Ethos Laboratories will expand its presence in Newport, Campbell County with a more than $2.2 million investment.
In response to the pandemic, the company pivoted in 2020 to provide COVID-19 PCR testing for schools and higher education institutions, long-term care facilities and first responders, among others.
“I want to thank the leaders at Ethos Labs for this investment in their Northern Kentucky headquarters,” Gov. Beshear said. “I also want to thank them for their great work during the pandemic to produce testing options when they were needed most. Ethos is doing great things in our state, and the company’s continued growth is greatly appreciated.”
The investment in the company’s 30,000-square-foot laboratory will support instrument expansions and upgrades to allow Ethos to produce more sensitive, accurate and specific data for pain management providers. The expanded services will contribute to the company’s mission to help more patients by providing the best possible data to health care professionals. Company leaders expect to implement the upgrades in equipment and technology beginning this month.
“We are very thankful for the continued support we’ve received since moving our operations to Newport, Kentucky, both at the local and state levels,” said Brian Kincaid, CEO of Ethos Laboratories. “This incentive by the state is another example of their pro-business approach to spur innovation in the life sciences.”
Founded in 2010, Ethos has been headquartered in Newport since 2013, with nationwide sales and field teams. The company’s laboratory service offerings contribute to a comprehensive set of diagnostic tools used by pain management providers and general practitioners to better care for patients, including Foundation Pain Index (FPI), toxicology, virology, immunology, serology and pharmacogenetics (PGx). Also headquartered at the Northern Kentucky location is Ethos Research & Development, a dedicated company focused on advancing treatment for chronic pain.
The commonwealth is home to a growing number of health care-related operations, with more than 200 technology, service and manufacturing locations employing over 37,000 Kentucky residents. Since the start of the Beshear administration, businesses within the sector have announced more than 2,000 new jobs throughout the state. The industry includes headquarters operations, pharmaceutical makers, medical equipment design and production, medical device manufacturers and health care product distributors.
Campbell County Judge/Executive Steve Pendery thanked Ethos leaders for their continued investment at the company’s Newport headquarters.
“The research performed at Ethos Laboratories has changed the way pain is measured, through the development of a quantitative assessment of pain, and treated by health care professionals. What an incredible accomplishment from right here in Campbell County,” said Judge/Executive Pendery. “Congratulations to CEO Brian Kincaid and his team on this new investment in the laboratory that will expand the volume of analyses the company can provide.”
Newport Mayor Tommy Guidugli Jr. expressed his gratitude to Ethos for the COVID-19 testing services the company provided to communities, schools and the residents of the Cincinnati and Northern Kentucky region throughout the pandemic.
“Ethos established its headquarters in Newport in 2013 and has been committed to the city, bringing professional, high-paying jobs to Monmouth Street,” added Mayor Guidugli. “I’m encouraged by the company’s investment in new technologies and equipment to increase efficiency and provide data to more patients and health care providers.”
Northern Kentucky Tri-ED CEO Lee Crume noted that life sciences employment in Northern Kentucky doubled from 2014-2019, according to a recent analysis by EY.
“The Tri-ED team is focused on serving and expanding the life sciences cluster, which encompasses biomedical research, in Northern Kentucky,” Crume said. “Ethos is an excellent example of the type of company we’d like to attract to the Cincinnati region. Kentucky offers the strongest SBIR-STTR match to growing life sciences companies who move to the commonwealth.”
Ethos’ investment furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
Site Selection magazine’s annual Governor’s Cup rankings for 2021 recently placed Kentucky atop the South Central region, and third nationally, for qualifying projects per capita.
Gov. Beshear recently announced that on Jan. 28, S&P Global Ratings revised Kentucky’s financial outlook to positive from stable and affirmed its “A-” credit rating. S&P cited a reduced reliance on one-time items to balance the budget and a higher balance in the state’s rainy-day fund as primary factors influencing the change.
That follows a 2021 during which the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
In recent months, the commonwealth has seen its two largest economic development projects in the state’s history. In September, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. Last week, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. The announcements solidify Kentucky as the national leader in EV battery production.
Kentucky also saw an all-time, record-setting budget surplus in fiscal year 2021 and entered 2022 with an estimated $1.9 billion more than budgeted.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) approved the company for up to $100,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Ethos can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Ethos Labs, visit Ethos-Labs.com.
A detailed community profile for Campbell County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov, kycovid19.ky.gov and the Governor’s official social media accounts Facebook, Twitterand YouTube.