Animal Health in Kansas by Kansas Department of Commerce

Department of Commerce

TREAT IT IN THE

Animal Health in Kansas

Whether it be cute and cuddly or rowdy and rough, Kansas is the leader for global animal health and nutrition products. The Animal Health Corridor, anchored in Kansas, has the largest concentration of animal health companies in the world. The corridor accounts for 56 percent of the total worldwide animal health, diagnostics and pet food sales.

motivated Kansas workforce. Diversity, inclusion and sustainability are not just words, but part of the fabric of the animal health industry in Kansas, and we are committed to growing stronger every day.

A robust ecosystem comprised of innovation, commercialization, contract research and manufacturing organizations, facility design and engineering, marketing, distribution and logistics all contribute to a skilled and

A company's ability to thrive and grow in Kansas is a driving principal of our mission. When you make Kansas your home you too can be a part of the foremost global animal health and nutrition network.

KANSAS CURRENTLY EMPLOYS MORE THAN

14,000 IN ANIMAL HEALTH AND RELATED INDUSTRIES 1,2 Ceva Animal Health - Lenexa, KS

2 � Kansas Department of Labor 2019, � Kansas Wage Survey

WISERTrade 2019

University of Kansas Bio Research - Lawrence, KS

McCarty Dairy - Rexford, KS

Siemens Gamesa Renewable Energy Plant - Hutchinson, KS

Veterinary Health Center at Kansas State University - Manhattan, KS

KANSAS ANIMAL HEALTH CONTRIBUTES MORE THAN

$2.2 B TO THE STATE’S TOTAL GDP 1,2

KANSAS RANKS

3rd IN EXPORTS OF VETERINARY VACCINES.3

Distance to Market from Kansas

Kansas is served by a comprehensive rail network comprised of 4,257 miles (6,851 km) of total track, which is the sixth largest network in the nation1.

Whether by highway, rail or air, Kansas offers excellent transportation and marketing advantages for your business. Centrally located and focused on building and maintaining an outstanding multimodal infrastructure, it is easier and less expensive to ship to and from Kansas.

Kansas’ central location and extensive network provides Kansas-based companies a safe and reliable route to major interstate highways that can connect them to 85 percent of the nation’s population in less than a two-day drive.

AVERAGE TIME FOR A GROUND PACKAGE TO REACH DESTINATION

KM I | 80 5

500 M

| 1,2 07

7 5 0 MI

1,200 MI | 1,931 KM

K A N S A S

OVER THE ROAD

LOGISTICS / SHIPPING

RAIL TRANSPORT

AIR TRANSPORT

4 Association of American Railroads, ˜ Kansas Department of Commerce

CONCENTRATION OF ANIMAL HEALTH-RELATED COMPANIES IN KANSAS

Manhattan

Topeka

Kansas City

Hays

Garden City Dodge City

Wichita

Pittsburg

*Represents hot spot locations of Kansas animal health and related companies located in across the state. Not all locations, industries or companies shown. Source: Kansas Department of Commerce, Kansas Manufacturing Solutions and Dun & Bradstreet, 2021

20 Companies

120 Companies

280 Companies

500 Companies

Interstate System

Kansas is home to more than 1,400 public and private within the animal health and nutrition sectors that focus on research and production of therapeutics, diagnostics, biologics, and nutrition and feed products2. Kansas is proud to be the home to a multitude of brands like:

