Initiatives magazine, December 2003

december 2003 review

initiatives

huntsville madison county chamber of commerce

Nucleus for Growth: Huntsville’s

Biotech Industry

page 5

A Fusion for the Future The Spin Starts Here

9

10

Cultivating Investment

17

initiatives Huntsvi lle/Madison Count y • Chamber of Co mmerce

features cover

Nucleus for Growth: Huntsville’s Biotech Industry

05

A Fusion for the Future

09

The Spin Starts Here

10

Cultivating Investment

17

Crystal Clear

21

Tools of the Trade

21

Nucleus for Growth: Huntsville’s Biotech Industry

developments

Cover design by Kristi Sherrard

staff

President/CEO

Brian Hilson

Publisher/Editor

Jeff Thompson

Contributing Editor

Kathryn Woody

Graphic Designer

Kristi Sherrard

Writers

Dauna Coulter Ray Garner Mike Kelley

Economic Research

Ken Smith

Account Executive

R.D. Patterson

Economic Indicators

18

Economy At-A-Glance

19

Member Developments

24-25

mission

The mission of the Chamber of Commerce of Huntsville•Madison County is to prepare, develop, and promote our community for economic growth.

contact

Chamber of Commerce Huntsville•Madison County 225 Church Street Huntsville, AL 35801 256.535.2000 www.hsvchamber.org www.huntsvillealabamausa.com

Permission to publish any part of Initiatives Review is hereby granted exclusively to any non-profit institution and to any publisher for broadcast or publication to the general public. Credit “Initiatives Review, a Publication of the Chamber of Commerce of Huntsville • Madison County.”

03 Initiatives December 2003

Nucleus for Growth Huntsville’s biotech industry is built on technology and talent

A

mid the weapon and propulsion research for which Huntsville is so well known is another industry searching for its place in the sun.

Huntsville is home to several companies and nearly 500 employees who labor in one of the 21st century’s darling industries – biotechnology.

Huntsville’s most prominent biotechnology firms of the 90’s, Research Genetics and Shearwater Polymers, both made big news when they became acquisition targets. Their founders, Jim Hudson and Milton Harris respectively, each made the difficult decision to let go of the company that they built. But

image of the entrepreneur: brilliance in the life sciences. While their businesses vary widely, they share the common vision of company growth based on combating human illness. And all three are quite outspoken about their love of Huntsville and their plans to enrich the local biotech culture.

“We all have a strong desire to stay in Huntsville,” says Brian Pollock, the 36year-old CEO of Open Biosystems, which he founded in July 2002.

“Compared to a place like Boston or Raleigh-Durham, we are able to leverage our lower unit cost of doing business here [especially] because today’s transportation costs are low.

You don’t have to be next door to your customers,” An educated workforce will remain one he says. of the most important ingredients in Open Biosystems is well on its way to carving the formula for biotech success. out a secure niche in the “tools” for biotech Hudson and Harris did not lose interest research, specializing in providing lowin biotechnology; indeed, they have cost genomic and protein resources to become angels in a number of new bioresearchers throughout the U.S. “We tech ventures. don’t do the research,” says Pollock.

Three of these firms are now located “We’re like those in the gold rush days in the recently-established Huntsville who supplied picks and shovels to the Biotechnology Center in Cummings miners.” Largely a marketing and order Research Park. Their CEOs bring a new fulfillment firm, Open Biosystems’ 26 element to the bold, sometimes brash, employees ship everything from yeast

cultures to mouse DNA to hundreds of research labs.

These tools originate, in part, from a vast array of research labs with which the firm has formed alliances. “None of the resources that we distribute have come from this area,” says Pollock, citing a list of product sources that sounds like a Who’s Who of the biotech research world: MIT, Stanford, the Lawrence continued on page 07

04

05 December 2003 Initiatives

Initiatives December 2003

Nucleus for Growth . . . continued from page 05

7143-E Hwy 72W (Located at the Corner of Slaughter Rd. & Hwy 72)

7143-E Hwy 72W

Livermore labs, and the National Cancer Institute, among others.

Rob Seitz, Research Genetics Alumnus, started Applied Genomics, Inc. in 2000.

The idea for his company grew from his collaboration on cancer detection and classification with Doug Moss, at the time a Stanford PhD and researcher. Their aim was to discover ways to make cancer-fighting drugs more effective. Researchoriented Applied Genomics fits the popular image of a biotech firm. “We’re like a company you would see in California or Boston, in that we licensed a technology from Stanford and are developing a product line,” says Seitz.

tied to a single disease, cystic fibrosis. A specialty pharmaceutical firm and medical company serving the 30,000 or so victims of CF and their healthcare providers, SourceCF markets an array of products that includes anti-infective drugs, aerosol inhalants, respiratory vest systems, and super high-protein food supplements. Founder Mike Walters cut his teeth at Johnson and Johnson where, says CFO Mark Kershner, he developed a strong network among the community working with the cystic fibrosis disease.

