Genentech Establishes Biologics Manufacturing Facility in Singapore

Construction is expected to begin in the second quarter of 2007 with licensure anticipated in early 2010. The estimated capital expenditure of the plant is approximately US$140 million.

The facility will provide 1,000-Liter capacity for the production of Escherichia coli (E coli)-derived products. The facility is intended for the manufacture of bulk Lucentis (ranibizumab injection), a treatment for wet age-related macular degeneration. The Genentech plant will be 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 Mr. Philip Yeo, Chairman, 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.


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