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Area Development - Site Selection, Facility Planning and Workforce Development

Piramal Pharma Solutions Expands Lexington, Kentucky, Operations

10/04/2024
Parenteral pharmaceutical products manufacturer Piramal Pharma Solutions Inc. plans to expand its production operations in Lexington, Kentucky. The approximately $80 million project is expected to create 45 jobs.

The investment will include an additional 24,000 square feet for a new filling line, two commercial-size freeze dryers, a specialized capping machine and an external vial washer.

“The injectables market has steadily increased in recent years, and there is currently insufficient supply. We are committed to adapting to meet this rising demand,” said Peter DeYoung, CEO of Global Pharma. “This expansion will significantly enhance the capacity and capabilities of our Lexington facility, positioning Piramal as a comprehensive partner across the entire product life cycle and enabling us to provide treatment solutions to more patients.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.2 million in tax incentives based on the company’s investment of $79.8 million and annual targets of: creation and maintenance of 45 Kentucky-resident, full-time jobs across 10 years; and paying an average hourly wage of $59.52 including benefits across those jobs.

Additionally, KEDFA approved Piramal for up to $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

“Kentucky’s business-friendly climate, prime location and access to resources make it an ideal destination for companies to locate, expand and thrive,” noted Governor Andy Beshear. “The decision by Piramal Pharma Solutions’ leadership to expand and reinvest here is a testament to their trust and belief in what this great state has to offer. I want to thank the company’s leaders and wish Piramal continued success in Lexington.”

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, Piramal can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“Piramal Pharma Solutions’ decision to expand its Lexington operations is a significant step forward for our region’s economic growth,” added Commerce Lexington Inc. President and CEO Bob Quick. “This investment not only demonstrates Piramal’s confidence in our community and workforce but also underscores Lexington’s position as a prime location for innovative companies to grow and thrive. We look forward to the positive impact this expansion will have on our local economy and the new opportunities it will create for our residents.”

Piramal Pharma Solutions, part of Piramal Pharma Ltd., is a fully integrated company offering analytical, formulation development and manufacturing services with an emphasis on clinical trial to commercial-scale manufacturing of sterile liquid and freeze-dried injectables. The company is a Contract Development and Manufacturing Organization with approvals by the U.S. Food and Drug Administration and the Japan-based Pharmaceuticals and Medical Devices Agency.

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