Kyowa Kirin Announces Board Approval for Construction of New Biologics Manufacturing Plant in Sanford, NC

Rhea-AI Summary

Kyowa Kirin has announced board approval for a $530 million investment to build a new biologics manufacturing plant in Sanford, NC. This 171,700-square-foot facility will accelerate the production of new biologic therapies, especially for rare diseases, and create over 100 new jobs with an average salary of $91,496. The plant is expected to be operational by 2027 and will also contribute to the local economy. Supported by $10 million in state and local incentives over 12 years, the investment is projected to grow North Carolina's economy by $1.05 billion. The facility will be part of the Helix Innovation Park and will benefit from local biomanufacturing resources and specialized talent from nearby universities.

Positive

• Kyowa Kirin's $530M investment in Sanford, NC, will create over 100 new jobs.
• Average salary for new jobs is $91,496, boosting local economy.
• The facility is projected to grow North Carolina’s economy by $1.05 billion over 12 years.
• State and local incentives amounting to $10 million support the investment.
• Facility will enhance production of biologic therapies for rare diseases.
• Location in North Carolina's Research Triangle offers robust biomanufacturing resources.
• New facility will improve supply chain resilience and efficiency.
• Construction set to begin in the second half of 2024, operational by 2027.

Negative

• Significant $530 million investment could be a financial risk if projected benefits are not realized.
• Operational commencement only by 2027 implies a long wait before seeing returns on investment.
• Dependence on state and local incentives may introduce future financial uncertainties.

Company's first manufacturing facility in North America to accelerate production of new biologic
therapies to advance clinical pipeline

Facility to draw upon local talent, area colleges and universities to fill more than 100 new positions

PRINCETON, N.J. , June 10, 2024 /PRNewswire/ -- Kyowa Kirin, Inc., an affiliate of Kyowa Kirin Co., Ltd. (Kyowa Kirin) (TSE: 4151), a global specialty pharmaceutical company based in Japan, today announced that its board of directors has approved plans to invest up to $530 million to build a new, state-of-the-art manufacturing facility in Sanford, North Carolina. The 171,700-square-foot, two-reactor facility will accelerate the company's development and production of biologic therapies for patients with rare and serious diseases while also contributing to the Sanford area's economic growth and development.

See the new site here: https://youtu.be/vhTBM9ntEVA?si=fEcdA3s859y0wNZd

"The extraordinary complexity of the medicines we manufacture requires specialized skills and resources that are in plentiful supply in Sanford and the Research Triangle region," said Paul Testa, Executive Vice President, Regional Head North America/EMEA Manufacturing, Kyowa Kirin North America. "We're excited to collaborate with area colleges, universities, businesses, and civic leaders to ensure that our plans align with Sanford's vision for growth, anchored in a rejuvenated manufacturing economy that offers diverse job opportunities and returns value to the community."

A key driver of the new manufacturing facility is the growing global imperative to treat diseases that individually are rare, but which collectively affect an estimated 263 to 446 million people worldwide.¹ Kyowa Kirin is uniquely positioned to fulfill the unmet needs of patients living with rare and underserved diseases by continuing to build on its more than 70-year history of discovering and developing novel medicines that offer life-changing value to patients.  

The new facility will manufacture innovative biologic therapies, including next-generation antibodies, for the company's planned clinical trials and future commercial use while creating more resilient and efficient supply lines that more readily withstand shifting global forces. The 75-acre campus at Helix Innovation Park at The Brickyard will allow for future expansion, should the company's portfolio necessitate greater capacity as its pipeline programs advance.   

Construction of the facility is expected to begin in the second half of 2024 and become fully operational in 2027. Kyowa Kirin's investment of up to $530 million will be supported by performance-based state and local incentives to Kyowa Kirin of $10 million over 12 years, which are estimated to grow the state's economy by $1.05 billion over the course of grant, according to the North Carolina Department of Commerce.² The plant will create more than 100 new local jobs at an average salary of $91,496. 

"Our North American presence continues to grow through strategic investments that are adding new capabilities, new therapeutic expertise, and new talent to our global organization, all in service of meeting patients' needs," said Steve Schaefer, Kyowa Kirin North American President. "Among the many qualities that drew us to North Carolina are our shared values, such as harmony and teamwork¾known as Wa, which is deeply engrained in our culture at Kyowa Kirin, evident in our longstanding corporate partnerships, and fundamental to high-quality pharmaceutical manufacturing." 

The Sanford facility will round out and enhance Kyowa Kirin's global manufacturing network, which includes sites in Takasaki City, Gunma Prefecture, and Ube City, Yamaguchi Prefecture in Japan. By building its new site in the midst of North Carolina's robust life sciences hub, Kyowa Kirin will benefit from a thriving network of biomanufacturing resources as well as a rich pool of talent within the greater Research Triangle Park region, which is home to renowned universities and community colleges that provide specialized curricula and training. The new facility will leverage the expertise of these institutions and build upon the manufacturing methods and technologies recently added in Takasaki to further enhance manufacturing productivity and efficiency. 

"I am very excited that Kyowa Kirin is constructing a new manufacturing plant for biologics drug substance in the United States," said Toshiyuki Kurata, Chief Supply Chain Officer, and Global Manufacturing Head at Kyowa Kirin. "The new facility will be scalable with our Takasaki Plant in Japan to help ease technology transfer between the two plants and add production capacity. We believe this will help accelerate drug development and production."

About Kyowa Kirin
Kyowa Kirin strives to create and deliver novel medicines with life-changing value. As a Japan-based Global Specialty Pharmaceutical Company with a more than 70-year heritage, we apply cutting-edge science including expertise in antibody research and engineering, to address the needs of patients and society across multiple therapeutic areas including Nephrology, Oncology, Immunology/Allergy and Neurology. Across our four regions – Japan, Asia Pacific, North America and EMEA/International – we focus on our purpose, to make people smile, and are united by our shared values of commitment to life, teamwork/Wa, innovation, and integrity. You can learn more about the Kyowa Kirin North America at: kkna.kyowakirin.com.

References 

¹ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9632971/
² https://www.commerce.nc.gov/news/press-releases/2024/02/27/global-life-sciences-company-selects-lee-county-first-north-american-manufacturing-center-excellence 

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SOURCE Kyowa Kirin

FAQ

What is Kyowa Kirin planning in Sanford, NC?

Kyowa Kirin is planning to build a new biologics manufacturing plant in Sanford, NC.

How much is Kyowa Kirin investing in the new facility?

Kyowa Kirin is investing up to $530 million in the new biologics manufacturing plant.

When will Kyowa Kirin's new facility in Sanford be operational?

The facility is expected to be operational by 2027.

How many jobs will the new Kyowa Kirin facility create in Sanford?

The new facility will create over 100 new jobs.

What is the average salary for the new jobs at Kyowa Kirin's Sanford facility?

The average salary for the new jobs will be $91,496.

What economic impact will Kyowa Kirin's new facility have on North Carolina?

The facility is projected to grow North Carolina’s economy by $1.05 billion over 12 years.

What incentives support Kyowa Kirin's investment in Sanford?

State and local incentives amounting to $10 million over 12 years support the investment.

What is the size of Kyowa Kirin's new manufacturing facility in Sanford?

The new manufacturing facility will be 171,700 square feet.

What types of therapies will Kyowa Kirin's new facility in Sanford produce?

The facility will produce biologic therapies, including next-generation antibodies.

Why did Kyowa Kirin choose Sanford, NC for their new facility?

Kyowa Kirin chose Sanford for its robust biomanufacturing resources and specialized talent from nearby universities.