irvine vice chancellor for Health Sciences. Another possibility would be for the university to build the facilities itself, then lease the space. The property is at MacArthur Boulevard and Newport Coast Drive.
The complex would concentrate, initially at least, on research into cancer, neuroscience, molecular medicine and cardiovascular disease, Henry said. It would include 1.5 million square feet of research buildings and 670,000 square feet of supporting commercial facilities such as eateries.
Such a public-private endeavor would not only benefit the growing industry--the largest in Orange County--but also give the university a much-needed financial shot in the arm, university officials said.
The idea had finally been developed enough for university officials to make a formal presentation to the UC Board of Regents, Henry said.
The next stage is to begin drawing up a variety of plans and options, and to start making cost analyses.
No estimate was immediately available on how much income the complex could generate for UCI, but officials said the potential to the university is too great for the project to put off any longer.
“With state budget problems and a reduction in support for research by the federal government,” Henry said, “we’re obviously having to look at other sources.”
The university is a natural place for such an incubator, Henry said, because it can offer start-up companies low rents as well as an academic and competitive environment found almost nowhere else.
“It’s a combination of resources that very few communities have,” Henry said. “We view it as a big opportunity for us because we are facing all these cutbacks.”
City approvals could come as soon as 1993 or 1994. But Joseph DiMento, assistant executive vice chancellor overseeing land management, said it could take as long as 15 years for the facility to be fully leased.
Industry spokesmen and analysts said the plan, which would create the first such incubator in Orange County, is an idea whose implementation is long overdue. Without such a complex to draw investment and promote the sharing of a wealth of ideas, they said, the now-healthy biomedical industry could soon begin suffering.
“The fundamental issue is that basically scientists are working on solving problems that they see as fascinating but they don’t really think of commercial development,” said Jay Glass, an Orange County biomedical venture capitalist. “That can hurt the industry.”
There are more than 1,200 biomedical companies in Orange County, many of which operate on grants and public stock offerings to underwrite their research and development. Those companies’ researchers typically get together and trade ideas only during annual conventions.
But under one roof, publisher Anast said, researchers could share in an environment of “synergy” and investors--the lifeline of start-up companies--would have an opportunity for “one-stop shopping.”
“I’m just thrilled this is going to exist,” said Glass, who has invested in a start-up biotechnology company, Cortex Pharmaceuticals Inc. of Irvine. “It is certainly something that is needed. It’s important.”
Cortex, for instance, is developing drugs to reduce brain damage in stroke and head injury patients. It has relied on a grant agreement with a Cambridge, Mass., pharmaceutical company for its funding.
Peggy Pargoff, president of Biomedical Business International of Santa Ana, said that incubators are ideal places for “collaborative opportunities for promoting profitable business ventures.”
“I’ve been for it for a long time,” said Pargoff, whose organization follows the industry, publishes a newsletter and sponsors seminars.
Edward Doyle of Questor Avante Ltd., an Irvine biomedical consulting firm, agreed. “Now is the natural time,” he said. “Start-up companies need these kinds of services.”
