Baylor, US Oncology to hire 900 

A proposed laboratory testing and molecular diagnostics facility affiliated with the Baylor Health Care System has selected a location in Lewisville, where it plans to eventually employ more than 900 people and have an annual payroll of $67 million.

The as-yet-unnamed venture is going under the temporary name of “NewCo,” and branding efforts are under way, sources familiar with the project say.

NewCo is a joint venture between the Baylor Health Care System and US Oncology, and possibly other partners, said Nika Reinecke, director of economic development for the City of Lewisville.

The company has leased 172,000 square feet at the ConVergence Office Center at 2501 S. State Highway 121, where it will employ 214 by the end of this year, according to an economic development agreement with the city, Reinecke said. The agreement calls for NewCo to employ 320 next year, 550 in 2012, 762 in 2013, and 939 in 2014. The median salary will be about $72,000 and the company’s annual payroll will be $67.2 million, Reinecke said.

Regional importance

The company will begin moving into ConVergence, a 931,000-square-foot, 12-building complex, in late spring.

NewCo plans to put about $37 million worth of business property and other capital improvements into the center, Reinecke said. After an eight-month national search, NewCo chose Lewisville over Oklahoma City, she said, because of the quality of the labor force and ConVergence’s proximity to major universities and Baylor Health Care System.

“We are extremely excited that we emerged as the place to be for this particular company,” Reinecke said. “It’s very important to the region.”

To lure NewCo, the City of Lewisville will provide a 75% abatement on business property taxes for the first five years the company operates in the city and a 25% abatement for the next five years, said Elizabeth Trosper, economic development specialist for Lewisville.

The city will rebate its portion of sales taxes on business equipment purchases for NewCo’s first four years, she said. The abatement is estimated to be worth $579,000 over 10 years and the rebates are expected to total about $400,000 over four years.

The company has incorporated under the NewCo name but will change it, probably in March, based on branding studies now under way, Reinecke said.

Representatives of NewCo, Baylor and US Oncology could not be reached for comment.

A Web site, www.newcodallas.com, describes NewCo as a full-service clinical laboratory whose mission is to improve patient care by providing personalized medical diagnostics including molecular diagnostics. The site says NewCo specializes in the emerging field of pharmacogenomics, which is the analysis of the genetic make-up of tumors to guide treatment decisions. The site says NewCo’s goal is to leverage pharmacogenomics toward developing treatments targeting specific genes.

The study of pharmacogenomics deals primarily with the treatment of cancer, said Keith Brown, executive director of BioDFW, a nonprofit group that promotes the North Texas region’s biomedical industry initiatives.

After reviewing NewCo’s Web site, Brown said he believes much of the company’s initial employment will come from existing Baylor operations as it consolidates laboratory testing into a separate, free-standing entity. Reinecke, however, said her understanding is that the jobs will be new to the region.

The site includes postings for a variety of positions, recently including a director of cytogenetics, medical technologists, laboratory managers, a global logistics manager and a directory of quality assurance and regulatory affairs. Cytogenetics is the branch of genetics involving the study of cell structure and function, especially the chromosomes.

In addition to working with Baylor, NewCo will solicit business from other doctors and health care facilities.

Baylor and “several other investors” have invested $25 million into the NewCo venture, according to the Web site.

“We anticipate this investment will cover the startup needs and transition,” the site says. “This venture provides BHCS with a new opportunity to become a leader in the molecular medicine arena within the DFW area.”

Routine medical testing will continue to be done at Baylor, but NewCo will handle the analysis and NewCo’s lab results will flow electronically into Baylor’s system, the site says.

Biomedical firms targeted

The efforts of state and North Texas economic development professionals to attract biotechnology and medical device companies to Texas have made the state a destination for these types of companies, said Linda Burns of Burns Development Group, who provided incentive advisory services to CBRE Consulting and the City of Lewisville’s economic development team. CBRE Consulting provided site selection services.