Montgomery County land swap deal with United Therapeutics shows County’s commitment to life science businesses in Maryland
December 17, 2023
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In a strategic move aimed at revolutionizing organ production and addressing the global shortage of transplantable organs, United Therapeutics Corp. (NASDAQ: UTHR) is set to establish a major organ production facility at its Silver Spring biotech campus. The groundbreaking initiative is part of a proposed land swap with Montgomery County, marking a significant expansion of the company’s footprint in the region.
United Therapeutics has entered into a general development agreement with Montgomery County, agreeing to trade several parcels it currently owns for a county-owned site spanning 3.8 acres adjacent to its existing headquarters at 1000 Spring St. The county-owned site, currently occupied by a parking garage and other county operations, has the potential to accommodate up to 831,000 square feet under existing zoning regulations.
While the exact details of the facility, including the number of buildings and total square footage, are yet to be determined, the envisioned expansion is described as a “fairly significant” increase in employment for Silver Spring. Dewey Steadman, United Therapeutics’ Head of Investor Relations, emphasized the company’s commitment to bringing commercial-scale organ production to Silver Spring, providing a substantial runway for the realization of their vision.
Addressing Global Organ Shortage:
United Therapeutics recognizes the immense potential to alleviate the worldwide shortage of organs available for transplantation through this expansion. The company’s Revivicor subsidiary, based in Blacksburg, Virginia, has achieved successful transplants of pig hearts and kidneys into humans. This pioneering effort aims to capitalize on the growing demand for transplantable organs and positions United Therapeutics as a key player in the biotech industry.
CEO Martine Rothblatt’s strategic focus on developing transplantable organs aligns with the company’s broader goal of diversifying revenue streams. With increasing generic competition for multiple drugs, the organ production business line becomes crucial for United Therapeutics’ long-term success. The company’s investment in organ production facilities, including the new Silver Spring site and a facility in Southwest Virginia, underscores its commitment to advancing cutting-edge therapies and securing regulatory approvals for clinical trials.
The land swap agreement, subject to review through the county’s disposition process and subsequent approval by local legislators, entails a commitment from United Therapeutics to invest a minimum of $50 million in any new facility built on the acquired site within 15 years of ownership transfer. County Executive Marc Elrich expressed strong support for the company’s future growth in Silver Spring, highlighting the positive impact on the long-term vibrancy of Downtown Silver Spring.
The parking garage at 1200 Spring St., currently serving multiple county operations, will be replaced by United Therapeutics. The company will bear the cost of relocating the county transportation department parking operations facility and a county fiber hub to alternative locations owned or contracted by United Therapeutics.
Despite the substantial nature of the land swap, no money will change hands in the deal. The existing parking garage, appraised at $45 million, will be replaced by properties valued at $66 million, including improvements to offset the loss. The financial aspects of the deal reflect a mutually beneficial arrangement for both United Therapeutics and Montgomery County.
United Therapeutics’ ambitious plan to establish a cutting-edge organ production facility in Silver Spring marks a significant milestone in the company’s evolution. This strategic move not only positions United Therapeutics as a leader in addressing the global organ shortage but also reinforces its commitment to advancing innovative therapies. As the biotech industry continues to evolve, United Therapeutics stands at the forefront, driving progress and shaping the future of organ transplantation and biotechnology.
