AsianScientist (Mar. 16, 2017) – BeiGene (Hong Kong) Co. Ltd., a wholly owned subsidiary of BeiGene Ltd. has entered into a definitive agreement with the Guangzhou Development District’s affiliate Guangzhou GET Technology Development Co. Ltd. to establish a state-of-the-art commercial-scale biologics manufacturing facility in Guangzhou, China.
The joint venture (JV), BeiGene Biologics Co. Ltd., will also provide funding for research and development of biologic drug candidates in China. Total direct investments are expected to be RMB2.2 billion (~US$320 million).
“Biologics represent an important part of BeiGene’s overall R&D and manufacturing capabilities. This joint venture will enable BeiGene to keep pace with a growing demand for the development and use of biologics in China and global markets,” said Dr. Wang Xiaodong Wang, Co-Founder, Director, and Chairman of the Scientific Advisory Board of BeiGene.
“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. The government will provide strong support in funding, management service, and creating a good business environment,” commented the Administrative Committee of Guangzhou Municipal Government and Guangzhou Development District.
Under the terms of the agreement, the cash contributions to BeiGene Biologics (the JV Company) consist of RMB200 million (~US$30 million) from BeiGene HK and a total of RMB1 billion (~US$150 million) from GET, including cash in equity investment of the JV Company and a shareholder loan, which may be convertible into equity of the JV Company. For additional funding, the manufacturing factory subsidiary of the JV Company is expected to secure commercial loans of RMB1 billion (~$150 million).
———
Source: BeiGene, Ltd.; Photo: Pexels.
Disclaimer: This article does not necessarily reflect the views of AsianScientist or its staff.
