Suffolk County has burnished its reputation as a choice commercial destination for early-stage pharmaceuticals.
The Suffolk County Industrial Development Agency on Thursday approved a corporate incentives package for Evaric Pharmaceutical, a generic drug-maker founded by Bandi Parthasaradhi Reddy, owner and chairman of global distributor Hetero, India’s largest privately held pharma.
The sales and mortgage tax-abatement package allows Evaric Pharmaceutical to proceed with a $15.5 million purchase-and-renovation plan targeting a 107,000-square-foot facility inside Hauppauge Industrial Park, future home of Evaric’s manufacturing and distribution operations.
Once renovations are complete, Evaric Pharmaceutical anticipates creating as many as 108 full-time jobs at the site. Renovations and subsequent FDA approvals for Evaric’s manufacturing operations are anticipated to take up to 24 months.
The deal – which will see Evaric Pharmaceutical invest more than $2 million in equipment purchases and renovations at the Commerce Drive site – is not only a jobs-creator but another notch in the belt for the region’s expanding bioscience cluster, according to Suffolk IDA Executive Director Tony Catapano.
“The continued growth of this sector provides proof that this industry is a major economic engine for the county,” Catapano said, adding Reddy’s choice to headquarter Evaric Pharmaceutical in Hauppauge “speaks volumes of the caliber of our workforce.”
Hetero, which does business in 120 countries, employs more than 15,000 people globally. The parent company very nearly located its Evaric Pharmaceuticals operation near an existing Hetero facility in New Jersey, but the Suffolk IDA sweetened the pot enough to change minds, according to Evaric CFO Vasu Sabbella.
“The assistance of the Suffolk County IDA provided us with an incentive … allowing us to make our decision to establish our manufacturing company in Hauppauge,” Sabbella said in a statement. “Dr. Reddy is very excited with our new company venture and to be within the Hauppauge Industrial Park.”
And the IDA is excited to continue the regional biotech momentum. In June, the agency approved a tax-incentives package for 33-year-old synthetic vaccine manufacturer United Biomedical Inc., which is looking to purchase and renovate the 43,000-square-foot Hauppauge facility it has leased for nearly a quarter-century.
In February, the IDA approved a similar deal for A&Z Pharmaceutical, a maker of dietary supplements for the Chinese market planning a $4.9 million expansion of two Hauppauge Industrial Park buildings – another of several biotech-focused incentives packages the agency has approved in recent years.
With topflight research happening at Stony Brook University, Brookhaven National Laboratory and other world-class Long Island facilities with close ties to their Suffolk County-based brethren, the IDA’s repeated emphasis on early-stage biotech is no coincidence, Catapano noted.
“Suffolk County continues to prove itself as a destination for new and established pharmaceutical companies to grow their operations,” the exec said.