Biotech company to invest $2.5M in local facility

January 11, 2007 --

Memphis may soon land another emerging biotechnology company called Cognate-Tigenix.

The joint venture between Baltimore-based Cognate Bioservices and Belgium-based Tigenix is eyeing Memphis for its cell-based therapeutics manufacturing.

The Memphis and Shelby County Industrial Development Board evaluation committee approved a nine-year payment-in-lieu-of-taxes application for the company, which is considering location of a 35,000-square-foot laboratory and manufacturing facility at 4600 E. Shelby.

The joint-venture would manufacture cell-based therapeutics in Memphis for shipment throughout the U.S. if its products receive FDA approval.

Cognate-Tigenix anticipates a $2.5 million investment in the facility and the creation of 100 jobs in Memphis with a median wage of $45,000.

Tigenix focuses on regenerative medicine and local treatments of damaged and osteoarthritic joints.

Luc Dochez, director of business development for Tigenix, said Memphis' geography and growing biologistics fit the company's needs.

Shelf life for generated cartilidge cells, the company's product, is approximately 72 hours, Dochez said, making shipping a crucial component of Cognate-Tigenix' strategy.

Cognate is a commercialization support partner and manufacturer for companies that develop cellular technologies.

Tigenix is nearing completion of its clinical human trials in Europe and has begun the FDA approval process of its proprietary technologies in the U.S.

Speaking to the IDB evaluation committee Thursday, Mike Demster, vice president of bioscience and technology business development with the Memphis Regional Chamber, said the Cognate-Tigenix joint venture is the model company Memphis' growing biotech community needs to continue to attract.

Toucan Capital, a venture capital firm with small biotech companies as its core interest, is the lead investor in Cognate-Tigenix.

Speaking of the growing biotechnology presence in Memphis, Toucan managing director Phillip Singerman said Memphis is on a short list of cities for the manufacturing company.

"We believe we can be a contributor in this effort here," he said.

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