Of somewhat older vintage in the biotech industry is New Century Pharmaceuticals, founded in 1997 by

A Huntsville native and CEO, Seitz decided to keep his company headquarters here. However, Applied Genomics has a research facility in Sunnyvale, California, headed by Moss, who now carries the title of Chief Scientific Officer.

A third company, SourceCF, might be described as a boutique firm in that it is

former NASA scientist Dr. Dan Carter.

The Oklahoma native came to Marshall Space Flight Center in the mid-1980s to join the ongoing research in protein crystal growth and while there established the Laboratory for Structural Biology.

Carter led the research team that discovered the atomic structure of Human

Serum Albumin, a major protein of the circulatory system important to the maintenance of blood pH. Human Serum Albumin plays a vital role in the transport, distribution, and metabolism of many pharmaceuticals. According to Carter, New Century Pharmaceuticals’ research efforts have led to the manufacture of recombinant albumin, one product they are now marketing.

Carter says his firm has accomplished all of its primary R & D goals and is now focused on product commercialization.

“We have proven the efficacy of our R&D platform, and now it’s time to move ahead,” he says.

These firms stay in Huntsville, say their founders, for a variety of reasons.

For Seitz, it’s a matter of home and family.

Carter talks of his affinity for a community whose lifestyle he has come to love.

In addition, Huntsville has the necessary critical mass of biotech talent these firms require, thanks largely to the efforts of Nektar Therapeutics and Research Genetics, which attracted and nurtured a workforce educated and experienced in the field.

They would all like to see Huntsville develop as a biotech center. “My board really wants to build biotech in Huntsville,” says Seitz. Answers to what it will take to make that happen vary.

But most agree that the investment climate and educational opportunities must continue to improve. “What we need,” says Pollock,” is a major educational push to happen for biotechnology, similar to the push Huntsville made in the early years of the space program. An educated workforce will remain one of the most important ingredients in the formula for biotech success.

Mike Kelley

06

07 December 2003 Initiatives

Initiatives December 2003

A Fusion for the Future Nektar Therapeutics enhances medication delivery and effectiveness

W

hen some diabetics get up in the morning, they face a needle. They must use injections to manage their disease. The most effective injection site is the abdomen – not a pleasant thought. Imagine their relief if all they had to do was inhale their medicine each morning. No more needles. Nektar, a biotechnology company with offices in Huntsville and in San Carlos, California, is making inhalable medicine a reality. By designing optimal drug particles to reach the deep lung efficiently, Nektar scientists came up with a way to deliver macromolecules (large complex molecules formed from simpler molecules) via the lung. Nektar has partnered with Pfizer in using this technology to create an inhaled insulin product called Exubera®.

Nektar was formed by the fusion of Shearwater, Inhale Therapeutic Systems, and Bradford Particle Design. Dr. Milton Harris, formerly a Professor of Chemistry at the University of Alabama in Huntsville (UAH), founded Shearwater Corporation in Huntsville in 1992 and is now General Manager of Nektar Molecule Engineering.

Harris’ early work at UAH led to the development of biomedical applications for PEG (polyethylene glycol) – a molecule that protects drug molecules

attached to it from provoking an immune response. This discovery formed the foundation for Shearwater. Dr. Harris, through his company, focused on making PEG technology available to the pharmaceutical industry. His company successfully achieved this goal and was then acquired by Inhale. Inhale was attracted to Shearwater because Shearwater, through its PEG technology, had an established product pipeline. In turn, Inhale had resources that could help Shearwater. “It was the right marriage at the right time,” says Carolyn Horan, Nektar Human Resources Director. The companies changed their name to Nektar early this year.

Nektar offers technologies that make drugs better in terms of delivery and effectiveness. These technologies are advanced PEGylation (in which PEG is attached to a pharmaceutical), and particle engineering (both Pulmonary Particle Technology and Supercritical Fluid Technology). These are advanced drug delivery solutions that can be utilized for oral, injectable, and pulmonary administration.

Many chronic diseases are treated with frequent injections. Since advanced PEGylation extends the activity of drug molecules in the body, it is effective in reducing dosing frequency. Hepatitis C is

an example of a disease for which Nektar’s technologies are improving treatment. Interferon alfa, the standard treatment for Hepatitis C, has poor efficacy due to its short circulation halflife. Treatment requires three injections per week. Nektar scientists helped Hoffmann-La Roche create PEGASYS®, which is expected to provide longer lasting levels of medicine in the blood, increasing efficacy and reducing longterm liver damage. It reduces the injections to one per week and reduces side effects as well.

