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
