Kalexsyn, Inc: your science deserves the best scientists

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Good chemistry

Business Review Western Michigan
April 7, 2005

And now, for a success story. Or, at least, one in the making. David Zimmermann and Robert Gadwood, CEO and President-COO respectively of Kalexsyn, told the Kalamazoo Kiwanis last week their tale owes a lot to experience and know-how, and a bit to luck. After all, when venture capitalists early on asked the pair what the exit strategy was for their start-up idea, Zimmermann said they had to reply, "Well, we don't have one." But they did know that by 2010 outsourcing will claim some 40 percent of pharmaceutical R&D. And that work to CROs - contract research organizations - would increase 10 percent through 2009. Since mid-2003, Kalexsyn has landed state loans, grants from Southwest Michigan first and the Biosciences Research and Commercialization Center and were selected for "support," along with only two other companies, from Pfizer Inc. That last honor translated into gaining some very expensive lab equipment. On top of financial help, the pair received pro bono assistance fiom Kalamazoo area lawyers, CPAs, insurance professionals and experienced CEOs in getting started. 'We're the Kelly Girls of chemistry," Zimmermann joked, adding, "we're construction workers with molecules." Kalexsyn essentially "takes another company's early hit" and develops it, he explained. It boasts some 30 customers worldwide, mostly small to mid-sized pharmas that do discovery research but can't afford a larger staff. Kalexsyn scientists - three of whom hold some 320 patents among them - now hang their hats at Western Michigan University's Business Technology and Research Park. But the company expects to break ground on its own building next March, where it eventually will expand to 50 chemists. When asked for advice they might have for Lansing, Zimmermann noted a better course would be to entice Pfizer, Eli LiUy and Co. and other industry giants to keep more of their work for CROs in this country ... and especially in Michigan. Sounds like another good idea.