Archive: December, 2012
One factoid that didn't make it into my column in Wednesday's newspaper on state subsidies to corporations, which focused on Delaware's $11.1 million incentive package to retain Incyte Corp., was the cost per job.
First, Delaware officials calculated the amount of state personal income tax the state would receive from a workforce of 560 from now until the end of 2018. That figure of $10,070,505 is the amount of the grant that Incyte received in exchange for creating 266 jobs.
To calculate what that works out per job, Delaware divided that dollar amount by 560 jobs, producing $17,983 per job. Why not the 266 jobs created, which would be $37,859? Because the deal calls for Incyte to have 560 employees in Delaware as of Dec. 31, 2018. If it does not, then there is a clawback provision that requires to company to pay back the state for every job under that level. That would be $17,983 per job.
An update to my column in Tuesday's paper about the mix of messages emerging from several of the region's life-sciences firms:
A spokeswoman for Takeda Pharmaceuticals U.S.A. Inc. said the sale price for generic drugs business that it will sell to Caraco Pharmaceutical Laboratories Ltd. is $65 million. Takeda will keep the gout drug Colcrys, which it said generated net sales of $155 million during the three months ended Sept. 30.
Takeda acquired Colcrys and the other generics when it acquired Philadelphia's URL Pharma Inc. in June for $800 million.