Setting up Shop Over the Pond

Shire Pharmaceuticals, a global specialty biopharmaceutical company focused on offering treatments in Attention Deficit Hyperactivity Disorder (ADHD), gastrointestinal, renal disease, and human genetic therapies announced in May 2004 that it would establish its U.S. headquarters to Wayne, Pennsylvania in Chester County.

The company identified its new home in the Greater Philadelphia Region as the ideal location to consolidate its activities in the U.S., citing a highly educated workforce (the region is home to 88 colleges and universities) and proximity to New York’s financial center and the Washington DC-based regulatory authorities as well as other pharmaceutical companies in the region, which would provide them with countless collaborative opportunities. Other reasons for the move included the cost of living, quality of life, transportation infrastructure, and access to major, international airports.

After its move to Pennsylvania, Shire experienced substantial growth, achieving double digit revenue and earnings growth in each of the past three years. Shire exceptional growth in Southeastern Pennsylvnaia continues, and in July 2007, Shire announced it would increase its local workforce by nearly 400 employees within the next four years, bringing its Chester County employees base to 1,000. This employment increase is part of its $30 million U.S. headquarters expansion project and represents a 65% increase in employment in its Chester County facilities.

“The Greater Philadelphia region’s productive talent pool, quality of life and easy access to key audiences as well as to our global offices in the U.K. are just a few components that have enabled Shire to expand upon our success in the U.S.,” said Matthew Emmens, Shire’s chief executive officer. “We are proud to be a part of this region’s growing biotechnology and life science industry.”

Incentives
To support Shire’s 2004 relocation project, the Pennsylvania Department of Community and Economic Development provided a $5.2 million financial package which includes $1.2 million in Job Creation Tax Credits, a $2 million Opportunity Grant, $250,000 in Customized Job Training, $500,000 Machinery and Equipment Loan, and a $1.25 million loan through the Pennsylvania Industrial Development Authority
As part of its recent expansion, Shire worked with the Governor’s Action Team to secure a $2.07 million funding offer from DCED, including a $600,000 Opportunity Grant, $300,000 in Customized Job Training assistance and $1.17 million in Job Creation Tax Credits. The company is also eligible to apply for Pennsylvania R&D Tax Credits as its new operation will include significant research functions.