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Montana Biotechnology Infrastructure Proposal – A proposal to the State of Montana ARPA Commission for one-time investment in infrastructure, entrepreneurship and innovation for Montana’s rapidly expanding bioscience and technology sector.
Montana Biotechnology Infrastructure Proposal
Table of Contents
Proposal Overview & Statewide COVID–19 Correlation . . . . . . . . . . . . . . 3
Project Synopsis & Funding Request by Community . . . . . . . . . . . . . . . . . 5
Detailed Community Projects
Great Falls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Billings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Butte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Helena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Missoula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Bozeman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Flathead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Statewide Biotechnology Impact,
Workforce Landscape, Trends & Potential . . . . . . . . . . . . . . . . . . . . . . . . 30
Current Montana Bio Companies & Successes . . . . . . . . . . . . . . . . . . . . . 31
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Montana Biotechnology Infrastructure Proposal
The goal of this proposal is to leverage our collective expertise and strength, accumulated over
the last two decades as we have built the biotechnology sector in Montana. Here, we present
projects that will further accelerate the formation and growth of high–paying jobs in the science
and technology businesses, not just in one or two cities in Montana but ultimately across the
state, north to south and east to west. We will secure anchor projects throughout the state
bringing necessary infrastructure, entrepreneurial stewardship, STEM education and
community engagement programs to solve real–world health problems through technology and
research.
Background
The economic climate for bioscience and technology companies has expanded greatly in recent
years and reached unsurpassed levels during the pandemic, illustrating the resiliency of this sector.
Incredible breakthroughs in vaccine development, therapeutic testing, diagnostic tests, remote
medicine and medical equipment have been brought to bear in record time by the biotech
industry, saving lives and providing hope as an end to the pandemic is in sight. Over 180 million
cases of the novel coronavirus disease 19 (COVID–19) have been reported worldwide, and nearly 4
million people dead due to COVID–19 related causes. Many Montana companies played a key role
in the COVID–19 response and are poised to do more. Now is the optimal time for Montana to
accelerate the growth of our bioscience and technology sectors in order to build on successes to
date, expand core competencies and build resilience in the face of future potential health
challenges. Many of our new technologies will begin in small entrepreneurial companies like the
ones that exist throughout Montana today. These small companies may grow to be positioned to
provide new solutions in future crises.
This proposal is a product of coordination across the state of Montana and outlines a strategy to
guide, elevate and expand our innovation and entrepreneurship, increase our visibility, establish,
attract and grow tech–based companies and leverage our collective strengths across our
communities to provide high–paying jobs relevant especially to the bioscience and technology
sectors. Each community will serve as long–term advocates with capacity to plan, coordinate, and
provide oversight and accountability to projects designed to support infrastructure and attraction
of bio science research and tech–based companies across the state, focusing on Montana’s seven
largest communities.
This proposal is designed to provide the infrastructure to generate industry sector growth and
long–term revenue for the State based on a one–time investment of ARPA funds designed to
benefit every part of Montana. Upon ARPA funding, the seven communities will initiate existing
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“ready to go” projects from 2021–23 and use these projects as the foundation for a well–connected
network of bio science facilities and companies.
A grass roots planning committee has met frequently, drafted this proposal and each community
will then participate as needed within a network designed to support statewide bio science and
research activity. This team consists of a representative from each community proposal, Montana
University System (MUS), economic development, statewide bio science leaders and public and
private sector businesses, each with a vested interest in advancing the bioscience and research
sectors throughout Montana. Upon ARPA funding this group of committed individuals are willing
to continue to meet for the purpose of stewarding each of these projects over the next several
years.
Montana Biotechnology Infrastructure Proposal Committee:
• Stan Abel – Chairman of the Board for SiteOne Therapeutics
• Liz Ching – Apprenticeship Specialist, Department of Labor & Industry
• Allison Corbyn – Director of New Business Recruitment, Big Sky Economic Development
• Mike Follett – Executive VP, Zoot Medical Division
• Rob Goodwin – CEO, Vibliome Therapeutics & Montana BioScience Board Member
• Jenny Hansen – Operations Support, Montana BioScience Alliance
• Christina Henderson – Executive Director, Montana High Tech Business Alliance
• Julie Jaksha – Regional Director, Headwaters RC&D
• Stan Manoogian – Senior Managing Director, Insitor Asset Management LP
• Renee Reijo Pera – Director, McLaughlin Research Institute
• Sharon Peterson – Executive Director, Montana BioScience Alliance
• Tony Rosanova – President/CTO, Zoot
• Corbin Schwanke – CAO of Medical Genetics, Shodair Children’s Hospital
• Melanie Schwarz – CEO, Corridor Management Group
• Joe Thiel – Director of Academic Policy & Research, Montana University System
• Kurt Toenjes – Dean, College of Health Professions and Science MSU Billings
• Joe Unterreiner – Vice President, Business Development Officer, Glacier Bank
• Bill Warden – Advocate, Montana BioScience Association
• Scott Whittenburg – President, MonTEC
• Joe Willauer – Executive Director, Butte Local Development Corporation/Headwaters
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Collaboration with the Educational System
The projects in this proposal will collaborate with the Montana University System campuses,
which have already made substantial curricular shifts to better serve the needs of the growing
bioscience community. The University of Montana, for example, is in the process of developing
a non–professional option in their respected B.S. in Pharmaceutical Sciences. This track will
prepare students to take on key roles in the biotech industry, particularly in companies
conducting clinical research.
Similarly, Great Falls College, City College of MSU–Billings, and Gallatin College of MSU–Bozeman
are exploring a collaborative associate degree program in medical lab technologies, providing
in–person educational pathways in each community to prepare entry level lab techs for health
and biotech employers.
Each of the community projects can conversely serve the MUS by providing valuable training
opportunities for students in the life sciences and by assessing the needs of the bioscience
industry statewide, so that curricula are further tailored to provide the talent pipeline the
industry needs.
Project Synopsis & Funding Request
As part of our Montana collaborative, members from seven communities have submitted a
proposal for ARPA funding to establish “ready to go” projects and leverage the assets and needs of
the individual communities. Completion of these statewide projects will greatly enhance the
state’s infrastructure for use to advance science and technology companies, create high paying
jobs, commercialize Montana–sourced technologies, and augment economic sustainability to serve
Montana in the face of uncertainty such as that associated with the recent pandemic.
The projects range in cost from $1.5mm to $3.4mm. This is a request for $19,274,000 for this
network of projects in seven communities across the State. Communities will collaborate to ensure
best practices with each community ultimately responsible for compliance with all criteria set forth
by the ARPA commission, the State and the Federal Government as it relates to reporting, audits
and compliance. Expenses associated with ensuring compliance with Federal and State reporting
requirements will be included in the budgets for each community–based project as defined below.
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Community Synopsis and Funding Request
● Great Falls – Montana Center for Alzheimer’s Research and Education (M–CARE) of
Great Falls, MT; Infrastructure improvements to support clinical trials in
neurodegeneration (Alzheimer’s & other dementias), intervention, and business
development in partnership with the McLaughlin Research Institute, MT Alzheimer’s
Association, Benefis and MIST (Appendix C).
o Funding request: $3,000,000
● Billings – Infrastructure Improvements at Montana State University Billings: The
Center for Translational Medicine, The Clinical Testing Laboratory and Mental Health
Services; Infrastructure improvements and expanded research space to support Center
for Translational Medicine in partnership with Montana State University Billings and
private sector.
o Funding request: $3,000,000
● Butte – Butte Bioscience Incubator, Butte, MT; Establishment of the Bioscience &
Technology incubator in partnership with Butte Local Development Corp
o Funding request: $1,474,000
● Helena – Shodair Medical Genetics Center for Genomic Medical Technology; Updates
for genomic research and infrastructure in partnership with Shodair
o Funding request: $3,000.000
● Missoula – Critical Bio–Laboratory/Facilities for Montana Companies and Researchers;
Expansion of MonTEC facilities in partnership with the University of Montana and
private sector
o Funding request: $3,400,000
● Bozeman – Laboratory Infrastructure Buildout; Laboratory buildout and disease model
voucher program to incentivize innovative small businesses associated with research
efforts toward unmet medical needs exacerbated by the COVID–19 pandemic.
