ScieGen Pharmaceuticals Inc. plans 60,000-square-foot plant in Hauppauge

A Hauppauge manufacturer of generic prescription drugs wants to build a 60,000-square-foot factory and warehouse on Motor Parkway where up to 200 people could eventually work.

ScieGen Pharmaceuticals Inc. already has facilities nearby but needs more space to meet increased consumer demand. The company also wants to add to its product portfolio, which totals more than 85 drugs, executives told Newsday.

“We need the building because everything is getting congested,” said Pailla Malla Reddy, chief executive of ScieGen and its sister company, vitamin maker Bactolac Pharmaceutical Inc., which also is based in Hauppauge.

“We want to expand. We’re applying for and getting more [generic prescription] drug approvals,” he said in an interview.

Reddy started ScieGen in 2009 after opening Bactolac 14 years earlier in Westbury.

More than 1,100 employees

Today, the companies have more than 1,100 employees in Suffolk County — at seven buildings in Hauppauge and one in Yaphank.

They are a major player in Long Island’s pharmaceutical, vitamin, biotechnology and medical device industry, which has about 14,000 workers, according to the trade group LIBio.

“Many companies are expanding, and it’s not just the biggies like ScieGen and Bactolac,” said Tom Mariner, LIBio’s executive director. “Long Island is a hub for the industry and that means employment opportunities for present and future generations.”

Joseph J. Romano, chief financial officer at ScieGen and Bactolac, confirmed the 3.4-acre vacant parcel on Motor Parkway was purchased for $4.5 million. The sale of the parcel, which is adjacent to the Radisson Hotel, was first reported by Long Island Business News.

“Most likely it will be a dual-purpose building [with] the manufacturing for ScieGen and Bactolac will utilize the additional warehouse space,” Romano told Newsday.

He added “the current goal” is to open the new building in late 2028 or early 2029.

Will seek tax aid

Romano said the companies would seek tax breaks and other assistance from Suffolk and New York State.

“We compete with foreign manufacturers to provide the cheapest prices to wholesalers,” Romano said. “The creation of jobs will always be determined by support from [governments] to help balance the rising costs we’ve been experiencing over the last few years.”

Since 2012, ScieGen and Bactolac twice received tax breaks from the Suffolk County Industrial Development Agency for more than $28 million in improvements to their 330 Oser Ave. plant. In return, the companies promised to create 150 jobs but as of last year had created 365, according to state records.

The IDA also provided tax breaks to ScieGen for 89 Arkay Dr., also in Hauppauge, where $8.2 million in improvements were made. In return, the company promised to create 100 jobs and as of last year had created 296, the records show.

Peter G. Ganley III, the IDA’s acting CEO and executive director, said the agency hasn’t yet received an application for assistance for the Motor Parkway project.

“They have continued to invest in their facilities and retain jobs, becoming a cornerstone of Suffolk’s pharmaceutical industry,” he told Newsday, referring to ScieGen and Bactolac. “They show what can happen when we give businesses the tools to invest here for the long term.”

In addition, Bactolac won tax breaks in 2021 from the Brookhaven Town Industrial Development Agency for a new $18 million building on Ramsey Road in Yaphank. In return, the company promised to create 30 jobs but as of last year had created 42, according to state records.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.