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Genzyme expansion in jeopardy
$260m Framingham plant faces hurdles on water, sewage capacity

By Todd Wallack, Globe Staff | November 21, 2007

Genzyme Corp., one of the state's largest biotech companies, has quietly drafted plans to build a $260 million biotech drug manufacturing plant in Framingham, similar in size to the one it built in Allston 11 years ago.

But the Cambridge-based company said the project is in danger of being derailed because Framingham doesn't have enough water and sewage capacity to accommodate any significant commercial expansion. And so far, the town hasn't been able to line up the $12.9 million needed to make the necessary improvements.

Framingham officials say they have been working with the state and Legisla ture to secure the funding. A Genzyme spokesman said legislative leaders were trying to resolve the issue last night. If the money doesn't come through soon, however, Genzyme said it will be forced to consider building the plant in another town or state. The company said it told state officials it needed "clarity" about the situation by the end of this month, but has yet to receive it.

"We know there is a lot of good will about this, but nobody has been able to bring it to fruition," said Mark Bamforth, Genzyme senior vice president for corporate operations and pharmaceuticals.

Bamforth said the company hopes to break ground on construction in the first half of next year - but needs assurance soon that the improvements will be made. He said the project, expected to take several years to complete, would create 300 jobs and include about 300,000 square feet of office, laboratory, manufacturing, and purification space. The plant would be able to cultivate specially engineered cells, which could be used to manufacture cutting-edge drugs.

"We want to make this happen," Bamforth said. "But if we cannot find a way to do it, we have to look at alternatives."

Governor Deval Patrick has apparently been counting on the Legislature to quickly pass his $1 billion life sciences initiative, which would conceivably include money for capital improvements like those needed to support Genzyme's project. But key legislators say they need more time to consider the bill. And administration officials this week rejected a suggestion by House Speaker Salvatore F. DiMasi that they approve $40 million in the interim to help Genzyme, Shire PLC, and a handful of other life sciences companies considering expansion projects.

Kofi Jones, a spokeswoman for the Massachusetts Office of Business Development, said the agency is working with Genzyme and Framingham officials to secure funding for the sewer and water system improvements, but couldn't offer details or guarantee the money will be approved.

State Representative Pam Richardson, a Framingham Democrat, said she was concerned by Genzyme's complaints, but state leaders are working hard to line up the funding to make sure the project goes forward. "It's a high priority," she said.

Framingham town manager Julian Suso said he doesn't believe the project is in jeopardy yet, but that it is important "all the parties continue to move forward" with the process.

Genzyme is already one of Framingham's largest employers with 15 buildings and 1,650 employees, more than it has in Cambridge. Overall, Genzyme has 10,000 employees worldwide, including 4,500 in Massachusetts, making it the state's largest biotech employer.

If the state funding for the Framingham expansion falls through, Bamforth acknowledged the company could conceivably chip in the $12.9 million itself. But he said that seems unfair, since it would benefit other companies that expand in Framingham, not just Genzyme. It would also reduce the amount of money the company has available to invest in other projects, he added.

By contrast, Shire officials seemed upbeat about its prospects of going forward with a $210 million expansion project that would create hundreds of jobs in Lexington. In Late August, the British drug maker threatened to build in Maryland, North Carolina, or Rhode Island if it couldn't secure a rich enough incentive package to build in Massachusetts.

But since then, Shire said it has made progress in talks with Massachusetts officials. Shire spokesman Matt Cabrey said Lexington recently granted the firm $7.6 million in tax incentives over the next 20 years. And he said he expects the state to offer a broader incentive package "in the near future."

Jones, the state spokeswoman, said the state has worked with Shire and Lexington to develop a compelling incentive package, though a portion of the offer depends on passage of Patrick's life sciences legislation. Cabrey said the company hasn't received the offer yet.

Todd Wallack can be reached at twallack@globe.com.