Italy-based Sigma-Tau Pharmaceuticals Inc. plans to invest $10.4 million in new equipment at its north-side Indianapolis manufacturing facility, creating 60 jobs by 2019.
The local facility, which does business as Sigma-Tau Pharmasource Inc., currently employs 110 people. The plant is at 6925 Guion Road just south of West 71st Street and east of Interstate 465.
Sigma-Tau Pharmasource is a contract manufacturer of liquid pharmaceutical products, and it specializes in small and medium-sized production runs for rare diseases and clinical trials. The facility also makes third-party branded pharmaceutical products for its parent corporation.
The firm has landed a contract to produce a new drug for Phase 3 clinical trials, and as a result needs to increase its capacity, according to plans submitted to Indianapolis officials. The $10.4 million investment would include new mixing and refrigeration equipment, laboratory equipment, material handling equipment and IT hardware.
Sigma-Tau has requested an eight-year tax break from the city of Indianapolis on the equipment, which would save the company about $484,000 over that period.
Under the tax abatement agreement, Sigma-Tau would commit to retaining its existing 110 workers, which earn an average wage of $33.80 per hour, and add another 60 jobs at an average wage of $35.71 per hour.
The city’s Metropolitan Development Commission will consider the abatement request during its meeting on Wednesday afternoon.
During the eight-year abatement period, the company still would pay about $301,100 in personal property taxes related to the new equipment. Once the abatement expires, Sigma-Tau would pay an estimated $81,200 annually in personal property taxes for the equipment.
City staff has recommended approval of the abatement to help offset the cost of the investment.