The North Carolina Biotechnology Center's approval of a $150,000 Small Business Research Loan for agricultural biotechnology upstart Athenix seven years ago is now harvesting major benefits for North Carolina workers and taxpayers.
That early investment of state tax dollars from the General Assembly, through the Biotechnology Center's loan programs, provided Athenix not only critical early research money, but also nurture.
Entrepreneurs frequently cite the Biotechnology Center professionals' vetting and approving of loan requests as a vital signal to subsequent investors that their company is a good risk.
Athenix did grow. In less than a decade it raised more than $40 million in venture capital and hired about 60 more people.
Then, in August of this year the Research Triangle Park company was purchased by German-based Bayer CropScience. The parties have just disclosed the selling price: $365 million, plus up to $35 million in additional earn-out payments when certain milestones are met.
Bayer CropScience already contributed mightily to the state's economy, with a workforce of about 475--most at its Clayton campus. All told, it employs some 18,000 people in more than 120 countries. And Bayer still plans to open an R&D facility in Morrisville.
Even in a tough economy, Biotechnology Center loans overall generate some $100 for every dollar of outlay.