TOKYO -- Fujifilm Holdings will spend 90 billion yen ($813 million) on biologics manufacturing unit Fujifilm Diosynth Biotechnologies, the company announced Tuesday, accelerating its push into a field that is experiencing surging demand amid the coronavirus pandemic.
Producing biologic treatments, which involve steps like making cell cultures and genetic manipulation, requires expensive equipment and advanced technology, leading more drugmakers to contract out their development and production to companies like Fujifilm Diosynth, a joint venture with trading house Mitsubishi Corp. The latest announcement brings Fujifilm's total investment in the sector to $5.5 billion.
The investment will fund new tanks and other equipment at Fujifilm Diosynth's U.S. factory with the aim of doubling cell culture production for recombinant protein vaccines in the country.
These vaccines use synthetically produced proteins to trigger immune responses from their recipients. Some drugmakers are using this technology to develop new coronavirus vaccines.
Fujifilm Diosynth will also build a new production and development wing at its U.K. facility, expanding gene therapy output capacity there tenfold and cell culture capacity threefold.
Fujifilm had previously unveiled plans to expand a Danish contract manufacturing facility and build a new one in North Carolina in the U.S. as well.
The company began the contract development and manufacturing of biologics in 2011, tapping its related expertise in photo films. It is believed to control over 10% of market share, ranking among the world's biggest players behind Lonza of Switzerland. The market is expanding by roughly 10% a year, with demand only expected to grow, driven by vaccines and treatments for COVID-19.
Fujifilm's biologics contract and development business logged over 100 billion yen in revenue for the fiscal year ended March, up 70% from the year prior in part from acquiring a facility from U.S.-based Biogen. It aims to achieve 200 billion yen by the year ending March 2025, and to continue growing the business by 20% a year.
Meanwhile, rivals are also ramping up investment. Samsung Biologics last year decided to build a new 1.7 trillion won ($1.5 billion at current rates) plant. AGC Biologics also bought a U.S. plant from AstraZeneca, and is expanding another in Denmark.