Choosing the right site for your pharma or biotech facility isn’t just about cheap land. It’s about smart, long-term decisions that affect your growth, compliance, and costs. Here’s a simple, step-by-step snapshot of the process:
| Step | What it involves |
| Preliminary Research | Gather data on possible locations, infrastructure, and proximity to suppliers and customers. |
| Internal Needs Assessment | Review what your facility actually needs — space, layout, utilities, and future expansion plans. |
| External Needs Assessment | Check workforce availability, vendor ecosystem, and community resources. |
| Evaluate Labor Market | Analyze the availability and cost of skilled workers in each location. |
| Facility & Infrastructure Review | Assess land, building, utilities, energy, and logistics infrastructure. |
| Community & Regulatory Fit | Review how business-friendly and compliant the local environment is. |
| Government Incentives | Compare tax credits, subsidies, and approval timelines. |
| Distribution & Logistics Check | Ensure easy access to highways, ports, airports, and suppliers. |
| Risk & Strategy Alignment | Map site options against company goals and risk appetite. |
| Final Decision & Validation | Use data modeling, site visits, and cost-benefit analysis to finalize the choice. |
Preliminary Research for Pharma Site Selection
Before you build a pharma or biotech plant, you need to do your homework. Preliminary research helps you find the right location and avoid costly mistakes later. It’s all about knowing where to set up and why that spot makes sense.
1. Conducting Location Studies
A location study means comparing different places based on facts, not guesses. Here’s what to check:
- Infrastructure: Are there good roads, power, and water supply?
- Research Ecosystem: Are there universities, labs, or biotech parks nearby?
- Suppliers and Customers: Is it close to where your raw materials come from or where your products go?
A good location can save time, money, and future headaches.
2. Emerging Pharma Hubs to Watch
Some regions are becoming popular choices for pharma setups because of strong support systems and skilled talent:
- Texas (USA): Great research centers and growing biotech industry.
- Hyderabad (India): Big pharma base, strong infrastructure, and skilled workers.
- Ahmedabad (India): Affordable setup costs and a strong API manufacturing network.
- Singapore: Safe, clean, and advanced biotech environment.
Each of these hubs has something different to offer, some are cheaper, others are more advanced.
3. Benchmarking Locations with Data
To choose the best site, compare locations with real data. Key things to check:
- Costs: Land, labor, and taxes.
- Logistics: How easy it is to ship or receive goods.
- Workforce: Are trained people available nearby?
- Regulations: How easy or hard it is to get approvals.
Using these data points helps you pick a location that fits your long-term goals — not just the cheapest option.
Internal and External Needs Assessment
Before you pick a spot for your pharma plant, you need to look at two things, what your company needs inside the plant and what’s going on outside it.
Internal Needs Assessment
This is basically about your own setup the stuff that helps your plant run well and grow later.
Here’s what to think about:
- Manufacturing process: What kind of machines, layout, and space do you need?
- Scalability: Can you make more products in 5–10 years without a full rebuild?
- Storage and logistics: Is there enough space for raw materials and finished goods?
- Future plans: Can you add R&D or new products later if needed?
External Needs Assessment
Now, look beyond your walls. Even the best facility won’t work if the area around it isn’t supportive.
Things to check:
- Workforce: Are there enough skilled people nearby?
- Vendors and raw materials: Can you easily get what you need?
- Supply chain: Are transport and logistics reliable?
- Community: Are there hospitals, universities, or biotech companies nearby for support or collaboration?
The best site balances both sides, your internal needs and the external environment. It’s not just about cheap land or a big warehouse; it’s about choosing a place where your plant can actually grow and work smoothly.
Key Decision Criteria for Site Selection
Picking a site for your pharma plant isn’t just about finding land — it’s about finding the right land. There are a bunch of factors that make or break your decision. Let’s break them down in simple terms.
Labour Availability
You can’t run a plant without people who actually know what they’re doing. A skilled workforce matters more than cheap real estate.