o Funding request: $2,900,000
● Flathead – Biotechnology Industry Collaboration and Partnership; in partnership with
Flathead Valley Community College(FVCC) will produce highly trained scientists that can fill
the pressing workforce demands in the rapidly expanding biotechnology ecosystem.
o Funding request: $2,500,000
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Detailed Community Projects
Great Falls
Montana Center for Alzheimer’s Research and Education (M–CARE) of Great Falls, MT
Overview
This proposal is responsive to House Bill 632 of the Montana 67th Legislature which allows for funds
provided by the Department of Treasury through the American Rescue Plan Act to be used on public
health and human services programs and for economic stabilization. We seek funding to establish the
Montana Center for Alzheimer’s Research and Education (M–CARE). Specifically, the McLaughlin
Research Institute (MRI) and partners seek to: 1) Establish the first comprehensive clinical trial site in
Alzheimer’s Disease (AD) in the state of Montana in order to provide innovative treatment approaches
and prevention for Montanans, and 2) partner with industry to provide incubator space for new
companies to develop solutions for neurodegenerative diseases, a collection of diseases scheduled to
exceed $1 trillion in annual treatment costs in the next 2 decades.
Background
To date, more than 180 million cases of the novel coronavirus disease 19 (COVID–19) have been
reported worldwide, with nearly 4 million people dead of COVID–19 related causes. Multiple studies
have now demonstrated clearly that a pre–existing diagnosis of Alzheimer’s disease predicted the
highest risk of infection with COVID–19 and the highest mortality among the elderly. The increased risk
to those with AD and other dementias is linked to 3 observations:
● People with dementia are at high risk of infection because cognitive symptoms cause difficulty
with following common safeguarding procedures in many cases.
● A particular genetic background (called a homozygous APOE ε4 genotype) is associated with AD,
other dementias, and increased risk of hospitalization for COVID–19.
● Older adults with dementia, especially those in care homes, are at high risk of worsening
psychiatric symptoms and severe behavioral disturbances as a result of social isolation.
The McLaughlin Research Institute
The McLaughlin Research Institute (MRI) has been in continual operation in Great Falls, MT, since 1954
and is the major organization in the state of Montana and the northern tier states focused on solutions
for neurodegeneration. The city of Great Falls is an ideal home for this proposal: It is centrally located
in Montana, has a population of approximately 58,000, is home to members of several Native American
tribes, is adjacent to the Malmstrom Air Force Base and has a large elderly population. Few
independent research institutions in the United States have survived more than 65 years and few have
had the biomedical impact of the MRI. Our vision and goals are focused on solutions for those most at
risk for infection and death in our population—the elderly with AD and other forms of dementia. The
MRI is a founding member of the Montana Institute for Science and Technology which will recruit
financial support from outside the state of Montana to further build our science and technology
network.
Our goal is to reduce the devastating impacts of AD, on both patients and families, as the pandemic of
2020 comes to an end, and as the upcoming decades see the average age of the population of Montana
continue to increase in many counties across the state. Specifically, the MRI and partners request funds
to:
1) Establish the first and only clinical trials in the state of Montana aimed at providing innovative
treatment approaches for Alzheimer’s disease and prevention for Montanans.
2) Provide incubator space for new companies to develop solutions for Alzheimer’s disease and
related diseases that are scheduled to exceed $1 trillion in annual treatment costs in the next 2
decades.
Goal 1: Initiate the first and only clinical trials to date in the state of Montana aimed at providing
innovative treatment approaches for Alzheimer’s disease and prevention for Montanans
M–CARE will conduct clinical trials as new and potentially better therapeutics for AD are developed. M–
CARE will also develop protocols in collaboration with academic and VA affiliate faculty that will involve
longitudinal natural history studies utilizing cognitive, biomarker, and functional evaluations. M–CARE
will serve as a site to provide patient and caregiver services in addition to community education and
outreach. The site will be a crucial clinical resource for AD patients in a greatly underserved area for
neurological health care. For example, recently, through an accelerated process, the FDA (Food and
Drug Administration) approved the use of a drug called Aducanamab (now referred to as Adulhelm) as
the first new drug for use in AD in almost twenty years. In partnership with Advanced Neurology
Associates, the Benefis Health System in Great Falls, and the Montana Alzheimer’s Association, the
McLaughlin Research Institute will launch M–CARE and establish the first clinical trial site for AD in
Montana. We note that clinical trials are self–supporting with potential to generate new high–paying jobs
and income following initial set–up. More than 500 additional AD drugs are in the clinical trial pipeline in
the years to come.
Goal 2: Provide incubator space for new companies to develop solutions for Alzheimer’s disease and
related diseases that are scheduled to exceed $1 trillion in annual cost in the next 2 decades
We have the opportunity to address two needs: 1) The need to develop novel biomarkers, diagnostics
and therapies for neurodegenerative disorders such as AD and 2) the need to provide opportunities for
high–paying jobs in our communities across Montana while solving problems where they occur including
problems as complex and devastating as neurodegeneration. Developing effective therapies for AD and
other common dementias will require that we are present throughout Montana and that we have the
biotechnological space and resources focused on solutions. Our goal is to address the need to develop
new solutions while providing new jobs in the healthcare solutions industry by providing >10,000 square
feet of incubator space for R&D entrepreneurial development. The MRI is a natural home for this goal as
we have developed novel skills and technologies in antisense RNA disease targeting, novel animal
models of COVID disease and long–term neural impacts (referred to as “long–haulers”), and
computational approaches for identifying critical neural network components that may malfunction in
disease. We anticipate that this goal will result in innovative biomedical solutions and result in high
paying jobs. As noted above, in Montana, bioscience companies today employ 4,246 people in 674
businesses, with an average salary of over $85,000, well above the median household annual income in
the state of $55,000.
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Further detailed objectives
1. Establish framework for collaborative clinical trials center in the first year of funding with key
goals to:
A) Build out the designated physical shell space for the clinical trial intake and coordination site
B) Establish clinical trial protocols with industry
C) Launch recruitment of Montanans into clinical trials for AD with the goal of initially reaching
out to Cascade County and subsequently across other county and/or remote clinical sites for
referrals
2. Further develop architectural drawings and build out R&D business incubator space
3. Increase educational access to patients, family, and community members via tour of senior
centers and other public venues across Montana to reach each of the 56 counties
4. Launch educational internships for future leaders at the high school, community college, 4–year
and health sciences programs with 10–12 internships annually in communities across Montana.
Requested funding
In order to establish M–CARE in Great Falls, we seek funding to:
1. Finance buildout and infrastructure for clinical trials including a clinical intake site on the 1st
floor of the MRI and clinical trials collaborative space for industry partners ($1M)
2. Support construction of a biotechnology incubator facility focused on neurodegeneration using
10,000 sf of shell space of the MRI to provide office and lab space for private sector startups
focused on translating innovative biomedical research into public health solutions ($1.2mm).
3. Provide seed grants to spur public/private collaboration. The McLaughlin Research Institute and
partners will provide seed grants to spur innovative basic and translational biomedical research,
prioritizing public/private collaborations and projects with the potential for commercialization.
We estimate awarding five seed grants at up to $60,000 each, for a total of $300,000.
4. Acquire housing/accommodation facilities for caretakers/family members of those with AD in
clinical trials ($500,000).
Total requested funding: $3,000,000
Summary
Neurodegeneration is devastating; COVID–19 has revealed the susceptibility of our elderly who suffer
with neurodegeneration to higher rates of infection, serious complications and death. We seek to
improve the outcomes in general and as the COVID–19 pandemic wanes of those with AD. MRI is the
leading institution in the state of Montana that has the ability to focus on bringing new solutions for
neurodegeneration to our elderly.
