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New frontiers

Summer 2021

S.C.’s life sciences sector poised for growth, success

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Table of

CONTENTS TRENDING: LIFE SCIENCES IN S.C. 14 Overview: What is life sciences and why is it such a hot sector of the state economy?

17 S.C. at the forefront of life science research 20 Industry, education community work together to ensure workforce demands are met

24 Pandemic creates more demand for services, products and innovations

Clemson’s Yue “Sophie” Wang is spearheading Clemson University’s partnership with Nephron Pharmaceuticals to develop a robotic arm used to fill syringes. See the story on page 20. (Photo/Provided)

CASHING IN ON PRO SPORTS

ABOUT THE COVER The life sciences sector in South Carolina has seen strong recent growth and has become a major force in driving the state economy. (Photo courtesy of SCBIO)

DEPARTMENTS www.scbizmag.com

4 Upfront

8 County Spotlight: Oconee 26 S.C. Delivers 32 1,000 Words

South Carolina is hosting more high-profile events, which means more exposure and a chance to showcase the Palmetto State to a worldwide audience. See the story on page 4.

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From the

Editor - Steve McDaniel smcdaniel@scbiznews.com • 843.849.3123 Associate Editor - Jim Tatum jtatum@scbiznews.com • 864.720.2269 LOWCOUNTRY NEWSROOM

EDITOR

Executive Editor - Andy Owens aowens@scbiznews.com • 843.849.3142

Dear Reader,

News Editor - Alexandra Ng ang@scbiznews.com • 843.849.3124

The coronavirus pandemic threw everything into chaos. Our lives were upended, social conventions were turned on their collective heads and the economy was thrown into a tailspin. One sector of South Carolina’s economy stood on the front line of the crisis — life sciences. It’s an industry defined as “encompassing firms in the biotechnology, biomedical, pharmaceutical, biomedical technologies and devices, life systems technologies, and food processing fields, as well as any involved in various stages of research, manufacture, and distribution of products in these fields,” according to SCBIO’s 2020 annual report. In many cases, these companies had to make significant changes to their workflow and staffing levels to accommodate new demands for their products and services. Vaccine research and manufacture, personal protective equipment, raw material supply and much more became the priority across the U.S. and the world as life sciences took on the daunting task of confronting a deadly virus that 18 months ago Steve McDaniel no one even knew existed. Editor, Thanks in part to its role during the pandemic, the life sciences SCBIZ Magazine industry in South Carolina is growing at a rate well above that of other industries in the state. It has a statewide economic impact of $12 billion and the average annual wage is more than $78,000, nearly 80% better than the state average. There is no question life sciences is taking on an ever-increasing role in driving key factors in the state’s economy. Even with its heightened profile as a result of the pandemic, it’s an industry that most of us know little about. This issue of SCBIZ magazine hopes to change that with some in-depth looks at what life sciences is, what it does and how it plans to attract the skilled workforce needed for an anticipated surge in growth across the sector. This issue also features a look at the state’s rising profile and consequent economic impact with professional sports events. The state is home annually to the WTA Volvo Car Open tennis tournament, the PGA Heritage Classic and NASCAR’s top circuit in Darlington, and has added several high-profile events in recent months. Our County Spotlight section takes a look at Oconee County in the state’s northwestern corner. Natural beauty and proximity to the Upstate’s fast-growing economic centers make it a prime destination for businesses and those who want to live close to nature but not too far from the amenities and employment opportunities of city life. We hope you enjoy this summer edition of SCBIZ magazine as we all look forward to what appear to be brighter days ahead — certainly brighter than the days behind us.

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UPFRONT regional news | data

Home Economics

Pro golf, tennis add millions in revenue to local economy

By Teri Errico Griffis

ustin Johnson is a 24-time PGA Tour winner who owns four top10 finishes, including a record-setting victory at the 2020 Masters. The Irmo, South Carolina, resident has been professionally competing since 2008 and has played — and won — on some of the best courses in the world. But he’s still seeking his first victory in his home state. That’s how important professional golf has become in South Carolina. The state has grown beyond its historically minor league and college sports persona, beyond its status as only a recreational golf destination with its more than 350 courses and hundreds of year-round events.

Catherine “Caty” McNally and Hailey Baptiste compete on their way to becoming doubles winners at the MUSC Health Women’s Open.

Over time, professional sports events have become critically important to local and statewide finances as hundreds of millions of dollars pour into towns and cities through job creation, tourism and global exposure. Kiawah Island Golf Resort President

FAST FACTS | Life Sciences in S.C. No. 1

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Fastest-growing segment of S.C.’s knowledge economy

Number of counties in the state with a life science presence Source: SCBIO

Roger Warren called the publicity “priceless.” In a time where fewer fans are attending events and people aren’t traveling as much, South Carolina will be showcased to more than half a billion households worldwide.

Section begins on

Page 14

$12 billion

Annual economic impact in S.C.

$78,658

Average annual salary for life science jobs in S.C. (state average is $44,380)

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“I think that we as an industry here in South Carolina, specifically in Charleston and Kiawah, on our own, we couldn’t pay for the amount of quality exposure we get through the TV,” Warren said. Without a global pandemic causing chaos, the state typically plays host each year to three events by NASCAR, PGA Tour and Women’s Tennis Association. The attractions provide nearly $200 million in combined annual economic activity. So far in 2021, the state has doubled its event tally with the PGA Championship, PGA Tour and WTA calling on South Carolina to host three additional tournaments. In April, the Tennis Channel and WTA Media broadcasted the Volvo Car Open and MUSC Women’s Health Open tennis tournaments on Daniel Island to more than 170 countries. In May, CBS, ESPN, the Golf Channel and other broadcast, cable and digital media platforms will air coverage of the 2021 PGA Championship to more than 175 countries. On average, the PGA Championship media value generates more than $100 million for the host site and region, according to the organization. “This allows us to play with some of the larger states that we haven’t been able to before because we are a small state still, but we have a lot to offer from the mountains to the sea, and golf is a big part of that,” said Duane Parrish, director of S.C. Parks, Recreation and Tourism. While the limited fan attendance will likely lower the what-could-have-been 2021 impact — the originally estimated $200 million by the PGA Championship, for example, has since been halved — the exposure is still desperately needed for a state that relies on tourism. “What we’re still going to see is people coming in and going to restaurants, using accommodations, heads in beds, so to speak,” said PGA Championship Director Ryan Ogle. “So there’ll still be a direct impact to the region.” WTA Chairman and CEO Steve Simon said both the staff and players’ cherish their time each spring in Charleston because of the city’s “A+” hospitality and professionalism. “The hospitality that’s provided and the

