NORWICH – The Southern Tier Regional Economic Development Council says Norwich Pharmaceuticals Inc. has signed its contract with the state to officially move forward with significant facility upgrades on the strength of a $2 million award it received as part of Governor Andrew M. Cuomo’s Regional Council initiative.

The project will make the company an even stronger competitor in the pharmaceutical and biotech industries and has the potential to create and retain 361 good paying jobs while spurring local economic growth by paying over $214 million in payroll over the next 10 years. The total project cost is nearly $40 million.

“This significant investment by Norwich Pharmaceuticals is great news for our region from a company that cares just as much for its community as it does about its bottom line,” said David Skorton, president of Cornell University and Regional Council co-chair. “The council understands how important the manufacturing industry is to a healthy regional economy and we will continue to identify key partners in the industry to bring much-needed jobs to our communities.”

“Norwich Pharmaceuticals is making a smart decision to invest in the strong and dedicated workforce we have here in the Southern Tier,” said Tom Tranter, president & CEO of Corning Enterprises and Regional Council co-chair. “This project directly creates good-paying jobs while also encouraging other businesses to invest and expand, which will increase employment opportunities and economic activity in the communities that need it most.”

Norwich Pharmaceuticals was established in Norwich in 1887, and the company has been nationally recognized throughout its history for manufacturing important medications, including Pepto-Bismol and Norwich Aspirin. Now celebrating its 125th anniversary, Norwich Pharmaceuticals has evolved its business model to become a provider of contract development, manufacturing and clinical services for the pharmaceuticals and biotech industries. Norwich’s manufacturing facility is a 375,000 square-foot operation containing fully qualified GMP equipment and capabilities. The company will continue to invest in a low humidity manufacturing suite, conduct utility and water system infrastructure improvements, and build a research and development (R&D) laboratory and pilot plant. The projects will retain 334 full-time permanent jobs and create 37 new full-time permanent jobs over three years, with a private investment of $39 million and operational spending of an additional $150 million.

Terry Novak, President of Norwich Pharmaceuticals, Inc. said, “Norwich Pharmaceuticals is a proud member of the Southern Tier business community, and we are grateful for the relationship we have established during the past 125 years with the families and businesses in the city of Norwich. With the support of Governor Cuomo and the Regional Council, we will remain focused on growing Norwich Pharmaceuticals’ quality reputation as a world class provider of development, manufacturing and clinical services.”

The investment and improvement projects will contribute to the Southern Tier Region’s growth by providing new, skilled employment opportunities that pay above median salaries and will help to recruit and retain New York graduates from area colleges. The project will invest nearly $40 million in the region and assist the company in maintaining its current workforce and provide for additional opportunities to expand its workforce. In addition to these direct benefits, other regional businesses such as Mid-York Press and Stantec Consulting will derive significant benefit from this project resulting in potentially increased investment by these businesses as well.

Last year, a total of $785 million was awarded through the Consolidated Funding Application (CFA) for job creation and community development projects consistent with each region’s strategic plans. As part of that process, Norwich Pharmaceuticals, Inc. was awarded $2 million in Excelsior Jobs Tax Credits from Empire State Development.

Empire State Development President, CEO & Commissioner Kenneth Adams said, “This project is a victory for everyone involved – the company, the state, and most importantly, the people of the Southern Tier. The Regional Council has fostered a successful partnership between Norwich Pharmaceuticals and the state that will result in more jobs for the local community and help drive the regional economy forward.”

The Excelsior Jobs Program provides job creation and investment incentives to firms that create and maintain new jobs or make significant financial investment in such targeted industries as biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing. The Program encourages businesses to expand in and relocate to New York while maintaining strict accountability standards to guarantee that businesses deliver on job and investment commitments.

Senator James L. Seward said, “Norwich Pharmaceuticals is an anchor business in Chenango County and vital to the local economy. This is an ideal example of how the Regional Economic Development Council initiative can be put to use – assisting a long-standing company expand and prepare for continued success. I applaud Empire State Development and Commissioner Kenneth Adams for recognizing the importance of this business expansion and advancing this public/private partnership.”

Assemblyman Clifford Crouch said, “Today, I am very pleased to join the Southern Tier Regional Economic Development Council in announcing Norwich Pharmaceuticals, Inc. contract for significant facility upgrades. Norwich Pharmaceuticals, Inc. has been a shining example of good business for the City of Norwich and this new investment will help ensure more than 360 good-paying jobs will be created or maintained and spur economic growth in the area.”

To learn more about each regional council and their economic development plans, visit www.nyworks.ny.gov.