Gov. Beshear: Piramal Pharma Solutions To Expand Lexington Manufacturing Operations With $80 Million Investment Creating 45 Jobs

Facility located on former University of Kentucky Coldstream Laboratories property

FRANKFORT, Ky. (Sept. 30, 2024) - Today, Gov. Andy Beshear highlighted continued growth of Kentucky's manufacturing sector as Piramal Pharma Solutions Inc. announced plans to expand its current Lexington operations, a nearly $80 million investment creating 45 new full-time jobs in the area.

"Kentucky's business-friendly climate, prime location and access to resources make it an ideal destination for companies to locate, expand and thrive," said Gov. Beshear. "The decision by Piramal Pharma Solutions' leadership to expand and reinvest here is a testament to their trust and belief in what this great state has to offer. I want to thank the company's leaders and wish Piramal continued success in Lexington."

Piramal Pharma acquired Coldstream Laboratories from the University of Kentucky in January 2015. Piramal plans to expand the current manufacturing plant by roughly 24,000 square feet, creating room for a new filling line, two commercial-size freeze dryers, a specialized capping machine and an external vial washer. Currently, the Lexington site can manufacture 104 product batches per year (at peak levels). Upon completion of the expansion in Q1 of 2027, this capacity will increase to over 240 annual batches.

"The injectables market has steadily increased in recent years, and there is currently insufficient supply. We are committed to adapting to meet this rising demand," said Peter DeYoung, CEO of Global Pharma. "This expansion will significantly enhance the capacity and capabilities of our Lexington facility, positioning Piramal as a comprehensive partner across the entire product life cycle and enabling us to provide treatment solutions to more patients."

Piramal Pharma Solutions, part of Piramal Pharma Ltd., is a leading global Contract Development and Manufacturing Organization with approvals by the U.S. Food and Drug Administration and the Japan-based Pharmaceuticals and Medical Devices Agency. Piramal Pharma Solutions is a fully integrated company offering analytical, formulation development and manufacturing services with an emphasis on clinical trial to commercial-scale manufacturing of sterile liquid and freeze-dried injectables.

Lexington Mayor Linda Gorton congratulated Piramal Pharma on the expansion: "Congratulations to Piramal Pharma! Your success illustrates that Lexington is a great place to start and grow a business. Lexington sells itself to many companies that are attracted to our high quality of life, low cost of living and highly educated workforce."

Commerce Lexington Inc. President and CEO Bob Quick mentioned the regional economic growth: "Piramal Pharma Solutions' decision to expand its Lexington operations is a significant step forward for our region's economic growth. This investment not only demonstrates Piramal's confidence in our community and workforce but also underscores Lexington's position as a prime location for innovative companies to grow and thrive. We look forward to the positive impact this expansion will have on our local economy and the new opportunities it will create for our residents."

Piramal's investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $32.5 billion in announced investments, creating more than 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth's history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On's transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC's $2 billion, 2,000-job gigafactory project in Warren County; Toyota's $1.3 billion investment in Scott County; and INFAC North America's $53 million investment in Taylor County, among others.

The Governor's administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody's Investors Service.

In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor's Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a "Supply Kentucky" initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.2 million in tax incentives based on the company's investment of $79.8 million and annual targets of:

• Creation and maintenance of 45 Kentucky-resident, full-time jobs across 10 years; and
• Paying an average hourly wage of $59.52 including benefits across those jobs.

Additionally, KEDFA approved Piramal for up to $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Piramal can receive resources from Kentucky's workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on Piramal Pharma Solutions, visit PiramalPharmaSolutions.com.

A detailed community profile for Fayette County can be viewed here.

Information on Kentucky's economic development efforts and programs is available atCED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

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