UPFRONT

Event

Date

Location

Economic Impact

RBC Heritage (PGA Tour)

April 12-18

Hilton Head

$100 million

Volvo Car Open (WTA)

April 5-11

Daniel Island

$30 million - 40 million

PGA Championship

Aug. 9-12

Kiawah Island, 2012

$193 million

PGA Championship

May 20-23

Kiawah Island, 2021

Est. $100 million

Southern 500 (NASCAR)

Sept. 5

Darlington

Est. $55 million

MUSC Women’s Health Open (WTA)

April 12-18

Daniel Island

N/A

warmth and everything else that comes with it just makes it a very special experience,” he said. “And we know that a lot of our players think Charleston’s one of their favorite stops of the year.”

Playing through the pandemic In the last two years, South Carolina has announced more than $23.5 billion in new investments that have created almost 46,000 jobs through various industries. Gov. Henry McMaster believes that the state’s growing professional sports industry further develops economic opportunities that will benefit South Carolina for years to come. He said at a press conference in April that

“by seizing this once-in-a lifetime opportunity” and sponsoring a third professional golf tournament in a single year, the state is helping small businesses in the hospitality industry that have been devastated by the pandemic. “This is great progress, and I expect that we will be seeing ourselves on television and in advertisements in sports channels wallto-wall during the entire time of those three months,” the governor said. At the tail end of that period will be the Palmetto Championship at Congaree, beginning June 10, which Parrish anticipates will bring in a further $50 million for the state. The revenue was unexpected as the tourna-

ment was a last-minute replacement for a canceled PGA Tour event in Canada. Even with limited tickets available, that total is still double the impact from 2019 when the Country Club of Charleston hosted the U.S. Women’s Open and welcomed nearly 100,000 spectators. Charleston was selected as the official site of the 74th annual tournament, held May 30-June 20, 2019. Like the Congaree golf tournament, the MUSC Health Women’s Open similarly came about after a pandemic-related cancellation. The Billie Jean King Cup tennis tournament was postponed until February in Hungary, and the WTA needed to fill the calendar void. Simon said the Charleston

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team’s efficiency and dedication — not to mention the fact that Daniel Island already had infrastructure and protocols in place — made the decision on where to relocate a no-brainer. “We love being in Charleston… I think it reflects the strength of the partnership we have with everyone in Charleston that we all sat down and talked and agreed it would be

best to run two events there back-to-back,” Simon said. That partnership dates back nearly 50 years to when South Carolina first hosted the formerly named Family Circle Cup on Hilton Head Island in 1973. The tournament has been held on Daniel Island since 2001, and Simon said the event’s here for the long-haul.

UPFRONT

Defending PGA Championship winner Collin Morikawa with the Wanamaker Trophy at the site of this year’s tournament, Kiawah Island’s Ocean Course. Morikawa won the 2020 title at TPC Harding Park in San Francisco. Kiawah hosted the 2021 tournament from May 20-23.

“This is an investment, a long-term venture,” he said. “There’s no plans to move it, and you don’t want to. If you want people to invest into an asset, and you want them to build the infrastructure to make this special, then you have to make a long-term commitment.” Since both WTA tournaments took place without fans, the WTA pivoted this year by creating a global made-for-TV event. Full coverage from South Carolina was served over a two-week span. “We’ll have great footage from Charleston and Daniel Island that’s seen by more than 20 million additional fans across the world. That impact is enormous,” Volvo Car Open Tournament Director Bob Moran said. And those impacts go beyond the weeklong hotel stays and live action. Warren said that in 2012, after the PGA Championship wrapped up, the Lowcountry experienced a trickle-down effect for months. “Our businesses jumped from August 2012 to 2013, and we had a very significant exposure in our business,” he said. “Everyone felt it. So I feel there is some anticipation. That’s what I’m excited about.”

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county spotlight

OCONEE

A worker at the JTEKT Koyo Bearings plant in Oconee County. With three large industrial parks and a major infrastructure project in the works, Oconee is home to a growing manufacturing community.

NATURAL BEAUTY, SUBURBAN CONVENIENCE Oconee County offers quality of life, inviting business climate By Jim Tatum, Associate Editor | Photos provided by Oconee Economic Alliance

ith Upstate South Carolina growing so quickly, it was only a matter of time before it started spreading beyond the Greenville/Spartanburg/Anderson metro areas. One place

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reaping the benefits of that growth is Oconee County. Its mix of rural and

small-town lifestyle juxtaposed against the stunning natural beauty of the Blue Ridge Mountains, combined with a welcoming business climate, has proven to be a recipe for economic development success. Its location along the I-85 corridor and proximity to larger metropolitan areas, about 45 miles from Greenville/Spartanburg/Anderson and Special Advertising Section

