Bristol-Myers taps Massachusetts for new drug facility

Bristol-Myers Squibb Co. announced Thursday that it intends to build a new large-scale multi-product bulk biologics manufacturing facility in Devens, Mass., subject to final agreement between the company and the state. Rhode Island, New York and North Carolina were also considered for the facility.

Construction is expected to begin by September and the facility is projected to be operationally complete in 2009. Commercial production of biologic compounds is anticipated to begin in 2011. Once operational, the site will require an initial work force of approximately 350 employees. The facility will be modular in design in order to accommodate future expansion, which would lead to a total of approximately 550 employees at the site.

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The new Devens manufacturing facility would support increased production capacity for commercially available biologic compounds, such as Orencia and biologic compounds currently in development, including the company’s investigational treatments for solid organ transplant rejection and certain types of cancers. The Devens site was selected after an evaluation of potential domestic and international sites, including Rhode Island, New York and North Carolina, the company said.

“The investment in the Devens facility represents a significant commitment toward increasing manufacturing capacity so that we can meet future market demand and research production needs for the company’s biologic compounds,” said Peter R. Dolan, chief executive officer of Bristol-Myers. “Biologics offer tremendous potential in treating a number of serious diseases, and they will play a key role in driving our company’s future growth and success.”

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Bristol-Myers currently manufactures biologic compounds in a facility in Syracuse, N.Y., and finishes and packages biologic compounds in Manati, Puerto Rico. The Syracuse site will remain a component of the company’s biologics strategy serving as a center of process development and early product launch for the company’s biologic compounds. The facility was not designed to accommodate large-scale commercial production, and its manufacturing capacity cannot meet expected market demand for Orencia, the company said.

The Puerto Rico facility will continue to finish and package biologic compounds. In March, the company announced a $200 million investment to expand this facility to accommodate increased filling and finishing needs.

Bristol-Myers also has manufacturing agreements with third-party partners Lonza Biologics Inc. and Celltrion Inc. A supplemental Biologics Licensing Application was recently approved for the production of Orencia at the Lonza manufacturing facility in New Hampshire.

“Bristol-Myers is excited about locating this facility in Massachusetts and we look forward to collaborating with state and local government officials and residents to become a positive presence in the Devens community,” said Dolan. “While all of the potential sites we evaluated submitted excellent proposals, ultimately the Devens site best meets the criteria for the company’s long-term manufacturing operations. Our existing biologic manufacturing sites in Syracuse and Puerto Rico are important components of the company’s overall biologics strategy, and this new facility represents a significant additional milestone as we look to our growing innovative biologics portfolio to further strengthen our presence in our disease areas of focus.”

“Bristol-Myers’ new manufacturing facility in Devens will provide important benefits to the community and to our economy, creating new jobs and stimulating the development of our high-technology sector,” said Massachusetts Gov. Mitt Romney. “The people of Devens and Massachusetts welcome Bristol-Myers to our community, and we look forward to a long and productive relationship with the company.”

Bristol-Myers is a global pharmaceutical and related health care products company.

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