A nascent prescription drug distributor plans to launch operations in Hauppauge as part of a $4.9 million project.
Deliver My Meds Corp. received preliminary approval for tax assistance Thursday from the Suffolk County Industrial Development Agency for the company’s planned purchase and renovation of a 20,000-square-foot building at 380 Oser Ave. The company is a new venture by Shahbaz Chaudhary, who owns four retail pharmacies, in Brooklyn, Valley Stream and Syosset.
Deliver My Meds Corp. said in an application submitted to the agency that it saw “a shift from retail pharmacy to mail order pharmacy” services in the industry, which is “why we are making a move towards the mail order pharmacy business.” It lacks the space needed to expand into drug delivery at its retail outfits, the company said.
It plans to use robotics to count, label and package prescription drugs that will be distributed by in-house truck drivers, the application said. Medications will be shipped to customers in amounts that will last them three to six months.
Deliver My Meds Corp said it will eventually create 27 jobs at the facility.
“The pharmaceutical and nutraceutical industry on Long Island, particularly in Hauppauge, has utilized the IDA,” IDA executive director Anthony J. Catapano said. While the aid represents a deal with a new company, Catapano said he was impressed with the retail pharmacies’ reputation and said the new business could be “expansive.”
The IDA approved the project for a sales tax benefit of up to $88,838 on the purchase of equipment, a mortgage recording tax benefit of $23,100, and a 10-year property tax deal on the building. Property taxes on the building will be reduced by 50 percent in year 1. The tax abatement will be reduced by 5 percentage points each year for the remaining period.
Chaudhary started his pharmacy business in 2012 after selling a radiology business, according to IDA documents.