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26 May 2011

The life cycle of the life science

The Missouri Partnership | www.missouripartnership.com

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In a quiet industrial complex in suburban St. Louis, something is stirring: the growth of recombinant proteins and monoclonal antibodies, as well as diagnostic test kits for academic and industrial research.

In labs across the globe, research methodologies using these "tools" have grown, and so have the businesses that make them.  Leinco Technologies, founded in 1992, is one of them. President and Chief Executive Officer, Patrick Leinert, a 20-year veteran of the life sciences industry, has witnessed a lot of that growth. Currently, there are more than 1000 life science-related businesses operating in Missouri.

"There have been lots of mergers and consolidations of industry companies," explains Leinert.  "I've also seen an increase in the preclinical research budgets-researchers are trying to funnel more successful candidates in the actual human clinical trials.  We've also seen the early discovery research and preclinical testing of proteins and therapeutics in animals on the rise because the cost of human clinicals is so high." The Kansas City region on the west side of the state ranks fifth per capita in clinical trials conducted.

While the life sciences industry is fairly young, there has been tremendous growth in the sector in the last five years.  With that growth comes not only increased knowledge, but also increased constraints from federal regulators.  Because Leinco produces only the component parts, and not the finished product, the company is not audited by the FDA.

Ongoing research and partners

New ventures, partnering and collaboration are a big part of the business for Leinco.  One of the company's diagnostic tests in development will help breeders of livestock determine pregnancy more quickly and accurately.  This diagnostic advancement will help ranchers grow herds more efficiently, prevent miscarriages, and get livestock to market sooner.  With their headquarters in a state strong in animal health and plant sciences, Leinco is well positioned.

"Most of our business is outside the state, where Leinco is pretty well known among the bigger bio companies," says Leinert.  "We are still building our brand in the research and academic sectors.  We've found our contract research and development - and contract manufacturing - to go up every year, in addition to our sales to research academics.  We do a lot of work with Washington University (in St. Louis)."

U.S. News and World Report ranks Washington University's School of Medicine fourth in the United States.  And scientists at the Genome Sequencing Center - located on the Washington U. campus - were the first in the world to decode the complete DNA sequence of a cancer patient.   The Genome Sequencing Center is one of only three large-scale sequencing centers in the U.S. to be funded by the National Institute of Health.  

Leinco Technologies is partnering with Washington University in important ways.  The company shares equipment with the Siteman Cancer Center, an affiliated institution and international leader in cancer treatment, research and prevention. Leinco also has entered into a licensing agreement with Washington University School of Medicine. 

Resources for research

In addition to the institutions named above, other research operations are headquartered in Missouri, making the state rich in resources.  Missouri's research parks, research centers and incubators number more than 40.  The Center for Emerging Technologies in St. Louis develops start-up companies in biotechnology, biomedical engineering, advanced materials and electronics.  The Center of Research Technology and Entrepreneurial Exchange (CORTEX), also in St. Louis, houses companies which have graduated from the incubator, as well as those drawn to the area for related research capabilities.  Just two hours away in Columbia, the University of Missouri is home to at least five different specialized research centers.  The newest of these, the Christopher S. Bond Life Sciences Center, is a state-of-the-art facility promoting interdisciplinary research in food production and quality, with an aim to improve human health, animal health, and the environment.

A specialized work force

For a growing company in life sciences, a qualified work force is vital.  Leinco has found in Missouri well-qualified employees with technical credentials and advanced degrees.

The state of Missouri actually exceeds the national educational average with more than 85% of its population holding a high school diploma or higher. The state also boasts 128 post-secondary degree-granting institutions.  Of these, 37 offer a Bachelor's degree or higher in biological or biomedical science. 

In addition to hiring from Washington University, Leinert hires qualified employees from Saint Louis University and the St. Louis Community College system.  The current Leinco employee roster is at 20, with plans to grow to nearly 50 in the next three years.

Midwestern value

As a business owner, Leinert has had discussions with equity companies serving the bio-technical sector.  Leinert reports that these companies have, "wished out loud that other businesses would headquarter in Missouri because of the states' great value."

The benefits cited by companies doing business in the state include low taxes as well as low costs for labor, utilities and real estate.  Leinco has also received tax credits, low interest business loans and funding for training. As a result of these incentives, the company has been able to move into a new 30,000-square-foot facility.   Other life science companies which have moved to or expanded in the state include ABC Labs, bioMerieux, Inc., and Archimica Cooperatief U.A.

With the level of support provided by Missouri, Leinco has realized positive growth, and the future continues to look bright.  "We're in an industry that's not drastically affected by the economy, " he says.  "Everybody (in the industry) has to have diagnostics.  And we supply all the key components to diagnostic kits.  People are still doing research in universities."

Because Leinco has a long-established presence as a supplier of technology and components, they hope to forward integrate and develop their own diagnostic equipment to market.  For this Missouri life sciences company, as for others across the state, the cells appear to be multiplying.


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