New York politicians are eager to keep pharma manufacturing plants open and hiring, and they're handing out tax credits to companies willing to stick it out in the state. The latest beneficiary is India’s Strides Pharma, which has vowed to pump $42 million into upgrades at a former Endo manufacturing facility in New York that it recently acquired.
As part of an agreement to receive up to $10 million in tax credits from New York, Strides will retain 215 employees at the facility and create an additional 40 positions, according to the office of Governor Kathy Hochul. Strides also has operations in New Jersey and Florida.
Strides picked up the facility, based in Chestnut Ridge, as part of a deal (PDF) with Endo announced in early August. That agreement also gave Stride several approval applications for generic drugs. At the time, Stride stated that the total market for the acquired portfolio was $4.7 billion.
Endo had been trimming jobs at the New York plant since 2016, citing a change in the opioid market and its own priorities. The fate of the site was uncertain after Endo announced a year ago that it planned to exit manufacturing facilities in New York and California, which would require cutting 560 companywide jobs by the first half of 2023. The exits would save the company $85 million to $95 million annually, it said.
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Strides is expected to manufacture generics and brand-name drugs at the 200,000-square foot plant, which has an annual capacity of 2 billion units, the governor’s office said.
“Strategic business development is a top priority for Strides as we look to drive sustainable growth and further bolster and balance our product portfolio,” Terrance Coughlin, Strides CEO, said in a statement. “Strides will retain Endo International employees and generate further employment opportunities in the Mid-Hudson region.”
Editor's Note: This story has been updated to note that Strides' deal with Endo in August could address a $4.7 billion market.