Released February 16, 2018 | SUGAR LAND
en
Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--It is often tricky to prove cause and effect, but in the case of federal tax reform and Amgen, the correlation is quite clear. The Trump administration approved major corporate tax benefits, and now the company plans to construct a grassroot, $300 million biomanufacturing plant in the United States.
This is heartening news no matter the location, but what makes it all the better is that it is being planned for the U.S. In recent years, a number of experts and pundits alike have declared that the industry's major capital investment would be on foreign shores. For a number of reasons, including the country's maturity in the market and tax laws that made it more cost-effective to build elsewhere, they argued that big-dollar capex investments mostly would be elsewhere.
Based on reported Pharmaceutical-Biotech capital-investment plans, major projects continue to be planned across the globe. From Africa to Uzbekistan, billions of dollars are being invested in drug manufacturing--not just for export, but for the citizens of those countries. Thanks to a wave of new political agendas and priorities, large populations are gaining access to medications that never before existed.
But it is equally true that serious investment remains in the U.S., and now even more is expected. The industry is growing. The U.S. remains the top market for the global pharma industry, which is expected to top $2.2 trillion by 2022, a figure that is constantly increasing. Although inroads are being made into expanding the research infrastructure everywhere, the U.S. remains the nexus of it all, a major component in the estimated annual global growth rate of 6% to 8%.
Even a cash-rich industry has to pay attention to the bottom line. When billions of dollars are in play, fractions of percentages matter. Last fall, the Institute on Taxation and Economic Policy (ITEP), a citizens group, reported that just five of the top pharma companies--Pfizer, Amgen, Biogen, Baxter and Gilead--would collectively realize a $42.7 billion tax break if reforms were enacted.
Amgen's decision to greenlight the plant was aided by new technologies that allow for the faster construction of higher-capacity plants. These include single-use systems (SUS) that utilize portable, modular vessels. With these next-generation bio-manufacturing technologies in place, Amgen will be able to build a facility with a smaller footprint in about 18 months. The project had been kicked around for several years, but where and how much was the question; the tipping point, be it as it may, was tax reform.
See below for a chart detailing Amgen plants tracked in Industrial Info's project database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
This is heartening news no matter the location, but what makes it all the better is that it is being planned for the U.S. In recent years, a number of experts and pundits alike have declared that the industry's major capital investment would be on foreign shores. For a number of reasons, including the country's maturity in the market and tax laws that made it more cost-effective to build elsewhere, they argued that big-dollar capex investments mostly would be elsewhere.
Based on reported Pharmaceutical-Biotech capital-investment plans, major projects continue to be planned across the globe. From Africa to Uzbekistan, billions of dollars are being invested in drug manufacturing--not just for export, but for the citizens of those countries. Thanks to a wave of new political agendas and priorities, large populations are gaining access to medications that never before existed.
But it is equally true that serious investment remains in the U.S., and now even more is expected. The industry is growing. The U.S. remains the top market for the global pharma industry, which is expected to top $2.2 trillion by 2022, a figure that is constantly increasing. Although inroads are being made into expanding the research infrastructure everywhere, the U.S. remains the nexus of it all, a major component in the estimated annual global growth rate of 6% to 8%.
Even a cash-rich industry has to pay attention to the bottom line. When billions of dollars are in play, fractions of percentages matter. Last fall, the Institute on Taxation and Economic Policy (ITEP), a citizens group, reported that just five of the top pharma companies--Pfizer, Amgen, Biogen, Baxter and Gilead--would collectively realize a $42.7 billion tax break if reforms were enacted.
Amgen's decision to greenlight the plant was aided by new technologies that allow for the faster construction of higher-capacity plants. These include single-use systems (SUS) that utilize portable, modular vessels. With these next-generation bio-manufacturing technologies in place, Amgen will be able to build a facility with a smaller footprint in about 18 months. The project had been kicked around for several years, but where and how much was the question; the tipping point, be it as it may, was tax reform.
See below for a chart detailing Amgen plants tracked in Industrial Info's project database.
| Plant ID | Plant Name | City | Country |
|---|---|---|---|
| 3303910 | Singapore Biomanufacturing | Singapore | Singapore |
| 3236431 | Taboao Da Serra Solids Liquids & Injectables | Taboao Da Serra | Brazil |
| 3298252 | Shanghai (Pudong) API Plant | Shanghai | China |
| 3229573 | Burnaby Human Therapeutic Antibodies R&D | Burnaby | Canada |
| 1071505 | Louisville Biopharmaceutical Distribution | Louisville | U.S.A. |
| 1070873 | Woburn Oncolytic Vaccine OncoVEX(GM-CSF) Clinical Phase 3 | Woburn | U.S.A. |
| 3175234 | Istanbul Yenibosna Penicillin Antibiotics, Powders, Tablets | Istanbul | Turkey |
| 3175231 | Kocaeli Penicillin, Non Penicillin, Pharmaceutical APIs | Kocaeli | Turkey |
| 1056629 | West Greenwich Enbrel Injectables | West Greenwich | U.S.A. |
| 1063487 | South San Francisco Small Molecules Discovery R&D | South San Francisco | U.S.A. |
| 1063115 | Cambridge Peptides, Proteins, Oral & Small Molecules R&D | Cambridge | U.S.A. |
| 1007716 | Thousand Oaks Clinical Scale Biologics | Thousand Oaks | U.S.A. |
| 1058145 | Juncos Biologics Solid Doses, Syringe Fill & Freeze-Drying | Juncos | U.S.A. |
| 3189334 | Breda Biological Pharmaceuticals Research & Development | Breda | Netherlands |
| 1065042 | Dun Laoghaire Aseptic Sterile Solutions | Dun Laoghaire (Kingstown) | Ireland |
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
