Agilent Investing $725 Million to Expand State-of-the-Art Manufacturing Capacity for Production of Nucleic Acid-Based Therapeutics
January 09 2023 - 7:45AM
Business Wire
Investment will double capacity to produce
active pharmaceutical ingredients used in therapeutics for a broad
range of diseases
Agilent Technologies Inc. (NYSE: A) today announced it is
investing approximately $725 million to double manufacturing
capacity of therapeutic nucleic acids in response to rapid growth
of the $1 billion market and strong demand for the company’s
high-quality active pharmaceutical ingredients (API).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230109005201/en/
A rendering of the proposed manufacturing
facility in Frederick, Colorado. Agilent expects customer shipments
from the new facility to begin in 2026. (Photo: Business Wire)
Therapeutic nucleic acids, also called therapeutic
oligonucleotides or oligos, are short DNA and RNA molecules that
serve as the API for drugs targeting a growing number of diseases,
including cancer, cardiovascular disease, and rare and infectious
diseases.
“This investment reflects not only the strong demand for
therapeutic oligos, but also for the unmatched quality and service
of our therapeutic oligo contract development and manufacturing
organization (CDMO),” said Mike McMullen, Agilent president and
CEO. “It’s yet another example of our focus on investing in
high-growth markets while also delivering on Agilent’s mission of
improving the quality of life.”
The market for therapeutic oligos is currently estimated at $1
billion and is projected to grow in the double digits annually over
the next five years, reaching $2.4 billion in 2027. The addition of
two new manufacturing lines (known as Trains C and D) will enable
Agilent to meet growing demand for siRNA, antisense and CRISPR
guide RNA molecules. Agilent expects customer shipments from the
expansion to begin in 2026.
“One of our strategic priorities is to help existing and new
biopharma customers develop, globally commercialize, and accelerate
growth of oligo-based therapeutics,” said Sam Raha, president of
Agilent’s Diagnostics and Genomics Group. “This additional capacity
will enable us to meet strong demand for siRNA and antisense
molecules and also significantly increase the number of CRISPR
guide RNA programs we can take on.”
The new Train C and D manufacturing lines will be based in
Agilent’s Frederick, Colorado facility, where a Train B
manufacturing line, announced in 2020, will go live later this
year.
Agilent’s therapeutic oligo facilities follow current good
manufacturing practices (cGMP), and the expanded facility will
employ advanced automation and engineering enhancements, including
water reduction and solvent capturing and recycling. Read more
about Agilent’s oligo API development and manufacturing services
and background on oligos for therapeutics in Agilent’s media
room.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is a global leader in the
life sciences, diagnostics, and applied chemical markets,
delivering insight and innovation that advance the quality of life.
Agilent’s full range of solutions includes instruments, software,
services, and expertise that provide trusted answers to our
customers' most challenging questions. The company generated
revenue of $6.85 billion in fiscal 2022 and employs 18,000 people
worldwide. Information about Agilent is available at
www.agilent.com. To receive the latest Agilent news, subscribe to
the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook.
Forward Looking Statements
This news release contains forward-looking statements as defined
in the Securities Exchange Act of 1934 and is subject to the safe
harbors created therein. The forward-looking statements contained
herein include, but are not limited to, statements regarding the
capabilities the manufacturing capacity expansion brings and the
assets’ future uses. These forward-looking statements involve risks
and uncertainties that could cause Agilent’s results to differ
materially from management’s current expectations. Such risks and
uncertainties include, but are not limited to, unforeseen changes
in the strength of Agilent’s customers’ businesses; unforeseen
changes in the demand for current and new products, technologies,
and services; unforeseen changes in the currency markets; and
customer purchasing decisions and timing. In addition, other risks
that Agilent faces in running its operations include the ability to
execute successfully through business cycles; the ability to meet
and achieve the benefits of its cost-reduction goals and otherwise
successfully adapt its cost structures to continuing changes in
business conditions; ongoing competitive, pricing and gross-margin
pressures; the risk that its cost-cutting initiatives will impair
its ability to develop products and remain competitive and to
operate effectively; the impact of geopolitical uncertainties and
global economic conditions on its operations, its markets and its
ability to conduct business; the ability to improve asset
performance to adapt to changes in demand; the ability of its
supply chain to adapt to changes in demand; the ability to
successfully introduce new products at the right time, price and
mix; the ability of Agilent to successfully integrate recent
acquisitions; the ability of Agilent to successfully comply with
certain complex regulations; the adverse impacts of and risks posed
by the COVID-19 pandemic; and other risks detailed in Agilent’s
filings with the Securities and Exchange Commission, including its
annual report on Form 10-K for the fiscal quarter ended October 31,
2022. Forward-looking statements are based on the beliefs and
assumptions of Agilent’s management and on currently available
information. Agilent undertakes no responsibility to publicly
update or revise any forward-looking statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230109005201/en/
Sarah Litton +1 669 255 7696 sarah.litton@agilent.com
Agilent Technologies (NYSE:A)
Historical Stock Chart
From Apr 2024 to May 2024
Agilent Technologies (NYSE:A)
Historical Stock Chart
From May 2023 to May 2024