Piramal Pharma Solutions to invest $10M, add 40 jobs at Coldstream Laboratories
LEXINGTON, Ky. (Feb. 3, 2016) — Coldstream Laboratories, a pharmaceutical manufacturer now owned by Piramal Pharma Solutions, is planning a $10 million expansion that will add 40 jobs at their Coldstream Research Campus location in Lexington, KY.
Piramal Pharma Solutions plans to invest up to $10 million to expand operations at Lexington’s Coldstream Laboratories Inc., creating 40 new jobs, Gov. Matt Bevin and Lexington Mayor Jim Gray announced today. The India-owned company last year purchased Coldstream Labs, which develops and manufactures injectable pharmaceuticals.
“Growth in private-sector employment—particularly high-paying, skilled jobs like these—moves Kentucky forward on the national and global level,” Bevin said. “On behalf of all Kentuckians, I congratulate and thank Piramal Pharma Solutions and Coldstream for this investment to further strengthen Kentucky’s pharmaceutical industry. We are excited by this opportunity to become an increasingly important part of Piramal’s global footprint and look forward to many years of partnership with them.”
Coldstream Labs started in 1991 as the Center for Pharmaceutical Science & Technology, a unit of the University of Kentucky College of Pharmacy. It completed more than 200 development projects that led to clinical trials. In 2007, the college spun off Coldstream Labs as a private company owned by the University of Kentucky Research Foundation.
As a separate independent business, Coldstream Labs gained the ability and technical expertise to manufacture liquid and freeze-dried injectable products. In January 2015, the Research Foundation sold Coldstream Labs to Piramal Pharma Solutions., a global leader in pharmaceutical contract services, and the flagship division of the Mumbai, India-based Piramal Group. Under Piramal, Coldstream Labs can access the financial resources needed to expand its facilities and meet its customers’ needs.
“The excellence of the University of Kentucky Pharmacy program and the brainpower it has brought to Lexington are creating good jobs for our citizens,” Gray said. “These are homegrown jobs that build on our growing reputation in the pharmaceutical industry.”
The Piramal Group operates in more than 30 countries with a presence in 100-plus markets around the world. Piramal Pharma Solutions, a division of Piramal’s flagship company Piramal Enterprises Limited, also maintains U.S. operations in Bethlehem, Pa. in addition to Coldstream Labs.
To encourage the investment and job growth in Lexington, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $800,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA gave Coldstream Labs preliminary approval for up to $140,000 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.
Coldstream Labs can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies are eligible to receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.