ECONOMIC AND COMMUNITY IMPACT ANALYSIS
Econsult Solutions, Inc. (“ESI”), was retained by Allergan Plc to analyze the economic impact and community impact their new U.S. Administrative headquarters will have on the state of New Jersey. Allergan Plc is leader in the new pharmaceutical industry model, Growth Pharma. Currently, the company has five locations across the state. Allergan will be combining its existing New Jersey facilities into a new 432, 500 square foot U.S. Administrative Headquarters in Madison, New Jersey.
Allergan will be relocating more than 1,000 existing New Jersey employees and will hire 300 new employees. ESI’s analysis found that Allergan currently generates an estimated economic impact of $732 million and supports 2,900 direct, indirect, and induced jobs which result in nearly $290 million in annual employee compensations. Furthermore, Allergan’s current operations support $31 million in annual tax revenues to the state of New Jersey.
ESI also found that, once Allergan combines its five facilities to establish their new U.S. Administrative Headquarters in Madison, New Jersey their economic impact on the communities and the state of New Jersey will dramatically increase. Operations after their relocation will generate a total estimated economic impact of $894 million annually, support 3,700 direct, indirect and induced jobs and result in $360 million in annual employee compensation. Future operations will support an estimated $39 million in annual tax revenues to the state.
In addition, the study reveals that 750 temporary jobs will be generated by the construction of the new facilities, resulting in $245 million in one-time economic impact. Furthermore, Allergan will benefit the Madison community by contributing to various civic and charitable causes. Allergan supports four national philanthropic organizations as well as different initiatives generating awareness and advocacy for healthcare related issues.