Bristol-Myers Squibb Company (BMY - Free Report) recently announced that it intends to spend approximately $250 million for expanding its 89 acre manufacturing unit at Massachusetts. The site has been functional since 2009. Bristol-Myers had invested approximately $750 million for the purpose.
Bristol-Myers aims to introduce the development of biologics and clinical trial manufacturing capabilities at the site through the proposed expansion. The pharma major intends to boost its workforce at the site by approximately 350 employees as a result of the expansion.
The company plans to construct two new buildings at its Massachusetts site to support the expansion. The site, which spans across 400,000-square-foot, currently boasts of six major buildings. Following the expansion, laboratory and office space of approximately 200,000 square feet will be added to the site. Bristol-Myers intends to commence the expansion process later in the year. The work is expected to be completed in 2015.
Bristol-Myers stated in its press release that in the meanwhile it has leased laboratory space of 30,000 square feet. The company intends to keep the space until the expansion work is over.
We believe that the proposed expansion is a strategic move by Bristol-Myers which will support its pipeline development efforts. Successful development of the pipeline is the key to the company's growth following the genericization (in the US) of Bristol-Myers/Sanofi’s (SNY - Free Report) successful blood thinner Plavix in May 2012.
Bristol-Myers, a biopharmaceutical company, carries a Zacks Rank #3 (Hold). Stocks such as Athersys, Inc. (ATHX - Free Report) and Celgene Corporation (CELG - Free Report) appear to be more favorably placed in the biopharma space. While Athersys carries a Zacks Rank #1 (Strong Buy), Celgene carries a Zacks Rank #2 (Buy).