Building is on the existing site of the business in Henderson. Photo / supplied
Building is on the existing site of the business in Henderson. Photo / supplied
New Zealand's largest privately-owned pharmaceutical and healthcare company opened a new $50 million building in west Auckland today.
Dr Peter Surman, chief scientific officer at Kiwi drug manufacturer Douglas Pharmaceuticals, said the innovation centre was a three-level 4500sq m block.
Leighs Construction built the block on Te Pai Pl, Henderson.Surman said it was the largest research and development base in New Zealand.
More than 100 people will work in the building and use world-class medical research to seek solutions for many serious illnesses, Surman added.
It had a laboratory, pilot scale product development suites and commercial manufacturing areas which could handle potent and cytotoxic products, such as cancer treatment drugs.
Office space, a warehouse and a cafeteria have also been developed.
Soft gelatine encapsulation, liquids, creams and modified-release oral medication will be manufactured there.
Inside the new building. Photo / supplied
Jeff Douglas, the company's managing director and son of its late founder Sir Graeme Douglas, said the new building would significantly assist the company's mission of improving lives.
The company was founded in 1967 by pharmacist Sir Graeme Douglas, employed more than 700 people and exported products to around 40 countries.
Leighs Construction said the project scope included an extension to an existing pharmaceutical facility, including head office.
The drug business had to stay operational throughout the construction phases, with close communication needed on site with Douglas Pharmaceutical staff, the builder said.
"The predominant operational and logistical challenges to the project were during the early stages of the Covid-19 level 4 lockdown in March 2020, which meant that no staff could be onsite at this time.
"Leighs Construction's health and safety plans were updated and constantly monitored throughout the project, following the Ministry of Health protocols to mitigate risk," the builder said.
Around 100 people will work in the new building. Photo / supplied
GBD Investments was the client for the project, completed last year, Leighs added.
Douglas Pharmaceuticals said the building was by architects Ashton Mitchell and took 18 months to design. Dempsey Wood won the civil works contract and Leighs the overall build.
Dempsey Wood started on March 5, 2019. Leighs started on November 11 that same year. Beneath the block, 32 piles were drilled 35m into the ground.
The building was handed over to Douglas Pharmaceuticals last June for fit out.
Surman said: "After Leighs completed its work, there was still a significant programme including qualification of services for the building. It takes a long time from when the building is completed to where the facilities are safe so that they can produce commercial products for supply to the market."
Medsafe audited the facility in July this year.
Project management specialist Inovo said it had worked with the main contractor, providing a detailed construction programme which was maintained and updated as the project progressed.
"The new facility will house 120 people over three levels and will focus on the development of speciality generic medicines, including clinical trial studies," Inovo added.
"A key feature of the building is the skybridge linking the new facility to the manufacturing warehouse and offices and functioning as both internal access between buildings and a screen for the old structures behind it," Inovo said.
Inovo put the value of the building at $35m, but that was before completion.
Two years ago, the Herald reported how Douglas Pharmaceuticals shook off Covid-related disruptions to sales and supply chains and is doubling down on expansion plans.
Leighs Construction headed the contract to build the new block. Photo / supplied
According to Companies Office filings, shareholders of the privately-owned pharmaceuticals manufacturer tipped $10 million into the firm in 2020.
The company is wholly owned by a family trust associated with Sir Graeme.
Jeff Douglas said two years ago the capital raise was to help finish construction of a $35m research and development facility at company headquarters in Henderson, and fund clinical trials.
The capital raise, valuing shares in the firm at $1000 each, gives the company a nominal valuation of $510m.
But Douglas was unwilling to entertain discussion of the firm's value or any possibility of sale, the Herald reported then.
"You'd only find that out if you put it on the market," he said. "And at this stage we're not interested in selling the company."
