Oxford Pharmaceuticals’ Generic Drug Facility, Birmingham, Alabama, United States of America


The plant will manufacture generic drugs to be sold worldwide.

Oxford Pharmaceuticals, a start-up pharmaceutical company, broke ground for the construction of a generic drug manufacturing and distribution facility in Jefferson County, Birmingham, Alabama, in September 2015.

The facility will design and produce various generic drugs that will be sold worldwide.

The facility, which will comply with good manufacturing practices (GMP), is expected to be completed by the second quarter of 2016 and operational by the third quarter of that year. It will employ 61 people, which will increase by up to 200 people when fully operational.

The groundbreaking ceremony was attended by officials such as Birmingham governor Robert Bentley, mayor William Bell, and Jefferson County commissioner David Carrington.

State, city and county are providing support to the project through a number of incentives. The project will create diversified work opportunities at Birmingham and is expected to help its industrial and economic development.

Location of the generic drug production facility

The plant is being constructed on a 23.3 acre site in Jefferson Metropolitan Park at Lakeshore, 301 Leaf Lake Drive in Birmingham.

The site was acquired from the Jefferson County for $618,000. The county is estimated to gain approximately $1.35m in new tax revenue, including $97,490 in general tax revenue and $1.25m in educational tax revenue, from the project over a ten-year period.

Alabama's largest metro area and resources such as the Innovation Depot and University of Alabama are competitive advantages of the plant.

Financing

The new generic drug production facility is estimated to be constructed with an investment of $29.4m.

Birmingham Business Alliance, the City of Birmingham, the Jefferson County Commission, the Jefferson County Economic Industrial Development Authority and the Alabama Department of Commerce co-operated with Oxford Pharmaceuticals by offering $4.9m in incentives such as additional cash and infrastructural incentives.

The city of Birmingham will provide financial incentives of up to $100,000 over ten years in annual payments of $10,000 a year.

Details of the new generic drug plant in Alabama

The British pharmaceutical maker announced its investment for its first plant in Birmingham in November 2014. The generics facility will span approximately 120,000ft² and will be built over a greenfield site in the Metropolitan Park.

Operations are facilitated initially in Alabama's Innovation Depot until operations are started and staff recruited at the plant by early 2016. It will move to the new facility upon completion of construction.

The rent-free facility from Innovation Depot at the start-up stage and government incentives will aid the company.

Contractors involved

"The new generic drug production facility is estimated to be constructed with an investment of $29.4m."

Robins & Morton is the general contractor for the project, while NOLA/Van Peursem Architects, a practice based in Huntsville, provided design and architecture services. Sian & Associates, based in Birmingham, provided engineering services.

Marketing commentary

Oxford Pharmaceuticals is a new venture founded in Oxford, England, that will be based in Birmingham. The company aims to produce, package and conduct research on generic drugs at the Alabama plant. It is determined to produce all varieties of generic drugs and sell them worldwide.

Apart from the rent-free facility through Innovation Depot's Soft Landing Designation, the start-up is also getting life sciences and pharmaceutical consulting support from the University of Alabama at Birmingham.