Pharmaceutical manufacturer puts $80M in Lexington facility that will add jobs
A pharmaceutical company is expanding in Lexington’s Coldstream Research Campus by putting $80 million toward additional square footage that will support 45 new jobs and build on existing partnerships with the University of Kentucky, the city, and the chamber of commerce.
Piramal Pharma is building another manufacturing facility, adding 24,000 square feet to support the company as it brings new drugs to market and makes them available for purchase and use. The company brings more jobs to its existing operation, and its leadership said the additional space will allow its clients and patients to have easier and faster access to medication.
In its current facility, the India-based company that develops and manufactures drugs kept in vials can produce about 100 batches of medications annually. With the new facility, the number of batches nearly doubles with a new filling line, two commercial freeze dryers, a special capping machine and external vial washer.
Expanding space to support more of the company’s offerings puts it in a position to give clients and their patients products and services made in the U.S. instead of outside of it, said Piramal CEO Peter DeYoung during a groundbreaking Wednesday at the worksite on McGrathiana Parkway.
“This is one of our largest expansions at Piramal and helps us address a market of injectables which could be worth over $20 billion by 2028,” said Piramal Pharma Chairperson Nandini Piramal. “With this expansion, we’re positioning ourselves to capitalize on our customers wanting to actually make their products in the U.S.”
Manufacturing pharmaceuticals in the U.S.
DeYoung said there’s a rapidly growing section of pharmaceuticals that are an answer to patient problems but “there’s not enough capacity on shore in the U.S. to meet those needs, and that patient-driven motivation is what’s leading us to make this expansion today.”
Pharmaceutical tariffs, as proposed by President Donald Trump, aim to incentivize drug manufacturing in the U.S. As with other sweeping, reciprocal tariffs, the president said the higher the tax, the faster onshoring might take place.
The Harvard Business Review says tariffs on the pharmaceutical industry may worsen shortages of essential medications and could cause insurance premiums, especially on prescriptions, to increase. Tariffs on brand-name medications may fall in line with Trump’s goals to bring profits home but the analysis says job gains and revenue production might face delays due to the startup costs for new facilities.
For the expansion, the company received $1.2 million in tax credits over 10 years from the Kentucky Business Investment Program given it adds 45 employees. The company is also eligible for sales and use tax refunds up to $300,000 for its construction and building fixtures.
The facility is expected to be complete and operational by late 2027.
Added square footage means the company’s clients won’t “graduate from the facility” and will instead be able to have all of their needs met by Piramal, said Nathan Richardson, the company’s vice president and head of the Lexington site.
UK launching pharmaceutical sciences program
Piramal bought its existing facility in January 2015. Then, it was the University of Kentucky’s Coldstream Laboratories. The company added a high-speed manufacturing line and worked to put in another building the company said would double its initial $30 million investment in the property.
George Ward, the UK’s associate vice president for economic development and real estate, said at the groundbreaking that the Piramal expansion comes at the same time as the school launches its pharmaceutical sciences undergraduate degree program, now enrolling students for the upcoming fall semester.
“Our proximity to UK and the connections that are available there are key to many of our biotech and life sciences companies locating here in this area,” said Commerce Lexington President and CEO Bob Quick.
This story was originally published June 25, 2025 at 4:11 PM.
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