Billionaire Dr. Patrick Soon-Shiong backs out of ASU biomedical center in Phoenix

Brenna Goth
The Republic | azcentral.com
ASU no longer is negotiating the development of about seven acres of city land with NantWorks, the company led by Dr. Patrick Soon-Shiong, a university spokesman said in a statement.

Plans to massively expand Arizona State University’s footprint on the downtown Phoenix Biomedical Campus with the help of a billionaire doctor are off, university officials confirmed Wednesday.

ASU no longer is negotiating the development of about seven acres of city land with NantWorks, the company led by Dr. Patrick Soon-Shiong, a university spokesman said in a statement.

The university previously said NantWorks had committed at least $75 million to the first phase of a project including joint research teams and facilities.

The announcement comes nearly a year after Soon-Shiong canceled a deal to buy the TGen building on the campus.

Failing to secure an agreement with his California-based company is a blow to the vision of a technology-based health research hub the groups presented two years ago. Phoenix officials lauded the idea when the City Council approved a lease agreement to facilitate the concept.

ASU proposed partnering with NantWorks to construct new biomedical facilities and collaborate with Soon-Shiong, who is known for using technology to develop medical treatments.

The council approved the plan after its first and only public presentation. Former Mayor Phil Gordon helped coordinate the deal on behalf of NantWorks.

Gordon and representatives of the company did not respond to requests for comment Wednesday. ASU declined to provide additional details on the negotiations.

NantWorks wasn’t included in the city’s lease agreement with ASU that was approved by the council. But terms did require a 200,000-square-foot development with a minimum investment of $75 million in the first phase.

The university said in a 2015 press release that NantWorks would provide that funding. The Chan Soon-Shiong Institute of Molecular Medicine at ASU was one proposed use, as well as other centers focused on data and personalized medicine.

ASU proposed a phased project for the parcels north of Fillmore Street. The land is already included in the roughly 30-acre biomedical campus master plan, which includes programs from the three state universities and other organizations.

Phoenix approved a long-term lease for the land that ends with transferring it to the university. 

It’s unclear what city approval ASU would need to change the development proposal, or if the university will announce a new partner. A spokesman for Phoenix’s Community and Economic Development Department said ASU keeps the city informed on negotiations, but that the city isn’t actively involved in them.

The university held a community visioning meeting for the land on Tuesday.

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