Nektar also develops methods such as Pulmonary Particle Technology and Supercritical Fluid Technology (SCF) to design precise drug particles (the building blocks of solid dosage form medications) and enhance their delivery, leading to the creation of inhalable drugs like Exubera (described previously).

By providing these innovative drug delivery technologies, Nektar has helped their partners develop improved patient therapies and gain greater commercial success. Horan says, “One of the things we like so much about working here is that it really makes you feel good when you know that what we’re doing is helping human beings. It’s an awesome responsibility, but we are making drugs better.”

Dauna Coulter 09 Initiatives December 2003

LEFT: Computer-generated model of RANK Ligand, one of the three proteins responsible for maintaining the fine balance between bone loss and new bone growth. The structure was determined by protein crystal growth and X-ray crystallographic analysis.

creative designs Q UA L I T Y AR CH I TEC T U R E commercial

res i dential

The Spin Starts Here Bird & Kamback Architects, llc

Marshall Space Flight Center spurs biotech industry in Huntsville

M

issile and space programs spurred Huntsville’s growth from a quiet country town where cotton was king into Alabama’s foremost center of multicultural interests and activities, and into a wellspring of scientific and technological research. The technological focus resulting from NASA’s presence in Huntsville has attracted people of vision and intelligence from all over the country – all over the world – to our city. These bright minds have made Huntsville a seedbed for ideas and innovation in a diversity of fields.

Among the most thriving and successful areas of development is biotechnology.

Relationships with NASA’s Marshall Space Flight Center (MSFC) have helped local Huntsville entrepreneurs, as well as branch divisions of national and international companies, create and market biotechnology “spin-ins.” Unlike “spinoffs” – products first conceived for use in space – “spin-ins” are products created or improved as a direct result of industry research with NASA. Biotechnology products and processes are foremost among “spin-ins" benefiting both industry and consumers nationwide.

Welcome to NASA’s Space Product Development Program (SPDP), part of NASA’s Biological and Physical Research Program. Managed at MSFC, SPDP encourages and sustains a commercial demand for space by helping companies improve products and services through space research. Often, this research is valuable for NASA too – the technologies help improve spacecraft and the health and

safety of crews living and working in space. The SPDP manages such research at 15 Research Partnership Centers located primarily at academic institutions. The Consortium for Materials Development in Space (CMDS), one of the three centers involved in biotechnology, is located at the University of Alabama in Huntsville (UAH). Work done through CMDS yields biotech materials and processes of great value to life on earth.

Much of this work is done in cooperation with biotech companies in Huntsville.

Companies often “spin-off ” from research teams doing “spin-in” research.

Such companies are primed for growth in new commercial markets with products and technologies that spring, in part, from NASA-supported research through CMDS. Research Genetics and Shearwater Polymers (now known as Nektar Therapeutics) were the first two commercial partners to engage in collaborative R&D with CMDS. Dr. William Gathings, Director of CMDS, has been intimately involved with biotech businesses both in Birmingham and Huntsville. He asserts, “In my opinion, these two Huntsvillebased companies are the biggest biotech success stories in the state.”

Asked to explain why, Dr. Gathings answered, “Both companies focused on near-term, commercially viable products.

Research Genetics quickly and aggressively developed and marketed research tools needed for the Human Genome Project and the emerging biotech industry. Shearwater had a new drug delivery

technology of interest to the pharmaceutical industry.”

A prime example of the kind of creative fusion CMDS makes possible, partnership between Research Genetics and CMDS resulted in an important addition to the company’s highly successful GeneFilters® DNA microarray product line – the Biomineralization GeneFilters. This DNA microarray allows scientists to perform comparative studies of genetic expressions under both microgravity and earth’s gravity conditions to identify the specific genes culpable in bone loss. Bone density loss is a problem not only in space but also in the aging population on earth.

CMDS NASA-funded projects continue to yield advancements in the study of bone remodeling.

Research Genetics became a springboard for several new biotech companies in Huntsville which produce research tools in great demand by the biotech industry: (1) Open Biosystems, developing and marketing products related to genomics (investigations into the structure and function of genes) and proteomics (identification, characterization, and quantification of proteins); (2) Applied Genomics, Inc., working

with tissue microarrays to generate drug discoveries and cancer diagnostics; (3) Polymx, producing synthetic peptides; and (4) Phoenix Biotechnology, developing synthetic DNA. Several other biotech companies have their origins in Huntsville, in part through partnerships with CMDS: NektarTM Therapeutics; New Century Pharmaceuticals, Inc.; Expression Genetics, Inc.; and Genaco Biomedical Products, Inc. Shearwater Polymers (Nektar Therapeutics) was formed by Dr. Milton Harris, General Manager of Nektar Molecule Engineering. Dr. Harris is a former professor whose work at UAH (partly funded by CMDS) led to his discovery of modified polyethylene glycol (PEG) – a molecule that protects drug molecules attached to it from immune response. Dr. Harris founded his company, Shearwater Polymers, on this discovery. PEG-related technologies evolved

by Nektar have significantly improved drug delivery in the human body.

