Covance to Expand Nonclinical Facility in Madison, Wisconsin
|Madison, WI, November 1, 2004 — Covance Inc. (NYSE: CVD) recently announced the beginning of a significant expansion of its nonclinical facility in Madison, Wisconsin. This major investment, the third and largest that Covance has made to its Madison facilities in the past three years, will support future growth and allow the company to provide additional nonclinical drug development capacity to pharmaceutical and biotechnology companies.|
The expansion is planned to come online in a modular fashion so that Covance can more effectively manage the costs associated with bringing new capacity to the marketplace. It will also position the company to be capable of more rapid response to changing market conditions. Covance plans to start bringing new capacity online in a controlled fashion in mid-2006 as market demand requires.
"We believe that Madison is an ideal place to invest and grow," said Wendel Barr, Corporate Senior Vice President and President, Covance Early Development, North America. "The business climate is positive, and Madison has a talented workforce available to meet our hiring needs." Covance is the one of the largest employers in Dane County, with over 1200 employees in Madison.
Covance credits the cooperation of state and local government as well as the local utility in helping make this expansion a reality.
The Wisconsin Department of Commerce is assisting Covance with a $2 million incentive package. "As a fast-growing technology company, Covance is exactly the kind of firm that we want to see expand in Wisconsin," Governor Jim Doyle said. "We expect that this project will ultimately create 400 new jobs for Wisconsin families."
The City of Madison will provide sewer, sidewalk and road improvements to help enable the project. "This sizable investment by Covance is consistent with the ideas expressed in my Healthy City economic development framework," said Madison Mayor Dave Cieslewicz, "and it will continue to expand Madison's reputation as a biotechnology center. Covance will add family-sustaining jobs and will help grow Madison's tax base."
Madison Gas and Electric Company (MGE) will help Covance manage the energy requirements for the new facility. "Covance's decision to expand their operations here will strengthen Dane County's leadership position in high technology," said Gary Wolter, Chairman, President and CEO of MGE. "Madison Gas and Electric understands the challenges facing high tech and research-based companies, and we're committed to meeting Covance's unique power needs".
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with 2003 net revenues of $940 million, global operations in 18 countries, and approximately 6,600 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through the website in the About Covance area.
Statements contained in this press release, which are not historical facts, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to an qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, and other factors described in the Company's filings with the Securities and Exchange Commission.
Covance, the Covance logo and StudyTracker are registered service marks and "Covance Virtual Central Laboratory" is a service mark of Covance in the United States and other countries.