Pharmaceutical R&D Leader to Build Suffolk Manufacturing Presence With IDA Backing
HAUPPAUGE, N.Y., April 4 -- The Suffolk County Executive issued the following news release:
In a decision that will help an emerging pharmaceutical research and development leader expand in Suffolk, the Suffolk County Industrial Development Agency (IDA) approved a cost-saving incentive package for ScieGen Pharmaceuticals, a subsidiary of Bactolac Pharmaceuticals.. The company, which specializes in development of low-cost generic prescription drugs, has had one drug approved by the Food & Drug Administration (FDA) and has an additional 23 applications pending. Anticipating that the FDA may approve several drugs before year-end, ScieGen is ramping up to begin manufacturing operations here in Suffolk County.
"The company will be purchasing a 79,000 square foot building in Hauppauge for $6.3 million and investing $1.5 million in renovations and another $1.75 million in equipment," said IDA Executive Director Anthony Manetta. "Jobs will run the gamut from entry level maintenance staff to supervisors in research and development, chemists and other STEM-related positions. With a plan to hire 100 new employees at average salaries of $37,000 per year, ScieGen's expanded business will add more than $3.5 million in payroll dollars to the local economy."
According to Manetta, the IDA has backed the company with an incentive package that includes a 50% property tax abatement over 10 years totaling $496,573, sales tax exemptions of $86,251, and $42,000 mortgage recording tax savings on a $4 million mortgage, for total projected savings of $624,824 over a 10-year period.
Currently, ScieGen operates a 28,000 square foot R&D facility with 55 employees. "ScieGen is the fourth pharmaceutical company to receive Suffolk IDA benefits in less than a year, which suggests an industry sector is emerging. With numerous other states' pitching incentives for relocating, ScieGen had entertained the possibility of moving their manufacturing operation off Long Island," said County Executive Steven Bellone. "However, Suffolk has three things ScieGen values: synergy within the local industry, a quality workforce, and the Suffolk County IDA, which continues to create a pro-business environment to create jobs." In addition to ScieGen, three pharmaceutical companies have received IDA benefits in recent months: A&Z Pharmaceuticals, LNK International, and Biobotanica.
"The assistance and support of the Suffolk County IDA will help catapult Sciegen into the competitive arena delivering high quality, low-cost generic prescription pharmaceuticals to the marketplace," said Sciegen Chief Financial Officer Renee Reynolds.
In addition, the Suffolk County Department of Labor Business Services Unit will be working with ScieGen to assist with the company's hiring needs. According to Manetta, the Empire State Development Corp is also working with ScieGen through the Excelsior Jobs Program.
TNS rk-130406-4283605 StaffFurigay