Pharma manufacturers, IDA eye Hauppauge redux

More, merrier: ScieGen Pharmaceuticals is hoping to pump up its Hauppauge-based manufacturing capacities.

Old economic-development friends have crossed paths again in Hauppauge, with a critical new ED edict.

The Suffolk County Industrial Development Agency has issued preliminary approval of a tax-abatement deal that will help prescription drug-maker ScieGen Pharmaceuticals remake two-thirds of its 92,000-square-foot Hauppauge space – a manufacturing motivator designed to pump up output and create new jobs.

One-hundred-six new jobs, according to the IDA, with ScieGen Pharmaceuticals engaging a Long Island-based supply chain for a $15.5 million expansion project that will transform 65,000 square feet of current warehouse space into new production and office facilities and a company cafeteria.

ScieGen Pharmaceuticals– parent of Bactolac Pharmaceutical, another prescription-drug manufacturer with cGMP certified, FDA-registered facilities across Long Island – is keen on new capsule-filling and tablet-compression capacities, extra coating and granulation resources, innovative quality-control laboratories and a fresh suite of executive offices, plus new washrooms.

Tony Catapano: Lucky break for Suffolk.

And the Suffolk IDA is happy to help them get there, according to Executive Director Tony Catapano, who sees such expansions as a socioeconomic imperative at the height of the COVID-19 slowdown.

“At a time when so many are losing their jobs and businesses are struggling to keep the doors open, we are fortunate to have a solid company, rooted right here in Suffolk County, ready to make a sizable investment that will create more than 100 jobs,” Catapano noted. “The Suffolk IDA is pleased to assist ScieGen expand their capacity for manufacturing pharmaceuticals while also creating opportunities for our residents.”

The tax-abating incentives deal, which must still undergo a full IDA review and final approvals, is not the first time the county development agency has danced with the ScieGen/Bactolac tandem. The IDA assisted the companies with their original joint purchase of the 92,000-square-foot Oser Avenue facility back in 2015.

And that proved to be a worthy investment, according to the IDA, with those prior incentives leading to “dozens of additional jobs [above what was] originally anticipated.”

That stellar socioeconomic ROI – along with increasing demands for pharmaceutical products and the very real possibility that the expansion-minded Long Island manufacturers might head for greener economic-development pastures – made a fresh incentives package a no-brainer, according to Suffolk IDA Executive Director Kelly Morris.

“A continued partnership with ScieGen is a win for Long Island and its pharmaceutical manufacturing industry, especially during these incredibly challenging times,” Morris added. “The companies employ hundreds of Long Island residents and provide millions in tax revenue for the region.

“We are proud that they call Suffolk County home.”