AmbioPharm, a pharmaceutical company that makes peptides, commonly used in weight loss drugs and diabetes treatment, is investing nearly $120M in its SC facility. (File photo/Getty Images)
NORTH AUGUSTA — A pharmaceutical company that makes peptides, commonly used in weight loss drugs and diabetes treatment, is investing nearly $120 million to expand its Aiken County facility.
AmbioPharm, Inc., a peptide manufacturer and developer founded in 2005 and headquartered in North Augusta, pledged to add 202 new jobs as part of its expansion plans. That’s in addition to the 150 people already employed by the company.
“As the global demand for peptide therapeutics accelerates, the need for dependable U.S. manufacturing is extremely important. This expansion enhances our ability to support our client-partners with scalable, high-quality production while creating new opportunities for skilled talent in Aiken County,” AmbioPharm CEO Brian Gregg said in a statement.
AmbioPharm will pay an average of $25.50 per hour for the new jobs, according to Will Williams, president of the Western SC Economic Development Partnership. Operations are expected to come online by the end of the year.
The company did not immediately respond to an interview request from the SC Daily Gazette.
The 68,000-square-foot expansion mirrors upgrades AmbioPharm recently made to its Shanghai, China facility.
The upgrades give the company new technological capabilities to produce larger peptides in greater quantities, more quickly and at a lower cost. This increases the financial viability for drugs that companies previously would have deprioritized or stopped making, according to Gregg.
SC Medicaid program to stop covering expensive weight loss drugs for obesity
The expansion also comes as demand has risen for medications called GLP-1 drugs for use as a weight loss aid, in addition to their longtime use in managing diabetes. The drugs mimic a hormone in the body’s intestinal track to balance blood sugar levels and send the brain a signal that reduces hunger, which an increasing number of people have used to lose weight.
Gregg, in a recent podcast, said while GLP-1 drugs have captured global attention, he sees more uses for peptides beyond weight loss — in oncology, endocrinology, autoimmune diseases, and arthritis.
“That boom in peptide drugs is going to continue well beyond obesity,” he said.
Late last month, AmbioPharm also announced it had entered into merger talks with Switzerland-based CordenPharma.
CordenPharma already has 11 sites in Europe and the United States — one in Boulder, Colorado, and the remainder spread across Switzerland, Italy, Germany, France and Portugal.
Acquiring AmbioPharm would expand its U.S. operations and give it access to the growing Chinese market.
As part of the transaction, AmbioPharm’s shareholders have pledged to reinvest into the combined business. Financial terms were not disclosed.
The Aiken County Council is slated to approve an agreement with the company Tuesday that locks in a property tax rate of 6% for 30 years. The agreement also allows the company to buy down its tax bill by an additional 30% over the same time period.
As part of the agreement, AmbioPharm will pay $1.6 million annually in property taxes annually, Williams said. The company is the seventh largest taxpayer in the county, behind manufacturers Bridgestone, Kimberly Clark and Rolls Royce.
The South Carolina Department of Commerce said AmbioPharm has not received any state-level tax credits.
“AmbioPharm’s success demonstrates the strength of our region as a destination for advanced manufacturing and life sciences, and we look forward to supporting the company’s continued growth for years to come,” Western SC Economic Development Partnership Chairman Richard Pendarvis.
Courtesy of South Carolina Daily Gazette