Participants
M–CARE collaborative effort between the following:
The McLaughlin Research Institute
Advanced Neurology Specialists
Benefis Health System
The Montana Alzheimer’s Association
The Great Falls Development Authority
The Montana Institute for Science and Technology (MIST)
Montana BioScience Alliance
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BILLINGS
Infrastructure Improvements at Montana State University Billings: The Center for Translational
Medicine, The Clinical Testing Laboratory and Mental Health Services
Overview
This proposal is responsive to House Bill 632 of the Montana 67th Legislature which allows for funds
provided by the Department of Treasury through the American Rescue Plan Act to be used on public
health and human services programs and for economic stabilization. We propose to establish The Center
for Translational Medicine (CTM), upgrade the diagnostic testing capability of the MSUB Clinical Testing
Laboratory and expand mental health services and research and workforce development capabilities.
We seek to: 1) Renovate and equip existing laboratory spaces at MSUB for the CTM. Responding to the
regional need for biomedical incubator space and opportunities for collaborative biomedical research,
these spaces will support research projects that align with the “bench to bedside” mission of the CTM.
The CTM will connect the discoveries of basic science with clinical practice to improve patient care,
supporting entrepreneurial scientists in their efforts to grow the biotechnology sector in Billings. 2)
Upgrade the diagnostic testing technology and expand the menu of diagnostic tests performed by the
MSUB Clinical Testing Laboratory. Diagnostic testing has proven to be and will certainly remain a key
component in managing and understanding the spread of infectious respiratory viruses. The
improvements to the clinical testing lab will allow MSUB to better monitor respiratory disease and take
appropriate action to treat and/or isolate infected members of the MSUB community. 3) Expand mental
health service capacity in the Student Health Services clinic. The COVID–19 pandemic has created
additional stress in the lives of young adults. These improvements will position MSUB Student Health
Services to meet the emerging mental health challenges of post–pandemic student life, as well as
providing improved capacity for collaborative mental health research and workforce training. 4) Spur
innovation by providing seed grant funding for collaborative, biomedical research with strong
commercialization potential.
Background
Billings is the only major medical center serving Montana’s entire eastern and south–central regions and
northern Wyoming, extending the approximate population of impact for the Billings hospitals to 620,000
people. Forty percent of Billings hospital inpatients and revenue come from outside of Yellowstone
County (Ward, 2020).
As pointed out by panelists at Billings’ 2020 Business Healthcare summit, despite a robust and growing
healthcare sector the regional healthcare cluster is lacking the enhanced medical research facilities
necessary to attract both high–caliber medical research professionals and biotech firms—no such facility
exists in the 15–county service region. Establishing a Center for Translational Medicine in south–central
Montana’s only major medical corridor will allow medical and academic researchers to respond quickly
and collaboratively to health threats and crises, increasing both the economic and public health
resiliency of the region.
In the United States the COVID–19 pandemic has resulted in 34 million infections and over 600,000
deaths. Most infectious disease experts expect that COVID–19 will persist for the foreseeable future.
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Additionally, as society reverts to pre–pandemic patterns of behavior, normal seasonal respiratory
diseases (e.g., influenza and Respiratory Syncytial Virus) will undoubtedly make a return. There is a clear
regional need for medical research facilities and research opportunities to understand, treat and test for
these and other diseases.
Location
Montana State University Billings (MSUB) is the third largest campus in the Montana University System
(MUS). MSUB offers undergraduate degrees in STEM fields, multiple laboratory and field research
experiences, and workforce training in biomedical sciences and healthcare. Billings, the largest urban
center in Montana, is also home to three hospital systems: Billings Clinic, St. Vincent Healthcare and
RiverStone Health. In addition, Rocky Vista University will be breaking ground on a new Doctor of
Osteopathic Medicine school and plans to matriculate its first class in 2026. The hospitals and new DO
school make Billings a prime location for the growth of healthcare and health supply chain companies.
Goals
1) Establish the Center for Translational Medicine
The Center for Translational Medicine at MSUB will reside in spaces that currently consist of a
temporary 2,951 square feet laboratory primarily designed to support classroom lab teaching, and 2,180
square feet suite of office spaces.
The temporary lab spaces will be renovated and equipped into a permanent laboratory research suite,
with an open floor plan designed to support collaborative translational research projects carried out by
research–oriented physicians from the local hospital corridor, entrepreneurial scientists and university
researchers. The proposed renovations will include increases in fume hood capacity (from three to five
hoods), replacing the existing stationary lab benches with mobile lab benches designed to facilitate
collaborative projects, spaces to accommodate basic laboratory equipment and improving the
supporting area ventilation system. Commonly used equipment (such as, DNA Sequencer, PCR Thermal
Cycler, DNA and Protein Electrophoresis equipment, Gel Documentation System, Centrifuges, Biosafety
Cabinet, Mass Spectrometer, High Performance Liquid Chromatography (HPLC) Instrumentation,
Incubators, Refrigerator/Freezers) will be purchased for the lab. The equipment in the laboratory suites
will allow innovators to carry out research in surveillance sequencing of SARS–CoV–2 variants (especially
among vulnerable populations, such as Native Americans), analytical biochemistry, molecular biology,
microbiology and mammalian cell culture.
2) Upgrade the diagnostic testing technology of the MSUB Clinical Testing Laboratory
In January 2021, Montana State University–Billings opened the MSUB Clinical Testing Laboratory in
response to the COVID–19 pandemic. The 300 square foot Laboratory is presently housed in the MSUB
Student Health Services clinic. The lab conducts diagnostic SARS–CoV–2 testing of students experiencing
symptoms of respiratory disease, as well as asymptomatic “surveillance testing.” The lab conducts
testing under a CLIA certificate of waiver. In collaboration with Riverstone Health, the clinical testing lab
is a critical component in the University’s comprehensive effort to safeguard the health of the MSUB
community
The laboratory’s diagnostic testing technology will be upgraded to a Polymerase Chain Reaction (PCR)–
based platform. Currently, the lab uses a rapid antigen test to detect SARS viral protein from anterior
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nasal swabs. Antigen testing has the virtue of speed (approximately 30 minutes from swab to result),
but suffers from poor sensitivity (i.e., high false negative rate). PCR–based testing is generally more
sensitive than antigen testing and is regarded as the “Gold Standard” for clinical testing. The lab will
also expand its testing menu to include influenza viruses A and B, and Respiratory Syncytial Virus (RSV),
in addition to SARS–CoV–2. Since COVID–19, influenza and RSV have a similar spectrum of symptoms, but
different treatment modalities, it is essential that an effective testing program distinguish between the
viruses that cause these diseases.
3) Increase/Improve Mental Health Services
Student Health Services provides mental health counseling, consultation, outreach and education for
MSUB students, faculty and staff. Multiple studies suggest that there has been a considerable increase
in mental health issues among the general population and it is hypothesized these will be higher in
young adults in coming years. Recently published studies show an alarming increase in the burden of
mental health issues in the post COVID–19 pandemic era. Furthermore, analysis of hospital room
emergencies during the pandemic showed an increase in addiction related issues and increased mental
health problems that required medical and mental health intervention. There is, therefore, an urgent
need to expand existing mental health services and bring new therapy and mental health research
capacity on board at MSUB to address current unmet needs and to prepare for future challenges in the
post–pandemic era. We propose to renovate and add telehealth capabilities to the existing mental
health services area, better serving students’ medical and mental health needs and providing the
capacity for distance collaboration, particularly with partners in rural and underserved areas. An
additional counselor/researcher will both provide direct services and conduct research in their
respective area of mental health, collaborating with the College of Health professions, the CTM,
Riverstone Health and other external and internal entities.
4. Provide seed grants to spur public/private collaboration
The Center for Translational Medicine will provide seed grants to spur innovative basic and translational
biomedical research, prioritizing public/private collaborations and projects with the potential for
commercialization. We estimate awarding five seed grants at up to $60,000 each, for a total of
$300,000.
Workforce Development
Healthcare is the largest and fastest growing economic driver in Billings and Yellowstone County,
employing over 14,000 people (17 percent of total covered employment) and paying more than
$819,000,000 in wages. The CTM, Clinical Testing Lab, and expanded Mental Health Services will provide
sites for clinical training in fields identified by the Montana Department of Labor and Industry as
undersupplied in the south–central region: human services, mental health, and substance abuse social
workers; chemists; and medical and clinical lab technicians (Watson, 2017). MSUB is committed to STEM
education and the training of future healthcare workers. The CTM and the Clinical Testing Lab will be
integral players in this mission.
