Northeast Has Nearly $8 Billion Worth of Reasons to Love Life Science Industry CAPEX/MRO Investments

Reported by Annette Kreuger, Industrial Info Resources, Incorporated (Sugar Land, Texas)--Like any long-term union, the one shared between the U.S. Northeast Region, which comprises Delaware, New Jersey, New York and Pennsylvania, and the Life Science Industry is a classic example of a love/hate relationship. The Northeast Region has been pummeled over the past few years with scores of pharmaceutical plants closing and lucrative jobs lost. On the other hand, the region remains a favorite for capital investment from both the private and public sectors for new and upgraded life science manufacturing plants and research centers. Currently, there are 168 active reported projects translating to a hefty $7.7 billion in total investment value (TIV).

Despite the relative high cost of living in the Northeast, harsh winters and lucrative incentive battles in every other part of the U.S., the region continues to be an industry magnet for investment. As found in the Industrial Info Pharmaceutical-Biotech Database, out of the region's current 168 reported capital and MRO (maintenance) projects, 91 projects, representing $3.6 billion TIV, have a future kick-off date. The remaining 77 ($4.1 billion TIV) are in various stages of construction, of which some still have remaining bids to be let.

Click on the image at right for a chart detailing project count and value by state in the U.S. Northeast region.

The numbers are dynamic, in that as one project completes construction, another almost certainly pops up in planning. The Northeast life-science construction activity is sourced out of both the public and private sectors, with universities ponying up the funds to build the massive research centers that are needed for a multitude of reasons. Beyond basic education, these high-dollar laboratory complexes attract federal dollars and top research scientists. Ultimately, they hope to attract commercial interest from manufacturers.

Click here to access the 2016 Pharmaceutical--Biotech Industry North American Outlook.

While New York continues to attract the most investment, with 75 projects amounting to a stunning $5.1 billion TIV, the other three states all have some form of construction activity. Pennsylvania delivers $1.3 billion spread across 48 projects. New Jersey is not far behind with 42 projects and $1.1 billion TIV. Even tiny Delaware is on the books, with three projects valued at $105 million.

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Regeneron Pharmaceuticals Incorporated (NASDAQ:REGN) (Tarrytown, New York) is looking expand in Rensselaer, New York, with an ambitious $60 million first phase of a three-phase plan to develop its East Campus. Total build-out will see the addition of parenteral manufacturing and R&D laboratory capacity.

KVK-Tech Incorporated (Newtown, Pennsylvania) is still considering construction of a contract manufacturing (CMO) plant in Newton, Pennsylvania. With a possible total investment of $50 million, the plant would be quipped to product capsules, powders and tablets.

Hovione LLC (East Windsor, New Jersey), a division of Portuguese company Hovione, has decided to expand upon its existing pilot-scale active pharmaceutical ingredients (APIs) plant through the construction of a commercial scale plant. The 36,000 square-foot addition will offer contract production of both APIs and HPAPIS (high-potency APIs).

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.