400 Interpace Pkwy. in Parsippany — file photo
By Joshua Burd
The state has approved a 10-year, $40 million tax credit package to encourage Teva Pharmaceuticals to move its U.S. headquarters from Pennsylvania to Parsippany, where it would lease more than 345,000 square feet to house more than 1,000 employees.
At its monthly board meeting, the Economic Development Authority on Tuesday approved the incentive for Teva USA, a unit of the Israel-based generics giant. The company has proposed relocating to 400 Interpace Pkwy. in Parsippany in connection with the tax credit award, seeking to consolidate its headquarters and commercial footprint into a more centralized location.
The move would bring 843 new jobs to New Jersey, the EDA said, while preserving 232 positions that are already in Parsippany but are at risk of leaving. Teva USA is considering an alternative site in Frazer, Pennsylvania, about 25 miles from its current headquarters outside Philadelphia, under a plan that includes several other sites in the Keystone State.
In recent months, Teva has rolled out a sweeping restructuring plan to reduce its costs by $3 billion, which includes closing or divesting facilities but also cutting some 14,000 jobs globally. The EDA on Tuesday alluded to the company’s plans to drive efficiencies and cut real estate costs, noting that the proposed consolidation also includes operations in Overland Park, Kansas.
An analysis by the EDA found New Jersey to be the more expensive option and said the move would involve a capital investment of nearly $31.5 million. The authority also said the project in Parsippany would have an estimated net benefit to the state of $247.4 million over 20 years.
The proposed site, 400 Interpace Pkwy, is a 541,000-square-foot complex near the intersection of interstates 80 and 287. Real estate investor P3 Properties acquired the former Morris Corporate Center III late last year and has since rebranded it as MCCBLUE, as part of a multimillion-dollar upgrade of the four-building campus.
P3 said at the time that Teva was an existing tenant at MCCBLUE.