CTM. As an extension to the regional medical sector, the CTM will make Billings an attractive location to
professionals and students interested in healthcare training and employment. Research projects
housed at the CTM will employ lab assistants, offer internship opportunities for MSUB undergraduates
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and advanced training opportunities for clinicians. In addition, research projects supporting
entrepreneurial ventures will lead to Biotech start–ups in the region that would be expected to employ
scientists.
MSUB Clinical Testing Laboratory. The MSUB Clinical Testing Lab will initiate an internship program for
MSUB students enrolled in the Medical Laboratory Science (MLS) major. The MLS major prepares
students for careers in diagnostic clinical testing labs in hospitals, clinics and private companies. The
internship experience provided by the MSUB Clinical Testing Lab will be important in making MSUB
graduates competitive for further education and employment in this critical sector of healthcare.
Mental Health Services. This will provide additional internship opportunities for master’s students in
MSUB’s popular Rehabilitation and Mental Health Program. Internship opportunities have been greatly
impacted by COVID–19 and this will enable us to train students to meet the needs of our population.
Requested Funding
Total Requested Funding: $3,000,000
CTM – $2,050,000
Finance renovations
Purchase equipment
1.0 FTE CTM Director
MSUB Clinical Testing Laboratory – $150,000
Cepheid GeneXpert Xpress
Service contract
Supplies
0.25 FTE Lab Director
0.5 FTE Lab Assistant
Mental Health Services – $500,000
Finance renovations
Purchase and install telehealth technology and infrastructure
1.0 FTE Mental Health Counselor/Researcher.
Seed grants for public/private collaboration – $300,000,
An estimated five seed grants at $60,000 each
Community Partners
Billings Clinic
St. Vincent’s Healthcare
Riverstone Health
St. John’s United
Zoot Enterprises
Billings Urban Indian Health & Wellness Center
Big Sky Economic Development
Montana BioScience Alliance
Montana Institutes for Science and Technology (MIST)
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BUTTE
Butte Bioscience Incubator, Butte, MT
Overview
This proposal is responsive to House Bill 632 of the Montana 67th Legislature which allows for funds
provided by the Department of Treasury through the American Rescue Plan Act to be used on public
health and human services programs and for economic stabilization. We seek funding to establish the
Butte Bioscience Incubator (BBI). We seek to: 1) establish Butte’s first business incubator, with a focus
on fostering bioscience businesses, 2) partner with industry to identify new solutions and to expand
commercial research and development of new technologies, 3) provide incubator space for new
companies to develop solutions for industries that pertain to and are directly involved in the bioscience
space and 4) expand the capacity of the BBI for student education and community outreach, both on–
site and in partnership with satellite sites across the state. Each of these goals can succeed
independently and thus, can be separately considered for funding, as needed.
Background
Butte Bioscience Incubator. Butte continues to expand its economy, transitioning from a long serving
large company town to a much more diversified and modern economic base. Perhaps the most
significant change in the regional economy is the emergence of entrepreneurship. Small, start–up firms
have become the norm over the past dozen years or more. Small clusters of start–up firms have
emerged to become well–established businesses contributing to the overall regional economy. Much of
this has been a result of the concentrated support for entrepreneurs resulting in an emerging ecosystem
consisting of programs, institutions, amenities, and other assets that are recognized as providing
support that is critical to the emergence of this segment of the local economy. While this ecosystem
continues to become more established and effective over time, the Butte Local Development
Corporation and its partners have opted to examine the potential of establishing a business accelerator
to further spur entrepreneurship. With the focus of Montana Tech and the development of the Praxis
medical training facility, there is demand for businesses in the bioscience cluster, a trend that this
project will foster into tangible businesses and economic development projects.
Goals
The goal of this project is to develop a business incubator in Butte to support businesses and
entrepreneurs and foster economic growth that focuses on the bioscience space. The economic
implications of COVID–19 have been widespread throughout our community, and this project would be a
direct response to these setbacks, leading to economic growth and investment in Butte.
Specifically, we intend to:
1) Establish Butte’s first business incubator focused on developing businesses in the Bioscience
space.
2) Partner with industry to identify new solutions and to expand commercial research and
development capabilities of the Bioscience industry
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3) Provide incubator space for new companies to apply knowledge to develop biological solutions
that sustain, restore, and improve the quality of life for humans, plants, and animals in our
world.
4) Expand the capacity of the BBI for student education and community outreach, both on–site and
in partnership with satellite sites across the state
Goal 1: Establish Butte’s first business incubator focused on developing businesses in the Bioscience
space
Business incubators are a relatively new concept as an economic development strategy created to assist
early stage and start–up ventures to define and build their initial products, identify promising customer
segments, and to secure resources, including capital and employees. Often, incubator programs are of a
relatively short duration, perhaps lasting about three months, usually providing a small amount of seed
capital and working space, and engaging mentors such as other successful entrepreneurs, potential
investors, and others who provide support in accelerating the startup process. In 2015, there were more
than 170 incubator programs that offered early–stage startups investment and mentorship in exchange
for equity in the United States. That was more than 10 times the 16 incubator programs that existed in
2008. Though information about the effectiveness of business accelerators is incomplete, they have
reportedly resulted in creation of thousands of new, successful ventures. We intend to develop the
incubator in the Thornton Building, one of Butte’s leading technology centers. The space is home to two
economic development organizations that provide on–site training and have an established track record
of promoting and supporting small businesses throughout Southwestern Montana. In addition to
programming the facility is the center of Butte’s fiber loop and provides other amenities that make it an
ideal location for this project.
Goal 2: Partner with industry to identify new solutions and to expand commercial research and
development capabilities of the Bioscience industry
Butte has long been a leader in emerging technologies. Whether it is the resource extraction industry,
the airline industry or IP that has been developed at Montana Tech, Butte is full of innovators. The
culmination of this project will provide support through partnerships with industry experts and faculty
from Montana Tech to continue this tradition of innovation. The research capabilities and facilities that
are located on the Montana Tech campus can be utilized as space for innovators to test their products,
and the engineering school has the unique ability to drive ideas into reality. In addition to this
partnership, a local business, The Praxis Center, a developing world class medical training facility will
provide access to leading trainings in the bioscience space and partner to work with entrepreneurs in all
capacities.
Goal 3: Provide incubator space for new companies to apply knowledge to develop biological solutions
that sustain, restore, and improve the quality of life for humans, plants, and animals in our world
One of the keys to successful entrepreneurial development is space for innovations to occur. The
benefits of co–locating businesses, being immersed in an entrepreneurial environment and having access
to experts in the field spawns businesses that grow into companies. We have identified approximately
6,000 sf of commercial space in Butte’s historic Uptown that can be transitioned into an incubator,
complete with co–working space, individual offices and technology capabilities that are needed for this
type of development. The space will also be home to Southwestern Montana’s economic development
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organizations, onsite consultants that can work with entrepreneurs on product development, business
planning and long–term strategy. The space will coordinate with both the public and private sector to
encourage collaboration and provide additional resources to the project.
Goal 4: Expand the capacity of the BBI for student education and community outreach, both on–site and
in partnership with satellite sites across the state
Butte’s central location in Montana has long proven to be a valuable asset to the community. This site
has the ability for entrepreneurs to not only benefit from working with companies and higher education
in Butte but with neighboring universities and companies in Bozeman, Billings and Helena. The ability to
collaborate with these other institutions will ensure that companies have access to the skills and tools
that they need for turning ideas into businesses. In addition to this outreach, the BBI will have close ties
with local education institutions, working to develop the entrepreneurial spirit in students at a young
age, sharing that business ownership is a viable career path. Bioscience is an industry that is rapidly
emerging throughout our state and community. The ability to use biological advancements to improve
human life has shaped our plan and will be a constant thread through the businesses that are supported
by this incubator.
