Boost for biotech?; IPO may drive growth of life sciences incubator

BYLINE: Erin Lawley

Cumberland Emerging Technologies' life sciences incubator may get a boost following Cumberland Pharmaceuticals Inc.'s initial public offering announcement - another step toward growing the biotechnology industry in Middle Tennessee.

CET, which helps early-stage life science companies, is a joint venture between Cumberland Pharmaceuticals, Vanderbilt University and the Tennessee Technology Development Corp. The group runs roughly 7,000 square feet of incubator laboratory space in its Life Sciences Center on 10th Ave. South.

Cumberland Pharmaceuticals' May 2 announcement that it wants to raise $115 million through an IPO should help CET attract tenants, says Chris McKinney, director of the office of technology transfer at Vanderbilt and CET board member.

"CET benefits from the partnership of Cumberland Pharmaceuticals and Vanderbilt and TBC," says McKinney. "Good things that happen for those partners help the incubator as well."

The incubator expanded its laboratory and research space by 5,400 square feet in September 2006 to accommodate growth. It has an additional 20,000 square feet for future development. Tenants include the Tennessee Biotechnology Association and Microbial Novoteqs Inc.

A.J. Kazimi, CEO of Nashville-based Cumberland Pharmaceuticals and CET, was unavailable for comment because of regulations concerning the public offering.

Matt Gallivan, president of the Nashville Health Care Council, says continued expansion of the incubator helps create a critical mass of businesses to attract more biotech companies and funding sources.

"It makes Nashville a more credible sell," Gallivan says.

The Nashville health care market is known for its strong health care services companies.

However, coupling Cumberland Pharmaceuticals' announcement with BioMimetic Therapeutics' IPO last year - which raised $31.3 million - shows the region is picking up steam.

"It's very important to have companies going public," says Ira Weiss, co-founder of BioDtech Inc. "It builds respect for the community as far as biotech goes, showing a company can be a success in our sector."

Weiss notes that Nashville isn't considered a biotech destination yet- his company is relocating to Birmingham in July to be closer to the Birmingham Biotechnology Fund, which awarded him a $1 million grant.