Eli Lilly is looking to build an active pharmaceutical ingredient manufacturing facility at Generation Park. Rendering courtesy of McCord

Pharmaceutical company Eli Lilly and Company is looking to build a $5.9 billion active pharmaceutical ingredient (API) manufacturing facility in Houston, according to a recent filing with the state of Texas.

The proposal states that the project plans to employ 604 full-time direct employees at the site upon ramp-up completion. These would include operations technicians, production specialists, maintenance support, quality control/assurance, engineering, administration, and management. Construction is projected to begin in 2026, with a completion target of 2030 and commercial operations beginning in 2031.

If completed, Lilly would purchase 236 acres at Houston’s Generation Park from McCord Development, the commercial development’s owner. The purchase would include multiple buildings, outdoor facilities, infrastructure buildout, and equipment installation.

This proposed Texas plant would be part of Lilly’s $27 billion effort to expand its U.S. production capacity, which was announced in February and includes construction on four new facilities in America. Lilly has previously referred to the plants as “mega sites.”

"This represents the largest pharmaceutical expansion investment in U.S. history," Lilly CEO David Ricks said during the February news conference.

The company has applied for school tax abatements under the new Texas Jobs, Energy, Technology, and Innovation program, according to reports from the Houston Business Journal. This incentive program allows school districts to limit the taxable value of a property for a portion of school taxes, which could save companies millions of dollars on a large portion of property tax bills. It also gives a 10-year tax cut for new manufacturing and development facilities, as long as there is localized job creation.

Shaun Noorian, founder and CEO of Empower Pharmacy, joined InnovationMap for a Q&A on his rapidly growing compounding pharmacy business. Photo courtesy of Empower Pharmacy

Houston founder talks growth and innovation in the pharmaceuticals industry

Q&A

When Shaun Noorian encountered what he felt was a poorly ran process, as an engineer, he built something better. Now, he runs one of the nation's largest compounding pharmacies that's at a pivotal time for growth.

Headquartered in Houston, Empower Pharmacy is opening two new facilities locally — one debuts later this year and the other in 2022. Ahead of this milestone for his company, Noorian joined InnovationMap for a Q&A about how he decided to start his company and how he's grown it from a small office to two 85,000-square-foot facilities — as well as how Houston has been a big part of his company's success.

InnovationMap: Why did you decide to form Empower Pharmacy?

Shaun Noorian: I initially started Empower Pharmacy as a patient that was frustrated with the medication that I was receiving from a local compounding pharmacy in Houston.

I'd been working as a hydraulic fracturing field engineer at Schlumberger after graduating from college with a degree in mechanical engineering and was injured after several months on the job. I hemorrhaged three of my lower vertebrae and was put into physical therapy to try and fix my back. One of the doctors that was treating me noticed that I was very skinny for my age. I was probably 25 years old at the time. He decided to test my blood for the hormone testosterone, which is responsible for muscle growth and many other important factors in both men and women. The test determined that I had the testosterone level of an elderly man. The doctors sent me to Baylor College of Medicine for MRI blood tests, and they determined that I had a pituitary disorder and that I couldn't create the hormones responsible to tell my body to create testosterone. They put me on testosterone replacement therapy and it completely changed my life. Being testosterone deficient my entire life, I didn't realize what normal should be.When I was put on the medication, it was like a new lease on life. And I became very interested in the medication that I was taking, and how it worked. I studied everything I could. I was getting my medications from a local compounding pharmacy here in Houston, and I wasn't very satisfied with the quality of the service or the costs. Getting these medications was a very large percentage of my, what I was living off of. I couldn't figure out why this medication was so expensive when it cost just a few cents to make.

IM: How did you turn that passion into a business?

SN: I guess like most engineers, I decided I wanted to build — to make my own pharmacy. And make my own drugs and offer them to patients in a manner that I would want to it be from a patient's perspective when dealing with the compound pharmacy. I leased about 100 square feet in the back of the doctor's office. I pretty much converted one of his exam rooms and started my pharmacy there. I hired a pharmacist and did all the technician duties myself. I wanted to apply the patient experience that I would've wanted.

Slowly but surely, patients and prescribers around the area were very happy with the level of service and quality that they were receiving from our pharmacy. And we would get more requests through simple word of mouth and reputation. We grew pretty quickly out of that space and then built out a 1,500-square-foot space in a shopping center a couple of years later.

