In exchange for $291 million in loans and grants from Connecticut taxpayers, Jackson Laboratory will share with the state a percentage of its royalties from any intellectual property it produces, according to a finalized agreement unveiled by both parties Thursday.
The royalty sharing agreement will be in addition to a promise by Jackson Labs to create at least 300 jobs in Connecticut within 10 years of the construction of its $1.1 billion personalized medicine laboratory at the UConn Health Center campus in Farmington.
Gov. Dannel P. Malloy announced the finalized agreement Thursday during a ceremonial bill signing to commemorate the deal, which was announced last year and approved by state lawmakers during the special jobs session in October.
Once the project is fully developed over 20 years, the institute is expected to employ 600 scientists and technicians in 250,000 square feet of state-of-the-art lab space.
In addition, as part of the public-private partnership, Jackson and the state have entered into a unique intellectual property (IP) sharing agreement that will give Connecticut Innovations, the state's quasi public technology investment arm, 10 percent of any net royalty proceeds from IP up to $3 million and 50 percent of any net royalty proceeds above $3 million starting in the 10th year and running for 15 years.
The Bar Harbor, Maine nonprofit biomedical research institution will also give preference to Connecticut residents when hiring if they meet all job qualifications.
The total 20-year capital and research budget for the institute is projected to be $1.1 billion. The state is providing $291 million in forgivable loans and research grants, while the remaining funds will be raised by Jackson Labs through federal research grants, philanthropy and service income.
The facility is expected to support 6,800 permanent jobs.