Merck Expands HPV Vaccine Production Amid Soaring Demand; Bayer Invests $150M in Cell Culture Innovation

To facilitate better development,Investing in Plant Construction or Expanding Production ScaleIt appears to be a common choice among biopharmaceutical companies. Recently, two multinational pharmaceutical giantsMerck & Co., Inc.andBayerare all working to expand production capacity, empowering their star products and asset pipeline.

Merck's Gardasil Sales Surge Amid $1 Billion InvestmentExpansionFactory

Merck Human Papillomavirus (HPV) VaccineGardasilIts performance has remained strong, and since entering the Chinese market, sales have shown a trend of “demand outstripping supply,” which is expected to continue for some time. Therefore, Merck & Co. plans to maintain this momentum byCost$1 billionto expand the production of this product.

Merck & Co. announced that it will expand its facility in Elkton, Virginia, by 120,000 square feet to increase the production capacity of Gardasil. The project is expected to take three years and create approximately 100 new jobs.

“In recent years, the recommendations and target populations for HPV vaccination have changed, with countries worldwide developing new or expanded vaccination programs, which has madeUnprecedented Surge in Global Vaccine Demand.” Pam Eisele, a spokesperson for Merck & Co., stated, “We are significantly increasing production capacity, and as previously disclosed by the company, Merck will invest $16 billion in projects over the next five years, with a substantial portion allocated toExpansion of the Vaccine Business。 ”

Merck & Co.’s latest financial report indicates that sales of its HPV vaccine, Gardasil, in the first quarter of 2019Surged 31% to$838 million, which is largely attributable toCommercial Promotion in the Chinese Market. In 2018, global sales of the vaccine exceeded $3.15 billion, far surpassing the $2.31 billion recorded in 2017.Sales Revenue, executives described it as an "unprecedented" strong performance.

Merck & Co. announced last week that it will restructure its global manufacturing operations over the next five years, closing or selling an undisclosed number of factories and cutting an unspecified number of jobs. The restructuring will be completed in 2023 at a cost of $800 million to $1.2 billion, with approximately 55% of the restructuring costs expected to be allocated to employee layoffs and severance, and 45% to the closure or divestiture of production facilities and equipment depreciation. (See details:Merck & Co. Closes Some Plants and Lays Off Workers, Spending $1.2 Billion on Manufacturing Restructuring）

Bayer DevelopmentBiotechnology$150 Million to Establish a New Cell Culture Technology Center

In addition to Merck & Co.,BayerTo Better Promote Innovation in Biotechnology Therapies, a Decision Has Been Made to Invest$150 million，Establishment at the pharmaceutical development and manufacturing base located in Berkeley, California, USACell Culture Technology Center, used forAccelerating the Development of BiologicsUpon completion, the new facility will support Bayer’s growing portfolio of biologics, serving diverse patient populations.

Dr. Wolfram Carius, Executive Vice President and Head of Pharmaceutical Supply at Bayer, stated, “Bayer is committed to bringing innovative medicines to market to deliver therapeutic benefits to patients. This investment enables Bayer to expand its capabilities in the development and commercialization of biologics, allowing us to better advance our R&D programs both internally and through strategic collaborations. We are particularly proud to bring this investment to Berkeley and the broader San Francisco Bay Area, the birthplace of biotechnology and a global hub for innovation in drug development.”

The new cell culture technology center will be built in Bayer's existing Berkeley district, currentlyRecombinant Factor VIIILocation of the Manufacturing Center, which supplies Type A products to nearly 80 countries worldwideHemophiliaPatient-ProvidedTreatment Plan. The newly constructed 40,000-square-foot facility and infrastructure are expected to commence clinical production by the end of 2021, supporting Bayer’s portfolioEmerging Therapiesdevelopment, with key focus areas involvingOncology, Cardiology, and Other Specialty CareTherapeutic Area.

Two years ago, Bayer positioned its pharmaceutical strategy in the specialty care therapeutic area and has recently intensified its R&D focus on open innovation. The newly built center is designed to support candidate drugs in the product pipeline, with Fluor Corporation of the United States handling the design and construction, integrating GE Healthcare Life Sciences’ FlexFactory technology platform into the facility.

Dr. Judy Chou, Senior Vice President and Global Head of Bayer Biotechnology, stated, “Bayer’s Cell Therapy Center will integrate automation, digital capabilities, and single-use bioprocessing technologies to streamline production processes, enabling us to deliver new therapies to patients more rapidly. We have chosen to partner with Fluor Corporation and GE Healthcare Life Sciences in the United States, leveraging their expertise at the Cell Culture Technology Center to design flexible, diverse, and scalable production facilities for the future.”

Emmanuel Ligner, President and Chief Executive Officer of GE HealthCare’s Life Sciences division, stated, “A comprehensive fight against cancer requires rapid and scalable innovation, as well as solutions grounded in digital insights. We are pleased to help Bayer rapidly and effortlessly establish development and manufacturing capabilities for oncology and other therapeutic areas.”(Sina Medicine compiled by Fan Dongdong, edited by Kerr)

References:

1、Bayer Invests $150 Million to Build New Cell Culture Technology Center in Berkeley to SpurInnovation of Biotech Therapies

2、Bayer kicks off a $150M add-on for its campus in Berkeley

3、Merck's Gardasil blockbuster sales prompt $1B plant expansion