Samsung Biologics acquires GSK manufacturing facility in Montgomery County

 

Some rare good news out of Annapolis about the rare bright spot in the moribund Montgomery County economy: biotech. Samsung Biologics has just acquired the GlaxoSmithKline manufacturing facility in Rockville, Maryland Governor Wes Moore announced yesterday. GSK had announced earlier this year that it would be moving its vaccine research and development operations from that Rockville facility to Massachusetts. Samsung's acquisition will keep more than 500 existing jobs at the site, and add an unspecified number of additional jobs as Samsung adds potential production lines for other local biotech firms in the future.

Moore was hands-on in recruiting the South Korean firm. He personally met with Samsung Biologics executives earlier this year during an international trade and investment mission to Japan and South Korea to promote economic growth and workforce development. 

“We are thrilled that Samsung Biologics has selected Maryland for their first U.S. manufacturing facility, a testament to our state’s leadership in life sciences, our highly-skilled workforce and the commitment of our private and public sector to advance patient health around the globe,” Moore said in a statement Monday. “During our Asia trade mission, we were excited to share with Samsung Biologics executives the many reasons why Maryland is an ideal foothold from which the company can execute its long-term strategy to expand in the U.S. market.”

Montgomery County Executive Marc Elrich, who has targeted life sciences in his efforts to attract high-wage jobs to the County, joined Moore in celebrating the win yesterday. “The acquisition of GSK’s Rockville manufacturing campus by Samsung Biologics represents a significant achievement for Montgomery County,” Elrich said in the statement released by Moore's office. “This $280 million investment brings the world's largest contract drug manufacturer to Montgomery County, ensuring U.S.-based manufacturing continues, safeguarding over 500 current jobs, and setting the stage for further growth as Samsung boosts production capacity. It serves as a robust endorsement of the ecosystem we have cultivated, which is founded on talent, diversity, and enduring partnerships. We proudly welcome Samsung Biologics to Montgomery County, Maryland, and anticipate their contribution in enhancing our economy, workforce, and status as a global life sciences hub.”

Human BioSciences fleeing Montgomery County for West Virginia

The hits just keep on coming for Montgomery County. Its moribund economy took another cannonball to the gut yesterday. Human BioSciences announced it will be the latest company to move its corporate headquarters out of Montgomery County to a lower-tax jurisdiction in the region. It will move its current HQ from 940 Clopper Road in Gaithersburg to wild, wonderful West Virginia. 

The blow is an especially painful one for the County, as the biotech industry is the only bright spot in MoCo's private sector economy. According to the Maryland Department of Labor, all Human BioSciences employees are being offered positions at the new West Virginia facility, meaning that the taxable revenue of any MoCo residents leaving with the company will also be lost to the County's coffers.

It says quite a bit about the state of business in Montgomery County and Maryland that a biotech firm would leave. Remember, the County and State both provide financial incentives and tax breaks to the biotech sector, decisions made decades ago by smarter leaders that allowed for the creation of a strong life sciences presence in the I-270 corridor. In recent years, that strength has begun to weaken. It hasn't been helped when you have the state legislature and Governor Wes Moore wallop firms that are immersed in technology with a new 3% tech tax, as of July 1 this year. 

The tech tax is piled on top of the fact that Montgomery County already suffers from the highest tax and fee burden in the region. We've seen the results over this century, as companies like Discovery Communications have fled. Only a week ago, Rocket Money announced it was moving its HQ from Silver Spring to Washington, D.C. 

Meanwhile, Northern Virginia has been cleaning our clock, Hoovering up the corporate HQs of Northrop Grumman, Amazon HQ 2, Nestle, Corporate Executive Board, Hilton Hotels, Lidl, Gerber, Lego, Intelsat, CoStar, Volkswagen, Blackboard, and General Dynamics. This is the direct result of decisions made by failed leaders who have no clue about the world of international business circa 2025. Heckuva job, Brownie!

Montgomery County fumbles biotech HQ, Philadelphia recovers for touchdown

Butterfingers! Biotech, along with residential housing construction, is really the only bright spot in Montgomery County's otherwise-moribund economy. Decisions - and hefty tax breaks, which coincidentally only apply to these two industries (wow, you mean tax breaks generate economic growth?) - made by County and Maryland leaders decades ago led to the development of a strong biotech sector. But even this couldn't prevent MoCo officials' latest fumble of a corporate headquarters, as the relocation search of Adare Pharma Solutions' global headquarters ended with the selection of...Philadelphia.

The New Jersey-based biotech firm made its decision last month, but the Pennsylvania Department of Community and Economic Development celebrated the victory at a ceremony on Friday. “Having a company like Adare relocate its global headquarters to Philadelphia is a fantastic win for our Commonwealth and proves Pennsylvania gets it done,” DCED Secretary Rick Siger said. “The company’s growth is helping to boost our already robust life sciences sector ― a key element of our economic development strategy — while creating more opportunities for Pennsylvanians.”

