Eli Lilly and Co (NYSE:LLY) is looking to Cambridge to jump start its innovation engine. The company will be building a new R&D facility on the Charles River becoming the latest company to make the move.
The new facility is named Lilly Cambridge Innovation Center and will start by the end of the year Kendall Square, which is also home to many other renowned biotechs. Lilly will be hiring about thirty scientist to staff the center and will pay special attention to drug delivery and devices. Lilly believes that the future of healthcare likes in the interplay between new-fangled hardware and traditional therapeutics and the company’s move to Cambridge is part of its plan to take a leading position pharma.
According to Lilly’s CEO John Lechleiter, the facility at Cambridge will be a boon to the company’s business development. It will give Lilly a checkpoint to complement its existing hubs in Indianapolis and San Diego. Lechleiter further added that the move to Cambridge is an important strategic move that will help the company achieve its goals. The facility at Cambridge will also provide the company with a higher concentration of high calibre academic institutions, tech companies and cutting-edge life science companies.
Other Pharmaceutical companies have also made the move to the Kendall Square. Over the last few years, Pfizer Inc.( NYSE:PFE) and Novartis AG (ADR) (NYSE:NVS) have started moving away from the idea of having far-flung R&D facilities. The big pharmaceutical companies are making a rush to Cambridge to get their own facilities.
The rapid increase in demand for lab space in Cambridge is driving the rent prices through the roof. The high costs may not be a big problem for large companies like Pfizer and Lilly, however, they may be prohibitive for small start-ups as the cost can be as high as $80 per square foot.
