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Kalon Biotherapeutics Agreement

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Kalon Biotherapeutics Agreement

  1. 1. City Council Regular Session June 26, 2014
  2. 2.  Private company formed in Spring 2011 ◦ TAMUS & OOG-ETF  Commercial Development and Manufacturing Organization (CDMO) ◦ Chemical, biological, radiological, and nuclear (CBRN) vaccines and medical countermeasures  Texas A&M CIADM ◦ Headquarters ◦ Live Virus Vaccine Facility ◦ Pandemic Influenza Facility
  3. 3.  Corporate headquarter expansion  Pandemic Influenza Facility ◦ ~120,000 SF current good manufacturing practice (cGMP) ◦ Can produce up to 50m vaccine doses within four months  Live Virus Vaccine Facility ◦ ~50,000 SF biosafety level 3 (BSL3) ◦ Process development, clinical supply, and commercial production facility capable of undertaking multiple projects
  4. 4.  Incentives: ◦ Seven year incentive schedule ◦ Not to exceed $1,093,548.61 over term of the agreement ◦ Incentive calculated as a percentage of property taxes paid  Kalon’s Obligations: ◦ $70 million real and personal property valuation ◦ 100 FTEs with an annual payroll of $6 million beginning 2018  City’s Clawbacks: ◦ No obligation to approve disbursement for any year in default  Condition Precedent ◦ City of Bryan Economic Development Agreement: $411,451.39
  5. 5. 2015 - Year 0: Completion of Construction 2016 - Year 1: $196,838.75 2017 - Year 2: $174,967.78 2018 - Year 3: $153,096.81 2019 - Year 4: $153,096.81 2020 - Year 5: $153,096.81 2021 - Year 6: $153,096.81 2022 - Year 7: $109,354.86 $70 million property valuation 100 FTEs w/ $6 million payroll
  6. 6. 2013 63 FTEs $5.3 million 2018 75 FTEs $3.75 million 2012 31 FTEs $1.9 million 2018 100 FTEs $6.0 million2014 74 FTEs $5.0+ million RVP CS

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