A&Z plans $4.9M Hauppauge expansion

A&Z Pharmaceutical, a maker of dietary supplements for the Chinese market, plans a $4.9 million expansion at its two buildings in the Hauppauge Industrial Park.

The firm plans to construct a 26,700-square-foot addition at 350 Wireless Blvd., which it purchased in 2014 for use as a headquarters, factory and warehouse. The company also plans to rent 6,500 square feet of space at 180 Oser Ave., where it has offices and manufacturing.

A&Z plans to add about 25 jobs in the expansion – it currently employs about 100 there – and expects to boost sales by 50 percent over the next five years. The firm will bring back some operations it had outsourced to a California firm, a company spokesman said.

The Suffolk County IDA has approved $742,500 in tax breaks for the expansion,  including a 55 percent reduction in property taxes over 10 years that will save the company more than $395,000.

Although China has its own robust pharmaceutical industry, American-made drugs and supplements are considered the gold standard and command higher prices. A&Z’s top seller in China is D-Cal, a vitamin D and calcium supplement. It sold more than 1.5 billion of the pills last year, or about 98 percent of the firm’s total output. The firm’s second-best seller is Anfit, a supplement it says can help slow the aging process.

The company said it is also developing generic prescription drugs.