Further detailed objectives with anticipated outcomes
● Opening of BBI
● Define and plan the physical space and staffing requirements for the incubator
● Work with partners to define industry sectors, development of programming
● Establish all partnerships necessary to carry out the goals of the incubator programming,
focus on public/private partnerships
● Develop staff positions and recruit a center director
● Develop architectural drawings and build out R&D business incubator space
● Launch expansion of education of future leaders at the high school, community college, 4–
year and partner with organizations throughout the region to grow workforce through
incubator programming
● Recruit first class of incubator participants
Requested funding
In order to establish BBI we seek funding to:
1) Redevelop space in the Thornton building and create the physical incubator ($1m)
a. This will include retrofitting existing space, purchasing necessary equipment, upgrading
mechanical of the space and creating an environment that is conducive to
entrepreneurial development.
2) Develop programming for incubator ($474,000)
a. One of the critical components to a successful incubator is education and programming.
This cost will provide dedicated staff and resources that will support the project.
Total requested funding: $1.474M
The Bioscience industry will continue to lead emerging technology in our community. The proposal that
is being brought forth will foster these businesses and support entrepreneurs at a level that currently
does not exist in our community. As we look to recover from the COVID–19 pandemic, this work will be
paramount for creating the high–paying jobs of the future. Support for this project will create an
incubator space, provide support for training and help shape the future economy of Butte and
Southwestern Montana.
We have a detailed feasibility study for this project that is available upon request.
Participants
This proposal is a collaborative effort between the following:
Butte Local Development Corporation/Headwaters RC&D
Montana Technological University
Praxis Medical Training Facility
Highlands College
Montana BioScience Alliance
Montana Institutes for Science and Technology (MIST)
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HELENA
Shodair Medical Genetics Center for Genomic Medical Technology
Overview
Shodair Genetics is requesting funding to create a hub for genomics technology development based on
the campus of Shodair Children’s Hospital. The goals of this project are to 1) augment existing
capabilities to bring high–throughput, genome–level sequencing technology to Montana, 2) support
statewide bioscience research and development growth by providing affordable access to state–of–the–
art genomics technology, and 3) to provide space for startup companies focused on genomic technology
and bioinformatics on our campus in Helena.
Background
High throughput sequencing is a powerful tool for obtaining information about nucleic acids, the
building blocks of all living organisms. This and related technologies also continue to be crucial to our
understanding of and response to the COVID–19 pandemic. The ability to initiate and bring testing to
the necessary scale for a new pandemic is limited to laboratories with equipment and clinical expertise
in genetic and genomic technologies. Additionally, our ability to adapt to new strains of a virus is only as
good as our availability to identify the variants circulating in the population in real time and at large
scale. Genomic sequencing not only addresses these issues, but it also has the potential to allow for
accurate detection of multiple infectious agents from a single sample. For example, this kind of testing
could not only result in the rapid diagnosis of COVID–19, influenza, or other common respiratory viruses
from one specimen, but also provide the exact strain of the virus or bacteria responsible. Beyond viral
detection and strain identification, we know that a patient’s genetic makeup can now determine how
effective certain medication will be in the treatment of many diseases including COVID–19, cancer,
behavioral health disorders, and more. This field is referred to as pharmacogenomics.
Shodair Children’s Hospital Department of Medical Genetics
Shodair’s Department of Medical Genetics is a nationally recognized program serving the state of
Montana since the 1970’s. In addition to providing clinical genetics services to patients throughout
Montana, we operate the only CLIA–certified medical genetics laboratory in Montana. The laboratory is
equipped to provide genetic testing that is considered state–of–the–art for the diagnosis of the vast
majority of human genetic conditions. This type of genetics program is unique for a rural state like
Montana, as most genetics programs are part of large hospital systems or academic centers while
genetic testing laboratories are generally either part of large reference lab systems or based in urban
centers. Until recently, our laboratory’s focus has been on the diagnosis of genetic conditions.
However, during the COVID–19 pandemic we recognized a need for increased local testing capacity in
order to prevent or limit outbreaks in our own hospital population. Because of our existing lab
capabilities, we were able to identify a testing strategy that was minimally impacted by international
testing supply shortages and very quickly establish a program that we also expanded to Carroll College,
allowing same–day test results for their faculty, staff, and students. Our lab has also signed a letter of
support and is prepared to provide sequencing if requested for a grant recently awarded to the
University of Montana to sequence positive COVID–19 samples for variant detection.
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Goals
The individual aspects of this project all contribute to a common goal: to bring high–capacity genomic
technology to Montana. This has many applications, including improved diagnosis of human genetic
conditions, the ability to locally contribute to the response to this and future pandemics, and to attract
business development in the genomics and bioinformatics fields.
Goal 1: Improve existing sequencing capability at Shodair
Shodair currently has the most advanced sequencing technology in Montana outside of the National
Institutes of Health Rocky Mountain Labs in Hamilton, whose instruments are not accessible to
independent diagnostics or research organizations. We currently can sequence everything from small
pieces of DNA or RNA up to the coding regions of all 20,000 human genes, which is the standard–of–care
for genetic disease diagnosis. The future of genetic diagnosis, however, is whole–genome sequencing,
which is analysis of all of a person’s DNA in a single test. This will require a more advanced sequencing
instrument, additional supporting instruments to allow for automation of sample preparation, and
computing support for data analysis.
Goal 2: Support statewide bioscience research and development growth by providing affordable access
to state–of–the–art genomics technology
Currently, we use our laboratory capabilities only for clinical genetics testing. However, our current
instruments and the requested improvements have the capacity to be used more often than our current
needs. We would like to offer genomic services to organizations throughout Montana at a cost that
enables them to do more with their budgets. Being a partner in local bioscience research and
development contributes to all aspects of our mission: To Heal, Help, and Inspire Hope.
Goal 3: Provide space for startup companies focused on genomic technology and bioinformatics on our
campus in Helena
The bioscience development industry is one of the most influential economic drivers in the world,
accounting for over 1.5 million jobs and billions of dollars in revenue cycle. Montana is in an ideal
position to be a rural leader in small bioscience business development, but many startup companies
cannot afford the space and access to instrumentation required outside of large urban centers. Shodair
is currently in the planning stages for a replacement building for our outpatient services including
genetics and the laboratory. This would be an ideal time to create space for several small to medium
bioscience or computing startups on our campus with brand–new office and laboratory space and access
to our technologies and data sets. This construction is set to begin late in 2021 with completion in fall of
2022.
Requested funding
In order to accomplish the stated goals, we seek funding to:
1) Purchase the gold–standard sequencing instrument capable of 24 whole–human–genome
analyses per run, as well as instrumentation to support automation and supplementary
processes ($1,800,000 total).
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2) Finance the construction of 2 to 3 small to medium incubator spaces including office and
dedicated laboratory space totaling approximately 1200–1500 square feet for startup companies
in genomics or bioinformatics. This would be included as part of an existing planned construction
project on our campus ($1,200,000).
Total requested funding: $3,000,000
Project Support:
Montana BioScience Alliance
Carroll College
LS Skaggs Institute for Health Innovation at University of Montana
Montana Institutes for Science and Technology (MIST)
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MISSOULA
Critical Bio–Laboratory/Facilities for Montana Companies and Researchers
Overview
This proposal is responsive to House Bill 632 of the Montana 67th Legislature which allows for funds
provided by the Department of Treasury through the American Rescue Plan Act to be used on public
health and human services programs. We seek funding to:
1) Establish a BSL3/ABSL3 laboratory/facility in association with the Montana Technology Enterprise
Center (MonTEC) and the University of Montana
2) Expand services for biotech companies to include bioanalytical testing of clinical and non–clinical
trial samples facilitating the conduct of clinical trials in association with Sapphire Bioservices (SBS)
3) Partner with companion providers to establish a network of companies which align development
services (nonclinical, manufacturing, clinical, regulatory) and facilitate the rapid evaluation of
novel treatments
4) Provide greatly expanded space for analysis and storage of vaccines and necessary biochemicals
working with SBS
Background
The prevention, testing and treatment for COVID–19 has placed enormous demands on the storage and
distribution networks across the world. From massive storage depots to local clinics, the need for safe,
secure, and temperature–controlled facilities became headline news. The infrastructure required to
store and distribute medications for human use involves significant investment in power, security,
surveillance, and compliance to FDA regulations. The SBS facility has the infrastructure and equipment
to store all the vaccines needed to vaccinate the entire state of Montana. Beyond the current vaccines,
the number of clinical research programs relating to the disease has increased exponentially. Sapphire
Bioservices is uniquely positioned to facilitate these programs. We have the talent and know how to
build out a company to provide supporting services for clinical trial research. Specifically, we aim to
expand our services to include analysis of drugs in biological matrices (blood, plasma, etc.). We would
collaborate with clinical trial sites and contract research organizations that participate in these trials.
