Cytion’s Sioux Falls Expansion Hits 200 Percent Growth
When Oliver Goernhardt moved his family from Germany to the United States two years ago, the goal was simple: tap into a market that his firm, Cytion, viewed as an untapped market. As of November 2026, the strategy is paying off in ways that have exceeded even the most optimistic internal forecasts. The biotech company, which specializes in providing high-quality, contamination-free human and animal cell lines for research, is currently tracking a 200 percent year-over-year growth rate.
The firm, which originally launched in 1998 as a spinoff from a German research center, has found a base of operations in South Dakota. The company is set to mark its latest milestone on November 10 with a ribbon-cutting ceremony for a new administrative office located in The Steel District. The move places the nine-person team in the heart of downtown Sioux Falls, directly adjacent to the Big Sioux River and Falls Park.
The Strategic Shift to the Midwest
For a company that counts major pharmaceutical players and bioscience hubs along the coasts among its primary clientele, the decision to plant a flag in the Midwest might seem counterintuitive at first glance. However, Goernhardt argues that the choice is rooted in a need for operational agility. In an industry where administrative processes often struggle to keep pace with the rapid acceleration of AI-driven drug discovery, Cytion has used its status as a private, smaller entity to offer increased flexibility.
Business has been treating us well, and we’re way over projections. We’re going to hit 200 percent year-over-year growth, and that’s really all you can ask for. Oliver Goernhardt
The cost-of-living and operational benefits are stark. Goernhardt estimates that maintaining their current administrative footprint in a high-density bioscience hub like Boston would cost 10 times what they currently pay in South Dakota. This overhead efficiency allows the company to improve its margins while maintaining price consistency across its customer base, regardless of whether a shipment originates from their German facilities or their new American base.
Scaling the Cell Library
The demand for genetically authentic samples is rising, driven largely by the speed at which modern research teams now operate. When Cytion first arrived in the United States, they offered roughly 1,000 cell lines to their clients. Today, that “library” has expanded to 1,400, with availability consistently hovering around 95 percent. This reliability is critical for researchers who need to reroute projects quickly when a specific trial fails or a new discovery path opens up.
Despite the success of the administrative expansion, the company’s next major hurdle is physical infrastructure. Cytion is currently scouting locations for a dedicated U.S. laboratory and hoping to finalize a lab space this year. Establishing this facility is more than just a matter of capacity; it is a regulatory and logistical necessity. A domestic lab will allow the company to produce U.S.-made batches, a requirement for many customers who prioritize local sourcing for their supply chains. The lab would also enable the company to offer specialized services, including custom manufacturing and expanded quality control protocols.
Building a Local Footprint
The integration into the local economy has been supported by South Dakota Biotech, the state affiliate of the international BIO organization. Joni Ekstrum, the executive director of South Dakota Biotech, noted that the state has been eager to support Cytion’s growth as they scale their operations. For Goernhardt, the support provided by local industry leaders was instrumental in managing the initial transition, from securing office space to understanding the regional business climate.
The impact of this expansion on the local job market is already visible. When the company opened its search for an executive assistant, they received 117 applications, highlighting the depth of the local talent pool. As the company prepares for its upcoming ribbon-cutting event on November 10, the focus remains on long-term stability. For Goernhardt, the transition has become a permanent fixture of his family’s future, with plans currently underway to pursue U.S. citizenship.
The success of this international expansion shows a wider trend: companies that can bridge the gap between high-level international research and lower-cost, high-efficiency regional hubs are finding a major competitive advantage in the current biotech market. As Cytion looks to finalize its laboratory space before the end of the year, the company’s trajectory serves as a case study in how smaller, private firms can successfully challenge the inertia of more traditional, legacy-heavy industry players.
