Dive Brief:
- India-based Syngene International on Monday said it will invest around $50 million on a biologics facility in the Baltimore area, expanding its global manufacturing footprint as companies look to onshore production to the U.S. amid rising trade tensions.
- Syngene’s U.S. subsidiary has agreed to spend $36.5 million to buy the drug substance plant owned by Emergent BioSolutions, with plans to invest an additional $13.5 million on renovations and upgrades to make the facility operational.
- The site, which was closed last year following contamination issues, will increase Syngene’s capacity to discover, develop and manufacture molecules for biotech companies such as BMS, Merck and Zoetis. The deal is expected to close this month.
Dive Insight:
The acquisition marks a strategy shift by Syngene, which currently manufactures synthetically-made drugs overseas in India, to foster more direct collaboration with customers in the U.S. as President Donald Trump’s tariff war complicates international relationships and industrial supply chains.
The global biologics company said it expects the upgraded Baltimore facility to handle anticipated demand growth from customers requiring direct access to onshore production, as well as companies overseas that want a U.S.-based manufacturing option.
“This facility is a significant milestone for Syngene and comes in response to growing client demand in the United States, the fastest-growing biologics market,” Syngene CEO Peter Bains said in a statement.
The site is expected to increase the company’s total single-use bioreactor capacity to 50,000 liters for large molecule discovery, development and manufacturing services, according to a release. It also has laboratory, warehousing and office space, as well as production lines for monoclonal antibodies — types of proteins that help people fight off germs.
The company said it chose the Baltimore facility based on its strategic location near biotech hubs in the Northeast.
As part of the agreement, Emergent has the right to secure manufacturing from the site for future growth or pandemic response production.
The facility made the news in 2021 after it became embroiled in a national quality control issue that led to the destruction of 400 million doses of Johnson & Johnson’s coronavirus vaccines. The facility has since been cleared of manufacturing issues and is in good standing with the U.S. Food and Drug Administration as of last year.