COVID–19 has demonstrated a critical shortage of the specialized laboratory/facilities needed to develop
vaccines. In particular, a biosafety level 3 (BSL3) with an adjoining ABSL3 facility for animal challenge
studies is not available to researchers and biotech companies in MT. The University of Montana along
with our partner Inimmune in our business incubator (MonTEC) are leaders in vaccine and
immunotherapy development with over $120 M in NIH grants and contracts awarded to the partners for
these efforts since 2016. UM/Inimmune received a $2M supplement from NIH for development of
adjuvants for COVID–19 vaccine candidates to improve their efficacy which decreases the number of
doses needed for full effect. For this research UM was ranked as one of the top 10 universities in solving
the COVID–19 Pandemic (https://successfulstudent.org/best–universities–solving–coronavirus–pandemic/
). Other efforts which will be impacted by this request include a $35 M NIH Contract for Opioid Vaccine
Development (includes 2 clinical trials) of which >$20 M will be subcontracted outside of MT to support
pre–clinical work, clinical trials and testing of clinical samples. We also have received funding from
NIH/NIAID research and development of vaccines targeting COVID–19, TB, pandemic influenza, pertussis,
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Lyme disease, Pseudo–monas and other pathogens of critical importance with high disease burden. Most
of the vaccine discovery, formulation and initial testing will be performed at UM (in vitro and in vivo
potency, adjuvant/antigen compatibility, stability, etc.). All Biosafety Level 3 (BSL3) and ABSL3 testing
for these important vaccine research projects is being sub–contracted out of state due to the lack of
appropriate BSL3 facilities at UM/MonTEC. Renovation of existing space either at UM or creation of
additional space at MonTEC would keep the pre–clinical models and testing of clinical samples in
Montana and would keep significant amounts of federal funding and jobs in the state. Based upon
current research efforts approximately $6M in currently subcontracted services would be maintained in
Montana annually with an estimated 8–15 high–wage jobs and important education and training
opportunities for students at UM. By making this space available to other researchers and biotech
companies in Montana the impact will be significantly larger than these projections.
Sapphire Bioservices
SBS was founded in the fall of 2020 in Bozeman, Montana. Our facility is just 10 miles from the
Bozeman–Yellowstone International airport and is serviced twice daily by FEDEX and UPS. The city is
home to approximately 50,000 residents and is growing rapidly. Recently, we have hired a seasoned
researcher in Missoula to establish our bioanalytical testing laboratory. SBS is the only GMP storage and
distribution company in Montana and soon will be the only bioanalytical testing facility in Montana.
SBS has been able to recruit experienced industry professionals and is seeking to train and hire the next
generation of scientists to support the pharmaceutical industry. We intend to find this talent from both
Montana State University and University of Montana at Missoula. We aim to provide critical services
to facilitate development of new medicines not only for the COVID–19 virus but for medicines treating
cancer, neurological, cardiovascular, genetic disorders and the entire spectrum of medical research.
The Montana Technology Enterprise Center (MonTEC)
MonTEC is a high–growth, technology/biotech focused business incubator that is building a community
of high growth enterprises on the Clark Fork River in Missoula. It is closely affiliated with UM. MonTEC
plays an integral part in the entrepreneurship ecosystem of Western Montana by providing flexible lease
terms and tiered rental rates for a wide range of technology–driven companies. Its 32,000 square foot
facility offers start–ups first rate conferencing space, common work areas, break rooms, 1 GB internet
access, office/co–working spaces of various sizes, and microbiological and chemical laboratories.
MonTEC works closely with AccelerateMT, a component of UM that provides startup companies access
to technical assistance. Our vision and goals are directly responsive to Montana and federal guidelines
for utilization of COVID–19 stimulus funds: Researchers at UM and the companies participating in this
request have provided products that have increased the efficacy of COVID–19 vaccines and developed
new tests for the virus. Development of the BSL3/ABSL3 space and availability to biotech researchers
and companies across the state will decrease the development time of vaccine adjuvants and new tests
for COVID–19 and related corona viruses.
Inimmune
Inimmune was founded in early 2016 by Drs. Jay Evans, David Burkhart, Helene Bazin–Lee, Kendal Ryter,
and a team of 11 highly trained scientists. It is located in Missoula, MT, and works in close collaboration
with the Center for Translational Medicine at the University of Montana as well as several industry and
academia partners. Inimmune was formed from an experienced, close–knit team of biotech/pharmaceutical industry professionals. This team of chemists, immunologists, and formulation
scientists have been at the cutting edge of innovation for over 10 years as former GSK Vaccines
scientists and investigators. They now are working to create new immunotherapies directed at making
meaningful and lasting clinical impacts in the areas of allergy, autoimmunity, infectious disease, and
cancer. Through its technology, assets, expertise, and favorable IP positioning, Inimmune is poised to
stand up and become a leader in the fields of immunotherapy, infectious disease, and immuno–
oncology. Inimmune is headquartered in MonTEC in Missoula, Montana.
Goals
The overall goal is to provide cutting–edge clinical trial research support for Montana research and
biotech companies. Specifically, we intend to:
1) Expand services to include bioanalytical testing of clinical and non–clinical trial samples facilitating
the conduct of clinical trials
2) Partner with companion providers to establish a network of companies which align development
services (nonclinical, manufacturing, clinical, regulatory) and facilitate the rapid evaluation of
novel treatments
3) Expand space necessary for analysis and storage
4) Renovate existing space to provide BSL–2 and BSL–3 lab space along with an ABSL–2 and ABSL–3
vivarium
5) Provide for education and training in pharmaceutical development for Montana residents.
Further detailed objectives with anticipated outcomes
● Existing space with BSL–2 and BSL–3 lab space along with an ABSL–2 and ABSL–3 vivarium will be
renovated. Facility should be available for use within one–year from initial contract.
● Research proposals routed thru UM (and other campuses requiring BSL3/ABSL3 access) will
include support for the new facility rather than out–of–state facilities.
● Availability of facility to biotech companies in MT will be announced thru the Montana
Bioscience Alliance.
● Establishment of the bioanalytical testing facility in the first year of funding with key goals in this
phase to:
o Identify a suitable physical space and staffing requirements for the site
o Purchase, install and qualify the HPLC and Mass Spectrometer equipment on–site
o Develop SOPs and Systems to comply with FDA and GLP Regulations
o Establish all key partnerships with other CROs to grow clientele.
o The outcome being a fully GLP compliant testing facility for clinical and nonclinical
samples.
● Recruit up to 4 technical staff from local areas with the goal of running equipment and sample
preparation throughout the work week, receiving, and dispatching of samples, quality
assurance, and preparation of testing protocols for clients.
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● Expand our storage capacity particularly for ambient/room temperature and ultra–low
temperature storage. The outcome being the ability to store clients’ bioanalytical samples for
the several years that are required by regulatory authorities.
● Identify key strategic partnerships with other CROs in non–competitive areas such and
nonclinical and clinical research facilities, regulatory firms and logistics companies
● Launch internship programs at the high school, community college, 4–year sciences programs
with 4–5 internships annually.
Requested funding
This proposal seeks the following funding:
1) Equipment ($500,000). Purchase of LC mass spectrometry equipment, –80C storage freezers and
an inventory tracking system.
2) Facility and Infrastructure: ($2,400,000) Build–out existing shell to include power and venting
requirements, HVAC for controlled room temperature storage, office, and laboratory space,
internet and cloud services to support data archival and security monitoring. Renovate existing
lab space with BSL–2 and BSL–3 lab space along with an ABSL–2 and ABSL–3 vivarium.
3) Personnel and Education: ($500,000) Support to hire chemist/biologist, quality assurance,
logistics and business operations positions. Education to include GMP and GLP training. Support
for three years.