Scientists at New Century Pharmaceuticals, under the direction of former MSFC scientist Dr. Dan Carter and in cooperation with NASA, have used an advanced crystal growth project and the engineering and construction of high brilliance X-ray crystallography technology to develop recombinant Human Serum Albumin (rHSA). Genetically engineered albumin products made with rHSA have advantages over existing albumin products used for blood transfusions because rHSA eliminates the possibility of pathogens continued on page 12

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11 December 2003 Initiatives

Initiatives December 2003

The Spin Starts Here . . . continued from page 11

(such as AIDS and hepatitis). Many companies today use human albumin as a stabilizer in their therapeutic products.

Expression Genetics develops polymerbased technologies to be used in gene therapy. The company seeks to produce therapeutic products based on genomic discoveries in the areas of cardiovascular disease, diabetes, oncology, hematology, and rheumatoid arthritis. CMDS, through NASA, plans to co-fund a new cancer vaccine development project next year in collaboration with Expression Genetics.

Genaco Biomedical Systems has developed proprietary platform technology for the emerging field of DNA diagnostics.

CMDS has developed a comparable patent-pending method that may enhance the Genaco technology. Using

The final step in detecting nucleic acids (i.e., DNA /RNA) from infectious agents using CMDS’s patent pending UD3 detection technology.

these technologies, scientists capture the DNA from infectious viruses and bacteria and analyze it, resulting in earlier

detection and treatment of illnesses such as SARS, influenza, antibiotic-resistant staphylococcus, and illnesses affecting domesticated animals. These technologies may also prove useful for bioweapons threat detection and for detection of viral and bacterial diseases affecting agricultural crops. Genaco and CMDS plan a joint study to evaluate the two methods side-by-side. An additional Huntsville “spin-off ” company may be created to develop and market CMDS’s promising technology.

Dr. Gathings believes these Huntsville biotech companies will continue to expand since they have viable products with growing markets: “There seems to be more of a can-do attitude [in the Huntsville companies] and they have [the] philosophy that, to be successful, a company must first have a marketable product. Sales dollars can then be used to fund further research and development.”

But of all the “spin-ins” and "spin-offs" associated with the space program in Huntsville, some of the most valuable are the biotechnology industry itself and the creative scientists and business executives associated with it who choose Huntsville as a place to live, start, and grow their businesses. And the “spin” starts here – in Huntsville.

Dauna Coulter

12

13 December 2003 Initiatives

Initiatives December 2003

Cultivating Investment Capital availability must grow with technology

G

ot a great idea for a biotechnology firm? You can start it in Huntsville with a patent, a plan, and persistence.

Huntsville’s biotech investment community is small and intimate. A group of angel investors that you can count on one hand form a nucleus of financial backing for some of Huntsville’s more recent biotech ventures.

Industry insiders agree that a large venture capital base for biotech could provide the significant funding for both new and expanding firms. An expanded base would need the ability to invest perhaps $200 million dollars, which can be a difficult challenge in a tepid economic climate.

“We need more angels to form a viable venture capital fund,” says local attorney Scott Ludwig, working with several biotech firms. “It’s going to be tough to grow the industry without it.”

Applied Genomics CEO Rob Seitz sits on the board of the Alabama Biotechnology Association, founded in 1997 to support Alabama’s emerging industry. From that vantage point, as well as his own experience, he understands why many investors balk at biotechnology ventures. A biotech startup can burn through millions of dollars before its products become marketable. “Biotechnology [industry] in Huntsville is still very narrow and may require many more investment dollars before a big payoff comes.”

Huntsville, says Seitz, does have a larger group of investors who are willing to invest in the industry. His firm recently received a second round of

funding from a group of local doctors, lawyers, and others. “There is a group of people out there who will pony up cash for something they think is technically exciting and will make money,” he says.

Help in forming and growing biotechnology firms is available from other sources as well. Ludwig is part of a quintet of legal and financial professionals that advises the local biotechnology community on business and legal matters. He and Hall Bryant, both partners in the same

local law firm, provide legal assistance, while Robby Robinson and Rick Aboudonia of a local investment brokerage office assist in raising capital and related issues. Gary Anglin, a local certified public accountant, is the fifth member, bringing financial expertise to the quintet.

Much of their work, says Ludwig, is pro bono. “We’re not taking any money or equity,” he says. “We just want to see this industry grow.”

