Fast-growing biotechnology company BeiGene Ltd. (NASDAQ:BGNE) recently announced that they will be constructing a new biologics manufacturing plant in Guangdong Province in China. This would make the project one of the biggest manufacturing ventures for the year.
The company, which would be working with the Guangzhou Development District, is set to build the state-of-the-art biologics manufacturing plant worth $330 million. The joint venture to construct the commercial-scale biologics facility will also be allocating funding for the research and development of biologic drug candidates in China.
Beigene, which is known for their focus on developing a portfolio of immuno-oncology, is set to compete with Western companies in the same field and will be prioritizing the production of high quality and large scale products that will be distributed not just in China but in the global markets as well.
“It is our strategic priority to secure high-quality large-scale manufacturing capacity based on the increasing biologics opportunity. We believe the joint venture will provide a valuable asset for our long-term growth,” said Beigene CEO John Oyler.
Beigene currently is developing PARP inhibitors, which can compete with Astrazeneca's (NYSE:AZN) Lynparza and Pfizer's (NYSE:PFE) latest Medivation.
“Biologics represent an important part of BeiGene’s overall R&D and manufacturing capabilities. This joint venture will enable BeiGene to keep pace with a growing demand for the development and use of biologics in China and global markets,” said BeigeneCo-founder and director Dr. Wang Xiaodong. Wang also serves as the Chairman of the Scientific Advisory Board of Beigene.
The company, which would be receiving $30 million from Beigene Hong Kong and another $150 million from the Guangzhou GET Technology Development Co. Ltd., would include an equity investment in cash from JV Company. An additional funding of $150 million will also be given to the manufacturing factory from a subsidiary of the JV company.
The announcement of the project has been received positively by both investors and the Chinese government who stated that the venture will help biotechnology in the area and therefore promote growth.
“We attach great importance to this project and believe that the successful introduction of BeiGene Biologics will transform Guangzhou Development District into a center for the innovative biopharmaceutical industry, promote the development of the biotechnology industry in the region, and provide a powerful driving force for economic transformation and upgrade. The government will provide strong support in funding, management service, and creating a good business environment,” said the Administrative Committee of Guangzhou Municipal Government and Guangzhou Development District.