Applied Analytical Adds NJ Lab Space

Applied Analytical Industries, Inc. (AAI; Wilmington, NC) will enhance its sales and marketing presence within the "shopping cart" of the world's pharmaceutical industry by acquiring 75,000 square feet of laboratory space in Middlesex County, NJ. The new space will be phased in over three years, with 25,000 square feet to be utilized in the first year. The lease contract extends over a twelve-year period and will provide additional laboratory space for analytical, biotech, and microbiology testing services. The location of the new site has not been disclosed due to possible "legal issues," according to AAI spokeswoman Pamela Dietze. What is known is that the site was formerly a Johnson & Johnson research facility.

Frederick D. Sancilio, AAI's Chief Executive Officer, stated that the new lab space "will allow AAI to take advantage of the increasing demand for [its] fee-for-service capabilities." AAI anticipates investing approximately $2 million in capital equipment during the first year of operation. After minor upfitting, the company anticipates an opening date some time in October 1998.

Fran Sakers, AAI's Chief Operating Officer said, "Our plan is to have approximately 40 employees working by December of 1998, with over 75 employees working on-site within 12 months. The new facility will help reduce the backlog in AAI's Wilmington and Research Triangle Park laboratory facilities as well as allow us close proximity to key clients."

In addition, AAI will take advantage of tax incentives offered by the New Jersey state government, including a reimbursement program for on the job training offered by the New Jersey Department of Labor, plus a special tax incentive offered by the New Jersey Economic Development Authority for payroll-based incentives.

AAI, a contract research and development organization, provides pharmaceutical product development and support services to pharmaceutical and biotechnology companies worldwide. The company offers outsourcing as well as an integrated spectrum of pharmaceutical services, both clinical and non-clinical. In addition, AAI generates licensing and royalty revenues by licensing internally developed drugs and drug technologies to pharmaceutical client companies.

For more information: Pamela Dietze, Applied Analytical Industries, Inc., 5051 New Centre Dr., Wilmington, NC 28403. Tel: 910-392-1606, fax: 910-791-4711.