Catalent, a leading global development and manufacturing partner to the pharmaceutical, biopharmaceutical and consumer health industries, will create more than 200 new jobs in Durham County over the next five years. The company will invest up to $40 million to expand its analytical development and testing business in the City of Durham.
“This has been a banner year for economic development across the state,” said Governor Cooper. “Our global reputation for manufacturing and biotechnology has been a major contributor to welcoming expansions from companies like Catalent. When combined with a some of the brightest talent in the world and innovative businesses, North Carolina will continue to be a desired location for the life science sector.”
Headquartered in New Jersey, Catalent is a contract development and manufacturing organization with more than 50 global sites. In Catalent’s over 85-year history, the company has grown to provide more than 80 billon doses of nearly 8,000 products to its pharmaceutical, biotechnology and consumer health customers annually. Catalent’s BioAnalytics division offers comprehensive standalone analytical development and testing for different treatments including cell and gene therapies. This project will expand the company’s support of large molecule development and manufacturing growth and will make a home in the Research Triangle Park.
“Catalent is committed to the continuous growth and expansion of its analytical capabilities,” said Jeremie Trochu, Division Head for BioAnalytics at Catalent. “By establishing significant additional capacity here on the East Coast, we can offer our customers greater flexibility and expanded support services across the biologics and advanced modalities development pipeline.”
New positions include scientists, engineers, and lab associates with varying salaries. Once all the positions are filled, the project has a potential payroll impact of more than $18.3 million per year for the region.
“North Carolina is a leading life sciences cluster with a 10 percent increase in pharmaceutical manufacturing businesses over the past five years,” said N.C. Commerce Secretary Machelle Baker Sanders. “With the largest pharmaceutical manufacturing workforce in the southeastern United States, Tier 1 research network, and a strong transportation system for global distribution, we believe Catalent will be successful doing business here.”
This project from Catalent will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the eight-year term of the grant, the project is estimated to grow the state’s economy by more than $378 million. Using a formula that takes into account the new tax revenues generated by the 201 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $805,500 spread over eight years.
Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because Catalent is locating to Durham County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $268,000 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business.
“Congratulations to Catalent on this expansion and major investment in Durham County,” said N.C. Representative Zack Hawkins. “With our pipeline of researchers, developers and thought leaders in the Research Triangle Park, North Carolina has the winning formula to support this company’s bright future.”
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of N.C. on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Biotechnology Center, Durham County, and the Greater Durham Chamber of Commerce.