Iceland Wins Alvogen Investment Battle With Malta
Alvogen, which has been considering investing in both the countries of Iceland and Malta, has decided to invest in only one nation: Iceland. Both countries have the prerequisite infrastructure and technology to be able to house the kind of advanced facilities that Alvogen is looking to build. Alvogen develops generic drugs which are sold across the globe, and their investment in Iceland is significant, currently stated at 155 million Euros.
Alvogen will design and build a science center to hold their company’s international offices, along with facilities for the development and manufacturing of new drugs. The international offices will contain over 200 company employees, and the size of the facility is estimated at 11,000 square meters. The new facilities are expected to generate new drugs for Alvogen. It is believed that Alvogen decided to pursue Iceland over Malta because its laws remain cumbersome for foreign companies trying to setup facilities and work inside of the country.
Alvogen’s decision to build facilities in Iceland will have economic ramifications for Malta. For example, Actavis, another drug company operating in Malta, had plans for a portion of their research and development division to be absorbed by Alvogen if the company decided to operate in their country. Malta’s top economic officials declined to comment on any specifics. Malta’s Economic Ministry did put out a statement condemning the drug industry’s speculation and reporting on the subject stating, “Any speculation based on hearsay about the possible investment may lead to pushing away the investment and the employment possibilities such investment may create.”
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