LA BioMed, a biomedical research institute based in Torrance, has sold $50 million in bonds to construct and equip a new bioscience research building and incubator for startup companies.
The 66-year-old institute announced Aug. 28 it had closed on the sale of $49,835,000 series 2018 tax-exempt revenue bonds, issued by the California Health Facilities Financing Authority.
“We couldn’t be more pleased with the overwhelming positive response,” said David Meyer, chief executive of LA BioMed, in a statement. “The proceeds will help us create new innovation biomedical solutions with a new research building, biotech incubator and a campus that facilitates the bed-to-bench-to-bed cycle of innovation we have nurtured at LA BioMed.”
Demand for the institute’s first bond sale, led by Wells Fargo Securities, was more than twice the size of the original offering, the institute said.
The new funds will finance capital improvements at the 12-acre LA BioMed campus next to Harbor-UCLA Medical Center.
They include the construction and outfitting of a $63 million, four-story bioscience research building and 18,000-square-foot incubator for up to 30 new biotech firms slated to open in February 2019.
The Los Angeles Biomedical Research Institute, a nonprofit founded in 1952, now houses more than 400 scientists working on more than 600 research projects, including treatments for debilitating and fatal rare inherited diseases. To date, it has launched 13 spin-off companies.
Health business reporter Dana Bartholomew can be reached at firstname.lastname@example.org. Follow him on Twitter @_DanaBart.