Mike Kelley 17 Initiatives December 2003

Economic Indicators POPULATION

Economy At-A-Glance

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

35-Mile Radius

1980 Census ........................................196,966

145,604

6,081

242,971

439,023

1990 Census ........................................238,912

161,842

16,813

293,047

505,967

2000 Census ........................................276,700

158,216

29,329

342,376

581,506

2003 Estimate ......................................287,117

159,636

*34,260

355,488

2008 Projection ....................................302,734

164,335

*39,729

% Growth 1980-2003 ............................45.8%

9.6%

463.4%

SEPT 2003

SEPT 2002

Total Non-ag Employment .......................................................... 180,000

184,300

Mining & Construction .................................................................... 7,200

6,900

598,007

Manufacturing .............................................................................. 31,300

33,300

375,964

626,450

Trade, Transportation & Utilities .................................................... 26,500

n/a

46.3%

36.2%

Information ...................................................................................... 2,500

n/a

Financial Activity ............................................................................ 5,500

5,000

Professional & Business Services ................................................ 31,800

n/a

Education & Health Services ........................................................ 11,400

n/a

Leisure & Hospitality...................................................................... 15,500

n/a

Households 2,040

EMPLOYMEN T*

82,440

150,864

Huntsville Metro Area**

1980 Census ..........................................67,082

51,113

1990 Census ..........................................91,208

63,838

6,681

110,893

191,654

2000 Census ........................................109,955

66,742

11,143

134,643

229,284

2003 Estimate ......................................114,811

68,070

*13,175

140,703

237,445

2008 Projection ....................................123,387

71,672

*17,083

151,677

253,191

Other Services ................................................................................ 7,200

n/a

% Growth 1980-2003 ............................71.2%

33.2%

545.8%

70.7%

57.4%

Government .................................................................................. 41,100

40,900

**Includes Madison & Limestone counties Source: Alabama Department of Industrial Relations (Place of work figures)

Race 2003 Population Estimate ....................281,117

159,636

*34,260

355,488

598,007

White ......................................................70.8%

63.3%

77.8%

73.2%

79.5%

Black ......................................................23.7%

31.0%

14.8%

21.7%

16.0%

Asian & Pacific Islander ............................2.0%

2.3%

3.7%

1.7%

1.2%

Other Races..............................................3.6%

3.4%

3.8%

3.5%

3.4%

Average Household Income ................$63,021

$61,025

$77,962

$60,858

SEPT 2003

Huntsville Region (Counties)

SEPT 2002 147,860

Limestone...................................................................................... 31,160

30,130

$56,892

Jackson ........................................................................................ 25,700

25,180 39,490

Median Household Income ..................$48,301

$48,324

$66,509

$46,754

$45,052

Marshall ........................................................................................ 39,910

Per Capita Income ..............................$25,450

$26,384

$29,896

$24,362

$22,809

Morgan .......................................................................................... 57,810

55,440

Median Age ................................................36.5

38.3

34.9

36.6

37.7

Franklin, TN .................................................................................. 20,450

18,810

Giles, TN........................................................................................ 16,220

15,650

Lincoln, TN .................................................................................... 15,260

14,740

Huntsville Regional Total ........................................................ 351,420

347,300

Source: ESRI Business Information Solutions, 2003; U.S. Census Bureau (www.census.gov) * City of Madison estimate comes from City of Madison

* Based on place of residence.

Source: Alabama Department of Industrial Relations, Tennessee Department of Employment Security

RETAIL SALES Huntsville Region - (000’s) 2002 Annual Retail Sales Madison Co.

Total Retail Sales

Food & Restaurants

Furniture & Merchandise

Automotive

$3,910,205

$736,594

$908,076

$978,414

Limestone Co.

$619,484

$141,111

$131,142

$132,976

Jackson Co.

$468,707

$117,990

$102,509

$89,452

Marshall Co.

$1,242,376

$164,795

$229,099

$579,074

Morgan Co.

$1,448,374

$287,895

$258,605

$419,366

Lawrence Co.

$245,369

$58,321

$38,133

$32,547

Giles Co. (TN)

$278,739

$56,429

$32,025

$84,589

Lincoln Co. (TN)

$300,730

$50,192

$65,715

$94,805

Franklin Co. (TN) Regional Total

$311,996

$102,760

$60,773

$54,711

$8,825,980

$1,716,087

$1,826,077

$2,465,934

(cumulative to date)

# of Projects

SEPT 2003 Square Feet

SEPT 2002 $ Value

# of Projects

Square Feet

4,319,000

$327,958,000

1,275

4,040,000

$348,853,000

Commercial ........................................ 93

764,000

$49,988,000

121

1,143,000

$90,536,000

Manufacturing .................................... 10

67,000

$4,193,000

18

497,000

$43,318,000

Single Family .................................... 968

2,070,000

$79,690,000

983

2,102,000

$79,533,000

Multi-Family ........................................ 44

541,000

$26,772,000

3

17,000

$684,000

SEPT 2002

% Change 02-03

Index

United States...............................................................185.2

2.3%

181.0

1.5%

South Region...............................................................178.3

2.4%

174.2

1.2%

All Urban Consumers

The Boeing Company . . . . . . . . . . . . . . . .3,000 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . .2,800 NASA Marshall Space Flight Center . . . . . .2,754 DaimlerChrysler Corporation . . . . . . . . . . .2,500 City of Huntsville . . . . . . . . . . . . . . . . . . . .2,186 Madison County Schools . . . . . . . . . . . . . .1,936 Intergraph Corporation . . . . . . . . . . . . . . . .1,750

The Huntsville/Madison County economy is known as one of the strongest economies in the South, with low unemployment, strong job growth, and income levels leading the region.

