City Council OKs deal that enables Insys to expand Round Rock operations
Pharma manufacturer will hire 30 additional employes, invest $10.5 million in new facility
Insys Therapeutics, a local pharmaceutical manufacturer expanding their employment by 400 percent and moving into a larger facility in Round Rock, was awarded an economic development incentives package at the Thursday, Nov. 14, City Council meeting.
"It is always exciting when an existing company decides to expand in Round Rock," Mayor Alan McGraw said. "We know we aren't the only option for a business location, but we try to be the best option. When a company that has already done business with us decides to keep growing here, that is a great statement about the community."
The company, which currently employs 11 people at its manufacturing facility here, will be relocating to a 53,000-square-foot facility at 2700 Oakmont Drive beginning next month. It plans to be operational by August 2014 and will hire an additional 30 people over the next four years at an average salary of $50,000. Insys' minimum total investment for the expansion will be $10.5 million.
"The manufacturing facility in Round Rock will support Insys Therapeutics by providing manufacturing and research and development capabilities for future growth," Insys Director of Operations Bryan Waltrip said. "This continued growth will provide additional jobs for the local community and contribute to the continued economic growth in this area. We are excited both as a company and as a local partner to be a part of this incredible opportunity,"
Although the company was definitely growing, it wasn't exactly sure where to grow, according to Waltrip. It internally discussed areas near its headquarters in Arizona, but decided to remain in the Austin area to retain the employees that were already trained in the highly specialized process and equipment. After looking at several locations in North Austin, they found one in their own back yard.
"As a manufacturing facility, we will have other businesses located near 2700 Oakmont that reflect similar technologies," Waltrip said. "Additionally, we are excited to be near an area with continued growth in the educational sector with the recent additions of Austin Community College, Texas State University - Round Rock, and Texas A&M Health Science Center."
Headquartered in Chandler, Ariz., Insys Therapeutics has grown from a small biotech company of 20 people to nearly 200 employees in the last 12 months. Its commercial launch of Subsys, a sublingual fentanyl spray, and generic Dronabinol in 2012 enabled it to move forward with development of future pharmaceutical products.
The company's IPO occurred in May of 2013 and is currently the number one IPO this year with a growth of over 400 percent since opening. The success has allowed Insys to continue to invest in future growth, including the expansion of its Round Rock manufacturing facility.
Incentives for the expansion will include a five year property tax abatement beginning in 2015 for 100 percent in year one, 75 percent in year two, and 50 percent in years three through five; $150,000 for capital expenditures; and $50,000 for job creation over a four-year period. The payback to the City in economic impact from this project is estimated at 3.5 years.
"Bioscience is one of our major industry clusters and target industries here in Round Rock," said Bryant Smith, Chair of the Round Rock Chamber of Commerce and Economic Development Partnership. "This type of facility is a great compliment to the businesses already in the area and their expansion will help develop the foundation we are building for future growth in the bioscience industry."
"Business retention is a top priority of our economic development efforts," said Jim Boles, chairman of the Economic Development Momentum Committee. "We are thrilled to retain Insys and assist them with their expansion."
Posted: Friday, November 15, 2013