Rising pharma invests $135 million in Parsippany

A rising force in the United States pharmaceutical industry will soon be manufacturing and shipping about $200 million in product annually from its new headquarters in Parsippany.

Switzerland-based Ferring Pharmaceuticals officially opened its new U.S. Operations Center Thursday on a 25-acre campus on Interpace Parkway, where the company has invested $135 million in an existing building, constructing offices, laboratories, a clinical-testing department and even literally raising the walls of one wing to accommodate its first U.S. manufacturing plant.

Some of the staff moved in last spring. The global biopharmaceutical company — a U.S. market leader in infertility, obstetrics-gynecology and orthopedics — is currently busy obtaining certificates and qualifications for from the FDA and other agencies for the labs and manufacturing equipment in hopes of beginning packaging operations there by the first quarter of next year. It hopes to begin manufacturing products there in the first quarter of 2016.

"This grand opening serves as a reminder of our commitment to the U.S., New Jersey and to our long-term view on the science that can make a real difference in the lives of the patients we serve," president and COO Aaron Graff said on Thursday. "As I watch our teams start to integrate into the new operations center, I already see the positive impact the space has on our ability to collaborate across functions within the organization and provide a premium workspace for our employees."

According to Graff, the company initially expects to develop, manufacture, package and ship more than $200 million in products annually to the U.S. market. The center also will house 275 employees, with plans to expand "significantly" over the next two years.

Michel Pettigrew, president and CEO of Ferring Holding Inc., said the company has natural market expansion opportunities in the areas of gastroenterology and urology, where it is a global-market leader but relatively new to the U.S.

Graff said that the company is making a long-term commitment here because, sitting in the state's Big Pharma corridor, there is a large pool of talent to help them penetrate a competitive market.

Having all U.S. operations under one roof, he said, "makes us more nimble, increases speed of communication, alignment and cross functions."

The company loved the 25-acre wooded campus, but had to gut the building to create an modern, efficient and most importantly sterile facility. It also contracted with a company to vertically expand the manufacturing plant with a process that impressed Pettigrew.

"We hired this incredible company that installs these jacks all over the place, all around the walls," he said. "They cut it, they press a button, it's all computer controlled, and over the course of 24 hours, your roof goes up. Once it is up to the right level, they build all around it and close it up. I was amazed."

Ferring has received some state grants typicall awarded to companies expanding in New Jersey, but Graff said they did not seek the millions in tax credits some other large corporations have received as an incentive not to move out of state.

"We did not request any special incentives to be here," Graff said. "We wanted to be here. That is why we bought all this and didn't rent it."

Being a privately-held company instead of a corporation with stockholders and a board also gave Ferring the freedom and flexibility to chart a longer-term course than some of its competitors.

"What big public companies are doing is moving big pieces of their operation all over," Graff said. "We are not publicly traded. We are private. We certainly do not manage the business quarter-to-quarter. We're not as concerned about the financial markets as much as we are the long-term health of the business. We aren't thinking about the next two years or five years. We're thinking about 20 years, 40 years. We dug in for the long haul."

To that end, Graff said the company also has made a commitment to giving back to the community. Initially, the company is focused on assisting veterans, particularly returning veterans, by offering financial, fund-raising and volunteer support. Employees are given four days off a year to perform community service, including the building of veteran housing through Community Hope. Ferring also is working with Picatinny Arsenal to help transition veterans to the private sector, including some they hope can fill jobs in its manufacturing center.

"We don't just talk the talk," Graff said. "We do this."

He expects about 100 new jobs to be created in the manufacturing center over the next 18 months.

"Good jobs," he said. "This is definitely the kind of place you want to work."

It could also be the kind of company that larger pharmaceutical companies might want to acquire.

"We're always approached, no doubt about that," Pettigrew said. "We're not for sale."

"This is just the start of an exciting journey of growth to come," he said. "We hope this new operations center stands as a symbol of our philosophy as a company — a place where our commitment to the science and to our patients is front and center; a learning environment where employees are encouraged to take initiative and stretch beyond their designated role; and a cornerstone of the community, dedicated to giving back."

Staff Writer William Westhoven: 973-428-6627; weesthoven@dailyrecord.com.