Notable Kansas Animal Health Companies Company

Location

Employment

Description

Simmons Pet Food

Emporia

1,164

Wet and dry pet food/treats manufacturer

Hill’s Pet Nutrition, Inc.*

Topeka / Emporia

1,031

Pet food manufacturer

J.M. Smucker

Lawrence / Topeka/ Frontenac

700

Pet food manufacturer

Ceva Animal Health, LLC/Ceva Biomune*

Lenexa

500

Veterinary vaccines and bacterins manufacturer

Elanco Kansas, LLC

Shawnee / Overland Park /Lenexa

300

Veterinary pharmaceutical manufacturer

Merck Animal Health

DeSoto

240

Vaccine production and research

Sparhawk Labs*

Lenexa

100

Generic animal health product manufacturer

Shor-Line*

Kansas City, Kansas

180

Manufacturer of animal care products and animal control equipment

PBI-Gordon Corp.*

Shawnee

110

Animal and pet products

Kindred Biosciences

Elwood

Veterinary biotech developer

MWI Veterinary Supply

Edwardsville

Animal health product supplier

Animal Health International

Garden City / Dodge City / St. John / Salina

Animal health product distributor

J-Six Enterprises* / Kansas City Treats, LLC

Seneca / Kansas City, Kansas

Pet treat manufacturer

Dechra Veterinary Products*

Overland Park

Veterinary pharmaceutical manufacturer

Centaur Animal Health*

Olathe

Therapeutic diagnostics custom manufacturer

MS Biotec

Wamego

Animal nutrition/feed additive manufacturer

IdentiGEN North America, Inc.

Lawrence

DNA-based solutions for agri-food industry

ZuPreem

Shawnee

Exotic animal nutrient producer

Antech Diagnostics, Inc.

Overland Park

Animal health reference laboratory and imaging

CritiTech, Inc.

Lawrence

Multi-service pharmaceutical contract development manufacturer

Parnell, Inc.

Overland Park

Veterinary pharmaceutical manufacturer

Argenta Research, LLC

Lawrence

Contract development and animal health manufacturer

Ortho-Equine

Overland Park

Equine supplement manufacturer

*Indicates headquarters or regional headquarters presence in Kansas. Source: Kansas Department of Commerce, Kansas Department of Labor, Kansas Manufacturing Solutions

Educational Assets and Talent Resources The state’s education system is one of the best in the nation and a powerful factor in the success of many businesses. Kansas ranks #13 in higher education and #15 in Pre-K-12 education in the United States. 1 A progressive business climate, coupled with a topnotch education system, has resulted in an adept, wellskilled and highly trainable and motivated workforce prepared to step into the agriculture and animal health sectors. K˜12 EDUCATION AND CAREER PIPELINE PROGRAMS Kansas offers a variety of innovative and specialized programs to prepare K-12 students for entry into secondary education or the workforce. While in high school, some students opt to be fully immersed in a professional culture, using industry standard tools and mentoring by actual employers while receiving high school and college credit. These innovative programs allow students to build upon their interests and learn specific knowledge and skills while allowing businesses, community and public education to partner

Kansas offers a variety of specialized training programs centered around the animal health industry.

to produce personalized learning experiences that educate the workforce of tomorrow, especially in high-skill, high-demand jobs. Programs related to Animal Health and Pet Nutrition are found statewide, such as: The International Baccalaureate (IB) Program offered at Shawnee Mission School District, Hutchinson High School, Wichita High School and Topeka Center for Advanced Learning and Careers, and Blue Valley Center for Advanced Professional Services, among others. CAREER AND TECHNICAL EDUCATION ((CTE) in Kansas addresses the needs of business and industry through development of the foundational knowledge and skills aligned with the Kansas workforce. Kansas has 16 career clusters for students to choose from, with 35 Career Cluster Pathways. In 2019, students in Kansas were enrolled in 140,000 CTE courses, and 23,000 students are engaged in Kansas Career and Technical School Organizations. Kansas students earning three or more CTE credits have a 99 percent graduation rate..3

1 US News 2019, 2 U.S. Census Bureau, 3 Kansas Dept. of Education

Dynamic programming relevant to careers in the animal health industry includes:

+ Animal Health

Digital Communications and Multimedia

Animal Science and Industry

E-Communications

Bioscience/Biotech Bioengineering

Business Finance

Business Technology Media

Computer Science

Engineering

Innovation and Entrepreneurship

Manufacturing

Marketing and Marketing Management

KANSAS ANCHORS THE ANIMAL HEALTH CORRIDOR, THE SINGLE LARGEST CONCENTRATION OF ANIMAL HEALTH ASSETS IN THE WORLD. THE REGION IS HOME TO MORE THAN 300 ANIMAL HEALTH COMPANIES.

