STOCK TITAN

5 years, 500 million USD, and nearly 1,000 people: Cytiva invests for global capacity expansion

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary

Cytiva is investing 500 million USD over five years to expand manufacturing capacity, supporting growth in the biotechnology sector. The initiative aligns with rising industry demand, particularly accelerated by COVID-19. The company plans to hire nearly 1,000 personnel globally, enhancing its operational efficiency through new manufacturing lines and increased automation. Key expansions include tripling single-use technology capacity in Asia-Pacific and doubling chromatography product platform capacity in Sweden. This investment aims to ensure a secure supply chain and support the rapidly growing cell and gene therapy market.

Positive
  • Total planned investment of 500 million USD to raise manufacturing capacity.
  • Hiring nearly 1,000 personnel across multiple countries.
  • Doubling capacity for chromatography products in Sweden.
  • Tripling single-use capacity in Asia-Pacific via partnership.
  • Increased automation and new manufacturing lines to boost efficiency.
Negative
  • None.
  • Total planned investment is around 500 million USD over five years to raise manufacturing capacity
  • Continues long-term strategy of increasing capacity to respond to growing industry demand and new market opportunities
  • Cytiva hiring nearly 1,000 personnel in Austria, China, Singapore, Sweden, Switzerland, and the United States
  • New manufacturing lines, 24/7 shift patterns, and increased automation will deliver additional manufacturing capacity

AMERSHAM, United Kingdom, Sept. 13, 2020 /PRNewswire/ -- Cytiva, a global life sciences leader, is expanding its manufacturing capacity and hiring personnel in key areas to support the long-term growth of the biotechnology industry.

Emmanuel Ligner, President and CEO, Cytiva, says: "We know from our customers that availability and lead time are the most important considerations after quality. Cytiva's long-term commitment is to deliver the best product, at the right time, and support our customers with expertise.  The industry is growing rapidly, now even more due to COVID-19. Accelerating this investment will reinforce these commitments."

While the COVID-19 pandemic is increasing short-term demand, the biotherapeutics industry was already predicted to grow by double digits between now and 20251.  Cytiva's global product manufacturing and distribution network encompasses 13 sites across Asia, the Americas, and Europe. The investments, totaling around 500 million USD, will respond to in-region, for-region demand, bolster security of supply through dual manufacturing, and increase overall global capacity in key product areas. 

Cytiva is investing in talent, too, hiring nearly 1,000 people around the world. Ligner says: "We're acquiring talent in every area of our business, from commercial to those on production lines, in order to better serve customers for the long term."

Single-use technologies are used to manufacture 85%2 of the biologics currently in pre-commercial and clinical manufacturing lines. As regulatory approvals occur, demand for single-use products at manufacturing scale is expected to grow substantially. Through additional equipment and infrastructure at multiple sites, Cytiva's capacity to manufacture single-use products will more than double.

In Asia-Pacific, single-use capacity will triple through a partnership with one of the largest healthcare technology suppliers in China, Wego, which is already producing consumables for Cytiva's customers in the region. 

Cell culture media production will increase thanks to new manufacturing lines and cleanroom space in Logan, Utah, as well as additional shifts and personnel. The Singapore and Pasching, Austria locations are increasing output through more personnel and additional work shifts. This follows on from a tenfold increase in powdered cell culture media production announced in May 2018.

The manufacturing capacity of Cytiva's MabSelect and Capto chromatography product platforms has doubled, as part of a 70 million USD per year (2017 - 2022) capacity gains and facility modernization program at its Uppsala, Sweden site. Now, the plant is fully automated with the latest technology to allow continuous manufacturing. Other elements include the capacity extension of the Sephadex resin, setting-up additional facilities for in-house manufacturing, and the development of automation and digitalization infrastructure.

Cytiva is also enabling the rapidly growing cell and gene therapy market through an investment in a new facility in Grens, Switzerland to manufacture single-use kits for its Sepax and Sefia cell processing systems.

Cytiva has a longstanding and comprehensive Security of Supply program in place which enables manufacturing output to respond to market demands while ensuring that operations and service capabilities continue safely. For some product lines, part of the solution is having multiple sites able to deliver to customers. 

Ligner says: "Dual manufacturing assures our customers that if one location encounters capacity constraints, we have plenty of back-up ready to activate."

About Cytiva
Cytiva is a global life sciences leader with over 7,000 associates across 40 countries dedicated to advancing and accelerating therapeutics. As a trusted partner to customers that range in scale and scope, Cytiva brings speed, efficiency, and capacity to research and manufacturing workflows, enabling the development, manufacture, and delivery of transformative medicines to patients.

1 BioPlan's 2020 Report and Survey of Biopharmaceutical Manufacturing Capacity and Production, p 29
2 BioPlan's 2020 Report and Survey of Biopharmaceutical Manufacturing Capacity and Production, p 58

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/5-years-500-million-usd-and-nearly-1-000-people-cytiva-invests-for-global-capacity-expansion-301128576.html

SOURCE Cytiva

FAQ

What is Cytiva's investment plan for manufacturing capacity?

Cytiva plans to invest 500 million USD over five years to expand its manufacturing capacity in response to growing demand.

How many employees is Cytiva hiring?

Cytiva is hiring nearly 1,000 personnel globally to enhance its operational capabilities.

Where is Cytiva increasing its manufacturing capacity?

Cytiva is expanding its manufacturing capacity in multiple countries, including Austria, China, Singapore, Sweden, Switzerland, and the United States.

What impact does Cytiva's investment have on the biotechnology industry?

The investment supports the long-term growth of the biotechnology industry, particularly in the wake of increased demand due to COVID-19.

How will Cytiva's investments improve its product supply chain?

Cytiva's investments will enhance security of supply through dual manufacturing and increased global capacity.

Danaher Corporation

NYSE:DHR

DHR Rankings

DHR Latest News

DHR Stock Data

170.54B
642.73M
11%
81.41%
0.72%
Diagnostics & Research
Industrial Instruments for Measurement, Display, and Control
Link
United States of America
WASHINGTON