Jacobs Selected to Support Delivery of $1.2B Expansion of FUJIFILM Diosynth Biotechnologies' Large-Scale Biologics Manufacturing Site

Rhea-AI Summary

Jacobs (NYSE:J) has been selected by FUJIFILM Diosynth Biotechnologies to support a $1.2 billion expansion of its large-scale biologics manufacturing site in Holly Springs, North Carolina. Initially chosen for the site's construction commencing in 2021, Jacobs will now provide engineering, procurement, and construction management for the expansion. This project will add 8 x 20,000-liter cell culture bioreactors and approximately 400,000 square feet of manufacturing space by 2028. The first phase of construction is expected to complete by 2025, making it one of the largest cell culture contract manufacturing facilities in North America. The site will enhance FUJIFILM Diosynth Biotechnologies' capacity for biologic therapeutics and medicines, offering comprehensive drug substance manufacturing, automated fill-finish, assembly, packaging, and labeling services for global biopharmaceutical clients.

Positive

• Jacobs secures a $1.2 billion contract for the expansion of FUJIFILM Diosynth Biotechnologies' manufacturing site.
• The expansion will add 8 x 20,000-liter bioreactors and 400,000 sq ft of manufacturing space by 2028.
• The first phase of construction is planned for completion in 2025.

Negative

• None.

Insights

Financial Analyst

Jacobs' involvement in the $1.2 billion expansion project for FUJIFILM Diosynth Biotechnologies represents a significant revenue stream for the company in the coming years. This expansion, which will bring the site to an impressive scale, emphasizes Jacobs' capabilities in large-scale project management and execution. The project will likely contribute to $1.2 billion in new revenue spread over the project's duration, potentially boosting Jacobs' financial performance significantly in the short term and creating ongoing maintenance and support contracts long term.

Such projects typically involve phased revenue recognition, meaning Jacobs could see steady income streams as various project milestones are met. Investors may find this steady cash flow attractive, reducing the volatility of Jacobs' earnings. Additionally, the reaffirmation of trust and accountability between the companies could lead to more collaborative projects in the future, thus enhancing Jacobs' market position.

Potential drawbacks include the challenges of managing such a large-scale project, which could lead to cost overruns or delays. However, Jacobs' established expertise should mitigate these risks.

Biotechnology Market Analyst

The expansion of the Holly Springs site will make it one of the largest cell culture contract manufacturing facilities in North America, significantly enhancing FUJIFILM Diosynth Biotechnologies' production capacity. The addition of new bioreactors and expanded manufacturing space will support the growing demand for biologic therapeutics and medicines. This expansion is poised to meet the increasing needs of the global biopharmaceutical industry, positioning FUJIFILM Diosynth Biotechnologies as a major player in the market.

From a market perspective, this move aligns with the industry's trend towards large-scale biologics manufacturing to achieve economies of scale and meet stringent regulatory requirements efficiently. Biologic therapeutics, including monoclonal antibodies and gene therapies, are some of the fastest-growing segments in the pharmaceutical industry. This expansion ensures FUJIFILM Diosynth Biotechnologies can cater to this high-demand segment effectively.

However, the long-term success of this expansion hinges on the company’s ability to secure and retain contracts with major biopharmaceutical clients. The project’s scale and ambition could attract significant attention but also comes with increased competition and operational risks.

DALLAS, June 27, 2024 /PRNewswire/ -- Jacobs (NYSE:J) was selected by FUJIFILM Diosynth Biotechnologies to support delivery of $1.2 billion expansion of an end-to-end, large-scale cell culture contract manufacturing site in Holly Springs, North Carolina. Jacobs was originally selected to support the construction for the FUJIFILM Diosynth Biotechnologies' Holly Springs site, which broke ground in 2021. Jacobs will provide engineering, procurement and construction management services for the site's latest expansion.

"This expansion of the project at Holly Springs is testament to the relationship of trust and accountability Jacobs and FUJIFILM Diosynth Biotechnologies have built," said Jacobs Senior Vice President Koti Vadlamudi. "Together we'll continue to leverage digital innovation and modular design so that medicines and therapies are delivered with quality, flexibility, speed and consistency—now at an even larger scale."

The expansion will leverage the existing engineering and facility designs, with an additional 8 x 20,000 liter (L) cell culture bioreactors and approximately 400,000 square feet of manufacturing space by 2028, to the already planned 8 x 20,000 L for bulk drug substance as part of the initial investment. The first phase of construction is planned for completion in 2025.

"Once complete, the site will be one of the largest, end-to-end cell culture contract manufacturing facilities in North America," said FUJIFILM Diosynth Biotechnologies COO and Executive Vice President of Operations Kenneth Bilenberg. "Leveraging our KojoX^TM philosophy, the project will significantly increase FUJIFILM Diosynth Biotechnologies' manufacturing capacity for biologic therapeutics and medicines for patients globally. The site will provide drug substance manufacturing, automated fill-finish and assembly, packaging and labeling services for global biopharmaceutical customers."

At Jacobs, we're challenging today to reinvent tomorrow by solving the world's most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With approximately $16 billion in annual revenue and a talent force of more than 60,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector. Visit jacobs.com and connect with Jacobs on Facebook, Instagram, LinkedIn and X.

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, our plans to spin off and merge with Amentum our Critical Missions Solutions  business and a portion of our Divergent Solutions business in a proposed transaction that is intended to be tax-free to stockholders for U.S. federal income tax purposes, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation related to governmental spending, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, geopolitical events and conflicts, and the impact of any future pandemic or infectious disease outbreak, including the related reaction of governments on global and regional market conditions, among others. For a description of some additional factors that may occur that could cause actual results to differ from our forward-looking statements, see the discussions contained under Item 1 - Business; Item 1A - Risk Factors; Item 3 - Legal Proceedings; and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recently filed Annual Report on Form 10-K, and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Item 1 - Legal Proceedings; and Item 1A - Risk Factors in our most recently filed Quarterly Report on Form 10-Q, as well as the company's other filings with the Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

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SOURCE Jacobs

FAQ

What is the value of the expansion project Jacobs is supporting for FUJIFILM Diosynth Biotechnologies?

Jacobs is supporting a $1.2 billion expansion project for FUJIFILM Diosynth Biotechnologies.

When is the first phase of construction expected to be completed in the Jacobs and FUJIFILM Diosynth Biotechnologies project?

The first phase of construction is expected to be completed by 2025.

How many additional bioreactors will be added to the FUJIFILM Diosynth Biotechnologies site as part of the expansion supported by Jacobs?

The expansion will add 8 x 20,000-liter cell culture bioreactors.

What is the total additional manufacturing space planned for the FUJIFILM Diosynth Biotechnologies site expansion?

Approximately 400,000 square feet of additional manufacturing space is planned.

What services will the expanded FUJIFILM Diosynth Biotechnologies site provide?

The site will provide drug substance manufacturing, automated fill-finish, assembly, packaging, and labeling services.