IBJNews

Work stops on Greenwood pharmaceutical plant

Back to TopCommentsE-mailPrintBookmark and Share

Construction has stopped on a pharmaceutical facility being built with a $6 million loan from a suburban Indianapolis city.

Greenwood city attorney Krista Taggart says the city could foreclose on the Elona Biotechnologies facility within the next few weeks unless new investors take over the company. Taggart tells the Daily Journal in Franklin that the city is exploring all its options for the facility near Interstate 65 where insulin was to be produced.

Greenwood officials three years ago approved $8.4 million of incentives for the project, including the construction loan. Elona said then it expected to employ some 70 workers and spend more than $25 million on a planned expansion.

Elona told Greenwood officials of financial troubles in late January. In February, the company said that it had reached a deal under which the company would be acquired by private investors.

The newspaper reports the company founders didn't return messages and that its phone number has been disconnected.

ADVERTISEMENT

  • Too Good To Be True
    This company didn't go out of business overnight. They were in trouble from the start because savvy investors were much smarter than the politicians that gave away millions of dollars for and idea that couldn't work. The did not do due diligence on this project and there was no way it would ever get off the ground. The insulin manufacturing process is difficult, expensive and requires more than one ex-Lilly employee. The amount of money that was proposed wouldn't have gotten rhe job done and the FDA would not have approved the product if had actually been produced. Poor judgment all the way around.
  • Incentives
    I would like to know who is reviewing the deals for the incentives these cities are giving out. How much money has been wasted (thrown away) because the proper due diligence was not completed? My guess is there were all kinds of red flags in the financials and business plan of this company (Elona). A company just does not go out of business overnight without some shenanigans going on. Politicians have really fallen in love with these pie in the sky deals, at the tax payers expense.
    • City lost $13 million in unsupervised research gift
      Looking at this, the Greenwood City government played the role of investor with tax payer money into a speculative research project. No neutral input was received from persons with medical research knowledge. Venture capitalist, people who know how to invest and make money, have not put up funds. Basically, the city government is unqualified to make investment decisions...but took and lost millions(13 million on the Elona web page). We need to stop government from being stupid with taxpayer money.

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. I am so impressed that the smoking ban FAILED in Kokomo! I might just move to your Awesome city!

    2. way to much breweries being built in indianapolis. its going to be saturated market, if not already. when is enough, enough??

    3. This house is a reminder of Hamilton County history. Its position near the interstate is significant to remember what Hamilton County was before the SUPERBROKERs, Navients, commercial parks, sprawling vinyl villages, and acres of concrete retail showed up. What's truly Wasteful is not reusing a structure that could still be useful. History isn't confined to parks and books.

    4. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

    5. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

    ADVERTISEMENT