New study shows TGen spin-off boosts Scottsdale economy
TGen Drug Development (TD2) creates jobs, revenues, related businesses; Total economic impact on the city in 2015 is projected to top $239 million
SCOTTSDALE, Ariz. - TGen Drug Development (TD2) is poised to play a significant role in the expansion of Scottsdale’s biomedical industry, fostering new jobs and city revenues, and prompting the creation of more related businesses.
That is the conclusion of a new report released today by the independent economic research firm Tripp Umbach of Pittsburgh about TD2’s economic impact on Scottsdale.
And while TD2’s contributions to Scottsdale already are solid, its projected impact within 5 years will increase by nearly tenfold, the Tripp Umbach report concludes.
TD2’s direct annual economic impact on Scottsdale in 2009 was $4.3 million. But when TD2’s affiliated company operations are included, the total economic impact in 2009 was pegged by Tripp Umbach at more than $26 million. That total economic impact is projected to reach more than $239 million by 2015, the report said.
“Working alongside other key biomedical engines like the Mayo Clinic and Scottsdale Healthcare, TD2 holds the promise of a brighter economic future for Scottsdale, and the promise of better healthcare for all Arizonans,” said Dr. Stephen Gately, TD2’s President and Chief Scientific Officer.
Other economic impacts and projections for TD2 identified by Tripp Umbach include:
-- Total employment generated directly and indirectly from TD2’s Scottsdale operations and affiliated companies equaled at least 106 jobs. By 2015 the number of jobs generated by TD2 and affiliated companies should reach 1,080.
-- Operations of TD2 and affiliated companies in 2009 generated more than $729,000 in city revenues. In 2010, TD2 and affiliated companies will have generated more cumulative tax revenues than the dollars initially invested by Scottsdale. By 2015, annual city revenues generated by TD2 and affiliated companies should reach nearly $6.6 million.
-- By 2015, Scottsdale should see an economic return of $7.89 for every $1 invested in TD2.
TD2 is a non-profit, whole-owned subsidiary of the Phoenix-based, non-profit Translational Genomics Research Institute (TGen). A recent Tripp Umbach report showed that TGen’s annual economic impact on Arizona in 2009 was more than $77 million.
TD2 was created in 2003 as a way of commercializing the research discoveries of TGen. Scottsdale provided a $3 million loan to accelerate TD2’s growth. TD2 was the first non-Mayo business partner welcomed by the Mayo Clinic Scottsdale to its biomedical campus at 134th Street and Shea Boulevard.
Its mission is to facilitate drug development and move new compounds to patients as quickly as possible. TD2 provides a comprehensive program of pre-clinical, clinical and regulatory services to ensure expeditious approval by the U.S. Food and Drug Administration of treatments that are proved to be safe and effective.
In part because of TD2, many related businesses have located in Scottsdale: Ascalon International Inc., MCS Biotech Resources LLC, Semafore Pharmaceuticals Inc., Silamed Inc., Stromaceutics Inc., SynDevRx Inc., and Translational Accelerator LLC (TRAC).
TGen Drug Development (TD2), a wholly owned subsidiary of the Translational Genomics Research Institute (TGen), is a 501(c) 3 non-profit organization. TD2 provides innovative services for oncology-focused biopharmaceutical companies using a dedicated team of professionals with broad experience and understanding in drug development. TD2 is uniquely positioned to support the need for improved and accelerated development of new chemical entities (NCE’s) for life-threatening diseases. TD2 uses a unique combination of experience gained through its contract research organization business, and an integrated suite of proprietary and non-proprietary tools, preclinical study execution, regulatory affairs assistance, clinical trial design and management, and drug development experts to successfully move therapeutics towards regulatory approval. TD2 is dedicated to reducing the risks and uncertainty inherent in the drug development process. www.td2.org.
The Translational Genomics Research Institute (TGen) is a Phoenix, Arizona-based non-profit organization dedicated to conducting groundbreaking research with life changing results. Research at TGen is focused on helping patients with diseases such as cancer, neurological disorders and diabetes. TGen is on the cutting edge of translational research where investigators are able to unravel the genetic components of common and complex diseases. Working with collaborators in the scientific and medical communities, TGen believes it can make a substantial contribution to the efficiency and effectiveness of the translational process. TGen is affiliated with the Van Andel Research Institute in Grand Rapids, Michigan. For more information, visit: www.tgen.org.
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