The Kansas City Animal Health Corridor is undergoing a growth spurt, with the addition of three major companies in the last 90 days and more to come, says Kimberly Young, president of the KC Animal Health Corridor.
The latest addition, Kindred Biosciences Inc., will open its first KC Animal Health Corridor location with the acquisition of a manufacturing facility in the Kansas City metro area.
The $3.75 million purchase includes approximately 8 acres of land and two buildings encompassing 180,000 square feet with clean rooms, utility, equipment and related quality documentation suitable for small molecule and biologics manufacturing.
Kindred Biosciences is a biopharmaceutical company focused on saving and improving the lives of pets. Young says Corridor officials have been working with Kindred for about four years, and she was very pleased to see the company join the concentration of animal health manufacturing and animal health research that stretches from Manhattan to Columbia, Mo.
“We work to identify companies in growth mode and encourage them to locate in the Corridor when they are ready to expand,” Young says. “We have about 15 to 20 companies in the pipeline at any given time. Some move very quickly, and some take a little more time.”
The manufacturing facility in Elwood that Kindred Biosciences will occupy was formerly owned by Boehringer Ingelheim and by Strategic Veterinary Pharmaceuticals Inc. The total purchase price was $3.75 million and the company expects to close within 30 days, subject to the completion of the inspection/diligence period and satisfactions of the conditions of escrow.
Young says the Kindred Biosciences move was made more feasible by the existence of an available site that met the company’s needs now and provides room for it to grow.
“Having the products that they need immediately available is always a key to a successful deal,” she says.
“We are very excited to become a brick and mortar addition to the Kansas City Animal Health Corridor. While we already employ top talent in the Kansas area, this acquisition will allow us to recruit additional talent to support the manufacture of drugs and biologics for companion animals,” says Denise Bevers, co-founder and COO of Kindred Biosciences.
“Kindred Biosciences is a welcome addition to the Corridor as they kick off commercialization of the company’s first product offerings and create new jobs in our region,” Young says. “More and more, the growth of the animal health industry in the Corridor is reliant on young companies taking innovative products and services from the lab to the marketplace.”
Kindred Biosciences also announced the execution of a commercial manufacturing agreement with Corden Pharma S.p.A for the manufacture of Zimeta (dipyrone injection) for the control of pyrexia (fever) in horses. This agreement is for an initial three-year term, and permits an automatic renewal period of two years upon the conclusion of the initial term. The agreement provides for production to supply Kindred Bioscience’s initial launch and future commercial campaigns upon regulatory approval, with capabilities to grow along with demand.
“We are very pleased to acquire this plant, which will allow Kindred Biosciences to meet the anticipated manufacturing needs of our promising pipeline, lower our costs of goods, and increase our margins. The plant will be an ideal large-scale complement to our manufacturing plant in Burlingame, Calif., which will be ready for cGMP [current good manufacturing practices] manufacturing activities shortly,” Bevers says. “We are also pleased to finalize the commercial supply agreement for Zimeta, which provides reliable and scalable drug supply from a well-regarded manufacturer.”
Kindred Biosciences is the latest of three major announcements of companies joining the Corridor.
At the end of May, China's largest animal vaccine company, Jinyu Biotechnology Co., announced that it would open a research lab and offices in Manhattan.
Jinyu will employ four to six scientists at the facility, where it will focus on the research and design of vaccines for swine and cattle, as well as developing educational materials for companies and veterinarians.
Jinyu had researched the location for two years, considering its role in the Kansas City Animal Health Corridor, which hosts more than 300 companies in the industry between Manhattan and Columbia.
In mid-April, Virbac Corp., one of the largest independent veterinary pharmaceutical companies in the world, announced that it will consolidate its North American product warehousing and distribution in the KC Animal Health Corridor. The company will locate in an approximately 150,000-square-foot facility in Hunt Midwest SubTropolis, the world’s largest underground business complex, in Kansas City.
“By bringing processes and people together at this Kansas City facility, we will be able to boost collaboration and efficiency within our manufacturing operations. By choosing this Midwest location, we're better aligning ourselves within the animal health industry, and we're excited to continue building a strong partnership with the KC Animal Health Corridor,” says Paul R. Hays, president and CEO, Virbac Corp.
Virbac selected Hunt Midwest SubTropolis due to its central location, transportation access and unique underground environment. SubTropolis offers operational cost savings with its constant temperatures that meet the climate-controlled requirements critical to Virbac’s business.
Young says two additional projects are nearing completion, and she expects more announcements will come in the next 60 days.
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