Amgen said today it will raise its biomanufacturing investment in Holly Springs, NC, to $1.5 billion, by establishing a second drug substance manufacturing plant there—thanks in part to nearly $5 million in economic subsidies from North Carolina.
The second plant is projected to cost $1 billion. It comes two years after Amgen broke ground on its first Holly Springs biomanufacturing facility, a $550 million drug substance manufacturing plant that was set to begin operations in 2025, secure licensure the following year, and employ about 355 people.
The two plants will employ a combined 370 people. Worldwide, Amgen maintains a workforce of more than 27,000.
“This expansion underscores our unwavering focus on bringing transformative medicines to patients around the world,” Robert A. Bradway, Amgen’s chairman and CEO, said in a statement. “North Carolina will be an important part of our global manufacturing network as we continue to meet the growing demand for our innovative therapies while generating significant local economic impact.”
Amgen joined North Carolina Gov. Roy Cooper in announcing the company’s expanded manufacturing plans today.
“North Carolina’s reputation as one of the world’s leading centers for biotechnology soars even higher with today’s decision by Amgen,” stated Cooper, a Democrat who won re-election to a second term last month by 55% to 40% against his Republican challenger, the state’s Lt. Gov. Mark Robinson. “North Carolina offers everything an innovative biotech company needs to succeed, especially our highly trained, dedicated and diverse workforce which is fine-tuned to the needs of this critical industry.”
Up to $4.9M over 12 years
North Carolina’s Economic Investment Committee earlier today approved a Job Development Investment Grant (JDIG) that is projected to give the company up to $4,893,750 over 12 years. The state’s Department of Commerce has projected that the state will more than make up for the grant because the expansion is expected to grow North Carolina’s economy by $3.59 billion.
The JDIG agreement could also result in Amgen contributing up to $1,631,250 toward the state’s Industrial Development Fund–Utility Account, which is designed to help rural communities across the state attract businesses in the future.
Because Holly Springs is in Wake County, to which North Carolina gives its least economic distressed ranking of Tier 3, the JDIG agreement that covers Amgen sets aside some of the new tax revenue to be created by the biotech giant into the Utility Account. In poorer areas of the state, local communities are awarded grants from the Utility Account to build public infrastructure projects, with the aim of enhancing their ability to attract companies.
The tiers are calculated based on average unemployment rate, median household income, percentage growth in population, and adjusted property tax base per capita.
North Carolina has projected the Amgen project will generate a 205% return on investment of public dollars, asserting that for every dollar of potential cost, the state will receive $3.05 in tax revenue. The state departments of Commerce and Revenue are required to verify that Amgen meets incremental job creation and investment targets.
Amgen has been among a succession of biopharmas that have built or agreed to construct facilities in North Carolina in recent years. Johnson & Johnson, for example, in October announced plans to build a more than $2 billion more biologics manufacturing facility in Wilson, NC, to help support company plans to advance more than 70 novel therapy and product expansion filings and launches by the end of this decade.
Novo Nordisk said in June it will spend $4.1 billion to build a second fill-finish plant in Clayton, NC, while arch-rival Eli Lilly that month joined Cooper to cut a ceremonial ribbon marking completion of a new $2 billion-plus manufacturing facility in Concord, NC. Both companies cited rising demand for blockbuster diabetes and weight loss drugs.
In May, Lars Petersen, president and CEO of the global contract development and manufacturing organization (CDMO) Fujifilm Diosynth Biotechnologies, discussed with GEN Edge his company’s decision to invest an additional $1.2 billion into the end-to-end biomanufacturing facility it is constructing in Holly Springs, creating a $3 billion facility.