OSI Pharmaceuticals Inc. has agreed to terminate its leases at the Broad Hollow Bioscience Park, allowing the Farmingdale complex to resume its original mission as an incubator for startups.
OSI vacated the two-building facility last spring. But its leases extended for several more years, preventing smaller companies from moving into the space on the campus of Farmingdale State College.
Now after months of negotiations, OSI has agreed to a financial settlement to dissolve the leases early, clearing the way for new tenants, the college announced Thursday. It did not disclose the terms of the deal.
"The agreement serves the interests of both parties and ends the relationship in a positive way," said Greg Blyskal, the bioscience park's executive director.
When it opened in 2000, the Bioscience Park was conceived as a launchpad for fledgling companies that spin out of Cold Spring Harbor Laboratory and local universities. But the 102,500-square-foot complex wound up being entirely occupied by OSI as part of an effort to keep the company on Long Island.
That left little commercial laboratory space in Nassau and Suffolk counties, prompting some of Long Island's few homegrown biotech startups to look elsewhere, officials said.
Then OSI's parent company, Astellas Pharma Inc., of Japan, announced in May that it was shuttering its local operations as part of a global consolidation. Its leases, however, did not expire until 2016 and 2022.
Now that those leases have been terminated, officials want to fill the space with companies they hope will be part of a broader high-tech startup movement to reignite Long Island's economy.
"There has been genuine interest from fledging bioscience companies in the space," said George P. LaRosa, chairman of the facility's board. "We're very confident that we will have several new tenants . . . in the not-too-distant future."