Two Long Island pharmaceuticals companies will purchase a 92,000-square-foot Hauppauge building and add on another 50,000 square feet of storage space through a deal announced Thursday by the Suffolk County Industrial Development Agency.
The IDA has approved a $17.5 million package for sister companies Bactolac Pharmaceutical Inc. and ScieGen Pharmaceuticals Inc., which will purchase and renovate 330 Oser Ave. for $8.2 million and construct an addition that will be used to store materials for both enterprises, according to the IDA.
Bactolac Pharmaceutical, founded in 1995, manufactures vitamin and nutritional supplements. ScieGen Pharmaceuticals, launched in 2009, manufactures generic pharmaceutical products. Both companies were founded by Pailla Malla Reddy, who earned a PhD in chemistry from India’s Kanpur University and has launched several international pharmaceutical companies, including firms based in Russia.
Bactolac Pharmaceutical and ScieGen Pharmaceuticals, which employ a combined 468 people across seven Suffolk County locations, plan to use the increased storage space to step up existing manufacturing and packaging operations at their current facilities, the county said in a statement.
After purchasing and renovating their new Oser Avenue storage facility – a plan that includes a joint $7 million investment by the two companies – Bactolac Pharmaceutical and ScieGen Pharmaceuticals will add a combined 150 jobs, according to Renee Reynolds, who serves as chief financial officer for both enterprises.
“With assistance from the IDA, both Bactolac and ScieGen can achieve our expansion goals,” Reynolds said in a statement.
Bactolac Pharmaceutical also received IDA assistance in 2009, while building its approximately 44,000-square-foot facility at 7 Oser Ave.
Increasing storage and packaging capacities for both companies is “vital” for the companies and a momentum-builder for the regional pharmaceutical industry, according to Suffolk IDA Executive Director Tony Catapano.
“For companies, expansion is pertinent to staying competitive,” Catapano said.