Dive Brief:
- Allergan is considering a major expansion for its Waco, Texas-based manufacturing plant, potentially expanding capacity two-fold and adding hundreds of employees, according to the Waco Tribune.
- The Irish-based company has invested $234 million in capital equipment and infrastructure in the plant over the last 6 years, including an already announced $50 million plus investment in 2016. Allergan CEO Brent Saunders visited the plant last week and indicated to the Waco-Tribune that it is on a short list of targets for further expansion.
- A new study from a professor at Baylor University found Allergan's investments have sparked a overall economic impact (direct and indirect) of $406 million in the Central Texas economy. Allergan has trumpeted the study as an example of the company's contributions to regional economies in the U.S.
Dive Insight:
Saunders highlighted how Allergan's expansion plans could boost the plants employment by hundreds of employees, from its current 750. Allergan currently manufactures its dry-eye drug Restasis in Waco.
Underneath this announcement, however, lies the pending $160 billion merger between Pfizer and Alelrgan. Completion of that merger could be a factor in determining whether the additional expansion will be carried out. Industry analysts suggest this could be a reminder to Congress of the economic impact the drugmaker has on regional economies.
According to the Baylor study, Allergan contributed annual local property tax revenue of $3.29 million, and is projected to contribute $3.84 million in 2016.
However, even as Allergan considers increasing capacity and adding jobs in Texas, it has cut back at plants in Iceland and New York.