Penn already employs nearly 250 people at the site in Tafarnaubach Industrial Estate in Tredegar, Wales, where the expansion programme will take place. The redevelopment is designed to both increase manufacturing capacity and also improve efficiencies at the plant.
The company said the investment – which comes with the backing of the Welsh Assembly Governments Single Investment Fund - will also safeguard 100 existing jobs at the Tafarnaubach site.
Penn focuses on the production of small volumes of medicine – particularly for clinical trials - and also provides drug development services such as formulation and analytical development.
The company has seen impressive growth in recent years: last September it announced fiscal year revenues of £23m, up 34 per cent year-on-year, and it has a strategic objective to increases sales by 20 per cent a year going forward.
This is the second expansion programme to take place in Wales in a year.
Last May, the firm expanded its clinical trial supplies distribution capabilities seven-fold with the opening of a 75,000 sq. ft. temperature controlled storage and distribution facility. It also recently extended and refurbished its laboratories. In the short term, Penn said it will move existing stores to the new site to allow the new expansion programme to take place.
And in April 2008, Penn opened a new facility that will allow it to manufacture highly-potent compounds in a contained environment. At the time the firm said the facility would help it to expand further across Europe.