Biogen Idec is preparing to expand its Research Triangle Park campus, reinforcing the Massachusetts drug company’s commitment to its operations in this region.
Officials plan to hold a ceremony on Thursday to begin construction of a 180,000-square-foot building. It will include a five-story administrative office wing and amenities such as cafeteria, auditorium and conference rooms.
The new space will give Biogen’s nearly 850 existing employees more room, allow the company to exit some leased offices and could lead to additional hiring in the future.
“We’re confident we will see job growth in RTP,” although it’s too soon to provide specific numbers, said spokesman Mike McBrierty.
That’s one reason Biogen didn’t seek state or local incentives to help pay for the project. Such awards typically are tied to job creation milestones.
“There are just so many variables that go into headcount projections, we didn’t have the confidence” to seek incentives, McBrierty said. He declined to disclose the company’s investment in the expansion.
The new building, which is expected to be ready later next year, will allow Biogen to move about 275 people who work out of leased space in Durham, consolidating its footprint and reducing its real-estate costs. Those employees answer patient questions and provide other support services.
Biogen disclosed initial plans for the new building in February, but didn’t reveal many details. The company already occupies about 550,000 square feet of manufacturing, office, warehouse and lab space at its RTP campus.
Some of the company’s local workers make the multiple sclerosis treatments Tysabri and Avonex.
The RTP operations also produce so-called biologics drugs for other companies. That process involves using live cells, as opposed to drugs made from chemicals or other compounds.
“As Biogen Idec’s product pipeline matures, manufacturing activity at the RTP site continues to increase,” said John G. Cox, executive vice president of pharmaceutical operations and technology. “We look forward to using our expertise in biologics manufacturing to bring new therapies to patients with unmet medical needs around the world.”
The expansion follows a recent restructuring that included closing offices in San Diego and Massachusetts, and eliminating about 13 percent of its worldwide workforce. Last week, Biogen reported that first-quarter revenue rose to $1.2 billion, up 8.5 percent from a year ago, driven by stronger sales of Avonex and other products.
On Thursday, CEO George Scangos also disclosed promising results for an experimental pill to treat MS.
Biogen’s shares surged $13.13, or 15 percent, to close at $99.70.
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