LifeScan Scotland makes products for the treatment of diabetes and currently employs 1,100 people in Inverness.
Highlands and Islands Enterprise (HIE) is supporting the company with an investment of £1.85m, which will support more than 600 jobs.
The products include meters and software so people can self-monitor their blood glucose levels.
Confirming the HIE contribution to the plans, Finance Secretary Derek Mackay said: "LifeScan is a global leader in diabetes research and a great example of an innovative company that is benefiting from what Scotland has to offer as an attractive location for global life sciences companies.
"The continued investment in Scotland by LifeScan and the contribution from HIE is testament to our thriving life sciences industry and its position as a key growth sector for the Scottish economy and proof of the skill and value of the Scottish workforce."
There are more than 70 life sciences organisations operating in the Highlands and Islands, with the sector worth an estimated £131.1m.
LifeScan Scotland is part of the Johnson & Johnson family of companies.
Scotland's largest life sciences company is to invest £8.7m in its newest technology.