Business growth and investment from U.S. and international companies have made Huntsville/Madison County one of the country’s top “hot spots” for growing a business and raising a family.

Sanmina-SCI

. . . . . . . . . . . . . . . . . . . . . .1,700

Walmart/Sam’s Stores . . . . . . . . . . . . . . . .1,581 Northrop Grumman . . . . . . . . . . . . . . . . . .1,350 Teledyne Brown Engineering . . . . . . . . . . .1,338 Goodyear/Dunlop Tires . . . . . . . . . . . . . . .1,271 Lockheed Martin . . . . . . . . . . . . . . . . . . . .1,250 Computer Sciences Corporation . . . . . . . . .1,200 University of Alabama in Huntsville . . . . . . .1,112

SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,080 Madison County . . . . . . . . . . . . . . . . . . . . .1,073 Benchmark Electronics . . . . . . . . . . . . . . . . .921

Madison County .............................................................................. 4.4%

4.1%

Huntsville Region ............................................................................ 5.4%

5.1%

Target Distribution Center . . . . . . . . . . . . . . .750

Alabama .......................................................................................... 5.5%

5.7%

Crestwood Medical Center . . . . . . . . . . . . . .668

United States .................................................................................. 6.1%

5.6%

Madison City Schools . . . . . . . . . . . . . . . . . .644

* Based on place of residence.

Jacobs Sverdrup Technology . . . . . . . . . . . .800

Engelhard Corporation . . . . . . . . . . . . . . . . .600 Source: Alabama Department of Industrial Relations (www.dir.state.al.us) Tennessee Department of Employment Security (www.state.tn.us/labor-wfd)

Dynetics, Inc. . . . . . . . . . . . . . . . . . . . . . . . .600 Redstone Federal Credit Union . . . . . . . . . . .575 PPG Industries, Inc. . . . . . . . . . . . . . . . . . . .550

COST OF LIVING INDEX 2nd QTR 2003 Composite Grocery

TransHealth portation Care

Goods & Services

Index

Items

Housing

Utilities

Atlanta, GA

95.9

97.5

90.1

92.6

98.6

101.5

99.9

Huntsville, AL

92.7

98.7

76.9

91.9

102.1

86.5

102.3

Dallas, TX

96.9

97.2

92.4

89.2

99.7

101.2

101.8

Orlando, FL

97.6

102.8

89.6

98.5

95.5

95.9

103.1

St. Louis, MO

102.6

113.6

96.1

94.8

95.4

99.7

108.6

Washington, D.C.

134.8

114.3

188.9

108.6

122.4

121.3

109.2

Defense Huntsville/Madison County plays a key role in the U.S. Army’s technology development programs. More than half of the Army’s weapons procurement budget is managed by Huntsville-based operations as are more than half of the Army’s foreign weapons sales. More than 25,000 people are directly employed by the military and support contracts.

West Corporation . . . . . . . . . . . . . . . . . . . .1,100

SEPT 2002

CAS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .502 Source: Chamber of Commerce

HOME SALES Source: F.W. Dodge – Printed with permission.

SEPT 2003

Huntsville City Schools . . . . . . . . . . . . . . .3,000

SEPT 2003

Source: American Chamber of Commerce Researchers Association. (www.accra.org)

Index

Huntsville Hospital System . . . . . . . . . . . . .4,355

Aerospace Huntsville/Madison County is home to the NASA Marshall Space Flight Center and has representation from nearly every major U.S. aerospace corporation, with over 90 companies employing more than 11,000 people in the local aerospace industry.

Electronics Over 300 international and domestic corporations in Huntsville/Madison County are involved in the design and production of electronics and computer-related technology, including CINRAM, one of the world’s largest manufacturers of DVD products.

Research & Technology Huntsville’s Cummings Research Park is the country’s 2nd largest research and technology park, containing 220+ companies employing 22,000 people involved in technology research and development.

$ Value

Total Const. Contracts .................. 1,263

CONSUMER PRICE INDEX

U.S. Army/Redstone Arsenal . . . . . . . . . .11,141

Alabama A&M University . . . . . . . . . . . . . . .890 UNEMPLOYMENT RATE*

Source: Sales & Marketing Management, 2003 Survey of Buying Power – Printed with permission.

