State OKs loan to expand Fayette biosciences firm

State officials approved a $250,000 forgivable loan Thursday for a Lexington biosciences firm.

From its location at Coldstream Research Campus, Summit Biosciences develops and manufactures prescription generic and over-the-counter medicines that are delivered nasally.

The company plans to use the loan to buy laboratory equipment as it works to submit the first of several applications to the U.S. Food and Drug Administration by the middle of next year. It hopes to manufacture and market several generic products in 2011 and 2012, according to the state.

The company also expects to apply for patents on new over-the-counter nasal spray products that it hopes to begin manufacturing in the first quarter of next year.

In return for the loan, the company must hire 17 full-time workers who are paid $64,000 a year. The jobs could pay as little as $40,000 and still be considered to have met the requirements of the loan, although there are wage penalties if that's the case. The jobs must be created by June 2012 and be maintained for three years.

Summit Biosciences also was approved for $500,000 in tax incentives under a different state program. The incentives would allow the company to keep revenue that it would otherwise pay in taxes should it be able to create 22 jobs that would pay an average of $24.06 hourly, including benefits.

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