Austin biotech firm begins construction on $200M campus

Sep 25, 2014
Austin Business Journal

XBiotech USA Inc., an emerging Austin drug developer, will break ground Friday on the first manufacturing and research facility at its 48-acre siteoff Riverside Drive in Southeast Austin that is expected to eventually house a $200 million campus of buildings

The 46,0000-square-foot building will cost “no more than $12 million,” company President and CEO John Simard told Austin Business Journal. Construction is expected to finish by mid-2015 and start manufacturing and shipping the company’s colorectal cancer-fighting drug Xilonix by early 2016. That drug is currently going through Phase 3 trials in the U.S. and Europe

Simard said there is no firm timeline for the start of construction of a second manufacturing and research building – the campus will eventually feature several such buildings and employ about 2,000 people – but said the hope is to move forward with new construction “in a timely manner”

The company has been hyping the project for at least two years since purchasing the land but had yet to see it through to fruition

Xbiotech is privately held company that was started in the mid-2000s and has raised more than $50 million. Simard said the company is constantly raising capital to fund development and clinical trials, with a new drug intended to fight MRSA-resistant staph infection expected to start clinical trials late this year or in early 2015

If Xilonix is proven effective at using anti-inflammatory properties to fight cancer, Simard said it is a potentially game-changing drug in cancer treatment in an annual global market worth billions

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