Projects

WuXi Biologics’ Biologics Production Facility, Massachusetts, US

In June 2018, Chinese biopharmaceutical company WuXi Biologics announced the development of a new production facility in Worcester, Massachusetts, US.

Project Type

Biologics production facility

Location

Worcester, Massachusetts, US

Announced

June 2018

Estimated Investment

$60m

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In June 2018, Chinese biopharmaceutical company WuXi Biologics announced the development of a new production facility in Worcester, Massachusetts, US.

The company plans to establish the state-of-the-art clinical and commercial manufacturing facility with a $60m investment. It will be WuXi Biologics’ eleventh global drug substance manufacturing facility, its first overseas facility in the US and third outside China after Ireland and Singapore.

Development of the new facility is a part of WuXi Biologics’ global expansion strategy. The new site is expected to play a vital role in supporting the company’s global bio-manufacturing network, ensuring high-quality manufacturing of biologics to benefit patients globally.

WuXi Biologics is expected to hire approximately 150 people at the new facility.

WuXi Biologics’ new production facility location

The new production facility will be located in the Worcester Biomanufacturing Park at the site of the former Worcester State Hospital.

The Worcester Business Development Corporation (WBDC) has been reviving the area to increase biomanufacturing in the city, which was initiated five years ago.

Wuxi Biologics will be the first tenant at the biomanufacturing park and several of its partners are situated near the new site.

The WBDC plans to develop Worcester into a hub for biologic material manufacturing companies by demolishing old buildings and restoring roads.

Details of WuXi Biologics’ greenfield production facility

The new production facility will span an area of up to 100,000ft² in size, including the installation of single-use bioreactors.

“Development of the new facility is a part of WuXi Biologics’ global expansion strategy.”

The facility will be equipped with a 4,500l bioreactor, two 2,000l conventional fed-batch cell cultures and one 500l perfusion-based continuous processing cell culture. An early-stage bioprocess development lab will also be incorporated.

The plant will be capable of handling continuous bioprocessing, a state-of-the-art manufacturing technology planned to be installed by WuXi Biologics for the first time in the US. The technology will be able to handle both clinical and small-volume commercial production.

Financing for WuXi Biologics’ new biologics facility

The new production facility is supported by the Government of Massachusetts, the WBDC and the Massachusetts Life Sciences Center (MLSC).

WuXi Biologics is expected to receive more than $18m in state and local financial incentives, including a $5m state grant to a government agency in Worcester to develop the site for the facility and infrastructure such as roads in the property.

WBDC has leased the land to WuXi Biologics under an agreement that includes a rent abatement provision for five years. WuXi also expects to receive $1m in property tax relief from the Worcester city.

A $1m funding from the state is expected for more than four years to aid workforce training. A loan of $2.5m will be provided by the Massachusetts Development Finance Corporation to support furnishing and equip the building.

The local government also plans to provide personal property tax exemption of $7.5m. A tax waiver of up to $1m and a district improvement financing deal of $1.5m is also proposed.

Marketing commentary on WuXi Biologics

WuXi Biologics is a global biologics service provider headquartered in China. Founded in 2014, the company is a subsidiary of WuXi App Tec.

In China, the company operates in Wuxi, Shanghai and Suzhou.

WuXi Biologics offers comprehensive, integrated and customisable services and solutions to the pharmaceutical and biotechnological companies worldwide. It assists the companies in the discovery, development and manufacturing of biologics.

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