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Life Sciences

Over the Line

The flagship universities of Kansas and Missouri are no longer in the same athletic conference, but the two states continue to slug it out on the economic development battlefield. One of the latest examples is Teva North America‘s plans to move its Teva Neuroscience headquarters from Kansas City, Mo., to Overland Park, Kan., a Kansas City suburb just across the border.

Teva’s U.S. expansion program took a step forward on July 10 when construction began on the company’s new office building in Overland Park. Teva announced the move in early April following intense recruitment by the two states. The City of Overland Park issued $65 million in bonds to help Teva with the project. The State of Kansas is contributing nearly $31 million in incentives.

The facility is scheduled to be completed during the third quarter of 2013 and will offer workspace for approximately 350 employees. Upon completion, the site will contain a five-story Class A 150,000-sq.-ft. (13,935-sq.-m.) office building with expansion capability to build an additional 100,000-sq.-ft. (9,290-sq.-m.) building. The company has said it may eventually employ 600 at the site.

“This is an exciting development for Teva’s U.S. Brand Pharmaceuticals group and we are looking forward to establishing a presence in the Overland Park community,” said Larry Downey, executive vice president for Teva U.S. Brand Pharmaceuticals.

Teva is investing $71 million in the site and plans to employ 400 initially. The project is being developed by Block Development Co. of Kansas City and is being designed by Hoefer Wysocki Architects.

“We look forward to completing the development of this world-class office facility for Teva Pharmaceuticals on one of the most unique and highly visible sites in all of Johnson County,” said Kenneth G. Block, president of Block Development.

The 18-acre (7.3-hectare) site was formerly owned by Sprint, then sold to Block Development. The site was broken into three parcels, two of which Teva will occupy.

Teva Neuroscience, whose primary products are used to treat multiple sclerosis and Parkinson’s disease, traces its roots to a partnership between Teva and Marion Merrell Dow, which is a predecessor of Aventis Pharmaceuticals. Marion Merrell Dow in turn was preceded by Marion Laboratories, founded in Kansas City by local legend and philanthropist Ewing Marion Kauffman, longtime owner of the Kansas City Royals.

“I want to welcome Teva to one of the premier business corridors in Johnson County,” said Kansas Commerce Secretary Pat George, when the announcement was made. “This move allows the Kansas City area to continue to serve as a national and international headquarters for this part of the company. This new location will serve Teva well and allow for future expansion opportunities.”

Teva’s other major U.S. construction project is a 1.1 million-sq.-ft. (102,190-sq.-m.) distribution center currently going up in Philadelphia. The $300-million project is due to be completed in mid-2013, and the facility will eventually employ 400. The project broke ground last September.

Teva North America is a subsidiary of Teva Pharmaceuticals Ltd. In North America, Teva has locations in 13 states, District of Columbia, Canada and Puerto Rico, and employs more than 9,000. The company, which specializes in generic products, says that it produces one out of every seven prescriptions dispensed in the U.S. Its parent company, Teva Pharmaceutical Industries, is headquartered in Petah Tikva, Israel. Teva was established in 1901 and operates in 60 countries with 46,000 employees.