California-based Gen-Probe Incorporated is expanding its office space by 49,000 sq ft at Innovation House in Wythenshawe, south Manchester.
Gen-Probe has agreed a lease with Bluemantle on 60,000 sq ft, increasing from 11,000 sq ft, to help grow its European operations.
The refurbishment will be undertaken by Boulting Environmental Services.
Construction work will be split into two phases, with the first phase involving the redevelopment of the existing laboratories and support offices on the first floor and will be complete early next year.
The second phase includes the construction of the new manufacturing facility on the ground floor and will be complete by the end of 2011.
Gen-Probe Incorporated is a molecular diagnostics company headquartered in San Diego, California.
The expanded site will focus on the manufacture of Gen-Probe's women's health products and genetic disease testing products for the global market and become the company's European finance and administrative headquarters.
Carl Hull, Gen-Probe's president and chief executive officer, said: "This location is excellent for us in terms of its proximity to the international airport, and also provides a talented pool of scientists from local universities and research institutes.
"It also creates an opportunity for increased efficiencies in our operations and allows us to establish an R&D Centre of Excellence in Manchester."
Mark Caldwell, chief executive of Bluemantle, added: "We have worked very closely with Gen-Probe over the last 18 months to provide them with the best possible solution to satisfy their requirements."
The move has received public sector support and assistance from Manchester City Council and Midas, Manchester's investment and development agency.