Teva Creates 800 New Jobs As HQ Moves to New Jersey
Teva Pharmaceutical Industries Limited is moving its U.S. headquarters to Parsippany-Troy Hills, New Jersey as part of a plan to centralize its operations on the continent, New Jersey Gov. Phil Murphy announced.
Israel-based Teva’s current U.S. headquarters is located in North Wales, Penn. The company plans to move its facility and more than 800 jobs about 80 miles north to Parsippany-Troy Hills, N.J. In his announcement, Gov. Murphy said the pharma giant’s move to New Jersey will support more than 1,000 high-paying jobs in the state, which includes the transfer of those 800 positions. Teva, according to the governor’s office, expects to transfer and create 843 jobs and retain 232 existing positions. The median annual wage for the jobs in New Jersey will be $128,073.
Since the end of 2017, Teva has been paring down its space as it wrangles a massive debt load. In December Teva Chief Executive Officer Kåre Schultz pulled the trigger on a comprehensive restructuring plan that includes the elimination of 25 percent of the company’s global workforce, approximately 14,000 jobs, as well as the closure of a number of R&D facilities.
Teva has an existing site in Parsippany-Troy Hills. In order to accommodate the expanded number of employees and jobs at the New Jersey site, Teva intends to add an additional 35,000 square feet, according to the report.
“The presence of global life sciences companies like Teva Pharmaceuticals is critical to New Jersey’s ability to strengthen a thriving innovation ecosystem,” Murphy said in a statement. “We are thrilled to expand our welcome to Teva, and its more than 1,000 employees, in the Garden State – the place to be for the world’s most competitive life sciences companies.”
Teva’s move to New Jersey was supported in part by tax credits authorized by the New Jersey Economic Development Authority. The Philadelphia Business Journal reported that the tax credits are for $40 million. The credits were approved in June. Tim Sullivan, chief executive officer of the Economic Development Authority, said Teva’s decision to move its operations to New Jersey is the “latest evidence of the enduring strength of our life sciences industry and New Jersey’s value proposition to the world’s leading companies.”
New Jersey is a popular spot for the biotech industry. There are more than 3,000 life science companies in the state and more continue to come. Last month Korea-based Enzychem Lifesciences announced it will open its U.S. headquarters there. Last month China-based WuXi AppTec officially opened its expanded Laboratory Testing Division (LTD) facility in New Jersey, and earlier this year pharma giant Celgene announced plans to open a 16,000 square-foot biopharma incubator on its corporate campus in New Jersey.
While Teva is moving the bulk of its Pennsylvania site to New Jersey, the company is not ending its presence in Pennsylvania. Brendan O’Grady, head of North America commercial operations for Teva, told the Business Journal that the company will retain a "significant presence" in Pennsylvania. Additionally, Teva spokeswoman Elizabeth DeLuca also told the Business Journal that the company anticipates maintaining between 500 and 600 “highly-skilled life science employees” at Teva’s R&D site in West Chester, Penn.