Pharmaceutical company to build manufacturing facility in NC

Last week, it was announced that Genentech, a founding company in the biotech industry, plans to build a $700 million, 700,000 square-foot manufacturing facility in Holly Springs, a city in the Research Triangle area. 

The announcement was made at the company’s DC headquarters by CEO Ashley Magargee, following approval by the North Carolina Department of Commerce’s Economic Investment Committee. This will be Genentech’s first footprint in North Carolina. 

“World-class companies like Genentech recognize that North Carolina is a leading state for biotechnology,” said Gov. Josh Stein in a press release. “These companies know that our life science workforce is ready to help them deliver their cutting-edge medicines to the world. We are proud to welcome Genentech to North Carolina.”

Headquartered in San Francisco, California, the company is a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY) of Switzerland and is widely recognized as a pioneer in biotechnology, according to a press release. The company has been at the forefront of scientific innovation for over four decades, dedicated to discovering and developing treatments for serious and life-threatening conditions. The Holly Springs facility will serve as a high-volume fill-finish operation. This expansion will support its current portfolio and future pipeline, enhancing Genentech’s ability to meet the growing global demand for its medicines.

“Genentech would like to thank Governor Stein and Commerce Secretary Lilley for their support and for welcoming us to North Carolina,” Magargee said in a press release. “We are thrilled to establish this relationship with the city of Holly Springs, where we will create new manufacturing and construction jobs while making a broader positive impact on the local economy and community for many years to come.”

The new facility will be partially funded through a Job Development Investment Grant (JDIG), and the project is estimated to grow by more than $3 billion over a 12-year term. 

Under the JDIG agreement, the company may receive up to $9,846,750 in potential reimbursements over 12 years, contingent upon creating 420 jobs. These state payments are issued only after the Departments of Commerce and Revenue confirm that the company has achieved its job creation and investment targets.

Additional incentives comprise $756,000 from the North Carolina Community College System, $827,400 from the Department of Commerce’s Division of Workforce Solutions, $19.7 million from Wake County, and $13.7 million from the Town of Holly Springs, according to a press release from Genentech.

According to a press release from the governor, the project is expected to yield a 230% return on the public investment. The governor’s statement also claims JDIG initiatives consistently generate a net positive tax return for the state treasury, even after accounting for the reimbursement payments made to participating companies.

“While the JDIG is often praised as a powerful engine for job creation, a closer look tells a different story,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “According to a recent report, from 2003 through 2024, 203 out of 426 agreements have been terminated or withdrawn before fulfilling their job creation targets. This high failure rate raises serious questions about the program’s effectiveness and whether it delivers on its promises to taxpayers.”

Salaries will vary depending on the position, but the average salary will be $119,833, over $40,000 more than the average Wake County salary of $76,643. The new positions are expected to have an annual payroll impact of more than $50 million. 

“In Gov. Josh Stein’s recent budget proposal, he recommended halting across-the-board income tax cuts for all corporations; meanwhile, he has promoted providing economic incentive deals to select corporations, such as Genentech,” said Harris. “This hypocritical stance toward corporate taxation mirrors the position of former Gov. Roy Cooper during his tenure.”

This is not the first pharmaceutical company funded by JDIG to come to Holly Springs. Amgen broke ground on an expansion back in January. 

“Pharmaceutical company to build manufacturing facility in NC” was originally published on www.carolinajournal.com.