CONSTRUCTION ACTIVITY

LEADING EMPLOYERS

ADTRAN . . . . . . . . . . . . . . . . . . . . . . . . . .1,700 LABOR FORCE * Madison ......................................................................................144,910

Income & Age

Huntsville/Madison County, Alabama, is located in the middle of the southeastern United States with over 4 million people within a 100-mile radius. The Huntsville community serves as the primary economic hub of the north Alabama and southern Tennessee regions. The counties adjoining Madison County combine to form an eight-county regional market with a population totaling 700,000 people.

% Change 01-02

Source: Bureau of Labor Statistics, Atlanta, GA., December 1982=100 base. (http://stats.bls.gov/cpihome.htm)

SEPT 2003

SEPT 2002

Houses on Market.............................................................................. 3,714

3,697

Houses Sold & Closed.......................................................................... 693

473

Avg. Selling Price.......................................................................... $134,794

$132,703

Avg. Days on Market..............................................................................150

123

Median Sales Price........................................................................$117,900

$114,700

Manufacturing Huntsville/Madison County’s manufacturing industry represents a diverse mix of technology assembly and production operations from both domestic and international corporations, comprising one-fourth of the local employment base.

Source: Huntsville Area Association of REALTORS (Realtor-listed properties only)

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19 December 2003 Initiatives

Initiatives December 2003

Tools of the Trade

Crystal Clear

UAH Laboratory for Structural Biology well-equipped

Huntsville becoming known for X-ray Crystallography

T

he Laboratory for Structural Biology at The University of Alabama in Huntsville (UAH) has all of the important ingredients to positively impact the combat of disease around the world: people, place, and purpose.

Dr. Ed Meehan, director of the lab, says Huntsville is quickly becoming known as a world-class center for X-ray crystallography. X-ray crystallography allows scientists to see the three-dimensional structures of biological molecules.

These structures then can be used to

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guide the development of new pharmaceuticals.

Scientists in the UAH lab have a number of experiments underway. They recently published the results of one of these experiments in collaboration with Janet Hemingway of England, chair of a World Health Organization (WHO) committee on pesticide use.

UAH scientists took genes from an Anopheles mosquito provided by the University of Wales. They introduced the genes into bacteria where proteins were expressed. The proteins were crystallized, and UAH scientists used X-ray crystallography to determine the protein’s threedimensional crystal structure. Meehan says the structure of the protein became apparent through X-ray diffraction analysis at both UAH and the Synchrotron X-Ray Beam facility at the Argonne National Laboratory.

UAH scientist Pam Hall made the proteins and crystals and also collected some diffraction data. Dr. Liqing Chen, an assistant research professor in chemistry, collected additional diffraction data and solved the puzzle of how atoms from the mosquito’s proteins work together to ward off the effects of pesticides.

Information about the three-dimensional structure has been made available

UAH’s Laboratory for Structural Biology is at the forefront of X-ray crystallography and has brought some of the world’s leading experts in that field to Alabama.

This laboratory is capable of gene cloning, over expression, purification and crystallization of proteins. The diffraction facility includes a Rigaku rotating anode generator, R-AXIS IV area detector, X-stream cryogenic system, and a single-crystal diffractometer. The recent completion of a Nuclear Magnetic Resonance laboratory has added to the university’s capabilities. On top of that, UAH has access to Argonne National Laboratory, which is the best source of X-ray diffraction in the world.

The presence of this equipment and these technologies allows the university to support leading biological research in the UAH lab as well as in Huntsville’s growing biotechnology industry.

continued on page 22

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21 December 2003 Initiatives

Initiatives December 2003

Crystal Clear . . . continued from page 21

to Hemingway. Using the UAH data she will attempt to design new pesticides which will have more success at eradicating the malariabearing Anopheles mosquito, perhaps curbing the growing threat of one of the world’s most dangerous and deadly diseases.

The worldwide benefits are potentially huge, according to Meehan. While malaria isn’t a major public health problem in the United States, it is one of the largest killers in the world.

The World Health Organization estimates that one million people a year die from malaria. The disease is estimated to affect 300 to 500 million people each year and is considered a public health problem in more than 90 countries, including 21 in the Western Hemisphere. The disease also is a major concern for the U.S. armed forces, which have troops stationed in many of those countries.

UAH’s investment in the capability to work at the leading edge of biological research, through tools like X-ray crystallography, will continue to enhance the environment for the biotech industry not only in Huntsville but around the world.

Ray Garner 22

23 December 2003 Initiatives

Initiatives December 2003

Member Developments

Member Developments

Dreamland Bar-B-Que Ribs, home of world famous bar-b-que ribs and legendary sauce, is now open at 3855 University Drive. In addition to ribs, they serve chicken, pork, baked beans, potato salad, coleslaw and fresh made banana pudding. Also offering offsite catering!

