New Jersey dangles tax savings in front of Teva in bid to bag US HQ as revamp costs 200-plus jobs
In turmoil lies opportunity. And that may play out well for the New Jersey biopharma industry.
The state economic development group has laid out $40 million in tax savings to tempt Teva into moving its US headquarters to a 345,000-square-foot space space at 400 Interpace Parkway in Parsippany.
According to a report in NJBIZ, the state is looking for Teva to bring in 843 jobs, adding them to the more than 200 already in place in Parsippany.
A Teva spokesperson tells me:
We are pleased that the NJ Economic Development Authority Directors approved an offer of incentives to Teva. However, Teva will not comment further on the location until a final decision is reached on the NJ Tax incentives.
Teva, of course, is undergoing a draconian shakeup under new CEO Kåre Schultz, who has outlined general plans to carve out $3 billion in spending at the Israel-based company. That led to WARN notices in Pennsylvania in January covering more than 200 jobs that are being axed in and around their current HQ in North Wales, PA. And more may follow.
Altogether Schultz plans to close dozens of facilities around the world, shutting close to half of the 80 sites they own. And 14,000 jobs are on the chopping block.
Those tax cuts New Jersey is dangling in front of Teva are conditional on preserving 1,000 jobs. And if Teva goes for it, as they consider consolidating their US operations under one roof, New Jersey believes that relocation will be worth a net benefit of $247 million over 20 years — which is more or less infinity in the pharma business.
According to the Philadelphia Business Journal, the company has about 2,000 staffers scattered around Pennsylvania. There’s no final word on how many are expected to make it through the restructuring with their jobs intact.