Pharma-Biotech Industry's 2007 Capital Investment Review: North American Construction Starts Jump 22% to $13.9 Billion

---

Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--The oft-quoted phrase "It was the best of times, it was the worst of times" can be aptly applied to the Pharmaceutical & Biotech Industry in 2007. Plant closures, major layoffs -- it seemed that barely a week went by last year without yet another announcement of an industry in transition. Yet, in spite of the dire headlines, a recent survey of active reported North American projects in Industrial Info's Pharmaceutical Tracker - Online Database has revealed that an impressive 401 capital and MRO (maintenance) projects began construction in 2007. Cumulatively, the projects represent a total investment value (TIV) of nearly $14 billion.

Click on the image to see a breakdown of 2007 North American Pharma-Biotech Industry Project Starts.

The 2007 figures demonstrated an increase of $2.5 billion, or 22%, in reported project starts over 2006 and its $11.4 billion in TIV for 248 projects. Conversely, the average TIV for 2007 actually declined to $34.6 million, down $11.3 million, or 24.6%, from 2006's $45.9 million. The projects include grassroot facilities, as well as existing buildings that were bought with the intent to renovate and equip. Annual maintenance programs were also considered, as were expansions of existing facilities. Sources for the project activity include private industry, commercial developers, universities and the federal government.

In terms of the number of individual projects, the Great Lakes claimed the top spot, having begun 69 projects last year with a TIV of $1.3 billion. Amylin Pharmaceutical's $400 million manufacturing expansion into Westchester, Ohio, topped the region's spending in 2007. The Southeast snagged second place with 57 projects valued at just more than $1 billion. Georgia State University's $142 million Science Park Project was the biggest to get underway in the region last year. The school is constructing two buildings that will total nearly 400,000 square feet and house both a science teaching center and a science research lab.

Demonstrating the industry's continuing trend to establish operations in areas outside of the more traditional hubs are large projects begun last year by Genentech (NYSE:DNA) (South San Francisco, California) and Covance (NYSE:CVD) (Princeton, New Jersey). Hillsboro, Oregon, rejoiced after Genentech agreed to build its new $250 million biotherapeutics fill and finish plant in the relatively small town. Drug-testing giant Covance, attracted by the incredible quality and quantity of university research facilities and intellectual capital available in Arizona, chose to build a $100 million research center just outside of the city of Chandler. Covance was so determined to locate in the state that the company purchased a second site outside of the city limits when animal activists stringently objected to the company's use of animals in its drug-testing process. By moving beyond the city's jurisdiction, the company avoided certain permitting restrictions.

View Plant Profile - 1068585 1065010 1069079 1067336
View Project Reports - 10003859 17001985 22001174 43000552

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.