November 17, 2020Management

AGC Biologics to Expand Biopharmaceutical CDMO Capacity

Doubling the production capacity at its site in Denmark to address strong demand

AGC (Headquarters: Tokyo; President: Takuya Shimamura) has announced that AGC has decided to increase the production capacity of its biopharmaceutical CDMO*1 subsidiary, AGC Biologics (Headquarters: United States). AGC Biologics will construct a new building on land adjacent to its current Copenhagen site, adding production floors with 2,000L single-use bioreactors*2, labs and office space. The total investment for this expansion is estimated to be around 20 billion JPY, and the start of operation is scheduled for 2023.

The biopharmaceutical CDMO market continues to grow at around 10% annually, and the accumulation of contracts awarded to AGC Biologics is outpacing the market. This expansion will more than double AGC Biologics’ single-use bioreactor mammalian cell-culture capacity in Copenhagen, enabling AGC Biologics to meet the needs of the market. The new building will have a total floor area of approximately 19,000㎡ supporting continued growth.

Under AGC plus management policy, AGC Group has positioned its Life Science business including its biopharmaceutical CDMO services, as one of its strategic businesses. The Group has been expanding its Life Science business through multiple acquisitions and capital investments in biopharmaceutical services using mammalian cells and microorganisms, as well as in synthetic pharmaceutical and agrochemical services. Most recently, in July 2020, AGC expanded the scope of CDMO services into the rapidly growing gene and cell therapy fields through the acquisition of Molmed S,p.A (now AGC Biologics S.p.A.). AGC’s Life Science business is expecting to achieve its initial 2025 sales target of 100 billion yen, two to three years ahead of its original plan.
AGC continues to strive to be a company that actively contributes to the pharmaceutical companies, patients, and the wider society as a whole.

*1 CDMO: Contract Development & Manufacturing Organization. A company which is contracted on behalf of another company to serve product manufacturing as well as the development of manufacturing processes.
*2 Single-use: Bioreactors that use disposable culture vessels

■AGC Group’s CDMO Business Sites

Kazumi Tamaki, General Manager, Corporate Communications & Investor Relations Division
AGC Inc.
Contact: Tomoko Nakao
TEL: +81-3-3218-5603