©2016 Michigan Economic Development Corporation

Perrigo to Construct New R

Tuesday, May 07, 2002

Susan Shafer

Expansion will create new jobs for area workers

Governor John Engler announced today that the Perrigo Research and Development Company will construct a new analytical research and development (R&D) laboratory in Allegan as a result of assistance from the Michigan Economic Development Corporation (MEDC).

“Perrigo is an important part of Michigan’s Life Sciences Corridor, and it is encouraging to see the company continue to grow,” Engler said. “This new research and development laboratory will further enhance Perrigo’s industry leadership while providing new jobs for West Michigan families.”

The company will invest $1.2 million in a new building and an additional $400,000 for new furniture, fixtures and equipment.Due to the expansion, Perrigo will add 25 new jobs within five years.

Perrigo Company was established in 1887 and is the nation’s largest manufacturer of store brand, over-the-counter pharmaceutical products. Perrigo Research and Development Company is the newly-established, wholly-owned subsidiary of Perrigo that will be responsible for all of the company’s domestic research and development.

Perrigo Executive Vice President Mark Olesnavage said, “We are very appreciative of the cooperative efforts of the Michigan Economic Development Corporation and city of Allegan on this project.The expansion of our analytical laboratory facility supports our quality and new product development initiatives, efforts that further secure our commitment to pharmaceutical excellence.”

Perrigo had considered locating the new facility and jobs in Allegan or Greenville, South Carolina.The MEDC today awarded Perrigo a high-technology Single Business Tax credit worth up to $395,000 over a 10-year period to encourage the company’s decision for Allegan.In addition, the city of Allegan has proposed local tax abatement worth $241,900 over 12 years.

According to an economic analysis conducted by the University of Michigan, it is estimated that Perrigo’s expansion in Allegan will create a total of 31 new jobs in the state, including 25 new scientific positions directly by the company.The company’s operations will result in total net state revenue increases of more than $1.2 million during the life of the tax credit.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.

Perrigo Research and Development Company
Economic Analysis
Summary Estimates
(All estimates in 2002 dollars)




Revenue Foregone$395,000
Revenue Gain$1,633,000
Average Wage$865/week
Personal Income Generated Over
Life of the Tax Credit Agreement$20,423,000

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