Steering the Keystone state's successful bid was the Governor's Action Team. “I’m competitive as hell and I believe Pennsylvania is the best state in the nation for companies who want to innovate, grow, and succeed so I’m thrilled that Adare has chosen Pennsylvania over other states for its headquarters and continued growth,” Governor Josh Shapiro said in a statement. “Pennsylvania is a leader in biotech and life sciences – with a talented workforce, access to key markets, and significant laboratory infrastructure – and Adare’s growth here will build on that legacy while creating more opportunity for Pennsylvanians. Pennsylvania is open for business, and I look forward to welcoming more companies to our Commonwealth in the near future.”

Adare's new global HQ will bring "at least 115 new, well-paying jobs" to Pennsylvania, the governor's statement indicated. Meanwhile, on the day that Philadelphia was celebrating the Adare HQ prize, the Montgomery County Council was tweeting about placing even more costly environmental regulations and paperwork responsibilities on building owners in the County. "Doh!" Now there's a great recruiting message to send to firms around the world. Montgomery County continues to be closed for business.

Montgomery County Council cuts Elrich out of picture on life science project launch

Montgomery County Executive Marc Elrich joined WMATA General Manager and CEO Randy Clarke and elected officials at the North Bethesda Metro station yesterday to formally launch the search for a developer to build a Life Science Center at the transit stop. But you wouldn't know this from watching the Montgomery County Council's video on the press conference. Elrich's speech was completely omitted from the Council report, which included excerpts from comments by Clarke, Council President Andrew Friedson, and even U.S. Senator Chris Van Hollen. The snub was particularly notable, as Elrich has been the main driver of the Life Science Center from its inception.

If it were up to the Council alone, the site adjacent to the Metro station would have been yet another residential housing development. Elrich was the rare County elected official to acknowledge that MoCo needs more high-wage jobs as much as it does new housing, when he proposed the biotech use for this site several years ago. Yet the Council attempted to take all the credit for itself in its Monday video, similar to Congresspeople who vote against infrastructure projects in their districts, only to later claim credit for them once they come to fruition.

The attempt to cut Elrich out of the launch announcement was only the latest cheap shot by the Council at the Executive. Some on the Council resorted to subterfuge and outright deception in their successful effort to deep-six Elrich's proposal to restore funding for the Office of the People's Counsel. Councilmembers are still pondering whether to create a competing ballot question for the one that will give voters the option to oust Elrich with a two-term limit in the November election. Perhaps they are weighing the possibility of opening the executive seat to one of the ambitious Councilmembers, versus reducing their own future executive terms by one. 

Bethesda Bio building begins leasing

Leasing brochure prepared by
Scheer Partners for Bethesda Bio building

Pre-leasing is now underway for the proposed Bethesda Bio building at 8280 Wisconsin Avenue. A partnership between developers StonebridgeCarras and Donohoe, the building is being marketed as a biotech center at the "Gateway to NIH." There are 10 spaces being leased, each of which consists of an entire floor. A brochure is included in an online listing for the property.

Unlike some on the Montgomery County Council, leasing firm Scheer Partners smartly focuses on NIH, Walter Reed National Military Medical Center, Uniformed Services University and the Howard Hughes Medical Institute in its pitch to prospective biotech firms. Councilmembers who touted a "research triangle" that would include the FDA in White Oak were apparently unaware that the federal agency is a regulator, not an innovator. In fact, the FDA is often an obstacle standing in the way of biotech and pharmaceutical advances reaching those who need them.

Planning staff recommends approval of Donohoe/StonebridgeCarras life sciences building at 8280 Wisconsin

The most unique project to come before the Montgomery County Planning Board under the new Bethesda Downtown Plan so far is 8280 Wisconsin Avenue, a joint venture by developers Donohoe and StonebridgeCarras, both of whom have been major players in the post-recession real estate market in downtown Bethesda. 8280 Wisconsin was previously envisioned as an office building, but now is being positioned as a mix of office and research/laboratory uses. While much of that use is currently located in the I-270 biotech corridor, this is a prime site near NIH, the National Library of Medicine and Walter Reed National Military Medical Center.

Doug Firstenberg, Principal with StonebridgeCarras, calls downtown Bethesda an "untapped" market for such uses near those world-renowned medical institutions. Bethesda-based Donohoe's CEO Chris Bruch promises a "premier life sciences building," with 185000 SF of space in total, according to the staff report.

Ewing Cole is the architecture firm for the project, and the facade treatment is certainly refreshingly different from some of the cookie cutter, cantilevered designs of late. There is a jagged tear that cuts through the glass facade from the roofline to the tall windows at the bottom of the 14-story building. The upper floors jut out a notch from the lower story at point, an intrusion into the Wisconsin Avenue right-of-way that planners and the Design Advisory Panel have both complained about. However, staff is suggesting delaying that discussion until the site plan phase of the project.

The board will take up the project at its July 12 meeting. Staff is recommending approval of the sketch plan, with conditions.