Alabama Neuro Medical practice recently celebrated the grand opening of its

The Men’s Wearhouse has relocated to The Westside Shopping Center at 2675

new facility at 8121 Madison Boulevard. Specializing in migraines, neuropathy, low back and neck pain, and other neurological disorders, new patients are now being accepted.

University Drive near Bed Bath and Beyond. Come by and see our new store.

Home Buddies, The Caring Connection, celebrates 20 years of compassionate

EG&G celebrated its newly opened Huntsville office with a ribbon cutting ceremony on October 22. EG&G is a government contractor providing support to MSFC and AMCOM.

Household Finance celebrated the opening of their new location in Huntsville at 11220 Memorial Parkway South, Suite N. Call 650-7274 for more information.

Reflections Boutique & Consignment, located at 805 Regal Dr. Suite 10 near

Rocket Harley Davidson, now under new management, celebrated their ribbon cutting ceremony on September 18. For more information come by (take I-565 W, exit 3, Greenbriar Road) or call 256-340-7333.

R & S Custom Flooring celebrated their move to a new location at 2745-A Bob Wallace Avenue with a ribbon cutting and reception for friends and customers. It was a wonderful night with fabulous food and a chance to preview quality flooring.

SK Fiber Golf recently celebrated with a ribbon cutting ceremony at 1796

care for sick and elderly in their home or hospital. We also provide permanent and temporary nannies for children.

Century BMW celebrated their Grand Opening on October 16 with a charity event benefiting the American Heart Association. The celebration venue was their new state of the art 24,000 sq. ft. BMW sales and service facility located at 3800 University Drive.

Masters Taekwondo Academy celebrated its grand opening on October 15.

Specializing in martial arts instruction for children and adults directly from Grand Master Al Smith, day and evening classes are offered. Call 536-2626 for more information.

Parkway Place Mall, celebrated the opening of their new gift shop selling unique, inexpensive gifts. In addition to the new gift shop, they still have their wellstocked consignment shop.

Sportsman Lane. If you’re a golfer or know a golfer needing to improve their game, stop by soon. Call 864-1900 or visit them on the Web: www.skfiber.com.

25

24 December 2003 Initiatives

Initiatives December 2003

The Chamber of Commerce

Board of Directors and Executive Committee 2003 Elected Board Howard Thrailkill, Chair Pete Apple Joe Austin Scott Averbuch Barbara Buice Watson John Cooper Joel Daves Wyn Dobbs Marshall England Dick Fountain Dr. Greg Gum Bill Gurley Michael Hall Richard Holloway Dr. Eric Janssen William Johnston, Jr. Donna Lamb LTG James Link (Ret.) Jerre Penney Joe Ritch Remigius Shatas John Stallworth Paula Steigerwald William Stender Irma Tuder Johnnie Vann Peter Voetsch Jean Wessel-Templeton Bill Watson Keith Wilson

Executive Committee

Y Y Y Y Y

Y

Fully furnished studio & penthouse suites Convenient to everything.

Flexible lease terms with substantial savings over hotels; Monthly rates available; All utilities, phone, and cable included.

Variety of amenities available, pool, jacuzzi, membership to local fitness center, and more.

Optional daily and weekly housekeeping services.

Packages tailored to meet the needs of the Business Traveler, Relocator, Home Buyer, Leisure Traveler or anyone in need of temporary housing. Ask about our Birthday and Anniversary packages.

Daily Complimentary continental breakfast; guest laundry on-site.

Y Evening social (Monday through Thursday) Y Complimentary airport shuttle.

4020 Independence Dr Huntsville, AL 35816 256•837•8907 or www.guesthouseintl.com

26 December 2003 Initiatives

Howard Thrailkill, Chair Tommy Beason, Chair-Elect Ronald W. Boles, Past Chair Chairman Mike Gillespie, Chair-Appointed Bill Gurley, Chair-Appointed Dave Hargrove, Vice Chair Res. Dev. & Finance William Johnston, Jr., Vice Chair Membership Brad Jones, Vice Chair Workforce Development Raymond Jones, Jr., Secretary LTG James Link (Ret.), Vice Chair Government Affairs James Makemson, Chair-Appointed Scott Seeley, Treasurer Mayor Loretta Spencer, Chair-Appointed Karen Stanley, Vice Chair Small Business Brian Hilson, President/CEO Jeff Thompson, COO

Chamber of Commerce Huntsville/Madison County 225 Church Street Huntsville, Alabama 35801 (256) 535-2000 www.hsvchamber.org www.huntsvillealabamausa.com

PRSRT STD U.S. Postage PAID Permit# 206 Huntsville, AL