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Jackson Labs Deal Signed at UConn

Final negotiations provide 'plenty of protections' for state to get its share, Governor Malloy says.

Jackson Laboratories CEO Edison Liu, M.D., joined Gov. Dannel Malloy at the Thursday to celebrate final approval of the deal that brings the research firm's billion-dollar, personalized medicine laboratory and the promise of 300 permanent jobs to the Farmington campus.

The state agreed to bond $291 million in a forgivable construction loan and research grants as part of Malloy's plan to build the state's economy with the bioscience and genomic research industry as the cornerstone. That industry, Malloy said, is worth $298 billion today and is growing by 11 percent annually. Once fully developed, Malloy's office expects Jackson Labs to support 6,800 permanent jobs.

"There's no reason we couldn't be the center of genomic personalized medicine for the country — perhaps all the world," Malloy said.

Jackson's Liu explained that each individual's genetic recipe is unique, as is his response to treatment. Genomic, personalized medicine, which Jackson Laboratories will work to develop in Farmington, could lead to improved methods of combating cancer and superbugs and in blocking the onset of disease.

With the state pouring in $291 million of forgivable loans and research grants, some legislators said the costs of the project were too high with too little in dividends for the state of Connecticut. Malloy said Thursday that the final negotiations provide "plenty of protections" to ensure that Jackson Labs delivers jobs and that Connecticut gets a share in its profits.

First, the agreement says that within 10 years JAX will create at least 300 full-time positions with an average salary equal to 125 percent of the Connecticut average wage.

It also specifies that Jackson Laboratories will give preference in hiring and in contracts to qualified Connecticut residents and vendors.

The state will also receive 10 percent of any net royalty proceeds from intellectual property, up to $3 million, and 50 percent of royalty proceeds exceeding $3 million. 

Construction is expected to begin in the spring. The health center will lease the property to Jackson Labs until 600 jobs are created, at which time the land will be given to JAX.

d harrington January 06, 2012 at 02:24 PM
Should, could, maybe, no reason not to, expected to. These are the terms used to described a 300 million dollar investment? As well as Personalize medicine, really? Combating the onset of cancer, really? And Superbugs, Really? So JAX's is selling what's to be the cure to world illness! And Malloy bought it, really!
Andrew Ziemba January 06, 2012 at 09:27 PM
It's always easier to spend other people's money than your own. This is just another disastrous example of government playing winners and losers in the marketplace. More often than not, it results in nothing more than taking money from the poor and the middle class, and covertly shifting it straight into the pockets of the richest of the rich.

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