Following several more expansions and new locations throughout the years, we're now gearing up to open our new facility (7601 N. Sam Houston Parkway W., near the intersection of Highway 249 and Beltway 8), which will be the most advanced compounding pharmacy ever built. It has a lot of automation, and utilizes the same processes and equipment that Big Pharma uses to make their drugs. We're trying to better the system and continue to bring automation into the compounding industry so we can continue to scale and set a standard for the rest of the industry.

IM: What sets your business apart from what else is out there?

SN: We're a pharmacy that wants to do everything in house. We want to integrate our supply chain, and that means removing low value middleman from the health care ecosystem and streamline the medical distribution process. This means being the manufacturer, distributor, and regional pharmacy all in one, so we can really control our supply chain and integrate it. And at the same time, we can really be able to control and customize the consumer experience for both our patients and prescribers in a way that we would want. It's been a lot of fun being able to create your own healthcare ecosystem and building software for that your for patients that I'd want to use.

I'm an engineer. It's more fun talking about my equipment than anything else.

If you walk into a Walgreens, it's a simple repackaging operation. You're taking pills from a big bottle and putting them in a smaller bottle. What differentiates us from them and what's unique about this facility is that it's really built the same way as traditional pharmaceutical manufacturing is built using the same exact processes, systems, layout, etc.

We create our own purified water. We create our own clean, dry compressed air. We create our own clean steam that we use in our compounding processes, which are built to CGMP — current good manufacturing practices — specifications. We adopt a lot of those processes into the facility, and we built the facility around those standards that the FDA requires.

IM: You mentioned a new facility — but Empower is actually opening two new facilities within a year of each other. Tell me about those.

SN: Each facility is a mirror of each other — they are both 85,000 square feet. The one that's opening this year is going to be a pharmacy, so it'll just be dealing with patients. The next one is going to be licensed with the FDA and will work with larger institutions, selling medications in bulk for office use to institutions, hospitals, clinics, and prescribers. They will administer those medications to their patients in office. It's our way of being able to integrate that supply chain, so we can be that one-stop shop. So, physicians don't have to go to different vendors to source their medications — we can be an all-encompassing partner and vendor for them to source all their medical needs.

IN: How else are you expanding your business model?

SN: We've always concentrated on — since the inception of the company — quality, service, and cost. And we're always working to figure out how to increase quality, how to decrease costs, and how to make it easier and more convenient for our customers to use us. Some projects that we've been working on that are set to launch in the next few years is building out our own API – application programming interface – so that our telemedicine and other clients that are using electronic versions of health care record software can easily interface with our systems and vice versa.

IM: How has Houston been for you as a home base for Empower?

SN: I think being in Houston is one of the reasons why we've grown to become the largest compounding pharmacy in the nation. It's really just a lot of luck of being in Houston. I'm sure we're all aware that having the largest medical center in the world in your own backyard is a great way to have more prescribers than pretty much any other city in the country. That definitely helped us and continues to help us grow. Additionally, being the third largest city by population means we have a large workforce to pull a diverse workforce for whatever this company needs. Having a diverse workforce has been integral in our growth. Also, having two schools of pharmacy in our backyard has also helped.

There's a reason why, as we grow, we always stay in Houston. It doesn't make sense for us to go anywhere else. This is a great city and a great state to do business.

IM: Are you hiring?

Oh, we're always hiring. I think we currently have around 50 positions open and there's everything from pharmacy operations, all the way to manufacturing and marketing to sales, logistics, legal, you name it.

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This conversation has been edited for brevity and clarity.

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How Houston innovators played a role in the historic Artemis II splashdown

safe landing

Research from Rice University played a critical role in the safe return of U.S. astronauts aboard NASA’s Artemis II mission this month.

Rice mechanical engineer Tayfun E. Tezduyar and longtime collaborator Kenji Takizawa developed a key computational parachute fluid-structure interaction (FSI) analysis system that proved vital in NASA’s Orion capsule’s descent into the Pacific Ocean. The FSI system, originally developed in 2013 alongside NASA Johnson Space Center, was critical in Orion’s three-parachute design, which slowed the capsule as it returned to Earth, according to Rice.

The model helped ensure that the parachute design was large enough to slow the capsule for a safe landing while also being stable enough to prevent the capsule from oscillating as it descended.

“You cannot separate the aerodynamics from the structural dynamics,” Tezduyar said in a news release. “They influence each other continuously and even more so for large spacecraft parachutes, so the analysis must capture that interaction in a robustly coupled way.”

The end result was a final parachute system, refined through NASA drop tests and Rice’s computational FSI analysis, that eliminated fluctuations and produced a stable descent profile.

