New Jersey-based drug development services provider Covance Inc revealed that it purchased a partially constructed manufacturing facility in Virginia from Eli Lilly. The company said it would set up a $175 million worth early drug development factory in the purchased facility.

The company intends to reconstruct the 47-acre property in Prince William County's Technology Park into a 410,000-square-foot state-of-the-art laboratory offering safety testing and chemistry analysis services.

"The increased demand from our biopharmaceutical clients for our preclinical safety service offerings has led Covance to seek opportunities to enhance and expand our operations in Northern Virginia and build upon our multi-year global expansion plans," said Wendel Barr, senior vice president and president, Early Development North America, Covance. "For 60 years, Covance operations in Northern Virginia have made significant contributions to the development of new medicines for HIV/AIDS, breast cancer, heart disease, leukaemia, diabetes, Alzheimer's, multiple sclerosis, cystic fibrosis, deadly infections, and many other debilitating diseases. With our long history in the area, we are looking forward to continuing our relationships as a member of the community as well as contributing to the diversification of the local economy."

Covance plans to relocate approximately 450 current employees from its existing operations in Vienna, Virginia and Chantilly, Virginia to this facility by 2011, and hire an additional 100 employees by the year 2014. The total planned investment for this project is approximately $175 million. Covance expects to receive approximately $3.7 million in combined financial incentives from the Commonwealth of Virginia and Prince William County.