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5/13/2016
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VOL. 37, NO. 20
MAY 16 - 22, 2016
Crain’s 2016
Women of Note
We profile 15 of Greater Cleveland’s most remarkable women | Pages 13-26 TECHNOLOGY: RNC prep Cell systems will be strong as ever. P. 4
REAL ESTATE: Overload? Apartments are rising rapidly. P. 6
Business of Life
CLEVELAND BUSINESS
Holy smokes!
Cigar biz stays hot. P. 27
TECHNOLOGY
MANUFACTURING: On guard Cyber security efforts increase. P. 8
HEALTH CARE
Xellia lays out plan to revive Ben Venue complex Drug maker aims to use newer buildings once it satisfies FDA’s safety standards By CHUCK SODER csoder@crain.com @ChuckSoder
For now, Xellia Pharmaceuticals is producing one thing at the former Ben Venue Laboratories complex: Paper. Lots and lots of paper. Of course, the Denmark-based company eventually plans to use the enormous complex for its originally intended purpose: Drug manufacturing. First, however, Xellia must prove that it can meet the U.S Food and Drug Administration’s safety standards — standards that Ben Venue failed to meet. That means Xellia will have to document nearly every step it takes between now and the end of 2017, when it plans to start making injectable antibiotics at the Bedford site, which closed at the end of 2013. For instance, as Xellia designs its manufacturing processes, the company will have to write down exactly how each of those processes is supposed to be performed — and it will have to record the steps it will take to ensure that those processes are followed.
But Niels Lynge Agerbæk says that the Xellia Cleveland team has what it takes to navigate the process and bring a portion of the complex back to life. Roughly 80 employees and contractors are working on the so-called Xellia Life project from two rooms on the second floor of Building 24 — one of the buildings that they plan to revive. They are doing meticulous work, according to Agerbæk, who moved to the Chagrin Falls area from Denmark to become the site’s general manager a few months ago. While walking past 10 whiteboards lined up on a wall, he pointed out all kinds of charts and schedules detailing what has been done and what still needs to be done. In short, more people need to be hired, more tests need to be run and more documents need to be produced — thousands more. “We are not going to take any shortcuts,” he said. Right now, Xellia can’t conduct any commercial activity at the site. The FDA put the complex under a consent decree in January 2013, when it was owned by Ben Venue.
Entire contents © 2016 by Crain Communications Inc.
SEE XELLIA, PAGE 9
UH: 150 years and counting The operating room at the old Lakeside Hospital, circa 1908. (Contributed photos)
Growth, donations keep University Hospitals healthier than ever BY LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre
For much of its 150-year history, University Hospitals remained a quiet health system nestled on Cleveland’s East Side. But over the last decade and the last two years in particular, the health system has grown into a dominant force in Northeast Ohio with big ambitions. And as UH celebrates its 150th anniversary, the system isn’t just reflecting on its last century and a half of service, but rather looking toward the future. With both Broadview Heights and North Ridgeville health centers and freestanding emergency departments set to come online in roughly the next year — and the construction of a new women’s and children’s facility in urban Cleveland — UH continues to evolve. Much like hospitals across the
Young patients on the porch of Rainbow cottage, 1891. country, the UH system looks vastly different than a decade ago. And much of that is due to the vision of UH president and CEO Tom Zenty, who arrived in 2003 from CedarsSinai Health System in Los Angeles and envisioned building a truly regional health care system.
“What’s the same is our commitment to the highest quality patient care, our commitment to the communities that we serve,” Zenty said in a recent interview with Crain’s. “We were built on a commitment to support the community. … (That) remains an important part of who we are today.” UH acquired five hospitals in 2014 and 2015, which broadened its reach all the way south to Ashland, helping strengthen UH’s status as a regional system. The five hospital acquisitions helped UH significantly grow its market share from 20% in 2010 to 32% by the end of 2015. Over that same period, the system’s total operating revenue ballooned from about $2 billion to $3.29 billion, or almost half the size of the rivaling Cleveland Clinic. However, Zenty is quick to note, “We are not expanding for the sake of growth.” Despite the major investments, the system has maintained a healthy SEE UH 150, PAGE 30