First Biotech Tenant Moves Into USD Discovery District

A Sioux Falls biotech company that specializes in clinical laboratory testing for omega-3s has become the first to open at the USD Discovery District.

The first 50,000-square-foot, two-story building opened in the northwest Sioux Falls innovation park early this year.

For OmegaQuant, which began in a single room at 5009 W. 12th St. in 2015 after graduating from what is now Startup Sioux Falls, the new space represents an exciting stage of growth.

“It’s more user-friendly for sure,” CEO Jason Polreis said. “We have more efficient space and room for growth here as well.”

The 15-person team has started working from a 5,600-square-foot suite that includes office, laboratory and fulfillment space.

“We’re manufacturing our signature Omega-3 Index testing kits, getting them out the door to customers and then receiving samples, processing in the lab and analyzing them, so everything flows together,” Polreis said.

Patients connect with OmegaQuant directly through online channels or through referrals from health care providers. The test is based on research Dr. Bill Harris began more than 30 years ago. In 2009, he began to commercialize his Omega-3 Index Test, which measures the amount of omega-3 EPA and DHA in the blood.

The company also has received multiple Small Business Innovation Research grants that have allowed it to further study how fatty acid patterns contribute to risk for developing everything from diabetes to dementia.

“We’ve seen increasing interest in our test from dietary supplement brands that are using it in personalized nutrition,” Polreis said. “You can’t necessarily feel that you’re deficient in omega-3, but after they change a patient’s diet, they can show the level has increased or ensure they’re consuming the right amount per week to get into a desirable zone.”

By locating at the Discovery District, he said he sees the potential for a lot of collaboration.

“We see it not only on the business side as more tenants move in, but on the research and development side,” Polreis said. “Just innovating between companies and generating ideas. That’s definitely the vision that can come together. We are excited for the future of the USD Discovery District, and with us moving in, it should assist in attracting others to do the same.”

It’s a big milestone, said Joni Ekstrum, executive director of South Dakota Biotech.

“From the beginning, we’ve seen the potential for OmegaQuant to be successful in our area — thanks to everything from our centralized location for reaching customers nationwide to our talent pool that supports their work,” she said.

“It’s incredibly exciting to see actual life science work happening in this innovation park after years of effort from so many. I think when other biotech companies see their peers succeeding here, they will be encouraged to further explore what we can offer them.”

The USD Discovery District is gaining traction with other biotech companies, said Ryan Oines, who recently was named president and CEO of the USD Discovery District.

“It’s really good to have a biotech tenant in the building,” he said. “It’s generated more activity, so there’s momentum created in taking the first step in the journey. However, we know we have a lot of space left to fill.”

There’s 30,000 square feet remaining in the building, which can be subdivided a variety of ways.

“It’s a very long sales cycle,” Oines said. “We’ve completed two market studies, with the latest update to release this fall, and then most recently created custom tools to help us further hone our prospects.”

Recruitment efforts are focused on finding companies that could align strategically with community assets and partners, as well as organizations that have pre-existing relationships in the Sioux Falls area, including with health systems, universities and venture capitalists.

“We’re utilizing data to create our pipeline of business development opportunities,” Oines said.

“In six months, we’ve added more than 8,000 contacts to our database and have currently found just over 300 potential prospects that match our criteria. This approach coupled with data positions us to have more targeted conversations that are more likely to increase our success rate.”

Several promising leads include companies with an international presence as well as some that already have operations in the area and are looking for new or expanded space, he said.

“We also have leads coming out of the Twin Cities as a member of their Medical Alley, which has supported us,” Oines said.

“We are still at the beginning of these recruitment conversations, but the USD Discovery District seems to be an attraction because you’re still in the Midwest. Talent is always top of mind, so prospects are very interested in being close to USD – Sioux Falls and the USD GEAR Center. Companies are interested in knowing about USD programs, student workforce and facilities for research. They need to know we have workforce here ready to fill open positions.”

The relationship with South Dakota Biotech is valuable to helping promote the opportunity, he added.

“Joni has been very involved with us and helpful in conversations around prospective companies,” he said. “We all see the same challenges, but we definitely have traction, and we’re showing we have the right environment for them to thrive.”

Step inside OmegaQuant for yourself at a Greater Sioux Falls Chamber of Commerce ribbon cutting at 4:30 p.m. Aug. 13 at 4600 W. Nobel St.