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The project is supported by the Government's IDA Ireland programme, and will also create 170 new "high quality" jobs by 2011.
News of the investment was announced in November 2007, following Merck Sharp and Dohme's acquisition of the 65 acre IDA Carlow Business and Technology Park.
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Today, the Taoiseach said: "I congratulate Merck Sharp & Dohme for the commitment and speed with which they are undertaking this investment.
"This is an excellent day for Carlow and the South-East region.
"The benefits of this investment and the boost for the region’s economy will begin to flow immediately, initially through the 300 hundred jobs in the construction phase and long-term through the high quality employment of 170 people in the facility’s operation," added Mr Cowen.
Recruitment for MSD Ireland (Biologics) Carlow will be advanced next year.
Willie Deese, Executive Vice President at Merck, said: "Our Carlow facility represents the future for Merck Sharp & Dohme and for public health around the globe.
Today illustrates that investment and enterprise is still very much alive and active," he added.
The construction phase is expected to last 18 months, and generate around 300 building jobs.
(PR/JM)
