Hogan Lovells Team Represents The Jackson Laboratory in Public-Private Partnership Transaction Creating $1.2 Billion Genomic Lab
13 January 2012
MIAMI, 13 January 2012 – A multi-office, multi-disciplinary team of Hogan Lovells lawyers represented firm client, The Jackson Laboratory (“JAX”), an internationally-renowned independent medical research institute, in a transaction to create a new $1.2 billion genomics research laboratory in the State of Connecticut. The transaction involves agreements between the State of Connecticut, The University of Connecticut, and The Jackson Laboratory to develop a 250,000 square-foot genome research facility that will focus on personalized medicine – treatments that are tailored to an individual’s specific set of genes.
The uniquely structured public-private partnership transaction meets the objectives of all three parties involved: creating new jobs in the State of Connecticut; establishing a new medical research facility on the University of Connecticut campus that will attract top-tier scientists; and furthering advances in human genome technology and personalized medicine through research to be undertaken by JAX. The construction and operation of the new lab will create more than 6,800 permanent jobs. Some of the highlights of the agreements include:
• A commitment from JAX to create at least 300 positions within 10 years, 90 of which will be senior scientists.
• A commitment by the State of Connecticut to provide over $290 million in state funding.
• A commitment by the University of Connecticut to provide land for construction of a state-of-the-art facility, and to convey the facility to JAX when 600 new positions have been filled.
• JAX and the state economic development arm, Connecticut Innovations, have entered into a unique intellectual property revenue-sharing agreement.
• A “forgivable loan” structure whereby loans that achieve certain benchmarks will be forgiven.
The transaction required the negotiation of over 20 agreements and ancillary documents, involving funding, collaborative research, licensing and sharing of intellectual property, environmental, security, temporary and permanent facility construction, and other agreements, none of which were standard for this type of transaction.
Miami partners Mark Sterling and Carol Licko led a team that included Northern Virginia partner Philip Porter and Miami associate Gaston Fernandez. The team closed the transaction in record time, taking just eight weeks from the Governor’s signing of enabling legislation to a closing, which took place immediately following the unanimous final approval by the boards of Connecticut Innovations, The University of Connecticut, and The Jackson Laboratory.