Business Strategy AGC to Expand Synthetic Pharmaceutical CDMO Business in Spain
With an aim to expand the existing production capacity of its synthetic pharmaceutical CDMO business by 30 %, AGC has plans to invest 100 million dollars to develop a new facility in Spain for its subsidiary AGC Pharma Chemicals Europe. The new facility will focus on highly potent active pharmaceutical ingredients due to its high market demand.
Tokyo/Japan – AGC has decided to expand the facilities of AGC Pharma Chemicals Europe, an AGC subsidiary engaged in the synthetic pharmaceutical CDMO business. A new building with a total floor area of 7,500 ㎡ will be constructed on the company's site, increasing the current production capacity by 30 %. The new facility is scheduled to start operation in the first half of 2024, with an estimated total investment of approximately 100 million dollars.
Based on its long history and extensive track record, APCE has incorporated AGC's long-accumulated chemical synthesis technologies, including knowledge of handling fluorine, and the company's number of contracts is growing faster rate than the synthetic pharmaceutical CDMO market, which is growing at over 7 % or more annually. To meet this strong demand, AGC has decided to further expand the capacity of this site, in addition to the 30 % facility expansion announced in April 2020.
This expansion will include the introduction of facilities for highly potent active pharmaceutical ingredients (HPAPI), such as cancer therapy drugs, for which demand has been increasing in recent years. Furthermore, AGC will consider additional capacity expansion in the near future, since the newly constructed building has additional room for further expansion.
Under its medium-term management plan, the AGC Group has positioned its Life Science business, including its synthetic agrochemical and pharmaceuticals and biopharmaceutical CDMO services, as one of its strategic businesses. This investment follows AGC Wakasa Chemical's facility expansion in November 2021, and the company will continue to make aggressive acquisitions and capital investments in both its synthetic agrochemical pharmaceutical and biopharmaceutical CDMO business.