Ceva Animal Health - Lenexa, KS

K-State College of Vet Med - Manhattan, KS

Educational Assets and Talent Resources There are a variety of post-secondary programs in the state to grow a workforce ready for the animal health industry and related sectors.

ONE HEALTH is the interdisciplinary collaboration in all aspects of health care for humans, animals, and the environment, One Health flourishes in Kansas. The commitment to collectively solving these universal challenges puts Kansas at the forefront of innovation in the global marketplace, and we are getting stronger. With the opening of the nation’s only BioSecurity Level-4 laboratory for the study of emerging animal diseases, National Bio and Agro-Defense Facility (NBAF) will add critical research capability and scientific leadership to further nourish the One Health ecosystem in Kansas. KANSAS UNIVERSITIES AND COLLEGES Kansas is home to seven public universities, 20 private colleges and universities, seven technical colleges and 19 community colleges. Leading our animal health education and research are our two Research 1 (R1) universities. In addition to our world-renowned veterinary college, there also are three community colleges in Kansas that offer CVTEA-accredited programs for veterinary technicians, one of which offers both online and on-campus programs to help address the needs of rural Kansas.

KANSAS STATE UNIVERSITY has an enrollment of more than 24,000 students and is on the path to becoming a Top 50 public research university by 2025. Innovative researchers are leading the charge in improving the global food system, bioscience technology and animal health using interdisciplinary approaches that capitalize on existing resources bringing in more than $170 million annually in research. A recognized leader in animal health and food safety and security, K-State is drawing national research centers to Manhattan. The U.S. Department of Agriculture has established the Center of Excellence in Emerging and Zoonotic Animal Diseases and the Arthropod-Borne Animal Disease Research Unit in Manhattan and also is working with the U.S. Department of Homeland Security to bring online the National Bio and Agro-Defense Facility. In addition to the main campus in Manhattan, K-State has locations in Olathe and Salina. UNIVERSITY OF KANSAS is a premier research institution built on a tradition of strong academics. Both the National Science Foundation and the Carnegie Foundation classify KU as a top research university. KU houses three business incubator

8 � WISERTrade 2019

KU Bioscience Laboratory - Lawrence, KS

The Animal Health Corridor accounts for 56 percent of total worldwide animal health, diagnostics and pet food sales.

Southwest Dairy Farmers- Hutchinson, KS

Kansas ranks second in the nation in exports of pet food.1

College of Veterinary Medicine - Manhattan, KS

facilities located in Lawrence and at the KU Medical Center. KU demonstrates its research and development strengths by conducting nearly $250 million annually in research activity. Proudly, KU boasts 45 active start-ups from KU technology, 30 of which are based in Kansas. With an enrollment of more than 31,000 students, KU offers over 400 areas of academic studies. Ranking among the nation’s top 50 public universities, KU is one of just 36 public schools in the prestigious Association of American Universities. The University of Kansas also has campuses in Overland Park, Salina and Wichita and educational and research centers in Garden City, Hays, Parsons, Pittsburg, Topeka and Yoder. COLBY COMMUNITY COLLEGE offers one of the oldest Veterinary Nursing Programs in the nation, established in 1969 and fully accredited by the American Veterinary Medical Association (AVMA) since 1974, Colby Community College offers students training in many advanced technologies in veterinary medicine, such as direct digital radiology, class IV laser therapy and color Doppler ultrasound. INDEPENDENCE COMMUNITY COLLEGE offers an Associate of Applied Science Degree at Independence Community College gives students classroom instruction, handson field experience and professional internships in animal care facilities. The Veterinary Nursing Program is fully accredited by the AVMA-CVTEA.

