About the announcement
Pfizer (PFE) announced on July 24 that it will build a sterile injectable production facility in Portage, Michigan. The facility is slated to be one of the most advanced facilities for sterile injectable pharmaceutical production.
The above chart shows key highlights of Pfizer’s sterile injectable facility in Michigan.
About the facility
Pfizer’s plan to build the facility in Michigan demonstrates its commitment to US manufacturing. The company plans to invest around $465 million towards building this facility, which will strengthen its production capabilities.
Some key highlights of its modular aseptic processing (or MAP) facility are as follows:
- It will be a 4,00,000-square-foot multi-story production facility.
- The facility is expected to result in 450 new jobs over the next few years.
- The new facility expands Pfizer’s presence in Portage, which is in Kalamazoo County.
The company has invested ~$1.0 billion in Kalamazoo County in the last decade. The company announced that it plans to invest ~$1.1 billion over the next six years in Kalamazoo County.
The site leader for the Portage plant commented, “Sterile drug product manufacturing is incredibly complex. This contemporary facility will combine cutting-edge technology and a highly talented workforce to assure we remain a trusted and reliable supplier of these therapies to patients.”
Pfizer stock rose ~1.3% to the last price of $37.70 on July 24 driven by the announcement about the new facility. Pfizer stock has increased ~13.1% over the last 12 months, while the stock price has increased by ~4.1% in 2018 year-to-date.
Notably, the Health Care Select Sector SPDR ETF (XLV) holds 6.4% of its total investments in Pfizer (PFE), 5.0% in Merck (MRK), 10.0% in Johnson & Johnson (JNJ), and 2.7% in Bristol-Myers Squibb (BMY).