U.S. Northeast Remains a Life Science Stronghold, as Industry Invests $1.6 Billion in 3Q17 Project Kick-Offs

Researched by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--Capital investments in life-science facilities can be found in literally every U.S. region. For decades, and weathering many an industry storm, the Northeast region, which comprises Delaware, New Jersey, New York and Pennsylvania, has managed to lay claim to a healthy portion of those capital dollars.

In the short three months from July through September, there are 43 projects representing a total investment value (TIV) of $1.6 billion that are expected to launch construction. These figures translate to a healthy average TIV of $37 million. All these projects are sourced out of both the private and public sectors, and they include everything from traditional drug-manufacturing facilities to advanced research centers.

Out of the current 43 reported capital and MRO (maintenance) projects, two ($27 million TIV) already have begun construction, and the remaining 41 are in various stages. Many have remaining bids to be let. Some will not actually launch before August 31, while others from other quarters will start early.

For more information, see Industrial Info's North American Pharmaceutical-Biotech Industry Update.

The Northeast life-science construction activity is sourced out of both the public and private sectors, with universities battling for 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.

New York lays claim to the region's top spot for the quarter, both in terms of TIV and number of active projects. The state has $1 billion on the books, translating to 22 active projects. The largest of New York's projects is Athenex Incorporated's (NASDAQ:ATNX) (Buffalo, New York) massive, $300 million plan to construct a grassroot sterile injectables, solid dose and fill/finish plant in Dunkirk, New York.

Pennsylvania places next, with 13 projects worth $518 million. A notable project is contract manufacturer KVK-Tech's (Newtown, Pennsylvania) $50 million plan to transform the former Lockheed-Martin facility in Newton to offer powder, tablet and capsule production capacity. Other plans for the project, which will be in phases over a few years, include research laboratories, warehouse space and the possibility of a technology incubator for start-ups.

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