Apart from the dynamic challenges in design, modeling Orion’s parachutes also required solving complex equations that considered airflow and fabric deformation and accounted for features like ringsail canopy construction and aerodynamic interactions among multiple parachutes in a cluster.

“Essentially, my entire group was dedicated to that work, because I considered it a national priority,” Tezduyar added in the release. “Kenji and I were personally involved in every computer simulation. Some of the best graduate students and research associates I met in my career worked on the project, creating unique, first-of-its-kind parachute computer simulations, one after the other.”

Current Intuitive Machines engineer Mario Romero also worked on Orion during his time at NASA. From 2018 to 2021, Romero was a member of the Orion Crew Capsule Recovery Team, which focused on creating likely scenarios that crewmembers could encounter in Orion.

The team trained in NASA’s 6.2-million-gallon pool, using wave machines to replicate a range of sea conditions. They also simulated worst-case scenarios by cutting the lights, blasting high-powered fans and tipping a mock capsule to mimic distress situations. In some drills, mock crew members were treated as “injured,” requiring the team to practice safe, controlled egress procedures.

“It’s hard to find the appropriate descriptors that can fully encapsulate the feeling of getting to witness all the work we, and everyone else, did being put into action,” Romero tells InnovationMap. “I loved seeing the reactions of everyone, but especially of the Houston communities—that brought me a real sense of gratitude and joy.”

Intuitive Machines was also selected to support the Artemis II mission using its Space Data Network and ground station infrastructure. The company monitored radio signals sent from the Orion spacecraft and used Doppler measurements to help determine the spacecraft's precise position and speed.

Tim Crain, Chief Technology Officer at Intuitive Machines, wrote about the experience last week.

"I specialized in orbital mechanics and deep space navigation in graduate school,” Crain shared. “But seeing the theory behind tracking spacecraft come to life as they thread through planetary gravity fields on ultra-precise trajectories still seems like magic."

UH breakthrough moves superconductivity closer to real-world use

Energy Breakthrough

University of Houston researchers have set a new benchmark in the field of superconductivity.

Researchers from the UH physics department and the Texas Center for Superconductivity (TcSUH) have broken the transition temperature record for superconductivity at ambient pressure. The accomplishment could lead to more efficient ways to generate, transmit and store energy, which researchers believe could improve power grids, medical technologies and energy systems by enabling electricity to flow without resistance, according to a release from UH.

To break the record, UH researchers achieved a transition temperature 151 Kelvin, which is the highest ever recorded at ambient pressure since the discovery of superconductivity in 1911.

The transition temperature represents the point just before a material becomes superconducting, where electricity can flow through it without resistance. Scientists have been working for decades to push transition temperature closer to room temperature, which would make superconducting technologies more practical and affordable.

Currently, most superconductors must be cooled to extremely low temperatures, making them more expensive and difficult to operate.

UH physicists Ching-Wu Chu and Liangzi Deng published the research in the Proceedings of the National Academy of Sciences earlier this month. It was funded by Intellectual Ventures and the state of Texas via TcSUH and other foundations. Chu, founding director and chief scientist at TcSUH, previously made the breakthrough discovery that the material YBCO reaches superconductivity at minus 93 K in 1987. This helped begin a global competition to develop high-temperature superconductors.

“Transmitting electricity in the grid loses about 8% of the electricity,” Chu, who’s also a professor of physics at UH and the paper’s senior author, said in a news release. “If we conserve that energy, that’s billions of dollars of savings and it also saves us lots of effort and reduces environmental impacts.”

Chu and his team used a technique known as pressure quenching, which has been adapted from techniques used to create diamonds. With pressure quenching, researchers first apply intense pressure to the material to enhance its superconducting properties and raise its transition temperature.

Next, researchers are targeting ambient-pressure, room-temperature superconductivity of around 300 K. In a companion PNAS paper, Chu and Deng point to pressure quenching as a promising approach to help bridge the gap between current results and that goal.

“Room-temperature superconductivity has been seen as a ‘holy grail’ by scientists for over a century,” Rohit Prasankumar, director of superconductivity research at Intellectual Ventures, said in the release. “The UH team’s result shows that this goal is closer than ever before. However, the distance between the new record set in this study and room temperature is still about 140 C. Closing this gap will require concerted, intentional efforts by the broader scientific community, including materials scientists, chemists, and engineers, as well as physicists.”

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This article originally appeared on EnergyCapitalHTX.com.