WSU TECH offers a Veterinary Nursing Program at WSU Tech prepares students for a career as a veterinary nurse. The curriculum focuses on employment in various areas of animal healthcare including veterinary hospitals and research and diagnostic laboratories. It includes instruction in animal nursing care, animal health and nutrition, animal handling, clinical pathology, radiology, anesthesiology, dental prophylaxis, surgical assisting, clinical laboratory procedures, office administration skills, patient and owner management and applicable standards and regulations.

At the Hill’s Pet Nutrition Center in Topeka, approximately 900 dogs and cats help ensure that Hill’s food provides an ideal balance of nutrition and satisfaction.

That’s a lot of whiskers and wags!

PET FOODS PRODUCED IN KANSAS INCLUDE: KIBBLES 'N BITS® RACHAEL RAY® NUTRISH® MILK-BONE®, NATURE'S RECIPE®, CANINE CARRY OUTS®, 9LIVES®, PUP-PERONI®, MEOW MIX®, NATURAL BALANCE®, SNAUSAGES®

NBAF - Manhattan, KS

Regional Ecosystem for Growth Kansas is home to an expansive ecosystem of innovators and educational institutions that contribute to our framework of animal health companies.

THE ANIMAL HEALTH CORRIDOR anchored by Manhattan, Kansas, and Columbia, Missouri, the Animal Health Corridor is home to more than 300 animal health companies, representing the largest concentration in the world. The Corridor hosts the Animal Health Investment Forum, which provides a unique opportunity for venture capital funds, investment firms and animal health companies to engage with emerging companies showcasing the newest technologies. BIOKANSAS is a not-for-profit organization serves the life science interests in Kansas. Across the human, plant and animal health industries, BioKansas is focused on enhancing the business and research climate and working with leaders across the state to attract and retain talent, companies, and grow funding. BIONEXUS KC leads a vision to transform the Kansas City region into a nationally recognized center of excellence in life science research, development and commercialization. BIOSCIENCE & TECHNOLOGY BUSINESS CENTER (BTBC) located in Lawrence, BTBC provides incubator space, startup support and access to a technological ecosystem for commercializing innovations. BTBC is the University of Kansas’ technology commercialization partner and is located on the West Campus of KU, with expansion facilities in Kansas City and west Lawrence. 10

AGRICULTURAL BUSINESS COUNCIL (KANSAS CITY AND WICHITA) is an association advocates growth and awareness of the food, fiber, agri-science and related industries in both the Kansas City region and South Central Kansas. The goal is to bring awareness and better understanding to a pivotal industry in the Midwest through collaboration of regional agricultural organizations, agribusinesses and other key leaders. KC TECH COUNCIL focuses its work on three strategic pillars: access to the tech industry and its leaders, policy advocacy on behalf of the industry at every level of government, and workforce development initiatives to grow tomorrow’s tech talent, and attract and foster today’s industry leaders. NATIONAL BIO AND AGRO˜DEFENSE FACILITY (NBAF) located in Manhattan, Kansas, NBAF is the first maximum biocontainment (BSL-4) space to study high-consequence zoonotic diseases affecting food animals. The laboratory facility is capable of housing large livestock and features a Biologics Development Module (BDM) for the pilot scale development of vaccines and other countermeasures. THE BIOSECURITY RESEARCH INSTITUTE (BRI) on the Kansas State University campus in Manhattan, BRI is a BSL-3 biocontainment research and education facility that provides research, education, and training space to support animal disease scientists, food safety researchers, plant pathologists,

ZuPreem develops and produces specialty foods for zoo animals. ZuPreem’s Primate Diet is formulated to be fed as the basic diet for primates.

Kansas State University Veterinary Health Center- Manhattan, KS

In June 2019, Simmons Pet Food, Inc., a leading supplier of custom and private label pet food solutions in the U.S. and Canada, opened its new $60 million Flexible Packaging Facility in Emporia.

