Novozymes Biologicals sets example for regional biotech companies

by Deborah Nason
For Virginia Business
September 2005

Novozymes Biologicals is probably the type of company promoters had in mind when they dubbed the Roanoke-New River Valley region “NewVa.” The biotech company focuses on cutting-edge technology and has provided leadership that could lead to the creation of a new area industry.

Novozymes, a subsidiary of a Danish company, produces industrial enzymes and microorganisms. Its products are found in industrial cleaning and odor control, municipal waste treatment, and animal health and plant care.

In 2002, Novozymes was the first company to move into the new Roanoke County Center for Research and Technology, midway between Roanoke and Blacksburg. Since 2001, the company’s work force has increased from 65 to 140 employees, and its annual revenue has climbed from $17 million to $50 million.

As the company grew, President Ted Melnik played a notable role in the region’s economic development. Now president of the NewVa Corridor Technology Council, he was instrumental in developing the council’s Technology Accelerator Forum in June and its first initiative, the Biodesign and Processing Research Center at Virginia Tech, which will focus on organic agriculture.

The idea for the center, says Melnik, came to him last January. The demand for organically grown produce is soaring on the East Coast, he notes. “It’s driving small farms, helping local economies — and no one’s doing a good job of developing biofertilizers and nonchemical tools for these farmers. There’s an unmet need.”

The research center, he says, is the result of the confluence of three factors: “First, we are in this business. Second, Virginia Tech has an agriculture school with an enthusiastic new dean [Sharron S. Quisenberry]. Third, Congressman [Bob] Goodlatte is the head of the congressional agriculture committee.”

The idea took off like wildfire. Melnik talked up the idea to anyone who would listen. And unbeknownst to him, Virginia Tech was already starting to work on the idea of a center. Melnik approached Goodlatte. “He liked it — and said ‘Talk to Virginia Tech and hurry! You have one week to prepare an appropriation request [for federal funding],’” Melnik says. The request was successful, to the tune of $950,000.

The development of the center demonstrates the power of regional collaboration. “There was nobody out there taking the lead for this. Why not us?” he says.