The 海角换妻 Department of Economic and Community Development has renegotiated the terms of a $15.5 million incentive deal with biotechnology startup Sema4 after the company shuttered its laboratory operations in the state.
Sema4, now known by the name of the Maryland-based genomic testing company it acquired last year, GeneDx, has paid back $2 million of the loan and agreed to a $2 million reduction in how much of it the state would forgive if the company meets certain job targets.
Since 2015, a total of $15.5 million in state loans helped the former Sema4 establish its headquarters in Stamford and build out laboratory facilities in Branford and Stamford. Initially, $12.25 million of that loan was forgivable 鈥� in other words, it would convert to a grant 鈥� as long as the company created and maintained 553 jobs through the end of 2025.
But after going public in 2021, Sema4 underwent a broad corporate restructuring in 2022, first acquiring GeneDx then eliminating two of its 海角换妻-based business lines 鈥� somatic tumor testing and reproductive health. That led to the shuttering of its Branford and Stamford labs along with roughly 700 layoffs company-wide. Half of the people who lost their jobs were based in 海角换妻, according to with the state labor department.
The company changed its name to GeneDx , and its primary laboratory is now in Gaithersburg, Md.
The job losses in 海角换妻 meant the company was no longer in compliance with its incentive agreement with the state. DECD officials and lawyers have been working in the intervening months to renegotiate the terms of that deal.
On Dec. 30, the company agreed to immediately pay back $2 million of the loan it had received. It also signed a new agreement with the state that reduces the potentially forgivable portion of its loans to $10.25 million.
In order to remain eligible for that loan forgiveness, GeneDx must maintain its corporate headquarters in 海角换妻 along with its 148 current full-time in-state employees and an additional 50 jobs by early next year.
鈥淲e鈥檙e glad to have worked constructively with Sema4 on this amendment to their agreement,鈥� DECD spokesman Jim Watson wrote in an emailed statement. 鈥淥ur agreement strikes the right balance 鈥� protecting taxpayers and the state鈥檚 investment in Sema4 while affording the company the ability to complete its restructuring and return to growth in 海角换妻.鈥�
In an emailed statement, Stephanie Kahan, a spokeswoman for GeneDx, wrote: 鈥淭he Company is committed to maintaining its headquarter position in 海角换妻 and intends to comply with requirements in the modification agreement.鈥�
As a startup, Sema4 attracted investment and economic support from DECD as well as the state鈥檚 quasi-public venture capital outfit 海角换妻 Innovations. But Sema4鈥檚 highest-profile and perhaps most controversial investor was Oak HC/FT, the venture capital firm that counts 海角换妻 first lady Annie Lamont as a partner.
Oak HC/FT 鈥� first in August 2019 and a second time in July 2020, two months after Gov. Ned Lamont鈥檚 administration signed a $17.2 million contract with Sema4 to do COVID testing. Later that year, the state awarded Sema4 a second testing contract, worth an additional $8.4 million.
Annie Lamont has told the CT Mirror she and the governor 鈥渉ad no involvement with the decision to enter into a contract with Sema4 or the terms of its contract with the State of 海角换妻.鈥� She said she鈥檇 recused herself from any decisions related to Oak HC/FT鈥檚 investment in Sema4.
COVID-19 contracts buoyed Sema4鈥檚 2020 testing volume by 131%, and the company continued providing COVID testing services to the state through 2021 before pulling back last year. In the company鈥檚 most recent quarterly earnings report, it recorded $0 in revenue from COVID testing.