Oconee County by the numbers

Population – 81,353 Median Household Median Home Valu Source: ESRI/Oco

Income - $4 8,24 0

e - $167,000

nee Economic Allia

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COUNTY SPOTLIGHT: OCONEE www.scbizmag.com

about 125 miles from Atlanta, is convenient for those who want access to big city amenities without having to live in a big city. The labor force in Oconee County is also a major plus for industries. In fact, the county’s unemployment rate is very low, which is obviously good, yet can be challenging. “It’s a tight labor market,” Oconee County Council Chairman John Elliott said. “I suppose that’s a good problem to have, most everyone who is able to work is working. And we can and do draw from surrounding areas. But it’s still a tight market.” The county has been able to undertake certain efforts to help industries, such as infrastructure and workforce development projects. The county is extending sewer service along I-85, with plans to bring it all the way to the South Carolina/Georgia state line by the end of next year, Elliott said. “There’s not much land left on I-85 between Spartanburg and the Georgia line,” Elliott said. “We have a good bit of I-85 frontage that is still undeveloped in the southern part of the county. So, Special Advertising Section

The cities of Seneca and Walhalla recently undertook revitalization projects, which have breathed new life into picturesque, bustling downtowns and further added to the area’s quality of life.

when we get sewer service into those areas, we believe development will take off there.” The county is also working to increase and extend broadband internet service, he said. Companies have long noted the welcoming business climate and willingness of the county to help meet their needs.

BASF, which came to Oconee County in 1987, is a major employer and continues to reinvest in the area. “The Oconee Economic Alliance has been a tremendous partner to BASF in Seneca over the years, and in the eight months I have served as site director,” BASF Seneca Site Director Elba Lizardi said. “They have been integral to

COUNTY SPOTLIGHT: OCONEE

Oconee County’s quaint, small town atmosphere makes for a great backdrop to outdoor events such as Seneca’s Jazz on the Alley, held in October.

workforce in Oconee County is not only diverse, with significant backgrounds in industrial processes to meet our needs, but also has a strong work ethic and desire to contribute. Beyond great people, Oconee County is businessfriendly, including local service providers, infrastructure that evolves with our

technological advancements, amenities to attract and keep employees, and even availability of supplier partners to support our manufacturing needs. We are excited about the beginning of a long tenure of growth that we find uniquely achievable in Oconee County.” According to data prepared by ESRI

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our workforce development initiatives, because they truly understand the needs of the manufacturing industry and are always exploring ways they can partner with us to expand job opportunities to people in our community. On a personal note, working in the area has been a wonderful experience. People across Oconee County have been warm and welcoming as I’ve taken on this new role as site director, and I look forward to a bright future ahead here.” Joe McCullough, plant manager for BorgWarner Torq Transfer Systems Inc., agreed. “Oconee County has been a great place to locate and grow our business through the years,” he said. “In addition to being a welcoming climate for businesses, Oconee County has been a true partner to help meet our needs and goals and is in a good geographical location from which to support our customers’ needs.” Horton Inc., which opened its Oconee County facility in 2020, is the latest in a thriving, diverse group of manufacturers, including Itron Inc, Schneider Electric, and JTEKT Koyo Bearings USA, that have found Oconee County to be the perfect place to call home. “Horton began the search for a new North American manufacturing plant in 2018, and the most important criteria for our company was people in the area to build the right culture,” Tony Niese, vice president of operations, said. “The

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and provided by the Oconee Economic Alliance, the current population is around 81,000. The average annual household income is around $48,000. There are five incorporated municipalities, the largest being the city of Seneca with a population of around 8,000. Oconee County boasts a number of housing options, from resort neighborhoods such as The Cliffs and golf communities such as Eagles Nest and Cross Creek Country Club, to mini-farms, to quaint older homes in small towns. Numerous educational opportunities are available, with a K-12 public school system as well as access to two and fouryear degree opportunities from Clemson and Southern Wesleyan Universities. Technical education programs are available through the Hamilton Career Center, the high school level vocational school and through Tri County Technical College, both of which are located within the Oconee Industry and Technology Park. “Our Workforce Development Campus is an innovative pairing of education and industry,” Oconee Economic Alliance President Annie Caggiano said. “A rare find in the Southeast, this industrial park is a standout leader in workforce development. The proximity of manufacturingaligned educational facilities to new and Special Advertising Section

At top, Oconee County’s rich natural beauty is an important part of the area’s quality of life. Above, a drone shot of the Oconee Industry & Technology Park.

established manufacturing companies makes the opportunities for co-ops and internships practically endless.” Oconee County offers an exceptional quality of life. Outdoor enthusiasts, especially, find the area to be a treasure trove of recreational opportunities. With more than 90,000 acres of protected forests within the Blue Ridge Mountains, hundreds of waterfalls, the wild and scenic Chattooga River, Lakes Hartwell, Keowee and Jocassee and miles and miles of trails at such destinations as Devils Fork State Park, Oconee Station, Oconee State Park, Foot Hills Trail, Pal-

metto Trail, Stumphouse Mountain Bike Park, South Cove County Park, Chau Ram County Park, and High Falls County Park, it’s no wonder Oconee County is a major mecca for outdoor adventurers of all passions. The cities of Walhalla and Seneca are both undergoing downtown revitalization projects which are expected to help increase tourism as well as enhance quality of life. “We want to grow and prosper, but we also are committed to maintaining the beauty and unique character of Oconee County,” Elliott said. “This is a great place to call home.”

COUNTY SPOTLIGHT: OCONEE

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TRENDING: LIFE SCIENCES IN S.C.

LIFE SCIENCES: WHAT IS IT AND WHY IS IT SO HOT By Jim Tatum, Associate Editor

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T 14

o say that South Carolina’s life sciences industry sector is growing is something of an understatement. Words like “booming” and “exploding” are far more accurate, say industry insiders. Just what is the life sciences industry and how did it come to be one of South Carolina’s hottest industry sectors? While the life sciences industry does not have any officially accepted singular definition by the U.S. government, it can be generally defined as “encompassing firms in the biotechnology, biomedical, pharmaceutical, biomedical

jtatum@scbiznews.com

technologies and devices, life systems technologies, and food processing fields, as well as any involved in various stages of research, manufacture, and distribution of products in these fields,” according to SCBIO’s 2020 annual report. Both SCBIO, the nonprofit organization dedicated to promoting, nurturing and developing the life sciences industry, and the state of South Carolina recognize seven primary fields within the sector, including drugs and pharmaceuticals, medical devices and equipment, digital health solutions,

