A Chinese group plans to develop the largest contract manufacturing facility based in Beijing. The US$120 million project will be located in the Beijing Yizhuang Development Zone, a business zone with more than 100 existing biopharma ventures.
The concept of contract manufacturing has been increasing, as pharmaceutical firms find ways of improving efficiency and cutting costs. By using outsourcing manufacturing, drug makers are able to have more flexibility and balance production to demand. To take layers of cost out of the production process, companies are finding it’s more cost effective to move manufacturing work to Asia, where low labor costs makes production considerably less expensive than Ain Europe or US.
The Chinese CMO development – with interest from large Pharmaceuticals’ and their aspirations is in good shape and the future looks bright.
Drugmakers are flocking to the economic zone – both for Chinese domestic sales and for the ability to cost effectively supply mainstream international markets. The latest contract manufacturing hub is a venture of Suma Ventures, Autek Bio, and Beijing Yizhuang International Co.
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