Genentech to Build Singapore's First Microbial-Based Biopharma Facility

PharmaManufacturing.com
03/28/2007

Singapore's efforts to grow its biologics manufacturing sector received a significant boost when the Singapore Economic Development Board (EDB) announced Mar. 28 that Genentech, Inc., one of the world's leading biotechnology companies, has decided to establish a commercial scale microbial-based biologics manufacturing facility in Singapore - a first for Singapore's fast growing biopharmaceuticals sector. This is the first manufacturing investment by a U.S. biotechnology company in Singapore.

The estimated capital expenditure of the plant is approximately US$140 million. It will have approximately 100 employees at steady state and provide 1,000 litres of capacity for the production of E. coli derived products. This facility, which will be located in Tuas Biomedical Park, is intended for the manufacture of bulk Lucentis (ranibizumab injection), a treatment for wet age-related macular degeneration. Construction is expected to begin in the second quarter of 2007 with licensure anticipated in early 2010.

The planned Genentech plant is Singapore's fourth biologics manufacturing facility. Other biologics plants presently under construction in Singapore include GlaxoSmithKline Biologicals' vaccines facility, as well as Switzerland-based biologics contract manufacturer Lonza's two facilities, including its joint venture with Bio*One Capital. In addition to its latest investment, Genentech had previously entered into a supply agreement with Lonza for the manufacture of certain Genentech products at the Lonza facility currently under construction in Singapore. The agreement includes an exclusive option for Genentech to purchase the facility during the period from 2007 to 2012.

"Singapore has established itself as one of the world's most competitive and trusted manufacturing sites for pharmaceutical bulk actives and final dosage forms," said Philip Yeo, chairman of the Agency for Science, Technology and Research (A*STAR). "We are now actively building up a critical mass for biologics manufacturing. We believe that the decision by Genentech, the first biotechnology company in the world, to set up a plant here is endorsement of Singapore as a choice location for biologics manufacturing."

"We are very pleased with our decision to locate a manufacturing facility in Singapore and appreciate the assistance from the Singapore Economic Development Board, Agency for Science, Technology and Research and Jurong Town Corporation," said Patrick Y. Yang, Ph.D., Genentech's executive vice president, Product Operations. "Singapore offers Genentech important advantages in expanding our global manufacturing network, including a skilled workforce, nearby biotechnology expertise, and a supportive business environment. Our new facility will play a key role in bringing innovative therapies to patients with serious diseases."

A significant proportion of the pharmaceuticals and biotechnology industries' future growth is expected to be driven by biologic drugs. The number of biologics drug candidates under clinical evaluation has increased markedly in recent years. Of all the approved drugs in the United States in 2006, approximately 30% are biologic drugs. This number is expected to grow significantly in the next five years. According to Datamonitor, the compound annual growth rate (CAGR) is 13% for biologics as compared to a CAGR of 0.9% for small molecule products.

For more information about the Singapore Economic Development Board's Biomedical Sciences Group, visit http://www.biomed-singapore.com