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Pharmaceutical Industry Growth Fuels U.S. Site Selection Activity

by King White, on Jun 7, 2022 4:18:24 PM

According to Pharma Times, pharmaceutical sales in the 60 biggest international markets are expected to increase by 4.6% in 2022—a total of about $1.5 trillion. The largest market is the U.S., which represents about half of that total.

This demand is driving site selection activity across the U.S. as pharmaceutical firms look to establish new facilities.

States that saw high levels of pharma investment in 2021-2022 include North Carolina, Indiana, and Pennsylvania.

In North Carolina, for example, Eli Lilly and Company plans to invest $1 billion to build a new pharmaceutical manufacturing facility in Concord, resulting in 600 new jobs. In Mooresville, BestCo, which develops and manufactures consumer healthcare products, plans to invest $177 million to increase production capacity at its existing facility. Cambrex Corporation, a pharmaceutical manufacturer, will invest $30 million to expand its manufacturing facility in High Point, creating 78 new jobs.

Activity in Indiana includes Catalent, a developer and manufacturer of pharmaceuticals, biologics, and gene therapies, will spend $291 million to expand operations at its existing location in Bloomington, creating over 1,000 new jobs. In Fishers, Stevanato Group, plans to invest $145 million to establish and equip a new 370,000-square-foot manufacturing facility, creating 230 new jobs by 2025.

In Pennsylvania, Biotechnique will invest $22 million to establish a new 160,000-square-foot pharma manufacturing facility in York and West Pharmaceutical Services, a manufacturer of vial contaminant solutions for injectable medicines, will invest $18 million to expand its existing manufacturing facility in Williamsport.

Site selection factors for pharma facilities include labor availability, labor costs, business climate, site utilities and infrastructure, economic incentives, and real estate, which all must be evaluated carefully due to the significant financial implications of the location decision.

To help understand where pharma companies have located and expanded, Site Selection Group has identified 25 of the largest biotech projects announced in the US since 2021.

25 Largest U.S. Pharma Projects

1/1/21 to 4/30/22

Company Destination City Capex (USD m) # of Jobs
Regeneron Pharmaceuticals Tarrytown, NY $1,800.00 725
Eli Lilly and Company Concord, NC $1,000.00 355
Catalent Bloomington, IN $291.02 375
Arrowhead Pharmaceuticals Verona, WI $250.00 400
BestCo Mooresville, NC $177.00 150
Stevanato Group Fishers, IN $145.00 396
Civica Petersburg, VA $124.50 200
Elanco US Greenfield, IN $92.50 422
West Pharmaceutical Services Kinston, NC $70.00 210
Elanco US Larchwood, IA $59.00 200
Merck Sharp & Dohme Wilson County, NC $57.00 274
Exelead Indianapolis, IN $41.00 878
Piramal Riverview, MI $35.00 200
Cambrex Corporation High Point, NC $30.00 400
Eversana Life Science Services Memphis, TN $30.00 1,034
Piramal Pharma Solutions Lexington, KY $26.47 50
PolyPeptide Laboratories Multiple locations, CA $25.00 942
Motacann Holdings St Louis, MO $24.50 62
Biotechnique (250 Cross Farm) York, PA $22.00 100
GF Saint Mary St Mary, MO $21.00 500
Nature's Value Winston-Salem, NC $19.00 20
West Pharmaceutical Services Williamsport, PA $18.00 300
Raybow USA Brevard, NC $15.80 44
Orano Med Brownsburg, IN $13.94 71
Curium US Noblesville, IN $12.80 64

Source: Site Selection Group, Local Publications, IncentivesFlow

Topics:ManufacturingSite SelectionR&DPharmaceuticals

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