Click here to subscribe today or Login.
ST. LOUIS — The nation’s largest pharmacy benefits manager, Express Scripts, is deciding whether to build a new $60 million drug distribution center in Missouri or Pennsylvania.
The St. Louis Post-Dispatch reported Friday that both states are offering economic incentives to attract the development with 270 new jobs and roughly $14 million annual payroll. Headquartered in north St. Louis County, Express Scripts also employs hundreds at a distribution facility and call center in the Philadelphia area.
The competition is tied to the company’s steady growth, with $22 billion in revenue and a $776 million profit last year, up 37 percent from the previous year.
Express Scripts also wants to complete its $4.7 billion purchase of NextRx, part of health insurance giant WellPoint, by year’s end.
St. Louis County Executive Charlie Dooley said he believes Express Scripts will build on 12 acres at NorthPark, a 550-acre business park across Interstate 70 from the company’s headquarters at the University of Missouri at St. Louis.
“We’re not there yet, but we’re working on it,” he said. “It’s not a done deal, you know what I’m saying? Everybody is working very diligently to make this thing happen. We are very excited.”
Meanwhile, Robert Cormack, executive director of the Bucks County Economic Development Corp., said he is confident Express Scripts will expand an existing drug distribution facility by moving it to a Bristol, Pa., warehouse vacated two years ago by an apparel maker.
Express Scripts’ spokeswoman, Maria Palumbo, didn’t comment on where the company will expand. “It’s still really too early in the process to comment on any particular locations,” she said.
Missouri officials are moving to grant the company $3 million in BUILD Missouri bonds. Such bonds are, in essence, a corporate income tax credit Express Scripts would earn over 15 years.
Pennsylvania already has approved what it calls a Keystone Opportunity Expansion Zone for Express Scripts. State and local property taxes within such zones are eliminated for 10 years although Express Scripts has told Bucks County officials it would pay the local school district, township and county a total of about $250,000 a year in lieu of taxes.