JDIG funds pharmaceutical manufacturer in Durham

One of the world’s largest biopharmaceutical manufacturers, AbbVie Inc., headquartered in Illinois, is coming to North Carolina, announced Gov. Josh Stein on April 22, and will invest $1.4 billion to build a 185-acre manufacturing campus in Durham, promising to create 734 jobs. 

“We welcome AbbVie’s major investment to North Carolina,” said Stein, in a press release. “When you combine our world-renowned research and innovation with a strong, thriving life sciences hub, North Carolina quickly becomes the premier location for biopharmaceutical companies to do business.”

As part of a $100 billion US commitment to research and development (R&D) capital investments and manufacturing over the next decade, the Durham Campus will be the company’s first investment in the state of North Carolina. The facility will support AbbVie’s manufacturing across therapeutic areas, including immunology, neuroscience, and oncology, by integrating laboratory innovations and enhanced manufacturing with artificial intelligence. The company’s portfolio also includes products and services from Allergan Aesthetics. 

“AbbVie’s announcement is a major investment, but it’s worth looking at the JDIG’s track record over time,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “According to the state’s data, from FY 2003-25, 449 agreements have been awarded, yet only 50 have been completed successfully, while 222 have been terminated or withdrawn. That long-term gap between announcements and outcomes shows why lasting economic growth depends more on keeping taxes low and energy costs affordable for all employers than on targeted incentive deals.” 

Jobs will include engineers, lab technicians, manufacturing operators, and scientists, while salaries will vary by position. The average salary will be $118,041. Durham County’s average salary is $102,817, meaning the average salary at AbbVie will exceed the average county salary by $15,224. 

The Economic Investment Committee of the North Carolina Department of Commerce approved a Job Development Investment Grant (JDIG) to fund the project partially. The project is projected to add $8 billion to the state’s economy over a 12-year period. 

With tax revenue generated by new jobs and capital investment of $1.295 billion, calculated by a formula that accounts for new tax revenue, the JDIG agreement authorizes a reimbursement of up to $19,347,000, spread over 12 years. State payments are made only after the NCDOC completes its annual performance verification, ensuring that the company has met hiring and investment targets. 

Durham County is a Tier 3 county under the state’s economic tier system, meaning it is among the 20 least economically distressed counties in the state. Because the county falls in Tier 3, the JDIG agreement also calls for moving up to $6,449,000 into the state’s Industrial Development Fund — Utility Account. 

“JDIG funds pharmaceutical manufacturer in Durham” was originally published on www.carolinajournal.com.