Exact Sciences Corp. is working on a major expansion plan in Phoenix.
The Madison-based cancer detection firm behind the Cologuard at-home cancer detection test is set to build a 250,000-square-foot facility and create more than 800 jobs, according to city of Phoenix documents.
Phoenix City Council is scheduled to vote Oct. 4 on a development agreement with publicly traded Exact Sciences (Nasdaq: EXAS).
Council will also vote on an incentives package that includes a performance-based job creation reimbursement not to exceed $1.6 million, along with a maximum of $5 million in reimbursement from eligible revenue generated through Transaction Privilege Tax at the site, according to documents on file with the city of Phoenix.
Examples of expected TPT revenue generation on the site include construction, leasing and retail activity.
Plans call for building a 250,000-square-foot facility with lab, office, manufacturing and warehouse space at the northeast corner of Sky Harbor Circle North and Buckeye Road. Exact Sciences will lease about 17 acres of the 35-acre Sky Harbor Center at Phoenix Sky Harbor International Airport.
A third-party economic analysis indicates a 10-year direct revenue benefit to the city of more than $21.5 million.
"To remain competitive on a national level, and ensure these quality positions are retained and created in Phoenix, staff is recommending entering into agreements for the creation of this new, state-of-the-art center of excellence for Exact Sciences to expand its advancement of earlier detection and more precise treatments for cancer patients," according to the city report.
It remained unclear whether the Phoenix project will impact Exact Sciences' previous plans, announced early in 2022, to build a new research and development facility in Madison and potentially add 1,300 jobs in Wisconsin by 2025. That $350 million effort was put on hold early in 2023, though the firm said it remained committed to the plan. The announcement came after the firm informed the state of Wisconsin in November 2022 that it was laying off 350 employees.
Exact Sciences has yet to respond to a request for information about how the Phoenix project would affect its Wisconsin growth plans.
Stephanie Spanos, senior director of corporate communications for Exact Sciences, said the entire team is looking forward to Phoenix City Council's decision and support of the development agreement.
Exact Sciences has grown to more than 190 employees in Phoenix since acquiring Paradigm Diagnostics Inc. and Viomics in March 2020 and signing a worldwide exclusive licensing agreement with the Translational Genomics Research Institute, an affiliate of the City of Hope, in January 2021.
Exact Sciences currently occupies several floors in TGen's building on the Phoenix Bioscience Core campus in downtown Phoenix.
In April 2021, TGen sold its Ashion Analytics LLC to Exact Sciences, sending 100 employees over to Exact Sciences.
In addition to creating jobs, Exact Sciences also has been actively engaged in supporting local organizations, student programs and more, said Joan Koerber-Walker, president and CEO of Arizona BioIndustry (AzBio) Association.
Kevin Parker, vice president of Phoenix business operations for Exact Sciences, is vice chairman of the AZBio board of directors.
"Exact Sciences is an excellent example of how Arizona health innovators have attracted world-class companies to our community to continue and grow with us," Koerber-Walker said.
