Southern Research awards $2.7 million in grants to support Alabama biotech jobs

Eight companies including several based in Birmingham and Huntsville will receive $2.7 million in grants from Southern Research to support biotech development and expansion.

The investments through Southern Research’s Therapeutics Development Fund are expected to add more than two dozen high-paying jobs in Alabama as well as support the efforts of dozens of scientists, officials said.

“The Therapeutics Development Fund is playing a critical role in our effort to enhance the biotech industry in Alabama by supporting innovators who are already here and those who are willing to move here,” said Josh Carpenter, Southern Research CEO. “We are excited to leverage our 80 years of experience and expertise to support startups who want to advance their programs in Birmingham’s rich biotechnology ecosystem.”

The fund is designed to attract biotech firms to Alabama and connect in-state startup companies with resources they need to stay in Alabama.

The grants from Southern Research are a result of the Innovate Alabama Tax Credit.

Beneficiaries also include two companies headquartered out of state that have committed to move to Alabama.

A second round of more than $3 million in funding will be issued later this year to support additional existing companies and new ventures in 2024 into 2025.

The Innovate Alabama Tax Credit was included in Gov. Kay Ivey’s signature economic development legislation in 2023, “The Game Plan,” which included economic development incentives to support innovation.

“Through this program, we can continue to serve the innovative small businesses of Alabama and show that our state is open for business to other such companies looking to relocate,” said Innovate Alabama CEO Cynthia Crutchfield. “We are dedicated to working with governmental leaders to create a ripe ecosystem for tech accelerators and businesses to thrive.”

Southern Research ultimately expects the fund to create 139 biotech jobs, support about 700 additional jobs, and create $9 million in economic impact for Alabama.

In addition to launching the Therapeutics Development Fund, Southern Research has opened its “Station 41″ incubator and accelerator spaces to support biotech startups. The agency is building a new building to expand research space and is working with local partners to develop a Birmingham Biomedical Innovation Corridor on the site of the former Southtown Court public housing community.