Gene therapoy co. buys vacant U. building

Philadelphia Mayor Ed Rendell announced yesterday that Genovo, a gene therapy company co-founded by a University professor, will establish its headquarters in West Philadelphia. The company will locate its headquarters at 3025 Walnut Street in the Hojoka building, which Genovo purchased from the University. "Genovo is the first new venture that recognizes the potential of being here in West Philadelphia," Rendell said at a press conference yesterday. Genovo -- co-founded by CEO Marian Grossman and Molecular and Cellular Engineering Professor James Wilson in 1992 -- bought the building for $1.45 million. The purchase also included a $450,000 credit to the University for deferred maintenance, according to Executive Vice President John Fry. The University originally bought the building for $1.9 million in 1988, Fry added. Genovo has priority on commercializing any gene therapy discoveries at the University's Institute for Human Gene Therapy, which Wilson directs, according to Grossman. Rodin, who spoke at the press conference, said she hopes Genovo will be the first of many technology-related firms to locate themselves in West Philadelphia. Although the company currently consists of five employees, it plans to expand, creating 180 jobs in the next three years. "We think that there will be a wonderful fallout in generation of jobs and economic activity from this small company," University Board of Trustees Chairperson Roy Vagelos said at the press conference. The company also hopes to provide opportunities for undergraduates and graduates to work on gene therapy research, Wilson said. According to Grossman, Genovo plans to spend $8 million renovating the Hojoka building, adding laboratories and a pilot manufacturing facility. The first phase of the renovations, involving remodeled office space, is expected to be completed by June 1997. "When [the renovations] are complete, [the building] is going to house a company that really will be the world's leader in gene therapy treatment," Grossman said. Eventually, Genovo hopes to build a full production factory in the Philadelphia area, Grossman said. The University had no plans for the Hojoka building, which had been vacant for several years, Fry said. The sale to Genovo, which was considering moving to suburban Philadelphia, was finalized last month after six months of negotiations, he added. "We were able to craft a deal that kept them here," Fry said. If Genovo decides to sell the building, the University can veto the sale, Fry added. Last year, Genovo finalized its first corporate partnership with Biogen, a pharmaceutical company that will pay out $35 million over five years. Genovo focuses on marketing new technologies for virus-based gene delivery systems for the treatment of diseases like cystic fibrosis.

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