Banking on biotech: Utah hopes this niche industry booms.

• Author: Westby, Tim
• Position: Tech Knowledge - Industry Overview

GOV. MIKE LEAVITT'S ANNOUNCEMENT in January that the state was teaming up with the University of Utah and the Huntsman Cancer Institute to form a nonprofit enterprise in the field of biotechnology and human generics was the latest in at least a yearlong string of promising developments for Utah's burgeoning biotech industry.

Leavitt hailed the formation of GenData Research Corp. as the "springboard for thousands of high-paying jobs ... and the means by which Utah secures a reputation as a world leader in biotechnology."

The announcement gave weight to the growing importance of the biotech industry to the state's overall economy. At last count, there were approximately 120 Utah companies in the life sciences field employing roughly 11,000 people--most of them with salaries significantly above the state's average--according to the Utah Life Sciences Association (ULSA). "What we do, we do very well," says ULSA president Brian Moss. 'And for our population, we are a force to be reckoned with."

But Leavitt's announcement also came at a time when stock prices of Utah's biotech companies, like the industry as a whole, have taken a beating. From March 2002 to March 2003, Myriad Genetics stock, for example, ranged from a high of over $35 to a low of $8.43.

Industry officials argue, however, that if you put stock prices aside and look at the potential for GenData, along with the potential product lineup from a heavy-hitter like Myriad, which has a promising Alzheimer's disease drug in the pipeline and is beginning to heavily market tests for genetic predisposition for certain forms of cancer, the future of Utah's biotech industry remains strong.

Gen Data

GenData's focus will be capitalizing on perhaps Utah's most unique offering to the life sciences industry--the Utah Population Database.

Started 20 years ago by U. of U. researchers who tapped Utah families, with the help of The Church of Jesus Christ of Latter-day Saints' extensive genealogical records, the database offers a unique wealth of health data dating back to the early 1900s. Over the years, the database has evolved to include vital statistics and clinical and genetic information that allows researchers to trace inherited traits along with the likely impact of environment. It now comprises more than 7 million linked records, vital statistics and cancer registry information, and is credited with important genetic discoveries in breast and colon cancer. Similar databases exist in Iceland and...