Looks like New Jersey’s $40 million plan to lure Teva’s headquarters from Pennsylvania worked.
The Israeli company will be moving its U.S. home base to Parsippany-Troy Hills from North Wales, Pennsylvania, according to New Jersey Governor Phil Murphy. It’s a switch that will transfer and create a total of 843 jobs in the state, while 232 workers at the Parsippany-Troy Hills location—which will expand to nearly 350,000 square feet—will keep their positions.
The decision follows approval of a 10-year, $40 million tax incentive plan designed to woo the Israeli drugmaker from its longtime base. The plan required Teva to preserve 1,000 New Jersey jobs to reap the credits.
The move will help Teva, which is in the middle of a $3 billion cost-cutting effort mapped out by new CEO Kåre Schultz, consolidate some of its operations in a central location.
“Reducing the number of sites supports our drive to continue to improve productivity and efficiencies,” Brendan O’Grady, Teva EVP and head of North American commercial, said in a statement.
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It will also bring Teva closer to several major pharma players that call New Jersey home, such as Merck, Bristol-Myers Squibb and Johnson & Johnson.
“We’re pleased to expand our presence in New Jersey, having closer proximity to a vibrant business hub and a dynamic life sciences environment—all while increasing jobs and preserving many existing roles,” O’Grady added.
Right now, it’s not clear how many Pennsylvania workers will lose their jobs on account of the move, though O’Grady said the company would “retain a significant presence” in the state.
Teva’s "plan during the next two years still maintains employment" for between 500 and 600 people at the company's West Chester R&D facility, and an additional 100-plus employees "will continue to support Teva’s operations and distribution services in northeast Pennsylvania," a spokeswoman said by email.
"As the restructuring process, market dynamics and natural attrition are ongoing, we cannot confirm final and definitive numbers," she added.
But the company has already trimmed away some jobs in Pennsylvania since unveiling its restructuring, which is set to claim 14,000 positions. In January, the drugmaker pink-slipped 65 employees across three buildings in Horsham and North Wales, Pennsylvania, 96 across sites in Fraser and Great Valley, and 47 more in West Chester.