Daily Newsletter

01 November 2023

Daily Newsletter

01 November 2023

Aragen invests $30m in new biologics manufacturing facility in India

The laboratory will be operational by Q3 2024, and the first manufacturing suite is expected to be operational in Q3 2025.

Phalguni Deswal October 31 2023

Aragen Life Sciences has invested $30m to set up a new biologics manufacturing facility in Bangalore, India.

The almost 160,000ft² site will have a process development laboratory and multiple GMP manufacturing suites equipped with single-use bioreactors.

The site will augment the bioproduction capability of the company’s facility in California, US, by developing and producing monoclonal antibodies and therapeutic and fusion proteins.

While the process development laboratory is expected to be operational by Q3 2024, the first manufacturing suite will open in Q3 2025.

The demand for biologics manufacturing has been increasing in recent years. Multiple companies have invested millions in building biologics manufacturing facilities. Biologics are forecasted to generate $120bn in sales in 2027, as per GlobalData.

There are 47 protein and peptide-type biologics manufacturing facilities operated by 39 contract manufacturing companies currently operational in India, as per GlobalData. Furthermore, there are five cell and gene therapy manufacturing facilities in India.

GlobalData is the parent company of Pharmaceutical Technology.

"Setting up of a biologics manufacturing facility in India is part of our forward integration strategy for our US-based biologics business, allowing Aragen to offer integrated gene-to-GMP solutions to our customers,” said Aragen Life Sciences’s CEO Manni Kantipudi in a 30 October press release.

“As the molecule advances, Aragen can tech-transfer the programme to our world-class manufacturing facility in Bangalore, offering better COGS [cost of goods sold] to our customers.”

The facility will also feature further plasmid DNA, mRNA and cell and gene therapy capabilities.

Cell & Gene Therapy coverage on Pharmaceutical Technology is supported by CytivaEditorial content is independently produced and follows the highest standards of journalistic integrity. Topic sponsors are not involved in the creation of editorial content.

Analyzing the key M&A trends in the Contract Manufacturing industry

Despite challenging business conditions in 2021 and 2022, large CMOs were still involved in acquisitions to enhance their capabilities or scale of production. Catalent and Recipharm were particularly active in acquiring companies during this period, and these acquisitions had a focus on advanced biologic capabilities related to cell and gene therapies. CMOs are increasingly targeting companies with sophisticated (biologic and specialized) capabilities to manufacture modern drugs and seek high-value contracts.

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