- Check if the area has trained scientists, technicians, and engineers.
- Locations near universities or research centers usually have better talent pools.
- Example: Biotech zones around top universities attract skilled workers faster.
Facility Considerations
Think long-term, not just “what works now.”
- Make sure there’s room to expand when your business grows.
- Don’t build too small or too big — model your costs over time.
- Always plan an exit strategy in case you need to relocate or scale down later.
Community & Regulatory Environment
The local vibe matters too. You want a place that welcomes manufacturing, not one buried in red tape.
- Look for pro-pharma policies and government-friendly regulations.
- See if there are incentive programs or workforce development initiatives.
- Don’t forget about quality of life — your transferred employees need to live comfortably.
Government & Tax Incentives
Money talks, and tax benefits can make a big difference.
- Some states and countries offer great tax breaks and faster approval processes.
- Compare tax rates, incentives, and setup timelines before deciding.
- Example: Many biotech-friendly zones offer rebates for R&D and job creation.
Utilities & Infrastructue
Even the best plant can’t run without stable utilities.
- Check for consistent electricity, water supply, and waste management systems.
- Pharma plants need high-quality utilities to maintain clean, controlled environments.
- Poor infrastructure = downtime and losses.
Distribution & Logistics
Finally, think about how your products will reach the market.
- Stay close to airports, highways, and ports for easy shipping.
- Good logistics help with both exports and local supply.
- A smart location saves time and reduces shipping costs.
The Final Decision Framework
Once you’ve shortlisted your favorite sites, it’s time to make the big call — where to actually build your plant. This step is about mixing numbers with good judgment.
Balancing Data and Practical Sense
Pharma companies don’t just pick a site because it “feels right.” They use both data and logic.
- Quantitative analysis: things like cost models, logistics, and utility pricing.
- Qualitative factors: local support, talent, and community readiness.
It’s about finding the sweet spot between cost, convenience, and capability.
Using Network Modeling and Cost-to-Serve Analysis
Big pharma players often use digital tools to simulate outcomes before committing.
- Network modeling helps them see how a new site fits into global operations.
- Cost-to-serve analysis measures the total cost from production to delivery.
These tools make sure the chosen site doesn’t just look good on paper, it performs well in real life.
Balancing Cost, Service Level, and Workforce Availability
Every site has trade-offs. Maybe one location is cheaper, but another has a better talent pool.
- The goal is to balance what matters most: affordability, speed, and skilled labor.
- Over-prioritizing cost can backfire if you struggle with staffing or logistics later.
Conclusion
Setting up a pharma plant isn’t just about picking land and laying bricks — it’s about building a long-term advantage. Smart site selection helps companies save costs, stay compliant, and scale smoothly as business grows. With today’s data-driven tools and expert consulting, decisions are no longer based on guesswork but on clear insights and strategic planning.
The next era of pharma manufacturing belongs to those who plan smart, using data, compliance, and foresight as their foundation.
Looking to identify the ideal site for your pharma or biotech facility?
Lifescience Intellipedia’s Plant Setup Consulting Services combine feasibility and gap analysis, cost analysis, and engineering compliance to guide you through every step, from concept to completion.
FAQs
Q1: What factors should be considered when selecting a site for a pharmaceutical facility?
Key factors include access to skilled labor, reliable utilities, proximity to suppliers and customers, favorable government policies, and scope for future expansion.
Q2: Why is location so important in pharmaceutical manufacturing?
The right location ensures better compliance, lower logistics costs, easier access to talent, and faster market reach, all critical for operational efficiency and long-term success.
Q3: How can data and analytics improve the site selection process?
Data-driven site analytics help evaluate multiple locations on metrics like infrastructure, tax incentives, workforce quality, and cost efficiency, reducing risk and improving decision accuracy.
Q4: What role do consultants play in pharma plant setup?
Plant setup consultants guide companies through feasibility studies, gap analysis, cost modeling, and engineering compliance, ensuring the site is optimal, compliant, and future-ready.
