Gov. Rounds recommends $7.5 million for Hematech

(Sioux Falls and Pierre, South Dakota) – South Dakota Gov. Mike Rounds announced today that he is recommending $7.5 million in financing to Hematech, LLC to assist in the planning for and construction of a $15 million headquarters building that will include a state-of-the-art Good Manufacturing Process (GMP) pilot purification facility.  In the next eighteen months, Hematech intends to build a highly sophisticated biotechnology campus in Sioux Falls and additional animal production facilities around the state. 

“This project will have a far reaching impact on all of South Dakota and no doubt that impact will ripple into Iowa and Minnesota,” Rounds said. “This is exactly the type of economic development we are looking for”. “It allows us to capitalize on so many of our strengths in South Dakota, including agriculture, medicine, business and education. Additionally, it promises to bring together the academic research and corporate worlds,” he said. 

The $7.5 million financial package includes a $500,000 Future Fund grant, a $2 million REDI Fund loan and a $5 million taxable bond issuance through the Economic Development Finance Authority, a statewide issuer of industrial development bonds.  The Authority, at the recommendation of Governor Rounds, is in the process of changing the maximum bond issuance from $2.4 million to $5 million to accommodate larger, more capital intensive projects.

Hematech came to South Dakota in 2002 and expanded its facilities earlier this year. This second expansion involves the construction of a cutting-edge facility that will allow the company to take the purification and separation of fully-human polyclonal antibodies to the next level. “Hematech purifies blood and produces protective antibodies that help fend off serious medical threats, such as anthrax,” Rounds said. 

“This financing is yet another example of the tremendous support we have received from the people and the government of South Dakota,” stated James Barton, CEO of Hematech.  “South Dakota is a great place to do business and we look forward to a long and rewarding relationship.”

Rounds said the state has already benefited tremendously from the location of Hematech, but said this is really just the beginning. “I can’t emphasize enough the quality of these jobs. Hematech is hiring PhD’s, graduate students, lab technicians and other professionals with advanced degrees. These are the types of jobs that will keep our young people in South Dakota,” he added.

The governor also talked about the collaboration that has taken place as a result of this project. “Hematech has worked closely with South Dakota State University, the University of South Dakota and medical facilities in the state,” he said. “The company is already utilizing the Animal Disease Research and Diagnostic Lab at SDSU, which gives our students there tremendous real world experience,” he said.

 About Hematech, LLC 
Hematech, working with its collaborator, Kirin Brewery Company, Ltd., of Tokyo, Japan, is a pioneer in the development and production of antibodies for therapeutic uses. The Company’s patented bovine transgenic technologies will enable Hematech to rapidly produce unlimited quantities of uniform, high affinity, fully human antibodies for a wide variety of disease targets. Hematech intends to build the capacity to produce a diversified portfolio of antibody products that the company will commercialize through collaborative arrangements with multiple pharmaceutical partners. For more information on Hematech, visit the company's website at www.hematech.com.

For More Information:

State Contact:  Mark Johnston, (605) 773-3212

Hematech Media Contact: Kari Lampka, MacDougall BioCommunications (508) 647-0209

Hematech Contact:  James Barton (203) 222-3129