research, medical and testing laboratories, bio-science related distribution, bio agriculture, and life sciences ecosystems support. According to a 2017 study done for SCBIO by the Darla Moore School of Business at the University of South Carolina, annual employment growth within the life science industry averaged approximately 1.7 percent — more than twice that of the rest of the state (0.8%) between 2005 and 2017. At that time, the report identified some 407 companies in the sector employing more than 40,000

to nurture and grow the state’s life sciences ecosystem, Ford said. “It really is all about telling the story of the life sciences industry in South Carolina, how it improves life for South Carolinians, and ultimately, the world,” Ford said. “We learn more and more every day; consequently, the story grows and develops.” With the data, SCBIO can enhance recruitment opportunities as well as workforce development opportunities, she said. The organization can help foreign companies who want to establish a presence in the U.S. in a variety of ways, from navigating complicated regulatory issues to networking with existing entities in the industry. “We knew life sciences was making a big impact,” Ford said. “But the 2017 study was the first time we have actually had quantifiable data. That has helped us refine SCBIO’s role and sharpen our focus.”

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people and generating an $11.8 billion economic impact. “It’s exciting to see and be part of this growth,” Erin Ford, SCBIO interim CEO director, said. “The numbers have greatly increased since 2017.” In fact, life sciences is now the fastest growing industry sector in South Carolina, Ford said. SCBIO has been in existence since 2004, Ford said. Over time, and with direction from new leadership, the organization evolved and expanded, developing not only more opportunities for advocacy but for economic development. “It really became a different organization,” Ford said. “Having that data from the 2017 report really helped us showcase the industry. As people wanted to learn more, we as an organization continue to learn more.” Ultimately, SCBIO is about finding creative ways to put all the elements together

TRENDING: LIFE SCIENCES IN S.C.

A map of companies and organizations in South Carolina that work in the life sciences sector shows a presence in 42 of 46 counties statewide. (Graphic/SCBIO)

The report provided names and numbers, identifying companies in the sector as well as quantifying numerical data. With that information, SCBIO has been able to better sharpen its focus and expand its role, she said. According to SCBIO and the S.C. Department of Commerce, the industry currently provides: • More than 700 life science firms; more than 43,000 direct and indirect jobs • Average salary $78,000+ • Supporting $7 billion+ in economic activity • Generates $12 billion annual total economic impact to S.C., over 40,000 jobs in total, $2.5 billion in S.C. labor income • 2.9 industry multiplier • S.C. inventors have earned more than 400 patents and licensed technologies in the past five years Dr. Joseph Von Nessen, research economist with the Darla Moore School of Business at the University of South Carolina, authored the 2017 industry report for SCBIO. According to Von Nessen, several factors have driven the sector’s growth and impact. One of those drivers is the growing demand for health care and health-related services; South Carolina has a larger than average population of retirees and seniors, with more relocating to the state every year. Another is South Carolina’s positive business climate, which, of course, helps all sectors. This includes the state’s inherent infrastructure, from the ports to the highway and rail systems, technical college system, high quality of life and reasonable cost of living and doing business. The industry also has a high multiplier effect, 2.9 percent, which means that for every 10 life science jobs created, 19 more are created in related areas, Von Nessen said. “Companies in the life sciences sector often rely heavily on local suppliers, which leads to more secondary job creation,” Von Nessen said. “And when you put the relatively high wage jobs that the life sciences sector supports together with a higher multiplier effect, you’re going to get a recipe for strong growth potential.” Another important factor, especially for life sciences, is a growing overlap between the industry sector and manufacturing. For example, precision manufacturing in

TRENDING: LIFE SCIENCES IN S.C. www.scbizmag.com

At top, an SCBIO conference drew more than 400 attendees in 2020. SCBIO interim CEO Erin Ford (above) was among the speakers. (Photos/Provided)

specialty medical devices also translates easily and effectively to other sectors such as automotive and aerospace. “Why do business in life sciences in S.C.? I think it’s kind of undiscovered country,” said Craig Niles, senior technical staff member at AVX’s Advanced Products and Technology Center. “The business climate, I think, in

South Carolina is very good for establishing and working with new businesses. We have a lot of good technical help from the local universities available to us, and groups like MUSC and Prisma Health that are strong in trying to promote innovation. Groups like SCBIO, for as long as we’ve been part of it, have been promoting sort of entrepreneurial

aspect of medical devices. We are fully mindful of their activities and always looking for ways to either support those activities or look at ways of expanding our product line via acquisition or some other partnering.” Lou Kennedy, CEO/owner of Nephron Pharmaceuticals and SCBIO board chair, called the state a hotbed of innovation, pointing to several examples of startups and expansions due to proximity of research and clinical facilities at institutions such as Clemson University, University of South Carolina and the Medical University of South Carolina. “I think the environment is ripe, and because we are a state that hasn’t (for the last 20 years) focused on health care and life science, we don’t have the onslaught of competition that Research Triangle Park (in North Carolina) has,” Kennedy said. “We’ve got this just ripe community to do all these kinds of things, and we’ve got the universities to support it, and the students and employees that want to do great things for the community and the world.”

TRENDING: LIFE SCIENCES IN S.C.

Nephron Pharmaceuticals in West Columbia has been active with projects related to research and development of COVID-19 vaccines. (Photo/Provided)

SOUTH CAROLINA AT FOREFRONT OF LIFE SCIENCE RESEARCH By Melinda Waldrop

rom products to treat lupus to diabetes testing for dogs, South Carolina is home to cutting-edge life sciences research and development projects. The innovation driving the state’s $12 billion industry takes many forms but shares a common goal of pushing the boundaries of technology to benefit both companies and consumers.

