Amgen rejigs Bay Area presence with deal for new R&D facility

Amgen's Gateway of Pacific building in South San Francisco (Business Wire)

Amgen has signed a lease on a 240,000-square-foot facility in South San Francisco, positioning it to join AbbVie in a new campus. The nine-story building will house Amgen’s Bay Area employees when it opens early in 2022.

Today, Amgen leases seven buildings covering 684,000 square feet in the Bay Area, although some of this space is subleased to third parties. With those leases due to end between December 2021 and December 2023, Amgen has put in place new deals to secure its future in the Bay Area, modifying the terms of its current arrangement while forming an agreement with BioMed Realty for new space. 

The BioMed Realty deal will give Amgen a long-term lease on 240,000 square feet of space that is under construction at the Gateway of Pacific campus at Oyster Point. Amgen expects to move its Bay Area cardiometabolic, inflammation and oncology researchers into the digs in 2022. The scientists will work out of a site that has “modular green wet labs and green molecular lab design.”

Whitepaper Download

Reducing the Complexity and Costs of Channel Planning and Logistics

How can you make the process of bringing your product to market less complex while also reducing costs? This Whitepaper identifies opportunities to simplify channel strategies for biopharma companies, their customers and patients. Discover how you can deliver savings and innovation to your business.

Amgen is the second big biopharma company to commit to the Gateway of Pacific campus. AbbVie snapped up 94% of the 509,000 square feet of space BioMed Realty is creating in the first phase of the project. Amgen’s 240,000-square-foot facility will take up the north tower of the second phase of the project, which will provide 440,000 square feet of space in total. Construction of a third phase of the project, which will add a further 350,000 square feet of space, began recently. 

In conjunction with the deal for new space, Amgen has revised the terms of its existing leases with Healthpeak Properties. The lease on three buildings on Veterans Boulevard, which was due to expire in two years, is now due to run until the end of 2029. However, Amgen can terminate the lease on the 257,000 square feet of space in two tranches in 2022 and 2024. 

“With this amendment, Amgen retains flexible rights to continued occupancy at several important research and development facilities, while providing Healthpeak the clarity needed to advance discussions with prospective tenants looking for space at this irreplaceable campus,” Healthpeak Chief Financial Officer Pete Scott said in a statement.

Suggested Articles

The clinical testing giant LabCorp will now begin rolling out a blood test for lung cancer developed by Resolution Bioscience.

Silverback Therapeutics reeled in $85 million to advance its lead antibody-drug conjugate through the clinic and develop its earlier-stage pipeline.

Cognoa aims to equip pediatricians with an AI-powered app that can spot the signs of autism, allowing them to diagnose in the doctor's office.