Start-up pharmaceutical company Oxford Pharmaceuticals broke ground for the construction of a generic drug manufacturing and distribution facility in Jefferson County, Birmingham, Alabama, US, in September 2015. The facility was opened in August 2016.

Built to comply with good manufacturing practices (GMP), the facility designs and produces various generic drugs for sale worldwide. It employs approximately 200 people.

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

State, city and county provided support to the project through a number of incentives. The project created diversified work opportunities at Birmingham and helps its industrial and economic development.

Location of the generic drug production facility

The plant is 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 the competitive advantages of the plant.

Financing

The new generic drug production facility was constructed with a $29.4m investment. 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 benefits.

The city of Birmingham is providing 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 UK pharmaceutical maker announced its investment for its first plant in Birmingham in November 2014. The generics facility spans approximately 120,000ft² and is built over a greenfield site in Metropolitan Park.

Operations were facilitated initially in Alabama’s Innovation Depot until operations were started and staff recruited at the plant. It moved to the new facility upon completion of construction.

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

Contractors involved

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

Marketing commentary

Oxford Pharmaceuticals is a new venture founded in Oxford, UK, and is 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.