Athersys Update: Playing Field Narrows

If you had $75-100 million to spend, would you invest it in Athersys, the Cleveland-based biotech startup, which is playing off its hometown against competing locations in North Carolina, Minnesota and other states? That remains the question on the minds of development officials in several states trying to woo the company.

Pittsburgh backed out of the race a week ago, announcing the deal was too rich for their blood. Recent reports from Research Triangle Park and Minneapolis point to similar concerns about whether Athersys is really worth it.

North Carolina officials equate the deal to the competition that Gliatech, another Cleveland biotech company, started five years ago when it was searching for greener pastures before the FDA nailed the company for misreporting information about its products to the Federal regulatory agency.

Cash-strapped Minnesota officials say they're not about to break the bank for Athersys, though they are still aggressively searching for other ways to lure the company.

Stay tuned.