ZYLO THERAPEUTICS

of the skin, serenely delivering its payload without requiring a cumbersome patch. Zylo’s “patchless patch” has applications in the cosmetics industry, with Zylo soon to announce a partnership with a European company, and in emerging health care products. The company received a $1.7 million grant from the National Institutes of Health to more effectively deliver nitric oxide, a substance naturally manufactured in the body that improves circulation but declines as people age. Zylo’s silica particles have been shown to sustainably release nitric oxide, helping with cardiovascular and blood flow issues, Pancoast said. Zylo also works with partners on prescribed medications, such as a product that helps with the cutaneous manifestation of plaques that form on the head and neck of lupus patients. And a new partnership with Silo Pharma will attempt to address neurological diseases through payloads delivering products such as ketamine, a pain reliever and common tool in the arsenal of

emergency room doctors. Lured to the Upstate from his native California by financing from angel investment group VentureSouth, Pancoast has been pleased with the public and private support his company has received in South Carolina and hopes to expand its workforce to dozens of employees. “We hope to, in the next year or two, be able to fill up our manufacturing space and become a growing fixture in the growing list of success stories in South Carolina,” he said.

CLEMSON UNIVERSITY Delphine Dean hasn’t spent much time outside her Clemson University lab in the past year. Dean, a bioengineering professor, is usually plenty busy developing medical devices for low-resource diagnostic settings through partnerships with in-state collaborators such as the Medical University of South Carolina, the University of South Carolina and Prisma Health, as well as organizations in India and Tanzania. Since last spring,

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Zylo Therapeutics, which recently moved from Clemson University’s CUBEInc. into a 12,500-square-foot facility of its own, is about overcoming barriers. The company, founded in 2017 by CEO Scott Pancoast, is pushing the topical delivery envelope for products including retinol creams, lidocaine and CBD oils. “Your skin is made to be a barrier. It doesn’t want things penetrating it and getting into your bloodstream,” Pancoast said. Zylo enhances a product’s bioavailability through engineered silica, similar to beach sand but smaller and finer. It allows a product to remain stable just underneath the surface

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TRENDING: LIFE SCIENCES IN S.C. Above, a technician at Clemson’s CLIA lab handles a vial as part of the lab’s COVID-19 testing program. At right, Lou Kennedy, CEO of Nephron Pharmaceuticals. (Photos/Provided)

she’s also been charged with developing and running Clemson’s COVID testing, which topped 20,000 tests a week during this spring semester. When she’s not overseeing 4,000 COVID

milk using specialized fibers to trap viral particles and oxygen sensors made from hearing aid batteries that test the function of respirators. Student researchers in Tanzania also helped design neck braces out of basket-

“... We only expect it to grow here. The network that we have is strong. There seems to be good support at the state level.”

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— Craig Niles, AVX Corp., on the future of life sciences in S.C.

tests a day, Dean is directing student projects including low-cost, easy-to-manufacture diabetes testing strips that test saliva. The method, developed when a Clemson student doing research in Tanzania found it difficult to get testing supplies, has been adapted to work for dogs in a product called VetTab, produced through Greenville-based Accessible Diagnostics. Other projects under Dean’s purview are a breast pump that scrubs HIV from breast

weaving materials used by an artisan group that had set up shop outside a local hospital. “On the COVID side, it’s been really rewarding to help Clemson University and the Clemson community,” she said. “On just technology development in general, it’s nice to see things get out the door and get used.”

NEPHRON PHARMACEUTICALS One of the eight projects that West Columbia-based Nephron Pharmaceuticals

Corp. has in various stages of development with large pharma companies can be found on at your local pharmacy — if it’s in stock. Nephron produced the vials of solution in Abbott Laboratories’ at-home COVID test and is also doing development and regulatory work for NeuroRX, a company with a COVID therapy product currently in National Institutes of Health clinical trials. Nephron is also teaming up with Clemson University and the University of South Carolina to study production of the raw materials in nitrile gloves, owner and CEO

AVX

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At AVX Corp., the future lies in miniaturization and improved performance. The Greenville-based electronics manufacturer designs and produces components that seem, on the surface, similar to the nuts and bolts of a standard cell phone. But its products, which include parts for pacemakers and defibrillators, must be almost infallible and able to fit into any space. After helping expedite parts for ventilator construction during the pandemic, AVX is turning its attention to a health care field featuring fewer doctor visits. “You have to have access to technologies like telemedicine and remote monitoring and simplified ways of people being able to access their own health without direct contact with a health care provider,” said Craig Niles, a technical staff senior member at AVX’s Advanced Products and Technology Center. “Those things are part and parcel of what we would like to promote by being able to make better and smaller sensing devices.” Niles’ niche lies in developing new, performance-enhancing materials. Ceramic materials, for instance, can withstand stronger electrical fields and store more charge, functions necessary as wireless communication frequencies evolve past 5G into 6G. Niles, at AVX since 1988, is eager to oversee more life science advances in South Carolina. “I don’t mean to downplay the existing market, but we only expect it to grow here,” he said. “The network that we have is strong. There seems to be good support at the state level, and the business climate suggests that this would be a good place for some of these developments to be made.”

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TRENDING: LIFE SCIENCES IN S.C.

Lou Kennedy said. And the company is in talks with two potential partners to use its 110,000-square-foot vaccine production wing, part of Nephron’s $215.8 million expansion of its Saxe-Gotha Industrial Park campus. “South Carolina’s got a lot of innovation going on,” Kennedy said. “There’s a lot of excitement and growth on this side of the (Congaree) river.”

TRENDING: LIFE SCIENCES IN S.C.

