Several reasons make Hawaii a viable place for Hawaii Biotech:

Large University of Hawaii Research Effort
Hawaii Biotech is a potential beneficiary of a much larger biotech research effort occurring at the University of Hawaii (UH). UH has established a new $150 million biomedical research facility, which will house 30-40 new biotech researchers. When combined with more than $50 million in biotech related research currently in place at UH, this expanded effort is expected to provide a catalyst for the development of the biotech industry in Hawaii.

As the largest, most well established biotech company in Hawaii, Hawaii Biotech is uniquely positioned to benefit from this research. The Company has excellent, long term relationships with UH and its technology transfer office. Company founders are from UH. Hawaii Biotech has concluded a broad-based, multi-project research collaboration with the University and, as the first project under this agreement, is actively collaborating with the UH researchers on its anthrax program.

Important Tax Credits
The State of Hawaii offers a 20% refundable tax credit for qualified R&D, including clinical trials, conducted in Hawaii. No State tax liability is needed to claim this credit and its refundable nature makes this credit an additional source of financing for Hawaii Biotech. In addition, Hawaii offers 100% State tax credits to investors who invest in Hawaii biotech (and other high tech) companies.

Clinical Trial Center
Hawaii is emerging as a preferred location for human clinical trials conducted by major pharmaceutical, biotech, contract research organizations (CROs), and site management organizations (SMOs) looking to bridge Caucasian, Japanese, and other Oriental populations. Hawaii’s dense population and ease of patient recruitment gives it a competitive advantage compared to other areas in the country with a large Japanese ethnic population. In addition, Hawaii has developed certain clinical development capabilities that have attracted non-ethnic studies as well.

Close to 300 clinical trials are currently underway in Hawaii. Sponsors and managers include each of the ten largest global pharmaceutical companies, 42 of the 50 largest pharmaceutical/biotech companies, major CROs and SMOs, and government agencies. Representative names include Merck, Pfizer, Amgen, Lilly, GlaxoSmithKline, Idec, Biogen, Quintiles, Radiant Research, and the NCI. This clinical trial capability provides Hawaii Biotech with convenient access to a critical mass of infrastructure important to its Phase II licensing and value creation strategy.