MassDevelopment.com: Press Room: MassDevelopment Announces State's First Emerging Technology Fund Loan to Acusphere, Inc.

MassDevelopment Announces State's First Emerging Technology Fund Loan to Acusphere, Inc., Construction Begins at Company's New Tewksbury Facility
October 18, 2004

Contacts:
Adam Bickelman, 617-330-2086 or abickelman@massdevelopment.com
Janet Hookailo, 617-330-2018 or jhookailo@massdevelopment.com

MassDevelopment President/CEO Robert L. Culver and Acusphere, Inc. President/CEO Sherri C. Oberg today joined Senate President Robert E. Travaglini and Massachusetts Biotechnology Council President Thomas M. Finneran to announce the first loan issued by MassDevelopment under the state's newly funded $25 million Emerging Technology Fund (ETF). The announcement took place at a ceremony at Acusphere's new manufacturing facility on East Street in Tewksbury.

The ETF was created to help technology-based businesses locate and expand in Massachusetts. The fund targets companies that are ready to transition from research and development to production. It provides loans for buying equipment, renovating leased space or purchasing and expanding facilities.

"Acusphere and companies like it are a critical component of the Commonwealth's developing economy," said Culver. "As emerging biotech firms like Acusphere move from research and development to full-scale manufacturing operations, we must be ready to reach out and help them, or face losing them to competitor states nationwide. We began working with Acusphere last year and were impressed with their progress and potential. We know they evaluated locations for their manufacturing plant in other states and are very pleased that they have decided to expand in Massachusetts."

The $2 million ETF loan will help Acusphere renovate and equip a building located at 890 East Street in Tewksbury, Massachusetts. Headquartered in Watertown, Acusphere will use the satellite facility to manufacture AI-700, a drug designed to enhance ultrasound for purposes of detecting coronary heart disease. Currently, Acusphere manufactures AI-700 outside Massachusetts. Operations at the new facility have the potential to generate hundreds of local jobs over several years, replacing those lost when Muro Pharmaceutical, Inc. closed down.

"We are very pleased to be continuing our expansion in Massachusetts," commented Oberg. "We anticipate important operational efficiencies as a result of manufacturing AI-700 in close proximity to our headquarters. The funding from the Emerging Technology Loan Fund, combined with the broad biotech experience found locally, convinced us that creating the facility locally is the right choice. We appreciate the confidence MassDevelopment has demonstrated towards our future and we are thankful for the economic support."

Travaglini and Finneran, who each played a key role in securing last session's Emerging Technology Fund appropriation, stressed the importance of the biotechnology industry to the future growth of the Commonwealth's economy.

"With an anticipated increase in the number of biotech jobs topping 100,000 by 2010, our innovative workforce training programs and economic incentives such as the Emerging Technology Fund, the biotech industry will continue to provide the economic oxygen needed to propel Massachusetts forward," said Finneran. "However, we cannot rest on our laurels as a top biotech cluster. We must seize on all opportunities to make our state attractive to companies like Acusphere as they look to expand and manufacture here in the Commonwealth."

"Other states are aggressively campaigning to raid our bio-technology expertise and businesses. Now, more than ever, it is imperative that we continue to make real investments in the biotechnology industry to create jobs and grow our economic base," said Travaglini. "We will continue to make these kinds of investments because the dividend to the Commonwealth is a stronger economy."

MassDevelopment also reported eight more loan applications in the pipeline for a total of $7.325 million. Applicants are located in every region of the state.

Acusphere (NASDAQ:ACUS), based in Watertown, MA, is a specialty pharmaceutical company that develops new drugs and improved formulations of existing drugs using its proprietary microparticle technology. Acusphere's three initial product candidates are in clinical development and are designed to address large unmet clinical needs within cardiology, oncology and asthma.

MassDevelopment, the state's finance and development agent, partners with businesses and local officials to stimulate economic growth across the Commonwealth. In fiscal year 2004, the agency financed more than 160 projects statewide, supporting the creation of more than 5,000 jobs and 3,900 housing starts.

The Massachusetts Biotechnology Council (MBC), founded in 1985, is a not-for-profit organization that provides services and support for the Massachusetts biotechnology industry. The MBC is committed to advancing the development of critical new science, technology and medicines that benefit people worldwide. Representing over 400 companies, academic institutions and service organizations involved in biotechnology and healthcare, the MBC works with public leaders to advance policy and promote education, while providing member programs and services.