On the surface, one wouldn’t think that PayPal and Prime Therapeutics would have much in common. One company enables any individual or business with an e-mail address to send and receive payments online, while the other is in the pharmacy benefit management industry.
But of course successful companies in all industries have some common threads running through them, including the need for a capable work force and a low-cost business environment.
More specifically, PayPal and Prime Therapeutics have found success in siting facilities in the state of Nebraska. That success has led to the decision by both companies to expand those operations.
PayPal will expand its La Vista operations center, in the Omaha metro, by adding a new 125,000 square foot building at its current location. It is scheduled to be operational later this year.
Collaboration Helps Growth
PayPal opened its La Vista operations facility in 2003 with 500 employees. Today, the facility has more than 1,000 employees, and the company expects to add 600 employees by the end of the year, said Sara Bettencourt, a spokeswoman for the San Jose, Calif.,-based company.
She said the growth in Nebraska has been made possible by a collaborative effort between the public and private sectors.
“The relationships that we have made with local businesses, the city and chamber of commerce, and the state have been very beneficial,” Bettencourt said. “When we initially opened our facility, we worked closely with La Vista and the state. They helped us get the resources we needed to grow.”
The state of Nebraska will provide $15 million in work force training funds during the next two years under the Nebraska Customized Training Advantage Program. Companies expanding in, or relocating to, the state are eligible for the program.
She said that while the company did look at other sites for the project, Omaha was always the frontrunner. Nebraska’s work force was one of the primary reasons why.
“The highly skilled work force makes Nebraska a great place to do business,” Bettencourt said. “The all-around quality of life makes it a great place to live and raise a family.”
Company Adds to Work Force
The state’s labor pool was one of the factors that influenced Prime Therapeutics’ decision to expand its Omaha facility. The company also has facilities in Texas, Illinois and Minnesota and could have easily sited the expansion project in one of those states, said Rick Snodgrass, chief financial officer for Prime Therapeutics.
The St. Paul, Minn.,-based company will move to a 35,000 square foot facility, which more than doubles the size of Prime Therapeutics’ operations. The company has added 100 employees to its 230-plus work force in Omaha.
It is the second time since 2004 that Prime Therapeutics has expanded its Omaha facility. In both instances, work force played a role in the decision, Snodgrass said.
The expansion will help Prime Therapeutics ramp up support for the Medicare Part D program, which took effect Jan. 1.
Prime Therapeutics is eligible for the Nebraska Advantage Act, which provides a return on investment to firms reaching certain employment levels.
“The incentive program was very appealing to us,” Snodgrass said. “It helps more labor-intensive companies come to Nebraska.”<
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