Total requested funding: $3,400,000
Summary
We request a total of $3,400,000 in ARPA funding to create the critical infrastructure that Montana is
lacking to be able to continue to address the COVID–19 pandemic and future such outbreak. These
facilities will be made available to MT researchers and biotech companies. The facilities include those
necessary for pre–clinical models and testing of clinical samples related to vaccine development, storage
and distribution of vaccines, and testing services to the clinical research community. We will also use
these facilities to train the next generation of biotech researchers.
Participants
This proposal is a collaborative effort between the following:
The Montana Technology Enterprise Center (MonTEC)
University of Montana
Inimmune
Sapphire Bioservices
Montana Institutes for Science and Technology (MIST)
Montana BioScience Alliance
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BOZEMAN
Laboratory Infrastructure Buildout, Bozeman
Overview
This proposal is responsive to House Bill 632 of the Montana 67th Legislature which allows for funds
provided by the Department of Treasury through the American Rescue Plan Act to be used on public
health and human services programs. We seek one–time funding to improve an existing laboratory
building to raise it to current OSHA standards, to better accommodate emerging companies and
workforce training in an environment that is connected to other communities in the State. We seek to:
1) work with the private building owners to update and/or retrofit 40,000 sq ft multi–tenant laboratory
space; 2) establish a telecommunications center capable of supporting programming to and from other
sites, including workforce training; 3) provide incubator and shared space for new companies and
programs in the bioscience sector, including medical photonics, drug development, ag bioscience,
clinical testing and other areas; 4) provide vouchers that support preclinical disease models as an
incentive to innovative small businesses to work in therapeutic areas negatively impacted by the COVID–
19 pandemic.
Background
Across the State of Montana, available space to lease to support technology–based companies is in
critical short supply. Successful and growing tech companies are typically funded by institutional venture
capital (VC) investors, such as Two Bear Capital in Whitefish and Next Frontier Capital in Bozeman, or
from investors that are typically based in Boston, NY, the Bay Area or other large metropolitan areas. In
2020, $362,333,133 in total capital flowed to MT Bioscience Cluster participants with $284,000,000
flowing to small businesses in Montana. Syndicated VC financing rounds typically total in the tens of
millions of dollars, but VC investors do not invest in “bricks and mortar” facility builds unless they
happen to be investing in the real estate sector. While Montana is currently ranked number one as the
best state to start a small business (by The Blueprint, February 2021), many entrepreneurs in the
bioscience and technical fields are not able to find suitable space in which to grow companies. Part of
the core mission is to fund, support and coordinate the improvement of laboratory and technology–
based infrastructure in the State of Montana in order to better foster the success of our strong
entrepreneurial culture and attract new businesses with high paying jobs to the State.
Southwest Montana (SW MT) has been the home to a number of successful bioscience companies. The
SW MT bioscience cluster centers around Montana State University (MSU), who’s annual research
funding totaled $167mm in the 2019–2020 academic year. MSU is classified as R1 in the Carnegie
Classification for “very high research activity,” making it one of only 131 universities nationwide in that
category and the only one in the five–state region of Montana, Idaho, Wyoming and North and South
Dakota. MSU’s 406 Labs Business Accelerator, a program at the Jake Jabs College of Business and
Entrepreneurship, provides education and mentorship for students and faculty who are launching
business startups, and the bioscience share of total academic R&D in Montana was 58%. The period
from 2019 to 2020 saw a creation of 31 Montana–based bioscience businesses, more than a 100%
increase over 2019, increasing the total number of bioscience businesses from 597 to 628 (Montana
Department of Labor, Quarterly Census of Employment and Wages). In addition to the bioscience sector,
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there is a robust and thriving photonics industry largely centered in SW Montana that is comprised of 45
companies employing over 800 people.
Despite the high level of entrepreneurial activity in SW Montana, the area is without a business
incubator to foster and mentor new companies. According to the International Business Innovation
Association (InBIA), there are 1,400 business incubators in the United States today. At their core,
business incubators provide modular ready–to–work space for young companies with flexible leasing
terms (for example, graduated lease rates as the companies grow, and short–term lease renewals to
accommodate emerging company’s financial situations). The best and most successful incubators and
accelerators across the country also provide networks of mentors, professional service providers,
training programs, workforce development opportunities, introductions to investors, seed funding,
guidance and coaching, and other assistance to improve the success rate of new companies. One of the
key objectives is to create a connected network across the State to help supply these types of support
services to new companies, but this will be more successful if appropriate space can be built or
remodeled to house these new companies and provide a venue for such support services to be
delivered. Incentives to collaborate with core facilities at Montana State University will also help small
companies extend their reach by using state–of–the art equipment and collaborating with experts in
their fields.
As the United States emerges from the global COVID–19 pandemic, it is evident that the economic and
societal damage inflicted extends well beyond infections and mortality that are the direct result of the
disease. AS an example, increased isolation, reduced access to treatment, and economic devastation
have led to an increase in mental health and substance use disorders across the country. Prior to the
pandemic, the US was already in the midst of an epidemic of opioid abuse and misuse that had been
fueled by over prescription of opioid pain medications (e.g. hydrocodone, oxycodone), the lack of
effective non–opioid alternatives, as well as an increasing supply of extremely potent, synthetic opioids
often laced into illicit street drugs such as heroin without the knowledge of the end–user. A growing
body of evidence now indicates that the opioid crisis accelerated during the COVID–19 pandemic. It is
now estimated that over 90,000 Americans died of overdoses during the 12 months ended September
2020, the highest number in any year on record. According to the Center for Disease Control and
Prevention, synthetic opioid fatalities rose an unprecedented 55%. This public health crisis is occurring
at the same time that many large pharmaceutical companies have withdrawn from neuroscience to
focus on other therapeutic areas such as oncology and rare diseases. An objective of our program is to
institute a voucher system that encourages companies to conduct research addressing these unmet
medical needs exacerbated by the COVID–19 pandemic.
The overall goal of this section of the proposal is to work with existing building owners to upgrade,
remodel and improve 40,000 sq ft of space to better accommodate start–up companies and small
laboratory–based projects and businesses. Current facilities are outdated or not equipped for laboratory
operations, and would need to be upgraded to comply with current best practices for workplace safety.
In addition, much of the building space was designed for a single tenant, rather than as a multi–tenant
facility. The existing spaces could be remodeled in a cost–effective manner to better support the
community and to facilitate spin–off companies and projects from Montana State University. By
investing in facilities with proximity to Montana State University, and providing appropriate incentives,
opportunities for small businesses to collaborate with the University will be enhanced.
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Goals
1) Work with an architect fluent in laboratory and incubator design to develop a plan to remodel
the facilities
2) Solicit bids for the project from at least three commercial contractors experienced in laboratory
facilities and/or incubator design, and contract the work to be performed
3) Establish an up–to–date telecommunications facility with seating for at least 50 people to support
programming that can be broadcasted to and from hubs in the other six communities in Montana
4) Institute a disease model voucher program to incentivize innovative small businesses associated
to direct their research efforts toward unmet medical needs exacerbated by the COVID–19
pandemic
Goal 1: Work with an architect fluent in laboratory and incubator design to develop a plan to remodel
the facility
Required improvements to the facility include updating air handling equipment, laboratory equipment
including autoclave, Glasswash, chemical fume hoods, biosafety cabinets, refrigerators and freezers,
variable office–lab modules to accommodate different sized companies, card–swipe security systems
designed for multi–tenant facilities, shared conference rooms and kitchen facilities, and other
improvements. These types of design improvements are typical in most urban environments, and there
are firms based in Montana who would be qualified to do the work.
Goal 2: Solicit bids for the project from at least three commercial contractors experienced in laboratory
facilities and/or incubator design and contract the work to be performed
Best practice is to solicit bids from multiple contractors with the requirement that contractors in turn
solicit at least three bids for each subcontract over $5,000. There are contractors based in Montana who
would be qualified to do the work.
Goal 3: Establish an up–to–date telecommunications facility with seating for at least 50 people to
support programming that can be broadcasted to and from hubs in the other six communities in
Montana
A key principle is to create an interconnected network across the State of Montana, which will require
telecommunication centers capable of broadcasting and receiving content throughout the network.
