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Home > News >
News Archive > Introducing Cape
Breton’s New Pharmaceutical Industry |
Introducing Cape Breton’s
New Pharmaceutical Industry
For Immediate Release
December 3, 2004
North Sydney, NS –– Two exciting projects that will
lay the groundwork for a pharmaceutical cluster on Cape
Breton Island were announced today by the Honourable Joseph
McGuire, Minister for Enterprise Cape Breton Corporation (ECBC),
the Cape Breton Growth Fund (CBGF) and ACOA, as well as Nova
Scotia Premier John Hamm.
Keata Pharma Inc. (Keata), a contract pharmaceutical
manufacturing company is establishing a manufacturing
operation in the Northside Industrial Park. Anticipated to
bring up to 165 new jobs over three years to the Cape Breton
Regional Municipality, the project is receiving financial
assistance from the CBGF, ECBC, ACOA and Nova Scotia
Business Inc. (NSBI).
In a related project, the University College of Cape Breton
(UCCB), in partnership with the company, will launch a new
Biotechnology and Pharmaceutical Technology Certificate
Program to train potential employees. This project is being
supported through ECBC.
PharmEng Technology Inc. (PharmEng), the parent company of
Keata, will also establish a pharmaceutical consulting
office in Cape Breton employing an additional 12
professional staff. PharmEng is an established
pharmaceutical and biotechnology consulting firm based in
Toronto, with offices in Montreal, Winnipeg, Vancouver and
China.
“These exciting projects will build on the existing
strengths of our workforce and bring a new industry to Cape
Breton,” said Minister McGuire. “The joint venture with UCCB
will enable Keata to recruit and train locally, resulting in
a pool of highly skilled pharmaceutical personnel. With this
investment, Keata is demonstrating its belief in the power
of Cape Breton. I would like to recognize the efforts of the
CBGF in recruiting this company to the community.”
“This project is a great example of how partnership is
working to create local opportunity by attracting
growth-oriented, export-driven companies like PharmEng to
Nova Scotia,” said Premier Hamm. “Led by our business arm,
Nova Scotia Business Inc., the province is proud to be part
of the team that is injecting new dynamism and diversity
into the Cape Breton and Nova Scotia economies. Initiatives
such as this represent an evolution of business thinking and
business development.”
Keata’s move to Cape Breton will better position the company
to diversify its products and services. Over the next year,
the company will acquire equipment and necessary approvals
to provide formulation development, testing services and to
manufacture and package products in solid and liquid dosage
forms. Keata’s long-term goal is to produce more
technologically challenging products and develop
capabilities in other dosage forms, such as suppositories,
topicals and injectables.
UCCB’s Biotechnology and Pharmaceutical Technology
Certificate Program will be taught jointly by PharmEng and
UCCB. Up to 25 students will be accepted into the program
annually. It is anticipated that PharmEng will offer
employment to at least 60% of the first graduating class.
“UCCB’s coordination of a Biotechnology and Pharmaceutical
Technology Certificate Program will provide the necessary
skills training for these positions,” said John Harker,
President of UCCB. “With Keata PharmEng’s commitment to hire
students of this innovative program, it is refreshing to
know that many of these graduates will be employed right
here at home. We see UCCB as an emerging force in the
advanced technology transfer and the future for UCCB and the
Island will be built on announcements of the kind we are
celebrating today.”
The PharmEng consulting office will initially provide the
technical support for the Keata plant during construction
and start up. Over time the office will provide consulting
services to clients in Atlantic Canada, the Eastern United
States and other international markets.
“We feel that our Cape Breton location will provide us with
significant long-term cost advantages and access to a highly
skilled labour force,” says
Alan Kwong, Managing Director of PharmEng. “Our new location
on the Island will help us better serve the growing global
pharmaceutical manufacturing market that is valued at $50
billion annually.”
The total start up cost of the Keata project is $12.5
million, and includes construction of a new 35,000 square
foot facility, equipment, regulatory compliance and
marketing. The plant will be operational early in 2006. To
assist with costs, the CBGF and ECBC are investing a total
of $6.25 million by way of repayable loans.
NSBI will assist the company in the creation of new jobs
through a payroll rebate of up to $3,590,800. Performance
based, the NSBI payroll rebate will be paid annually over a
period of five years as job creation goals are achieved. The
agreement provides for incentives for up to 300 jobs.
The total cost of launching the UCCB certificate program is
$500,000. UCCB will receive a non-repayable contribution of
$375,000 through the Atlantic Canada Opportunities Agency’s
Business Development Program (BDP). In addition, PharmEng
will receive a non-repayable contribution of $125,000
through ECBC.
FOR ADDITIONAL INFORMATION CONTACT:
Alan Kwong, Managing Director
PharmEng Technology Inc.
(416) 618-3218
Valérie Poulin
Director of Communications
Office of the Honourable Joseph McGuire
Minister of Atlantic Canada Opportunities Agency
(613) 941-7241
Patricia Field
Communications – NSBI
(902) 424-6124
D.A. Landry
Communications – CBGF/ECBC
(902) 564-3617
Paula MacNeil
Communications – UCCB
(902) 563-1638
http://www.ecbc.ca/e/newsreleases/20041203.asp |
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