Civica announces plans for $27.8M lab in Chesterfield

Nonprofit drugmaker Civica Rx is investing $27.8 million to establish a new 55,000-square-foot laboratory in Chesterfield County’s Meadowville Technology Park, Gov. Glenn Youngkin announced Thursday.

The expansion will add 51 jobs, according to a news release. The company will also host a scale-up manufacturing facility run by Virginia Commonwealth University’s Medicines for All Institute, which will add more jobs.

The generic drug maker is currently building a 140,000-square-foot, $124.5 million manufacturing facility in Petersburg that will become the Utah-based company’s North American headquarters when it opens in 2024. The Chesterfield lab will support that factory through testing and development of new products.

“Civica’s investment is another transformational step forward in strengthening the advanced pharmaceutical manufacturing hub in the Richmond-Petersburg region and positioning Virginia as a key player in domestic drug manufacturing in America,” Youngkin said in a statement. “Civica is a critical partner in the commonwealth’s emerging pharmaceutical ecosystem that will ensure access to affordable, lifesaving medications while providing high-quality jobs and an incredible boost to our economy.”

Construction of the lab is being funded through a $52.9 million grant from the U.S. Economic Development Administration to the Alliance for Building Better Medicine, Youngkin’s office said. Civica is providing matching capital. The alliance is a coalition of industry and public organizations from the Richmond and Petersburg regions that aim to advance and scale up the manufacturing of affordable, essential medicines in the United States. It includes Civica, Richmond-based Phlow Corp., VCU and Virginia State University.

In April, Civica said that its new factory will include space for insulin manufacturing after donors expressed concern over the cost of insulin. Civica plans to produce three forms of insulin priced at $30 per vial. The sweeping Inflation Reduction Act places a $35 monthly cap on insulin prices for Medicare patients, but a measure that would have extended that cap to all insured Americans was blocked by Senate Republicans.

“With this investment, Civica is building on its long-term commitment to patients — and to Virginia,” Civica President and CEO Ned McCoy said in a statement. “This lab will support a skilled and highly trained workforce who will ensure Civica’s affordable insulin, as well as other essential medicines, meet the highest standards.”

The lab testing facility is expected to open soon after the Petersburg plant.

The Virginia Economic Development Partnership worked with Chesterfield County to secure the project and Youngkin approved a $400,000 grant to the county for assistance. The Virginia Talent Accelerator Program will help with recruitment and training for the new jobs. In addition, Chester-based Brightpoint Community College has created a training program to help people gain qualifications for manufacturing technician jobs at the upcoming Civica Petersburg plant, Youngkin said.