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news.BeiGene (Hong Kong) and Guangzhou GET Technology Development are setting up a joint venture to build a $330m commercial-scale biologics manufacturing facility in China.
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The JV, BeiGene Biologics, will build the facility in Guangzhou, Guangdong Province. The project is expected to break ground this year.
BeiGene Biologics will use some of the funding to support the development of biologic drugs in China.
Under terms of the agreement, BeiGene (Hong Kong) will contribute $30m to the JV. Guangzhou GET will invest an additional $150m in the form of direct equity investment in BeiGene Biologics and a shareholder loan, which may be convertible into equity.
The BeiGene Biologics’ manufacturing subsidiary is expected to secure another $150m in commercial loans.
BeiGene co-founder, director and scientific advisory board chairman Xiaodong Wang said the JV will help the company to match up with the increasing demand for both development and use of biologics in China and international markets.
BeiGene co-founder, CEO and board chairman John Oyler said: “It is our strategic priority to secure high-quality large-scale manufacturing capacity based on the increasing biologics opportunity we envision in China and global markets.
“We believe the joint venture will provide a valuable asset for our long-term growth.”
BeiGene focuses on molecularly targeted and immuno-oncology cancer therapeutics while GDD is a State Council-approved national economic and technological development zone created in 1984.
A joint statement from the Guangzhou Municipal Government and GDD Administrative Committee read: “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.
Further, the Guangzhou government has committed to support the project through its funding and management service. Besides, it has pledged to give a good business environment.