ZuPreem- Shawnee, KS

Bioscience and Technology Business Center - Lawrence, KS

entomologists and those studying the basic molecular biology of high-consequence pathogens. CONTRACT RESEARCH ORGANIZATIONS (CRO) have become an increasingly significant component in the development of new pharmaceuticals, diagnostics and medical devices in the human and animal health industry. The Kansas City metro area is home to more than 90 CROs that serve U.S. and international companies, generating regional revenue in excess of $1 billion per year. DFA COLAB ACCELERATOR is a 90-day immersive program to provide training, growth opportunities and mentorship, startups throughout the DFA Colab Accelerator have numerous opportunities to meet with a variety of DFA executives and other relevant investors and industry leaders. Participants also receive guidance and advice on business development, product development, marketing and other key aspects of startup growth. AG TECH STARTUP ACCELERATOR PROGRAM is a Silicon Valley-based ‘’Plug and Play’’ chose Topeka for its Animal Health and Ag Tech Startup Accelerator. Plug and Play works collaboratively with the industry leaders in Kansas City to identify key industry challenges in animal health and ag-tech. This program includes the development of a large-scale animal health innovation campus to house the program, as well as research and development labs and office spaces for startups and corporate innovation partners. TECHSTARS KANSAS CITY is of Techstars’ 33 accelerator locations in the U.S. and internationally, it actively cultivates startup culture at the local level, growing the community of entrepreneurs through life events, mentorship and education.

TECHACCEL, LLC is a development company focused on advancing innovation in the agriculture, animal health and food technology sectors, TechAccel works with partner companies to collaboratively advance and de-risk technologies while reducing time to market. TechAccel partners with global industry leaders, global industry strategics and relevant venture capital firms to assist innovative industry startups. WHITEBOARD2BOARDROOM (W2B) provides a commercialization process for next-gen, homegrown technologies, and with 20-plus corporate partners and research institutions across the bistate region, W2B has identified and curated more than 200 projects that are ready for entrepreneurial leadership and licensing. Innovation ranges from agricultural technology to human health innovations of next-gen technologies ready to be developed. NETWORK KANSAS has cultivating an entrepreneurial environment throughout Kansas and overseeing a robust and collaborative partner network, Network Kansas encourages connectivity amongst its more than 500 partners. NetWork Kansas also provides a variety of matching loan programs designed to support private capital for startups and expanding businesses. NetWork Kansas funding does not replace private capital. In fact, the programs are designed to support private capital through matching funds that provide much needed capital into startups and expanding businesses. ENTREPRENEURSHIP (E˜) COMMUNITIES is NetWork Kansas’ flagship partnership program to provide key resources to targeted entrepreneurs, E-Communities are empowered and led at the local level. E-Communities work every day to grow a sustainable entrepreneurial environment that supports startups and expansions of local businesses. Through E-Communities, entrepreneurs gain access to board-certified programs and receive consulting from local and national representatives. 11

Industry Resources Provided by Centers of Excellence Research staff at our universities work together with faculty, students and industry researchers to acquire data, train users to operate the instruments themselves, and help plan experiments and interpret the data. The resources our university partners provide to the animal health sector continue to expand with the rapid growth of the animal health corridor in Kansas. With more national and international companies joining our business communities, there is no better place to treat it than Kansas.

CORE FACILITIES • Advanced Computing Facility • Biological Irradiation • Center for Research Computing • Chemical Methodologies and Library Development • Computational Chemical Biology • Experimental and Preclinical Imaging • Immunology • Infectious Disease Assay Development 12

• KU Nanofabrication Facility

• Medicinal Chemistry • Molecular Probes • Molecular Structures Group • Specialized Chemistry Center • Synthetic Chemical Biology

CENTERS AND INSTITUTES • Biodiversity Institute and Natural History Museum (BI/NHM) • Center for Environmentally Beneficial Catalysis (CEBC) • Higuchi Biosciences Center (HBC) • Institute for Bioengineering Research (IBER)

CORE FACILITIES • Biotechnology Core Facility • Biosecurity Research Institute • Confocal Microscopy Facility • Electron Microscopy Facility • Flow Cytometry Laboratory • Food Innovation Accelerator at K-State Olathe • Molecular Biology Facility • NMR Laboratory

