The city of Greenwood invested in a homegrown pharmaceutical company that boasted of devising a revolutionary way to make a popular drug, but now the city is suing to get its money back.
Greenwood has filed a foreclosure lawsuit against Elona Biotechnologies, a would-be drugmaker that received $8.4 million in tax dollars from the city, including a loan for a new production facility, city attorney Krista Taggart said. The city filed the legal action last week in Johnson County Superior Court 1 after the company’s negotiations with private investors fell apart.
Greenwood said the company owes the city and its taxpayers nearly $9.5 million, an amount that includes the interest that’s been accruing. The city is unlikely to recover the full amount that taxpayers put into the company, especially after legal fees mount.
