Uncertain Economy Halts $35 Million Expansion Plan for CMC Icos Biologics in Washington

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--With the global economy in an uproar, CMC Icos Biologics (Bothell, Washington) has decided to play it safe. As first reported on by Industrial Info this month (Source: Pharmaceutical Tracker), the contract manufacturing organization announced a $35 million expansion project that would increase the site's production capacity fivefold and double its employee count to nearly 300.

CMC Icos was formed after the sale of Icos by Eli Lilly (NYSE:LLY) (Indianapolis, Indiana) to CMC Biologics of Denmark in December 2007. Although the company has not said the project is completely scrapped, there is currently no set date for it to get under way. It was originally scheduled to be complete in 2010.

Company President Gustavo Mahler issued a statement saying: "With the current challenges of the global economy, we must carefully manage our resources. Postponing the project enables us to forgo significant spending and helps ensure that we retain sufficient resources to better weather the economic slowdown." He added that the company "has significant cash resources available to support our operation and growth plans." A recent renovation at the plant enabled commercial drug production in addition to clinical trial materials.

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