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2024 10 03

Housewarming at Kaunas Innovation Park: Welcoming the First Investor with a EUR 50 Million Fund

The Aleksotas Innovation and Industry Park, recognised as a nationally significant economic project, proudly announces its first investor: the biotechnology company Wellgem Biopharma. This exciting development was unveiled on Wednesday, alongside plans for new tenants in the life sciences sector in Kaunas and the introduction of the innovation park brand, ALEX.

Accelerating Biotechnological Development in Kaunas

The first investor and the largest tenant of ALEX Kaunas Innovation Park is Wellgem Biopharma, a biotechnology company working in the genetic engineering and biopharmaceutical sector. The company aims to establish a full spectrum of biotechnological production processes and product testing services in Aleksotas. Kaunas was chosen due to its strategic location and excellent connections with the rest of Europe.

Wellgem Biopharma, a biotechnology company working in the genetic engineering and biopharmaceutical sector, stands as ALEX’s flagship tenant, committing over EUR 50 million to develop a comprehensive suite of biotechnological production processes and product testing services in Aleksotas.

The Innovation Hangar (Europos pr. 27), spanning more than 7,000 square meters, providing administrative offices and collaborative workspaces for scientists. Our state-of-the-art facilities will include laboratories for cell cloning, biosynthesis, and purification processes, as well as dedicated areas for biopharmaceutical formulation, bottling, bioactivity testing, and quality control. Additionally, we will establish production lines for active pharmaceutical ingredients and dosage forms.

“We’re embracing the spirit of Kaunas – where speed meets opportunity. ALEX Park is a perfect environment for our growth and innovation. We have the right team in place, an experienced biotech company: both historically and from an industrial perspective. We will recruit the missing staff in Kaunas. Along with partnerships with LSMU, VMU, and KTU, we will attract the top talent from the region. With 1,000-1,500 biomedical science graduates emerging annually, we’re poised to meet our staffing needs and drive our mission forward,” stated Giedrius Žunda, Member of the Board of Wellgem Biopharma.

The core team at Wellgem consists of seasoned biotechnology experts with extensive experience in both Lithuanian and international markets. Their insights have guided the development of our innovative infrastructure and production lines. Customers will be offered bespoke solutions for platform technology biological products, designed with flexibility and adaptability in mind. Full-scale digitisation of our product processes is also on the horizon.

The company’s expansion is planned in three stages: by mid-2025, our laboratories for innovative biotechnological processes and quality control will be fully operational. Subsequent phases will see the launch of pilot, clinical, and full-scale production biotech product lines.

Potential for Collaboration

“It’s symbolic that the historic cradle of ANBO and military technology is witnessing a resurgence of industrial and creative innovation, serving as a catalyst for breakthrough advancements. We believe ALEX will fill a critical gap in Kaunas’ innovation ecosystem, ushering in a new era of collaboration and progress: it is set to be a dynamic link between higher education institutions, start-ups, innovators, and industrial companies in Kaunas LEZ”, shared Andrius Veršinskas, Head of the Business Department at Kaunas IN.

He emphasises that the establishment of Wellgem Biopharma within ALEX marks a monumental leap for Kaunas and the entire country’s life sciences ecosystem, showcasing the park’s potential to unite national and international companies with academia, fostering a collaborative cluster for innovation. Synergies among diverse industries will pave the way for groundbreaking technologies and products.

“Attracting investors requires more than just a polished appearance. We’ve been discussing this park long before its inception. When it comes to medical sciences, investors seek active environments. Our competitive advantage lies in the expertise and added value we offer. The more players we have in the supply chain, the stronger our position. The arrival of this park is very timely,” notes Elijus Čivilis, Director General of Invest Lithuania, highlighting the timely relevance of the ALEX Innovation Park.

The Innovation Park will also serve as a powerful catalyst for Kaunas’ academic community. Alongside startups and high-tech enterprises, plans include three research and study institutions and a business incubator. This setup will enable universities to equip students with the skills and knowledge that align with real market needs.

“Kaunas is a fantastic place. From the perspective of LSMU, this city already concentrates science and hospitals. We see immense potential. For students, the availability of jobs and competitive salaries is crucial, what they will do there, and how much they will be able to earn. By collaborating, we can meet these demands. The opening of ALEX is already a success story,” asserts Edmundas Šalna, Head of the LSMU Health Innovation Development Centre.

This collaboration between academia and business ensures that students are better prepared for the workforce, helping retain talent in the city.

A Strategic Asset for Lithuania

“Kaunas has long been a leader in education, and now we aim to breakthrough in technology. ALEX Innovation Park and its inaugural tenants are pivotal for our city, positioning it as Lithuania’s ‘Silicon Valley’ and attracting both local and international talent,” states Kaunas Mayor Visvaldas Matijošaitis, discussing the strategic importance of this project for Kaunas and the country.

Transforming the former Aleksotas Aviation Factory site and the old helicopter workshop, ALEX is prioritising life sciences, information technology, and the automotive industry. Priority is being given to life sciences, information technology, and the automotive industry.

Between 2018 and 2019, Kaunas City Municipality, the European Union, and the Government allocated approximately EUR 24.7 million to the Innovation Park, which is anticipated to attract at least EUR 90 million in private capital investment by 2048—creating over 1,100 well-paid jobs and engaging around 500 researchers.

Reflecting on the transformation, Karolis Žemaitis, Deputy Minister of the Ministry of Economy and Innovation, recalls, “I remember standing in what was once a derelict site. We were trying to walk through broken asbestos sheets and dripping walls. It’s hard to believe now that we are in the same place, looking completely different. The metamorphosis we’ve witnessed mirrors Lithuania’s growth. There are many places that still need to change. ALEX Park is a beacon of progress, crucial to our life sciences sector, which has flourished even during challenging times.

“Life sciences are one of the key drivers of the Lithuanian economy, having grown even during the pandemic. Kaunas is renowned for many industries, including life sciences. This park was truly needed here”, said Karolis Žemaitis, Vice Minister of the Ministry of Economy and Innovation.

Jekaterina Rojaka, former EIMIN Deputy Minister, concurs: “The exceptional status of this facility has never been in question. I’m thrilled to see our vision come to life with a new investor today.”

Recognised in 2020 as a project of national importance, Kaunas Innovation Industrial Park has become a vital economic asset, reflecting Lithuania’s strategic interests and ambitions. This recognition marks a significant contribution to the country’s economic growth and aligns with national strategic interests and plans.

Prospective investors are welcomed to the Innovation Park, now proudly branded as ALEX, along with an engaging new online presence that embodies innovation and opportunity: alexinnovationpark.lt/.

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