Teva's picked an address in Parsippany, New Jersey, and the dirt's about to fly

Teva's 12-year New Jersey lease will reportedly set the company back $9 million. (Teva)

Teva now knows where it's headed in New Jersey, but it’s still got plenty of work to do before it can move into its new U.S. headquarters.

The Israeli pharma, which said earlier this month that it would move its U.S. home from Pennsylvania to the Garden State, has inked a 12-year lease for a 360,000-square-foot office building in Parsippany, reports.

The office space won’t come cheap. The generics giant will reportedly shell out about $9 million in rent as part of a deal that “took a lot of give and take on both sides,” according to Harvey Rosenblatt, founder of the real estate developer that owns and manages the property.

Free Daily Newsletter

Like this story? Subscribe to FiercePharma!

Biopharma is a fast-growing world where big ideas come along daily. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. Sign up today to get pharma news and updates delivered to your inbox and read on the go.

The fact that Teva was already a tenant in the building, which is part of the MCC Blue office complex on Parsippany’s Interspace Parkway, helped seal the deal.

RELATED: Teva, lured by $40M tax break, packs its bags for New Jersey HQ move

On top of the hefty rent sum, Teva will be undertaking a massive construction project. “It is an astronomical build-out process,” Rosenblatt told the publication.

Thanks to an incentive package from New Jersey, though, Teva has the funds to get it done. To lure the pharma from its longtime Pennsylvania headquarters in North Wales, the state offered up $40 million in tax credits.

RELATED: What’s a move to New Jersey worth? For Teva’s U.S. headquarters, $40M in tax breaks

Teva’s move comes as the company works to consolidate sites and increase efficiency as part of its $3 billion cost-cutting drive. The plan, which will claim 14,000 jobs when all is said and done, had already affected Teva’s Pennsylvania workers before the company locked in on a relocation.

But Teva may have been weighing a switch long before it actually pulled the trigger. The company had been in touch with state officials over the last few years, and it had “various interactions” with the New Jersey Economic Development Authority from 2009 on, a public affairs director at the authority told The state also approved a tax credit package for Teva in early 2012, but Teva later withdrew its application.

Suggested Articles

The Pharma Lions shortlist for 2019 lives up to its name with just 31 entries making the cut. But it's still good news for the 12 drugmaker finalists.

Pharma companies filed suit Friday to block the new HHS rule that requires drugmakers to put list prices in TV ads.

Cannes Lions Health kicks off Monday, and attendees are looking for some breakouts—leading-edge tech, creativity and inspiration, for instance.