Content will include workforce development and training, collaboration with STEM education systems,
seminars from professional service providers (patent attorneys, accountants, company formation
attorneys, human resources, etc. Throughout 2020, the Montana Bioscience Cluster Initiative partner
activities, trainings and events drew in over 1000 participants including small businesses, faculty
researchers, students, and entrepreneurs engaged in bioscience in Montana. They estimated 1200
unique participants of which 60 were small businesses. A main seminar room exists in the facility but
needs to be updated to accommodate an audience of at least 50 people. Also included will be to wire
shared conference rooms with monitors and video equipment capable of supporting Zoom meetings for
building tenants. There are contractors based in Montana capable of doing the work.
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Goal 4: Institute a disease model voucher program to incentivize Montana–based companies to direct
their research and therapeutic development efforts toward unmet medical needs exacerbated by the
COVID–19 pandemic
Small businesses will be eligible to apply for vouchers to support disease models in the following areas
that are directly related to or have been exacerbated by the COVID–19 pandemic: antiviral, addiction,
mental health, non–opioid pain, substance abuse disorder, diagnostic testing, therapeutic development
and vaccine research. It is estimated that a total of 10–15 vouchers will be awarded for a total
consideration of $750k.
Estimated time to completion is 12–24 months.
Requested funding
Estimated cost of the improvements described above is $2,300,000 ($57.5/sq ft)
Estimated cost of the COVID–19 related R&D voucher incentive program is $600,000 (10–12 vouchers,
$50,000 – $75,000 each)
Total requested funding: $2,900,000
Summary
The project described here meets a critical need in the Bozeman community to provide affordable space
to emerging companies and support through an integrated network across the state.
Participants
The Montana BioScience Alliance
Montana State University’s Innovation Campus
Montana Institutes for Science and Technology (MIST)
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Statewide Biotechnology Impact, Workforce Landscape,
Trends and Potential
America’s high–tech and bioscience industries have flourished together, in a synergistic and supportive
culture of innovation that has attracted intellectual capital and investment while also creating public–private
partnerships that have resulted in immeasurable contributions to the communities in which they thrived.
These industries have spawned some of our greatest achievements and contributions to the world, including
medical breakthroughs that have improved and saved countless lives during the COVID–19 pandemic,
advancements in agricultural science resulting in more efficient, environmentally friendly, safer production
methods, methods to enhance cybersecurity and advancements in technology that have revolutionized the
way we access and utilize information to conduct our daily lives. The pandemic has also revealed potential
cracks in our healthcare systems and potential strain in our economic development across the United States.
The State of Montana is uniquely positioned to respond to the economic uncertainties presented by the
current COVID–19 pandemic, and Montana technologies companies are uniquely positioned to provide
interventions and solutions for current COVID–19 needs and as future pandemics or public health challenges
emerge.
Bioscience and technology industries offer tremendous opportunities for professionals with a wide array
of talents and education levels, providing high paying jobs and fulfilling careers for Montana.
Historically, talent, investors, and companies initially clustered in coastal areas of the United States with
world–class, often private, academic institutions in large metropolitan centers
such as Boston/Cambridge and the San Francisco Bay area. But today is a
different story: as the costs and other challenges of situating companies in
these traditional technology hubs increase and as information can be
propagated and dispersed equally throughout much of the United States,
entrepreneurs and company founders have increasingly looked for more
favorable states and cities to grow their new enterprises. Montana is well on its
way to being one of the preferred states for incubating and launching key
bioscience and technology companies and attracting workforce with above
average wages. This is detailed in a report provided by the Coalition of State
BioScience Institutes, 2021 Life Sciences Workforce Trends Report: Taking
Stock of Industry Talent Dynamics Following a Disruptive Year, showing strong
data supporting the potential for high paying bioscience and technology jobs for
Montana.
Additionally, the Montana Department of Labor has provided an excellent report, Montana Information
Wage Rates by Occupation 2020, showing specific job titles and wage information that this sector
would be creating. The details related to bioscience and technology are provided separately.
(Appendix A)
Through the work of the Montana BioScience Alliance and the Montana BioScience Cluster Initiative, the
Montana University System, and private and public partners, the state is already seeing exponential
growth and impact. In their recent 2020 Impact Statement (Appendix B), the Montana BioScience
Alliance reinforced that the bioscience and tech industry sector holds bright promise for high–paying
jobs, sustainable businesses and a brain gain for the state.
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Current Montana Bio Companies and Successes
During the COVID–19 pandemic, a number of Montana companies stepped up to fill a gap not being
served by State and Federal public health organizations:
● Archer Biologics was formed in Bozeman to perform wastewater testing to assess
community incidence of COVID via viral detection by PCR testing;
● Inimmune in Missoula expanded to test ways to enhance performance of vaccines using
their proprietary adjuvants;
Montana High Tech Business Alliance – February 10, 2021
For Missoula’s Inimmune, a $22 M Series A Round with Two Bear Capital is the latest
record set.)
● FYR Diagnostics in Missoula and Montana State University in Bozeman built clinical testing
laboratories to process human samples to detect viral infections;
● Rocky Mountain Biologicals in Missoula created Viral Transport Medium for coronavirus
testing kits;
● Bozeman’s Golden Helix developed bioinformatics software to automate the diagnostic
process;
● Missoula–based PatientOne worked with the county health department to implement
software that automatically updates patient symptoms and temperature information to the
government database;
● Whitefish–based Truwl built an online platform that allows researchers to share genomic
data analysis methods.
● VIRIS Detection Systems was formed in Bozeman to develop new diagnostic tools, including
for SARS–CoV–2 (the cause of COVID19), using a platform that can be quickly reprogramed
for detection of other viruses (e.g., Ebola, Influenza, or HIV), genes associated with non–
infectious diseases (e.g., oncogenes) or disease important to the agricultural industry.
Without these efforts from private companies, the response to the COVID–19 pandemic in MT would
have been greatly diminished. This highlights two critical reasons for the State to invest in infrastructure
to support bioscience and other technologies. First, expansion of the industry offers greater diversity in
Montana’s economy, providing high paying jobs that are resilient to current and future pandemics.
More importantly, though, the cases illustrated above show us that much of the work to respond to the
pandemic in MT occurred locally within the State. An investment now in infrastructure for bioscience
and technology companies will allow this type of companies to continue to provide technologies and
services for Montanans, expand our ability to export products and services out of State, and quickly
respond to the emergence of strain variants or future pandemics.
Given the availability and proposed investments in high quality, cost–effective internet–based infrastructure
and communication tools, more people than ever before can work remotely, including in rural Montana,
resulting in more geographic diversity in company formation and capital investment. Many of Montana’s
neighboring states have recognized these trends and for the last several years have aggressively pursued
entrepreneurs and existing businesses through tax incentives, modern infrastructure investments, and other
quality of life benefits
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Conclusion
Throughout the most recent legislative session, conversations were held with select legislators,
Montana Department of Commerce, Montana Governor Gianforte, and stakeholders in the seven
largest communities in Montana. It was determined during these discussions that a proposal should be
developed to be submitted to the commission for Economic Stabilization and Workforce Development
Commission as well as the Health and Human Services Commission to solicit funding and initiate
projects in each community.
It is expected this proposal will leverage private funding and resources in conjunction with State and
Federal funding. For example, there are existing properties that could be repurposed as modular, multi–
tenant facilities suitable for technology companies once renovation funds are identified. Development
partnerships are also anticipated where the private sector could construct shell space and have modular
laboratories built using funding from the ARPA, or even where shell space is available and under–utilized.
These types of public–private projects are the best way for the State of Montana to gain the greatest
impact from ARPA funds that have been allocated to the State.
The infrastructure programs described above require a one–time investment from the State to leverage the
private resources already in place and support entrepreneurial growth in this exciting industry sector. With
an investment by the state, the communities will be able to leverage additional funding from the US EDA, US
Congress, and private investors to continue to enhance the job growth climate in Montana.
For additional information or to request a presentation to the commission, please contact, Melanie Schwarz,
at [email protected] or 406–670–9364.
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