AstraZeneca plc (ADR) (AZN) Continues Biologics Expansion with Discarded Amgen Plant
If one company believes that a particular plant is a blot, another firm believed that there is some value that can be cashed in. That is what happened in the case of Amgen, Inc. (NYSE:AMGN) and AstraZeneca plc (ADR) (NYSE:AZN). The Britain firm acquired the unit of the American firm last year and planned to deploy 400 jobs at a Colorado biologics facility.
Start Renovating It
As far as Amgen, Inc. (NYSE:AMGN), the move was part of big a two-phase plan to lay off 4,000 workforces. AstraZeneca plc (ADR) (NYSE:AZN) indicated that the company will start renovating the acquired plant with immediate effect. The company expects the plant to go live in 2017. The move will double the company’s biologics capacity in America. The British firm believed that it required since 50% of the 120 drugs in its pipeline were big-molecule candidates. That included 30 in the clinic.
The company appears to be following the other drug manufacturers since it is focusing more on big-molecule and big profit specialty drugs to fuel its future. The UK firm has been forced to reprioritize its pipeline since generic competition for Nexium, which was a blockbuster acid reflux, got hammered of late. As a result, AstraZeneca plc (ADR) (NYSE:AZN) is also trying its luck in cancer, as well as, hot immune-oncology vaccines.
Site To Play A Key Role
The company’s EVP of Operations and IT, Pam Cheng, said that the site would assume a key role in its commercial production in future. That was because of its focus on international research and development of biologics and Medlmmune apart from the flexibility. He believes that the biologics portfolio is growing rapidly, and the capacity of the plant was needed.
AstraZeneca plc (ADR) (NYSE:AZN)’s objective seems to be very clear. That is if its focus is on biologic drugs in future, then it should draw plans to invest over $200 million in expanding biologics. The company indicated that they would establish biologics facility in Sweden for $285 million with 250 more jobs.
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