Clemson’s Yue “Sophie” Wang is spearheading Clemson University’s partnership with Nephron Pharmaceuticals to develop a robotic arm used to fill syringes. (Photo/Provided)

INDUSTRIES, SCHOOLS MITIGATE LIFE SCIENCE WORKFORCE GAP By Molly Hulsey

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outh Carolina’s life science sector, once falling behind the automotive and aerospace industries in growth, charges ahead with a momentum that creates twice as many jobs each year as the state economy as a whole, according to an economic impact report from University of South Carolina Research Economist Joseph Von Nessen. And with life science jobs paying on average more than $78,000 yearly, it is evident that in the race to woo employees in a state with a 5.3 percent unemployment rate, the sector has an edge. But since 2017, the number of life science firms has doubled across the state, and universities, industry organizations and companies are banding together to ensure that the most critical resource — human

mhulsey@scbiznews.com capital — can keep up with the demand. “It has historically been the majority of the time that you find a qualified person, they already have a job in M and L (manufacturing and logistics), so it has really been tough to fill the need,” said Josh Turner, a sales executive for Modjoul, a health-focused data analytics company serving the manufacturing sector, and a former staffing professional. He added that staffing companies pre-pandemic were filling positions with available people even if they weren’t trained or had any experience in the field. “All I’ve heard since the pandemic is (that) it has been hard to even find available people, much less available and qualified people,” he said. Especially within the often-specialized needs of the life science industry.

SCBIO and its 100-people strong Workforce and Development Task Force has been formulating an initiative that will spark this interest beginning at the age of 5, especially among young women, and feed the flame with sector-specific curriculum plans at the college-level and scholarship programs. Interim SCBIO CEO Erin Ford said the workforce will pilot a Life Science Certificate program with two-year technical colleges across the state. So far, Tri-County Technical College, Trident Technical College, Greenville Technical College and Midlands Technical College have signed on to the pilot, which covers a track for pharmaceutical or biotech professionals and those seeking a career in the medical device field. “I am hopeful that we will have a course that will happen at one of these schools by

like Poly-Med, and Ford forsees a possible apprenticeship route on a case-by-case basis in the years ahead. For Spartanburg Community College, hosting a medical device company that is literally in-house at its soft-landing incubator, the Sparks Center, seemed to be the obvious step toward encouraging local economic and workforce development. Earlier this spring, Epica International, a robotics and medical-imaging developer, established its corporate base and incoming assembly operations facility within the Sparks Center, partially due to the area’s workforce and research university presence. “We could get a warehouse lots of places,” said company founder and director Greg Stotenburgh. “Being able to have access to those people and the facilities for training and everything else — that’s huge.” Spartanburg Regional Health will be the first hospital to install the company’s newest development, a mobile CT scanner with High Definition Volumetric Imaging with fluoroscopy and digital radiography features that can be wheeled to a patient. “Hopefully, we’ll be creating some training

on this piece of equipment for future employees that are using this, so that’s pretty exciting,” said Mark Forrester, vice president of economic development at the college. At the university level, Nephron Pharmaceuticals has already begun to partner with Clemson University’s Yue “Sophie” Wang in helping mitigate workforce and drug shortages with her creation of a benchtop robotic arm that will fill, cap and seal syringes at the Columbia outsourcing facility. Nephron CEO Lou Kennedy said the partnership will not only free up the five employees per airflow hood needed to fill syringes but will also help foster a talent pipeline to the company. The next phase of the project features the completion of a clean room on Clemson’s campus for the project: another step toward Kennedy’s plans to commercialize the robot. “We’re a young company and want to play a role in developing all of this great talent we have around us,” Kennedy said in a news release. “I decided it was time to put game day feelings aside and look at where our talent was really coming from.”

TRENDING: LIFE SCIENCES IN S.C.

the end of the year or early next year,” Ford said. Life science companies in each region have already offered some input to their needs and will continue to do so once the program launches: Trident Tech collaborates on the workforce demands of Charlestonarea companies Alchemy, Charles River Labs and Vikor Scientific while Tri-County Tech is partnering with Arthrex, Abbott Laboratories and Poly-med. Medical device manufacturer Poly-med CEO Dave Shalaby said his company usually hires Clemson University graduates and has a strong in-house program, but now that the hiring climate has become so competitive in the Upstate, he has started to advise TriCounty Tech on courses that would expose students to the industry’s ISO 1345 standards and documentation. “Tri-County is developing that curriculum now,” he said. “They’ve got sort of a draft in place, and it’s got to come back out for everybody to take a look at it and see if it makes sense to create the course.” The course would help prime students for employment at partnering industries

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TRENDING: LIFE SCIENCES IN S.C. Partnerships formed during the pandemic helped Precision Genetics prepare to roll out its latest product, a genetics-based mental health treatment program, this summer. (Photo/Provided)

LIFE SCIENCE INNOVATION, DEMAND GROWS OUT OF PANDEMIC YEARS By Molly Hulsey

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or the state’s fastest growing industry, 2020 was both a paradigm shift and a call to action. As international supply chains faltered, local life science companies had to shoulder the brunt of a lack of raw materials that arose while market demand was intensifying. “We found out at the worst of the pandemic that over 90% of all active pharmaceutical ingredients, 97% of all antibiotics, 95% of all Vitamin C are all produced offshore,” said Sam Konduros, CEO of the Vikor Scientific’s new cannabis treatment startup, KOR Medical. One year out, industry leaders attribute the sector’s rapid mobilization — and the public-private links developed during that time — for new treatments and initiatives

Mhulsey@scbiznews.com as COVID-19 cases begin to flatline across South Carolina. “We are working actively with all those federal agencies that I mentioned: BARTA (Biomedical Advanced Research and Development), HHS, DOD, U.S. Development Finance Corp.,” said Konduros, then CEO of SCBIO. “There are funding mechanisms unlike anything I have ever seen available to qualifying companies that can truly meet the need and are capable. So whether it’s an existing South Carolina company that’s already strong and has demonstrated a track record that it can expand more easily utilizing some of those tools or some of the projects I’m talking about that would be literally onshoring, it gives us a lot more wind in the sails than normal.”

