News: Brokerage

Suffolk County IDA gives preliminary approval for ScieGen Pharmaceuticals Long Island expansion

Hauppauge, NY In light of the COVID-19 pandemic, the importance of economic development and strengthening the economy is a foremost priority. In a move that will result in a $15.5 million investment and add 106 jobs to the workforce, the Suffolk County Industrial Development Agency (IDA) has preliminarily approved a transaction to assist ScieGen Pharmaceuticals, Inc. in converting and renovating 65,000 s/f of  92,000 s/f space at 330 Oser Ave. The expansion will assist ScieGen, a subsidiary of Bactolac Pharmaceutical, Inc., meet their growing production demands. 

“At a time when so many are losing their jobs and businesses are struggling to keep the doors open, we are fortunate to have a solid company, rooted right here in Suffolk County, ready to make a sizable investment that will create more than 100 jobs,” said Tony Catapano, executive director of the Suffolk County IDA. 

“During the height of a public health and economic crisis, the Suffolk IDA is pleased to assist ScieGen expand their capacity for manufacturing pharmaceuticals while also creating opportunities for our residents.”

ScieGen got their start in 2009 by producing low-cost alternatives to prescription drugs and medications. The company has expanded to multiple locations in the city, and all of its facilities are FDA approved. Bactolac was established in 1995 and has grown from a single, 5,000 s/ffacility in Westbury to multiple facilities across Long Island in the Long Island Innovation Park. Bactolac’s facilities are cGMP certified and FDA registered for the manufacturing of vitamins and dietary supplements. The two companies combine for over 700 employees, and their past ventures with the Suffolk IDA have often resulted in dozens of additional jobs added than originally anticipated when granted IDA assistance.

“We’re excited to continue to grow on Long Island and develop a much-needed production space for pharmaceutical manufacturing,” said Bactolac Pharmaceutical Inc.’s, chief financial officer Renee Reynolds. “The Suffolk IDA continues to be an active partner in our growth, and their assistance will greatly help us continue to employ hundreds of Long Islanders and produce essential medications.”

The project will focus on renovating a space that was originally intended primarily for warehousing. Capsule filling, tablet compression and coating, granulation, packaging, offices, washrooms and a cafeteria will occupy the first floor of the Oser Ave. space. The mezzanine floor will comprise process rooms for tablet feeding, quality control labs, blending and in-process storage. Significant HVAC and processing equipment modifications will have to be made to ensure the production areas are FDA-compliant. ScieGen will aim to utilize Long Island-based vendors and contractors throughout the project. In the last three years alone, the two companies have expended over $121 million to local vendors and contractors.

“A continued partnership with ScieGen is a win for Long Island and its pharmaceutical manufacturing industry, especially during these incredibly challenging times,” said Kelly Morris, deputy executive director of the Suffolk County IDA. “The companies employ hundreds of Long Island residents and provide millions in tax revenue for the region and we are proud that they call Suffolk County home.” 

The Suffolk County Industrial Development Agency (IDA) is a public benefit corporation of the State of New York. The purpose of the agency is to promote economic development within Suffolk County. The operations of the agency are not supported by taxpayer funds, but rather fees generated by the applicants. The Suffolk County IDA works in synergy with Suffolk County executive Steven Bellone and the Suffolk County Department of Economic Development and Planning to foster positive economic development within the County. 

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