Good Afternoon
Good Afternoon

After pushback on number of workers, drugmaker drops request for tax breaks

InvaGen, which operates a factory at 600 Old

InvaGen, which operates a factory at 600 Old Willets Path in Hauppauge, above, sought up to $403,450 in tax savings from the Suffolk County Industrial Development Agency. Credit: Linda Rosier

A Hauppauge drugmaker has withdrawn its request for more than $400,000 in tax breaks over 10 years after receiving pushback for refusing to commit to creating jobs, officials said.

The firm, InvaGen Pharmaceuticals Inc., “has decided that it is no longer in the best interests of the company to seek assistance” from the Suffolk County Industrial Development Agency, said the company’s real estate attorney Guy W. Germano.

He declined to elaborate on InvaGen’s decision to forgo potentially $403,450 in tax savings, including a 27.5% reduction in property taxes over 10 years for a factory at 600 Old Willets Path in Hauppauge.

Germano referred a reporter to InvaGen executives who said the company’s parent, Cipla Ltd. in Mumbai, India, was in the best position to answer questions.

Cipla spokeswoman Heena Kanal said this week, “We have renewed our lease agreement and are continuing operations as usual.”

InvaGen had sought IDA tax breaks as part of a plan to renew the lease on the Old Willets Path factory for 10 years and spend $2.7 million on improvements, including a new roof, machinery and ventilation systems. The building lease was slated to expire at year’s end.

“The absence of [IDA] assistance will likely cause the company to seek smaller space and impact the company’s ability to maintain current employment levels, especially during these unusual times,” InvaGen finance head Mohit Mundra told the Suffolk IDA in May.

InvaGen had committed to preserving the factory’s 202 jobs but balked at entreaties from the IDA board to add jobs, citing the coronavirus-induced recession. In June, four of the six board members said they wouldn’t approve a tax deal without InvaGen’s pledge to expand its workforce by 2030.

Employees earn, on average, $61,000 per year, records show.

Besides the Old Willets Path facility, the company operates from 7 Oser Ave., also in Hauppauge, and 550 S. Research Place in Central Islip. The latter factory is receiving a total of $5.8 million in tax breaks over 12 year from Islip Town and the state.

More news