For Konduros, renewed focus on the life sciences aided him in his transition from a four-year stint as the CEO of SCBIO to the helm of the Vikor Scientific portfolio company after Vikor’s “explosive growth over the past three years.” In December, the Charleston company spent $1 million in expanding its production of COVID-19 testing kits. A few months later, Vikor launched Quantgene Serenity, an artificial intelligence-powered treatment designed to detect cancercausing mutations through a non-invasive blood sample. “People are now taking ownership of their health,” Vikor Co-Founder Scotty Branch said. The pandemic awakened a drive for self-care among consumers, he argued. Last April, SC Biz News reported how

TRENDING: LIFE SCIENCES IN S.C. Greenville-based manufacturer Softbox has long been a player on the life science field with its chilled shipping packages, but during the pandemic, it became one of Pfizer’s primary suppliers for ultra-cold shippers used to transport COVID-19 vaccines. Here, Prisma Health employees wheel in a Softbox shipper of one of the first Pfizer vaccine shipments. (Photo/Provided)

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Greenville-based Precision Genetics began its ascent to a COVID-19 test processing and reference center for some of the largest hospital systems in the state. At that time, the lab was processing more than 1,000 tests a day just for Prisma. A year later, CEO Nate Wilbourne added Bon Secours St. Francis Health System, Spartanburg Regional Health Care Systems, Lexington Medical Center, Roper St. Francis Health Care and the Medical University of South Carolina to the list of partners during the pandemic. “Word spread relatively quickly that we had automated the process to be able to capture COVID-19 testing orders: it was embedded into the medical record (and) our turnaround time was 24 hours or less, which was very important with the urgency around COVID testing,” Wilbourne said. “Once that word spread, it really did open a lot of opportunities for Precision to be able to start partnering with other health systems. We ended up last year signing contracts and doing reference work for COVID at the time for five of the largest hospital systems in South Carolina, to include MUSC, who we now have a partnership with on their molecular side.” Many of these partnerships, such as Precision Genetics’ tie to MUSC, were nonexistent before the pandemic, but are what will make the June release of the company’s newest product possible: an individualized mental health treatment plan based off genetic assays. The company had developed the assay for the project before the pandemic hit, but the testing partnerships with hospitals streamlined the process of linking hospitals’ patient databases with Precision Genetics’ system. According to Wilbourne, the new product will prompt physicians within the system to prescribe pharmaceuticals and treatment plans best suited for patients based on their genetic makeup and existing medications. He also argued that the pandemic helped generate a greater demand from both patients and hospitals for similar products, especially since mental health issues have come to the forefront following months of social isolation, job loss and other stressors. “What people realized in the pandemic

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over the past 14 months is the value of molecular data as it relates to patient care,” he said. The pandemic also pushed Vitalink’s services onto the national stage when the company became the only Upstate provider for the third trial of the Moderna COVID-19 vaccine. Before last March, Vitalink CEO Steve Clemons said that few people he spoke with really knew what he did or how clinical trials worked. And despite being “purpose-built for the pandemic” with a respiratory treatment focus, Vitalink was not a hub for vaccine trials. Then Vitalink became the only Phase III provider of the Moderna COVID-19 vaccine trial in the Upstate. “There has never been a time when people knew what we do like today,” he said. When Vitalink announced that it would pioneering a new frontier in 2020, roughly 1,200 Upstate trial participants signed up for the Moderna vaccine. Clemons said they could have served more if they had had the staff and resources at the time.

Vikor Scientific representatives say the life sciences industry has seen “explosive growth” over the past three years. In December 2020, the company spent $1 million in an expansion that grew its COVID-19 testing capabilities. (Photo/Provided)

“Our company was on a slower period when the tidal wave hit, and literally, I tripled my company size in the matter of about 30 days,” he said. Even as Vitalink’s work in readying the COVID-19 vaccine for approval begins to wane, its connection to Moderna and other players in the vaccine production world have not.

“Moderna came to us with some other types of studies down the road,” he said. “Moderna does a lot of things like flu vaccine and things like that. And really, leave COVID alone for a minute, between flu and RSV (respiratory syncytial virus) — which everyone thinks of RSV as a baby disease, but it’s really not — those are the other trials that we’re working on right now.”

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The Hugh K. Leatherman Terminal opened in April with the first ship, the Yorktown Express, docking at the terminal. (Photo/Kim McManus)

LEATHERMAN TERMINAL FORCED TO DIVERT 2 LINES BACK TO WANDO WELCH By Teri Errico Griffis

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he S.C. Ports Authority has shifted two containerships intended to call on the Hugh K. Leatherman Terminal in North Charleston back to Wando Welch Terminal in Mount Pleasant as shipping companies look to stay out of the fray cause by a union lawsuit, the Port of Charleston said in a May 5 statement. In a months-long battle to ascertain HLT jobs that they believe should be assigned to union workers, the International Longshoremen’s Association has taken to using an “intimidation tactic” to get liners to boycott the port, the SCPA said. Following the Leatherman Terminal opening, the ILA is suing Hapag-Loyd and the U.S. Maritime Alliance for $200 million in damages, arguing that by docking at the terminal and using non-bargaining employees, both violated terms of their Master Contract and subsequently cost ILA members future jobs and wages. While the lawsuit isn’t directed at the SCPA, the port said it is having its “intended impact” as certain Ocean Alliance shipping lines and The Alliance shipping lines have asked that their ships not call on the Leatherman

