MADISON, N.J., Oct. 5, 2016 /PRNewswire/ -- A new study conducted by Econsult Solutions, Inc., a Philadelphia-based economic consulting firm, found that Allergan's current New Jersey operations generated a combined annual economic impact in the state of $732 million. The economic impact is a direct result of the Company's strong influence on employment in the state, generating more than 2,900 direct, indirect and induced jobs, with total employee compensation of $289 million annually.
In 2017, Allergan will combine most of its New Jersey operations, presently located in five separate locations throughout the state, into a new U.S. Administrative Headquarters in Madison, NJ. The Company will also add 300 new jobs following the combination. It is estimated that Allergan's operations, when combined and expanded, will generate an annual economic impact of $894 million, and will support 3,700 direct, indirect and induced jobs with total employee compensation of $360 million annually.
The economic impact study, titled "The Economic Impact of Allergan's Operations in New Jersey," was conducted and developed by Andrea Mannino, Director and Economist at Econsult Solutions.
"The findings of this study clearly showcase the significant current and future impact of Allergan on the New Jersey economy, as well as its significant contribution to attracting and retaining a highly skilled biopharmaceutical workforce in the state. With its consolidation and expansion of operations in Madison, Allergan will continue to have an important economic and fiscal impact on the state's economy," Mannino said.
"Allergan is very proud to be one of the leading biopharmaceutical companies in this region and in the State of New Jersey, and we have benefited from the state's vibrant healthcare ecosystem. New Jersey remains one of our nation's best locations for biopharmaceutical companies to establish operations and create innovations for the U.S. and the world. It is home to highly skilled pharma talent, research-focused universities, leading healthcare systems, and biopharmaceutical innovators and provides easy access to capital markets," said Brent Saunders, CEO and President of Allergan. "The combination of our operations in New Jersey will continue to benefit both Allergan and New Jersey. It will help us maximize efficiency, enhance collaboration and build stronger bridges between our colleagues as we continue to develop and deliver innovative products for patients around the world. And we will continue to provide critical economic impact for New Jersey's economy."
Additional findings from the Econsult study include:
- Following the 2017 consolidation of Allergan's New Jersey operations and the hiring of 300 additional employees, Allergan's direct economic output will be approximately $536 million each year. This includes salaries paid to its employees as well as other direct operating expenditures.
- It is estimated that Allergan's New Jersey operations support $31 million in annual tax revenues to the state. Following consolidation and expansion of its operations in 2017, it is estimated that Allergan's operations will support $39 million in tax revenues to the state annually.
- The consolidation of the Company's New Jersey operations will involve 400 direct construction jobs and $106.5 million of non-recurring expenditures, which will have a one-time economic impact in the State of New Jersey. The capital spending and other costs associated with the consolidation will potentially generate $245 million in total economic impact and support 750 direct, indirect, and induced jobs.
- The Allergan Foundation, a U.S.-based, private charitable foundation committed to providing a lasting and positive impact in the communities in which Allergan plc employees live and work, has provided significant support through charitable grants and philanthropy in the state. Since 2012, the Foundation has contributed nearly $900,000 in cash contributions to a wide range of nonprofit organizations in New Jersey, with more than $720,000 in contributions in the past two years.
"It's no surprise Allergan has set up shop in New Jersey – the home to more biopharmaceutical and life science companies than anywhere else in the country. Allergan's innovations and cutting-edge treatments add to the palette of groundbreaking work done across the State that will be to the benefit of patients seeking high quality care," said U.S. Congressman Leonard Lance (NJ-07).
"Dynamic life sciences companies like Allergan work every day to find new treatments and cures for the world's most dreaded diseases. This not only benefits patients and advances global human health, it also serves as the engine which drives New Jersey's workforce and economy," said Dean J. Paranicas, President and Chief Executive Officer, HealthCare Institute of New Jersey (HINJ).
The full study is available via the following link: http://www.allergan.com/miscellaneous-pages/allergan-pdf-files/allergan_nj_the_economic_impact_report_sep_2016.pdf
About Allergan's New Jersey Operations
Allergan currently employs more than 1,200 highly skilled workers in the state of New Jersey. The Company's New Jersey operations are located in five locations across the state, including the Company's U.S. Administrative headquarters in Parsippany, commercial and R&D operations in Jersey City, and additional administrative and R&D operations in Rockaway, Bridgewater and New Brunswick. In 2017, Allergan will be combining most of its existing New Jersey facilities into a new 431,500 square foot U.S. Administrative Headquarters in Madison, New Jersey. In addition to relocating more than 1,000 existing New Jersey employees, Allergan will hire 300 new employees who will be located at this new U.S. Administrative Headquarters.
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a bold, global pharmaceutical company and a leader in a new industry model – Growth Pharma. Allergan is focused on developing, manufacturing and commercializing branded pharmaceuticals, devices and biologic products for patients around the world.
Allergan markets a portfolio of leading brands and best-in-class products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories.
Allergan is an industry leader in Open Science, the Company's R&D model, which defines our approach to identifying and developing game-changing ideas and innovation for better patient care. This approach has led to Allergan building one of the broadest development pipelines in the pharmaceutical industry with 70+ mid-to-late stage pipeline programs in development.
Our Company's success is powered by our more than 15,000 global colleagues' commitment to being Bold for Life. Together, we build bridges, power ideas, act fast and drive results for our customers and patients around the world by always doing what it is right.
With commercial operations in approximately 100 countries, Allergan is committed to working with physicians, healthcare providers and patients to deliver innovative and meaningful treatments that help people around the world live healthier lives every day.
For more information, visit Allergan's website at www.Allergan.com.
About Econsult Solutions, Inc.
Econsult Solutions, Inc. ("ESI"). ESI is a Philadelphia-based economic consulting firm that provides businesses and public policy makers with economic consulting services in urban economics, real estate economics, transportation, public infrastructure, development, public policy and finance, community and neighborhood development and planning, as well as expert witness services for litigation support. Its principals are nationally recognized experts in urban development, real estate, government and public policy, planning, transportation, non-profit management, business strategy and administration, as well as litigation and commercial damages. Staff members have outstanding professional and academic credentials, including active positions at the collegiate level, vast experience at the highest levels of the public policy process and extensive consulting experience.
For more information, visit www.econsultsolutions.com.
Allergan plc Forward-Looking Statement
Statements contained in this communication that refer to future events or other non-historical facts are forward-looking statements that reflect Allergan's current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Allergan's current expectations depending upon a number of factors affecting Allergan's business. These factors include, among others, the difficulty of predicting the timing or outcome of FDA approvals or actions, if any; the impact of competitive products and pricing; market acceptance of and continued demand for Allergan's products; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergan's periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan's Annual Report on Form 10-K for the year ended December 31, 2015 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 (such periodic public filings having been filed under the "Actavis plc" name). Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/new-study-showcases-economic-impact-of-allergans-operations-on-new-jersey-economy-300339600.html
SOURCE Allergan plc