Gov. Perry Helps Announce Acquisition of Texas Biotech Firm

Office of the Governor - Gov. Rick Perry helped announce the acquisition of Kalon Biotherapeutics LLC by FUJIFILM Diosynth Biotechnologies U.S.A. Inc., a subsidiary of FUJIFILM Corp. Kalon, a biopharmaceutical contract manufacturing organization owned by the State of Texas and the Texas A&M University System, is an important part of the growing biotechnology industry in Texas.

"This signing represents an important next step and an exciting new chapter for the State of Texas, which is fast becoming a global leader in biotechnology and pharmaceutical manufacturing," Gov. Perry said. "The Texas A&M Center for Innovation in Advanced Development and Manufacturing is at the forefront of an exciting new method to produce life-saving treatments and vaccines, and I'm proud of the role the state has played in helping shape Texas into America's ‘Third Coast' in biotechnology."

Kalon is biopharmaceutical contract manufacturing organization that produces life-saving vaccines and therapeutics. Much of its work is done in collaboration with the Texas A&M Center for Innovation in Advanced Development and Manufacturing (CIADM), one of three public-private partnership centers created by the U.S. Department of Health and Human Services to help guard against a variety of threats including bioterrorism and infectious diseases.

"When we first created Kalon in 2011, we set out to change the world through the rapid production of life-saving vaccines and therapeutics. The vision and investment by the state of Texas and the Texas A&M System have been critical to Kalon's success to date," Kalon Founding President Andrew Strong said. "Now, with the combined strength and capability of FUJIFILM Diosynth Biotechnologies, the world's leading global biotechnology service company, and Kalon, I have no doubt that we are able to emphatically answer the world-wide call for the discovery, testing and manufacturing of vaccines and therapeutics that can prevent diseases or cure the critically ill."

"This acquisition proves the tremendous value of public-private partnerships, and the importance of creating an environment in which they can succeed," Texas A&M System Chancellor John Sharp said. "The State of Texas and the A&M System are delivering on a joint promise to help businesses develop and to create jobs. I applaud the Texas A&M System Board of Regents for their unwavering support in building Kalon and positioning it for this transaction."

Texas' strong economic environment provides a foundation for biotechnology companies to flourish. In 2005, at the request of Gov. Perry, the Texas Legislature created the Emerging Technology Fund (TETF), which provides critical, early-stage funding for groundbreaking technologies with the purpose of creating high-tech jobs and furthering scientific advancement. To date, the TETF has allocated nearly $220 million in grant matching and research superiority funds to Texas universities and more than $205 million to over 145 early stage companies, including the CIADM.