MD Logistics, a third-party logistics (3PL) provider, is significantly upgrading its pharmaceutical storage capabilities to keep pace with the surging pharmaceuticals industry.

The company is expanding into an additional 173,000 square feet of controlled room temperature pharmaceutical warehouse space near its flagship midwest facility in Indianapolis, Indiana. It is also investing $1.5 million in additional cold storage at the existing facility, increasing the square footage of its 2-8 °C (32-46° F) cooler by more than 20,000 feet. Both expansions are doubling MD Logistics’ storage capacity for pharmaceutical and medical device products.

According to Global Data, the pharmaceuticals market is expected to skyrocket to nearly $550 billion by 2020.

The expansion comes at a great time for Indiana, as it was recently named a hotbed for pharmaceutical growth by BioSpace. The state boasts more than 850 life science companies and the second highest concentration of biopharmaceutical jobs in the nation, according to The Indiana Economic Development Corporation.

“Today more Hoosiers are working than at any time in our state’s 200-year history because of the commitment of companies like MD Logistics,” said Victor Smith, Indiana Secretary of Commerce. “Indiana is experiencing tremendous growth in emerging areas like information technology and life sciences, which now contributes $59 million to our state’s economy each year and supports related industries.”

With the new location, MD Logistics will be able to better serve life sciences and pharmaceutical companies throughout the country.

“We’re constantly evaluating industry and customer growth,” said Mark Sell, president and co-founder of MD Logistics. “By adding this facility, we’re able to accommodate needs for additional secure pharmaceutical and medical device storage.”

The expansion marks a strong period of growth for MD Logistics, which has recently expanded cooler space in its Reno, Nevada, facility and enhanced services to include extreme cold chain and integrated pharmaceutical foreign trade zone solutions.

MD Logistics was recently named a Top 3PL Provider for small and mid-size shippers by Global Trade.