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Israeli Firm Expanding to Region
Pharmaceutical company scouting for possible site.
A startup Israeli pharmaceutical company is working to start a U.S. subsidiary in the Lansing area.
The operation could be the first success story of a volunteer group looking to build business ties between Michigan and Israel. It also would be the first recruitment win for the fledgling Lansing Economic Area Partnership Inc.
“Our goal is to get closer to the U.S. market,” said Peter Assaf, chief executive officer and founder of RenoPharm Ltd., which operates from a for-profit business incubator in Nazareth. “I'm planning in three to four months to be there.”
RenoPharm officials visited Michigan in October and returned in February to scout possible locations, meet with local leaders and connect with companies with which it likely would do business.
The last remaining hurdle is raising $5 million from investors for the move and Phase I clinical trials for its patented drug compound.
Assaf said he found the right mix in Lansing because of potential research resources at Michigan State University and access to life sciences service companies in Grand Rapids and Kalamazoo.
The one-hour drive to those cities should be easy for company officials used to flying 15 hours to reach business partners, said Matt Dugener, president and chief executive officer of regional economic development group LEAP.
“The southern part of Michigan has all the resources a biotech firm needs to be successful,” he said. “They're just not all in one community.”
RenoPharm is working on a drug compound with potential to treat hypertension, epilepsy and other diseases. It's U.S. operation likely would require five to 10 employees in laboratory and business office jobs to start, Assaf said.
RenoPharm has been shown rentable lab space at MBI International and has been introduced to faculty members who might be interested in doing research with the company, said Paul Hunt, MSU's associate vice president for research and graduate studies.
Israeli entrepreneurs excel in areas where Michigan is trying to gain an economic foothold, including life sciences, alternative energy and homeland security, said Ron Perry, a member of the volunteer-led Michigan Israel Business Bridge.
In the past 15 months, the bridge has brought eight companies into Michigan to explore opportunities.