ImmuCell plans second expansion in three years as demand grows
Photo / Tim Greenway
Michael Brigham of ImmuCell Corp., center, leased land for the company’s expansion in Portland from landlords Dan Catlin, left, and Richard McGoldrick. The company's existing production site is in the background; excavation for the new site is in the foreground.
A Portland animal health company that’s outgrown both its original production plant and a 2019 facility expansion is getting set to build a second expansion.
ImmuCell's expansion will help the company increase production of its flagship product, First Defense, which is used to fight E. coli and other viral infections in newborn dairy and beef calves to avoid the use of traditional antibiotics to treat the disease.
As of the end of every quarter since March 31, 2020, ImmuCell has had a backlog of orders for First Defense.
“Good problem to have,” Michael Brigham, president and CEO of ImmuCell Corp. (Nasdaq: ICCC), told Mainebiz. “Product demand is strong.”
ImmuCell’s headquarters is in a 35,000-square-foot building the company owns at 56 Evergreen Drive, off Riverside Street in Portland.
In 2019, it leased a 14,300-square-foot building a stone’s throw away at 175 Industrial Way. The landlord is TVP LLC, led by Daniel Catlin and Richard McGoldrick of Falmouth real estate development and investment firm Commercial Properties Management.
The latest deal leases a patch of land next to the building at 175 Industrial Way. Plans call for construction of a connected building of 15,400 square feet.
“Right now it’s an excavation site,” said Brigham.
Meanwhile, production is catching up at the existing plant.
“We’re almost at break-even right now,” he said. “This is an expansion for the future so we never backlog again.”
The 56 Evergreen Drive headquarters houses the corporate offices and manufacturing operations for the liquid processing phase that goes into making First Defense.
In 2019, the company moved its final formulation, filling and assembly operations to the leased building at 175 Industrial Way. That site became operational in mid-2020.
The first expansion freed up space in the original facility to double liquid processing capacity and increase freeze drying capacity by 50%.
The company employs about 75. The second expansion is not expected to result in significant new hires.
“We’re fully staffed,” said Brigham. “This is taking crowded people and spreading them more rationally, giving crowded equipment more room while creating space for new equipment, and adding warehouse and cold storage space.”
Construction of the new building shell was recently initiated by the landlord. The goal is to complete the shell by this fall. The company will then initiate five to six months of fit-up and aims to be operational by April 1, 2023.
The original term of the lease that was set to expire on Feb. 28, 2030, was extended to Jan. 31, 2043, with a 10-year renewal option and right of first refusal to purchase the property during the term of the amended lease.
Landry/French Construction of Scarborough will manage construction. Industrial heating, ventilation, air conditioning and refrigeration will be managed by AAA Energy Service, which is also based in Scarborough. Design work is by Kristi Kenney of KW Architects in Kennebunk.
The company increased output of its First Defense product line in the fourth quarter of 2021 to an annualized rate of around $22.9 million, and started investments to increase the annual production capacity to around $35 million by the end of this year.
It’s expected that the second expansion will allow the company to increase production to $40 million or more per year. The new space is intended to be used for additional freeze-drying capacity, cold storage and warehousing for the First Defense product line.
The company distributes primarily throughout the U.S. and Canada, with a few small international territories.
“We’ve put international territories on hold because it would just increase our backlog,” Brigham said. “Now, with the production capacity expansion, we’ll start looking to more international territories. That will be part of our growth strategy.”
Separately, ImmuCell is also in the late stages of developing Re-Tain, a treatment for a common disease in dairy cows. The product is an alternative to traditional antibiotics that are on the market today, addressing the public health concern about the over-use of antibiotics in food producing animals. The disease, called mastitis, is the most significant cause of economic loss to the dairy industry, according to a news release.
Last month, the Food and Drug Administration notified ImmuCell of additional work required to complete its new animal drug application. The principal issue is for the FDA to complete a successful re-inspection of the manufacturing facility. At the same time, the company is responding to six other non-substantive issues raised by the FDA, said Brigham. The company is now completing preparations for the re-inspection, and it expects the FDA to take six months to review its next regulatory submission.
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