CENTERS AND INSTITUTES • Beef Cattle Institute • Bioprocessing & Industrial Value Added Products (BIVAP) Innovation Center • Bulk Solids Innovation Center • Center for Outcomes Research and Epidemiology • Center of Excellence for Emerging and Zoonotic Animal Diseases (CEEZAD)

• Center of Excellence for Translational and Comparative Oncology Research • Food Innovation Accelerator • Food Science Institute • Institute of Computational Comparative Medicine • Johnson Cancer Research Center • Kansas Lipidomics Research Center • KSU Bioinformatics Center • Nanotechnology Innovation Center of Kansas State • National Agricultural Biosecurity Center • O.H. Kruse Feed Technology Innovation Center/ Cargill Feed Safety Research Center • Sensory Analysis Center (animal palatability and nutrition studies)

• U.S. China Center for Animal Health

• Center of Excellence for Vector-Borne Diseases

UNIVERSITY OF KANSAS RESEARCH FACILITIES AND CENTERS

KANSAS STATE UNIVERSITY RESEARCH FACILITIES AND CENTERS

The University of Kansas Office of Research facilitates innovation, creative activity, discovery and the application and dissemination of knowledge. KU Research also has oversight of activities related to technology commercialization and business and industry outreach.

The university is home to more than 90 research centers, including the Biosecurity Research Institute focused on food safety. K-State offers a wide array of research facilities at all three campuses and works across the state of Kansas through the land grant mission of K-State Research and Extension.

Available Incentives Kansas has various valuable incentive programs that are available to animal health companies to assist in reducing their cost of locating or expanding business operations in Kansas. •Withholding Tax Incentives •Training and Retraining Assistance

•Sales Tax Exemption on Items Consumed in Production •Sales Tax Exemption on Production Machinery and Equipment

•Corporate Income Tax Credits •Property Tax Exemption on Machinery and Equipment by State Statute •Research and Development Tax Credit •Sales Tax Exemption for Construction, Build Out, Remodel, Furnish and Equip Worksite •Sales Tax Exemption on Utilities Consumed in Production

•No Inventory Tax •No State or Local Earnings Tax •Funding Dedicated to Transportation Improvements •Utility Incentives to Offset Rate Costs •Angel Investor Credits •77 Designated Opportunity Zones

•Sales Tax Exemption on Ingredients or Component Parts

The population of Kansas is more than 2.9 million.

Median Age 37.1 21% Generation Z and 20% are Millennials.

91% of Kansas adults have a high school diploma.

Kansas’ median housing cost is $145,400.

Top States for Business

Kansas Achieves High Rankings

2020 AreaDevelopment

Kansas Ranks 6th

Kansas recognized as the most improved state in the country.

U.S. News & World Report Best States 2019

Kansas recognized as the most improved state in the country.

2019 Reason Foundation’s Annual Highway Report

« Kansans, on average, experience a 19-minute commute... the sixth quickest commute in the country. « The most common non-English languages spoken in Kansas are Spanish, Vietnamese, German and Chinese.2 « Ranking No. 10 in the nation for affordable healthcare costs and No. 15 for overall healthcare system, Kansas offers quality healthcare at an affordable price.3

Council for Community and Economic Research 2020, 2 US Census Bureau 2019, 3 Wallethub 2020

Empire Candle Co. - Kansas City, KS

HIGHER

66% OF KANSANS ARE IN THE LABOR FORCE, WHICH IS

Frances Kelly is the official First Cat of Kansas. She resides at Cedar Crest with Governor Laura Kelly.

THAN THE REST OF THE UNITED STATES1.

Tuttle Creek Lake - Manhattan, KS

KANSAS RANKS NATIONALLY IN THE

Top 5 FOR COST OF LIVING AT 12.1% BELOW THE U.S. AVERAGE2

Fresh Farmers’ Market - Lawrence, KS

B&B Hydraulics - Hutchinson, KS

Department of Commerce

1000 SW Jackson St., Suite 100 Topeka, Kansas 66612-1354 785-296-5298 | kansascommerce.gov

rev. 5.15.2021