Insulet (NSDQ:PODD) said yesterday that it acquired a manufacturing facility in Acton, Mass. The Billerica, Mass.-based company said that its new facility will allow Insulet to more efficiently manufacture its OmniPod system compared to 4 of the company’s manufacturing lines at its contract manufacturer in China.
The company anticipates the new facility will add hundreds of jobs in Massachusetts over the next 5 years, Insulet said, and expects to begin production in 2019.
“This acquisition marks a major milestone in the execution of our strategic plan to expand pod manufacturing, increase productivity, improve quality and drive efficiency,” chairman & CEO Patrick Sullivan said in prepared remarks. “The addition of U.S. production capabilities will improve our response time to customers. This will be a significant improvement to our manufacturing operations.”
“By expanding our manufacturing capabilities in the United States, we will increase our capacity to serve our customers while investing in and bringing jobs to the region. We look forward to contributing to the economic vitality of the region and playing a role in the community for years to come.”
“We are excited that a fast-growing company like Insulet has selected Acton for its U.S.-based manufacturing facility,” Acton’s director of land use & economic development Matthew Selby added. “Insulet’s decision to purchase and operate a facility in Acton is reflective of the town’s commitment to economic development and we welcome the new jobs this facility will bring to our community.”
In October last year, Leerink Partners analysts said that drug-delivery business will be a long-term growth driver for Insulet by as much as 20% per year for the next few years.
Insulet generates 86% of its revenue from its OmniPod insulin delivery device, according to Leerink. The OmniPod technology could be easily adapted to other drugs, according to the investment bank, which cited Insulet’s partnership with Amgen (NSDQ:AMGN) as a foundation for other wearable drug-delivery products.
Residents of Acton voted in April to approve zoning changes to the new site, expanding the facility from 300,000 square feet to 350,000 square feet. Insulet said it plans to break ground in June, according to the Boston Business Journal.