Teva has long called Pennsylvania its U.S. home base, but a newly approved tax incentive plan indicates that New Jersey may just be trying to woo it away.
The New Jersey Economic Development Authority has approved a 10-year, $40 million package to make a case for a relocation to Parsippany, New Jersey, Biz reported. To reap the credits, Teva would have to preserve 1,000 New Jersey jobs through a combination of keeping existing positions and bringing on new staff.
The Israeli drugmaker is weighing an HQ switch as it works to implement new CEO Kåre Schultz’s $3 billion cost-cutting drive, a plan that will include 14,000 job cuts when all is said and done. Teva has so far said only that, when it comes to whether it will stay in Pennsylvania or set up camp elsewhere, “those decisions are still being made.”
In the meantime, its Pennsylvania locations have already been hit with layoffs. Back in January, the company let go of 65 employees across three buildings in Horsham and North Wales, 96 across sites in Fraser and Great Valley, and 47 more in West Chester.
In other locales, Teva has shut its doors altogether as it works to bring seven offices under one roof. In New York, pricey space forced Teva to say goodbye, and its D.C. offices were shuttered when the company decided to take lobbyists off the payroll.
Meanwhile, if Teva does land in Parsippany, it’ll be in good pharma company—and New Jersey’s experience at dishing out pharma tax incentives is no small reason why. Several major drugmakers keep U.S. headquarters in New Jersey, including Johnson & Johnson, Novartis and Merck & Co.