Japanese firm eyeing empty AstraZeneca plant for $100M project

BOULDER  — A Japanese contract pharmaceutical manufacturing firm is considering taking over the vacant AstraZeneca PLC plant in Boulder.

The Colorado Economic Development Commission approved a series of tax incentives for the unnamed company Thursday aimed at enticing the firm to invest about $100 million in the 5550 Airport Blvd. facility, which has been closed since AstraZeneca pulled up stakes at its two Boulder County operations in early 2019. 

It is the commission’s practice not to identify companies the Colorado Office of Economic Development and International Trade is recruiting until incentives are accepted. State officials are referring to the firm eyeing the AstraZeneca space only as Project Blizzard.

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While the Economic Development Commission maintained that confidentiality Thursday, evidence suggests the Japanese firm in question is AGC Biologics.

Colorado Office of Economic Development and International Trade documents describe Project Blizzard as a firm with a North American headquarters in the state of Washington that “serves a global market through expertise in cell line development, bioprocess development, formulation, analytical testing, antibody drug development and conjugation, cell banking and storage, and protein expression.”

That’s a nearly identical match to the description of AGC Biologics included on the Chiba, Japan-based company’s website and in press releases. Additionally, AGC’s North American headquarters is in Seattle. 

The state approved $6,404,990 in performance-based job growth incentive tax credits over an eight-year period and $75,000 in performance-based strategic fund cash incentives over a five-year period. Should Project Blizzard accept the incentives, it pledges to create 280 new jobs that pay an average annual wage of $96,253. 

Overall, the firm has indicated its local investment would total about $100 million.

It’s unusual for the Colorado Economic Development Commission to approve both job growth incentive tax credits and performance-based strategic fund cash incentives — typically firms are offered only one incentive or the other. This willingness to allow Project Blizzard to double-dip is indicative of the importance of getting the former AstraZeneca space occupied and productive again, economic development leaders said. 

“The displacement of AstraZeneca has been a priority for our organization to address,” Metro Denver Chamber of Commerce vice president of Economic Development Sam Bailey said. “This facility is still new, and it was a major investment. But every day that it sits vacant, the technology there is becoming more dated.”

Getting a large pharmaceutical plant back up in running also supports the local biosciences workforce, which otherwise may have started to look elsewhere for new job opportunities, he said.

The closure of the Boulder plant and the Longmont plant at 4000 Nelson Road resulted in the loss of more than 200 jobs. 

AstraZeneca took over the Boulder County facilities from pharmaceutical maker Amgen in 2015 and 2016. The Longmont facility was bought last year by Swiss biologics firm AveXis, a Novartis company. Avexis will make Zolgensma, a one-time therapy for young children with spinal muscular atrophy, at that plant.