The New Jersey-based firm said it has plans to expand its vaccine manufacturing facility with $100 million that will accommodate additional expansions. The expansion will boost Merck's production capacity of measles, mumps and rubella, chicken pox and shingles. At present Merck is the only company marketing a vaccine for shingles, Zostavax, which debuted in 2006. Zostavax has been tipped to make sales of more than $500 million in 2009.
Last year one of Merck's rivals in the vaccine sector, GlaxoSmithKline, predicted that the market would quadruple in size to reach £17-£24 billion in 2015. It is annually valued at around £5 billion.
The custom-designed 115,000 square feet facility provides room for formulation equipment, lyophilisation equipment, automatic inspection equipment, testing labs, and high-speed packaging. Construction is scheduled to begin in 2007 and be completed in 2010, provided the Durham county commisioners approve an incentive of $1 million. They are scheduled to vote on the local incentive grant on 8 January 2007.
"Merck worked closely with the State of North Carolina and local officials on the siting of this expansion project, and we are confident the grant will be approved," Patrick Witmer, a Merck & Co spokesperson, told In-PharmaTechnologist.
"In 2004, the State of North Carolina approved a significant incentive package to help secure the location of Merck's Vaccine Manufacturing Facility in Durham. These kinds of incentives are often provided by state and local governments to help secure new investments in a highly competitive environment."
Merck & Co currently operates 28 manufacturing facilities around the world. In 2004, the company started construction of a 235,000 square feet facility in Treyburn Corporate Park, Durham, North Carolina, worth $300 million and to be completed in 2007. Production is due to start in 2008, employing around 200 people. The $100 million expansion in Durham will create an additional 50-60 jobs.
"Merck'c expansion in Durham further strengthens North Carolina's leadership position in the life sciences industry," said Governor Mike Easley.
"This decision shows the effectiveness of the state's top ranked business climate and investments in education."