A cutting-edge nanotechnology company that holds the potential
to stem human suffering around the world has picked Gilroy for its
corporate headquarters.
Dennis Taylor – Special to the Dispatch
ed****@****ic.com
GILROY
A cutting-edge nanotechnology company that holds the potential to stem human suffering around the world has picked Gilroy for its corporate headquarters.
But the challenge for local business and civic leaders will be to keep it here.
In 2008, Gilroyan Ooster Raza, OmegaGenesis’ chief executive officer, established administrative headquarters here, lab facilities in Minnesota, and clinical trial facilities in India. The startup works with rare earth elements – in particular, europium – in the form of nanorods – microscopic structures much smaller than a human hair. The nanorods’ possible medical applications are myriad and the company puts Gilroy on the leading edge of the fight against disease.
Europium hydroxide nanorods are the company’s first and one of their most promising technologies. The nanorods can stimulate the growth of new blood vessels from existing blood vessels. These nanorods could be injected into diabetic patients with foot ulcers – which often go unnoticed, become infected and end up being amputated – to revive the dying tissue.
Other future medical applications of the nanoparticles include the potential to treat coronary artery disease. The nanorods could stimulate new blood vessel growth for patients suffering from blocked or constricted blood vessels that supply oxygen to the heart. Nanorods might also be able to spur bone growth and help with diagnostic imaging.
Conversely, OmegaGenesis is looking at other nanorods to suppress blood vessel growth. These so-called angiogenesis inhibitors could be injected into a cancerous tumor and destroy the blood vessels that normally deliver oxygen and nutrients – effectively starving the tumor.
The company has licensed the technology and conducted tests in animals, Raza said. The element was found to be nontoxic and the company hopes to begin clinical trials on humans this summer. The company is hopeful that its partnership with the Mayo Clinic and the national trend of continuing investment in medical device companies will mean OmegaGenesis will find a venture capitalist soon. The company estimates that the market for all its product lines could top $35 billion in the United States alone.
As promising as this technology may be, there’s no guarantee Gilroy will continue to be a part of it. As much as Raza would love to maintain a corporate headquarters in Gilroy, he is realistic about the chances.
“I live in Eagle Ridge and like living in Gilroy,” Raza said. “But there is no base here. What you have to do is create a business park for biopharma, or solar technology, but you have to have a business park.”
The company uses a facility in Los Gatos and is also considering Morgan Hill, which boasts a higher number of college graduates than Gilroy, Raza said. Morgan Hill has business parks in place, thanks to a proactive redevelopment agency that was able to retain more tax revenue and invest it in infrastructure.
Larry Cope, president and CEO of the Gilroy Economic Development Corporation, said he is aware of the challenges facing Gilroy in its attempts to lure technology and biotechnology companies – along with the higher-paying jobs they would bring.
“The competition from communities with RDAs – Morgan Hill, San Jose – causes us headaches,” Cope said. “Big checks are written by those communities around us, and sometimes having an RDA seals the deal.”
At the same time, Cope said he is working hard to put together “all the pieces of the puzzle” that would make this area attractive to companies. The EDC has worked with city staff, elected officials and Gavilan College to provide incentives for companies to locate in Gilroy.
Gilroy does have some tools working in its favor, Cope said, including Gavilan College’s biotechnology certificate program, which will produce its first crop of graduates this summer.
After completing the 17-unit course, graduates are trained to work as lab technicians in biotechnology or biopharmaceutical companies, said Jan Bernstein-Chargin, Gavilan College’s spokeswoman. Interest in the certificate program has been strong and will provide the skilled workforce companies look for.
“It says something about the community if it is prepared and are training technicians,” Cope said.
As an additional added bonus, Gilroy offers a high quality of life, Cope said.
“Gilroy needs to focus on its (relatively low) housing costs and quality of life issues,” Raza said, an avid golfer who enjoys the bevy of nearby courses.
Cope noted that Gilroy is also perched on a crossroads, with accessibility east to state parks, west to mountains and beaches, and north to San Jose where existing suppliers and end users are located.
“Gilroy is literally at the intersection of technology and agriculture,” Bernstein-Chargin said.
Local companies on the cutting edge of biotechnology include a new biofuel company and Goldsmith Seeds, which has long been a force in agricultural development. The 1,500 to 2,000 tons of agricultural waste Gilroy generates each year is a great source of biofuel, Cope said.
“We bring technology of the Bay Area to the Salinas Valley,” he said. “Even if the research and development is in Menlo Park, it would make sense for the production facilities to be here,” Cope said.
Changing Gilroy will take community involvement, Raza said. The area is full of smart technologists who work in Silicon Valley but live in Gilroy. He suggested residents form an advisory committee of volunteers who work in various subsectors of technology to explain to city leaders what programs they would need to pursue to successfully lure companies.
“Gilroy needs to have a proactive policy about which businesses to attract and go out and beat the drum for it,” Raza said.
OmegaGenesis and nanotechnology
– What is OmegaGenesis?: It is a national company based in Gilroy that specializes in nanotechnology.
– What’s nanotechnology?: The science of using or developing materials or techniques that involve structures that are about 100 nanometers large.
– How big is a nanometer?: A human hair is about 100,000 nanometers wide. A nanometer is 1/100,000 the width of a human hair.
– What does OmegaGenesis do?: Uses rare earth elements to create nanorods, which can possibly used for medical applications.
– What’s a rare earth element?: These 17 elements, all derived from a specific ore, have a misleading name. They are actually plentiful in the earth’s crust. However, when they were discovered in Ytterby, Sweden, in the late 1700s, they were known to exist in only one mine.
– What do nanorods do?: Certain nanorods have particular effects. Europium hydroxide nanorods appear to trigger new blood vessels to sprout off existing blood vessels. Conversely, other nanorods have the opposite effect, killing specific blood vessels.
– How could this help me?: Stimulating new vessel growth can help many people, including diabetics who suffer from foot ulcers. This problem can lead to infection and is responsible for 86,000 amputations each year in the U.S., according to the National Institutes of Health. Conversely, destroying blood vessels could be helpful in fighting cancer. Nanorods could be injected into a tumor and destroy the blood vessels that normally deliver oxygen and nutrients – effectively starving the growth.
– When will I see this technology put to use?: The company has secured initial investors and is now looking for a second round of venture capital. With this money, it plans to run clinical trials, which could begin this summer.
