Economic Development Incentives by ESD Allow Pine Pharmaceuticals to Create 40 New Full-Time Jobs and Maintain 85 Current Employees
New York (STL.News) Governor Andrew M. Cuomo today announced the expansion of Pine Pharmaceuticals LLC’s manufacturing plant in the Town of Tonawanda. The drug outsourcing company – which moved to the 25,000-square-foot building at 355 Riverwalk Parkway in the Riverview Solar Technology Park in May of 2018 – will be tripling the size of the facility, due to its tremendous growth in the past two years, which has seen the company double its employment. The company is investing $8.6 million for a 50,000-square-foot addition to the existing state-of-the-art facility which will allow it to hire 40 new full-time permanent employees and retain 85 existing full-time permanent employees. Pine Pharmaceuticals is receiving $650,000 in refundable tax credits from the state’s Excelsior Jobs Program.
“If COVID-19 has taught us anything, it’s that we need to stop relying on foreign distributors and increase production of critical medical supplies and resources, including pharmaceuticals, right here in the United States, ” Governor Cuomo said. “As we work to build back better, our strategic incentives will allow Pine Pharmaceuticals to once again expand its operations in Western New York, where a thriving advanced manufacturing economy has been creating quality jobs and uplifting communities for years now as a result of New York’s ongoing investments in the region.”
Pine Pharmaceuticals provides pharmaceutical compounding, including specialized sterile formulations serving ophthalmologists, retinal specialists, hospitals, ambulatory surgery centers, medical practices and clinics. The sterile compounded preparations are made to order and formulated using cutting-edge technology and industry-leading quality assurance practices. Also, as an FDA-registered 503B outsourcing facility, Pine Pharmaceuticals has the unique ability to address drug shortages by working with hospitals, clinics, medical practices and physician offices to provide sterile compounded pharmaceuticals.
The firm also benefits from a 136-kilowatt low-cost power allocation from the New York Power Authority’s ReCharge NY program as part of its commitment to retain jobs and invest capital. ReCharge NY, launched by the Governor in 2011, offers up to seven-year power contracts. Half of the power—455 megawatts—is from NYPA’s Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants, which provide some of the greenest, cleanest and lowest-cost electricity in the state. The remaining 455 megawatts is lower-cost power bought by NYPA on the wholesale market.
Pine Pharmaceuticals LLC Owner Alfonse Muto said, “This expansion marks the start of an exciting time for our company, our community, and our industry. With New York State’s support, we will be able to dramatically increase the production of essential drugs that people around the country rely on every day and enrich our local economy for years to come.”
The new single-story addition to the sterile compounding facility will include warehousing, quality, and manufacturing space. Other significant investment includes ISO-certified cleanrooms and manufacturing equipment. The company will use the additional space to produce IV bags and other complex products, as well as for inspection, packaging, labeling and storage. The entire building was designed from the ground up to comply with the US Food and Drug Administration’s Current Good Manufacturing Practice. Company officials are seeking to begin construction in March and complete the addition by the end of 2021.
Empire State Development Acting Commissioner and President & CEO-designate Eric Gertler said, “Pine Pharmaceuticals started out as a family business and has grown in size and success from there. This expansion continues their commitment to Western New York and reflects our strategic investment in keeping successful companies in New York State, to create the cutting-edge products and jobs critical to economic growth.”
Gil C. Quiniones, NYPA President and CEO, said, “This expansion project by Pine Pharmaceuticals is a wonderful success story for the Governor’s ReCharge NY program. The low-cost power program is supporting hundreds of thousands of jobs throughout New York, encouraging firms to stay and grow in the state.”
Montante Construction President Douglas Elia said, “We look forward to once again partnering with Pine Pharmaceuticals on the expansion of the Muto family’s manufacturing facility in Riverview Solar Technology Park in Tonawanda. Pine Pharmaceuticals is a great example of a local company forging ahead with an exciting project that will bring value to our region in a business sector that we believe will continue to be invested in. We’re happy to construct a facility that will allow Pine to continue to make high-demand medical products in Western New York for healthcare practices, clinics, hospitals and other health facilities across the United States.”
Senator Sean Ryan said, “Creating good-paying jobs is an essential part of our plans to move Western New York’s economy forward. The healthcare industry is a growing sector in our regional economy, and with support from New York State, businesses like Pine Pharmaceuticals are creating more jobs for local workers. I thank Pine Pharmaceuticals for their continued commitment to the Tonawanda community and look forward to their future success and growth.”
Senator Tim Kennedy said, “As we build back better from this pandemic, it’s these kind of critical investments that will re-energize our economy and our workforce. I commend Pine Pharmaceuticals for choosing to grow its manufacturing footprint here in Western New York, and look forward to its continued expansion and commitment to our region in the years to come.”
Assemblyman William Conrad said, “Pine Pharmaceuticals’ nearly $9 million expansion is coming at a time when Western New York needs to see encouraging signs of economic growth. The company’s move to triple the size of its facility at the Town’s Riverview Solar Technology Park, while adding 40 full-time jobs, reminds us that our recovery from Covid-19 is within reach, as is the Town’s overarching goal of redeveloping its waterfront. I am pleased New York State partnered with Pine Pharmaceuticals to incentivize its continued investment in the Town of Tonawanda.”
Supervisor Joseph Emminger said, “The Town is very grateful to Pine Pharmaceuticals’ ownership and the State for working together to make this $8.6 million expansion a reality in TM Montante’s Riverview Solar Technology Park and along with it an additional 40 jobs to our region. Tonawanda is on the move and this is just another example of why.”