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Terminal until the matter is resolved, the statement said. Not allowing ships to call on the Leatherman Terminal comes at a higher cost for the involved lines and the diverted cargo, especially in a time of unprecedented global supply chain disruption. The Ports Authority said it however understands major foreign container shipping companies trying to avoid a confrontation with “frivolous lawsuits.” “Despite prior assurances from the union through a stipulation filed with the NLRB that Leatherman Terminal would operate as normal until the judge has ruled in the pending NLRB proceeding, these lines are now being intimidated to either return to Wando Terminal or divert these vessels to other South Atlantic ports, which have the same operating model that they are objecting to here,” the SCPA statement said. The port further believes that any issues the ILA had should have been “professionally addressed” through the NLRB proceeding. Beginning in August 2020, the SCPA and shipping lines designated four services that would berth at the Leatherman Terminal to alleviate the container volume handled at Wando Welch Terminal. If those services

were not moved, Wando Terminal would operate above its maximum capacity, which the SCPA said would disrupt “efficiency and productivity” of the terminal’s operations. The Leatherman Terminal opened in April under the ports’ long-standing hybrid model of union laborers and dock workers executing daily operations. Following the August agreement, the longshoremen union and the U.S. Maritime Alliance, which represents the stevedores and shipping lines who employ the union labor, moved to enforce a Master Contract clause that required all labor for any new terminals to be 100% union labor. The SCPA and the S.C. attorney general filed charges with the National Labor Relations Board on Jan. 7 stating that the forced unionization tactic would endanger the port’s successful operating model. The port argued the Leatherman Terminal also pre-dated the Master Contract the ILA was invoking. The NLRB found merit in the charge in March and scheduled a hearing for May 4. That hearing has since been delayed to June to allow the NLRB time to analyze the additional charges. For the time being, the SCPA has agreed to two of the lines’ requests to divert them

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back to the Wando Terminal, pending further clarity from the NLRB on the longshoremen’s actions. One line will still remain at Leatherman Terminal. “This is not a sustainable solution, but in the short-term, it will help mitigate the harm caused by the unlawful union tactics and assure the continuity of service to which our customers have become accustomed while further protections are sought through the legal process,” the SCPA statement said. The SCPA and the state plan to work through all legal processes available to protect the Hugh Leatherman Terminal investment and the economy surrounding it. “Should the objective of a different and more expensive labor model be successfully achieved at Leatherman Terminal, it would put S.C. Ports Authority at a competitive disadvantage within our region as none of our container line customers would utilize the terminal, defeating the very purpose of building port infrastructure in support of South Carolina’s supply chain and maritime community,” the SCPA said.

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Inland Port Greer launches expansion project, grows cargo capacity By Molly Hulsey

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Inland Port Greer extends the Port of Charleston’s reach 212 miles inland via rail. (Photo/ Provided)

On the heels of opening of a new terminal in Charleston, the S.C. Ports Authority announced on April 29 plans to expand Inland Port Greer — a pair of developments drawing praise from some players in the manufacturing and logistics sectors. The installation of Charleston’s Hugh K. Leatherman Terminal has already spurred

one Upstate-based logistics company, Greer-based TA Logistics, to consider doubling or tripling his personnel over the next 12 months. Swafford Transport and Warehousing, a logistics company with several foreigntrade zone warehouses within a few miles of the inland port, also has seen a sign of greater things to come. Dusty Locke, vice president of the company’s operations, expects Charleston’s port expansion to attract some companies away from a Savannah port of call, thus making his trucking prices far more competitive with Inland Port Greer factored into the equation. “If I were to send a driver from Greer to Charleston and back, that’s his day,” Locke said. “He can do one load. Now those containers can come in from the inland port from Charleston where they can’t from Savannah, and that same driver can get 10 containers in a day.” That difference could alter consumer freight costs from — for example — $1,000 a container to $100, he said. “The Leatherman Terminal provides more big-ship capabilities, cargo capacity and efficient operations for S.C. Ports,” Liz Crumley, manager of corporate communications for the S.C. Ports Authority said in an email. “The additional capacity means more cargo can flow in and out of port terminals and inland ports. The efficient operations provide reliability and speedto-market for customers needing to move imports and exports, as goods swiftly travel between Inland Port Greer and the Port of Charleston via overnight rail.” With a $25 million grant from the Better Utilizing Investments to Leverage Development Fund, Greer’s inland port will expand with additional rail processing and storage tracks within the terminal that will expand the container yard to the east and west, according to the April 29 announcement.

Reach Molly Hulsey at 864-720-1223.

Staff reports

By Molly Hulsey

mhulsey@scbiznews.com

Reach Molly Hulsey at 864-720-1223.

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Kerns Trucking Inc., a regional transportation and logistics company based in Grover, N.C., will establish its corporate headquarters in Cherokee County. The more than $7.9 million investment will create 136 new jobs in the county, according to an announcement released May 18. The project is expected to reach completion late in 2022. “We welcome Kerns Trucking Inc. to South Carolina and celebrate their 88 years of business success and the 136 new jobs the company will create in Cherokee County,” Gov. Henry McMaster said in the news release. “I look forward to watching this great company grow its dynamic footprint within our borders.” Founded in 1933, Kerns Trucking Inc. is a fourth-generation dump truck carrier that specializes in local and long-distance dump trucking, various residential dump trucking, recyclable and scrap hauling and custom over-the-road brokerage, according to the release. Kerns Trucking’s portfolio includes: truck services for interstate infrastructure and industrial complex projects; servicing a wide array of concrete and asphalt corporations; transferring essential products for manufacturing and recyclable materials; and residential project services. “We would like to thank Cherokee County and the state of South Carolina for their partnership in our current and future success,” Kerns Trucking President Clyde Kerns said in the release. “Kerns Trucking Inc. plans to invest in Cherokee County with the same professionalism and enthusiasm that has been shown to us. We look forward to growing together in this corporate expansion with South Carolina, Cherokee County and its citizens for many years to come.”

two buildings that will make up the 31-acre Portside Distribution Center near the Nexton Parkway interchange. Colliers International is handling leasing for the 189,500-square foot, Class-A speculative facility. Frampton Construction said in a news release the building could be

S.C. DELIVERS

N.C. logistics Summerville industrial building finished company invests used by a variety of companies, including aerospace and automotive suppli$7.9M in Cherokee Frampton Construction has finished logistics, ers, defense contractors, light manufacturbuilding a 189,500-square foot industrial ers and last-mile distributors. County operation building in Summerville. It is the first of The facility is located at 140 Portside

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A pair of Great Horned Owlets peer from their perch in a tree at Charles Towne Landing in Charleston. The State Historic Site on the Ashley River near downtown is home to a variety of birds and other wildlife within its 664 acres of natural beauty. (Photo/Kim McManus)

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