BeiGene in Joint Venture to Build Commercial Biomanufacturing PlantBy
BeiGene, a Beijing, China-based clinical-stage, research-based biotechnology company, has formed a joint venture with the Guangzhou Development District (GDD) and its affiliate, Guangzhou GET Technology Development (GET), to establish a commercial-scale biologics manufacturing facility in Guangzhou, Guangdong Province, China. The partners expect to break ground on the new facility this year.
BeiGene formed the joint venture through its wholly owned subsidiary, BeiGene Hong Kong (BeiGene HK). The joint venture, named BeiGene Biologics, will also provide funding for research and development (R&D) of biologic drug candidates in China. Total direct investments are expected to be Chinese yuan renminbi (RMB, also CNY) 2.2 billion ($319 million).
Under the agreement, cash investments in BeiGene Biologics consist of RMB 200 million ($29 million) from BeiGene HK and a total of RMB 1 billion ($145 million) from GET, including cash in equity investment of the joint venture company and a shareholder loan, which may be convertible into equity of the joint venture company. For additional funding, the manufacturing factory subsidiary of BeiGene Biologics is expected to secure commercial loans of RMB 1 billion ($145 million).
BeiGene, which has more than 300 scientists, clinicians, and staff in mainland China, the US, Australia, and Taiwan, is advancing a drug pipeline of oral small molecules and monoclonal antibodies for cancer.
GDD is one of 14 Chinese national economic and technological development zones approved by the State Council of the People’s Republic of China in 1984. GDD mainly focuses on the development of R&D services, life and health science, inspection, and other knowledge-intensive industries.
GET, established in 1998, is a wholly state-owned subsidiary of Guangzhou GET Holding Corporation Ltd., incorporated under the authority of the Administrative Committee of GDD. GET represents the GDD in performing the functions of an investor and focuses on equity investments in advanced and potential high-tech projects. GET now invests in three companies, including LG Display China, Guangzhou Entrepreneur Park for Overseas Chinese Scholars, and Guangzhou GET Property Management.